ALLIANCE TECHNOLOGY FUND
SEMI-ANNUAL REPORT
MAY 31, 1999
ALLIANCE CAPITAL
LETTER TO SHAREHOLDERS ALLIANCE TECHNOLOGY FUND
_______________________________________________________________________________
July 27, 1999
Dear Shareholders:
We are pleased to provide an update of the performance and investment activity
for the Alliance Technology Fund (the "Fund") for the semi-annual reporting
period ended May 31, 1999.
INVESTMENT RESULTS
The following table provides your Fund's investment results for the six- and
twelve-month periods ended May 31, 1999. For comparison, we have also included
performance for the S&P 500 Index, a standard measure of the performance of the
overall U.S. stock market, the Pacific Stock Exchange ("PSE") High Tech Index,
a measure of the overall U.S. technology and science sector, and the Lipper
Science and Technology Fund Index (the "Lipper Index"), which is a performance
index of the largest qualifying funds that have a science and technology
investment objective.
As shown, during the six- and twelve-month periods ended May 31, 1999, your
Fund substantially outperformed the S&P 500 Index, but underperformed the PSE
High Tech Index and the Lipper Index.
Despite concerns regarding Y2K spending, a slowing economy and Internet
valuations, technology stocks have continued to outperform the overall market,
although the volatility of the group has increased. Given this increased
volatility, we have chosen to maintain a somewhat conservative approach with
slightly higher cash levels and a limited exposure to the Internet and
companies with a high Y2K risk. While this prudent posture has sacrificed some
relative performance, continually we strive to manage for success over the long
term by investing in leadership companies with strong fundamentals.
INVESTMENT RESULTS*
Periods Ended May 31, 1999
TOTAL RETURNS
6 MONTHS 12 MONTHS
-------- ---------
ALLIANCE TECHNOLOGY FUND
Class A 28.16% 45.41%
Class B 27.70% 44.34%
Class C 27.69% 44.34%
S&P 500 INDEX 12.60% 21.03%
PSE HIGH TECH INDEX 33.98% 60.12%
LIPPER SCIENCE AND TECHNOLOGY
FUND INDEX 30.94% 49.25%
* THE FUND'S INVESTMENT RESULTS REPRESENT TOTAL RETURNS AND ARE BASED ON THE
NET ASSET VALUE AS OF MAY 31, 1999. 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 UNMANAGED S&P 500 INDEX IS COMPRISED OF 500 U.S. COMPANIES AND IS A
COMMON MEASURE OF THE PERFORMANCE OF THE OVERALL U.S. STOCK MARKET. THE
UNMANAGED 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 TECH 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 UNMANAGED 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. AN INVESTOR CANNOT INVEST DIRECTLY
IN AN INDEX.
ADDITIONAL INVESTMENT RESULTS APPEAR ON PAGE 3.
INVESTMENT DISCUSSION
Investing in technology stocks is inherently challenging because things are
constantly changing--the landscape is always unique. That landscape is
currently even more unique than we have seen for some time because of the
1
ALLIANCE TECHNOLOGY FUND
_______________________________________________________________________________
concurrence of two things: the Y2K problem and the spreading repercussions of
the Internet.
The Y2K issue is becoming high drama as the clock ticks down to the millenium,
with everyone speculating on how it will unfold. No one can say for sure, but
we are currently confident the development generally will be fairly smooth.
Most U.S. corporations are entering final testing of their Y2K readiness after
significant preparation and billions of dollars of expenditures to fix the
problem. In our view, there will be isolated breakdowns and irritating errors,
especially with smaller corporations and overseas organizations, but life will
go on when the year 2000 arrives.
Less certain and more concerning to us is the pattern of orders in the second
half of 1999. To test something, you must stabilize it. During the next six
months, most companies will stabilize their information systems by "locking
down," by not ordering new hardware or software. At some point, however,
technology stocks will begin to discount the other side of the valley--the
order recovery next year for all those applications that were deferred in 1999.
It is also worth noting that Y2K is the ultimate nonrecurring problem, at least
in our lifetimes. We need not worry about extra zeros in our computers until
the year 10,000--8,000 years from now.
1999 is also the year when the Internet will move beyond adolescence. More
personal computers, faster download speeds, lower access costs and more content
are all leading to rapid acceptance of this new medium. We believe people are
coming to understand that the Internet is not so much a new technology as it is
a new environment, a transcendent change which will affect how businesses deal
with their customers, suppliers, partners and shareholders. In our opinion, if
the 50-year history of digital technology is any guide, a major change such as
the Internet will create some powerful new companies and equally powerful
investment opportunities.
The challenge in sifting through these new Internet investment possibilities is
to make note of the risks as well. Such risks include very high relative
valuations, competitive consolidation (which creates more losers than winners),
the increasing supply of new competitors going public and the inevitable media
hype, which creates often unrealistic expectations. Unlike the Y2K issue,
however, the advent of the Internet is anything but a virtually nonrecurring
event. In our view, its impact is just beginning and its importance will extend
to almost every company in every industry.
These two issues--Y2K and the Internet--have significant short- and long-term
implications, respectively, but several other considerations are also on the
minds of investors. On the negative side, these include the concern about
rising interest rates, the recent popularity of cyclical stocks (versus growth
stocks) and the fear that tech stocks will be seasonally soft during the
summer. We believe the positive side of the picture is the same as before: the
pace of improvement in digital technology is not slowing down, it is the
underpinning for productivity improvements in economies around the world and
the markets for these products are huge.
As always, we will do our best to navigate these crosscurrents as smoothly as
possible and want to thank our shareholders for their continued support.
Sincerely,
John D. Carifa
President and Chairman
Peter Anastos
Senior Vice President
Gerald T. Malone
Senior Vice President
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 MAY 31, 1999
CLASS A SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
------------ ------------
One Year 45.41% 39.24%
Five Years 31.66% 30.52%
Ten Years 23.02% 22.49%
CLASS B SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
------------ ------------
One Year 44.34% 40.34%
Five Years 30.74% 30.74%
Since Inception* 29.58% 29.58%
CLASS C SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
------------ ------------
One Year 44.34% 43.34%
Five Years 30.73% 30.73%
Since Inception* 29.57% 29.57%
SEC AVERAGE ANNUAL TOTAL RETURNS AS OF THE MOST RECENT QUARTER-END
(MARCH 31, 1999)
CLASS A CLASS B CLASS C
------- ------- -------
1 Year 46.08% 47.46% 50.45%
5 Years 30.77% 30.99% 30.97%
10 Years 24.95% 31.28%* 31.28%*
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.
* Since Inception: 5/3/93 Class B and Class C.
3
TEN LARGEST HOLDINGS
MAY 31, 1999 (UNAUDITED) ALLIANCE TECHNOLOGY FUND
_______________________________________________________________________________
PERCENT OF
COMPANY VALUE NET ASSETS
- -------------------------------------------------------------------------------
Cisco Systems, Inc. $ 250,809,000 5.6%
Solectron Corp. 196,333,500 4.4
Dell Computer Corp. 179,942,825 4.0
Sanmina Corp. 179,546,337 4.0
America Online, Inc. 171,780,625 3.8
Nokia Corp. (ADR) 153,857,000 3.4
Lexmark International Group, Inc. Cl.A 150,581,475 3.4
Computer Sciences Corp. 133,463,250 3.0
Microsoft Corp. 131,520,625 2.9
International Business Machines Corp. 129,339,500 2.9
$1,677,174,137 37.4%
MAJOR PORTFOLIO CHANGES
SIX MONTHS ENDED MAY 31, 1999 (UNAUDITED)
SHARES*
- -------------------------------------------------------------------------------
HOLDINGS
PURCHASES BOUGHT 5/31/99
- -------------------------------------------------------------------------------
Applied Materials, Inc. 1,253,000 2,201,130
Ceridian Corp. 2,748,500 3,525,500
Computer Sciences Corp. 803,000 2,063,200
DST Systems, Inc. 502,000 1,627,800
First Data Corp. 2,808,000 2,808,000
Fiserv, Inc. 1,608,675 2,783,725
International Business Machines Corp. 1,112,000 1,112,000
MindSpring Enterprises, Inc. 506,400 506,400
New Era of Networks, Inc. 810,700 810,700
Sabre Group Holdings, Inc. Cl.A 674,600 674,600
HOLDINGS
SALES SOLD 5/31/99
- -------------------------------------------------------------------------------
3Com Corp. 1,135,000 -0-
America Online, Inc. 371,400 1,439,000
Compaq Computer Corp. 1,025,000 2,825,000
Fore Systems, Inc. 1,389,700 -0-
HBO & Co. 4,618,200 -0-
Health Management Systems, Inc. 793,700 -0-
Intuit, Inc. 1,650,700 -0-
Network Associates, Inc. 1,255,000 940,000
Tech Data Corp. 979,000 -0-
Uniphase Corp. 895,300 -0-
* Adjusted for a spin-off and stock splits.
4
PORTFOLIO OF INVESTMENTS
MAY 31, 1999 (UNAUDITED) ALLIANCE TECHNOLOGY FUND
_______________________________________________________________________________
COMPANY SHARES VALUE
- -------------------------------------------------------------------------
COMMON STOCKS-84.4%
TECHNOLOGY-80.9%
COMMUNICATION EQUIPMENT-3.4%
Nokia Corp. (ADR) (Finland) 2,167,000 $153,857,000
COMPUTER HARDWARE-8.9%
Apex PC Solutions, Inc. (a) 1,261,350 22,704,300
Compaq Computer Corp. 2,825,000 66,917,188
Dell Computer Corp. (a) 5,225,200 179,942,825
International Business Machines Corp. 1,112,000 129,339,500
------------
398,903,813
COMPUTER PERIPHERALS-3.4%
Lexmark International Group, Inc.
Cl.A (a) 1,106,200 150,581,475
TheStreet.com, Inc. (a) 41,400 1,480,050
------------
152,061,525
COMPUTER SERVICES-18.5%
Ceridian Corp. (a) 3,525,500 116,341,500
Computer Sciences Corp. 2,063,200 133,463,250
Convergys Corp. (a) 966,000 17,025,750
DST Systems, Inc. (a) 1,627,800 87,901,200
First Data Corp. 2,808,000 126,184,500
Fiserv, Inc. (a) 2,783,725 104,389,687
Galileo International, Inc. 1,939,600 87,282,000
Gartner Group, Inc. Cl.A (a) 1,181,600 27,176,800
Sabre Group Holdings, Inc. Cl.A (a) 674,600 41,530,063
SunGard Data Systems, Inc. (a) 2,470,900 86,481,500
------------
827,776,250
COMPUTER SOFTWARE-9.0%
BEA Systems, Inc. (a) 850,000 17,318,750
Descartes Systems Group, Inc.
(Canada) (a) 302,000 1,415,625
DoubleClick, Inc. (a) 1,039,000 101,237,562
I2 Technologies, Inc. (a) 835,000 26,406,875
Interplay Entertainment Corp. (a) 923,100 2,163,516
J.D. Edwards & Co. (a) 397,400 7,637,531
Microsoft Corp. (a) 1,630,000 131,520,625
MindSpring Enterprises, Inc. (a) 506,400 37,473,600
Network Associates, Inc. (a) 940,000 13,806,250
New Era of Networks, Inc. (a) 810,700 36,076,150
Rational Software Corp. (a) 848,000 28,673,000
------------
403,729,484
NETWORKING SOFTWARE-9.6%
America Online, Inc. 1,439,000 171,780,625
Cisco Systems, Inc. (a) 2,301,000 250,809,000
Redback Networks, Inc. (a) 19,500 2,135,250
StarMedia Network, Inc. (a) 50,300 2,961,412
------------
427,686,287
SEMI-CONDUCTOR CAPITAL EQUIPMENT-5.9%
Amkor Technology, Inc. (a) 1,964,000 18,167,000
Applied Materials, Inc. (a) 2,201,130 120,924,579
KLA-Tencor Corp. (a) 1,190,100 54,149,550
Teradyne, Inc. (a) 1,380,000 72,881,250
------------
266,122,379
5
PORTFOLIO OF INVESTMENTS (CONTINUED) ALLIANCE TECHNOLOGY FUND
_______________________________________________________________________________
SHARES OR
PRINCIPAL
AMOUNT
COMPANY (000) VALUE
- -------------------------------------------------------------------------
SEMI-CONDUCTOR COMPONENTS-11.9%
Altera Corp. (a) 3,586,800 $124,865,475
Intel Corp. 1,944,000 105,097,500
PMC-Sierra, Inc. (a) 1,753,000 85,130,063
Texas Instruments, Inc. 1,016,000 111,125,000
Xilinx, Inc. (a) 2,455,000 109,094,062
------------
535,312,100
MISCELLANEOUS-10.3%
Ingram Micro, Inc. Cl.A (a) 1,985,700 57,585,300
Jabil Circuit, Inc. (a) 586,100 28,279,325
Sanmina Corp. (a) 2,394,450 179,546,337
Solectron Corp. (a) 3,586,000 196,333,500
------------
461,744,462
------------
3,627,193,300
UTILITIES-1.7%
TELEPHONE UTILITY-1.7%
MCI WorldCom, Inc. (a) 867,850 74,960,544
HEALTH CARE-1.3%
MEDICAL SERVICES-1.3%
McKesson HBOC, Inc. 1,753,424 59,726,005
CONSUMER SERVICES-0.5%
MISCELLANEOUS-0.5%
Equifax, Inc. 667,000 24,012,000
Total Common Stocks
(cost $2,311,007,354) 3,785,891,849
PRIVATE PLACEMENT-0.0%
Interactive Light Holdings, Inc. (a)(b)
(cost $692,548) 287,572 692,548
SHORT-TERM INVESTMENTS-15.7%
COMMERCIAL PAPER-6.7%
American Express Co.
4.81%, 6/18/99 $100,000 99,772,861
Prudential Funding
4.78%, 6/11/99 100,000 99,867,222
4.81%, 6/11/99 100,000 99,866,389
------------
299,506,472
TIME DEPOSIT-9.0%
State Street Cayman Islands
4.50%, 6/01/99 405,060 405,060,000
Total Short-Term Investments
(amortized cost $704,566,472) 704,566,472
TOTAL INVESTMENTS-100.1%
(cost $3,016,266,374) 4,491,150,869
Other assets less liabilities-(0.1%) (5,356,605)
NET ASSETS-100% $4,485,794,264
(a) Non-income producing security.
(b) Illiquid security, valued at fair value (see Notes A & F).
Glossary:
ADR - American Depositary Receipt.
See notes to financial statements.
6
STATEMENT OF ASSETS AND LIABILITIES
MAY 31, 1999 (UNAUDITED) ALLIANCE TECHNOLOGY FUND
_______________________________________________________________________________
ASSETS
Investments in securities, at value (cost $3,016,266,374) $4,491,150,869
Cash 223
Receivable for capital stock sold 20,569,043
Receivable for investment securities sold 14,682,069
Interest and dividends receivable 599,414
Prepaid expenses 120,548
Total assets 4,527,122,166
LIABILITIES
Payable for investment securities purchased 25,225,640
Advisory fee payable 11,214,485
Payable for capital stock redeemed 3,773,005
Distribution fee payable 714,202
Accrued expenses and other liabilities 400,570
Total liabilities 41,327,902
NET ASSETS $4,485,794,264
COMPOSITION OF NET ASSETS
Capital stock, at par $ 566,137
Additional paid-in capital 2,761,039,038
Net investment loss (26,541,442)
Accumulated net realized gain on investment transactions 275,846,036
Net unrealized appreciation of investments 1,474,884,495
$4,485,794,264
CALCULATION OF MAXIMUM OFFERING PRICE
CLASS A SHARES
Net asset value and redemption price per share
($1,307,308,669 / 15,985,905 shares of capital stock
issued and outstanding) $81.78
Sales charge--4.25% of public offering price 3.63
Maximum offering price $85.41
CLASS B SHARES
Net asset value and offering price per share
($2,377,310,627 / 30,536,159 shares of capital stock
issued and outstanding) $77.85
CLASS C SHARES
Net asset value and offering price per share
($521,911,319 / 6,705,481 shares of capital stock
issued and outstanding) $77.83
ADVISOR CLASS SHARES
Net asset value, redemption and offering price per share
($279,263,649 / 3,385,826 shares of capital stock
issued and outstanding) $82.48
See notes to financial statements.
7
STATEMENT OF OPERATIONS
SIX MONTHS ENDED MAY 31, 1999 (UNAUDITED) ALLIANCE TECHNOLOGY FUND
_______________________________________________________________________________
INVESTMENT INCOME
Interest $10,824,595
Dividends (net of foreign taxes
withheld of $141,190) 2,186,485 $ 13,011,080
EXPENSES
Advisory fee 20,806,178
Distribution fee - Class A 1,755,223
Distribution fee - Class B 10,442,383
Distribution fee - Class C 2,115,810
Transfer agency 3,553,957
Printing 547,905
Custodian 148,513
Registration 96,494
Taxes 95,521
Audit and legal 75,060
Administrative 62,000
Directors' fees 58,000
Miscellaneous 67,755
Total expenses 39,824,799
Less: expense offset arrangement (see Note B) (272,277)
Net expenses 39,552,522
Net investment loss (26,541,442)
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on investment transactions 277,643,785
Net realized gain on written option transactions 1,711,430
Net change in unrealized appreciation of:
Investments 538,793,988
Written options (576,727)
Net gain on investments 817,572,476
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 791,031,034
See notes to financial statements.
8
STATEMENT OF CHANGES IN NET ASSETS ALLIANCE TECHNOLOGY FUND
_______________________________________________________________________________
SIX MONTHS ENDED YEAR ENDED
MAY 31, 1999 NOVEMBER 30,
(UNAUDITED) 1998
---------------- ------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
Net investment loss $ (26,541,442) $ (36,912,043)
Net realized gain on investments and
written option transactions 279,355,215 222,858,575
Net change in unrealized appreciation
of investments and options 538,217,261 401,258,201
Net increase in net assets
from operations 791,031,034 587,204,733
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net realized gain on investments
Class A (62,357,963) (6,722,769)
Class B (117,727,553) (11,607,315)
Class C (21,549,871) (2,036,454)
Advisor Class (17,168,091) (1,788,297)
CAPITAL STOCK TRANSACTIONS
Net increase 1,096,738,024 222,313,081
Total increase 1,668,965,580 787,362,979
NET ASSETS
Beginning of year 2,816,828,684 2,029,465,705
End of period $4,485,794,264 $2,816,828,684
See notes to financial statements.
9
NOTES TO FINANCIAL STATEMENTS
MAY 31, 1999 (UNAUDITED) 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 may 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 tax basis treatment; temporary differences, do
not require such reclassification.
10
ALLIANCE TECHNOLOGY FUND
_______________________________________________________________________________
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 $62,000 to the Adviser
representing the cost of certain legal and accounting services provided to the
Fund by the Adviser for the six months ended May 31, 1999.
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 $2,395,621 for the six months ended May 31, 1999.
For the six months ended May 31, 1999, the Fund's expenses were reduced by
$272,277 under an expense offset arrangement with Alliance Fund Services.
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 $678,236 from the sales of Class A shares
and $25,369, $1,587,858 and $87,829 in contingent deferred sales charges
imposed upon redemptions by shareholders of Class A, Class B and Class C
shares, respectively, for the six months ended May 31, 1999.
Brokerage commissions paid on investment transactions for the six months ended
May 31, 1999 amounted to $1,541,937, none of which 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
$52,786,047 and $3,669,823 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 $1,332,442,683 and $941,532,464,
respectively, for the six months ended May 31, 1999. There were no purchases or
sales of U.S. government and government agency obligations for the six months
ended May 31, 1999.
At May 31, 1999, the cost of investments for federal income tax purposes was
substantially the same as the cost for financial reporting purposes.
Accordingly, gross unrealized appreciation of investments was $1,575,594,525
and gross unrealized depreciation of investments was $100,710,030 resulting in
net unrealized appreciation of $1,474,884,495.
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 exer-
11
NOTES TO FINANCIAL STATEMENTS (CONTINUED) ALLIANCE TECHNOLOGY FUND
_______________________________________________________________________________
cised. 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 six months ended May 31, 1999 were as
follows:
NUMBER OF
CONTRACTS PREMIUMS
--------- ---------
Options outstanding at beginning
of the year 1,500 $ 670,477
Options written 3,000 1,406,453
Options terminated in closing
purchase transactions (3,500) (1,004,966)
Options expired (1,000) (1,071,964)
Options outstanding at May 31, 1999 -0- $ -0-
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:
SHARES AMOUNT
--------------------------- ------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
MAY 31, 1999 NOVEMBER 30, MAY 31, 1999 NOVEMBER 30,
(UNAUDITED) 1998 (UNAUDITED) 1998
------------ ------------ -------------- --------------
CLASS A
Shares sold 20,203,417 18,339,548 $1,643,498,070 $1,112,007,521
Shares issued in
reinvestment of
distributions 818,809 111,053 56,424,249 5,938,826
Shares converted
from Class B 79,358 126,597 6,507,713 7,557,381
Shares redeemed (17,137,438) (18,030,124) (1,395,810,728) (1,098,740,276)
Net increase 3,964,146 547,074 $ 310,619,304 $ 26,763,452
12
ALLIANCE TECHNOLOGY FUND
_______________________________________________________________________________
SHARES AMOUNT
--------------------------- ------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
MAY 31, 1999 NOVEMBER 30, MAY 31, 1999 NOVEMBER 30,
(UNAUDITED) 1998 (UNAUDITED) 1998
------------ ------------ -------------- --------------
CLASS B
Shares sold 8,773,016 6,726,295 $681,531,823 $384,268,932
Shares issued in
reinvestment of
distributions 1,659,749 209,384 109,244,646 10,806,491
Shares converted
to Class A (83,269) (131,650) (6,507,713) (7,557,381)
Shares redeemed (2,482,436) (4,169,685) (192,091,449) (239,143,056)
Net increase 7,867,060 2,634,344 $592,177,307 $148,374,986
CLASS C
Shares sold 7,662,227 12,127,622 $590,428,842 $691,867,198
Shares issued in
reinvestment of
distributions 306,187 35,117 20,147,710 1,812,439
Shares redeemed (5,390,175) (11,539,122) (414,437,427) (662,671,845)
Net increase 2,578,239 623,617 $196,139,125 $ 31,007,792
ADVISOR CLASS
Shares sold 2,042,925 3,484,871 $165,010,232 $207,978,384
Shares issued in
reinvestment of
distributions 242,885 32,400 16,853,793 1,738,611
Shares redeemed (2,235,631) (3,240,614) (184,061,737) (193,550,144)
Net increase
(decrease) 50,179 276,657 $ (2,197,712) $ 16,166,851
NOTE F: ILLIQUID SECURITY
DATE ACQUIRED COST
------------- --------
Interactive Light Holdings, Inc. 2/08/99 $692,548
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 May 31, 1999 was $692,548, representing .02% of net assets.
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 six months ended May 31, 1999.
13
FINANCIAL HIGHLIGHTS ALLIANCE TECHNOLOGY FUND
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
CLASS A
-----------------------------------------------------------------------------------------
SIX MONTHS JANUARY 1,
ENDED 1994
MAY 31, YEAR ENDED NOVEMBER 30, TO YEAR ENDED
1999 -------------------------------------------------- NOV. 30, DEC. 31,
(UNAUDITED) 1998 1997 1996 1995 1994(A) 1993
----------- ----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $68.60 $54.44 $51.15 $46.64 $31.98 $26.12 $28.20
INCOME FROM INVESTMENT
OPERATIONS
Net investment loss (.37)(b) (.68)(b) (.51)(b) (.39)(b) (.30)(b) (.32) (.29)
Net realized and unrealized
gain on investment
transactions 18.72 15.42 4.22 7.28 18.13 6.18 6.39
Net increase in net asset
value from operations 18.35 14.74 3.71 6.89 17.83 5.86 6.10
LESS: DISTRIBUTIONS
Distributions from net
realized gains (5.17) (.58) (.42) (2.38) (3.17) -0- (8.18)
Net asset value, end of period $81.78 $68.60 $54.44 $51.15 $46.64 $31.98 $26.12
TOTAL RETURN
Total investment return based on
net asset value (c) 28.16% 27.36% 7.32% 16.05% 61.93% 22.43% 21.63%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(000's omitted) $1,307,309 $824,636 $624,716 $594,861 $398,262 $202,929 $173,732
Ratio of expenses to average
net assets 1.57%(d)(e) 1.66%(d) 1.67%(d) 1.74% 1.75% 1.66%(e) 1.73%
Ratio of net investment loss to
average net assets (.90)%(e) (1.13)% (.97)% (.87)% (.77)% (1.22)%(e) (1.32)%
Portfolio turnover rate 27% 67% 51% 30% 55% 55% 64%
</TABLE>
See footnote summary on page 17.
14
ALLIANCE TECHNOLOGY FUND
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
CLASS B
---------------------------------------------------------------------------------------------
SIX MONTHS JANUARY 1, MAY 3,
ENDED 1994 1991(F)
MAY 31, YEAR ENDED NOVEMBER 30, TO TO
1999 ------------------------------------------------- NOV. 30, DEC. 31,
(UNAUDITED) 1998 1997 1996 1995 1994(A) 1993
------------- --------- -------- -------- -------- -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $65.75 $52.58 $49.76 $45.76 $31.61 $25.98 $27.44
INCOME FROM INVESTMENT
OPERATIONS
Net investment loss (.63)(b) (1.08)(b) (.88)(b) (.70)(b) (.60)(b) (.23) (.12)
Net realized and unrealized
gain on investment
transactions 17.90 14.83 4.12 7.08 17.92 5.86 6.84
Net increase in net asset
value from operations 17.27 13.75 3.24 6.38 17.32 5.63 6.72
LESS: DISTRIBUTIONS
Distributions from net
realized gains (5.17) (.58) (.42) (2.38) (3.17) -0- (8.18)
Net asset value, end of period $77.85 $65.75 $52.58 $49.76 $45.76 $31.61 $25.98
TOTAL RETURN
Total investment return based
on net asset value (c) 27.70% 26.44% 6.57% 15.20% 60.95% 21.67% 24.49%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(000's omitted) $2,377,311 $1,490,578 $1,053,436 $660,921 $277,111 $18,397 $1,645
Ratio of expenses to average
net assets 2.29%(d)(e) 2.39%(d) 2.38%(d) 2.44% 2.48% 2.43%(e) 2.57%(e)
Ratio of net investment loss to
average net assets (1.62)%(e) (1.86)% (1.70)% (1.61)% (1.47)% (1.95)%(e) (2.30)%(e)
Portfolio turnover rate 27% 67% 51% 30% 55% 55% 64%
</TABLE>
See footnote summary on page 17.
15
FINANCIAL HIGHLIGHTS (CONTINUED) ALLIANCE TECHNOLOGY FUND
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
CLASS C
-------------------------------------------------------------------------------------------
SIX MONTHS JANUARY 1, MAY 3,
ENDED 1994 1993(F)
MAY 31, YEAR ENDED NOVEMBER 30, TO TO
1999 --------------------------------------------------- NOV. 30, DEC. 31,
(UNAUDITED) 1998 1997 1996 1995 1994(A) 1993
------------ --------- -------- -------- -------- -------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $65.74 $52.57 $49.76 $45.77 $31.61 $25.98 $27.44
INCOME FROM INVESTMENT
OPERATIONS
Net investment loss (.62)(b) (1.08)(b) (.88)(b) (.70)(b) (.58)(b) (.24) (.13)
Net realized and unrealized
gain on investment
transactions 17.88 14.83 4.11 7.07 17.91 5.87 6.85
Net increase in net asset
value from operations 17.26 13.75 3.23 6.37 17.33 5.63 6.72
LESS: DISTRIBUTIONS
Distributions from net
realized gains (5.17) (.58) (.42) (2.38) (3.17) -0- (8.18)
Net asset value, end of period $77.83 $65.74 $52.57 $49.76 $45.77 $31.61 $25.98
TOTAL RETURN
Total investment return based on
net asset value (c) 27.69% 26.44% 6.55% 15.17% 60.98% 21.67% 24.49%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(000's omitted) $521,911 $271,320 $184,194 $108,488 $43,161 $7,470 $1,096
Ratio of expenses to average
net assets 2.28%(d)(e) 2.40%(d) 2.38%(d) 2.44% 2.48% 2.41%(e) 2.52%(e)
Ratio of net investment loss to
average net assets (1.61)%(e) (1.87)% (1.70)% (1.60)% (1.47)% (1.94)%(e) (2.25)%(e)
Portfolio turnover rate 27% 67% 51% 30% 55% 55% 64%
</TABLE>
See footnote summary on page 17.
16
ALLIANCE TECHNOLOGY FUND
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
ADVISOR CLASS
-------------------------------------------------
OCT. 2,
SIX MONTHS 1996(F)
ENDED YEAR ENDED NOVEMBER 30, TO
MAY 31, 1999 ------------------------- NOV. 30,
(UNAUDITED) 1998 1997 1996
----------- ----------- ----------- ----------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $69.04 $54.63 $51.17 $47.32
INCOME FROM INVESTMENT
OPERATIONS
Net investment loss (b) (.25) (.50) (.45) (.05)
Net realized and unrealized
gain on investment
transactions 18.86 15.49 4.33 3.90
Net increase in net asset
value from operations 18.61 14.99 3.88 3.85
LESS: DISTRIBUTIONS
Distributions from net
realized gains (5.17) (.58) (.42) -0-
Net asset value, end of period $82.48 $69.04 $54.63 $51.17
TOTAL RETURN
Total investment return based on
net asset value (c) 28.36% 27.73% 7.65% 8.14%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(000's omitted) $279,264 $230,295 $167,120 $566
Ratio of expenses to average
net assets 1.27%(d)(e) 1.37%(d) 1.39%(d) 1.75%(e)
Ratio of net investment loss to
average net assets (.62)%(e) (.84)% (.81)% (1.21)%(e)
Portfolio turnover rate 27% 67% 51% 30%
</TABLE>
(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 periods shown belown, the net expense ratios were as
follows:
SIX MONTHS YEAR ENDED NOVEMBER 30,
ENDED ------------------------
MAY 31, 1999 1998 1997
------------- ------------------------
Class A 1.56 1.65 1.66
Class B 2.28 2.38 2.36
Class C 2.27 2.38 2.37
Advisor Class 1.26 1.36 1.38
(e) Annualized.
(f) Commencement of distribution.
17
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)
MARSHALL C. TURNER, JR. (1)
OFFICERS
PETER ANASTOS, SENIOR VICE PRESIDENT
KATHLEEN A. CORBET, SENIOR VICE PRESIDENT
GERALD T. MALONE, SENIOR VICE PRESIDENT
THOMAS J. BARDONG, 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 LLP
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.
18
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
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
Alliance Capital Reserves
Alliance Government Reserves
Alliance Institutional Reserves
Prime Portfolio
Government Portfolio
Tax-Free Portfolio
Treasury Portfolio
Trust Portfolio
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
General Municipal Portfolio
Government Portfolio
19
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.
TECSR599
