ALLIANCE TECHNOLOGY FUND
ANNUAL REPORT
NOVEMBER 30, 1999
ALLIANCE CAPITAL
LETTER TO SHAREHOLDERS Alliance Technology Fund
_______________________________________________________________________________
January 25, 2000
Dear Shareholders:
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, 1999.
INVESTMENT RESULTS
The following table provides your Fund's investment results for the six- and
twelve-month periods ended November 30, 1999. For comparison, we have also
included performance for the S&P 500 Stock Index, a standard measure of the
performance of the overall U.S. stock market, the Pacific Stock Exchange
("PSE") High Technology 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 November 30, 1999,
your Fund substantially outperformed the S&P 500 Stock Index, but
underperformed the PSE High Technology Index and the Lipper Index.
The Fund was up significantly in its fiscal year ending November 30, 1999. The
fact that it increased less than the PSE High Technology Index reflects our
view that in this time of stock market exuberance, it is more important than
ever to own a diversified list of companies with solid track records and proven
business models. In contrast, 1999 was a year when many less-mature technology
companies received valuations much richer than their established competitors.
INVESTMENT RESULTS*
Periods Ended November 30, 1999
TOTAL RETURNS
6 MONTHS 12 MONTHS
-------- ---------
ALLIANCE TECHNOLOGY FUND
Class A 36.29% 74.67%
Class B 35.81% 73.44%
Class C 35.80% 73.40%
S&P 500 STOCK INDEX 7.36% 20.89%
PSE HIGH TECHNOLOGY INDEX 43.50% 92.27%
LIPPER SCIENCE AND TECHNOLOGY
FUND INDEX 53.31% 100.74%
* THE FUND'S INVESTMENT RESULTS REPRESENT TOTAL RETURNS AND ARE BASED ON THE
NET ASSET VALUE AS OF NOVEMBER 30, 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 S&P 500 STOCK INDEX IS AN UNMANAGED INDEX COMPRISED OF 500 U.S.
COMPANIES. THE PSE HIGH TECHNOLOGY 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. 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.
MARKET COMMENTARY
1999 was an unusual year for technology companies and a highly rewarding year
for technology stocks. Several things marked the landscape last year, most
having to do with the Internet. One was the large number of tech companies that
went public, many of which saw substantial premiums to their initial offering
prices on the first day. With the Internet still in its early stages of
development, and with capital so readily available, this isn't too surprising.
Nevertheless, some of this first day activity
1
Alliance Technology Fund
_______________________________________________________________________________
reflects a demand frenzy that concerns us. Another was the emergence during the
holidays of a serious e-tailing season, with more people doing more of their
holiday shopping on the Internet. Many of the so-called e-tailers will be
seasonal operations with a narrow focus, but some will emerge with the brand
name, distribution strengths and consumer appeal to become substantial
companies in the so-called new economy. Business-to-business concepts based on
the Web was another development last year and something that will eventually be
much larger than the business-to-consumer opportunities that we have witnessed
to date. Most corporations have major projects in this area, although almost
all are in the evaluation or pilot stage. Another issue on everyone's mind last
year was the Y2K challenge. As we had hoped and expected, it was much ado about
very little--lots of preparation in time and dollars reduced the impact of this
one-time event to little more than an annoyance.
OUTLOOK
Fourth quarter reports from a large number of tech companies are very upbeat
and they set the stage for what should be a strong business environment in
2000. Heading the list of positive factors this year is the Y2K dividend. This
"tax" is finally over and its passing will spur many new applications projects.
Another driver will be the final introduction of Microsoft's Windows 2000, a
much delayed operating system targeted at corporations. The surveys that we
have seen suggest a rapid take-up of this new software in the second half of
the year. Wireless data is finally beginning to emerge as another growth driver
and it will introduce new kinds of Internet access appliances into our lives.
It will also help the cellular handset infrastructure companies to continue
their rapid growth, as telephony and data applications begin to merge. We
believe that we are still in the earlier phases of a semiconductor recovery,
driven by a shortage of production capacity, process changes and strong demand
in most end markets. Finally, and as mentioned, the Internet is a major new
force in corporate spending plans, as significant a change as we have seen in
decades. It will change how commerce is conducted and be a catalyst for
software, hardware and serious budgets in hundreds of industries. Our portfolio
exposure to all of these trends--PCs, semiconductors, cellular companies and
several Internet plays--will help us participate in all this change this year.
The issues we worry about and will monitor closely include the pattern of
interest rates, the narrowness of the stock market as more and more emphasis is
given to technology stocks and large-capitalization companies and the ongoing
challenge of valuation. On the latter point, some tech stocks are too expensive
and we will do our best to avoid any company with questionable or eroding
fundamentals. Longer term, however, we are as convinced as ever that investing
in tomorrow's technology winners will continue to be a very rewarding
experience.
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, 1999
CLASS A SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
------------ ------------
One Year 74.67% 67.26%
Five Years 35.02% 33.85%
Ten Years 27.76% 27.21%
CLASS B SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
------------ ------------
One Year 73.44% 69.44%
Five Years 34.08% 34.08%
Since Inception* 33.10% 33.10%
CLASS C SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
------------ ------------
One Year 73.40% 72.40%
Five Years 34.07% 34.07%
Since Inception* 33.09% 33.09%
SEC AVERAGE ANNUAL TOTAL RETURNS AS OF THE MOST RECENT QUARTER-END
(DECEMBER 31, 1999)
CLASS A CLASS B CLASS C
------------ ------------ ------------
1 Year 64.48% 66.56% 69.54%
5 Years 37.33% 37.56% 37.54%
10 Years 29.42% 36.20%* 36.19%*
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.
* Performance since the inception date of 5/3/93 for Class B and Class C
shares.
3
Alliance Technology Fund
_______________________________________________________________________________
ALLIANCE TECHNOLOGY FUND
GROWTH OF A $10,000 INVESTMENT
11/30/89 TO 11/30/99
$128,000
$108,000
$88,000
$68,000
$48,000
$28,000
$10,000
$8,000
PSEHIGH TECH INDEX: $123,965
ALLIANCE TECHNOLOGY FUND CLASS A: $110,953
S&P 500 STOCK INDEX: $51,534
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 11/30/99
This chart illustrates the total value of an assumed $10,000 investment in
Alliance Technology Fund Class A shares (from 11/30/89 to 11/30/99) 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 includes 500 U.S. stocks and is
a common measure 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
Standard &Poor's 500 Stock Index
PSEHigh Tech Index
4
TEN LARGEST HOLDINGS
NOVEMBER 30, 1999 Alliance Technology Fund
_______________________________________________________________________________
PERCENT OF
COMPANY VALUE NET ASSETS
- -------------------------------------------------------------------------------
Cisco Systems, Inc. $ 410,440,875 5.6%
America Online, Inc. 355,572,712 4.8
Solectron Corp. 301,986,750 4.1
Dell Computer Corp. 290,955,200 4.0
Nokia Corp. (ADR) 282,330,881 3.9
Amdocs, Ltd. 264,754,269 3.6
Lexmark International Group, Inc. Cl.A 251,863,500 3.4
Sanmina Corp. 249,977,869 3.4
Applied Materials, Inc. 239,923,279 3.3
Microsoft Corp. 225,859,983 3.1
$2,873,665,318 39.2%
MAJOR PORTFOLIO CHANGES
SIX MONTHS ENDED NOVEMBER 30, 1999
_______________________________________________________________________________
SHARES*
- -------------------------------------------------------------------------------
HOLDINGS
PURCHASES BOUGHT 11/30/99
- -------------------------------------------------------------------------------
Amdocs, Ltd. 7,524,100 7,524,100
America Online, Inc. 3,452,800 4,891,800
First Data Corp. 1,611,100 4,419,100
Gateway, Inc. 1,889,100 1,889,100
General Instrument Corp. 1,667,000 1,667,000
Mannesmann AG (ADR) 779,550 779,550
Microsoft Corp. 850,700 2,480,700
Motorola, Inc. 1,363,600 1,363,600
STMicroelectronics N.V. 950,800 950,800
Yahoo, Inc. 876,800 876,800
HOLDINGS
SALES SOLD 11/30/99
- -------------------------------------------------------------------------------
Ceridian Corp. 3,525,500 -0-
Compaq Computer Corp. 1,550,000 1,275,000
Equifax, Inc. 667,000 -0-
Galileo International, Inc. 1,040,000 899,600
Ingram Micro, Inc. Cl.A 1,985,700 -0-
International Business Machines Corp. 1,112,000 -0-
McKesson HBOC, Inc. 1,753,424 -0-
MindSpring Enterprises, Inc. 506,400 -0-
PMC-Sierra, Inc. 400,000 1,353,000
SunGard Data Systems, Inc. 2,470,900 -0-
* Adjusted for stock splits.
5
PORTFOLIO OF INVESTMENTS
November 30, 1999 Alliance Technology Fund
_______________________________________________________________________________
Company Shares Value
- --------------------------------------------------------------------------------
COMMON STOCKS-92.3%
TECHNOLOGY-87.3%
COMMUNICATION
EQUIPMENT-7.5%
General Instrument
Corp. (a) ........................... 1,667,000 $ 109,188,500
Motorola, Inc. ......................... 1,363,600 155,791,300
Nokia Corp.
(ADR) (Finland) ..................... 2,043,100 282,330,881
--------------
547,310,681
--------------
COMPUTER
HARDWARE-7.1%
Apex, Inc. (a) ......................... 2,095,350 49,240,725
Cobalt Networks, Inc. (a) .............. 11,200 1,890,700
Compaq Computer Corp. .................. 1,275,000 31,157,813
Dell Computer Corp. (a) ................ 6,766,400 290,955,200
Gateway, Inc. (a) ...................... 1,889,100 144,280,012
--------------
517,524,450
--------------
COMPUTER
PERIPHERALS-3.4%
Lexmark International
Group, Inc. Cl.A (a) ................ 3,034,500 251,863,500
--------------
COMPUTER
SERVICES-10.7%
Computer Sciences
Corp. (a) ........................... 2,380,400 155,321,100
Convergys Corp. (a) .................... 1,208,000 32,993,500
DST Systems, Inc. (a) .................. 1,854,500 116,717,594
First Data Corp. ....................... 4,419,100 191,126,075
Fiserv, Inc. (a) ....................... 2,692,825 95,595,287
Galileo International, Inc. ............ 899,600 28,787,200
Gartner Group, Inc. Cl.A ............... 1,181,600 13,588,400
IXL Enterprises, Inc. (a) .............. 545,500 19,638,000
Sabre Group Holdings
Corp. (a) ........................... 1,235,000 56,192,500
Sapient Corp. (a) ...................... 258,100 20,002,750
USWeb Corp. (a) ........................ 1,332,000 55,194,750
--------------
785,157,156
--------------
COMPUTER
SOFTWARE-12.1%
Amdocs, Ltd. (a) ....................... 7,524,100 264,754,269
BEA Systems, Inc. (a) .................. 1,548,500 125,815,625
I2 Technologies, Inc. (a) .............. 1,246,000 105,910,000
Microsoft Corp. (a) .................... 2,480,700 225,859,983
New Era of Networks,
Inc. (a) ............................ 1,807,400 86,981,125
Rational Software
Corp. (a) ........................... 1,248,900 63,850,012
Vitria Technology, Inc. (a) ............ 118,600 11,837,763
--------------
885,008,777
--------------
CONTRACT
MANUFACTURING-10.0%
DII Group, Inc. (a) .................... 548,900 34,649,312
Flextronics International,
Ltd. (a) ............................ 811,200 67,278,900
Jabil Circuit, Inc. (a) ................ 1,206,100 77,115,019
Sanmina Corp. (a) ...................... 2,600,550 249,977,869
Solectron Corp. (a) .................... 3,666,000 301,986,750
--------------
731,007,850
--------------
INTERNET-10.7%
America Online, Inc. (a) ............... 4,891,800 355,572,712
CacheFlow, Inc. (a) .................... 9,200 1,393,800
DoubleClick, Inc. (a) .................. 1,205,600 192,971,350
eBay, Inc. (a) ......................... 205,500 33,920,344
Inktomi Corp. (a) ...................... 87,400 11,280,063
Yahoo!, Inc. (a) ....................... 876,800 186,539,200
--------------
781,677,469
--------------
NETWORKING
SOFTWARE-5.6%
Cisco Systems, Inc. (a) ................ 4,602,000 410,440,875
--------------
SEMI-CONDUCTOR
CAPITAL EQUIPMENT-7.2%
Amkor Technology, Inc. (a) ............ 1,964,000 53,028,000
Applied Materials, Inc. (a) ............ 2,462,330 239,923,279
KLA-Tencor Corp. (a) ................... 1,235,900 104,510,794
Teradyne, Inc. (a) ..................... 3,092,200 134,703,963
--------------
532,166,036
--------------
6
Alliance Technology Fund
_______________________________________________________________________________
Company Shares Value
- --------------------------------------------------------------------------------
SEMI-CONDUCTOR
COMPONENTS-13.0%
Altera Corp. (a) ......................... 3,408,300 $ 183,622,162
Intel Corp. .............................. 1,749,000 134,126,438
PMC-Sierra, Inc. (a) ..................... 1,353,000 139,443,562
STMicroelectronics N.V ................... 950,800 118,731,150
Texas Instruments, Inc. .................. 1,676,000 161,000,750
Xilinx, Inc. (a) ......................... 2,455,000 219,722,500
--------------
956,646,562
--------------
6,398,803,356
--------------
UTILITIES-3.6%
TELEPHONE UTILITY-3.6%
Mannesmann AG
(ADR) (Germany) ....................... 779,550 162,007,250
MCI WorldCom, Inc. (a) ................... 1,235,650 102,172,809
--------------
264,180,059
--------------
CONSUMER SERVICES-1.4%
RETAIL - GENERAL
MERCHANDISE-1.4%
Tandy Corp. .............................. 1,312,200 100,547,325
--------------
Total Common Stocks
(cost $3,520,112,653) ................. 6,763,530,740
--------------
PRIVATE PLACEMENT-0.0%
Interactive Light
Holdings, Inc. (a)(b)
(cost $692,548) ....................... 287,572 692,548
--------------
Principal
Amount
Company (000) Value
- --------------------------------------------------------------------------------
SHORT-TERM
INVESTMENTS-11.5%
COMMERCIAL PAPER-5.4%
American Express Co.
5.48%, 12/07/99 ....................... $ 100,000 $ 99,908,667
Ford Motor Credit Co.
5.47%, 12/16/99 ....................... 100,000 99,771,875
Prudential Funding
5.36%, 12/07/99 ....................... 100,000 99,910,667
5.44%, 12/14/99 ....................... 100,000 99,803,555
--------------
399,394,764
--------------
TIME DEPOSIT-6.1%
State Street Euro Dollar
5.00%, 12/01/99 ....................... 444,291 444,291,000
--------------
Total Short-Term
Investments
(amortized cost
$843,685,764) ......................... 843,685,764
--------------
TOTAL INVESTMENTS-103.8%
(cost $4,364,490,965) ................. 7,607,909,052
Other assets
less liabilities-(3.8%) .............. (280,153,888)
--------------
NET ASSETS-100% .......................... $7,327,755,164
==============
(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.
7
STATEMENT OF ASSETS AND LIABILITIES
November 30, 1999 Alliance Technology Fund
_______________________________________________________________________________
<TABLE>
<CAPTION>
<S> <C>
ASSETS
Investments in securities, at value (cost $4,364,490,965) ............ $7,607,909,052
Cash ................................................................. 610
Receivable for capital stock sold .................................... 62,956,793
Receivable for investment securities sold ............................ 32,896,011
Interest and dividends receivable .................................... 114,177
--------------
Total assets ......................................................... 7,703,876,643
LIABILITIES
Payable for investment securities purchased .......................... 314,962,350
Payable for capital stock redeemed ................................... 38,627,193
Advisory fee payable ................................................. 18,319,388
Distribution fee payable ............................................. 1,376,770
Accrued expenses and other liabilities ............................... 2,835,778
--------------
Total liabilities .................................................... 376,121,479
NET ASSETS .............................................................. $7,327,755,164
==============
COMPOSITION OF NET ASSETS
Capital stock, at par ................................................ $ 680,685
Additional paid-in capital ........................................... 3,814,923,032
Accumulated net realized gain on investment and written
option transactions ................................................ 268,733,360
Net unrealized appreciation of investments ........................... 3,243,418,087
--------------
$7,327,755,164
==============
CALCULATION OF MAXIMUM OFFERING PRICE
Class A Shares
Net asset value and redemption price per share
($2,167,059,790 / 19,443,359 shares of capital stock
issued and outstanding) ............................................ $111.46
Sales charge--4.25% of public offering price ......................... 4.95
-------
Maximum offering price ............................................... $116.41
=======
Class B Shares
Net asset value and offering price per share
($3,922,583,822 / 37,101,760 shares of capital stock
issued and outstanding) ............................................ $105.73
=======
Class C Shares
Net asset value and offering price per share
($907,707,569 / 8,588,707 shares of capital
stock issued and outstanding) ...................................... $105.69
=======
Advisor Class Shares
Net asset value, redemption and offering price
per share ($330,403,983 / 2,934,706 shares of
capital stock issued and outstanding) ................................ $112.59
=======
</TABLE>
See notes to financial statements.
8
STATEMENT OF OPERATIONS
Year Ended November 30, 1999 Alliance Technology Fund
_______________________________________________________________________________
<TABLE>
<CAPTION>
INVESTMENT INCOME
<S> <C> <C>
Interest ............................................ $ 21,551,153
Dividends (net of foreign taxes withheld of $271,360) 5,045,720 $ 26,596,873
-------------
EXPENSES
Advisory fee ........................................ 52,868,775
Distribution fee - Class A .......................... 4,273,345
Distribution fee - Class B .......................... 25,416,842
Distribution fee - Class C .......................... 5,486,797
Transfer agency ..................................... 10,024,493
Printing ............................................ 1,782,771
Registration ........................................ 850,412
Custodian ........................................... 360,322
Taxes ............................................... 311,175
Audit and legal ..................................... 152,062
Administrative ...................................... 128,000
Directors' fees ..................................... 105,000
Miscellaneous ....................................... 136,592
-------------
Total expenses ...................................... 101,896,586
Less: expense offset arrangement (see Note B) ....... (539,198)
-------------
Net expenses ........................................ 101,357,388
---------------
Net investment loss ................................. (74,760,515)
---------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on investment transactions ........ 352,452,909
Net realized loss on written option transactions .... (5,449,855)
Net change in unrealized appreciation of:
Investments ....................................... 2,307,327,580
Written options ................................... (576,727)
---------------
Net gain on investments ............................. 2,653,753,907
---------------
NET INCREASE IN NET ASSETS FROM OPERATIONS ............. $ 2,578,993,392
===============
</TABLE>
See notes to financial statements.
9
STATEMENT OF CHANGES IN NET ASSETS Alliance Technology Fund
_______________________________________________________________________________
<TABLE>
<CAPTION>
Year Ended Year Ended
November 30, November 30,
1999 1998
--------------- ---------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment loss ............................................ $ (74,760,515) $ (36,912,043)
Net realized gain on investments and written option transactions 347,003,054 222,858,575
Net change in unrealized appreciation of investments and options 2,306,750,853 401,258,201
--------------- ---------------
Net increase in net assets from operations ..................... 2,578,993,392 587,204,733
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 ................................................... 2,150,736,566 222,313,081
--------------- ---------------
Total increase ................................................. 4,510,926,480 787,362,979
NET ASSETS
Beginning of year .............................................. 2,816,828,684 2,029,465,705
--------------- ---------------
End of year .................................................... $ 7,327,755,164 $ 2,816,828,684
=============== ===============
</TABLE>
See notes to financial statements.
10
NOTES TO FINANCIAL STATEMENTS
November 30, 1999 Alliance Technology Fund
_______________________________________________________________________________
NOTE A: Significant Accounting Policies
Alliance Technology Fund, Inc. (the "Fund") is regis tered 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 ex penses. 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 ex penses 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 ex change 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.
11
NOTES TO FINANCIAL STATEMENTS (continued) Alliance Technology Fund
_______________________________________________________________________________
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 accumulated net realized gain on investment and
option transactions. 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 $128,000 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, 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 $6,760,075 for the year ended November 30, 1999.
For the year ended November 30, 1999, the Fund's expenses were reduced by
$539,198 under an expense off set arrangement with Alliance Fund Services, Inc.
Alliance Fund Distributors, Inc. (the "Distributor"), a wholly-owned subsidiary
of the Adviser, serves as the Distributor of the Fund's shares. The Distributor
has advised the Fund that it has received front-end sales charges of $1,410,619
from the sales of Class A shares and $39,709, $3,373,129 and $211,340 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, 1999.
Brokerage commissions paid on investment transactions for the year ended
November 30, 1999 amounted to $4,304,433, of which $374,946 was paid to brokers
utilizing the services of the Pershing Division of Donaldson, Lufkin & Jenrette
Securities Corp. ("DLJ"), an affiliate of the Adviser, none of which was paid to
DLJ directly.
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 Agree
ment, the Fund pays distribution and servicing fees 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 are no distribution and servicing fees 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 advised
the Fund that it has incurred expenses in excess of the distribution costs
reimbursed by the Fund in the amount of $69,446,278 and $4,215,524 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 un reimbursed 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 $3,877,665,014 and $2,352,461,552,
respectively, for the year ended November 30, 1999. There were no purchases or
sales of U.S. government and government agency obligations for the year ended
November 30, 1999.
At November 30, 1999, the cost of investments for federal income tax purposes
was $4,368,310,558. Ac-
12
Alliance Technology Fund
_______________________________________________________________________________
cordingly, gross unrealized appreciation of investments was $3,275,906,373 and
gross unrealized depreciation of in vestments was $36,307,879 resulting in net
unrealized appreciation of $3,239,598,494.
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, 1999 were as
follows:
Number of
Contracts Premiums
----------- -----------
Options outstanding at beginning of the year ...... 1,500 $ 670,477
Options written ................................... 14,495 6,548,748
Options terminated in closing purchase transactions (3,500) (1,004,966)
Options expired ................................... (12,495) (6,214,259)
----------- -----------
Options outstanding at November 30, 1999 .......... -0- $ -0-
=========== ===========
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,
1999 1998 1999 1998
--------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Class A
Shares sold .................... 48,158,052 18,339,548 $ 4,282,232,634 $ 1,112,007,521
Shares issued in reinvestment of
distributions ............... 818,921 111,053 56,434,216 5,938,826
Shares converted from Class B .. 179,018 126,597 15,931,334 7,557,381
Shares redeemed ................ (41,734,391) (18,030,124) (3,717,567,978) (1,098,740,276)
--------------- --------------- --------------- ---------------
Net increase ................... 7,421,600 547,074 $ 637,030,206 $ 26,763,452
=============== =============== =============== ===============
Class B
Shares sold .................... 17,813,433 6,726,295 $ 1,500,823,911 $ 384,268,932
Shares issued in reinvestment of
distributions ............... 1,659,877 209,384 109,253,532 10,806,491
Shares converted to Class A .... (188,164) (131,650) (15,931,334) (7,557,381)
Shares redeemed ................ (4,852,485) (4,169,685) (403,812,165) (239,143,056)
--------------- --------------- --------------- ---------------
Net increase ................... 14,432,661 2,634,344 $ 1,190,333,944 $ 148,374,986
=============== =============== =============== ===============
Class C
Shares sold .................... 16,762,551 12,127,622 $ 1,400,120,630 $ 691,867,198
Shares issued in reinvestment of
distributions ............... 306,206 35,117 20,148,985 1,812,439
Shares redeemed ................ (12,607,292) (11,539,122) (1,053,263,050) (662,671,845)
--------------- --------------- --------------- ---------------
Net increase ................... 4,461,465 623,617 $ 367,006,565 $ 31,007,792
=============== =============== =============== ===============
Advisor Class
Shares sold .................... 4,254,845 3,484,871 $ 373,307,248 $ 207,978,384
Shares issued in reinvestment of
distributions ............... 242,885 32,400 16,853,793 1,738,611
Shares redeemed ................ (4,898,671) (3,240,614) (433,795,190) (193,550,144)
--------------- --------------- --------------- ---------------
Net increase (decrease) ........ (400,941) 276,657 $ (43,634,149) $ 16,166,851
=============== =============== =============== ===============
</TABLE>
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 November 30, 1999 was $692,548, representing .01% 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
miscellaneous expenses in the statement of operations. The Fund did not utilize
the Facility during the year ended November 30, 1999.
15
FINANCIAL HIGHLIGHTS Alliance Technology Fund
_______________________________________________________________________________
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Year
<TABLE>
<CAPTION>
------------------------------------------------------------------------------
CLASS A
------------------------------------------------------------------------------
Year Ended November 30,
------------------------------------------------------------------------------
1999 1998 1997 1996 1995
------------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year .............. $ 68.60 $ 54.44 $ 51.15 $ 46.64 $ 31.98
------------- ----------- ----------- ----------- -----------
Income From Investment Operations
Net investment loss (a) ......................... (.99) (.68) (.51) (.39) (.30)
Net realized and unrealized gain on
investment and written option transactions .... 49.02 15.42 4.22 7.28 18.13
------------- ----------- ----------- ----------- -----------
Net increase in net asset value from
operations .................................... 48.03 14.74 3.71 6.89 17.83
------------- ----------- ----------- ----------- -----------
Less: Distributions
Distributions from net realized gains ........... (5.17) (.58) (.42) (2.38) (3.17)
------------- ----------- ----------- ----------- -----------
Net asset value, end of year .................... $ 111.46 $ 68.60 $ 54.44 $ 51.15 $ 46.64
============= =========== =========== =========== ===========
Total Return
Total investment return based on net
asset value (b)................................ 74.67% 27.36% 7.32% 16.05% 61.93%
Ratios/Supplemental Data
Net assets, end of year (000's omitted) ......... $ 2,167,060 $ 824,636 $ 624,716 $ 594,861 $ 398,262
Ratio of expenses to average net assets ......... 1.68%(c) 1.66%(c) 1.67%(c) 1.74% 1.75%
Ratio of net investment loss to average
net assets .................................... (1.11)% (1.13)% (.97)% (.87)% (.77)%
Portfolio turnover rate ......................... 54% 67% 51% 30% 55%
</TABLE>
See footnote summary on page 19.
16
Alliance Technology Fund
_______________________________________________________________________________
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Year
<TABLE>
<CAPTION>
---------------------------------------------------------------------------
CLASS B
---------------------------------------------------------------------------
Year Ended November 30,
---------------------------------------------------------------------------
1999 1998 1997 1996 1995
---------- ---------- ---------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year ................. $ 65.75 $ 52.58 $ 49.76 $ 45.76 $ 31.61
---------- ---------- ---------- -------- --------
Income From Investment Operations
Net investment loss (a) ............................ (1.54) (1.08) (.88) (.70) (.60)
Net realized and unrealized gain on investment and
written option transactions ..................... 46.69 14.83 4.12 7.08 17.92
---------- ---------- ---------- -------- --------
Net increase in net asset value from operations .... 45.15 13.75 3.24 6.38 17.32
---------- ---------- ---------- -------- --------
Less: Distributions
Distributions from net realized gains .............. (5.17) (.58) (.42) (2.38) (3.17)
---------- ---------- ---------- -------- --------
Net asset value, end of year ....................... $ 105.73 $ 65.75 $ 52.58 $ 49.76 $ 45.76
========== ========== ========== ======== ========
Total Return
Total investment return based on net asset value (b) 73.44% 26.44% 6.57% 15.20% 60.95%
Ratios/Supplemental Data
Net assets, end of year (000's omitted) ............ $3,922,584 $1,490,578 $1,053,436 $660,921 $277,111
Ratio of expenses to average net assets ............ 2.39%(c) 2.39%(c) 2.38%(c) 2.44% 2.48%
Ratio of net investment loss to average net assets . (1.83)% (1.86)% (1.70)% (1.61)% (1.47)%
Portfolio turnover rate ............................ 54% 67% 51% 30% 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 Year
<TABLE>
<CAPTION>
--------------------------------------------------------------------------
CLASS C
--------------------------------------------------------------------------
Year Ended November 30,
--------------------------------------------------------------------------
1999 1998 1997 1996 1995
-------- -------- -------- -------- -------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year ................. $ 65.74 $ 52.57 $ 49.76 $ 45.77 $ 31.61
-------- -------- -------- -------- -------
Income From Investment Operations
Net investment loss (a) ............................ (1.57) (1.08) (.88) (.70) (.58)
Net realized and unrealized gain on investment and
written option transactions ..................... 46.69 14.83 4.11 7.07 17.91
-------- -------- -------- -------- -------
Net increase in net asset value from operations .... 45.12 13.75 3.23 6.37 17.33
-------- -------- -------- -------- -------
Less: Distributions
Distributions from net realized gains .............. (5.17) (.58) (.42) (2.38) (3.17)
-------- -------- -------- -------- -------
Net asset value, end of year ....................... $ 105.69 $ 65.74 $ 52.57 $ 49.76 $ 45.77
======== ======== ======== ======== =======
Total Return
Total investment return based on net asset value (b) 73.40% 26.44% 6.55% 15.17% 60.98%
Ratios/Supplemental Data
Net assets, end of year (000's omitted) ............ $907,707 $271,320 $184,194 $108,488 $43,161
Ratio of expenses to average net assets ............ 2.41%(c) 2.40%(c) 2.38%(c) 2.44% 2.48%
Ratio of net investment loss to average net assets . (1.85)% (1.87)% (1.70)% (1.60)% (1.47)%
Portfolio turnover rate ............................ 54% 67% 51% 30% 55%
</TABLE>
See footnote summary on page 19.
18
Alliance Technology Fund
_______________________________________________________________________________
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
<TABLE>
<CAPTION>
----------------------------------------------------------------
ADVISOR CLASS
----------------------------------------------------------------
October 2,
1996(d)
Year Ended November 30, to
---------------------------------------------- November 30,
1999 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 (a) ............................ (.68) (.50) (.45) (.05)
Net realized and unrealized gain on investment and
written option transactions ..................... 49.40 15.49 4.33 3.90
-------- -------- -------- --------
Net increase in net asset value from operations .... 48.72 14.99 3.88 3.85
-------- -------- -------- --------
Less: Distributions
Distributions from net realized gains .............. (5.17) (.58) (.42) -0-
-------- -------- -------- --------
Net asset value, end of period ..................... $ 112.59 $ 69.04 $ 54.63 $ 51.17
======== ======== ======== ========
Total Return
Total investment return based on net asset value (b) 75.22% 27.73% 7.65% 8.14%
Ratios/Supplemental Data
Net assets, end of period (000's omitted) .......... $330,404 $230,295 $167,120 $ 566
Ratio of expenses to average net assets ............ 1.35%(c) 1.37%(c) 1.39%(c) 1.75%(e)
Ratio of net investment loss to average net assets . (.78)% (.84)% (.81)% (1.21)%(e)
Portfolio turnover rate ............................ 54% 67% 51% 30%
</TABLE>
(a) Based on average shares outstanding.
(b) Total investment return is calculated assuming an initial investment made
at the net asset value at the beginning of the period, reinvestment of all
dividends and 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.
(c) Ratio reflects expenses grossed up for expense offset arrangement with the
Transfer Agent. For the periods shown below, the net expense ratios were
as follows:
Year Ended November 30,
1999 1998 1997
------ ------ ------
Class A .................. 1.66% 1.65% 1.66%
Class B .................. 2.38% 2.38% 2.36%
Class C .................. 2.40% 2.38% 2.37%
Advisor Class ............ 1.34% 1.36% 1.38%
(d) Commencement of distribution.
(e) Annualized.
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, 1999, 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 auditing standards generally accepted
in the United States. 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 and financial highlights. Our procedures included
confirmation of securities owned as of November 30, 1999, by correspondence with
the custodian and others. 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, 1999, 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 accounting principles generally
accepted in the United States.
New York, New York
January 6, 2000
FEDERAL INCOME TAX INFORMATION (unaudited)
- -------------------------------------------------------------------------------
In order to meet certain requirements of the Internal Revenue Code we are
advising you that $218,803,478 of the capital gain distributions paid by the
Fund during the fiscal year November 30, 1999 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
2000.
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)
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.
21
THE ALLIANCE FAMILY OF MUTUAL FUNDS
_______________________________________________________________________________
FIXED INCOME
Alliance Bond Fund
U.S. Government Portfolio
Corporate Bond Portfolio
Quality Bond Portfolio
Alliance Global Dollar Government Fund
Alliance Global Strategic Income Trust
Alliance High Yield Fund
Alliance Limited Maturity Government Fund
Alliance Mortgage Securities Income 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 Health Care 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
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.
TECAR1199
