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: 08/31/10

Date of reporting period: 05/31/10

TABLE OF CONTENTS

	Item 1. Schedule of Investments.
	Item 2. Controls and Procedures.
	Item 3. Exhibits.
	SIGNATURES
EX-99.CERT

Item 1. Schedule of Investments.

Schedule of Investments May 31, 2010 (unaudited)

American Income Fund (MRF)

			FAIR
DESCRIPTION	PAR		VALUE ¶
(Percentages of each investment category relate to total net assets)
High Yield Corporate Bonds — 33.1%
Basic Industry — 5.4%
AK Steel, 7.63%, 5/15/20	$	250,000	$	246,875
Berry Plastics, 10.25%, 3/1/16		150,000		133,500
Boise Cascade LLC, 7.13%, 10/15/14		200,000		188,000
Boise Paper Holdings LLC, 9.00%, 11/1/17 n		150,000		158,438
Cascades, 7.75%, 12/15/17 n		250,000		241,250
Domtar, 7.13%, 8/15/15		225,000		236,250
Evraz Group SA, 8.25%, 11/10/15 n		150,000		144,375
FMG Finance Property, 10.00%, 9/1/13 n		250,000		267,812
Georgia Gulf, 9.00%, 1/15/17 n		200,000		203,000
Hexion, 9.75%, 11/15/14		250,000		238,750
Huntsman International LLC, 7.88%, 11/15/14		240,000		229,200
Intertape Polymer US, 8.50%, 8/1/14		150,000		122,250
INVISTA, 9.25%, 5/1/12 n		200,000		203,284
Momentive Performance Materials, 9.75%, 12/1/14		150,000		142,875
Nova Chemicals, 8.38%, 11/1/16		250,000		251,250
Olin, 8.88%, 8/15/19		400,000		426,000
Solutia, 7.88%, 3/15/20		200,000		199,000
Steel Dynamics, 6.75%, 4/1/15		184,000		177,560
Vedanta Resources, 9.50%, 7/18/18 n		100,000		102,000
Verso Paper Holdings LLC, 9.13%, 8/1/14		250,000		236,250
				4,147,919
Capital Goods — 2.4%
BE Aerospace, 8.50%, 7/1/18		250,000		258,750
Bombardier, 7.50%, 3/15/18 n		200,000		202,000
Case New Holland, 7.13%, 3/1/14		200,000		200,000
Hawker Beechcraft Acquisition, 9.75%, 4/1/17		150,000		96,000
Manitowoc, 9.50%, 2/15/18		250,000		245,625
Masco, 5.88%, 7/15/12		110,000		113,832
Spirit Aerosystems, 7.50%, 10/1/17		200,000		197,000
Terex, 7.38%, 1/15/14		250,000		250,625
TransDigm, 7.75%, 7/15/14 n		250,000		250,000
				1,813,832
Communications — 4.8%
Clear Channel Communications, 6.88%, 6/15/18		100,000		48,250
Clear Channel Worldwide Holdings, 9.25%, 12/15/17 n		200,000		203,500
Clearwire Communications LLC, 12.00%, 12/1/15 n		250,000		243,750
Digicel, 8.25%, 9/1/17 n		250,000		245,000
Frontier Communications, 9.00%, 8/15/31		330,000		311,025
Inmarsat Finance, 7.38%, 12/1/17 n		250,000		249,375
Level 3 Financing, 10.00%, 2/1/18 n		200,000		176,000
McClatchy, 11.50%, 2/15/17 n		150,000		150,750
Media General, 11.75%, 2/15/17 n		150,000		144,750
New Communications Holdings, 8.50%, 4/15/20 n		250,000		246,250
Nextel Communications, Series F, 5.95%, 3/15/14		250,000		230,625
Nielsen Finance, 0.00% through 8/1/11, 12.50% thereafter, 8/1/16 o§		240,000		222,000
NII Capital, 8.88%, 12/15/19		500,000		508,750
Sirius XM Radio, 8.75%, 4/1/15 n		200,000		194,000
Sprint Nextel, 8.38%, 8/15/17		175,000		171,937
UPC Holding BV, 9.88%, 4/15/18 n		200,000		202,000
Wind Acquisition Finance SA, 11.75%, 7/15/17 n		150,000		153,000
				3,700,962

American Income Fund 2010 Quarterly Report

Schedule of Investments May 31, 2010 (unaudited)

American Income Fund (MRF)

			FAIR
DESCRIPTION	PAR		VALUE ¶
Consumer Cyclical — 7.6%
American Axle & Manufacturing, 7.88%, 3/1/17	$	150,000	$	132,750
Avis Budget Car Rental LLC, 7.63%, 5/15/14		250,000		237,500
Beazer Homes USA, 9.13%, 6/15/18		250,000		235,000
Carrols, 9.00%, 1/15/13		250,000		246,875
Felcor Lodging LP, 10.00%, 10/1/14		200,000		200,000
Ford Motor, 7.45%, 7/16/31		100,000		89,000
Ford Motor Credit, 7.00%, 10/1/13		560,000		564,847
Geo Group, 7.75%, 10/15/17 n		250,000		249,062
Harrah’s Operating,
10.75%, 2/1/16		113,000		89,552
11.25%, 6/1/17		250,000		261,875
JC Penney, 5.65%, 6/1/20		250,000		243,750
Lear, 7.88%, 3/15/18		200,000		195,000
Levi Strauss & Co, 7.63%, 5/15/20 n		200,000		195,000
M/I Homes, 6.88%, 4/1/12		240,000		233,400
Macy’s Retail Holdings, 7.00%, 2/15/28		250,000		235,000
MGM Mirage, 7.63%, 1/15/17		150,000		112,500
Navistar International, 8.25%, 11/1/21		300,000		300,000
Oshkosh, 8.25%, 3/1/17		250,000		257,500
QVC, 7.13%, 4/15/17 n		250,000		243,125
Realogy, 10.50%, 4/15/14		125,000		106,250
Rite Aid,
7.50%, 3/1/17		200,000		180,000
10.38%, 7/15/16		250,000		255,000
Sally Holdings, 10.50%, 11/15/16		200,000		212,000
Sealy Mattress, 10.88%, 4/15/16 n		158,000		173,010
Tenneco, 8.13%, 11/15/15		350,000		349,125
Wyndham Worldwide, 6.00%, 12/1/16		254,000		246,536
				5,843,657
Consumer Non Cyclical — 2.9%
Catalent Pharma Solutions, 9.50%, 4/15/15		276,281		268,683
Chiquita Brands International, 7.50%, 11/1/14		100,000		97,000
Constellation Brands, 7.25%, 5/15/17		200,000		198,000
Del Monte, 7.50%, 10/15/19 n		250,000		254,375
Dole Food, 13.88%, 3/15/14		99,000		114,345
FAGE Dairy Industry SA, 9.88%, 2/1/20 n		150,000		132,938
HCA, 6.75%, 7/15/13		250,000		241,875
Health Management Associates, 6.13%, 4/15/16		200,000		187,750
Ingles Markets, 8.88%, 5/15/17		250,000		255,313
Revlon Consumer Products, 9.75%, 11/15/15 n		150,000		152,625
Stater Brothers Holdings, 8.13%, 6/15/12		195,000		194,756
Tenet Healthcare, 7.38%, 2/1/13		150,000		150,000
				2,247,660
Electric — 0.7%
AES, 8.00%, 10/15/17		250,000		245,625
Dynegy Holdings, 7.75%, 6/1/19		150,000		108,375
Energy Future Holdings, 10.00%, 1/15/20 n		200,000		199,000
				553,000
Energy — 3.6%
Aquilex Holdings LLC, 11.13%, 12/15/16 n		150,000		150,000
Atlas Energy Operating, 12.13%, 8/1/17		200,000		222,000
ATP Oil & Gas, 11.88%, 5/1/15 n		200,000		157,000
Chesapeake Energy,
7.00%, 8/15/14		250,000		254,687
9.50%, 2/15/15		150,000		162,375
Cloud Peak Energy Resources LLC, 8.25%, 12/15/17 n		225,000		222,188
Concho Resources, 8.63%, 10/1/17		250,000		253,125

American Income Fund 2010 Quarterly Report

Schedule of Investments May 31, 2010 (unaudited)

American Income Fund (MRF)

			FAIR
DESCRIPTION	PAR		VALUE ¶
Forest Oil, 7.25%, 6/15/19	$	115,000	$	108,244
Linn Energy LLC, 8.63%, 4/15/20 n		200,000		198,000
Patriot Coal, 8.25%, 4/30/18		250,000		245,000
PetroHawk Energy, 7.88%, 6/1/15		215,000		208,281
Pioneer Drilling, 9.88%, 3/15/18 n		150,000		148,500
Sabine Pass LNG, 7.50%, 11/30/16		200,000		166,000
SandRidge Energy, 9.88%, 5/15/16 n		150,000		147,750
Stone Energy, 6.75%, 12/15/14		100,000		87,000
				2,730,150
Finance — 0.7%
Icahn Enterprises LP, 7.75%, 1/15/16 n		250,000		235,000
ILFC E-Capital Trust I, 5.90%, 12/21/65 n D		200,000		122,000
Pinnacle Foods Finance LLC, 9.25%, 4/1/15 n		200,000		199,500
				556,500
Industrials Other — 0.3%
RBS Global, 8.50%, 5/1/18 n		200,000		190,000
Insurance — 0.7%
American International Group, 6.25%, 3/15/37		200,000		125,000
Genworth Financial, 6.15%, 11/15/66 D		300,000		208,500
Lincoln National, 6.05%, 4/20/67 D		250,000		192,500
				526,000
Natural Gas — 1.3%
Crosstex Energy LP, 8.88%, 2/15/18 n		200,000		197,000
El Paso,
6.88%, 6/15/14		200,000		200,521
7.75%, 1/15/32, Series GMTN		200,000		187,900
Plains Exploration & Production, 7.75%, 6/15/15		250,000		243,438
Southern Union, 7.20%, 11/1/66 D		200,000		180,000
				1,008,859
Real Estate — 0.4%
Agile Property Holdings, 8.88%, 4/28/17 n		150,000		139,500
Shimao Property Holdings, 8.00%, 12/1/16 n		150,000		135,000
				274,500
Sovereigns — 0.4%
Republic of Uruguay, 8.00%, 11/18/22		250,000		293,750
Technology — 0.6%
Alcatel-Lucent USA, 6.45%, 3/15/29		250,000		170,000
Amkor Technologies, 7.38%, 5/1/18 n		200,000		193,000
First Data, 9.88%, 9/24/15		150,000		122,250
				485,250
Transportation — 1.3%
Continental Airlines, Series 2007-1, Class C, 7.34%, 4/19/14		221,268		212,417
Delta Air Lines, 12.25%, 3/15/15 n		150,000		155,625
Greenbrier, 8.38%, 5/15/15		175,000		163,844
Hertz, 10.50%, 1/1/16		250,000		258,750
Navios Maritime Holdings, 9.50%, 12/15/14		250,000		243,125
				1,033,761
Total High Yield Corporate Bonds (Cost: $24,904,957)				25,405,800

American Income Fund 2010 Quarterly Report

Schedule of Investments May 31, 2010 (unaudited)

American Income Fund (MRF)

			FAIR
DESCRIPTION	PAR		VALUE ¶
U.S. Government Agency Mortgage-Backed Securities — 50.4%
Adjustable Rate D — 0.6%
Federal Home Loan Mortgage Corporation, 2.62%, 9/1/18, #605911	$	106	$	111
Federal National Mortgage Association,
2.91%, 7/1/27, #070179		1,200		1,262
2.87%, 10/1/32, #725110 a		235,038		245,427
Government National Mortgage Association, 3.13%, 12/20/22, #008096		190,403		195,642
				442,442
Fixed Rate — 49.8%
Federal Home Loan Mortgage Corporation Gold,
6.50%, 11/1/28, #C00676 a		162,273		179,508
5.50%, 10/1/33, #A15120 a		636,120		681,891
Federal National Mortgage Association,
6.00%, 12/1/13, #190179 a		144,652		150,592
7.00%, 7/1/17, #254414 a		172,267		188,625
5.00%, 11/1/18, #750989 a		296,644		318,385
5.00%, 2/1/19, #767182 a		488,644		524,458
5.00%, 2/1/21, #745279 a		465,456		498,115
5.50%, 4/1/21, #840466 a		543,517		585,221
6.00%, 5/1/29, #323702 a		288,511		317,520
7.00%, 9/1/31, #596680 a		176,056		194,675
6.50%, 6/1/32, #596712 a		241,955		263,795
5.50%, 6/1/33, #709700 a		434,177		465,517
5.50%, 11/1/33, #555967 a		1,087,568		1,166,072
6.00%, 11/1/33, #743642 a		290,116		318,017
5.50%, 12/1/33, #756202 a		653,516		700,689
6.00%, 1/1/34, #763687 a		573,758		626,069
5.50%, 2/1/34, #766070 a		608,761		652,132
6.00%, 3/1/34, #745324 a		527,178		578,537
6.50%, 6/1/34, #735273 a		595,088		660,059
6.00%, 1/1/35, #810225 a		546,152		595,946
5.50%, 3/1/35, #815979 a		1,044,282		1,116,723
5.00%, 7/1/35, #828346 a		1,211,524		1,272,660
5.50%, 3/1/36, #878059 a		827,250		883,602
6.00%, 6/1/36, #882685 a		1,912,923		2,068,198
5.50%, 4/1/37, #888284 a		1,714,589		1,831,386
5.00%, 6/1/37, #944244 a		1,192,495		1,249,437
5.50%, 6/1/38, #995018 a		1,747,311		1,866,338
5.00%, 6/1/40«		8,715,000		9,122,156
5.50%, 6/1/40«		7,325,000		7,813,717
Government National Mortgage Association,
5.50%, 8/15/33, #604567 a		814,060		880,465
6.00%, 7/15/34, #631574 a		397,035		433,687
				38,204,192
Total U.S. Government Agency Mortgage-Backed Securities (Cost: $37,156,931)				38,646,634
Collateralized Mortgage Obligation — Private Mortgage-Backed Securities — 24.5%
Adjustable Rate D — 6.1%
California Federal Bank of Los Angeles, Series 1991-CI2, Class A, 6.15%, 7/15/21 ∞		10,591		10,445
Credit Suisse Mortgage Capital Certificates, Series 2009-2R, Class 2A5, 5.59%, 6/26/37 n		711,711		697,374
Goldman Sachs Mortgage Loan Trust,
4.70%, 10/25/33, Series 2003-10, Class 1A1		677,591		658,682
4.24%, 1/25/35, Series 2005-AR1, Class B1 ∞		1,320,303		198,399
IndyMac Index Mortgage Loan Trust, Series 2006-AR13, Class A3, 5.72%, 7/25/36		1,500,000		1,199,269

American Income Fund 2010 Quarterly Report

Schedule of Investments May 31, 2010 (unaudited)

American Income Fund (MRF)

			FAIR
DESCRIPTION	PAR		VALUE ¶
JP Morgan Mortgage Trust, Series 2006-A7, Class 3A4, 5.93%, 1/25/37	$	529,014	$	123,433
Washington Mutual Mortgage Pass-Through Certificates,
5.80%, 9/25/36, Series 2007-HY2, Class 3A2		705,749		122,907
5.34%, 2/25/37, Series 2007-HY1, Class 4A1		779,196		570,158
5.57%, 2/25/37, Series 2007-HY1, Class 1A1		679,142		498,065
Washington Mutual MSC Mortgage Pass-Through Certificates, Series 2003-AR3, Class B1, 2.40%, 6/25/33		356,129		232,688
Wells Fargo Mortgage-Backed Securities Trust, Series 2006-AR14, Class 2A3, 5.88%, 10/25/36		457,532		368,543
				4,679,963
Fixed Rate — 18.4%
Banc of America Alternative Loan Trust, Series 2007-1, Class 2A2, 6.01%, 4/25/37 ∞		774,893		215,275
Banc of America Funding, Series 2007-4, Class 1A2, 5.50%, 6/25/37 ∞		783,140		269,662
Citicorp Mortgage Securities, Series 2004-5, Class B3, 5.30%, 8/25/34 ∞		2,802,560		1,415,769
Countrywide Alternative Loan Trust,
5.00%, 1/25/35, Series 2004-28CB, Class 2A1		90,461		86,487
5.50%, 4/25/35, Series 2005-7CB, Class 2A4		690,125		668,932
Credit Suisse First Boston Mortgage Securities Corporation,
6.25%, 4/25/33, Series 2003-8, Class DB1		1,175,411		1,039,938
6.00%, 12/25/35, Series 2005-11, Class 6A7		1,000,000		536,440
First Horizon Alternative Mortgage Securities, Series 2005-FA5, Class 3A2, 5.50%, 8/25/35		943,139		723,122
GMAC Mortgage Corporation Loan Trust, Series 2003-J9, Class A15, 5.00%, 1/25/34		674,538		676,307
Goldman Sachs Mortgage Loan Trust,
7.50%, 6/19/32, Series 2001-2, Class A n		227,796		192,625
5.74%, 5/25/35, Series 2005-4F, Class B1 ∞		2,454,497		1,406,103
6.85%, 3/25/43, Series 2003-1, Class B2 ∞		1,606,264		931,410
Impac Secured Assets Corporation, Series 2000-3, Class M1, 8.00%, 10/25/30 ∞		571,559		503,149
JP Morgan Alternative Loan Trust, Series 2006-S1, Class 1A19, 6.50%, 3/25/36		831,326		559,326
Lehman Mortgage Trust, Series 2008-6, Class 1A1, 6.42%, 7/25/47		329,444		308,880
MASTR Alternative Loans Trust, Series 2004-1, Class 3A1, 7.00%, 1/25/34		422,363		428,372
Nomura Asset Acceptance Corporation, Series 2004-R2, Class B1, 6.74%, 10/25/34 n ∞		1,010,700		597,581
Prime Mortgage Trust, Series 2004-2, ∞
5.13%, 11/25/19, Class B2		290,068		196,983
5.13%, 11/25/19, Class B3		217,383		101,021
Residential Accredit Loans, ∞
5.00%, 6/25/18, Series 2003-QS12, Class M1		659,208		509,101
5.00%, 9/25/19, Series 2004-QS13, Class M3		271,930		14,499
Residential Asset Mortgage Products,
7.33%, 4/25/31, Series 2003-SL1, Class M2 ∞		832,005		590,238
6.50%, 7/25/32, Series 2004-SL4, Class A3		468,944		477,419
Washington Mutual MSC Mortgage Pass-Through Certificates,
7.47%, 4/25/33, Series 2003-MS9, Class CB2 ∞		319,322		176,531
6.37%, 8/25/38, Series 2004-RA3, Class 2A		243,955		248,102
Wells Fargo Mortgage-Backed Securities Trust,
4.50%, 8/25/18, Series 2003-7, Class A3		115,496		113,689
4.72%, 7/25/19, Series 2004-7, Class B2 ∞		501,535		350,139
4.72%, 7/25/19, Series 2004-7, Class B3 ∞		376,320		248,375
5.50%, 7/25/37, Series 2007-9, Class 1A4		1,240,000		509,065
				14,094,540
Total Collateralized Mortgage Obligation — Private Mortgage-Backed Securities (Cost: $25,421,235)				18,774,503
Collateralized Mortgage Obligation — U.S. Agency Mortgage-Backed Securities — 0.4%
Fixed Rate — 0.4%
Federal National Mortgage Association, Series 2002-W1, Class 2A, 7.50%, 2/25/42 (Cost: $285,383)		273,470		310,901

American Income Fund 2010 Quarterly Report

Schedule of Investments May 31, 2010 (unaudited)

American Income Fund (MRF)

			FAIR
DESCRIPTION	PAR		VALUE ¶
Asset-Backed Securities — 27.2%
Credit Cards — 1.0%
American Express Issuance Trust, Series 2005-1, Class C, 0.68%, 8/15/11 D	$	435,000	$	433,847
Discover Card Master Trust, Series 2007-C1, Class C1, 0.67%, 1/15/13 D		370,000		369,503
				803,350
Home Equity — 3.8%
Bear Stearns Asset Backed Securities Trust, Series 2004-HE10, Class M1, 1.00%, 12/25/34 D		1,072,980		891,352
Countrywide Asset-Backed Certificates, Class 2A1 D
0.40%, 7/25/37, Series 2007-1		714,428		693,404
0.41%, 6/25/47, Series 2007-11		373,390		353,023
Home Equity Mortgage Trust, Series 2004-6, Class M2, 5.82%, 4/25/35		631,199		412,994
Residential Funding Mortgage Securities II, Series 2003-HI4, Class M1, 5.53%, 2/25/29		747,623		538,311
				2,889,084
Manufactured Housing — 4.7%
Green Tree Financial, Series 1994-2, Class A5, 8.30%, 5/15/19		110,279		112,272
Green Tree, Series 2008-MH1, Class A1, 7.00%, 4/25/38 n		192,421		196,427
Lehman ABS Manufactured Housing Contract Trust, Series 2001-B, Class A3, 4.35%, 5/15/14		555,015		553,509
Madison Avenue Manufactured Housing Contract, Series 2002-A, Class A1, 0.70%, 3/25/32 D		400,289		389,426
Newcastle Investment Trust, Series 2010-MH1, Class A, 4.50%, 7/10/35 n		972,116		989,049
Origen Manufactured Housing,
5.25%, 12/15/18, Series 2005-B, Class A2		189,227		191,518
5.73%, 11/15/35, Series 2004-B, Class M1		397,156		379,764
5.99%, 1/15/37, Series 2005-B, Class M1		750,000		761,729
				3,573,694
Other — 17.7%
Banc of America Commercial Mortgage, Series 2005-4, Class A5B, 5.00%, 7/10/45		500,000		457,335
Bear Stearns Commercial Mortgage Securities, D
5.91%, 9/11/38, Series 2006-PW12, Class A4		1,000,000		1,040,315
6.18%, 9/11/42, Series 2007-T28, Class D n ∞		475,000		162,930
Citigroup Commercial Mortgage Trust, Series 2008-C7, Class AJ, 6.30%, 12/10/49 D		210,000		131,214
Citigroup/Deutsche Bank Commercial Mortgage Trust, Series 2007-CD5, Class A4, 5.89%, 11/15/44 D		1,000,000		987,481
Greenwich Capital Commercial Funding Corporation,
5.44%, 3/10/39, Series 2007-GG9, Class A4		890,000		860,049
5.74%, 12/10/49, Series 2007-GG11, Class A4		1,000,000		974,181
GS Mortgage Securities Corporation II, Series 2007-GG10, Class A4, 6.00%, 8/10/45 D		2,080,000		1,953,007
JP Morgan Chase Commercial Mortgage Securities Corporation, Series 2007-CB20, Class A4, 5.79%, 2/12/51 D		500,000		495,447
LB-UBS Commercial Mortgage Trust, Series 2008-C1, D
6.32%, 4/15/41, Class A2		752,000		770,348
6.32%, 4/15/41, Class AM		210,000		174,075
Merrill Lynch Mortgage Trust,
5.33%, 7/12/38, Series 2005-CIP1, Class C D ∞		500,000		327,196
5.69%, 2/12/51, Series 2008-C1, Class A4		960,000		936,000
Morgan Stanley Capital I,
5.33%, 12/15/43, Series 2006-IQ12, Class A4		565,000		564,157
6.46%, 1/11/43, Series 2008-T29, Class A4 D		1,125,000		1,190,058
5.45%, 2/12/44, Series 2007-HQ11, Class A4 D		600,000		576,678
RBSSP Resecuritization Trust, D n
0.46%, 3/26/36, Series 2010-4, Class 1A1		449,835		388,610
0.50%, 5/26/36, Series 2009-10, Class 8A1		254,402		239,705
0.57%, 9/25/37, Series 2009-9, Class 9A1		405,897		377,366
Wachovia Bank Commercial Mortgage Trust, Series 2007-C30, Class A3, 5.25%, 12/15/43		1,000,000		996,417
				13,602,569
Total Asset-Backed Securities (Cost: $18,896,366)				20,868,697

American Income Fund 2010 Quarterly Report

Schedule of Investments May 31, 2010 (unaudited)

American Income Fund (MRF)

	PAR/		FAIR
DESCRIPTION	SHARES		VALUE ¶
Investment Grade Corporate Bonds — 5.4%
Basic Industry — 2.5%
International Paper, 9.38%, 5/15/19	$	500,000	$	627,402
Southern Copper, 7.50%, 7/27/35		400,000		413,702
Teck Resources, 9.75%, 5/15/14		500,000		587,757
Vale Overseas, 6.25%, 1/11/16		250,000		271,553
				1,900,414
Communications — 0.3%
Qwest, 8.88%, 3/15/12		175,000		187,031
Consumer Cyclical — 0.2%
CVS Caremark, 6.30%, 6/1/37 D		200,000		181,000
Electric — 0.7%
FirstEnergy Solutions, 6.05%, 8/15/21		255,000		252,868
Teco Finance, 6.57%, 11/1/17		250,000		278,114
				530,982
Energy — 0.1%
Gazprom Capital SA, 6.51%, 3/7/22 n		100,000		94,500
Finance — 0.4%
Discover Financial Services, 10.25%, 7/15/19		250,000		294,476
Real Estate — 1.2%
Duke Realty LP, 5.50%, 3/1/16		200,000		203,253
HRPT Properties Trust — REIT, 6.25%, 8/15/16		400,000		412,254
Simon Property Group — REIT, 10.35%, 4/1/19		250,000		324,454
				939,961
Total Investment Grade Corporate Bonds (Cost: $3,337,031)				4,128,364
Preferred Stocks — 1.4%
Banking — 0.4%
Bank of America, Series 5		19,000		323,570
Finance — 0.5%
Goldman Sachs Group, Series A		3,000		56,130
MetLife, Series B		7,600		180,044
Regions Financing Trust III		5,600		140,000
				376,174
Real Estate Investment Trusts — 0.3%
Duke Realty, Series O		2,500		62,000
Freddie Mac, Series Z		5,000		5,250
iStar Financial, Series G		1,000		14,640
Northstar Realty Finance, Series A		4,000		63,160
Northstar Realty Finance, Series B		4,000		60,600
				205,650
Wireless Communication — 0.2%
United States Cellular		6,000		147,720
Total Preferred Stocks (Cost: $1,129,615)				1,053,114
Municipal Bond — 0.7%
Healthcare Revenue — 0.7%
Sullivan County, Tennessee, Health, Educational & Housing Facilities Board, Hospital Revenue, Welmont Health System, Series 2001-8, 6.95%, 9/1/16 (Cost: $575,000)		575,000		568,991

American Income Fund 2010 Quarterly Report

Schedule of Investments May 31, 2010 (unaudited)

American Income Fund (MRF)

	SHARES/		FAIR
DESCRIPTION	PAR		VALUE ¶
Short-Term Investments — 3.6%
Money Market Fund x — 3.4%
First American Prime Obligations Fund, Class Z, 0.09%		2,584,039	$	2,584,039
U.S. Treasury Obligation o — 0.2%
U.S. Treasury Bill, 0.22%, 12/16/10	$	200,000		199,763
Total Short-Term Investments (Cost: $2,783,802)				2,783,802
Total Investments ▲ — 146.7% (Cost: $114,490,320)				112,540,806
Other Assets and Liabilities, Net — (46.7)%				(35,813,521	)
Total Net Assets — 100.0%			$	76,727,285

¶	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. The use of fair value pricing by the fund may cause the net asset value of its shares to differ significantly from the net asset value that would be calculated without fair value pricing.
	As of May 31, 2010, the fund held no internally fair valued securities.
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, 2010, the fair value of these investments was $12,105,899 or 15.8% of total net assets.
o§	Delayed Interest (Step Bonds) — Securities for which the coupon rate of interest will adjust on specified future date(s).
D	Variable Rate Security — The rate shown is the net coupon rate in effect as of May 31, 2010.

American Income Fund 2010 Quarterly Report

Schedule of Investments May 31, 2010 (unaudited)

American Income Fund (MRF)

a Securities pledged as collateral for outstanding reverse repurchase agreements. On May 31, 2010, securities valued at $21,492,710 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
$	14,290,000		05/07/10		0.27	%		06/07/10	$	2,679		(1	)
	6,026,554		05/26/10		0.38	%		06/28/10		382		(2	)
$	20,316,554								$	3,061

* Interest rate as of May 31, 2010. 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 Home Loan Mortgage Corporation Gold, 6.50%, 11/1/28, $162,273 par Federal National Mortgage Association, 6.00%, 12/1/13, $144,652 par Federal National Mortgage Association, 7.00%, 7/1/17, $172,267 par Federal National Mortgage Association, 5.00%, 11/1/18, $296,644 par Federal National Mortgage Association, 5.00%, 2/1/21, $465,456 par Federal National Mortgage Association, 6.00%, 5/1/29, $288,511 par Federal National Mortgage Association, 7.00%, 9/1/31, $176,056 par Federal National Mortgage Association, 5.50%, 6/1/33, $434,177 par Federal National Mortgage Association, 6.00%, 1/1/34, $573,758 par Federal National Mortgage Association, 5.50%, 2/1/34, $589,123 par Federal National Mortgage Association, 6.00%, 3/1/34, $527,178 par Federal National Mortgage Association, 6.00%, 1/1/35, $546,152 par Federal National Mortgage Association, 5.00%, 7/1/35, $1,211,524 par Federal National Mortgage Association, 5.50%, 3/1/36, $827,250 par Federal National Mortgage Association, 6.00%, 6/1/36, $1,912,923 par Federal National Mortgage Association, 5.50%, 4/1/37, $1,714,589 par Federal National Mortgage Association, 5.00%, 6/1/37, $1,192,495 par Federal National Mortgage Association, 5.50%, 6/1/38, $1,747,311 par Government National Mortgage Association, 5.50%, 8/15/33, $814,060 par Government National Mortgage Association, 6.00%, 7/15/34, $397,035 par

(2)

Barclays: Federal National Mortgage Association, 2.87%, 10/1/32, $235,038 par Federal Home Loan Mortgage Corporation Gold, 5.50%, 10/1/33, $636,120 par Federal National Mortgage Association, 5.00%, 2/1/19, $488,644 par Federal National Mortgage Association, 5.50%, 4/1/21, $543,517 par Federal National Mortgage Association, 6.50%, 6/1/32, $241,955 par Federal National Mortgage Association, 5.50%, 11/1/33, $1,087,568 par Federal National Mortgage Association, 6.00%, 11/1/33, $290,116 par Federal National Mortgage Association, 5.50%, 12/1/33, $653,516 par Federal National Mortgage Association, 6.50%, 6/1/34, $595,088 par Federal National Mortgage Association, 5.50%, 3/1/35, $1,044,282 par

«	Security purchased on a when-issued basis. On May 31, 2010, the total cost of investments purchased on a when-issued basis was $16,769,095 or 21.9% of total net assets.
∞	Security considered illiquid. A security is considered illiquid if it may not be sold or disposed of in the ordinary course of business within seven days at approximately the price at which it is valued. As of May 31, 2010, the fair value of this investment was $8,224,806 or 10.7% of total net assets.
x	Investment in affiliated security. This money market fund is advised by FAF Advisors, Inc., which also serves as advisor for the fund. The rate quoted is the annualized seven-day effective yield as of May 31, 2010.
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, 2010.

American Income Fund 2010 Quarterly Report

Schedule of Investments May 31, 2010 (unaudited)

American Income Fund (MRF)

▲ On May 31, 2010, the cost of investments for federal income tax purposes was approximately $114,490,320. The approximate aggregate gross unrealized appreciation and depreciation of investments, based on this cost, were as follows:

Gross unrealized appreciation	$	7,020,979
Gross unrealized depreciation		(8,970,493	)
Net unrealized depreciation	$	(1,949,514	)

REIT — Real Estate Investment Trust

Schedule of Open Futures Contracts

		Number of		Notional			Unrealized
	Settlement	Contracts		Contract			Appreciation/
Description	Month	Sold		Value			Depreciation
U.S. Treasury 2 Year Note Futures	September 2010		3	$	(654,422	)	$	(851	)
U.S. Treasury 5 Year Note Futures	September 2010		57		(6,650,297	)		15,258
U.S. Treasury 10 Year Note Futures	September 2010		16		(1,918,000	)		10,907
U.S. Treasury Long Bond Futures	September 2010		18		(2,207,812	)		31,107
							$	56,421

As of May 31, 2010, the fund’s asset and liability values of derivative instruments categorized by risk exposure were classified as follows:

Asset Derivatives	Value
Interest Rate Contracts	$	57,272
Balance as of May 31, 2010	$	57,272

Liability Derivatives	Value
Interest Rate Contracts	$	851
Balance as of May 31, 2010	$	851

Summary of Fair Value Exposure

Generally accepted accounting principles (“GAAP”) require disclosures regarding the inputs and valuation techniques used to measure fair value and any changes in valuation inputs or technique. These principles establish a three-tier fair value hierarchy for inputs used in measuring fair value. Fair value inputs are summarized in the three broad levels listed below:

Level 1 — Quoted prices in active markets for identical securities.

Level 2 — Other significant observable inputs (including quoted prices for similar securities, with similar interest rates, prepayment speeds, credit risk, etc.).

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.

The valuation levels are not necessarily an indication of the risk associated with investing in these investments.

American Income Fund 2010 Quarterly Report

Schedule of Investments May 31, 2010 (unaudited)

American Income Fund (MRF)

As of May 31, 2010, the fund’s investments were classified as follows:

							Total
	Level 1		Level 2		Level 3		Fair Value
Investments
High Yield Corporate Bonds	$	—	$	25,730,254	$	—	$	25,730,254
U.S. Governement Agency Mortgage-Backed Securities		—		38,646,634		—		38,646,634
Collateralized Mortgage Obligation — Private Mortgage-Backed Securities		—		18,774,503		—		18,774,503
Collateralized Mortgage Obligation — U.S. Agency Mortgage-Backed Securities		—		310,901		—		310,901
Asset-Backed Securities		—		20,868,697		—		20,868,697
Investment Grade Corporate Bonds		—		3,803,910		—		3,803,910
Preferred Stocks		996,984		—		56,130		1,053,114
Municipal Bond		—		568,991		—		568,991
Short-Term Investments		2,584,039		199,763		—		2,783,802
Total Investments	$	3,581,023	$	108,903,653	$	56,130	$	112,540,806

As of May 31, 2010, the fund’s investments in other financial instruments* were classified as follows:

							Total
	Level 1		Level 2		Level 3		Fair Value
Futures Contracts	$	56,421	$	—	$	—	$	56,421
Total Other Financial Instruments	$	56,421	$	—	$	—	$	56,421

* Other financial instruments are derivative instruments such as futures and swaps, which are valued at the unrealized appreciation (depreciation) on the instrument.

The following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:

				Collateralized
				Mortgage
				Obligation-
				Private Mortgage-
	High Yield			Backed			Preferred		Total Fair
	Corporate Bonds			Securities			Stocks		Value
Balance as of August 31, 2009	$	345,144		$	510,300		$	—	$	855,444
Accrued discounts/premiums		18,992			669			—		19,661
Realized gain (loss)		90,007			7,119			—		97,126
Net change in unrealized appreciation or depreciation		(62,962	)		(6,619	)		3,420		(66,161	)
Net purchases (sales)		(391,181	)		(134,103	)		52,710		(472,574	)
Net transfers in and/or (out) of Level 3		—			(377,366	)		—		(377,366	)
Balance as of May 31, 2010	$	—		$	—		$	56,130	$	56,130
Net change in unrealized appreciation or depreciation during the period of Level 3 investments held as of May 31, 2010	$	—		$	—		$	3,420	$	3,420

American Income Fund 2010 Quarterly Report

Item 2. Controls and Procedures.

(a)

The Registrant’s principal executive officer and principal financial officer have concluded that the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “1940 Act”)) are effective as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 15d-15(b) under the Securities Exchange Act of 1934, as amended.

(b)

There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the Registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

Item 3. Exhibits.

Separate certifications for each principal executive officer and principal financial officer of the Registrant as required by Rule 30a-2(a) under the 1940 Act are filed herewith.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

American Income Fund, Inc.
By:	/s/ Thomas S. Schreier, Jr.
	Thomas S. Schreier, Jr.
	President

Date: July 28, 2010

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By:	/s/ Thomas S. Schreier, Jr.
	Thomas S. Schreier, Jr.
	President

Date: July 28, 2010

By:	/s/ Charles D. Gariboldi, Jr.
	Charles D. Gariboldi, Jr.
	Treasurer

Date: July 28, 2010