ALLIANCE
GROWTH & INCOME FUND
SEMI-ANNUAL REPORT
APRIL 30, 1995
(LOGO)
LETTER TO SHAREHOLDERS ALLIANCE GROWTH AND INCOME FUND
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May 24, 1995
Dear Shareholder:
We are pleased to provide you with an update of Alliance Growth and Income
Fund's performance and investment activity during its fiscal semi-annual period
ended April 30, 1995. The following table compares your Fund's total returns
with that of the overall U.S. stock market, represented by the unmanaged S&P
500-stock Index, and with the Lipper Growth & Income Funds Average, which
reflects performance of 329 funds. These funds have generally similar
investment objectives to your Fund, although some funds included in the Lipper
average may have somewhat different investment policies.
Six Months Ended April 30, 1995
Total Return Ending NAV
------------ ----------
ALLIANCE GROWTH AND INCOME FUND
Class A +6.70% $2.35
Class B +6.25% $2.34
Class C +6.25% $2.34
S&P 500 +10.45%
Lipper Growth & Income
Funds Average +7.63%
The Fund's total returns are based on the net asset values of each class of
shares as of April 30; additional investment results appear on page 2.
PERFORMANCE REVIEW
Over the period, your Fund's performance lagged the S&P 500 and the Lipper
Average. However, in the second fiscal quarter the Fund's performance improved:
From November through January, the Fund lagged the S&P by about 3% and the
Lipper Average by over 1%. In the period from February through April, your
Fund's performance trailed the S&P 500 by less than 1% and was slightly better
than the Lipper Average.
NEAR-TERM STRATEGY
We believe the economy is entering the latter stages of its cycle. It is
therefore surprising that inflation has not accelerated to a greater degree. If
the Federal Reserve has actually been able to reduce the peak of the inflation
rate during this cycle then we believe interest rates have farther to fall. In
light of this analysis, we have positioned the Fund in more financial stocks
and defensive stocks that tend to perform well late in the economic cycle.
We view the market as neither undervalued nor overvalued. If inflation
re-accelerates and the Fed is forced to tighten, the implication will be
negative for stocks. If, however, the economy continues to slow, the earnings
multiple of the market will expand and stocks may rise. We are relatively fully
invested and believe that old-fashioned stock picking will be the key to
superior performance notwithstanding the economy's whims.
Thank you for your continued interest and investment in Alliance Growth and
Income Fund. We look forward to updating you on its progress later in the year.
Sincerely,
John D. Carifa
Chairman and President
Paul Rissman
Senior Vice President
1
INVESTMENT RESULTS ALLIANCE GROWTH AND INCOME FUND
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AVERAGE ANNUAL TOTAL RETURN AS OF APRIL 30, 1995
CLASS A SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
One Year +9.74% +5.19%
Five Years +9.85 +8.90
Ten Years +12.71 +12.23
CLASS B SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
One Year +8.82% +4.82%
Since Inception* +7.47 +7.47
CLASS C SHARES
One Year +8.82%
Since Inception* +6.24
The average annual total returns reflect investment of dividends and/or capital
gains distributions in additional shares-with and without the effect of the
4.25% maximum front-end sales charge for Class A or applicable contingent
deferred sales charge for Class B (4% year 1, 3% year 2, 2% year 3, 1% year 4);
Class C shares are not subject to front-end or contingent deferred sales
charges. Past performance does not guarantee future results. Investment return
and principal value will fluctuate so that an investor's shares, when redeemed,
may be worth more or less than their original cost.
*Inception: 2/8/91, Class B; 5/3/93, Class C.
2
TEN LARGEST HOLDINGS
APRIL 30, 1995 (UNAUDITED) ALLIANCE GROWTH AND INCOME FUND
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COMPANY VALUE PERCENT OF NET ASSETS
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Philip Morris Cos., Inc. $ 25,863,563 4.8%
Sprint Corp. 22,852,500 4.2
General Electric Co. 19,846,400 3.7
Eastman Kodak Co. 19,722,500 3.6
Travelers Corp. 18,073,800 3.3
Vodafone Group Plc. (ADR) 15,108,750 2.8
Nokia Corp. (ADR) 14,382,800 2.6
Merck & Co., Inc. 13,895,787 2.6
PepsiCo, Inc. 13,571,831 2.5
U.S. Healthcare, Inc. 13,328,475 2.4
$176,646,406 32.5%
MAJOR PORTFOLIO CHANGES
SIX MONTHS ENDED APRIL 30, 1995 (UNAUDITED)
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SHARES
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PURCHASES BOUGHT HOLDINGS 4/30/95
Colgate-Palmolive Co. 166,600 166,600
Columbia/HCA Healthcare Corp. 284,000 284,000
Eastman Kodak Co. 256,000 343,000
PepsiCo, Inc. 326,050 326,050
Philip Morris Cos., Inc. 226,700 381,750
Pioneer Hi Bred International, Inc. 285,000 285,000
U.S. Healthcare, Inc. 444,050 500,600
Vodafone Group Plc. (ADR) 416,000 474,000
Western Atlas, Inc. 249,000 249,000
YPF, S.A. (ADS) 500,700 500,700
SALES SOLD HOLDINGS 4/30/95
AB Astra Free B Shares 244,500 -0-
Abbott Laboratories 221,800 -0-
Chevron Corp. 172,400 -0-
Ford Motor Co. Series A 4.25% cv. pfd. 76,500 -0-
General Motors Corp. 134,000 -0-
ITT Corp. 77,500 -0-
McDonald's Corp. 258,000 -0-
Motorola, Inc. 122,300 -0-
Royal Dutch Petroleum Co. 89,300 -0-
Shell Transport & Trading Plc. (ADR) 118,500 -0-
3
PORTFOLIO OF INVESTMENTS
APRIL 30, 1995 (UNAUDITED) ALLIANCE GROWTH AND INCOME FUND
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COMPANY SHARES VALUE
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COMMON & PREFERRED STOCKS-89.2%
COMMON STOCKS-83.5%
CONSUMER PRODUCTS & SERVICES-33.4%
BROADCASTING & CABLE-1.9%
Comcast Corp., Cl.A (SPL) 655,948 $10,290,184
DRUGS, HOSPITAL SUPPLIES & MEDICAL SERVICES-12.3%
Columbia/HCA Healthcare Corp. 284,000 11,928,000
Lilly (Eli) & Co. 82,000 6,129,500
Meditrust 299,800 9,143,900
Merck & Co., Inc. 324,100 13,895,787
Schering-Plough Corp. 161,700 12,188,138
U.S. Healthcare, Inc. 500,600 13,328,475
66,613,800
ENTERTAINMENT & LEISURE TIME-5.1%
Eastman Kodak Co. 343,000 19,722,500
Walt Disney Co. 143,200 7,929,700
27,652,200
FOOD, BEVERAGES & TOBACCO-9.2%
PepsiCo, Inc. 326,050 13,571,831
Philip Morris Cos., Inc. 381,750 25,863,563
Pioneer Hi Bred International, Inc. 285,000 10,651,875
50,087,269
HOUSEHOLD PRODUCTS-2.1%
Colgate-Palmolive Co. 166,600 11,703,650
RETAILING-2.8%
Federated Dept. Stores, Inc. 231,600 4,892,550
May Dept. Stores Co. 289,500 10,494,375
15,386,925
181,734,028
BASIC INDUSTRIES-18.2%
CHEMICALS-4.5%
Monsanto Co. 77,250 $6,431,062
Rohm & Haas Co. 216,400 12,578,250
Union Carbide Corp. 170,000 5,440,000
24,449,312
ELECTRICAL EQUIPMENT-3.7%
General Electric Co. 354,400 19,846,400
MACHINERY-2.1%
Allied Signal, Inc. 127,300 5,044,263
Deere & Co. 81,000 6,642,000
11,686,263
OIL & GAS-5.8%
Enron Corp. 260,000 8,840,000
Renaissance Energy, Ltd. 430,000 9,725,287
Snyder Oil Corp. 208,349 2,995,017
YPF, S.A. (ADS) 500,700 10,139,175
31,699,479
OIL SERVICES-2.1%
Western Atlas, Inc.* 249,000 11,205,000
98,886,454
FINANCIAL SERVICES-16.5%
BANKING & CREDIT-8.0%
BankAmerica Corp. 154,000 7,623,000
Chemical Banking Corp. 220,200 9,193,350
First Interstate Bancorp 96,000 7,380,000
Fleet Financial Group, Inc. 165,300 5,413,575
NationsBank Corp. 150,500 7,525,000
Student Loan Marketing Assn. 153,000 6,196,500
43,331,425
BROKERAGE & MONEY MANAGEMENT-2.0%
Edwards (A.G.), Inc. 222,375 5,086,828
Merrill Lynch & Co., Inc. 130,100 5,919,550
11,006,378
4
ALLIANCE GROWTH AND INCOME FUND
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COMPANY SHARES VALUE
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INSURANCE-5.5%
American International Group, Inc. 90,806 $ 9,693,540
NAC Re Corp. 63,842 2,130,727
Travelers Corp. 436,829 18,073,800
29,898,067
MORTGAGE BANKING-1.0%
Federal National Mortgage Assn. 60,300 5,321,475
89,557,345
PUBLIC UTILITIES-8.6%
TELEPHONE-8.6%
MCI Communications Corp. 397,000 8,609,937
Sprint Corp. 692,500 22,852,500
Vodafone Group Plc. (ADR) 474,000 15,108,750
46,571,187
TECHNOLOGY-6.8%
COMMUNICATIONS EQUIPMENT-2.6%
Nokia Corp. (ADR) 350,800 14,382,800
COMPUTER HARDWARE-1.7%
COMPAQ Computer Corp. 165,000 6,270,000
Sun Microsystems, Inc. 78,200 3,108,450
9,378,450
OFFICE EQUIPMENT & SERVICES-0.6%
Emc Corp.* 165,500 3,268,625
SEMI-CONDUCTORS & RELATED-1.9%
Intel Corp. 99,200 10,161,800
37,191,675
Total Common Stocks
(cost $410,464,111) 453,940,689
SHARES OR
PRINCIPAL
AMOUNT
COMPANY (000) VALUE
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PREFERRED STOCKS-5.7%
BASIC INDUSTRIES-3.1%
ALUMINUM-0.4%
Alumax, Inc. cv. pfd. 16,300 $ 1,941,738
OIL & GAS-1.7%
Unocal Corp. $3.50 cv. pfd. (a) 174,200 9,319,700
SURFACE TRANSPORTATION-1.0%
Burlington Northern Inc. cv. pfd. 83,600 5,413,100
16,674,538
TECHNOLOGY-1.7%
SEMI-CONDUCTORS & RELATED-1.7%
National Semiconductor Corp.
6.00% cv. pfd. 112,200 9,312,600
FINANCIAL SERVICES-0.9%
INSURANCE-0.9%
Allstate Corp. 134,200 4,847,975
Total Preferred Stocks
(cost $28,717,338) 30,835,113
Total Common & Preferred Stocks
(cost $439,181,449) 484,775,802
CONVERTIBLE BONDS-3.9%
General Instrument Corp.
5.00%, 6/15/00 $ 7,175 10,708,688
Wendy's International, Inc.
7.00%, 4/01/06 7,215 10,353,525
Total Convertible Bonds
(cost $19,174,763) 21,062,213
5
PORTFOLIO OF INVESTMENTS (CONTINUED) ALLIANCE GROWTH AND INCOME FUND
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PRINCIPAL
AMOUNT
COMPANY (000) VALUE
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COMMERCIAL PAPER-5.9%
Exxon Asset Management
5.92%, 5/04/95 $ 24,500 $24,487,913
Prudential Funding Corp.
5.80%, 5/01/95 7,600 7,600,000
Total Commercial Paper
(amortized cost $32,087,913) 32,087,913
VALUE
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TOTAL INVESTMENTS-99.0%
(cost $490,444,125) $537,925,928
Other assets less liabilities-1.0% 5,700,031
NET ASSETS-100% $543,625,959
* Non-income producing.
(a) This security is exempt from registration under Rule 144A of the
Securities Act of 1933. This security may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At April 30, 1995,
this security amounted to $9,319,700 or 1.7% of net assets.
See notes to financial statements.
6
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1995 (UNAUDITED) ALLIANCE GROWTH AND INCOME FUND
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ASSETS
Investments in securities, at value (cost $490,444,125) $537,925,928
Receivable for investment securities sold 10,969,091
Dividends and interest receivable 676,553
Receivable for capital stock sold 670,471
Prepaid expenses and other assets 44,361
Total assets 550,286,404
LIABILITIES
Due to custodian 4,082,328
Payable for investment securities purchased 1,931,352
Advisory fee payable 235,677
Distribution fee payable 174,304
Dividends and distributions payable 5,407
Accrued expenses and other liabilities 231,377
Total liabilities 6,660,445
NET ASSETS $543,625,959
COMPOSITION OF NET ASSETS
Capital stock, at par $2,316,620
Additional paid-in capital 486,549,916
Distributions in excess of net investment income (317,327)
Accumulated net realized gain 7,595,735
Net unrealized appreciation of investments, foreign currency
transactions and other assets less liabilities 47,481,015
$543,625,959
CALCULATION OF MAXIMUM OFFERING PRICE
CLASS A SHARES
Net asset value and redemption price per share ($410,917,287 /
174,939,275 shares of capital stock issued and outstanding) $2.35
Sales charge-4.25% of public offering price .10
Maximum offering price $2.45
CLASS B SHARES
Net asset value and offering price per share ($108,846,080 /
46,526,314 shares of capital stock issued and outstanding) $2.34
CLASS C SHARES
Net asset value, redemption and offering price per share
($23,862,592 / 10,196,391 Shares of beneficial interest
issued and outstanding) $2.34
See notes to financial statements.
7
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 1995 (UNAUDITED) ALLIANCE GROWTH AND INCOME FUND
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INVESTMENT INCOME
Dividends (net of foreign taxes withheld of $37,208) $5,924,703
Interest 1,957,500 $7,882,203
EXPENSES
Advisory fee 1,381,004
Distribution fee - Class A 393,447
Distribution fee - Class B 506,558
Distribution fee - Class C 99,186
Transfer agency 523,085
Registration 69,145
Printing 68,212
Administrative 64,494
Audit and legal 53,660
Custodian 41,735
Taxes 13,901
Directors' fees 11,195
Miscellaneous 12,687
Total expenses 3,238,309
Net investment income 4,643,894
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on securities transactions 1,603,811
Net realized gain on options and foreign currency transactions 6,963,828
Net change in unrealized appreciation (depreciation) of:
Securities 20,034,023
Options and foreign currency transactions 304,252
Net gain on investments 28,905,914
NET INCREASE IN NET ASSETS FROM OPERATIONS $33,549,808
8
STATEMENT OF CHANGES IN NET ASSETS ALLIANCE GROWTH AND INCOME FUND
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SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1995 OCTOBER 31,
(UNAUDITED) 1994
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income $4,643,894 $11,750,299
Net realized gain on investments and foreign
currency transactions 8,567,639 27,225,934
Net change in unrealized appreciation (depreciation)
of investments and foreign currency transactions 20,338,275 (43,300,936)
Net increase (decrease) in net assets
from operations 33,549,808 (4,324,703)
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A (4,385,713) (9,853,395)
Class B (680,132) (1,317,073)
Class C (138,952) (212,277)
Net realized gain on investments
Class A (20,295,635) (32,185,313)
Class B (5,118,075) (5,690,597)
Class C (954,530) (667,713)
CAPITAL STOCK TRANSACTIONS
Net increase 5,322,508 46,798,254
Total increase (decrease) 7,299,279 (7,452,817)
NET ASSETS
Beginning of period 536,326,680 543,779,497
End of period (including undistributed
net investment income of $243,576 for
the year ended October 31, 1994) $543,625,959 $536,326,680
See notes to financial statements.
9
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1995 (UNAUDITED) ALLIANCE GROWTH AND INCOME FUND
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NOTE A: SIGNIFICANT ACCOUNTING POLICIES
Alliance Growth and Income Fund, Inc. (the 'Fund'), is registered under the
Investment Company Act of 1940, as a diversified, open-end management
investment company. The Fund offers Class A, Class B and Class C shares. Class
A shares are sold with a front-end sales charge of up to 4.25%. Class B shares
are sold with a contingent deferred sales charge which declines from 4% to zero
depending on the period of time the shares are held. Class B shares will
automatically convert to Class A shares eight years after the end of the
calendar month of purchase. Class C shares are sold without an initial or
contingent deferred sales charge. All three classes of shares have identical
voting, dividend, liquidation and other rights and the same terms and
conditions, except that each class bears different distribution expenses and
has exclusive voting rights with respect to its distribution plan. The
following is a summary of significant accounting policies followed by the Fund.
1. SECURITY VALUATION
Portfolio securities traded on national securities exchanges are valued at the
last sales price, or, if no sale occurred, at the mean of the bid and asked
price at the regular close of the New York Stock Exchange. Over-the-counter
securities are valued at the mean of the closing bid and asked price.
Securities for which current market quotations are not readily available
(including investments which are subject to limitations as to their sale) are
valued at fair value as determined in good faith by the Board of Directors. In
determining fair value, consideration is given to cost, operating and other
financial data. The Board of Directors has further determined that the value of
certain portfolio debt securities, other than temporary investments in
short-term securities, be determined by reference to valuations obtained from a
pricing service. Securities which mature in 60 days or less are valued at
amortized cost, which approximates market value. The ability of issuers of debt
securities held by the Fund to meet their obligations may be affected by
economic developments in a specific industry or region.
2. OPTION WRITING
When the Fund writes an option, an amount equal to the premium received by the
Fund is recorded as a liability and is subsequently adjusted to the current
market value of the option written. Premiums received from writing options
which expire unexercised are treated by the Fund on the expiration date as
realized gains. The difference between the premium and the amount paid on
effecting a closing purchase transaction, including brokerage commissions, is
also treated as a realized gain, or if the premium is less than the amount paid
for the closing purchase transaction, as a realized loss. If a call option is
exercised, the premium is added to the proceeds from the sale in determining
whether the Fund has realized a gain or loss. As a writer of options, the Fund
bears the risk of unfavorable changes in the price of the financial instruments
underlying the options.
3. TAXES
It is the Fund'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 applicable, to
shareholders. Therefore, no provisions for federal income or excise taxes are
required.
4. INVESTMENT INCOME AND SECURITY TRANSACTIONS
Dividend income is recorded on the ex-dividend date. Interest income is accrued
daily. Security transactions are accounted for on the date securities are
purchased or sold. Security gains and losses are determined on the identified
cost basis. The Fund accretes discounts and amortizes premiums as adjustments
to interest income.
5. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends and distributions to shareholders are recorded on the ex-dividend
date. Income dividends and capital gains distributions are determined in
accordance with income tax regulations, which may differ from generally
accepted accounting principles.
10
ALLIANCE GROWTH AND INCOME FUND
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NOTE B: ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under the terms of an advisory agreement, the Fund pays its Adviser, Alliance
Capital Management L.P., an advisory fee at an annual rate of 0.625% of the
first $200 million, 0.50% of the next $200 million and 0.45% in excess of $400
million of the average daily net assets of the Fund. Such fee is accrued daily
and paid monthly. The Adviser has agreed, under the terms of the advisory
agreement, to reimburse the Fund to the extent that its aggregate expenses
(exclusive of interest, taxes, brokerage, distribution fees, andextraordinary
expenses) exceed the limits prescribed by any state in which the Fund's shares
are qualified for sale. The Fund believes that the most restrictive expense
ratio limitation imposed by any state is 2.5% of the first $30 million of its
average daily net assets, 2% of the next $70 million of its average daily net
assets and 1.5% of its average daily net assets in excess of $100 million. No
reimbursement was required for the six months ended April 30, 1995. Pursuant to
the advisory agreement, the Fund reimburses the Adviser for the cost of certain
legal and accounting services provided to the Fund by the Adviser. For the six
months ended April 30, 1995 such reimbursement amounted to $64,494.
The Fund has a Services Agreement with Alliance Fund Services, Inc., (a
wholly-owned subsidiary of the Adviser), to provide personnel and facilities to
perform transfer agency services for the Fund. Compensation under this
agreement amounted to $378,677 for the six months ended April 30, 1995.
Alliance Fund Distributors, Inc. (a wholly-owned subsidiary of the Adviser)
serves as the Distributor of the Fund's shares. The Distributor received front
end sales charges of $15,652 from the sale of Class A shares and $157,403 in
contingent deferred sales charges imposed upon redemptions by shareholders of
Class B shares for the six months ended April 30, 1995.
Brokerage commissions paid for the six months ended April 30, 1995 on
securities transactions amounted to $1,180,603 of which none was paid to
affiliated brokers.
NOTE C: DISTRIBUTION SERVICES AGREEMENT
The Fund has adopted a Distribution Services Agreement (the 'Agreement')
pursuant to Rule 12b-1 under the Investment Company Act of 1940. Under the
Agreement, the Fund pays a distribution fee to the Distributor at an annual
rate of up to 0.30% of the Fund's average daily net assets attributable to the
Class A shares and 1% of the average daily net assets attributable to Class B
and Class C shares. The Agreement provides that the Distributor will use such
payments in their entirety for distribution assistance and promotional
activities. The Distributor has incurred expenses in excess of the distribution
costs reimbursed by the Fund in the amount of $2,637,403 and $465,197 for Class
B and Class C shares, respectively; such costs may be recovered from the Fund
in future periods so long as the agreement is in effect. In accordance with the
Agreement, there is no provision for recovery of unreimbursed distribution
costs, incurred by the Distributor, beyond the current fiscal year for Class A
shares. The Agreement also provides that the Adviser may use its own resources
to finance the distribution of the Fund's shares.
11
NOTES TO FINANCIAL STATEMENTS (CONTINUED) ALLIANCE GROWTH AND INCOME FUND
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NOTE D: INVESTMENT TRANSACTIONS
Purchases and sales of investment securities (excluding short-term investments)
aggregated $440,272,497 and $464,733,185, respectively, for the six months
ended
April 30, 1995. There were no purchases or sales of U.S. Government or
government agency obligations for the six months ended April 30, 1995.
1. OPTION TRANSATIONS
For hedging purposes, the Fund purchases and writes (sells) put and call
options on U.S. and foreign government securities and foreign currencies that
are traded on U.S. and foreign securities exchanges and over-the-counter
markets.
The risk associated with purchasing an option is that the Fund pays a premium
whether or not the option is exercised. Additionally, the Fund bears the risk
of loss of premium and change in market value should the counterparty not
perform under the contract. Put and call options purchased are accounted for in
the same manner as portfolio securities. The cost of securities acquired
through the exercise of call options is increased by premiums paid. The
proceeds from securities sold through the exercise of put options are decreased
by the premiums paid.
When the Fund writes an option, the premium received by the Fund is recorded as
a liability and is subsequently adjusted to the current market value of the
option written. Premiums received from writing options which expire unexercised
are recorded by the Fund on the expiration date as realized gains from option
transactions. The differerence between the premium and the amount paid on
effecting a closing purchase transaction, including brokerage commissions, is
also treated as a realized gain, or if the premium is less than the amount paid
for the closing purchase transaction, as a realized loss. If a call option is
exercised, the premium is added to the proceeds from the sale of the underlying
security or currency in determining whether the Fund has realized a gain or
loss. If a put option is exercised, the premium reduces the cost basis of the
security or currency purchased by the Fund. In writing an option, the Fund
bears the market risk of an unfavorable change in the price of the security or
currency underlying the written option. Exercise of an option written by the
Fund could result in the Fund selling or buying a security or currency at a
price different from the current market value.
Transactions in options written for the six months ended April 30, 1995 were as
follows:
NUMBER OF
CONTRACTS PREMIUMS
--------- ----------
Options outstanding at beginning of year 1,850 $ 827,460
Options written -0- -0-
Options terminated in closing purchase transactions (1,090) (575,093)
Options expired (660) (177,769)
Options exercised (100) (74,598)
Options outstanding at April 30, 1995 -0- $ -0-
At April 30, 1995, the cost of securities for federal income tax purposes was
$491,803,619. Accordingly, gross unrealized appreciation on investments was
$53,947,004 and gross unrealized depreciation on investments was $7,824,695,
resulting in net unrealized appreciation of $46,122,309. The Fund may be able
to use up to $5,782,872 of Alliance Convertible Fund's (which was acquired in
1991) capital loss carryforward to offset future realized gains which expires
through 1998.
12
ALLIANCE GROWTH AND INCOME FUND
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NOTE F: CAPITAL STOCK
There are 900,000,000 shares of $0.01 par value capital stock authorized,
divided into three classes, designated Class A, Class B and Class C shares.
Class A consists of 450,000,000 shares, Class B of 225,000,000 and Class C of
225,000,000. Transactions in capital stock were as follows:
SHARES AMOUNT
----------------------------- ----------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
APR. 30,1995 OCT. 31, APR. 30,1995 OCT. 31,
(UNAUDITED) 1994 (UNAUDITED) 1994
------------ ------------ ------------- -------------
CLASS A
Shares sold 4,112,905 11,055,372 $9,133,108 $26,283,857
Shares issued in reinvestment
of dividends and
distributions 8,388,414 12,665,627 17,783,851 29,718,393
Shares redeemed (14,092,344) (23,487,478) (31,403,061) (55,666,083)
Net increase (decrease) (1,591,025) 233,521 $(4,486,102) $336,167
CLASS B
Shares sold 6,603,338 21,500,279 $14,649,796 $50,737,762
Shares issued in reinvestment
of dividends and
distributions 2,389,912 2,587,252 5,039,942 6,044,389
Shares redeemed (6,335,182) (9,744,100) (14,109,955) (22,879,205)
Net increase 2,658,068 14,343,431 $5,579,783 $33,902,946
CLASS C
Shares sold 3,852,057 8,581,936 $8,567,809 $20,240,216
Shares issued in reinvestment
of dividends and
distributions 320,978 245,832 678,811 573,985
Shares redeemed (2,271,230) (3,526,354) (5,017,793) (8,255,060)
Net increase 1,901,805 5,301,414 $4,228,827 $12,559,141
*Commencement of distribution.
13
FINANCIAL HIGHLIGHTS ALLIANCE GROWTH AND INCOME FUND
- -------------------------------------------------------------------------------
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
CLASS A
----------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED OCTOBER 31,
APRIL 30, 1995 ------------------------------------------------------
(UNAUDITED) 1994 1993 1992 1991 1990
-------------- --------- --------- --------- --------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 2.35 $ 2.61 $ 2.48 $ 2.52 $ 2.28 $ 3.02
INCOME FROM INVESTMENT OPERATIONS
Net investment income .02 .06 .06 .06 .07 .09
Net realized and unrealized gain (loss)
on investments .13 (.08) .29 .11 .56 (.30)
Net increase (decrease) in net asset
value from operations .15 (.02) .35 .17 .63 (.21)
LESS: DISTRIBUTIONS
Dividends from net investment income (.03) (.06) (.06) (.06) (.09) (.10)
Distributions from net realized gains (.12) (.18) (.16) (.15) (.30) (.43)
Total dividends and distributions (.15) (.24) (.22) (.21) (.39) (.53)
Net asset value, end of period $ 2.35 $ 2.35 $ 2.61 $ 2.48 $ 2.52 $ 2.28
TOTAL RETURN
Total investment return based
on net asset value (b) 6.70% (.67)% 14.98% 7.23% 31.03% (8.55)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(000's omitted) $410,917 $414,386 $459,372 $417,018 $409,597 $314,670
Ratio of expenses to average net assets 2.00%(c) 1.03% 1.07% 1.09% 1.14% 1.09%
Ratio of net investment income
to average net assets 1.07%(c) 2.36% 2.38% 2.63% 2.74% 3.40%
Portfolio turnover rate 92% 68% 91% 104% 84% 76%
</TABLE>
See footnote summary on page 16.
14
ALLIANCE GROWTH AND INCOME FUND
- -------------------------------------------------------------------------------
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
CLASS B
----------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED OCTOBER 31,
APRIL 30,1995 -------------------------------------------
(UNAUDITED) 1994 1993 1992 1991(A)
-------------- ---------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 2.34 2.60 $ 2.47 $ 2.52 $ 2.40
INCOME FROM INVESTMENT OPERATIONS
Net investment income .01 .04 .05 .04 .04
Net realized and unrealized gain
(loss) on investments .13 (.08) .28 .11 .12
Net increase (decrease) in net asset
value from operations .14 (.04) .33 .15 .16
LESS: DISTRIBUTIONS
Dividends from net investment income (.02) (.04) (.04) (.05) (.04)
Distributions from net realized gains (.12) (.18) (.16) (.15) -0-
Total dividends and distributions $ (.14) (.22) (.20) (.20) (.04)
Net asset value, end of period $ 2.34 $ 2.34 $ 2.60 $ 2.47 $ 2.52
TOTAL RETURN
Total investment return based
on net asset value (b) 6.25% (1.50)% 14.22% 6.22% 6.83%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(000's omitted) $108,846 $102,546 $76,633 $29,656 $10,221
Ratio of expenses to average net assets 1.17%(c) 1.85% 1.90% 1.90% 1.99%
Ratio of net investment income
to average net assets 1.88%(c) 1.56% 1.58% 1.69% 1.67%
Portfolio turnover rate 92% 68% 91% 104% 84%
</TABLE>
See footnote summary on page 16.
15
FINANCIAL HIGHLIGHTS (CONTINUED) ALLIANCE GROWTH AND INCOME FUND
- -------------------------------------------------------------------------------
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
Class C
------------------------------------
SIX MONTHS YEAR MAY 3,
ENDED ENDED 1993(D)
APR. 30,1995 OCT. 31, TO
(UNAUDITED) 1994 OCT.31,1993
------------- -------- -----------
Net asset value, beginning of period $ 2.34 $ 2.60 $ 2.43
INCOME FROM INVESTMENT OPERATIONS
Net investment income .01 .04 .02
Net realized and unrealized gain
on investments .13 (.08) .17
Net increase (decrease) in net asset
value from operations .14 (.04) .19
LESS: DISTRIBUTIONS
Dividends from net investment income (.02) (.04) (.02)
Distributions from net realized gains (.12) (.18) -0-
Total dividends and distributions (.14) (.22) (.02)
Net asset value, end of period $ 2.34 $ 2.34 $ 2.60
TOTAL RETURN
Total investment return based
on net asset value (b) 6.25% (1.50)% 7.85%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $23,863 $19,395 $7,774
Ratio of expenses to average net assets 1.16%(c) 1.84% 1.96%(c)
Ratio of net investment income
to average net assets 1.87%(c) 1.61% 1.45%(c)
Portfolio turnover rate 92% 68% 91%
(a) For the period February 8, 1991 (commencement of distribution) to October
31, 1991.
(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 distribution at net asset value during the period, and redemption
on the last day of the period. Initial sales charge or contingent deferred
sales charge is not reflected in the calculation of total investment return.
Total investment return calculated for a period of less than one year is not
annualized.
(c) Annualized.
(d) Commencement of distribution.
16
BOARD OF DIRECTORS
JOHN D. CARIFA, CHAIRMAN AND PRESIDENT
RUTH BLOCK (1)
DAVID H. DIEVLER
JOHN H. DOBKIN (1)
WILLIAM H. FOULK, JR. (1)
DR. JAMES M. HESTER (1)
CLIFFORD L. MICHEL (1)
ROBERT C. WHITE (1)
OFFICERS
PAUL RISSMAN, SENIOR VICE PRESIDENT
THOMAS BARDONG, VICE PRESIDENT
EDMUND P. BERGAN, JR., SECRETARY
MARK D. GERSTEN, TREASURER & CHIEF FINANCIAL OFFICER
PATRICK J. FARRELL, CONTROLLER
CUSTODIAN
STATE STREET BANK & TRUST COMPANY
225 Franklin Street
Boston, MA 02110
TRANSFER AGENT
ALLIANCE FUND SERVICES, INC.
P.O. Box 1520
Secaucus, NJ 07096-1520
Toll-Free 1-(800) 221-5672
PRINCIPAL UNDERWRITER
ALLIANCE FUND DISTRIBUTORS, INC.
1345 Avenue of the Americas
New York, NY 10105
LEGAL COUNSEL
SEWARD & KISSEL
One Battery Park Plaza
New York, NY 10004
INDEPENDENT ACCOUNTANTS
PRICE WATERHOUSE LLP
1177 Avenue of the Americas
New York, NY 10036
(1) Member of the Audit Committee.
The financial information herein is taken from the records of the Fund
without audit by independent accountants who do not
express an opinion thereon.
17
ALLIANCE GROWTH AND INCOME FUND
1345 Avenue of the Americas
New York, NY 10105
(800) 221-5672
(logo)
Mutual funds without the MysterySM
THIS REPORT IS DISTRIBUTED SOLELY TO SHAREHOLDERS OF THE FUND
AND IS NOT TO BE USED AS SALES LITERATURE.
R THESE REGISTERED SERVICE MARKS USED UNDER LICENSE FROM THE OWNER,
ALLIANCE CAPITAL MANAGEMENT L.P.
GTHSR
