ALLIANCE INTERNATIONAL FUND
SEMI-ANNUAL REPORT
DECEMBER 31, 1995
LETTER TO SHAREHOLDERS ALLIANCE INTERNATIONAL FUND
_______________________________________________________________________________
February 12, 1996
Dear Shareholder:
Declining inflation and interest rates set the stage for strong performance in
1995 in the global financial markets. The U.S. equity market as measured by the
S&P 500 Index led the advance by climbing 37.5%. Slow but steady economic
growth, mild inflation, advancing technology stocks, positive earnings reports
and an enhanced global competitive positioning resulting from the weak U.S.
dollar created a positive environment for U.S. companies and financial assets.
The Japanese equity market experienced an extremely volatile year, declining
dramatically in the first half but later completely retracting those earlier
losses. The yen followed a similar pattern, appreciating 15% during the first
six months but reversing the gains in the second half of the year. The
improvement in Japanese share price performance can be attributed to an
abundance of liquidity-with interest rates close to 0% and an expansionary
fiscal policy; the announcement of plans to address the crisis in the financial
system; the decline in the yen relieving the ailing exporters; and more
recently, signs of slight improvement in economic growth and corporate profits.
European equities produced a reasonable return of 13% in local currency terms,
which was further enhanced by 8% as the currencies appreciated versus the U.S.
dollar. Local European bond markets gained 17% because of slowing economic
growth, historically low inflation rates and falling interest rates. Despite
these factors, corporate profits were disappointing because of uncompetitive
currencies, slow growth and depressed consumer spending.
Finally, the developing equity markets had a poor 1995-declining 7% in U.S.
dollar terms. The fallout from Mexico continued to reverberate throughout Latin
America, the Pacific, and even Eastern Europe. Hong Kong bucked the trend among
the Pacific markets and returned 23%. Despite slowing earnings growth, its
economy and stock market benefited from declining U.S. interest rates because
the Hong Kong dollar is pegged to the U.S. dollar.
INVESTMENT RESULTS
The following table shows the International Fund's investment results over the
six-month period since we last reported (June 30, 1995, through December 31).
Also shown for comparison are the total returns for the benchmark EAFE Index,
an unmanaged but broad measure of stock market performance in Europe, Australia
and the Far East; Morgan Stanley's World Index excluding the U.S., also
unmanaged, which measures the overall performance of stock markets in 21
countries excluding the U.S.; and finally, for the average of its Lipper
universe of 254 international funds. These funds have generally similar
investment objectives to your fund, though some funds included in the average
may have somewhat different investment policies.
Total Returns Through December 31, 1995*
Six Months Twelve Months
---------- -------------
ALLIANCE INTERNATIONAL FUND
Class A +7.74% +10.10%
Class B +7.30% +9.18%
Class C +7.29% +9.18%
MSCI EAFE INDEX +7.98% +11.22%
MSCI WORLD INDEX-U.S. +8.27% +11.41%
LIPPER INTERNATIONAL FUNDS AVERAGE +6.94% +9.41
TOTAL RETURNS ARE BASED ON THE NET ASSET VALUES OF EACH CLASS OF SHARES AS OF
DECEMBER 31; ADDITIONAL INVESTMENT RESULTS APPEAR ON PAGE 4.
The International Fund's returns were closely in line with its benchmarks in
1995. Stock selection was positive in both Europe and Japan, which represent a
major portion of the EAFE Index. Examples of companies-by geography and
industry-held by your Fund that performed particularly well during the year
include:
1
ALLIANCE INTERNATIONAL FUND
_______________________________________________________________________________
BRITISH STOCKS
Thorn EMI +47%
BAT Industries +31%
Forte +38%
Dixons Group +38%
SmithKline Beecham +57%
Royal Bank of Scotland +49%
DUTCH STOCKS
Heineken +36%
AMEV +46%
JAPANESE BANK STOCKS
Bank of Tokyo +17%
Tokai Bank +20%
Sumitomo Bank +15%
JAPANESE CONSUMER STOCKS
Fuji Photo +29%
Nintendo +46%
Takeda +41%
GROWTH STOCKS
Tabacalera +31%(Spain)
Salomon +33%(France)
Astra +40%(Sweden)
Pacific emerging equity markets detracted from performance, despite a correctly
overweighted position in the strong Hong Kong market.
INVESTMENT STRATEGY AND OUTLOOK
Entering 1996, we increased the portfolio's targeted exposure to Japan to 40%,
overweighted the Pacific (excluding Japan) at 13% and slightly underweighted
Europe at 47%. Our asset allocation research suggests that the developed equity
markets may return another 8% (measured in local currency terms) over the next
twelve months. Valuation ratios remain in line with both inflation and interest
rates, and most likely will not expand further. Corporate earnings in Japan
should recover and the market consequently should advance along with earnings.
In contrast, as economic growth slows, earnings could disappoint. The principle
near-term risk is that the major economies of the U.S. and Europe slow
simultaneously during the first half of 1996. The risk of accelerating
inflation leading to higher interest rates seems unlikely. Global liquidity
conditions remain abundant, which is supporting stock markets worldwide and in
the developing countries in particular.
The Japanese economy appears to have bottomed and signs of recovery are
appearing. The government has admitted that a financial crisis exists and has
announced a rescue plan that includes the use of public sector funds to bail
out the financial system. The trade surplus is falling and capital outflows
continue, reinforcing a weakening yen. Liquidity conditions remain robust as
the deflationary environment and slow economy should keep interest rates close
to 0%. Earnings are improving and the potential rebound from current depressed
levels is significant, particularly as the yen falls. In 1996, Japanese
companies are the most likely to deliver positive earnings revisions.
Economic growth is slowing toward recession in parts of Europe. Social unrest,
as witnessed by labor strikes in France, threatens growth. Offsetting this is
low inflation and declining interest rates. Valuations are fair for the larger
cap stocks but more reasonable for medium and smaller companies. Interest rates
should continue to fall, supporting valuation multiples. Corporate profits,
however, are questionable given the sluggish economies and strong currencies.
The resurgence of the European consumer is essential for economic growth. Since
savings ratios are high and corporate balance sheets strong, lower rates should
lead to a recovery in consumption and economic growth beginning in the second
half of 1996.
The Asian markets should benefit from lower U.S. interest rates, abundant
liquidity, and external capital flows. Their companies are growing faster than
anywhere else in the world while valuations are at some of the lowest levels in
the last two years. Within Latin America, Brazil and Colombia appear the most
attractive after substantial declines in 1995. In Eastern Europe, the Polish
equity market has the greatest potential followed by the Czech Republic and
Russian markets.
We expect the U.S. dollar to continue to strengthen for both fundamental and
technical reasons. Consequently, the portfolio is partially hedged using the
Japanese yen,
2
ALLIANCE INTERNATIONAL FUND
_______________________________________________________________________________
French franc and German mark. The overall result is that about 11% of the
portfolio's equity exposure is protected from an appreciating U.S. currency.
CAPITAL GAINS IN 1995
Alliance International Fund paid a capital gains distribution of $1.05 per
share on December 13, 1995, to shareholders of record on December 7. The
distribution represented $0.20 per share from short-term gains, or ordinary
income, and the remaining $0.85 per share was from long-term gains.
Thank you for your continued interest and investment in Alliance International
Fund. We look forward to reporting its progress to you in the coming period.
Sincerely,
John D. Carifa
Chairman and President
A. Rama Krishna
Senior Vice President
3
ALLIANCE INTERNATIONAL FUND
_______________________________________________________________________________
Alliance International Fund seeks to provide investors with a total return on
its assets from long-term growth of capital and from income. It invests
principally in a diversified portfolio of marketable securities of established
non-U.S. companies, companies participating in foreign economies with prospects
for growth, and foreign government securities.
INVESTMENT RESULTS
- -------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN AS OF DECEMBER 31, 1995
CLASS A SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
------------ ------------
. One Year +10.10% +5.42%
. Five Years +8.51% +7.57%
. Ten Years +10.79% +10.31%
CLASS B SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
------------ ------------
. One Year +9.18% +5.18%
. Five Years +7.55% +7.55%
. Since Inception* +5.62% +5.62%
CLASS C SHARES
. One Year +9.18%
. Since Inception* +8.56%
The average annual total returns reflect investment of dividends and/or capital
gains distributions in additional shares-with and without the effect of the
4.25% maximum front-end sales charge for Class A or applicable contingent
deferred sales charge for Class B (4% year 1, 3% year 2, 2% year 3, 1% year 4);
Class C shares are not subject to front-end or contingent deferred sales
charges. Past performance does not guarantee future results. Investment return
and principal value will fluctuate so that an investor's shares, when redeemed,
may be worth more or less than their original cost.
* Inception: 9/17/90, Class B; 5/3/93, Class C.
4
TEN LARGEST HOLDINGS
DECEMBER 31, 1995 (UNAUDITED) ALLIANCE INTERNATIONAL FUND
_______________________________________________________________________________
PERCENT OF
COMPANY U.S. $ VALUE NET ASSETS
- ------------------------------------------------------------------------------
Sumitomo Bank-Large Japanese city bank $ 4,030,024 1.7%
Seven-Eleven Japan-Largest CVS operator 3,736,949 1.5
DDI Corp.-Provider of long distance
telephone and mobile communication
services 3,680,387 1.5
Toyota Motor Corp.-One of world's three
auto makers 3,372,494 1.4
Fortis Amev N.V.-Dutch banking and
insurance company 3,275,101 1.3
Nomura Securities Co., Ltd.-Japan's
largest securities firm 3,181,598 1.3
Mitsui Trust & Banking-Third largest
Japanese trust bank 3,064,407 1.3
Sakura Bank, Ltd.-Major Japanese city bank 3,045,036 1.2
Mitsubishi Bank-Large Japanese city bank
and nucleus of Mitsubishi group 3,036,029 1.2
Asahi Bank, Ltd.-Medium Japanese city bank 2,946,247 1.2
----------- -----
$33,368,272 13.6%
5
DISTRIBUTION OF PORTFOLIO BY COUNTRY
DECEMBER 31, 1995 (UNAUDITED) ALLIANCE INTERNATIONAL FUND
_______________________________________________________________________________
PERCENT OF PORTFOLIO*
---------------------
Japan 39.1%
United Kingdom 13.8
France 9.8
Germany 5.7
Switzerland 3.5
Netherlands 3.3
Hong Kong 2.8
Sweden 2.2
Spain 2.2
Italy 2.1
Malaysia 2.0
Singapore 1.8
Australia 1.8
Finland 1.4
Indonesia 1.2
Denmark 1.0
Norway 1.0
New Zealand 1.0
South Korea 0.9
Brazil 0.6
Belgium 0.5
Ireland 0.5
Thailand 0.4
Mexico 0.4
Peoples Republic of China 0.4
Philippines 0.3
India 0.3
100.0%
* Excludes short-term obligations.
6
INDUSTRY DIVERSIFICATION
DECEMBER 31, 1995 (UNAUDITED) ALLIANCE INTERNATIONAL FUND
_______________________________________________________________________________
PERCENT OF
U.S. $ VALUE NET ASSETS
- ------------------------------------------------------------------------------
Banking $ 40,175,818 16.4%
Basic Industries 19,796,536 8.1
Capital Goods 12,102,695 4.9
Consumer Manufacturing 25,704,882 10.5
Consumer Services 25,917,442 10.6
Consumer Staples 31,074,727 12.7
Energy 5,089,377 2.1
Finance 16,854,748 6.9
Healthcare 8,152,582 3.3
Insurance 11,005,510 4.5
Multi Industry 3,469,557 1.4
Technology 4,884,899 2.0
Transportation 3,685,305 1.5
Utilities 26,939,896 11.0
Other 4,031,358 1.6
Total Investments* 238,885,332 97.5
Cash and receivables, net of liabilities 6,108,431 2.5
Net Assets $244,993,763 100.0%
* Excludes short-term obligations.
7
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1995 (UNAUDITED) ALLIANCE INTERNATIONAL FUND
_______________________________________________________________________________
COMPANY SHARES U.S. $VALUE
- ------------------------------------------------------------------------
COMMON STOCKS AND OTHER INVESTMENTS97.5%
AUSTRALIA1.7%
Coca-Cola Amatil, Ltd. 173,119 $1,380,637
Mayne Nickless, Ltd. 64,053 285,644
National Australia Bank, Ltd. 92,000 827,386
Qantas Airways, Ltd. 103,109 171,664
Woolworths, Ltd. 651,515 1,568,933
----------
4,234,264
BELGIUM0.5%
Kredietbank NV (a) 4,460 1,216,407
BRAZIL0.6%
Dixie Toga, S.A. 643,028 562,347
Industrias Klabin de Papel e Celulose, S.A. 712,500 645,095
Siderurgica Riograndense, S.A. 9,433,000 142,667
----------
1,350,109
CANADA0.0%
Imasco, Ltd. 4 78
DENMARK1.0%
Den Danske Bank 34,000 2,344,724
FINLAND1.4%
Metsa-Serla Oy 27,800 856,412
Nokia Corp. 38,100 1,471,524
Unitas Bank, Ltd. 443,000 1,120,287
----------
3,448,223
FRANCE9.6%
Assurance Generale de France (a) 48,500 1,626,252
Banque Nationale de Paris* (a) 34,400 1,553,662
Bouygues (a) 12,167 1,227,148
Casino Guichard Perrachon 17,020 496,576
Compagnie Financiere de Paribas (a) 20,400 1,119,894
Compagnie Generale des Eaux (a) 17,200 1,719,297
Credit Foncier de France 15,700 227,266
Gruope Danone 11,130 1,838,691
Klepierre 2,400 282,151
Legris Industries, S.A. 16,500 537,743
PSA Peugeot Citroen 14,400 1,901,942
Societe de Immeubles de France 7,375 440,299
Societe Francaise d'Investissemeants
Immobiliers et de Gestion 9,700 644,551
Salomon, S.A. 2,060 1,200,368
Sanofi, S.A. 15,100 969,104
Seita 32,700 1,186,720
Simco
Ordinary 6,910 656,952
new shares 286 24,945
Societe Television Francaise 10,900 1,170,006
Total, S.A. 37,457 1,273,538
Cl. B 10,575 714,585
Union du Credit - Bail Immobilier 11,410 1,180,425
Union Immobiliere de France 3,860 334,623
Usinor Sacilor * 82,400 1,090,861
----------
23,417,599
GERMANY5.5%
Bayer A.G. (a) 9,650 2,546,822
Deutsche Bank A.G. (a) 52,800 2,502,399
Deutsche Lufthansa A.G.*(a) 10,390 1,430,830
Henkel KGaA-Vorzug 4,800 1,805,669
Klein, Schanz & Beck A.G. 2,280 373,601
Vorzug 5,310 592,407
Schmalbach Lubeca A.G. 5,600 787,979
Suedzucker A.G. (a) 2,601 1,405,554
Varta A.G. 500 95,876
Veba A.G. (a) 47,600 2,021,295
----------
13,562,432
HONG KONG2.7%
Citic Pacific, Ltd. 239,000 817,530
Consolidated Electric Power 601,000 1,092,021
8
ALLIANCE INTERNATIONAL FUND
_______________________________________________________________________________
COMPANY SHARES U.S. $VALUE
- ------------------------------------------------------------------------
Dao Heng Bank Group, Ltd. 244,000 $ 878,810
Hong Kong & China Gas Co., Ltd. 178,800 287,884
Hopewell Holdings 1,526,000 878,202
Hysan Development Co., Ltd. 114,000 301,494
Johnson Electric Holdings, Ltd. 254,000 451,665
New World Development Co., Ltd. 76,586 332,789
New World Infrastructure 552 1,057
Sun Hung Kai Properties, Ltd. 55,000 449,887
Television Broadcasting, Ltd. 201,000 716,140
Yizheng Chemical Fibre Co.* 2,131,000 479,527
----------
6,687,006
INDIA0.3%
Bajaj Auto, Ltd. (GDR)(b) 29,100 691,125
INDONESIA1.2%
PT Indosat* 297,000 1,078,111
PT HM Sampoerna 143,000 1,488,476
PT Telekomunikasi Indonesia (ADR) * 13,000 328,250
----------
2,894,837
IRELAND0.5%
Irish Life Plc. 293,669 1,111,596
ITALY2.0%
Ente Nazionale Idrocarburi S.p.A. * 339,000 1,184,820
La Rinascente S.p.A 264,700 1,601,906
Telecom Italia Mobile S.p.A. 204,600 360,120
Telecom Italia S.p.A. 738,000 1,147,924
Telecom Italia Mobile Di Risp* 662,300 696,516
----------
4,991,286
JAPAN38.1%
Amano Corp. 89,000 1,120,581
Aoki International Co., Ltd. 12,000 292,881
Asahi Bank, Ltd. 234,000 2,946,247
Asahi Glass Co., Ltd. 164,000 1,826,634
Bank of Tokyo, Ltd. 76,000 1,332,300
Canon, Inc. 24,000 434,673
Chiba Bank, Ltd. 55,000 495,400
Dai Nippon Printing Co., Ltd. 61,000 1,033,898
Daifuku Co., Ltd. 58,000 820,145
Daito Trust Construction Co., Ltd. 10,800 127,613
Daiwa House Industry Co., Ltd. 28,000 461,017
Daiwa Securities Co., Ltd. 39,000 596,804
DDI Corp. 475 3,680,387
East Japan Railway Co. 336 1,633,627
Fuji Bank 127,000 2,804,455
Fuji Photo Film 20,000 577,240
Furakawa Co., Ltd. 91,000 450,373
Heiwa (a) 51,000 1,328,717
Hokkaido Takushoku Bank 158,000 468,261
Honda Motor Co. 24,000 495,109
House Foods Industry 37,000 666,537
Hoya Corp. 10,000 343,826
Ito-Yokado Co., Ltd. 16,000 985,569
Japan Securities Finance 70,000 1,003,390
Kamigumi Co., Ltd. 73,000 700,659
Kandenko Co., Ltd. 54,000 674,673
Kao Corp. 148,000 1,834,770
Kirin Brewery Co., Ltd. 76,000 898,014
Kokuyo 21,000 488,135
Kuraray Co., Ltd. 112,000 1,225,763
Long-Term Credit Bank of Japan 52,000 443,196
Mabuchi Motor 14,000 870,508
Maeda Road Construction 22,000 406,973
Matsushita Electric Industrial Co. 134,000 2,180,339
Matsushita Electric Works 83,000 876,223
Mitsubishi Bank 129,000 3,036,029
Mitsubishi Heavy Industries, Ltd. 110,000 876,804
9
PORTFOLIO OF INVESTMENTS (CONTINUED) ALLIANCE INTERNATIONAL FUND
_______________________________________________________________________________
COMPANY SHARES U.S. $VALUE
- ------------------------------------------------------------------------
Mitsubishi Materials Corp. 98,000 $ 507,796
Mitsubishi Oil Co. 109,000 968,068
Mitsui Marine & Fire Insurance Co. 120,000 855,400
Mitsui Trust & Banking (a) 280,000 3,064,407
Mori Seiki 22,000 496,465
National House Industrial 32,000 585,763
NGK Insulators 57,000 568,620
NGK Spark Plug Co. 18,000 226,634
Nikko Securities Co. 81,000 1,043,390
Nintendo Corp., Ltd. 11,700 889,540
Nippon Comsys Corp. 2,000 21,114
Nippon Electric Glass Co., Ltd. 2,000 37,966
Nippon Express Co., Ltd. 81,000 779,797
Nippon Light Metal Co. 79,000 452,959
Nippon Paper Industries Co. 11,000 76,387
Nippon Steel Co.* 254,000 870,857
Nippon Telegraph & Telephone Corp. 114 921,937
Nisshin Steel Co., Ltd. 216,000 872,368
NKK Corp. 324,000 872,368
Nomura Securities Co., Ltd. 146,000 3,181,598
ONO Pharmaceutical Ltd. 2,000 76,901
Osaka Gas Co. 224,000 774,508
Rohm Co. 35,000 1,976,271
Sakura Bank, Ltd. 240,000 3,045,036
Sankyo Co., Ltd. 18,000 404,455
Santen Pharmaceutical 11,000 249,298
Sega Enterprises 17,000 938,499
Seven-Eleven Japan 53,000 3,736,949
Shimano, Inc. 34,000 599,322
Shimizu Corp. 81,000 823,729
Shiseido Co., Ltd. 77,000 917,288
Sumitomo Bank (a) 190,000 4,030,024
Sumitomo Electric Industries 60,000 720,581
Sumitomo Marine & Fire Insurance Co. 102,000 837,734
Sumitomo Realty and Development 119,000 841,356
Sumitomo Rubber Industries 33,000 275,506
Taisho Pharmaceutical 45,000 889,104
Takeda Chemical Industries 55,000 905,569
Tanabe Seiyaku Co, Ltd. 4,000 28,785
Toagosei Co., Ltd. 49,000 260,068
Tokai Bank 99,000 1,380,726
Tokyo Electric Power Co. 46,400 1,240,329
Tokyo Gas Co., Ltd. 412,000 1,452,475
Tokyo Steel Mfg. Co. 85,000 1,564,165
Tostem Corp. 41,000 1,362,034
Toyo Kanetsu 62,000 317,656
Toyota Motor Corp. (a) 159,000 3,372,494
UBE Industries, Ltd. 77,000 290,847
Yakult Honsha 57,000 778,402
Yamanouchi Pharmaceutical 42,000 903,051
Yamazaki Baking Co., Ltd. 37,000 688,039
----------
93,412,405
MALAYSIA2.0%
AMMB Holdings Berhad 45,000 513,840
DCB Holdings Berhad
warrants expiring 12/28/99 * 82,250 81,612
Malakoff Berhad 184,000 655,668
Petronas Gas Berhad 173,000 589,223
Rashid Hussain Berhad 89,000 266,331
Resorts World Berhad 184,000 985,313
Telekom Malaysia Berhad 227,000 1,769,737
----------
4,861,724
MEXICO0.4%
Panamerican Beverages, Inc. 24,400 780,800
Telefonos de Mexico, S.A. (ADR) Cl. L 7,100 226,313
----------
1,007,113
NETHERLANDS3.0%
European Vinyls Corp. International N.V.* 11,900 309,165
Fortis Amev N.V. 48,900 3,275,101
10
ALLIANCE INTERNATIONAL FUND
_______________________________________________________________________________
COMPANY SHARES U.S. $VALUE
- ------------------------------------------------------------------------
Heineken N.V. 8,500 $1,507,696
Internationale Nederlanden Groep N.V. 32,885 2,196,342
----------
7,288,304
NEW ZEALAND0.9%
Air New Zealand, Ltd. Cl. B 10,000 33,995
Fletcher Challenge, Ltd. - Forestry Division 232,000 330,641
Lion Nathan, Ltd. 338,000 806,531
Telecom Corp of New Zealand, Ltd. 257,500 1,111,048
----------
2,282,215
NORWAY0.9%
Bergesen d.y. AS 51,400 1,023,189
Christiana Bank OG Kreditkasse 561,000 1,302,874
----------
2,326,063
PEOPLES REPUBLIC OF CHINA 0.4%
Advanced Semiconductor Engineering (GDR) (b) 49,800 658,605
China Steel Corp. (GDS) 16,000 279,600
----------
938,205
PHILIPPINES0.3%
Manila Electric Co. Cl. B 90,000 734,274
Philippine Commerce International Bank 10,070 92,907
----------
827,181
SINGAPORE1.8%
Overseas-Chinese Banking Corp., Ltd. 102,000 1,276,352
Overseas Union Bank 238,000 1,640,509
Singapore Airlines, Ltd. 31,000 289,290
Singapore Press Holdings, Ltd. 64,000 1,131,142
----------
4,337,293
SOUTH KOREA0.8%
Hyundai Motor (GDR) * 3,000 43,500
Korea Electric Power Corp. 15,290 607,067
(ADR) 6,400 169,600
Korea Mobile Telecom
Corp. (GDS) 14,700 650,475
Pohang Iron & Steel Co. 140 10,156
(ADR) 26,000 568,750
----------
2,049,548
SPAIN2.1%
Banco Intercontinental Espanol 16,400 1,592,648
Repsol, S.A. 47,700 1,560,448
Tabacalera, S.A. Series A 37,100 1,404,512
Unidad Editorial, S.A. * (c) 297,500 349,410
Uralita, S.A. 29,500 267,060
----------
5,174,078
SWEDEN2.2%
Astra AB Series A 72,600 2,896,451
Marieberg Tidnings Series A 52,500 1,217,205
Stora Kopparbergs Bergslags Aktiebolag
Series B 100,600 1,204,062
----------
5,317,718
SWITZERLAND3.4%
Baloise Holdings, Ltd. 310 644,714
Ciba-Geigy A.G. (a) 2,700 2,374,783
Forbo Holdings A.G. 3,650 1,559,315
Nestle, S.A. (a) 2,460 2,720,069
Winterthur Schweizerische
Versicherungs - Gesellschaft 1,560 1,103,085
----------
8,401,966
THAILAND0.4%
Bangkok Bank Co., Ltd. 42,000 510,202
The Thai Farmers Bank, Ltd. 52,000 524,335
----------
1,034,537
11
PORTFOLIO OF INVESTMENTS (CONTINUED) ALLIANCE INTERNATIONAL FUND
_______________________________________________________________________________
COMPANY SHARES U.S. $VALUE
- ------------------------------------------------------------------------
UNITED KINGDOM13.5%
Allied Radio Plc. 966,950 $ 63,842
Anglian Water Plc. 120,000 1,131,569
B.A.T. Industries Plc. 305,163 2,687,980
British Airways Plc. 231,700 1,677,347
British Land Co. Plc. 181,000 1,071,309
British Land Co. Plc. (b) 30,166 175,337
British Telecommunications Plc. 319,700 1,753,188
BTR Plc. 324,700 1,654,502
Enterprise Oil Plc. 93,100 572,738
Forte Plc. 200,100 1,027,377
General Electric Co. Plc. 324,000 1,781,802
Grand Metropolitan Plc. 310,500 2,235,746
Hazlewood Foods Plc. 298,600 459,236
Hepworth Plc. 274,000 1,357,852
House of Fraser Plc. 153,400 421,803
Lex Service 38,300 181,769
Marley Plc. 506,200 872,883
Mowlen (John) & Co. Plc. 864,000 791,912
The Peninsular & Oriental Steam Navigation Co. 172,000 1,271,881
Royal Bank of Scotland Group Plc. 153,000 1,392,837
Rugby Group Plc. 719,700 1,229,859
SHARES OR
PRINCIPAL
AMOUNT
COMPANY (000) U.S. $VALUE
- ------------------------------------------------------------------------
Sainsbury (J) Plc. 163,500 $ 996,939
Smith (W.H.) Group Plc. 136,000 895,810
Smithkline Beecham Cl A 75,238 829,864
Tate & Lyle Plc. 285,000 2,089,767
Vodafone Group Plc. 560,000 2,009,607
Wimpey (George) Plc. 1,053,000 2,355,602
-----------
32,990,358
OTHER0.3%
Asesores Bursatiles Capital Fund N.V.* (c) 25 686,938
Total Common Stocks And Other Investments
(cost $224,306,730) 238,885,332
TIME DEPOSIT3.6%
Canadian Imperial Bank of Commerce
5.75%, 1/02/96
(cost $8,700,000) $8,700 8,700,000
TOTAL INVESTMENTS101.1%
(cost $233,006,730) 247,585,332
Other assets less liabilities(1.1%) (2,591,569)
NET ASSETS100% $244,993,763
* Non-income producing security.
(a) Securities or portion thereof, with an aggregate market value of
$39,375,373 have been segregated to collateralize forward exchange currency
contracts.
(b) Securities are exempt from registration under Rule 144A of the Securities
Act of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At December 31, 1995,
these securities amounted to $1,525,067 or .62% of net assets.
(c) Illiquid security, valued at fair value (see Notes A & F).
Glossary of Terms:
ADR - American depository receipt
GDR - Global depository receipt
GDS - Global depository security
See notes to financial statements.
12
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1995 (UNAUDITED) ALLIANCE INTERNATIONAL FUND
_______________________________________________________________________________
ASSETS
Investments in securities, at value (cost $233,006,730) $247,585,332
Receivable for investment securities sold 14,987,788
Dividends and interest receivable 740,358
Receivable for shares of beneficial interest sold 611,983
Unrealized appreciation of forward exchange currency contracts 308,237
Total assets 264,233,698
LIABILITIES
Due to custodian 122,808
Payable for investment securities purchased 14,397,156
Payable for shares of beneficial interest redeemed 3,341,736
Advisory fee payable 596,308
Distribution fee payable 82,063
Accrued expenses 699,864
Total liabilities 19,239,935
NET ASSETS $244,993,763
COMPOSITION OF NET ASSETS
Shares of beneficial interest, at par $ 145,739
Additional paid-in capital 225,076,477
Accumulated net investment loss (1,713,766)
Accumulated net realized gain on investments and foreign
currency transactions 6,594,277
Net unrealized appreciation of investments and foreign
currency denominated assets and liabilities 14,891,036
-------------
$244,993,763
CALCULATION OF MAXIMUM OFFERING PRICE
CLASS A SHARES
Net asset value and redemption price per share($171,941,838/
10,091,951 shares of beneficial interest issued and outstanding) $17.04
Sales Charge - 4.25% of public offering price .76
Maximum offering price $17.80
CLASS B SHARES
Net asset value and offering price per share($53,655,823/
3,292,714 shares of beneficial interest issued and outstanding) $16.30
CLASS C SHARES
Net asset value, redemption and offering price per share($19,396,102
/1,189,274 shares of beneficial interest issued and outstanding) $16.31
See notes to financial statements.
13
STATEMENT OF OPERATIONS
SIX MONTHS ENDED DECEMBER 31, 1995 (UNAUDITED) ALLIANCE INTERNATIONAL FUND
_______________________________________________________________________________
INVESTMENT INCOME
Dividends(net of foreign taxes withheld of $218,713) $1,725,559
Interest 178,346 $1,903,905
EXPENSES
Advisory fee 1,188,835
Distribution fee - Class A 150,128
Distribution fee - Class B 250,610
Distribution fee - Class C 99,807
Custodian 296,896
Transfer agency 231,186
Registration 85,892
Administrative 82,533
Audit and legal 38,293
Printing 31,627
Trustees' fees 19,110
Miscellaneous 31,022
Total expenses 2,505,939
Net investment loss (602,034)
REALIZED AND UNREALIZED GAIN ON INVESTMENTS AND
FOREIGN CURRENCY TRANSACTIONS
Net realized gain on investment transactions 11,105,251
Net realized gain on foreign currency transactions 364,162
Net change in unrealized appreciation (depreciation) of:
Investments 5,699,911
Foreign currency denominated assets and liabilities 1,088,021
Net gain on investments and foreign currency transactions 18,257,345
NET INCREASE IN NET ASSETS FROM OPERATIONS $17,655,311
See notes to financial statements.
14
STATEMENT OF CHANGES IN NET ASSETS ALLIANCE INTERNATIONAL FUND
_______________________________________________________________________________
SIX MONTHS ENDED YEAR ENDED
DECEMBER 31,1995 JUNE 30,
(UNAUDITED) 1995
--------------- -------------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment loss $ (602,034) $ (8,715)
Net realized gain on investments and foreign
currency transactions 11,469,413 19,693,549
Net change in unrealized appreciation
(depreciation) of investments and foreign
currency denominated assets and liabilities 6,787,932 (20,658,406)
Net increase (decrease) in net assets from
operations 17,655,311 (973,572)
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net realized gain on investments and foreign
currency transactions
Class A (10,091,208) (15,878,472)
Class B (3,210,617) (4,457,892)
Class C (1,294,014) (2,832,662)
CAPITAL TRANSACTIONS
Net increase 7,961,814 12,753,910
Total increase (decrease) 11,021,286 (11,388,688)
NET ASSETS
Beginning of period 233,972,477 245,361,165
End of period $244,993,763 $233,972,477
See notes to financial statements.
15
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995 (UNAUDITED) ALLIANCE INTERNATIONAL FUND
_______________________________________________________________________________
NOTE A: SIGNIFICANT ACCOUNTING POLICIES
Alliance International Fund (the 'Fund'), which is a Massachusetts business
trust, is registered under the Investment Company Act of 1940, as a
diversified, open-end management investment company. The Fund offers Class A,
Class B and Class C shares. Class A shares are sold with a front-end sales
charge of up to 4.25%. Class B shares are sold with a contingent deferred sales
charge which declines from 4% to zero depending on the period of time the
shares are held. Class B shares will automatically convert to Class A shares
eight years after the end of the calendar month of purchase. Class C shares are
sold without an initial or contingent deferred sales charge. All three classes
of shares have identical voting, dividend, liquidation and other rights and the
same terms and conditions, except that each class bears different distribution
expenses and has exclusive voting rights with respect to its distribution plan.
The following is a summary of significant accounting policies followed by the
Fund.
1. SECURITY VALUATION
Portfolio securities traded on a United States or European stock exchange for
which market quotations are readily available are valued at the last quoted
sales price on that exchange prior to the time when assets are valued.
Securities listed or traded on certain foreign exchanges whose operations are
similar to the U.S. over-the-counter market are valued at the price within the
limits of the latest available current bid and asked price deemed best to
reflect fair value. Securities which mature in 60 days or less are valued at
amortized cost, which approximates market value. Restricted and illiquid
securities are valued at fair value as determined by the Board of Trustees. In
determining fair value, consideration is given to cost, operation and other
financial data.
2. CURRENCY TRANSLATION
Assets and liabilities denominated in foreign currencies and commitments under
forward exchange currency contracts are translated into U.S. dollars at the
mean of the quoted bid and asked price of such currencies against the U.S.
dollar.
Purchases and sales of portfolio securities are translated at the rates of
exchange prevailing when such securities were acquired or sold. Income and
expenses are translated at rates of exchange prevailing when accrued.
Net realized foreign exchange gains of $364,162 represent foreign exchange
gains and losses from sales and maturities of debt securities, holding of
foreign currencies, exchange gains and losses realized between the trade and
settlement dates on security transactions, and the difference between the
amounts of dividends, interest and foreign taxes receivable recorded on the
Fund's books and the U.S. dollar equivalent of the amounts actually received or
paid. Net currency gains and losses from valuing foreign currency denominated
assets and liabilities at period end exchange rates are reflected as a
component of net unrealized appreciation of investments and foreign currency
denominated assets and liabilities.
3. TAXES
It is the Fund's policy to meet the requirements of the Internal Revenue Code
applicable to regulated investment companies and to distribute all of its
investment company taxable income and net realized gains, if applicable, to
shareholders. Therefore, no provisions for federal income or excise taxes are
required.
4. INVESTMENT INCOME AND SECURITY TRANSACTIONS
Dividend income is recorded on the ex-dividend date. Interest income is accrued
daily. Security transactions are accounted for on the date securities are
purchased or sold. Security gains and losses are determined on the identified
cost basis. The Fund accretes discounts on short-term securities as adjustments
to interest income.
5. DIVIDENDS AND DISTRIBUTIONS
Dividends and distributions to shareholders are recorded on the ex-dividend
date and are determined in accordance with tax regulations.
6. CHANGES IN ACCOUNTING FOR DISTRIBUTIONS TO SHAREHOLDERS
Effective June 30, 1994, the Fund adopted Statement of Position 93-2
Determination, Disclosure, and Financial Statement Presentation of Income,
Capital Gain, and Return of Capital Distributions by Investment Companies. As a
result, the Fund changed the classification of distributions to shareholders to
better disclose the differences between financial statement amounts and
distributions determined in accordance with income tax regulations.
16
ALLIANCE INTERNATIONAL FUND
_______________________________________________________________________________
NOTE B: ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under an investment advisory agreement, the Fund pays its Adviser, Alliance
Capital Management L.P., (the 'Adviser'), a fee at a quarterly rate equal to
1/4 of 1% (approximately 1% on an annual basis) of quarter end net assets up to
$500 million and 3/16 of 1% (approximately .75% on an annual basis) of quarter
end net assets in excess of $500 million. The Adviser has agreed, under the
terms of the advisory agreement, to reimburse the Fund to the extent that its
aggregate expenses (exclusive of interest, taxes, brokerage, distribution fees,
extraordinary expenses and certain other expenses) exceed the limits prescribed
by any state in which the Fund's shares are qualified for sale. The Fund
believes that the most restrictive expense ratio limitation currently imposed
by any state is 2.5% of the first $30 million of its average daily net assets,
2% of the next $70 million of its average daily net assets and 1.5% of its
average daily net assets in excess of $100 million. For the six months ended
December 31, 1995, no such reimbursement was required. Pursuant to the advisory
agreement, the Fund paid $82,533 to the Adviser representing the cost of
certain legal and accounting services provided to the Fund by the Adviser for
the six months ended December 31, 1995.
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 $173,788 for the six months ended December 31, 1995.
Alliance Fund Distributors, Inc. (a wholly-owned subsidiary of the Adviser)
serves as the Distributor of the Fund's shares. The Distributor received
front-end sales charges of $15,562 from the sale of Class A shares and $148,635
in contingent deferred sales charges imposed upon redemptions by shareholders
of Class B for the six months ended December 31, 1995. Brokerage commissions
paid on securities transactions for the six months ended December 31, 1995,
amounted to $494,874, none of which was paid to brokers utilizing the services
of the Pershing Division of Donaldson, Lufkin & Jenrette Securities Corp.
('DLJ'), an affiliate of the Adviser, nor 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
Agreement the Fund pays a distribution fee to the Distributor at an annual rate
of up to .30 of 1% of the average daily net assets attributable to Class A
shares and 1% of the average daily net assets attributable to the Class B and
Class C 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 $1,795,715 and $508,788, 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)
aggregated $101,862,094 and $105,781,129, respectively, for the six months
ended December 31, 1995. There were no purchases or sales of U.S. Government
and government agency obligations for the six months ended December 31, 1995.
The Fund enters into forward exchange currency contracts in order to hedge its
exposure to changes in foreign currency exchange rates on its foreign portfolio
holdings and to hedge certain firm purchase and sale commitments denominated in
foreign currencies. A forward exchange currency contract is a commitment to
purchase or sell a foreign currency at a future date at a negotiated forward
17
NOTES TO FINANCIAL STATEMENTS (CONTINUED) ALLIANCE INTERNATIONAL FUND
_______________________________________________________________________________
rate. The gain or loss arising from the difference between the original
contracts and the closing of such contracts is included in net realized gain or
loss from foreign currency transactions.
Fluctuations in the value of forward exchange currency contracts are recorded
for financial reporting purposes as unrealized gains or losses by the Fund.
The Fund's custodian will place and maintain cash not available for investment
or U.S. Government securities in a separate account of the Fund having a value
equal to the aggregate amount of the Fund's commitments under forward exchange
currency contracts entered into with respect to position hedges.
Risks may arise from the potential inability of a counterparty to meet the
terms of a contract and from unanticipated movements in the value of a foreign
currency relative to the U.S. dollar. At December 31, 1995, the Fund had
outstanding forward exchange currency contracts, to sell foreign currencies
against the U.S. dollar as follows:
CONTRACT COST ON U.S. $ UNREALIZED
AMOUNT ORIGINATION CURRENT APPRECIATION
(000) DATE VALUE (DEPRECIATION)
--------- ----------- ----------- --------------
FOREIGN CURRENCY SALE CONTRACTS
Deutsche Marks,
expiring 1/31/96 7,900 $ 5,600,057 $ 5,516,627 $ 83,430
Japanese Yen,
expiring 1/31/96 1,633,500 16,182,447 15,899,339 283,108
French Francs,
expiring 2/29/96 23,600 4,764,760 4,823,061 (58,301)
---------
$308,237
At December 31, 1995, the cost of investments for federal income tax purposes
was the same as the cost for financial reporting purposes. Accordingly, gross
unrealized appreciation of investments was $22,885,155 and gross unrealized
depreciation of investments was $8,306,553, resulting in net unrealized
appreciation of $14,578,602.
18
ALLIANCE INTERNATIONAL FUND
_______________________________________________________________________________
NOTE E: SHARES OF BENEFICIAL INTEREST
There is an unlimited number of $.01 par value shares of beneficial interest
authorized, divided into three classes, designated Class A, Class B and Class
C. Transactions in shares of beneficial interest were as follows:
SHARES AMOUNT
---------------------------- ----------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
DEC. 31,1995 JUNE 30, DEC. 31,1995 JUNE 30,
(UNAUDITED) 1995 (UNAUDITED) 1995
----------- ----------- ------------- -------------
CLASS A
Shares sold 1,212,340 2,705,822 $ 20,831,144 $ 47,501,995
Shares issued in
reinvestment of
dividends and
distributions 532,923 926,842 8,899,875 15,032,351
Shares redeemed (1,502,675) (4,770,741) (25,888,872) (83,532,846)
Net increase(decrease) 242,588 (1,138,077) $ 3,842,147 $(20,998,500)
CLASS B
Shares sold 727,374 2,388,681 $ 12,016,392 $ 40,924,713
Shares issued in
reinvestment of
distributions 141,372 246,119 2,259,131 3,861,611
Shares redeemed (602,544) (1,280,863) (9,996,751) (20,826,680)
Net increase 266,202 1,353,937 $ 4,278,772 $ 23,959,644
CLASS C
Shares sold 593,777 2,500,356 $ 9,771,226 $ 42,839,538
Shares issued in
reinvestment of
distributions 49,342 171,490 789,018 2,692,396
Shares redeemed (651,221) (2,228,318) (10,719,349) (35,739,168)
Net increase(decrease) (8,102) 443,528 $ (159,105) $ 9,792,766
NOTE F: ILLIQUID SECURITIES
DATE
SECURITY ACQUIRED U.S. $COST
- ------------------------------------- -------- ----------
Asesores Bursatiles Capital Fund N.V. 10/29/90 $1,113,819
Unidad Editorial, S.A. 1/20/92 369,591
The securities shown are illiquid and have been valued at fair value in
accordance with procedures described in Note A. The value of these securities
at December 31, 1995 was $1,036,348 representing 0.4% of net assets.
19
FINANCIAL HIGHLIGHTS ALLIANCE INTERNATIONAL FUND
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
CLASS A
-----------------------------------------------------------------------
SIX MONTHS
ENDED
DECEMBER 31, YEAR ENDED JUNE 30,
1995 ---------------------------------------------------------
(UNAUDITED) 1995 1994 1993 1992 1991
------------ --------- ---------- --------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $16.81 $18.38 $16.01 $14.98 $14.00 $17.99
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) (.02)(b) .04 (.09) (.01) .01(b) .05
Net realized and unrealized gain (loss)
on investments and foreign currency
transactions 1.30 .01 3.02 1.17 1.04 (3.54)
Net increase (decrease) in net asset
value from operations 1.28 .05 2.93 1.16 1.05 (3.49)
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income -0- -0- -0- (.04) (.07) (.03)
Distributions from net realized gains
on investments and foreign currency
transactions (1.05) (1.62) (.56) (.09) -0- (.47)
Total dividends and distributions (1.05) (1.62) (.56) (.13) (.07) (.50)
Net asset value, end of period $17.04 $16.81 $18.38 $16.01 $14.98 $14.00
TOTAL RETURN
Total investment return based on net
asset value (c) 7.74% .59% 18.68% 7.86% 7.52% (19.34)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period(000's omitted) $171,942 $165,584 $201,916 $161,048 $179,807 $214,442
Ratio of expenses to average net assets 1.86%(d) 1.73% 1.90% 1.88% 1.82% 1.73%
Ratio of net investment income (loss)
to average net assets (.26)%(d) .26% (.50)% (.14)% .07% .37%
Portfolio turnover rate 88% 119% 97% 94% 72% 71%
</TABLE>
See footnote summary on page 22.
20
ALLIANCE INTERNATIONAL FUND
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
CLASS B
-----------------------------------------------------------------------
SIX MONTHS SEPTEMBER 17,
ENDED 1990(A)
DECEMBER 31, YEAR ENDED JUNE 30, TO
1995 -------------------------------------------- JUNE 30,
(UNAUDITED) 1995 1994 1993 1992 1991
------------ --------- ----------- -------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $16.19 $17.90 $15.74 $14.81 $13.93 $15.52
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) (.09)(b) (.01) (.19)(b) (.12) (.11)(b) .03
Net realized and unrealized gain (loss)
on investments and foreign currency
transactions 1.25 (.08) 2.91 1.14 1.02 (1.12)
Net increase (decrease) in net asset
value from operations 1.16 (.09) 2.72 1.02 .91 (1.09)
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income -0- -0- -0- -0- (.03) (.03)
Distributions from net realized gains
on investments and foreign currency
transactions (1.05) (1.62) (.56) (.09) -0- (.47)
Total dividends and distributions (1.05) (1.62) (.56) (.09) (.03) (.50)
Net asset value, end of period $16.30 $16.19 $17.90 $15.74 $14.81 $13.93
TOTAL RETURN
Total investment return based on net
asset value (c) 7.30% (.22)% 17.65% 6.98% 6.54% (6.97)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $53,656 $48,998 $29,943 $6,363 $5,585 $3,515
Ratio of expenses to average net assets 2.70%(d) 2.57% 2.78% 2.70% 2.68% 3.39%(d)
Ratio of net investment income (loss)
to average net assets (1.10)%(d) (.62)% (1.15)% (.96)% (.70)% .84%(d)
Portfolio turnover rate 88% 119% 97% 94% 72% 71%
</TABLE>
See footnote summary on page 22.
21
FINANCIAL HIGHLIGHTS (CONTINUED) ALLIANCE INTERNATIONAL FUND
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
CLASS C
------------------------------------------------
SIX MONTHS
ENDED MAY 3,1993(A)
DECEMBER 31, YEAR ENDED JUNE 30, TO
1995 -------------------- JUNE 30,
(UNAUDITED) 1995 1994 1993
------------ --------- --------- ------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $16.20 $17.91 $15.74 $15.93
INCOME FROM INVESTMENT OPERATIONS
Net investment loss (.09)(b) (.14) (.11) -0-
Net realized and unrealized gain (loss)
on investments and foreign currency
transactions 1.25 .05 2.84 (.19)
Net increase (decrease) in net asset
value from operations 1.16 (.09) 2.73 (.19)
LESS: DIVIDENDS AND DISTRIBUTIONS
Distributions from net realized gains
on investments and foreign currency
transactions (1.05) (1.62) (.56) -0-
Total dividends and distributions (1.05) (1.62) (.56) -0-
Net asset value, end of period $16.31 $16.20 $17.91 $15.74
TOTAL RETURN
Total investment return based on net
asset value (c) 7.29% (.22)% 17.72% (1.19)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $19,396 $19,395 $13,503 $229
Ratio of expenses to average net assets 2.67%(d) 2.54% 2.78% 2.57%(d)
Ratio of net investment loss
to average net assets (1.08)%(d) (.88)% (1.12)% .08%(d)
Portfolio turnover rate 88% 119% 97% 94%
</TABLE>
(a) Commencement of distribution.
(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 charge or contingent
deferred sales charge is not reflected in the calculation of total investment
return. Total investment return for a period of less than one year is not
annualized.
(d) Annualized.
22
ALLIANCE INTERNATIONAL FUND
_______________________________________________________________________________
TRUSTEES
JOHN D. CARIFA, CHAIRMAN AND PRESIDENT
DAVID H. DIEVLER
JOHN H. DOBKIN
W.H. HENDERSON
STIG HOST
RICHARD M. LILLY
ALAN STOGA
ROBERT C. WHITE
OFFICERS
A. RAMA KRISHNA, SENIOR VICE PRESIDENT
MARK H. BREEDON, VICE PRESIDENT
KELLY A. MORGAN, VICE PRESIDENT
THOMAS J. BARDONG, VICE PRESIDENT
NICHOLAS E. CROSSLAND, VICE PRESIDENT
EDMUND P. BERGAN, JR., SECRETARY
MARK D. GERSTEN, TREASURER & CHIEF FINANCIAL OFFICER
PATRICK J. FARRELL, CONTROLLER
CUSTODIAN
BROWN BROTHERS HARRIMAN & CO.
40 Water Street
Boston, MA 02109
PRINCIPAL UNDERWRITER
ALLIANCE FUND DISTRIBUTORS, INC.
1345 Avenue of the Americas
New York, NY 10105
LEGAL COUNSEL
SEWARD & KISSEL
One Battery Park Plaza
New York, NY 10004
INDEPENDENT AUDITORS
ERNST & YOUNG LLP
787 Seventh Avenue
New York, NY 10019
TRANSFER AGENT
ALLIANCE FUND SERVICES, INC.
P.O. Box 1520
Secaucus, NJ 07096-1520
Toll-Free 1-(800) 221-5672
23
ALLIANCE INTERNATIONAL FUND
1345 Avenue of the Americas
New York, NY 10105
(800) 221-5672
ALLIANCECAPITAL
MUTUAL FUNDS WITHOUT THE MYSTERY.
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.
INTSR
