ALLIANCE BOND FUND CORPORATE BOND PORTFOLIO
ANNUAL REPORT
JUNE 30, 1998
ALLIANCE CAPITAL
LETTER TO SHAREHOLDERS ALLIANCE BOND FUND CORPORATE BOND PORTFOLIO
_______________________________________________________________________________
August 27, 1998
Dear Shareholder:
We are pleased to report to you on the investment strategy, performance and
outlook of the Alliance Bond Fund Corporate Bond Portfolio (the "Fund"). The
primary objective for the Fund is to maximize income over the long term, while
providing reasonable safety in the value of each shareholder's investment. As a
secondary objective, the Fund seeks capital appreciation. To achieve its
objectives the Fund invests primarily in a diversified portfolio of investment
grade and non-investment grade corporate bonds issued by domestic and foreign
issuers that we expect to benefit from improving credit and economic
fundamentals. The Fund may also hold debt issued by the U.S. and foreign
governments.
INVESTMENT RESULTS
The following table shows how your Fund performed over the six- and 12-month
periods ended June 30, 1998. For comparison, we have included performance for
your Fund's benchmark, the Lehman Brothers Aggregate Bond Index, which is a
standard measure of the performance of a basket of unmanaged debt securities,
and for the Lipper Corporate Debt Funds BBB-Rated Average (Lipper Average), a
performance average of a group of similar corporate bond funds.
During the six- and 12-month periods ended June 30, 1998, your Fund
underperformed its benchmark, as well as the Lipper Average, as a result of the
above-market spread duration of the Fund's corporate bond holdings. Spread
duration is a measure of a bond's price sensitivity to changes in its yield
spread relative to Treasury securities. Maintaining an above-market spread
duration tends to increase the volatility of a fixed income portfolio.
Therefore, as credit spreads widened, the Fund's performance was dampened. In
addition, our exposure to emerging market securities also tempered performance
as that sector lagged.
INVESTMENT RESULTS*
Periods Ended June 30, 1998
TOTAL RETURNS
6 MONTHS 12 MONTHS
--------- ---------
ALLIANCE BOND FUND
CORPORATE BOND PORTFOLIO
Class A 2.87% 8.66%
Class B 2.54% 7.95%
Class C 2.53% 7.95%
LEHMAN BROTHERS
AGGREGATE BOND INDEX 3.93% 10.54%
LIPPER CORPORATE DEBT
FUNDS BBB-RATED AVERAGE 3.81% 10.50%
* THE FUND'S INVESTMENT RESULTS ARE TOTAL RETURNS FOR THE PERIODS AND ARE
BASED ON THE NET ASSET VALUE OF EACH CLASS OF SHARES. 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. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
THE LEHMAN BROTHERS AGGREGATE BOND INDEX IS COMPOSED OF THE
MORTGAGE-BACKED SECURITIES INDEX, THE ASSET-BACKED SECURITIES INDEX AND THE
GOVERNMENT/CORPORATE BOND INDEX. THE UNMANAGED LIPPER CORPORATE DEBT FUNDS
BBB-RATED AVERAGE. (LIPPER AVERAGE) IS BASED ON THE PERFORMANCE OF A UNIVERSE
OF FUNDS THAT INVEST AT LEAST 65% OF THEIR ASSETS CORPORATE AND GOVERNMENT DEBT
ISSUES RATED IN THE TOP FOUR GRADES. FOR THE SIX AND 12-MONTH PERIODS ENDED
JUNE 30, 1998, THE LIPPER AVERAGE CONSISTED OF 103 AND 96 FUNDS, RESPECTIVELY.
AN INVESTOR CANNOT INVEST DIRECTLY IN AN INDEX OR AN AVERAGE.
ADDITIONAL INVESTMENT RESULTS APPEAR ON PAGE 4.
MARKET OVERVIEW
During the six-month period ended June 30, 1998, the global economy continued
to feel the effects of the Asian crisis that began last summer. Most developed
countries including the U.S. continued to experience strong domestic demand but
weaker manufacturing activity due to Asia's slowdown. Economic growth remained
positive and inflation remained low. Japan was the critical exception as
slowing growth and rising unemployment
1
ALLIANCE BOND FUND CORPORATE BOND PORTFOLIO
_______________________________________________________________________________
pushed the economy into an official recession. The U.S. dollar continued to
strengthen against the other major currencies.
During the first half of 1998, bond markets in the developed countries
continued to climb as investors, concerned about events in the emerging markets
and Japan, sought relative safety from emerging market price volatility. In
addition, healthy economic growth rates combined with low inflation created a
favorable environment for bonds in the developed markets. The non-U.S. global
government bond sector recorded the best performance, while the emerging
markets sector recorded the worst performance. Within the U.S. bond market, the
U.S. corporate high yield sector outperformed all other sectors, followed by
the Treasury and investment grade corporate sectors, respectively.
In the corporate sector, volatility in yield spreads relative to Treasuries
continued to persist. During the first quarter of 1998, after the markets
stabilized, prices increased and spreads tightened generally from highs reached
in 1997. During the second quarter, the combination of huge new issue supply,
credit fears and a flattening yield curve caused a significant widening of
yield spreads relative to the first quarter. Asian corporate spreads, which had
recovered during the first quarter of 1998, moved sharply wider in the
following second quarter as negative economic news in the region heightened
investor concern.
Among the individual corporate sectors, the finance sector recorded the
strongest performance. The sector under performed during the first quarter of
1998 due to concerns over foreign loan losses; however, news of the
Citibank/Travelers merger in the second quarter pushed finance company debt
prices higher. The cable and media sectors performed relatively well, helped by
strong earnings and merger activity. The utility sector also posted healthy
returns over the six-month period, as this sector benefits from its "safe
haven" status during times of market volatility.
INVESTMENT STRATEGY
Over the six-month period ended June 30, 1998, we increased our holdings in the
media, cable and finance sectors. These sectors continue to benefit from
positive earnings and merger activity.
OUTLOOK
We anticipate slowing global growth and continued benign inflation as Asia
exports cheaper goods to the world and imports less from abroad. With inflation
subdued, we expect monetary policy in the United States, Germany and Japan to
remain substantially unchanged for most of 1998. The current slowing of growth
in the U.S. is expected to continue, with 1998 Gross Domestic Product (GDP)
estimated around 3.0%. Strong domestic demand will continue to be offset by
weakening industrial production. We anticipate that U.S. interest rates will
remain low as the U.S. fixed income markets continue to provide a safe haven
for investors during periods of volatility overseas.
Without substantial government spending, the Japanese economy is expected to
shrink by 1% this year. Japan's financial and economic difficulties require
structural reforms that will take time in a political context that is currently
without strong leadership. In Europe, growth is expected to slow to 2.5% in
1998 and inflation should remain subdued. Modest rate increases are possible
prior to the January 1999 launch of European Monetary Union.
The emerging markets face challenging problems that require time and economic
growth for resolution. Growth in Japan, the world's second largest economy, is
critical if the emerging countries are to resume their process of global
integration. We still see no concrete signs of a turnaround as the political
process continues to be ill defined and ill equipped to meet the needs of the
economy. Russia in particular will continue to add uncertainty to the emerging
markets as it struggles with the devaluation of the ruble and the repayment
requirements of existing Russian debt obligations. Although Russia is not
critically important to the world's economic prospects, it will continue to
have a significant influence on other emerging debt countries. We are currently
evaluating the political and economic events as they unfold in order to assess
the prospects for Russian debt to rebound. Presently, we are maintaining the
Fund's Russian debt positions, which currently comprise 1.3% of the Fund's
portfolio, with little change.
The corporate bond sector will continue to experience periods of increased
volatility as a result of the impact
2
ALLIANCE BOND FUND CORPORATE BOND PORTFOLIO
_______________________________________________________________________________
from economic turmoil in Asia, other emerging markets and Japan. Concern about
these weakening economies and their affect on the corporate bond market may
continue to grow.
Thank you for your continued interest and investment in the Alliance Bond Fund
Corporate Bond Portfolio. We look forward to reporting its progress to you in
the coming months.
Sincerely,
John D. Carifa
Chairman and President
Wayne D. Lyski
Senior Vice President
SHARES OF THE FUND ARE NOT DEPOSITS OR OBLIGATIONS OF, GUARANTEED OR ENDORSED
BY, ANY BANK; FURTHER, SUCH SHARES ARE NOT FEDERALLY INSURED BY THE FEDERAL
DEPOSIT INSURANCE CORPORATION, THE FEDERAL RESERVE BOARD, OR ANY OTHER AGENCY.
SHARES OF THE FUND INVOLVE INVESTMENT RISKS, INCLUDING THE POSSIBLE LOSS OF
PRINCIPAL.
3
INVESTMENT OBJECTIVE AND POLICIES
ALLIANCE BOND FUND CORPORATE BOND PORTFOLIO
_______________________________________________________________________________
Alliance Bond Fund Corporate Bond Portfolio seeks primarily to maximize income
over the long-term consistent with providing reasonable safety in the value of
each shareholder's investment; secondarily, the Fund will seek capital
appreciation. It invests primarily in a diversified portfolio of corporate
bonds issued by domestic and foreign issuers that give promise of relatively
attractive yields.
INVESTMENT RESULTS
NAV AND SEC AVERAGE ANNUAL TOTAL RETURNS AS OF JUNE 30, 1998
CLASS A SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
------------ ------------
One Year 8.66% 4.04%
Five Years 9.41% 8.46%
10 Years 11.82% 11.34%
SEC Yield** 6.63%
CLASS B SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
------------ ------------
One Year 7.95% 4.95%
Five Years 8.67% 8.67%
Since Inception* 11.15% 11.15%
SEC Yield** 6.21%
CLASS C SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
------------ ------------
One Year 7.95% 6.95%
Five Years 8.67% 8.67%
Since Inception* 9.42% 9.42%
SEC Yield** 6.21%
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 (3% year 1, 2% year 2, 1% year 3, 0% 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.
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: 1/8/93 Class B; 5/3/93 Class C.
** SEC Yields are based on SEC guidelines and are calculated on 30 days ended
June 30, 1998.
4
ALLIANCE BOND FUND CORPORATE BOND PORTFOLIO
_______________________________________________________________________________
ALLIANCE BOND FUND CORPORATE BOND PORTFOLIO
GROWTH OF A $10,000 INVESTMENT
6/30/88 TO 6/30/98
$33,000
$29,000
$25,000
$21,000
$17,000
$13,000
$10,000
$9,000
CORPORATE BOND PORTFOLIO CLASS A: $29,266
LIPPER CORP. DEBT FUNDS BBB-RATED AVERAGE: $24,523
LBAGGREGATE BOND INDEX: $23,820
6/30/88 6/30/89 /30/90 6/30/91 6/30/92 6/30/93 6/30/94
6/30/95 6/30/96 6/30/97 6/30/98
This chart illustrates the total value of an assumed $10,000 investment in
Alliance Bond Fund Corporate Bond Portfolio Class A shares (from 6/30/88 to
6/30/98) as compared to the performance of an appropriate broad-based index.
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 and Class C 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 Lehman Brothers Aggregate Bond Index is composed of the
Mortgage-Backed Securities Index, the Asset-Backed Securities Index, and the
Government/Corporate Bond Index.
The Lipper Corporate Debt Funds BBB-Rated Average reflects performance of 19
funds (based on the number of funds in the average from 6/30/88 to 6/30/98).
These funds have generally similar investment objectives to Alliance Bond Fund
Corporate Bond Portfolio, although the investment policies of some funds
included in the average may vary.
When comparing Alliance Bond Fund Corporate Bond Portfolio to the index and
average shown above, you should note that no charges or expenses are reflected
in the performance of the index. Lipper results include fees and expenses.
Corporate Bond Portfolio
Lehman Brothers Aggregate Bond Index
Lipper Corp. Debt Funds BBB-Rated Avg.
5
PORTFOLIO OF INVESTMENTS
JUNE 30, 1998 ALLIANCE BOND FUND CORPORATE BOND PORTFOLIO
_______________________________________________________________________________
STANDARD & PRINCIPAL
POOR'S AMOUNT
RATINGS (A) (000) VALUE
- -------------------------------------------------------------------------
CORPORATE DEBT
OBLIGATIONS-71.3%
AUTOMOTIVE-2.4%
BB+ Federal Mogul Corp.
7.875%, 7/01/10 $ 35,000 $ 35,043,750
BANKING-3.0%
Baa3 FBOP Capital Trust I
10.20%, 2/06/27 (b)(c) 23,000 25,634,834
BB+ Northfork Capital Trust I
8.70%, 12/15/26 16,230 18,029,696
-------------
43,664,530
BROADCASTING/MEDIA-7.5%
BBB- News America, Inc.
7.30%, 4/30/28 (b) 55,000 56,755,160
Baa3 Time Warner, Inc.
6.95%, 1/15/28 (c) 50,000 50,845,550
-------------
107,600,710
COMMUNICATIONS-13.5%
BBB- Comcast Cable Communications
8.875%, 5/01/17 40,525 49,223,934
BB+ Paramount Communications, Inc.
7.50%, 7/15/23 31,176 31,273,144
BBB- TCI Communications, Inc.
6.875%, 2/15/06 32,000 33,172,992
7.875%, 2/15/26 26,820 30,208,761
A- U.S. West Capital Funding, Inc.
6.875%, 7/15/28 30,000 30,239,820
NR Winstar Communications, Inc.
10.00%, 3/15/08 (b) 9,500 9,476,250
11.00%, 3/15/08 (b) 10,000 9,997,000
-------------
193,591,901
FINANCIAL-16.6%
B- Advanta Capital Trust I
8.99%, 12/17/26 (b) 12,000 10,281,948
BB Dime Capital Trust I
Series A
9.33%, 5/06/27 36,075 40,901,474
A Nationsbank Corp.
6.80%, 3/15/28 47,700 48,923,505
BBB Renaissance Capital Trust
8.54%, 3/01/27 19,470 20,930,250
BBB- Selkirk Cogen Funding Corp.
8.98%, 6/26/12 30,000 34,632,000
BBB- Sumitomo Bank Treasury Co.
9.40%, 12/29/49 (b) 35,500 34,989,759
BB+ Tokai Capital, LLC
9.98%, 12/29/49 (b) 51,300 47,584,392
-------------
238,243,328
HEALTHCARE-1.6%
BBB Healthsouth Corp.
7.00%, 6/15/08 (b) 22,500 22,307,985
INDUSTRIAL-4.6%
B1 CSN Iron Brazil, SA
9.125%, 6/01/07 (b)(c) 42,500 34,106,250
BBB Raytheon Co.
7.20%, 8/15/27 30,000 32,600,070
66,706,320
INSURANCE-8.6%
BBB Arkwright CSN Trust
9.625%, 8/15/26 (b) 38,500 45,798,329
BBB- Delphi Funding LLC
Series A
9.31%, 3/25/27 25,000 27,921,225
A+ Liberty Mutual Insurance
7.697%, 10/15/97 (b) 45,000 49,752,405
-------------
123,471,959
PUBLIC UTILITIES-7.5%
BB+ CalEnergy Co., Inc.
7.63%, 10/15/07 46,000 46,193,430
A+ Consolidated Edison
Series 94-A
7.125%, 2/15/29 22,000 22,562,540
BB+ El Paso Electric Co.
8.90%, 2/01/06 19,000 21,280,000
BB- Niagara Mohawk Power Corp.
7.625%, 10/01/05 16,600 16,932,000
-------------
106,967,970
6
ALLIANCE BOND FUND CORPORATE BOND PORTFOLIO
_______________________________________________________________________________
STANDARD & PRINCIPAL
POOR'S AMOUNT
RATINGS (A) (000) VALUE
- -------------------------------------------------------------------------
RETAIL-2.7%
BBB+ Dayton Hudson Corp.
6.75%, 1/01/28 $38,000 $ 38,570,304
TRANSPORTATION-3.3%
BBB United Airlines
9.56%, 10/19/18 37,716 47,956,460
Total Corporate Debt Obligations
(cost $1,002,307,910) 1,024,125,217
SOVEREIGN DEBT OBLIGATIONS-7.2%
BRAZIL-1.8%
BB- Republic of Brazil
9.375%, 4/07/08 10,000 8,870,000
10.125%, 5/15/27 20,000 17,240,000
-------------
26,110,000
MEXICO-2.0%
BBB United Mexican States
11.50%, 5/15/26 25,000 28,418,750
RUSSIA-3.4%
BB- Russian Ministry of Finance
12.75%, 6/24/28 (b) 20,000 17,875,000
NR Russian IAN
6.625%, 12/15/15 1,140 633,947
NR Russian Principal Loans FRN
6.625%, 12/15/20 (d) 65,000 30,283,500
-------------
48,792,447
Total Sovereign Debt Obligations
(cost $122,554,127) 103,321,197
YANKEES-14.9%
BANKING-1.3%
BBB Dao Heng Bank, Ltd.
7.75%, 1/24/07 (b) 23,500 19,032,462
COMMUNICATIONS-3.1%
BBB- Telefonica de Argentina, SA
9.125%, 5/07/08 (b) 29,000 27,405,000
11.875%, 11/01/04 15,220 16,361,500
-------------
43,766,500
FINANCIAL-2.1%
BBB MC Cuernavaca Trust
9.25%, 7/25/01 (b) 33,208 30,550,614
GAS-1.6%
BBB- Transgas de Occidental, SA
9.79%, 11/01/10 (b) 22,588 22,531,364
INDUSTRIAL-3.1%
C Grupo Mexicano de Desarrollo, SA
8.25%, 2/17/01 (c)(e) 29,200 5,840,000
BB+ Reliance Industries, Ltd.
9.375%, 6/24/26 (b) 40,000 38,700,000
-------------
44,540,000
REAL ESTATE-0.5%
BB Guangzhou Shenzhen
10.25%, 8/15/07 10,000 7,756,000
UTILITIES-3.2%
BB+ Empresa Electrica Del Norte, SA
7.75%, 3/15/06 (b) 38,240 32,379,720
BB+ Korea Electric Power Corp.
7.75%, 4/01/13 18,500 13,623,604
-------------
46,003,324
Total Yankees
(cost $245,298,178) 214,180,264
U.S. GOVERNMENT OBLIGATIONS-3.9%
AAA U.S. Treasury Bond
6.125%, 11/15/27 10,000 10,718,760
AAA U.S. Treasury Strip
Zero coupon, 5/15/20 160,000 46,011,360
Total U.S. Government Obligations
(cost $54,007,330) 56,730,120
7
PORTFOLIO OF INVESTMENTS (CONTINUED)
ALLIANCE BOND FUND CORPORATE BOND PORTFOLIO
_______________________________________________________________________________
SHARES OR
STANDARD & PRINCIPAL
POOR'S AMOUNT
RATINGS (A) (000) VALUE
- ------------------------------------------------------------------------
BBB+ NB Capital Corp.
8.35%
(cost $43,000,000) 43 $ 44,556,170
COMMERCIAL PAPER-1.0%
A-1+ General Electric Capital Corp.
5.60%, 7/01/98 (c)
(amortized cost $14,000,000) $14,000 14,000,000
PREFERRED STOCK-3.1%
FINANCIAL-3.1%
TOTAL INVESTMENTS-101.4%
(cost $1,481,167,545) 1,456,912,968
Other assets less liabilities-(1.4%) (19,611,724)
NET ASSETS-100% $1,437,301,244
(a) Unaudited
(b) Securities 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 buyers. At June 30, 1998, these securities
amounted to $535,158,472 or 37.2% of net assets.
(c) Moody's Rating
(d) Coupon consists of 3.3125% cash payment and 3.3125% paid-in-kind of
Russian IAN's.
(e) Security is in default and is non-income producing.
Glossary of terms:
FRN - Floating Rate Note
IAN - Interest Arrears Note
See notes to financial statements.
8
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1998 ALLIANCE BOND FUND CORPORATE BOND PORTFOLIO
_______________________________________________________________________________
ASSETS
Investments in securities, at value (cost $1,481,167,545) $1,456,912,968
Cash 9,811,870
Interest receivable 23,655,707
Receivable for capital stock sold 9,848,924
Dividends receivable 897,625
Receivable for investment securities sold 88,442
Prepaid expenses 17,169
Total assets 1,501,232,705
LIABILITIES
Payable for investment securities purchased 52,873,578
Payable for capital stock redeemed 6,075,756
Dividends payable 3,039,993
Distribution fee payable 880,703
Advisory fee payable 637,400
Accrued expenses 424,031
Total liabilities 63,931,461
NET ASSETS $1,437,301,244
COMPOSITION OF NET ASSETS
Capital stock, at par $101,312
Additional paid-in capital 1,478,893,451
Undistributed net investment income 1,664,395
Accumulated net realized loss on investment transactions (19,103,337)
Net unrealized depreciation of investments (24,254,577)
$1,437,301,244
CALCULATION OF MAXIMUM OFFERING PRICE
CLASS A SHARES
Net asset value and redemption price per share ($510,396,926/
35,972,098 shares of capital stock issued and outstanding) $14.19
Sales charge--4.25% of public offering price .63
Maximum offering price $14.82
CLASS B SHARES
Net asset value and offering price per share ($672,373,850/
47,399,813 shares of capital stock issued and outstanding) $14.19
CLASS C SHARES
Net asset value and offering price per share ($254,530,468/
17,940,039 shares of capital stock issued and outstanding) $14.19
See notes to financial statements.
9
STATEMENT OF OPERATIONS
YEAR ENDED JUNE 30, 1998 ALLIANCE BOND FUND CORPORATE BOND PORTFOLIO
_______________________________________________________________________________
INVESTMENT INCOME
Interest $101,360,629
Dividends 3,980,092
$105,340,721
EXPENSES
Advisory fee 6,774,012
Distribution fee - Class A 1,328,326
Distribution fee - Class B 5,773,033
Distribution fee - Class C 2,097,236
Transfer agency 1,635,082
Custodian 264,205
Printing 159,038
Audit and legal 122,270
Administrative 115,800
Registration 85,669
Taxes 69,761
Directors' fees 14,727
Miscellaneous 18,431
Total expenses 18,457,590
Net investment income 86,883,131
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on investment transactions 17,411,629
Net realized gain on written options transactions 282,969
Net change in unrealized depreciation of investments (14,341,150)
Net gain on investments 3,353,448
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 90,236,579
See notes to financial statements.
10
STATEMENT OF CHANGES
IN NET ASSETS ALLIANCE BOND FUND CORPORATE BOND PORTFOLIO
_______________________________________________________________________________
YEAR ENDED YEAR ENDED
JUNE 30, 1998 JUNE 30, 1997
------------- -------------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income $ 86,883,131 $67,267,838
Net realized gain on investments and options
transactions 17,694,598 45,535,746
Net change in unrealized depreciation of
investments (14,341,150) 12,490,228
Net increase in net assets from operations 90,236,579 125,293,812
DIVIDENDS ANDDISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A (32,980,257) (28,663,265)
Class B (39,538,622) (33,588,524)
Class C (14,364,252) (9,618,790)
Distributions in excess of net investment
income
Class A (3,979,895) -0-
Class B (4,771,327) -0-
Class C (1,733,407) -0-
CAPITAL STOCK TRANSACTIONS
Net increase 418,498,497 273,894,910
Total increase 411,367,316 327,318,143
NET ASSETS
Beginning of year 1,025,933,928 698,615,785
End of year (including undistributed net
investment income of $3,285,397 and
$1,077,850, respectively) $1,437,301,244 $1,025,933,928
See notes to financial statements.
11
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1998 ALLIANCE BOND FUND CORPORATE BOND PORTFOLIO
_______________________________________________________________________________
NOTE A: SIGNIFICANT ACCOUNTING POLICIES
Alliance Bond Fund, Inc. (the "Fund") is registered under the Investment
Company Act of 1940 as a diversified, open-end management investment company.
The Fund, which is a Maryland corporation, operates as a series company
currently comprised of two portfolios: the Corporate Bond Portfolio and the
U.S. Government Portfolio. Each series is considered to be a separate entity
for financial reporting and tax purposes. The financial statements and notes
include the operations of the Corporate Bond Portfolio (the "Portfolio") only.
The Portfolio offers three classes of shares: Class A, Class B and Class C
shares. Class A shares are currently sold with a front-end sales charge of up
to 4.25% for purchases not exceeding $1,000,000. With respect to purchases of
$1,000,000 or more, Class A shares redeemed within one year of purchase will be
subject to a contingent deferred sales charge of 1%. Class B shares are sold
with a contingent deferred sales charge which declines from 3% to zero
depending on the period of time the shares are held. Class B shares will
automatically convert to Class A shares six 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. All
three classes of shares have identical voting, dividend, liquidation and other
rights, except that each class bears different distribution expenses and has
exclusive voting rights with respect to its distribution plan. The financial
statements have been prepared in conformity with generally accepted accounting
principles which require management to make certain estimates and assumptions
that affect the reported amounts of assets and liabilities in the financial
statements and amounts of income and expenses during the reporting period.
Actual results could differ from those estimates. The following is a summary of
significant accounting policies followed by the Portfolio.
1. SECURITY VALUATION
Portfolio securities traded on a national securities exchange or on a foreign
securities exchange (other than foreign securities exchanges whose operations
are similar to those of the United States over-the-counter market) are
generally valued at the last reported sale price, or if there was no sale on
such day, the last bid price quoted on such day. If no bid prices are quoted,
then the security is valued at the mean of the bid and asked prices as obtained
on that day from one or more dealers regularly making a market in that
security. Securities traded on the over-the-counter market, securities listed
on a foreign securities exchange whose operations are similar to the United
States 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 closing bid and asked prices provided by two or more dealers
regularly making a market in such securities. U.S. government securities and
other debt securities which mature in 60 days or less are valued at amortized
cost unless this method does not represent fair value. Securities for which
market quotations are not readily available are valued at fair value as
determined in good faith by, or in accordance with procedures approved by, the
Board of Directors. Fixed income securities may be valued on the basis of
prices provided by a pricing service when such prices are believed to reflect
the fair market value of such securities.
2. TAXES
It is the Portfolio'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 ex-dividend date. Interest income is accrued
daily. Investment transactions are accounted for on the date securities are
purchased or sold. The Portfolio 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 Portfolio are borne on a
pro-rata basis by each settled class of shares, based on the proportionate
interest in the Portfolio represented by the net assets of such class, except
that the Portfolio's Class B and Class C shares bear higher distribution and
transfer agent fees than Class A shares.
5. DIVIDENDS AND DISTRIBUTIONS
Dividends and distributions to shareholders are recorded on the ex-dividend
date.
12
ALLIANCE BOND FUND CORPORATE BOND PORTFOLIO
_______________________________________________________________________________
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.
During the current fiscal year, permanent differences, primarily due to
distributions in excess of net investment income, resulted in a net increase in
undistributed net investment income and accumulated net realized loss on
investment transactions and a corresponding decrease in additional paid-in
capital. This reclassification had no effect on net assets.
NOTE B: ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under the terms of an investment advisory agreement, the Portfolio pays
Alliance Capital Management L.P. (the "Adviser"), an advisory fee at a annual
rate of .625 of 1% of the first $500 million and .50 of 1% in excess of $500
million of the Portfolio's average daily net assets. The fee is accrued daily
and paid monthly.
Pursuant to the advisory agreement, the Portfolio paid $115,800 to the Adviser
representing the cost of certain legal and accounting services provided to the
Portfolio by the Adviser for the year ended June 30, 1998.
The Portfolio 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 Portfolio.
Such compensation amounted to $1,186,735 for the year ended June 30, 1998.
Alliance Fund Distributors, Inc. (the "Distributor"), a wholly-owned subsidiary
of the Adviser, serves as the Distributor of the Portfolio's shares. The
Distributor received front-end sales charges of $211,204 from the sales of
Class A shares and $21,508, $570,591 and $77,109 in contingent deferred sales
charges imposed upon redemptions by shareholders of Class A, Class B and Class
C shares, respectively, for the year ended June 30, 1998.
NOTE C: DISTRIBUTION SERVICES AGREEMENT
The Portfolio has adopted a Distribution Services Agreement (the "Agreement")
pursuant to Rule 12b-1 under the Investment Company Act of 1940. Under the
Agreement, the Portfolio pays a distribution fee to the Distributor at an
annual rate of up to .30 of 1% of the Portfolio'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. 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 Portfolio in the amount of $13,555,599 and $2,876,562
for Class B and Class C shares, respectively; such costs may be recovered from
the Portfolio in future periods as 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 Portfolio's shares.
NOTE D: INVESTMENT TRANSACTIONS
Purchases and sales of investment securities (excluding short-term investments
and U.S. government obligations) aggregated $2,556,792,168 and $2,075,519,447,
respectively, for the year ended June 30, 1998. There were purchases of
$912,437,537 and sales of $930,383,796 of U.S. government and government agency
obligations for the year ended June 30, 1998.
At June 30, 1998, the cost of investments for federal income tax purposes was
$1,487,349,000. Accordingly, gross unrealized appreciation of investments was
13
NOTES TO FINANCIAL STATEMENTS (CONT.)
ALLIANCE BOND FUND CORPORATE BOND PORTFOLIO
_______________________________________________________________________________
$42,368,803 and gross unrealized depreciation of investments was $72,804,835
resulting in net unrealized depreciation of $30,436,032.
At June 30, 1998, the Portfolio had a net capital loss carryforward for federal
income tax purposes of $6,334,555, of which $2,817,216 expires in the year 2003
and $3,517,339 expires in the year 2004.
1. OPTIONS TRANSACTIONS
For hedging and investment purposes, the Portfolio purchases and writes (sells)
put and call options on debt securities that are traded on U.S. and foreign
securities exchanges and over-the-counter markets.
The risk associated with purchasing an option is that the Portfolio pays a
premium whether or not the option is exercised. Additionally, the Portfolio
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 Portfolio writes an option, the premium received by the Portfolio 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 Portfolio 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 in
determining whether the Portfolio has realized a gain or loss. If a put option
is exercised, the premium received reduces the cost basis of the security
purchased by the Portfolio. In writing an option, the Portfolio bears the
market risk of an unfavorable change in the price of the security underlying
the written option. Exercise of an option written by the Portfolio could result
in the Portfolio selling or buying a security at a price different from the
current market value.
Transactions in written options for the year ended June 30, 1998 were as
follows:
NUMBER OF
CONTRACTS PREMIUMS
--------- --------
Options oustanding at beginning of year -0- $ -0-
Options written 130,000 1,808,422
Options terminated in closing purchase transactions (65,000) (1,001,000)
Options expired -0- -0-
Options exercised (65,000) (807,422)
Options outstanding at June 30, 1998 -0- $ -0-
14
ALLIANCE BOND FUND CORPORATE BOND PORTFOLIO
_______________________________________________________________________________
NOTE E: CAPITAL STOCK
There are 750,000,000 shares of $.001 par value capital stock authorized,
divided into three classes, designated Class A, Class B and Class C shares.
Each class consists of 250,000,000 authorized shares. Transactions in capital
stock were as follows:
SHARES AMOUNT
--------------------------- ------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
JUNE 30, JUNE 30, JUNE 30, JUNE 30,
1998 1997 1998 1997
------------ ------------ -------------- --------------
CLASS A
Shares sold 13,329,444 7,284,369 $191,806,767 $100,560,914
Shares issued in
reinvestment of
dividends and
distributions 1,434,669 1,088,659 20,673,923 15,092,550
Shares converted from
Class B 1,245,638 882,859 17,903,380 12,218,491
Shares redeemed (6,171,084) (3,997,163) (88,725,044) (55,154,472)
Net increase 9,838,667 5,258,724 $141,659,026 $72,717,483
CLASS B
Shares sold 19,913,781 13,809,148 $286,380,021 $190,717,837
Shares issued in
reinvestment of
dividends and
distributions 1,579,489 1,108,727 22,757,300 15,370,487
Shares converted to
Class A (1,245,638) (882,859) (17,903,380) (12,218,491)
Shares redeemed (6,696,392) (5,635,584) (96,372,328) (77,903,904)
Net increase 13,551,240 8,399,432 $194,861,613 $115,965,929
CLASS C
Shares sold 11,907,869 9,879,749 $171,701,245 $137,855,734
Shares issued in
reinvestment of
dividends and
distributions 773,490 356,660 11,154,530 4,970,992
Shares redeemed (7,056,779) (4,174,633) (100,877,917) (57,615,228)
Net increase 5,624,580 6,061,776 $81,977,858 $85,211,498
15
FINANCIAL HIGHLIGHTS ALLIANCE BOND FUND CORPORATE BOND PORTFOLIO
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH YEAR
<TABLE>
<CAPTION>
CLASS A
------------------------------------------------------------
YEAR ENDED JUNE 30,
------------------------------------------------------------
1998 1997 1996 1995 1994
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year $14.19 $13.29 $12.92 $12.51 $14.15
INCOME FROM INVESTMENT OPERATIONS
Net investment income 1.08(a) 1.15(a) 1.26 1.19 1.11
Net realized and unrealized gain (loss)
on investment transactions .12 .97 .27 .36 (1.36)
Net increase (decrease) in net asset
value from operations 1.20 2.12 1.53 1.55 (.25)
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (1.08) (1.22) (1.16) (1.14) (1.11)
Distributions in excess of net investment
income (.12) -0- -0- -0- (.03)
Distributions from net realized gains -0- -0- -0- -0- (.25)
Total dividends and distributions (1.20) (1.22) (1.16) (1.14) (1.39)
Net asset value, end of year $14.19 $14.19 $13.29 $12.92 $12.51
TOTAL RETURN
Total investment return based on net
asset value (b) 8.66% 16.59% 12.14% 13.26% (2.58)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (000's omitted) $510,397 $370,845 $277,369 $230,750 $219,182
Ratio of expenses to average net assets 1.05% 1.12% 1.20% 1.24% 1.30%
Ratio of net investment income to average
net assets 7.52% 8.34% 9.46% 9.70% 7.76%
Portfolio turnover rate 244% 307% 389% 387% 372%
</TABLE>
See footnote summary on page 18.
16
ALLIANCE BOND FUND CORPORATE BOND PORTFOLIO
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH YEAR
<TABLE>
<CAPTION>
CLASS B
------------------------------------------------------------
YEAR ENDED JUNE 30,
------------------------------------------------------------
1998 1997 1996 1995 1994
---------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year $14.19 $13.29 $12.92 $12.50 $14.15
INCOME FROM INVESTMENT OPERATIONS
Net investment income .98(a) 1.05(a) 1.15 1.11 1.02
Net realized and unrealized gain (loss)
on investment transactions .13 .98 .29 .36 (1.37)
Net increase (decrease) in net asset
value from operations 1.11 2.03 1.44 1.47 (.35)
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.98) (1.13) (1.07) (1.05) (1.04)
Distributions in excess of net investment
income (.13) -0- -0- -0- (.01)
Distribution from net realized gains -0- -0- -0- -0- (.25)
Total dividends and distributions (1.11) (1.13) (1.07) (1.05) (1.30)
Net asset value, end of year $14.19 $14.19 $13.29 $12.92 $12.50
TOTAL RETURN
Total investment return based on net
asset value (b) 7.95% 15.80% 11.38% 12.54% (3.27)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (000's omitted) $672,374 $480,326 $338,152 $241,393 $184,129
Ratio of expenses to average net assets 1.75% 1.82% 1.90% 1.99% 2.00%
Ratio of net investment income to average
net assets 6.80% 7.62% 8.75% 9.07% 7.03%
Portfolio turnover rate 244% 307% 389% 387% 372%
</TABLE>
See footnote summary on page 18.
17
FINANCIAL HIGHLIGHTS (CONTINUED)
ALLIANCE BOND FUND CORPORATE BOND PORTFOLIO
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH YEAR
<TABLE>
<CAPTION>
CLASS C
-------------------------------------------------------------
YEAR ENDED JUNE 30,
-------------------------------------------------------------
1998 1997 1996 1995 1994
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year $14.19 $13.29 $12.93 $12.50 $14.15
INCOME FROM INVESTMENT OPERATIONS
Net investment income .99(a) 1.04(a) 1.14 1.10 1.02
Net realized and unrealized gain (loss)
on investment transactions .12 .99 .29 .38 (1.37)
Net increase (decrease) in net asset
value from operations 1.11 2.03 1.43 1.48 (.35)
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.99) (1.13) (1.07) (1.05) (1.05)
Distributions in excess of net investment
income (.12) -0- -0- -0- -0-
Distribution from net realized gains -0- -0- -0- -0- (.25)
Total dividends and distributions (1.11) (1.13) (1.07) (1.05) (1.30)
Net asset value, end of year $14.19 $14.19 $13.29 $12.93 $12.50
TOTAL RETURN
Total investment return based on net
asset value (b) 7.95% 15.80% 11.30% 12.62% (3.27)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (000's omitted) $254,530 $174,762 $83,095 $51,028 $50,860
Ratio of expenses to average net assets 1.75% 1.82% 1.90% 1.84% 1.99%
Ratio of net investment income to average
net assets 6.83% 7.61% 8.74% 8.95% 6.98%
Portfolio turnover rate 244% 307% 389% 387% 372%
</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 charge are not reflected in the calculation of total investment
return. Total investment return calculated for a period less than one year is
not annualized.
18
REPORT OF ERNST & YOUNG LLP
INDEPENDENT AUDITORS ALLIANCE BOND FUND CORPORATE BOND PORTFOLIO
_______________________________________________________________________________
TO THE SHAREHOLDERS AND BOARD OF DIRECTORS
ALLIANCE BOND FUND CORPORATE BOND PORTFOLIO
We have audited the accompanying statement of assets and liabilities of
Alliance Bond Fund Corporate Bond Portfolio (one of the portfolios comprising
the Alliance Bond Fund, Inc.), including the portfolio of investments, as of
June 30, 1998, and the related statement of operations for the year then ended,
the statement of changes in net assets for each of the two years in the period
then ended, and the financial highlights for each of the periods indicated
therein. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of June
30, 1998, by correspondence with the custodian and brokers. An audit also
includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Alliance Bond Fund Corporate Bond Portfolio at June 30, 1998, the results of
its operations for the year then ended, the changes in its net assets for each
of the two years in the period then ended, and the financial highlights for
each of the indicated periods, in conformity with generally accepted accounting
principles.
New York, New York
August 4, 1998
19
ALLIANCE BOND FUND CORPORATE BOND PORTFOLIO
_______________________________________________________________________________
BOARD OF DIRECTORS
JOHN D. CARIFA, CHAIRMAN AND PRESIDENT
RUTH BLOCK (1)
DAVID H. DIEVLER (1)
JOHN H. DOBKIN (1)
WILLIAM H. FOULK, JR. (1)
DR. JAMES M. HESTER (1)
CLIFFORD L. MICHEL (1)
DONALD J. ROBINSON (1)
OFFICERS
WAYNE D. LYSKI, SENIOR VICE PRESIDENT
KATHLEEN A. CORBET, SENIOR VICE PRESIDENT
PAUL J. DENOON, VICE PRESIDENT
EDMUND P. BERGAN, JR., SECRETARY
MARK D. GERSTEN, TREASURER & CHIEF FINANCIAL OFFICER
JUAN J. RODRIGUEZ, CONTROLLER
CUSTODIAN
STATE STREET BANK & TRUST COMPANY
225 Franklin Street
Boston, MA 02110
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
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.
20
THE ALLIANCE FAMILY OF MUTUAL FUNDS
_______________________________________________________________________________
FIXED INCOME
Alliance Bond Fund
U.S. Government Portfolio
Corporate Bond Portfolio
Alliance Global Dollar Government Fund
Alliance Global Strategic Income Trust
Alliance High Yield Fund
Alliance Mortgage Securities Income Fund
Alliance Limited Maturity Government Fund
Alliance Multi-Market Strategy Trust
Alliance North American Government Income Trust
Alliance Short-Term Multi-Market Trust
Alliance Short-Term U.S. Government Fund
Alliance World Income Trust
TAX-FREE INCOME
Alliance Municipal Income Fund
California Portfolio
Insured California Portfolio
Insured National Portfolio
National Portfolio
New York Portfolio
Alliance Municipal Income Fund II
Arizona Portfolio
Florida Portfolio
Massachusetts Portfolio
Michigan Portfolio
Minnesota Portfolio
New Jersey Portfolio
Ohio Portfolio
Pennsylvania Portfolio
Virginia Portfolio
MONEY MARKET
AFD Exchange Reserves
GROWTH
The Alliance Fund
Alliance Global Environment Fund
Alliance Growth Fund
Alliance Premier Growth Fund
Alliance/Regent Sector Opportunity Fund
GROWTH & INCOME
Alliance Strategic Balanced Fund
Alliance Balanced Shares
Alliance Conservative Investors Fund
Alliance Growth & Income Fund
Alliance Growth Investors Fund
Alliance Income Builder Fund
Alliance Real Estate Investment Fund
Alliance Utility Income Fund
AGGRESSIVE GROWTH
Alliance Global Small Cap Fund
Alliance Quasar Fund
Alliance Technology Fund
INTERNATIONAL
Alliance All-Asia Investment Fund
Alliance Greater China '97 Fund
Alliance International Fund
Alliance International Premier Growth Fund
Alliance New Europe Fund
Alliance Worldwide Privatization Fund
CLOSED-END FUNDS
Alliance All-Market Advantage Fund
ACM Government Income Fund
ACM Government Opportunity Fund
ACM Government Securities Fund
ACM Government Spectrum Fund
ACM Managed Dollar Income Fund
ACM Managed Income Fund
ACM Municipal Securities Income Fund
Alliance World Dollar Government Fund
Alliance World Dollar Government Fund II
The Austria Fund
The Korean Investment Fund
The Spain Fund
The Southern Africa Fund
CASH MANAGEMENT SERVICES
ACM Institutional Reserves
Government Portfolio
Prime Portfolio
Tax-Free Portfolio
Trust Portfolio
Alliance Capital Reserves
Alliance Government Reserves
Alliance Insured Account
Alliance Money Reserves
Alliance Municipal Trust
California Portfolio
Connecticut Portfolio
Florida Portfolio
General Portfolio
Massachusetts Portfolio
New Jersey Portfolio
New York Portfolio
Virginia Portfolio
Alliance Treasury Reserves
Alliance Money Market Fund
Prime Portfolio
Government Portfolio
General Municipal Portfolio
21
ALLIANCE BOND FUND CORPORATE BOND PORTFOLIO
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.
CBPAR
