ALLIANCE GLOBAL STRATEGIC INCOME TRUST
500 PLAZA DRIVE, SECAUCUS, NJ 07094, (201) 319-4000
SEMI-ANNUAL REPORT
APRIL 30, 1998
(UNAUDITED)
LETTER TO SHAREHOLDERS ALLIANCE GLOBAL STRATEGIC INCOME TRUST
_______________________________________________________________________________
June 26, 1998
Dear Shareholder:
We are pleased to report to you on our strategy, performance and outlook of the
Alliance Global Strategic Income Trust, for the semi-annual reporting period
ended April 30, 1998. The Fund is designed for investors who seek high current
income and capital appreciation. To achieve this objective, the Fund invests in
a wide variety of fixed income markets including U.S. government, agency and
corporate securities, U.S. dollar-denominated government bonds of emerging
countries, and non-U.S. dollar denominated bonds of developed and emerging
markets, that we expect to benefit from improving economic and credit
fundamentals.
MARKET OVERVIEW
Over the six-month period under review, the U.S. economy continued its healthy
expansion, coupled with low inflation; this in spite of economic turmoil in
East Asia. Fueled by strong domestic demand, first quarter Gross Domestic
Product (GDP) growth, a standard measure of economic growth, grew 4.8%, an
increase from the fourth quarter of 1997. In addition, the Consumer Price Index
(CPI), a measure of inflation, recorded a 10 year low 1.4% increase over the 12
months ended in April, despite the tightest labor market in 28 years. Helped by
strong economic fundamentals and uncertainty overseas, the U.S. dollar
continued to strengthen against the major currencies.
Through December of 1997, the U.S. bond market continued to climb as investors,
concerned about events in the emerging markets, sought the safety of U.S.
Treasuries. When overseas markets stabilized in January and investor focus
shifted to short-term expectations of U.S. monetary policy, the market began
trading within a 30 basis point range until the end of the period. Over the
entire period, two year Treasury yields decreased slightly from 5.61% to 5.57%
and 30-year yields decreased from 6.15% to 5.95%. Sighting low inflation and
slowing demand from Asia, the Federal Reserve left interest rates unchanged.
In most developed countries outside of the U.S., growth remained positive while
inflation declined. European bond markets outperformed all other regions of the
world including the U.S., on a hedged basis. Modestly improving growth
prospects were offset by benign inflation as 11 countries, including Spain and
Italy, were formally recommended for membership in the European Monetary Union.
East Asian bond markets were the worst performing over the period. In Japan,
the already precarious economic recovery was further jeopardized by deepening
economic and financial turmoil in the region. In Australia, economic growth
remained strong but weak consumer surveys, falling commodity prices, and the
government's announcement that it will repurchase more of its debt, moved bond
prices higher.
Emerging market debt prices improved substantially during the first quarter of
1998 from the low levels reached late in 1997. As Korea's situation became
better defined, and their short-term debt was successfully rolled over,
investors moved back into the sector, reducing the risk premium back to spring
1997 levels. Countries such as Russia and Brazil, that had been particularly
hard hit last year, were the strongest performers, benefiting from improvement
in both general investor sentiment and their specific economic fundamentals.
Despite the temporary sell-off caused by the events in East Asia, emerging
market debt remained the best performing bond market sector over the period,
followed by high yield and fully hedged non-U.S. dollar denominated sovereign
debt. With interest rates trading in a relatively narrow range for much of the
period, investors aggressively pursued yield opportunities.
INVESTMENT STRATEGY
Over the period under review, we underweighted the U.S. bond market in order to
pursue higher yielding securities in foreign markets. Within the high yield
sector we closely followed the European telecommunications industry, which
benefited from recent deregulation. Within the non-U.S. dollar sector we were
overweighted in Italy and Spain, two European Monetary Union countries whose
debt has been gaining in value as they approach European currency union.
However, we recently sold our Spanish holdings after concluding that they had
reached their full price potential. Additionally, we invested in Swedish and
Australian government bonds. Both of these countries export heavily to Asia and
their economies are expected to slow as Asian growth slows, thus driving up the
value of their debt.
1
ALLIANCE GLOBAL STRATEGIC INCOME TRUST
_______________________________________________________________________________
INVESTMENT PERFORMANCE
The following table shows how your Fund performed over the past six and
12-month periods. For comparison, we have included the Lehman Brothers
Aggregate Bond Index, a standard measure of the performance of a basket of
unmanaged debt securities, and the Lipper Average of Multi-Sector Income Funds,
which reflects the average performance a group of funds with similar investment
objectives.
Over the six-month period under review, the Fund outperformed its benchmark and
its peers as a result of underweighting the U.S. market, which underperformed
relative to other markets. In addition, overweighting Italy and Spain helped
your Fund's performance. Italy and Spain were the top performing markets among
European Union countries. As European monetary union approaches, Italy and
Spain have been benefiting from a decrease in their credit risk. Furthermore,
your Fund's emerging market allocation enhanced performance over the period.
Specifically, holdings in Argentina, Brazil and Russia appreciated
significantly as investors returned to the sector.
INVESTMENT RESULTS*
Periods Ended April 30, 1998
TOTAL RETURNS
6 MONTHS 12 MONTHS
-------- ---------
ALLIANCE GLOBAL STRATEGIC
INCOME TRUST
Class A 7.88% 16.73%
Class B 7.55% 16.03%
Class C 7.55% 16.03%
LIPPER MULTI-SECTOR INCOME
FUNDS AVERAGE 4.55% 11.39%
LEHMAN BROTHERS AGGREGATE
BOND INDEX 3.59% 10.91%
* THE FUND'S INVESTMENT RESULTS REPRESENT TOTAL RETURNS AND ARE BASED ON THE
NET ASSET VALUE OF EACH CLASS OF SHARES AS OF APRIL 30, 1998. TOTAL RETURNS FOR
ADVISOR CLASS SHARES WILL DIFFER DUE TO DIFFERENT EXPENSES ASSOCIATED WITH THAT
CLASS. ALL FEES AND EXPENSES RELATED TO THE OPERATION OF THE FUND HAVE BEEN
DEDUCTED, BUT NO ADJUSTMENT HAS BEEN MADE FOR SALES CHARGES THAT MAY APPLY WHEN
SHARES ARE PURCHASED OR REDEEMED. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE
RESULTS.
THE UNMANAGED LEHMAN BROTHERS AGGREGATE BOND INDEX IS COMPOSED OF THE
MORTGAGE-BACKED SECURITIES INDEX, THE ASSET-BACKED SECURITIES INDEX AND THE
GOVERNMENT/CORPORATE BOND INDEX. THE UNMANAGED LIPPER MULTI-SECTOR INCOME FUNDS
AVERAGE REFLECTS THE PERFORMANCE OF 89 FUNDS FOR THE SIX-MONTH PERIOD AND 82
FUNDS FOR THE 12-MONTH PERIOD ENDED APRIL 30, 1998. THE AVERAGE HAS GENERALLY
SIMILAR INVESTMENT OBJECTIVES TO YOUR FUND, ALTHOUGH INVESTMENT POLICIES FOR
THE VARIOUS FUNDS MAY DIFFER. AN INVESTOR CANNOT INVEST DIRECTLY IN THE INDEX
OR AVERAGE.
ADDITIONAL INVESTMENT RESULTS APPEAR ON PAGE 4.
As of April 30, 1998, the Fund's total investments based on issuing country
were distributed as follows:
PORTFOLIO DISTRIBUTION BY COUNTRY
UNITED STATES 31.3%
SWEDEN 9.4%
GERMANY 8.5%
UNITED KINGDOM 6.1%
ARGENTINA 6.1%
ITALY 6.1%
MEXICO 5.0%
DENMARK 3.8%
AUSTRALIA 3.2%
RUSSIA 3.1%
BRAZIL 2.5%
OTHER 14.9%
ECONOMIC OUTLOOK
We anticipate global growth will be slower, and inflation pressures will
continue to be muted, as Asia exports cheaper goods to the world and imports
less from abroad. With global inflation under control and global growth at
risk, we expect monetary policy to remain substantially unchanged for most of
1998 in the U.S., Germany and Japan. In the U.S., growth is expected to slow
throughout the second quarter and perhaps into the third. U.S. interest rates
will remain in their recent trading range, with the 30 year Treasury yield
centered around 6.0%.
2
ALLIANCE GLOBAL STRATEGIC INCOME TRUST
_______________________________________________________________________________
European growth is expected to increase over 1997 levels in most countries,
reaching 2.5% to 3.0%, despite the drag on growth resulting from weakness in
Asia. In Japan, policy inaction and the economic consequences of Asia's
slowdown are damaging investor confidence and further weakening Japan's growth
prospects; Japan's GDP is expected to be negative in 1998. There are concerns
that a deflationary cycle could take hold in Japan. Japanese investors will
focus on the effect of the latest stimulus package on consumers and on the need
for structural reforms to encourage efficient capital flows.
Emerging market debt price volatility remains quite high, as renewed turmoil in
Asia has heightened investor concern about all higher yielding asset classes.
However, we remain positive in our view on Latin America. Although tougher
competition and falling demand from Asia will slow Latin American economies, we
still anticipate healthy growth in the region. In particular, we favor Mexico.
In Eastern Europe, we continue to view Poland positively because it continues
to have strong economic fundamentals and remains committed to economic reform.
Also, Poland will likely be the first Eastern European country to join the
European Union.
Thank you for your continued interest and investment in Alliance Global
Strategic Income Trust. We look forward to reporting to you again on market
activity and the Fund's investment results in coming periods.
Sincerely,
John D. Carifa
Chairman
Douglas Peebles
Vice President
SHARES OF THE FUND ARE NOT DEPOSITS OR OBLIGATIONS OF, GUARANTEED OR ENDORSED
BY, ANY BANK; FURTHER, SUCH SHARES ARE NOT FEDERALLY INSURED BY THE FEDERAL
DEPOSIT INSURANCE CORPORATION, THE FEDERAL RESERVE BOARD, OR ANY OTHER AGENCY.
SHARES OF THE FUND INVOLVE INVESTMENT RISKS, INCLUDING THE POSSIBLE LOSS OF
PRINCIPAL.
3
INVESTMENT OBJECTIVE AND POLICIES ALLIANCE GLOBAL STRATEGIC INCOME TRUST
_______________________________________________________________________________
Alliance Global Strategic Income Trust seeks to provide high current monthly
income and, secondarily, capital appreciation. The Trust invests in a wide
variety of fixed income markets including U.S. government and agency
securities, U.S. corporate securities, U.S. dollar-denominated government bonds
of emerging countries and non-U.S. dollar-denominated bonds of developed and
emerging markets.
INVESTMENT RESULTS
TOTAL RETURNS AS OF APRIL 30, 1998
CLASS A SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
------------ ------------
One Year 16.73% 11.79%
Since Inception* 18.42% 16.23%
SEC Yield** 5.33%
CLASS B SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
------------ ------------
One Year 16.03% 13.03%
Since Inception* 18.60% 18.21%
SEC Yield** 4.85%
CLASS C SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
------------ ------------
One Year 16.03% 15.03%
Since Inception* 18.60% 18.60%
SEC Yield** 4.85%
SEC AVERAGE ANNUAL TOTAL RETURNS AS OF THE MOST RECENT QUARTER-END (MARCH 31,
1998)
CLASS A CLASS B CLASS C
---------------------------------------
1 Year 13.58% 14.95% 16.95%
Since Inception 16.71% 18.85% 19.26%
The Fund's investment results represent average annual total returns. The NAV
and SEC returns reflect reinvestment of dividends and/or capital gains
distributions in additional shares without (NAV) and with (SEC) the effect of
the 4.25% maximum front-end sales charge for Class A or applicable contingent
deferred sales charge for Class B (4% year 1, 3% year 2, 2% year 3, 1% year 4);
and for Class C shares (1% year 1). Returns for Class A shares do not reflect
the imposition of the 1 year 1% contingent deferred sales charge for accounts
over $1,000,000. Total returns for Advisor Class shares will differ due to
different expenses associated with that class.
SEC average annual total returns for the periods shown reflect reinvestment of
all distributions and deduction of the maximum 4.25% front-end sales charges
and applicable contingent deferred sales charges.
Past performance does not guarantee future results. Investment return and
principal value will fluctuate so that an investor's shares, when redeemed, may
be worth more or less than their original cost.
* Inception: 1/9/96, Class A; 3/21/96, Class B and C.
** Yields are for the 30 day period ended April 30, 1998.
4
PORTFOLIO OF INVESTMENTS
APRIL 30, 1998 (UNAUDITED) ALLIANCE GLOBAL STRATEGIC INCOME TRUST
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) U.S. $ VALUE
- --------------------------------------------------------------------------
ARGENTINA-5.9%
CORPORATE DEBT OBLIGATION-1.4%
Perez Companc, SA
8.13%, 7/15/07 (a)(b) US$ 1,000 $ 970,499
GOVERNMENT OBLIGATIONS-4.5%
Republic of Argentina
11.375%, 1/30/17 US$ 1,000 1,106,250
Republic of Argentina
Pensioner-Bocon
Series 1 FRN
3.24%, 4/01/07 (b) ARS 2,529 1,871,662
2,977,912
Total Argentinian Securities
(cost $4,062,660) 3,948,411
AUSTRALIA-3.1%
CORPORATE DEBT OBLIGATION-1.1%
Glencore Nickel
9.00%,12/01/14 (a) US$ 750 740,625
GOVERNMENT OBLIGATIONS-2.0%
Republic of Australia
7.50%, 9/15/09 AU$ 1,000 738,999
9.50%, 8/15/03 750 577,975
1,316,974
Total Australian Securities
(cost $2,079,607) 2,057,599
BRAZIL-2.5%
CORPORATE DEBT OBLIGATION-0.7%
Trikem, SA
10.63%, 7/24/07 (a)(b) US$ 500 466,250
GOVERNMENT OBLIGATION-1.8%
Republic of Brazil
10.13%, 5/15/27 1,200 1,170,000
Total Brazilian Securities
(cost $1,634,009) 1,636,250
CHINA-0.8%
CORPORATE DEBT OBLIGATION-0.8%
Cathay International Ltd.
13.00%, 4/15/08 (a)
(cost $500,000) US$ 500 502,500
COLOMBIA-1.8%
GOVERNMENT OBLIGATION-1.8%
Republic of Colombia
8.63%, 4/01/08
(cost $1,209,888) US$ 1,200 1,200,000
DENMARK-3.7%
GOVERNMENT OBLIGATION-3.7%
Kingdom of Denmark
7.00%, 11/15/07 (b)
(cost $2,445,808) DKK 15,000 2,473,911
DOMINICAN REPUBLIC-1.5%
CORPORATE DEBT OBLIGATION-1.5%
Tricom, SA
11.38%, 9/01/04 (a)
(cost $1,040,000) US$ 1,000 1,032,500
ECUADOR-1.6%
CORPORATE DEBT OBLIGATION-1.6%
Conecel Holdings, Ltd.
14.00%, 10/01/00 (a)
(cost $1,065,000) US$ 1,000 1,085,000
GERMANY-8.2%
CORPORATE DEBT OBLIGATION-1.9%
Central Euro Media
8.13%, 8/15/04 DEM 1,410 756,354
Viatel, Inc.
11.15%, 4/15/08 (a)(c) 500 295,380
12.40%, 4/15/08 (a)(c) 700 237,976
1,289,710
5
PORTFOLIO OF INVESTMENTS (CONTINUED) ALLIANCE GLOBAL STRATEGIC INCOME TRUST
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) U.S. $ VALUE
- --------------------------------------------------------------------------
GOVERNMENT OBLIGATION-6.3%
Republic of Germany
6.00%, 7/04/07 (b) DEM 7,000 $ 4,184,083
Total German Securities
(cost $5,446,172) 5,473,793
HONG KONG-1.3%
CORPORATE DEBT OBLIGATION-1.3%
DAO Heng Bank
7.75%, 1/24/07 (a)
(cost $824,718) US$ 1,000 881,250
ITALY-5.8%
GOVERNMENT OBLIGATIONS-5.8%
Republic of Italy
6.25%, 3/01/02 (b) ITL 2,000,000 1,185,285
6.25%, 5/15/02 (b) 3,000,000 1,781,653
8.25%, 7/01/01 (b) 1,500,000 932,654
Total Italian Securities
(cost $3,838,949) 3,899,592
MEXICO-4.8%
CORPORATE DEBT OBLIGATION-1.5%
Petroleos Mexicanos
9.25%, 3/30/18 (a) US$ 1,000 977,500
GOVERNMENT OBLIGATIONS-3.3%
Mexican Treasury Bills
20.30%, 7/02/98 (b)(d) MXP 4,070 464,178
20.45%,11/19/98 (b)(d) 7,312 777,428
United Mexican States
8.75%, 5/30/02 GBP 600 990,304
------------
2,231,910
Total Mexican Securities
(cost $3,261,560) 3,209,410
NORWAY-1.4%
GOVERNMENT OBLIGATIONS-1.4%
Kingdom of Norway
5.75%, 11/30/04 (b) NOK 3,000 411,402
9.00%, 1/31/99 (b) 3,900 539,687
Total Norwegian Securities
(cost $993,240) 951,089
PERU-1.4%
CORPORATE DEBT OBLIGATION-1.4%
Republic of Peru FLIRB
3.25%, 3/07/17 (a)
(cost $894,530) US$ 1,500 918,750
POLAND-1.1%
CORPORATE DEBT OBLIGATION-1.1%
Netia Holdings, BV
Zero coupon, 11/01/07 (d)
(cost $689,031) DEM 2,000 760,742
QUATAR-0.7%
CORPORATE DEBT OBLIGATION-0.7%
Ras Laffan Liquid Natural Gas
8.29%, 3/15/14 (a)(b)
(cost $462,945) US$ 450 469,125
RUSSIA-3.0%
GOVERNMENT OBLIGATIONS-3.0%
Russian Principle Loan FRN
6.625%, 12/15/20 (e) US$ 2,000 1,248,000
Russian IAN FRN
6.719%, 12/15/15 1,000 718,750
Total Russian Securities
(cost $2,068,777) 1,966,750
6
ALLIANCE GLOBAL STRATEGIC INCOME TRUST
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) U.S. $ VALUE
- --------------------------------------------------------------------------
SOUTH AFRICA-1.5%
CORPORATE DEBT OBLIGATIONS-1.5%
Development Bank of
South Africa
18.59%, 12/31/27 (d)
(cost $304,189) ZAR 50,000 $ 296,736
European Bank for Reconstruction &
Development
Zero coupon, 12/31/29 (c) 50,000 316,518
International Bank for Reconstruction &
Development
Zero coupon, 2/17/26 (c) 50,000 435,213
Total South African Securities
(cost $1,138,853) 1,048,467
SOUTH KOREA-1.2%
GOVERNMENT OBLIGATION-1.2%
Republic of Korea
8.88%, 4/15/08
(cost $794,602) US$ 800 788,800
SWEDEN-9.1%
GOVERNMENT OBLIGATIONS-9.1%
Government of Sweden
5.50%, 4/12/02 (b) SEK 14,500 1,902,052
8.00%, 8/15/07 (b) 6,500 998,572
10.25%, 5/05/03 (b) 20,000 3,156,491
Total Swedish Securities
(cost $6,091,982) 6,057,115
UNITED KINGDOM-5.9%
CORPORATE DEBT OBLIGATIONS-3.2%
Ineos Plc.
8.63%, 4/30/05 DEM 700 395,976
IPC Magazines Group Plc.
Zero coupon, 3/15/08 (a) GBP 1,200 1,186,639
Royal Bank of Scotland
8.38%, 1/29/07 300 551,172
------------
2,133,787
GOVERNMENT OBLIGATION-2.7%
U. K. Treasury Gilts
9.00%, 10/13/08 GBP 850 1,769,212
Total United Kingdom Securities
(cost $3,870,130) 3,902,999
UNITED STATES-30.2%
CORPORATE DEBT OBLIGATIONS-8.2%
Comcast Cable Communications
8.88%, 5/01/17 US$ 1,500 1,756,380
InterAmericas Communication
14.00%, 10/27/07 (a)(b) 500 511,250
Iridium LLC Capital Corp.
14.00%, 7/15/05 (a)(b) 500 570,000
OpTel Inc., Series B
13.00%, 2/15/05 (b)(f) 500 561,250
Providian Capital I
9.53%, 2/01/27 (a)(b) 400 445,131
Riggs Capital, Trust II
8.88%, 3/15/27 (a)(b) 500 538,778
RSL Communications Plc.
10.00%, 3/15/08 (a)(g) DEM 1,000 344,145
Time Warner, Inc.
7.25%, 10/15/17 US$ 750 761,669
------------
5,488,603
PREFERRED STOCKS-3.1%
Nextel
Series E
11.13%, 2/15/10 (a)(h) 11,067,500
Tokai Capital Co. LLC
9.98%, 12/29/49 (a) 1,000 987,909
------------
2,055,409
TIME DEPOSIT-10.4%
Rabobank
5.44%, 5/01/98 US$ 6,900 6,900,000
7
PORTFOLIO OF INVESTMENTS (CONTINUED) ALLIANCE GLOBAL STRATEGIC INCOME TRUST
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) U.S. $ VALUE
- --------------------------------------------------------------------------
U.S. GOVERNMENT
OBLIGATIONS-8.5%
U.S. Treasury Bonds
13.75%, 8/15/04 US$ 3,000 $ 4,253,436
U.S. Treasury Notes
6.50%, 5/31/02 1,400 1,441,562
------------
5,694,998
Total United States Securities
(cost $19,903,794) 20,139,010
TOTAL INVESTMENTS-96.5%
(cost $64,316,255) $64,403,063
Other assets less liabilities-3.5% 2,325,227
NET ASSETS-100% $66,728,290
(a) Securities are exempt from registration under Rule 144a of the Securities
Act of 1933. These securities may be resold in transactions exempt fom
registration, normally to qualified institutional buyers. At April 30, 1998
these securities amounted to $14,228,707 or 21.32% of net assets.
(b) Securities, or a portion thereof, with an aggregate market value of
$25,211,341 have been segregated to collateralize forward exchange currency
contracts.
(c) Unit consists of 1 senior discount note and 2.77 junior subordinate
debentures.
(d) Annualized yield to maturity at purchase date.
(e) Coupon consists of 3.3125% cash payments and 3.3125% paid-in kind Russian
IAN.
(f) Consists of $500,000 senior notes and 500 shares of common stock.
(g) Coupon increases periodically based upon predetermined schedule. Stated
interest rate in effect at April 30, 1998.
(h) PIK preferred quarterly stock payments.
Glossary of terms:
FLIRB - Front Loaded Interest Reduction Bond.
FRN - Floating Rate Note.
See notes to financial statements
8
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1998 (UNAUDITED) ALLIANCE GLOBAL STRATEGIC INCOME TRUST
_______________________________________________________________________________
ASSETS
Investments in securities, at value (cost $64,316,255) $64,403,063
Receivable for investment securities sold 12,020,327
Receivable for capital stock sold 2,221,668
Interest receivable 1,208,416
Receivable from adviser 6,615
Deferred organization expenses 82,001
Total assets 79,942,090
LIABILITIES
Due to custodian 967,368
Payable for investment securities purchased 11,710,513
Dividend payable 151,151
Unrealized depreciation of forward exchange currency contracts 135,179
Payable for capital stock sold 126,081
Distribution fee payable 37,729
Accrued expenses and other liabilities 85,779
Total liabilities 13,213,800
NET ASSETS $66,728,290
COMPOSITION OF NET ASSETS
Capital stock, at par $5,849
Additional paid-in capital 66,058,799
Distributions in excess of net investment income (568,751)
Accumulated net realized gain on investments and foreign
currency transactions 1,299,956
Net unrealized depreciation of investments and foreign
currency denominated assets and liabilities (67,563)
$66,728,290
CALCULATION OF MAXIMUM OFFERING PRICE
CLASS A SHARES
Net asset value and redemption price per share ($21,877,148/
1,916,825 shares of capital stock issued and outstanding) $11.41
Sales Charge--4.25% of public offering price .51
Maximum offering price $11.92
CLASS B SHARES
Net asset value and offering price per share ($35,839,731/
3,142,148 shares of capital stock issued and outstanding) $11.41
CLASS C SHARES
Net asset value and offering price per share ($8,017,205/
702,758 shares of capital stock issued and outstanding) $11.41
ADVISOR CLASS SHARES
Net asset value, redemption and offering price per share
$994,206/87,089 shares of capital stock issued and
outstanding) $11.42
See notes to financial statements.
9
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 1998 (UNAUDITED)
ALLIANCE GLOBAL STRATEGIC INCOME TRUST
_______________________________________________________________________________
INVESTMENT INCOME
Interest $2,052,406
EXPENSES
Advisory fee $175,105
Distribution fee - Class A 23,946
Distribution fee - Class B 126,581
Distribution fee - Class C 24,462
Custodian 79,135
Administration 72,500
Audit and legal 49,574
Registration 33,942
Transfer agency 19,886
Amortization of organization expenses 14,842
Directors' fees 10,694
Printing 10,052
Miscellaneous 2,816
Total expenses 643,535
Less: expenses waived and assumed by Adviser
(see Note B) (94,969)
Net expenses 548,566
Net investment income 1,503,840
REALIZED AND UNREALIZED GAIN ON INVESTMENTS AND
FOREIGN CURRENCY TRANSACTIONS
Net realized gain on investment transactions 791,204
Net realized gain on foreign currency transactions 509,895
Net change in unrealized depreciation of:
Investment transactions 500,166
Foreign currency denominated assets and liabilities 94,115
Net gain on investments 1,895,380
NET INCREASE IN NET ASSETS FROM OPERATIONS $3,399,220
See notes to financial statements.
10
STATEMENT OF CHANGES
IN NET ASSETS ALLIANCE GLOBAL STRATEGIC INCOME TRUST
_______________________________________________________________________________
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1998 OCTOBER 31,
(UNAUDITED) 1997
----------------- ------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
Net investment income 1,503,840 $ 1,111,926
Net realized gain on investments and
foreign currency transactions 1,301,099 1,785,344
Net change in unrealized appreciation
(depreciation) of investments and
foreign currency denominated assets
and liabilities. 594,281 (827,989)
Net increase in net assets from
operations 3,399,220 2,069,281
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income
Class A (766,166) (382,874)
Class B (1,131,670) (581,432)
Class C (220,029) (147,620)
Advisor Class (24,905) -0-
Distributions in excess of net
investment income
Class A -0- (142,461)
Class B -0- (253,949)
Class C -0- (64,814)
Net realized gain on investments
Class A (429,062) (22,494)
Class B (663,991) (23,190)
Class C (138,457) (10,520)
CAPITAL STOCK TRANSACTIONS
Net increase 30,506,158 31,913,077
Total increase 30,531,098 32,353,004
NET ASSETS
Beginning of year 36,197,192 3,844,188
End of period (including undistributed
net investment income of $70,179 at
October 31, 1997) $66,728,290 $36,197,192
See notes to financial statements.
11
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1998 (UNAUDITED) ALLIANCE GLOBAL STRATEGIC INCOME TRUST
_______________________________________________________________________________
NOTE A: SIGNIFICANT ACCOUNTING POLICIES
Alliance Global Strategic Income Trust, Inc. (the "Fund") was incorporated in
the State of Maryland on October 25, 1995 as a non-diversified, open-end
management investment company. Prior to commencement of operations on January
9, 1996, the Fund had no operations other than the sale to Alliance Capital
Management L.P. (the "Adviser") of 10,000 shares of Class A shares for the
aggregate amount of $100,000 on December 18, 1995. The Fund offers Class A,
Class B, Class C and Advisor Class shares. Class A shares are sold with a
front-end sales charge of up to 4.25% for purchases not exceeding $1,000,000.
With respect to purchases of $1,000,000 or more, Class A shares redeemed within
one year of purchase will be subject to a contingent deferred sales charge of
1%. Class B shares are currently sold with a contingent deferred sales charge
which declines from 4% to zero depending on the period of time the shares are
held. Class B shares will automatically convert to Class A shares eight years
after the end of the calendar month of purchase. Class C shares are subject to
a contingent deferred sales charge of 1% on redemptions made within the first
year after purchase. Advisor Class shares are sold without an initial or
contingent deferred sales charge and are not subject to ongoing distribution
expenses. Advisor Class shares are offered to investors participating in
fee-based programs and to certain retirement plan accounts. All four classes of
shares have identical voting, dividend, liquidation and other rights and the
same terms and conditions, except that each class bears different distribution
expenses and has exclusive voting rights with respect to its distribution plan.
The financial statements have been prepared in conformity with generally
accepted accounting principles which require management to make certain
estimates and assumptions that affect the reported amounts of assets and
liabilities in the financial statements and amounts of income and expenses
during the reporting period. Actual reports could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Fund.
1. SECURITY VALUATION
Portfolio securities traded on a national securities exchange or on a foreign
securities exchange (other than foreign securities exchanges whose operations
are similar to those of the United States over-the-counter market) are
generally valued at the last reported sale price or if there was no sale on
such day, the last bid price quoted on such day. If no bid prices are quoted,
then the security is valued at the mean of the bid and asked price as obtained
on that day from one or more dealers regularly making a market in that
security. Securities traded on the over-the-counter market, securities listed
on a foreign securities market whose operations are similar to the United
States over-the-counter market and securities listed on a national securities
exchange whose primary market is believed to be over-the-counter are valued at
the mean of the closing bid and asked price provided by two or more dealers
regularly making a market in such securities. U.S. government securities and
other debt securities which mature in 60 days or less are valued at amortized
cost unless this method does not represent fair value. Securities for which
market quotations are not readily available are valued at fair value as
determined in good faith by, or in accordance with procedures approved by, the
Board of Directors. Fixed income securities may be valued on the basis of
prices provided by a pricing service when such prices are believed to reflect
the fair market value of such securities.
2. CURRENCY TRANSLATION
Assets and liabilities denominated in foreign currencies and commitments under
forward exchange currency contracts are translated into U.S. dollars at the
mean of the quoted bid and asked price of such currencies against the U.S.
dollar. Purchases and sales of portfolio securities are translated at the rates
of exchange prevailing when such securities were acquired or sold. Income and
expenses are translated at rates of exchange prevailing when earned or accrued.
Net realized gains or losses on foreign currency transactions represent foreign
exchange gains and losses from sales and maturities of securities and forward
exchange currency contracts, holdings of foreign currencies, exchange gains and
losses realized between the trade and settlement dates on investment
transactions, and the difference between the amounts of interest recorded on
the Fund's books and the U.S. dollar equivalent amounts actually received or
paid. Net change in unrealized appreciation (depreciation) of foreign currency
12
ALLIANCE GLOBAL STRATEGIC INCOME TRUST
_______________________________________________________________________________
denominated assets and liabilities represents net currency gains and losses
from valuing foreign currency denominated assets and liabilities at period end
exchange rates.
3. ORGANIZATION EXPENSES
Organization expenses of approximately $151,270 have been deferred and are
being amortized on a straight-line basis through January 2001.
4. TAXES
It is the Fund's policy to meet the requirements of the Internal Revenue Code
applicable to regulated investment companies and to distribute all of its
investment company taxable income and net realized gains, if any, to
shareholders. Therefore, no provision for federal income or excise taxes is
required.
5. INCOME AND EXPENSES
All income earned and expenses incurred by the Fund are borne on a pro-rata
basis by each settled class of shares, based on the proportionate interest in
the Fund represented by the shares of such class, except that the Fund's Class
B and Class C shares bear higher distribution and transfer agent fees than
Class A shares and the Advisor Class shares have no distribution fees.
6. INVESTMENT INCOME AND INVESTMENT TRANSACTIONS
Interest income is accrued daily. Investment transactions are accounted for on
the date the securities are purchased or sold. Investment gains and losses are
determined on the identified cost basis. The Fund accretes discounts as an
adjustment to interest income.
7. DIVIDENDS AND DISTRIBUTIONS
Dividends and distributions to shareholders are recorded on the ex-dividend
date.
Income and capital gains distributions are determined in accordance with
federal tax regulations and may differ from those determined in accordance with
generally accepted accounting principles. To the extent these differences are
permanent, such amounts are reclassified within the capital accounts based on
their federal tax basis treatment; temporary differences do not require such
reclassification.
NOTE B: ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under the terms of an investment advisory agreement, the Fund pays Alliance
Capital Management L.P. (the "Adviser") an advisory fee at an annual rate of
.75 of 1% of the average daily net assets of the Fund. Such fee is accrued
daily and paid monthly.
The Adviser has agreed to voluntarily waive its fees and bear certain expenses
so that total expenses do not exceed on an annual basis 1.90%, 2.60%, 2.60% and
1.60 of the average daily net assets for the Class A, Class B, Class C and
Advisor Class shares respectively.
For the six months ended April 30, 1998, the Adviser waived part of its
advisory fees. Such waiver amounted to $22,469. Pursuant to the Advisory
Agreement, the Fund may reimburse the Adviser for certain legal and accounting
services provided to the Fund by the Adviser. For the six months ended April
30, 1998, the Adviser agreed to waive fees for certain legal and accounting
services in the amount of $72,500.
The Fund compensates Alliance Fund Services, Inc. (a wholly-owned subsidiary of
the Adviser) under a Transfer Agency Agreement for providing personnel and
facilities to perform transfer agency services for the Fund. Such compensation
amounted to $18,199 for the six months ended April 30, 1998.
Alliance Fund Distributors, Inc. (a wholly-owned subsidiary of the Adviser)
serves as the Distributor of the Fund's shares. The Distributor received
front-end sales charges of $5,708 from the sale of Class A shares and $41,002,
and $1,949 in contingent deferred sales charges imposed upon redemptions by
shareholders of Class B and Class C shares, respectively, for the six months
ended April 30, 1998.
NOTE C: DISTRIBUTION SERVICES AGREEMENT
The Fund has adopted a Distribution Services Agreement (the "Agreement")
pursuant to Rule 12b-1 under the Investment Company Act of 1940. Under the
Agreement, the Fund pays a distribution fee to the Distributor at an annual
rate of up to .30 of 1% of the average daily net
13
NOTES TO FINANCIAL STATEMENTS
(CONTINUED) ALLIANCE GLOBAL STRATEGIC INCOME TRUST
_______________________________________________________________________________
assets attributable to the Class A shares and up to 1% of the average daily net
assets attributable to both Class B and Class C shares.
There is no distribution fee on the Advisor Class shares. The fees are accrued
daily and paid monthly. The Agreement provides that the Distributor will use
such payments in their entirety for distribution assistance and promotional
activities. The Distributor has incurred expenses in excess of the distribution
costs reimbursed by the Fund in the amount of $1,770,422 and $242,386 for Class
B and Class C shares, respectively. Such costs may be recovered from the Fund
in future periods so long as the Agreement is in effect. In accordance with the
Agreement, there is no provision for recovery of unreimbursed distribution
costs, incurred by the Distributor, beyond the current fiscal period for Class
A shares. The Agreement also provides that the Adviser may use its own
resources to finance the distribution of the Fund's shares.
NOTE D: INVESTMENT TRANSACTIONS
Purchases and sales of investment securities (excluding short-term investments
and U.S. government obligations) aggregated $67,550,713 and $47,790,920,
respectively, for the six months ended April 30, 1998. There were purchases of
$7,757,719 and sales of $5,648,047 of U.S. government and government agency
obligations for the six months ended April 30, 1998.
At April 30, 1998, the cost of investments for federal income tax purposes was
the same as the cost for financial reporting purposes. Accordingly, gross
unrealized appreciation of investments was $781,302 and gross unrealized
depreciation of investments was $694,494, resulting in net unrealized
appreciation of $86,808 (excluding foreign currency transactions).
1. FORWARD EXCHANGE CURRENCY CONTRACTS
The Fund enters into forward exchange currency contracts to hedge its exposure
to changes in foreign currency exchange rates on its foreign portfolio
holdings, to hedge certain firm purchase and sales commitments denominated in
foreign currencies and for investment purposes. A forward exchange currency
contract is a commitment to purchase or sell a foreign currency at a future
date at a negotiated forward rate. The gain or loss arising from the difference
between the original contracts and the closing of such contracts is included in
realized gains or losses from foreign currency transactions.
Fluctuations in the value of forward exchange currency contracts are recorded
for financial reporting purposes as unrealized gains or losses by the Fund.
The Fund's custodian will place and maintain cash not available for investment
or other liquid assets in a separate account of the Fund having a value equal
to the aggregate amount of the Fund's commitments under forward exchange
currency contracts entered into with respect to position hedges.
Risks may arise from the potential inability of a counterparty to meet the
terms of a contract and from unanticipated movements in the value of a foreign
currency relative to the U.S. dollar. The face or contract amount, in U.S.
dollars, as reflected in the following table, reflects the total exposure the
Fund has in that particular currency contract.
At April 30, 1998, the Fund had outstanding forward exchange currency
contracts, as follows:
U.S. $
CONTRACT VALUE ON U.S. $ UNREALIZED
AMOUNT ORIGINATION CURRENT APPRECIATION
(000) DATE VALUE (DEPRECIATION)
-------- ------------ -------- --------------
FORWARD EXCHANGE CURRENCY
BUY CONTRACTS
Australian Dollars,
settling 7/23/98 2,112 $1,394,947 $1,379,581 $(15,366)
British Pounds,
settling 5/18/98 1,946 3,245,889 3,253,772 7,883
14
ALLIANCE GLOBAL STRATEGIC INCOME TRUST
_______________________________________________________________________________
U.S. $
CONTRACT VALUE ON U.S. $ UNREALIZED
AMOUNT ORIGINATION CURRENT APPRECIATION
(000) DATE VALUE (DEPRECIATION)
-------- ------------ -------- --------------
FORWARD EXCHANGE CURRENCY
BUY CONTRACTS
Deutsche Marks,
settling 6/17/98-8/20/98 5,617 $3,117,442 $3,143,839 $ 26,397
Spanish Pesetas,
settling 7/14/98 29,754 195,528 195,786 258
Swiss Francs,
settling 5/13/98 1,971 1,327,355 1,314,101 (13,254)
FORWARD EXCHANGE CURRENCY
SALE CONTRACTS
Australian Dollars,
settling 7/23/98 2,972 1,974,904 1,941,277 33,627
British Pounds,
settling 5/18/98 5,057 8,290,220 8,452,678 (162,458)
Danish Krone,
settling 6/02/98 15,854 2,317,371 2,320,240 (2,869)
Deutsche Marks,
settling 6/17/98-8/20/98 14,949 8,371,876 8,381,565 (9,689)
French Francs,
settling 7/15/98 10,023 1,650,472 1,674,422 (23,950)
Italian Lira,
settling 6/26/98 6,770,865 3,762,349 3,824,769 (62,420)
Japanese Yen,
settling 6/17/98 285,460 2,217,141 2,169,411 47,730
New Zealand Dollars,
settling 6/17/98 539 295,312 298,166 (2,854)
Spanish Pesetas,
settling 7/14/98 29,754 193,734 195,786 (2,052)
Swedish Krona,
settling 5/13/98 47,092 6,092,834 6,091,100 1,734
Swiss Francs,
settling 5/13/98 1,971 1,356,204 1,314,100 42,104
$(135,179)
2. OPTION TRANSACTIONS
For hedging and investment purposes, the Fund purchases and writes (sells) put
and call options on U.S. and foreign government securities and foreign
currencies that are traded on U.S. and foreign securities exchanges and
over-the-counter markets.
The risk associated with purchasing an option is that the Fund pays a premium
whether or not the option is exercised. Additionally, the Fund bears the risk
of loss of premium and change in market value should the counterparty not
perform under the contract. Put and call options purchased are accounted for in
the same manner as portfolio securities. The cost of securities acquired
through the exercise of call options is increased by premiums paid. The
proceeds from securities sold through the exercise of put options are decreased
by the premiums paid.
15
NOTES TO FINANCIAL STATEMENTS
(CONTINUED) ALLIANCE GLOBAL STRATEGIC INCOME TRUST
_______________________________________________________________________________
When the Fund writes an option, the premium received by the Fund is recorded as
a liability and is subsequently adjusted to the current market value of the
option written. Premiums received from written options which expire unexercised
are recorded by the Fund on the expiration date as realized gains from options
written. The difference between the premium received and the amount paid on
effecting a closing purchase transaction, including brokerage commissions, is
also treated as a realized gain, or if the premium received is less than the
amount paid for the closing purchase transaction, as a realized loss. If a call
option is exercised, the premium received is added to the proceeds from the
sale of the underlying security or currency in determining whether the Fund has
realized a gain or loss. If a put option is exercised, the premium received
reduces the cost basis of the security or currency purchased by the Fund. The
risk involved in writing an option is that, if the option was exercised the
underlying security could then be purchased or sold by the Fund at a
disadvantageous price. There were no transactions in written options for the
six months ended April 30, 1998.
NOTE E: CAPITAL STOCK
There are 12,000,000 shares of $.001 par value capital stock authorized,
divided into four classes, designated Class A, Class B, Class C and Advisor
Class shares. Each class consists of 3,000,000 authorized shares. Transactions
in capital stock were as follows:
SHARES AMOUNT
------------------------- ------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1998 OCTOBER 31, APRIL 30, 1998 OCTOBER 31,
(UNAUDITED) 1997 (UNAUDITED) 1997
----------- ------------ -------------- --------------
CLASS A
Shares sold 798,154 1,031,467 $ 9,076,326 $ 11,857,018
Shares issued in
reinvestment of
dividends and
distributions 72,390 23,531 813,504 268,816
Shares converted
from Class B 2,271 3,566 25,911 40,424
Shares redeemed (86,624) (139,876) (988,034) (1,591,569)
Net increase 786,191 918,688 $ 8,927,707 $ 10,574,689
CLASS B
Shares sold 1,691,160 1,904,244 $ 19,182,054 $ 21,544,554
Shares issued in
reinvestment of
dividends and
distributions 71,187 26,698 799,190 304,645
Shares converted
to Class A (2,271) (3,566) (25,911) (40.424)
Shares redeemed (263,520) (355,663) (2,997,610) (4,010,478)
Net increase 1,496,556 1,571,713 $ 16,957,723 $ 17,798,297
CLASS C
Shares sold 377,909 425,583 $ 4,301,752 $ 4,822,709
Shares issued in
reinvestment of
dividends and
distributions 11,783 5,283 132,172 60,139
Shares redeemed (69,902) (117,161) (789,946) (1,342,757)
Net increase 319,790 313,705 $ 3,643,978 $ 3,540,091
16
ALLIANCE GLOBAL STRATEGIC INCOME TRUST
_______________________________________________________________________________
SHARES AMOUNT
------------------------- ------------------------------
DECEMBER 22, 1997* DECEMBER 22, 1997*
TO TO
APRIL 30, 1998 APRIL 30, 1998
(UNAUDITED) (UNAUDITED)
----------- --------------
ADVISOR CLASS
Shares sold 85,946 $ 963,614
Shares issued in
reinvestment of
dividends 1,201 13,803
Shares redeemed (58) (667)
Net increase 87,089 $ 976,750
* Commencement of distribution.
17
FINANCIAL HIGHLIGHTS ALLIANCE GLOBAL STRATEGIC INCOME TRUST
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
CLASS A
-------------------------------------------
SIX MONTHS ENDED JANUARY 9, 1996(A)
APRIL 30, 1998 YEAR ENDED TO
(UNAUDITED) OCT. 31, 1997 OCT. 31, 1996
----------- ----------- -----------
<S> <C> <C> <C>
Net asset value, beginning of period $11.46 $10.83 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b)(c) .38 .74 .69
Net realized and unrealized gain on
investments and foreign
currency transactions .48 1.02 .95
Net increase in net asset
value from operations .86 1.76 1.64
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.55) (.75) (.81)
Distributions in excess of net
investment income -0- (.28) -0-
Distributions from net realized
gains on investments (.36) (.10) -0-
Total dividends and distributions (.91) (1.13) (.81)
Net asset value, end of period $11.41 $11.46 $10.83
TOTAL RETURN
Total investment return based on net
asset value(d) 7.88% 16.83% 17.31%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(000's omitted) $21,877 $12,954 $2,295
Ratio to average net assets of:
Expenses, net of waivers/reimbursements 1.90%(e) 1.90% 1.90%(e)
Expenses, before waivers/reimbursements 2.00%(e) 4.06% 19.20%(e)
Net investment income 6.91%(e) 6.56% 8.36%(e)
Portfolio turnover rate 247% 417% 282%
</TABLE>
See footnote summary on page 21.
18
ALLIANCE GLOBAL STRATEGIC INCOME TRUST
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
CLASS B
-------------------------------------------
SIX MONTHS ENDED MARCH 21, 1996(F)
APRIL 30, 1998 YEAR ENDED TO
(UNAUDITED) OCT. 31, 1997 OCT. 31, 1996
----------- ----------- -----------
<S> <C> <C> <C>
Net asset value, beginning of period $11.46 $10.83 $9.97
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b)(c) .34 .66 .41
Net realized and unrealized gain on
investments and foreign
currency transactions .48 1.03 1.01
Net increase in net asset value from
operations .82 1.69 1.42
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.51) (.67) (.56)
Distributions in excess of net
investment income -0- (.29) -0-
Distributions from net realized
gains on investments (.36) (.10) -0-
Total dividends and distributions (.87) (1.06) (.56)
Net asset value, end of period $11.41 $11.46 $10.83
TOTAL RETURN
Total investment return based on net
asset value(d) 7.55% 16.12% 14.47%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(000's omitted) $35,840 $18,855 $800
Ratio to average net assets of:
Expenses, net of waivers/reimbursements 2.60%(e) 2.60% 2.60%(e)
Expenses, before waivers/reimbursements 2.69%(e) 4.76% 19.57%(e)
Net investment income 6.17%(e) 5.86% 7.26%(e)
Portfolio turnover rate 247% 417% 282%
</TABLE>
See footnote summary on page 21.
19
FINANCIAL HIGHLIGHTS (CONTINUED) ALLIANCE GLOBAL STRATEGIC INCOME TRUST
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
CLASS C
-------------------------------------------
SIX MONTHS ENDED MARCH 21, 1996(F)
APRIL 30, 1998 YEAR ENDED TO
(UNAUDITED) OCT. 31, 1997 OCT. 31, 1996
----------- ----------- -----------
<S> <C> <C> <C>
Net asset value, beginning of period $11.46 $10.83 $ 9.97
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b)(c) .33 .66 .39
Net realized and unrealized gain on
investments and foreign currency
transactions .49 1.03 1.03
Net increase in net asset value
from operations .82 1.69 1.42
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.51) (.67) (.56)
Distributions in excess of net
investment income -0- (.29) -0-
Distributions from net realized gains
on investments (.36) (.10) -0-
Total dividends and distributions (.87) (1.06) (.56)
Net asset value, end of period $11.41 $11.46 $10.83
TOTAL RETURN
Total investment return based on net
asset value(d) 7.55% 16.12% 14.47%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $8,017 $4,388 $750
Ratio to average net assets of:
Expenses, net of waivers/reimbursements 2.60%(e) 2.60% 2.60%(e)
Expenses, before waivers/reimbursements 2.71%(e) 4.77% 19.49%(e)
Net investment income 6.18%(e) 5.86% 7.03%(e)
Portfolio turnover rate 247% 417% 282%
</TABLE>
See footnote summary on page 21.
20
ALLIANCE GLOBAL STRATEGIC INCOME TRUST
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
ADVISOR CLASS
--------------------
DECEMBER 22, 1997(F)
TO
APRIL 30, 1998
(UNAUDITED)
--------------------
Net asset value, beginning of period $11.09
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b)(c) .44
Net realized and unrealized gain on investments
and foreign currency transactions .28
Net increase in net asset value from operations .72
LESS: DIVIDENDS
Dividends from net investment income (.39)
Net asset value, end of period $11.42
TOTAL RETURN
Total investment return based on net asset value(d) 6.82%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $994
Ratio to average net assets of:
Expenses, net of waivers/reimbursements 1.60%(e)
Expenses, before waivers/reimbursements 1.65%(e)
Net investment income 7.57%(e)
Portfolio turnover rate 247%
(a) Commencement of operations.
(b) Based on average shares outstanding.
(c) Net of expenses waived/reimbursed by the Adviser.
(d) Total investment return is calculated assuming an initial investment made
at the net asset value at the beginning of the period, reinvestment of all
dividends and distributions at net asset value during the period, and
redemption on the last day of the period. Total investment return calculated
for a period of less than one year is not annualized.
(e) Annualized.
(f) Commencement of distribution.
21
ALLIANCE GLOBAL STRATEGIC INCOME TRUST
_______________________________________________________________________________
BOARD OF DIRECTORS
JOHN D. CARIFA, CHAIRMAN AND PRESIDENT
RUTH BLOCK (1)
DAVID H. DIEVLER (1)
JOHN H. DOBKIN (1)
WILLIAM H. FOULK, JR. (1)
DR. JAMES M. HESTER (1)
CLIFFORD L. MICHEL (1)
DONALD J. ROBINSON (1)
OFFICERS
KATHLEEN A. CORBET, SENIOR VICE PRESIDENT
WAYNE D. LYSKI, SENIOR VICE PRESIDENT
DOUGLAS J. PEEBLES, VICE PRESIDENT
EDMUND P. BERGAN, JR., SECRETARY
MARK D. GERSTEN, TREASURER & CHIEF FINANCIAL OFFICER
JUAN J. RODRIGUEZ, CONTROLLER
CUSTODIAN
BROWN BROTHERS HARRIMAN & CO.
40 Water Street
Boston, MA 02109
PRINCIPAL UNDERWRITER
ALLIANCE FUND DISTRIBUTORS, INC.
1345 Avenue of the Americas
New York, NY 10105
LEGAL COUNSEL
SEWARD & KISSEL
One Battery Park Plaza
New York, NY 10004
TRANSFER AGENT
ALLIANCE FUND SERVICES, INC.
P.O. Box 1520
Secaucus, NJ 07096-1520
Toll-Free 1-(800) 221-5672
INDEPENDENT AUDITORS
ERNST & YOUNG LLP
787 Seventh Avenue
New York, NY 10019
(1) Member of the Audit Committee.
22
THE ALLIANCE FAMILY OF MUTUAL FUNDS
_______________________________________________________________________________
FIXED INCOME
Alliance Bond Fund
U.S. Government Portfolio
Corporate Bond Portfolio
Alliance Global Dollar Government Fund
Alliance Global Strategic Income Trust
Alliance High Yield Fund
Alliance Mortgage Securities Income Fund
Alliance Limited Maturity Government Fund
Alliance Multi-Market Strategy Trust
Alliance North American Government Income Trust
Alliance Short-Term Multi-Market Trust
Alliance Short-Term U.S. Government Fund
Alliance World Income Trust
TAX-FREE INCOME
Alliance Municipal Income Fund
California Portfolio
Insured California Portfolio
Insured National Portfolio
National Portfolio
New York Portfolio
Alliance Municipal Income Fund II
Arizona Portfolio
Florida Portfolio
Massachusetts Portfolio
Michigan Portfolio
Minnesota Portfolio
New Jersey Portfolio
Ohio Portfolio
Pennsylvania Portfolio
Virginia Portfolio
MONEY MARKET
AFD Exchange Reserves
GROWTH
The Alliance Fund
Alliance Global Environment Fund
Alliance Growth Fund
Alliance Premier Growth Fund
Alliance/Regent Sector Opportunity Fund
GROWTH & INCOME
Alliance Strategic Balanced Fund
Alliance Balanced Shares
Alliance Conservative Investors Fund
Alliance Growth & Income Fund
Alliance Growth Investors Fund
Alliance Income Builder Fund
Alliance Real Estate Investment Fund
Alliance Utility Income Fund
AGGRESSIVE GROWTH
Alliance Global Small Cap Fund
Alliance Quasar Fund
Alliance Technology Fund
INTERNATIONAL
Alliance All-Asia Investment Fund
Alliance Greater China '97 Fund
Alliance International Fund
Alliance International Premier Growth Fund
Alliance New Europe Fund
Alliance Worldwide Privatization Fund
CLOSED-END FUNDS
Alliance All-Market Advantage Fund
ACM Government Income Fund
ACM Government Opportunity Fund
ACM Government Securities Fund
ACM Government Spectrum Fund
ACM Managed Dollar Income Fund
ACM Managed Income Fund
ACM Municipal Securities Income Fund
Alliance World Dollar Government Fund
Alliance World Dollar Government Fund II
The Austria Fund
The Korean Investment Fund
The Spain Fund
The Southern Africa Fund
CASH MANAGEMENT SERVICES
ACM Institutional Reserves
Government Portfolio
Prime Portfolio
Tax-Free Portfolio
Trust Portfolio
Alliance Capital Reserves
Alliance Government Reserves
Alliance Insured Account
Alliance Money Reserves
Alliance Municipal Trust
California Portfolio
Connecticut Portfolio
Florida Portfolio
General Portfolio
Massachusetts Portfolio
New Jersey Portfolio
New York Portfolio
Virginia Portfolio
Alliance Treasury Reserves
Alliance Money Market Fund
Prime Portfolio
Government Portfolio
General Municipal Portfolio
23
