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ALLIANCE CAPITAL(R) THE ALLIANCE BOND FUNDS
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Supplement dated January 24, 1996 to Prospectus dated November 1,
1995 of The Alliance Bond Funds.
The Board of Directors of Alliance Mortgage Strategy
Trust, Inc. (the "Fund") has called a Special Meeting of
Stockholders for February 22, 1996 (the "Meeting") for the
purpose of approving a proposal to change the Fund's investment
emphasis from mortgage-related securities to U.S. Government
securities, broaden the scope of investments available to the
Fund and rename the Fund "Alliance Limited Maturity Government
Fund, Inc." If the proposal is approved by the stockholders, the
Fund's investment objective will be to seek the highest level of
current income, consistent with low volatility of net asset
value. The Fund would also have a fundamental policy of
investing, under normal circumstances, at least 65% of the value
of its total assets in U.S. Government securities, including
mortgage-related securities, and repurchase agreements relating
to U.S. Government securities.
In addition to the proposed changes to the Fund's
investment objective and fundamental investment policy described
above, the proposal contemplates that, with respect to the up to
35% of the Fund's total assets not required to be invested in
accordance with the Fund's proposed new fundamental investment
policy, the universe of investments available to the Fund be
slightly broadened. The most significant change would be to
permit the Fund to invest in debt securities that, while not of
triple-A quality, are of high quality, including high quality
corporate debt securities. The proposal also contemplates that
the maturity of the Fund's portfolio securities be limited by
requiring that each such security have either a remaining
maturity of not more than ten years or a duration not exceeding
that of a ten-year treasury note.
It is expected that, if the proposal is approved by the
stockholders, the foregoing changes to the Fund's name and its
investment objective and policies will be implemented as soon
thereafter as practicable. It is not expected that the Fund
would incur significant transaction costs in order to make its
asset composition consistent with the new investment objective
and policies.
The Board has fixed January 10, 1996 as the record date for
the determination of stockholders entitled to notice of, and to
vote at, the Meeting and any adjournment thereof. Shares
acquired after January 10, whether acquired by new investors or
existing stockholders, will not be eligible to be voted at the
Meeting.
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(R) This registered mark used under license from the owner,
Alliance Capital Management L.P.
00250110.AO2
