ALLIANCE TREASURY RESERVES
ALLIANCECAPITAL
SEMI-ANNUAL REPORT
DECEMBER 31, 1995
(UNAUDITED)
STATEMENT OF NET ASSETS
DECEMBER 31, 1995 (UNAUDITED) ALLIANCE TREASURY RESERVES
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY+ YIELD VALUE
- ---------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS-71.7%
U.S. TREASURY BILLS-43.2%
$ 15,000 3/07/96 5.19% $ 14,857,275
13,000 1/25/96 5.32 12,953,937
150,000 2/15/96 5.32 148,998,312
43,000 1/11/96 5.36 42,936,038
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219,745,562
U.S. TREASURY NOTES-28.5%
35,000 4.63%, 2/15/96 5.40 34,958,664
12,000 4.63%, 2/29/96 5.43 11,982,660
10,000 5.13%, 3/31/96 5.49 9,988,145
33,000 5.50%, 4/30/96 5.90 32,954,557
25,000 7.38%, 5/15/96 5.43 25,168,410
10,000 7.75%, 3/31/96 5.73 10,045,562
20,000 7.88%, 2/15/96 5.44 20,052,941
------------
145,150,939
Total U.S. Government Obligations
(amortized cost $364,896,501) 364,896,501
REPURCHASE AGREEMENTS-28.5%
BANKERS TRUST REPO
24,000 5.55%, dated 12/27/95, due 1/03/96
in the amount of $24,025,900
(cost $24,000,000; collateralized by
$23,955,000 U.S. Treasury Note, 7.25%,
11/30/96, value $24,508,079) 5.55 24,000,000
GOLDMAN SACHS & CO.
24,000 5.75%, dated 12/27/95, due 1/03/96
in the amount of $24,026,833
(cost $24,000,000; collateralized by
$17,725,000 U.S. Treasury Bond,
10.375%, 11/15/12, value $24,668,945) 5.75 24,000,000
MERRILL LYNCH REPO
24,000 5.65%, dated 12/27/95, due 1/03/96
in the amount of $24,026,367
(cost $24,000,000; collateralized by
$24,120,000 U.S. Treasury Note,
5.625%, 10/31/97, value $24,513,275) 5.65 24,000,000
J.P. MORGAN & CO.
25,000 5.75%, dated 12/26/95, due 1/02/96
in the amount of $25,027,951
(cost $25,000,000; collateralized by
$24,114,000 U.S. Treasury Note,
7.50%, 12/31/96, value $25,539,707) 5.75% $25,000,000
MORGAN STANLEY REPO
24,000 5.75%, dated 12/27/95, due 1/10/96
in the amount of $24,053,667
(cost $24,000,000; collateralized by
$23,380,000 U.S. Treasury Note,
6.375%, 6/30/97, value $24,508,021) 5.75 24,000,000
STATE STREET BANK AND TRUST CO.
24,000 5.55%, dated 12/28/95, due 1/04/96
in the amount of $24,025,900
(cost $24,000,000; collateralized by
$24,965,000 U.S. Treasury Bill,
5/16/96, value $24,487,856) 5.55 24,000,000
Total Repurchase Agreements
(amortized cost $145,000,000) 145,000,000
TOTAL INVESTMENTS-100.2%
(amortized cost $509,896,501) 509,896,501
Other assets less liabilities-(0.2%) (813,624)
NET ASSETS-100%
(offering and redemption price of
$1.00 per share; 509,042,677
shares outstanding) $509,082,877
+ All securities either mature or their interest rate changes in one year or
less.
See notes to financial statements.
1
STATEMENT OF OPERATIONS
SIX MONTHS ENDED DECEMBER 31, 1995 (UNAUDITED) ALLIANCE TREASURY RESERVES
_______________________________________________________________________________
INVESTMENT INCOME
Interest $14,316,604
EXPENSES
Advisory fee (Note B) $1,269,509
Distribution assistance and administrative
service (Note C) 735,549
Transfer agency 343,420
Registration expense 165,554
Custodian fees 68,952
Printing 33,744
Audit and legal fees 33,182
Trustees' fees 5,950
Amortization of organization expense 4,600
Miscellaneous 5,510
Total expenses 2,665,970
Less: fee waiver (634,755)
2,031,215
Net investment income 12,285,389
REALIZED GAIN ON INVESTMENTS
Net realized gain on investments 44,747
NET INCREASE IN NET ASSETS FROM OPERATIONS $12,330,136
See notes to financial statements.
2
STATEMENT OF CHANGES IN NET ASSETS ALLIANCE TREASURY RESERVES
_______________________________________________________________________________
SIX MONTHS ENDED
DECEMBER 31,1995 YEAR ENDED
(UNAUDITED) JUNE 30,1995
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INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income $ 12,285,389 $ 13,260,896
Net realized gain (loss) on investments 44,747 (1,959)
Net increase in net assets from operations 12,330,136 13,258,937
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income (12,285,389) (13,260,896)
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
Net increase 15,336,247 412,984,016
Total increase 15,380,994 412,982,057
NET ASSETS
Beginning of period 493,701,883 80,719,826
End of period $509,082,877 $493,701,883
See notes to financial statements.
3
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995 (UNAUDITED) ALLIANCE TREASURY RESERVES
_______________________________________________________________________________
NOTE A: SIGNIFICANT ACCOUNTING POLICIES
Alliance Government 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 Government Reserves and Alliance
Treasury 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 Fund.
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. ORGANIZATION EXPENSES
The organization expenses of the Portfolio are being amortized against income
on a straight-line basis through September, 1998.
3. TAXES
It is the Portfolio's policy to comply with the require-ments 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.
4. 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.
5. GENERAL
Interest income is accrued as earned. Security transactions are recorded on a
trade date basis. Security gains and losses are determined on the identified
cost basis. It is the Portfolio's policy to take possession of securities as
collateral under repurchase agreements and to determine on a daily basis that
the value of such securities are sufficient to cover the value of the
repurchase agreements.
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, 1995, the Adviser also
voluntarily agreed to reimburse the Portfolio for expenses exceeding .80 of 1%
of its average daily net assets. 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 $144,489 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 such payments in their
entirety for distribution assistance and promotional activities. For the six
months ended December 31, 1995, the Adviser waived all payments under the Plan.
In addition, the Portfolio may reimburse 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
$100,794 of which $62,000 was paid to the Adviser.
4
ALLIANCE TREASURY RESERVES
_______________________________________________________________________________
NOTE D: INVESTMENT TRANSACTIONS
At December 31, 1995,the cost of 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 $4,547 of which $2,588 expires in
2002 and $1,959 expires in 2003.
NOTE E: TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
An unlimited number of shares ($.001 par value) are authorized. At December 31,
1995, capital paid-in aggregated $509,042,677. Transactions, all at $1.00 per
share, were as follows:
SIX MONTHS ENDED YEAR ENDED
DECEMBER 31,1995 JUNE 30,
(UNAUDITED) 1995
---------------- ---------------
Shares sold 1,376,620,804 2,037,450,750
Shares issued on reinvestments of dividends 12,285,389 13,260,896
Shares redeemed (1,373,569,946) (1,637,727,630)
Net increase 15,336,247 412,984,016
NOTE F: FINANCIAL HIGHLIGHTS
Selected data for a share outstanding throughout each period.
SIX MONTHS SEP. 1,
ENDED YEAR ENDED 1993(A)
DEC. 31,1995 JUNE 30, THROUGH
(UNAUDITED) 1995 JUNE 30,1994
------------- --------- -----------
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income .0244 .0460 .0260
LESS: DISTRIBUTIONS
Dividends from net investment income (.0244) (.0460) (.0260)
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00
TOTAL RETURNS
Total investment return based on:
net asset value (b) 4.91%(c) 4.71% 3.18%(c)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period(in thousands) $509,083 $493,702 $80,720
Ratio to average net assets of:
Expenses, net of waivers and
reimbursements .80%(c) .69% .28%(c)
Expenses, before waivers and
reimbursements 1.05%(c) 1.05% 1.28%(c)
Net investment income (d) 4.84%(c) 4.86% 3.24%(c)
(a) Commencement of operations.
(b) Total investment return in 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 in the last day of the period.
(c) Annualized.
(d) Net of expenses reimbursed or waived by the Adviser.
5
ALLIANCE TREASURY 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 TREASURY RESERVES
1345 Avenue of the Americas, New York, NY 10105
Toll free 1 (800) 221-5672
YIELDS. For current recorded yield information on Alliance
Treasury Reserves, call on a touch-tone telephone toll-free
(800) 251-0539 and press the following sequence of keys:
1 # 1 # 9 0 #
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.
ALC601038
TRSSR
