ALLIANCE INTERNATIONAL PREMIER GROWTH FUND
ANNUAL REPORT
NOVEMBER 30, 1999
ALLIANCE CAPITAL
LETTER TO SHAREHOLDERS ALLIANCE INTERNATIONAL PREMIER GROWTH FUND
_______________________________________________________________________________
January 28, 2000
Dear Shareholder:
We are pleased to provide you with this report on the Alliance International
Premier Growth Fund (the "Fund"). This report contains investment results and
market activity for the annual period ended November 30, 1999.
INVESTMENT RESULTS
Since October 1998, strong economic growth around the world, combined with the
Fund's focus on a carefully selected list of "premier" large-capitalization
growth stocks, has begun to generate investment returns significantly above the
Fund's benchmark, the Morgan Stanley Capital International ("MSCI") Europe,
Australasia and Far East ("EAFE") Index. Active intra-period trading has also
added to the Fund's returns.
The Fund's performance results for the six- and 12-month periods ended November
30, 1999 are shown in the following table. Also shown is the performance of the
MSCI EAFE Index. During the six-month period under review, the Fund
outperformed its benchmark by almost 12 percentage points, and during the
12-month reporting period, the Fund outperformed its benchmark by almost 15
percentage points. We are pleased with the Fund's achievement.
The Fund's strong performance over the last year was primarily due to favorable
individual stock selection. Some of the Fund's best performing holdings include
stocks such as ASM Lithography, China Telecom Ltd, Fuji Bank Ltd, Mannesmann
AG, Nokia AB OYJ Corp, Orange Plc, Softbank Corp, Sonera Oyj, Sumitomo Trust &
Banking Co. Ltd, Taiwan Semiconductor Manufacturing Co. Ltd, and Tokyo Electron
Ltd. Detracting from the strong performance of these stocks were negative
contributions from some of the Fund's other holdings. Stocks that did not meet
our expectations include Alps Electric Co. Ltd, Koninklijke Ahold NV, Altadis
(formed by the merger of Spain's Tabacalera S.A. and France's Seita), Banyu
Pharmaceutical Co. Ltd, Glaxo Wellcome Plc, Newcourt Credit Group Inc., Santen
Pharmaceutical Co., Standard Chartered Plc, and Unilever Plc.
INVESTMENT RESULTS*
Period Ended November 30, 1999
TOTAL RETURNS
6 MONTHS 12 MONTHS
--------- ---------
ALLIANCE INTERNATIONAL PREMIER GROWTH FUND
Class A 28.85% 37.28%
Class B 28.32% 36.22%
Class C 28.44% 36.36%
MSCI EAFE INDEX 16.58% 21.43%
* TOTAL RETURNS ARE BASED ON THE NET ASSET VALUE OF EACH CLASS OF SHARES AS
OF NOVEMBER 30, 1999. 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. RETURNS FOR THE FUND AND ITS
COMPARATIVE BENCHMARK INCLUDE THE REINVESTMENT OF ANY DISTRIBUTIONS PAID DURING
THE PERIOD. TOTAL RETURN FOR ADVISOR CLASS SHARES WILL DIFFER DUE TO DIFFERENT
EXPENSES ASSOCIATED WITH THAT CLASS. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE
RESULTS.
THE MSCI EAFE INDEX IS AN UNMANAGED, CAPITALIZATION-WEIGHTED INDEX THAT
MEASURES THE OVERALL PERFORMANCE OF STOCK MARKETS IN 20 COUNTRIES WITHIN
EUROPE, AUSTRALASIA AND THE FAR EAST. AN INVESTOR CANNOT INVEST DIRECTLY IN AN
INDEX.
ADDITIONAL INVESTMENT RESULTS APPEAR ON PAGE 4.
ECONOMIC REVIEW AND OUTLOOK
The emerging market economies continued their recovery from the economic crisis
that began in Southeast Asia in the fourth quarter of 1997 and caused great
uncertainty in the world's financial markets in the third quarter of 1998.
Thanks to a series of fiscal easing steps taken during the fourth quarter of
1998 by the finance ministers of the largest economic powers, as well as the
continued robust growth of the United States without any meaningful inflation,
economic growth is once again broad-based around the globe.
As we stated in our semi-annual letter to shareholders on July 29, 1999, there
are many data points that we believe continue to provide cause for optimism.
For instance, the economies of many troubled countries have bottomed, while
many crucial fiscal, monetary and political reforms
1
ALLIANCE INTERNATIONAL PREMIER GROWTH FUND
_______________________________________________________________________________
are now being put in place around the world (including the expansion of
free-trade zones like the European Monetary Union). Additionally, the swift
discipline exerted by the financial markets in 1998's financial market crisis
caused all governments concerned to focus on and deal with their economic woes.
Other positive factors include the immediate availability of capital for worthy
projects, the ever widening expansion of technology, which allows global price
and value competition, and the continued economic strength of the U.S. and
Europe, which provides engines for economic growth for much of the rest of the
world.
Despite our overall optimism, a few lingering problems in the global economy
require a degree of caution in our outlook. These are the lack of sustained
economic growth in Japan, a slowing of economic growth in China, possible
restrictions to free trade and the free movement of capital in Europe and
elsewhere, and instability in the Middle East and Eastern Europe.
Therefore, our outlook is cautiously optimistic. We believe that U.S. gross
domestic product ("GDP") growth will slow to approximately 2.5% in 2000.
European GDP growth should be a little higher and we are hopeful that the
Japanese economy will resume positive economic growth. China's growth is
forecast to be approximately 6%. Inflation in each of the developed countries
should remain quite subdued.
In this environment of healthy worldwide economic growth, with little inflation
to be observed, investors have bid up the prices of growth stocks - especially
telecommunications and technology stocks - to levels not seen in almost three
decades. Although there are certainly reasons for the optimism on many
telecommunications and technology stocks, some caution is warranted. In this
kind of environment, individual stock selection will be a key determinant of
investment success.
We have confidence that the companies held by the Fund will grow their earnings
faster than the overall market average over the next three years. The Fund,
however, trades at a weighted average price-to-earnings ratio near that of the
market. This provides an attractive investment environment in which we hope to
continue to outperform the benchmark index.
PORTFOLIO MANAGEMENT AND STRATEGY
The portfolio management of the Fund is focused on marrying the underlying
fundamentals of earnings and cash flow of each respective company with its
current share price, relative to other investment alternatives. Alliance
Capital's large global equity research team and portfolio managers situated in
numerous locations around the world perform fundamental analysis and research
on each portfolio company. The Fund's industry sector and geographic weightings
are a by-product of specific bottom-up, company-by-company stock selection
rather than from a predetermined top-down allocation.
The Fund is a diversified fund in terms of industry sector and geographic
weightings as shown in the following charts. There is particular emphasis on
the technology sector. Telecommunications service companies dominate our
utility sector holdings. The most significant changes since our last report are
a significant decrease in the Fund's finance holdings, and further increases in
the Fund's technology and utility holdings.
On a geographic basis, we significantly increased our weighting in Japan in
recognition of the resumption of economic growth there. We are significantly
overweight in Finland and Taiwan, due to our large holdings in Nokia AB OYJ
Corp. and Taiwan Semiconductor Manufacturing Co. Ltd.
INDUSTRY AND GEOGRAPHIC BREAKDOWNS AS OF NOVEMBER 30, 1999*
CAPITAL GOODS 6.5%
CONSUMER MANUFACTURING 1.6%
CONSUMER SERVICES 3.8%
CONSUMER STAPLES 8.6%
ENERGY 5.3%
FINANCE 16.0%
HEALTHCARE 9.0%
TECHNOLOGY 23.3%
TELECOMMUNICATIONS 11.2%
TRANSPORTATION 1.0%
UTILITIES 13.7%
2
ALLIANCE INTERNATIONAL PREMIER GROWTH FUND
_______________________________________________________________________________
AUSTRALIA 0.6%
FINLAND 10.7%
FRANCE 11.1%
GERMANY 4.3%
HONG KONG 1.6%
JAPAN 24.1%
NETHERLANDS 9.5%
SPAIN 6.1%
TAIWAN 8.2%
UNITED KINGDOM 21.4%
UNITED STATES 2.4%
* Expressed as a percentage of total investments (excluding cash
equivalents). Holdings may vary over time.
We thank you for your interest and investment in the Alliance International
Premier Growth Fund and look forward to reporting our continued progress to you
next year.
Sincerely,
John D. Carifa
Chairman and President
Alfred Harrison
Executive Vice President
Thomas Kamp
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 INTERNATIONAL PREMIER GROWTH FUND
_______________________________________________________________________________
Alliance International Premier Growth Fund is an open-end, diversified
investment company that seeks long-term growth of capital by investing
predominantly in the equity securities of a limited number of carefully
selected, non-U.S. companies that are judged likely to achieve superior
earnings growth. Normally, about 60 companies will be represented in the
portfolio, with the 30 most highly regarded of these usually constituting 70%
of the Fund's net assets.
INVESTMENT RESULTS
_______________________________________________________________________________
NAV AND SEC AVERAGE ANNUAL TOTAL RETURNS AS OF NOVEMBER 30, 1999
CLASS A SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
------------ ------------
One Year 37.28% 31.41%
Since Inception* 17.29% 14.44%
CLASS B SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
------------ ------------
One Year 36.22% 32.22%
Since Inception* 16.43% 14.89%
CLASS C SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
------------ ------------
One Year 36.36% 35.36%
Since Inception* 16.43% 16.43%
SEC AVERAGE ANNUAL TOTAL RETURNS AS OF THE MOST RECENT QUARTER-END (DECEMBER
31, 1999)
CLASS A CLASS B CLASS C
------------ ------------ ------------
1 Year 40.88% 42.18% 45.09%
Since Inception* 20.85% 21.47% 22.81%
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 shares (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 return for Advisor Class shares will differ due
to different expenses associated with that class.
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: 3/3/98 for all share Classes.
4
ALLIANCE INTERNATIONAL PREMIER GROWTH FUND
_______________________________________________________________________________
ALLIANCE INTERNATIONAL PREMIER GROWTH FUND
GROWTH OF A $10,000 INVESTMENT
3/31/98* TO 11/30/99
$13,000
$12,000
$11,000
$10,000
$9,000
$8,000
ALLIANCE INTERNATIONAL PREMIER GROWTH FUND CLASS A: $12,252
MSCI EAFE INDEX: $12,244
3/31/98 11/30/98 11/30/99
This chart illustrates the total value of an assumed $10,000 investment in
Alliance International Premier Growth Fund Class A shares (from 3/31/98 to
11/30/99) as compared to the performance of an appropriate broad-based index.
The chart reflects the deduction of the maximum 4.25% sales charge from the
initial $10,000 investment in the Fund and assumes the reinvestment of
dividends and capital gains. Performance for Class B, Class C and Advisor Class
shares will vary from the results shown above due to differences in expenses
charged to those classes. Past performance is not indicative of future results,
and is not representative of future gain or loss in capital value or dividend
income.
The Morgan Stanley Capital International Europe, Australasia, Far East
("MSCIEAFE") Index is an unmanaged, market capitalization-weighted index that
measures stock performance in 20 countries within Europe, Australasia and the
Far East.
When comparing Alliance International Premier Growth Fund to the index shown
above, you should note that no charges or expenses are reflected in the
performance of the index.
Alliance International Premier Growth Fund
MSCI EAFE Index
* Closest month-end after the Fund's Class A share inception date of 3/3/98.
5
TEN LARGEST HOLDINGS
NOVEMBER 30, 1999 ALLIANCE INTERNATIONAL PREMIER GROWTH FUND
_______________________________________________________________________________
PERCENT OF
COMPANY U.S. $ VALUE NET ASSETS
- -------------------------------------------------------------------------------
Nokia AB OYJ Corp.--(A Shares and ADR)--
Develops and manufactures mobile phones,
networks, and systems for cellular and
fixed networks. $ 2,998,455 5.6%
Softbank Corp.--Provides electronic
commerce, software and peripheral
hardware equipment for PCs, consulting
services, and technical support of
computer networks and systems. 2,967,251 5.6
Taiwan Semiconductor Manufacturing Co., Ltd.--
Manufactures and markets integrated
circuits used in computers, communications,
and consumer electronics. 2,756,404 5.2
Orange Plc.--Operates the Orange digital
PCN telecommunications network in the
United Kingdom. The group offers a broad
range of voice and data communication
services. 2,717,420 5.1
Sonera Oyj--Offers telecommunications
services, including fixed line and
mobile telephone, data communications,
and networked multimedia services. The
company operates cellular networks and
offers ATM, frame relay, and internet
services. 2,429,861 4.6
Total Fina, SA--(Cl. B and ADR) Explores for,
produces, refines, transports and markets
oil and natural gas. In addition, the
company has interests in coal mining and
in nuclear power, co-generation and
electricity generation. 2,331,195 4.4
Mannesmann AG--Designs and manufactures
industrial products and production
machinery as well as provides
telecommunications services. 2,159,332 4.1
Takeda Chemical Industries--Produces and
sells health-care related products,
foods, and chemicals. 1,714,342 3.2
Banque Nationale de Paris--Operates as a
French money-center bank which provides
commercial banking, investment banking
and private banking, as well as
international financing for multinationals
and capital markets facilities. 1,714,022 3.2
Equant NV (NY Reg. Shares)--Operates a
data network and provides seamless
international data network services to
multinational business. 1,696,500 3.2
$23,484,782 44.2%
6
SECTOR DIVERSIFICATION
NOVEMBER 30, 1999 ALLIANCE INTERNATIONAL PREMIER GROWTH FUND
_______________________________________________________________________________
PERCENT OF
U.S. $ VALUE NET ASSETS
- -------------------------------------------------------------------------------
Capital Goods $ 3,278,709 6.2%
Consumer Manufacturing 784,846 1.5
Consumer Services 1,920,827 3.6
Consumer Staples 4,334,465 8.1
Energy 2,700,107 5.1
Finance 8,082,085 15.2
Healthcare 4,567,386 8.6
Technology 11,785,360 22.2
Telecommunications 5,645,068 10.6
Transportation 485,481 0.9
Utilities 6,942,875 13.1
Total Investments* 50,527,209 95.1
Cash and receivables, net of liabilities 2,621,727 4.9
Net Assets $53,148,936 100.0%
* Excludes short-term obligations.
7
PORTFOLIO OF INVESTMENTS
NOVEMBER 30, 1999 ALLIANCE INTERNATIONAL PREMIER GROWTH FUND
_______________________________________________________________________________
COMPANY SHARES U.S. $ VALUE
- -------------------------------------------------------------------------
COMMON STOCKS & OTHER INVESTMENTS-95.1%
AUSTRALIA-0.6%
Telstra Corporation,
Ltd. (a) 80,000 $ 297,432
FINLAND-10.2%
Nokia AB OYJ Corp. 21,200 2,998,455
Sonera Oyj 58,900 2,429,861
------------
5,428,316
FRANCE-10.6%
Banque Nationale de
Paris 18,724 1,714,022
Castorama Dubois
Investisment 1,500 389,303
Sanofi-Synthelabo,
SA (a) 28,800 1,184,929
Total Fina, SA Cl. B 16,050 2,132,820
(ADR) 3,000 198,375
------------
5,619,449
GERMANY-4.1%
Mannesmann AG 10,400 2,159,332
HONG KONG-1.5%
China Telecom,
Ltd. (a) 152,000 812,206
JAPAN-22.9%
Alps Electric Co., Ltd. 28,000 519,664
Bank of
Tokyo-Mitsubishi,
Ltd. (ADR) 29,000 427,750
Banyu Pharmaceutical
Co., Ltd. 50,000 906,859
Fuji Bank, Ltd. 34,000 407,994
Nippon Telegraph &
Telephone Co., Ltd. 7 125,792
Santen Pharmaceutical
Co. 23,000 452,840
Softbank Corp. 4,100 2,967,251
Sumitomo Trust &
Banking Co., Ltd. 122,000 1,049,462
Takeda Chemical
Industries 29,000 1,714,342
TDK Corp. 13,000 1,429,764
Tokyo Electron, Ltd. 7,000 728,630
Yahoo Japan Corp. (a) 1 707,026
Yamanouchi
Pharmaceutical
Co., Ltd. 17,000 742,868
------------
12,180,242
NETHERLANDS-9.0%
ASM Lithography
(ADR) 6,500 608,563
Equant NV
(NY Reg. Shares) 18,000 1,696,500
Koninklijke Ahold NV 19,026 604,990
KPNQWEST (a) 5,800 216,752
STMicroelectronics NV 8,700 1,181,488
United Pan-Europe
Communications
NV (a) 5,000 490,401
------------
4,798,694
SPAIN-5.8%
Repsol-YPF, SA 16,900 368,912
Tabacalera, SA
Series A 85,000 1,401,439
Telefonica, SA 61,200 1,273,146
New Shares (a) 1,224 20,378
------------
3,063,875
TAIWAN-7.8%
Compal Electronics 196,000 624,972
Rights. 1/04/00 (a) 196 130
Hon Hai Precision
Industry Co., Ltd. (a) 110,000 784,846
Taiwan Semiconductor
Manufacturing Co.,
Ltd. (a) 587,940 2,756,404
------------
4,166,352
UNITED KINGDOM-20.3%
Bank of Scotland 101,292 1,198,856
British Airways Plc. 81,000 485,481
(ADR) 3,600 213,075
British Sky Broadcasting
Group Plc. 63,000 828,048
8
PORTFOLIO OF INVESTMENTS (CONTINUED)
ALLIANCE INTERNATIONAL PREMIER GROWTH FUND
_______________________________________________________________________________
COMPANY SHARES U.S. $ VALUE
- -------------------------------------------------------------------------
Dixons Group Plc. 12,000 $ 261,469
Glaxo Wellcome Plc. 32,958 987,289
National Westminster
Bank Plc. 39,000 896,430
Next Plc. 137,600 1,119,377
Orange Plc. (a) 89,900 2,717,420
Smithkline Beecham Plc.
(ADR) 4,400 292,600
Standard Chartered
Plc. 86,541 1,174,734
Tesco Plc. 127,007 343,388
Unilever Plc. 37,000 270,306
------------
10,788,473
SHARES OR
PRINCIPAL
AMOUNT
(000) U.S. $ VALUE
- -------------------------------------------------------------------------
UNITED STATES-2.3%
The CIT Group, Inc. 58,450 $ 1,212,838
Total Common Stocks &
Other Investments
(cost $41,517,643) 50,527,209
TIME DEPOSIT-6.2%
UNITED STATES-6.2%
Republic National Bank
New York
5.63%, 12/01/99
(cost $3,300,000) $3,300 3,300,000
TOTAL INVESTMENTS-101.3%
(cost $44,817,643) 53,827,209
Other assets less
liabilities-(1.3)% (678,273)
NET ASSETS-100% $53,148,936
(a) Non-income producing security.
Glossary:
ADR - American Depositary Receipt
See notes to financial statements.
9
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 1999 ALLIANCE INTERNATIONAL PREMIER GROWTH FUND
_______________________________________________________________________________
ASSETS
Investments in securities, at value (cost $44,817,643) $53,827,209
Cash 83,771
Foreign cash, at value (cost $93,443) 93,277
Receivable for capital stock sold 502,070
Deferred organization expenses 170,162
Receivable for investment securities sold 143,491
Dividends and interest receivable 60,203
Total assets 54,880,183
LIABILITIES
Payable for investment securities purchased 1,320,484
Organizational expense payable 91,424
Payable for capital stock redeemed 67,671
Advisory fee payable 66,270
Distribution fee payable 30,873
Accrued expenses 154,525
Total liabilities 1,731,247
NET ASSETS $53,148,936
COMPOSITION OF NET ASSETS
Capital stock, at par $4,057
Additional paid-in capital 42,337,181
Accumulated net realized gain on investments and foreign
currency transactions 1,799,248
Net unrealized appreciation of investments and foreign
currency denominated assets and liabilities 9,008,450
$53,148,936
CALCULATION OF MAXIMUM OFFERING PRICE
CLASS A SHARES
Net asset value and redemption price per share
($12,850,522/972,324 shares of capital stock issued
and outstanding) $13.22
Sales Charge--4.25% of public offering price .59
Maximum offering price $13.81
CLASS B SHARES
Net asset value and offering price per share
($28,677,725/2,197,102 shares of capital stock issued
and outstanding) $13.05
CLASS C SHARES
Net asset value and offering price per share
($9,235,085/707,732 shares of capital stock issued
and outstanding) $13.05
ADVISOR CLASS SHARES
Net asset value, redemption, and offering price per share
($2,385,604/179,760 shares of capital stock issued
and outstanding) $13.27
See notes to financial statements.
10
STATEMENT OF OPERATIONS
YEAR ENDED NOVEMBER 30, 1999 ALLIANCE INTERNATIONAL PREMIER GROWTH FUND
_______________________________________________________________________________
INVESTMENT INCOME
Dividends (net of foreign taxes withheld
of $43,827) $ 339,670
Interest 41,032 $ 380,702
EXPENSES
Advisory fee 334,407
Distribution fee - Class A 31,313
Distribution fee - Class B 162,807
Distribution fee - Class C 49,942
Custodian 164,433
Administrative 127,000
Audit and legal 91,862
Transfer agency 68,809
Registration 65,289
Amortization of organization expense 56,600
Printing 26,768
Directors' fees 26,000
Miscellaneous 20,687
Total expenses 1,225,917
Less: expenses waived by the Adviser
(see Note B) (241,795)
Less: expense offset arrangement
(see Note B) (4,363)
Net expenses 979,759
Net investment loss (599,057)
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain on investment transactions 4,735,462
Net realized loss on foreign currency
transactions (117,146)
Net change in unrealized appreciation of:
Investments 7,805,283
Foreign currency denominated assets and
liabilities 41,002
Net gain on investments 12,464,601
NET INCREASE IN NET ASSETS FROM OPERATIONS $11,865,544
See notes to financial statements.
11
STATEMENT OF CHANGES
IN NET ASSETS ALLIANCE INTERNATIONAL PREMIER GROWTH FUND
_______________________________________________________________________________
YEAR ENDED MARCH 3, 1998*
NOVEMBER 30, TO
1999 NOVEMBER 30, 1998
----------- -----------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
Net investment loss $ (599,057) $ (126,406)
Net realized gain (loss) on investments
and foreign currency transactions 4,618,316 (2,297,346)
Net change in unrealized appreciation of
investments and foreign currency
denominated assets and liabilities 7,846,285 1,162,165
Net increase (decrease) in net assets
from operations 11,865,544 (1,261,587)
CAPITAL STOCK TRANSACTIONS
Net increase 17,813,049 24,631,630
Total increase 29,678,593 23,370,043
NET ASSETS
Beginning of period 23,470,343 100,300
End of period $53,148,936 $23,470,343
* Commencement of operations.
See notes to financial statements.
12
NOTES TO FINANCIAL STATEMENTS
NOVEMBER 30, 1999 ALLIANCE INTERNATIONAL PREMIER GROWTH FUND
_______________________________________________________________________________
NOTE A: Significant Accounting Policies
Alliance International Premier Growth Fund (the "Fund") was incorporated as a
Maryland Corporation on November 24, 1997 and is registered under the
Investment Company Act of 1940, as a diversified, open-end management
investment company. Prior to commencement of operations on March 3, 1998, the
Fund had no operations other than the sale to Alliance Capital Management L.P.
(the "Adviser") of 10 shares each of Class A, Class B and Class C and 10,000
shares of Advisor Class for the aggregate amount of $100 each on Class A, Class
B and Class C shares and $100,000 on the Advisor Class shares on February 27,
1998. 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 may 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 4.00% 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, 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 results 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 sales price or if no sale occurred, at
the mean of the closing bid and asked price on that day. Readily marketable
securities traded in the over-the-counter market, securities listed on a
foreign securities exchange whose operations are similar to the U.S.
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 current bid and asked price. U.S. government and fixed income
securities which mature in 60 days or less are valued at amortized cost, unless
this method does not represent fair value. Securities for which current market
quotations are not readily available are valued at their fair value as
determined in good faith by, or in accordance with procedures adopted by, the
Board of Directors. Fixed income securities may be valued on the basis of
prices obtained from a pricing service when such prices are believed to reflect
the fair market value of such securities.
2. ORGANIZATION EXPENSES
Organization expenses of approximately $283,000 have been deferred and are
being amortized on a straight-line basis through February, 2003.
3. 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 into U.S.
dollars at the rates of exchange prevailing when such securities were acquired
or sold. Income and expenses are translated into U.S. dollars at rates of
exchange prevailing when accrued.
Net realized foreign currency gains and losses represent foreign exchange gains
and losses from sales and maturities of debt securities, currency gains and
losses realized between the trade and settlement dates on security
transactions, and the difference between the amounts of dividends, interest and
foreign withholding tax reclaims recorded on the Fund's books and the U.S.
dollar equivalent amounts actually received or paid. The Fund does not isolate
the effect of fluctuations in foreign currency
13
ALLIANCE INTERNATIONAL PREMIER GROWTH FUND
_______________________________________________________________________________
exchange rates when determining the gain or loss upon the sale of equity
securities. Net currency gains and losses from valuing foreign currency
denominated assets and liabilities at period end exchange rates are reflected
as a component of net unrealized appreciation of investments and foreign
currency denominated assets and liabilities.
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 provisions for federal income or excise taxes are
required.
5. INVESTMENT INCOME AND INVESTMENT TRANSACTIONS
Dividend income is recorded on the ex-dividend date. Interest income is accrued
daily. Investment transactions are accounted for on the date securities are
purchased or sold. Investment gains and losses are determined on the identified
cost basis. The Fund accretes discounts on short-term securities as adjustments
to interest income.
6. INCOME AND EXPENSES
All income earned and expenses incurred by the Fund are borne on a pro-rata
basis by each outstanding 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 Advisor Class shares (Advisor Class shares also have no
distribution fees).
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.
During the current fiscal year, permanent differences, primarily due to foreign
currency losses and a net operating loss, resulted in a net decrease in
accumulated net realized gain on investments and foreign currency transactions
and a corresponding decrease in accumulated net investment loss. This
reclassification had no effect on net assets.
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 1%
of the average daily net assets of the Fund. Such fee is accrued daily and paid
monthly. The Adviser has agreed to waive its fees and bear certain expenses to
the extent necessary to limit total operating expenses on an annual basis to
2.50%, 3.20%, 3.20% and 2.20% of the daily average net assets for Class A,
Class B, Class C and Advisor Class shares, respectively. For the year ended
November 30, 1999, such waiver of management fees, amounted to $114,795 and the
waiver of the cost of certain legal and accounting services provided to the
Fund by the Adviser amounted to $127,000.
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 $50,749 for the year ended November 30, 1999.
For the year ended November 30, 1999, the Fund's expenses were reduced by
$4,363 under an expense offset arrangement with Alliance Fund Services, Inc.
Alliance Fund Distributors, Inc. (a wholly-owned subsidiary of the Adviser)
serves as the Distributor of the Fund's shares. The Distributor has advised the
Fund that it has received front-end sales charges of $18,633 from the sales of
Class A shares and $1,158, $65,997 and $3,099 in contingent deferred sales
charges imposed upon redemptions by shareholders of Class A, Class B and Class
C shares, respectively, for the year ended November 30, 1999.
14
NOTES TO FINANCIAL STATEMENTS
(CONTINUED) ALLIANCE INTERNATIONAL PREMIER GROWTH FUND
_______________________________________________________________________________
Brokerage commissions paid on investment transactions for the year ended
November 30, 1999, amounted to $183,668, none of which was paid to brokers
utilizing the services of the Pershing Division of Donaldson, Lufkin & Jenrette
Securities Corp. ("DLJ"), an affiliate of the Adviser, nor DLJ directly.
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 the average daily net assets attributable to Class A shares
and 1% of the average daily net assets attributable to the 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 advised the Fund that it has
incurred expenses in excess of the distribution costs reimbursed by the Fund in
the amount of $1,464,099 and $281,164, 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 year 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 and U.S.
government securities) aggregated $51,012,972 and $34,943,688, respectively,
for the year ended November 30, 1999. There were no purchases or sales of U.S.
government or government agency obligations for the year ended November 30,
1999.
At November 30, 1999, the cost of investments for federal income tax purposes
was $44,860,954. Gross unrealized appreciation of investments was $11,798,624
and gross unrealized depreciation of investments was $2,832,369, resulting in
net unrealized appreciation of $8,966,255, excluding foreign currency.
The Fund utilized a capital loss carryover of $1,858,826 in the current year.
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 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 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 the counterparty to meet the terms of a contract and
from unanticipated movements in the value of a foreign currency relative to the
US dollar. At November 30, 1999, the Fund had no outstanding forward exchange
currency contracts.
15
ALLIANCE INTERNATIONAL PREMIER GROWTH FUND
_______________________________________________________________________________
NOTE E: CAPITAL STOCK
There are 12,000,000,000 shares of $.001 par value capital stock authorized,
divided into four classes, designated Class A, Class B, Class C and Advisor
Class. Each class consists of 3,000,000,000 authorized shares. Transactions in
capital stock were as follows:
SHARES AMOUNT
----------------------------- ------------------------------
MARCH 3, 1998* MARCH 3, 1998*
YEAR ENDED TO YEAR ENDED TO
NOV. 30, 1999 NOV. 30, 1998 NOV. 30, 1999 NOV. 30, 1998
------------- -------------- ------------- ---------------
CLASS A
Shares sold 725,129 843,613 $ 7,834,470 $ 8,485,886
Shares redeemed (506,449) (89,979) (5,740,529) (841,014)
Net increase 218,680 753,634 $ 2,093,941 $ 7,644,872
CLASS B
Shares sold 1,408,601 1,350,496 $15,639,041 $13,632,672
Shares redeemed (434,445) (127,560) (4,589,261) (1,182,495)
Net increase 974,156 1,222,936 $11,049,780 $12,450,177
CLASS C
Shares sold 531,139 345,438 $ 5,919,473 $ 3,357,877
Shares redeemed (149,341) (19,514) (1,654,073) (174,357)
Net increase 381,798 325,924 $ 4,265,400 $ 3,183,520
ADVISOR CLASS
Shares sold 52,764 151,569 $ 584,126 $ 1,523,326
Shares redeemed (16,793) (17,780) (180,198) (170,265)
Net increase 35,971 133,789 $ 403,928 $ 1,353,061
NOTE F: CONCENTRATION OF RISK
Investing in securities of foreign companies involves special risks which
include the possibility of future political and economic developments which
could adversely affect the value of such securities. Moreover, securities of
many foreign companies and their markets may be less liquid and their prices
more volatile than those of United States companies. Consequently, the Fund's
investment portfolio may experience greater price volatility than a portfolio
invested in equity securities of U.S. companies.
NOTE G: BANK BORROWING
A number of open-end mutual funds managed by the Adviser, including the Fund,
participate in a $750 million revolving credit facility (the "Facility")
intended to provide short-term financing if necessary, subject to certain
restrictions in connection with abnormal redemption activity. Commitment fees
related to the Facility are paid by the participating funds and are included in
the miscellaneous expenses in the statement of operations. The Fund did not
utilize the Facility during the year ended November 30, 1999.
* Commencement of operations.
16
FINANCIAL HIGHLIGHTS ALLIANCE INTERNATIONAL PREMIER GROWTH FUND
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
CLASS A
------------------------
March 3, 1998 (a)
Year Ended to
November 30, November 30,
1999 1998
----------- -----------
Net asset value, beginning of period $ 9.63 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment loss (b)(c) (.15) (.08)
Net realized and unrealized gain (loss)
on investment and foreign currency
transactions 3.74 (.29)
Net increase (decrease) in net asset
value from operations 3.59 (.37)
Net asset value, end of period $13.22 $ 9.63
TOTAL RETURN
Total investment return based on net
asset value (d) 37.28% (3.70)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $12,851 $7,255
Ratio to average net assets of:
Expenses, net of waivers/reimbursements 2.51%(e) 2.50%(f)
Expenses, before waivers/reimbursements 3.26% 5.19%(f)
Net investment loss (1.34)% (.90)%(f)
Portfolio turnover rate 107% 151%
See footnote summary on page 20.
17
ALLIANCE INTERNATIONAL PREMIER GROWTH FUND
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
CLASS B
------------------------
March 3, 1998 (a)
Year Ended to
November 30, November 30,
1999 1998
----------- -----------
Net asset value, beginning of period $ 9.58 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment loss (b)(c) (.22) (.13)
Net realized and unrealized gain (loss)
on investments and foreign currency
transactions 3.69 (.29)
Net increase (decrease) in net asset
value from operations 3.47 (.42)
Net asset value, end of period $13.05 $ 9.58
TOTAL RETURN
Total investment return based on net
asset value (d) 36.22% (4.20)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $28,678 $11,710
Ratio to average net assets of:
Expenses, net of waivers/reimbursements 3.21%(e) 3.20%(f)
Expenses, before waivers/reimbursements 3.93% 6.14%(f)
Net investment loss (2.07)% (1.41)%(f)
Portfolio turnover rate 107% 151%
See footnote summary on page 20.
18
FINANCIAL HIGHLIGHTS (CONTINUED) ALLIANCE INTERNATIONAL PREMIER GROWTH FUND
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
CLASS C
------------------------
March 3, 1998 (a)
Year Ended to
November 30, November 30,
1999 1998
----------- -----------
Net asset value, beginning of period $ 9.57 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment loss (b)(c) (.22) (.15)
Net realized and unrealized gain (loss)
on investments and foreign currency
transactions 3.70 (.28)
Net increase (decrease) in net asset
value from operations 3.48 (.43)
Net asset value, end of period $13.05 $ 9.57
TOTAL RETURN
Total investment return based on net
asset value (d) 36.36% (4.30)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $9,235 $3,120
Ratio to average net assets of:
Expenses, net of waivers/reimbursements 3.21%(e) 3.20%(f)
Expenses, before waivers/reimbursements 3.92% 6.00%(f)
Net investment loss (2.06)% (1.69)%(f)
Portfolio turnover rate 107% 151%
See footnote summary on page 20.
19
ALLIANCE INTERNATIONAL PREMIER GROWTH FUND
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
ADVISOR CLASS
------------------------
March 3, 1998 (a)
Year Ended to
November 30, November 30,
1999 1998
----------- -----------
Net asset value, beginning of period $ 9.64 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) (b)(c) (.12) .01
Net realized and unrealized gain (loss)
on investments and foreign currency
transactions 3.75 (.37)
Net increase (decrease) in net asset
value from operations 3.63 (.36)
Net asset value, end of period $13.27 $ 9.64
TOTAL RETURN
Total investment return based on net
asset value (d) 37.66% (3.60)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $2,386 $1,386
Ratio to average net assets of:
Expenses, net of waivers/reimbursements 2.21%(e) 2.20%(f)
Expenses, before waivers/reimbursements 2.96% 6.28%(f)
Net investment income (loss) (1.06)% .13%(f)
Portfolio turnover rate 107% 151%
(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. Initial sales charge or contingent
deferred sales charges are not reflected in the calculation of total investment
return. Total investment return for a period of less than one year is not
annualized.
(e) Ratios reflect expenses grossed up for expense offset arrangement with the
Transfer Agent. For the period shown below, the net expense ratios were as
follows:
Year Ended
November 30, 1999
-----------------
Class A 2.50%
Class B 3.20%
Class C 3.20%
Advisor Class 2.20%
(f) Annualized.
20
REPORT OF INDEPENDENT
ACCOUNTANTS ALLIANCE INTERNATIONAL PREMIER GROWTH FUND
_______________________________________________________________________________
TO THE BOARD OF DIRECTORS AND SHAREHOLDERS OF ALLIANCE INTERNATIONAL PREMIER
GROWTH FUND
In our opinion, the accompanying statement of assets and liabilities, including
the portfolio of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Alliance International Premier
Growth Fund (the "Fund") at November 30, 1999, the results of its operations
for the year then ended and the changes in its net assets and the financial
highlights for the year then ended and for the period March 3, 1998
(commencement of operations) through November 30, 1998, in conformity with
generally accepted accounting principles. These financial statements and
financial highlights (hereafter referred to as "financial statements") are the
responsibility of the Fund's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with generally accepted
auditing standards which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management,
and evaluating the overall financial statement presentation. We believe that
our audits, which included confirmation of securities at November 30, 1999 by
correspondence with the custodian and brokers, provide a reasonable basis for
the opinion expressed above.
PricewaterhouseCoopers LLP
New York, New York
January 24, 2000
TAX INFORMATION (UNAUDITED)
_______________________________________________________________________________
The Fund intends to make an election under Internal Revenue Code Section 853 to
pass through foreign taxes paid by the Fund to its shareholders. The total
amount of foreign taxes that may be passed through to the shareholders for the
fiscal year ended November 30, 1999 is $43,827.
Shareholders should not use the above information to prepare their tax returns.
The information necessary to complete your income tax returns will be included
with your form 1099 DIV which will be sent to you separately in January 2000.
21
ALLIANCE INTERNATIONAL PREMIER GROWTH FUND
_______________________________________________________________________________
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
BRUCE W. CALVERT, EXECUTIVE VICE PRESIDENT
ALFRED HARRISON, EXECUTIVE VICE PRESIDENT
KATHLEEN A. CORBET, SENIOR VICE PRESIDENT
EDWARD BAKER, VICE PRESIDENT
THOMAS J. BARDONG, VICE PRESIDENT
STEPHEN H. BEINHACKER, VICE PRESIDENT
RUSSELL BRODY, VICE PRESIDENT
THOMAS KAMP, VICE PRESIDENT
DANIEL NORDBY, VICE PRESIDENT
EDMUND P. BERGAN, JR., SECRETARY
MARK D. GERSTEN, TREASURER & CHIEF FINANCIAL OFFICER
VINCENT S. NOTO, CONTROLLER
CUSTODIAN
BROWN BROTHERS HARRIMAN & CO.
40 Water Street
Boston, MA 02109-3661
PRINCIPAL UNDERWRITER
ALLIANCE FUND DISTRIBUTORS, INC.
1345 Avenue of the Americas
New York, NY 10105
TRANSFER AGENT
ALLIANCE FUND SERVICES, INC.
P.O. Box 1520
Secaucus, NJ 07096-1520
Toll-free 1-(800) 221-5672
INDEPENDENT ACCOUNTANTS
PRICEWATERHOUSECOOPERS LLP
1177 Avenue of the Americas
New York, NY 10036
LEGAL COUNSEL
SEWARD & KISSEL LLP
One Battery Park Plaza
New York, NY 10004
(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
Quality Bond Portfolio
Alliance Global Dollar Government Fund
Alliance Global Strategic Income Trust
Alliance High Yield Fund
Alliance Limited Maturity Government Fund
Alliance Mortgage Securities Income Fund
Alliance Multi-Market Strategy Trust
Alliance North American Government Income Trust
Alliance Short-Term U.S. Government Fund
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
Select Investors Series - Premier Portfolio
GROWTH & INCOME
Alliance Balanced Shares
Alliance Conservative Investors Fund
Alliance Growth & Income Fund
Alliance Growth Investors Fund
Alliance Real Estate Investment Fund
Alliance Utility Income Fund
AGGRESSIVE GROWTH
Alliance Global Small Cap Fund
Alliance Health Care 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
INSTITUTIONAL
Premier Growth
Quasar
Real Estate Investment
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
Alliance Capital Reserves
Alliance Government Reserves
Alliance Institutional Reserves
Prime Portfolio
Government Portfolio
Tax-Free Portfolio
Treasury Portfolio
Trust Portfolio
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
General Municipal Portfolio
Government Portfolio
23
ALLIANCE INTERNATIONAL PREMIER GROWTH FUND
1345 Avenue of the Americas
New York, NY 10105
(800) 221-5672
ALLIANCE CAPITAL
THIS REPORT IS INTENDED SOLELY FOR DISTRIBUTION TO CURRENT SHAREHOLDERS
OF THE FUND.
R THESE REGISTERED SERVICE MARKS USED UNDER LICENSE FROM THE OWNER,
ALLIANCE CAPITAL MANAGEMENT L.P.
IPGAR1199
