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SIGNATURE JOSEPH CARUSONE
TITLE VICE PRESIDENT
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
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WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
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<CIK> 0001018368
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</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0001018368
<NAME> ALLIANCE REAL ESTATE INVESTMENT FUND - CLASS C
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<TABLE> <S> <C>
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<CIK> 0001018368
<NAME> ALLIANCE REAL ESTATE INVESTMENT FUND - CLASS AD
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</TABLE>
Securities Purchased in Underwritings Involving
Transactions with Donaldson, Lufkin, & Jenrette
Securities Corporation
Subject to Rule 10f-3 Under the Investment
Company Act of 1940
10f-3 TRANSACTIONS FOR THE PERIOND MARCH 1, 1999
THRPUGH MAY 31, 1999
REAL ESTATE INVESTMENT FUND
Date Shares
Security* Purchased Purchased
Hospitality Properties Trust 05/05/99 112,700
% of
Shares Total Offering
Purchased Shares Purchased
Price per by Fund Offered By
Share Group (000) Group (1)
$26.81 124,100 7,000 1.77%
Shares
Purchased Held
From 05/31/99
Merrill Lynch 216,400
* Unless otherwise indicated, the securities
were part of an issue registered under the
Securities Act of 1933 and offered to the
public.
** Indicates the purchase of an Eligible
Rule 144A Security
1) Purchases by all Alliance Funds, Including
the Fund, may not exceed:
a) If purchased in an offering other than
an Eligible Rule 144A Offering, 25% of the
principal amount of the offering of such
class; or
b) If purchased in an Eligible Rule 144A
Offering, 25% of the total of (i) the
principal amount of the offering of such
class sold by underwriters or members of
the selling syndicate to qualified
Institutional buyers, plus (ii) the
principal amount of the offering of such
class in any concurrent public offering.
Securities Purchased in Underwritings Involving
Transactions with Donaldson, Lufkin, & Jenrette
Securities Corporation
Subject to Rule 10f-3 Under the Investment
Company Act of 1940
10f-3 TRANSACTIONS FOR THE PERIOD JUNE 1, 1999
THROUGH AUGUST 31, 1999
REAL ESTATE INVESTMENT FUND
Date Shares
Security* Purchased Purchased
Mission West Holdings 06/29/99 220,300
% of
Shares Total Offering
Purchased Shares Purchased
Price per by Fund Offered By
Share Group (000) Group (1)
$8.25 243,400 7,750 3.14%
Shares
Purchased Held
From 08/31/99
Edwards, AG & Sons 220,300
* Unless otherwise indicated, the securities
were part of an issue registered under the
Securities Act of 1933 and offered to the
public.
** Indicated the purchase of an Eligible
Rule 144A Security
1) Purchases by all Alliance Funds, including
the Fund, May not exceed:
a) If purchased in an offering other than
an Eligible Rule 144A Offering, 25% of the
principal amount of the offering of such
class; or
b) If purchased in an Eligible Rule 144A
Offering, 25% of the total of (i) the
principal amount of the offering of such
class sold by underwriters or members of
the selling syndicate to qualified
institutional buyers, plus (ii) the principal
amount of the offering of such class in any
concurrent public offering.
Report of Independent Auditors
To the Shareholders and Board of Directors of
Alliance Real Estate Investment Fund, Inc.
In planning and performing our audit of the financial statements of
Alliance Real Estate Investment Fund, Inc. for the year ended
August 31, 1999, we considered its internal control, including control
activities for safeguarding securities, in order to determine our
auditing procedures for the purpose of expressing our opinion on the
financial statements and to comply with the requirements of Form N-SAR,
not to provide assurance on the internal control.
The management of Alliance Real Estate Investment Fund, Inc. is
responsible for establishing and maintaining internal control. In
fulfilling this responsibility, estimates and judgments by management
are required to assess the expected benefits and related costs of
controls. Generally, controls that are relevant to an audit pertain to
the entity's objective of preparing financial statements for external
purposes that are fairly presented in conformity with generally accepted
accounting principles. Those controls include the safeguarding of assets
against unauthorized acquisition, use or disposition.
Because of inherent limitations in internal control, errors or fraud may
occur and not be detected. Also, projection of any evaluation of
internal control to future periods is subject to the risk that it may
become inadequate because of changes in conditions or that the
effectiveness of the design and operation may deteriorate.
Our consideration of internal control would not necessarily disclose all
matters in internal control that might be material weaknesses under
standards established by the American Institute of Certified Public
Accountants. A material weakness is a condition in which the design
or operation of one or more of the internal control components does
not reduce to a relatively low level the risk that errors or fraud in
amounts that would be material in relation to the financial statements
being audited may occur and not be detected within a timely period by
employees in the normal course of performing their assigned functions.
However, we noted no matters involving the internal control and its
operation, including controls for safeguarding securities, that we consider
to be material weaknesses as defined above at August 31, 1999.
This report is intended solely for the information and use of the board of
directors and management of Alliance Real Estate Investment Fund, Inc. and
the Securities and Exchange Commission and is not intended to be and
should not be used by anyone other than these specified parties.
ERNST & YOUNG LLP
October 8, 1999
