ALLIANCE MONEY RESERVES
ALLIANCECAPITAL
ANNUAL REPORT
JUNE 30, 1996
STATEMENT OF NET ASSETS
JUNE 30, 1996 ALLIANCE MONEY RESERVES
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY+ YIELD VALUE
- ------------------------------------------------------------------------
COMMERCIAL PAPER-61.4%
ABN AMRO N. AMERICAN FINANCE
$ 10,000 2/14/97 5.38% $ 9,659,267
AGA CAPITAL, INC.
3,300 7/08/96 5.40 3,296,535
BAYER, INC.
10,000 7/08/96 5.30 9,989,695
25,000 8/20/96 5.35 24,814,236
CAISSE D'AMORTISSEMENT
20,000 7/22/96 5.34 19,937,700
15,000 10/24/96 5.40 14,741,250
CAISSE DES DEPOTS ET CONSIGNATIONS
10,000 7/17/96 5.31 9,976,400
29,000 7/17/96 5.33 28,931,302
CHIAO TUNG BANK CO., LTD.
20,000 9/16/96 5.28 19,774,347
COMMERZBANK
20,000 8/21/96 5.36 19,848,133
CORPORATE ASSET SECURITIZATION
AUSTRALIA
7,000 8/06/96 5.35 6,962,550
CS FIRST BOSTON
5,000 7/23/96 5.38 4,983,561
DUPONT (E. I.) DE NEMOURS & CO.
20,000 7/11/96 5.32 19,970,444
ELECTRICITE DE FRANCE
13,000 7/22/96 5.07 12,961,553
FINANCE ONE FUNDING CORP.
5,000 8/07/96 5.32 4,972,661
FORD MOTOR CREDIT CORP.
18,000 7/12/96 5.32 17,970,740
GENERALE BANK
15,000 8/09/96 5.31 14,913,713
GOVERNMENT DEVELOPMENT
BANK OF PUERTO RICO
6,500 7/18/96 5.30 6,483,732
12,000 8/15/96 5.31 11,920,350
IMI FUNDING CORP.
8,000 8/26/96 5.30 7,934,044
KINGDOM OF SWEDEN
20,000 12/19/96 5.32 19,494,600
KREDIETBANK N.A. FINANCE CORP.
19,500 7/08/96 5.35 19,479,715
MEC FINANCE USA INC.
15,000 7/24/96 5.16 14,950,550
MORGAN STANLEY GROUP, INC.
10,000 7/15/96 5.30% 9,979,389
9,000 7/11/96 5.33 8,986,675
PACIFIC DUNLOP LTD.
7,000 7/19/96 5.33 6,981,345
REPUBLIC NEW YORK CORPORATION
30,000 8/20/96 5.35 29,777,083
SUMITOMO CORP. OF AMERICA
3,000 8/22/96 5.31 2,976,990
15,000 7/29/96 5.32 14,937,933
UBS FINANCE DELAWARE, INC.
22,000 7/02/96 5.39 21,996,706
UNI FUNDING, INC.
14,000 7/26/96 5.30 13,948,472
VATTENFALL TREASURY, INC.
15,000 7/22/96 5.30 14,953,625
WMC FINANCE, LTD.
8,000 7/17/96 5.35 7,980,978
XEROX CREDIT CORP.
7,000 8/06/96 5.35 6,962,550
Total Commercial Paper
(amortized cost $463,448,824) 463,448,824
CERTIFICATES OF DEPOSIT-25.0%
BANK OF TOKYO
14,000 5.47%, 8/08/96 5.47 14,000,000
BANQUE NATIONALE DE PARIS
10,000 5.38%, 8/06/96 5.37 10,000,099
5,000 5.39%, 8/13/96 5.35 5,000,203
BARCLAYS BANK
15,000 5.33%, 7/23/96 5.32 15,000,091
BARNETT BANK
14,000 5.39%, 7/08/96 5.45 13,999,826
BAYERISCHE LANDESBANK
35,000 5.34%, 7/05/96 5.39 34,999,809
DEUTSCHE BANK
10,000 5.48%, 1/03/97 5.65 9,987,122
10,000 5.53%, 4/02/97 5.80 9,979,847
DRESDNER BANK
10,000 5.90%, 6/03/97 5.90 10,000,000
HARRIS TRUST & SAVINGS
15,000 5.40%, 8/09/96 5.41 14,999,987
HESSISCHE LANDESBANK
8,000 5.70%, 4/29/97 5.80 7,993,484
1
STATEMENT OF NET ASSETS (CONTINUED) ALLIANCE MONEY RESERVES
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY+ YIELD VALUE
- ------------------------------------------------------------------------
NATIONAL BANK OF DETROIT
$ 15,000 5.43%, 8/26/96 5.42% $ 15,000,230
NORINCHUKIN BANK
15,000 5.56%, 7/10/96 5.55 15,000,037
SANWA BANK
8,000 5.44%, 7/12/96 5.43 8,000,024
SUMITOMO BANK
5,000 5.40%, 7/02/96 5.39 5,000,002
Total Certificates of Deposit
(amortized cost $188,960,761) 188,960,761
CORPORATE OBLIGATIONS-6.0%
BETA FINANCE CORP.
20,000 5.41%, 9/25/96 FRN* 5.38 20,000,000
10,000 5.92%, 6/06/97* 6.00 9,992,808
GOLDMAN SACHS GROUP L.P.
15,000 5.49%, 9/13/96 FRN 5.45 15,000,000
Total Corporate Obligations
(amortized cost $44,992,808) 44,992,808
U.S. GOVERNMENT AND AGENCIES-5.3%
FEDERAL HOME LOAN BANK
20,000 5.27%, 11/13/96 FRN 5.34% 19,994,992
20,000 5.30%, 10/16/96 FRN 5.43 19,992,882
Total U.S. Government and Agencies
(amortized cost $39,987,874) 39,987,874
BANK OBLIGATION-2.7%
MORGAN GUARANTY TRUST CO.
20,000 5.50%, 1/08/97
(amortized cost $20,000,000) 5.50 20,000,000
TOTAL INVESTMENTS-100.4%
(amortized cost $757,390,267) 757,390,267
Other assets less liabilities-(0.4%) (2,803,241)
NET ASSETS-100%
(offering and redemption price
of $1.00 per share; 755,778,960
shares outstanding) $754,587,026
+ All securities either mature or their interest rate changes in one year or
less.
* Restricted securities (see Note F).
Glossary:
FRN - Floating Rate Note
See notes to financial statements.
2
STATEMENT OF OPERATIONS
YEAR ENDED JUNE 30, 1996 ALLIANCE MONEY RESERVES
_______________________________________________________________________________
INVESTMENT INCOME
Interest $109,962,397
EXPENSES
Advisory fee (Note B) $ 9,368,272
Distribution assistance and administrative
service (Note C) 6,540,575
Transfer agency (Note B) 2,128,127
Registration fees 379,053
Custodian fees 306,336
Printing 178,808
Audit and legal fees 14,420
Trustees' fees 13,319
Miscellaneous 52,202
Total expenses 18,981,112
Less: fee waiver (44,596)
18,936,516
Net investment income 91,025,881
REALIZED GAIN ON INVESTMENTS
Net realized gain on investments 219,665
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 91,245,546
STATEMENTS OF CHANGES IN NET ASSETS
_______________________________________________________________________________
YEAR ENDED YEAR ENDED
JUNE 30,1996 JUNE 30,1995
---------------- ---------------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS
Net investment income $ 91,025,881 $ 89,987,079
Net realized gain (loss) on investments 219,665 (479,849)
Net increase in net assets from operations 91,245,546 89,507,230
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income (91,025,881) (89,987,079)
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
Net increase (decrease) (Note E) (1,755,232,623) 714,092,254
Total increase (decrease) (1,755,012,958) 713,612,405
NET ASSETS
Beginning of year 2,509,599,984 1,795,987,579
End of year $ 754,587,026 $2,509,599,984
See notes to financial statements.
3
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1996 ALLIANCE MONEY RESERVES
_______________________________________________________________________________
NOTE A: SIGNIFICANT ACCOUNTING POLICIES
Alliance Capital Reserves (the "Trust") is an open-end diversified investment
company registered under the Investment Company Act of 1940. The Trust consists
of two portfolios: Alliance Capital Reserves and Alliance Money Reserves (the
"Portfolio"). Each portfolio is considered to be a separate entity for
financial reporting and tax purposes. As a matter of fundamental policy, each
Portfolio pursues its objectives by maintaining a portfolio of high-quality
money market securities all of which, at the time of investment, have remaining
maturities of 397 days or less. The following is a summary of significant
accounting policies followed by the Portfolio.
1. VALUATION OF SECURITIES
Securities in which the Portfolio invests are traded primarily in the
over-the-counter market and are valued at amortized cost, under which method a
portfolio instrument is valued at cost and any premium or discount is amortized
on a constant basis to maturity.
2. TAXES
It is the Portfolio's policy to comply with 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 applicable,
to its shareholders. Therefore, no provisions for federal income or excise
taxes are required.
3. DIVIDENDS
The Portfolio declares dividends daily and automatically reinvests such
dividends in additional shares at net asset value. Net realized capital gains
on investments, if any, are expected to be distributed near year end.
4. GENERAL
Interest income is accrued as earned. Security transactions are recorded on a
trade date basis. Realized gain (loss) from security transactions is recorded
on the identified cost basis.
NOTE B: ADVISORY FEE AND TRANSACTIONS WITH AN AFFILIATE OF THE ADVISER
The Portfolio pays its Adviser, Alliance Capital Management L.P., an advisory
fee at the annual rate of .50 of 1% on the first $1.25 billion of average daily
net assets; .49 of 1% on the next $.25 billion; .48 of 1% on the next $.25
billion; .47 of 1% on the next $.25 billion; .46 of 1% on the next $1 billion;
and .45 of 1% in excess of $3 billion. The Adviser has agreed to reimburse the
Portfolio to the extent that its aggregate expenses (excluding taxes,
brokerage, interest and, where permitted, extraordinary expenses) exceed 1% of
its average daily net assets for any fiscal year. No reimbursement was required
for the year ended June 30, 1996. The Portfolio compensates Alliance Fund
Services, Inc. (a wholly-owned subsidiary of the Adviser) for providing
personnel and facilities to perform transfer agency services for the Portfolio.
Such compensation amounted to $1,075,605 for the year ended June 30, 1996.
NOTE C: DISTRIBUTION ASSISTANCE AND ADMINISTRATIVE SERVICES PLAN
Under this plan, the Portfolio pays the Adviser a distribution fee at the
annual rate of up to .25 of 1% of the average daily value of the Portfolio's
net assets. The Plan provides that the Adviser will use amounts payable under
the Plan in their entirety for (i) payments to broker-dealers and other
financial intermediaries, including the Portfolio's distributor, for
distribution assistance and payments to banks and other depository institutions
for administrative and accounting services and (ii) otherwise promoting the
sale of shares of the Portfolio. For the year ended June 30, 1996 the Portfolio
incurred fees of $4,743,763 of which $44,596 was waived. In addition, the
Portfolio reimbursed certain broker-dealers for administrative costs incurred
in connection with providing shareholder services, accounting and bookkeeping,
and legal and compliance support. For the year ended June 30, 1996 such
payments by the Portfolio amounted to $1,796,812 of which $139,000 was paid to
the Adviser.
NOTE D: INVESTMENT TRANSACTIONS
At June 30, 1996, the cost of portfolio securities for federal income tax
purposes was the same as the cost for financial reporting purposes. At June 30,
1996, the Portfolio had a capital loss carryforward of $1,191,934 of which
$574,618 expires in 1999, $72,812 expires in 2001, $64,655 expires in 2002 and
$479,849 expires in 2003.
4
ALLIANCE MONEY RESERVES
_______________________________________________________________________________
NOTE E: TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
An unlimited number of shares ($.001 par value) are authorized. At June 30,
1996, capital paid-in aggregated $755,778,960. Transactions, all at $1.00 per
share, were as follows:
YEAR ENDED YEAR ENDED
JUNE 30, 1996 JUNE 30, 1995
--------------- ---------------
Shares sold 7,775,799,887 8,315,302,942
Shares issued on reinvestments of dividends 91,025,881 89,987,079
Shares redeemed (9,622,058,391) (7,691,197,767)
Net increase (decrease) (1,755,232,623) 714,092,254
NOTE F: RESTRICTED SECURITIES
The following securities are restricted as to resale except among qualified
institutional investors such as the Portfolio.
DATE % OF NET
SECURITY ACQUIRED VALUE ASSETS
- -------------------------------------- --------- ----------- ---------
Beta Finance Corp., 5.41%, 9/25/96 FRN 9/25/95 $20,000,000 2.65%
Beta Finance Corp., 5.92%, 6/06/97 6/07/96 9,992,808 1.32
----------- ---------
$29,992,808 3.97%
NOTE G: FINANCIAL HIGHLIGHTS
Selected data for a share outstanding throughout each year.
<TABLE>
<CAPTION>
YEAR ENDED JUNE 30,
-----------------------------------------------
1996 1995 1994 1993 1992
------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year $1.00 $1.00 $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income .047 .045 .025 .027 .044
LESS: DISTRIBUTIONS
Dividends from net investment income (.047) (.045) (.025) (.027) (.044)
Net asset value, end of year $1.00 $1.00 $1.00 $1.00 $1.00
TOTAL RETURN
Total investment return based on:
net asset value (a) 4.81% 4.50% 2.57% 2.71% 4.47%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year(in millions) $755 $2,510 $1,795 $1,626 $1,412
Ratio to average net assets of:
Expenses, net of waivers and
reimbursements 1.00% 1.00% 1.00% 1.00% 1.00%
Expenses, before waivers and
reimbursements 1.00% 1.04% 1.09% 1.04% 1.04%
Net investment income (b) 4.80% 4.53% 2.55% 2.67% 4.33%
</TABLE>
(a) 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.
(b) Net of expenses reimbursed or waived by the Adviser.
5
INDEPENDENT AUDITOR'S REPORT ALLIANCE MONEY RESERVES
_______________________________________________________________________________
TO THE BOARD OF TRUSTEES AND SHAREHOLDERS ALLIANCE MONEY RESERVES PORTFOLIO
We have audited the accompanying statement of net assets of Alliance Money
Reserves Portfolio as of June 30, 1996 and the related statements of
operations, changes in net assets, and financial highlights for the periods
indicated in the accompanying financial statements. These financial statements
and financial highlights are the responsibility of the Portfolio's management.
Our responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of June
30, 1996, by correspondence with the custodian.
An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Alliance Money Reserves Portfolio as of June 30, 1996, and the results of its
operations, changes in its net assets, and its financial highlights for the
periods indicated, in conformity with generally accepted accounting principles.
McGladrey & Pullen, LLP
New York, New York
July 26, 1996
6
ALLIANCE MONEY RESERVES
_______________________________________________________________________________
TRUSTEES
DAVE H. WILLIAMS, CHAIRMAN
JOHN D. CARIFA
SAM Y. CROSS
CHARLES H.P. DUELL
WILLIAM H. FOULK, JR.
ELIZABETH J. MCCORMACK
DAVID K. STORRS
SHELBY WHITE
OFFICERS
RONALD M. WHITEHILL, PRESIDENT
JOHN R. BONCZEK, SENIOR VICE PRESIDENT
KATHLEEN A. CORBET, SENIOR VICE PRESIDENT
ROBERT I. KURZWEIL, SENIOR VICE PRESIDENT
WAYNE D. LYSKI, SENIOR VICE PRESIDENT
PATRICIA NETTER, SENIOR VICE PRESIDENT
RONALD R. VALEGGIA, SENIOR VICE PRESIDENT
DREW BIEGEL, VICE PRESIDENT
JOHN F. CHIODI, JR., VICE PRESIDENT
DORIS T. CILIBERTI, VICE PRESIDENT
WILLIAM J. FAGAN, VICE PRESIDENT
JOSEPH R. LASPINA, VICE PRESIDENT
LINDA D. NEIL, VICE PRESIDENT
RAYMOND J. PAPERA, VICE PRESIDENT
PAMELA F. RICHARDSON, VICE PRESIDENT
EDMUND P. BERGAN, JR., SECRETARY
MARK D. GERSTEN, TREASURER & CHIEF FINANCIAL OFFICER
JOSEPH J. MANTINEO, CONTROLLER
CUSTODIAN
STATE STREET BANK AND TRUST COMPANY
P.O. Box 1912
Boston, MA 02105
LEGAL COUNSEL
SEWARD & KISSEL
One Battery Park Plaza
New York, NY 10004
AUDITORS
MCGLADREY & PULLEN, LLP
555 Fifth Avenue
New York, NY 10017
TRANSFER AGENT
ALLIANCE FUND SERVICES, INC.
P.O. Box 1520
Secaucus, NJ 07096-1520
DISTRIBUTOR
ALLIANCE FUND DISTRIBUTORS, INC.
1345 Avenue of the Americas
New York, NY 10105
7
ALLIANCE MONEY RESERVES
1345 Avenue of the Americas, New York, NY 10105
Toll free 1 (800) 221-5672
YIELDS. For current recorded yield information on Alliance
Money Reserves, call on a touch-tone telephone toll-free
(800) 251-0539 and press the following sequence of keys:
1 # 1 # 3 6 #
For non-touch-tone telephones, call toll-free (800) 221-9513
ALLIANCECAPITAL
DISTRIBUTION OF THIS REPORT OTHER THAN TO SHAREHOLDERS MUST
BE PRECEDED OR ACCOMPANIED BY THE FUND'S CURRENT PROSPECTUS,
WHICH CONTAINS FURTHER INFORMATION ABOUT THE FUND.
R THESE REGISTERED SERVICE MARKS USED UNDER LICENSE FROM
THE OWNER, ALLIANCE CAPITAL MANAGEMENT L.P.
MONAR
