ALLIANCE GROWTH INVESTORS FUND AND ALLIANCE CONSERVATIVE INVESTORS FUND
ANNUAL REPORT
APRIL 30, 1996
ALLIANCE
INVESTING WITHOUT THE MYSTERY.
ALLIANCE GROWTH INVESTORS AND
LETTER TO SHAREHOLDERS CONSERVATIVE INVESTORS FUNDS
_______________________________________________________________________________
June 4, 1996
Dear Shareholder:
It continues to be our practice to address the shareholders of both the
Alliance Growth Investors Fund and the Alliance Conservative Investors Fund
with one letter.
Investors' perceptions underwent significant change during the early months of
this year. At year-end 1995, investors focused on evidence that economic growth
was decelerating. Some forecasters even began warning about an impending
recession. The Federal Reserve reacted to signs of a slowing economy by cutting
the discount rate by 25 basis points in late January. The stock and bond
markets reacted favorably, anticipating further rate cuts. By mid-February,
economic data began to show signs of gathering strength. This information was
reinforced by the release of February's job data, showing an employment growth
rate almost twice consensus expectations. Not surprisingly, the bond market
declined and investors' hopes for further cuts in rates were dashed.
More recently economic data has suggested the possibility of a re-acceleration
in economic growth. Anticipation of higher inflation and higher bond yields
have resulted in divergent paths for stocks and bonds: stocks are up and bonds
are down for the year-to-date.
We believe the quarterly performance of the economy will be volatile, but our
forecasts envision neither excessive growth nor recession. Instead, we look for
an average rate of growth in the second quarter. We do, however, expect an end
to the inventory-liquidation cycle apparent in the first quarter. However, we
expect the re-acceleration in the economy to be short-lived, with a significant
slowing in the second half of the year. The factors that support our thesis for
a short mini-recovery include: (1) the significant rise in interest rates; (2)
an overextended consumer; (3) a deceleration in the rate of investment
spending; and (4) constrained government spending.
Despite this economic volatility the equity market is being supported by record
inflows into mutual funds. Recognition by the baby-boom generation that it
needs to provide for retirement is a potent force that contributes to longer
term higher stock prices.
INVESTMENT STRATEGY THEMES
In anticipation of the altered outlook for the economy and the enhanced
prospects for corporate profits, we increased the equity exposure in the asset
allocation series of funds in line with their respective risk parameters. This
action took the form of raising the weightings in the mid- and small-cap
segments of the portfolio and substantially raising international equity
positions. It is our premise that foreign economies have the capacity to grow
at much faster rates than does the U.S. economy and that their central banks
have adopted stimulative monetary policies in order to effect a strong cyclical
recovery.
Since our forecasts call for a stronger dollar, large cap multi-national
companies domiciled in the U.S. will face a more difficult environment in which
to generate foreign earnings. On the other hand, the outlook for domestic
earnings has improved for mid-and small-cap stocks as a result of a somewhat
stronger U.S. demand. These better fundamentals, along with compelling relative
valuations, have led us to emphasize mid- and small-cap equities.
GROWTH INVESTORS FUND
Shown in the table below are investment returns for Alliance Growth Investors
Fund for the six and 12-month periods ended April 30, 1996. For comparison
we've shown the performance of the broad U.S. stock market, represented by the
S&P 500-stock Index, and the Fund's benchmark, represented by a composite of
the S&P 500 (70%) and the unmanaged Lehman Brothers (LB) Aggregate Bond Index
(30%), respectively.
TOTAL RETURN
PERIODS ENDED APRIL 30, 1996
6 MONTHS 12 MONTHS
-------- ---------
ALLIANCE GROWTH INVESTORS FUND
Class A +8.35% +23.87%
Class B +7.96% +23.06%
Class C +8.04% +23.04%
S&P 500 +13.76% +30.13%
70/30 COMPOSITE +9.79% +23.72%
S&P 500
LB Agg. Bond Index
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. THE FUND'S BENCHMARKS
ARE UNMANAGED.
1
ALLIANCE GROWTH INVESTORS AND
CONSERVATIVE INVESTORS FUNDS
_______________________________________________________________________________
CONSERVATIVE INVESTORS FUND
Shown in the table below are investment returns for Alliance Conservative
Investors Fund for the six and 12-month periods ended April 30, 1996. For
comparison we've shown the performance of the broad U.S. bond market,
represented by the Lehman Brothers (LB) Aggregate Bond Index and the Fund's
benchmark, represented by a composite of the Aggregate Bond Index (70%) and the
S&P 500-stock Index (30%), respectively.
TOTAL RETURN
PERIODS ENDED APRIL 30, 1996
6 MONTHS 12 MONTHS
-------- ---------
ALLIANCE CONSERVATIVE INVESTORS FUND
Class A +3.67% +12.69%
Class B +3.35% +11.95%
Class C +3.26% +11.84%
LB AGG. BOND INDEX +0.53% +8.64%
70/30 COMPOSITE +4.50% +15.10%
LB Agg. Bond Index
S&P 500
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. THE FUND'S BENCHMARKS
ARE UNMANAGED.
NEW PORTFOLIO MANAGER
We are pleased to announce that Alliance's Asset Allocation Funds are now being
managed by Robert Heisterberg, a senior vice president of Alliance, Associate
Director, Research, and Chair of Alliance's Asset Allocation Committee.
Previously, Mr. Heisterberg served as Alliance's Global Economic and Policy
Analyst. Mr. Heisterberg received his undergraduate degree from Knox College
and his M.B.A. with honors from the University of Chicago. He is a Chartered
Financial Analyst and has been in the financial services industry for 34 years.
He joined Alliance in 1977.
Thank you for your continued interest in Alliance Growth Investors and
Conservative Investors Funds. We look forward to reporting to you again on
market activity and the Funds' investment results later in the year.
Sincerely,
John D. Carifa
Chairman and President
2
ALLIANCE GROWTH INVESTORS FUND
_______________________________________________________________________________
OBJECTIVE AND POLICIES
Alliance Growth Investors Fund seeks to provide highest total return with
reasonable risk through investment in a mix of equity and fixed income
securities. Normally the Fund will hold approximately 70% of its total assets
in equity securities.
INVESTMENT RESULTS
_______________________________________________________________________________
AVERAGE ANNUAL TOTAL RETURN AS OF APRIL 30, 1996
CLASS A SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
------------ ------------
. One Year +23.87% +18.57%
. Since Inception* +12.31% +11.10%
CLASS B SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
------------ ------------
. One Year +23.06% +19.06%
. Since Inception* +11.50% +11.31%
CLASS C SHARES
. One Year +23.04%
. Since Inception* +9.62%
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
ALLIANCE GROWTH INVESTORS FUND
_______________________________________________________________________________
ALLIANCE GROWTH INVESTORS FUND
GROWTH OF A $10,000 INVESTMENT:
5/31/92 TO 4/30/96
$18,000
$16,000
$14,000
$12,000
$10000
5/31/92 4/30/96
70% S&P 500/30% LB AGGREGATE COMPOSITE
ALLIANCE
GROWTH INVESTORS
FUND CLASS A: $15,090
S&P 500
This chart illustrates the total value of an assumed investment in Alliance
Growth 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 Standard & 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 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 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 Growth Investors Fund
70% S&P 500/30% LB Aggregate Composite
S&P 500
4
ALLIANCE CONSERVATIVE INVESTORS FUND
_______________________________________________________________________________
OBJECTIVE AND POLICIES
Alliance Conservative Investors Fund seeks to provide high total return without
undue risk to principal through investment in a mix of equity and fixed income
securities. Normally the Fund will hold approximately 70% of its total assets
in fixed income securities.
INVESTMENT RESULTS
_______________________________________________________________________________
AVERAGE ANNUAL TOTAL RETURN AS OF APRIL 30, 1996
CLASS A SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
------------ ------------
. One Year +12.69% +7.90%
. Since Inception* +7.38% +6.22%
CLASS B SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
------------ ------------
. One Year +11.95% +7.95%
. Since Inception* +6.63% +6.42%
CLASS C SHARES
. One Year +11.84%
. Since Inception* +4.50%
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
_______________________________________________________________________________
ALLIANCE CONSERVATIVE INVESTORS FUND
GROWTH OF A $10,000 INVESTMENT:
5/31/92 TO 4/30/96
$14,500
$14,000
$13,500
$13,000
$12,500
$12,000
$11,500
$11000
$10,500
$10,000
5/31/92 4/30/96
LB AGGREGATE
CONSERVATIVE INVESTORS FUND CLASS A: 12,543
70% LB AGGREGATE/
30% S&P 500 COMPOSITE
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% LB Aggregate/30% S&P 500 composite
LB Aggregate
6
TEN LARGEST HOLDINGS
APRIL 30, 1996 ALLIANCE GROWTH INVESTORS FUND
_______________________________________________________________________________
COMPANY VALUE PERCENT OF NET ASSETS
- -------------------------------------------------------------------------------
Philip Morris Cos., Inc. $ 1,982,750 2.1%
Aetna Life & Casualty Co. 1,781,250 1.8
Monsanto Co. 1,287,750 1.3
Travelers Group, Inc. 1,230,000 1.3
Exxon Corp. 1,181,500 1.2
First Data Corp. 1,140,000 1.2
Pfizer, Inc. 1,136,437 1.2
Chase Manhattan Corp. 1,014,265 1.0
Amgen, Inc. 1,006,250 1.0
First Union Corp. 922,500 1.0
$12,682,702 13.1%
MAJOR PORTFOLIO CHANGES
SIX MONTHS ENDED APRIL 30, 1996
_______________________________________________________________________________
SHARES OR PRINCIPAL
--------------------------------
PURCHASES BOUGHT HOLDINGS 4/30/96
- -------------------------------------------------------------------------------
Aetna Life & Casualty Co. 25,000 25,000
Amgen, Inc. 17,500 17,500
Exxon Corp. 13,900 13,900
Federal National Mortgage Association,
6.50%, 5/01/11 $2,100,000 $2,100,000
Federal National Mortgage Association,
7.00%, 5/01/26 $1,800,000 $1,800,000
First Data Corp. 25,000 15,000
First Union Corp. 15,000 15,000
Prudential Insurance Co. of America,
8.10%, 7/15/15 $ 850,000 $ 850,000
U.S. Treasury Bond, 6.00%, 2/15/26 $1,405,000 $1,405,000
U.S. Treasury Note, 6.75%, 4/30/00 $1,050,000 $1,050,000
SALES SOLD HOLDINGS 4/30/96
- -------------------------------------------------------------------------------
AT&T Corp. 27,000 -0-
Enron Corp. 31,000 -0-
Federal National Mortgage Association,
6.00%, 12/01/09 $2,132,000 -0-
Federal Home Loan Bank, 7.00%, 9/01/25 $1,224,000 -0-
Gillette Co. 25,000 10,000
Schering-Plough Corp. 20,000 -0-
U.S. Treasury Bond, 6.875%, 8/15/25 $1,970,000 -0-
U.S. Treasury Note, 5.75%, 10/31/00 $1,050,000 -0-
U.S. Treasury Note, 6.25%, 5/31/00 $1,100,000 -0-
U.S. Treasury Note, 7.75%, 12/31/99 $2,200,000 -0-
7
TEN LARGEST HOLDINGS
APRIL 30, 1996 ALLIANCE CONSERVATIVE INVESTORS FUND
_______________________________________________________________________________
COMPANY VALUE PERCENT OF NET ASSETS
- -------------------------------------------------------------------------------
Premier Auto Trust $1,518,750 3.0%
Prudential Insurance Co. 1,425,901 2.8
Chase Manhattan Corp. 1,318,461 2.6
Time Warner Entertainment Co. 1,123,769 2.2
St. George Bank, Ltd. 971,840 1.8
Commercial Credit Group Inc. 831,363 1.6
Philip Morris Cos., Inc. 567,787 1.1
Goodyear Tire & Rubber Co. 521,250 1.0
Travelers Group, Inc. 369,000 0.7
Exxon Corp. 365,500 0.7
$9,013,621 17.5%
MAJOR PORTFOLIO CHANGES
SIX MONTHS ENDED APRIL 30, 1996
_______________________________________________________________________________
PRINCIPAL
------------------------------
PURCHASES BOUGHT HOLDINGS 4/30/96
- -------------------------------------------------------------------------------
Chase Manhattan Corp., 6.25%, 1/15/06 $1,200,000 $1,200,000
Commercial Credit Group, Inc.,
6.125% 12/01/05 $ 900,000 $ 900,000
Federal National Mortgage Association,
6.50%, 6/01/11 $4,040,000 $4,040,000
Federal National Mortgage Association,
7.00%, 4/01/26 $3,300,000 $3,300,000
Government National Mortgage Association,
7.50%, 1/15/26 $1,311,751 $1,311,751
Prudential Insurance Co., 8.10%, 7/15/15 $1,450,000 $1,450,000
St. George Bank, Ltd., 7.15%, 10/15/05 $1,000,000 $1,000,000
U.S. Treasury Bond, 6.00%, 2/15/26 $2,475,000 $2,475,000
U.S. Treasury Note, 6.75%, 4/30/00 $2,000,000 $2,000,000
U.S. Treasury Note, 7.25%, 2/15/98 $2,000,000 $8,500,000
SALES SOLD HOLDINGS 4/30/96
- -------------------------------------------------------------------------------
Federal Home Loan Bank, 7.00%, 9/01/25 $1,958,668 -0-
Federal National Mortgage Association,
6.00%, 12/01/09 $3,127,450 -0-
Liberty Mutual Capital Corp.,
8.50%, 5/15/25 $1,325,000 -0-
Prudential Insurance Co.,
7.65%, 7/01/07 $1,450,000 -0-
(Republic of) Italy 6.875%, 9/27/23 $1,300,000 -0-
Tele-Communications, Inc., 10.125%, 4/15/22 $1,330,000 -0-
U.S. Treasury Bond, 7.625%, 2/15/25 $1,980,000 -0-
U.S. Treasury Note, 5.75%, 8/15/03 $1,500,000 -0-
U.S. Treasury Note, 6.25%, 5/31/00 $2,100,000 -0-
U.S. Treasury Note, 7.75%, 12/31/99 $5,500,000 $2,350,000
8
PORTFOLIO OF INVESTMENTS
APRIL 30, 1996 ALLIANCE GROWTH INVESTORS FUND
_______________________________________________________________________________
COMPANY SHARES VALUE
- -------------------------------------------------------------------------
COMMON STOCKS & OTHER INVESTMENTS-73.2%
UNITED STATES INVESTMENTS-58.7%
CONSUMER NONCYCLICALS-17.0%
ADVERTISING-0.2%
Ha Lo Ind., Inc.* 3,500 $ 119,000
Outdoor Systems, Inc. 2,300 52,900
-----------
171,900
APPAREL & TEXTILES-0.3%
Gucci Group N.V.* 2,400 130,500
Nautica Enterprises, Inc.* 1,600 74,400
Tommy Hilfiger Corp.* 1,900 86,450
-----------
291,350
BEVERAGES-0.9%
PepsiCo., Inc. 10,600 673,100
Whitman Corp. 6,600 166,650
-----------
839,750
BIOTECHNOLOGY-1.9%
Amgen, Inc.* 17,500 1,006,250
Centocor, Inc.* 17,000 680,000
GelTex Pharmaceuticals, Inc.* 2,700 63,450
Liposome Co., Inc.* 2,600 63,700
Medimmune, Inc.* 3,800 62,700
-----------
1,876,100
BROADCASTING-2.6%
American Radio Systems Corp. Cl.A* 2,200 74,250
Cablevision Systems Corp. Cl.A* 11,000 548,625
Heritage Media Corp. Cl.A* 2,300 88,262
Infinity Broadcasting Corp.* 3,150 91,350
TCI Group Series A* 46,000 879,750
Tele-Communications, Inc.-Liberty Media Cl.A* 15,050 411,994
Valuevision International, Inc. Cl.A* 8,800 69,300
Viacom, Inc. Cl.B* 7,836 321,276
-----------
2,484,807
COSMETICS-0.6%
Gillette Co. 10,000 540,000
Estee Lauder Cos., Inc. Cl.A 2,300 84,238
-----------
624,238
DRUGS, HOSPITAL SUPPLIES & MEDICAL SERVICES-6.7%
Advanced Tissue Sciences, Inc.* 4,100 70,213
Amsco International, Inc.* 15,000 217,500
Baxter International, Inc. 7,000 309,750
Columbia/HCA Healthcare Corp. 10,000 531,250
Community Health Systems, Inc.* 1,800 78,075
Coventry Corp.* 5,900 114,312
Healthsource, Inc.* 20,000 682,500
Heartport, Inc.* 800 28,600
Merck & Co., Inc. 15,000 907,500
Ornda HealthCorp* 5,500 151,250
Pfizer, Inc. 16,500 1,136,437
Respironics, Inc.* 3,600 78,694
RoTech Medical Corp.* 2,000 83,000
Summit Technology, Inc.* 11,750 210,031
U.S. Healthcare, Inc. 5,000 260,625
United Healthcare Corp. 12,000 702,000
Value Health, Inc.* 15,000 436,875
Warner-Lambert Co. 4,000 447,000
-----------
6,445,612
ENTERTAINMENT & LEISURE-0.7%
Walt Disney Co. 10,270 636,740
FOOD PROCESSING-0.3%
Nabisco Holdings Corp. Cl.A 9,650 295,531
HOUSEHOLD PRODUCTS-0.7%
Colgate-Palmolive Co. 8,330 638,286
9
PORTFOLIO OF INVESTMENTS (CONTINUED) ALLIANCE GROWTH INVESTORS FUND
_______________________________________________________________________________
COMPANY SHARES VALUE
- -------------------------------------------------------------------------
PRINTING & PUBLISHING-0.1%
Applied Graphics Technologies* 5,100 $ 68,213
TOBACCO-2.0%
Philip Morris Cos., Inc. 22,000 1,982,750
-----------
16,355,277
TECHNOLOGY-14.8%
ADVERTISING-0.1%
Clear Channel Communications* 1,400 94,850
AEROSPACE & DEFENSE-0.5%
Boeing Co. 6,500 533,813
COMMUNICATIONS EQUIPMENT-0.9%
Andrew Corp.* 1,700 81,600
Cable Design Technologies Corp.* 700 23,100
DSC Communications Corp.* 13,000 409,500
Motorola, Inc. 6,000 367,500
-----------
881,700
COMPUTER HARDWARE-1.4%
BMC Industries, Inc. 4,700 125,725
Ceridian Corp.* 10,000 477,500
Cognex Corp.* 500 13,375
Digital Equipment Corp.* 3,000 179,250
Hewlett-Packard Co. 3,500 370,562
Optical Data Systems, Inc.* 2,900 79,387
Xircom, Inc.* 4,700 75,788
-----------
1,321,587
COMPUTER NETWORKING SOFTWARE-1.1%
3Com Corp.* 18,000 830,250
Bay Networks, Inc.* 8,000 252,000
-----------
1,082,250
COMPUTER PERIPHERALS-0.8%
Exabyte Corp.* 4,600 80,500
Seagate Technology, Inc.* 10,000 580,000
Western Digital Corp.* 2,900 68,150
-----------
728,650
COMPUTER SERVICES-1.9%
First Data Corp. 15,000 1,140,000
General Motors Corp. Cl.E 13,000 732,875
-----------
1,872,875
COMPUTER SOFTWARE-3.3%
Cadence Design Systems, Inc.* 1,700 88,825
cisco Systems, Inc.* 14,000 726,250
Hyperion Software Corp.* 4,900 61,250
Informix Corp.* 33,000 870,375
Metatools, Inc.* 300 8,400
Microsoft Corp.* 200 22,675
Oracle Systems Corp.* 21,450 723,937
Planning Sciences International Plc. (ADR)* 100 2,413
SCB Computer Technology, Inc.* 2,900 76,850
Sterling Software, Inc.* 6,300 489,825
Triple P.N.V.* 5,900 50,150
Wonderware Corp.* 2,600 58,500
-----------
3,179,450
ELECTRICAL EQUIPMENT-0.6%
General Electric Co. 7,000 542,500
Kemet Corp.* 2,400 57,300
-----------
599,800
SEMI-CONDUCTOR COMPONENTS-1.4%
Altera Corp.* 12,500 659,375
Atmel Corp.* 16,000 640,000
Teradyne, Inc.* 1,000 20,500
-----------
1,319,875
10
ALLIANCE GROWTH INVESTORS FUND
_______________________________________________________________________________
COMPANY SHARES VALUE
- -------------------------------------------------------------------------
SEMI-CONDUCTORS & RELATED-0.5%
Intel Corp. 7,000 $ 474,250
TELECOMMUNICATIONS-1.5%
Air-Touch Communications, Inc.* 11,000 343,750
Cellular Communications, Inc.* 1,000 52,437
CommNet Cellular, Inc.* 2,500 82,500
Cox Communications, Inc. Cl.A* 7,500 153,750
Digi International Inc.* 10,000 282,500
Intelcom Group, Inc.* 5,200 104,650
Millicom International Cellular, S.A.* 1,500 70,875
Mobilemedia Corp. Cl.A* 8,400 168,000
Telephone & Data Systems, Inc. 3,900 181,350
-----------
1,439,812
TELEPHONE UTILITY-0.7%
MCI Communications Corp. 20,000 588,750
U.S. Cellular Corp.* 2,300 76,188
-----------
664,938
MISCELLANEOUS-0.1%
ADT, Ltd.* 4,400 74,800
-----------
14,268,650
CREDIT SENSITIVE-10.7%
BANKS-1.6%
Chase Manhattan Corp. 8,000 551,000
First Union Corp. 15,000 922,500
-----------
1,473,500
BROKERAGE & MONEY MANAGEMENT-0.5%
Merrill Lynch & Co., Inc. 7,000 422,625
FINANCIAL SERVICES-0.2%
Money Store, Inc. 1,900 47,975
RAC Financial Group, Inc.* 3,300 101,888
Union Acceptance Corp. Cl.A* 4,900 75,950
-----------
225,813
INSURANCE-7.3%
20th Century Industries, Inc.* 3,500 54,687
Aetna Life & Casualty Co. 25,000 1,781,250
American International Group, Inc. 10,000 913,750
Compdent Corp.* 2,300 101,775
General Reinsurances Corp. 5,000 714,375
MGIC Investment Corp. 15,000 813,750
NAC Re Corp. 16,100 527,275
Penncorp Financial Group, Inc. 2,600 79,625
PMI Group, Inc. 5,000 212,500
Riscorp, Inc.* 4,000 94,500
TIG Holdings, Inc. 17,000 516,375
Travelers Group, Inc. 20,000 1,230,000
-----------
7,039,862
REAL ESTATE-0.2%
JP Realty, Inc. 2,800 55,650
The Macerich Co. 2,600 50,375
Summit Properties, Inc. 2,600 49,725
-----------
155,750
MISCELLANEOUS-0.9%
MBNA Corp. 30,000 851,250
-----------
10,168,800
CONSUMER CYCLICALS-4.7%
AIRLINES-1.2%
America West Airlines, Inc. Cl.B* 3,300 69,300
Delta Airlines, Inc. 5,000 401,875
Mesa Airlines, Inc.* 7,000 85,750
Northwest Airlines Corp. Cl.A* 14,000 637,000
-----------
1,193,925
11
PORTFOLIO OF INVESTMENTS (CONTINUED) ALLIANCE GROWTH INVESTORS FUND
_______________________________________________________________________________
COMPANY SHARES VALUE
- -------------------------------------------------------------------------
AUTO & RELATED-0.3%
Magna International, Inc. 6,290 $ 291,699
AUTO & TRUCKS-0.2%
Allen Group, Inc. 3,600 89,100
Xtra Corp. 1,800 81,900
-----------
171,000
PROFESSIONAL SERVICES-0.1%
Equity Corp. International* 2,500 71,563
RAILROAD TRANSPORTATION-0.2%
Hub Group, Inc. Cl.A* 3,000 69,750
Wisconsin Central Transportation Corp.* 1,100 92,950
-----------
162,700
RESTAURANTS & LODGING-1.8%
ITT Corp.* 13,900 846,162
La Quinta Inns, Inc. 4,900 143,325
Manhattan Bagel, Inc.* 2,500 70,000
McDonald's Corp. 13,640 653,015
Red Lion Hotels, Inc.* 3,500 77,000
-----------
1,789,502
RETAIL-GENERAL-0.8%
Consolidated Stores Corp.* 2,000 72,000
Federated Department
Stores, Inc.* 5,500 183,562
Lowe's Cos., Inc. 11,400 369,075
Nine West Group, Inc.* 2,700 115,763
Williams Sonoma, Inc.* 1,500 37,500
-----------
777,900
RETAIL-TOYS-0.1%
Hasbro, Inc. 2,400 88,200
-----------
4,546,489
BASIC INDUSTRIES-3.8%
APPLIANCES-0.1%
Black & Decker Corp. 2,500 100,625
ENERGY-0.1%
Republic Industries Inc.* 2,000 65,500
ENVIRONMENTAL CONTROL-0.8%
Continental Waste Industries Inc.* 5,000 60,000
United Waste Systems, Inc.* 1,200 66,000
USA Waste Services, Inc.* 10,000 260,000
WMX Technologies, Inc 12,500 434,375
-----------
820,375
MACHINERY-1.3%
Allied-Signal, Inc. 12,000 697,500
Coltec Industries, Inc.* 30,000 390,000
Comverse Technology, Inc.* 2,600 60,775
Pentair, Inc. 2,600 70,850
-----------
1,219,125
MINING & METALS-1.4%
Aluminum Co. of America 6,000 374,250
Century Aluminum Co.* 5,600 82,600
Kaiser Aluminum Corp.* 4,700 62,862
Ucar International, Inc.* 20,400 836,400
-----------
1,356,112
MISCELLANEOUS-0.1%
Oxford Resources Corp. Cl.A* 2,400 70,800
-----------
3,632,537
BASIC MATERIALS-3.6%
BUILDING & RELATED-0.2%
American Standard Cos., Inc* 6,300 177,975
CHEMICALS-2.8%
Cytec Industries, Inc.* 1,100 91,163
Freeport McMoran, Inc. 9,200 335,800
Hercules, Inc. 6,600 399,300
IMC Global, Inc. 5,000 184,375
Monsanto Co. 8,500 1,287,750
Olin Corp. 4,500 398,250
-----------
2,696,638
12
ALLIANCE GROWTH INVESTORS FUND
_______________________________________________________________________________
COMPANY SHARES VALUE
- -------------------------------------------------------------------------
CONTAINERS & PACKAGING-0.4%
Crown Cork & Seal Co., Inc. 8,000 $ 377,000
ENGINEERING & CONSTRUCTION-0.2%
Martin Marietta Materials, Inc. 10,600 242,475
-----------
3,494,088
ENERGY-2.8%
GAS EXPLORATIONS-0.0%
Sonat Offshore Drilling, Inc. 1,400 76,825
OIL & GAS SERVICES-2.8%
BJ Services Co.* 2,100 80,588
Diamond Shamrock, Inc. 2,000 67,750
Exxon Corp. 13,900 1,181,500
Global Marine, Inc.* 6,200 70,525
Louisiana Land & Exploration Co. 9,100 492,537
Mobil Corp. 5,800 667,000
Rowan Companies, Inc.* 4,200 61,950
Schlumberger, Ltd. 700 61,775
Yukong, Ltd. (GDR) 60 647
-----------
2,684,272
-----------
2,761,097
INVESTMENTCOMPANIES-0.9%
MUTUAL FUND-0.9%
India Fund, Inc. 30,000 333,750
Morgan Stanley Asia Pacific Fund 40,000 480,000
rights, expiring 5/08/96* 40,000 27,500
-----------
841,250
DIVERSIFIED-0.3%
AccuStaff, Inc* 2,200 65,450
Petco Animal Supplies, Inc. 2,100 60,375
-----------
125,825
FINANCIAL SERVICES-0.1%
MISCELLANEOUS-0.1%
Romac International, Inc.* 1,700 62,475
Total United States Investments
(cost $50,159,172) 56,256,488
FOREIGN INVESTMENTS-14.5%
AUSTRALIA-0.0%
National Australia Bank, Ltd. 6,000 53,826
Banks
AUSTRIA-0.0%
Austria Mikro Systeme International AG 170 20,672
Semi-Conductor Components
BELGIUM-0.0%
Kredietbank, N.V. 150 42,884
Banks
DENMARK-0.1%
Den Danske Bank 1,500 97,848
Banks
FINLAND-0.8%
Merita 'A' 20,000 42,979
Banks
Nokia AB OY Corp. pfd. 1,900 67,880
Communication Equipment
Nokia Corp. (ADR) 17,500 636,562
Communication Equipment
Orion-Yhtmae OY Cl. B 2,080 57,162
Drugs
-----------
804,583
FRANCE-1.4%
Banque National de Paris 2,400 100,226
Banks
Bouygues 800 81,277
Homebuilders
Cep Communications 300 27,222
Printing & Publishing
Danone 800 120,910
Food
Generale des Eaux 800 87,005
Diversified
GTM Entrepose, S.A. 840 54,131
Homebuilders
Klepierre 200 23,299
Real Estate
13
PORTFOLIO OF INVESTMENTS (CONTINUED) ALLIANCE GROWTH INVESTORS FUND
_______________________________________________________________________________
COMPANY SHARES VALUE
- -------------------------------------------------------------------------
Lafarge, S.A. 900 $ 57,649
Building & Construction
Legris Ind, S.A. 1,200 59,448
Capital Goods-Misc.
Pechiney, S.A. Cl.A 800 37,697
Metals & Mining
Peugeot PSA Peugeot Citroen 740 103,392
Auto & Related
Promodes 110 31,611
Apparel
Salomon, S.A. 70 48,766
Entertainment & Leisure
SIMCO 270 25,811
Real Estate
Societe Francaise d'Invetissements
Immobiliers et de Gestion 500 34,272
Real Estate
Societe Nacionale Elf Aquitaine 1,100 81,806
International Energy
Societe Des Immeubles 560 38,450
Miscellaneous
Societe Television Francaise 500 54,185
Printing, Publishing & Broadcasting
Total, S.A. Cl.B 2,000 135,733
Energy
Union du Credit - Bail Immobilier 600 58,636
Real Estate
Union Immobilier France 470 41,111
Real Estate
Usinor Sacilor 2,700 41,774
Mining & Metals
-----------
1,344,411
GERMANY-0.8%
Bayer A.G. 420 135,254
Chemicals
Deutsche Bank A.G. 1,900 91,059
Banks
Henkel KGaA, pfd. 260 99,693
Financial
Hornbach Holding A.G. pfd. 750 48,011
Building & Related
KL Schanz Beck 150 22,830
Engineering & Construction
KSB A.G. - Vorzug, Pfd. 300 34,195
Machinery
Deutsche Lufthansa A.G. 400 63,440
Airlines
Schmalbach Lubeca A.G. 400 70,808
Containers & Packaging
Suedzucker A.G. 150 70,841
Household Products
Veba A.G. 2,800 139,186
Utility/Electric
-----------
775,317
HONG KONG-0.1%
Hong Kong & China Gas Co., Ltd. (b) 24,000 39,403
Electric & Gas Utility
Hutchison Whampoa, Ltd. 4,000 24,821
Conglomerates
Paul Y-ITC Construction Holdings, Inc.
warrants expiring 3/31/97* 5,000 103
warrants expiring 3/31/98* 5,000 120
Diversified
Swire Pacific, Ltd. Cl.A 6,000 51,192
Conglomerates
-----------
115,639
IRELAND-0.1%
Irish Life Plc. 18,900 73,564
Insurance
Saville Systems Ireland Plc. (ADR)* 1,500 40,875
Computer Software
-----------
114,439
14
ALLIANCE GROWTH INVESTORS FUND
_______________________________________________________________________________
COMPANY SHARES VALUE
- -------------------------------------------------------------------------
ITALY-0.3%
Ente Nazionale Idrocarburi 17,000 $ 73,463
Oil Services
Industrie Natuzzi S.p.A. (ADS) 1,300 67,600
Household Products
La Rinascente S.p.A. 11,000 76,127
Retail
Telecom Italia S.p.A. 40,000 81,562
Telephone Utility
-----------
298,752
JAPAN-6.8%
Amano Corp. 6,000 85,464
Diversified
Asahi Glass Co. 10,000 121,409
Building Materials
Bank of Tokyo, Ltd. 7,000 161,943
Banks
Canon, Inc. 5,000 99,422
Office Equipment
Chiba Bank, Ltd. 4,000 36,136
Banks
Chodai Co., Ltd. 1,000 36,805
Building & Construction
Dai Nippon Printing Co., Ltd. 4,000 75,331
Printing & Publishing
Daifuku Co., Ltd. 4,000 63,094
Industrial Machinery
Daito Trust Construction Co., Ltd. 5,000 74,088
Construction
Daiwa Securities Co., Ltd. 2,000 30,782
Brokerage & Money Management
DDI Corp. 22 189,073
Telecommunications
East Japan Railway Co. 18 96,190
Railroad Transportation
Eisai Co., Ltd. 3,000 59,366
Drugs, Hospital Supplies & Medical Services
Fuji Photo Film Co. 6,000 186,989
Photo & Optical
Furukawa Co., Ltd. 6,000 32,121
Electric & Gas Utility
Hirose Electric Co. 2,000 123,512
Miscellaneous
Hokkaido Takushoku Bank Ltd. 9,000 26,069
Banks
Honda Motor Co. 3,000 68,544
Auto & Related
House Foods Industry 2,000 40,151
Financial
Hoya Corp. 4,000 141,485
Miscellaneous Technology
Ishikawajima-Harima Heavy, Ind. 6,000 29,826
Aerospace
Ito - Yokado Co., Ltd. 1,000 58,984
Retail-General
Japan Securities Finance 6,000 95,215
Brokerage & Money Management
Kamigumi Co., Ltd. 4,000 41,298
Engineering & Construction
Kandenko Co., Ltd. 4,000 54,682
Homebuilders
Kao Corp. 7,000 93,686
Household Products
Kirin Brewery Co., Ltd. 4,000 52,005
Beverages
Kokuyo 1,000 27,723
Miscellaneous
Kuraray Co., Ltd. 7,000 80,971
Textile Products
15
PORTFOLIO OF INVESTMENTS (CONTINUED) ALLIANCE GROWTH INVESTORS FUND
_______________________________________________________________________________
COMPANY SHARES VALUE
- -------------------------------------------------------------------------
Long-Term Credit Bank of Japan 3,000 $ 26,012
Banks
Mabuchi Motor Co. 1,000 61,565
Miscellaneous
Maeda Road Construction Corp. 2,000 36,710
Engineering & Construction
Matsushita Electric Works 5,000 56,881
Building & Related
Matsushita Electric Industrial Co., Ltd. 8,000 141,485
Appliances
Mitsubishi Heavy Industries, Ltd. 8,000 71,431
Industrial Machinery
Mitsubishi Materials Corp. 5,000 30,113
Mining & Metals
Mitsubishi Oil Co. 7,000 63,037
Oil & Gas Services
Mitsui Marine & Fire Insurance Co. 7,000 59,357
Insurance
Mitsui Trust and Banking Co., Ltd. 16,000 192,725
Banks
Mori Seiki Co. 1,000 22,848
Industrial Machinery
National House Industrial Co. 2,000 35,371
Building & Construction
New Oji Paper Co., Ltd. 1,000 9,244
Paper
NGK Insulators 3,000 34,128
Engineering & Construction
Nikko Securities Co., Ltd. 5,000 63,572
Brokerage & Money Management
Nintendo Corp., Ltd. 1,000 77,243
Retail - Toys
Nippon Express Co., Ltd. 6,000 $62,521
Trucking
Nippon Light Metal Co. 6,000 39,004
Mining & Metals
Nippon Paper Industries Co. 5,000 36,614
Paper
Nippon Steel Co. 14,000 50,590
Mining & Metals
Nissen Co. 100 1,740
Retail
Nisshin Steel Co., Ltd. 29,000 128,082
Mining & Metals
NKK Corp. 20,000 62,712
Mining & Metals
Nomura Securities Co., Ltd. 6,000 130,778
Investment Companies
NTT Data Communications Systems 3 104,966
Communications Equipment
Osaka Gas Co. 15,000 60,083
Gas & Pipeline Utilities
Rohm Co. 5,000 318,340
Communications Equipment
Sakura Bank 22,000 258,687
Banks
Sankyo Co. 1,000 24,282
Drugs, Hospital Supplies & Medical Services
Seven-Eleven Japan Co., Ltd. 4,000 283,352
Retail-General
Shimano, Inc. 3,000 61,087
Miscellaneous
Shimizu Corp. 5,000 57,359
Homebuilders
Shiseido Co., Ltd. 5,000 63,094
Cosmetics
Sony Music Entertainment Japan 700 37,943
Entertainment & Leisure
16
ALLIANCE GROWTH INVESTORS FUND
_______________________________________________________________________________
COMPANY SHARES VALUE
- -------------------------------------------------------------------------
Sumitomo Electric Industries 4,000 $ 57,359
Electrical Equipment
Sumitomo Marine & Fire 6,000 57,129
Insurance Co.
Sumitomo Realty and Development Co., Ltd. 8,000 64,395
Real Estate
Sumitomo Rubber Industries 2,000 18,183
Auto & Related
Taisho Pharmaceutical Co. 3,000 65,676
Drugs, Hospital Supplies & Medical Services
Takeda Chemical Industries 2,000 34,606
Drugs
Toagosei Co., Ltd. 3,000 16,777
Chemicals
Tokai Bank 7,000 89,671
Banks
Tokyo Electric Power Co. 6,000 163,472
Electric Utilities
Tokyo Gas Co., Ltd. 28,000 110,014
Gas & Pipeline Utilities
Tokyo Marine and Fire Insurance Co., Ltd. 14,000 192,725
Insurance
Tokyo Steel Mfg. 6,000 121,027
Metals & Mining
Tostem Corp. 3,000 93,208
Building & Related
Tokyo Kanetsu 5,000 27,437
Machinery
Toyota Motor Corp. 9,000 205,631
Auto & Trucks
UBE Industries, Ltd. 6,000 24,722
Mining & Metals
Yakult Honsha Co. 3,000 44,166
Food
Yamanouchi Pharmaceutical Co., Ltd. 3,000 71,125
Drugs, Hospital Supplies & Medical Services
Yamazaki Baking Co., Ltd. 3,000 61,374
Food
-----------
6,564,017
MALAYSIA-0.2%
Kim Hin Industry Berhad warrents,
expiring 5/30/98* 750 529
Building & Construction
Malayan Bank Berhad 5,000 48,731
Banks
Resorts World Berhad 10,000 60,562
Entertainment & Leisure
Telekom Malaysia Berhad 6,000 56,552
Telephone Utility
-----------
166,374
NETHERLANDS-0.5%
AKZO Nobel N.V. 1,010 117,298
Chemicals
Fortis Amev N.V. 1,900 135,722
Insurance
Internationale Nederlanden Groep N.V. 1,800 138,979
Insurance
Koninklijke KNP BT N.V. 2,100 50,125
Paper & Forest Products
Koninklijke Nedlloyd Groep N.V. 3,000 65,830
Shipping
Opg Apoth Cooperative 240 6,784
Drugs
-----------
514,738
NEW ZEALAND-0.1%
Telecom Corp. of New Zealand, Ltd. 13,000 55,190
Telephone Utility
17
PORTFOLIO OF INVESTMENTS (CONTINUED) ALLIANCE GROWTH INVESTORS FUND
_______________________________________________________________________________
COMPANY SHARES VALUE
- -------------------------------------------------------------------------
NORWAY-0.2%
Bergesen D.Y. AS Cl.A. 3,000 $ 53,884
Transportation
Christiana Bank OG Kreditkasse 25,500 55,506
Banks
First Olsen Tanker 12,000 82,197
Transportation
-----------
191,587
SINGAPORE-0.1%
Overseas-Chinese Banking Corp., Ltd. 4,000 54,915
Banks
Overseas Union Banking Corp., Ltd. 400 3,102
Banks
Singapore Press Holdings, Ltd. 2,000 37,843
Printing & Publishing
-----------
95,860
SOUTH KOREA-0.0%
Yukong, Ltd. GDS 22 214
Oil-International
SPAIN-0.3%
BCO Intercon 750 78,891
Banks
Repsol, S.A. 2,100 77,017
Energy
Tabacalera, S.A. Series A 1,650 75,236
Tobacco
Uralita, S.A. 2,200 21,619
Building & Related
-----------
252,763
SWEDEN-0.3%
AB Astra Series A 2,200 97,809
Drugs, Hospital Supplies & Medical Services
Electrolux AB Series B 1,200 60,517
Appliances
Marieberg Tidings Series A 3,000 70,337
Printing & Publishing
Stora Kopparbergs Series B 5,700 76,486
Paper & Forest Products
-----------
305,149
SWITZERLAND-0.6%
Baloise Holdings, Ltd. 40 85,857
Diversified
Ciba-Geigy A.G. 240 278,544
Chemicals
Forbo Holdings A.G. 200 83,602
Building & Related
Nestle, S.A. 125 139,034
Food
-----------
587,037
UNITED KINGDOM-2.1%
Anglian Water Plc. 10,000 87,159
Utilities
B.A.T. Industries Plc. 20,000 151,137
Tobacco
British Airways Plc. 8,000 62,502
Airlines
British Land Co. Plc. 12,600 81,844
Real Estate
British Telecommunications Plc. 11,000 60,357
Telecom Equipment
British Vita 13,100 40,623
Chemicals
BTR Plc. 30,000 144,513
Conglomerates
Enterprise Oil Plc. 12,000 80,837
Oil & Gas Services
General Electric Co. Plc. 20,000 107,933
Electrical Equipment
18
ALLIANCE GROWTH INVESTORS FUND
_______________________________________________________________________________
COMPANY SHARES VALUE
- -------------------------------------------------------------------------
Glaxo Holdings 5,000 $ 60,628
Drugs, Hospital Supplies & Medical Services
Grand Metropolitan Plc. 19,000 124,989
Food
Hazlewood Foods Plc. 16,000 24,326
Food
Hepworth Plc. 21,200 96,219
Building Materials
Holliday Chemical Holdings Plc. 12,000 25,109
Chemicals
Lex Service Plc. 6,000 32,967
Miscellaneous
Marley Plc. 25,000 54,945
Homebuilders
McBride Plc.* 13,800 27,006
Household Products
Mowlem (John) & Co. Plc. 32,000 45,762
Construction
National Power Plc. 6,920 58,387
Electric Utilities
Royal Bank of Scotland Group Plc. 9,000 70,247
Banks
Rugby Group Plc. 45,000 86,708
Building & Related
Sainsbury (J.) Plc. 18,300 100,825
Retail-Food/Drug
Tate & Lyle Plc. 13,800 100,026
Food Processing
The Peninsular & Oriental Steam Navigation Co. 10,000 78,730
Transportation
Vodafone Group Plc. 31,000 123,897
Telecommunication Equipment
SHARES OR
PRINCIPAL
AMOUNT
COMPANY (000) VALUE
- -------------------------------------------------------------------------
Wimpey (George) Plc. 53,200 $ 115,321
Homebuilders
-----------
2,042,997
Total Foreign Investments
(cost $13,891,002) 14,444,297
Total Common Stocks & Other Investments
(cost $64,050,174) 70,700,785
LONG-TERM DEBT SECURITIES-16.8%
CREDIT SENSITIVE-2.9%
Chase Manhattan Corp.
6.25%, 1/15/06 $ 500 463,265
Commercial Credit Group, Inc.
6.125%, 12/01/05 500 461,869
General Instrument Corp.
5.00%, 6/15/00 300 415,875
Prudential Insurance Co. of America
8.10%, 7/15/15(a) 850 835,873
Time Warner Entertainment Co.
8.375%, 3/15/23 650 635,173
-----------
2,812,055
MORTGAGE BACKED SECURITIES-4.6%
Federal National Mortgage Association
6.50%, 6/01/11 2,100 2,033,703
7.00%, 5/01/26 1,800 1,735,308
Government National Mortgage Association
7.50%, 1/15/26 668 660,519
-----------
4,429,530
19
PORTFOLIO OF INVESTMENTS (CONTINUED) ALLIANCE GROWTH INVESTORS FUND
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) VALUE
- -------------------------------------------------------------------------
U.S. TREASURY SECURITIES-9.3%
U.S. Treasury Bonds
6.00%, 2/15/26 $1,405 $ 1,248,469
U.S. Treasury Notes
6.50%, 8/15/05 545 537,506
6.75%, 4/30/00 1,050 1,063,944
7.25%, 2/15/98 6,000 6,120,960
-----------
8,970,879
Total Long-Term Debt Securities
(cost $16,510,401) 16,212,464
SHORT-TERM DEBT SECURITIES-8.6%
Federal Home Loan Bank
5.18%, 5/28/96 5,000 4,980,574
Federal Home Loan Mortgage Corp.
5.30%, 5/01/96 3,300 3,300,000
Total Short-Term Debt Securities
(amortized cost $8,280,575) 8,280,574
TOTAL INVESTMENTS -98.6%
(cost $88,841,150) 95,193,823
Other assets less liabilities-1.4% 1,307,843
NET ASSETS-100% $96,501,666
* Non-income producing security.
(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, 1996,
these securities amounted to $835,873 or 0.9% of net assets.
(b) Warrants attached, expiring 9/30/97.
Glossary of Terms:
ADR - American Depository Receipt
GDR - Global Depository Receipt
See notes to financial statements.
20
PORTFOLIO OF INVESTMENTS
APRIL 30, 1996 ALLIANCE CONSERVATIVE INVESTORS FUND
_______________________________________________________________________________
COMPANY SHARES VALUE
- -------------------------------------------------------------------------
COMMON STOCKS & OTHER INVESTMENTS-31.5%
UNITED STATES INVESTMENTS-24.2%
CONSUMER NONCYCLICALS-7.3%
BEVERAGES-0.5%
PepsiCo, Inc. 3,200 $ 203,200
Whitman Corp. 2,100 53,025
-----------
256,225
BIOTECHNOLOGY-0.6%
Amgen, Inc.* 3,750 215,625
Centocor, Inc.* 2,000 80,000
-----------
295,625
BROADCASTING-0.3%
Tele-Communications, Inc. Liberty Media Cl.A* 5,200 142,350
COSMETICS-0.3%
Gillette Co. 3,000 162,000
ENTERTAINMENT & LEISURE-0.4%
Walt Disney Co. 3,333 206,646
FOOD PROCESSING-0.2%
Nabisco Holdings Corp. Cl.A 3,350 102,594
DRUGS, MEDICAL, HOSPITAL SUPPLIES & SERVICES-2.3%
Amsco International, Inc.* 2,000 29,000
Baxter International, Inc. 3,000 132,750
Columbia/HCA Healthcare Corp. 2,500 132,813
Merck & Co., Inc. 4,000 242,000
Pfizer, Inc. 3,000 206,625
U.S. Healthcare, Inc. 1,000 52,125
United Healthcare Corp. 3,000 175,500
Value Health, Inc.* 5,500 160,187
Warner-Lambert Co. 750 83,813
-----------
1,214,813
HOUSEHOLD PRODUCTS-0.4%
Colgate-Palmolive Co. 2,610 $199,991
TIRE & RUBBER-1.0%
Goodyear Tire & Rubber Co. 10,000 521,250
TOBACCO-1.3%
Loews Corp. 1,000 76,250
Philip Morris Cos., Inc. 6,300 567,787
644,037
-----------
3,745,531
TECHNOLOGY-6.4%
AEROSPACE & DEFENSE-0.2%
Boeing Co. 1,000 82,125
COMMUNICATIONS EQUIPMENT-0.7%
DSC Communications Corp.* 3,900 122,850
Motorola, Inc. 1,825 111,781
Scientific-Atlanta, Inc. 6,250 115,625
-----------
350,256
COMPUTER HARDWARE-0.6%
Ceridian Corp.* 3,500 167,125
Digital Equipment Corp.* 500 29,875
Hewlett-Packard Co. 1,100 116,463
-----------
313,463
COMPUTER NETWORKING SOFTWARE-1.0%
3Com Corp.* 5,500 253,687
Bay Networks, Inc.* 1,500 47,250
cisco Systems, Inc. 4,400 228,250
-----------
529,187
COMPUTER PERIPHERALS-0.1%
Seagate Technology* 1,250 72,500
COMPUTER SERVICES-0.8%
First Data Corp. 2,500 190,000
General Motors Corp. Cl.E 3,500 197,313
-----------
387,313
21
PORTFOLIO OF INVESTMENTS (CONTINUED) ALLIANCE CONSERVATIVE INVESTORS FUND
_______________________________________________________________________________
COMPANY SHARES VALUE
- -------------------------------------------------------------------------
COMPUTER SOFTWARE-1.1%
Informix Corp.* 10,000 $ 263,750
Microsoft Corp.* 100 11,338
Oracle Systems Corp.* 6,450 217,687
Sterling Software, Inc.* 650 50,537
-----------
543,312
ELECTRICAL EQUIPMENT-0.4%
General Electric Co. 3,000 232,500
SEMI-CONDUCTOR COMPONENTS-0.4%
Altera Corp.* 4,000 211,000
SEMI-CONDUCTORS & RELATED-0.3%
Intel Corp. 2,000 135,500
TELECOMMUNICATIONS-0.7%
Air-Touch Communications, Inc.* 3,500 109,375
Mobilemedia Corp. Cl.A* 2,500 50,000
TCI Group Series A* 5,800 110,925
Telephone and Data Systems, Inc. 2,000 93,000
-----------
363,300
TELEPHONE UTILITY-0.1%
MCI Communications Corp. 2,500 73,594
-----------
3,294,050
CREDIT SENSITIVE-3.4%
BANKS-0.9%
Chase Manhattan Corp. 3,000 206,625
First Union Corp. 4,000 246,000
-----------
452,625
BROKERAGE & MONEY MANAGEMENT-0.3%
Merrill Lynch & Co., Inc. 2,600 156,975
INSURANCE-1.8%
Aetna Life & Casualty Co. 750 53,438
General Reinsurance Corp. 1,500 214,312
MGIC Investment Corp. 1,500 81,375
PMI Group, Inc. 1,500 63,750
TIG Holdings, Inc. 2,000 60,750
Transatlantic Holdings, Inc. 1,000 65,500
Travelers Group, Inc. 6,000 369,000
-----------
908,125
MISCELLANEOUS-0.4%
MBNA Corp. 7,000 198,625
U.S. Industries, Inc.* 1,500 31,500
-----------
230,125
-----------
1,747,850
BASIC INDUSTRIES-3.0%
APPLIANCES-0.1%
Black & Decker Corp. 800 32,200
BUILDING MATERIALS-0.0%
American Standard Cos., Inc* 600 16,950
CHEMICALS-1.1%
Freeport McMoran, Inc. 2,000 73,000
Hercules, Inc. 800 48,400
IMC Global, Inc. 1,000 36,875
Monsanto Co. 2,150 325,725
Olin Corp. 750 66,375
-----------
550,375
CONTAINERS & PACKAGING-0.2%
Crown Cork & Seal Co., Inc. 2,000 94,250
ENGINEERING & CONSTRUCTION-0.3%
Martin Marietta Materials, Inc. 4,200 96,075
United Dominion Industries Ltd. 2,500 60,000
-----------
156,075
22
ALLIANCE CONSERVATIVE INVESTORS FUND
_______________________________________________________________________________
COMPANY SHARES VALUE
- -------------------------------------------------------------------------
ENVIRONMENTAL CONTROL-0.5%
WMX Technologies, Inc. 6,600 $ 229,350
MACHINERY-0.5%
Allied-Signal, Inc. 2,700 156,937
Coltec Industries, Inc.* 4,000 52,000
Giddings & Lewis, Inc. 3,400 63,113
-----------
272,050
MINING & METALS-0.3%
Aluminum Co. of America 2,350 146,581
-----------
1,497,831
CONSUMER CYCLICALS-2.1%
AIRLINES-0.2%
Delta Airlines, Inc 750 60,281
Northwest Airlines Corp. Cl.A* 1,000 45,500
-----------
105,781
AUTO & RELATED-0.2%
Magna International, Inc. 2,230 103,416
PHOTO & OPTICAL-0.3%
Eastman Kodak Co. 1,950 149,175
RESTAURANTS & LODGING-0.7%
ITT Corp.* 2,600 158,275
McDonald's Corp. 4,300 205,863
-----------
364,138
RETAIL-GENERAL-0.3%
Federated Department Stores, Inc.* 1,000 33,375
Fingerhut Cos., Inc. 2,000 25,500
Lowes Cos., Inc. 2,800 90,650
-----------
149,525
RETAIL-FOOD/DRUG-0.1%
Revco D.S. Inc.* 3,000 70,875
RETAIL-TOYS-0.0%
Hasbro, Inc. 500 18,375
TRANSPORTATION-0.1%
Xtra Corp. 1,300 59,150
MISCELLANEOUS-0.2%
First Brands Corp. 3,000 79,500
-----------
1,099,935
BUSINESS SERVICES-0.4%
PRINTING, PUBLISHING & BROADCASTING-0.4%
Cablevision Systems Corp. Cl.A* 2,000 99,750
Cox Communications, Inc. Cl.A* 1,000 20,500
Viacom, Inc. Cl.B* 2,562 105,042
-----------
225,292
ENERGY-1.6%
OIL & GAS-1.4%
Atlantic Richfield Co. 1,000 117,750
BJ Services Co.* 600 23,025
Exxon Corp. 4,300 365,500
Louisiana Land & Exploration Co. 1,500 81,188
Mobil Corp. 900 103,500
Schlumberger, Ltd. 200 17,650
-----------
708,613
UTILITY/ELECTRIC-0.2%
Houston Industries, Inc. 5,800 123,975
-----------
1,057,880
Total United States Investments
(cost $11,716,538) 12,443,077
FOREIGN INVESTMENTS-7.3%
AUSTRALIA-0.1%
National Australia Bank, Ltd. 4,200 37,678
Banks
23
PORTFOLIO OF INVESTMENTS (CONTINUED) ALLIANCE CONSERVATIVE INVESTORS FUND
_______________________________________________________________________________
COMPANY SHARES VALUE
- -------------------------------------------------------------------------
FINLAND-0.2%
Nokia Corp. (ADR) 3,100 $ 112,762
Communications Equipment
FRANCE-0.7%
Bouygues 700 71,118
Home Builders
Generale des Eaux 1,100 119,632
Diversified
Societe Television Francaise 700 75,859
Printing, Publishing & Broadcasting
Total, S.A., Cl.B 1,600 108,586
Energy
-----------
375,195
GERMANY-0.7%
Bayer A.G. 400 128,813
Chemicals
Deutsche Bank A.G. 2,100 100,645
Banks
Veba A.G. 2,400 119,302
Utility/Electric
-----------
348,760
HONG KONG-0.2%
Hong Kong & China Gas Co., Ltd. (a) 18,000 29,552
Electric & Gas Utility
Hutchison Whampoa, Ltd. 5,000 31,026
Conglomerates
Swire Pacific, Ltd. Cl. A 4,000 34,128
Conglomerates
-----------
94,706
JAPAN-2.9%
Canon, Inc. 6,000 119,306
Office Equipment
Fuji Bank Ltd. 5,000 109,459
Banks
Fuji Photo Film Co. 4,000 124,660
Photo & Optical
Hitachi, Ltd. 8,000 86,420
Electrical Equipment
Honda Motor Co. 5,000 114,239
Auto & Related
Ito-Yokado Co., Ltd. 2,000 117,968
Retailing-General
Kirin Brewery Co., Ltd. 8,000 104,010
Beverages
Matsushita Electric Industrial Co., Ltd. 6,000 106,114
Appliances
Nomura Securities Co., Ltd. 5,000 108,981
Investment Companies
Sakura Bank 9,000 105,827
Banks
Seven-Eleven Japan Co., Ltd. 1,000 70,838
Retail-General
Tokyo Electric Power Co. 3,000 81,736
Electric Utilities
Tokyo Marine and Fire Insurance Co., Ltd. 9,000 123,895
Insurance
Toyota Motor Corp. 5,000 114,239
Auto & Trucks
-----------
1,487,692
MALAYSIA-0.2%
Resorts World Berhad 8,000 48,450
Entertainment & Leisure
Telekom Malaysia Berhad 4,000 37,701
Telephone Utility
86,151
24
ALLIANCE CONSERVATIVE INVESTORS FUND
_______________________________________________________________________________
COMPANY SHARES VALUE
- -------------------------------------------------------------------------
NETHERLANDS-0.4%
AKZO Nobel N.V. 600 $ 69,682
Chemicals
Internationale Nederlanden Groep N.V. 1,700 131,257
Insurance
-----------
200,939
NEW ZEALAND-0.1%
Telecom Corp. of New Zealand, Ltd. 10,400 44,152
Telephone Utility
SINGAPORE-0.0%
Overseas-Chinese Banking Corp., Ltd. 2,000 27,458
Banks
SOUTH KOREA-0.1%
Korea Mobile Telecom Corp. 1,500 83,625
Telephone Utility
SWITZERLAND-0.6%
Ciba-Geigy A.G. 100 116,060
Chemicals
Nestle, S.A. 100 111,228
Food
Sandoz A.G. 75 81,910
Drugs
-----------
309,198
UNITED KINGDOM-1.1%
B.A.T. Industries Plc. 12,000 90,682
Tobacco
British Telecommunications Plc. 16,000 87,792
Telecom Equipment
BTR Plc. 22,000 105,976
Conglomerates
Glaxo Holdings 7,000 84,879
Drugs Hospital Supplies & Medical Services
Grand Metropolitan Plc. 16,000 105,254
Food
Smithkline Beecham* 8,152 86,514
Drugs
-----------
561,097
Total Foreign Investments
(cost $3,595,168) 3,769,413
Total Common Stocks & Other Investments
(cost $15,311,706) 16,212,490
SHARES OR
PRINCIPAL
AMOUNT
(000) VALUE
- -------------------------------------------------------------------------
LONG-TERM DEBT SECURITIES-62.2%
CREDIT SENSITIVE-13.6%
Chase Manhattan Corp.
6.25%, 1/15/06 $1,200 1,111,836
Commercial Credit Group, Inc.
6.125%, 12/01/05 900 831,363
Premier Auto Trust
7.15%, 2/04/99 1,500 1,518,750
Prudential Insurance Co. of America
8.10%, 7/15/15(b) 1,450 1,425,901
St. George Bank, Ltd.
7.15%, 10/15/05 1,000 971,840
Time Warner Entertainment Co.
8.375%, 3/15/23 1,150 1,123,769
-----------
6,983,459
MORTGAGE BACKED SECURITIES-16.3%
Federal National Mortgage Association
6.50%, 6/01/11 4,040 3,912,457
7.00%, 4/01/26 3,300 3,181,398
Government National Mortgage Association
7.50%, 1/15/26 1,312 1,296,574
-----------
8,390,429
25
PORTFOLIO OF INVESTMENTS (CONTINUED) ALLIANCE CONSERVATIVE INVESTORS FUND
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) VALUE
- -------------------------------------------------------------------------
U.S. TREASURY SECURITIES-32.3%
U.S. Treasury Bond
6.00%, 2/15/26 $2,475 $ 2,199,260
U.S. Treasury Notes
5.50%, 11/15/98 750 738,518
6.50%, 8/15/05 520 512,850
6.75%, 4/30/00 2,000 2,026,560
7.25%, 2/15/98 8,500 8,671,360
7.75%, 12/31/99 2,350 2,456,478
-----------
16,605,026
Total Long-Term Debt Securities
(cost $32,451,492) 31,978,914
SHORT-TERM DEBT SECURITIES-6.0%
Federal Home Loan Mortgage Corp.
5.30%, 5/01/96
(amortized cost $3,100,000) 3,100 3,100,000
TOTAL INVESTMENTS -99.7%
(cost $50,863,198) 51,291,404
Other assets less liabilities-0.3% 173,997
NET ASSETS-100% $51,465,401
* Non-income producing security.
(a) Warrants attached, expiring 9/30/97.
(b) Securities are exempt from registration under Rule 144A of the Securities
Act of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At April 30, 1996,
these securities amounted to $1,425,901 or 2.8% of net assets.
Glossary:
ADR - American Depository Receipt
See notes to financial statements.
26
STATEMENTS OF ASSETS AND LIABILITIES ALLIANCE GROWTH INVESTORS AND
APRIL 30, 1996 CONSERVATIVE INVESTORS FUNDS
_______________________________________________________________________________
GROWTH CONSERVATIVE
INVESTORS INVESTORS
FUND FUND
------------- -----------
ASSETS
Investments in securities, at value (cost
$88,841,150 and $50,863,198, respectively) $ 95,193,823 $51,291,404
Cash at value (cost $82,759 and $160,158
respectively) 81,317 160,142
Receivable for investment securities and
foreign currency sold 5,704,410 5,196,735
Interest and dividends receivable 274,580 422,795
Receivable for shares of beneficial interest sold 259,926 79,363
Deferred organization expenses 8,520 8,520
Receivable due from Adviser -0- 5,606
Total assets 101,522,576 57,164,565
LIABILITIES
Payable for investment securities and foreign
currency purchased 4,740,789 5,476,675
Distribution fee payable 60,498 32,150
Payable for shares of beneficial interest redeemed 55,956 79,366
Advisory fee payable 48,007 -0-
Accrued expenses 115,660 110,973
Total liabilities 5,020,910 5,699,164
NET ASSETS $ 96,501,666 $51,465,401
COMPOSITION OF NET ASSETS
Shares of beneficial interest, at par $ 69 $ 46
Additional paid-in capital 81,773,153 49,719,182
Undistributed net investment income 657,809 339,779
Accumulated net realized gain on investments
and foreign currency transactions 7,717,255 980,259
Net unrealized appreciation of investments and
foreign currency denominated assets and
liabilities 6,353,380 426,135
$96,501,666 $51,465,401
CALCULATION OF MAXIMUM OFFERING PRICE
CLASS A SHARES
Net asset value and redemption price per share
($30,608,449/2,174,272 and $14,160,707/1,271,079
shares of beneficial interest issued and
outstanding, respectively) $14.08 $11.14
Sales charge-4.25% of public offering price .62 .49
Maximum offering price $14.70 $11.63
CLASS B SHARES
Net asset value and offering price per share
($59,978,243/4,261,102 and $31,978,874/2,828,583
shares of beneficial interest issued and
outstanding, respectively) $14.08 $11.31
CLASS C SHARES
Net asset value, redemption and offering price per
share ($5,914,974/419,843 and $5,325,820/470,876
shares of beneficial interest issued and
outstanding, respectively) $14.09 $11.31
See notes to financial statements.
27
STATEMENTS OF OPERATIONS ALLIANCE GROWTH INVESTORS AND
YEAR ENDED APRIL 30, 1996 CONSERVATIVE INVESTORS FUNDS
_______________________________________________________________________________
GROWTH CONSERVATIVE
INVESTORS INVESTORS
FUND FUND
------------ -----------
INVESTMENT INCOME
Interest $ 2,021,304 $2,814,820
Dividends (net of foreign tax withheld of
$13,968 and $2,991, respectively) 714,512 198,278
Total income 2,735,816 3,013,098
EXPENSES
Advisory fee 632,516 387,903
Distribution fee - Class A 81,307 45,690
Distribution fee - Class B 523,545 316,700
Distribution fee - Class C 48,786 48,204
Custodian 162,026 97,162
Transfer agency 155,203 82,228
Registration 61,777 45,427
Audit and legal 45,879 62,667
Printing 40,004 20,001
Trustees' fees 27,000 27,000
Amortization of organization expenses 10,980 10,980
Miscellaneous 6,383 10,413
Total expenses 1,795,406 1,154,375
Less: expenses waived and assumed by adviser
(See Note B) (214,077) (174,857)
Net expenses 1,581,329 979,518
Net investment income 1,154,487 2,033,580
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY
Net realized gain on investments 12,907,537 4,678,677
Net realized gain (loss) on foreign currency
transactions 171,948 (7,059)
Net change in unrealized appreciation
(depreciation) of investments 2,657,302 (792,045)
Net change in unrealized appreciation
(depreciation) of foreign currency
denominated assets and liabilities 676 (1,865)
Net gain on investments 15,737,463 3,877,708
NET INCREASE IN NET ASSETS FROM OPERATIONS $16,891,950 $5,911,288
See notes to financial statements.
28
ALLIANCE GROWTH INVESTORS AND
STATEMENTS OF CHANGES IN NET ASSETS CONSERVATIVE INVESTORS FUNDS
_______________________________________________________________________________
<TABLE>
<CAPTION>
GROWTH INVESTORS FUND CONSERVATIVE INVESTORS FUND
-------------------------- --------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
APRIL 30, APRIL 30, APRIL 30, APRIL 30,
1996 1995 1996 1995
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
Net investment income $ 1,154,487 $ 1,141,094 $ 2,033,580 $ 2,148,851
Net realized gain (loss) on investments
and foreign currency transactions 13,079,485 (1,679,163) 4,671,618 (3,216,833)
Net change in unrealized appreciation
(depreciation) of investments and foreign
currency denominated assets and liabilities 2,657,978 3,962,035 (793,910) 3,119,273
Net increase in net assets from operations 16,891,950 3,423,966 5,911,288 2,051,291
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income
Class A (510,038) (254,436) (740,336) (685,964)
Class B (687,510) (345,858) (1,250,244) (1,045,681)
Class C (64,858) (35,052) (194,637) (168,380)
Net realized gain on investments
Class A (1,147,583) (22,749) -0- -0-
Class B (2,234,313) (46,345) -0- -0-
Class C (210,790) (4,697) -0- -0-
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
Net increase (decrease) 14,701,805 16,138,284 (3,326,752) 1,247,586
Total increase 26,738,663 18,853,113 399,319 1,398,852
NET ASSETS
Beginning of year 69,763,003 50,909,890 51,066,082 49,667,230
End of year (including undistributed net
investment income of $657,809, $593,778,
$339,779 and $498,475 respectively) $96,501,666 $69,763,003 $51,465,401 $51,066,082
</TABLE>
See notes to financial statements.
29
NOTES TO FINANCIAL STATEMENTS ALLIANCE GROWTH INVESTORS AND
APRIL 30, 1996 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.
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 B shares purchased on or after August
2, 1993 and held for a period ending eight years after the end of the calendar
month of purchase will convert to Class A shares. 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 such 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 (loss) on foreign currency transactions for Growth Investors
and Conservative Investors Funds represents net foreign exchange gains and
losses from holdings of foreign currencies, foreign currency contracts,
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 each of 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 of 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. TAXES
It is each 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.
5. 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.
6. DIVIDENDS AND DISTRIBUTIONS
Dividends and distributions to shareholders are recorded on the ex-dividend
date.
30
ALLIANCE GROWTH INVESTORS AND
CONSERVATIVE INVESTORS FUNDS
_______________________________________________________________________________
7. INCOME AND EXPENSES
All income earned and expenses incurred by the Fund are borne on a pro-rata
basis by each outstanding class of shares, based on the proportionate interest
in the Fund represented by the shares of such Class, except that each Funds'
Class B and Class C shares bear higher distribution and in the case of Class B
higher 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.
8. 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
Distribution by Investment Companies, permanent book and tax difference
relating to shareholder distributions have been reclassified to additional
paid-in capital. As of April 30, 1996, accumulated net investment income was
credited and accumulated undistributed net realized gains was charged for
$171,950 for Alliance Growth Investors Fund. For Alliance Conservative
Investors Fund, accumulated net investment income was charged and accumulated
undistributed net realized gains was credited for $7,059 as of April 30, 1996.
Net investment income, net realized gains and net assets were not affected by
this change.
NOTE B: ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under the terms of an investment advisory agreement, the Funds pay Alliance
Capital Management L.P., the Investment Adviser an advisory fee at an annual
rate of .75% of each Fund's average daily net assets. 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 of both funds. Prior to August 2, 1993, the annual rate for
Class B shares was 2.15%. For the year ended April 30, 1996, such reimbursement
amounted to $214,077 and $174,857 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' shares are qualified for sale is 2.5% of the first $30 million of the
Funds' 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 $116,346 and $56,656 for the Growth Investors and
Conservative Investors Funds, respectively, for the year ended April 30, 1996.
Alliance Fund Distributors, Inc. (a wholly-owned subsidiary of the Adviser)
serves as the Distributor of each Fund's shares. The Distributor received
front-end sales charges of $9,704 from the sale of Class A shares and $92,064
in contingent deferred sales charges imposed upon redemptions by shareholders
of Class B shares for the year ended April 30, 1996 for the Growth Investors
Fund. The Distributor also received front-end sales charges of $4,538 from the
sale of Class A shares and $86,866 in contingent deferred sales charges imposed
upon redemptions by shareholders of Class B shares for the year ended April 30,
1996 for the Conservative Investors Fund.
Brokerage commissions paid on securities transactions for the year ended April
30, 1996 amounted to $386,197 and $75,237 for the Growth Investors and
Conservative Investors Funds, respectively, none of which was paid to
Donaldson, Lufkin & Jenrette Securities Corp. ('DLJ'), an affiliate of the
Adviser.
Trustees' fees include amounts owed to two of the Trustees under a deferred
compensation plan of $24,399 and $19,366 for the Growth Investors and
Conservative Investors Funds, respectively.
31
ALLIANCE GROWTH INVESTORS AND
NOTES TO FINANCIAL STATEMENTS (CONTINUED) CONSERVATIVE INVESTORS FUNDS
_______________________________________________________________________________
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. The Trustees currently limit payments under the
Class A plan to .30% of 1% 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
$2,178,212 and $187,335 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 $1,579,573 and $297,417, for
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 $165,177,093 and $157,144,113,
respectively, for the year ended April 30, 1996. There were purchases of
$43,784,447 and sales of $49,387,634 of U.S. Government and government agency
obligations for the year ended April 30, 1996. At April 30, 1996, the cost of
securities for federal income tax purposes for the Growth Investors Fund was
$88,972,110. Accordingly gross unrealized appreciation of investments was
$7,699,434 and gross unrealized depreciation of investments was $1,477,721
resulting in net unrealized appreciation of $6,221,713 excluding foreign
currency.
The Growth Investors and Conservative Investors Funds enter 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 counterparty to
meet the terms of a contract and from unanticipated movements in the value of a
foreign currency relative to the U.S. dollar. At April 30, 1996, there were no
outstanding forward exchange currency contracts for Growth Investors and
Conservative Investors Funds.
Purchases and sales of investment securities (excluding short-term investments)
for the Conservative Investors Fund aggregated $128,824,354 and $131,386,952,
respectively, for the year ended April 30, 1996. There were purchases of
$79,594,985 and sales of $89,084,847 of U.S. Government and government agency
obligations for the year ended April 30, 1996. At April 30, 1996, the cost of
securities for federal income tax purposes for the Conservative Investors Fund
was $50,900,373. Accordingly gross unrealized appreciation of investments was
$1,222,950 and gross unrealized depreciation of investments was $831,919
resulting in net unrealized appreciation of $391,031 excluding foreign currency.
32
ALLIANCE GROWTH INVESTORS AND
CONSERVATIVE INVESTORS FUNDS
_______________________________________________________________________________
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,
1996 1995 1996 1995
------------ ------------ -------------- --------------
CLASS A
Shares sold 623,012 878,301 $ 8,468,283 $10,219,392
Shares issued in
reinvestment of
dividends and
distributions 118,202 23,903 1,591,818 266,999
Shares redeemed (404,354) (508,295) (5,500,086) (5,946,807)
Net increase 336,860 393,909 $ 4,560,015 $ 4,539,584
CLASS B
Shares sold 1,018,816 1,384,786 $13,829,306 $16,126,761
Shares issued in
reinvestment of
dividends and
distributions 208,357 33,860 2,814,302 379,230
Shares redeemed (550,350) (485,135) (7,476,785) (5,718,545)
Net increase 676,823 933,511 $ 9,166,823 $10,787,446
CLASS C
Shares sold 186,320 188,858 $ 2,552,601 $ 2,197,932
Shares issued in
reinvestment of
dividends and
distributions 19,358 3,451 261,545 38,687
Shares redeemed (136,951) (122,670) (1,839,179) (1,425,365)
Net increase 68,727 69,639 $ 974,967 $ 811,254
33
ALLIANCE GROWTH INVESTORS AND
NOTES TO FINANCIAL STATEMENTS (CONTINUED) 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,
1996 1995 1996 1995
------------ ------------ -------------- --------------
CLASS A
Shares sold 246,346 548,552 $ 2,737,109 $ 5,617,109
Shares issued in
reinvestment of
dividends and
distributions 62,621 65,422 692,313 656,166
Shares redeemed (589,043) (566,559) (6,511,415) (5,791,900)
Net increase(decrease) (280,076) 47,415 $(3,081,993) $ 481,375
CLASS B
Shares sold 518,473 798,920 $ 5,839,933 $ 8,264,467
Shares issued in
reinvestment of
dividends and
distributions 102,379 94,772 1,150,234 960,854
Shares redeemed (697,358) (825,918) (7,823,066) (8,495,394)
Net increase(decrease) (76,506) 67,774 $ (832,899) $ 729,927
CLASS C
Shares sold 170,526 224,223 $ 1,931,267 $ 2,320,546
Shares issued in
reinvestment of
dividends and
distributions 16,002 15,711 179,841 159,243
Shares redeemed (135,782) (237,610) (1,522,968) (2,443,423)
Net increase 50,746 2,324 $ 588,140 $ 36,366
34
FINANCIAL HIGHLIGHTS ALLIANCE GROWTH INVESTORS FUND
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD
<TABLE>
<CAPTION>
CLASS A
------------------------------------------------------
YEAR ENDED APRIL 30, MAY 4,1992(A)
--------------------------------------- TO APRIL 30,
1996 1995 1994 1993
------------- ----------- ----------- -------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $12.08 $11.61 $11.35 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income .10* .25* .12* .20*
Net realized and unrealized gain on
investments 2.75 .38 .39 1.43
Net increase in net asset value from
operations 2.85 .63 .51 1.63
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.26) (.15) (.11) (.16)
Distributions from net realized gains (.59) (.01) (.14) (.12)
Total dividends and distributions (.85) (.16) (.25) (.28)
Net asset value, end of period $14.08 $12.08 $11.61 $11.35
TOTAL RETURN
Total investment return based on net
asset value (b) 23.87% 5.57% 4.46% 16.32%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $30,608 $22,189 $16,759 $3,503
Ratios to average net assets of:
Expenses, net of waivers/reimbursements 1.40% 1.40% 1.40% 1.40%(c)
Expenses, before waivers/reimbursements 1.65% 1.97% 2.33% 4.27%(c)
Net investment income 2.02% 2.32% 1.67% 1.91%(c)
Portfolio turnover rate 209% 134% 96% 114%
</TABLE>
See footnote summary on page 40.
35
FINANCIAL HIGHLIGHTS (CONTINUED) ALLIANCE GROWTH INVESTORS FUND
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD
<TABLE>
<CAPTION>
CLASS B
-----------------------------------------------------
YEAR ENDED APRIL 30, MAY 4,1992(A)
--------------------------------------- TO APRIL 30,
1996 1995 1994 1993
------------- ----------- ----------- ------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $12.09 $11.65 $11.41 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income .06* .17* .07* .07*
Net realized and unrealized gain on
investments 2.70 .38 .37 1.45
Net increase in net asset value from
operations 2.76 .55 .44 1.52
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.18) (.10) (.06) (.05)
Distributions from net realized gains (.59) (.01) (.14) (.06)
Total dividends and distributions (.77) (.11) (.20) (.11)
Net asset value, end of period $14.08 $12.09 $11.65 $11.41
TOTAL RETURN
Total investment return based on net
asset value (b) 23.06% 4.83% 3.84% 15.23%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $59,978 $43,328 $30,871 $7,999
Ratios to average net assets of:
Expenses, net of waivers/reimbursements 2.10% 2.10% 2.11% 2.15%(c)
Expenses, before waivers/reimbursements 2.35% 2.67% 3.00% 4.48%(c)
Net investment income 1.15% 1.62% .95% 1.07%(c)
Portfolio turnover rate 209% 134% 96% 114%
</TABLE>
See footnote summary on page 40.
36
ALLIANCE GROWTH INVESTORS FUND
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD
CLASS C
-----------------------------------
AUGUST. 2,
YEAR ENDED APRIL 30, 1993(D) TO
---------------------- APRIL 30,
1996 1995 1994
--------- ----------- -----------
Net asset value, beginning of period $12.10 $11.65 $11.88
INCOME FROM INVESTMENT OPERATIONS
Net investment income .06* .18* .08*
Net realized and unrealized gain (loss)
on investments 2.70 .38 (.11)
Net increase (decrease) in net asset
value from operations 2.76 .56 (.03)
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.18) (.10) (.06)
Distributions from net realized gains (.59) (.01) (.14)
Total dividends and distributions (.77) (.11) (.20)
Net asset value, end of period $14.09 $12.10 $11.65
TOTAL RETURN
Total investment return based on net
asset value (b) 23.04% 4.91% (.26)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $5,915 $4,247 $3,280
Ratios to average net assets of:
Expenses, net of waivers/reimbursements 2.10% 2.10% 2.10%(c)
Expenses, before waivers/reimbursements 2.36% 2.66% 3.02%(c)
Net investment income .13% 1.62% 1.04%(c)
Portfolio turnover rate 209% 134% 96%
See footnote summary on page 40.
37
FINANCIAL HIGHLIGHTS (CONTINUED) ALLIANCE CONSERVATIVE INVESTORS FUND
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD
<TABLE>
<CAPTION>
CLASS A
-----------------------------------------------------
YEAR ENDED APRIL 30, MAY 4,1992(A)
--------------------------------------- TO APRIL 30,
1996 1995 1994 1993
------------- ----------- ----------- ------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $10.38 $10.37 $10.79 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income .51* .48* .31* .39*
Net realized and unrealized gain (loss)
on investment .80 (.02) (.26) .82
Net increase in net asset value from
operations 1.31 .46 .05 1.21
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.55) (.45) (.29) (.36)
Distributions from net realized gains -0- -0- (.18) (.06)
Total dividends and distributions (.55) (.45) (.47) (.42)
Net asset value, end of period $11.14 $10.38 $10.37 $10.79
TOTAL RETURN
Total investment return based on net
asset value (b) 12.69% 4.65% .35% 12.25%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $14,161 $16,105 $15,595 $5,339
Ratios to average net assets of:
Expenses, net of waivers/reimbursements 1.40% 1.40% 1.40% 1.40%(c)
Expenses, before waivers/reimbursements 1.73% 1.83% 2.03% 3.45%(c)
Net investment income 4.43% 4.66% 3.43% 3.92%(c)
Portfolio turnover rate 267% 248% 133% 84%
</TABLE>
See footnote summary on page 40.
38
ALLIANCE CONSERVATIVE INVESTORS FUND
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD
<TABLE>
<CAPTION>
CLASS B
----------------------------------------------------
YEAR ENDED APRIL 30, MAY 4,1992(A)
--------------------------------------- TO APRIL 30,
1996 1995 1994 1993
------------- ----------- ----------- ------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $10.51 $10.47 $10.88 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income .43* .46* .24* .24*
Net realized and unrealized gain (loss)
on investments .82 (.02) (.26) .89
Net increase (decrease) in net asset
value from operations 1.25 .44 (.02) 1.13
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.45) (.40) (.21) (.22)
Distributions from net realized gains -0- -0- (.18) (.03)
Total dividends and distributions (.45) (.40) (.39) (.25)
Net asset value, end of period $11.31 $10.51 $10.47 $10.88
TOTAL RETURN
Total investment return based on net
asset value (b) 11.95% 3.91% (.31)% 11.39%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $31,979 $30,542 $29,697 $9,210
Ratios to average net assets of:
Expenses, net of waivers/reimbursements 2.10% 2.10% 2.11% 2.15%(c)
Expenses, before waivers/reimbursements 2.44% 2.52% 2.73% 3.95%(c)
Net investment income 3.72% 3.96% 2.72% 3.06%(c)
Portfolio turnover rate 267% 248% 133% 84%
</TABLE>
See footnote summary on page 40.
39
FINANCIAL HIGHLIGHTS (CONTINUED) ALLIANCE CONSERVATIVE INVESTORS FUND
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD
CLASS C
---------------------------------
AUGUST 2,
YEAR ENDED APRIL 30, 1993(D) TO
-------------------- APRIL 30,
1996 1995 1994
--------- --------- -----------
Net asset value, beginning of period $10.52 $10.47 $11.12
INCOME FROM INVESTMENT OPERATIONS
Net investment income .41* .46* .18*
Net realized and unrealized gain (loss)
on investments .83 (.01) (.50)
Net increase (decrease) in net asset
value from operations 1.24 .45 (.32)
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.45) (.40) (.15)
Distributions from net realized gains -0- -0- (.18)
Total dividends and distributions (.45) (.40) (.33)
Net asset value, end of period $11.31 $10.52 $10.47
TOTAL RETURN
Total investment return based on net
asset value (b) 11.84% 4.01% (2.98)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $5,326 $4,419 $4,375
Ratios to average net assets of:
Expenses, net of waivers/reimbursements 2.10% 2.10% 2.10%(c)
Expenses, before waivers/reimbursements 2.45% 2.52% 2.69%(c)
Net investment income 3.71% 3.97% 2.94%(c)
Portfolio turnover rate 267% 248% 133%
* 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.
40
ALLIANCE GROWTH INVESTORS AND
REPORT OF INDEPENDENT ACCOUNTANTS 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, 1996, 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, 1996 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 24, 1996
41
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-MARKETING
WAYNE D. LYSKI, VICE PRESIDENT
EDMUND P. BERGAN, JR., CLERK
MARK D. GERSTEN, TREASURER & CHIEF FINANCIAL OFFICER
VINCENT S. NOTO, CONTROLLER & CHIEF ACCOUNTING OFFICER
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
ROPES & GRAY
One International Place
Boston, MA 02110-02624
TRANSFER AGENT
ALLIANCE FUND SERVICES, INC.
P.O. Box 1520
Secaucus, NJ 07096-1520
Toll-Free 1-800-221-5672
INDEPENDENT ACCOUNTANTS
PRICE WATERHOUSE LLP
1177 Avenue of the Americas
New York, New York 10036-2798
(1) Member of the Audit Committee.
42
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 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 Small Cap Fund
Alliance Growth Fund
Alliance Premier Growth 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 Utility Income Fund
AGGRESSIVE GROWTH
Alliance Quasar Fund
Alliance Technology Fund
INTERNATIONAL
Alliance All-Asia Investment Fund
Alliance International Fund
Alliance New Europe Fund
Alliance Worldwide Privatization Fund
CLOSED-END FUNDS
Alliance All-Market Advantage Fund
Alliance Global Environment 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
New Jersey Portfolio
New York Portfolio
Virginia Portfolio
Alliance Treasury Reserves
Alliance Money Market Fund
Prime Portfolio
Government Portfolio
General Municipal Portfolio
43
ALLIANCE GROWTH INVESTORS FUND, INC.
ALLIANCE CONSERVATIVE INVESTORS FUND, INC.
1345 Avenue of the Americas
New York, NY 10105
(800) 221-5672
ALLIANCECAPITAL
INVESTING WITHOUT THE MYSTERY.
THIS REPORT IS INTENDED SOLELY FOR DISTRIBUTION TO CURRENT SHAREHOLDERS OF THE
FUND.
R THESE REGISTERED SERVICE MARKS USED UNDER LICENSE FROM THE OWNER, ALLIANCE
CAPITAL MANAGEMENT L.P.
GICIAR
