ALLIANCE MONEY RESERVES
SEMI-ANNUAL REPORT
DECEMBER 31, 1996
(UNAUDITED)
STATEMENT OF NET ASSETS
DECEMBER 31, 1996 (UNAUDITED) ALLIANCE MONEY RESERVES
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY# YIELD VALUE
- ------------------------------------------------------------------------
COMMERCIAL PAPER-46.2%
ABN AMRO N. AMERICAN FINANCE
$ 10,000 2/14/97 5.38% $ 9,934,244
AKZO NOBEL, INC.
6,000 3/20/97 5.30 5,931,100
ALLIANZ OF AMERICA FINANCE CORP.
9,000 3/11/97* 5.32 8,908,230
4,535 3/20/97* 5.45 4,481,449
ASSOCIATES CORP. OF NORTH AMERICA
10,000 1/29/97 5.30 9,958,778
BIL NORTH AMERICA, INC.
8,000 2/18/97 5.30 7,943,467
BT SECURITIES INC.
5,000 2/27/97 5.32 4,957,883
7,000 3/04/97 5.33 6,935,744
CAISSE D'AMORTISSEMENT
10,000 2/06/97 5.33 9,946,700
5,000 3/10/97 5.64 4,946,781
CAISSE DES DEPOTS ET
CONSIGNATIONS
5,000 1/24/97 5.36 4,982,878
CARIPLO FINANCE, INC.
5,000 3/20/97 5.44 4,941,067
CHIAO TUNG BANK CO., LTD.
5,000 2/24/97 5.42 4,959,350
2,500 1/08/97 5.47 2,497,341
COMMONWEALTH BANK OF AUSTRALIA
5,000 3/20/97 5.40 4,941,500
COPLEY FINANCING CORP.
10,000 1/24/97* 5.50 9,964,861
CREGEM NORTH AMERICA, INC.
5,000 2/21/97 5.30 4,962,458
5,000 2/12/97 5.31 4,969,025
CS FIRST BOSTON
5,000 2/07/97 5.32 4,972,661
5,000 1/31/97 5.33 4,977,792
4,000 2/10/97 5.33 3,976,311
6,000 2/11/97 5.33 5,963,578
EKSPORTFINANS
5,000 6/18/97 5.35 4,875,167
5,000 3/19/97 5.37 4,944,062
ELECTRICITY CORP. OF
NEW ZEALAND, LTD.
9,000 1/30/97 5.35 8,961,213
EMBARCADERO CENTER IV
5,000 1/22/97 5.80 4,983,083
FORD MOTOR CREDIT CORP.
10,000 1/30/97 5.30 9,957,306
10,000 1/31/97 5.30 9,955,833
10,000 1/27/97 5.31 9,961,650
GENERAL ELECTRIC CAPITAL CORP.
7,000 3/03/97 5.59 6,933,696
9,000 6/09/97 5.69 8,773,823
GENERALE BANK
5,000 3/10/97 5.35 4,949,472
GOVERNMENT DEVELOPMENT
BANK OF PUERTO RICO
5,700 3/12/97 5.36 5,640,593
IMI FUNDING CORP.
2,294 2/05/97 5.32 2,282,135
INDUSTRIAL BANK KOREA
15,000 3/12/97 5.38 14,843,083
7,500 3/10/97 5.40 7,423,500
KINGDOM OF SWEDEN
5,000 1/17/97 5.30 4,988,222
5,000 3/05/97 5.30 4,953,625
KOREAN DEVELOPMENT BANK
11,000 2/25/97 5.31 10,910,762
10,000 2/13/97 5.32 9,936,456
10,000 2/10/97 5.33 9,940,778
5,000 1/23/97 5.35 4,983,653
5,000 3/17/97 5.45 4,943,229
MERRILL LYNCH & CO., INC.
15,000 3/20/97 5.30 14,827,750
6,000 2/06/97 5.31 5,968,140
6,000 1/24/97 5.33 5,979,568
MORGAN STANLEY GROUP, INC.
10,000 2/11/97 5.32 9,939,411
16,000 2/12/97 5.32 15,900,694
PHH CORP.
8,500 1/28/97 5.47 8,465,129
9,000 1/31/97 5.55 8,958,375
ROSE FUNDING
5,000 3/26/97* 5.40 4,937,000
5,000 3/26/97* 5.45 4,936,417
5,000 2/28/97* 5.62 4,954,728
TASMANIAN PUBLIC FINANCE CORP.
5,000 4/14/97 5.35 4,923,465
15,000 4/17/97 5.42 14,760,617
1
STATEMENT OF NET ASSETS (CONTINUED) ALLIANCE MONEY RESERVES
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY# YIELD VALUE
- ------------------------------------------------------------------------
UNI FUNDING, INC.
$ 7,000 2/11/97 5.30% $ 6,957,747
11,000 1/27/97 5.38 10,957,259
WMC FINANCE, LTD.
7,500 1/22/97 5.44 7,476,200
Total Commercial Paper
(amortized cost $421,137,039) 421,137,039
CERTIFICATES OF DEPOSIT-36.6%
ABN AMRO
20,000 5.41%, 4/03/97 5.39 20,000,964
BANK OF TOKYO
15,000 5.45%, 2/24/97 5.45 15,000,000
7,000 5.50%, 3/04/97 5.50 7,000,000
5,000 5.51%, 4/08/97 5.51 5,000,000
15,000 5.65%, 4/30/97 5.65 15,000,000
BAYERISCHE HYPOBANK
10,000 5.39%, 3/05/97 5.38 10,000,173
7,500 5.65%, 3/14/97 5.43 7,502,145
BAYERISCHE VEREINSBANK
15,000 5.41%, 2/21/97 5.40 14,999,528
CANADIAN IMPERIAL BANK OF COMMERCE
10,000 5.37%, 2/28/97 5.37 10,000,000
COMMERZBANK
5,000 5.36%, 1/15/97 5.36 5,000,003
DAI ICHI KANGYO BANK
5,000 5.89%, 1/21/97 5.88 5,000,028
DEUTSCHE BANK
6,000 5.41%, 4/08/97 5.41 6,000,000
10,000 5.48%, 1/03/97 5.65 9,999,862
10,000 5.53%, 4/02/97 5.80 9,993,331
DRESDNER BANK
10,000 5.90%, 6/03/97 5.90 10,000,000
HESSISCHE LANDESBANK
8,000 5.70%, 4/29/97 5.80 7,997,454
INDUSTRIAL BANK OF JAPAN
15,000 5.61%, 1/03/97 5.61 15,000,000
10,000 5.93%, 1/21/97 5.93 10,000,000
NORINCHUKIN BANK
5,000 5.46%, 2/07/97 5.45 5,000,050
5,000 5.46%, 2/18/97 5.45 5,000,066
5,000 5.53%, 4/07/97 5.52 5,000,131
5,000 5.55%, 1/15/97 5.54 5,000,056
4,000 5.57%, 4/11/97 5.56 4,000,109
10,000 5.63%, 4/23/97 5.62 10,000,305
10,000 5.64%, 4/18/97 5.63 10,000,292
SANWA BANK
10,000 5.49%, 1/22/97 5.48 10,000,058
6,000 5.52%, 1/29/97 5.52 6,000,000
5,000 5.55%, 2/06/97 5.54 5,000,043
SOCIETE GENERALE N.A., INC.
5,000 5.39%, 2/13/97 5.37 5,000,099
15,000 5.45%, 2/07/97 5.44 15,000,179
7,000 5.45%, 2/10/97 5.46 6,999,981
18,000 5.66%, 4/16/97 5.50 17,997,281
SUMITOMO BANK
5,000 5.49%, 1/27/97 5.49 5,000,000
5,000 5.59%, 1/31/97 5.59 5,000,000
10,000 5.92%, 1/27/97 5.92 10,000,000
WESTPAC BANKING CORP.
20,000 5.47%, 3/19/97 5.46 20,000,422
Total Certificates of Deposit
(amortized cost $333,492,560) 333,492,560
CORPORATE OBLIGATIONS-5.6%
BETA FINANCE CORP.
10,000 5.92%, 6/06/97 * 6.00 9,996,700
J.P. MORGAN & CO., INC.
12,000 5.39%, 8/15/97 FRN 5.44 11,996,428
MERRILL LYNCH & CO., INC.
5,000 5.52%, 12/24/97 FRN 5.54 4,999,051
SALTS III CAYMAN ISLANDS CORP.
20,000 5.68%, 1/23/97 * 5.68 20,000,000
TOYOTA MOTOR CREDIT CORP.
4,000 5.55%, 3/20/97 5.40 4,000,743
Total Corporate Obligations
(amortized cost $50,992,922) 50,992,922
BANK OBLIGATIONS-5.6%
BANK OF NEW YORK
10,000 5.60%, 3/24/97 5.79 9,992,488
BANKERS TRUST
8,000 5.63%, 2/05/97 FRN 5.63 8,000,000
FCC NATIONAL BANK OF WILMINGTON
3,000 5.08%, 2/24/97 5.38 2,997,801
MORGAN GUARANTY TRUST CO.
10,000 5.38%, 11/14/97 FRN 5.46 9,991,859
20,000 5.50%, 1/08/97 5.50 20,000,000
Total Bank Obligations
(amortized cost $50,982,148) 50,982,148
2
ALLIANCE MONEY RESERVES
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY# YIELD VALUE
- ------------------------------------------------------------------------
PROMISSORY NOTES-3.8%
GOLDMAN SACHS GROUP L.P.
$ 15,000 5.53%, 3/13/97 FRN 5.53% $ 15,000,000
20,000 5.63%, 2/14/97 FRN 5.63 20,000,000
Total Promissory Notes
(amortized cost $35,000,000) 35,000,000
U.S GOVERNMENT & AGENCIES-2.4%
FEDERAL FARM CREDIT BANK
10,000 5.41%, 8/03/98 FRN 5.46 9,992,555
FEDERAL NATIONAL MORTGAGE ASSN.
12,000 5.38%, 8/25/97 FRN 5.42 11,997,003
Total U.S Government & Agencies
(amortized cost $21,989,558) 21,989,558
BANKERS ACCEPTANCE-0.4%
INDUSTRIAL BANK OF JAPAN
4,000 5.73%, 1/16/97 5.73 3,990,450
TOTAL INVESTMENTS-100.6%
(amortized cost $917,584,677) 917,584,677
Other assets less liabilities-(0.6%) (5,394,651)
NET ASSETS-100%
(offering and redemption
price of $1.00 per share;
913,381,384 shares outstanding) $912,190,026
# All securities either mature or their interest rate changes in one year or
less.
* Restricted securities.
Glossary:
FRN - Floating Rate Note
See notes to financial statements.
3
STATEMENT OF OPERATIONS
SIX MONTHS ENDED DECEMBER 31, 1996 (UNAUDITED)
ALLIANCE MONEY RESERVES
_______________________________________________________________________________
INVESTMENT INCOME
Interest $23,301,855
EXPENSES
Advisory fee (Note B) $2,121,137
Distribution assistance and administrative
service (Note C) 1,369,990
Transfer agency (Note B) 502,831
Registration fees 145,269
Custodian fees 104,250
Printing 34,486
Audit and legal fees 12,127
Trustees' fees 5,704
Miscellaneous 11,160
Total expenses 4,306,954
Less: expense reimbursement (64,680) 4,242,274
Net investment income 19,059,581
REALIZED GAIN ON INVESTMENTS
Net realized gain on investments 576
NET INCREASE IN NET ASSETS FROM OPERATIONS $19,060,157
See notes to financial statements.
4
STATEMENTS OF CHANGES IN NET ASSETS ALLIANCE MONEY RESERVES
_______________________________________________________________________________
SIX MONTHS ENDED
DEC. 31, 1996 YEAR ENDED
(UNAUDITED) JUNE 30,1996
------------- ---------------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income $ 19,059,581 $ 91,025,881
Net realized gain on investments 576 219,665
Net increase in net assets from operations 19,060,157 91,245,546
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income (19,059,581) (91,025,881)
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
Net increase (decrease) (Note E) 157,602,424 (1,755,232,623)
Total increase (decrease) 157,603,000 (1,755,012,958)
NET ASSETS
Beginning of period 754,587,026 2,509,599,984
End of period $912,190,026 $ 754,587,026
See notes to financial statements.
5
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1996 (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. 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. For the six months ended
December 31, 1996, the reimbursement amounted to $64,680. 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 $282,531 for the six
months ended December 31, 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 such payments in their
entirety for distribution assistance and promotional activities. For the six
months ended December 31, 1996 the distribution fee amounted to $1,060,568. 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 six months ended December 31, 1996 such payments by the
Portfolio amounted to $309,422 of which $66,000 was paid to the Adviser.
6
ALLIANCE MONEY RESERVES
_______________________________________________________________________________
NOTE D: INVESTMENT TRANSACTIONS
At December 31, 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
$479,849 expires in 2003.
NOTE E: TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
An unlimited number of shares ($.001 par value) are authorized. At December 31,
1996, capital paid-in aggregated $913,381,384. Transactions, all at $1.00 per
share, were as follows:
SIX MONTHS ENDED YEAR ENDED
DEC. 31, 1996 JUNE 30,
(UNAUDITED) 1996
--------------- ---------------
Shares sold 1,285,114,986 7,775,799,887
Shares issued on reinvestments of dividends 19,059,581 91,025,881
Shares redeemed (1,146,572,143) (9,622,058,391)
Net increase (decrease) 157,602,424 (1,755,232,623)
7
NOTES TO FINANCIAL STATEMENTS (CONTINUED) ALLIANCE MONEY RESERVES
_______________________________________________________________________________
NOTE F: FINANCIAL HIGHLIGHTS
Selected data for a share outstanding throughout each period.
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
DECEMBER 31, YEAR ENDED JUNE 30,
1996 --------------------------------------------------------------
(UNAUDITED) 1996 1995 1994 1993 1992
------------- ----------- ----------- ----------- ----------- ----------
<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 .023 .047 .045 .025 .027 .044
LESS: DISTRIBUTIONS
Dividends from net investment income (.023) (.047) (.045) (.025) (.027) (.044)
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) 4.53%(b) 4.81% 4.50% 2.57% 2.71% 4.47%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $912 $755 $2,510 $1,795 $1,626 $1,412
Ratio to average net assets of:
Expenses, net of waivers and
reimbursements 1.00%(b) 1.00% 1.00% 1.00% 1.00% 1.00%
Expenses, before waivers and
reimbursements 1.02%(b) 1.00% 1.04% 1.09% 1.04% 1.04%
Net investment income (c) 4.49%(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) Annualized.
(c) Net of expenses reimbursed or waived by the Adviser.
8
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
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
9
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.
MONSR
ALC36PR07
