ALLIANCE MONEY RESERVES
ALLIANCE CAPITAL
ANNUAL REPORT
JUNE 30, 1997
STATEMENT OF NET ASSETS
JUNE 30, 1997 ALLIANCE MONEY RESERVES
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY# YIELD VALUE
- -------------------------------------------------------------------------
COMMERCIAL PAPER-56.2%
ABBEY NATIONAL
$ 4,000 7/08/97 5.55% $ 3,995,683
14,000 7/09/97 5.61 13,982,547
2,600 8/21/97 5.62 2,579,300
AGA CAPITAL, INC.
2,700 7/09/97 (a) 5.60 2,696,640
AKZO NOBEL, INC.
3,000 11/21/97 5.58 2,933,505
ALLIANZ OF AMERICA FINANCE CORP.
3,000 8/11/97 (a) 5.57 2,980,969
5,000 7/01/97 (a) 5.62 5,000,000
3,000 7/10/97 (a) 5.65 2,995,763
7,000 7/15/97 (a) 5.67 6,984,565
5,800 7/21/97 (a) 5.67 5,781,730
ASSOCIATES CORP. OF NORTH AMERICA
10,000 8/13/97 5.60 9,933,111
12,000 7/30/97 5.66 11,945,287
ATLAS FUNDING CORP.
5,117 7/15/97 (a) 5.67 5,105,717
BANCA CERFIN
4,000 8/07/97 5.39 3,977,841
BANCA CRT FINANCIAL CORP.
8,000 7/07/97 5.57 7,992,573
BANCO NACIONAL DE COMERCIO
5,000 9/17/97 5.55 4,939,875
15,000 12/02/97 5.60 14,640,667
BAT CAPITAL CORP.
5,000 8/05/97 (a) 5.57 4,972,924
8,000 8/13/97 (a) 5.58 7,946,680
BBV FINANCE DELAWARE, INC.
10,000 7/29/97 5.35 9,958,389
BHF FINANCE DELAWARE, INC.
30,000 9/24/97 5.58 29,605,104
BIL NORTH AMERICA, INC.
5,000 8/18/97 5.29 4,964,733
5,000 7/03/97 5.63 4,998,436
CAISSE CENTRALE JARDINS DU QUEBEC
5,000 8/05/97 5.40 4,973,750
8,000 8/21/97 5.40 7,938,800
7,000 9/12/97 5.70 6,919,092
CAISSE D'AMORTISSEMENT
4,694 10/03/97 5.48 4,626,834
CHIAO TUNG BANK CO., LTD.
5,000 8/26/97 5.33 4,958,544
COMMONWEALTH BANK OF AUSTRALIA
2,000 7/29/97 5.35 1,991,678
COPLEY FINANCING CORP.
5,000 7/11/97 (a) 5.55 4,992,292
CREGEM NORTH AMERICA, INC.
8,000 9/12/97 5.62 7,908,831
CS FIRST BOSTON
5,000 8/19/97 5.40 4,963,250
7,000 7/01/97 5.62 7,000,000
7,000 10/08/97 5.70 6,890,275
3,000 10/08/97 5.73 2,952,727
EKSPORTFINANS
4,100 7/03/97 5.63 4,098,718
18,000 7/03/97 5.93 17,994,070
EMBARCADERO CENTER ASSOCIATES
4,250 7/21/97 5.66 4,236,636
GENERALE BANK
30,000 7/16/97 5.55 29,930,625
7,000 8/27/97 5.61 6,937,822
GLENCORE FINANCE, LTD.
13,000 8/25/97 5.43 12,892,154
10,000 8/26/97 5.43 9,915,533
8,000 9/15/97 5.58 7,905,760
5,000 8/28/97 5.64 4,954,567
GOVERNMENT DEVELOPMENT
BANK OF PUERTO RICO
10,000 9/17/97 5.58 9,879,100
HENKEL CORP.
5,000 9/09/97 5.60 4,945,556
11,000 9/17/97 5.68 10,864,627
18,000 10/20/97 5.70 17,683,650
IMI FUNDING CORP.
6,366 7/01/97 5.30 6,366,000
7,000 7/23/97 5.37 6,977,028
20,000 7/01/97 5.58 20,000,000
10,000 7/21/97 5.60 9,968,889
INDUSTRIAL BANK KOREA
8,000 9/15/97 5.70 7,903,733
10,000 7/29/97 5.72 9,955,511
8,000 8/27/97 5.72 7,927,547
5,000 9/03/97 5.75 4,948,889
INTERNATIONALE NEDERLAND
5,500 9/09/97 5.58 5,440,325
1
STATEMENT OF NET ASSETS (CONTINUED) ALLIANCE MONEY RESERVES
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY# YIELD VALUE
- -------------------------------------------------------------------------
KOREAN DEVELOPMENT BANK
$ 10,000 8/22/97 5.65% $ 9,918,389
10,000 8/25/97 5.66 9,913,528
10,000 7/25/97 5.68 9,962,133
MERRILL LYNCH & CO., INC.
11,000 1/14/98 5.85 10,647,862
NATIONAL AUSTRALIA FUNDING
6,000 7/03/97 5.75 5,998,083
NATIONAL CITY BANK
7,000 9/29/97 5.59 6,902,175
PEMEX CAPITAL INC.
10,000 7/30/97 5.39 9,956,581
SOCIETE GENERALE N.A., INC.
4,000 7/14/97 5.32 3,992,316
TORONTO DOMINION HOLDINGS
10,000 12/23/97 5.58 9,728,750
UNI FUNDING, INC.
7,000 9/15/97 5.58 6,917,540
20,000 7/21/97 5.60 19,937,778
6,000 9/05/97 5.60 5,938,400
Total Commercial Paper
(amortized cost $568,568,387) 568,568,387
CERTIFICATES OF DEPOSIT-22.2%
BANK OF NEW YORK
5,000 5.51%, 7/09/97 5.51 5,000,000
BANK OF TOKYO
8,000 5.75%, 9/30/97 5.75 8,000,000
7,000 5.80%, 7/08/97 5.80 7,000,000
12,000 5.80%, 9/09/97 5.80 12,000,000
15,000 5.84%, 7/18/97 5.84 15,000,000
6,000 5.85%, 8/06/97 5.85 6,000,000
BAYERISCHE VEREINSBANK
5,000 5.50%, 7/07/97 5.50 5,000,000
CANADIAN IMPERIAL BANK OF COMMERCE
12,000 5.70%, 8/14/97 5.70 12,000,000
CARIPLO FINANCE, INC.
5,000 5.68%, 9/26/97 5.67 5,000,119
6,000 5.75%, 7/17/97 5.74 6,000,026
HESSISCHE LANDESBANK
11,000 6.13%, 4/07/98 6.25 10,990,345
J.P. MORGAN & CO., INC.
2,000 5.78%, 8/05/97 5.62 1,999,780
KOREAN DEVELOPMENT BANK
18,000 5.77%, 9/12/97 5.75 18,000,719
NORINCHUKIN BANK
5,000 5.74%, 7/28/97 5.74 5,000,000
4,000 5.80%, 7/09/97 5.79 4,000,009
5,000 5.81%, 9/08/97 5.80 5,000,094
10,000 5.83%, 7/22/97 5.82 10,000,057
20,000 5.84%, 8/07/97 5.83 20,000,304
SANWA BANK
8,000 5.65%, 7/07/97 5.65 8,000,000
10,000 5.66%, 7/14/97 5.66 10,000,000
7,000 5.69%, 7/10/97 5.66 7,000,043
SOCIETE GENERALE N.A., INC.
10,000 5.72%, 9/02/97 5.67 10,000,801
8,000 5.73%, 8/06/97 5.72 8,000,079
SUMITOMO BANK
7,000 5.68%, 7/09/97 5.70 6,999,947
14,000 5.68%, 7/15/97 5.68 14,000,000
4,000 5.70%, 7/03/97 5.68 4,000,004
Total Certificates of Deposit
(amortized cost $223,992,327) 223,992,327
BANK OBLIGATIONS-8.9%
AUSTRALIA & NEW ZEALAND BANK
3,000 5.90%, 9/23/97 5.88 2,998,802
BAYERISCHE VEREINSBANK
30,000 5.56%, 6/30/98 FRN 5.62 29,982,585
DEUTSCHE BANK
28,000 5.61%, 7/01/98 FRN 5.71 27,972,826
MORGAN GUARANTY TRUST CO.
10,000 5.69%, 11/14/97 FRN 5.77 9,996,508
19,000 5.96%, 6/22/98 5.99 18,993,802
Total Bank Obligations
(amortized cost $89,944,523) 89,944,523
CORPORATE OBLIGATIONS-7.3%
GENERAL ELECTRIC CAPITAL CORP.
10,000 5.75%, 1/05/98 FRN 5.75 10,000,000
J.P. MORGAN & CO., INC.
12,000 5.38%, 8/15/97 FRN 5.43 11,999,289
MERRILL LYNCH & CO., INC.
5,000 5.71%, 12/24/97 FRN 5.73 4,999,532
8,000 5.78%, 1/29/98 FRN 5.80 7,999,088
8,000 5.60%, 1/22/98 FRN 5.64 7,998,912
6,000 5.66%, 3/16/98 5.74 5,999,596
SALTS III CAYMAN ISLANDS CORP.
25,000 5.79%, 7/23/97 (a) 5.79 25,000,000
2
ALLIANCE MONEY RESERVES
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY# YIELD VALUE
- -------------------------------------------------------------------------
Total Corporate Obligations
(amortized cost $73,996,417) $73,996,417
PROMISSORY NOTES-4.5%
GOLDMAN SACHS GROUP L.P.
$ 20,000 5.71%, 10/14/97 FRN 5.71% 20,000,000
25,000 5.81%, 11/26/97 FRN 5.81 25,000,000
Total Promissory Notes
(amortized cost $45,000,000) 45,000,000
U.S GOVERNMENT & AGENCIES-2.2%
FEDERAL FARM CREDIT BANK
10,000 5.41%, 8/03/98 FRN 5.46 9,994,883
FEDERAL NATIONAL MORTGAGE ASSN.
12,000 5.37%, 8/25/97 FRN 5.41 11,999,301
Total U.S Government & Agencies
(amortized cost $21,994,184) $21,994,184
TIME DEPOSIT-1.2%
CANADIAN IMPERIAL BANK
12,500 6.38%, 7/01/97 6.38%
(amortized cost $12,500,000) 12,500,000
TOTAL INVESTMENTS-102.5%
(amortized cost $1,035,995,838) 1,035,995,838
Other assets less liabilities-(2.5%) (25,232,636)
NET ASSETS-100%
(offering and redemption price of
$1.00 per share; 1,011,953,177 shares
outstanding) $1,010,763,202
# All securities either mature or their interest rate changes in one year or
less.
(a) Securities issued in reliance on section 4(2) or Rule 144A of the
Securities Act of 1933. Rule 144A securities may be resold in transactions
exempt from registration, normally to qualified institutional buyers. These
securities have been determined by the Adviser to be liquid pursuant to
procedures adopted by the Trustees. At June 30, 1997, these securities amounted
to $74,457,280 representing 7.4% of net assets.
Glossary:
FRN - Floating Rate Note
See notes to financial statements.
3
STATEMENT OF OPERATIONS
YEAR ENDED JUNE 30, 1997 ALLIANCE MONEY RESERVES
_______________________________________________________________________________
INVESTMENT INCOME
Interest $49,999,048
EXPENSES
Advisory fee (Note B) $4,501,952
Distribution assistance and administrative service
(Note C) 2,943,595
Transfer agency (Note B) 1,134,745
Registration fees 545,912
Custodian fees 260,070
Printing 53,747
Audit and legal fees 27,299
Trustees' fees 11,765
Miscellaneous 23,094
Total expenses 9,502,179
Less: expense reimbursement (498,276)
Net expenses 9,003,903
Net investment income 40,995,145
REALIZED GAIN ON INVESTMENTS
Net realized gain on investment transactions 1,959
NET INCREASE IN NET ASSETS FROM OPERATIONS $40,997,104
See notes to financial statements.
4
STATEMENT OF CHANGES IN NET ASSETS ALLIANCE MONEY RESERVES
_______________________________________________________________________________
YEAR ENDED YEAR ENDED
JUNE 30, 1997 JUNE 30, 1996
--------------- ----------------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS
Net investment income $ 40,995,145 $ 91,025,881
Net realized gain on investment transactions 1,959 219,665
Net increase in net assets from operations 40,997,104 91,245,546
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income (40,995,145) (91,025,881)
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
Net increase (decrease) (Note E) 256,174,217 (1,755,232,623)
Total increase (decrease) 256,176,176 (1,755,012,958)
NET ASSETS
Beginning of year 754,587,026 2,509,599,984
End of year $1,010,763,202 $ 754,587,026
See notes to financial statements.
5
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1997 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, the
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. INVESTMENT INCOME AND INVESTMENT TRANSACTIONS
Interest income is accrued as earned. Investment transactions are recorded on a
trade date basis. Realized gain (loss) from investment 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. For the year ended June 30,
1997, the reimbursement amounted to $498,276. 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 $591,082 for the year ended June 30,
1997.
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 such payments in their
entirety for distribution assistance and promotional activities. For the year
ended June 30, 1997 the distribution fee amounted to $2,250,976. In addition,
the Portfolio may reimburse certain broker-dealers for administrative costs
incurred in connection with providing shareholder services, and may reimburse
the Adviser for accounting and bookkeeping, and legal and compliance support.
For the year ended June 30, 1997 such payments by the Portfolio amounted to
$692,619 of which $134,000 was paid to the Adviser.
NOTE D: INVESTMENT TRANSACTIONS
At June 30, 1997, the cost of investments for federal income tax purposes was
the same as the cost for financial reporting purposes. At June 30, 1997, the
Portfolio had a capital loss carryforward of $1,189,975 of which $595,606
expires in 1999, $72,812 expires in 2001, $64,655 expires in 2002 and $456,902
expires in the year 2003.
6
ALLIANCE MONEY RESERVES
_______________________________________________________________________________
NOTE E: TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
An unlimited number of shares ($.001 par value) are authorized. At June 30,
1997, capital paid-in aggregated $1,011,953,177. Transactions, all at $1.00 per
share, were as follows:
YEAR ENDED YEAR ENDED
JUNE 30, JUNE 30,
1997 1996
--------------- ---------------
Shares sold 2,835,564,705 7,775,799,887
Shares issued on reinvestments of dividends 40,995,145 91,025,881
Shares redeemed (2,620,385,633) (9,622,058,391)
Net increase (decrease) 256,174,217 (1,755,232,623)
7
FINANCIAL HIGHLIGHTS ALLIANCE MONEY RESERVES
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
YEAR
<TABLE>
<CAPTION>
YEAR ENDED JUNE 30,
--------------------------------------------------------------
1997 1996 1995 1994 1993
----------- ----------- ----------- ----------- ----------
<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 (a) .045 .047 .045 .025 .027
LESS: DIVIDENDS
Dividends from net investment income (.045) (.047) (.045) (.025) (.027)
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 (b) 4.64% 4.81% 4.50% 2.57% 2.71%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (in millions) $1,011 $755 $2,510 $1,795 $1,626
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 1.06% 1.00% 1.04% 1.09% 1.04%
Net investment income (a) 4.55% 4.80% 4.53% 2.55% 2.67%
</TABLE>
(a) Net of expenses reimbursed or waived by the Adviser.
(b) 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.
8
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, 1997 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, 1997, by correspondence with the custodian and brokers.
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, 1997, 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 29, 1997
9
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
DREW BIEGEL, SENIOR VICE 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
KENNETH T. CARTY, VICE PRESIDENT
JOHN F. CHIODI, JR., VICE PRESIDENT
DORIS T. CILIBERTI, VICE PRESIDENT
MARIA R. CONA, VICE PRESIDENT
WILLIAM J. FAGAN, VICE PRESIDENT
JOSEPH R. LASPINA, VICE PRESIDENT
LINDA D. NEIL, VICE PRESIDENT
RAYMOND J. PAPERA, VICE PRESIDENT
EDMUND P. BERGAN, JR., SECRETARY
MARK D. GERSTEN, TREASURER & CHIEF FINANCIAL OFFICER
VINCENT S. NOTO, 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
10
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
ALLIANCE CAPITAL
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
