ALLIANCE GROWTH INVESTORS FUND AND
ALLIANCE CONSERVATIVE INVESTORS FUND
SEMI-ANNUAL REPORT
OCTOBER 31, 1995
Alliance
Mutual funds without the Mystery.
ALLIANCE GROWTH INVESTORS AND
LETTER TO SHAREHOLDERS CONSERVATIVE INVESTORS FUNDS
_______________________________________________________________________________
December 11, 1995
Dear Shareholder:
In our letter to you we continue to address shareholders in both Alliance
Growth Investors Fund and Alliance Conservative Investors Fund, a practice we
began with our December 1994 letter.
MARKET & ECONOMIC OUTLOOK
VALUATION RISK. With the S&P 500 selling above $600, a lot will have to go
right to generate meaningful price gains over the next twelve months. Though
the market seems reasonably valued in the context of current interest rates and
inflation levels-about 15.7x estimated 1995 earnings of $37-after-tax profit
margins are at a 25-year high. At 41x dividends, the S&P 500 is at an all-time
peak valuation by that measure.
Further market gains REQUIRE the continuation of moderate real gross domestic
product growth and low inflation. A strong rebound in growth risks a lagged
pick-up in inflation and immediately higher interest rates, posing a valuation
risk for the market. Conversely, growth below 2% would cap profit growth
immediately and tend to deteriorate into recession over time.
FAVORABLE OUTLOOK FOR MODERATE GROWTH AND LOW INFLATION. Fortunately, prospects
for continued non-inflationary growth are good. On a cyclical basis, autos and
housing have stabilized with lower interest rates, inventories appear to have
adjusted, and with final demand growing at a 2.5% rate, industrial production,
employment and income statistics should gradually reaccelerate. Conversely,
real interest rates and debt levels are high, consumer confidence appears to be
slipping, mergers and consolidations continue to adversely impact job growth,
Europe and Japan remain quite weak and the recent rise in the dollar may
further weaken the U.S. trade position. On balance, moderate growth of 2.5% or
so seems the most likely outcome over the next 3-4 quarters.
Several secular trends also support a moderate growth, low inflation
environment:
.Aging populations and reduced secular demand for consumer goods argue for
limited pricing power and higher savings rates in the U.S. and other developed
countries.
. Modest growth in the labor force together with continuing advances and
falling prices in technology suggest a sustained rise in capital/labor ratios
in the United States, despite high real interest rates. Productivity should
continue to improve, enabling continued growth in an environment of weaker
consumer demand.
. Real progress in lowering out year budget deficits appears likely in 1996.
This would enable the real cost of capital to decline and enhance the
productivity outlook.
. As developing economies continue to embrace free market policies and global
capital flows increase, upward pressures on labor costs in the developed world
will be mediated. The demand for capital goods from the developed world should
remain strong, and ultimately, improving living standards should create a new
and necessary source of demand for consumer goods.
Thus, while the risks to the stock market are high if the U.S. economy deviates
from a non-inflationary growth track, the prospects for remaining on that track
seem favorable, and we believe the market can still go somewhat higher (though
probably not without temporary setbacks). This potential is reinforced by
current money flow trends. Individuals continue to accumulate equity mutual
funds; corporations are still shrinking the outstanding supply of stock as
acquisition and buy-back activity exceed initial public offering and secondary
offering activity; and foreigners may be tempted to buy the recent rise in the
U.S. dollar.
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.
As we mentioned in our last letter, throughout much of 1994 we erred on the
side of caution, holding a below-average exposure to common stocks and
above-average exposure to fixed income and cash. At that time 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 in the last six months is now
tracking expectations.
1
ALLIANCE GROWTH INVESTORS AND
CONSERVATIVE INVESTORS FUNDS
_______________________________________________________________________________
For the twelve- and six-month periods ended October 31, 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 October 31, 1995
------------------------
ALLIANCE GROWTH INVESTORS FUND
Class A +18.95% +14.32%
Class B +18.16% +13.98%
Class C +18.16% +13.89%
S&P 500 +26.36% +14.40%
70/30 COMPOSITE:
S&P 500/LB
Aggregate Bond Index +21.65% +12.94%
The Fund's total returns are based on the net asset values of each class of
shares as of October 31; additional investment results appear on page 3.
At this writing, the Fund is just over 60% invested in common stocks. Seven
percentage points of that is in foreign equities. Roughly 30% of the portfolio
is invested in fixed income securities with a market-like duration and less
than 10% is in cash. This reflects a moderately more cautious position than
when we last reported six months ago. Stock prices have continued to rise even
as the economy and profit prospects weaken. Thus, we have slightly reduced U.S.
equity exposure and increased the Fund's bond holdings and foreign equity
exposure.
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 Fund, the equity portfolio is invested in generally less
volatile stocks and owns no foreign equities.
The conservative stance toward equity exposure just described caused the
portfolio to lag comparable benchmarks for most of the year. We did not
materially increase equity exposure six months ago as we did in Growth
Investors Fund given our more conservative approach to the management of this
portfolio.
For the twelve- and six-month periods ended October 31, 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 LB Aggregate Bond
Index and the unmanaged S&P 500-stock Index, respectively:
Twelve Months Six Months
Through October 31, 1995
------------------------
ALLIANCE CONSERVATIVE INVESTORS FUND
Class A +14.87% +8.70%
Class B +14.07% +8.31%
Class C +14.17% +8.31%
LB AGGREGATE BOND INDEX +18.43% +9.55%
70/30 COMPOSITE:
LB Aggregate Bond Index/S&P 500 +19.02% +11.00%
The Fund's total returns are based on the net asset values of each class of
shares as of October 31; additional investment results appear on page 4.
Currently, the Fund is invested about 18% in common stocks, 77% in fixed income
securities with a market-like duration and 5% in cash.
We appreciate your investment in Alliance's asset allocation funds and look
forward to reporting their progress to you in the coming period.
Sincerely,
John D. Carifa
Chairman and President
2
INVESTMENT RESULTS ALLIANCE GROWTH INVESTORS FUND
_______________________________________________________________________________
AVERAGE ANNUAL TOTAL RETURN AS OF OCTOBER 31, 1995
CLASS A SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
---------------------------
. One Year +18.95% +13.92%
. Since Inception* +11.59% +10.23%
CLASS B SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
---------------------------
. One Year +18.16% +14.16%
. Since Inception* +10.79% +10.56%
CLASS C SHARES
. One Year +18.16%
. Since Inception* +8.11%
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 CONSERVATIVE INVESTORS FUND
_______________________________________________________________________________
AVERAGE ANNUAL TOTAL RETURN AS OF OCTOBER 31, 1995
CLASS A SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
---------------------------
. One Year +14.87% +9.99%
. Since Inception* +7.36% +6.04%
CLASS B SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
---------------------------
. One Year +14.07% +10.07%
. Since Inception* +6.60% +6.35%
CLASS C SHARES
. One Year +14.17%
. Since Inception* +4.03%
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.
4
TEN LARGEST HOLDINGS*
OCTOBER 31, 1995 (UNAUDITED) ALLIANCE GROWTH INVESTORS FUND
_______________________________________________________________________________
COMPANY VALUE PERCENT OF NET ASSETS
- -------------------------------------------------------------------------------
U.S. Treasury Notes $12,123,977 14.5%
U.S. Treasury Bonds 3,106,966 3.7
Philip Morris Cos., Inc. 2,281,500 2.7
Federal National Mortgage Association,
6.00%, 12/01/09 2,081,026 2.5
Tele-Communications, Inc.
(common stock and corporate bond) 1,790,494 2.2
AT&T Corp. 1,728,000 2.1
Gillette Co. 1,693,125 2.0
Intel Corp. 1,537,250 1.9
General Electric Co. 1,454,750 1.7
Merck & Co., Inc. 1,437,500 1.7
$29,234,588 35.0%
MAJOR PORTFOLIO CHANGES (A)
SIX MONTHS ENDED OCTOBER 31, 1995 (UNAUDITED)
_______________________________________________________________________________
SHARES
----------------------------
PURCHASES BOUGHT HOLDINGS 10/31/95
- -------------------------------------------------------------------------------
Travelers Group, Inc. 28,000 28,000
PepsiCo., Inc. 25,000 25,000
Monsanto Co. 11,000 11,000
AT&T Corp. 17,000 27,000
Intel Corp. 19,000 22,000
General Motors Corp. Cl.E 20,000 20,000
Schering-Plough Corp. 20,000 20,000
Columbia/HCA Healthcare Corp. 19,000 25,000
Microsoft Corp. 8,000 8,000
ITT Corp. 6,000 6,000
SALES SOLD HOLDINGS 10/31/95
- -------------------------------------------------------------------------------
Bank of New York Co., Inc. 40,000 -0-
Medtronic, Inc. 8,000 11,000
IBP, Inc. 28,000 -0-
Aluminum Co. of America 20,000 -0-
Citicorp 14,000 -0-
Andrew Corp. 15,000 -0-
Reynolds & Reynolds Co., Cl.A 30,000 -0-
AFLAC, Inc. 20,000 -0-
Phillips Petroleum Co. 22,000 -0-
Hercules, Inc. 15,000 -0-
* Excludes short-term obligations.
(a) Adjusted for stock splits.
5
TEN LARGEST HOLDINGS
OCTOBER 31, 1995 (UNAUDITED) ALLIANCE CONSERVATIVE INVESTORS FUND
_______________________________________________________________________________
PERCENT OF
COMPANY VALUE NET ASSETS
- -------------------------------------------------------------------------------
U.S. Treasury Notes $19,859,929 39.1%
Federal National Mortgage Association 3,974,179 7.8
U.S. Treasury Bonds 3,318,277 6.6
Federal Home Loan Bank, 7.00%, 9/01/25 1,943,351 3.8
Tele-Communications, Inc., 10.125%, 4/15/22 1,587,688 3.1
Premier Auto Trust, 7.15%, 2/04/99 1,530,465 3.0
Prudential Insurance Co., 7.65%, 7/01/07 1,478,130 2.9
Liberty Mutual Capital Corp., 8.50%, 5/15/25 1,413,179 2.8
Italy (Republic of), 6.875%, 9/27/23 1,200,719 2.4
Time Warner Entertainment Co., 8.375%, 3/15/23 1,177,520 2.3
$37,483,437 73.8%
MAJOR PORTFOLIO CHANGES
SIX MONTHS ENDED OCTOBER 31, 1995 (UNAUDITED)
PRINCIPAL
----------------------
HOLDINGS
PURCHASES BOUGHT 10/31/95
- -------------------------------------------------------------------------------
Federal Home Loan Bank, 7.00%, 9/01/25 $1,959,000 $1,959,000
Federal National Mortgage Association, 6.00%,12/01/09 $3,127,000 $3,127,000
Lehman Brothers Inc, 7.125%, 7/15/02 $1,100,000 $1,100,000
Liberty Mutual Capital Corp., 8.50%, 5/15/25 $1,325,000 $1,325,000
Prudential Insurance Co., 7.65%, 7/01/07 $1,450,000 $1,450,000
Tele-Communications, 10.125%, 4/15/22 $1,330,000 $1,330,000
Time Warner Entertainment Co., 8.375%, 3/15/23 $1,150,000 $1,150,000
U.S. Treasury Note, 5.75%, 8/15/03 $1,500,000 $1,500,000
U.S. Treasury Note, 6.25%, 5/31/00 $2,100,000 $2,100,000
U.S. Treasury Note, 6.50%, 8/15/05 $1,085,000 $1,085,000
HOLDINGS
SALES SOLD 10/31/95
- -------------------------------------------------------------------------------
Federal National Mortgage Association, 8.00%, 4/01/25 $1,272,000 -0-
General Motors Acceptance Corp; 1.00%, 10/15/02 $1,300,000 -0-
Georgia Pacific Corp; 8.25%, 3/01/23 $1,300,000 -0-
Government National Mortgage Association,7.00%,2/15/24 $2,455,000 -0-
Government National Mortgage Association,7.00%,4/15/25 $2,142,000 -0-
Government National Mortgage Association,7.00%,6/15/23 $ 281,000 -0-
Government National Mortgage Association,7.50%,11/15/23 $1,844,000 -0-
U. S. Treasury Note, 7.125%, 9/30/99 $3,100,000 -0-
U. S. Treasury Note, 7.50%, 2/15/05 $1,900,000 -0-
U. S. Treasury Note, 7.875%, 11/15/04 $1,600,000 -0-
6
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1995 (UNAUDITED) ALLIANCE GROWTH INVESTORS FUND
_______________________________________________________________________________
COMPANY SHARES VALUE
- ----------------------------------------------------------------------
COMMON STOCKS & OTHER INVESTMENTS59.2%
UNITED STATES INVESTMENTS52.1%
CONSUMER NONCYCLICALS20.3%
BEVERAGES2.3%
Coca-Cola Co. 9,000 $ 646,875
PepsiCo., Inc. 25,000 1,318,750
1,965,625
BROADCASTING3.4%
Capital Cities ABC, Inc. 5,000 593,125
Comcast Corp., Cl.A (SPL) 45,000 804,375
Cox Communications, Inc. Cl.A* 25,000 468,750
Tele-Communications, Inc.* 26,350 648,869
Tele-Communications, Inc. Cl.A* 18,000 306,000
2,821,119
ENTERTAINMENT & LEISURE1.9%
Carnival Corp. 30,000 697,500
Quality Dino Entertainment, Ltd.* 3,000 10,125
Walt Disney Co. 15,000 864,375
1,572,000
DRUGS, HOSPITAL SUPPLIES & MEDICAL SERVICES8.0%
Columbia/HCA Healthcare Corp. 25,000 1,228,125
Healthsource, Inc.* 10,000 530,000
Medtronic, Inc. 11,000 635,250
Merck & Co., Inc. 25,000 1,437,500
Pfizer, Inc. 20,000 1,147,500
Schering-Plough Corp. 20,000 1,072,500
United Healthcare Corp. 11,000 584,375
6,635,250
COSMETICS2.0%
Gillette Co. 35,000 1,693,125
TOBACCO2.7%
Philip Morris Cos., Inc. 27,000 2,281,500
16,968,619
TECHNOLOGY15.3%
COMPUTER HARDWARE1.0%
COMPAQ Computer Corp.* 15,000 836,250
COMPUTER SOFTWARE2.2%
cisco Systems, Inc.* 12,000 930,000
General Motors Corp. Cl.E 20,000 942,500
1,872,500
ELECTRICAL EQUIPMENT0.4%
Tellabs, Inc.* 9,500 323,000
ELECTRONICS1.8%
Applied Materials, Inc.* 14,000 701,750
Motorola, Inc. 12,000 787,500
1,489,250
OFFICE EQUIPMENT3.3%
Alco Standard Corp. 8,500 752,250
Microsoft Corp.* 8,000 800,000
Oracle Corp.* 20,000 872,500
Xerox Corp. 3,000 389,250
2,814,000
SEMI-CONDUCTORS & RELATED2.6%
Intel Corp. 22,000 1,537,250
Lam Research Corp.* 5,500 334,812
National Semiconductor Corp.* 13,000 316,875
2,188,937
TELECOMMUNICATIONS4.0%
Air-Touch Communications, Inc.* 15,000 427,500
AT&T Corp. 27,000 1,728,000
DSC Communications Corp.* 9,000 333,000
MCI Communications Corp. 30,000 748,125
7
PORTFOLIO OF INVESTMENTS (CONTINUED) ALLIANCE GROWTH INVESTORS FUND
_______________________________________________________________________________
COMPANY SHARES VALUE
- ----------------------------------------------------------------------
Total Access Communication Public Co. Ltd.*(a) 16,000 $ 96,800
3,333,425
12,857,362
CREDIT SENSITIVE7.3%
BANKS1.8%
MBNA Corp. 20,000 737,500
NationsBank Corp. 12,000 789,000
1,526,500
FINANCIAL SERVICES0.6%
Merrill Lynch & Co., Inc. 8,000 444,000
Banco Latinoamericano
De Exportaciones, S.A. 1,000 41,750
Banks
485,750
INSURANCE4.9%
American International Group, Inc. 7,500 632,813
General Reinsurance Corp. 4,000 579,500
MGIC Investment Corp. 8,000 455,000
NAC Re Corp. 14,000 491,750
PMI Group, Inc. 10,000 480,000
Travelers Group, Inc. 28,000 1,414,000
4,053,063
6,065,313
BASIC MATERIALS2.1%
CHEMICALS2.1%
Monsanto Co. 11,000 1,152,250
Morton International, Inc. 20,000 610,000
1,762,250
CONSUMER CYCLICALS2.1%
RESTAURANTS & LODGING1.2%
La Quinta Inns, Inc. 11,300 290,975
McDonald's Corp. 17,000 697,000
987,975
RETAIL-0.9%
AutoZone, Inc.* 30,000 742,500
1,730,475
CAPITAL GOODS1.7%
ELECTRICAL EQUIPMENT1.7%
General Electric Co. 23,000 1,454,750
DIVERSIFIED1.3%
Allied Signal, Inc. 9,000 382,500
ITT Corp. 6,000 735,000
1,117,500
ENERGY1.3%
OILDOMESTIC0.0%
XCL, Ltd.* 5,000 2,188
PIPELINES1.3%
Enron Corp. 31,000 1,065,625
1,067,813
BASIC INDUSTRIES-0.7%
MINING & METALS-0.7%
UCAR International, Inc.* 19,000 541,500
Total United States Investments
(cost $36,837,961) 43,565,582
FOREIGN INVESTMENTS7.1%
AUSTRALIA0.2%
AAPC, Ltd. 15,000 8,684
Food Services & Lodging
Advance Bank Australia 5,000 36,944
Banks
Biron Corp., Ltd. 10,000 3,808
Mining & Metals
Brambles Industries, Ltd. 1,000 10,634
Trucking & Shipping
Gwalia Consolidated, Ltd. 5,000 7,808
Mining & Metals
Oil Search, Ltd. 15,000 12,683
Oil & Gas Exploration
Plutonic Resources 5,000 22,852
Mining & Metals
Villa World, Ltd. 40,000 29,250
Homebuilders
Westralian Sands 10,000 27,803
Miscellaneous
160,466
8
ALLIANCE GROWTH INVESTORS FUND
_______________________________________________________________________________
COMPANY SHARES VALUE
- ----------------------------------------------------------------------
AUSTRIA0.1%
Ams Austria Mikros 150 $ 27,799
Miscellaneous
Omv AG 400 34,540
OilInternational
Vae Eisenbahnsyst 100 8,948
Electrical Equipment
71,287
CANADA0.7%
Accugraph Corp.* 4,500 12,427
Computer Software & Services
Cinar Films, Inc.* 1,000 12,000
Leisure Related
Maax, Inc.* 1,500 10,216
Household Furniture & Appliances
Magna International, Inc. 12,000 519,000
Machinery
Nelvana Ltd.*(a) 1,500 22,392
Leisure Related
576,035
CHILE0.1%
Banco Osornoy La Un (ADR) 1,000 13,500
Banking-Regional
Enersis S.A. (ADR) 1,500 37,688
UtilityElectric
51,188
CHINA0.0%
Ek Chor China Motorcycle Co. 1,000 14,000
Auto Related
DENMARK0.2%
Novo Nordisk AS 200 25,439
Hospital Supplies & Medical Services
Scandinavian Mobility Intl.(a) 3,200 76,135
Miscellaneous
Tele Danmark AS 600 31,296
UtilityTelephone
132,870
FINLAND0.2%
Aamulehti Yhtymae OY-II* 2,000 47,086
Printing, Publishing & Broadcasting
Coflexip S.A. (ADR) 1,088 15,232
OilSupplies & Construction
Enso-Gutzeit OY 6,000 47,038
Forest Products
Nokia AB OY Corp. pfd. 800 45,767
Telecommunications
Tamro Yhtymae OY AB 4,000 16,480
Hospital Supplies & Medical Services
171,603
FRANCE0.1%
Casino Guichard Perrachon 1,000 28,629
Recycling Equipment
Ecco Travail Temporary 600 41,840
Temporary Help
Lafarge Coppee S.A. 330 21,871
Building & Construction
Michelin 500 20,194
Tire & Rubber
112,534
GERMANY0.3%
Apcoa Parking AG(b) 300 20,247
Business Services
Fielmann AG pfd.(b) 800 44,047
Auto & Trucks
Merck KG(a)(b) 2,000 83,547
Hospital Supplies & Medical Services
Schwarz Pharma(b) 500 21,135
Hospital Supplies & Medical Services
9
PORTFOLIO OF INVESTMENTS (CONTINUED) ALLIANCE GROWTH INVESTORS FUND
_______________________________________________________________________________
COMPANY SHARES VALUE
- ----------------------------------------------------------------------
SGL Carbon AG(a)(b) 1,700 $111,473
ChemicalsSpecialty
Veba AG(b) 200 8,211
UtilityElectric
288,660
HONG KONG0.2%
Amoy Properties 20,000 19,271
Real Estate
Asia Pacific Resources Holdings, Ltd. 1,000 7,250
Paper
Guangzhou Investment 100,000 20,565
Investment companies
Hong Kong Land Holdings 15,000 27,000
Real Estate
Hong Kong Telecomm 10,000 17,460
UtilityTelephone
HSBC Holdings Plc. 2,000 29,101
Banks
International Bank Of Asia 30,300 17,864
Banks
Paul Y-ITC Construction Holdings, Inc. 50,000 10,735
Building & Construction
Sing Tao Holdings, Ltd. 30,000 11,576
Printing, Publishing & Broadcasting
160,822
INDIA0.0%
Gujarat Narmada Valley Fertilizers Co.,
Ltd. (GDR)(a) 1,800 7,610
Basic Material
Shiram Indl. Enterprises, Ltd.(GDR)(a) 2,400 13,200
Food
20,810
INDONESIA0.0%
Indonesian Satellite Corp. (ADR) 1,000 33,125
Telecommunications
IRELAND0.1%
Allied Irish Bank 82 $414
Banks
Aran Energy 30,000 36,048
Energy
Crean James 10,000 32,378
Food
Irish Continental Group 4,500 34,240
Trucking & Shipping
103,080
ITALY0.1%
Industrie Natuzzi S.p.A. (ADS) 800 32,000
Household Products
Stet Societa Finanziaria Telfonica S.p.A. 6,000 16,995
UtilityTelephone
48,995
JAPAN2.4%
Akita Bank(b) 2,000 13,197
Banking-Regional
Alpine Electronics(b) 3,000 41,644
Electronics
Asahi Bank(b) 1,000 9,971
Banking-Regional
Asahi Diamond Industrial(b) 1,000 12,806
Machinery
Asatsu, Inc.(b) 1,000 34,508
Professional Services
Aval Data Corp.(b) 1,000 21,115
Semi-Conductors & Related
Canon, Inc.(b) 3,000 51,322
Office Equipment
Chiyoda Co.(b) 1,000 19,649
RetailGeneral
Chodai Co.(b) 1,000 31,869
Building & Construction
Credit Saison Co.(b) 2,600 54,646
RetailGeneral
Daibiru Corp.(b) 2,000 20,333
Real Estate
Daiichi Corp.(b) 1,000 20,627
RetailGeneral
10
ALLIANCE GROWTH INVESTORS FUND
_______________________________________________________________________________
COMPANY SHARES VALUE
- ----------------------------------------------------------------------
Dainippon Ink & Chemical, Inc.(b) 2,000 $ 8,505
Chemicals
Eiden Sakakiya Co.(b) 1,000 11,633
Retail
Eyeful Home Technology(b) 1,000 18,867
Building & Construction
Fujitsu Electronics(b) 2,000 23,853
Electronics
Fukuda Corp.(b) 1,000 9,287
Building & Construction
Hachijuni Bank(b) 1,000 11,144
Banks
Hitachi Metals, Ltd.(b) 2,000 24,635
Cosmetics
Honda Motor Co.(b) 3,000 52,202
Auto Related
Hoya Corp.(b) 1,000 29,327
Industrial Machinery
Idec Izumi Corp.(b) 3,000 25,808
Electrical Equipment
Ishihara Sangyo(b) 14,000 41,605
Chemicals
Kaneshita Construction(b) 2,000 25,221
Building & Construction
Kawasaki Kisen(b) 10,000 26,785
Trucking & Shipping
Keihanshin Real Estate(b) 2,000 12,708
Real Estate
Keyence Corp.(b) 300 36,952
Machinery
Koa Fire & Marine(b) 8,000 43,717
International
Mabuchi Motor Co.(b) 600 36,307
Technology-Computer Peripherals
Matsushita Electrical Industries(b) 1,000 14,175
Electrical Equipment
Matsuyadenki Co.(b) 1,000 8,886
RetailGeneral
Minebea Co., Ltd.(b) 2,000 16,228
Machinery
Ministop Co.(b) 1,000 24,244
Retail-Food
Mitsubishi Bank(b) 1,000 19,551
Banks
Mitsubishi Estate(b) 2,000 21,311
Miscellaneous
Mitsubishi Materials Corp.(b) 2,000 9,033
Miscellaneous
Mitsubishi Trust and Bank(b) 2,000 27,958
Banks
Mitsui Home Co.(b) 1,000 14,175
Homebuilders
Nanno Construction(b) 2,000 26,394
Building & Construction
NEC Corp.(b) 4,000 52,789
Electronics
New Oji Paper Co., Ltd.(b) 1,000 9,179
Paper
Ngk Spark Plug Co.(b) 1,000 13,686
Semi-Conductors & Related
Nichiei Co.(b) 1,000 62,075
Credit Sensitive
Nichiha Corp.(b) 1,000 16,619
Building Materials & Forest Products
Nikon Corp.(b) 2,000 28,545
Semi-Conductors & Related
Nippon Electric Glass(b) 1,000 18,476
Consumer Appliances
Nippon Kanzai Co.(b) 1,000 28,349
Business Services
Nippon Paper Industries Co.(b) 3,000 20,617
Paper
Nippon TV Network(b) 100 23,853
Broadcasting
Nissen Co.(b) 1,000 28,838
RetailGeneral
NSK Ltd.(b) 3,000 17,977
Machinery
Ohmoto Gumi, Co.(b) 1,000 22,484
Building & Construction
11
PORTFOLIO OF INVESTMENTS (CONTINUED) ALLIANCE GROWTH INVESTORS FUND
_______________________________________________________________________________
COMPANY SHARES VALUE
- ----------------------------------------------------------------------
Omron Corp.(b) 2,000 $ 46,728
Machinery
Paris Miki, Inc.(b) 1,000 31,673
RetailGeneral
Penta Ocean Construction(b) 3,000 21,291
Homebuilders
Promise Co.(b) 500 19,698
Miscellaneous
PS Corp.(b) 1,400 23,540
Building & Construction
Sankyo Co.(b) 2,000 43,990
Hospital Supplies & Medical Services
Santen Pharmaceutical Co.(b) 1,000 23,657
Drugs
Sanyo Shinpan Finance Co., Ltd.(b) 500 35,681
Financial Services
Sato Corp.(b) 1,000 20,529
Technology-Electronics
Sekisui Chemical Co.(b) 2,000 26,003
Chemicals
Seven Eleven Japan(b) 1,000 66,670
RetailGeneral
Sho Bond Corp.(b) 1,000 32,162
Building & Construction
SMC Corp.(b) 700 49,201
Industrial Machinery
Sotoh Co.(b) 1,000 11,242
Apparel & Textile
Takeda Chemical Industries(b) 2,000 28,154
Drugs
Teijin(b) 2,000 9,170
Textile Products
Toda Corp.(b) 3,000 24,517
Building & Construction
Toho Bank(b) 2,000 13,412
Banking-Regional
Tokyo Broadcasting(b) 1,000 14,663
Broadcasting
Tokyo Electron, Ltd.(b) 1,000 43,404
Semi-Conductors & Related
Wesco Investments, Ltd.(b) 1,200 30,735
Building & Construction
Xebio Co.(b) 300 11,144
RetailGeneral
Yamaichi Securities Co.(b) 5,000 26,199
Financial Services
Yamanashi Chuo Bank(b) 2,000 19,942
Banking-Regional
Yamanouchi Pharmaceutical(b) 1,000 22,288
Drugs
Yaskawa Electric Corp.(b) 9,000 37,744
Electronics
2,029,122
KOREA0.0%
Yukong, Ltd. 22 231
Oil-International
Yukong, Ltd. (GDR)(a) 575 6,038
OilInternational
Yukong, Ltd. (GDS) 185 1,942
OilInternational
8,211
MALAYSIA0.2%
Hock Hua Bank Berhad 5,000 14,758
Banks
Kim Hin Ind. Berhad 750 449
Building & Construction
Lion Corp. Berhad 10,000 13,774
Mining & Metals
Malaysian Assurance 6,000 24,321
Insurance
MBF Capital Berhad 20,000 18,890
Financial Services
Metacorp Berhad 10,000 25,384
Engineering & Construction
Peladang Kimia Berhad 6,000 15,348
Miscellaneous
Road Builder (M)
Holdings BHD 10,000 30,893
Building & Construction
143,817
12
ALLIANCE GROWTH INVESTORS FUND
_______________________________________________________________________________
COMPANY SHARES VALUE
- ----------------------------------------------------------------------
MEXICO0.0%
Grupo Financiero Banorte 4,000 $ 4,098
Financial Services
Grupo Industrial Durango S.A. de C V (ADR) 2,000 16,000
Forest Products
20,098
NETHERLANDS0.4%
Aegon N.V.(b) 1,000 37,647
Insurance
Amev N.V(b). 500 31,404
International
ASM Lithography Hl(b) 400 19,724
Semi-Conductors
Elsevier N.V.(b) 4,000 51,718
Printing, Publishing & Broadcasting
IHC Caland N.V.(b) 1,000 28,204
Transportation
KLM(b) 1,500 48,866
Auto & Trucks
Kon Ptt Nederland(a)(b) 1,000 35,049
UtilityTelephone
Ver Ned Uitgevers(b) 300 41,925
Printing, Publishing & Broadcasting
Wolters Kluwer N.V.(b) 300 27,266
Printing, Publishing & Broadcasting
321,803
NEW ZEALAND0.2%
Air New Zealand 10,000 34,458
Auto & Trucks
Fisher & Paykel Industries 10,000 32,675
Electronics
Helicopter Line 15,000 43,567
Leisure Related
Lion Nathan, Ltd. 15,000 34,062
Food & Beverages
144,762
NORWAY0.2%
Elkjop 600 15,513
RetailGeneral
Fokus Bank 1,000 5,299
Banks
Merkantildata 5,000 44,163
Computers
Tomra Systems AS 17,000 107,291
Environmental Control
172,266
SINGAPORE0.1%
Elec. & Eltek Intl. Co., Ltd. 5,000 11,300
Electronics
GP Batteries International 10,000 24,400
Electrical Equipment
Hong Leong Finance, Ltd. 5,000 15,145
Financial Services
Keppel Corp.. Ltd. 1,000 8,209
Machinery
Overseas Union Bank Ltd. 2,600 16,193
Banks
75,247
SPAIN0.3%
Acerinox S.A. 210 22,126
Mining & Metals
Banco Popular Espanol 200 31,773
Banks
Centros Commerciales Continente S.A. 1,000 21,302
RetailGeneral
Corporacion Mapfre 1,000 51,206
Insurance
Cubiertas Y Mzov S.A. 500 29,208
Homebuilders
Fomento De Construcciones Y Contratas S.A. 500 35,312
Building & Construction
Repsol S.A. 1,000 29,864
Miscellaneous
13
PORTFOLIO OF INVESTMENTS (CONTINUED) ALLIANCE GROWTH INVESTORS FUND
_______________________________________________________________________________
COMPANY SHARES VALUE
- ----------------------------------------------------------------------
Telefonica de Espana 2,000 $ 25,234
UtilityTelephone
Viscofan Envolturas Celulosi 1,000 12,535
Foods
258,560
SWEDEN0.2%
Astra Corp. Series A 1,000 36,744
Drugs
Autoliv AB (ADR)(a) 700 39,988
Auto Related
Kalmar Industries AB(a) 2,000 32,527
Machinery
Nordbanken AB(a) 2,800 41,743
Banks
Svenskt Stal AB 2,000 20,028
Mining & Metals
Volvo AB 800 18,010
Auto & Trucks
189,040
SWITZERLAND0.1%
BBC Brown Boveri AG 25 29,001
Miscellaneous
Roche Holdings AG, Ltd. 10 72,668
Drugs
Schweizerischer Bankverein 30 12,314
Banks
113,983
TAIWAN0.0%
Taiwan Fund, Inc.* 200 4,375
Mutual FundsDiversified
UNITED KINGDOM0.7%
Barclays Plc. 2,000 23,478
Banks
British Airways Plc. 6,000 43,162
Airlines
British Steel N.E.* 5,000 12,905
Mining & Metals
Chloride Group Plc. 40,000 14,704
Building & Related
SHARES OR
PRINCIPAL
AMOUNT
COMPANY (000) VALUE
- ----------------------------------------------------------------------
Filtronic Comtek Plc. 18,000 $ 135,178
Telecommunications
Hanson Plc. 6,000 18,379
Conglomerates
Johnson Matthey Plc. 1,000 9,581
Mining & Metals
McBride Plc.*(a) 7,000 23,296
Household Products
Misys Plc. 2,000 18,878
Computer Software & Services
Powerscreen International Plc. 7,000 42,719
Environmental Control
Rank Organisation Plc. 6,000 39,937
Entertainment & Leisure
Tate & Lyle Plc. 3,000 21,296
Food
United Newspapers Plc. 2,068 16,969
Printing, Publishing & Broadcasting
William Morrison Supermarkets Plc. 20,000 47,115
RetailFood
WPP Group Plc. 15,000 36,285
Advertising
Zeneca Group Plc. 3,000 55,897
Drugs
559,779
Total Foreign Investments
(cost $5,547,171) 5,986,538
Total Common Stocks & Other Investments
(cost $42,385,132) 49,552,120
LONG TERM DEBT SECURITIES29.0%
CREDIT SENSITIVE6.0%
Abbey National Plc.
6.69%, 10/17/05 $375 377,310
BCH Cayman Islands
8.25%, 6/15/04 550 588,660
14
ALLIANCE GROWTH INVESTORS FUND
_______________________________________________________________________________
PRINCIPAL
AMOUNT
COMPANY (000) VALUE
- ----------------------------------------------------------------------
General Instrument Corp.
5.00%, 6/15/00 $ 300 $ 301,500
Lehman Brothers, Inc.
7.125%, 7/15/02 600 606,228
Liberty Mutual Capital Corp.
8.50%, 5/15/25(a) 725 773,249
Prudential Insurance Co.
7.65%, 7/01/07 850 866,490
Tele-Communications, Inc.
10.125%, 4/15/22 700 835,625
Time Warner Entertainment Co.
8.375%, 3/15/23 650 665,554
5,014,616
MISCELLANEOUS0.8%
Boskalis Westminister
5.25%, 6/01/00 50 30,105
Italy (Republic of)
6.875%, 9/27/23 700 646,541
676,646
MORTGAGE BACKED SECURITIES2.5%
Federal National Mortgage Association
6.00%, 12/01/09 2,132 2,081,026
U.S. GOVERNMENT & AGENCIES19.7%
Federal Home Loan Bank
7.00%, 9/01/25 $1,224 $1,214,594
U.S. Treasury Bonds
6.875%, 8/15/25 1,970 2,114,362
7.625%, 2/15/25 855 992,604
U.S. Treasury Notes
5.75%, 10/31/00 1,050 1,047,543
6.25%, 5/31/00 1,100 1,118,733
6.50%, 8/15/05 1,355 1,403,265
7.25%, 2/15/98 6,000 6,198,720
7.75%, 12/31/99 2,200 2,355,716
16,445,537
Total Long Term Debt Securities
(cost $23,680,818) 24,217,825
SHORT-TERM DEBT SECURITIES12.4%
Federal Home Loan Bank
5.82%, 11/01/95
(amortized cost $10,400,000) 10,400 10,400,000
TOTAL INVESTMENTS -100.6%
(cost $76,465,950) 84,169,945
Other assets less liabilities(0.6%) (528,373)
NET ASSETS100% $83,641,572
* 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 October 31, 1995,
these securities amounted to $1,363,047 or 1.6% of net assets.
(b) Securities with an aggregate market value of $2,639,585 have been
segregated to collateralize forward exchange currency contracts.
Glossary of Terms:
ADR - American Depository Receipt
ADS - American Depository Security
GDR - Global Depository Receipt
GDS - Global Depository Security
See notes to financial statements.
15
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1995 (UNAUDITED) ALLIANCE CONSERVATIVE INVESTORS FUND
_______________________________________________________________________________
COMPANY SHARES VALUE
- ----------------------------------------------------------------------
COMMON STOCKS15.0%
CONSUMER NONCYCLICALS3.8%
BEVERAGES0.6%
PepsiCo., Inc. 5,400 $ 284,850
DRUGS0.3%
Astra AB, Series A 2,700 97,875
Lilly (Eli) & Co. 630 60,874
158,749
HOSPITAL SUPPLIES & SERVICES1.2%
Columbia HCA Healthcare Corp. 2,700 132,637
Guidant Corp. 1,291 41,312
Schering-Plough Corp. 3,600 193,050
U.S. Healthcare, Inc. 4,000 154,000
United Healthcare Corp. 1,800 95,625
616,624
HOUSEHOLD PRODUCTS0.2%
Procter & Gamble Co. 1,100 89,100
COSMETICS0.2%
Gillette Co. 1,600 77,400
TIRE & RUBBER0.4%
Goodyear Tire & Rubber Co. 6,000 228,000
TOBACCO0.9%
Philip Morris Cos., Inc. 5,500 464,750
1,919,473
CREDIT SENSITIVE3.8%
BANKS0.8%
BankAmerica Corp. 1,800 103,500
NationsBank Corp. 2,100 138,075
Republic New York Corp. 2,700 158,287
399,862
FINANCIAL SERVICES0.5%
Merrill Lynch & Co., Inc. 1,200 66,600
Travelers, Inc. 3,600 181,800
248,400
INSURANCE0.7%
American International Group, Inc. 2,700 227,812
General Reinsurance Corp. 900 130,388
358,200
TELECOMMUNICATIONS-1.8%
Air-Touch Communications, Inc.* 8,000 228,000
ALLTEL Corp. 8,500 260,313
AT&T Corp. 3,000 192,000
Century Telephone Enterprises, Inc. 5,060 146,740
MCI Communications Corp. 5,500 137,156
964,209
1,970,671
TECHNOLOGY1.8%
COMMUNICATIONS EQUIPMENT0.4%
Nokia Corp. (ADR) 2,600 144,950
Scientific-Atlanta, Inc. 4,500 55,688
200,638
COMPUTER HARDWARE0.6%
COMPAQ Computer Corp.* 1,800 100,350
International Business Machines Corp. 1,950 189,637
289,987
SEMI-CONDUCTORS & RELATED0.5%
Intel Corp. 2,700 188,662
National Semiconductor Corp.* 3,000 73,125
261,787
COMPUTER SOFTWARE-0.3%
General Motors Corp. Cl.E 3,600 169,650
16
ALLIANCE CONSERVATIVE INVESTORS FUND
_______________________________________________________________________________
COMPANY SHARES VALUE
- ----------------------------------------------------------------------
ENERGY1.5%
OIL0.5%
Atlantic Richfield Co. 1,800 $ 192,150
Western Atlas, Inc.* 1,800 78,975
271,125
UTILITYELECTRIC0.4%
Portland General Corp. 7,300 198,012
UTILITYGAS0.6%
Enron Corp. 5,600 192,500
NIPSCO Industries, Inc. 2,700 98,550
291,050
760,187
BASIC INDUSTRIES1.3%
CHEMICALS0.9%
Monsanto Co. 1,600 167,600
Morton International, Inc. 3,600 109,800
Rohm & Haas Co. 1,800 99,450
Union Carbide Corp. 2,000 75,750
452,600
MACHINERY0.2%
Coltec Industries, Inc.* 11,000 119,625
TRANSPORTATION0.2%
Xtra Corp. 1,800 78,975
651,200
CONSUMER CYCLICALS1.1%
AUTO & TRUCKS0.2%
Magna International, Inc. 1,800 77,850
PHOTO & OPTICAL0.2%
Eastman Kodak Co. 1,800 112,725
RESTAURANTS0.2%
Wendy's International, Inc. 4,500 89,438
RETAILGENERAL0.5%
Federated Department
Stores, Inc.* 1,800 45,675
Lowes Cos., Inc. 5,400 145,800
May Department Stores Co. 1,800 70,650
262,125
542,138
SHARES OR
PRINCIPAL
AMOUNT
COMPANY (000) VALUE
- ----------------------------------------------------------------------
BUSINESS SERVICES0.8%
ENVIRONMENTAL CONTROL0.3%
WMX Technologies, Inc. 5,400 $151,875
PRINTING, PUBLISHING & BROADCASTING0.5%
American Greetings Corp. 4,000 126,000
Comcast Corp. Cl.A (SPL) 2,300 41,113
Cox Communications, Inc. Cl.A* 4,000 75,000
242,113
393,988
CAPITAL GOODS0.5%
ELECTRICAL0.5%
General Electric Co. 3,400 215,050
General Instrument Corp.* 2,300 43,700
258,750
DIVERSIFIED0.4%
Allied Signal, Inc. 1,800 76,500
ITT Corp. 900 110,250
186,750
Total Common Stocks (cost $7,020,958) 7,605,219
LONG TERM DEBT SECURITIES77.0%
CREDIT SENSITIVE19.7%
Abbey National Plc.
6.69%, 10/17/05 $ 650 654,004
BCH Cayman Islands
8.25%, 6/15/04 1,000 1,070,290
Lehman Brothers, Inc.
7.125%, 7/15/02 1,100 1,111,418
Liberty Mutual Capital Corp.
8.50%, 5/15/25(a) 1,325 1,413,179
Premier Auto Trust
7.15%, 2/04/99 1,500 1,530,465
Prudential Insurance Co.
7.65%, 7/01/07(a) 1,450 1,478,130
17
PORTFOLIO OF INVESTMENTS (CONTINUED) ALLIANCE CONSERVATIVE INVESTORS FUND
_______________________________________________________________________________
PRINCIPAL
AMOUNT
COMPANY (000) VALUE
- ----------------------------------------------------------------------
Tele-Communications, Inc.
10.125%, 4/15/22 $1,330 $ 1,587,687
Time Warner Entertainment Co.
8.375%, 3/15/23 1,150 1,177,520
10,022,693
MISCELLANEOUS-2.4%
Italy (Republic of)
6.875%, 9/27/23 1,300 1,200,719
MORTGAGE BACKED SECURITIES7.8%
Federal National Mortgage Association
6.00%, 4/01/09 945 922,007
6.00%, 12/01/09 3,127 3,052,172
3,974,179
U.S. GOVERNMENT & AGENCIES49.5%
Federal Home Loan Bank
7.00%, 9/01/25 1,959 1,943,351
U.S. Treasury Bonds
6.875%, 8/15/25 950 1,019,616
7.625%, 2/15/25 1,980 2,298,661
U.S. Treasury Notes
5.75%, 8/15/03 1,500 1,479,615
6.25%, 5/31/00 2,100 2,135,763
6.50%, 8/15/05 1,085 1,123,648
7.25%, 2/15/98 6,500 6,715,280
7.75%, 12/31/99 7,850 8,405,623
25,121,557
Total Long Term Debt Securities
(cost $39,074,077) 40,319,148
SHORT-TERM DEBT SECURITIES4.5%
Federal Home Loan Bank
5.82%, 11/01/95
(amortized cost $2,300,000) 2,300 2,300,000
TOTAL INVESTMENTS98.9%
(cost $48,395,035) 50,224,367
Other assets less liabilities1.1% 578,279
NET ASSETS100% $50,802,646
* 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 October 31, 1995,
these securities amounted to $2,891,309 or 5.7% of net assets.
Glossary:
ADR - American Depository Receipt
See notes to financial statements.
18
STATEMENTS OF ASSETS AND LIABILITIES) ALLIANCE GROWTH INVESTORS AND
OCTOBER 31, 1995 (UNAUDITED CONSERVATIVE INVESTORS FUNDS
_______________________________________________________________________________
GROWTH CONSERVATIVE
INVESTORS INVESTORS
FUND FUND
------------ ------------
ASSETS
Investments in securities, at value
(cost $76,465,950 and $48,395,035,respectively) $84,169,945 $50,224,367
Cash -0- 95,770
Receivable for investment securities and
foreign currency sold 921,117 66,317
Interest and dividends receivable 392,543 653,505
Receivable for shares of beneficial interest sold 164,452 70,750
Net unrealized appreciation of forward exchange
currency contracts 84,418 -0-
Deferred organization expenses 13,980 13,980
Total assets 85,746,455 51,124,689
LIABILITIES
Due to custodian 139,974 -0-
Payable for investment securities and foreign
currency purchased 1,701,488 183,412
Distribution fee payable 54,481 32,352
Advisory fee payable 34,322 21,834
Payable for shares of beneficial interest redeemed 29,559 -0-
Accrued expenses 145,059 84,445
Total liabilities 2,104,883 322,043
NET ASSETS $83,641,572 $50,802,646
COMPOSITION OF NET ASSETS
Shares of beneficial interest, at par $ 61 $ 45
Additional paid-in capital 70,946,726 49,135,606
Undistributed net investment income 1,185,814 1,035,689
Accumulated net realized gain (loss) on
investments and foreign currency transactions 3,720,873 (1,196,953)
Net unrealized appreciation of investments and
foreign currency denominated assets and
liabilities 7,788,098 1,828,259
$83,641,572 $50,802,646
CALCULATION OF MAXIMUM OFFERING PRICE
CLASS A SHARES
Net asset value and redemption price per share
($26,774,161/1,938,571 and $14,570,276/1,307,870
shares of beneficial interest issued and
outstanding, respectively) $13.81 $11.14
Sales charge-4.25% of public offering price .61 .49
Maximum offering price $14.42 $11.63
CLASS B SHARES
Net asset value and offering price per share
($52,074,966/3,779,260 and $31,526,898/2,794,436
shares of beneficial interest issued and
outstanding, respectively) $13.78 $11.28
CLASS C SHARES
Net asset value, redemption and offering price per
share($4,792,445/347,672 and $4,705,472/416,864
shares of beneficial interest issued and
outstanding, respectively) $13.78 $11.29
See notes to financial statements.
19
STATEMENTS OF OPERATIONS ALLIANCE GROWTH INVESTORS AND
SIX MONTHS ENDED OCTOBER 31, 1995 (UNAUDITED) CONSERVATIVE INVESTORS FUNDS
_______________________________________________________________________________
GROWTH CONSERVATIVE
INVESTORS INVESTORS
FUND FUND
------------ ------------
INVESTMENT INCOME
Interest $ 980,011 $1,471,061
Dividends (net of foreign tax withheld of $6,769
and $119, respectively) 343,290 80,297
Total income 1,323,301 1,551,358
EXPENSES
Advisory fee 292,358 193,047
Distribution fee - Class A 37,431 23,422
Distribution fee - Class B 242,432 156,504
Distribution fee - Class C 22,610 22,819
Custodian 100,356 36,293
Transfer agency 75,398 38,227
Registration 29,925 22,374
Audit and legal 25,839 26,907
Printing 24,166 6,981
Trustees' fees 13,807 13,807
Amortization of organization expenses 5,520 5,520
Miscellaneous 4,299 1,950
Total expenses 874,141 547,851
Less: expenses waived and assumed by adviser
(See Note B) (142,876) (61,970)
Net expenses 731,265 485,881
Net investment income 592,036 1,065,477
REALIZED AND UNREALIZED GAIN ON INVESTMENTS AND
FOREIGN CURRENCY
Net realized gain on investments 5,246,294 2,501,465
Net realized gain on foreign currency transactions 72,173 -0-
Net change in unrealized appreciation of
investments 4,008,624 608,214
Net change in unrealized appreciation of foreign
currency denominated assets and liabilities 84,072 -0-
Net gain on investments 9,411,163 3,109,679
NET INCREASE IN NET ASSETS FROM OPERATIONS $10,003,199 $4,175,156
See notes to financial statements.
20
ALLIANCE GROWTH INVESTORS AND
STATEMENTS OF CHANGES IN NET ASSETS CONSERVATIVE INVESTORS FUNDS
_______________________________________________________________________________
<TABLE>
<CAPTION>
GROWTH INVESTORS FUND CONSERVATIVE INVESTORS FUND
----------------------------- ------------------------------
SIX MONTHS ENDED SIX MONTHS ENDED
OCT. 31, 1995 YEAR ENDED OCT. 31,1995 YEAR ENDED
(UNAUDITED) APRIL 30,1995 (UNAUDITED) APRIL 30,1995
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income $ 592,036 $ 1,141,094 $ 1,065,477 $ 2,148,851
Net realized gain (loss) on investments
and foreign currency transactions 5,318,467 (1,679,163) 2,501,465 (3,216,833)
Net change in unrealized appreciation of
investments and foreign currency
denominated assets and liabilities 4,092,696 3,962,035 608,214 3,119,273
Net increase in net assets from operations 10,003,199 3,423,966 4,175,156 2,051,291
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A -0- (254,436) (200,183) (685,964)
Class B -0- (345,858) (286,316) (1,045,681)
Class C -0- (35,052) (41,764) (168,380)
Net realized gain on investments
Class A -0- (22,749) -0- -0-
Class B -0- (46,345) -0- -0-
Class C -0- (4,697) -0- -0-
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
Net increase (decrease) 3,875,370 16,138,284 (3,910,329) 1,247,586
Total increase (decrease) 13,878,569 18,853,113 (263,436) 1,398,852
NET ASSETS
Beginning of period 69,763,003 50,909,890 51,066,082 49,667,230
End of period $83,641,572 $69,763,003 $50,802,646 $51,066,082
</TABLE>
See notes to financial statements.
21
NOTES TO FINANCIAL STATEMENTS ALLIANCE GROWTH INVESTORS AND
OCTOBER 31, 1995 (UNAUDITED) 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. 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 $72,173 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 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. 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 real-
22
ALLIANCE GROWTH INVESTORS AND
CONSERVATIVE INVESTORS FUNDS
_______________________________________________________________________________
ized a gain or loss. As a writer of options, the Fund bears 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 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 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 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. Prior to August 2, 1993, the
annual rate for Class B shares was 2.15%. For the six months ended October 31,
1995, such reimbursement amounted to $142,876 and $61,970 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 $56,584 and $30,490 for the Growth Investors and
Conservative Investors Funds, respectively, for the six months ended October
31, 1995.
Alliance Fund Distributors, Inc. (a wholly-owned subsidiary of the Adviser)
serves as the Distributor of the Fund's shares. The Distributor received
front-end sales charges of $9,177 from the sale of Class A shares and $112,364
in contingent deferred sales charges imposed upon redemptions by shareholders
of Class B shares for the six months ended October 31, 1995 for the Growth
Investors Fund. The Distributor also received front-end sales charges of $4,182
from the sale of Class A shares and $105,786 in contingent deferred sales
charges imposed upon redemptions by shareholders of Class B
23
ALLIANCE GROWTH INVESTORS AND
NOTES TO FINANCIAL STATEMENTS (CONTINUED) CONSERVATIVE INVESTORS FUNDS
_______________________________________________________________________________
shares for the six months ended October 31, 1995 for the Conservative Investors
Fund.
Brokerage commissions paid on securities transactions for the six months ended
October 31, 1995 amounted to $120,077 and $24,389 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 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. 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 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
$1,937 and $157 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 $1,451 and $242, 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 $64,615,119 and $63,461,067,
respectively, for the six months ended October 31, 1995. There were purchases
of $23,192,365 and sales of $24,159,838 of U.S. Government and government
agency obligations for the six months ended October 31, 1995. At October 31,
1995, the cost of securities for federal income tax purposes for the Growth
Investors Fund was $76,465,950. Accordingly gross unrealized appreciation of
investments was $8,585,234 and gross unrealized depreciation of investments was
$881,239 resulting in net unrealized appreciation of $7,703,995.
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 counterparty to meet the terms of a contract
and from unanticipated movements in
24
ALLIANCE GROWTH INVESTORS AND
CONSERVATIVE INVESTORS FUNDS
_______________________________________________________________________________
the value of a foreign currency relative to the U.S. dollar. At October 31,
1995, the Growth Investors Fund had outstanding forward exchange currency
contracts, both to purchase and sell foreign currencies against the U.S.
dollar, as follows:
CONTRACT VALUE ON U.S. $ UNREALIZED
AMOUNT ORIGINATION CURRENT APPRECIATION
(000) DATE VALUE (DEPRECIATION)
-------- ----------- -------- -------------
FOREIGN CURRENCY BUY CONTRACT
- -------------------------------
Japanese Yen,
expiring 11/15/95 65,000 $666,153 $636,947 $(29,206)
FOREIGN CURRENCY SALE CONTRACTS
- -------------------------------
Deutsche Mark,
expiring 1/18/96 109 73,375 77,322 (3,947)
Japanese Yen,
expiring 11/15/95 80,000 916,800 783,935 132,865
Netherland Guilder,
expiring 1/18/96 451 271,778 287,072 (15,294)
---------
$ 84,418
Purchases and sales of investment securities (excluding short-term investments)
for the Conservative Investors Fund aggregated $59,900,368 and $62,357,673,
respectively, for the six months ended October 31, 1995. There were purchases
of $41,312,568 and sales of $47,573,738 of U.S. Government and government
agency obligations for the six months ended October 31, 1995. At October 31,
1995, the cost of securities for federal income tax purposes for the
Conservative Investors Fund was $48,395,035. Accordingly gross unrealized
appreciation of investments was $2,092,174 and gross unrealized depreciation of
investments was $262,842 resulting in net unrealized appreciation of $1,829,332.
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
--------------------------- -----------------------------
SIX MONTHS ENDED SIX MONTHS ENDED
OCTOBER 31, YEAR ENDED OCTOBER 31, YEAR ENDED
1995 APRIL 30, 1995 APRIL 30,
(UNAUDITED) 1995 (UNAUDITED) 1995
-------------- ---------- ------------ ------------
CLASS A
Shares sold 249,854 878,301 $3,288,761 $10,219,392
Shares issued in
reinvestment of
dividends and
distributions -0- 23,903 -0- 266,999
Shares redeemed (148,695) (508,295) (1,954,819) (5,946,807)
Net increase 101,159 393,909 $1,333,942 $4,539,584
25
ALLIANCE GROWTH INVESTORS AND
NOTES TO FINANCIAL STATEMENTS (CONTINUED) CONSERVATIVE INVESTORS FUNDS
_______________________________________________________________________________
SHARES AMOUNT
--------------------------- -----------------------------
SIX MONTHS ENDED SIX MONTHS ENDED
OCTOBER 31, YEAR ENDED OCTOBER 31, YEAR ENDED
1995 APRIL 30, 1995 APRIL 30,
(UNAUDITED) 1995 (UNAUDITED) 1995
-------------- ---------- ------------ ------------
CLASS B
Shares sold 421,770 1,384,786 $ 5,552,011 $16,126,761
Shares issued in
reinvestment of
dividends and
distributions -0- 33,860 -0- 379,230
Shares redeemed (226,789) (485,135) (2,977,569) (5,718,545)
Net increase 194,981 933,511 $ 2,574,442 $10,787,446
CLASS C
Shares sold 69,671 188,858 $ 925,799 $ 2,197,932
Shares issued in
reinvestment of
dividends and
distributions -0- 3,451 -0- 38,687
Shares redeemed (73,115) (122,670) (958,813) (1,425,365)
Net increase (decrease) (3,444) 69,639 $ (33,014) $ 811,254
ALLIANCE CONSERVATIVE INVESTORS FUND
---------------------------------------------------------
SHARES AMOUNT
--------------------------- -----------------------------
SIX MONTHS ENDED SIX MONTHS ENDED
OCTOBER 31, YEAR ENDED OCTOBER 31, YEAR ENDED
1995 APRIL 30, 1995 APRIL 30,
(UNAUDITED) 1995 (UNAUDITED) 1995
-------------- ---------- ------------ ------------
CLASS A
Shares sold 100,537 548,552 $ 1,093,204 $ 5,617,109
Shares issued in
reinvestment of
dividends and
distributions 17,337 65,422 189,878 656,166
Shares redeemed (361,159) (566,559) (3,955,332) (5,791,900)
Net increase (decrease) (243,285) 47,415 $(2,672,250) $ 481,375
CLASS B
Shares sold 215,607 798,920 $2,387,849 $ 8,264,467
Shares issued in
reinvestment of
dividends and
distributions 23,730 94,772 263,507 960,854
Shares redeemed (349,990) (825,918) (3,858,123) (8,495,394)
Net increase (decrease) (110,653) 67,774 $(1,206,767) $ 729,927
CLASS C
Shares sold 58,803 224,223 $ 654,404 $ 2,320,546
Shares issued in
reinvestment of
dividends and
distributions 3,510 15,711 39,000 159,243
Shares redeemed (65,579) (237,610) (724,716) (2,443,423)
Net increase (decrease) (3,266) 2,324 $ (31,312) $ 36,366
26
ALLIANCE GROWTH INVESTORS AND
CONSERVATIVE INVESTORS FUNDS
_______________________________________________________________________________
NOTE F: TAXES
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.
27
FINANCIAL HIGHLIGHTS ALLIANCE GROWTH INVESTORS FUND
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD
<TABLE>
<CAPTION>
CLASS A
----------------------------------------------------
SIX MONTHS ENDED
OCTOBER 31, YEAR ENDED APRIL 30, MAY 4, 1992(A)
1995 ----------------------- TO APRIL 30,
(UNAUDITED) 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 .12* .25* .12* .20*
Net realized and unrealized gain on
investments 1.61 .38 .39 1.43
Net increase in net asset value from
operations 1.73 .63 .51 1.63
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income -0- (.15) (.11) (.16)
Distributions from net realized gains -0- (.01) (.14) (.12)
Total dividends and distributions -0- (.16) (.25) (.28)
Net asset value, end of period $13.81 $12.08 $11.61 $11.35
TOTAL RETURN
Total investment return based on net
asset value (b) 14.32% 5.57% 4.46% 16.32%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $26,774 $22,189 $16,759 $3,503
Ratios to average net assets of:
Expenses, net of waivers/reimbursements 1.40%(c) 1.40% 1.40% 1.40%(c)
Expenses, before waivers/reimbursements 1.77%(c) 1.97% 2.33% 4.27%(c)
Net investment income 1.99%(c) 2.32% 1.67% 1.91%(c)
Portfolio turnover rate 90% 134% 96% 114%
</TABLE>
See footnote summary on page 33.
28
ALLIANCE GROWTH INVESTORS FUND
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD
<TABLE>
<CAPTION>
CLASS B
----------------------------------------------------
SIX MONTHS ENDED
OCTOBER 31, YEAR ENDED APRIL 30, MAY 4, 1992(A)
1995 ---------------------- TO APRIL 30,
(UNAUDITED) 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 .08* .17* .07* .07*
Net realized and unrealized gain on
investments 1.61 .38 .37 1.45
Net increase in net asset value from
operations 1.69 .55 .44 1.52
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income -0- (.10) (.06) (.05)
Distributions from net realized gains -0- (.01) (.14) (.06)
Total dividends and distributions -0- (.11) (.20) (.11)
Net asset value, end of period $13.78 $12.09 $11.65 $11.41
TOTAL RETURN
Total investment return based on net
asset value (b) 13.98% 4.83% 3.84% 15.23%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $52,075 $43,328 $30,871 $7,999
Ratios to average net assets of:
Expenses, net of waivers/reimbursements 2.10%(c) 2.10% 2.11% 2.15%(c)
Expenses, before waivers/reimbursements 2.47%(c) 2.67% 3.00% 4.48%(c)
Net investment income 1.30%(c) 1.62% .95% 1.07%(c)
Portfolio turnover rate 90% 134% 96% 114%
</TABLE>
See footnote summary on page 33.
29
FINANCIAL HIGHLIGHTS (CONTINUED) ALLIANCE GROWTH INVESTORS FUND
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD
CLASS C
-------------------------------------
SIX MONTHS ENDED AUGUST 2,
OCTOBER 31, YEAR ENDED 1993(D)
1995 APRIL 30, TO APRIL 30,
(UNAUDITED) 1995 1994
------------ -------- ------------
Net asset value, beginning of period $12.10 $11.65 $11.88
INCOME FROM INVESTMENT OPERATIONS
Net investment income .09* .18* .08*
Net realized and unrealized gain (loss)
on investments 1.59 .38 (.11)
Net increase (decrease) in net asset value
from operations 1.68 .56 (.03)
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income -0- (.10) (.06)
Distributions from net realized gains -0- (.01) (.14)
Total dividends and distributions -0- (.11) (.20)
Net asset value, end of period $13.78 $12.10 $11.65
TOTAL RETURN
Total investment return based on net
asset value (b) 13.89% 4.91% (.26)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $4,792 $4,247 $3,280
Ratios to average net assets of:
Expenses, net of waivers/reimbursements 2.10%(c) 2.10% 2.10%(c)
Expenses, before waivers/reimbursements 2.47%(c) 2.66% 3.02%(c)
Net investment income 1.29%(c) 1.62% 1.04%(c)
Portfolio turnover rate 90% 134% 96%
See footnote summary on page 33.
30
ALLIANCE CONSERVATIVE INVESTORS FUND
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD
<TABLE>
<CAPTION>
CLASS A
----------------------------------------------------
SIX MONTHS ENDED
OCTOBER 31, YEAR ENDED APRIL 30, MAY 4, 1992(A)
1995 ---------------------- TO APRIL 30,
(UNAUDITED) 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 .28* .48* .31* .39*
Net realized and unrealized gain (loss)
on investment .62 (.02) (.26) .82
Net increase in net asset value from
operations .90 .46 .05 1.21
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.14) (.45) (.29) (.36)
Distributions from net realized gains -0- -0- (.18) (.06)
Total dividends and distributions (.14) (.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) 8.70% 4.65% .35% 12.25%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $14,570 $16,105 $15,595 $5,339
Ratios to average net assets of:
Expenses, net of waivers/reimbursements 1.40%(c) 1.40% 1.40% 1.40%(c)
Expenses, before waivers/reimbursements 1.64%(c) 1.83% 2.03% 3.45%(c)
Net investment income 4.63%(c) 4.66% 3.43% 3.92%(c)
Portfolio turnover rate 128% 248% 133% 84%
</TABLE>
See footnote summary on page 33.
31
FINANCIAL HIGHLIGHTS (CONTINUED) ALLIANCE CONSERVATIVE INVESTORS FUND
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD
<TABLE>
<CAPTION>
CLASS B
----------------------------------------------------
SIX MONTHS ENDED
OCTOBER 31, YEAR ENDED APRIL 30, MAY 4, 1992(A)
1995 ---------------------- TO APRIL 30,
(UNAUDITED) 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 .22* .46* .24* .24*
Net realized and unrealized gain (loss)
on investments .65 (.02) (.26) .89
Net increase (decrease) in net asset value
from operations .87 .44 (.02) 1.13
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.10) (.40) (.21) (.22)
Distributions from net realized gains -0- -0- (.18) (.03)
Total dividends and distributions (.10) (.40) (.39) (.25)
Net asset value, end of period $11.28 $10.51 $10.47 $10.88
TOTAL RETURN
Total investment return based on net
asset value (b) 8.31% 3.91% (.31)% 11.39%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $31,527 $30,542 $29,697 $9,210
Ratios to average net assets of:
Expenses, net of waivers/reimbursements 2.10%(c) 2.10% 2.11% 2.15%(c)
Expenses, before waivers/reimbursements 2.34%(c) 2.52% 2.73% 3.95%(c)
Net investment income 3.93%(c) 3.96% 2.72% 3.06%(c)
Portfolio turnover rate 128% 248% 133% 84%
</TABLE>
See footnote summary on page 33.
32
ALLIANCE CONSERVATIVE INVESTORS FUND
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD
CLASS C
---------------------------------------
SIX MONTHS ENDED AUGUST 2,
OCTOBER 31, YEAR ENDED 1993(D)
1995 APRIL 30, TO APRIL 30,
(UNAUDITED) 1995 1994
------------ --------- ------------
Net asset value, beginning of period $10.52 $10.47 $11.12
INCOME FROM INVESTMENT OPERATIONS
Net investment income .22* .46* .18*
Net realized and unrealized gain (loss)
on investments .65 (.01) (.50)
Net increase (decrease) in net asset
value From operations .87 .45 (.32)
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.10) (.40) (.15)
Distributions from net realized gains -0- -0- (.18)
Total dividends and distributions (.10) (.40) (.33)
Net asset value, end of period $11.29 $10.52 $10.47
TOTAL RETURN
Total investment return based on net
asset value (b) 8.31% 4.01% (2.98)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period(000's omitted) $4,705 $4,419 $4,375
Ratios to average net assets of:
Expenses, net of waivers/reimbursements 2.10%(c) 2.10% 2.10%(c)
Expenses, before waivers/reimbursements 2.34%(c) 2.52% 2.69%(c)
Net investment income 3.93%(c) 3.97% 2.94%(c)
Portfolio turnover rate 128% 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.
33
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
FRANKLIN KENNEDY III, VICE PRESIDENT
WAYNE D. LYSKI, 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
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.
34
ALLIANCE GROWTH INVESTORS FUND, INC.
ALLIANCE CONSERVATIVE INVESTORS FUND, INC.
1345 Avenue of the Americas
New York, NY 10105
(800) 221-5672
AllianceCapital
Mutual funds without the Mystery.
THIS REPORT IS INTENDED SOLELY FOR DISTRIBUTION TO CURRENT SHAREHOLDERS
OF THE FUND.
R THESE REGISTERED SERVICE MARKS USED UNDER LICENSE FROM THE OWNER,
ALLIANCE CAPITAL MANAGEMENT L.P.
GICISR
