ALLIANCE TECHNOLOGY FUND
ANNUAL REPORT
NOVEMBER 30, 1998
ALLIANCE CAPITAL
LETTER TO SHAREHOLDERS ALLIANCE TECHNOLOGY FUND
_______________________________________________________________________________
January 25, 1999
Dear Shareholder:
We are pleased to provide an update of the Alliance Technology Fund's
performance and investment activity for the annual reporting period ended
November 30, 1998.
INVESTMENT RESULTS
As you can see from the following table, Alliance Technology Fund has
outperformed the broad U.S. stock market, as measured by the Standard & Poor's
500 Stock Index (S&P 500) for the twelve months ended November 30, 1998.
However, for the same period your Fund underperformed the overall technology
sector, as measured by the Pacific Stock Exchange (PSE) High Technology Index,
as did its peer group of funds, as represented by the Lipper Science and
Technology Fund Index (Lipper Index).
1998 was a year of high volatility and uncertainty. In the last twelve months,
the market has experienced a dramatic correction only to see an even stronger
rally which has continued into 1999. As such, your Fund's calendar 1998 results
are worth highlighting.
Alliance Technology Fund's consistent style of focusing on quality and
long-term fundamentals has been rewarded during this unique time by preserving
capital while still being positioned to participate fully in the market's
recent recovery. For the twelve months ending December 31, 1998, Alliance
Technology Fund's Class A Shares have appreciated 63.14%. This performance
compares quite favorably to the returns of the S&P 500, the PSE High Technology
Index and the Lipper Index, which appreciated 28.74%, 54.6% and 46.9%,
respectively, for the same period.
INVESTMENT RESULTS*
Periods Ended November 30, 1998
TOTAL RETURNS
6 MONTHS 12 MONTHS
---------- ----------
ALLIANCE TECHNOLOGY FUND
Class A 13.46% 27.36%
Class B 13.03% 26.44%
Class C 13.03% 26.44%
S&P 500 7.48% 23.68%
PSE HIGH TECHNOLOGY INDEX 19.51% 30.78%
LIPPER SCIENCE AND TECHNOLOGY FUND INDEX 13.98% 20.55%
* THE FUND'S INVESTMENT RESULTS REPRESENT TOTAL RETURNS AND ARE BASED ON THE
NET ASSET VALUE AS OF NOVEMBER 30, 1998. ALL FEES AND EXPENSES RELATED TO THE
OPERATION OF THE FUND HAVE BEEN DEDUCTED, BUT NO ADJUSTMENT HAS BEEN MADE FOR
SALES CHARGES THAT MAY APPLY WHEN SHARES ARE PURCHASED OR REDEEMED. TOTAL
RETURNS FOR ADVISOR CLASS SHARES WILL DIFFER DUE TO DIFFERENT EXPENSES
ASSOCIATED WITH THAT CLASS. RETURNS FOR THE FUND INCLUDE THE REINVESTMENT OF
ANY DISTRIBUTIONS PAID DURING THE PERIOD. PAST PERFORMANCE IS NO GUARANTEE OF
FUTURE RESULTS.
THE S&P 500 IS AN UNMANAGED INDEX OF 500 U.S. COMPANIES. THE PSE HIGH TECH
INDEX IS A PRICE-WEIGHTED, BROAD-BASED INDEX, REPRESENTING 100 LISTED AND
OVER-THE-COUNTER U.S. STOCKS DESIGNED TO MIRROR THE U.S. TECHNOLOGY SECTOR. THE
PSE HIGH TECHNOLOGY INDEX IS DESIGNED TO REPRESENT THE ENTIRE U.S. TECHNOLOGY
AND SCIENCE SECTOR, INCLUDING SUCH INDUSTRY GROUPS AS COMPUTER SOFTWARE
PRODUCTS, INFORMATION PROCESSING SERVICES, MEDICAL TECHNOLOGY, BIOTECHNOLOGY,
AMONG OTHERS. THE LIPPER SCIENCE AND TECHNOLOGY FUND INDEX IS AN
EQUALLY-WEIGHTED PERFORMANCE INDEX, ADJUSTED FOR CAPITAL GAINS DISTRIBUTIONS
AND INCOME DIVIDENDS, OF THE LARGEST QUALIFYING FUNDS THAT HAVE A SCIENCE AND
TECHNOLOGY INVESTMENT OBJECTIVE (ACCORDING TO LIPPER, THIS INVESTMENT OBJECTIVE
INCLUDES THOSE FUNDS THAT INVEST AT LEAST 65% OF THEIR EQUITY PORTFOLIOS IN
SCIENCE AND TECHNOLOGY STOCKS). THESE FUNDS HAVE GENERALLY SIMILAR INVESTMENT
OBJECTIVES TO YOUR FUND, ALTHOUGH INVESTMENT POLICIES FOR THE VARIOUS FUNDS MAY
DIFFER. FOR THE SIX- AND 12-MONTH PERIODS ENDED NOVEMBER 30, 1998, THE LIPPER
INDEX CONSISTED OF 81 AND 70 FUNDS, RESPECTIVELY. ALL COMPARATIVE INDICES ARE
UNMANAGED AND REFLECT NO FEES OR EXPENSES. AN INVESTOR CANNOT INVEST DIRECTLY
IN AN INDEX.
ADDITIONAL INVESTMENT RESULTS APPEAR ON PAGE 3.
INVESTMENT DISCUSSION
We have commented in the past about how technology product cycles keep getting
shorter, that they are measured in months now rather than years. Lately, it
seems
1
ALLIANCE TECHNOLOGY FUND
_______________________________________________________________________________
the same thing is happening with investor perceptions about technology--sharp
emotional shifts in short periods of time. In the last two quarters, for
example, we have gone from unbridled enthusiasm to rampant pessimism back to
jubilation. If people are not worried about the Y2K issue, problems in Asia,
the government's case vs. Microsoft or the decline in PC prices, they are
enthusiastic about the strong earnings shown in the recent third quarter,
recovery in Asia, a seasonally strong finish to 1998 or the excitement (mania?)
surrounding Internet stocks.
These rapid changes in perception make portfolio management more difficult. It
is always tempting to join the crowd and rush into a stock going up every day
or panic out of one doing the reverse. The brokerage community reinforces the
importance of these short-term swings in their effort to maximize trade
commissions. We have long felt, however, that too much emphasis on short-term
issues and the high portfolio turnover, which is part of that approach, often
leads to a "churn and burn" experience--high transaction costs, more capital
gains taxes and too much emphasis on tactical rather than strategic
considerations.
It is possible that some of this trading myopia may have become a permanent
part of the investment scene, at least with respect to technology stocks. Many
people are chasing these stocks without an understanding of their underlying
business and they show a readiness to unload positions at the slightest sign of
weakness. More involvement with tech stocks amongst the retail community partly
explains this instability. The non professional investor now has access,
through the Internet, to quotes, charts, press releases, conference calls, chat
rooms and even Wall Street analysis. Momentum is the buzzword of this new kind
of investor, electronic day trading is the style and myopic group-think is the
result.
The extraordinary run-up in Internet stocks is the best example of this
phenomenon. This worldwide network, allowing consumers and businesses to
connect to almost anyone or anything, marks a new era in technology and it has
profound implications. The secular growth opportunity for dozens of new
companies in this area is clear. Nevertheless, too much of the activity in
Internet stocks is amongst retail day traders who seem to believe that the
higher a stock goes, the more attractive it becomes.
Some of the Fund's strong performance this year has come from its exposure to
several names in this Internet space and we hope to capitalize further on the
secular business opportunity which lies ahead in this new "dot com" era.
Shorter term, however, we are somewhat concerned about an old fashioned issue
called valuation--some Internet stocks seem ahead of themselves and we are
cautiously waiting for better opportunities than exist today to further build
our positions in this exciting new wave of technology.
Finally, we wish to thank everyone again for their involvement in the Alliance
Technology Fund. The road ahead seems as exciting as ever and we are confident
that our disciplined approach will continue to serve our shareholders well.
Sincerely,
John D. Carifa
President and Chairman
Peter Anastos
Portfolio Manager
Gerald T. Malone
Portfolio Manager
SHARES OF THE FUND ARE NOT DEPOSITS OR OBLIGATIONS OF, GUARANTEED OR ENDORSED
BY, ANY BANK; FURTHER, SUCH SHARES ARE NOT FEDERALLY INSURED BY THE FEDERAL
DEPOSIT INSURANCE CORPORATION, THE FEDERAL RESERVE BOARD, OR ANY OTHER AGENCY.
SHARES OF THE FUND INVOLVE INVESTMENT RISKS, INCLUDING THE POSSIBLE LOSS OF
PRINCIPAL.
2
INVESTMENT OBJECTIVE AND POLICIES ALLIANCE TECHNOLOGY FUND
_______________________________________________________________________________
Alliance Technology Fund is a diversified investment company that emphasizes
growth of capital and invests for capital appreciation, and only incidentally
for current income. The Fund may seek income by writing listed call options.
The Fund invests primarily in securities of companies expected to benefit from
technological advances and improvements. The Fund normally will have
substantially all of its assets invested in equity securities, but it also
invests in debt securities offering appreciation potential. The Fund may invest
in listed and unlisted U.S. and foreign securities and has the flexibility to
invest both in well-known, established companies and in new, unseasoned
companies. The Fund's policy is to invest in any company and industry and in
any type of security with potential for capital appreciation.
INVESTMENT RESULTS
NAV AND SEC AVERAGE ANNUAL TOTAL RETURNS AS OF NOVEMBER 30, 1998
CLASS A SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
------------ ------------
One Year 27.36% 21.94%
Five Years 26.63% 25.54%
Ten Years 22.77% 22.24%
CLASS B SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
------------ ------------
One Year 26.44% 22.44%
Five Years 25.76% 25.76%
Since Inception* 26.88% 26.88%
CLASS C SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
------------ ------------
One Year 26.44% 25.44%
Five Years 25.75% 25.75%
Since Inception* 26.88% 26.88%
SEC AVERAGE ANNUAL TOTAL RETURNS AS OF THE MOST RECENT QUARTER-END (SEPTEMBER
30, 1998)
CLASS A CLASS B CLASS C
------------ ------------ ------------
1 Year -6.70% -7.08% -4.23%
5 Years 21.94% 22.16% 22.15%
10 Years 19.20% n/a n/a
The Fund's investment results represent Average Annual Total Returns. The NAV
and SEC returns reflect reinvestment of dividends and/or capital gains
distributions in additional shares without (NAV) and with (SEC) 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);
and for Class C shares (1% year 1). Returns for Class A shares do not reflect
the imposition of the 1 year 1% contingent deferred sales charge for accounts
over $1,000,000. Total returns for Advisor Class shares will differ due to
different expenses associated with that class.
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: 5/3/93 Class B and Class C.
n/a: not applicable.
3
ALLIANCE TECHNOLOGY FUND
_______________________________________________________________________________
ALLIANCE TECHNOLOGY FUND
GROWTH OF A $10,000 INVESTMENT
11/30/88 TO 11/30/98
$75,000
$64,000
$53,000
$42,000
$31,000
$20,000
$10,000
$9,000
11/30/88 11/30/89 11/30/90 11/30/91 11/30/92 11/30/93 11/30/94
11/30/95 11/30/96 11/30/97 11/30/98
ALLIANCE TECHNOLOGY FUND CLASS A: $74,480
PSE HIGH TECH INDEX: $73,302
S&P 500: $55,667
This chart illustrates the total value of an assumed $10,000 investment in
Alliance Technology Fund Class A shares (from 11/30/88 to 11/30/98) as compared
to the performance of appropriate broad-based indices. The chart reflects the
deduction of the maximum 4.25% sales charge from the initial $10,000 investment
in the Fund and assumes the reinvestment of dividends and capital gains.
Performance for Class B, Class C and Advisor Class shares will vary from the
results shown above due to differences in expenses charged to those classes.
Past performance is not indicative of future results, and is not representative
of future gain or loss in capital value or dividend income.
The unmanaged Standard & Poor's 500 Stock Index (S&P 500) includes 500 U.S.
stocks and is a common measure of the performance of the overall U.S. stock
market.
The unmanaged Pacific Stock Exchange (PSE) High Tech Index measures the
performance of technology stocks traded on the Pacific Stock Exchange.
When comparing Alliance Technology Fund to the indices shown above, you should
note that no charges or expenses are reflected in the performance of the
indices.
Alliance Technology Fund
S&P 500
PSE High Tech Index
4
TEN LARGEST HOLDINGS
NOVEMBER 30, 1998 ALLIANCE TECHNOLOGY FUND
_______________________________________________________________________________
PERCENT OF
COMPANY VALUE NET ASSETS
- -------------------------------------------------------------------------------
Cisco Systems, Inc. $ 173,437,875 6.2%
America Online, Inc. 158,523,150 5.6
Dell Computer Corp. (a) 158,237,675 5.6
Compaq Computer Corp. 125,125,000 4.5
HBO & Co. 115,166,362 4.1
Network Associates, Inc. 111,670,625 4.0
Solectron Corp. 110,136,000 3.9
Sanmina Holdings Corp. 108,175,316 3.8
Intuit, Inc. 95,534,262 3.4
Intel Corp. 93,418,500 3.3
$1,249,424,765 44.4%
MAJOR PORTFOLIO CHANGES
SIX MONTHS ENDED NOVEMBER 30, 1998
_______________________________________________________________________________
SHARES*
- -------------------------------------------------------------------------------
HOLDINGS
PURCHASES BOUGHT 11/30/98
- -------------------------------------------------------------------------------
3Com Corp. 1,135,000 1,135,000
America Online, Inc. 1,810,400 1,810,400
Ceridian Corp. 777,000 777,000
Galileo International, Inc. 692,000 1,319,600
HBO & Co. 3,344,800 4,618,200
Ingram Micro, Inc. Cl.A 498,100 1,624,700
Microsoft Corp. 160,000 640,000
Network Associates, Inc. 1,009,500 2,195,000
Texas Instruments, Inc. 342,600 931,000
Uniphase Corp. 895,300 895,300
HOLDINGS
SALES SOLD 11/30/98
- -------------------------------------------------------------------------------
Alcathel Alsthom Maroc (ADR) 1,260,000 -0-
Ascend Communications, Inc. 1,734,000 -0-
Bay Networks, Inc. 1,391,400 -0-
Cadence Design Systems, Inc. 1,113,800 -0-
CIENA Corp. 500,000 -0-
First Data Corp. 2,000,300 -0-
Fore Systems, Inc. 1,704,400 1,389,700
Nokia Corp. (ADR) 422,000 881,000
PeopleSoft, Inc. 936,700 -0-
Tellabs, Inc. 1,274,000 -0-
(a) Adjusted for market value of call options written.
* Adjusted for stock splits.
5
PORTFOLIO OF INVESTMENTS
NOVEMBER 30, 1998 ALLIANCE TECHNOLOGY FUND
_______________________________________________________________________________
COMPANY SHARES VALUE
- -------------------------------------------------------------------------
COMMON STOCKS-91.5%
TECHNOLOGY-89.3%
COMMUNICATION EQUIPMENT-4.8%
Nokia Corp. (ADR) (a) 881,000 $ 86,338,000
Uniphase Corp. (b) 895,300 48,514,069
------------
134,852,069
COMPUTER HARDWARE-10.8%
Apex PC Solutions, Inc. (b) 840,900 21,758,287
Compaq Computer Corp. 3,850,000 125,125,000
Dell Computer Corp. (b) (c) 2,603,600 158,331,425
------------
305,214,712
COMPUTER PERIPHERALS-2.4%
Lexmark International Group, Inc. Cl.A (b) 885,200 67,607,150
COMPUTER SERVICES-13.3%
Ceridian Corp. (b) 777,000 50,553,562
Computer Sciences Corp. 1,260,200 71,988,925
DST Systems, Inc. (b) 1,125,800 60,933,925
Fiserv, Inc. (b) 1,175,050 51,922,522
Galileo International, Inc. 1,319,600 52,784,000
Gartner Group, Inc. Cl.A (b) 1,181,600 25,552,100
Renaissance Worldwide, Inc. (b) 827,200 5,893,800
SunGard Data Systems, Inc. (b) 1,748,600 55,955,200
------------
375,584,034
COMPUTER SOFTWARE-15.6%
Actuate Software Corp. (b) 33,500 305,688
BEA Systems, Inc. (b) 425,000 5,100,000
HBO & Co. 4,618,200 115,166,362
Health Management Systems, Inc. (b) 793,700 5,456,688
I2 Technologies, Inc. (b) 278,800 6,900,300
Interplay Entertainment Corp.(b) 923,100 1,875,047
Intuit, Inc. (b) 1,650,700 95,534,262
J.D. Edwards & Co. (b) 347,400 12,072,150
Microsoft Corp. (b) 640,000 78,080,000
Network Associates, Inc. (b) 2,195,000 111,670,625
Rational Software Corp. (b) 340,000 7,713,750
------------
439,874,872
NETWORKING SOFTWARE-14.1%
3Com Corp. (b) 1,135,000 43,910,312
America Online, Inc. 1,810,400 158,523,150
Cisco Systems, Inc. (b) 2,301,000 173,437,875
Fore Systems, Inc. (b) 1,389,700 21,019,213
------------
396,890,550
SEMI-CONDUCTOR CAPITAL EQUIPMENT-4.2%
Amkor Technology, Inc. (b) 1,964,000 12,397,750
Applied Materials, Inc. (b) 948,130 36,740,038
KLA-Tencor Corp. (b) 1,116,100 38,017,156
Teradyne, Inc. (b) 977,300 31,334,681
------------
118,489,625
SEMI-CONDUCTOR COMPONENTS-12.5%
Altera Corp. (b) 1,727,000 84,730,937
Intel Corp. 868,000 93,418,500
PMC-Sierra, Inc. (b) 876,500 47,221,438
Texas Instruments, Inc. 931,000 71,105,125
Xilinx, Inc. (b) 1,074,000 54,505,500
------------
350,981,500
MISCELLANEOUS-11.6%
Ingram Micro, Inc. Cl.A (b) 1,624,700 69,049,750
Sanmina Corp. (b) 2,171,650 108,175,316
6
ALLIANCE TECHNOLOGY FUND
_______________________________________________________________________________
SHARES OR
PRINCIPAL
AMOUNT
COMPANY (000) VALUE
- -------------------------------------------------------------------------
Solectron Corp. (b) 1,664,000 $ 110,136,000
Tech Data Corp. (b) 979,000 39,404,750
--------------
326,765,816
UTILITIES-1.8%
TELEPHONE UTILITY-1.8%
MCI WorldCom, Inc. (b) 867,850 51,203,150
CONSUMER SERVICES-0.4%
MISCELLANEOUS-0.4%
Equifax, Inc. 267,000 11,080,500
Total Common Stocks
(cost $1,642,453,471) 2,578,543,978
PRIVATE PLACEMENT-0.0%
Interactive Light Holdings,
Inc. 8.00%, 2/07/99 (d)
(cost $500,000) $ 500 500,000
SHORT-TERM INVESTMENTS-9.3%
COMMERCIAL PAPER-9.3%
American Express Co.
4.90%, 12/15/98 30,000 29,942,833
Ford Motor Credit Corp.
4.88%, 12/02/98 24,100 24,096,733
4.92%, 12/11/98 24,000 23,967,200
5.10%, 12/01/98 34,700 34,700,000
CONTRACTS (E) OR
PRINCIPAL
AMOUNT
COMPANY (000) VALUE
- -------------------------------------------------------------------------
General Electric Capital Corp.
4.85%, 12/07/98 $ 59,700 $ 59,651,743
Prudential Funding
4.78%, 12/04/98 50,000 49,980,083
4.90%, 12/09/98 26,100 26,071,580
5.10%, 12/01/98 13,400 13,400,000
Total Short-Term Investments
(cost $261,810,172) 261,810,172
TOTAL INVESTMENTS-100.8%
(cost $1,904,763,643) 2,840,854,150
OUTSTANDING CALL OPTIONS WRITTEN-0.0%
Dell Computer Corp.
expiring December 1998 @ $70.00
(premiums received $670,477) (1,500) (93,750)
TOTAL INVESTMENTS NET OF OUTSTANDING
CALL OPTIONS WRITTEN -100.8%
(cost $1,904,093,166) 2,840,760,400
Other assets less liabilities-(0.8%) (23,931,716)
NET ASSETS-100% $2,816,828,684
(a) Country of origin--Finland.
(b) Non-income producing security.
(c) Security on which options are written (shares subject to call have an
aggregate market value of $9,121,875).
(d) Illiquid security, valued at fair value (see Notes A & F).
(e) One contract relates to 100 shares.
Glossary:
ADR - American Depositary Receipt.
See notes to financial statements.
7
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 1998 ALLIANCE TECHNOLOGY FUND
_______________________________________________________________________________
ASSETS
Investments in securities, at value (cost $1,904,763,643) $2,840,854,150
Cash 297,398
Receivable for capital stock sold 14,787,674
Receivable for investment securities sold 1,104,963
Interest and dividends receivable 323,523
Total assets 2,857,367,708
LIABILITIES
Outstanding call options written, at value
(premium received $670,477) 93,750
Payable for capital stock redeemed 31,552,675
Advisory fee payable 7,042,072
Distribution fee payable 451,344
Accrued expenses and other liabilities 1,399,183
Total liabilities 40,539,024
NET ASSETS $2,816,828,684
COMPOSITION OF NET ASSETS
Capital stock, at par $ 421,538
Additional paid-in capital 1,664,445,613
Accumulated net realized gain on investment transactions 215,294,299
Net unrealized appreciation of investments
and options written 936,667,234
$2,816,828,684
CALCULATION OF MAXIMUM OFFERING PRICE
CLASS A SHARES
Net asset value and redemption price per share
($824,635,770 / 12,021,759 shares of capital stock
issued and outstanding) $68.60
Sales charge--4.25% of public offering price 3.04
Maximum offering price $71.64
CLASS B SHARES
Net asset value and offering price per share
($1,490,578,099 / 22,669,099 shares of capital stock
issued and outstanding) $65.75
CLASS C SHARES
Net asset value and offering price per share
($271,320,384 / 4,127,242 shares of capital stock
issued and outstanding) $65.74
ADVISOR CLASS SHARES
Net asset value, redemption and offering price per share
($230,294,431 / 3,335,647 shares of capital stock
issued and outstanding) $69.04
See notes to financial statements.
8
STATEMENT OF OPERATIONS
YEAR ENDED NOVEMBER 30, 1998 ALLIANCE TECHNOLOGY FUND
_______________________________________________________________________________
INVESTMENT INCOME
Interest $ 9,210,748
Dividends (net of foreign taxes withheld
of $210,455) 2,889,745 $ 12,100,493
EXPENSES
Advisory fee 24,166,681
Distribution fee - Class A 2,133,012
Distribution fee - Class B 12,466,009
Distribution fee - Class C 2,200,065
Transfer agency 6,242,631
Printing 1,052,902
Custodian 269,935
Registration 185,697
Taxes 179,175
Audit and legal 128,813
Administrative 121,000
Directors' fees 116,000
Miscellaneous 130,646
Total expenses 49,392,566
Less: expense offset arrangement (see Note B) (380,030)
Net expenses 49,012,536
Net investment loss (36,912,043)
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on investment transactions 222,974,632
Net realized loss on written option transactions (116,057)
Net change in unrealized appreciation of:
Investments 400,681,474
Written options 576,727
Net gain on investments 624,116,776
NET INCREASE IN NET ASSETS FROM OPERATIONS $587,204,733
See notes to financial statements.
9
STATEMENT OF CHANGES IN NET ASSETS ALLIANCE TECHNOLOGY FUND
_______________________________________________________________________________
YEAR ENDED YEAR ENDED
NOVEMBER 30, NOVEMBER 30,
1998 1997
--------------- ---------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
Net investment loss $ (36,912,043) $ (23,986,074)
Net realized gain on investments and
written option transactions 222,858,575 14,764,297
Net change in unrealized appreciation
of investments and options 401,258,201 133,346,847
Net increase in net assets from operations 587,204,733 124,125,070
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net realized gain on investments
Class A (6,722,769) (4,879,329)
Class B (11,607,315) (5,671,805)
Class C (2,036,454) (916,491)
Advisor Class (1,788,297) (4,489)
CAPITAL STOCK TRANSACTIONS
Net increase 222,313,081 551,976,958
Total increase 787,362,979 664,629,914
NET ASSETS
Beginning of year 2,029,465,705 1,364,835,791
End of year $2,816,828,684 $2,029,465,705
See notes to financial statements.
10
NOTES TO FINANCIAL STATEMENTS
NOVEMBER 30, 1998 ALLIANCE TECHNOLOGY FUND
_______________________________________________________________________________
NOTE A: SIGNIFICANT ACCOUNTING POLICIES
Alliance Technology 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, Class C and Advisor Class shares. Class A
shares are sold with a front-end sales charge of up to 4.25% for purchases not
exceeding $1,000,000. With respect to purchases of $1,000,000 or more, Class A
shares redeemed within one year of purchase will be subject to a contingent
deferred sales charge of 1%. Class B shares are currently 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 subject to a contingent deferred sales charge of
1% on redemptions made within the first year after purchase. Advisor Class
shares are sold without an initial or contingent deferred sales charge and are
not subject to ongoing distribution expenses. Advisor Class shares are offered
to investors participating in fee-based programs and to certain retirement plan
accounts. All four classes of shares have identical voting, dividend,
liquidation and other rights, except that each class bears different
distribution expenses and has exclusive voting rights with respect to its
distribution plan. The financial statements have been prepared in conformity
with generally accepted accounting principles which require management to make
certain estimates and assumptions that affect the reported amounts of assets
and liabilities in the financial statements and amounts of income and expenses
during the reporting period. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Fund.
1. SECURITY VALUATION
Portfolio securities traded on a national securities exchange or on a foreign
securities exchange (other than foreign securities exchanges whose operations
are similar to those of the United States over-the-counter market) are
generally valued at the last reported sales price or if no sale occurred, at
the mean of the closing bid and asked prices on that day. Readily marketable
securities traded in the over-the-counter market, securities listed on a
foreign securities exchange whose operations are similar to the U.S.
over-the-counter market, and securities listed on a national securities
exchange whose primary market is believed to be over-the-counter, are valued at
the mean of the current bid and asked prices. U.S. government and fixed income
securities which mature in 60 days or less are valued at amortized cost, unless
this method does not represent fair value. Securities for which current market
quotations are not readily available are valued at their fair value as
determined in good faith by, or in accordance with procedures adopted by, the
Board of Directors. Fixed income securities may be valued on the basis of
prices obtained from a pricing service when such prices are believed to reflect
the fair market value of such securities.
2. 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 any, to
shareholders. Therefore, no provisions for federal income or excise taxes are
required.
3. INVESTMENT INCOME AND INVESTMENT TRANSACTIONS
Dividend income is recorded on the ex-dividend date. Interest income is accrued
daily. Investment transactions are accounted for on the date the securities are
purchased or sold. The Fund accretes discounts as adjustments to interest
income. Investment gains and losses are determined on the identified cost basis.
4. INCOME AND EXPENSES
All income earned and expenses incurred by the Fund are borne on a pro-rata
basis by each outstanding class of shares, based on the proportionate interest
in the Fund represented by the net assets of such class, except that the Fund's
Class B and Class C shares bear higher distribution and transfer agent fees
than Class A shares and the Advisor Class shares have no distribution fees.
5. DIVIDENDS AND DISTRIBUTIONS
Dividends and distributions to shareholders are recorded on the ex-dividend
date.
Income dividends and capital gains distributions are determined in accordance
with federal tax regulations and may differ from those determined in accordance
with generally accepted accounting principles. To the extent these differences
are permanent, such amounts are reclassified within the capital accounts based
on their federal
11
NOTES TO FINANCIAL STATEMENTS (CONTINUED) ALLIANCE TECHNOLOGY FUND
_______________________________________________________________________________
tax basis treatment; temporary differences, do not require such
reclassification. During the current fiscal year, permanent differences,
primarily due to net investment losses, resulted in a net decrease in
accumulated net investment loss and a corresponding decrease in additional paid
in capital. This reclassification had no effect on net assets.
NOTE B: ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under the terms of an investment advisory agreement, the Fund pays Alliance
Capital Management L.P. (the "Adviser"), an advisory fee at a quarterly rate
equal to .25% (approximately 1% on an annual basis) of the net assets of the
Fund valued on the last business day of the previous quarter.
Pursuant to the advisory agreement, the Fund paid $121,000 to the Adviser
representing the cost of certain legal and accounting services provided to the
Fund by the Adviser for the year ended November 30, 1998.
The Fund 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 Fund. Such compensation
amounted to $3,983,058 for the year ended November 30, 1998.
In addition, for the year ended November 30, 1998, the Fund's expenses were
reduced by $380,030 under an expense offset arrangement with Alliance Fund
Services. Transfer agency fees reported in the statement of operations exclude
these credits.
Alliance Fund Distributors, Inc. (the "Distributor"), a wholly-owned subsidiary
of the Adviser, serves as the Distributor of the Fund's shares. The Distributor
received front-end sales charges of $288,114 from the sales of Class A shares
and $44,368, $2,709,296 and $122,105 in contingent deferred sales charges
imposed upon redemptions by shareholders of Class A, Class B and Class C
shares, respectively, for the year ended November 30, 1998.
Brokerage commissions paid on investment transactions for the year ended
November 30, 1998 amounted to $1,999,318 of which $4,800 was paid to Donaldson,
Lufkin & Jenrette Securities Corp., an affiliate of the Adviser.
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 .30% of the Fund's average daily net assets attributable to Class
A shares and 1% of the average daily net assets attributable to both Class B
and Class C shares. There is no distribution fee on the Advisor Class shares.
The fees are accrued daily and paid monthly. 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
$36,599,949 and $2,027,794 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.
NOTE D: INVESTMENT TRANSACTIONS
Purchases and sales of investment securities (excluding short-term investments
and U.S. government securities) aggregated $1,566,851,672 and $1,464,543,659,
respectively, for the year ended November 30, 1998. There were no purchases or
sales of U.S. government and government agency obligations for the year ended
November 30, 1998.
12
ALLIANCE TECHNOLOGY FUND
_______________________________________________________________________________
At November 30, 1998, the cost of investments for federal income tax purposes
was $1,908,057,093. Accordingly, gross unrealized appreciation of investments
was $971,345,573 and gross unrealized depreciation of investments was
$38,548,516 resulting in net unrealized appreciation of $932,797,057.
OPTION TRANSACTIONS
For hedging and investment purposes, the Fund purchases and writes call options
listed on national securities exchanges and purchases listed put options,
including put options on market indices.
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 difference between the premium received and the amount paid
on effecting a closing purchase transaction, including brokerage commissions,
is also treated as a realized gain, or if the premium received is less than the
amount paid for the closing purchase transaction, as a realized loss. If a call
option is exercised, the premium received 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 received
reduces the cost basis of the security or currency purchased by the Fund. The
risk involved in writing an option is that, if the option was exercised the
underlying security could then be purchased or sold by the Fund at a
disadvantageous price.
Transactions in options written for the year ended November 30, 1998 were as
follows:
NUMBER OF
CONTRACTS PREMIUMS
--------- ------------
Options outstanding at beginning of the year -0- $ -0-
Options written 8,436 2,669,059
Options terminated in closing purchase transactions (5,036) (1,472,642)
Options expired (1,900) (525,940)
Options outstanding at November 30, 1998 1,500 $ 670,477
13
NOTES TO FINANCIAL STATEMENTS (CONTINUED) ALLIANCE TECHNOLOGY FUND
_______________________________________________________________________________
NOTE E: CAPITAL STOCK
There are 12,000,000,000 shares of $0.01 par value capital stock authorized,
divided into four classes, designated Class A, Class B, Class C and Advisor
Class shares. Each class consists of 3,000,000,000 authorized shares.
Transactions in capital stock were as follows:
<TABLE>
<CAPTION>
SHARES AMOUNT
---------------------------- -------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
NOVEMBER 30, NOVEMBER 30, NOVEMBER 30, NOVEMBER 30,
1998 1997 1998 1997
------------- ------------- ---------------- --------------
<S> <C> <C> <C> <C>
CLASS A
Shares sold 18,339,548 10,236,552 $ 1,112,007,521 $ 542,859,733
Shares issued in reinvestment
of distributions 111,053 78,573 5,938,826 3,946,887
Shares converted from Class B 126,597 125,065 7,557,381 6,591,693
Shares redeemed (18,030,124) (10,594,530) (1,098,740,276) (567,186,149)
Net increase (decrease) 547,074 (154,340) $ 26,763,452 $ (13,787,836)
CLASS B
Shares sold 6,726,295 9,702,206 $ 384,268,932 $ 491,739,865
Shares issued in reinvestment
of distributions 209,384 90,233 10,806,491 4,406,275
Shares converted to Class A (131,650) (129,230) (7,557,381) (6,591,693)
Shares redeemed (4,169,685) (2,910,995) (239,143,056) (148,766,672)
Net increase 2,634,344 6,752,214 $ 148,374,986 $ 340,787,775
CLASS C
Shares sold 12,127,622 4,659,352 $ 691,867,198 $ 244,912,719
Shares issued in reinvestment
of distributions 35,117 11,825 1,812,439 577,411
Shares redeemed (11,539,122) (3,347,816) (662,671,845) (179,818,433)
Net increase 623,617 1,323,361 $ 31,007,792 $ 65,671,697
ADVISOR CLASS
Shares sold 3,484,871 4,033,381 $ 207,978,384 $ 216,794,442
Shares issued in reinvestment
of distributions 32,400 89 1,738,611 4,489
Shares redeemed (3,240,614) (985,537) (193,550,144) (57,493,609)
Net increase 276,657 3,047,933 $ 16,166,851 $ 159,305,322
</TABLE>
NOTE F: ILLIQUID SECURITY
DATE ACQUIRED COST
------------- -----------
Interactive Light Holdings, Inc.
8.00%, 2/07/99 1/27/94 $ 500,000
The security shown above is illiquid and has been valued at fair value in
accordance with the procedures described in Note A. The value of this security
at November 30, 1998 was $500,000, representing .02% of net assets.
14
ALLIANCE TECHNOLOGY FUND
_______________________________________________________________________________
NOTE G: BANK BORROWING
A number of open-end mutual funds managed by the Adviser, including the Fund,
participate in a $750 million revolving credit facility (the "Facility")
intended to provide short-term financing if necessary, subject to certain
restrictions in connection with abnormal redemption activity. Commitment fees
related to the Facility are paid by the participating funds and are included in
the miscellaneous expenses in the statement of operations. The Fund did not
utilize the Facility during the year ended November 30, 1998.
15
FINANCIAL HIGHLIGHTS ALLIANCE TECHNOLOGY FUND
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
CLASS A
---------------------------------------------------------------------
JANUARY 1,
YEAR ENDED NOVEMBER 30, 1994 TO
------------------------------------------------------ NOVEMBER 30,
1998 1997 1996 1995 1994(A)
------------ ------------ ------------ ------------ -------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $54.44 $51.15 $46.64 $31.98 $26.12
INCOME FROM INVESTMENT OPERATIONS
Net investment loss (.68)(b) (.51)(b) (.39)(b) (.30)(b) (.32)
Net realized and unrealized gain on
investment transactions 15.42 4.22 7.28 18.13 6.18
Net increase in net asset value
from operations 14.74 3.71 6.89 17.83 5.86
LESS: DISTRIBUTIONS
Distributions from net realized gains (.58) (.42) (2.38) (3.17) -0-
Net asset value, end of period $68.60 $54.44 $51.15 $46.64 $31.98
TOTAL RETURN
Total investment return based on
net asset value (c) 27.36% 7.32% 16.05% 61.93% 22.43%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $824,636 $624,716 $594,861 $398,262 $202,929
Ratio of expenses to average net assets 1.66%(d) 1.67%(d) 1.74% 1.75% 1.66%(e)
Ratio of net investment loss to
average net assets (1.13)% (.97)% (.87)% (.77)% (1.22)%(e)
Portfolio turnover rate 67% 51% 30% 55% 55%
</TABLE>
See footnote summary on page 19.
16
ALLIANCE TECHNOLOGY FUND
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
CLASS B
-------------------------------------------------------------------------
JANUARY 1,
YEAR ENDED NOVEMBER 30, 1994 TO
---------------------------------------------------------- NOVEMBER 30,
1998 1997 1996 1995 1994(A)
-------------- -------------- ------------ ------------ -------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $52.58 $49.76 $45.76 $31.61 $25.98
INCOME FROM INVESTMENT OPERATIONS
Net investment loss (1.08)(b) (.88)(b) (.70)(b) (.60)(b) (.23)
Net realized and unrealized gain on
investment transactions 14.83 4.12 7.08 17.92 5.86
Net increase in net asset value
from operations 13.75 3.24 6.38 17.32 5.63
LESS: DISTRIBUTIONS
Distributions from net realized gains (.58) (.42) (2.38) (3.17) -0-
Net asset value, end of period $65.75 $52.58 $49.76 $45.76 $31.61
TOTAL RETURN
Total investment return based on net
asset value (c) 26.44% 6.57% 15.20% 60.95% 21.67%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $1,490,578 $1,053,436 $660,921 $277,111 $18,397
Ratio of expenses to average net assets 2.39%(d) 2.38%(d) 2.44% 2.48% 2.43%(e)
Ratio of net investment loss to
average net assets (1.86)% (1.70)% (1.61)% (1.47)% (1.95)%(e)
Portfolio turnover rate 67% 51% 30% 55% 55%
</TABLE>
See footnote summary on page 19.
17
FINANCIAL HIGHLIGHTS (CONTINUED) ALLIANCE TECHNOLOGY FUND
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
CLASS C
---------------------------------------------------------------------
JANUARY 1,
YEAR ENDED NOVEMBER 30, 1994 TO
------------------------------------------------------ NOVEMBER 30,
1998 1997 1996 1995 1994(A)
------------ ------------ ------------ ------------ -------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $52.57 $49.76 $45.77 $31.61 $25.98
INCOME FROM INVESTMENT OPERATIONS
Net investment loss (1.08)(b) (.88)(b) (.70)(b) (.58)(b) (.24)
Net realized and unrealized gain on
investment transactions 14.83 4.11 7.07 17.91 5.87
Net increase in net asset value from
operations 13.75 3.23 6.37 17.33 5.63
LESS: DISTRIBUTIONS
Distributions from net realized gains (.58) (.42) (2.38) (3.17) -0-
Net asset value, end of period $65.74 $52.57 $49.76 $45.77 $31.61
TOTAL RETURN
Total investment return based on net
asset value (c) 26.44% 6.55% 15.17% 60.98% 21.67%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $271,320 $184,194 $108,488 $43,161 $7,470
Ratio of expenses to average net assets 2.40%(d) 2.38%(d) 2.44% 2.48% 2.41%(e)
Ratio of net investment loss to
average net assets (1.87)% (1.70)% (1.60)% (1.47)% (1.94)%(e)
Portfolio turnover rate 67% 51% 30% 55% 55%
</TABLE>
See footnote summary on page 19.
18
ALLIANCE TECHNOLOGY FUND
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
ADVISOR CLASS
---------------------------------------
OCTOBER 2,
1996(F)
YEAR ENDED NOVEMBER 30, TO
-------------------------- NOV. 30,
1998 1997 1996
------------ ------------ -----------
Net asset value, beginning of period $54.63 $51.17 $47.32
INCOME FROM INVESTMENT OPERATIONS
Net investment loss (b) (.50) (.45) (.05)
Net realized and unrealized gain
on investment transactions 15.49 4.33 3.90
Net increase in net asset value
from operations 14.99 3.88 3.85
LESS: DISTRIBUTIONS
Distributions from net realized gains (.58) (.42) -0-
Net asset value, end of period $69.04 $54.63 $51.17
TOTAL RETURN
Total investment return based on
net asset value (c) 27.73% 7.65% 8.14%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(000's omitted) $230,295 $167,120 $566
Ratio of expenses to average
net assets 1.37%(d) 1.39%(d) 1.75%(e)
Ratio of net investment loss to
average net assets (.84)% (.81)% (1.21)%(e)
Portfolio turnover rate 67% 51% 30%
(a) The Fund changed its fiscal year end from December 31 to November 30.
(b) Based on average shares outstanding.
(c) 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. Initial sales charges or contingent
deferred sales charges are not reflected in the calculation of total investment
return. Total investment return calculated for a period of less than one year
is not annualized.
(d) Ratio reflects expenses grossed up for expense offset arrangement with the
Transfer Agent. For the year ended ended November 30, 1998 and the year ended
November 30, 1997, the ratios of expenses to average net assets were 1.65% and
1.66% for Class A shares, 2.38% and 2.36% for Class B shares, 2.38% and 2.37%
for Class C shares and 1.36% and 1.38% for Advisor Class shares, respectively.
(e) Annualized.
(f) Commencement of distribution.
19
REPORT OF ERNST & YOUNG LLP
INDEPENDENT AUDITORS ALLIANCE TECHNOLOGY FUND
_______________________________________________________________________________
TO THE SHAREHOLDERS AND BOARD OF DIRECTORS
ALLIANCE TECHNOLOGY FUND, INC.
We have audited the accompanying statement of assets and liabilities of
Alliance Technology Fund, Inc. (the "Fund"), including the portfolio of
investments, as of November 30, 1998, and the related statement of operations
for the year then ended, the statement of changes in net assets for each of the
two years in the period then ended, and the financial highlights for each of
the periods indicated therein. These financial statements and financial
highlights are the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
November 30, 1998, by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Alliance Technology Fund, Inc. at November 30, 1998, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended, and the financial highlights for each
of the indicated periods, in conformity with generally accepted accounting
principles.
New York, New York
January 4, 1999
FEDERAL INCOME TAX INFORMATION (UNAUDITED)
_______________________________________________________________________________
In order to meet certain requirements of the Internal Revenue Code we are
advising you that $22,154,835 of the capital gain distributions paid by the
Fund during the fiscal year November 30, 1998 are subject to a maximum tax rate
of 20%. Shareholders should not use the above information to prepare their tax
returns. The information necessary to complete your income tax returns will be
included with your Form 1099 DIV which will be sent to you separately in
January 1999.
20
ALLIANCE TECHNOLOGY FUND
_______________________________________________________________________________
BOARD OF DIRECTORS
JOHN D. CARIFA, CHAIRMAN AND PRESIDENT
ROBERT C. ALEXANDER (1)
DAVID H. DIEVLER (1)
DR. CHARLES H. FERGUSON (1)
WILLIAM H. FOULK, JR. (1)
D. JAMES GUZY (1)
PETER J. POWERS (1)
MARSHALL C. TURNER, JR. (1)
OFFICERS
PETER ANASTOS, SENIOR VICE PRESIDENT
KATHLEEN A. CORBET, SENIOR VICE PRESIDENT
THOMAS G. BARDONG, VICE PRESIDENT
GERALD T. MALONE, VICE PRESIDENT
EDMUND P. BERGAN, JR., SECRETARY
MARK D. GERSTEN, TREASURER & CHIEF FINANCIAL OFFICER
VINCENT S. NOTO, CONTROLLER
CUSTODIAN
STATE STREET BANK & TRUST COMPANY
225 Franklin Street
Boston, MA 02110
DISTRIBUTOR
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
TRANSFER AGENT
ALLIANCE FUND SERVICES, INC.
P.O. Box 1520
Secaucus, NJ 07096-1520
Toll-Free 1-(800) 221-5672
INDEPENDENT AUDITORS
ERNST & YOUNG LLP
787 Seventh Avenue
New York, NY 10019
(1) Member of the Audit Committee.
21
THE ALLIANCE FAMILY OF MUTUAL FUNDS
_______________________________________________________________________________
FIXED INCOME
Alliance Bond Fund
U.S. Government Portfolio
Corporate Bond Portfolio
Alliance Global Dollar Government Fund
Alliance Global Strategic Income Trust
Alliance High Yield Fund
Alliance Mortgage Securities Income Fund
Alliance Limited Maturity Government Fund
Alliance Multi-Market Strategy Trust
Alliance North American Government Income Trust
Alliance Short-Term U.S. Government Fund
TAX-FREE INCOME
Alliance Municipal Income Fund
California Portfolio
Insured California Portfolio
Insured National Portfolio
National Portfolio
New York Portfolio
Alliance Municipal Income Fund II
Arizona Portfolio
Florida Portfolio
Massachusetts Portfolio
Michigan Portfolio
Minnesota Portfolio
New Jersey Portfolio
Ohio Portfolio
Pennsylvania Portfolio
Virginia Portfolio
MONEY MARKET
AFD Exchange Reserves
GROWTH
The Alliance Fund
Alliance Global Environment Fund
Alliance Growth Fund
Alliance Premier Growth Fund
Alliance/Regent Sector Opportunity Fund
Select Investors Series - Premier Portfolio
GROWTH & INCOME
Alliance Balanced Shares
Alliance Conservative Investors Fund
Alliance Growth & Income Fund
Alliance Growth Investors Fund
Alliance Real Estate Investment Fund
Alliance Utility Income Fund
AGGRESSIVE GROWTH
Alliance Global Small Cap Fund
Alliance Quasar Fund
Alliance Technology Fund
INTERNATIONAL
Alliance All-Asia Investment Fund
Alliance Greater China '97 Fund
Alliance International Fund
Alliance International Premier Growth Fund
Alliance New Europe Fund
Alliance Worldwide Privatization Fund
INSTITUTIONAL
Premier Growth
Quasar
Real Estate Investment
CLOSED-END FUNDS
Alliance All-Market Advantage Fund
ACM Government Income Fund
ACM Government Opportunity Fund
ACM Government Securities Fund
ACM Government Spectrum Fund
ACM Managed Dollar Income Fund
ACM Managed Income Fund
ACM Municipal Securities Income Fund
Alliance World Dollar Government Fund
Alliance World Dollar Government Fund II
The Austria Fund
The Korean Investment Fund
The Spain Fund
The Southern Africa Fund
CASH MANAGEMENT SERVICES
ACM Institutional Reserves
Government Portfolio
Prime Portfolio
Tax-Free Portfolio
Trust Portfolio
Alliance Capital Reserves
Alliance Government Reserves
Alliance Insured Account
Alliance Money Reserves
Alliance Municipal Trust
California Portfolio
Connecticut Portfolio
Florida Portfolio
General Portfolio
Massachusetts Portfolio
New Jersey Portfolio
New York Portfolio
Virginia Portfolio
Alliance Treasury Reserves
Alliance Money Market Fund
Prime Portfolio
Government Portfolio
General Municipal Portfolio
22
ALLIANCE TECHNOLOGY FUND
1345 Avenue of the Americas
New York, NY 10105
(800) 221-5672
ALLIANCE CAPITAL
THIS REPORT IS INTENDED SOLELY FOR DISTRIBUTION TO CURRENT SHAREHOLDERS
OF THE FUND.
R THESE REGISTERED SERVICE MARKS USED UNDER LICENSE FROM THE OWNER,
ALLIANCE CAPITAL MANAGEMENT L.P.
TECAR
