ALLIANCE MONEY RESERVES
ALLIANCECAPITAL
SEMI-ANNUAL REPORT
DECEMBER 31, 1995
(UNAUDITED)
STATEMENT OF NET ASSETS
DECEMBER 31, 1995 (UNAUDITED) ALLIANCE MONEY RESERVES
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY+ YIELD VALUE
- ---------------------------------------------------------------------------
COMMERCIAL PAPER-59.4%
ABBEY NATIONAL
$ 30,000 1/16/96 5.71% $ 29,928,625
10,000 1/31/96 5.72 9,952,333
AIG FUNDING, INC.
12,000 3/22/96 5.40 11,854,200
AKZO NOBEL, INC.
15,000 2/15/96 5.66 14,893,875
ANZ DELAWARE, INC.
20,000 2/16/96 5.66 19,855,432
20,000 1/24/96 5.70 19,927,167
BANK OF MONTREAL
20,000 1/30/96 5.70 19,908,167
BIL NORTH AMERICA, INC.
19,000 2/27/96 5.68 18,829,127
CAISSE DES DEPOTS ET CONSIGNATIONS
25,000 2/14/96 5.65 24,827,361
CHEMICAL BANKING CORP.
20,000 1/19/96 5.70 19,943,000
CHIAO TUNG BANK CO., LTD.
10,000 2/06/96 5.71 9,942,900
COMMERZBANK
20,000 1/22/96 5.60 19,934,667
22,125 2/21/96 5.64 21,948,221
COMMONWEALTH BANK OF AUSTRALIA
25,000 2/13/96 5.63 24,831,882
DEN DANSKE CORP.
20,000 2/21/96 5.65 19,839,917
20,000 1/29/96 5.71 19,911,115
EKSPORTFINANS
9,225 2/09/96 5.64 9,168,635
FINANCE ONE FUNDING
CORP.
20,000 2/08/96 5.68 19,880,089
15,000 2/07/96 5.70 14,912,125
FINNISH EXPORT CREDIT LTD.
15,000 2/12/96 5.65 14,901,125
30,000 1/23/96 5.70 29,895,500
10,000 1/29/96 5.70 9,955,667
GENERALE BANK, INC.
25,000 1/03/96 5.50 24,992,361
GREENWICH ASSET FUNDING, INC.
19,641 1/22/96 5.72 19,575,465
HALIFAX BUILDING SOCIETY
5,000 3/04/96 5.58 4,951,175
25,000 3/06/96 5.58 24,748,125
HANSON FINANCE
27,400 1/26/96 5.70 27,291,541
15,000 1/26/96 5.72 14,940,417
HEALTH INSURANCE PLAN OF GREATER
NEW YORK CITY
6,410 1/09/96 5.83 6,401,695
J.C. PENNEY FUNDING
CORP.
21,000 2/20/96 5.65 20,835,208
J.P. MORGAN & CO.
15,000 2/16/96 5.65 14,891,708
KINGDOM OF SWEDEN
50,000 1/22/96 5.58 49,837,192
MERRILL LYNCH & CO.
5,000 3/29/96 5.67 4,930,700
15,000 2/14/96 5.70 14,895,500
MORGAN STANLEY GROUP, INC.
45,000 2/08/96 5.70 44,729,250
PARIBAS FINANCE
20,000 1/08/96 5.72 19,977,756
PRIME ASSET VEHICLE, LTD.
12,000 3/06/96 5.68 11,877,042
SANTANDER FINANCE DELAWARE
19,000 3/25/96 5.62 18,751,068
SUMITOMO CORP. OF AMERICA
30,000 3/14/96 5.64 29,656,900
SVENSKA HANDELSBANKEN
21,000 2/09/96 5.68 20,870,780
SWEDISH EXPORT CREDIT CORP.
15,000 2/01/96 5.70 14,926,375
Total Commercial Paper
(amortized cost $794,121,388) 794,121,388
CERTIFICATES OF DEPOSIT-14.9%
BANK OF TOKYO
13,000 6.08%, 2/13/96 6.07 13,000,153
BAYERISCHE HYPOBANK
24,000 5.78%, 4/12/96 5.65 24,006,529
20,000 5.78%, 2/05/96 5.75 20,000,009
CREDIT SUISSE
25,000 5.73%, 1/09/96 5.70 25,000,149
DEUTSCHE BANK
30,000 5.79%, 1/25/96 5.80 29,999,711
MITSUBISHI BANK LTD.
16,000 6.00%, 1/10/96 6.00 16,000,000
1
ALLIANCE MONEY RESERVES
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY+ YIELD VALUE
- ---------------------------------------------------------------------------
SOCIETE GENERALE N.A., INC.
$ 21,000 5.73%, 1/16/96 5.83% $ 20,999,020
SWISS BANK CORP.
50,000 5.77%, 2/02/96 5.75 50,000,864
Total Certificates of Deposit
(amortized cost $199,006,435) 199,006,435
U.S. GOVERNMENT AND AGENCIES-13.6%
FEDERAL HOME LOAN BANK
121,900 1/02/96 5.75 121,880,530
20,000 5.53%, 11/13/96 FRN 5.60 19,988,240
20,000 5.74%, 10/16/96 FRN 5.87 19,980,776
20,000 5.97%, 7/18/96 5.97 20,000,000
Total U.S. Government and Agencies
(amortized cost $181,849,546) 181,849,546
BANK OBLIGATIONS-4.6%
BANK OF AMERICA ILLINOIS
15,000 5.79%, 1/16/96 5.80 14,999,933
17,000 5.80%, 1/12/96 5.80 17,000,000
CITICORP
10,750 5.70%, 2/12/96 5.80 10,746,230
MORGAN GUARANTY TRUST CO.
18,000 6.00%, 10/30/96 6.00 18,000,000
Total Bank Obligations
(amortized cost $60,746,163) 60,746,163
CORPORATE OBLIGATIONS-4.5%
BEAR STEARNS COS., INC.
10,000 5.97%, 1/26/96 FRN 5.97 10,000,000
BETA FINANCE CORP.
20,000 5.76%, 9/25/96 FRN 5.76 20,000,000
J.P. MORGAN & CO.
20,000 5.61%, 4/08/96 FRN 5.63 19,998,917
MERRILL LYNCH & CO., INC.
10,000 5.65%, 4/01/96 FRN 5.65 10,000,000
Total Corporate Obligations
(amortized cost $59,998,917) 59,998,917
TOTAL INVESTMENTS-97.0%
(amortized cost $1,295,722,449) 1,295,722,449
Other assets less liabilities-3.0% 40,655,035
NET ASSETS-100%
(offering and redemption price of
$1.00 per share; 1,337,565,831
shares outstanding) $1,336,377,484
+ All securities either mature or their interest rate changes in one year or
less.
Glossary:
FRN - Floating Rate Note
See notes to financial statements.
2
STATEMENT OF OPERATIONS
SIX MONTHS ENDED DECEMBER 31, 1995 (UNAUDITED) ALLIANCE MONEY RESERVES
_______________________________________________________________________________
INVESTMENT INCOME
Interest $81,200,887
EXPENSES
Advisory fee (Note B) $ 6,628,403
Distribution assistance and administrative
service (Note C) 4,442,054
Transfer agency 1,962,802
Registration fees 242,815
Printing 217,129
Custodian fees 188,127
Audit and legal fees 32,571
Trustees' fees 8,342
Miscellaneous 21,542
Total expenses 13,743,785
Less: fee waiver (44,596)
13,699,189
Net investment income 67,501,698
REALIZED GAIN ON INVESTMENTS
Net realized gain on investments 223,252
NET INCREASE IN NET ASSETS FROM OPERATIONS $67,724,950
STATEMENTS OF CHANGES IN NET ASSETS
_______________________________________________________________________________
SIX MONTHS ENDED
DECEMBER 31,1995 YEAR ENDED
(UNAUDITED) JUNE 30,1995
----------------- ---------------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS
Net investment income $ 67,501,698 $ 89,987,079
Net realized gain (loss) on investments 223,252 (479,849)
Net increase in net assets from operations 67,724,950 89,507,230
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income (67,501,698) (89,987,079)
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
Net increase (decrease) (1,173,445,752) 714,092,254
Total increase (decrease) (1,173,222,500) 713,612,405
NET ASSETS
Beginning of period 2,509,599,984 1,795,987,579
End of period $ 1,336,377,484 $2,509,599,984
See notes to financial statements.
3
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995 (UNAUDITED) 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. 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 six months ended December 31, 1995. 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 $659,791 for the six months ended December 31,
1995.
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 six months ended December 31, 1995 the
Portfolio incurred fees of $3,424,797 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 six months ended
December 31, 1995 such payments by the Portfolio amounted to $1,017,257 of
which $73,000 was paid to the Adviser.
4
ALLIANCE MONEY RESERVES
_______________________________________________________________________________
NOTE D: INVESTMENT TRANSACTIONS
At December 31, 1995, the cost of portfolio securities for federal income tax
purposes was the same as the cost for financial reporting purposes. At June 30,
1995, the Portfolio had a capital loss carryforward of $1,411,599 of which
$794,283 expires in 1999, $72,812 expires in 2001, $64,655 expires in 2002 and
$479,849 expires in 2003.
NOTE E: TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
An unlimited number of shares ($.001 par value) are authorized. At December 31,
1995, capital paid-in aggregated $1,337,565,831. Transactions, all at $1.00 per
share, were as follows:
SIX MONTHS ENDED YEAR ENDED
DECEMBER 31,1995 JUNE 30,
(UNAUDITED) 1995
---------------- ---------------
Shares sold 5,607,049,532 8,315,302,942
Shares issued on reinvestments of dividends 67,501,698 89,987,079
Shares redeemed (6,847,996,982) (7,691,197,767)
Net increase (decrease) (1,173,445,752) 714,092,254
NOTE F: FINANCIAL HIGHLIGHTS
Selected data for a share outstanding throughout each period.
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
DECEMBER 31, YEAR ENDED JUNE 30,
1995 -----------------------------------------------
(UNAUDITED) 1995 1994 1993 1992 1991
------------ -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income .025 .045 .025 .027 .044 .066
LESS: DISTRIBUTIONS
Dividends from net investment income (.025) (.045) (.025) (.027) (.044) (.066)
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
TOTAL RETURN
Total investment return based on:
net asset value (a) 4.99%(b) 4.50% 2.57% 2.71% 4.47% 6.87%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $1,336 $2,510 $1,795 $1,626 $1,412 $1,262
Ratio to average net assets of:
Expenses, net of waivers and
reimbursements 1.00%(b) 1.00% 1.00% 1.00% 1.00% .97%
Expenses, before waivers and
reimbursements 1.00%(b) 1.04% 1.09% 1.04% 1.04% 1.00%
Net investment income (c) 4.92%(b) 4.53% 2.55% 2.67% 4.33% 6.56%
</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) Annualized.
(c) Net of expenses reimbursed or waived by the Adviser.
5
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
JOHN WINTHROP
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
6
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.
ALC601033
MONSR
