ALLIANCE CAPITAL RESERVES
ALLIANCECAPITAL
ANNUAL REPORT
JUNE 30, 1996
STATEMENT OF NET ASSETS
JUNE 30, 1996 ALLIANCE CAPITAL RESERVES
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY+ YIELD VALUE
- ------------------------------------------------------------------------
COMMERCIAL PAPER-63.4%
ABBEY NATIONAL
$ 20,000 7/26/96 5.06% $19,929,722
23,800 11/29/96 5.35 23,265,922
ABN AMRO N. AMERICAN FINANCE
30,000 10/25/96 4.96 29,520,533
50,000 2/14/97 5.38 48,296,334
AES BARBERS POINT INC.
20,000 7/12/96 5.35 19,967,306
AGA CAPITAL CORP.
25,200 7/10/96 5.31 25,166,547
AKZO NOBEL, INC.
6,000 7/23/96 5.30 5,980,567
10,000 8/30/96 5.30 9,911,667
25,000 11/27/96 5.30 24,451,597
25,000 8/05/96 5.32 24,870,694
ALLIANZ OF AMERICA FINANCE CORP.
17,500 7/25/96 5.30 17,438,167
32,646 8/15/96 5.30 32,429,720
24,535 8/20/96 5.30 24,354,395
22,200 7/23/96 5.35 22,127,418
ASI FUNDING
16,000 8/15/96 5.32 15,893,600
BANCA CRT FINANCIAL CORP.
35,000 7/08/96 5.33 34,963,726
BANCO NACIONAL DE COMERICO
37,500 7/15/96 5.18 37,424,458
BAYER, INC.
42,500 7/08/96 5.30 42,456,201
30,000 9/04/96 5.40 29,707,500
BETA FINANCE CORP.
15,000 9/12/96* 5.20 14,841,833
BHF FINANCE DELAWARE, INC.
31,000 10/18/96 5.30 30,502,536
48,000 7/08/96 5.31 47,950,440
25,000 7/08/96 5.32 24,974,139
CAISSE D'AMORTISSEMENT
45,000 7/22/96 5.34 44,859,825
40,000 9/19/96 5.37 39,522,667
25,000 10/21/96 5.40 24,580,000
85,000 10/24/96 5.40 83,533,750
CAISSE DES DEPOTS ET CONSIGNATIONS
70,000 7/17/96 5.33% 69,834,178
56,600 7/22/96 5.34 56,423,691
75,000 7/25/96 5.34 74,733,000
CEMEX
25,000 8/22/96 5.30 24,808,611
CHIAO TUNG BANK CO., LTD.
30,000 8/05/96 4.98 29,854,750
6,180 10/15/96 5.35 6,082,648
CLIPPER RECEIVABLES CORP.
55,000 7/11/96 5.35 54,918,264
COMMERZBANK
80,000 8/21/96 5.36 79,392,533
COMMONWEALTH BANK OF AUSTRALIA
50,000 7/23/96 5.34 49,836,833
COPLEY FINANCING CORP.
18,000 7/24/96 5.40 17,937,900
CREGEM NORTH AMERICA, INC.
50,000 8/21/96 4.98 49,647,250
DRESDNER U.S. FINANCE, INC.
22,500 8/26/96 4.98 22,325,702
DUPONT (E. I.) DE NEMOURS & CO.
30,000 7/11/96 5.32 29,955,666
15,000 7/15/96 5.32 14,968,967
EKSPORTFINANS
22,000 7/02/96 5.30 21,996,761
9,000 7/25/96 5.32 8,968,080
18,150 8/05/96 5.33 18,055,948
ELECTRICITE DE FRANCE
25,000 11/21/96 5.30 24,473,681
ELECTRICITY CORP. OF NEW ZEALAND, LTD.
20,000 11/08/96 5.33 19,615,056
14,000 1/30/97 5.40 13,552,700
20,000 1/31/97 5.40 19,358,000
EQUIPMENT INTERMEDIATION PARTNERSHIP
20,000 7/08/96 5.33 19,979,272
FINANCE ONE FUNDING CORP.
10,000 8/21/96 5.30 9,924,917
10,100 7/02/96 5.32 10,098,507
1
STATEMENT OF NET ASSETS (CONTINUED) ALLIANCE CAPITAL RESERVES
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY+ YIELD VALUE
- ------------------------------------------------------------------------
FORD MOTOR CREDIT CORP.
$100,000 7/12/96 5.32% $ 99,837,444
15,000 7/01/96 5.37 14,999,999
GENERAL ELECTRIC CAPITAL SERVICES INC.
50,000 8/21/96 5.38 49,618,917
50,000 8/22/96 5.38 49,611,444
50,000 8/26/96 5.38 49,581,556
GENERALE BANK
35,000 8/09/96 5.31 34,798,663
GOVERNMENT DEVELOPMENT BANK OF
PUERTO RICO
17,000 9/03/96 5.33 16,838,915
10,000 9/04/96 5.33 9,903,764
IMI FUNDING CORP.
12,000 8/26/96 5.30 11,901,067
11,306 10/30/96 5.30 11,104,596
51,406 12/03/96 5.36 50,219,664
12,000 11/29/96 5.42 11,727,193
J.P. MORGAN & CO., INC.
60,000 7/01/96 5.56 60,000,000
KINGDOM OF SWEDEN
30,000 12/19/96 5.32 29,241,900
50,000 1/10/97 5.38 48,557,861
20,000 2/10/97 5.38 19,330,489
KREDIETBANK N.A. FINANCE CORP.
110,500 7/08/96 5.35 110,385,049
MEC FINANCE USA, INC.
15,000 7/24/96 5.16 14,950,550
MITSUBISHI INTERNATIONAL CORP.
7,000 7/15/96 5.30 6,985,572
30,000 8/27/96 5.30 29,748,250
24,000 9/03/96 5.35 23,771,734
10,000 8/15/96 5.36 9,933,000
MORGAN STANLEY GROUP, INC.
40,000 7/15/96 5.30 39,917,556
75,000 7/11/96 5.33 74,888,958
OLD LINE FUNDING CORP.
30,000 7/18/96 5.33 29,924,492
PACIFIC DUNLOP LTD.
15,000 7/19/96 5.33 14,960,025
PEMEX CAPITAL INC.
10,000 7/23/96 5.30 9,967,611
20,000 8/06/96 5.32 19,893,599
RANGER FUNDING
25,121 7/08/96 5.32% 25,095,014
REPUBLIC NEW YORK CORPORATION
20,000 8/20/96 5.35 19,851,389
25,000 9/20/96 5.40 24,696,250
SIGMA FINANCE, INC.
33,500 8/15/96* 4.88 33,295,859
14,000 9/05/96* 5.35 13,862,684
SUMITOMO CORP. OF AMERICA
4,000 8/22/96 5.31 3,969,320
20,000 8/21/96 5.32 19,849,267
10,000 9/16/96 5.34 9,885,783
20,000 9/12/96 5.35 19,783,028
5,000 9/26/96 5.35 4,935,354
17,000 7/12/96 5.37 16,972,106
TASMANIAN PUBLIC FINANCE CORP.
16,100 8/08/96 5.33 16,009,420
TRANSAMERICA CORP.
24,035 7/08/96 5.32 24,010,138
UBS FINANCE DELAWARE, INC.
15,600 7/02/96 5.39 15,597,664
100,000 7/01/96 5.55 100,000,000
UNI FUNDING, INC.
16,000 7/26/96 5.30 15,941,111
UNILEVER CAPITAL CORP.
24,000 10/25/96 4.94 23,617,973
VATTENFALL TREASURY, INC.
20,000 7/22/96 5.30 19,938,167
45,000 10/16/96 5.37 44,281,762
WESTPAC CAPITAL CORP.
50,000 9/09/96 5.21 49,493,472
WMC FINANCE, LTD.
15,500 7/19/96 5.33 15,458,693
13,500 7/17/96 5.35 13,467,900
XEROX CREDIT CORP.
17,000 8/06/96 5.35 16,909,050
Total Commercial Paper
(amortized cost $3,045,185,451) 3,045,185,451
2
ALLIANCE CAPITAL RESERVES
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY+ YIELD VALUE
- ------------------------------------------------------------------------
CERTIFICATES OF DEPOSIT-20.2%
ABN AMRO
$ 18,000 5.12%, 9/06/96 5.15% $ 17,998,997
AMERICAN EXPRESS CENTURION BANK
50,000 5.35%, 7/08/96 5.35 50,000,000
BANK OF TOKYO
90,000 5.50%, 7/15/96 5.50 90,000,000
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
50,000 5.32%, 7/23/96 5.31 50,000,184
60,000 5.33%, 7/23/96 5.32 60,000,364
BARNETT BANK OF SOUTH FLORIDA
84,000 5.39%, 7/08/96 5.42 83,999,249
BAYERISCHE HYPOBANK
67,000 5.38%, 7/16/96 5.35 66,999,590
BAYERISCHE LANDESBANK
6,000 5.33%, 7/01/96 5.33 6,000,000
DEUTSCHE BANK
20,000 5.48%, 1/03/97 5.65 19,974,244
24,000 5.53%, 4/02/97 5.80 23,951,633
DRESDNER BANK
40,000 5.90%, 6/03/97 5.90 40,000,000
HARRIS TRUST & SAVINGS
40,000 5.40%, 8/09/96 5.40 39,999,965
HESSISCHE LANDESBANK
10,000 5.10%, 9/06/96 5.15 9,999,093
25,000 5.70%, 4/29/97 5.80 24,979,638
NATIONAL BANK OF DETROIT
85,000 5.43%, 8/26/96 5.42 85,001,307
NATIONAL WESTMINSTER BANK
50,000 5.33%, 7/12/96 5.32 50,000,174
NORINCHUKIN BANK
30,000 5.48%, 7/26/96 5.47 30,000,205
40,000 5.56%, 7/10/96 5.55 40,000,099
SANWA BANK
18,000 5.41%, 7/12/96 5.44 17,999,800
19,000 5.44%, 7/12/96 5.43 19,000,058
SOCIETE GENERALE N.A., INC.
36,000 5.33%, 7/02/96 5.34 35,999,983
SUMITOMO BANK
45,000 5.40%, 7/02/96 5.39 45,000,012
WESTPAC BANK
50,000 5.06%, 8/21/96 5.03% 50,002,072
Total Certificates of Deposit
(amortized cost $971,906,969) 971,906,969
CORPORATE OBLIGATIONS-5.8%
BETA FINANCE CORP.
20,000 5.41%, 9/25/96 FRN* 5.41 20,000,000
FIRST BANK OF SIOUX FALLS
SOUTH DAKOTA, NA
100,000 5.34%, 7/03/96 5.36 99,999,876
GENERAL ELECTRIC CAPITAL CORP.
25,000 7.85%, 7/17/96 5.80 25,021,151
GOLDMAN SACHS GROUP L.P.
100,000 5.49%, 9/13/96 FRN 5.49 100,000,000
TOYOTA MOTOR CREDIT CORP.
35,000 5.00%, 2/26/97 5.10 34,973,606
Total Corporate Obligations
(amortized cost $279,994,633) 279,994,633
U.S. GOVERNMENT AND AGENCY OBLIGATIONS-5.3%
AID HOUSING GUARANTY PROJECT PORTUGAL
12,500 5.94%, 12/01/16 FRN 5.94 12,500,000
FEDERAL FARM CREDIT BANK
50,000 5.21%, 1/22/97 FRN 5.25 49,989,173
FEDERAL HOME LOAN BANK
20,000 5.27%, 11/13/96 FRN 5.34 19,994,992
50,000 5.30%, 10/16/96 FRN 5.43 49,982,206
42,500 5.83%, 1/31/97 FRN 5.27 42,636,547
FEDERAL NATIONAL MORTGAGE ASSOCIATION
25,000 5.41%, 9/27/96 FRN 5.41 25,000,000
OVERSEAS PRIVATE INVESTMENT CORP.
1,250 5.94%, 6/10/97 FRN 5.94 1,250,000
U.S. TREASURY NOTES
25,000 6.63%, 3/31/97 5.15 25,265,235
25,000 7.50%, 1/31/97 5.09 25,333,880
Total U.S. Government and
Agency Obligations
(amortized cost $251,952,033) 251,952,033
3
STATEMENT OF NET ASSETS (CONTINUED) ALLIANCE CAPITAL RESERVES
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY+ YIELD VALUE
- ------------------------------------------------------------------------
BANK OBLIGATIONS-3.7%
BANK OF NEW YORK
$ 40,000 5.14%, 9/09/96 5.15% $ 39,999,242
INTERAMERICAN DEVELOPMENT BANK
12,746 6.75%, 2/14/97 5.10 12,862,906
MORGAN GUARANTY TRUST CO.
55,000 5.50%, 1/08/97 5.50 55,000,000
WACHOVIA BANK
45,000 5.34%, 1/03/97 FRN 5.45 44,978,842
25,000 6.20%, 8/05/96 5.22 25,021,018
Total Bank Obligations
(amortized cost $177,862,008) 177,862,008
REPURCHASE AGREEMENTS-0.8%
MORGAN STANLEY REPO
25,000 5.15%, dated 6/28/96, due 7/01/96
in the amount of $25,010,729
(cost $25,000,000; collateralized
by $22,695,000 U.S. Treasury Bond,
7.875%, 2/15/21, value $25,712,519) 5.15 25,000,000
STATE STREET BANK AND TRUST CO.
10,800 5.10%, dated 6/28/96, due 7/01/96
in the amount of $10,804,590
(cost $10,800,000; collateralized
by $11,530,000 Federal National
Mortgage Assn, 7.00%, 1/01/26,
value $11,097,625) 5.10% 10,800,000
Total Repurchase Agreements
(amortized cost $35,800,000) 35,800,000
TIME DEPOSIT-0.5%
INDUSTRIAL BANK OF JAPAN
25,000 5.25%, 7/01/96
(amortized cost $25,000,000) 5.25 25,000,000
TOTAL INVESTMENTS-99.7%
(amortized cost $4,787,701,094) 4,787,701,094
Other assets less liabilities-0.3% 16,378,184
NET ASSETS-100%
(offering and redemption price of
$1.00 per share; 4,804,786,512
shares outstanding) $4,804,079,278
+ 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.
4
STATEMENT OF OPERATIONS
YEAR ENDED JUNE 30, 1996 ALLIANCE CAPITAL RESERVES
_______________________________________________________________________________
INVESTMENT INCOME
Interest $233,464,369
EXPENSES
Advisory fee (Note B) $19,411,685
Distribution assistance and administrative
service (Note C) 11,346,563
Transfer agency (Note B) 8,164,363
Registration fees 878,348
Printing 563,546
Custodian fees 527,866
Audit and legal fees 46,690
Trustees' fees 15,995
Miscellaneous 70,910
Total expenses 41,025,966
Net investment income 192,438,403
REALIZED LOSS ON INVESTMENTS
Net realized loss on investments (46,151)
NET INCREASE IN NET ASSETS FROM OPERATIONS $192,392,252
See notes to financial statements.
5
STATEMENTS OF CHANGES IN NET ASSETS ALLIANCE CAPITAL RESERVES
_______________________________________________________________________________
YEAR ENDED YEAR ENDED
JUNE 30,1996 JUNE 30,1995
--------------- ---------------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income $ 192,438,403 $ 113,392,834
Net realized loss on investments (46,151) (525,149)
Net increase in net assets from operations 192,392,252 112,867,685
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income (192,438,403) (113,392,834)
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
Net increase (Note E) 1,780,033,338 607,356,139
Total increase 1,779,987,187 606,830,990
NET ASSETS
Beginning of year 3,024,092,091 2,417,261,101
End of year $4,804,079,278 $3,024,092,091
See notes to financial statements.
6
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1996 ALLIANCE CAPITAL 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 (the "Portfolio") and Alliance
Money Reserves. 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. It is the Portfolio's policy to take possession
of securities as collateral under repurchase agreements and to determine on a
daily basis that the value of such securities are sufficient to cover the value
of the repurchase agreements.
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 annual 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 $5,068,973 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 an 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 distribution fee
amounted to $10,256,491. In addition, the Portfolio reimbursed certain
broker-dealers for administrative costs incurred in connection with providing
shareholder services, accounting, bookkeeping, legal and compliance support.
For the year ended June 30, 1996, such payments by the Portfolio amounted to
$1,090,072 of which $162,000 was paid to the Adviser.
7
NOTES TO FINANCIAL STATEMENTS (CONTINUED) ALLIANCE CAPITAL RESERVES
_______________________________________________________________________________
NOTE D: INVESTMENT TRANSACTIONS
At June 30, 1996, the cost of 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 $707,234 of which $85,995 expires
in 2001, $49,939 expires in 2002, $525,149 expires in 2003 and $46,151 expires
in 2004.
NOTE E: TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
An unlimited number of shares ($.001 par value) are authorized. At June 30,
1996, capital paid-in aggregated $4,804,786,512. Transactions, all at $1.00 per
share, were as follows:
YEAR ENDED YEAR ENDED
JUNE 30, JUNE 30,
1996 1995
---------------- ----------------
Shares sold 21,097,386,036 11,681,203,006
Shares issued on reinvestments of dividends 192,438,403 113,392,834
Shares redeemed (19,509,791,101) (11,187,239,701)
Net increase 1,780,033,338 607,356,139
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., 5.20%,
9/12/96 Commercial Paper 3/12/96 $14,841,833 0.31%
Beta Finance Corp., 5.41%,
9/25/96 FRN 9/25/95 20,000,000 0.42
Sigma Finance, Inc., 4.88%,
8/15/96 Commercial Paper 2/13/96 33,295,859 0.69
Sigma Finance, Inc., 5.35%,
9/05/96 Commercial Paper 6/06/96 13,862,684 0.29
----------- ------
$82,000,376 1.71%
8
ALLIANCE CAPITAL RESERVES
_______________________________________________________________________________
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 .0471 .0447 .0255 .0266 .0438
Net realized gain on investments -0- -0- -0- .0003 .0013
Net increase in net assets from operations .0471 .0447 .0255 .0269 .0451
LESS: DISTRIBUTIONS
Dividends from net investment income (.0471) (.0447) (.0255) (.0266) (.0438)
Distributions from net realized gains -0- -0- -0- (.0003) (.0013)
Total dividends and distributions (.0471) (.0447) (.0255) (.0269) (.0451)
Net asset value, end of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
TOTAL RETURNS
Total investment return based on:
net asset value (a) 4.82% 4.57% 2.58% 2.73% 4.61%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (in millions) $4,804 $3,024 $2,417 $2,112 $1,947
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% 1.03% 1.03% 1.00% 1.00%
Net investment income 4.69% 4.51% 2.57% 2.65% 4.37%
</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.
9
INDEPENDENT AUDITOR'S REPORT ALLIANCE CAPITAL RESERVES
_______________________________________________________________________________
TO THE BOARD OF TRUSTEES AND SHAREHOLDERS ALLIANCE CAPITAL RESERVES PORTFOLIO
We have audited the accompanying statement of net assets of Alliance Capital
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 Capital 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
10
ALLIANCE CAPITAL 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
11
ALLIANCE CAPITAL RESERVES
1345 Avenue of the Americas, New York, NY 10105
Toll free 1 (800) 221-5672
YIELDS. For current recorded yield information on Alliance
Capital Reserves, call on a touch-tone telephone toll-free
(800) 251-0539 and press the following sequence of keys:
1 # 1 # 3 9 #
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.
ALC607144
CAPAR
