ALLIANCE GROWTH INVESTORS FUND AND ALLIANCE CONSERVATIVE INVESTORS FUND
ANNUAL REPORT
APRIL 30, 1997
ALLIANCE CAPITAL
LETTER TO SHAREHOLDERS ALLIANCE GROWTH INVESTORS AND
CONSERVATIVE INVESTORS FUNDS
_______________________________________________________________________________
May 20, 1997
Dear Shareholder:
We are pleased to review Alliance Growth Investors and Conservative Investors
Funds performance and investment activity for the period ended April 30, 1997.
ECONOMIC OUTLOOK
Throughout 1996, the world economy continued on a course of steady, low
inflation growth--the product of the muted nature of the U.S. business cycle
and the continuing de-synchronization of growth between the major blocs. The
U.S. economy is now in its sixth year of economic expansion, while the Japanese
economy, notwithstanding the strong fiscally induced growth of early 1996,
continued on a low growth path, flirting with recession once again in the
second half of the year. European economies rebounded in mid-year from winter
weakness which was exacerbated by the unusually cold weather. However, by
year-end most European economies had subsided to a lower growth rate. Ongoing
global restructuring, combined with subdued cyclical pressures, kept inflation
rates low throughout the industrialized world.
Global bond markets had a roller-coaster ride in 1996. Yields rose into the
summer, fell in the autumn, and receded again in the beginning of 1997.
Generally, though, long-term interest rates fell over the last six months.
In Europe, yield convergence, reflecting increasing confidence in monetary
union, dominated relative returns. Currency markets reflected the same
underlying trends; relative economic strength saw the U.S. Dollar and the
British Pound rise against the Deutschmark and Yen, while peripheral European
currencies strengthened against core currencies. Notable for its fall from
grace was the Swiss Franc which, reflecting domestic deflation and very low
interest rates, was the weakest major currency.
Equities, in particular large capitalization multinationals, performed very
strongly and equity markets outperformed bonds almost everywhere, with Japan
the sole exception among the major markets.
INVESTMENT RESULTS
Alliance Growth Investors Fund Class A shares posted a 3.81% return at net
asset value for the six month period and a 6.69% return at net asset value for
the twelve month period ended April 30, 1997. Alliance Conservative Investors
Fund Class A shares posted a 3.13% return at net asset value for the six month
period and a 7.90% return at net asset value for the twelve month period ended
April 30, 1997. While Growth Investors Fund did not outperform its benchmarks,
Conservative Investors Fund outperformed the Lehman Brothers (LB) Aggregate
Bond Index.
Both Alliance Growth Investors and Conservative Investors Funds'
underperformance was due to overweighting in small and medium U.S.
capitalization stocks. This occurred in a market which saw one of the largest
performance divergences in history between the large and small capitalization
sectors, with the large cap market performing extremely well and the small cap
market declining. The decision to increase Growth Investors' foreign equity
exposure, which we believe will strongly tend to improve the Fund's performance
over the long-term, had not yet benefited investors at the time of this
writing. Currently, Growth Investors Fund holds approximately 24% of its
portfolio in foreign equities.
Looking forward, we expect the economic environment to support further
outperformance of equities over bonds. World economic activity is rising, but
inflation remains subdued. Therefore, we expect foreign stock markets to begin
to close the performance gap with the U.S. Consequently, we have increased the
overall equity exposure of Growth Investors portfolio with an emphasis on stock
markets outside the U.S.
GROWTH INVESTORS FUND
Investment returns for Alliance Growth Investors Fund for the six and 12 month
periods ending April 30, 1997 are detailed in the following table. For
comparison purposes, we also specified the performance of the broad U.S. stock
market 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 Lehman Brothers (LB) Aggregate Bond
Index (30%).
1
ALLIANCE GROWTH INVESTORS AND
CONSERVATIVE INVESTORS FUNDS
_______________________________________________________________________________
INVESTMENT RESULTS*
Period Ended April 30, 1997
TOTAL RETURN
6 MONTHS 12 MONTHS
-------- ---------
ALLIANCE GROWTH INVESTORS FUND
Class A 3.81% 6.69%
Class B 3.48% 5.98%
Class C 3.48% 5.97%
S&P 500 STOCK INDEX 14.71% 25.12%
70/30 COMPOSITE:
S&P 500 Stock Index/
LB Aggregate Bond Index 10.81% 19.71%
* THE FUND'S TOTAL RETURNS ARE BASED ON THE NET ASSET VALUE OF EACH CLASS OF
SHARES AS OF APRIL 30, 1997. THE S&P 500 STOCK INDEX INCLUDES 500 U.S. STOCKS
AND IS A COMMON MEASURE OF THE PERFORMANCE OF THE OVERALL U.S. STOCK MARKET.
THE LEHMAN BROTHERS (LB) AGGREGATE BOND INDEX IS COMPOSED OF THE
MORTGAGE-BACKED SECURITIES INDEX, THE ASSET-BACKED SECURITIES INDEX AND THE
GOVERNMENT/CORPORATE BOND INDEX. THE 70/30 COMPOSITE IS A 70/30 WEIGHTING OF
BOTH INDICES. THE FUND'S BENCHMARKS ARE UNMANAGED. 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 April 30, 1997 are detailed in the following table. 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%).
INVESTMENT RESULTS*
Period Ended April 30, 1997
TOTAL RETURN
6 MONTHS 12 MONTHS
-------- ---------
ALLIANCE CONSERVATIVE INVESTORS FUND
Class A 3.13% 7.90%
Class B 2.78% 7.10%
Class C 2.77% 7.10%
LB AGGREGATE BOND INDEX 1.70% 7.08%
70/30 COMPOSITE:
LB Aggregate Bond Index/
S&P 500 Stock Index 5.60% 12.49%
* THE FUND'S TOTAL RETURNS ARE BASED ON THE NET ASSET VALUE OF EACH CLASS OF
SHARES AS OF APRIL 30, 1997. THE LEHMAN BROTHERS (LB) AGGREGATE BOND INDEX IS
COMPOSED OF THE MORTGAGE-BACKED SECURITIES INDEX, THE ASSET-BACKED SECURITIES
INDEX AND THE GOVERNMENT/CORPORATE BOND INDEX. THE S&P 500 STOCK INDEX INCLUDES
500 U.S. STOCKS AND IS A COMMON MEASURE OF THE PERFORMANCE OF THE OVERALL U.S.
STOCK MARKET. THE 70/30 COMPOSITE IS A 70/30 WEIGHTING OF BOTH INDICES. THE
FUND'S BENCHMARKS ARE UNMANAGED. ADDITIONAL INVESTMENT RESULTS APPEAR ON PAGE 5.
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
Nicholas D. Carn
Portfolio Manager
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 RETURNS AS OF APRIL 30, 1997
CLASS A SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
------------ ------------
One Year 6.69% 2.19%
Since Inception* 11.16% 10.20%
CLASS B SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
------------ ------------
One Year 5.98% 2.25%
Since Inception* 10.37% 10.37%
CLASS C SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
------------ ------------
One Year 5.97% 5.04%
Since Inception* 8.64% 8.64%
The average annual total returns reflect reinvestment 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 shares (1% year 1). Returns for Class A shares do
not reflect the imposition of the 1 year 1% contingent deferred sales charge
for accounts over $1,000,000.
Past performance does not guarantee future results. Investment return and
principal value will fluctuate so that an investor's shares, when redeemed, may
be worth more or less than their original cost.
* Inception: 5/4/92, Class A and Class B; 8/2/93, Class C.
SHARES OF THE FUND ARE NOT DEPOSITS OR OBLIGATIONS OF, GUARANTEED OR ENDORSED
BY, ANY BANK; FURTHER, SUCH SHARES ARE NOT FEDERALLY INSURED BY THE FEDERAL
DEPOSIT INSURANCE CORPORATION, THE FEDERAL RESERVE BOARD, OR ANY OTHER AGENCY.
SHARES OF THE FUND INVOLVE INVESTMENT RISKS, INCLUDING THE POSSIBLE LOSS OF
PRINCIPAL.
3
ALLIANCE GROWTH INVESTORS FUND
_______________________________________________________________________________
ALLIANCE GROWTH INVESTORS FUND
GROWTH OF A $10,000 INVESTMENT:
5/31/92* TO 4/30/97
{CHART BEGIN}
$21,500
$19,500
$17,500
$15,500
$13,500
$11,500
$9,500
S&P 500: $21,895
70% S&P 500/30%
LB AGGREGATE BOND INDEX: $19,413
GROWTH INVESTORS
FUND CLASS A: $16,099
$10,000
5/31/92
12/31/92
12/31/94
12/31/95
12/31/96
4/30/97
12/31/93
{CHART END}
This chart illustrates the total value of an assumed $10,000 investment in
Alliance Growth Investors Fund Class A shares (from the month end nearest to
the Fund's inception date) as compared to the performance of an appropriate
broad-based index. The chart reflects the deduction of the maximum 4.25% sales
charge from the initial $10,000 investment in the Fund and assumes the
reinvestment of dividends and capital gains. Performance for Class B and Class
C shares will vary from the results shown above due to differences in expenses
charged to those classes. Past performance is not indicative of future results,
and is not representative of future gain or loss in capital value or dividend
income.
The Standard & Poor's 500 Stock Index is an unmanaged index that includes 500
U.S. stocks. It is a common measure of the performance of the overall U.S.
stock market.
The Lehman Brothers Aggregate Bond Index is an unmanaged index composed of the
Mortgage-Backed Securities Index, the Asset-Backed Securities Index and the
Government/Corporate Bond Index.
The comparison shown above represents a 70/30 weighting (70% S&P 500 and 30% LB
Aggregate Bond Index).
When comparing Alliance Growth Investors Fund to the indices shown above, you
should note that no charges or expenses are reflected in the performance of the
indices.
{CHART KEY}
Growth Investors Fund
S&P 500
70% S&P 500/30% LB Aggregate Bond Index
{CHART KEY END}
* Month end nearest to the Fund's inception date of 5/4/92.
4
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 RETURNS AS OF APRIL 30, 1997
CLASS A SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
------------ ------------
One Year 7.90% 3.35%
Since Inception* 7.48% 6.56%
CLASS B SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
------------ ------------
One Year 7.10% 3.10%
Since Inception* 6.72% 6.72%
CLASS C SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
------------ ------------
One Year 7.10% 6.10%
Since Inception* 5.18% 5.18%
The average annual total returns reflect reinvestment 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 shares (1% year 1). Returns for Class A shares do
not reflect the imposition of the 1 year 1% contingent deferred sales charge
for accounts over $1,000,000.
Past performance does not guarantee future results. Investment return and
principal value will fluctuate so that an investor's shares, when redeemed, may
be worth more or less than their original cost.
* Inception: 5/4/92, Class A and Class B; 8/2/93, Class C.
5
ALLIANCE CONSERVATIVE INVESTORS FUND
_______________________________________________________________________________
ALLIANCE CONSERVATIVE INVESTORS FUND
GROWTH OF A $10,000 INVESTMENT:
5/31/92* TO 4/30/97
{CHART BEGINS}
$16,500
$15,500
$14,500
$13,500
$12,500
$11,500
$10,500
$9,500
70% LB AGGREGATE BOND INDEX/30% S&P 500: $16,254
LB AGGREGATE BOND INDEX: $13,997
CONSERVATIVE INVESTORS FUND CLASS A: 13,534
$10,000
5/31/92
12/31/95
12/31/96
12/31/92
12/31/93
12/31/94
4/30/97
{CHART ENDS}
This chart illustrates the total value of an assumed $10,000 investment in
Alliance Conservative Investors Fund Class A shares (from the month end nearest
to the Fund's inception date) as compared to the performance of an appropriate
broad-based index. The chart reflects the deduction of the maximum 4.25% sales
charge from the initial $10,000 investment in the Fund and assumes the
reinvestment of dividends and capital gains. Performance for Class B and Class
C shares will vary from the results shown above due to differences in expenses
charged to those classes. Past performance is not indicative of future results,
and is not representative of future gain or loss in capital value or dividend
income.
The Lehman Brothers Aggregate Bond Index is an unmanaged index composed of the
Mortgage-Backed Securities Index, the Asset-Backed Securities Index and the
Government/Corporate Bond Index.
The Standard & Poor's 500 Stock Index is an unmanaged index that includes 500
U.S. stocks. It is a common measure of the performance of the overall U.S.
stock market.
The comparison shown above represents a 70/30 weighting (70% LB Aggregate Bond
Index and 30% S&P 500).
When comparing Alliance Conservative Investors Fund to the indices shown above,
you should note that no charges or expenses are reflected in the performance of
the indices.
{CHART KEY BEGIN}
Conservative Investors Fund
LB Aggregate Bond Index
70% LB Aggregate Bond Index/30% S&P 500
{CHART KEY END}
* Month end nearest to the Fund's inception date of 5/4/92.
6
TEN LARGEST HOLDINGS
APRIL 30, 1997 ALLIANCE GROWTH INVESTORS FUND
_______________________________________________________________________________
PERCENT OF
COMPANY VALUE NET ASSETS
- -------------------------------------------------------------------------------
U.S. Treasury Notes $ 7,781,899 8.2%
Federal National Mortgage Assn. 2,948,335 3.1
Government National Mortgage Assn. 2,842,764 3.0
U.S. Treasury Bond, 6.625%, 2/15/27 1,962,239 2.1
Intel Corp. 1,352,247 1.4
Merck & Co., Inc. 1,254,330 1.3
Merrill Lynch & Co., Inc. 1,186,815 1.2
Travelers Group, Inc. 1,073,167 1.1
Federal Home Loan Bank, 7.00%, 9/01/11 979,529 1.0
MBNA Corp. 895,950 1.0
$22,277,275 23.4%
MAJOR PORTFOLIO CHANGES
SIX MONTHS ENDED APRIL 30, 1997
_______________________________________________________________________________
SHARES OR PRINCIPAL
----------------------------
HOLDINGS
PURCHASES BOUGHT 4/30/97
- -------------------------------------------------------------------------------
Boston Scientific Corp. 9,331 9,331
Coca-Cola Co. 14,000 14,000
Deutsche Bank Financial, Inc., 6.70%, 12/13/06 $650,000 $650,000
Dime Capital Trust I Ser. A, 9.33%, 5/06/27 $600,000 $600,000
Government National Mortgage Assn.,
7.50%, 1/15/27 $847,963 $847,963
Government National Mortgage Assn.,
8.00%, 1/15/27 $1,975,687 $1,975,687
Ras Laffan Liquefied Natural Gas,
8.294%, 3/15/14 $650,000 $650,000
Texaco, Inc. 6,100 6,100
U.S. Treasury Bond, 6.625%, 2/15/27 $2,045,000 $2,045,000
U.S. Treasury Note, 6.125%, 8/31/98 $3,750,000 $3,750,000
HOLDINGS
SALES SOLD 4/30/97
- -------------------------------------------------------------------------------
AutoZone, Inc. 31,900 -0-
Exxon Corp. 9,000 -0-
Federal National Mortgage Assn.,
8.50%, 12/01/25 $958,129 --0-
Olin Corp. 20,800 -0-
PepsiCo, Inc. 31,200 -0-
Quebec Province Canada, 7.50%, 7/15/23 $850,000 -0-
Republic of Poland PDI, 3.75%, 10/27/14 $925,000 -0-
U.S. Treasury Note, 5.75%, 8/15/03 $1,965,000 $935,000
U.S. Treasury Note, 6.375%, 5/15/99 $1,200,000 $2,000,000
U.S. Treasury Note, 7.25%, 2/15/98 $2,250,000 -0-
7
INDUSTRY DIVERSIFICATION
APRIL 30, 1997 ALLIANCE GROWTH INVESTORS FUND
_______________________________________________________________________________
PERCENT OF
U.S. $ VALUE NET ASSETS
- -------------------------------------------------------------------------------
Basic Industries $ 4,736,730 5.0%
Basic Materials 3,493,088 3.7
Consumer Cyclicals 4,403,666 4.6
Consumer Manufacturing 2,717,034 2.9
Consumer Non-Cyclicals 16,635,315 17.5
Energy 8,415,143 8.8
Finance 13,952,403 14.6
Multi Industry 1,542,942 1.6
Technology 11,929,947 12.5
U.S. Government & Agencies 16,514,766 17.4
Total Investments* 84,341,034 88.6
Cash and receivables, net of liabilities 10,854,171 11.4
Net Assets $95,195,205 100.0%
* Excludes short-term obligations.
8
TEN LARGEST HOLDINGS
APRIL 30, 1997 ALLIANCE CONSERVATIVE INVESTORS FUND
_______________________________________________________________________________
PERCENT OF
COMPANY VALUE NET ASSETS
- -------------------------------------------------------------------------------
U.S. Treasury Notes $10,508,168 23.9%
Federal National Mortgage Assn. 5,238,343 11.9
U.S. Treasury Bond, 6.625%, 2/15/27 3,439,915 7.8
Government National Mortgage Assn., 8.00%, 1/15/27 3,041,347 6.9
Federal Home Loan Bank, 7.00%, 9/01/11 1,539,260 3.5
Premier Auto Trust, 7.15%, 2/04/99 1,507,500 3.4
St. George Bank, Ltd., 7.15%, 10/15/05 982,080 2.2
Erac USA Finance Co., 6.95%, 3/01/04 980,260 2.2
Quebec Province Canada, 7.125%, 2/09/24 872,109 2.0
Deutsche Bank Financial, Inc., 6.70%, 12/13/06 864,279 2.0
$28,973,261 65.8%
MAJOR PORTFOLIO CHANGES
SIX MONTHS ENDED APRIL 30, 1997
_______________________________________________________________________________
SHARES OR PRINCIPAL
----------------------------
HOLDINGS
PURCHASES BOUGHT 4/30/97
- -------------------------------------------------------------------------------
Boston Scientific Corp. 2,835 2,835
Coca-Cola Co. 4,200 4,200
Dayton Hudson Corp. 3,200 3,200
Deutsche Bank Financial, Inc.,
6.70%, 12/13/06 $900,000 $900,000
Erac USA Finance Co., 6.95%, 3/01/04 $1,000,000 $1,000,000
Government National Mortgage Assn.,
8.00%, 1/15/27 $3,001,044 $3,001,044
Texaco, Inc. 1,800 1,800
U.S. Treasury Bond, 6.625%, 2/15/27 $3,585,000 $3,585,000
U.S. Treasury Note, 6.875%, 5/15/06 $1,450,000 $1,450,000
U.S. Treasury Note, 7.875%, 4/15/98 $5,000,000 $5,000,000
HOLDINGS
SALES SOLD 4/30/97
- -------------------------------------------------------------------------------
Auburn Hills Trust, 12.00%, 5/01/20 $700,000 -0-
Federal National Mortgage Assn.,
8.50%, 12/01/25 $958,129 -0-
Government National Mortgage Assn.,
7.50%, 1/15/26 $1,289,412 -0-
John Hancock Mutual Life Insurance Co.,
7.375%, 2/15/24 $1,050,000 -0-
Morgan Stanley Group, Inc., 6.50%, 3/30/01 $1,000,000 -0-
Time Warner Entertainment Co., 9.15%, 2/01/23 $915,000 -0-
U.S. Treasury Note, 5.75%, 8/15/03 $1,750,000 $1,000,000
U.S. Treasury Note, 6.375%, 5/15/99 $950,000 $3,000,000
U.S. Treasury Note, 6.50%, 8/15/05 $2,240,000 -0-
U.S. Treasury Note, 7.75%, 12/31/99 $1,475,000 -0-
9
INDUSTRY DIVERSIFICATION
APRIL 30, 1997 ALLIANCE CONSERVATIVE INVESTORS FUND
_______________________________________________________________________________
PERCENT OF
U.S. $ VALUE NET ASSETS
- -------------------------------------------------------------------------------
Basic Industries $ 875,651 2.0%
Basic Materials 312,880 0.7
Consumer Cyclicals 987,646 2.2
Consumer Manufacturing 561,454 1.3
Consumer Non-Cyclicals 3,447,709 7.8
Energy 1,436,578 3.3
Finance 5,506,800 12.5
Multi Industry 395,885 0.9
Technology 2,797,964 6.3
Transportation 980,260 2.2
U.S. Government & Agencies 23,767,033 54.0
Yankee Bond 872,109 2.0
Total Investments* 41,941,969 95.2
Cash and receivables, net of liabilities 2,104,795 4.8
Net Assets $44,046,764 100.0%
* Excludes short-term obligations.
10
PORTFOLIO OF INVESTMENTS
APRIL 30, 1997 ALLIANCE GROWTH INVESTORS FUND
_______________________________________________________________________________
COMPANY SHARES U.S. $ VALUE
- -------------------------------------------------------------------------
COMMON STOCKS & OTHER INVESTMENTS-68.6%
UNITED STATES INVESTMENTS-45.0%
CONSUMER NONCYCLICALS-11.5%
APPAREL & TEXTILE-0.5%
Reebok International, Ltd. 13,050 $ 499,163
BEVERAGES-0.9%
Coca-Cola Co. 14,000 890,750
BIOTECHNOLOGY-1.3%
Biogen, Inc. (a) 9,450 302,400
Centocor, Inc. (a) 25,323 712,209
GelTex Pharmaceuticals, Inc. (a) 12,400 204,600
Medimmune, Inc. (a) 2,900 37,700
------------
1,256,909
BROADCASTING-0.3%
Tele-Communications, Inc.-
Liberty Media Cl.A (a) 15,850 298,178
COSMETICS-0.5%
Gillette Co. 5,680 482,800
DRUGS, HOSPITAL SUPPLIES &
MEDICAL SERVICES-3.6%
Boston Scientific Corp. (a) 9,331 450,221
Compdent Corp. (a) 1,500 24,188
Jones Medical Industries, Inc. 1,700 59,925
Medtronic, Inc. 6,048 418,824
Merck & Co., Inc. 13,860 1,254,330
National Surgery Centers, Inc. (a) 1,800 54,000
Oxford Health Plans, Inc. (a) 3,500 230,562
PacifiCare Health Systems, Inc. Cl.B (a) 2,450 196,612
Pfizer, Inc. 7,250 696,000
Premier Research Worldwide, Ltd. (a) 800 7,700
Rotech Medical Corp. (a) 2,900 45,675
------------
3,438,037
ENTERTAINMENT & LEISURE-1.5%
Carnival Corp. Cl.A 4,900 180,688
Time Warner, Inc. 10,400 468,000
Walt Disney Co. 9,770 801,140
------------
1,449,828
FOOD-0.8%
Campbell Soup Co. 9,340 477,507
Nabisco Holdings Corp. Cl.A 6,365 244,257
United Natural Foods, Inc. (a) 3,200 49,600
------------
771,364
HOUSEHOLD PRODUCTS-0.7%
Colgate-Palmolive Co. 4,790 531,690
Silgan Holdings, Inc. (a) 4,100 108,650
------------
640,340
PRINTING & PUBLISHING-0.4%
New York Times Co. Cl.A 8,900 384,925
TOBACCO-0.9%
Philip Morris Cos., Inc. 20,400 803,250
MISCELLANEOUS-0.1%
Interim Services, Inc. (a) 1,200 46,500
------------
10,962,044
TECHNOLOGY-9.4%
AEROSPACE & DEFENSE-0.9%
Boeing Co. 2,100 207,113
General Dynamics Corp. 4,500 320,625
United Technologies Corp. 4,800 363,000
------------
890,738
11
PORTFOLIO OF INVESTMENTS (CONTINUED) ALLIANCE GROWTH INVESTORS FUND
_______________________________________________________________________________
COMPANY SHARES U.S. $ VALUE
- -------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT-0.3%
Sterling Commerce, Inc. (a) 1 $ 26
Tellabs, Inc. (a) 7,500 299,062
------------
299,088
COMPUTER HARDWARE-0.5%
COMPAQ Computer Corp. (a) 5,000 426,875
COMPUTER NETWORKING SOFTWARE-1.1%
Cisco Systems, Inc. (a) 15,650 809,888
Netscape Communications Corp. (a) 5,200 140,725
Network General Corp. (a) 1,600 22,000
------------
972,613
COMPUTER PERIPHERALS-0.4%
Seagate Technology, Inc. (a) 8,200 376,175
COMPUTER SERVICES-0.3%
First Data Corp. 9,200 317,400
COMPUTER SOFTWARE-1.6%
3D Labs, Inc., Ltd. (a) 1,700 39,950
HMT Technology Corp. (a) 2,900 31,900
Insight Enterprises, Inc. (a) 1,800 42,750
Microsoft Corp. (a) 4,200 510,300
Oracle Systems Corp. (a) 18,250 725,437
Spectrum Holobyte, Inc. (a) 2,200 13,475
Sterling Software, Inc. (a) 1,600 48,800
Systemsoft Corp. (a) 3,400 25,925
Universal Outdoor Holdings, Inc. (a) 1,700 46,325
------------
1,484,862
ELECTRICAL EQUIPMENT-1.0%
General Electric Co. 8,500 942,437
Harman International Industries, Inc. New 900 34,425
------------
976,862
ELECTRONICS-0.0%
General Instrument Corp. (a) 1 23
Kent Electronics Corp. (a) 1,500 37,500
------------
37,523
MEDICAL PRODUCTS-0.1%
Enterprise Systems, Inc. (a) 2,600 60,450
SEMI-CONDUCTORS & RELATED-2.5%
Altera Corp. (a) 15,522 769,309
Intel Corp. 8,831 1,352,247
National Semiconductor Corp. (a) 2,000 50,000
Teradyne, Inc. (a) 7,500 245,625
------------
2,417,181
TELECOMMUNICATIONS-0.7%
Frontier Corp. 6,500 103,188
Teleport Communications Group, Inc. Cl.A (a) 5,000 142,500
WorldCom, Inc. (a) 19,970 479,280
------------
724,968
------------
8,984,735
FINANCE-9.4%
BANKS-0.9%
Chase Manhattan Corp. 6,500 602,062
First Union Corp. 3,300 277,200
------------
879,262
12
ALLIANCE GROWTH INVESTORS FUND
_______________________________________________________________________________
COMPANY SHARES U.S. $ VALUE
- -------------------------------------------------------------------------
BROKERAGE & MONEY MANAGEMENT-1.3%
Hambrecht & Quist Group, Inc. (a) 2,800 $ 46,550
Merrill Lynch & Co., Inc. 12,460 1,186,815
------------
1,233,365
FINANCIAL SERVICES-2.0%
American Express Co. 10,300 678,512
Beneficial Corp. 6,000 384,000
Dean Witter, Discover & Co. 19,400 742,050
Firstplus Financial Group, Inc. (a) 2,100 46,463
------------
1,851,025
INSURANCE-2.8%
Loews Corp. 3,000 275,625
NAC Re Corp. 14,000 542,500
Penncorp Financial Group, Inc. 10,300 354,063
TIG Holdings, Inc. 14,000 388,500
Travelers Group, Inc. 19,380 1,073,167
------------
2,633,855
MUTUAL FUND-0.1%
Morgan Stanley Asia Pacific Fund 13,334 130,007
REAL ESTATE-0.2%
American General Hospitality Corp. 1,300 32,012
Innkeepers USA Trust 4,300 60,200
JP Realty, Inc. 2,000 50,750
Macerich Co. 1,900 49,400
------------
192,362
MISCELLANEOUS-2.1%
MBNA Corp. 27,150 895,950
MGIC Investment Corp. 8,000 650,000
PMI Group, Inc. 9,600 490,800
------------
2,036,750
------------
8,956,626
ENERGY-5.4%
DOMESTIC PRODUCTS-0.7%
Apache Corp. 11,500 391,000
Brown (Tom), Inc. (a) 7,500 136,875
Murphy Oil Corp. 4,000 174,000
------------
701,875
INTERNATIONAL-0.7%
Texaco, Inc. 6,100 643,550
OIL & GAS SERVICES-3.6%
BJ Services Co. (a) 14,250 671,531
Costilla Energy, Inc. (a) 5,700 68,400
Halliburton Co. 4,500 317,813
KCS Energy, Inc. 2,400 78,000
Nabors Industries, Inc. (a) 26,000 487,500
Noble Drilling Corp. (a) 17,300 300,588
Parker Drilling Co. (a) 12,500 96,875
Rowan Cos, Inc. (a) 4,900 88,200
Schlumberger, Ltd. 3,500 387,625
Transocean Offshore, Inc. 14,500 879,062
------------
3,375,594
UTILITY / ELECTRIC-0.3%
FPL Group, Inc. 6,400 285,600
MISCELLANEOUS-0.1%
Superior Services, Inc. (a) 3,500 77,000
Ultramar Diamond
Shamrock 1,640 52,685
------------
129,685
------------
5,136,304
BASIC INDUSTRIES-3.1%
CONTAINERS-0.3%
Aptargroup, Inc. 200 8,000
Crown Cork & Seal Co., Inc. 4,800 262,800
------------
270,800
13
PORTFOLIO OF INVESTMENTS (CONTINUED) ALLIANCE GROWTH INVESTORS FUND
_______________________________________________________________________________
COMPANY SHARES U.S. $ VALUE
- -------------------------------------------------------------------------
ENVIRONMENTAL CONTROL-1.4%
United States Filter Corp. (a) 2,400 $ 72,900
United Waste Systems, Inc. (a) 2,500 84,375
USA Waste Services, Inc. (a) 14,900 487,975
WMX Technologies, Inc. 24,000 705,000
------------
1,350,250
MACHINERY-0.8%
Allied-Signal, Inc. 8,600 621,350
Comverse Technology, Inc. (a) 3,900 153,075
------------
774,425
MINING & METALS-0.6%
Century Aluminum Co. 4,000 66,000
Gibraltar Steel Corp. (a) 2,900 71,050
Kaiser Aluminum Corp. (a) 29,800 320,350
Olympic Steel, Inc. (a) 800 12,450
Reynolds Metals Co. 400 27,150
Steel Dynamics, Inc. (a) 3,000 58,500
------------
555,500
------------
2,950,975
CONSUMER CYCLICALS-2.8%
AIRLINES-0.3%
Northwest Airlines Corp. Cl.A (a) 6,500 253,500
RAILROAD TRANSPORTATION-0.9%
Genesee & Wyoming, Inc. Cl.A (a) 2,400 68,100
Hub Group, Inc. Cl.A (a) 1,400 37,100
Union Pacific Corp. 11,200 714,000
------------
819,200
RESTAURANTS & LODGING-0.8%
Host Marriott Corp. (a) 21,700 377,038
La Quinta Inns, Inc. 15,550 340,156
------------
717,194
RETAIL -FOOD & DRUGS-0.1%
Rite Aid Corp. 3,000 138,000
RETAIL-GENERAL-0.6%
Circuit City Stores, Inc. (a) 9,450 141,750
Dayton Hudson Corp. 9,700 436,500
Ugly Duckling Corp. (a) 3,000 42,375
------------
620,625
TRANSPORTATION & SHIPPING-0.0%
Knightsbridge Tankers, Ltd. 2,200 50,050
MISCELLANEOUS-0.1%
Equity Corp. International (a) 2,700 58,050
------------
2,656,619
CONSUMER MANUFACTURING-1.6%
APPLIANCES-1.0%
Sunbeam Corp., Inc. 29,200 927,100
AUTO & RELATED-0.6%
Federal Mogul Corp. 9,600 265,200
Republic Waste Industries, Inc. (a) 11,500 285,344
------------
550,544
------------
1,477,644
BASIC MATERIALS-1.4%
CHEMICALS-1.0%
Crompton & Knowles Corp. 6,600 143,550
Cytec Industries, Inc. (a) 6,600 248,325
Freeport McMoran, Inc. 8,000 234,000
Monsanto Co. 5,000 213,750
Polymer Group, Inc. (a) 3,200 40,800
------------
880,425
14
ALLIANCE GROWTH INVESTORS FUND
_______________________________________________________________________________
COMPANY SHARES U.S. $ VALUE
- -------------------------------------------------------------------------
ENGINEERING & CONSTRUCTION-0.4%
Martin Marietta Materials, Inc. 14,600 $ 397,850
------------
1,278,275
MULTI INDUSTRY-0.4%
Corestaff, Inc. (a) 2,800 48,650
Petco Animal Supplies, Inc. (a) 3,100 66,263
U.S. Industries, Inc. (a) 7,300 263,712
------------
378,625
Total United States Investments
(cost $35,380,038) 42,781,847
FOREIGN INVESTMENTS-23.6%
AUSTRALIA-0.3%
Coca Cola Amatil Ltd. 6,042 69,071
Mayne Nickless, Ltd. 5,000 30,999
Qantas Airways, Ltd. 7,000 14,548
WMC, Ltd. 9,281 55,007
Woolworths Ltd. 47,434 139,827
------------
309,452
BELGIUM-0.2%
Delhaize-Le Lion, S.A. 1,150 57,741
Kredietbank, N.V. 300 116,853
------------
174,594
CANADA-0.4%
Cognos, Inc (a) 2,000 50,750
Gulf Canada Resources, Ltd. (a) 29,200 237,250
Philip Environmental, Inc (a) 5,500 86,625
------------
374,625
CHINA-0.1%
Guangshen Railway Ltd. (ADR) (a) 2,000 47,500
DENMARK-0.1%
Den Danske Bank 1,200 103,783
FINLAND-1.1%
Huhtamaki Group 1,510 $ 65,477
Nokia AB OY Corp. pfd. 1,180 73,608
Nokia Corp. Cl.A (ADR) 9,750 630,094
Orion-Yhtmae OY Cl.B 3,010 113,271
Rauma OY 107 2,202
Rautaruukki OY 6,382 55,961
UPM-Kymmene Corp. 2,800 64,072
Valmet Corp. 4,100 69,300
------------
1,073,985
FRANCE-1.9%
Bouygues 1,015 95,126
Cie Bancaire 384 50,661
Generale des Eaux 1,165 162,280
GTM Entrepose, S.A. 815 49,083
Legris Ind., S.A. 1,620 75,497
Michelin 1,740 97,218
Promodes 110 37,110
SEITA 4,000 142,414
SGS-Thomson Microelectronics N.V., Ltd. (a) 650 50,116
Societe Centrale des Assurances
Generales de France 4,890 159,104
Societe Des Immeubles 567 35,750
Societe Francaise d'Invetissements
Immobiliers et de Gestion 500 38,636
Societe Generale 490 54,906
Societe Nacionale Elf Aquitaine 2,670 258,926
Technip, S.A. 950 100,428
Total, S.A. Cl.B 3,594 298,038
Unibail, S.A. 760 73,571
Usinor Sacilor 4,200 63,470
------------
1,842,334
15
PORTFOLIO OF INVESTMENTS (CONTINUED) ALLIANCE GROWTH INVESTORS FUND
_______________________________________________________________________________
COMPANY SHARES U.S. $ VALUE
- -------------------------------------------------------------------------
GERMANY-1.5%
Bayer A.G. 5,270 $ 209,668
Continental A.G. 7,900 173,802
Henkel KGaA pfd. 2,150 116,699
Hornbach Holding A.G. pfd. 1,180 75,632
KSB A.G.-Vorzug pfd. 300 59,072
Merck KG 1,200 47,604
Preussag A.G. 280 71,868
Schmalbach Lubeca A.G. 1,180 258,921
Suedzucker A.G. 142 67,523
Veba A.G. 5,110 263,201
Volkswagen A.G. 120 76,291
------------
1,420,281
HONG KONG-0.3%
Asia Satellite Telephone 2,000 5,073
Citic Pacific, Ltd. 10,000 54,089
Dao Heng Bank Group, Ltd. 4,000 19,002
First Pacific Co., Ltd. 33,208 39,653
Hong Kong & China Gas Co., Ltd. 17,280 27,438
Hysan Development Co., Ltd. 6,000 16,575
New World Development Co., Ltd. 4,000 23,081
Swire Pacific, Ltd. Cl.A 5,000 38,566
Television Broadcasts of Hong Kong, Ltd. 14,000 57,471
Varitronix International, Ltd. 1,000 1,394
Wharf Holdings 7,000 26,477
------------
308,819
INDIA-0.2%
Bajaj Auto, Ltd. (GDR) (b) 2,200 70,950
Industrial Credit & Investment Corp. of
India, Ltd. GDR (b) 2,000 19,800
State Bank of India (GDR) (b) 2,100 50,610
Videsh Sanchar Nigam, Ltd. (a)(b) 1,300 25,669
------------
167,029
INDONESIA-0.1%
Pt Indosat 32,000 88,230
Telekomunikasi Indiana Cl.B 27,000 39,167
------------
127,397
IRELAND-0.3%
Allied Irish Banks 18,000 128,251
Saville Systems Ireland Plc (ADR) (a) 1,200 49,350
Smurfit (Jefferson) Group Plc 23,000 57,003
------------
234,604
ITALY-0.6%
Ente Nazionale Idrocarburi 20,200 102,524
IMI LNV 11,200 95,406
Industrie Natuzzi S.p.A. (ADR) 1,900 42,275
Montedison S.p.A 86,000 56,306
Parmalat Finanziaria S.p.A. 25,160 36,590
Telecom Italia 73,400 193,127
------------
526,228
JAPAN-7.4%
77th Bank 14,000 114,704
Advantest 200 11,108
Amano Corp. 1,000 9,375
Canon, Inc. 10,000 237,129
Credit Saison Co., Ltd. 9,000 173,002
Dai Nippon Printing Co., Ltd. 5,000 90,204
Daiichi Pharmaceutical Co. 9,000 144,641
Daikin Industries, Ltd. 17,000 133,525
Daito Trust Construction Co., Ltd. 16,700 168,401
16
ALLIANCE GROWTH INVESTORS FUND
_______________________________________________________________________________
COMPANY SHARES U.S. $ VALUE
- -------------------------------------------------------------------------
DDI Corp. 41 $ 272,289
East Japan Railway Co. 21 90,826
Fuji Photo Film, Co. 4,000 152,834
Fujitec Co., Ltd. 13,000 132,115
Furukawa Co., Ltd. 26,000 84,595
Hirose Electric Co. 4,000 218,695
Hitachi Chemical 12,000 81,301
Honda Motor Co. 5,000 155,198
Hoya Corp. 5,000 229,251
Ishikawajima-Harima Heavy Industries 20,000 74,526
Japan Tobacco, Inc. 26 165,707
Kamigumi Co., Ltd. 5,000 24,737
Kokuyo 8,000 173,947
Kuraray Co., Ltd. 13,000 114,704
Long-Term Credit Bank of Japan 28,000 75,220
Makita Corp. 11,000 150,786
Matsushita Electric Works 5,000 50,813
Mitsubishi Heavy Industries, Ltd. 16,000 105,629
National House Industrial Co. 5,000 59,085
NGK Insulators 12,000 105,881
NGK Spark Plug Co. 9,000 90,046
Nintendo Corp., Ltd. 1,200 87,730
Nisshin Steel Co., Ltd. 34,000 84,374
Onward Kashiyama Co., Ltd. 9,000 115,571
Pioneer Electronic Corp. 8,000 143,065
Rohm Co. 5,000 387,600
Sankyo Co. 6,000 160,712
Santen Pharmaceutical Co. 2,000 35,924
Sekisui Chemical Co., Ltd. 9,000 86,501
Seven-Eleven Japan Co., Ltd. 4,000 253,673
Shimano Industrial Co. 5,000 84,295
Shiseido Co., Ltd. 8,000 114,704
Sumitomo Electric Industries 5,000 67,751
Sumitomo Rubber Industries 17,000 111,159
Taisho Pharmaceutical Co. 8,000 197,897
Takeda Chemical Industries 4,000 92,331
Takuma Co., Ltd. 8,000 86,974
TDK Corp. 4,000 288,337
Toagosei Co., Ltd. 39,000 145,019
Toda Corp. 29,000 155,355
Tokyo Steel Mfg. 3,000 32,142
Toyoda Automatic Loom Works 8,000 143,696
Toyota Motor Corp. 9,000 260,921
Yamaguchi Bank 8,000 106,511
Yamanouchi Pharmaceutical Co., Ltd. 7,000 149,447
------------
7,081,963
KOREA-0.1%
Korea Electric Power Corp. (ADR) 2,000 34,000
SK Telecom Co., Ltd. (ADR) 6,180 58,710
------------
92,710
LUXEMBOURG-0.1%
Millicom International Cellular, S.A. (a) 1,500 68,250
MALAYSIA-0.2%
AMMB Holdings Berhad 6,000 39,908
Malakoff Berhad 7,000 27,880
Malayan Bank Berhad 4,000 39,828
Resorts World Berhad 16,000 58,945
------------
166,561
NETHERLANDS-1.3%
AKZO Nobel N.V. 1,870 240,913
Fortis Amev N.V. 6,760 255,022
Hunter Douglas N.V. 1,600 130,575
17
PORTFOLIO OF INVESTMENTS (CONTINUED) ALLIANCE GROWTH INVESTORS FUND
_______________________________________________________________________________
COMPANY SHARES U.S. $ VALUE
- -------------------------------------------------------------------------
Internationale Nederlanden Groep N.V. 6,210 $ 243,836
Koninklijke Hoogovens N.V. 2,400 109,634
Koninklijke KNP BT 3,400 67,012
Stork N.V. 1,100 47,370
Vendex International N.V. 2,020 95,904
------------
1,190,266
NEW ZEALAND-0.1%
Fletcher Challenge, Ltd. 12,196 16,825
Lion Nathan, Ltd. 15,000 36,083
Telecom Corp. of New Zealand, Ltd. 12,000 53,823
------------
106,731
NORWAY-0.3%
Bergesen D.Y. AS Cl.A 6,500 134,177
Den Norske Bank 19,000 68,570
Orkla ASA 1,100 92,217
------------
294,964
PHILIPPINES-0.0%
Manila Electric Co. Cl.B 3,900 24,255
Philippine Commercial International Bank 1,000 12,325
------------
36,580
RUSSIA-0.1%
Tatneft (ADR) (a)(b) 600 44,970
SINGAPORE-0.3%
Development Bank of Singapore 1,000 11,883
Overseas Union Banking Corp., Ltd. 8,400 55,129
Overseas- Chinese Banking Corp., Ltd. 6,600 77,057
Singapore Airlines, Ltd. 1,000 8,843
Singapore Press Holdings, Ltd. 5,000 92,573
------------
245,485
SPAIN-0.7%
Banco Bilbao Vizcaya 2,400 161,527
Banco Santander, S.A. 1,200 90,284
Repsol, S.A. 1,980 83,016
Tabacalera, S.A. Series A 2,320 116,472
Telefonica de Espana 7,200 184,426
------------
635,725
SWEDEN-0.3%
AB Astra Series A 4,100 167,769
Sparbanken Sverige AB Cl.A 4,220 75,312
------------
243,081
SWITZERLAND-1.1%
Baloise Holdings, Ltd. 51 107,598
Ciba-Geigy A.G. 2,113 182,044
Holderbank Financiere Glarus A.G. 145 112,825
Nestle, S.A. 93 112,930
Novartis A.G. (ADR) 233 306,957
Schindler Holding A.G.
Chf100 Regd 40 47,487
Participating Certificate 42 50,858
SMH A.G. Neuenburg 420 55,559
Zurich Versicherungsgesellschaft 286 93,904
------------
1,070,162
THAILAND-0.1%
Bangkok Bank Public Co., Ltd. 2,000 18,528
Thai Farmers Bank Co. 10,000 60,484
warrants, expiring 9/15/02 250 182
------------
79,194
UNITED KINGDOM-4.7%
Anglian Water Plc 16,400 181,543
BAA Plc 12,600 104,353
Barclays Plc 3,630 67,481
Bass Plc 10,900 140,622
BG Plc 24,000 69,238
Boots Co. 9,500 106,856
18
ALLIANCE GROWTH INVESTORS FUND
_______________________________________________________________________________
COMPANY SHARES U.S. $ VALUE
- -------------------------------------------------------------------------
BPB Plc 13,200 $ 71,028
British Aerospace 6,370 135,350
British Petroleum Co. Plc 12,980 148,944
British Telecommunications Plc 23,800 174,353
Cable & Wireless 14,100 108,578
Carlton Communications Plc 17,500 143,517
Compass Group Plc 18,200 199,404
Doncasters Plc (ADR) (a) 3,200 72,000
Energy Group (a) 5,622 44,648
General Accident 5,500 78,132
Granada Group Plc 11,000 158,849
Holliday Chemical Holdings Plc 20,600 50,415
Kingfisher Plc 9,800 106,100
Ladbroke Group Plc 57,200 213,225
PowerGen Plc 13,800 144,486
Royal & Sun Alliance Insurance Group Plc 11,150 87,827
Rugby Group Plc 67,750 122,982
Scottish & Newcastle Plc 13,000 140,746
Scottish Power 18,500 112,139
Shell Transportation and Trading Co. 5,190 91,771
Siebe Plc 8,930 132,141
Smithkline Beecham Plc 4,000 322,500
TI Group Plc 14,390 123,376
Tomkins Plc 53,900 232,373
Unilever Plc 2,290 60,164
United Assurance Group Plc 7,790 62,118
United News Media Plc 12,220 149,334
Vodafone Group Plc 24,820 111,026
Whitbread 12,000 149,757
------------
4,417,376
Total Foreign Investments
(cost $21,099,822) 22,484,649
Total Common Stocks & Other Investments
(cost $56,479,860) 65,266,496
------------
PRINCIPAL
AMOUNT
(000) U.S. $ VALUE
- -------------------------------------------------------------------------
U.S. GOVERNMENT & AGENCIES-17.3%
Federal Home Loan Bank
7.00%, 9/01/11 $ 987 $ 979,529
Federal National MortgageAssn.
6.50%, 1/01/11 97 94,737
6.50%, 5/01/11 1,883 1,829,638
7.00%, 5/01/26 1,055 1,023,960
Government National Mortgage Assn.
7.50%, 1/15/27 848 840,544
8.00%, 1/15/27 1,976 2,002,220
U.S. Treasury Bond
6.625%, 2/15/27 2,045 1,962,239
U.S. Treasury Notes
5.75%, 8/15/03 935 892,925
6.125%, 8/31/98 3,750 3,751,162
6.375%, 5/15/99 2,000 2,002,820
6.50%, 8/15/05 845 832,460
6.875%, 5/15/06 300 302,532
Total U.S. Government & Agencies
(cost $16,567,105) 16,514,766
YANKEE BONDS-1.4%
Deutsche Bank Financial, Inc.
6.70%, 12/13/06 650 624,201
Ras Laffan Liquefied Natural Gas
8.294%, 3/15/14 (b) 650 660,780
Total Yankee Bonds
(cost $1,298,046) 1,284,981
CORPORATE DEBT OBLIGATIONS-1.3%
FINANCIAL-1.3%
Dime Capital Trust I Ser. A
9.33%, 5/06/27 600 600,750
19
PORTFOLIO OF INVESTMENTS (CONTINUED) ALLIANCE GROWTH INVESTORS FUND
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) U.S. $ VALUE
- -------------------------------------------------------------------------
Ford Motor Credit Co.
6.125%, 1/09/06 $ 650 $ 599,638
Sumitomo Bank International
.75%, 5/31/01 (c) JPY 9,000 74,403
Total Corporate Debt Obligations
(cost $1,275,746) 1,274,791
SHORT-TERM DEBT SECURITIES-10.4%
Student Loan Marketing Assn.
5.28%, 5/01/97
(amortized cost $9,900,000) $9,900 $ 9,900,000
TOTAL INVESTMENTS -99.0%
(cost $85,520,757) 94,241,034
Other assets less liabilities-1.0% 954,171
NET ASSETS-100% $95,195,205
(a) Non-income producing security.
(b) Securities are exempt from registration under Rule 144A of the Securities
Act of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At April 30, 1997,
these securities amounted to $872,779 or 0.9% of net assets.
(c) Japanese holding.
Glossary of Terms:
ADR - American depository receipt
GDR - Global depository receipt
See notes to financial statements.
20
PORTFOLIO OF INVESTMENTS
APRIL 30, 1997 ALLIANCE CONSERVATIVE INVESTORS FUND
_______________________________________________________________________________
COMPANY SHARES U.S. $ VALUE
- -------------------------------------------------------------------------
COMMON STOCKS & OTHER INVESTMENTS-29.4%
UNITED STATES INVESTMENTS-21.7%
CONSUMER NONCYCLICALS-6.4%
APPAREL & TEXTILE-0.3%
Reebok International, Ltd. 3,984 $ 152,388
BEVERAGES-0.6%
Coca-Cola Co. 4,200 267,225
BIOTECHNOLOGY-0.6%
Biogen, Inc. (a) 2,764 88,448
Centocor, Inc. (a) 3,691 103,809
GelTex Pharmaceuticals, Inc. (a) 3,000 49,500
------------
241,757
COSMETICS-0.3%
Gillette Co. 1,765 150,025
DRUGS, HOSPITAL SUPPLIES &
MEDICAL SERVICES-2.2%
Boston Scientific Corp. (a) 2,835 136,789
Medtronic, Inc. 1,579 109,346
Merck & Co., Inc. 3,200 289,600
Oxford Health Plans, Inc. (a) 1,500 98,812
PacifiCare Health Systems, Inc. Cl.B (a) 1,200 96,300
Pfizer, Inc. 2,300 220,800
------------
951,647
ENTERTAINMENT & LEISURE-0.7%
Carnival Corp. Cl.A 1,400 51,625
Time Warner, Inc. 1,500 67,500
Walt Disney Co. 2,433 199,506
------------
318,631
FOOD-0.5%
Campbell Soup Co. 3,080 157,465
Nabisco Holdings Corp. Cl.A 1,450 55,644
------------
213,109
HOUSEHOLD PRODUCTS-0.4%
Colgate-Palmolive Co. 1,585 175,935
PRINTING & PUBLISHING-0.2%
New York Times Co. Cl.A 2,300 99,475
TOBACCO-0.6%
Philip Morris Cos., Inc. 6,150 242,156
------------
2,812,348
TECHNOLOGY-4.9%
AEROSPACE & DEFENSE-0.5%
Boeing Co. 500 49,312
General Dynamics Corp. 1,000 71,250
United Technologies Corp. 1,400 105,875
------------
226,437
COMMUNICATIONS EQUIPMENT-0.2%
Tellabs, Inc. (a) 1,700 67,788
COMPUTER HARDWARE-0.3%
COMPAQ Computer Corp. (a) 1,550 132,331
COMPUTER NETWORKING SOFTWARE-0.5%
Cisco Systems, Inc. (a) 3,550 183,712
Netscape Communications Corp. (a) 1,550 41,947
------------
225,659
COMPUTER PERIPHERALS-0.1%
Seagate Technology, Inc. (a) 1,200 55,050
21
PORTFOLIO OF INVESTMENTS (CONTINUED) ALLIANCE CONSERVATIVE INVESTORS FUND
_______________________________________________________________________________
COMPANY SHARES U.S. $ VALUE
- -------------------------------------------------------------------------
COMPUTER SERVICES-0.2%
First Data Corp. 2,800 $ 96,600
COMPUTER SOFTWARE-0.7%
Microsoft Corp. (a) 1,200 145,800
Oracle Systems Corp. (a) 4,150 164,963
------------
310,763
ELECTRICAL EQUIPMENT-0.6%
General Electric Co. 2,300 255,012
SEMI-CONDUCTORS & RELATED-1.3%
Altera Corp. (a) 4,453 220,702
Intel Corp. 2,080 318,500
National Semiconductor Corp. (a) 1,000 25,000
Teradyne, Inc. (a) 500 16,375
------------
580,577
TELECOMMUNICATIONS-0.5%
Tele-Communications, Inc.-
Liberty Media Cl.A (a) 4,850 91,241
Teleport Communications
Group, Inc. Cl.A (a) 1,500 42,750
WorldCom, Inc. (a) 3,825 91,800
------------
225,791
------------
2,176,008
FINANCE-3.8%
BANKS-0.4%
Chase Manhattan Corp. 1,100 101,888
First Union Corp. 1,000 84,000
------------
185,888
BROKERAGE & MONEY MANAGEMENT-0.4%
Merrill Lynch & Co., Inc. 1,700 161,925
FINANCIAL SERVICES-1.0%
American Express Co. 3,200 210,800
Dean Witter, Discover & Co. 5,700 218,025
------------
428,825
INSURANCE-1.0%
Penncorp Financial Group, Inc. 3,000 103,125
Travelers Group, Inc. 6,106 338,120
------------
441,245
MISCELLANEOUS-1.0%
MBNA Corp. 8,250 272,250
MGIC Investment Corp. 1,000 81,250
PMI Group, Inc. 1,700 86,912
------------
440,412
------------
1,658,295
ENERGY-2.3%
DOMESTIC PRODUCTS-0.3%
Apache Corp. 2,500 85,000
Brown (Tom), Inc. (a) 1,000 18,250
Murphy Oil Corp. 600 26,100
------------
129,350
INTERNATIONAL-0.4%
Texaco, Inc. 1,800 189,900
OIL & GAS SERVICES-1.4%
BJ Services Co. (a) 3,600 169,650
Halliburton Co. 1,000 70,625
Nabors Industries, Inc. (a) 5,600 105,000
Noble Drilling Corp. (a) 2,200 38,225
Parker Drilling Co. (a) 2,000 15,500
Transocean Offshore, Inc. 3,200 194,000
------------
593,000
UTILITY / ELECTRIC-0.2%
FPL Group, Inc. 2,200 98,175
------------
1,010,425
22
ALLIANCE CONSERVATIVE INVESTORS FUND
_______________________________________________________________________________
COMPANY SHARES U.S. $ VALUE
- -------------------------------------------------------------------------
CONSUMER CYCLICALS-1.4%
AIRLINES-0.2%
Northwest Airlines Corp. Cl.A (a) 2,100 $ 81,900
RAILROAD TRANSPORTATION-0.4%
Union Pacific Corp. 3,200 204,000
RESTAURANTS & LODGING-0.4%
Host Marriott Corp. (a) 3,600 62,550
La Quinta Inns, Inc. 4,850 106,094
------------
168,644
RETAIL-GENERAL-0.4%
Circuit City Stores, Inc. (a) 2,300 34,500
Dayton Hudson Corp. 3,200 144,000
------------
178,500
------------
633,044
BASIC INDUSTRIES-1.4%
CONTAINERS-0.2%
Crown Cork & Seal Co., Inc. 1,300 71,175
ENVIRONMENTAL CONTROL-0.6%
USA Waste Services, Inc. (a) 4,300 140,825
WMX Technologies, Inc. 4,100 120,437
------------
261,262
MACHINERY-0.4%
Allied-Signal, Inc. 2,800 202,300
MINING & METALS-0.2%
Kaiser Aluminum Corp. (a) 8,450 90,837
Reynolds Metals Co. 100 6,788
------------
97,625
------------
632,362
CONSUMER MANUFACTURING-0.9%
APPLIANCES-0.6%
Sunbeam Corp., Inc. 8,300 263,525
AUTO & RELATED-0.3%
Federal Mogul Corp. 2,200 60,775
Republic Waste Industries, Inc. (a) 3,150 78,159
------------
138,934
------------
402,459
MULTI INDUSTRY-0.4%
U.S. Industries, Inc. (a) 5,300 191,463
BASIC MATERIALS-0.2%
CHEMICALS-0.2%
Cytec Industries, Inc. (a) 500 18,813
Freeport McMoran, Inc. 1,500 43,875
------------
62,688
Total United States Investments
(cost $7,844,022) 9,579,092
FOREIGN INVESTMENTS-7.7%
AUSTRALIA-0.0%
Woolworths Ltd. 8,173 24,093
BELGIUM-0.1%
Delhaize-Le Lion S.A. 170 8,536
Kredietbank, N.V. 40 15,580
------------
24,116
CANADA-0.2%
Gulf Canada Resources, Ltd. (a) 8,600 69,875
DENMARK-0.0%
Den Danske Bank 200 17,297
FINLAND-0.1%
Huhtamaki Group 400 17,345
Orion-Yhtymae OY Cl.B 500 18,816
Rautaruukki OY 1,045 9,163
Valmet Corp. 600 10,141
------------
55,465
23
PORTFOLIO OF INVESTMENTS (CONTINUED) ALLIANCE CONSERVATIVE INVESTORS FUND
_______________________________________________________________________________
COMPANY SHARES U.S. $ VALUE
- -------------------------------------------------------------------------
FRANCE-0.6%
Bouygues 20 $ 1,875
Generale des Eaux 247 34,406
GTM Entrepose, S.A. 250 15,056
Michelin 250 13,968
Promodes 20 6,747
SEITA 600 21,362
Societe Centrale des Assurances
Generales de France 700 22,776
Societe Generale 110 12,326
Societe Nacionale Elf Aquitaine 450 43,639
Technip, S.A. 150 15,857
Total, S.A. Cl.B 582 48,263
Usinor Sacilor 1,200 18,134
------------
254,409
GERMANY-0.5%
Adidas A.G. 70 7,296
Bayer A.G. 780 31,032
Continental A.G. 1,200 26,400
Henkel KGaA, pfd. 250 13,570
Hornbach Holding A.G., pfd. 220 14,101
Merck KG 350 13,884
Preussag A.G. 40 10,267
Schmalbach Lubeca A.G. 230 50,468
Veba A.G. 700 36,055
Volkswagen A.G. 30 19,073
------------
222,146
HONG KONG-0.2%
Asia Satellite Telephone 3,000 7,610
Dao Heng Bank Group, Ltd. 7,000 33,254
Hong Kong and China Gas Co., Ltd. 2,160 3,429
Swire Pacific, Ltd., Cl.A 5,000 38,566
Varitronix International, Ltd. 12,000 16,730
------------
99,589
INDIA-0.1%
Bajaj Auto, Ltd. (GDR) (b) 500 $ 16,125
Videsh Sanchar Nigam, Ltd. (a)(b) 500 9,873
------------
25,998
INDONESIA-0.1%
PT Indosat (ADR) 800 22,000
Ramayana Lestari (a) 1,500 3,642
------------
25,642
IRELAND-0.1%
Allied Irish Banks 6,000 42,750
Smurfit (Jefferson) Group Plc. 3,400 8,427
------------
51,177
ITALY-0.2%
IMI LNV 2,000 17,037
Montedison S.p.A. 22,000 14,404
Parmalat Finanziaria S.p.A. 3,790 5,511
Telecom Italia 12,000 31,574
------------
68,526
JAPAN-2.3%
77th Bank 1,000 8,193
Canon, Inc. 5,000 118,565
Credit Saison Co., Ltd. 1,000 19,223
Daiichi Pharmaceutical Co. 1,000 16,071
Daikin Industries, Ltd. 1,000 7,854
Daito Trust Construction Co., Ltd. 1,000 10,084
DDI Corp. 2 13,282
Ezaki Glico Co. 3,300 25,998
Fuji Photo Film, Co. 1,000 38,209
Fujitec Co., Ltd. 2,000 20,325
Furukawa Co., Ltd. 1,000 3,254
Hirose Electric Co. 1,000 54,674
Hitachi Chemical 1,000 6,775
Honda Motor Co. 1,000 31,040
Hoya Corp. 1,000 45,850
24
ALLIANCE CONSERVATIVE INVESTORS FUND
_______________________________________________________________________________
COMPANY SHARES U.S. $ VALUE
- -------------------------------------------------------------------------
Ishikawajima-Harima Heavy Industries 1,000 $ 3,726
Japan Tobacco, Inc. 2 12,747
Kokuyo 1,000 21,743
Kuraray Co., Ltd. 1,000 8,823
Long-Term Credit Bank of Japan 2,000 5,373
Makita Corp. 2,000 27,416
Matsushita Electric Works 2,000 20,325
Mitsubishi Heavy Industries, Ltd. 1,000 6,602
National House Industrial Co. 1,000 11,817
NGK Insulators 1,000 8,823
NGK Spark Plug Co. 1,000 10,005
Onward Kashiyama Co., Ltd. 1,000 12,841
Pioneer Electronic Corp. 1,000 17,883
Rohm Co. 1,000 77,520
Sankyo Co. 1,000 26,785
Sekisui Chemical Co., Ltd. 1,000 9,611
Seven Eleven Japan Co., Ltd. 1,000 63,418
Shimano Industrial, Co. 1,000 16,859
Shiseido Co., Ltd. 2,000 28,676
Sumitomo Electric Industries 2,000 27,101
Sumitomo Rubber Industries 1,000 6,539
Taisho Pharmaceutical Co. 1,000 24,737
Takuma Co., Ltd. 1,000 10,872
TDK Corp. 1,000 72,084
Toagosei Co., Ltd. 2,000 7,437
Toda Corp. 2,000 10,714
Toyoda Automatic Loom Works 1,000 17,962
Toyota Motor Corp. 1,000 28,991
Yamaguchi Bank 1,000 13,314
------------
1,030,141
KOREA-0.1%
SK Telecom Co., Ltd. (ADR) 4,635 44,032
MALAYSIA-0.1%
Berjaya Sports Toto Berhad 7,000 33,455
Resorts World Berhad 9,000 33,157
------------
66,612
NETHERLANDS-0.4%
AKZO Nobel N.V. 300 38,649
Fortis Amev N.V. 1,000 37,725
Hunter Douglas N.V. 200 16,322
Internationale Nederlanden Groep N.V. 1,075 42,210
Koninklijke Hoogovens N.V. 400 18,272
Koninklijke KNP BT 500 9,855
Stork N.V. 200 8,613
Vendex International N.V. 300 14,243
------------
185,889
NEW ZEALAND-0.1%
Telecom Corp. of New Zealand, Ltd. 8,000 35,882
NORWAY-0.1%
Bergesen D.Y. AS Cl.A 950 19,610
Den Norske Bank 4,000 14,436
Orkla ASA 160 13,414
------------
47,460
RUSSIA-0.0%
Tatneft (ADR) (a)(b) 100 7,495
SINGAPORE-0.1%
Overseas-Chinese Banking Corp., Ltd. 2,200 25,686
25
PORTFOLIO OF INVESTMENTS (CONTINUED) ALLIANCE CONSERVATIVE INVESTORS FUND
_______________________________________________________________________________
COMPANY SHARES U.S. $ VALUE
- -------------------------------------------------------------------------
SPAIN-0.2%
Banco Bilbao Vizcaya 350 $ 23,556
Banco Santander, S.A. 200 15,048
Tabacalera, S.A. Series A 350 17,571
Telefonica de Espana 1,100 28,176
------------
84,351
SWEDEN-0.1%
AB Astra Series A 600 24,551
Sparbanken Sverige AB Cl.A 900 16,062
------------
40,613
SWITZERLAND-0.5%
Baloise Holdings, Ltd. 20 42,195
Ciba-Geigy A.G. 308 26,536
Holderbank Fianciere Glarus A.G. 20 15,562
Nestle, S.A. 30 36,429
Novartis A.G. (ADR) 38 50,062
Schindler Holding A.G. 20 23,743
Zurich Versicherungsgesellschaft 60 19,700
------------
214,227
THAILAND-0.0%
Bangkok Bank Public Co., Ltd. 2,000 18,528
UNITED KINGDOM-1.5%
Anglian Water Plc 2,800 30,995
BAA Plc 10,000 82,820
Bass Plc 1,500 19,352
BG Plc 3,500 10,097
Boots Co. 1,500 16,872
British Aerospace 1,000 21,248
British Petroleum Co. Plc 1,800 20,655
British Telecommunications Plc 3,500 25,640
Cable & Wireless 2,000 15,401
Carlton Communications Plc 2,500 20,502
Compass Group Plc 2,900 31,773
Energy Group (a) 1,000 7,942
SHARES OR
PRINCIPAL
AMOUNT
COMPANY (000) U.S. $ VALUE
- -------------------------------------------------------------------------
General Accident 800 $ 11,365
Granada Group Plc 2,000 28,882
Kingfisher Plc 1,500 16,240
Ladbroke Group Plc 5,000 18,639
PowerGen Plc 1,800 18,846
Royal & Sun Alliance Insurance Group Plc 2,000 15,754
Rugby Group Plc 11,840 21,492
Scottish & Newcastle Plc 2,000 21,653
Scottish Power 5,000 30,308
Siebe Plc 1,300 19,237
Tesco Plc 8,000 46,418
Tomkins Plc 8,000 34,489
United Assurance Group
Plc 1,300 10,366
Convertible deferred 8,400 545
United News Media Plc 1,000 12,220
Vodafone Group Plc 3,500 15,656
Whitbread 2,000 24,960
------------
650,367
Total Foreign Investments
(cost $3,261,126) 3,389,616
Total Common Stocks & Other Investments
(cost $11,105,148) 12,968,708
U.S. GOVERNMENT & AGENCIES-54.0%
Federal Home Loan Bank
7.00%, 9/01/11 $ 1,551 1,539,260
Federal National Mortgage Assn.
6.50%, 6/01/11 3,809 3,702,402
7.00%, 5/01/26 1,582 1,535,941
Government National Mortgage Assn.
8.00%, 1/15/27 3,001 3,041,347
U.S. Treasury Bond
6.625%, 2/15/27 3,585 3,439,915
26
ALLIANCE CONSERVATIVE INVESTORS FUND
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) U.S. $ VALUE
- -------------------------------------------------------------------------
U.S. Treasury Notes
5.75%, 8/15/03 $ 1,000 $ 955,000
6.375%, 5/15/99 3,000 3,004,230
6.875%, 5/15/06 1,450 1,462,238
7.875%, 4/15/98 5,000 5,086,700
Total U.S. Government & Agencies
(cost $23,839,922) 23,767,033
YANKEEBONDS-6.2%
Deutsche Bank Financial, Inc.
6.70%, 12/13/06 900 864,279
Quebec Province Canada
7.125%, 2/09/24 (c) 950 872,109
St. George Bank, Ltd.
7.15%, 10/15/05 (b) 1,000 982,080
Total Yankee Bonds
(cost $2,752,625) 2,718,468
CORPORATE DEBT OBLIGATIONS-5.6%
FINANCIAL-3.4%
Premier Auto Trust
7.15%, 2/04/99 1,500 1,507,500
TRANSPORTATION-2.2%
Erac USA Finance Co.
6.95%, 3/01/04 (b) 1,000 980,260
Total Corporate Debt Obligations
(cost $2,494,703) 2,487,760
SHORT-TERM DEBT SECURITIES-4.1%
Student Loan Marketing Assn.
5.28%, 5/01/97
(amortized cost $1,800,000) 1,800 1,800,000
TOTAL INVESTMENTS -99.3%
(cost $41,992,398) 43,741,969
Other assets less liabilities-0.7% 304,795
NET ASSETS-100% $44,046,764
(a) Non-income producing security.
(b) Securities are exempt from registration under Rule 144A of the Securities
Act of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At April 30, 1997,
these securities amounted to $1,995,833 or 4.5% of net assets.
(c) Country of origin--Canada.
Glossary of Terms:
ADR - American depository receipt
GDR - Global depository receipt
See notes to financial statements.
27
STATEMENTS OF ASSETS AND LIABILITIES ALLIANCE GROWTH INVESTORS AND
APRIL 30, 1997 CONSERVATIVE INVESTORS FUNDS
_______________________________________________________________________________
GROWTH CONSERVATIVE
INVESTORS FUND INVESTORS FUND
-------------- --------------
ASSETS
Investments in securities, at value(cost
$85,520,757 and $41,992,398, respectively) $94,241,034 $43,741,969
Cash, at value (cost $315,662 and
$105,434, respectively) 315,602 106,060
Receivable for investment securities
and foreign currency sold 1,276,775 199,651
Interest and dividends receivable 318,469 347,356
Receivable for shares of beneficial
interest sold 211,823 57,677
Total assets 96,363,703 44,452,713
LIABILITIES
Payable for investment securities and
foreign currency purchased 684,178 51,065
Payable for shares of beneficial
interest redeemed 230,137 185,516
Distribution fee payable 61,476 29,402
Advisory fee payable 57,702 11,049
Accrued expenses 135,005 128,917
Total liabilities 1,168,498 405,949
NET ASSETS $95,195,205 $44,046,764
COMPOSITION OF NET ASSETS
Shares of beneficial interest, at par $ 73 $ 39
Additional paid-in capital 86,248,857 41,518,186
Undistributed net investment income 379,445 216,263
Accumulated net realized gain (loss) on
investments and foreign currency transactions (148,332) 564,735
Net unrealized appreciation of
investments and foreign currency
denominated assets and liabilities 8,715,162 1,747,541
$95,195,205 $44,046,764
CALCULATION OF MAXIMUM OFFERING PRICE
CLASS A SHARES
Net asset value and redemption price per share
($27,453,411 / 2,091,931 and $11,859,586 /
1,048,877 shares of beneficial interest
issued and outstanding, respectively) $13.12 $11.31
Sales charge--4.25% of public offering price .58 .50
Maximum offering price $13.70 $11.81
CLASS B SHARES
Net asset value and offering price per share
($61,708,552 / 4,706,967 and $28,037,476 /
2,440,961 shares of beneficial interest
issued and outstanding, respectively) $13.11 $11.49
CLASS C SHARES
Net asset value, and offering price per share
($6,033,242 / 459,830 and $4,149,702 /
361,129 shares of beneficial interest issued
and outstanding, respectively) $13.12 $11.49
See notes to financial statements.
28
STATEMENTS OF OPERATIONS ALLIANCE GROWTH INVESTORS AND
YEAR ENDED APRIL 30, 1997 CONSERVATIVE INVESTORS FUNDS
_______________________________________________________________________________
GROWTH CONSERVATIVE
INVESTORS FUND INVESTORS FUND
-------------- --------------
INVESTMENT INCOME
Interest $ 1,739,186 $ 2,251,317
Dividends (net of foreign tax withheld
of $55,187 and $12,966, respectively) 846,715 204,980
Total income 2,585,901 2,456,297
EXPENSES
Advisory fee 723,109 363,977
Distribution fee - Class A 87,204 39,343
Distribution fee - Class B 613,255 304,539
Distribution fee - Class C 60,207 49,620
Custodian 237,190 137,206
Transfer agency 187,510 90,432
Audit and legal 66,873 67,596
Printing 64,688 30,725
Registration 63,140 47,364
Trustees' fees 30,000 30,000
Amortization of organization expenses 8,520 8,520
Miscellaneous 14,014 9,617
Total expenses 2,155,710 1,178,939
Less: expenses waived and assumed by
adviser (See Note B) (167,543) (245,071)
Less: expense offset arrangement (See Note B) (13,706) (6,533)
Net expenses 1,974,461 927,335
Net investment income 611,440 1,528,962
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY
Net realized gain on investments transactions 3,043,266 608,550
Net realized loss on foreign currency
transactions (58,057) (14,568)
Net change in unrealized appreciation
of investments 2,367,604 1,321,365
Net change in unrealized appreciation
(depreciation) of foreign currency
denominated assets and liabilities (5,822) 41
Net gain on investments 5,346,991 1,915,388
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 5,958,431 $ 3,444,350
See notes to financial statements.
29
STATEMENTS OF CHANGES IN NET ASSETS ALLIANCE GROWTH INVESTORS AND
CONSERVATIVE INVESTORS FUNDS
_______________________________________________________________________________
GROWTH INVESTORS FUND CONSERVATIVE INVESTORS FUND
------------------------- -------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
APR. 30,1997 APR. 30,1996 APR. 30,1997 APR. 30,1996
----------- ----------- ----------- -----------
INCREASE (DECREASE)
IN NET ASSETS FROM
OPERATIONS
Net investment income $ 611,440 $ 1,154,487 $ 1,528,962 $ 2,033,580
Net realized gain
on investments and
foreign currency
transactions 2,985,209 13,079,485 593,982 4,671,618
Net change in
unrealized
appreciation
(depreciation) of
investments and
foreign currency
denominated assets
and liabilities 2,361,782 2,657,978 1,321,406 (793,910)
Net increase in net
assets from
operations 5,958,431 16,891,950 3,444,350 5,911,288
DIVIDENDS AND
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income
Class A (345,352) (510,038) (516,046) (740,336)
Class B (444,447) (687,510) (967,390) (1,250,244)
Class C (43,458) (64,858) (154,474) (194,637)
Net realized gain
on investments
Class A (3,066,309) (1,147,583) (278,463) -0-
Class B (7,140,766) (2,234,313) (644,643) -0-
Class C (698,222) (210,790) (100,968) -0-
TRANSACTIONS IN SHARES
OF BENEFICIAL INTEREST
Net increase
(decrease) 4,473,662 14,701,805 (8,201,003) (3,326,752)
Total increase
(decrease) (1,306,461) 26,738,663 (7,418,637) 399,319
NET ASSETS
Beginning of year 96,501,666 69,763,003 51,465,401 51,066,082
End of year
(including
undistributed net
investment income
of $435,992,
$657,809, $230,831
and $339,779,
respectively) $95,195,205 $96,501,666 $44,046,764 $51,465,401
See notes to financial statements.
30
NOTES TO FINANCIAL STATEMENTS ALLIANCE GROWTH INVESTORS AND
APRIL 30, 1997 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% for purchases not exceeding
$1,000,000. With respect to purchases of $1,000,000 or more, Class A shares
redeemed within one year of purchase will be subject to a contingent deferred
sales charge of 1%. Class B shares are currently 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 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 investment
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 April 30,
1997 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 were amortized on a straight-line basis through April, 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 any, 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.
31
ALLIANCE GROWTH INVESTORS AND
NOTES TO FINANCIAL STATEMENTS (CONTINUED) CONSERVATIVE INVESTORS FUNDS
_______________________________________________________________________________
6. DIVIDENDS AND DISTRIBUTIONS
Dividends and distributions to shareholders are recorded on the ex-dividend
date and are determined in accordance with income tax regulations.
For federal income tax purposes, the Fund's distributions of income and capital
gains are subject to recharacterization, which may include a tax return of
capital, at the end of the year to reflect the final investment results for
that year.
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 Fund's
Class B and Class C shares bear higher distribution and in the case of Class B
higher transfer agent fees. Expenses attributable to a single Fund are charged
to that Fund. Expenses of the Trust are charged to each Fund in proportion to
net assets.
8. RECLASSIFICATION OF COMPONENTS OF NET ASSETS
As of April 30, 1997, the funds reclassified certain components of net assets.
On the Growth Investors Fund the reclassification resulted in a credit to
accumulated undistributed net realized loss and additional paid in capital of
$54,501 and $2,046 respectively, and a debit to accumulated net investment
income of $56,547. On the Conservative Investors Fund, the reclassification
resulted in a credit to accumulated net realized gains and a debit to
accumulated net investment income of $14,568. These reclassifications were the
result of permanent book and tax differences. Net assets on the Funds were not
affected by these changes.
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 "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 Adviser has agreed 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. Effective December 12, 1996, the Adviser has
discontinued the advisory fee waiver on the Growth Investors Fund. Prior to
August 2, 1993, the annual rate for Class B shares was 2.15%. For the year
ended April 30, 1997, such reimbursement amounted to $167,543 and $245,071 for
the Growth Investors and Conservative Investors Funds, respectively.
The Funds have a Transfer Agency 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 to $130,318 and $55,108 for the Growth Investors Fund and
Conservative Investors Fund, respectively, for the year ended April 30, 1997.
In addition, for the year ended April 30, 1997, fund expenses were reduced by
$13,706 and $6,533 for the Growth Investors Fund and the Conservative Investors
Fund, respectively, under expense offset arrangements with Alliance Fund
Services. Transfer Agency fees reported in the statement of operation exclude
these credits.
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 $5,562 from the sale of Class A shares and $73,418
and $2,115 in contingent deferred sales charges imposed upon redemptions by
shareholders of Class B and Class C shares, respectively, for the year ended
April 30, 1997 for the Growth Investors Fund. The Distributor also received
front-end sales charges of $2,911 from the sale of Class A shares and $55,085
and $2,494 in contingent deferred sales charges imposed upon redemptions by
shareholders of Class B and Class C shares, respectively, for the year ended
April 30, 1997 for the Conservative Investors Fund.
Brokerage commissions paid on investment transactions for the year ended April
30, 1997 amounted to $280,483 and $52,669 for the Growth Investors and
Conservative Investors Funds, respectively, of which $50 and $123,
respectively, was paid to Donaldson, Lufkin & Jenrette Securities Corp.
("DLJ"), an affiliate of the Adviser.
32
ALLIANCE GROWTH INVESTORS AND
CONSERVATIVE INVESTORS FUNDS
_______________________________________________________________________________
Accrued expenses includes amounts owed to two of the Trustees under a deferred
compensation plan of $30,782 and $30,305 for the Growth Investors and
Conservative Investors Funds, respectively.
NOTE C: DISTRIBUTION PLANS
The Funds have adopted a Plan for each class of shares of the Funds pursuant to
Rule 12b-1 under the Investment Company Act of 1940 (each a "Plan" and
collectively the "Plans"). Under the Plans, 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 the Class A shares and 1% of the average daily net
assets attributable to Class B and Class C shares. The Trustees currently limit
payments under the Class A plan to .30% of each Fund's average daily net assets
attributable to Class A shares. The Plans provide that the Distributor will use
such payments in their entirety for distribution assistance and promotional
activities.
The Funds are not obligated under the Plans to pay any distribution services
fee in excess of the amounts set forth above. The purpose of the payments to
the Distributor under the Plans is to compensate the Distributor for its
distribution services with respect to the sale of each Fund's shares. Since the
Distributor's compensation is not directly tied to its expenses, the amount of
compensation received by it under the Plan during any year may be more or less
than its actual expenses. For this reason, the Plans are characterized by the
staff of the Commission as "compensation" Plans.
In the event that a Plan is terminated or not continued, (i) no distribution
services fees (other than current amounts accrued but not yet paid) would be
owed by the Funds to the Distributor with respect to the relevant class and
(ii) the Funds would not be obligated to pay the Distributor for any amounts
expended by the Distributor not previously recovered by the Distributor from
distribution services fees in respect of shares of such class or, in the case
of Class B shares, recovered through deferred sales charges.
The Plans 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
$84,090,302 and $95,181,559, respectively, for the year ended April 30, 1997.
There were purchases of $35,222,404 and sales of $31,796,729 of U.S. government
and government agency obligations for the year ended April 30, 1997. At April
30, 1997, the cost of securities for federal income tax purposes for the Growth
Investors Fund was $85,651,184. Accordingly gross unrealized appreciation of
investments was $10,933,505 and gross unrealized depreciation of investments
was $2,343,655 resulting in net unrealized appreciation of $8,589,850 excluding
foreign currency.
Purchases and sales of investment securities (excluding short-term investments
and U.S. government securities) for the Conservative Investors Fund aggregated
$30,883,911 and $37,860,520, respectively, for the year ended April 30, 1997.
There were purchases of $47,476,977 and sales of $48,134,479 of U.S. government
and government agency obligations for the year ended April 30, 1997. At April
30, 1997, the cost of securities for federal income tax purposes for the
Conservative Investors Fund was $42,013,499. Accordingly gross unrealized
appreciation of investments was $2,272,398 and gross unrealized depreciation of
investments was $543,928 resulting in net unrealized appreciation of $1,728,470
excluding foreign currency.
The Alliance Growth Investors and Conservative Investors Funds incurred and
elected to defer post October currency losses of $55,508 and $14,097,
respectively, and capital losses of $117,597 and zero, respectively, for the
year ended April 30, 1997. To the extent that any post October loss is used to
offset future capital gains, it is probable that these gains will not be
distributed to shareholders.
The Growth Investors and Conservative Investors Funds enter into forward
exchange currency contracts in order to hedge exposure to changes in foreign
currency exchange rates on foreign portfolio holdings. A forward
33
ALLIANCE GROWTH INVESTORS AND
NOTES TO FINANCIAL STATEMENTS (CONTINUED) CONSERVATIVE INVESTORS FUNDS
_______________________________________________________________________________
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 Funds. The Fund's custodian will place and maintain cash not available for
investment or other liquid high quality debt securities in a separate account
of the Fund having a value equal to the aggregate amount of the Fund's
commitments under forward exchange currency contracts entered into with respect
to position hedges. Risks may arise from the potential inability of a
counterparty to meet the terms of a contract and from unanticipated movements
in the value of a foreign currency relative to the U.S. dollar. At April 30,
1997, there were no outstanding forward exchange currency contracts for Growth
Investors and Conservative Investors Funds.
NOTE E: SHARES OF BENEFICIAL INTEREST
There is an unlimited number of $0.00001 par value shares of beneficial
interest authorized divided into three classes, designated Class A, Class B and
Class C shares for both Funds. Transactions in shares of beneficial interest
were as follows:
ALLIANCE GROWTH INVESTORS FUND
-----------------------------------------------------------
SHARES AMOUNT
--------------------------- ------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
APRIL 30, APRIL 30, APRIL 30, APRIL 30,
1997 1996 1997 1996
------------ ------------ -------------- --------------
CLASS A
Shares sold 416,498 623,012 $ 5,723,360 $ 8,468,283
Shares issued in
reinvestment of
dividends and
distributions 255,265 118,202 3,305,692 1,591,818
Shares converted
from Class B 88,258 -0- 1,193,716 -0-
Shares redeemed (842,362) (404,354) (11,968,491) (5,500,086)
Net increase
(decrease) (82,341) 336,860 $ (1,745,723) $ 4,560,015
CLASS B
Shares sold 772,493 1,018,816 $ 10,626,034 $13,829,306
Shares issued in
reinvestment of
dividends and
distributions 564,549 208,357 7,322,203 2,814,302
Shares converted
to Class A (88,353) -0- (1,193,716) -0-
Shares redeemed (802,824) (550,350) (11,040,599) (7,476,785)
Net increase 445,865 676,823 $ 5,713,922 $ 9,166,823
CLASS C
Shares sold 187,433 186,320 $ 2,572,550 $ 2,552,601
Shares issued in
reinvestment of
dividends and
distributions 51,785 19,358 672,170 261,545
Shares redeemed (199,231) (136,951) (2,739,257) (1,839,179)
Net increase 39,987 68,727 $ 505,463 $ 974,967
34
ALLIANCE GROWTH INVESTORS AND
CONSERVATIVE INVESTORS FUNDS
_______________________________________________________________________________
ALLIANCE CONSERVATIVE INVESTORS FUND
-----------------------------------------------------------
SHARES AMOUNT
--------------------------- ------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
APRIL 30, APRIL 30, APRIL 30, APRIL 30,
1997 1996 1997 1996
------------ ------------ -------------- --------------
CLASS A
Shares sold 155,230 246,346 $ 1,741,912 $ 2,737,109
Shares issued in
reinvestment of
dividends and
distributions 66,216 62,621 747,524 692,313
Shares converted
from Class B 41,333 -0- 468,493 -0-
Shares redeemed (484,981) (589,043) (5,464,450) (6,511,415)
Net decrease (222,202) (280,076) $(2,506,521) $(3,081,993)
CLASS B
Shares sold 378,962 518,473 $ 4,341,413 $ 5,839,933
Shares issued in
reinvestment of
dividends and
distributions 130,177 102,379 1,495,849 1,150,234
Shares converted
to Class A (40,723) -0- (468,493) -0-
Shares redeemed (856,038) (697,358) (9,795,661) (7,823,066)
Net decrease (387,622) (76,506) $(4,426,892) $ (832,899)
CLASS C
Shares sold 98,699 170,526 $ 1,120,987 $ 1,931,267
Shares issued in
reinvestment of
dividends and
distributions 20,142 16,002 231,457 179,841
Shares redeemed (228,588) (135,782) (2,620,034) (1,522,968)
Net increase(decrease) (109,747) 50,746 $(1,267,590) $ 588,140
35
FINANCIAL HIGHLIGHTS ALLIANCE GROWTH INVESTORS FUND
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD
<TABLE>
<CAPTION>
CLASS A
-----------------------------------------------------------------
MAY 4,
YEAR ENDED APRIL 30, 1992(A)
--------------------------------------------------- TO APRIL 30,
1997 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 (b) .16(c) .10 .25 .12 .20
Net realized and unrealized gain on
investments .76 2.75 .38 .39 1.43
Net increase in net asset value from
operations .92 2.85 .63 .51 1.63
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.19) (.26) (.15) (.11) (.16)
Distributions from net realized gains (1.69) (.59) (.01) (.14) (.12)
Total dividends and distributions (1.88) (.85) (.16) (.25) (.28)
Net asset value, end of period $13.12 $14.08 $12.08 $11.61 $11.35
TOTAL RETURN
Total investment return based on net
asset value (d) 6.69% 23.87% 5.57% 4.46% 16.32%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $27,453 $30,608 $22,189 $16,759 $3,503
Ratios to average net assets of:
Expenses, net of waivers/reimbursements 1.55% 1.40% 1.40% 1.40% 1.40%(f)
Expenses, before waivers/reimbursements 1.73%(e) 1.65% 1.97% 2.33% 4.27%(f)
Net investment income 1.14% 2.02% 2.32% 1.67% 1.91%(f)
Portfolio turnover rate 133% 209% 134% 96% 114%
Average commission rate (g) $.0435 -- -- -- --
</TABLE>
See footnote summary on page 41.
36
ALLIANCE GROWTH INVESTORS FUND
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD
<TABLE>
<CAPTION>
CLASS B
-----------------------------------------------------------------
MAY 4,
YEAR ENDED APRIL 30, 1992(A)
--------------------------------------------------- TO APRIL 30,
1997 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 (b) .06(c) .06 .17 .07 .07
Net realized and unrealized gain on
investments .77 2.70 .38 .37 1.45
Net increase in net asset value from
operations .83 2.76 .55 .44 1.52
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.11) (.18) (.10) (.06) (.05)
Distributions from net realized gains (1.69) (.59) (.01) (.14) (.06)
Total dividends and distributions (1.80) (.77) (.11) (.20) (.11)
Net asset value, end of period $13.11 $14.08 $12.09 $11.65 $11.41
TOTAL RETURN
Total investment return based on net
asset value (d) 5.98% 23.06% 4.83% 3.84% 15.23%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $61,709 $59,978 $43,328 $30,871 $7,999
Ratios to average net assets of:
Expenses, net of waivers/reimbursements 2.26% 2.10% 2.10% 2.11% 2.15%(f)
Expenses, before waivers/reimbursements 2.44%(e) 2.35% 2.67% 3.00% 4.48%(f)
Net investment income .42% 1.15% 1.62% .95% 1.07%(f)
Portfolio turnover rate 133% 209% 134% 96% 114%
Average commission rate (g) $.0435 -- -- -- --
</TABLE>
See footnote summary on page 41.
37
FINANCIAL HIGHLIGHTS (CONTINUED) ALLIANCE GROWTH INVESTORS FUND
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD
<TABLE>
<CAPTION>
CLASS C
----------------------------------------------------
AUGUST 2,
YEAR ENDED APRIL 30, 1993(H)
-------------------------------------- TO APRIL 30,
1997 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 (b) .06(c) .06 .18 .08
Net realized and unrealized gain (loss)
on investments .77 2.70 .38 (.11)
Net increase (decrease) in net asset
value from operations .83 2.76 .56 (.03)
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.11) (.18) (.10) (.06)
Distributions from net realized gains (1.69) (.59) (.01) (.14)
Total dividends and distributions (1.80) (.77) (.11) (.20)
Net asset value, end of period $13.12 $14.09 $12.10 $11.65
TOTAL RETURN
Total investment return based on net
asset value (d) 5.97% 23.04% 4.91% (.26)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $6,033 $5,915 $4,247 $3,280
Ratios to average net assets of:
Expenses, net of waivers/reimbursements 2.26% 2.10% 2.10% 2.10%(f)
Expenses, before waivers/reimbursements 2.43%(e) 2.36% 2.66% 3.02%(f)
Net investment income .42% 1.15% 1.62% 1.04%(f)
Portfolio turnover rate 133% 209% 134% 96%
Average commission rate (g) $.0435 -- -- --
</TABLE>
See footnote summary on page 41.
38
ALLIANCE CONSERVATIVE INVESTORS FUND
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD
<TABLE>
<CAPTION>
CLASS A
-----------------------------------------------------------------
MAY 4,
YEAR ENDED APRIL 30, 1992(A)
--------------------------------------------------- TO APRIL 30,
1997 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 (b) .41(c) .51 .48 .31 .39
Net realized and unrealized gain (loss)
on investment .46 .80 (.02) (.26) .82
Net increase in net asset value
from operations .87 1.31 .46 .05 1.21
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.45) (.55) (.45) (.29) (.36)
Distributions from net realized gains (.25) -0- -0- (.18) (.06)
Total dividends and distributions (.70) (.55) (.45) (.47) (.42)
Net asset value, end of period $11.31 $11.14 $10.38 $10.37 $10.79
TOTAL RETURN
Total investment return based on net
asset value (d) 7.90% 12.69% 4.65% .35% 12.25%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $11,860 $14,161 $16,105 $15,595 $5,339
Ratios to average net assets of:
Expenses, net of waivers/reimbursements 1.40% 1.40% 1.40% 1.40% 1.40%(f)
Expenses, before waivers/reimbursements 1.90%(e) 1.73% 1.83% 2.03% 3.45%(f)
Net investment income 3.66% 4.43% 4.66% 3.43% 3.92%(f)
Portfolio turnover rate 174% 267% 248% 133% 84%
Average commission rate (g) $.0428 -- -- -- --
</TABLE>
See footnote summary on page 41.
39
FINANCIAL HIGHLIGHTS (CONTINUED) ALLIANCE CONSERVATIVE INVESTORS FUND
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD
<TABLE>
<CAPTION>
CLASS B
-----------------------------------------------------------------
MAY 4,
YEAR ENDED APRIL 30, 1992(A)
--------------------------------------------------- TO APRIL 30,
1997 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 (b) .34(c) .43 .46 .24 .24
Net realized and unrealized gain
(loss) on investments .46 .82 (.02) (.26) .89
Net increase (decrease) in net asset
value from operations .80 1.25 .44 (.02) 1.13
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.37) (.45) (.40) (.21) (.22)
Distributions from net realized gains (.25) -0- -0- (.18) (.03)
Total dividends and distributions (.62) (.45) (.40) (.39) (.25)
Net asset value, end of period $11.49 $11.31 $10.51 $10.47 $10.88
TOTAL RETURN
Total investment return based on
net asset value (d) 7.10% 11.95% 3.91% (.31)% 11.39%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $28,037 $31,979 $30,542 $29,697 $9,210
Ratios to average net assets of:
Expenses, net of waivers/reimbursements 2.10% 2.10% 2.10% 2.11% 2.15%(f)
Expenses, before waivers/reimbursements 2.61%(e) 2.44% 2.52% 2.73% 3.95%(f)
Net investment income 2.96% 3.72% 3.96% 2.72% 3.06%(f)
Portfolio turnover rate 174% 267% 248% 133% 84%
Average commission rate (g) $.0428 -- -- -- --
</TABLE>
See footnote summary on page 41.
40
ALLIANCE CONSERVATIVE INVESTORS FUND
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD
<TABLE>
<CAPTION>
CLASS C
----------------------------------------------------
AUGUST 2,
YEAR ENDED APRIL 30, 1993(H)
-------------------------------------- TO APRIL 30,
1997 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 (b) .34(c) .41 .46 .18
Net realized and unrealized gain (loss)
on investments .46 .83 (.01) (.50)
Net increase (decrease) in net asset
value from operations .80 1.24 .45 (.32)
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.37) (.45) (.40) (.15)
Distributions from net realized gains (.25) -0- -0- (.18)
Total dividends and distributions (.62) (.45) (.40) (.33)
Net asset value, end of period $11.49 $11.31 $10.52 $10.47
TOTAL RETURN
Total investment return based on
net asset value (d) 7.10% 11.84% 4.01% (2.98)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $4,150 $5,326 $4,419 $4,375
Ratios to average net assets of:
Expenses, net of waivers/reimbursements 2.10% 2.10% 2.10% 2.10%(f)
Expenses, before waivers/reimbursements 2.60%(e) 2.45% 2.52% 2.69%(f)
Net investment income 2.96% 3.71% 3.97% 2.94%(f)
Portfolio turnover rate 174% 267% 248% 133%
Average commission rate (g) $.0428 -- -- --
</TABLE>
(a) Commencement of operations.
(b) Net of fees waived and expenses reimbursed by Adviser and expense offset
arrangements with the transfer agent.
(c) Based on average shares outstanding.
(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) For the year ended April 30, 1997, the Growth Investors Fund and the
Conservative Investors Fund benefited from an expense offset arrangement with
the transfer agent. Had such expense offsets not been in effect, the ratios of
expenses before waiver/reimbursements to average net assets would have been
1.74%, 2.45% and 2.45% for Class A, B, and C shares of the Growth Investors
Funds, respectively, and 1.91%, 2.62% and 2.61% for Class A, B and C shares of
the Conservative Investors Fund, respectively.
(f) Annualized.
(g) 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.
(h) 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.
41
ALLIANCE GROWTH INVESTORS AND
REPORT OF INDEPENDENT ACCOUNTANTS CONSERVATIVE INVESTORS FUNDS
_______________________________________________________________________________
TO THE BOARD OF TRUSTEES AND SHAREHOLDERS OF ALLIANCE GROWTH INVESTORS FUND AND
ALLIANCE CONSERVATIVE INVESTORS FUND
In our opinion, the accompanying statements of assets and liabilities,
including the portfolios of investments, and the related statements of
operations and of changes in net assets and the financial highlights present
fairly, in all material respects, the financial position of Alliance Growth
Investors Fund and Alliance Conservative Investors Fund (separately managed
portfolios constituting part of The Alliance Portfolios, hereafter referred to
as the "Funds") at April 30, 1997, the results of each of their operations for
the year then ended, the changes in each of their net assets for each of the
two years in the period then ended and the financial highlights for each of the
periods presented, in conformity with generally accepted accounting principles.
These financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Funds' management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement
presentation. We believe that our audits, which included confirmation of
securities at April 30, 1997 by correspondence with the custodian and brokers
and the application of alternative auditing procedures where confirmations from
brokers were not received, provide a reasonable basis for the opinion expressed
above.
PRICE WATERHOUSE LLP
New York, New York
June 16, 1997
42
ALLIANCE GROWTH INVESTORS AND
CONSERVATIVE INVESTORS FUNDS
_______________________________________________________________________________
BOARD OF TRUSTEES
JOHN D. CARIFA, CHAIRMAN AND PRESIDENT
RUTH BLOCK (1)
RICHARD W. COUPER (1)
WILLIAM H. FOULK, JR.
BRENTON W. HARRIES (1)
DONALD J. ROBINSON (1)
OFFICERS
BRUCE CALVERT, VICE PRESIDENT
KATHLEEN A. CORBET, VICE PRESIDENT
WAYNE D. LYSKI, VICE PRESIDENT
EDMUND P. BERGAN, JR., CLERK
MARK D. GERSTEN, TREASURER & CHIEF FINANCIAL OFFICER
NICHOLAS D. CARN, ASSISTANT TREASURER
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.
43
ALLIANCE GROWTH INVESTORS FUND
ALLIANCE CONSERVATIVE INVESTORS FUND
1345 Avenue of the Americas
New York, NY 10105
(800) 221-5672
ALLIANCE CAPITAL
THIS REPORT IS INTENDED SOLELY FOR DISTRIBUTION TO CURRENT SHAREHOLDERS OF THE
FUND.
R THESE REGISTERED SERVICE MARKS USED UNDER LICENSE FROM THE OWNER,
ALLIANCE CAPITAL MANAGEMENT L.P.
GICIAR
