UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM N-Q QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number: 811-7510 ACM Municipal Securities Income Fund, Inc. (Exact name of registrant as specified in charter) 1345 Avenue of the Americas, New York, New York 10105 (Address of principal executive offices) (Zip code) Mark R. Manley Alliance Capital Management L.P. 1345 Avenue of the Americas New York, New York 10105 (Name and address of agent for service) Registrant's telephone number, including area code: (800) 221-5672 Date of fiscal year end: October 31, 2004 Date of reporting period: July 31, 2004 ITEM 1. SCHEDULE OF INVESTMENTS. ACM MUNICIPAL SECURITIES INCOME FUND PORTFOLIO OF INVESTMENTS July 31, 2004 (unaudited) Standard Principal & Poor's Amount Rating (000) Value ------------------------------------------------------------------------------------------- Long -Term Municipal Bonds - 154.6% Alabama - 3.6% Jefferson Cnty Wtr and Swr Rev FGIC Ser 02B Prerefunded 8/01/12 @ 100 5.00%, 2/01/41................................ AAA $ 1,535 $ 1,678,630 Jefferson Cnty Wtr and Swr Rev FGIC Ser 02B 5.00%, 2/01/41................................ AAA 2,465 2,722,617 -------------- 4,401,247 -------------- Alaska - 4.7% Alaska International Airport MBIA Ser 03B 5.00%, 10/01/26............................... AAA 1,000 997,280 Alaska Muni Bond Bank Auth MBIA Ser 03E 5.25%, 12/01/26............................... AAA 3,000 3,079,890 Alaska Muni Bond Bank Auth MBIA Ser 04G 5.00%, 2/15/22................................ AAA 1,585 1,629,760 -------------- 5,706,930 -------------- Arizona - 1.3% Arizona Cap Facs Fin Corp (Arizona St Univ Proj) 6.25%, 9/01/32(a)............................. Baa3 1,550 1,608,109 -------------- California - 17.3% Burbank Redev Agy FGIC Ser 03 5.625%, 12/01/28.............................. AAA 1,660 1,761,858 California Dept of Wtr Ser 02A 5.375%, 5/01/22(a)............................ A2 2,000 2,084,060 California St General Obligation Ser 03 5.00%, 2/01/32(a)............................. A3 2,450 2,382,233 5.00%, 2/01/33(a)............................. A3 1,100 1,069,079 California St General Obligation Ser 04 5.125%, 4/01/23(a)............................ A3 2,000 2,041,880 5.00%, 2/01/33(a)............................. A3 1,000 971,890 Golden St Tobacco Settlement XLCA Ser 03B 5.50%, 6/01/33............................... AAA 3,000 3,099,270 Golden St Tobacco Settlement RADIAN Ser 03B 5.50%, 6/01/43............................... AA 3,000 3,016,410 Pomona Lease Rev AMBAC Ser 03 5.50%, 6/01/24............................... AAA 1,465 1,562,071 5.50%, 6/01/34............................... AAA 3,000 3,127,020 -------------- 21,115,771 -------------- 2 ACM MUNICIPAL SECURITIES INCOME FUND PORTFOLIO OF INVESTMENTS July 31, 2004 (unaudited) Standard Principal & Poor's Amount Rating (000) Value ------------------------------------------------------------------------------------------- Colorado - 0.8% Colorado Toll Rev (Hwy E-470) Ser 00 Zero coupon, 9/01/35.......................... BBB- $ 10,000 $ 1,000,000 -------------- Connecticut - 7.3% Connecticut Gaming Auth (Mohegan Tribe) Ser 01 6.25%, 1/01/31(b)............................. BBB- 3,000 3,144,510 Connecticut St General Obligation MBIA Ser 412 8.64%, 12/01/11(b)(c)......................... AAA 5,000 5,746,400 -------------- 8,890,910 -------------- District of Columbia - 1.8% District of Columbia Tobacco Settlement Ser 01 6.75%, 5/15/40................................ BBB 2,520 2,245,849 -------------- Florida - 17.0% Collier Cnty Hlth Fac Rev (The Moorings Proj) Ser 94 7.00%, 12/01/19............................... A- 2,000 2,070,520 Florida Hsg Fin Corp Rev MFHR (Westlake Apts) FSA Ser 02-D1 AMT 5.40%, 3/01/42................................ AAA 8,780 8,888,433 Florida Hsg Fin Corp Rev MFHR (Westminster Apts) FSA Ser 02-E1 AMT 5.40%, 4/01/42................................ AAA 2,850 2,889,358 Lee Cnty Hlth Fac Rev (Shell Point Village Proj) Ser 99A 5.50%, 11/15/29............................... BBB- 3,670 3,441,469 Miami Beach Hlth Fac Rev (Mount Sinai Med Ctr) 6.75%, 11/15/24(b)................................ BB 2,000 2,026,340 Orange Cnty Hlth Fac Rev (Orlando Regl Healthcare) Ser 02 5.75%, 12/01/32............................... A 1,400 1,423,940 -------------- 20,740,060 -------------- Hawaii - 2.1% Hawaii Elec Rev XLCA Ser 03B AMT 5.00%, 12/01/22............................... AAA 2,500 2,522,575 -------------- Illinois - 5.3% Chicago Arpt Rev (O'Hare Intl Arpt) XLCA Ser B-1 5.25%, 1/01/34................................ AAA 3,100 3,138,874 Chicago Hsg Agy SFMR (Mortgage Rev) GNMA/FNMA Ser 02B AMT 6.00%, 10/01/33............................... AAA 710 761,383 Cook Cnty Sch Dist FSA Ser 04 4.60%, 12/01/20(e)............................ AAA 1,000 860,150 Metropolitan Pier & Exposition Rev (McCormick Pl) MBIA Ser 02A 5.25%, 6/15/42................................ AAA 1,750 1,768,410 -------------- 6,528,817 -------------- 3 ACM MUNICIPAL SECURITIES INCOME FUND PORTFOLIO OF INVESTMENTS July 31, 2004 (unaudited) Standard Principal & Poor's Amount Rating (000) Value ------------------------------------------------------------------------------------------- Indiana - 1.9% Hendricks Cnty Bldg Facs General Obligation Ser 04 5.50%, 7/15/21(a)............................. Aa3 $ 1,045 $ 1,123,657 Indiana Bd Bk Rev FSA Ser 04B 5.00%, 2/01/21................................ AAA 1,100 1,140,381 -------------- 2,264,038 -------------- Louisiana - 0.1% Calcasieu Parish Hsg Agy SFMR (Mortgage Rev) GNMA/FNMA Ser 97A AMT 6.40%, 4/01/32(a)............................. Aaa 75 77,114 -------------- Maine - 0.9% Jay Solid Waste Disp Rev (International Paper Co) Ser 99B AMT 6.20%, 9/01/19................................ BBB 1,000 1,059,120 -------------- Massachusetts - 11.8% Mass General Obligation Ser 02 Prerefunded 11/01/12 @ 100 5.25%, 11/01/30............................... AA- 3,310 3,661,489 Mass General Obligation Ser 02 5.25%, 11/01/30............................... AAA 1,690 1,869,461 Mass Hlth & Ed Fac Hosp Rev (New England Med Ctr) MBIA Ser 94 8.83%, 7/01/18(c)............................. AAA 5,000 5,218,850 Mass Hsg Fin Agy MFHR (Rental Rev) AMBAC Ser 00A AMT 6.00%, 7/01/41................................ AAA 2,965 3,095,994 Mass Hsg Fin Agy MFHR (Rental Rev) MBIA Ser 00H AMT 6.65%, 7/01/41................................ AAA 545 582,981 -------------- 14,428,775 -------------- Michigan - 5.9% Michigan St Hosp Rev (Trinity Hlth) Ser 00A 6.00%, 12/01/27............................... AA- 3,000 3,187,530 Saginaw Hosp Fac Rev (Covenant Med Ctr) Ser 00F 6.50%, 7/01/30................................ A 3,775 4,043,591 -------------- 7,231,121 -------------- Mississippi - 7.5% Adams Cnty Poll Ctl Rev (International Paper Co) Ser 99 AMT 6.25%, 9/01/23................................ BBB 5,000 5,143,350 Gulfport Hosp Fac Rev (Mem Hosp at Gulfport Proj) Ser 01A 5.75%, 7/01/31(a).............................. . A2 4,000 4,054,320 -------------- 9,197,670 -------------- 4 ACM MUNICIPAL SECURITIES INCOME FUND PORTFOLIO OF INVESTMENTS July 31, 2004 (unaudited) Standard Principal & Poor's Amount Rating (000) Value ------------------------------------------------------------------------------------------- Nevada - 1.7% Carson City Hosp Rev (Carson-Tahoe Hosp Proj) RADIAN Ser 03A 5.00%, 9/01/23.............................. AA $ 2,100 $ 2,077,026 -------------- New Jersey - 3.1% New Jersey St Edl Facs AMBAC Ser 02A-213 9.33%, 9/01/21(a)(b)(c)....................... Aaa 3,400 3,827,040 -------------- New Mexico - 0.6% Dona Ana Cnty Tax Rev AMBAC Ser 03 5.25%, 5/01/25(a).......................... Aaa 750 776,513 -------------- New York - 10.5% New York City General Obligation Ser 04I 5.00%, 8/01/21................................ A 3,300 3,344,022 New York City Indl Dev Agy Rev (Terminal One Group) Ser 94 AMT 6.125%, 1/01/24(a)............................ A3 8,100 8,434,935 New York City Indl Dev Agy Rev (British Airways) Ser 98 AMT 5.25%, 12/01/32............................... BB+ 1,500 1,061,700 -------------- 12,840,657 -------------- North Dakota - 2.4% North Dakota Hsg Fin Agy SFMR (Mortgage Rev) Ser 98E AMT 5.25%, 1/01/30(a)............................. Aa2 2,905 2,895,152 -------------- Ohio - 10.8% Cuyahoga Cnty Hosp Fac Rev (University Hosp Hlth) Ser 00 7.50%, 1/01/30................................ BBB 2,400 2,627,400 Fairfield Cnty Hosp Fac Rev (Fairfield Med Ctr Proj) RADIAN Ser 03 5.00%, 6/15/23................................ AA 1,255 1,255,728 Ohio Hsg Fin Agy MFHR (Mortgage Rev) GNMA Ser 97 AMT 6.15%, 3/01/29(a)............................. Aaa 4,945 5,072,235 Ohio State Wtr Dev Auth (North Star) Ser 95 AMT 6.45%, 9/01/20................................ A+ 4,075 4,234,985 -------------- 13,190,348 -------------- Pennsylvania - 7.4% Pennsylvania Parking Fac Rev (30th St Station) ACA Ser 02 AMT 5.875%, 6/01/33............................... A 2,050 2,076,507 Pennsylvania Hsg Fin Agy SFMR (Mortgage Rev) Ser 99-68A AMT 6.15%, 10/01/30............................... AA+ 7,000 7,015,120 -------------- 9,091,627 -------------- South Carolina - 0.4% Richland Lexington Arpt Rev (Columbia Met Arpt) FSA Ser 04 AMT 5.125%, 1/01/25............................... AAA 500 491,615 -------------- 5 ACM MUNICIPAL SECURITIES INCOME FUND PORTFOLIO OF INVESTMENTS July 31, 2004 (unaudited) Standard Principal & Poor's Amount Rating (000) Value ------------------------------------------------------------------------------------------- Tennessee - 9.0% Tenn Ed Loan Rev (Educational Funding of South) Ser 97B AMT 6.20%, 12/01/21(a)............................ Aa2 $ 10,600 $ 11,007,358 -------------- Texas - 13.0% Dallas TX Arpt Rev (Fort Worth Intl Arpt) MBIA Ser 03A AMT 5.25%, 11/01/25............................... AAA 2,000 2,020,260 Harris Cnty Ser 03 5.00%, 10/01/23............................... AA+ 1,400 1,422,540 Harris Cnty Toll Rev FSA Ser 02 5.125%, 8/15/32............................... AAA 5,000 5,021,150 Lower Colorado Riv Auth AMBAC Ser 03 5.25%, 5/15/25................................ AAA 1,800 1,857,348 Lower Colorado Riv Auth MBIA Ser 02 5.00%, 5/15/31................................ AAA 1,500 1,486,770 Matagorda Cnty Rev (Centerpoint Energy Houston Electric LLC) Ser 04 5.60%, 3/01/27................................ BBB 1,000 1,004,700 Richardson Hosp Auth Rev (Richardson Medical Center) Ser 04 6.00%, 12/01/19............................... BBB 915 956,093 5.875%, 12/01/24.............................. BBB 1,155 1,165,199 Seguin Ed Fac Rev (Texas Lutheran Univ) Ser 04 5.25%, 9/01/28................................ BBB- 1,000 925,240 -------------- 15,859,300 -------------- Utah - 2.1% Davis Cnty Sales Tax Rev AMBAC Ser 03B 5.25%, 10/01/23............................... AAA 1,005 1,048,245 Salt Lake City Wtr Rev AMBAC Ser 04 5.00%, 7/01/23(a)............................. Aaa 1,500 1,530,495 -------------- 2,578,740 -------------- Washington - 1.2% Seattle Hsg Auth Rev MFHR (Wisteria Ct Proj) GNMA Ser 03 5.20%, 10/20/28(a)............................ Aaa 1,475 1,501,240 Wisconsin - 3.1% Wisconsin General Obligation Ser 03 5.00%, 11/01/26............................... AA- 3,700 3,725,863 -------------- Total Long-Term Investments (cost $184,004,149)........................... 188,880,585 -------------- 6 ACM MUNICIPAL SECURITIES INCOME FUND PORTFOLIO OF INVESTMENTS July 31, 2004 (unaudited) Standard Principal & Poor's Amount Rating (000) Value ------------------------------------------------------------------------------------------- Short-Term Investments - 2.9% Connecticut - 2.5% Connecticut St Hlth & Edl Facs Rev (Yale Univ) Ser 03-X3 1.05%, 7/01/37(d)............................. A-1+ $ 3,000 $ 3,000,000 -------------- Texas - 0.4% Gulf Coast Waste Disp Rev (Amoco Chemical Proj) RADIAN Ser 03B AMT 1.15%, 4/01/26(d)............................. A-1+ 500 500,000 -------------- Total Short-Term Investments (cost $3,500,000)............................. 3,500,000 -------------- Total Investments - 157.5% (cost $187,504,149)........................... 192,380,585 Other assets less liabilities - 16.2%.............. 19,733,372 Preferred Stock, at redemption value - (73.7)%... (90,000,000) -------------- Net Assets Applicable to Common Shareholders - 100%(f) $ 122,113,957 ============== INTEREST RATE SWAP TRANSACTIONS Rate Type ------------------------ Payments Payments made received Swap Notional Termination by the by the Unrealized Counter Party Amount Date Fund Fund Depreciation ------------------------------------------------------------------------------- BMA* Municipal J.P. Morgan $3,400,000 11/18/2004 1.297% Swap Index(TM) $ (1,317) BMA* Municipal J.P. Morgan 5,000,000 7/8/2005 1.257% Swap Index(TM) (874) ----------- $ (2,191) =========== * BMA (Bond Market Association) (a) Moody's or Fitch Rating. (b) Private Placement. (c) Inverse Floater Security - Security with variable interest rate that moves in the opposite direction of short-term interest rates. (d) Variable rate coupon, rate shown as of July 31, 2004. (e) Initial yield is presented. Interest rate after 12/01/07 will be 5.00% (f) Portfolio percentages are calculated based on net assets applicable to common shareholders. Glossary of Terms: ACA - American Capital Access (Financial Guaranty Corporation) AMBAC - American Municipal Bond Assurance Corporation AMT - Alternative Minimum Tax FGIC - Financial Guaranty Insurance Company FNMA - Federal National Mortgage Association FSA - Financial Security Assurance, Inc. GNMA - Government National Mortgage Association MBIA - Municipal Bond Investors Assurance Corporation MFHR - Multi-Family Housing Revenue RADIAN - Radian Group, Inc. SFMR - Single Family Mortgage Revenue XLCA - XL Capital Assurance, Inc. 7 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-2(c) under the Investment Company Act of 1940, as amended) are effective at the reasonable assurance level based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this document. (b) There were no significant changes in the registrant's internal controls that could significantly affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. ITEM 3. EXHIBITS. The following exhibits are attached to this Form N-Q: EXHIBIT NO. DESCRIPTION OF EXHIBIT 11 (a) (1) Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 11 (a) (2) Certification of Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 8 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. (Registrant): ACM Municipal Securities Income Fund, Inc. By: /s/ Marc O. Mayer ----------------- Marc O. Mayer President Date: September 27, 2004 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/ Marc O. Mayer ----------------- Marc O. Mayer President Date: September 27, 2004 By: /s/ Mark D. Gersten ------------------- Mark D. Gersten Treasurer and Chief Financial Officer Date: September 27, 2004 9