ALLIANCE GROWTH INVESTORS FUND
and
ALLIANCE CONSERVATIVE INVESTORS FUND
Annual Report
April 30, 1995
(cover)
LETTER TO SHAREHOLDERS ALLIANCE GROWTH INVESTORS AND
CONSERVATIVE INVESTORS FUNDS
- -------------------------------------------------------------------------------
June 15, 1995
Dear Shareholder:
We would again like to address both Alliance Growth Investors Fund and Alliance
Conservative Investors Fund in this letter, a practice that we began with our
December letter. We would also like to inform you that the portfolio manager
team for both portfolios has been changed.
Bruce Calvert, who is Alliance's Vice Chairman and Chief Investment Officer,
recently assumed responsibility for asset mix decisions. Mike Baldwin and Paul
Rissman are respectively managing the equity portfolios of Alliance Growth
Investors Fund and Alliance Conservative Investors Fund and Allison Martier
will continue to manage fixed income for both portfolios.
MARKET & ECONOMIC OUTLOOK
Evidence of a substantial slowing in economic activity has emerged over the
last few months as a result of restrictive Federal Reserve policy and a
slowdown in trade. In the months immediately ahead, the slowdown is expected to
continue as businesses attempt to reduce unwanted inventories by trimming
production schedules and employment.
We have reduced our growth expectations to reflect these trends and now look
for little or no growth in the second and third quarters of 1995. We do not,
however, believe that the economy is headed into recession. The trade picture
seems to be stabilizing, domestic consumers seem able and willing to spend and,
if necessary, the Federal Reserve will lower short-term interest rates,
particularly if inflation fears abate further. The budget debate, which won't
be resolved until September or October, is important in this regard; and for
now we're optimistic that real progress toward deficit reduction will be made.
Thus, the near-term economic outlook is relatively benign for financial
markets. Slower but steady and extended growth, coupled with diminished
inflation fears, suggest stable, or even slightly lower interest rates and
moderately high (16-18x) price earnings rates for common stocks.
GROWTH INVESTORS FUND
Alliance Growth Investors Fund has an equity range of 40-90% of assets and we
expect equities to average about 70% over time. The two primary determinants of
the asset mix are our analyses of the rates of return available in different
asset classes and of the cycle in the economy and financial markets.
Over much of last year we erred on the side of caution by holding below-average
exposure to common stocks and above-average exposure to fixed income and cash.
Our stock market concerns related to valuation in the context of high and
rising short-term interest rates, and to liquidity conditions due to the
strength of economic activity. These worries proved unfounded as economic
activity decelerated, freeing up liquidity and permitting a sharper than
anticipated decline in interest rates. Consequently, we increased the Fund's
equity exposure early in the second quarter of 1995 and performance over the
last few months is tracking expectations.
For the twelve- and six-month periods ended April 30, 1995, the following table
compares your Fund's total returns with that of the broad U.S. stock market,
represented by the unmanaged S&P 500-stock Index, and with its benchmark,
represented by a 70/30 composite of the S&P 500 and the unmanaged Lehman
Brothers Aggregate Bond Index, respectively:
Twelve Months Six Months
Through April 30, 1995
----------------------
ALLIANCE GROWTH INVESTORS FUND
Class A +5.57% +4.05%
Class B +4.83% +3.67%
Class C +4.91% +3.76%
S&P 500 +16.12% +10.45%
70/30 S&P 500/
LB Aggregate Bond Index +13.65% +9.75%
The Fund's total returns are based on the net asset values of each class of
shares as of April 30; additional investment results appear on page 3.
1
ALLIANCE GROWTH INVESTORS AND
CONSERVATIVE INVESTORS FUNDS
- -------------------------------------------------------------------------------
At this writing, the Fund is about 65% in common stocks. Five percentage points
of that is in foreign equities. Roughly 20% of the portfolio is in fixed income
with a market-like duration, and less than 15% is in cash. No immediate changes
in the mix are anticipated, but if equities appreciate significantly or the
economy shows signs of strong recovery we will again be more cautious.
CONSERVATIVE INVESTORS FUND
Alliance Conservative Investors Fund has an equity range of 10-50% of assets
and we expect equity exposure to average 30% over time. In further contrast to
Growth Investors, the equity portfolio is invested in generally less volatile
stocks and the Fund does not own foreign equities.
Our conservative stance toward equity exposure (described above) caused the
portfolio to lag comparable benchmarks for most of the year.
For the twelve- and six-month periods ended April 30, 1995, the following table
compares your Fund's total returns with that of the broad U.S. bond market,
represented by the unmanaged Lehman Brothers Aggregate Bond Index, and with its
benchmark, represented by a 70/30 composite of the Lehman Brothers Aggregate
Bond Index and the unmanaged S&P 500-stock Index, respectively:
Twelve Months Six Months
Through April 30, 1995
----------------------
ALLIANCE CONSERVATIVE INVESTORS FUND
Class A +4.65% +5.68%
Class B +3.91% +5.31%
Class C +4.01% +5.41%
LB Aggregate Bond Index +7.68% +8.11%
70/30 LB Aggregate Bond Index/S&P 500 +10.28% +8.81%
The Fund's total returns are based on the net asset values of each class of
shares as of April 30; additional investment results appear on page 5.
Currently, the Fund is about 20% in common stocks, 65% in fixed income with a
market like duration and 15% in cash.
We appreciate your investment in Alliance Growth Investors Fund and Alliance
Conservative Investors Fund and look forward to reporting their progress to you
in the coming months.
Sincerely,
John D. Carifa
Chairman and President
2
INVESTMENT RESULTS ALLIANCE GROWTH INVESTORS FUND
- -------------------------------------------------------------------------------
VERAGE ANNUAL TOTAL RETURN AS OF APRIL 30, 1995
CLASS A SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
------------ ------------
. One Year +5.57% +1.04%
. Since Inception* +8.68 +7.13
CLASS B SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
------------ ------------
. One Year +4.83% +0.83%
. Since Inception* +7.88 +7.30
CLASS C SHARES
. One Year +4.91%
. Since Inception* +2.62%
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: 5/4/92, Class A and Class B; 8/2/93 Class C.
3
INVESTMENT RESULTS ALLIANCE GROWTH INVESTORS FUND
- -------------------------------------------------------------------------------
NEW CHART TO COME
4
INVESTMENT RESULTS ALLIANCE CONSERVATIVE INVESTORS FUND
- -------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN AS OF APRIL 30, 1995
CLASS A SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
------------ ------------
. One Year +4.65% +0.21%
. Since Inception* +5.66 +4.15
CLASS B SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
------------ ------------
. One Year +3.91% -0.09%
. Since Inception* +4.90 +4.29
CLASS C SHARES
. One Year +4.01%
. Since Inception* +0.52
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: 5/4/92, Class A and Class B; 8/2/93 Class C.
5
ALLIANCE CONSERVATIVE INVESTORS FUND
- -------------------------------------------------------------------------------
NEW CHART TO COME
This chart illustrates the total value of an assumed investment in Alliance
Conservative Investors Fund Class A shares (since inception) after deducting
the maximum 4.25% sales charge, and with dividends and capital gains
reinvested. 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 Lehman Brothers Aggregate Bond Index is an unmanaged index composed of the
Mortgage-Backed Securities Index, the Asset-Backed Securities Index and the
Government/Corporate Bond Index. The Standard and Poor's 500-stock Index is an
unmanaged index that includes 500 U.S. stocks. It is a common measure of the
performance of the overall U.S. stock market. The comparison shown above
represents a 70/30 weighting.
When comparing Alliance Conservative Investors Fund to the two indexes shown
above, you should note that the Fund's performance reflects the maximum sales
charge of 4.25%, while no such charges are reflected in the performance of the
indexes.
Alliance Conservative Investors Fund
70% LBAggregate/30% S&P 500 Composite
LBAggregate
6
TEN LARGEST HOLDINGS
APRIL 30, 1995 ALLIANCE GROWTH INVESTORS FUND
- -------------------------------------------------------------------------------
PERCENT OF
COMPANY VALUE NET ASSETS
- -------------------------------------------------------------------------------
U.S. Treasury Notes $11,957,352 17.1%
Federal National Mortgage Association 2,342,000 3.4
U.S. Treasury Bonds 2,152,126 3.1
Government National Mortgage Association 2,115,178 3.0
Philip Morris Cos., Inc. 2,032,500 2.9
General Electric Co. 1,680,000 2.4
Gillette Co. 1,640,000 2.4
Medtronic, Inc. 1,413,125 2.0
Bank of New York Co., Inc. 1,315,000 1.9
Pfizer, Inc. 1,212,750 1.7
$27,860,031 39.9%
MAJOR PORTFOLIO CHANGES
SIX MONTHS ENDED APRIL 30, 1995
- -------------------------------------------------------------------------------
SHARES OR PRINCIPAL
-----------------------
HOLDINGS
PURCHASES BOUGHT 4/30/95
- -------------------------------------------------------------------------------
Federal National Mortgage Association, 8.00%, 4/01/25 $ 2,347,869 $2,347,869
Government National Mortgage Association, 7.00%,4/15/25 $ 1,428,000 $1,428,000
Merck & Co., Inc. 25,000 25,000
Pfizer, Inc. 14,000 14,000
U.S. Treasury Note, 7.25%, 2/15/98 $ 3,650,000 $3,650,000
U.S. Treasury Note, 7.125%, 9/30/99 $ 2,170,000 $2,170,000
U.S. Treasury Note, 7.75%, 12/31/99 $ 2,200,000 $2,200,000
U.S. Treasury Note, 7.875%, 11/15/04 $ 1,250,000 $1,250,000
U.S. Treasury Note, 7.50%, 2/15/05 $ 2,400,000 $2,400,000
U.S. Treasury Bond, 7.50%, 11/15/24 $ 1,690,000 $1,690,000
HOLDINGS
SALES SOLD 4/30/95
- -------------------------------------------------------------------------------
Caterpillar, Inc. 22,000 -0-
Dollar General Corp. 18,000 -0-
Government National Mortgage Association, 7.50%, 1/15/24 $ 878,000 -0-
Government National Mortgage Association, 7.00%, 6/15/24 $ 997,000 -0-
Government National Mortgage Association, 8.50%, 9/15/24 $ 750,000 -0-
Penney (J.C.) Co., Inc. 20,000 -0-
Sprint Corp. 22,000 -0-
U.S. Treasury Bond, 6.25%, 8/15/23 $ 2,295,000 -0-
U.S. Treasury Note, 6.50%, 5/15/97 $ 1,065,000 -0-
U.S. Treasury Note, 6.75%, 5/31/99 $ 2,630,000 -0-
7
TEN LARGEST HOLDINGS
APRIL 30, 1995 ALLIANCE CONSERVATIVE INVESTORS FUND
- -------------------------------------------------------------------------------
PERCENT OF
COMPANY VALUE NET ASSETS
- -------------------------------------------------------------------------------
U.S. Treasury Notes $21,378,466 41.9%
Government National Mortgage Association 6,667,261 13.0
U.S. Treasury Bonds 4,543,685 8.9
Premier Auto Trust, 7.15%, 2/04/99 1,498,594 2.9
General Motors Acceptance Corp., 1.00%, 10/15/02 1,366,703 2.7
Federal National Mortgage Association, 8.00%, 4/01/25 1,268,583 2.5
Georgia Pacific Corp., 8.25%, 3/01/23 1,252,251 2.4
Italy (Republic of), 6.875%, 9/27/23 1,071,187 2.1
General Electric Co. 504,000 1.0
Bank of New York Co., Inc. 493,125 1.0
$40,043,855 78.4%
MAJOR PORTFOLIO CHANGES
SIX MONTHS ENDED APRIL 30, 1995
- -------------------------------------------------------------------------------
PRINCIPAL
---------------------
HOLDINGS
PURCHASES BOUGHT 4/30/95
- -------------------------------------------------------------------------------
Federal National Mortgage Association, 8.00%, 4/01/25 $ 1,271,762 $1,271,762
Georgia Pacific Corp., 8.25%, 3/01/23 $ 1,300,000 $1,300,000
Government National Mortgage Association, 7.00%,4/15/25 $ 2,142,000 $2,142,000
Italy (Republic of), 6.875%, 9/27/23 $ 1,300,000 $1,300,000
Premier Auto Trust, 7.15%, 2/04/99 $ 1,500,000 $1,500,000
U.S. Treasury Bond, 7.625%, 2/15/25 $ 2,150,000 $2,150,000
U.S. Treasury Note, 7.25%, 2/15/98 $ 6,400,000 $6,400,000
U.S. Treasury Note, 7.75%, 12/31/99 $ 7,850,000 $7,850,000
U.S. Treasury Note, 7.875%, 11/15/04 $ 1,600,000 $1,600,000
U.S. Treasury Note, 7.50%, 2/15/05 $ 1,900,000 $1,900,000
HOLDINGS
SALES SOLD 4/30/95
- -------------------------------------------------------------------------------
Abbey National Treasury, 4.9375%, 3/10/99 $ 1,700,000 -0-
Chemical Banking Corp., 7.875%, 7/15/06 $ 1,100,000 -0-
Federal National Mortgage Association, 7.60%, 4/14/04 $ 1,200,000 -0-
Ford Motor Credit Co., 5.625%, 10/15/97 $ 1,000,000 -0-
Government National Mortgage Association,7.00%,12/15/23 $ 2,123,000 -0-
Government National Mortgage Association,8.50%,9/15/24 $ 2,199,000 -0-
Lehman Brothers Holdings, Inc., 4.50%, 2/10/96 $ 1,000,000 -0-
U.S. Treasury Bond, 7.50%, 11/15/24 $ 710,000 $2,290,000
U.S. Treasury Note, 6.50%, 5/15/97 $ 2,115,000 -0-
U.S. Treasury Note, 6.75%, 5/31/99 $ 6,900,000 -0-
8
PORTFOLIO OF INVESTMENTS
APRIL 30, 1995 ALLIANCE GROWTH INVESTORS FUND
- -------------------------------------------------------------------------------
COMPANY SHARES VALUE
- -------------------------------------------------------------------------------
COMMON STOCKS & OTHER INVESTMENTS-60.9%
UNITED STATES INVESTMENTS-54.0%
CONSUMER NONCYCLICALS-19.1%
BEVERAGES-0.8%
Coca-Cola Co. 10,000 $581,250
BROADCASTING-2.0%
Capital Cities ABC, Inc. 11,000 929,500
Central European Media Enterprises Ltd. 1,400 17,150
Comcast Corp., Cl. A 30,000 470,625
1,417,275
COMPUTERS-0.5%
COMPAQ Computer Corp. 8,000 304,000
DRUGS-3.3%
Merck & Co., Inc. 25,000 1,071,875
Pfizer, Inc. 14,000 1,212,750
2,284,625
ENTERTAINMENT & LEISURE-0.6%
Walt Disney Co. 8,000 443,000
FOOD-1.8%
IBP, Inc. 28,000 1,036,000
Kellogg Co. 3,000 190,500
1,226,500
HOSPITAL SUPPLIES & SERVICES-4.0%
Columbia HCA Healthcare Corp. 6,000 252,000
Medtronic, Inc. 19,000 1,413,125
U.S. Healthcare, Inc. 6,700 178,387
United Healthcare Corp. 26,300 953,375
2,796,887
SOAPS & TOILETRIES-2.4%
Gillette Co. 20,000 1,640,000
TOBACCO-3.7%
Philip Morris Cos., Inc. 30,000 $2,032,500
UST, Inc. 20,000 562,500
2,595,000
13,288,537
TECHNOLOGY-10.5%
COMPUTERS-0.5%
cisco Systems, Inc.* 8,000 318,500
ELECTRONICS-4.8%
Applied Materials, Inc.* 10,000 617,500
Linear Technology Corp. 10,000 593,750
Molex, Inc. 17,000 646,000
Motorola, Inc. 20,000 1,137,500
Silicon Graphics, Inc.* 10,000 375,000
3,369,750
OFFICE EQUIPMENT-0.9%
Oracle Systems Corp. 20,000 608,750
SEMI-CONDUCTORS & RELATED-0.4%
Intel Corp. 3,000 307,313
TELECOMMUNICATIONS-3.9%
ADC Telecommunications, Inc. 20,000 660,000
Air-Touch Communications, Inc.* 20,000 537,500
Andrew Corp.* 15,000 744,375
AT&T Corp. 10,000 507,500
MCI Communications Corp. 12,000 260,250
2,709,625
7,313,938
CREDIT SENSITIVE-5.9%
BANKS-3.4%
Bank of New York Co., Inc. 40,000 1,315,000
Citicorp 14,000 649,250
First Bank System, Inc. 11,000 445,500
2,409,750
FINANCIAL SERVICES-0.1%
Dean Witter, Discover & Co. 1,800 76,275
9
PORTFOLIO OF INVESTMENTS (CONTINUED) ALLIANCE GROWTH INVESTORS FUND
- -------------------------------------------------------------------------------
COMPANY SHARES VALUE
- -------------------------------------------------------------------------------
INSURANCE-2.4%
AFLAC, Inc. 20,000 $825,000
American International Group, Inc. 3,000 320,250
General Reinsurance Corp. 4,000 509,500
1,654,750
4,140,775
CONSUMER CYCLICALS-5.3%
AUTO RELATED-0.5%
Cooper Tire & Rubber 15,000 367,500
AUTO & TRUCKS-0.5%
AutoZone, Inc.* 15,000 346,875
BUSINESS SERVICES-0.4%
Browning Ferris Industries, Inc. 8,000 264,000
HOTELS & RESTAURANTS-0.2%
Wendy's International, Inc. 10,000 170,000
MISCELLANEOUS-0.7%
Hasbro, Inc. 15,000 476,250
RESTAURANTS & LODGING-1.6%
Marriot International Inc. 14,000 504,000
McDonald's Corp. 17,000 595,000
1,099,000
RETAIL - GENERAL-1.4%
May Department Stores Co. 12,000 435,000
Office Depot, Inc.* 24,000 546,000
981,000
3,704,625
CAPITAL GOODS-3.9%
ELECTRICAL EQUIPMENT-2.4%
General Electric Co. 30,000 1,680,000
INDUSTRIAL MACHINERY-0.6%
Tyco International, Ltd. 8,000 $420,000
MACHINERY-0.9%
Deere & Co. 8,000 656,000
2,756,000
BASIC MATERIALS-3.8%
CHEMICALS-2.0%
Hercules, Inc. 15,000 748,125
Morton International, Inc. 20,000 620,000
1,368,125
MINING & METALS-1.3%
Aluminum Co. of America 20,000 897,500
PAPER-0.5%
International Paper Co. 5,000 385,000
2,650,625
ENERGY-2.4%
OIL - DOMESTIC-1.1%
Phillips Petroleum Co. 22,000 770,000
XCL, Ltd.* 5,000 2,500
772,500
PIPELINES-1.3%
Enron Corp. 26,000 884,000
1,656,500
GENERAL BUSINESS-1.2%
BUSINESS SERVICES-1.2%
Manpower Inc. 10,000 333,750
Paychex, Inc. 11,000 524,563
858,313
BUSINESS SERVICES-1.1%
PROFESSIONAL SERVICES-1.1%
Reynolds & Reynolds Co., Cl. A 30,000 795,000
10
ALLIANCE GROWTH INVESTORS FUND
- -------------------------------------------------------------------------------
COMPANY SHARES VALUE
- -------------------------------------------------------------------------------
DIVERSIFIED-0.5%
Allied-Signal, Inc. 9,000 $356,625
BASIC INDUSTRIES-0.3%
CHEMICALS-0.3%
Union Carbide Corp. 5,000 160,000
Total United States Investments
(cost $34,369,869) 37,680,938
FOREIGN INVESTMENTS-6.9%
ARGENTINA-0.0%
YPF S.A. (ADS) 500 10,125
Oil & Gas Exploration
AUSTRALIA-0.2%
AAPC, Ltd. 15,000 7,964
Food Services & Lodging
Ampolex, Ltd.* 9,000 25,987
Oil - International
Biron Corp., Ltd. 10,000 5,091
Mining & Metals
Brambles Industries, Ltd. 1,000 9,863
Trucking & Shipping
Diamond Ventures, Ltd.* 30,000 3,710
Mining & Metals
Gwalia Consolidated, Ltd. 15,000 20,183
Mining & Metals
MacMahon Holdings. Ltd.* 25,000 7,819
Building & Construction
Westralian Sands 10,000 23,056
Miscellaneous
103,673
AUSTRIA-0.1%
Ams Austria Mikros 500 49,672
Miscellaneous
Vae Eisenbahnsyst 100 9,000
Electrical Equipment
58,672
BELGIUM-0.1%
Solvay Et Cie S.A. 70 38,030
Chemicals
Tessenderlo Chemie 100 $35,226
Chemicals
73,256
CANADA-0.8%
AIT Advanced Technology Corp. 3,000 28,961
Printing, Publishing & Broadcasting
BCE Inc. 500 15,813
Telecommunications
Cinar Films, Inc.* 4,000 30,156
Leisure Related
Maax, Inc. 1,500 12,688
Household Furniture & Appliances
MacMillan Bloedel, Ltd. 1,000 12,963
Building Materials & Forest Products
Magna International, Inc. 10,000 346,250
Machinery
Miramar Mining Corp.* 1,000 5,149
Mining & Metals
Nelvana Ltd.* 3,000 27,306
Leisure Related
Orbit Oil & Gas Ltd.* 10,000 8,605
Oil-International
Prime Resources Group, Inc.* 2,000 13,791
Mining & Metals
Royal Plastics Group Ltd.(a) 5,000 53,324
Building & Construction
555,006
CHILE-0.0%
Banco Osornoy La Un (ADR) 1,000 12,000
Banks
Empresas Telex Chile S.A. (ADR) 2,000 15,750
Utility-Telephone
Enersis S.A. (ADR)* 500 14,000
Utility-Electric
41,750
11
PORTFOLIO OF INVESTMENTS (CONTINUED) ALLIANCE GROWTH INVESTORS FUND
- -------------------------------------------------------------------------------
COMPANY SHARES VALUE
- -------------------------------------------------------------------------------
DENMARK-0.0%
Tele Danmark As 500 $26,090
Utility - Telephone
FINLAND-0.3%
Aamulehti Yhtymae OY-II 2,000 40,366
Printing, Publishing & Broadcasting
Coflexip S.A. (ADR) 1,088 32,776
Oil-Supplies & Construction
Enso-Gutzeit OY 6,000 54,072
Forest Products
Nokia AB OY Corp. pfd. 800 32,668
Telecommunications
Tamro Yhtymae OY AB 4,000 21,028
Hospital Supplies & Services
180,910
FRANCE-0.1%
Ecco Travail Temporary 500 33,273
Miscellaneous
Lafarge Coppee S.A. 300 23,382
Building & Construction
56,655
GERMANY-0.5%
Bayer Motoren Werk pfd. 54 19,866
Auto & Trucks
Bayer Motoren Werke AG 200 49,196
Auto & Trucks
Dresdner Bank AG 100 27,736
Banks
Fag Kugelfischer 30 3,809
Machinery
Fielmann AG pfd.* 1,000 40,900
Auto & Trucks
Gea AG 60 19,693
Machinery
Hach AG pfd. 50 21,532
Auto & Trucks
Mannesmann AG (ADR) 100 27,122
Telecommunications
Plettac AG 50 31,018
Building & Construction
Sgl Carbon 1,700 $67,813
Chemical - Specialty
Veba AG 50 18,611
Utility-Electric
327,296
HONG KONG-0.3%
Asia Pacific Resources Holding Ltd. 3,300 25,988
Paper
Dao Heng Bank Group, Ltd.* 5,000 12,789
Banks
Hong Kong and China Gas Co., Ltd.
warrants expiring 12/31/95* 300 32
Utility-Gas
Hong Kong Land Holdings 15,000 28,200
Real Estate
Hopewell Holdings 35,000 24,868
Real Estate
HSBC Holdings Plc.* 1,000 11,594
Banks
International Bank Of Asia 30,000 13,661
Banks
Jardine International Motor 10,000 10,205
Auto Related
Paul Y-ITC Construction Holdings, Inc.* 50,000 7,751
Building & Construction
Sing Tao Holdings, Ltd. 20,000 13,047
Printing, Publishing & Broadcasting
148,135
INDIA-0.0%
Gujarat Narmada Vy Fertilizers (GDR) (a) 1,000 8,908
Basic material
Shiram Indl. Enterprises, Ltd.* 2,400 21,600
Food
Shiram Indl. Enterprises, Ltd.
warrants expiring 4/01/96* 800 200
Food
30,708
12
ALLIANCE GROWTH INVESTORS FUND
- -------------------------------------------------------------------------------
COMPANY SHARES VALUE
- -------------------------------------------------------------------------------
IRELAND-0.2%
Allied Irish Bank 7,082 $32,796
Banks
Aran Energy 50,000 36,007
Energy
Crean James 5,000 18,785
Food
Heiton Holdings Plc. ord. 23,571 25,989
Building & Construction
Irish Continental Group 4,500 28,299
Trucking & Shipping
Ryan Hotels Plc 50,000 22,460
Food Services & Lodging
164,336
ITALY-0.1%
Industrie Natuzzi S.p.A., (ADS) 1,000 37,375
Household Products
La Rinascente S.p.A 3,000 16,612
Retail-General
Stet Societa Finanziaria
Telfonica S.p.A. 6,000 17,104
Utility-Telephone
71,091
JAPAN-2.5%
Akita Bank 3,150 27,176
Banks
Asahi Diamond Industria l2,000 29,749
Machinery
Bunkyodo Co. 300 10,353
Retail - General
Canon, Inc. 3,000 49,622
Office Equipment
Chodai Co. 1,000 34,509
Building & Construction
Chuoh Pack Ind. Co., Ltd. 1,000 7,378
Paper
Daiichi Corp. 1,200 26,703
Retail - General
Daikin Manufacturing Co. 1,000 17,374
Auto Related
Dainippon Ink & Chemical, Inc. 2,000 $9,996
Chemicals
DDI Corp. 5 44,029
Telecommunications
Denki Kagaku Kogyo 5,000 23,145
Chemicals
Eiden Sakakiya Co. 1,000 13,566
Conglomerates
Eyeful Home Technology 1,000 18,564
Building & Construction
Familymart Co. 300 14,280
Business Services
Fuji Electronics 1,000 24,514
Electronics
Fukuda Corp. 1,000 9,972
Building & Construction
Hachijuni Bank 1,000 12,733
Banks
Hitachi Metals, Ltd. 4,000 48,551
Soaps & Toiletries
Innotech Corp. 300 9,996
Electronics
Ishiguro Homa Corp. 1,000 19,040
Retail - General
Kaneshita Construction 2,000 29,036
Building & Construction
Kawasaki Kisen 1,000 3,582
Trucking & Shipping
Kawasaki Steel Co.* 2,000 8,092
Steel
Keihanshin Real Estate 2,000 16,089
Real Estate
Keyence Corp. 400 42,649
Machinery
Kinden Corp. 1,000 19,873
Building & Construction
Koa Fire & Marine 8,000 53,597
International
Mabuchi Motor Co. 500 33,022
Auto Related
Matsuyadenki Co. 1,000 10,948
Retail - General
13
PORTFOLIO OF INVESTMENTS (CONTINUED) ALLIANCE GROWTH INVESTORS FUND
- -------------------------------------------------------------------------------
Minebea Co., Ltd. 2,000 $14,827
Auto Related
Ministop Co. 1,000 22,015
Miscellaneous
Mitsubishi Bank 1,000 24,514
Banks
Mitsubishi Motors Corp. 2,000 18,587
Auto & Trucks
Mitsui Petrochemical Ind. 2,000 18,944
Chemicals
Murata Mfg Co., Ltd. 1,000 40,221
Electronics
Namura Shipbuildng 1,000 5,950
Industrial Machinery
National House Industrial 1,000 20,468
Building & Construction
New Oji Paper Co., Ltd.* 4,000 44,743
Paper
Nichiha Corp. 1,000 18,921
Building Materials & Forest Products
Nikon Corp. 1,000 8,520
Electronics
Nippon Electric Glass 1,100 19,504
Industrial Machinery
Nippon Sanso Corp. 7,000 37,068
Chemicals
Nippon Steel Corp. 2,000 7,949
Steel
Nippon Yakin Kogyo 1,000 5,831
Soaps & Toiletries
Noritz Corp. 2,000 40,697
Household Furniture & Appliances
Omron Corp. 1,000 19,635
Electrical Equipment
Oriental Construction 1,000 20,706
Building & Related
P S Corp. 1,300 25,680
Building & Construction
Promise Co. 200 8,734
Miscellaneous
Ricoh Elemex Corp. 1,000 $13,090
Office Equipment
Rohm Co. 1,000 46,290
Electric
Santen Pharmaceutical Co. 1,100 27,881
Hospital Supplies & Services
Sato Corp. 1,110 22,983
Retail - General
Sekichu Company 1,000 17,850
Retail - General
Sekisui Chemical Co. 2,000 24,990
Chemicals
Sharp Corp. 1,000 16,422
Household Furniture & Appliances
Showa Shell Sekiyu 1,000 12,733
Miscellaneous
SMC Corp. 600 31,772
Industrial Machinery
Sotoh Co. 1,000 15,470
Apparel & Textile
Takara Shuzo Co. 1,000 8,175
Food, Beverages & Tobacco
Takeda Chemical Industries 1,000 13,328
Chemicals
TDK Corp. 1,000 45,695
Electronics
Toda Corp. 2,000 21,420
Building & Construction
Toho Bank 4,000 31,891
Banks
Tokyo Broadcasting 3,000 48,194
Broadcasting
Tokyo Electron, Ltd. 1,000 31,177
Electronics
Tokyo Ohka Kogyo 1,000 31,177
Electronics
Toppan Printing Co., Ltd. 3,000 43,553
Printing, Publishing & Broadcasting
Wesco Investments, Ltd. 1,200 36,413
Building & Construction
14
ALLIANCE GROWTH INVESTORS FUND
- -------------------------------------------------------------------------------
COMPANY SHARES VALUE
- -------------------------------------------------------------------------------
Xebio Co. 300 $10,567
Retail - General
Yamanouchi Pharmaceudical 2,000 44,981
Hospital Supplies & Services
York Benimaru Co. 1,000 39,507
Household Products
1,727,211
KOREA-0.0%
Yukong, Ltd.*(a) 700 7,350
Oil - International
MALAYSIA-0.1%
C.I. Holdings Berhad 4,000 14,401
Building Materials & Forest Products
Hock Hua Bank Berhad 5,000 14,260
Banks
Kim Hin Ind. Berhad 750 191
Building & Construction
Malaysian Assurance 15,000 48,847
Insurance
77,699
MEXICO-0.0%
Groupo Finance Delaware Norte 4,000 5,178
Banks
Grupo Industrial Durango
S.A. de C V (ADR)* 2,000 16,000
Forest Products
21,178
NETHERLANDS-0.4%
AKZO N.V. 300 34,792
Chemicals
Asm Lithography Hl 1,100 30,475
Electronics
KLM 1,500 45,616
Auto & Trucks
Kon Ptt Nederland (a) 2,000 69,712
Utility - Telephone
Polygram N.V. 500 28,220
Leisure Related
Ver Ned Uitgevers 300 $33,554
Printing, Publishing & Broadcasting
Wolters Kluwer N.V. 300 24,412
Printing, Publishing & Broadcasting
266,781
NORWAY-0.1%
Norsk Hydro AS 500 20,345
Oil - International
Tomra Systems AS 12,000 44,109
Environmental Control
Western Bulk Shipping AS 2,500 12,239
Trucking & Shipping
Wilrig AS 2,000 15,570
Transportation
92,263
PHILIPPINES-0.0%
Banco Latinoamericano De Exp 1,000 31,000
Banks
SINGAPORE-0.1%
Elec. & Eltek Int'l Co., Ltd. 5,000 6,400
Electronics
Hong Leong Finance, Ltd. 5,000 15,859
Financial Services
Keppel Corp.. Ltd. 2,000 16,218
Machinery
Overseas Union Bank, Ltd. 2,600 15,020
Banks
53,497
SPAIN-0.3%
Acerinox S.A. 210 24,049
Mining & Metals
Banco Popular Espanol 200 27,322
Banks
Centros Commerciales Continente S.A.* 2,000 35,411
Retail-General
Corporacion Mapfre 1,000 43,858
International
15
PORTFOLIO OF INVESTMENTS (CONTINUED) ALLIANCE GROWTH INVESTORS FUND
- -------------------------------------------------------------------------------
COMPANY SHARES VALUE
- -------------------------------------------------------------------------------
Repsol S.A. 1,000 $31,837
Miscellaneous
Telefonica de Espana 1,000 12,223
Utility - Telephone
Viscofan Envolturas Celulosi 1,000 13,198
Foods
187,898
SWEDEN-0.2%
Astra Corp. Series A 1,000 29,180
Drugs
Autoliv AB (ADR)* (a) 700 31,456
Auto Related
Electrolux AB 500 25,532
Household Products
Kalmar Industries AB* (a) 2,000 27,390
Machinery
SSAB Svenskt Stal AB-B Free 500 22,023
Mining & Metals
Volvo AB 1,000 18,788
Auto & Trucks
154,369
SWITZERLAND-0.1%
BBC Brown Boveri AG 25 24,664
Miscellaneous
Schweizerischer Bankverein 30 9,866
Banks
34,530
TAIWAN-0.0%
Taiwan Fund, Inc. 800 17,200
Mutual Fund-Diversified
UNITED KINGDOM-0.4%
British Steel N.E. 5,000 13,598
Mining & Metals
Chloride Group Plc.* 40,000 12,552
Building & Related
SHARES OR
PRINCIPAL
AMOUNT
COMPANY (000) VALUE
- -------------------------------------------------------------------------------
Filtronic Comtek 20,000 $78,854
Telecommunications
Hanson PLC 10,000 38,059
Conglomerates
Johnson Matthey Plc. 1,000 8,779
Mining & Metals
Powerscreen International 7,000 31,542
Environmental Control
Tate & Lyle 5,000 34,841
Food
United Newspapers Plc. 2,068 16,474
Printing, Publishing & Broadcasting
WPP Group 15,000 26,794
Professional Services
Zeneca Group Plc. 3,000 43,607
Chemicals
305,100
Total Foreign Investments
(cost $4,693,766) 4,823,779
Total Common Stocks & Other Investments
(cost $39,063,635) 42,504,717
LONG TERM DEBT SECURITIES-29.8%
BASIC MATERIALS-0.9%
Georgia Pacific
8.25%, 3/01/23 $ 675 650,207
CREDIT SENSITIVE-0.7%
General Instrument Corp.
5.00%, 6/15/00 300 447,375
MISCELLANEOUS-0.9%
Boskalis Westminister
5.25%, 6/01/00 80 45,873
Italy (Republic of)
6.875%, 9/27/23 700 576,793
622,666
16
ALLIANCE GROWTH INVESTORS FUND
- -------------------------------------------------------------------------------
PRINCIPAL
AMOUNT
COMPANY (000) VALUE
- -------------------------------------------------------------------------------
MORTGAGE BACKED SECURITIES-6.4%
Federal National Mortgage Association
8.00%, 4/01/25 $2,348 $2,342,000
Government National Mortgage Association
7.00%, 12/15/23 807 763,490
7.00%, 4/15/25 1,428 1,351,688
4,457,178
RETAIL-0.7%
Lowe's Cos., Inc.
3.00%, 7/22/03 360 468,450
US GOVERNMENT-20.2%
U.S. Treasury Bonds
7.50%, 11/15/24 1,690 1,712,714
7.625%, 2/15/25 425 439,412
U.S. Treasury Notes
7.125%, 9/30/99 2,170 2,190,680
7.25%, 2/15/98 3,650 3,700,187
7.50%, 2/15/05 2,400 2,473,872
7.75%, 12/31/99 2,200 2,274,250
7.875%, 11/15/04 1,250 1,318,363
14,109,478
SHARES OR
PRINCIPAL
AMOUNT
COMPANY (000) VALUE
- -------------------------------------------------------------------------------
Total Long Term Debt Securities
(cost $20,503,891) $20,755,354
SHORT-TERM DEBT SECURITIES-9.2%
Federal Home Loan Mortgage Corp.
6.00%, 6/15/95 $ 250 248,125
5.85%, 5/02/95 6,200 6,199,328
Total Short-Term Debt Securities
(amortized cost $6,447,453) 6,447,453
INVESTMENT IN AFFILIATED ISSUERS-0.1%
FRANCE-0.1%
Axa 1,000 52,747
Insurance
(cost $49,921)
TOTAL INVESTMENTS-100.0%
(cost $66,064,900) 69,760,271
Other assets less
liabilities-0.0% 2,732
NET ASSETS-100% $69,763,003
* Non-income producing.
(a) 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 April 30, 1995,
these securities amounted to $198,140 or 0.3% of net assets.
Glossary of Terms:
ADR - American Depository Receipt
ADS - American Depository Security
GDR - Global Depository Receipt
See notes to financial statements.
17
PORTFOLIO OF INVESTMENTS
APRIL 30, 1995 ALLIANCE CONSERVATIVE INVESTORS FUND
- -------------------------------------------------------------------------------
COMPANY SHARES VALUE
- -------------------------------------------------------------------------------
COMMON STOCKS & OTHER INVESTMENTS-16.1%
CONSUMER NONCYCLICALS-4.9%
BEVERAGES-0.6%
Coca-Cola Co. 5,000 $290,625
DRUGS-0.9%
Merck & Co., Inc. 4,000 171,500
Pfizer, Inc. 3,000 259,875
431,375
ENTERTAINMENT & LEISURE-0.2%
Walt Disney Co. 2,000 110,750
FOOD-0.5%
IBP, Inc. 7,000 259,000
HOSPITAL SUPPLIES & SERVICES-1.0%
Columbia HCA Healthcare Corp. 1,000 42,000
Medtronic, Inc. 4,000 297,500
Schering-Plough Corp. 1,000 75,375
U.S. Healthcare, Inc. 1,400 37,275
United Healthcare Corp. 2,200 79,750
531,900
SOAPS & TOILETRIES-0.6%
Gillette Co. 4,000 328,000
TOBACCO-1.1%
Philip Morris Cos., Inc. 6,000 406,500
UST, Inc. 5,000 140,625
547,125
2,498,775
CREDIT SENSITIVE-3.8%
BANKS-1.3%
Bank of New York Co., Inc. 15,000 493,125
Citicorp 2,000 92,750
First Bank System, Inc. 2,000 81,000
666,875
FINANCIAL SERVICES-0.3%
American Express Co. 4,000 $139,000
Dean Witter, Discover & Co. 200 8,475
147,475
INSURANCE-1.3%
AFLAC, Inc. 10,000 412,500
American International Group, Inc. 1,000 106,750
General Reinsurance Corp. 1,000 127,375
646,625
UTILITY - TELEPHONE-0.9%
Ameritech Corp. 6,000 270,000
AT & T Corp. 4,000 203,000
473,000
1,933,975
BASIC MATERIALS-1.7%
ALUMINUM-0.3%
Aluminum Co. of America 4,000 179,500
CHEMICALS-0.9%
Hercules, Inc. 6,000 299,250
Morton International, Inc. 4,000 124,000
Union Carbide Corp. 1,000 32,000
455,250
PAPER-0.5%
International Paper Co. 3,000 231,000
865,750
ENERGY-1.4%
OIL-0.8%
Amoco Corp. 1,000 65,625
Mobil Corp. 2,000 189,750
Phillips Petroleum Co. 5,000 175,000
430,375
RAILROADS-0.1%
Conrail, Inc. 1,000 54,625
UTILITY - GAS-0.5%
Enron Corp. 5,000 170,000
18
ALLIANCE CONSERVATIVE INVESTORS FUND
- -------------------------------------------------------------------------------
COMPANY SHARES VALUE
- ---------------------------------------------------------------------------
NIPSCO Industries, Inc. 2,000 $64,500
234,500
719,500
CAPITAL GOODS-1.3%
ELECTRICAL-1.0%
General Electric Co. 9,000 504,000
MACHINERY-0.3%
Deere & Co. 2,000 164,000
668,000
CONSUMER CYCLICALS-1.2%
AUTO & TRUCKS-0.2%
General Motors Corp. Cl.E 1,000 43,250
Magna International, Inc. 1,000 34,625
77,875
PHOTO & OPTICAL-0.2%
Eastman Kodak Co. 2,000 115,000
RESTAURANTS & LODGING-0.3%
McDonald's Corp. 4,000 140,000
Wendy's International, Inc. 2,000 34,000
174,000
RETAIL - GENERAL-0.5%
Gap, Inc. 2,000 63,750
Hasbro, Inc. 2,000 63,500
May Department Stores Co. 4,000 145,000
272,250
639,125
BUSINESS SERVICES-0.8%
ENVIRONMENTAL CONTROL-0.1%
Browning Ferris Industries, Inc. 2,000 66,000
PRINTING, PUBLISHING & BROADCASTING-0.4%
Capital Cities ABC, Inc. 2,000 169,000
PROFESSIONAL
SERVICES-0.3%
Reynolds & Reynolds Co. 6,000 159,000
394,000
SHARES OR
PRINCIPAL
AMOUNT
COMPANY (000) VALUE
- ---------------------------------------------------------------------------
TECHNOLOGY-0.8%
COMPAQ Computer Corp. 1,000 $38,000
Molex, Inc. 4,000 152,000
Motorola, Inc. 4,000 227,500
417,500
DIVERSIFIED-0.2%
Allied Signal, Inc. 2,000 79,250
Total Common Stocks & Other Investments
(cost $7,368,404) 8,215,875
LONG-TERM DEBT SECURITIES-76.5%
CREDIT SENSITIVE-10.2%
General Motors Acceptance Corp.
1.00%, 10/15/02 $ 1,300 1,366,703
Georgia Pacific Corp.
8.25%, 3/01/23 1,300 1,252,251
Italy (Republic of)
6.875%, 9/27/23 1,300 1,071,187
Premier Auto Trust
7.15%, 2/04/99 1,500 1,498,594
5,188,735
MORTGAGE BACKED SECURITIES-15.5%
Federal National Mortgage Association
8.00%, 4/01/25 1,272 1,268,583
Government National Mortgage Association
7.00%, 4/15/23 266 251,485
7.00%, 6/15/23 281 265,550
7.00%, 2/15/24 2,455 2,324,090
7.00%, 4/15/25 2,142 2,027,531
7.50%, 11/15/23 1,844 1,798,605
7,935,844
U.S. GOVERNMENT-50.8%
U.S. Treasury Bonds
7.50%, 11/15/24 2,290 2,320,778
7.625%, 2/15/25 2,150 2,222,907
19
PORTFOLIO OF INVESTMENTS (CONTINUED) ALLIANCE CONSERVATIVE INVESTORS FUND
- -------------------------------------------------------------------------------
PRINCIPAL
AMOUNT
COMPANY (000) VALUE
- -------------------------------------------------------------------------------
U.S.Treasury Notes
7.125%, 9/30/99 $ 3,100 $3,129,543
7.25%, 2/15/98 6,400 6,488,000
7.50%, 2/15/05 1,900 1,958,482
7.75%, 12/31/99 7,850 8,114,937
7.875%, 11/15/04 1,600 1,687,504
25,922,151
Total Long-Term Debt Securities
(cost $38,673,950) 39,046,730
SHORT-TERM DEBT SECURITIES-6.4%
Federal Home Loan Mortgage Corp.
5.85%, 5/01/95
(amortized cost $3,300,000) $ 3,300 $3,300,000
TOTAL INVESTMENTS-99.0%
(cost $49,342,354) 50,562,605
Other assets less liabilities-1.0% 503,477
NET ASSETS-100% $51,066,082
See notes to financial statements.
20
STATEMENTS OF ASSETS AND LIABILITIES ALLIANCE GROWTH INVESTORS AND
APRIL 30, 1995 CONSERVATIVE INVESTORS FUNDS
- -------------------------------------------------------------------------------
GROWTH CONSERVATIVE
INVESTORS INVESTORS
FUND FUND
------------ ------------
ASSETS
Investments in securities, at value (cost
$66,064,900 and $49,342,354, respectively) $69,760,271 $50,562,605
Cash -0- 57,452
Receivable for investment securities and
foreign currency sold 2,311,201 1,167,574
Interest and dividends receivable 382,880 618,292
Receivable for shares of beneficial interest sold 137,454 29,285
Receivable due from Adviser 56,927 7,819
Deferred organization expenses 19,500 19,500
Total assets 72,668,233 52,462,527
LIABILITIES
Due to custodian 17,959 -0-
Payable for investment securities and
foreign currency purchased 2,684,029 1,260,321
Distribution fee payable 44,201 30,910
Payable for shares of beneficial interest redeemed 43,264 13,783
Accrued expenses 115,777 91,431
Total liabilities 2,905,230 1,396,445
NET ASSETS $69,763,003 $51,066,082
COMPOSITION OF NET ASSETS
Shares of beneficial interest, at par $58 $49
Additional paid-in capital 67,071,359 53,045,931
Undistributed net investment income 593,778 498,475
Accumulated net realized loss on investments and
foreign currency transactions (1,597,594) (3,698,418)
Net unrealized appreciation of investments and
other assets less liabilities 3,695,402 1,220,045
$69,763,003 $51,066,082
CALCULATION OF MAXIMUM OFFERING PRICE
CLASS A SHARES
Net asset value and redemption price per share
($22,188,537/1,837,412 and $16,104,549 / 1,551,155
shares of beneficial interest issued and outstanding,
respectively) $12.08 $10.38
Sales charge-4.25% of public offering price .54 .46
Maximum offering price $12.62 $10.84
CLASS B SHARES
Net asset value and offering price per share ($43,327,596/
3,584,279 and $30,542,458 / 2,905,089 shares of beneficial
interest issued and outstanding, respectively) $12.09 $10.51
CLASS C SHARES
Net asset value, redemption and offering price per share
($4,246,870 / 351,116 and $4,419,075 / 420,130 shares
of beneficial interest issued and outstanding,
respectively) $12.10 $10.52
See notes to financial statements.
21
STATEMENTS OF OPERATIONS ALLIANCE GROWTH INVESTORS AND
YEAR ENDED APRIL 30, 1995 CONSERVATIVE INVESTORS FUNDS
- -------------------------------------------------------------------------------
GROWTH ONSERVATIVE
INVESTORS INVESTORS
FUND FUND
------------ ------------
INVESTMENT INCOME
Interest $1,773,462 $2,967,732
Dividends 531,825 150,365
Total income 2,305,287 3,118,097
EXPENSES
Advisory fee 464,336 385,818
Distribution fee - Class A 58,355 47,590
Distribution fee - Class B 385,615 307,217
Distribution fee - Class C 38,982 48,572
Custodian 159,361 97,921
Transfer agency 140,054 95,859
Audit and legal 89,198 68,225
Registration 57,106 60,125
Printing 46,913 25,609
Trustees' fees 27,000 27,000
Amortization of organization expenses 10,950 10,950
Miscellaneous 36,558 12,010
Total expenses 1,514,428 1,186,896
Less: expenses waived and assumed by adviser
(See Note B) (350,235) (217,650)
Net expenses 1,164,193 969,246
Net investment income 1,141,094 2,148,851
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY
Net realized loss on investments and
options transactions (1,748,900) (3,216,833)
Net realized gain on foreign currency transactions 69,737 -0-
Net change in unrealized depreciation of investments 3,951,748 3,119,273
Net change in unrealized depreciation of foreign
currency denominated assets and liabilities 10,287 -0-
Net gain (loss) on investments 2,282,872 (97,560)
NET INCREASE IN NET ASSETS FROM OPERATIONS $3,423,966 $2,051,291
See notes to financial statements.
22
STATEMENTS OF CHANGES IN NET ASSETS ALLIANCE GROWTH INVESTORS AND
CONSERVATIVE INVESTORS FUNDS
- -------------------------------------------------------------------------------
GROWTH INVESTORS FUND CONSERVATIVE INVESTORS FUND
------------------------- ---------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
APRIL 30, APRIL 30, APRIL 30, APRIL 30,
1995 1994 1995 1994
----------- ----------- ----------- -----------
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS
Net investment income $1,141,094 $313,765 $2,148,851 $929,682
Net realized gain
(loss) on investments
and foreign currency
transactions (1,679,163) 121,229 (3,216,833) (47,183)
Net change in unrealized
appreciation(depreciation)
of investments and
foreign currency
denominated assets
and liabilities 3,962,035 (702,808) 3,119,273 (2,208,179)
Net increase (decrease)
in net assets from
operations 3,423,966 (267,814) 2,051,291 (1,325,680)
DIVIDENDS AND DISTRIBUTIONS
TO SHAREHOLDERS FROM:
Net investment income
Class A (254,436) (72,572) (685,964) (289,744)
Class B (345,858) (80,463) (1,045,681) (387,379)
Class C (35,052) (4,770) (168,380) (32,066)
Net realized gain
on investments
Class A (22,749) (74,093) -0- (184,501)
Class B (46,345) (159,336) -0- (334,032)
Class C (4,697) (3,179) -0- (23,205)
TRANSACTIONS IN SHARES OF
BENEFICIAL INTEREST
Net increase 16,138,284 40,069,758 1,247,586 37,695,255
Total increase 18,853,113 39,407,531 1,398,852 35,118,648
NET ASSETS
Beginning of year 50,909,890 11,502,359 49,667,230 14,548,582
End of year (including
undistributed net
investment income of
$593,778, $168,135,
$498,475 and $249,649,
respectively) $69,763,003 $50,909,890 $51,066,082 $49,667,230
See notes to financial statements.
23
NOTES TO FINANCIAL STATEMENTS ALLIANCE GROWTH INVESTORS AND
APRIL 30, 1995 CONSERVATIVE INVESTORS FUNDS
- -------------------------------------------------------------------------------
NOTE A: SIGNIFICANT ACCOUNTING POLICIES
Alliance Growth Investors Fund and Conservative Investors Fund (the 'Funds'),
two series of The Alliance Portfolios (the 'Trust'), are registered under the
Investment Company Act of 1940, as diversified, open-end investment companies.
Prior to August 2, 1993, the Trust was known as The Equitable Funds, and the
Funds were known as The Equitable Growth Investors Fund and Conservative
Investors Fund. Prior to August 2, 1993, each Fund offered two classes of
shares Class A and Class B. On August 2, 1993, the Board of Trustees approved
the creation of a third class of shares, Class C Shares. The Funds offer 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. Shares purchased before August 2, 1993 and redeemed within six
years of purchase are subject to different rates than shares purchased after
that date. 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, 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 Funds.
1. SECURITY VALUATION
Portfolio securities traded on national securities exchanges are valued at the
last sales price or, if no sale occurred, at the mean of the bid and asked
price at the regular close of the New York Stock Exchange. Securities traded on
the over-the-counter market are valued at the mean of the closing bid and asked
price. Securities for which current market quotations are not readily available
(including investments which are subject to limitations as to their sale) are
valued at their fair value as determined in good faith by the Board of
Trustees. The Board of Trustees has further determined that the value of
certain portfolio debt securities, other than temporary investments in
short-term securities, be determined by reference to valuations obtained from a
pricing service. Restricted securities are valued at fair value as determined
by the Board of Trustees. Securities which mature in 60 days or less are valued
at amortized cost, which approximates market value. The ability of issuers of
debt securities held by the Funds to meet their obligations may be affected by
economic developments in a specific industry or region.
2. CURRENCY TRANSLATION
Assets and liabilities denominated in foreign currencies are translated into
U.S. dollars at the mean of the quoted bid and asked price of the respective
currency against the U.S. dollar on the valuation date. 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 earned or accrued.
Net realized gain on foreign currency transactions of $69,737 for Growth
Investors Fund, represents net foreign exchange gains and losses from holdings
of foreign currencies, currency gains or losses realized between the trade and
settlement dates on security transactions, and the difference between the
amounts of dividends and foreign taxes recorded on the Fund's books and the
U.S. dollar equivalent amounts actually received or paid. Net unrealized
currency gains and losses from valuing foreign currency denominated assets and
liabilities at fiscal year end exchange rates are reflected as a component of
unrealized appreciation on investments and foreign currency denominated assets
and liabilities.
3. ORGANIZATION EXPENSES
Organization expenses of approximately $50,000 for each Fund have been deferred
and are being amortized on a straight-line basis through May, 1997.
4. OPTION WRITING
When the Fund writes an option, an amount equal to the premium received by the
Fund is recorded as a liability and is subsequently adjusted to the current
market value of the option written. Premiums received from writing options
which expire unexercised are recorded by the Funds on the expiration date as
realized gains. The difference between the premiun and the amount paid on
effecting a closing purchase transaction, including brokerage commissions, is
also treated as a realized gain, or if the premium is less than the amount paid
for the closing purchase transaction, as a realized loss. If a call option is
exercised, the premium is added to the proceeds from the sale in determining
whether the Fund has realized a gain or loss. As a writer of options, the Fund
bears
24
ALLIANCE GROWTH INVESTORS AND
CONSERVATIVE INVESTORS FUNDS
- -------------------------------------------------------------------------------
the risk of unfavorable changes in the price of the financial instruments
underlying the options.
5. 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.
6. 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 and amortizes premiums as adjustments
to interest income.
7. DIVIDENDS AND DISTRIBUTIONS
Dividends and distributions to shareholders are recorded on the ex-dividend
date.
8. INCOME AND EXPENSES
All income earned and expenses incurred by a Fund are borne on a pro-rata basis
by each outstanding class of shares, based on the proportionate interest in the
Fund represented by the shares of such Class, except that each Funds' Class B
and Class C shares bear higher distribution and transfer agent fees. Expenses
attributable to a single Fund are charged to that Fund. Expenses of the Trust
are charged to each Fund in proportion to net assets.
NOTE B: ADIVSORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Prior to July 22, 1993 Equitable Capital Management Corporation (Equitable
Capital) served as the investment adviser to the Trust. On July 22, 1993,
Alliance Capital Management, L.P. (Alliance) acquired the business and
substantially all of the assets of Equitable Capital and became the investment
adviser to the Trust.
Under the terms of an investment advisory agreement, the Funds pays Alliance an
advisory fee at an annual rate of .75% of the Fund's average daily net assets.
Under the old agreement the fee charged was the same. Such a fee is accrued
daily and paid monthly. The Investment Adviser has agreed, under the terms of
the investment advisory agreement, to voluntarily waive its fees and bear
certain expenses so that total expenses do not exceed on an annual basis 1.40%,
2.10% and 2.10% of average net assets, respectively, for the Class A, Class B
and Class C shares. Prior to August 2, 1993, the annual rate for Class B shares
was 2.15%. For the year ended April 30, 1995, such reimbursement amounted to
$350,235 and $217,650 for the Growth Investors and Conservative Investors Fund,
respectively. In addition to these voluntary arrangements, the Investment
Adviser will reduce its compensation, to the extent that expenses of the Funds
for any fiscal year (not including any distribution expenses paid by the Funds)
exceed the lowest applicable expense limitation prescribed by any state in
which the Fund's shares are qualified for sale. The Funds believe that the most
restrictive expense ratio limitation imposed by any state in which the Funds
has qualified its shares for sale is 2.5% of the first $30 million of the
Fund's 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.
The Funds have a Services Agreement with Alliance Fund Services, Inc. (a
wholly-owned subsidiary of the Adviser) to provide personnel and facilities to
perform transfer agency services for the Funds. Compensation under this
agreement amounted $97,970 and $58,940 for the Growth Investors and
Conservative Investors Funds, respectively for the year ended April 30, 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 $12,658 from the sale of Class A shares and $111,820
in contingent deferred sales charges imposed upon redemptions by shareholders
of Class B shares for the year ended April 30, 1995 for the Growth Investors
Fund. The Distributor also received front-end sales charges of $6,497 from the
sale of Class A shares and $131,358 in contingent deferred sales charges
imposed upon redemptions by shareholders of Class B shares for the year ended
April 30, 1995 for the Conservative Investors Fund.
25
NOTES TO FINANCIAL STATEMENTS (CONTINUED) ALLIANCE GROWTH INVESTORS AND
CONSERVATIVE INVESTORS FUNDS
- -------------------------------------------------------------------------------
Brokerage commissions paid on securities transactions for the year ended April
30, 1995 amounted to $143,563 and $3,758 for the Growth Investors and
Conservative Investors Funds, respectively, of which $33 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.
Trustees's fees and expenses payable included amounts owed to one of the
Trustees under the deferred compensation plan.
NOTE C: DISTRIBUTION SERVICES AGREEMENT
The Funds have adopted a Distribution Services Agreement (the 'Agreement')
pursuant to Rule 12b-1 under the Investment Company Act of 1940. Under the
Agreement, the Funds pay a distribution fee to the Distributor at an annual
rate of up to .50% of each Fund's average daily net assets attributable to
Class A shares and 1% of the average daily net assets attributable to both
Class B and Class C shares. Prior to August 2, 1993, Equico Securities served
as distributor to the Funds. The Funds paid a distribution fee to the
distributor at an annual rate of .25% of each Fund's average daily net assets
attributable to Class A shares. The Trustees currently limit payments under the
Class A plan to .30% of the Fund's aggregate average daily net assets
attributable to Class A shares. 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 Growth Investors Fund in the amount of
$1,129,165 and $124,579 for Class B and C shares, respectively. The Distributor
has also incurred expenses in excess of the distribution costs reimbursed by
the Conservative Investors Fund in the amount of $1,276,362 and $196,425,
respectively and for the Class B and Class C shares, respectively; such costs
may be recovered from each 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 each Fund's
shares.
NOTE D: INVESTMENT TRANSACTIONS
Purchases and sales of investment securities (excluding short-term investments)
for the Growth Investors Fund aggregated $91,295,274 and $62,800,691,
respectively, for the year ended April 30, 1995. There were purchases of
$34,604,273 and sales of $24,810,074 of U.S. Government and government agency
obligations for the year ended April 30, 1995. At April 30, 1995, the cost of
securities for federal income tax purposes for the Growth Investors Fund was
$66,095,352. Accordingly gross unrealized appreciation of investments was
$4,788,910 and gross unrealized depreciation of investments was $1,123,991
resulting in net unrealized appreciation of $3,664,919.
The Growth Investors 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. A forward exchange currency contract is a
commitment to purchase or sell a foreign currency at a future date at a
negotiated forward 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. Risks may arise
from the potential inability of a counter-party 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 April 30, 1995, there were no outstanding forward exchange
currency contracts.
Purchases and sales of investment securities (excluding short-term investments)
for the Conservative Investors Fund aggregated $108,535,724 and $98,995,442,
respectively, for the year ended April 30, 1995. There were purchases of
$73,553,555 and sales of $58,226,588 of U.S. Government and government agency
obligations for the year ended April 30, 1995. At April 30, 1995, the cost of
securities for federal income tax purposes for the Con-
26
ALLIANCE GROWTH INVESTORS AND
CONSERVATIVE INVESTORS FUNDS
- -------------------------------------------------------------------------------
servative Investors Fund was $49,536,512. Accordingly gross unrealized
appreciation of investments was $1,284,394 and gross unrealized depreciation of
investments was $258,301 resulting in net unrealized appreciation of $1,026,093.
NOTE E: SHARES OF BENEFICIAL INTEREST
There is an unlimited number of $0.00001 par value shares of beneficial
interest authorized divided into three classes, designated Class A, Class B and
Class C shares for both Funds. Transactions in shares of beneficial interest
were as follows:
ALLIANCE GROWTH INVESTORS FUND
----------------------------------------------------
SHARES AMOUNT
------------------------ --------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
APRIL 30, APRIL 30, APRIL 30, APRIL 30,
1995 1994 1995 1994
---------- ------------ ------------ ------------
CLASS A
Shares sold 878,301 1,224,513 $10,219,392 $14,527,190
Shares issued in
reinvestment of
dividends and
distributions 23,903 12,123 266,999 143,134
Shares redeemed (508,295) (101,933) (5,946,807) (1,218,333)
Net increase 393,909 1,134,703 $4,539,584 $13,451,991
CLASS B
Shares sold 1,384,786 2,121,895 $16,126,761 $25,302,089
Shares issued in
reinvestment of
dividends and
distributions 33,860 20,028 379,230 237,891
Shares redeemed (485,135) (192,181) (5,718,545) (2,290,398)
Net increase 933,511 1,949,742 $10,787,446 $23,249,582
ALLIANCE GROWTH INVESTORS FUND
-----------------------------------------------------
SHARES AMOUNT
------------------------- --------------------------
AUGUST 2, AUGUST 2,
YEAR ENDED 1993* TO YEAR ENDED 1993* TO
APRIL 30, APRIL 30, APRIL 30, APRIL 30,
1995 1994 1995 1994
----------- ------------ ------------ ------------
CLASS C
Shares sold 188,858 337,111 $2,197,932 $4,037,220
Shares issued in
reinvestment of
dividends and
distributions 3,451 670 38,687 7,927
Shares redeemed (122,670) (56,304) (1,425,365) (676,962)
Net increase 69,639 281,477 $811,254 $3,368,185
27
NOTES TO FINANCIAL STATEMENTS (CONTINUED) ALLIANCE GROWTH INVESTORS AND
CONSERVATIVE INVESTORS FUNDS
- -------------------------------------------------------------------------------
ALLIANCE CONSERVATIVE INVESTORS FUND
-----------------------------------------------------
SHARES AMOUNT
------------------------- --------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
APRIL 30, APRIL 30, APRIL 30, APRIL 30,
1995 1994 1995 1994
----------- ------------ ------------ ------------
Class A
Shares sold 548,552 1,189,333 $5,617,109 $13,031,463
Shares issued in
reinvestment of
dividends and
distributions 65,422 40,811 656,166 442,601
Shares redeemed (566,559) (221,331) (5,791,900) (2,381,952)
Net increase 47,415 1,008,813 $481,375 $11,092,112
CLASS B
Shares sold 798,920 2,302,220 $8,264,467 $25,384,220
Shares issued in
reinvestment of
dividends and
distributions 94,772 62,734 960,854 687,832
Shares redeemed (825,918) (374,172) (8,495,394) (4,077,813)
Net increase 67,774 1,990,782 $729,927 $21,994,239
ALLIANCE CONSERVATIVE INVESTORS FUND
------------------------------------------------------
SHARES AMOUNT
-------------------------- --------------------------
AUGUST 2, AUGUST 2,
YEAR ENDED 1993* TO YEAR ENDED 1993* TO
APRIL 30, APRIL 30, APRIL 30, APRIL 30,
1995 1994 1995 1994
------------ ------------ ------------ ------------
CLASS C
Shares sold 224,223 510,177 $2,320,546 $5,606,322
Shares issued in
reinvestment of
dividends and
distributions 15,711 4,767 159,243 51,975
Shares redeemed (237,610) (97,138) (2,443,423) (1,049,393)
Net increase 2,324 417,806 $36,366 $4,608,904
NOTE F: RECLASSIFICATION OF COMPONENTS OF NET ASSETS
In accordance with Statement of Position 93-2 Determination, Disclosure, and
Financial Statement Presentation of Income, Capital Gain and Return of Capital
Distributions by Investment Companies, permanent book and tax differences
relating to shareholder distributions have been reclassified to additional
paid-in capital. During the current period the accumulated undistributed net
investment income was charged and accumulated undistributed net realized gains
was credited for $80,105 for Alliance Growth Investors Fund. Net investment
income, net realized gains and net assets were not affected by this change.
NOTE G: TAXES
Capital and currency losses incurred after October 31 within the Fund's fiscal
year are deemed to arise on the first business day of the following fiscal
year. The Alliance Growth Investors Fund incurred and elected to defer post
October currency losses of $71,562 and capital losses of $447,337. The Alliance
Conservative Investors Fund incurred and elected to defer post October capital
losses of $812,541. At April 30, 1995, the Alliance Growth Investors Fund and
Conservative Investors Fund had net capital loss carryovers of approximately
$1,120,000 and $2,692,000, respectively. Such losses will be available to
offset capital gains arising through April 30, 2003. To the extent that any net
capital loss carryover or post-October loss is used to offset future capital
gains, it is probable that the gains so offset will not be distributed to
shareholders.
* Commencement of distribution.
28
FINANCIAL HIGHLIGHTS ALLIANCE GROWTH INVESTORS FUND
- -------------------------------------------------------------------------------
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD
CLASS A
--------------------------------
YEAR YEAR MAY 4,
ENDED ENDED 1992(A) TO
APRIL 30, APRIL 30, APRIL 30,
1995 1994 1993
--------- -------- ----------
Net asset value, beginning of period $11.61 $11.35 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income .25* .12* .20*
Net realized and unrealized gain on investments .38 .39 1.43
Net increase in net asset value from operations .63 .51 1.63
LESS: DISTRIBUTIONS
Dividends from net investment income (.15) (.11) (.16)
Distributions from net realized gains (.01) (.14) (.12)
Total dividends and distributions (.16) (.25) (.28)
Net asset value, end of period $12.08 $11.61 $11.35
TOTAL RETURN
Total investment return based on
net asset value (b) 5.57% 4.46% 16.32%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (000's omitted) $22,189 $16,759 $3,503
Ratios to average net assets of:
Expenses, net of waivers/reimbursements 1.40% 1.40% 1.40%(c)
Expenses, before waivers/reimbursements 1.97% 2.33% 4.27%(c)
Net investment income 2.32% 1.67% 1.91%(c)
Portfolio turnover rate 134% 96% 114%
<TABLE>
<CAPTION>
CLASS B CLASS C
--------------------------------- -----------------------
YEAR YEAR MAY 4, YEAR AUGUST 2,
ENDED ENDED 1992(A) TO ENDED 1993(D) TO
APRIL 30, APRIL 30, APRIL 30, APRIL 30, APRIL 30,
1995 1994 1993 1995 1994
-------- -------- ---------- -------- -----------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $11.65 $11.41 $10.00 $11.65 $11.88
INCOME FROM INVESTMENT OPERATIONS
Net investment income .17* .07* .07* .18* .08*
Net realized and unrealized gain
(loss) on investments .38 .37 1.45 .38 (.11)
Net increase (decrease) in net asset
value from operations .55 .44 1.52 .56 (.03)
LESS: DISTRIBUTIONS
Dividends from net investment income (.10) (.06) (.05) (.10) (.06)
Distributions from net realized gains (.01) (.14) (.06) (.01) (.14)
Total dividends and distributions (.11) (.20) (.11) (.11) (.20)
Net asset value, end of period $12.09 $11.65 $11.41 $12.10 $11.65
TOTAL RETURN
Total investment return based on
net asset value (b) 4.83% 3.84% 15.23% 4.91% (.26)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (000's omitted) $43,328 $30,871 $7,999 $4,247 $3,280
Ratios to average net assets of:
Expenses, net of waivers/reimbursements 2.10% 2.11% 2.15%(c) 2.10% 2.10%(c)
Expenses, before waivers/reimbursements 2.67% 3.00% 4.48%(c) 2.66% 3.02%(c)
Net investment income 1.62% .95% 1.07%(c) 1.62% 1.04%(c)
Portfolio turnover rate 134% 96% 114% 134% 96%
</TABLE>
See footnote summary on page 31.
29
FINANCIAL HIGHLIGHTS (CONTINUED) ALLIANCE CONSERVATIVE INVESTORS FUND
- -------------------------------------------------------------------------------
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD
CLASS A
--------------------------------
YEAR YEAR MAY 4,
ENDED ENDED 1992(A) TO
APRIL 30, APRIL 30, APRIL 30,
1995 1994 1993
--------- -------- ----------
Net asset value, beginning of period $10.37 $10.79 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income .48* .31* .39*
Net realized and unrealized gain
(loss) on investment (.02) (.26) .82
Net increase in net asset value
from operations .46 .05 1.21
LESS: DISTRIBUTIONS
Dividends from net investment income (.45) (.29) (.36)
Distributions from net realized gains -0- (.18) (.06)
Total dividends and distributions (.45) (.47) (.42)
Net asset value, end of period $10.38 $10.37 $10.79
TOTAL RETURN
Total investment return based
on net asset value (b) 4.65% .35% 12.25%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (000's omitted) $16,105 $15,595 $5,339
Ratios to average net assets of:
Expenses, net of waivers/reimbursements 1.40% 1.40% 1.40%(c)
Expenses, before waivers/reimbursements 1.83% 2.03% 3.45%(c)
Net investment income 4.66% 3.43% 3.92%(c)
Portfolio turnover rate 248% 133% 84%
<TABLE>
<CAPTION>
CLASS B CLASS C
--------------------------------- -----------------------
YEAR YEAR MAY 4, YEAR AUGUST 2,
ENDED ENDED 1992(A) TO ENDED 1993(D) TO
APRIL 30, APRIL 30, APRIL 30, APRIL 30, APRIL 30,
1995 1994 1993 1995 1994
-------- -------- ---------- -------- -----------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $10.47 $10.88 $10.00 $10.47 $11.12
INCOME FROM INVESTMENT OPERATIONS
Net investment income .46* .24* .24* .46* .18*
Net realized and unrealized gain (loss)
on investments (.02) (.26) .89 (.01) (.50)
Net increase (decrease) in net asset value
from operations .44 (.02) 1.13 .45 (.32)
LESS: DISTRIBUTIONS
Dividends from net investment income (.40) (.21) (.22) (.40) (.15)
Distributions from net realized gains -0- (.18) (.03) -0- (.18)
Total dividends and distributions (.40) (.39) (.25) (.40) (.33)
Net asset value, end of period $10.51 $10.47 $10.88 $10.52 $10.47
TOTAL RETURN
Total investment return based on
net asset value (b) 3.91% (.31)% 11.39% 4.01% (2.98)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (000's omitted) $30,542 $29,697 $9,210 $4,419 $4,375
Ratios to average net assets of:
Expenses, net of waivers/reimbursements 2.10% 2.11% 2.15%(c) 2.10% 2.10%(c)
Expenses, before waivers/reimbursements 2.52% 2.73% 3.95%(c) 2.52% 2.10%(c)
Net investment income 3.96% 2.72% 3.06%(c) 3.97% 2.94%(c)
Portfolio turnover rate 248% 133% 84% 248% 133%
</TABLE>
See footnote summary on page 31.
30
ALLIANCE GROWTH INVESTORS AND
CONSERVATIVE INVESTORS FUNDS
- -------------------------------------------------------------------------------
FOOTNOTE SUMMARY
* Net of fee waived and expenses reimbursed by Adviser.
(a) Commencement of operations.
(b) Total investment return is calculated assuming an initial investment made
at the net asset value at the beginning of the period, reinvestment of all
dividends and distributions at net asset value during the period, and
redemption on the last day of the period. Initial sales charges or contingent
deferred sales charges are not reflected in the calculation of total investment
return. Total investment return calculated for a period of less than one year
is not annualized.
(c) Annualized.
(d) Commencement of distribution.
Prior to July 22, 1993, Equitable Capital Management Corporation (Equitable
Capital) served as the investment adviser to the Trust. On July 22, 1993,
Alliance Capital Management L.P. acquired the business and substantially all of
the assets of Equitable Capital and became the investment adviser to the Trust.
31
REPORT OF INDEPENDENT ACCOUNTANTS ALLIANCE GROWTH INVESTORS AND
CONSERVATIVE INVESTORS FUNDS
- -------------------------------------------------------------------------------
TO THE BOARD OF TRUSTEES AND SHAREHOLDERS OF ALLIANCE GROWTH INVESTORS FUND
AND ALLIANCE CONSERVATIVE INVESTORS FUND
In our opinion, the accompanying statements of assets and liabilities,
including the portfolios of investments, and the related statements of
operations and of changes in net assets and the financial highlights present
fairly, in all material respects, the financial position of Alliance Growth
Investors Fund and Alliance Conservative Investors Fund (separately managed
portfolios constituting part of The Alliance Portfolios, hereafter referred to
as the 'Funds') at April 30, 1995, the results of each of their operations for
the year then ended, the changes in each of their net assets for each of the
two years in the period then ended and the financial highlights for each of the
periods presented, in conformity with generally accepted accounting principles.
These financial statements and financial highlights (hereafter referred to as
'financial statements') are the responsibility of the Funds' management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement
presentation. We believe that our audits, which included confirmation of
securities at April 30, 1995 by correspondence with the custodian and brokers
and the application of alternative auditing procedures where confirmations from
brokers were not received, provide a reasonable basis for the opinion expressed
above.
PRICE WATERHOUSE LLP
New York, New York
June 22, 1995
32
ALLIANCE GROWTH INVESTORS AND
CONSERVATIVE INVESTORS FUNDS
- -------------------------------------------------------------------------------
BOARD OF TRUSTEES
JOHN D. CARIFA, CHAIRMAN AND PRESIDENT
ALBERTA B. ARTHURS (1)
RUTH BLOCK (1)
RICHARD W. COUPER (1)
BRENTON W. HARRIES (1)
DONALD J. ROBINSON (1)
OFFICERS
BRUCE CALVERT, VICE PRESIDENT
KATHLEEN A. CORBET, VICE PRESIDENT
BARBARA J. KRUMSIEK, VICE PRESIDENT
FRANKLIN KENNEDY III, VICE PRESIDENT
EDMUND P. BERGAN, JR., CLERK
MARK D. GERSTEN, TREASURER & CHIEF FINANCIAL OFFICER
PATRICK J. FARRELL, CONTROLLER & CHIEF ACCOUNTING OFFICER
CUSTODIAN
STATE STREET BANK & TRUST COMPANY
225 Franklin Street
Boston, MA 02110
TRANSFER AGENT
ALLIANCE FUND SERVICES, INC.
P.O. Box 1520
Secaucus, NJ 07096-1520
Toll-Free 1-800-221-5672
PRINCIPAL UNDERWRITER
ALLIANCE FUND DISTRIBUTORS, INC.
1345 Avenue of the Americas
New York, NY 10105
INDEPENDENT ACCOUNTANTS
PRICE WATERHOUSE LLP
1177 Avenue of the Americas
New York, New York 10036-2798
LEGAL COUNSEL
ROPES & GRAY
One International Place
Boston, MA 02110-02624
(1) Member of the Audit Committee.
33
ALLIAANCE GROWTH INVESTORS FUND, INC.
ALLIANCE CONSERVATIVE INVESTORS FUND, INC.
1345 Avenue of the Americas
New York, NY 10105
(800) 221-5672
THIS REPORT IS DISTRIBUTED SOLELY TO SHAREHOLDERS OF THE FUND
AND IS NOT TO BE USED AS SALES LITERATURE.
R THESE REGISTERED SERVICE MARKS USED UNDER LICENSE FROM THE OWNER,
ALLIANCE CAPITAL MANAGEMENT L.P.
GICIAR
(BACK COVER)
