ALLIANCE GROWTH INVESTORS FUND AND ALLIANCE CONSERVATIVE INVESTORS FUND
SEMI-ANNUAL REPORT
OCTOBER 31, 1996
LETTER TO SHAREHOLDERS
ALLIANCE GROWTH INVESTORS AND CONSERVATIVE INVESTORS FUNDS
_______________________________________________________________________________
December 5, 1996
Dear Shareholder:
It continues to be our practice to address the shareholders of both Alliance
Growth Investors Fund and Alliance Conservative Investors Fund about the
economy, capital markets and the funds' performance in one letter.
ECONOMIC OUTLOOK
Economic developments were generally favorable for domestic capital markets
during the six month period ended October 31, 1996. In contrast, our June 1996
letter focused on the divergent returns for stocks and bonds that were prompted
by a shift in investor sentiment and heightened concerns about the
reacceleration in economic growth and in rates of inflation. Indeed, at that
time, we argued the spurt in economic growth would be short-lived inasmuch as
it was based on inventory rebuilding and that more moderate growth would resume
in the second half of the year. Those expectations assumed (1) consumer
spending would be dampened by high consumer debt burdens, (2) investment
spending would slow, (3) government spending would be constrained by budget
deficits, and (4) demand for U.S. exports would remain sluggish.
The threat of stepped-up inflation dissipated in the late summer as a flood of
economic and corporate news convinced investors that the capital market had
entered a more favorable period for equities. Growth in the economy was
moderate, inflation remained benign with falling interest rates, and companies
began to report positive earnings. And, as the November election drew closer,
it became clear that the Republicans would hold onto control in Congress,
thereby eliminating the potential economic and policy consequences that could
have arisen had the Presidency and Congress been controlled by the same party.
The admixture of the economy behaving better-than-expected and the completed
election produced a very favorable backdrop for both equities and bonds.
Although the popular benchmarks for the equity markets posted impressive gains,
the advances were limited to a comparatively small number of securities. For
example, during the six months ended October 1996, the Wilshire Large
Capitalization Growth Index (an index comprised of the 750 equity securities
that fit Wilshire Asset Management's "growth stock" characteristics and are the
largest 750 securities in the Wilshire 5000 Index) tacked on a 10.6% increase
while the Wilshire Small Capitalization Growth Index (an index comprised of 251
equity securities that fit Wilshire Asset Management's "growth stock"
characteristics and fall between the 751st largest to the 2,500th largest
securities in the Wilshire 5000 Index) fell by 5.5%, creating a performance
differential of more than 16%.
Both Alliance Growth Investors and Conservative Investors Funds were negatively
affected by this divergence between the asset classes they each represent. In
the prior six months, we had increased the weightings in mid-cap and small-cap
securities on the premise that the outlook for domestic earnings at mid- and
small-cap companies was improving, while profits for large multi-national
corporations domiciled in the U.S. would be dampened by a stronger dollar. The
Funds' investment performance was also impaired by our decision to increase the
exposure to international securities because of the potential for a cyclical
recovery in business conditions and profits. Both of those investment decisions
further reinforced the relatively more attractive valuation levels. While we
still believe these were the correct conclusions based on the fundamentals and
valuation levels, the market's increasing focus on "momentum investing" did not
reward those judgments in the short run.
We remain convinced that the mid- and small-cap segments of the U.S. equity
market offer more attractive profit profiles and relative valuations and are
therefore retaining our over weightings in these segments. Cash positions were
increased modestly as the market reached new highs.
1
ALLIANCE GROWTH INVESTORS AND CONSERVATIVE INVESTORS FUNDS
_______________________________________________________________________________
GROWTH INVESTORS FUND
Investment returns for Alliance Growth Investors Fund for the six and 12 month
periods ending October 31, 1996 are detailed in the table below. For comparison
purposes, we also specified the performance of the broad U.S. stock markets as
represented by the S&P 500-Stock Index and by the Fund's benchmark--a composite
of the S&P 500 (70%) and the unmanaged Lehman Brothers (LB) Aggregate Bond
Index (30%).
TOTAL RETURN
PERIOD ENDED OCTOBER 31, 1996
6 MONTHS 12 MONTHS
---------- -----------
ALLIANCE GROWTH INVESTORS FUND
Class A 2.77% 11.35%
Class B 2.42% 10.57%
Class C 2.41% 10.64%
S&P 500 9.03% 24.02%
70/30 COMPOSITE: 7.94% 18.61%
S&P 500/LB Aggregate
Bond Index
THE FUND'S TOTAL RETURNS ARE BASED ON THE NET ASSET VALUES OF EACH CLASS OF
SHARES AS OF OCTOBER 31, 1996; ADDITIONAL INVESTMENT RESULTS APPEAR ON PAGE 3.
CONSERVATIVE INVESTORS FUND
Investment returns for Alliance Conservative Investors Fund for the six and 12
month periods ending October 31, 1996 are detailed in the table below. For
comparison purposes, we also specified the performance of the broad U.S. bond
market as represented by the Lehman Brothers (LB) Aggregate Bond Index and by
the Fund's benchmark--a composite of the Lehman Brothers (LB) Aggregate Bond
Index (70%) and the S&P 500-Stock Index (30%).
TOTAL RETURN
PERIOD ENDED OCTOBER 31, 1996
6 MONTHS 12 MONTHS
---------- -----------
ALLIANCE CONSERVATIVE
INVESTORS FUND
Class A 4.63% 8.46%
Class B 4.21% 7.70%
Class C 4.21% 7.61%
LB AGGREGATE BOND 5.29% 5.85%
INDEX
70/30 COMPOSITE: 6.43% 11.32%
LB Aggregate Bond
Index/S&P 500
THE FUND'S TOTAL RETURNS ARE BASED ON THE NET ASSET VALUES OF EACH CLASS OF
SHARES AS OF OCTOBER 31, 1996; ADDITIONAL INVESTMENT RESULTS APPEAR ON PAGE 4.
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
SHARES OF THE FUND ARE NOT DEPOSITS OR OBLIGATIONS OF, GUARANTEED OR ENDORSED
BY, ANY BANK; FURTHER, SUCH SHARES ARE NOT FEDERALLY INSURED BY THE FEDERAL
DEPOSIT INSURANCE CORPORATION, THE FEDERAL RESERVE BOARD, OR ANY OTHER AGENCY.
SHARES OF THE FUND INVOLVE INVESTMENT RISKS, INCLUDING THE POSSIBLE LOSS OF
PRINCIPAL.
2
INVESTMENT OBJECTIVE AND POLICIES
ALLIANCE GROWTH INVESTORS FUND
_______________________________________________________________________________
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 OCTOBER 31, 1996
CLASS A SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
------------ ------------
. One Year 11.35% 6.64%
. Since Inception* 11.51% 10.45%
CLASS B SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
------------ ------------
. One Year 10.57% 6.57%
. Since Inception* 10.71% 10.71%
CLASS C SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
------------ ------------
. One Year 10.64% 9.64%
. Since Inception* 8.88% 8.88%
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);
and for Class C (1% year 1). 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 OBJECTIVE AND POLICIES
ALLIANCE CONSERVATIVE INVESTORS FUND
_______________________________________________________________________________
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 OCTOBER 31, 1996
CLASS A SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
------------ ------------
. One Year 8.46% 3.90%
. Since Inception* 7.59% 6.56%
CLASS B SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
------------ ------------
. One Year 7.70% 3.70%
. Since Inception* 6.83% 6.83%
CLASS C SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
------------ ------------
. One Year 7.61% 6.61%
. Since Inception* 5.12% 5.12%
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);
and for Class C (1% year 1). 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, 1996 (UNAUDITED)
ALLIANCE GROWTH INVESTORS FUND
_______________________________________________________________________________
COMPANY VALUE PERCENT OF NET ASSETS
- -------------------------------------------------------------------------------
U.S. Treasury Notes $ 9,958,012 10.2%
Federal National Mortgage Assn. 4,075,688 4.2
Philip Morris Cos., Inc. 1,074,450 1.1
Cisco Systems, Inc. 1,051,875 1.1
Federal Home Loan Bank, 7.00%, 9/01/11 1,029,993 1.1
Merrill Lynch & Co., Inc. 966,640 1.0
3Com Corp. 933,225 1.0
PepsiCo., Inc. 924,300 0.9
Olin Corp. 884,000 0.9
Travelers Group, Inc. 882,105 0.9
$21,780,288 22.4%
MAJOR PORTFOLIO CHANGES
SIX MONTHS ENDED OCTOBER 31, 1996 (UNAUDITED)
_______________________________________________________________________________
SHARES OR PRINCIPAL
-----------------------------
PURCHASES BOUGHT HOLDINGS 10/31/96
- -------------------------------------------------------------------------------
AutoZone, Inc. 31,900 31,900
Federal Home Loan Bank, 7.00%, 9/01/11 $1,028,389 $1,028,389
Federal National Mortgage Assn., 6.50%, 5/01/11 $1,960,222 $1,960,222
Federal National Mortgage Assn., 8.50%, 12/01/25 $958,129 $958,129
Quebec Province Canada, 7.50%, 7/15/23 $850,000 $850,000
Republic of Poland PDI, 3.75%, 10/27/14 $925,000 $925,000
Time Warner Entertainment Co., 9.15%, 2/01/23 $675,000 $675,000
U.S. Treasury Note, 5.75%, 8/15/03 $2,900,000 $2,900,000
U.S. Treasury Note, 6.375%, 5/15/99 $3,200,000 $3,200,000
U.S. Treasury Note, 6.50%, 8/15/05 $1,040,000 $1,585,000
SALES SOLD HOLDINGS 10/31/96
- -------------------------------------------------------------------------------
Aetna Life & Casualty Co. 25,000 -0-
American International Group, Inc. 10,000 -0-
Federal National Mortgage Assn., 6.50%, 6/01/11 $2,100,000 -0-
Federal National Mortgage Assn., 7.00%, 5/01/26 $723,299 $1,076,701
First Data Corp. 10,400 4,600
Pfizer, Inc. 9,900 6,600
Philip Morris Cos., Inc. 10,400 11,600
U.S. Treasury Bond, 6.00%, 2/15/26 $1,405,000 -0-
U.S. Treasury Note, 6.75%, 4/30/00 $1,050,000 -0-
U.S. Treasury Note, 7.25%, 2/15/98 $3,750,000 $2,250,000
5
TEN LARGEST HOLDINGS
OCTOBER 31, 1996 (UNAUDITED)
ALLIANCE CONSERVATIVE INVESTORS FUND
_______________________________________________________________________________
PERCENT OF
COMPANY VALUE NET ASSETS
- -------------------------------------------------------------------------------
U.S. Treasury Notes $10,489,581 21.2%
Federal National Mortgage Assn. 6,480,552 13.1
Federal Home Loan Bank, 7.00%, 9/01/11 1,618,561 3.3
Premier Auto Trust, 7.15%, 2/04/99 1,515,000 3.1
Government National Mortgage Assn., 7.50%, 1/15/26 1,293,435 2.6
Quebec Province Canada, 7.13%, 2/09/24 1,240,785 2.5
Auburn Hills Trust, 12.00%, 5/01/20 1,055,768 2.1
John Hancock Mutual Life Insurance Co., 7.375%, 2/15/24 1,021,744 2.1
St. George Bank Ltd., 7.15%, 10/15/05 1,000,300 2.0
Morgan Stanley Group, Inc., 6.50%, 3/30/01 999,350 2.0
$26,715,076 54.0%
MAJOR PORTFOLIO CHANGES
SIX MONTHS ENDED OCTOBER 31, 1996 (UNAUDITED)
_______________________________________________________________________________
PRINCIPAL
PURCHASES BOUGHT HOLDINGS 10/31/96
- -------------------------------------------------------------------------------
Auburn Hills Trust, 12.00%, 5/01/20 $700,000 $700,000
Federal Home Loan Bank, 7.00%, 9/01/11 $1,616,040 $1,616,040
Federal National Mortgage Assn., 8.50%, 12/01/25 $958,129 $958,129
John Hancock Mutual Life Insurance Co.,
7.375%, 2/15/24 $1,050,000 $1,050,000
Morgan Stanley Group, Inc., 6.50%, 3/30/01 $1,000,000 $1,000,000
Quebec Province Canada, 7.13%, 2/09/24 $1,300,000 $1,300,000
Time Warner Entertainment Co., 9.15%, 2/01/23 $915,000 $915,000
U.S. Treasury Note, 5.75%, 8/15/03 $2,750,000 $2,750,000
U.S. Treasury Note, 6.375%, 5/15/99 $3,950,000 $3,950,000
U.S. Treasury Note, 6.50%, 8/15/05 $1,720,000 $2,240,000
SALES SOLD HOLDINGS 10/31/96
- -------------------------------------------------------------------------------
Chase Manhattan Corp., 6.25%, 1/15/06 $1,200,000 -0-
Commercial Credit Group, Inc., 6.125%, 12/01/05 $900,000 -0-
Federal National Mortgage Assn., 6.50%, 6/01/11 $4,040,000 -0-
Federal National Mortgage Assn., 7.00%, 5/01/26 $1,684,949 $1,615,051
Prudential Insurance Co. of America,
8.10%, 7/15/15 $850,000 $600,000
Time Warner Entertainment Co., 8.375%, 3/15/23 $1,150,000 -0-
U.S. Treasury Bond, 6.00%, 2/15/26 $2,475,000 -0-
U.S. Treasury Note, 6.75%, 4/30/00 $2,000,000 -0-
U.S. Treasury Note, 7.25%, 2/15/98 $8,500,000 -0-
U.S. Treasury Note, 7.75%, 12/31/99 $875,000 $1,475,000
6
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1996 (UNAUDITED)
ALLIANCE GROWTH INVESTORS FUND
_______________________________________________________________________________
COMPANY SHARES VALUE
- -------------------------------------------------------------------------
COMMON STOCKS & OTHER INVESTMENTS-70.7%
UNITED STATES INVESTMENTS-53.0%
CONSUMER NONCYCLICALS-13.1%
ADVERTISING-0.2%
Ha Lo Ind., Inc. * 4,600 $ 142,600
National Media Corporation * 3,700 44,400
------------
187,000
APPAREL & TEXTILE-0.6%
Designer Holdings, Ltd. * 3,700 70,762
Reebok International, Ltd. 8,700 311,025
Stage Stores, Inc. * 3,200 58,400
Tommy Hilfiger Corp. * 1,500 78,000
Warnaco Group, Inc. 2,700 67,163
------------
585,350
BEVERAGES-1.0%
PepsiCo, Inc. 31,200 924,300
BIOTECHNOLOGY-2.2%
Amgen, Inc. * 12,000 735,750
Biogen, Inc. * 5,000 372,500
Centocor, Inc. * 21,100 619,812
GelTex Pharmaceuticals, Inc. * 3,200 60,800
Liposome Co., Inc. * 3,200 54,800
Medimmune, Inc. * 3,500 54,250
Steris Corp. * 6,900 260,475
------------
2,158,387
BROADCASTING-1.1%
Cablevision Systems Corp. Cl.A * 10,000 311,250
Evergreen Media Corp. * 3,200 86,400
LIN Television Corp. * 900 34,087
TCI Group, Series A * 32,500 404,219
Valuevision International, Inc. Cl.A * 7,200 38,700
Viacom, Inc. Cl.B * 6,936 226,287
------------
1,100,943
COSMETICS-0.5%
Gillette Co. 6,010 449,248
DRUGS, HOSPITAL SUPPLIES & MEDICAL SERVICES-4.0%
Columbia/HCA Healthcare Corp. 20,850 745,387
Compdent Corp. * 2,000 68,750
Coventry Corp. * 4,100 41,513
Healthsource, Inc. * 20,000 245,000
Medicis Pharmaceutical Corporation * 1,000 50,250
Medtronic, Inc. 6,400 412,000
Merck & Co., Inc. 11,160 827,235
National Surgery Centers, Inc. * 2,100 56,700
Ornda HealthCorp * 4,000 109,000
Oxford Health Plans, Inc. * 3,700 168,350
Pfizer, Inc. 6,600 546,150
Respironics, Inc. * 2,200 33,000
Rotech Medical Corp. * 3,700 59,200
Summit Technology, Inc. * 11,750 64,625
Warner-Lambert Co. 8,000 509,000
------------
3,936,160
ENTERTAINMENT & LEISURE-0.6%
Walt Disney Co. 9,070 597,486
FOOD-0.8%
Campbell Soup Co. 4,290 351,200
Nabisco Holdings Corp. Cl.A 10,435 388,704
------------
739,904
HOUSEHOLD PRODUCTS-0.5%
Colgate-Palmolive Co. 5,070 466,440
PRINTING & PUBLISHING-0.3%
New York Times Co. 9,400 339,575
TOBACCO-1.1%
Philip Morris Cos., Inc. 11,600 1,074,450
7
PORTFOLIO OF INVESTMENTS (CONTINUED)
ALLIANCE GROWTH INVESTORS FUND
_______________________________________________________________________________
COMPANY SHARES VALUE
- -------------------------------------------------------------------------
MISCELLANEOUS-0.2%
Interim Services, Inc. * 1,700 $ 68,000
Mohawk Industries, Inc. * 3,500 84,875
------------
152,875
------------
12,712,118
TECHNOLOGY-12.7%
AEROSPACE & DEFENSE-0.7%
Boeing Co. 5,600 534,100
United Technologies Corp. 1,400 180,250
------------
714,350
COMMUNICATIONS EQUIPMENT-1.0%
Cable Design Technologies Corp. * 1,700 44,200
DSC Communications Corp. * 6,500 90,187
ICG Communications, Inc. * 3,600 67,500
Premisys Communications, Inc. * 1,400 70,000
Scientific-Atlanta, Inc. 25,000 362,500
Sterling Commerce, Inc. * 8,600 241,875
TeleSpectrum Worldwide, Inc. * 2,900 49,663
Winstar Communications, Inc. * 3,500 73,500
------------
999,425
COMPUTER EQUIPMENT-0.1%
ACT Networks, Inc * 1,700 58,225
COMPUTER HARDWARE-1.3%
BMC Industries, Inc. 4,400 130,350
Ceridian Corp. * 14,000 694,750
COMPAQ Computer Corp. * 5,000 348,125
Storage Technology Corp. * 1,900 80,987
------------
1,254,212
COMPUTER NETWORKING SOFTWARE-2.2%
3Com Corp. * 13,800 933,225
Bay Networks, Inc. * 3,650 73,912
Cisco Systems, Inc. * 17,000 1,051,875
Network General Corp. * 2,600 62,725
------------
2,121,737
COMPUTER PERIPHERALS-0.6%
Exabyte Corp. * 4,600 60,950
Seagate Technology, Inc. * 5,000 333,750
Western Digital Corp. * 1,700 82,450
Xircom, Inc. * 4,300 87,075
------------
564,225
COMPUTER SERVICES-1.0%
Electronic Data Systems Corp. New 10,900 490,500
First Data Corp. 4,600 366,850
National TechTeam, Inc. * 3,200 86,400
------------
943,750
COMPUTER SOFTWARE-2.5%
Advanced Tissue Sciences, Inc. * 2,400 39,000
Applix, Inc. * 2,600 63,050
IDT Corp. * 4,400 48,950
Informix Corp. * 36,000 798,750
Learning Company, Inc. * 4,300 87,344
Microsoft Corp. * 2,500 343,125
Oracle Systems Corp. * 18,250 772,203
Sterling Software, Inc. * 5,800 188,500
Systemsoft Corp. * 2,600 73,450
Universal Outdoor Holdings, Inc. * 1,800 52,875
------------
2,467,247
ELECTRICAL EQUIPMENT-0.9%
General Electric Co. 8,500 822,375
Harman International Industries, Inc. New 2,000 102,750
------------
925,125
8
ALLIANCE GROWTH INVESTORS FUND
_______________________________________________________________________________
COMPANY SHARES VALUE
- -------------------------------------------------------------------------
ELECTRONICS-0.1%
General Instrument Corp.* 1 $ 20
Kent Electronics * 3,300 75,487
Texas Instruments, Inc. 1,500 72,188
------------
147,695
MEDICAL PRODUCTS-0.1%
Enterprise Systems, Inc. * 3,800 61,275
SEMI-CONDUCTOR COMPONENTS-1.4%
Altera Corp. * 8,100 502,200
Intel Corp. 7,000 769,125
VLSI Technology, Inc. * 3,600 62,100
------------
1,333,425
TELECOMMUNICATIONS-0.8%
CommNet Cellular, Inc. * 2,300 63,825
EZ Communications, Inc. * 1,600 61,600
MFS Communications, Inc. * 4,700 235,588
Millicom International Cellular, S.A. * 1,400 55,650
Telephone & Data Systems, Inc. 3,900 136,500
WorldCom, Inc. * 8,000 195,000
------------
748,163
------------
12,338,854
CREDIT SENSITIVE-7.3%
BANKS-1.1%
First Chicago NBD Corp. 5,600 285,600
First Union Corp. 11,400 829,350
------------
1,114,950
BROKERAGE & MONEY MANAGEMENT-1.1%
Hambrecht & Quist Group, Inc. * 3,400 67,575
Merrill Lynch & Co., Inc. 13,760 966,640
------------
1,034,215
FINANCIAL SERVICES-1.0%
Aames Financial Corp. 1,300 58,013
American Express Co. 4,600 216,200
Dean Witter, Discover & Co. 9,700 571,087
RAC Financial Group, Inc. * 1,400 $84,000
Union Acceptance Corp. Cl.A * 5,100 89,888
------------
1,019,188
INSURANCE-2.3%
General Reinsurances Corp. 1,930 284,192
NAC Re Corp. 14,000 491,750
Penncorp Financial Group, Inc. 2,400 83,100
TIG Holdings, Inc. 17,000 490,875
Travelers Group, Inc. 16,260 882,105
------------
2,232,022
MUTUAL FUND-0.1%
Morgan Stanley Asia Pacific Fund 13,334 136,674
REAL ESTATE-0.2%
JP Realty, Inc. 2,400 54,600
Macerich Co. 2,400 52,800
Summit Properties, Inc. 2,800 54,950
------------
162,350
MISCELLANEOUS-1.5%
MBNA Corp. 16,300 615,325
MGIC Investment Corp. 8,000 549,000
PMI Group, Inc. 5,000 285,625
------------
1,449,950
------------
7,149,349
ENERGY-6.1%
OIL & GAS SERVICES-5.8%
Apache Corp. 13,000 461,500
Baker Hughes, Inc. 18,700 666,187
BJ Services Co. * 15,500 695,562
Costilla Energy, Inc. * 5,400 68,850
Diamond Shamrock, Inc. 2,000 58,750
Exxon Corp. 9,000 797,625
KCS Energy, Inc. 2,300 99,188
Louisiana Land & Exploration Co. 6,900 392,437
Mobil Corp. 2,200 256,850
Nabors Industries, Inc. * 5,000 83,125
Noble Drilling Corp. * 17,300 322,213
9
PORTFOLIO OF INVESTMENTS (CONTINUED)
ALLIANCE GROWTH INVESTORS FUND
_______________________________________________________________________________
COMPANY SHARES VALUE
- -------------------------------------------------------------------------
Rowan Cos, Inc. * 6,200 $ 138,725
Schlumberger, Ltd. 8,800 872,300
Transocean Offshore, Inc. 9,000 569,250
Union Pacific Resources Group, Inc. 5,251 144,403
------------
5,626,965
UTILITY / ELECTRIC-0.3%
FPL Group, Inc. 6,400 294,400
------------
5,921,365
CONSUMER CYCLICALS-5.4%
AIRLINES-0.9%
Delta Airlines, Inc. 5,750 407,531
Mesa Airlines, Inc. * 3,700 34,225
Northwest Airlines Corp. Cl.A * 14,500 480,313
------------
922,069
RAILROAD TRANSPORTATION-0.9%
Burlington Northern Santa Fe 4,200 345,975
Genesee & Wyoming, Inc. * 2,700 83,700
Hub Group, Inc. Cl.A * 3,000 66,750
Union Pacific Corp. 6,200 347,975
------------
844,400
REAL ESTATE-0.1%
Innkeepers USA Trust 5,200 61,100
RESTAURANTS & LODGING-1.6%
Doubletree Corp. * 1,900 77,069
Host Marriott Corp. * 21,700 333,637
Interstate Hotels Co. * 3,600 97,200
ITT Corp. * 14,100 592,200
La Quinta Inns, Inc. 18,200 364,000
Red Lion Hotels, Inc. * 3,100 93,000
------------
1,557,106
RETAIL-GENERAL-0.4%
Consolidated Stores Corp. * 1,800 69,525
Federated Department Stores, Inc. * 5,500 181,500
Nine West Group, Inc. * 2,600 129,675
------------
380,700
RETAIL-GENERAL MERCHANDISE-0.8%
AutoZone, Inc. * 31,900 817,437
RETAIL-TOYS-0.2%
Hasbro, Inc. 6,000 233,250
TELEPHONE UTILITY-0.0%
Billing Information
Concepts * 700 18,288
TRANSPORTATION & SHIPPING-0.4%
Xtra Corp. 9,500 394,250
MISCELLANEOUS-0.1%
Equity Corp. International * 3,300 75,900
------------
5,304,500
BASIC INDUSTRIES-3.7%
CONTAINERS-0.3%
Crown Cork & Seal Co., Inc. 7,200 345,600
DIVERSIFIED-0.1%
Culligan Water Technologies, Inc. * 3,000 112,500
ENVIRONMENTAL CONTROL-1.3%
United States Filter Corp. * 1,600 55,200
United Waste Systems, Inc. * 1,800 61,875
USA Waste Services, Inc. * 11,900 380,800
WMX Technologies, Inc 22,000 756,250
------------
1,254,125
MACHINERY-1.2%
Allied-Signal, Inc. 10,500 687,750
Coltec Industries, Inc. * 16,000 276,000
Comverse Technology, Inc. * 4,800 168,000
Pentair, Inc. 2,500 63,125
------------
1,194,875
10
ALLIANCE GROWTH INVESTORS FUND
_______________________________________________________________________________
COMPANY SHARES VALUE
- -------------------------------------------------------------------------
MINING & METALS-0.8%
Century Aluminum Co. 5,000 $ 67,500
Gibraltar Steel Corp. * 3,900 94,575
Kaiser Aluminum Corp. * 4,700 52,288
Reynolds Metals Co. 5,900 331,875
UCAR International, Inc. * 5,000 195,625
------------
741,863
------------
3,648,963
BASIC MATERIALS-3.2%
BUILDING & RELATED-0.2%
American Standard Cos., Inc * 6,300 237,037
CHEMICALS-2.4%
Cytec Industries, Inc. * 7,100 253,825
Freeport McMoran, Inc. 9,000 286,875
Hercules, Inc. 5,600 266,700
Monsanto Co. 15,000 594,375
Olin Corp. 20,800 884,000
Polymer Group, Inc. * 3,900 49,725
------------
2,335,500
ENGINEERING & CONSTRUCTION-0.3%
Martin Marietta Materials, Inc. 10,600 251,750
MACHINERY-0.1%
Crompton & Knowles Corp. 6,000 108,000
MEDICAL PRODUCTS-0.1%
Buckeye Cellulose Corp. * 1,900 49,638
PAPER & FOREST PRODUCTS-0.1%
Louisiana-Pacific Corp. 6,000 125,250
------------
3,107,175
CONSUMER MANUFACTURING-1.1%
APPLIANCES-0.8%
Black & Decker Corp. 7,300 272,838
Sunbeam Corp., Inc. 19,900 490,037
------------
762,875
AUTO & RELATED-0.0%
Team Rental Group, Inc. * 2,600 48,750
BUILDING & RELATED-0.1%
Hughes Supply, Inc. 2,000 76,000
MISCELLANEOUS-0.2%
U.S. Industries, Inc. * 6,000 162,000
------------
1,049,625
CONSUMER SERVICES-0.2%
MISCELLANEOUS-0.2%
ADT Ltd. * 3,600 71,100
Brightpoint, Inc. * 2,800 70,000
Oxford Resources Corp. Cl.A * 3,700 94,350
------------
235,450
DIVERSIFIED-0.1%
Petco Animal Supplies, Inc. * 3,100 72,850
CAPITAL GOODS-0.1%
MISCELLANEOUS-0.1%
Uniphase Corp. * 1,300 62,725
Total United States Investments
(cost $46,722,750) 51,602,974
FOREIGN INVESTMENTS-17.7%
AUSTRALIA-0.3%
Coca Cola Amatil Ltd. 5,000 69,340
Beverages
Mayne Nickless, Ltd. 4,000 26,569
Commercial Services
Qantas Airways, Ltd. 7,000 10,209
Airlines
WMC, Ltd. 7,281 45,766
Mining & Metals
Woolworths Ltd. 43,000 99,184
Retail-General Merchandise
251,068
-----------
BELGIUM-0.1%
Kredietbank, N.V. 170 54,913
Banks
11
PORTFOLIO OF INVESTMENTS (CONTINUED)
ALLIANCE GROWTH INVESTORS FUND
_______________________________________________________________________________
COMPANY SHARES VALUE
- -------------------------------------------------------------------------
CANADA-0.5%
Canadian Pacific, Ltd. 16,000 $ 404,000
Railroads
Loewen Group, Inc. 2,600 103,025
Business Services
507,025
-----------
CHINA-0.0%
Guangshen Railway Ltd. (ADR) * 1,000 18,625
Railroad Transportation
DENMARK-0.3%
BG Bank A/S 700 29,747
Banks
Den Danske Bank 1,700 121,966
Banks
ISS International 3,450 97,939
Finance-Miscellaneous
249,652
-----------
FINLAND-0.7%
Nokia AB OY Corp. pfd. 1,180 54,486
Communication Equipment
Nokia Corp. (ADR) 9,750 452,156
Communication Equipment
Orion-Yhtmae OY Cl. B 2,610 88,343
Drugs
UPM-Kymmene Corp. * 2,750 55,788
Paper
650,773
-----------
FRANCE-1.2%
Bouygues 1,015 99,465
Home Builders
Danone 15 2,054
Food
Generale des Eaux 915 109,353
Diversified
GTM Entrepose, S.A. 815 38,658
Home Builders
Lafarge, S.A. 35 2,100
Building & Construction
Legris Ind., S.A. 1,620 63,025
Capital Goods-Miscellaneous
Pechiney, S.A. Cl.A 1,113 47,786
Mining & Metals
Salomon, S.A. 610 54,646
Entertainment & Leisure
SGS-Thomson Microelectronics N.V., Ltd. * 650 34,442
Semi-Conductors
SIMCO 495 42,021
Real Estate
Societe Centrale des Assurances Generales
de France 3,790 111,791
Insurance
Societe Des Immeubles 560 35,600
Miscellaneous
Societe Francaise d'Invetissements
Immobiliers et de Gestion 500 38,631
Real Estate
Societe Nacionale Elf Aquitaine 1,250 99,951
International Energy
Societe Television Francaise 350 37,242
Printing, Publishing & Broadcasting
Total, S.A. Cl.B 2,494 195,081
Energy
Unibail, S.A. 760 75,665
Real Estate
Union Immobilier France 470 36,405
Real Estate
Usinor Sacilor 4,200 62,312
Mining & Metals
1,186,228
-----------
GERMANY-0.9%
Bayer A.G. 4,870 184,008
Chemicals
Deutsche Lufthansa A.G. * 5,500 71,910
Airlines
12
ALLIANCE GROWTH INVESTORS FUND
_______________________________________________________________________________
COMPANY SHARES VALUE
- -------------------------------------------------------------------------
Fresenius Medical Care A.G. * 700 $ 62,447
Drugs, Hospital Supplies & Medical Services
Henkel KGaA, pfd. 2,650 118,903
Financial
Hornbach Holding A.G. pfd. 1,180 74,023
Retail-General Merchandise
KSB A.G.-Vorzug, pfd. 300 38,926
Machinery
Preussag A.G. 170 40,928
Steel
Schmalbach Lubeca A.G. * 400 79,900
Containers & Packaging
Suedzucker A.G. 160 71,844
Household Products
Veba A.G. 3,210 171,204
Utility / Electric
914,093
-----------
HONG KONG-0.4%
Asia Satellite Telephone * 2,000 5,302
Utility / Telephone
Citic Pacific, Ltd. 9,000 43,765
Diversified
Dao Heng Bank Group, Ltd. 14,000 61,561
Banks
First Pacific Co., Ltd. 27,000 37,189
Diversified
Hong Kong & China Gas Co., Ltd. 11,000 19,348
warrants, expiring 9/30/97* 2,000 737
Electric & Gas Utility
Hutchison Whampoa, Ltd. 4,000 27,935
Conglomerates
Hysan Development Co., Ltd. 6,000 19,244
Real Estate
New World Development Co., Ltd. 4,000 23,279
Real Estate
Paul Y-ITC Construction Holdings, Inc.
warrants expiring 3/31/97 * 5,000 88
warrants expiring 3/31/98 * 5,000 112
Diversified
Sun Hung Kai Properties, Ltd. 3,000 34,143
Real Estate
Swire Pacific, Ltd. Cl.A 4,000 35,307
Conglomerates
Television Broadcasts of Hong Kong, Ltd. 10,000 35,048
Telecommunications
Wharf Holdings 7,000 28,879
Real Estate
371,937
-----------
INDIA-0.1%
Bajaj Auto, Ltd. (GDR) (a) 2,000 63,000
Auto & Trucks
Industrial Credit & Investment Corporation
of India, Ltd. (GDR) (a) 3,000 25,500
Financial Services
State Bank of India (GDR)*(a) 3,000 44,550
Banks
133,050
-----------
INDONESIA-0.2%
HM Sampoerna 9,000 83,652
Tobacco
Indosat 15,000 45,400
Telecommunications
Telekomunikasi Indiana 32,900 49,082
Telephone Utility
178,134
-----------
13
PORTFOLIO OF INVESTMENTS (CONTINUED)
ALLIANCE GROWTH INVESTORS FUND
_______________________________________________________________________________
COMPANY SHARES VALUE
- -------------------------------------------------------------------------
IRELAND-0.2%
Irish Life Plc. 23,200 $ 99,736
Insurance
Saville Systems Ireland Plc. (ADR) * 1,800 77,625
Computer Software
177,361
-----------
ITALY-0.4%
Ente Nazionale Idrocarburi 20,200 96,739
Oil Services
Industrie Natuzzi S.p.A. (ADS) 1,200 54,450
Household Products
Istituto Nazionale delle Assicurazioni 66,000 91,147
Insurance
Magneti Marelli 22,700 21,997
Capital Goods
Saipem 9,700 49,491
Oil Supplies & Construction
Societa Italiana Per L'Eserreizio Delle
Telecommunicazioni, P.A. 44,400 98,927
Utility / Telephone
412,751
-----------
JAPAN-6.2%
Amano Corp. 6,000 71,670
Capital Goods-Miscellaneous
Asahi Glass Co. 12,000 126,477
Basic Industry-Miscellaneous
Bank of Tokyo, Ltd. 6,000 122,261
Banks
Canon, Inc. 7,000 134,030
Technology-Miscellaneous
Chiba Bank, Ltd. 4,000 30,073
Banks
Daifuku Co., Ltd. 5,000 61,482
Industrial Machinery
Dai Nippon Ink & Chemicals, Inc. 4,000 67,454
Printing & Publishing
Daito Trust Construction Co., Ltd. 7,000 88,534
Construction
Daiwa Securities Co., Ltd. 2,000 21,606
Brokerage & Money Management
DDI Corp. 46 345,439
Telecommunications
East Japan Railway Co. 16 73,497
Railroad Transportation
Eisai Co., Ltd. 4,000 71,670
Drugs, Hospital Supplies & Medical Services
Fuji Photo Film Co. 1,000 28,721
Photo & Optical
Furukawa Co., Ltd. 9,000 39,208
Electric & Gas Utility
Hirose Electric Co. 2,000 118,748
Technology-Miscellaneous
Honda Motor Co. 3,000 71,670
Auto & Related
House Foods Industry Corp. 2,000 34,605
Food
Hoya Corp. 4,000 131,395
Technology-Miscellaneous
Ishikawajima-Harima Heavy, Ind. 6,000 27,667
Aerospace
Ito-Yokado Co., Ltd. 1,000 49,888
Retail-General Merchandise
Japan Securities Finance 8,000 106,803
Brokerage & Money Management
Japan Tobacco, Inc. 8 56,493
Tobacco
Kamigumi Co., Ltd. 5,000 38,646
Engineering & Construction
Kandenko Co., Ltd. 4,000 43,213
Engineering & Construction
14
ALLIANCE GROWTH INVESTORS FUND
_______________________________________________________________________________
COMPANY SHARES VALUE
- -------------------------------------------------------------------------
Kao Corp. 9,000 $ 105,924
Household Products
Kirin Brewery Co., Ltd. 4,000 41,105
Beverages
Kokuyo 3,000 74,305
Consumer Manufacturing-Miscellaneous
Kuraray Co., Ltd. 7,000 67,630
Textile Products
Kyocera Corp. 1,000 65,961
Semi-Conductor Components
Mabuchi Motor Co. 1,000 50,942
Capital Goods-Miscellaneous
Maeda Road Construction Corp. 2,000 28,809
Engineering & Construction
Matsushita Electric Industrial Co., Ltd. 9,000 143,867
Appliances
Matsushita Electric Works 5,000 48,307
Building & Related
Mitsubishi Heavy Industries, Ltd. 9,000 69,167
Industrial Machinery
Mitsubishi Materials Corp. 5,000 22,221
Mining & Metals
Mitsubishi Oil Co. 9,000 66,321
Oil & Gas Services
Mitsui Marine & Fire Insurance Co. 9,000 58,495
Insurance
Mitsui Trust and Banking Co., Ltd. 18,000 173,905
Banks
National House Industrial Co. 4,000 57,617
Building & Construction
NGK Insulators 3,000 30,302
Engineering & Construction
Nikko Securities Co., Ltd. 6,000 57,442
Brokerage & Money Management
Nippon Express Co., Ltd. 8,000 64,995
Trucking
Nippon Light Metal Co. 7,000 33,692
Mining & Metals
Nippon Steel Co. 18,000 52,488
Mining & Metals
Nisshin Steel Co., Ltd. 34,000 105,116
Mining & Metals
NKK Corp. * 20,000 50,239
Mining & Metals
Nomura Securities Co., Ltd. 6,000 99,073
Investment Companies
Osaka Gas Co. 15,000 46,375
Gas & Pipeline Utilities
Rohm Co. 5,000 296,430
Semi-Conductor Components
Sankyo Co. 1,000 24,768
Drugs, Hospital Supplies &
Medical Services
Seven-Eleven Japan Co., Ltd. 4,000 232,577
Retail-General Merchandise
Shimano Industrial Co. 3,000 53,489
Consumer Manufacturing-Miscellaneous
Shimizu Corp. 5,000 45,233
Engineering & Construction
Shiseido Co., Ltd. 6,000 70,089
Cosmetics
Sony Music Entertainment Japan 1,000 38,558
Entertainment & Leisure
Sumitomo Bank Inte 9,000,000 86,656
Banks
Sumitomo Electric Industries 4,000 52,699
Electrical Equipment
Sumitomo Marine & Fire 8,000 57,336
Insurance
Sumitomo Realty and Development Co., Ltd. 9,000 65,452
Real Estate
Sumitomo Rubber Industries 5,000 35,396
Auto & Related
Taisho Pharmaceutical Co. 3,000 59,549
Drugs, Hospital Supplies &
Medical Services
15
PORTFOLIO OF INVESTMENTS (CONTINUED)
ALLIANCE GROWTH INVESTORS FUND
_______________________________________________________________________________
COMPANY SHARES VALUE
- -------------------------------------------------------------------------
Takeda Chemical Industries 3,000 $ 51,381
Drugs
TDK Corp. 6,000 352,027
Semi-Conductor Components
Toagosei Co., Ltd. 3,000 12,858
Chemicals
Tokai Bank 7,000 81,156
Banks
Tokyo Electric Power Co. 3,000 68,772
Utility / Electric
Tokyo Gas Co., Ltd. 32,000 99,776
Gas & Pipeline Utilities
Tokyo Steel Mfg. 8,000 123,666
Mining & Metals
Toyo Kanetsu 5,000 20,377
Machinery
Toyota Motor Corp. 10,000 236,265
Auto & Trucks
UBE Industries, Ltd. 6,000 19,393
Mining & Metals
Ushio, Inc. 5,000 52,259
Capital Goods-Miscellaneous
Yakult Honsha Co. 4,000 49,888
Food
Yamanouchi Pharmaceutical Co., Ltd. 5,000 101,445
Drugs, Hospital Supplies & Medical Services
Yamatake-Honeywell 3,000 50,327
Auto & Related
Yamazaki Baking Co., Ltd. 3,000 47,692
Food
6,061,062
-----------
KOREA-0.0%
Korea Electric Power Corp. (ADR) 2,000 36,000
Utility / Electric
MALAYSIA-0.2%
AMMB Holdings Berhad 8,000 54,146
Financial Services
Malakoff Berhad 7,000 31,585
Electric & Gas Utility
Malayan Bank Berhad 4,000 39,581
Banks
Petronas Gas Berhad* 8,000 32,614
Gas Utility
Resorts World Berhad 12,000 68,870
Entertainment & Leisure
226,796
-----------
NETHERLANDS-0.6%
AKZO Nobel N.V. 1,270 160,032
Chemicals
CSM N.V. 400 21,100
Household Products
Fortis Amev N.V. 5,260 157,177
Insurance
Internationale Nederlanden Groep N.V. 5,210 162,438
Banks
Opg Apoth Cooperative 830 21,524
Drugs
Vendex International N.V. 2,300 92,857
Retail-General
615,128
-----------
NEW ZEALAND-0.1%
Fletcher Challenge, Ltd. 12,000 20,035
Diversified
Lion Nathan, Ltd. 14,000 36,152
Food & Beverages
Telecom Corp. of New Zealand, Ltd. 13,000 67,598
Utility / Telephone
123,785
-----------
NORWAY-0.3%
Bergesen D.Y. AS Cl.A 3,400 74,332
Transportation-Shipping
First Olsen Tanker * 12,000 94,032
Transportation-Trucking
Orkla ASA 750 47,956
Diversified
Schibsted ASA 2,850 43,549
Printing & Publishing
16
ALLIANCE GROWTH INVESTORS FUND
_______________________________________________________________________________
COMPANY SHARES VALUE
- -------------------------------------------------------------------------
Unitor ASA 830 $ 9,106
Diversified
268,975
-----------
PHILIPPINES-0.0%
Manila Electric Co. 3,900 28,641
Utility / Electric
Philippine Commercial International Bank 1,000 12,938
Banks
41,579
-----------
SINGAPORE-0.2%
Overseas-Chinese Banking Corp. Ltd. 4,600 52,581
Banks
Overseas Union Banking Corp., Ltd. 7,400 50,436
Banks
Singapore Airlines, Ltd. 1,000 8,804
Airlines
Singapore Press Holdings, Ltd. 4,000 66,454
Printing & Publishing
178,275
-----------
SOUTH KOREA-0.1%
Korea Mobile Telecom Corp. (ADR)* 6,000 75,000
Utility / Telephone
SPAIN-0.2%
Autopistas Cesa 3,480 39,956
Utilities
Repsol, S.A. 1,980 64,632
Energy
Tabacalera, S.A. Series A 1,620 59,292
Tobacco
Viscofan Envolturas Celulosi 1,150 16,404
Food
180,284
-----------
SWEDEN-0.3%
AB Astra Series A 2,500 114,817
Drugs, Hospital Supplies & Medical Services
Electrolux AB Series B 750 41,744
Appliances
Sparbanken Sverige AB 1,850 29,259
Banks
Stora Kopparbergs Series B 6,570 84,427
Paper & Forest Products
270,247
-----------
SWITZERLAND-0.7%
Adia S.A. 150 42,128
Business Services
Baloise Holdings, Ltd. 51 106,519
Insurance
Ciba-Geigy A.G. 270 332,587
Chemicals
Nestle, S.A. 158 171,625
Food
Schindler Holdings A.G. 42 42,798
Machinery
695,657
-----------
THAILAND-0.1%
Bangkok Bank Public Co. Ltd. 2,000 21,338
Banks
Thai Farmers Bank Co. * 6,250 46,136
Banks
67,474
-----------
UNITED KINGDOM-3.4%
Anglian Water Plc 9,600 85,000
Utilities
B.A.T. Industries Plc 10,900 75,576
Tobacco
BAA Plc 11,900 95,874
Airlines
Barclays Plc 11,380 178,646
Banks
Bass Plc 6,400 82,083
Beverages
British Aerospace 5,040 95,730
Aerospace
British Petroleum Co. Plc 16,100 173,015
Oil & Gas Services
17
PORTFOLIO OF INVESTMENTS (CONTINUED)
ALLIANCE GROWTH INVESTORS FUND
_______________________________________________________________________________
COMPANY SHARES VALUE
- -------------------------------------------------------------------------
British Sky Broadcast 9,800 $ 92,035
Telecommunications Equipment
British Telecommunications Plc 18,500 107,043
Telecommunications Equipment
BTR Plc 34,000 142,497
Conglomerates
Cadbury Schweppes Plc 11,000 91,667
Food
Compass Group 4,100 40,773
Professional Services
General Electric Co. Plc 15,500 95,866
Electrical Equipment
Glaxo Holdings 7,100 111,515
Drugs, Hospital Supplies & Medical Services
Grand Metropolitan Plc 11,700 88,264
Food
Hanson Plc 32,800 42,975
Conglomerates
Hepworth Plc 12,500 60,628
Building Materials
Holliday Chemical Holdings Plc 15,535 30,231
Chemicals
Ladbroke Group Plc 26,800 87,022
Hotels & Restaurants
National Grid Group Plc 31,700 92,871
Utility / Electric
National Westminster 8,100 92,483
Banks
Pearson Plc 5,900 72,790
Conglomerates
Rank Group Plc 16,200 107,710
Entertainment & Leisure
Reed International 5,730 106,691
Printing & Publishing
Refuge Group Plc 8,100 58,271
Insurance
SHARES OR
PRINCIPAL
AMOUNT
COMPANY (000) VALUE
- -------------------------------------------------------------------------
Reuters Holdings Plc 8,860 $ 110,317
Printing, Publishing & Broadcasting
Rugby Group Plc 28,900 47,273
Building & Related
Sainsbury (J.) Plc 16,500 100,230
Retail-Food/Drug
Sears Plc 50,300 71,226
Retail-General
Siebe Plc 5,750 90,218
Conglomerates
Smith & Nephew Plc 8,000 24,414
Drugs, Hospital Supplies & Medical Services
Smithkline Beecham 7,750 95,740
Drugs (ADR)
Smithkline Beecham Plc 1,500 93,938
Drugs
Tate & Lyle Plc 158 1,229
Food Processing
Tesco Plc 16,100 87,261
Retail-Food/Drug
Ti Group Plc 12,500 115,662
Conglomerates
Tomkins Plc 10,100 42,412
Conglomerates
Vodafone Group Plc 22,500 86,975
Telecommunications Equipment
Wimpey (George) Plc 40,200 81,133
Home Builders
3,355,284
-----------
Total Foreign Investments
(cost $17,259,615) 17,301,156
Total Common Stocks & Other Investments
(cost $63,982,365) 68,904,130
LONG-TERM DEBT SECURITIES-21.4%
CREDIT SENSITIVE-5.3%
Auburn Hills Trust
12.00%, 5/01/20 $ 250 377,060
18
ALLIANCE GROWTH INVESTORS FUND
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) VALUE
- -------------------------------------------------------------------------
Calenergy, Inc.
9.50%, 9/15/06 $ 395 $ 402,406
Ford Motor Credit Co.
6.125%, 1/09/06 650 612,027
Prudential Insurance Co. of America
8.10%, 7/15/15 (a) 700 717,920
Quebec Province Canada
7.50%, 7/15/23 (b) 850 846,990
Reliance Industries, Ltd.
10.50%, 8/06/46 650 674,011
Republic of Poland PDI
3.75%, 10/27/14 925 763,125
Time Warner Entertainment Co.
9.15%, 2/01/23 675 734,333
5,127,872
-----------
MORTGAGE BACKED SECURITIES-4.8%
Federal National Mortgage Association
6.50%, 1/01/11 102 100,422
6.50%, 5/01/11 1,960 1,927,741
7.00%, 5/01/26 1,077 1,056,168
8.50%, 12/01/25 958 991,357
Government National Mortgage Association
7.50%, 1/15/26 657 658,919
4,734,607
-----------
U.S. GOVERNMENT & AGENCY SECURITIES-11.3%
Federal Home Loan Bank
7.00%, 9/01/11 $1,028 1,029,993
U.S. Treasury Notes
5.75%, 8/15/03 2,900 2,824,339
6.375%, 5/15/99 3,200 3,238,496
6.50%, 8/15/05 1,585 1,601,595
7.25%, 2/15/98 2,250 2,293,582
10,988,005
-----------
Total Long-Term Debt Securities
(cost $20,582,083) 20,850,484
SHORT-TERM DEBT SECURITIES-7.0%
Federal Home Loan Mortgage Association
5.16%, 11/05/96 2,800 2,798,395
Student Loan Marketing Association
5.53%, 11/01/96 4,000 4,000,000
Total Short-Term Debt Securities
(amortized cost $6,798,395) 6,798,395
TOTAL INVESTMENTS-99.1%
(cost $91,362,843) 96,553,009
Other assets less liabilities-0.9% 867,047
NET ASSETS-100% $97,420,056
* 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, 1996,
these securities amounted to $850,970 or 0.9% of net assets.
(b) Country of origin--Canada.
Glossary:
ADR - American Depository Receipt
ADS - American Depository Security
GDR - Global Depository Receipt
PDI - Past Due Interest
See notes to financial statements.
19
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1996 (UNAUDITED)
ALLIANCE CONSERVATIVE INVESTORS FUND
_______________________________________________________________________________
COMPANY SHARES VALUE
- -------------------------------------------------------------------------
COMMON STOCKS & OTHER INVESTMENTS-31.9%
UNITED STATES INVESTMENTS-24.5%
CONSUMER NONCYCLICALS-6.8%
APPAREL & TEXTILE-0.4%
Reebok International, Ltd. 5,484 $ 196,053
BEVERAGES-0.7%
PepsiCo, Inc. 11,100 328,837
BIOTECHNOLOGY-1.1%
Amgen, Inc. * 3,000 183,937
Biogen, Inc. * 1,900 141,550
Centocor, Inc. * 4,840 142,175
Steris Corp. * 1,920 72,480
------------
540,142
BROADCASTING-0.4%
Cablevision Systems Corp. Cl.A * 2,000 62,250
TCI Group Series A * 6,600 82,087
Viacom, Inc. Cl.B* 2,062 67,273
------------
211,610
COSMETICS-0.3%
Gillette Co. 1,990 148,753
DRUGS, HOSPITAL SUPPLIES & MEDICAL SERVICES-1.7%
Columbia/HCA Healthcare Corp. 5,625 201,094
Medtronic, Inc. 2,000 128,750
Merck & Co., Inc. 3,000 222,375
Oxford Health Plans, Inc. * 2,500 113,750
Pfizer, Inc. 2,200 182,050
------------
848,019
ENTERTAINMENT & LEISURE-0.4%
Walt Disney Co. 2,833 186,624
FOOD PROCESSING-0.5%
Campbell Soup Co. 1,465 117,200
Nabisco Holdings Corp. Cl.A 3,410 127,023
------------
244,223
HOUSEHOLD PRODUCTS-0.3%
Colgate-Palmolive Co. 1,610 148,120
PRINTING & PUBLISHING-0.2%
New York Times Co. 2,800 101,150
TOBACCO-0.8%
Loews Corp. 1,000 82,625
Philip Morris Cos., Inc. 3,650 338,081
------------
420,706
------------
3,374,237
TECHNOLOGY-5.3%
AEROSPACE & DEFENSE-0.2%
Boeing Co. 500 47,687
United Technologies Corp. 400 51,500
------------
99,187
COMMUNICATIONS EQUIPMENT-0.2%
DSC Communications Corp. * 1,250 17,344
Scientific-Atlanta, Inc. 6,250 90,625
------------
107,969
COMPUTER HARDWARE-0.5%
Ceridian Corp. * 2,000 99,250
COMPAQ Computer Corp. * 1,650 114,881
Storage Technology Corp. * 800 34,100
------------
248,231
COMPUTER NETWORKING SOFTWARE-0.7%
3Com Corp. * 4,900 331,362
Bay Networks, Inc. * 250 5,063
------------
336,425
COMPUTER PERIPHERALS-0.1%
Seagate Technology, Inc. * 800 53,400
20
ALLIANCE CONSERVATIVE INVESTORS FUND
_______________________________________________________________________________
COMPANY SHARES VALUE
- -------------------------------------------------------------------------
COMPUTER SERVICES-0.5%
Electronic Data Systems Corp. New 3,450 $ 155,250
First Data Corp. 1,400 111,650
------------
266,900
COMPUTER SOFTWARE-1.7%
Cisco Systems, Inc. * 4,900 303,188
Informix Corp. * 7,200 159,750
Learning Company, Inc. * 400 8,125
Microsoft Corp. * 700 96,075
Oracle Systems Corp. * 5,450 230,603
Sterling Software, Inc. * 650 21,125
------------
818,866
ELECTRICAL EQUIPMENT-0.6%
General Electric Co. 2,800 270,900
SEMI-CONDUCTORS & RELATED-0.7%
Altera Corp. * 2,900 179,800
Intel Corp. 1,600 175,800
------------
355,600
TELECOMMUNICATIONS-0.1%
MFS Communications, Inc. * 800 40,100
WorldCom, Inc. * 1,200 29,250
------------
69,350
------------
2,626,828
CREDIT SENSITIVE-3.2%
BANKS-0.7%
First Chicago NBD Corp. 2,000 102,000
First Union Corp. 3,500 254,625
------------
356,625
BROKERAGE & MONEY MANAGEMENT-0.3%
Merrill Lynch & Co., Inc. 2,100 147,525
FINANCIAL SERVICES-0.7%
American Express Co. 1,500 70,500
Associates First Capital Corp. 800 34,700
Dean Witter, Discover & Co. 4,300 253,163
------------
358,363
INSURANCE-1.0%
General Reinsurance Corp. 570 83,932
MGIC Investment Corp. 1,000 68,625
TIG Holdings, Inc. 2,500 72,188
Travelers Group, Inc. 5,180 281,015
------------
505,760
MISCELLANEOUS-0.5%
MBNA Corp. 6,200 234,050
------------
1,602,323
ENERGY-3.1%
OIL & GAS SERVICES-2.9%
Apache Corp. 3,500 124,250
Baker Hughes, Inc. 5,000 178,125
BJ Services Co. * 3,900 175,013
Exxon Corp. 2,500 221,562
Louisiana Land & Exploration Co. 1,800 102,375
Mobil Corp. 700 81,725
Nabors Industries, Inc. * 5,100 84,788
Noble Drilling Corp. * 2,200 40,975
Schlumberger, Ltd. 2,100 208,162
Transocean Offshore, Inc. 2,600 164,450
Union Pacific Resources Group, Inc. 1,609 44,248
------------
1,425,673
UTILITY / ELECTRIC-0.2%
FPL Group, Inc. 2,200 101,200
------------
1,526,873
CONSUMER CYCLICALS-2.5%
AIRLINES-0.2%
Delta Airlines, Inc 500 35,438
Northwest Airlines Corp. Cl.A * 2,100 69,562
------------
105,000
RAILROAD TRANSPORTATION-0.4%
Burlington Northern Santa Fe 1,300 107,087
Union Pacific Corp. 1,900 106,638
------------
213,725
21
PORTFOLIO OF INVESTMENTS (CONTINUED)
ALLIANCE CONSERVATIVE INVESTORS FUND
_______________________________________________________________________________
COMPANY SHARES VALUE
- -------------------------------------------------------------------------
RESTAURANTS & LODGING-0.4%
Host Marriott Corp. * 3,600 $ 55,350
ITT Corp. * 1,560 65,520
La Quinta Inns, Inc. 4,950 99,000
------------
219,870
RETAIL-FOOD/DRUG-0.2%
Revco D.S. Inc. * 3,000 90,375
RETAIL-GENERAL-0.2%
Federated Department Stores, Inc. * 1,000 33,000
Fingerhut Cos., Inc. 3,000 44,625
------------
77,625
RETAIL-GENERAL MERCHANDISE-0.7%
AutoZone, Inc. * 12,650 324,156
RETAIL-TOYS-0.1%
Hasbro, Inc. 1,000 38,875
TRANSPORTATION & SHIPPING-0.1%
Xtra Corp. 1,800 74,700
MISCELLANEOUS-0.2%
First Brands Corp. 3,000 85,125
------------
1,229,451
BASIC INDUSTRIES-1.6%
CONTAINERS-0.2%
Crown Cork & Seal Co., Inc. 2,000 96,000
ENVIRONMENTAL CONTROL-0.7%
USA Waste Services, Inc. * 6,100 195,200
WMX Technologies, Inc. 4,100 140,938
------------
336,138
MACHINERY-0.5%
Allied-Signal, Inc. 3,400 222,700
Coltec Industries, Inc. * 2,500 43,125
------------
265,825
MINING & METALS-0.2%
Reynolds Metals Co. 1,900 106,875
------------
804,838
BASIC MATERIALS-1.1%
BUILDING & RELATED-0.1%
American Standard Cos., Inc * 1,350 50,794
CHEMICALS-0.7%
Cytec Industries, Inc. * 500 17,875
Freeport McMoran, Inc. 2,000 63,750
Hercules, Inc. 800 38,100
Monsanto Co. 3,000 118,875
Olin Corp. 2,600 110,500
------------
349,100
ENGINEERING & CONSTRUCTION-0.2%
Martin Marietta Materials, Inc. 4,200 99,750
PAPER & FOREST PRODUCTS-0.1%
Louisiana-Pacific Corp. 1,500 31,312
------------
530,956
CONSUMER MANUFACTURING-0.9%
APPLIANCES-0.6%
Black & Decker Corp. 2,300 85,962
Sunbeam Corp., Inc. 8,800 216,700
------------
302,662
MISCELLANEOUS-0.3%
U.S. Industries, Inc. * 5,000 135,000
------------
437,662
Total United States Investments
(cost $10,962,622) 12,133,168
FOREIGN INVESTMENTS-7.4%
AUSTRALIA-0.0%
Woolworth, Ltd. 8,000 18,453
Retail-General
CANADA-0.2%
Canadian Pacific, Ltd. 4,000 101,000
Railroads
FINLAND-0.0%
Orion-Yhtmae OY Cl.B 500 16,924
Drugs
22
ALLIANCE CONSERVATIVE INVESTORS FUND
- -------------------------------------------------------------------------------
COMPANY SHARES VALUE
- -------------------------------------------------------------------------
FRANCE-0.6%
Bouygues 20 $ 1,960
Home Builders
Cie de Suez 500 21,526
Banks
Generale des Eaux 917 109,591
Diversified
Societe Television Francaise 900 74,484
Printing, Publishing & Broadcasting
Total, S.A. Cl.B 1,000 80,958
Energy
288,519
-----------
GERMANY-0.8%
Bayer A.G. 3,000 113,352
Chemicals
Deutsche Bank A.G. 2,100 97,262
Banks
Deutsche Lufthansa A.G. * 1,000 13,075
Airlines
Fresenius Medical Care A.G. * 500 44,605
Drugs, Hospital Supplies & Medical Services
Hornbach Holding A.G. pfd. 600 37,639
Retail-General Merchandise
Veba A.G. 1,600 85,335
Utility / Electric
391,268
-----------
HONG KONG-0.2%
Asia Satellite Telephone * 3,000 7,954
Utility / Telephone
Dao Heng Bank Group, Ltd. 7,000 30,780
Banks
Hong Kong & China Gas Co., Ltd. warrants,
expiring 9/30/97 1,500 553
Electric & Gas Utility
Swire Pacific, Ltd., Cl.A 5,000 44,134
Diversified
83,421
-----------
INDIA-0.0%
Bajaj Auto, Ltd. (GDR) (a) 500 15,750
Auto & Trucks
INDONESIA-0.1%
HM Sampoerna 2,000 18,589
Tobacco
Indonesian Satellite Corp. (ADR) 800 24,100
Computer Peripherals
Ramayana Lestari * 1,500 2,544
Retail-General Merchandise
45,233
-----------
ITALY-0.1%
Istituto Nazionale delle Assicurazioni 12,000 16,572
Insurance
Magneti Marelli 8,700 8,431
Capital Goods-Miscellaneous
25,003
-----------
JAPAN-2.7%
Bank of Tokyo, Ltd. 2,000 40,754
Banks
Canon, Inc. 6,000 114,883
Office Equipment
Ezaki Glico Co. 3,000 27,930
Food & Beverages
Fuji Bank Ltd. 2,000 36,011
Banks
Fuji Photo Film Co. 3,000 86,162
Photo & Optical
Hitachi Ltd. 8,000 70,967
Electrical Equipment
Honda Motor Co. 3,000 71,670
Auto & Related
Ito-Yokado Co., Ltd. 2,000 99,776
Retail-General Merchandise
Kirin Brewery Co., Ltd. 8,000 82,210
Beverages
Kokuyo 1,000 24,768
Miscellaneous
23
PORTFOLIO OF INVESTMENTS (CONTINUED)
ALLIANCE CONSERVATIVE INVESTORS FUND
_______________________________________________________________________________
COMPANY SHARES VALUE
- -------------------------------------------------------------------------
Matsushita Electric Industrial Co., Ltd. 4,000 $ 63,941
Appliances
Matsushita Electric Works 2,000 19,323
Building & Related
National House Industrial Co. 1,000 14,404
Building & Construction
Nippon Express Co., Ltd. 2,000 16,249
Trucking
Nomura Securities Co., Ltd. 5,000 82,561
Investment Companies
Sakura Bank 5,000 47,429
Banks
Seven-Eleven Japan Co., Ltd. 1,000 58,144
Retail-General Merchandise
Sharp Corp. 2,000 30,389
Appliances
Shimano, Inc. 2,000 35,659
Miscellaneous
Shiseido Co., Ltd. 2,000 23,363
Cosmetics
Sumitomo Electric Industries 2,000 26,349
Electrical Equipment
Taisho Pharmaceutical Co. 2,000 39,700
Drugs, Hospital Supplies & Medical Services
Tokyo Electric Power Co. 3,000 68,772
Utility / Electric
Tokyo Marine and Fire Insurance Co., Ltd. 9,000 98,810
Insurance
Toyota Motor Corp. 3,000 70,880
Auto & Trucks
1,351,104
-----------
MALAYSIA-0.2%
Berjaya Sports Toto Berhad 7,000 26,321
Entertainment & Leisure
Resorts World Berhad 9,000 51,652
Entertainment & Leisure
77,973
-----------
NETHERLANDS-0.4%
AKZO Nobel N.V. 600 75,605
Chemicals
Internationale Nederlanden Groep N.V. 3,575 111,462
Banking
187,067
-----------
NEW ZEALAND-0.1%
Telecom Corp. of New Zealand, Ltd. 8,000 41,599
Utility / Telephone
SINGAPORE-0.1%
Overseas-Chinese Banking Corp., Ltd. 2,200 25,147
Banks
SOUTH KOREA-0.1%
Korea Mobile Telecom Corp. * 4,500 56,250
Utility / Telephone
SPAIN-0.0%
Uralita, S.A. 2,000 15,675
Building & Related
SWEDEN-0.0%
Sparbanken Sverige AB 1,200 18,979
Banks
SWITZERLAND-0.6%
Ciba-Geigy A.G. 50 61,590
Chemicals
Nestle, S.A. 100 108,624
Food
Sandoz A.G. 75 86,689
Drugs
24
ALLIANCE CONSERVATIVE INVESTORS FUND
_______________________________________________________________________________
COMPANY SHARES VALUE
- -------------------------------------------------------------------------
Zurich Versicherungsgesellschaft 60 $ 16,424
Insurance
273,327
-----------
THAILAND-0.0%
Bangkok Bank Public Co., Ltd. 2,000 21,337
Banks
UNITED KINGDOM-1.2%
B.A.T Industries Plc 10,000 69,336
Tobacco
British Telecommunications Plc 12,000 69,434
Telecommunications Equipment
BTR Plc 18,000 75,440
Conglomerates
Cadbury Schweppes Plc 6,000 50,000
Food & Beverages
General Accident 3,500 41,642
Insurance
Grand Metropolitan Plc 11,000 82,983
Food
Refuge Group Plc 2,800 20,143
Insurance
Reuters Holdings Plc 3,700 46,069
Printing, Publishing & Broadcasting
Sears Plc 25,000 35,400
Retail-General Merchandise
Smithkline Beecham 4,152 51,292
Drugs
Tesco Plc 8,000 43,359
Retail-Food/Drug
Unichem 4,500 18,311
Medical Products
603,409
-----------
Total Foreign Investments
(cost $3,645,079) 3,657,438
Total Common Stocks & Other Investments
(cost $14,607,701) 15,790,606
PRINCIPAL
AMOUNT
(000) VALUE
- -------------------------------------------------------------------------
LONG-TERM DEBT SECURITIES-57.3%
CREDIT SENSITIVE-17.1%
Auburn Hills Trust
12.00%, 5/01/20 $ 700 $ 1,055,768
John Hancock Mutual Life Insurance Co.
7.375%, 2/15/24 (a) 1,050 1,021,744
Morgan Stanley Group, Inc.
6.50%, 3/30/01 1,000 999,350
Premier Auto Trust
7.15%, 2/04/99 1,500 1,515,000
Prudential Insurance Co. of America
8.10%, 7/15/15 (a) 600 615,360
Quebec Province Canada
7.13%, 2/09/24 (b) 1,300 1,240,785
St. George Bank, Ltd.
7.15%, 10/15/05 (a) 1,000 1,000,300
Time Warner Entertainment Co.
9.15%, 2/01/23 915 995,429
8,443,736
-----------
MORTGAGE BACKED SECURITIES-15.7%
Federal National Mortgage Assn.
6.50%, 6/01/11 3,971 3,904,943
7.00%, 5/01/26 1,615 1,584,252
8.50%, 12/01/25 958 991,357
Government National Mortgage Assn.
7.50%, 1/15/26 1,289 1,293,435
7,773,987
25
PORTFOLIO OF INVESTMENTS (CONTINUED)
ALLIANCE CONSERVATIVE INVESTORS FUND
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) VALUE
- -------------------------------------------------------------------------
U.S. GOVERNMENT & AGENCY SECURITIES-24.5%
Federal Home Loan Bank
7.00%, 9/01/11 $1,616 $ 1,618,561
U.S. Treasury Notes
5.75%, 8/15/03 2,750 2,678,252
6.375%, 5/15/99 3,950 3,997,518
6.50%, 8/15/05 2,240 2,263,453
7.75%, 12/31/99 1,475 1,550,358
12,108,142
-----------
Total Long-Term Debt Securities
(cost $27,842,667) 28,325,865
SHORT-TERM DEBT SECURITIES-9.5%
Federal Home Loan Mortgage Corp.
5.16%, 11/05/96 2,000 1,998,853
Student Loan Marketing Assn.
5.53%, 11/01/96 2,700 2,700,000
Total Short-Term Debt Securities
(amortized cost $4,698,853) 4,698,853
TOTAL INVESTMENTS-98.7%
(cost $47,149,221) 48,815,324
Other assets less liabilities-1.3% 626,150
NET ASSETS-100% $49,441,474
* 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, 1996,
these securities amounted to $2,653,154 or 5.4% of net assets.
(b) Country of origin--Canada.
Glossary:
ADR - American Depository Receipt
GDR - Global Depository Receipt
See notes to financial statements.
26
STATEMENTS OF ASSETS AND LIABILITIES
OCTOBER 31, 1996 (UNAUDITED)
ALLIANCE GROWTH INVESTORS AND CONSERVATIVE INVESTORS FUNDS
_______________________________________________________________________________
GROWTH CONSERVATIVE
INVESTORS INVESTORS
FUND FUND
----------- -----------
ASSETS
Investments in securities, at value
(cost $91,362,843 and $47,149,221, respectively) $96,553,009 $48,815,324
Cash, at value (cost $92,370, and $95,387,
respectively) 92,368 95,526
Receivable for investment securities and foreign
currency sold 1,048,182 303,091
Interest and dividends receivable 384,731 423,678
Receivable for shares of beneficial interest sold 71,345 102,023
Deferred organization expenses 3,000 3,000
Total assets 98,152,635 49,742,642
LIABILITIES
Payable for investment securities and foreign
currency purchased 533,290 149,265
Distribution fee payable 65,068 32,184
Advisory fee payable 36,872 7,774
Payable for shares of beneficial interest redeemed 5,640 3,018
Accrued expenses 91,709 108,927
Total liabilities 732,579 301,168
NET ASSETS $97,420,056 $49,441,474
COMPOSITION OF NET ASSETS
Shares of beneficial interest, at par $ 67 $ 43
Additional paid-in capital 80,254,196 46,118,596
Undistributed net investment income 1,078,164 649,979
Accumulated net realized gain on investments and
foreign currency transactions 10,901,384 1,009,132
Net unrealized appreciation of investments and
foreign currency denominated assets and
liabilities 5,186,245 1,663,724
$97,420,056 $49,441,474
CALCULATION OF MAXIMUM OFFERING PRICE
CLASS A SHARES
Net asset value and redemption price per share
($30,087,165 / 2,078,636 and $13,319,897/
1,157,667 shares of beneficial interest issued
and outstanding, respectively) $14.47 $11.51
Sales charge--4.25% of public offering price .64 .51
Maximum offering price $15.11 $12.02
CLASS B SHARES
Net asset value and offering price per share
($61,346,368 / 4,253,763 and $31,018,666/
2,656,633 shares of beneficial interest issued
and outstanding, respectively) $14.42 $11.68
CLASS C SHARES
Net asset value and offering price per share
($5,986,523 / 414,726 and $5,102,911 / 436,852
shares of beneficial interest issued and
outstanding, respectively) $14.43 $11.68
See notes to financial statements.
27
STATEMENTS OF OPERATIONS
SIX MONTHS ENDED OCTOBER 31, 1996 (UNAUDITED)
ALLIANCE GROWTH INVESTORS AND CONSERVATIVE INVESTORS FUNDS
_______________________________________________________________________________
GROWTH CONSERVATIVE
INVESTORS INVESTORS
FUND FUND
----------- -----------
INVESTMENT INCOME
Interest $ 846,385 $1,161,337
Dividends (net of foreign tax withheld of
$34,308 and $8,901, respectively) 481,490 124,182
Total income 1,327,875 1,285,519
EXPENSES
Advisory fee 362,094 188,117
Distribution fee - Class A 45,575 20,327
Distribution fee - Class B 301,544 156,520
Distribution fee - Class C 29,329 26,545
Custodian 97,848 62,526
Transfer agency 84,984 45,886
Audit and legal 47,572 34,096
Registration 26,276 25,114
Printing 21,907 11,247
Trustees' fees 14,953 14,516
Amortization of organization expenses 5,520 5,520
Miscellaneous 5,553 10,816
Total expenses 1,043,155 601,230
Less: expenses waived and assumed by adviser
(See Note B) (135,635) (121,933)
Net expenses 907,520 479,297
Net investment income 420,355 806,222
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY
Net realized gain on investment transactions 3,186,678 28,402
Net realized gain (loss) on foreign currency
transactions (2,549) 471
Net change in unrealized appreciation of
investments (1,163,461) 1,237,239
Net change in unrealized appreciation
(depreciation) of foreign currency denominated
assets and liabilities (3,674) 350
Net gain on investments and foreign currency
transactions 2,016,994 1,266,462
NET INCREASE IN NET ASSETS FROM OPERATIONS $2,437,349 $2,072,684
See notes to financial statements.
28
STATEMENTS OF CHANGES IN NET ASSETS
ALLIANCE GROWTH INVESTORS AND CONSERVATIVE INVESTORS FUNDS
_______________________________________________________________________________
<TABLE>
<CAPTION>
GROWTH INVESTORS FUND CONSERVATIVE INVESTORS FUND
------------------------------ -----------------------------
SIX MONTHS ENDED SIX MONTHS ENDED
OCT. 31,1996 YEAR ENDED OCT. 31,1996 YEAR ENDED
(UNAUDITED) APRIL 30,1996 (UNAUDITED) APRIL 30,1996
-------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS
Net investment income $ 420,355 $ 1,154,487 $ 806,222 $ 2,033,580
Net realized gain on investments
and foreign currency transactions 3,184,129 13,079,485 28,873 4,671,618
Net change in unrealized appreciation
(depreciation) of investments and
foreign currency denominated assets
and liabilities (1,167,135) 2,657,978 1,237,589 (793,910)
Net increase in net assets from
operations 2,437,349 16,891,950 2,072,684 5,911,288
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income
Class A -0- (510,038) (169,223) (740,336)
Class B -0- (687,510) (279,324) (1,250,244)
Class C -0- (64,858) (47,475) (194,637)
Net realized gain on investments
Class A -0- (1,147,583) -0- -0-
Class B -0- (2,234,313) -0- -0-
Class C -0- (210,790) -0- -0-
TRANSACTIONS IN SHARES OF BENEFICIAL
INTEREST
Net increase (decrease) (1,518,959) 14,701,805 (3,600,589) (3,326,752)
Total increase (decrease) 918,390 26,738,663 (2,023,927) 399,319
NET ASSETS
Beginning of year 96,501,666 69,763,003 51,465,401 51,066,082
End of period (including undistributed
net investment income of $1,078,164,
$657,809, $649,979 and $339,779,
respectively) $97,420,056 $96,501,666 $49,441,474 $51,465,401
</TABLE>
See notes to financial statements.
29
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 1996 (UNAUDITED)
ALLIANCE GROWTH INVESTORS AND 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 purchased on
or after July 1, 1996 are subject to a contingent deferred sales charge of 1%
on redemptions made within the first year after purchase.
All three classes of shares have identical voting, dividend, liquidation and
other rights, except that each class bears different distribution expenses and
has exclusive voting rights with respect to its distribution plan. The
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 INVESTMENT TRANSACTIONS
Dividend income is recorded on the ex-dividend date. Interest income is accrued
daily. Investment transactions are accounted for on the date securities are
purchased or sold. Investment gains and losses are determined on the identified
cost basis. The Fund accretes discounts and amortizes premiums as adjustments
to interest income.
30
ALLIANCE GROWTH INVESTORS AND CONSERVATIVE INVESTORS FUNDS
_______________________________________________________________________________
6. DIVIDENDS AND DISTRIBUTIONS
Dividends and distributions to shareholders are recorded on the ex-dividend
date.
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.
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 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 six months ended October 31, 1996, such
reimbursement amounted to $135,635 and $121,933 for the Growth Investors and
Conservative Investors Fund, respectively.
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 $63,796 and $28,877 for the Growth Investors and
Conservative Investors Funds, respectively, for the six months ended October
31, 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 $3,070 from the sale of Class A shares and $41,245
in contingent deferred sales charges imposed upon redemptions by shareholders
of Class B shares for the six months ended October 31, 1996 for the Growth
Investors Fund. The Distributor also received front-end sales charges of $1,968
from the sale of Class A shares and $35,921 in contingent deferred sales
charges imposed upon redemptions by shareholders of Class B shares for the six
months ended October 31, 1996 for the Conservative Investors Fund.
Brokerage commissions paid on securities transactions for the six months ended
October 31, 1996 amounted to $181,518 and $28,747 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 $25,772 and $25,223 for the Growth Investors and
Conservative Investors Funds, respectively.
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
$2,279,555 and $237,281 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 $1,700,822 and $344,167, 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
31
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
ALLIANCE GROWTH INVESTORS AND CONSERVATIVE INVESTORS FUNDS
_______________________________________________________________________________
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
and U.S. Government securities) for the Growth Investors Fund aggregated
$46,377,645 and $47,659,773, respectively, for the six months ended October 31,
1996. There were purchases of $15,457,635 and sales of $13,371,056 of U.S.
Government and government agency obligations for the six months ended October
31, 1996. At October 31, 1996, the cost of securities for federal income tax
purposes for the Growth Investors Fund was $91,559,761. Accordingly gross
unrealized appreciation of investments was $8,873,339 and gross unrealized
depreciation of investments was $3,880,091 resulting in net unrealized
appreciation of $4,993,248 excluding foreign currency.
Purchases and sales of investment securities (excluding short-term investments
and U.S. Government securities) for the Conservative Investors Fund aggregated
$16,111,025 and $15,131,146, respectively, for the six months ended October 31,
1996. There were purchases of $19,417,092 and sales of $25,481,663 of U.S.
Government and government agency obligations for the six months ended October
31, 1996. At October 31, 1996, the cost of securities for federal income tax
purposes for the Conservative Investors Fund was $47,166,002. Accordingly gross
unrealized appreciation of investments was $2,225,570 and gross unrealized
depreciation of investments was $576,248 resulting in net unrealized
appreciation of $1,649,322 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 October 31, 1996, there were
no outstanding forward exchange currency contracts for Growth Investors and
Conservative Investors Funds.
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
---------------------------- ------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
OCT. 31,1996 APRIL 30, OCT. 31,1996 APRIL 30,
(UNAUDITED) 1996 (UNAUDITED) 1996
------------ ------------ -------------- --------------
Shares sold 237,031 623,012 $ 3,310,125 $ 8,468,283
Shares issued in
reinvestment of
dividends and
distributions -0- 118,202 -0- 1,591,818
Shares converted
from Class B 30,356 -0- 423,259 -0-
Shares redeemed (363,023) (404,354) (5,079,513) (5,500,086)
Net increase(decrease) (95,636) 336,860 $(1,346,129) $ 4,560,015
CLASS B
Shares sold 381,757 1,018,816 $ 5,336,709 $13,829,306
Shares issued in
reinvestment of
dividends and
distributions -0- 208,357 -0- 2,814,302
Shares converted
to Class A (30,432) -0- (423,259) -0-
Shares redeemed (358,664) (550,350) (5,012,648) (7,476,785)
Net increase(decrease) (7,339) 676,823 $ (99,198) $ 9,166,823
CLASS C
Shares sold 92,288 186,320 $ 1,288,361 $ 2,552,601
Shares issued in
reinvestment of
dividends and
distributions -0- 19,358 -0- 261,545
Shares redeemed (97,405) (136,951) (1,361,993) (1,839,179)
Net increase(decrease) (5,117) 68,727 $ (73,632) $ 974,967
33
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
ALLIANCE GROWTH INVESTORS AND CONSERVATIVE INVESTORS FUNDS
_______________________________________________________________________________
ALLIANCE CONSERVATIVE INVESTORS FUND
------------------------------------------------------------
SHARES AMOUNT
---------------------------- ------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
OCT. 31,1996 APRIL 30, OCT. 31,1996 APRIL 30,
(UNAUDITED) 1996 (UNAUDITED) 1996
------------ ------------ -------------- --------------
Shares sold 85,537 246,346 $ 947,390 $ 2,737,109
Shares issued in
reinvestment of
dividends 14,275 62,621 158,787 692,313
Shares converted
from Class B 20,433 -0- 234,227 -0-
Shares redeemed (233,657) (589,043) (2,606,810) (6,511,415)
Net decrease (113,412) (280,076) $(1,266,406) $(3,081,993)
CLASS B
Shares sold 225,504 518,473 $ 2,552,960 $ 5,839,933
Shares issued in
reinvestment of
dividends 22,857 102,379 258,130 1,150,234
Shares converted
to Class A (20,730) -0- (234,227) -0-
Shares redeemed (399,581) (697,358) (4,524,148) (7,823,066)
Net decrease (171,950) (76,506) $(1,947,285) $ (832,899)
CLASS C
Shares sold 70,556 170,526 $ 796,166 $ 1,931,267
Shares issued in
reinvestment of
dividends 3,636 16,002 41,092 179,841
Shares redeemed (108,216) (135,782) (1,224,156) (1,522,968)
Net increase(decrease) (34,024) 50,746 $ (386,898) $ 588,140
34
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)
1996 ------------------------------------- TO APRIL 30,
(UNAUDITED) 1996 1995 1994 1993
------------- ----------- ----------- ----------- -------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $14.08 $12.08 $11.61 $11.35 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (c) .10 .10 .25 .12 .20
Net realized and unrealized gain on
investments .29 2.75 .38 .39 1.43
Net increase in net asset value from
operations .39 2.85 .63 .51 1.63
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income -0- (.26) (.15) (.11) (.16)
Distributions from net realized gains -0- (.59) (.01) (.14) (.12)
Total dividends and distributions -0- (.85) (.16) (.25) (.28)
Net asset value, end of period $14.47 $14.08 $12.08 $11.61 $11.35
TOTAL RETURN
Total investment return based on net
asset value (d) 2.77% 23.87% 5.57% 4.46% 16.32%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $30,087 $30,608 $22,189 $16,759 $3,503
Ratios to average net assets of:
Expenses, net of waivers/reimbursements 1.40%(e) 1.40% 1.40% 1.40% 1.40%(e)
Expenses, before waivers/reimbursements 1.68%(e) 1.65% 1.97% 2.33% 4.27%(e)
Net investment income 1.35%(e) 2.02% 2.32% 1.67% 1.91%(e)
Portfolio turnover rate 68% 209% 134% 96% 114%
Average commission rate (f) $.0561 -- -- -- --
</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
-------------------------------------------------------------------
SIX MONTHS
ENDED
OCTOBER 31, YEAR ENDED APRIL 30, MAY 4,1992(a)
1996 ------------------------------------- TO APRIL 30,
(UNAUDITED) 1996 1995 1994 1993
------------- ----------- ----------- ----------- -------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $14.08 $12.09 $11.65 $11.41 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (c) .05 .06 .17 .07 .07
Net realized and unrealized gain on
investments .29 2.70 .38 .37 1.45
Net increase in net asset value from
operations .34 2.76 .55 .44 1.52
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income -0- (.18) (.10) (.06) (.05)
Distributions from net realized gains -0- (.59) (.01) (.14) (.06)
Total dividends and distributions -0- (.77) (.11) (.20) (.11)
Net asset value, end of period $14.42 $14.08 $12.09 $11.65 $11.41
TOTAL RETURN
Total investment return based on net
asset value (d) 2.42% 23.06% 4.83% 3.84% 15.23%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $61,346 $59,978 $43,328 $30,871 $7,999
Ratios to average net assets of:
Expenses, net of waivers/reimbursements 2.10%(e) 2.10% 2.10% 2.11% 2.15%(e)
Expenses, before waivers/reimbursements 2.38%(e) 2.35% 2.67% 3.00% 4.48%(e)
Net investment income .65%(e) 1.15% 1.62% .95% 1.07%(e)
Portfolio turnover rate 68% 209% 134% 96% 114%
Average commission rate (f) $.0561 -- -- -- --
</TABLE>
See footnote summary on page 40.
36
ALLIANCE GROWTH INVESTORS FUND
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD
<TABLE>
<CAPTION>
CLASS C
----------------------------------------------------
SIX MONTHS
ENDED AUGUST 2,
OCTOBER 31, YEAR ENDED APRIL 30, 1993(b)
1996 ------------------------ TO APRIL 30,
(UNAUDITED) 1996 1995 1994
------------- ----------- ----------- ------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $14.09 $12.10 $11.65 $11.88
INCOME FROM INVESTMENT OPERATIONS
Net investment income (c) .05 .06 .18 .08
Net realized and unrealized gain (loss)
on investments .29 2.70 .38 (.11)
Net increase (decrease) in net asset
value from operations .34 2.76 .56 (.03)
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income -0- (.18) (.10) (.06)
Distributions from net realized gains -0- (.59) (.01) (.14)
Total dividends and distributions -0- (.77) (.11) (.20)
Net asset value, end of period $14.43 $14.09 $12.10 $11.65
TOTAL RETURN
Total investment return based on net
asset value (d) 2.41% 23.04% 4.91% (.26)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $5,987 $5,915 $4,247 $3,280
Ratios to average net assets of:
Expenses, net of waivers/reimbursements 2.10%(e) 2.10% 2.10% 2.10%(e)
Expenses, before waivers/reimbursements 2.38%(e) 2.36% 2.66% 3.02%(e)
Net investment income .65%(e) .13% 1.62% 1.04%(e)
Portfolio turnover rate 68% 209% 134% 96%
Average commission rate (f) $.0561 -- -- --
</TABLE>
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
-------------------------------------------------------------------
SIX MONTHS
ENDED
OCTOBER 31, YEAR ENDED APRIL 30, MAY 4,1992(a)
1996 ------------------------------------- TO APRIL 30,
(UNAUDITED) 1996 1995 1994 1993
------------- ----------- ----------- ----------- -------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $11.14 $10.38 $10.37 $10.79 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (c) .21 .51 .48 .31 .39
Net realized and unrealized gain (loss)
on investment .30 .80 (.02) (.26) .82
Net increase in net asset value from
operations .51 1.31 .46 .05 1.21
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.14) (.55) (.45) (.29) (.36)
Distributions from net realized gains -0- -0- -0- (.18) (.06)
Total dividends and distributions (.14) (.55) (.45) (.47) (.42)
Net asset value, end of period $11.51 $11.14 $10.38 $10.37 $10.79
TOTAL RETURN
Total investment return based on net
asset value (d) 4.63% 12.69% 4.65% .35% 12.25%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $13,320 $14,161 $16,105 $15,595 $5,339
Ratios to average net assets of:
Expenses, net of waivers/reimbursements 1.40%(e) 1.40% 1.40% 1.40% 1.40%(e)
Expenses, before waivers/reimbursements 1.89%(e) 1.73% 1.83% 2.03% 3.45%(e)
Net investment income 3.72%(e) 4.43% 4.66% 3.43% 3.92%(e)
Portfolio turnover rate 77% 267% 248% 133% 84%
Average commission rate (f) $.0522 -- -- -- --
</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
-------------------------------------------------------------------
SIX MONTHS
ENDED
OCTOBER 31, YEAR ENDED APRIL 30, MAY 4,1992(a)
1996 ------------------------------------- TO APRIL 30,
(UNAUDITED) 1996 1995 1994 1993
------------- ----------- ----------- ----------- -------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $11.31 $10.51 $10.47 $10.88 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (c) .18 .43 .46 .24 .24
Net realized and unrealized gain (loss)
on investments .29 .82 (.02) (.26) .89
Net increase (decrease) in net asset
value from operations .47 1.25 .44 (.02) 1.13
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.10) (.45) (.40) (.21) (.22)
Distributions from net realized gains -0- -0- -0- (.18) (.03)
Total dividends and distributions (.10) (.45) (.40) (.39) (.25)
Net asset value, end of period $11.68 $11.31 $10.51 $10.47 $10.88
TOTAL RETURN
Total investment return based on net
asset value (d) 4.21% 11.95% 3.91% (.31)% 11.39%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $31,018 $31,979 $30,542 $29,697 $9,210
Ratios to average net assets of:
Expenses, net of waivers/reimbursements 2.10%(e) 2.10% 2.10% 2.11% 2.15%(e)
Expenses, before waivers/reimbursements 2.59%(e) 2.44% 2.52% 2.73% 3.95%(e)
Net investment income 3.03%(e) 3.72% 3.96% 2.72% 3.06%(e)
Portfolio turnover rate 77% 267% 248% 133% 84%
Average commission rate (f) $.0522 -- -- -- --
</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
<TABLE>
<CAPTION>
CLASS C
-----------------------------------------------------
SIX MONTHS
ENDED AUGUST 2,
OCTOBER 31, YEAR ENDED APRIL 30, 1993(B)
1996 ------------------------ TO APRIL 30,
(UNAUDITED) 1996 1995 1994
------------- ----------- ----------- ------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $11.31 $10.52 $10.47 $11.12
INCOME FROM INVESTMENT OPERATIONS
Net investment income (c) .18 .41 .46 .18
Net realized and unrealized gain (loss)
on investments .29 .83 (.01) (.50)
Net increase (decrease) in net asset
value from operations .47 1.24 .45 (.32)
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.10) (.45) (.40) (.15)
Distributions from net realized gains -0- -0- -0- (.18)
Total dividends and distributions (.10) (.45) (.40) (.33)
Net asset value, end of period $11.68 $11.31 $10.52 $10.47
TOTAL RETURN
Total investment return based on net
asset value (d) 4.21% 11.84% 4.01% (2.98)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $5,103 $5,326 $4,419 $4,375
Ratios to average net assets of:
Expenses, net of waivers/reimbursements 2.10%(e) 2.10% 2.10% 2.10%(e)
Expenses, before waivers/reimbursements 2.59%(e) 2.45% 2.52% 2.69%(e)
Net investment income 3.03%(e) 3.71% 3.97% 2.94%(e)
Portfolio turnover rate 77% 267% 248% 133%
Average commission rate (f) $.0522 -- -- --
</TABLE>
(a) Commencement of operations.
(b) Commencement of distribution.
(c) Net of fee waived and expenses reimbursed by Adviser.
(d) 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.
(e) Annualized.
(f) For fiscal years beginning on or after September 1, 1995, a fund is
required to disclose its average commission per share for trades on which
commissions are charged.
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 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.
41
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
42
ALLIANCE GROWTH INVESTORS FUND, INC.
ALLIANCE CONSERVATIVE INVESTORS FUND, INC.
1345 Avenue of the Americas
New York, NY 10105
(800) 221-5672
ALLIANCE CAPITAL
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.
GICISR
