ALLIANCE MONEY RESERVES
ALLIANCE CAPITAL
SEMI-ANNUAL REPORT
DECEMBER 31, 1997
(UNAUDITED)
STATEMENT OF NET ASSETS
DECEMBER 31, 1997 (UNAUDITED) ALLIANCE MONEY RESERVES
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY# YIELD VALUE
- -------------------------------------------------------------------------------
COMMERCIAL PAPER-50.6%
AKZO NOBEL, INC.
$ 5,000 4/14/98 5.75% $ 4,917,743
ASSET BACKED CAPITAL
5,000 2/17/98 (a) 5.60 4,963,444
ASSOCIATES CORP. OF NORTH AMERICA
15,000 2/27/98 5.60 14,867,000
10,000 3/16/98 5.74 9,882,011
10,000 1/02/98 6.75 9,998,125
BAA PLC
4,463 2/04/98 5.57 4,439,522
6,000 3/20/98 5.59 5,927,330
7,000 4/06/98 5.59 6,893,785
9,666 3/03/98 5.60 9,574,280
BANCO DE SANTANDER P.R.
5,000 3/16/98 5.76 4,940,800
BANQUE CAISSE D'EPARGNE
7,400 4/20/98 5.63 7,271,616
BBV FINANCE DELAWARE, INC.
9,000 3/20/98 5.57 8,891,385
19,000 5/01/98 5.58 18,646,600
BHF FINANCE DELAWARE, INC.
5,000 1/15/98 5.54 4,989,228
BIL NORTH AMERICA, INC.
12,000 3/11/98 5.62 11,867,980
5,000 3/16/98 5.68 4,941,108
CAISSE CENTRALE JARDINS DU QUEBEC
4,000 4/23/98 5.58 3,930,560
2,000 5/15/98 5.60 1,958,311
7,000 3/18/98 5.74 6,915,176
CAISSE D'AMORTISSEMENT
3,000 7/10/98 5.60 2,911,333
CAISSE DES DEPOTS ET CONSIGNATIONS
15,000 3/18/98 5.74 14,818,233
CENTAURI CORP. USA
4,350 3/05/98 (a) 5.60 4,307,370
CHIAO TUNG BANK CO., LTD.
4,000 1/16/98 5.60 3,990,667
5,000 2/25/98 5.63 4,956,993
COMMERZBANK
40,000 1/29/98 5.90 39,816,444
CS FIRST BOSTON
16,000 2/19/98 5.71 15,875,649
10,000 3/18/98 5.75 9,878,611
DRESDNER BANK
40,000 2/25/98 5.74 39,649,222
FORD MOTOR CREDIT CORP.
20,000 3/19/98 5.65 19,755,739
GENERAL ELECTRIC CAPITAL CORP.
15,000 2/09/98 5.56 14,909,650
5,000 3/26/98 5.57 4,935,017
10,000 3/18/98 5.67 9,880,300
GENERAL RE CORP.
20,000 3/27/98 5.76 19,728,000
GENERALE BANK
5,000 3/05/98 5.57 4,951,263
HENKEL CORP.
6,500 3/10/98 5.61 6,431,122
9,500 2/03/98 5.62 9,451,059
IMI FUNDING CORP. (USA)
6,000 2/10/98 5.55 5,963,000
8,000 2/27/98 5.57 7,929,446
4,061 3/31/98 5.57 4,005,079
5,731 3/16/98 5.61 5,664,912
5,000 1/02/98 5.63 4,999,218
5,000 6/08/98 5.63 4,874,917
INTERNATIONAL NEDERLAND BANK
5,000 3/18/98 5.75 4,939,306
5,000 3/31/98 5.77 4,928,676
25,000 3/09/98 5.80 24,730,139
JES DEVELOPMENTS, INC.
10,000 2/02/98 (a) 6.00 9,946,667
MERRILL LYNCH & CO., INC.
11,000 1/14/98 5.85 10,976,763
MORGAN STANLEY GROUP, INC.
5,000 3/11/98 5.62 4,944,896
23,000 2/23/98 5.70 22,806,992
20,000 2/25/98 5.75 19,824,305
NATIONAL CITY BANK
10,000 2/13/98 5.85 9,930,125
ROSE FUNDING
11,100 2/03/98 (a) 5.67 11,042,308
SIGMA FINANCE, INC.
6,000 3/05/98 (a) 5.62 5,940,990
1
STATEMENT OF NET ASSETS (CONTINUED) ALLIANCE MONEY RESERVES
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY# YIELD VALUE
- -------------------------------------------------------------------------------
TEXACO, INC.
$10,000 3/12/98 5.66% $ 9,888,194
TORONTO DOMINION HOLDINGS
5,000 4/06/98 5.56 4,926,639
Total Commercial Paper
(amortized cost $550,325,248) 550,325,248
BANK OBLIGATIONS-20.3%
ABBEY NATIONAL
5,000 5.88%, 3/25/98 FRN 5.98 4,999,293
BANKERS TRUST
25,000 6.03%, 2/19/98 FRN 6.03 25,000,000
15,000 6.06%, 2/17/98 FRN 6.06 15,000,000
BAYERISCHE LANDESBANK
25,000 5.87%, 10/02/98 FRN 5.86 25,000,000
BAYERISCHE VEREINSBANK
30,000 5.88%, 6/30/98 FRN 5.94 29,991,388
DEUTSCHE BANK
28,000 5.61%, 7/01/98 FRN 5.71 27,986,525
FCC NATIONAL BANK OF CHICAGO
20,000 6.00%, 3/25/98 5.72 20,002,656
LASALLE NATIONAL BANK
15,000 5.72%, 6/30/98 5.72 15,000,000
MORGAN GUARANTY TRUST CO.
19,000 5.96%, 6/22/98 5.99 18,997,006
ROYAL BANK OF CANADA
13,000 6.01%, 9/30/98 FRN 6.01 13,000,000
SMM TRUST
10,000 5.91%, 12/16/98 FRN (a) 5.91 10,000,000
15,000 6.00%, 12/14/98 FRN (a) 6.00 15,000,000
Total Bank Obligations
(amortized cost $219,976,868) 219,976,868
CERTIFICATES OF DEPOSIT-13.1%
ABN AMRO
7,000 6.19%, 4/22/98 5.82 7,002,622
BANK OF MONTREAL
19,000 5.87%, 8/31/98 5.86 18,988,221
BANQUE NATIONALE DE PARIS
2,760 5.78%, 2/04/98 5.92 2,758,843
CANADIAN IMPERIAL BANK OF COMMERCE
20,000 5.80%, 3/31/98 5.80 20,000,000
20,000 5.81%, 3/17/98 5.81 20,000,000
CREDIT AGRICOLE
4,000 5.68%, 2/02/98 5.75 3,999,855
7,000 5.99%, 6/16/98 5.86 7,001,395
DEUTSCHE BANK
13,000 5.95%, 10/21/98 6.00 12,995,013
HESSISCHE LANDESBANK
5,000 5.94%, 6/19/98 5.86 4,999,951
11,000 6.13%, 4/07/98 6.25 10,996,690
MORGAN GUARANTY TRUST CO.
6,000 5.81%, 3/30/98 5.79 6,000,246
NORINCHUKIN BANK
10,000 5.75%, 1/20/98 5.74 10,000,052
SOCIETE GENERALE N.A., INC.
10,000 5.69%, 3/19/98 5.70 9,999,037
WESTPAC BANKING CORP.
7,000 6.22%, 4/07/98 5.82 7,002,525
Total Certificates of Deposit
(amortized cost $141,744,450) 141,744,450
CORPORATE OBLIGATIONS-8.8%
ALLSTATE LIFE INSURANCE
FUNDING AGREEMENT
20,000 6.00%, 8/31/98 FRN (b) 6.00 20,000,000
GENERAL AMERICAN FUNDING CORP.
26,000 5.89%, 7/10/98 FRN 5.89 26,000,000
GENERAL ELECTRIC CAPITAL CORP.
10,000 5.65%, 1/05/98 FRN 5.61 10,000,000
MERRILL LYNCH & CO., INC.
6,000 5.66%, 3/16/98 5.74 5,999,884
8,000 5.71%, 1/29/98 FRN 5.73 7,999,880
8,000 5.76%, 1/22/98 FRN 5.80 7,999,888
8,000 5.88%, 8/26/98 5.90 8,000,000
TRAVELERS LIFE FUNDING AGREEMENT
10,000 5.70%, 10/21/98 FRN (b) 5.70 10,000,000
Total Corporate Obligations
(amortized cost $95,999,652) 95,999,652
2
ALLIANCE MONEY RESERVES
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY# YIELD VALUE
- -------------------------------------------------------------------------------
PROMISSORY NOTES-4.7%
GOLDMAN SACHS GROUP LP
$20,000 5.75%, 4/13/98 5.75% $ 20,000,000
7,500 5.76%, 2/09/98 FRN 5.76 7,500,000
23,000 5.88%, 5/27/98 5.88 23,000,000
Total Promissory Notes
(amortized cost $50,500,000) 50,500,000
U.S. GOVERNMENT & AGENCY
OBLIGATIONS-1.8%
FEDERAL FARM CREDIT BANK
10,000 5.53%, 8/03/98 FRN 5.58 9,997,248
FEDERAL NATIONAL MORTGAGE ASSN.
10,000 5.94%, 11/04/98 6.03 9,993,084
Total U.S. Government &
Agency Obligations
(amortized cost $19,990,332) 19,990,332
TIME DEPOSIT-0.2%
WEST DEUTSCHE LANDESBANK
2,600 6.75%, 1/02/98
(amortized cost $2,600,000) 6.75 2,600,000
TOTAL INVESTMENTS-99.5%
(amortized cost $1,081,136,550) 1,081,136,550
Other assets less liabilities-0.5% 5,669,926
NET ASSETS-100%
(offering and redemption price
of $1.00 per share;
1,087,996,641 shares outstanding) $1,086,806,476
# 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 and Exchange 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 December 31, 1997, these
securities amounted to $61,200,779, representing 5.6% of net assets.
(b) Illiquid securities, valued at fair market value (see Note A).
Glossary:
FRN - Floating Rate Note
See notes to financial statements.
3
STATEMENT OF OPERATIONS
SIX MONTHS ENDED DECEMBER 31, 1997 (UNAUDITED) ALLIANCE MONEY RESERVES
_______________________________________________________________________________
INVESTMENT INCOME
Interest $ 31,584,094
EXPENSES
Advisory fee (Note B) $ 2,755,331
Distribution assistance and
administrative service (Note C) 1,738,223
Transfer agency (Note B) 683,126
Registration fees 282,223
Custodian fees 114,157
Printing 58,112
Audit and legal fees 14,840
Trustees' fees 5,461
Miscellaneous 8,688
Total expenses 5,660,161
Less: expense reimbursement (149,499)
Net expenses 5,510,662
Net investment income 26,073,432
REALIZED LOSS ON INVESTMENTS
Net realized loss on
investment transactions (190)
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 26,073,242
See notes to financial statements.
4
STATEMENT OF CHANGES IN NET ASSETS ALLIANCE MONEY RESERVES
_______________________________________________________________________________
SIX MONTHS ENDED
DEC. 31, 1997 YEAR ENDED
(UNAUDITED) JUNE 30,1997
---------------- ----------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
Net investment income $ 26,073,432 $ 40,995,145
Net realized gain (loss) on
investment transactions (190) 1,959
Net increase in net assets
from operations 26,073,242 40,997,104
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income (26,073,432) (40,995,145)
TRANSACTIONS IN SHARES OF
BENEFICIAL INTEREST
Net increase (Note E) 76,043,464 256,174,217
Total increase 76,043,274 256,176,176
NET ASSETS
Beginning of period 1,010,763,202 754,587,026
End of period $1,086,806,476 $1,010,763,202
See notes to financial statements.
5
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997 (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 of which is considered to be a separate entity for financial
reporting and tax purposes. 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 financial
statements have been prepared in conformity with generally accepted accounting
principles which require management to make certain estimates and assumptions
that affect the reported amounts of assets and liabilities in the financial
statements and amounts of income and expenses during the reporting period.
Actual results could differ from those estimates. 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. Illiquid securities containing unconditional
par puts are valued at par.
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, pursuant to the
advisory agreement, 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, 1997, the reimbursement
amounted to $149,499.
The Portfolio compensates Alliance Fund Services, Inc., a wholly-owned
subsidiary of the Adviser, under a Transfer Agency Agreement for providing
personnel and facilities to perform transfer agency services for the Portfolio.
Such compensation amounted to $374,873 for the six months ended December 31,
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 six
months ended December 31, 1997, the distribution fee amounted to $1,377,665. 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, 1997, such payments by the
Portfolio amounted to $360,558 of which $68,000 was paid to the Adviser.
6
ALLIANCE MONEY RESERVES
_______________________________________________________________________________
NOTE D: INVESTMENT TRANSACTIONS
At December 31, 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 the year 1999, $72,812 expires in the year 2001, $64,655 expires in
the year 2002 and $456,902 expires in the year 2003.
NOTE E: TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
An unlimited number of shares ($.001 par value) are authorized. At December 31,
1997, capital paid-in aggregated $1,087,996,641. Transactions, all at $1.00 per
share, were as follows:
SIX MONTHS ENDED YEAR ENDED
DEC. 31, 1997 JUNE 30,
(UNAUDITED) 1997
---------------- ----------------
Shares sold 2,313,216,559 2,835,564,705
Shares issued on reinvestments of dividends 26,073,432 40,995,145
Shares redeemed (2,263,246,527) (2,620,385,633)
Net increase 76,043,464 256,174,217
7
FINANCIAL HIGHLIGHTS ALLIANCE MONEY RESERVES
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
DEC. 31, YEAR ENDED JUNE 30,
1997 ---------------------------------------------------------------
(UNAUDITED) 1997 1996 1995 1994 1993
----------- ----------- ----------- ----------- ----------- -----------
<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 (a) .024 .045 .047 .045 .025 .027
LESS: DIVIDENDS
Dividends from net investment income (.024) (.045) (.047) (.045) (.025) (.027)
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 (b) 4.78%(c) 4.64% 4.81% 4.50% 2.57% 2.71%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(in millions) $1,087 $1,011 $755 $2,510 $1,795 $1,626
Ratio to average net assets of:
Expenses, net of waivers
and reimbursements 1.00%(c) 1.00% 1.00% 1.00% 1.00% 1.00%
Expenses, before waivers
and reimbursements 1.03%(c) 1.06% 1.00% 1.04% 1.09% 1.04%
Net investment income (a) 4.73%(c) 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.
(c) Annualized.
8
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
