--------------------------------------------------------------------------------
Alliance
Capital
Reserves
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Alliance Capital [LOGO](R)
Annual Report
June 30, 2000
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<PAGE>
LETTER TO SHAREHOLDERS Alliance Capital Reserves
================================================================================
August 2, 2000
Dear Shareholder:
We are pleased to provide you with an update of Alliance Capital Reserves for
the annual reporting period ended June 30, 2000.
U.S. financial markets were anticipating some signs of a slowdown for the first
half of 2000--some sign that past Fed rate hikes were having an effect and that
little, if any, further tightening would be necessary. The U.S. economy,
however, has continued to grow. The U.S. Commerce Department recently reported
that the U.S. economy grew at an impressive, seasonally-adjusted annual rate of
+5.2% during the spring quarter. Inflation, as measured by the broad and
reliable gross domestic purchases and personal consumption price indices, held
stable at 2.5% on a year-earlier basis. The second-quarter growth number, well
above the 3.5% to 4.0%, consensus and actually faster than a downward-revised
quarter-one growth rate of +4.8%, created immediate anxiety. As a result,
interest rates headed higher and stock prices headed lower.
The U.S. economy's gross domestic product report does, however, give evidence to
some signs of cooling off. For example, a key measure of aggregate demand (real
final sales) slowed sharply to +4.2% from +6.7% in the first quarter. Monthly
evidence that consumers had taken a break from their long-running shopping spree
was confirmed. Household spending dipped to just +3.0% in the second quarter
versus +7.6% in the first quarter. Unwanted inventories added a full percentage
point to second-quarter growth. We also believe that a more meaningful
comparison can be made between growth during the second half of 1999 (+7.0%) and
growth during the first half of this year (+5.0%).
In his late-July Congressional testimony, Fed Chairman Alan Greenspan laid out
an upbeat forecast for the U.S. economy and rendered a somewhat
self-congratulatory assessment of the role the Federal Reserve has played in
securing that future. To be sure, we welcome his endorsement of both the "New
Economy" paradigm and our own bullishness about accelerating productivity. The
subsequent report on employment costs, showing a quarter-to-quarter gain of only
1.0% in the spring versus a 1.4% rise in the first quarter, and the
soon-to-be-released report on second-quarter productivity, should help to
validate the Chairman's optimism. Mr. Greenspan is repositioning the Fed to play
a more reactive role going forward. He understands that financial markets should
and must take the lead role in terms of steering the New Economy. As a
consequence, although we still believe the Fed will tighten further, we look for
that tightening to come late in the year and only after the bond market has laid
the groundwork.
As for U.S. financial markets, the road to higher prices will be a bit bumpier
than we expected. Inaction by the Fed toward the end of August could open the
window to the upside, but for now we see more volatility than opportunity. With
an election in front of us, the next several months could be a difficult time
for investors. Therefore investors may want to use periods of asset market
strength to establish more defensive positions.
We appreciate your investment in the portfolios of Alliance Capital Reserves and
look forward to reporting further investment progress in the coming period.
Sincerely,
/s/ Ronald M. Whitehill
Ronald M. Whitehill
President
1
<PAGE>
STATEMENT OF NET ASSETS
June 30, 2000 Alliance Capital Reserves
================================================================================
Principal
Amount
(000) Security (a) Yield Value
--------------------------------------------------------------------------------
COMMERCIAL PAPER-44.6%
Abbey National NA
$ 120,000 9/28/00 ............................. 6.24% $118,148,800
Aegon Funding
Corp. N.V
63,000 9/26/00 ............................. 6.23 62,051,482
Alcoa, Inc.
80,000 8/23/00 ............................. 6.57 79,226,200
Asset Backed
Capital Finance, Ltd.
72,000 11/15/00 FRN (b) .................... 6.79 72,000,000
53,000 2/07/01 MTN (b) ..................... 6.80 53,000,000
Associates Corp. of
North America
57,000 8/30/00 ............................. 6.57 56,375,850
60,000 8/23/00 ............................. 6.59 59,417,883
AT&T Corp.
148,765 8/23/00 ............................. 6.57 147,327,764
BAA Plc
30,000 8/15/00 ............................. 6.45 29,758,125
Bank of America Corp.
123,000 11/06/00 ............................ 6.61 120,109,227
Banque Generale
Du Luxembourg
48,000 7/13/00 ............................. 6.57 47,894,880
BBV Finance
Delaware, Inc.
60,000 9/05/00 ............................. 6.59 59,275,100
Bell Atlantic
Financial Services
30,000 8/24/00 ............................. 6.57 29,704,350
24,000 8/25/00 ............................. 6.57 23,759,100
50,000 8/28/00 ............................. 6.57 49,470,750
50,000 8/29/00 ............................. 6.57 49,461,625
CDC Commercial
Paper
235,000 7/05/00 ............................. 6.90 234,819,833
Certain Funding Corp.
20,000 9/11/00 (b) ......................... 6.63 19,734,800
Concord Minute-A
63,000 7/10/00 (b) ......................... 6.15 62,903,137
Corporate Receivables
Corp
72,000 8/21/00 (b) ......................... 6.64 71,322,720
48,000 8/22/00 (b) ......................... 6.64 47,539,627
Cregem North America,
Inc.
60,000 9/18/00 ............................. 6.57 59,134,950
CS First Boston, Inc.
60,000 8/11/00 (b) ......................... 6.63 59,546,950
CXC, Inc.
140,000 8/22/00 (b) ......................... 6.62 138,661,289
60,000 8/21/00 (b) ......................... 6.65 59,434,750
DaimlerChrysler Corp.
150,000 7/12/00 ............................. 6.81 149,687,875
Den Danske Corp.
65,000 9/08/00 ............................. 6.59 64,179,619
30,000 9/07/00 ............................. 6.62 29,624,866
Eksportfinans ALS
40,000 9/07/00 ............................. 6.55 39,505,111
Ford Motor Credit
Corp.
150,000 7/06/00 ............................. 6.81 149,858,125
Fortis Funding
67,000 8/28/00 ............................. 6.57 66,290,289
Four Winds Funding
Corp.
60,000 10/27/00 (b) ........................ 6.62 58,698,067
Galaxy Funding, Inc.
38,000 7/10/00 (b) ......................... 6.58 37,937,490
85,000 9/06/00 (b) ......................... 6.66 83,946,425
General Electric
Financial Assurance
39,000 7/05/00 ............................. 6.98 38,969,753
Golden Funding Corp.
50,000 8/31/00 (b) ......................... 6.60 49,440,834
30,000 8/14/00 (b) ......................... 6.64 29,756,533
Goldman Sachs
Group LP
30,000 8/15/00 ............................. 6.58 29,753,250
124,000 8/23/00 ............................. 6.60 122,795,133
Grand Funding Corp.
13,000 8/23/00 (b) ......................... 6.63 12,873,109
35,000 7/26/00 (b) ......................... 6.70 34,837,153
Greenwich Funding Corp.
98,675 9/06/00 (b) ......................... 6.64 97,455,596
Home Depot Real Estate
Funding Corp.
37,469 11/06/00 ............................ 6.77 36,567,079
ING America Insurance
Holdings, Inc.
87,600 9/14/00 ............................. 6.63 86,390,025
International
Securitization Corp.
28,695 7/14/00 (b) ......................... 6.62 28,626,403
2
<PAGE>
Alliance Capital Reserves
================================================================================
Principal
Amount
(000) Security (a) Yield Value
--------------------------------------------------------------------------------
KFW International
Finance, Inc.
$ 85,000 8/28/00 ..................... 6.57% $ 84,100,275
National City Corp.
153,000 8/29/00 ..................... 6.59 151,347,557
National Rural Utility
Corp.
20,000 8/23/00 ..................... 6.58 19,806,256
Pfizer Corp.
30,000 8/09/00 (b) ................. 6.57 29,786,475
Santander Finance
85,000 9/29/00 ..................... 6.59 83,599,625
Sheffield Receivables
Corp.
190,000 7/26/00 (b) ................. 6.67 189,119,931
Teacher's Insurance
43,000 7/28/00 ..................... 6.60 42,787,150
70,000 7/31/00 ..................... 6.60 69,615,000
Thames Global Asset
Funding
51,625 8/09/00 (b) ................. 6.62 51,254,763
UBS Finance
240,000 7/05/00 ..................... 7.10 239,812,867
Variable Funding
Capital Corp.
75,000 9/05/00 (b) ................. 6.60 74,092,500
70,000 9/11/00 (b) ................. 6.62 69,073,200
Wal-Mart Stores, Inc.
20,000 8/22/00 ..................... 6.56 19,810,489
83,000 8/29/00 ..................... 6.56 82,107,658
41,000 9/06/00 ..................... 6.58 40,497,909
Wells Fargo Corp.
128,000 8/28/00 ..................... 6.58 126,643,058
Westways Funding IV,
Ltd.
75,000 9/07/00 (b) ................. 6.68 74,053,667
Westways Funding V,
Ltd.
34,000 9/07/00 (b) ................. 6.68 33,570,996
--------------
Total Commercial Paper
(amortized cost
$4,538,351,303) ............. 4,538,351,303
--------------
CERTIFICATES OF
DEPOSIT-20.5%
Commerzbank
20,000 6.65%, 8/23/00 .............. 6.64 20,000,291
Deutsche Bank FRN
96,000 6.54%, 3/13/01 .............. 6.58 95,973,602
Dexia CLF Finance Co. WI
120,000 6.62%, 9/01/00 .............. 6.62 120,000,000
Dresdner Bank AG
232,000 6.46%, 12/11/00 ............. 6.46 232,000,000
Landesbank Baden-
Wurttemberg
280,000 7.37%, 5/30/01 .............. 7.37 280,000,000
Landesbank-Hessen-
Thueringen
65,000 5.92%, 9/29/00 .............. 5.98 64,990,809
165,000 7.14%, 5/08/01 .............. 7.18 164,990,038
Lloyds Bank Plc
62,000 7.29%, 5/16/01 .............. 7.30 61,994,885
Merita-Nordbanken Plc
115,000 6.71%, 9/28/00 .............. 6.71 115,000,000
National Westminster
Bank
105,000 5.67%, 7/05/00 .............. 5.68 104,999,559
25,000 7.21%, 3/08/01 .............. 7.20 25,001,642
Nordeutsche
Landesbank
125,000 6.20%, 12/01/00 ............. 6.27 124,965,041
Rabo Bank
35,000 6.16%, 12/14/00 ............. 6.20 34,993,927
65,000 6.68%, 2/12/01 .............. 6.71 64,986,635
77,000 7.29%, 5/16/01 .............. 7.30 76,993,647
Royal Bank of Canada
75,000 5.86%, 8/09/00 .............. 5.90 74,996,934
Royal Bank of Scotland
100,000 6.63%, 8/31/00 .............. 6.63 100,000,000
Southtrust Bank NA
60,000 6.66%, 7/17/00 .............. 6.66 60,000,000
111,000 6.73%, 9/15/00 .............. 6.73 111,000,000
U.S. Bank NA FRN
100,000 6.67%, 8/28/00 .............. 6.67 100,000,000
Wachovia Bank
60,000 5.95%, 9/11/00 .............. 5.95 60,000,000
--------------
Total Certificates of
Deposit (amortized cost
$2,092,887,010) ............. 2,092,887,010
--------------
U.S. GOVERNMENT
AGENCY
OBLIGATIONS-15.6%
Aid Housing Guaranty
Project Portugal FRN
10,313 6.54%, 12/01/16 ............. 6.54 10,312,500
Federal Home Loan
Bank
133,500 6.40%, 2/09/01 MTN .......... 6.42 133,481,373
291,000 6.56%, 10/06/00 FRN ......... 6.63 290,947,240
300,000 6.63%, 10/16/00 FRN (c) ..... 6.73 299,910,207
3
<PAGE>
STATEMENT OF NET ASSETS (continued) Alliance Capital Reserves
================================================================================
Principal
Amount
(000) Security (a) Yield Value
--------------------------------------------------------------------------------
Federal Home Loan
Mortgage Corp. MTN
$ 125,000 5.99%, 12/06/00 ............. 6.10% $ 124,914,201
Federal National
Mortgage Assn. MTN
140,000 6.63%, 3/01/01 .............. 6.64 139,994,408
210,000 7.25%, 5/25/01 .............. 7.25 210,000,000
Student Loan
Marketing Assn. FRN
378,000 6.54%, 10/12/00 ............. 6.65 377,885,655
--------------
Total U.S. Government
Agency Obligations
(amortized cost
$1,587,445,584) ............. 1,587,445,584
--------------
CORPORATE
OBLIGATIONS-13.5%
Beta Finance Corp.
MTN
122,000 7.30%, 5/15/01 (b) .......... 7.30 122,000,000
Centauri Corp.
USA, Inc. FRN
163,000 6.80%, 9/08/00 (b) .......... 6.80 163,000,000
Dorada Finance, Inc.
MTN
27,000 7.44%, 6/08/01 (b) .......... 7.44 27,000,000
160,000 7.45%, 6/15/01 (b) .......... 7.45 160,000,000
Hartford Life Insurance
Co. Funding Agreement
FRN
50,000 6.67%, 9/01/00 (d) .......... 6.67 50,000,000
Merrill Lynch & Co.,
Inc. MTN
237,000 6.63%, 4/12/01 .............. 6.62 236,981,393
Metlife Funding
Agreement FRN WI
150,000 6.70%, 4/02/01 .............. 6.70 150,000,000
Prudential of America
Insurance Co. Funding
Agreement FRN
69,000 6.65%, 11/30/00 ............. 6.65 69,000,000
Sigma Finance, Inc.
MTN
150,000 6.80%, 7/25/00 (b) .......... 6.80 150,000,000
Toyota Motor Credit
Corp. FRN
136,000 6.72%, 9/21/00 .............. 6.72 136,000,000
Travelers Life Funding
Agreement FRN
50,000 6.66%, 11/10/00 (d) ........ 6.66 50,000,000
10,000 6.70%, 7/21/00 (d) .......... 6.70 10,000,000
50,000 6.71%, 8/03/00 (d) .......... 6.71 50,000,000
--------------
Total Corporate
Obligations
(amortized cost
$1,373,981,393) ............. 1,373,981,393
--------------
TIME DEPOSITS-4.1%
Bank of Tokyo-
Mitsubishi
150,000 6.94%, 7/05/00 .............. 6.94 150,000,000
Suntrust Bank
114,000 7.00%, 7/05/00 .............. 7.00 114,000,000
Toronto Dominion
149,300 7.06%, 7/05/00 .............. 7.06 149,300,000
--------------
Total Time Deposits
(amortized cost
$413,300,000) ............... 413,300,000
--------------
BANK
OBLIGATIONS-2.1%
American Express
Centurion Bank MTN
83,000 6.66%, 3/07/01 .............. 6.66 83,000,000
Lasalle National
Bank NA
50,000 6.00%, 8/15/00 .............. 6.00 50,000,000
50,000 6.09%, 8/28/00 .............. 6.09 50,000,000
30,000 6.50%, 10/30/00 ............. 6.50 30,000,000
--------------
Total Bank Obligations
(amortized cost
$213,000,000) ............... 213,000,000
--------------
4
<PAGE>
Alliance Capital Reserves
================================================================================
Value
--------------------------------------------------------------------------------
TOTAL INVESTMENTS-100.4%
(amortized cost
$10,218,965,290) ........................ $ 10,218,965,290
Other assets less
liabilities-(0.4%) ...................... (36,616,938)
----------------
NET ASSETS-100%
(offering and redemption
price of $1.00 per share;
10,183,051,520 shares
outstanding) ............................ $ 10,182,348,352
================
--------------------------------------------------------------------------------
(a) All securities either mature or their interest rate changes in 397 days or
less.
(b) 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. At June 30, 2000, these securities amounted to $2,160,666,415,
representing 21.2% of net assets.
(c) Security, or a portion thereof, with an aggregate market value of
$299,910,207 has been segregated to collateralize when issued securities.
(d) Funding Agreements are illiquid securities subject to restrictions as to
resale. These securities amounted to $160,000,000, representing 1.6% of
net assets (see Note A).
Glossary of Terms:
FRN - Floating Rate Note
MTN - Medium Term Note
WI - When Issued
See notes to financial statements.
5
<PAGE>
STATEMENT OF OPERATIONS
Year Ended June 30, 2000 Alliance Capital Reserves
================================================================================
<TABLE>
<S> <C> <C>
INVESTMENT INCOME
Interest............................................................. $ 682,328,375
EXPENSES
Advisory fee (Note B)................................................ $ 53,197,833
Distribution assistance and administrative service (Note C).......... 48,564,400
Transfer agency (Note B)............................................. 10,075,718
Registration fees.................................................... 1,568,349
Printing............................................................. 1,458,301
Custodian fees....................................................... 974,330
Audit and legal fees................................................. 160,109
Trustees' fees....................................................... 27,083
Miscellaneous........................................................ 80,176
--------------
Total expenses....................................................... 116,106,299
--------------
Net investment income................................................ 566,222,076
REALIZED GAIN ON INVESTMENTS
Net realized gain on investment transactions......................... 17,630
--------------
NET INCREASE IN NET ASSETS FROM OPERATIONS.............................. $ 566,239,706
==============
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
================================================================================
<TABLE>
<CAPTION>
Year Ended Year Ended
June 30, 2000 June 30, 1999
---------------- ----------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income................................................ $ 566,222,076 $ 402,288,048
Net realized gain (loss) on investment transactions.................. 17,630 (2,661)
---------------- ----------------
Net increase in net assets from operations........................... 566,239,706 402,285,387
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income................................................ (566,222,076) (402,288,048)
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
Net increase (decrease) (Note E)..................................... (95,339,691) 2,263,106,082
---------------- ----------------
Total increase (decrease)............................................ (95,322,061) 2,263,103,421
NET ASSETS
Beginning of period.................................................. 10,277,670,413 8,014,566,992
---------------- ----------------
End of period........................................................ $ 10,182,348,352 $ 10,277,670,413
================ ================
</TABLE>
--------------------------------------------------------------------------------
See notes to financial statements.
6
<PAGE>
NOTES TO FINANCIAL STATEMENTS
June 30, 2000 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 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 accounting principles
generally accepted in the United States, 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. Certain illiquid securities containing
unconditional puts at par value are also valued at amortized cost.
2. Taxes
It is the Portfolio's policy to meet 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 any, to its
shareholders. Therefore, no provisions for federal income or excise taxes are
required.
3. Dividends
The Portfolio declares dividends daily from net investment income 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% on the first $1.25 billion of average daily net
assets; .49% on the next $.25 billion; .48% on the next $.25 billion; .47% on
the next $.25 billion; .46% on the next $1 billion; and .45% in excess of $3
billion. The Adviser has agreed, pursuant to the advisory agreement, 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, 2000.
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 $4,959,923 for the year ended June 30, 2000.
For the year ended June 30, 2000, the Fund's expenses were reduced by $82,078
under an expense offset arrangement with Alliance Fund Services, Inc.
--------------------------------------------------------------------------------
NOTE C: Distribution Assistance and Administrative Services Plan
Under this Plan, the Portfolio pays Alliance Fund Distributors, Inc. (the
"Distributor"), a wholly-owned subsidiary of the Adviser, a distribution fee at
the annual rate of .25% of the average daily value of the Portfolio's net
assets. The Plan provides that the Distributor will use such payments in their
entirety for distribution assistance and promotional activities. For the year
ended June 30, 2000, the distribution fee amounted to $29,026,574. In addition,
the Portfolio may reimburse certain broker-dealers for administrative costs
incurred in connection
7
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(continued) Alliance Capital Reserves
================================================================================
with providing shareholder services, and may reimburse the Adviser for
accounting and bookkeeping, and legal and compliance support. For the year ended
June 30, 2000, such payments by the Portfolio amounted to $19,537,826, a
substantial portion of which was paid to the Adviser and its affiliates.
--------------------------------------------------------------------------------
NOTE D: Investment Transactions
At June 30, 2000, the cost of investments for federal income tax purposes was
the same as the cost for financial reporting purposes. At June 30, 2000, the
Portfolio had a capital loss carryforward of $703,168, of which $69,582 expires
in 2001, $49,939 expires in 2002, $464,313 expires in 2003, $106,987 expires in
2004, $887 expires in 2005, $2,275 expires in 2006 and $9,185 expires in the
year 2007. To the extent that any net capital loss carryforward is used to
offset future capital gains, it is probable that these gains will not be
distributed to shareholders. The Portfolio utilized $16,413 of capital loss
carryforward in the current year.
--------------------------------------------------------------------------------
NOTE E: Transactions in Shares of Beneficial Interest
An unlimited number of shares ($.001 par value) are authorized. At June 30,
2000, capital paid-in aggregated $10,183,051,520. Transactions, all at $1.00 per
share, were as follows:
Year Ended Year Ended
June 30, June 30,
2000 1999
---------------- ----------------
Shares sold................................. 19,380,248,335 14,536,904,651
Shares issued on reinvestments of dividends. 566,222,076 402,288,048
Shares redeemed............................. (20,041,810,102) (12,676,086,617)
--------------- ---------------
Net increase (decrease)..................... (95,339,691) 2,263,106,082
=============== ===============
8
<PAGE>
FINANCIAL HIGHLIGHTS Alliance Capital Reserves
================================================================================
Selected Data For A Share Of Beneficial Interest Outstanding Throughout Each
Period
<TABLE>
<CAPTION>
Year Ended June 30,
-------------------------------------------------------------------------
2000 1999 1998 1997 1996
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ............... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
----------- ----------- ----------- ----------- -----------
Income from Investment Operations
Net investment income .............................. .049 .043 .047 .045 .047
----------- ----------- ----------- ----------- -----------
Less: Dividends
Dividends from net investment income ............ (.049) (.043) (.047) (.045) (.047)
----------- ----------- ----------- ----------- -----------
Net asset value, end of period ..................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
=========== =========== =========== =========== ===========
Total Return
Total investment return based on net asset value (a) 4.97% 4.40% 4.83% 4.63% 4.82%
Ratios/Supplemental Data
Net assets, end of period (in millions) ............ $ 10,182 $ 10,278 $ 8,015 $ 5,733 $ 4,804
Ratios to average net assets of:
Expenses, net of waivers and reimbursements ..... 1.00% .99% 1.00% 1.00% 1.00%
Expenses, before waivers and reimbursements ..... 1.00% .99% 1.00% 1.00% 1.00%
Net investment income ........................... 4.88% 4.29% 4.71% 4.53% 4.69%
</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 period. Total investment return calculated
for a period of less than one year is not annualized.
9
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS Alliance Capital Reserves
================================================================================
To the Board of Trustees and Shareholders of
Alliance Capital Reserves Portfolio
In our opinion, the accompanying statement of net assets and the related
statements of operations and of changes in net assets and the financial
highlights present fairly, in all material respects, the financial position of
Alliance Capital Reserves Portfolio (the "Fund") at June 30, 2000, and the
results of its operations, the changes in its net assets and the financial
highlights for the year then ended, in conformity with accounting principles
generally accepted in the United States. These financial statements and
financial highlights (hereafter referred to as "financial statements") are the
responsibility of the Fund's management; our responsibility is to express an
opinion on these financial statements based on our audit. We conducted our audit
of these financial statements in accordance with auditing standards generally
accepted in the United States, which require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audit, which included confirmation of securities at June 30, 2000, by
correspondence with the custodian and brokers, provides a reasonable basis for
the opinion expressed above. The financial statements for the year ended June
30, 1999, including the financial highlights for each of the four years in the
period then ended, were audited by other independent accountants whose report
dated July 23, 1999, expressed an unqualified opinion on those financial
statements.
PricewaterhouseCoopers LLP
New York, New York
July 28, 2000
10
<PAGE>
Alliance Capital Reserves
================================================================================
Alliance Capital Reserves
1345 Avenue of the Americas
New York, NY 10105
Toll-free 1(800)221-5672
TRUSTEES
Dave H. Williams, Chairman
John D. Carifa
Sam Y. Cross (1)
Charles H.P. Duell (1)
William H. Foulk, Jr. (1)
David K. Storrs (1)
Shelby White (1)
OFFICERS
Dave H. Willliams, Chairman
Ronald M. Whitehill, President
Kathleen A. Corbet, Senior Vice President
Andrew M. Aran, Senior Vice President
Drew A. Biegel, Senior Vice President
John R. Bonczek, Senior Vice President
Doris T. Ciliberti, Senior Vice President
Robert I. Kurzweil, Senior Vice President
Wayne D. Lyski, Senior Vice President
Patricia Ittner, Senior Vice President
Raymond J. Papera, Senior Vice President
Kenneth T. Carty, Vice President
John F. Chiodi, Jr., Vice President
Maria R. Cona, Vice President
John Dona, Vice President
William J. Fagan, Vice President
Linda D. Kelley, Vice President
Joseph R. LaSpina, Vice President
Edmund P. Bergan, Jr., Secretary
Mark D. Gersten, Treasurer and
Chief Financial Officer
Vincent S. Noto, Controller
CUSTODIAN
State Street Bank and Trust Company
P.O. Box 1912
Boston, MA 02105
DISTRIBUTOR
Alliance Fund Distributors, Inc.
1345 Avenue of the Americas
New York, NY 10105
TRANSFER AGENT
Alliance Fund Services
P.O. Box 1520
Secaucus, NJ 07096-1520
Toll-Free 1-(800) 221-5672
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, NY 10036
LEGAL COUNSEL
Seward & Kissel LLP
One Battery Park Plaza
New York, NY 10004
--------------------------------------------------------------------------------
(1) Members of the Audit Committee.
11
<PAGE>
---------------
BULK RATE
U.S. POSTAGE
PAID
New York, NY
Permit No. 7131
---------------
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 Municipal Trust, call
on a touch-tone telephone toll-free (800) 251-0539 and press the following
sequence of keys:
- - - - - - -
* * 1 2 3 9 #
- - - - - - -
For non-touch-tone telephones, call toll-free (800) 221-9513
--------------------------------------------------------------------------------
Alliance Capital [LOGO](R)
(R) These registered service marks used under license from the owner, Alliance
Capital Management L.P.
ACRAR600
