ALLIANCE GOVERNMENT RESERVES
SEMI-ANNUAL REPORT
DECEMBER 31, 1996
(UNAUDITED)
STATEMENT OF NET ASSETS
DECEMBER 31, 1996 (UNAUDITED) ALLIANCE GOVERNMENT RESERVES
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY# YIELD VALUE
- ------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCIES-70.4%
FEDERAL HOME LOAN MORTGAGE CORP.-21.3%
$ 20,000 2/11/97 5.21% $ 19,881,328
47,000 3/03/97 5.21 46,585,081
44,292 1/02/97 5.22 44,285,578
40,570 1/03/97 5.22 40,558,235
54,000 2/04/97 5.22 53,733,780
18,953 3/05/97 5.22 18,779,864
50,000 3/06/97 5.22 49,536,000
61,400 1/17/97 5.23 61,257,279
75,000 2/28/97 5.23 74,368,646
25,000 2/06/97 5.24 24,869,125
16,000 2/10/97 5.24 15,906,844
33,000 2/14/97 5.24 32,788,653
71,400 1/14/97 5.27 71,264,122
16,141 1/14/97 5.28 16,110,224
50,000 6/12/97 5.28 48,812,000
25,000 3/07/97 5.31 24,760,313
25,000 3/21/97 5.34 24,707,041
3,500 3/25/97 5.34 3,456,909
2,000 3/25/97 5.35 1,975,331
47,150 3/28/97 5.36 46,546,270
50,000 1/22/97 5.42 49,841,917
25,000 1/30/97 5.43 24,890,646
12,000 1/14/97 5.51 11,976,145
------------
806,891,331
FEDERAL NATIONAL MORTGAGE ASSOCIATION-19.6%
46,600 2/24/97 5.20 46,236,520
50,485 2/03/97 5.22 50,243,429
45,500 2/18/97 5.22 45,183,320
20,890 2/19/97 5.22 20,741,577
7,000 4/30/97 5.22 6,879,215
25,000 1/13/97 5.24 24,956,333
16,300 1/17/97 5.24 16,262,039
30,000 2/26/97 5.24 29,755,700
30,000 2/04/97 5.25 29,851,250
25,000 6/12/97 5.27 24,407,125
25,000 6/13/97 5.27 24,403,465
21,950 6/17/97 5.28 21,412,371
46,425 2/19/97 5.29 46,090,727
17,705 2/27/97 5.33 17,555,585
9,000 3/10/97 5.34 8,909,220
16,000 3/11/97 5.34 15,836,240
5,000 3/12/97 5.34 4,948,083
19,785 3/13/97 5.34 19,576,631
25,000 3/17/97 5.34 24,721,875
14,000 3/20/97 5.34 13,838,020
13,000 3/24/97 5.34 12,841,877
3,000 3/27/97 5.35 2,962,104
25,000 3/12/97 5.36 24,739,445
81,000 5.27%, 4/04/97 FRN 5.37 80,990,341
50,000 5.42%, 6/11/97 FRN 5.47 49,989,319
79,500 5.61%, 10/15/97 FRN 5.57 79,507,967
------------
742,839,778
FEDERAL FARM CREDIT BANK-11.5%
25,000 4.95%, 3/03/97 5.00 24,997,571
7,000 2/14/97 5.40 6,953,800
50,000 5.28%, 5/20/97 FRN 5.40 49,977,779
50,000 5.36%, 10/01/97 FRN 5.41 49,988,213
150,000 5.37%, 6/26/97 FRN 5.52 149,965,282
80,000 5.39%, 6/01/98 FRN 5.41 79,979,020
75,000 5.43%, 5/01/98 FRN 5.43 75,000,000
------------
436,861,665
FEDERAL HOME LOAN BANK-7.9%
25,000 4.86%, 2/07/97 4.95 24,997,422
25,000 5.03%, 2/21/97 5.04 24,999,652
25,000 5.09%, 2/13/97 5.10 24,999,706
50,000 5.22%, 3/27/97 FRN 5.32 49,989,081
27,000 5.29%, 2/06/97 5.31 26,999,602
36,630 5.30%, 3/05/97 5.42 36,623,882
60,000 5.31%, 12/04/97 FRN 5.40 59,954,458
50,000 5.48%, 9/24/97 FRN 5.56 49,973,400
------------
298,537,203
STUDENT LOAN MARKETING ASSOCIATION-7.6%
49,300 5.33%, 4/18/97 FRN 5.37 49,294,588
20,000 5.39%, 11/24/97 FRN 5.41 19,995,803
32,500 5.41%, 9/03/97 FRN 5.47 32,487,362
100,000 5.47%, 8/04/97 FRN 5.47 100,000,000
32,000 5.52%, 2/17/98 FRN 5.60 31,972,228
30,880 5.57%, 11/20/97 FRN 5.54 30,887,253
8,300 5.57%, 1/21/98 FRN 5.60 8,297,485
15,000 5.87%, 6/30/97 FRN 5.64 15,004,251
------------
287,938,970
U.S. TREASURY NOTES-2.4%
25,000 6.13%, 5/31/97 5.69 25,041,430
22,000 6.50%, 5/15/97 5.68 22,064,629
20,000 6.75%, 5/31/97 5.77 20,075,291
25,000 6.88%, 3/31/97 5.48 25,081,909
------------
92,263,259
1
STATEMENT OF NET ASSETS (CONTINUED) ALLIANCE GOVERNMENT RESERVES
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY# YIELD VALUE
- ----------------------------------------------------------------------------
AGENCY FOR INTERNATIONAL
DEVELOPMENT HOUSING-0.1%
$ 2,543 5.74%, 1/01/97 FRN 5.74% $ 2,543,295
OVERSEAS PRIVATE INVESTMENT CORP.-0.0%
625 5.92%, 6/10/97 FRN 5.92 625,000
Total U.S. Government and Agencies
(amortized cost $2,668,500,501) 2,668,500,501
REPURCHASE AGREEMENTS-29.2%
FIRST BOSTON CORP.
80,000 5.33%, dated 11/25/96,
due 2/24/97 in the amount of
$81,077,844 (cost $80,000,000;
collateralized by $21,930,000
FNN 317618, value $17,674,660,
$79,457,158 FN 303430,
value $62,913,908 and $3,025,000
FDG 12870, value $1,100,390)
(amortized cost $80,000,000) 5.33 80,000,000
FIRST BOSTON CORP.
80,000 5.43%, dated 12/11/96,
due 1/17/97 in the amount of
$80,446,467 (cost $80,000,000;
collateralized by $83,233,000
FGG 00590, value $81,928,415)
(amortized cost $80,000,000) 5.43 80,000,000
GOLDMAN SACHS & CO.
50,000 5.40%, dated 12/20/96,
due 3/04/97 in the amount of
$50,555,000 (cost $50,000,000;
collateralized by $63,475,075
FN 190750, value $46,088,607
and $5,461,000 FN 67571,
value $5,131,198)
(amortized cost $50,000,000) 5.40 50,000,000
GOLDMAN SACHS & CO.
50,000 5.50%, dated 12/20/96,
due 1/24/97 in the amount of
$50,267,361 (cost $50,000,000;
collateralized by $25,500,000
FN 050955, value $17,970,574,
$31,550,000 FG 00329,
value $23,617,966, $10,027,553
FN 190987, value $7,122,234
and $4,434,000 FN 050659,
value $2,567,083)
(amortized cost $50,000,000) 5.50 50,000,000
GOLDMAN SACHS & CO.
50,000 5.56%, dated 12/23/96,
due 1/27/97 in the amount of
$50,270,278 (cost $50,000,000;
collateralized by $54,053,000
FN 303809, value $51,180,034)
(amortized cost $50,000,000) 5.56 50,000,000
GOLDMAN SACHS & CO.
25,000 6.38%, dated 12/31/96,
due 1/02/97 in the amount of
$25,008,861 (cost $25,000,000;
collateralized by $26,194,000
FMAC, 7.00%, 10/01/26,
value $25,500,000)
(amortized cost $25,000,000) 6.38 25,000,000
J.P. MORGAN & CO.
125,000 5.35%, dated 12/04/96,
due 1/06/97 in the amount of
$125,613,021 (cost $125,000,000;
collateralized by $26,257,000
U.S. Treasury Bond, 6.50%,
5/31/01, value $26,697,742,
$47,620,000 U.S. Treasury Bond,
7.875%, 4/15/98, value $49,633,547,
$50,000,000 U.S. Treasury
Bond, 6.375%, 5/15/99,
value $50,842,541 and $800,000
U.S.Treasury Bond, 6.625%,
3/31/97, value $815,645)
(amortized cost $125,000,000) 5.35 125,000,000
2
ALLIANCE GOVERNMENT RESERVES
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY# YIELD VALUE
- ----------------------------------------------------------------------------
LEHMAN BROTHERS
$ 50,000 5.33%, dated 12/04/96,
due 3/06/97 in the amount of
$50,681,056 (cost $50,000,000;
collateralized by $13,706,716
FN 303211, value $10,517,147,
$29,915,414 FN 050643, value
$12,870,473, $33,958,000
FN 62199, value $27,398,150
and $434,652 FN 356429,
value $425,530)
(amortized cost $50,000,000) 5.33% $ 50,000,000
LEHMAN BROTHERS
75,000 6.90%, dated 12/31/96,
due 1/02/97 in the amount of
$75,028,750 (cost $75,000,000;
collateralized by $19,061,987
FHLMC, 6.50%, 5/01/09,
value $16,156,000, $30,963,004
FHLMC, 9.00%, 11/01/26,
value $32,543,000 and
$29,761,702 FNMA, 6.50%,
5/01/26, value $27,928,000)
(amortized cost $75,000,000) 6.90 75,000,000
MERRILL LYNCH REPO
125,000 5.34%, dated 12/04/96,
due 2/07/97 in the amount of
$126,205,208 (cost $125,000,000;
collateralized by $127,829,000
FN 313080, value $128,123,576)
(amortized cost $125,000,000) 5.34 125,000,000
MORGAN STANLEY GROUP, INC.
120,000 5.35%, dated 12/06/96,
due 2/05/97 in the amount of
$121,087,833 (cost $120,000,000;
collateralized by $125,405,000
FN 303929, value $122,524,973)
(amortized cost $120,000,000) 5.35 120,000,000
MORGAN STANLEY GROUP, INC.
50,000 5.50%, dated 12/19/96,
due 1/21/97 in the amount of
$50,252,083 (cost $50,000,000;
collateralized by $69,202,000
FGE 20064, value $51,289,418)
(amortized cost $50,000,000) 5.50 50,000,000
PAINE WEBBER REPO
50,000 5.60%, dated 12/19/96,
due 1/23/97 in the amount of
$50,272,222 (cost $50,000,000;
collateralized by $30,367,000
FNCL 250461, value $28,378,573
and $29,868,000 FNCL 190830,
value $23,014,997)
(amortized cost $50,000,000) 5.60 50,000,000
PAINE WEBBER REPO
32,000 6.10%, dated 12/31/96,
due 1/09/97 in the amount of
$32,048,800 (cost $32,000,000;
collateralized by $25,035,000
FG 00245, value $21,540,742
and $11,117,000 FG 075163,
value $11,321,644)
(amortized cost $32,000,000) 6.10 32,000,000
SANWA REPO
4,000 6.75%, dated 12/31/96,
due 1/02/97 in the amount of
$4,001,500 (cost $4,000,000;
collateralized by $3,973,000
U.S. Treasury Bond, 5.875%,
7/31/97, value $4,080,000)
(amortized cost $4,000,000) 6.75 4,000,000
STATE STREET BANK AND TRUST CO.
40,000 6.25%, dated 12/31/96,
due 1/02/97 in the amount of
$40,013,889 (cost $40,000,000;
collateralized by $37,880,000
U.S. Treasury Bond, 7.125%,
2/15/23, value $40,800,000)
(amortized cost $40,000,000) 6.25 40,000,000
UBS REPO
50,000 5.42%, dated 12/19/96,
due 2/20/97 in the amount of
$50,474,250 (cost $50,000,000;
collateralized by $58,650,000
FNCL 347628, value $52,338,121)
(amortized cost $50,000,000) 5.42 50,000,000
3
STATEMENT OF NET ASSETS (CONTINUED) ALLIANCE GOVERNMENT RESERVES
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY# YIELD VALUE
- ----------------------------------------------------------------------------
UBS REPO
$ 50,000 5.42%, dated 12/20/96,
due 2/25/97 in the amount of
$50,504,361 (cost $50,000,000;
collateralized by $59,068,000
FN 347625, value $52,114,564)
(amortized cost $50,000,000) 5.42% $ 50,000,000
Total Repurchase Agreements
(amortized cost $1,106,000,000) 1,106,000,000
VALUE
TOTAL INVESTMENTS-99.6%
(amortized cost $3,774,500,501) $3,774,500,501
Other assets less liabilities-0.4% 13,429,191
NET ASSETS-100%
(offering and redemption
price of $1.00 per share;
3,788,826,662 shares outstanding) $3,787,929,692
# All securities either mature or their interest rate changes in one year or
less.
Glossary:
FRN - Floating Rate Note
See notes to financial statements.
4
STATEMENT OF OPERATIONS
SIX MONTHS ENDED DECEMBER 31, 1996 (UNAUDITED) ALLIANCE GOVERNMENT RESERVES
_______________________________________________________________________________
INVESTMENT INCOME
Interest $93,766,534
EXPENSES
Advisory fee (Note B) $8,332,469
Distribution assistance and administrative
service (Note C) 5,496,193
Transfer agency (Note B) 2,882,106
Registration fees 339,787
Custodian fees 192,599
Printing 145,113
Audit and legal fees 23,174
TrusteesO fees 7,914
Miscellaneous 33,011
Total expenses 17,452,366
Net investment income 76,314,168
REALIZED GAIN ON INVESTMENTS
Net realized gain on investments 20,380
NET INCREASE IN NET ASSETS FROM OPERATIONS $76,334,548
See notes to financial statements.
5
STATEMENTS OF CHANGES IN NET ASSETS ALLIANCE GOVERNMENT RESERVES
_______________________________________________________________________________
SIX MONTHS ENDED
DEC. 31, 1996 YEAR ENDED
(UNAUDITED) JUNE 30, 1996
--------------- ---------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
Net investment income $ 76,314,168 $ 135,336,143
Net realized gain on investments 20,380 20,063
Net increase in net assets from operations 76,334,548 135,356,206
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income (76,314,168) (135,336,143)
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
Net increase (Note E) 582,890,187 690,690,859
Total increase 582,910,567 690,710,922
NET ASSETS
Beginning of period 3,205,019,125 2,514,308,203
End of period $3,787,929,692 $3,205,019,125
See notes to financial statements.
6
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1996 (UNAUDITED) ALLIANCE GOVERNMENT RESERVES
_______________________________________________________________________________
NOTE A: SIGNIFICANT ACCOUNTING POLICIES
Alliance Government Reserves (the OTrustO) is an open-end diversified
investment company registered under the Investment Company Act of 1940. The
Trust consists of two portfolios: Alliance Government Reserves (the
OPortfolioO) and Alliance Treasury Reserves. 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 PortfolioOs 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. Security gains and losses are determined on the identified
cost basis. It is the PortfolioOs 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% 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. No reimbursement was required
for the six months ended December 31, 1996. 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 $1,931,380 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 PortfolioOs
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 $4,363,091. 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 $1,133,102 of which $81,500 was paid to the Adviser.
7
NOTES TO FINANCIAL STATEMENTS (CONTINUED) ALLIANCE GOVERNMENT 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 $917,350, of which
$128,701 expires in 2001, $236,674 expires in 2002 and $551,975 expires in 2003.
NOTE E: TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
An unlimited number of shares ($.001 par value) are authorized. At December 31,
1996, capital paid-in aggregated $3,788,826,662. Transactions, all at $1.00 per
share, were as follows:
SIX MONTHS ENDED YEAR ENDED
DEC. 31, 1996 JUNE 30,
(UNAUDITED) 1996
--------------- ----------------
Shares sold 7,735,851,357 13,672,251,535
Shares issued on reinvestments of dividends 76,314,168 135,336,143
Shares redeemed (7,229,275,338) (13,116,896,819)
Net increase 582,890,187 690,690,859
8
ALLIANCE GOVERNMENT 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 .0220 .0461 .0439 .0244 .0256 .0421
Net realized gain on investments -0- -0- -0- -0- .0001 -0-
Net increase in net assets from operations .0220 .0461 .0439 .0244 .0257 .0421
LESS: DISTRIBUTIONS
Dividends from net investment income (.0220) (.0461) (.0439) (.0244) (.0256) (.0421)
Distributions from net realized gains -0- -0- -0- -0- (.0001) -0-
Total dividends and distributions (.0220) (.0461) (.0439) (.0244) (.0257) (.0421)
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
TOTAL RETURNS
Total investment return based on:
net asset value (a) 4.41%(b) 4.72% 4.48% 2.48% 2.60% 4.30%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $3,788 $3,205 $2,514 $2,061 $1,783 $1,572
Ratio to average net assets of:
Expenses, net of waivers and reimbursements 1.00%(b) 1.00% 1.00% 1.00% 1.00% .95%
Expenses, before waivers and reimbursements 1.00%(b) 1.01% 1.05% 1.04% 1.02% .97%
Net investment income (c) 4.37%(b) 4.60% 4.42% 2.46% 2.55% 4.17%
</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.
9
ALLIANCE GOVERNMENT 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
10
ALLIANCE GOVERNMENT RESERVES
1345 Avenue of the Americas, New York, NYE10105
Toll free 1 (800) 221-5672
YIELDS. For current recorded yield information on Alliance
Government Reserves, call on a touch-tone telephone toll-free
(800) 251-0539 and press the following sequence of keys:
1 # 1 # 2 5 #
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 FUNDOS 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.
GOVSR
ALC25PR07
