ALLIANCE GROWTH INVESTORS FUND AND ALLIANCE CONSERVATIVE INVESTORS FUND
SEMI-ANNUAL REPORT
OCTOBER 31, 1997
ALLIANCE CAPITAL
LETTER TO SHAREHOLDERS
ALLIANCE GROWTH INVESTORS AND
CONSERVATIVE INVESTORS FUNDS
_______________________________________________________________________________
November 21, 1997
Dear Shareholder:
We are pleased to review Alliance Growth Investors and Conservative Investors
Funds performance and investment activity for the period ended October 31, 1997.
ECONOMIC ENVIRONMENT
World economic activity continued to expand over the last six months, led in
most regions by strong export performance. Although the summer months saw a
recovery in consumer demand in the United States and the United Kingdom,
Japanese consumption decreased as a result of a rise in the consumption tax.
During the period under review, inflation remained very subdued on a global
basis. Global bond rates trended gently downwards in spite of hikes in
administered rates in most European countries.
Trends in major currencies continued to be driven by relative growth rates and
interest rate expectations. Higher activity in Germany, combined with the move
to normalize interest rates, saw the deutschmark rise sharply against the U.S.
dollar while the sterling continued to be buoyed by rising short-term rates. In
contrast, the Japanese yen was weaker as domestic demand decreased.
Over the last six months, stock markets achieved mixed results. Hit by a wave
of currency crises, smaller Asian markets plunged. In some cases, they fell to
10 year lows, losing more than 70% of their value in U.S. dollar terms compared
to the beginning of 1997.
INVESTMENT RESULTS
Alliance Growth Investors Fund Class A shares posted a 13.11% return at net
asset value (NAV) over the six month period ending October 31, 1997 and a
17.42% return at NAV for the 12 month period. Alliance Conservative Investors
Fund Class A shares returned a 9.50% at NAV for the six month period and 12.92%
for the 12 month period ending October 31, 1997.
Both Funds' Class A shares were at or above their composite benchmarks for the
six month period, although they both continue to lag these benchmarks for the
12 month period. An improved contribution from U.S. stock selection, and a
timely decision to shift assets from stocks to bonds in the summer, positively
impacted six month returns. The Funds' Class A shares underperformance for the
12 month period was primarily due to their exposure to smaller U.S. companies
which significantly underperformed prior to the spring of this year.
GROWTH INVESTORS FUND
Investment returns for Alliance Growth Investors Fund for the six and 12 month
periods ending October 31, 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%).
INVESTMENT RESULTS*
Period Ended October 31, 1997
TOTAL RETURN
6 MONTHS 12 MONTHS
----------- -----------
ALLIANCE GROWTH INVESTORS FUND
Class A 13.11% 17.42%
Class B 12.74% 16.66%
Class C 12.73% 16.65%
S&P 500 STOCK INDEX 15.16% 32.10%
70/30 COMPOSITE:
S&P 500 Stock Index/LB Aggregate
Bond Index 12.73% 25.14%
* THE FUND'S TOTAL RETURNS ARE BASED ON THE NET ASSET VALUE OF EACH CLASS OF
SHARES AS OF OCTOBER 31, 1997. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE
RESULTS.
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. AN INVESTOR CANNOT INVEST DIRECTLY IN THE INDICES.
ADDITIONAL INVESTMENT RESULTS APPEAR ON PAGE 3.
1
ALLIANCE GROWTH INVESTORS AND
CONSERVATIVE INVESTORS FUNDS
_______________________________________________________________________________
CONSERVATIVE INVESTORS FUND
Investment returns for Alliance Conservative Investors Fund for the six and 12
month periods ending October 31, 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 October 31, 1997
TOTAL RETURN
6 MONTHS 12 MONTHS
----------- -----------
ALLIANCE CONSERVATIVE INVESTORS FUND
Class A 9.50% 12.92%
Class B 9.10% 12.12%
Class C 9.18% 12.21%
LB AGGREGATE BOND INDEX 7.07% 8.89%
70/30 COMPOSITE:
LB Aggregate Bond Index/S&P 500
Stock Index 9.50% 15.85%
* THE FUND'S TOTAL RETURNS ARE BASED ON THE NET ASSET VALUE OF EACH CLASS OF
SHARES AS OF OCTOBER 31, 1997. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE
RESULTS.
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. AN INVESTOR CANNOT INVEST DIRECTLY IN THE INDICES.
ADDITIONAL INVESTMENT RESULTS APPEAR ON PAGE 4.
We appreciate your investment in Alliance's asset allocation funds and look
forward to reporting their progress to you in the coming period.
Sincerely,
John D. Carifa
Chairman and President
Nicholas D. Carn
Portfolio Manager
SHARES OF THE FUND ARE NOT DEPOSITS OR OBLIGATIONS OF, GUARANTEED OR ENDORSED
BY, ANY BANK; FURTHER, SUCH SHARES ARE NOT FEDERALLY INSURED BY THE FEDERAL
DEPOSIT INSURANCE CORPORATION, THE FEDERAL RESERVE BOARD, OR ANY OTHER AGENCY.
SHARES OF THE FUND INVOLVE INVESTMENT RISKS, INCLUDING THE POSSIBLE LOSS OF
PRINCIPAL.
2
INVESTMENT OBJECTIVE AND POLICIES ALLIANCE GROWTH INVESTORS FUND
_______________________________________________________________________________
Alliance Growth Investors Fund seeks to provide highest total return with
reasonable risk through investment in a mix of equity and fixed income
securities. Normally the Fund will hold approximately 70% of its total assets
in equity securities.
INVESTMENT RESULTS
AVERAGE ANNUAL TOTAL RETURNS AS OF OCTOBER 31, 1997
CLASS A SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
------------ ------------
One Year 17.42% 12.45%
Five Years 12.27% 11.29%
Since Inception* 12.59% 11.71%
CLASS B SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
------------ ------------
One Year 16.66% 12.66%
Five Years 11.48% 11.48%
Since Inception* 11.79% 11.79%
CLASS C SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
------------ ------------
One Year 16.65% 15.65%
Since Inception* 10.66% 10.66%
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.
3
INVESTMENT OBJECTIVE AND POLICIES ALLIANCE CONSERVATIVE INVESTORS FUND
_______________________________________________________________________________
Alliance Conservative Investors Fund seeks to provide high total return without
undue risk to principal through investment in a mix of equity and fixed income
securities. Normally the Fund will hold approximately 70% of its total assets
in fixed income securities.
INVESTMENT RESULTS
AVERAGE ANNUAL TOTAL RETURNS AS OF OCTOBER 31, 1997
CLASS A SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
------------ ------------
One Year 12.92% 8.13%
Five Years 8.31% 7.37%
Since Inception* 8.56% 7.71%
CLASS B SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
------------ ------------
One Year 12.12% 8.12%
Five Years 7.53% 7.53%
Since Inception* 7.79% 7.79%
CLASS C SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
------------ ------------
One Year 12.21% 11.21%
Since Inception* 6.74% 6.74%
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.
4
TEN LARGEST HOLDINGS
OCTOBER 31, 1997 (UNAUDITED) ALLIANCE GROWTH INVESTORS FUND
_______________________________________________________________________________
PERCENT OF
COMPANY VALUE NET ASSETS
- -------------------------------------------------------------------------------
U.S. Treasury Notes $ 9,491,888 9.2%
Federal National Mortgage Assn. 2,886,897 2.8
Merck & Co., Inc. 2,677,500 2.6
Philip Morris Cos., Inc. 1,981,250 1.9
Halliburton Co. 1,848,375 1.8
Schering-Plough Corp. 1,794,000 1.7
Chase Manhattan Corp. 1,730,625 1.7
Texaco, Inc. 1,708,125 1.6
Walt Disney Co. 1,645,000 1.6
Cisco Systems, Inc. 1,640,625 1.6
$27,404,285 26.5%
MAJOR PORTFOLIO CHANGES
SIX MONTHS ENDED OCTOBER 31, 1997
_______________________________________________________________________________
SHARES OR PRINCIPAL
- -------------------------------------------------------------------------------
HOLDINGS
PURCHASES BOUGHT 10/31/97
- -------------------------------------------------------------------------------
American International Group, Inc. 12,000 12,000
Harley-Davidson, Inc. 40,000 40,000
Lucent Technologies, Inc. 15,000 15,000
Merck & Co., Inc. 16,140 30,000
Nokia AB OY Corp. Series A pfd. 13,820 15,000
Philip Morris Cos., Inc. 29,600 50,000
Schering-Plough Corp. 32,000 32,000
U.S. Treasury Note, 6.00%, 8/15/00 $1,150,000 $1,150,000
U.S. Treasury Note, 6.50%, 8/31/01 $2,175,000 $2,175,000
U.S. Treasury Note, 6.50%, 5/31/02 $1,790,000 $1,790,000
HOLDINGS
SALES SOLD 10/31/97
- -------------------------------------------------------------------------------
Centocor, Inc. 25,323 -0-
General Electric Co. 8,500 -0-
Government National Mortgage Assn.,
7.50%, 1/15/27 $847,963 -0-
Government National Mortgage Assn.,
8.00%, 1/15/27 $1,975,687 -0-
MGIC Investment Corp. 8,000 -0-
Nabors Industries, Inc. 26,000 -0-
Pfizer, Inc. 7,250 -0-
U.S. Treasury Note, 5.75%, 8/15/03 $935,000 -0-
U.S. Treasury Note, 6.125%, 8/31/98 $3,750,000 -0-
U.S. Treasury Note, 6.50%, 8/15/05 $845,000 -0-
5
INDUSTRY DIVERSIFICATION
OCTOBER 31, 1997 (UNAUDITED) ALLIANCE GROWTH INVESTORS FUND
_______________________________________________________________________________
PERCENT OF
U.S. $ VALUE NET ASSETS
- -------------------------------------------------------------------------------
Basic Industries $ 2,043,421 2.0%
Capital Goods 1,922,471 1.9
Consumer Manufacturing 4,819,223 4.7
Consumer Services 9,117,054 8.8
Consumer Staples 8,948,539 8.7
Energy 9,427,636 9.1
Finance 16,570,119 16.0
Healthcare 10,253,819 9.9
Multi Industry 2,806,213 2.7
Technology 11,018,906 10.7
Transportation 190,042 0.2
Utilities 1,805,990 1.7
Corporate Debt Obligations 2,765,897 2.7
U.S. Government & Agencies 14,773,873 14.3
Yankee Bonds 2,575,909 2.5
Total Investments* 99,039,112 95.9
Cash and receivables, net of liabilities 4,243,004 4.1
Net Assets $103,282,116 100.0%
* Excludes short-term obligations.
6
TEN LARGEST HOLDINGS
OCTOBER 31, 1997 (UNAUDITED) ALLIANCE CONSERVATIVE INVESTORS FUND
_______________________________________________________________________________
PERCENT OF
COMPANY VALUE NET ASSETS
- -------------------------------------------------------------------------------
U.S. Treasury Notes $10,341,208 23.3%
Federal National Mortgage Assn. 5,129,010 11.5
U.S. Treasury Bond, 6.625%, 2/15/27 1,691,194 3.8
Federal Home Loan Bank, 7.00%, 9/01/11 1,481,013 3.3
Comcast Cable Communications, 8.375%, 5/01/07 1,205,259 2.7
Goldman Sachs Group LP, 7.20%, 11/01/06 1,050,670 2.4
Royal Caribbean Cruises, Ltd., 7.50%, 10/15/271,036,434 2.3
St. George Bank, Ltd., 7.15%, 10/15/05 1,033,090 2.3
Long Islands Savings Bank, 7.00%, 6/13/02 1,022,970 2.3
Erac USA Finance Co., 6.95%, 3/01/04 1,021,917 2.3
$25,012,765 56.2%
MAJOR PORTFOLIO CHANGES
SIX MONTHS ENDED OCTOBER 31, 1997
_______________________________________________________________________________
SHARES OR PRINCIPAL
- -------------------------------------------------------------------------------
HOLDINGS
PURCHASES BOUGHT 10/31/97
- -------------------------------------------------------------------------------
Comcast Cable Communications,
8.375%, 5/01/07 $1,100,000 $1,100,000
Goldman Sachs Group LP, 7.20%, 11/01/06 $1,000,000 $1,000,000
Long Island Savings Bank, 7.00%, 6/13/02 $1,000,000 $1,000,000
Royal Caribbean Cruises, Ltd.,
7.50%, 10/15/27 $1,050,000 $1,050,000
Time Warner Entertainment Co.,
8.375%, 3/15/23 $900,000 $900,000
U.S. Treasury Note, 6.00%, 8/15/00 $1,625,000 $1,625,000
U.S. Treasury Note, 6.25%, 4/30/01 $925,000 $925,000
U.S. Treasury Note, 6.375%, 5/15/99 $575,000 $3,575,000
U.S. Treasury Note, 6.50%, 8/31/01 $1,725,000 $1,725,000
U.S. Treasury Note, 6.50%, 5/31/02 $2,315,000 $2,315,000
HOLDINGS
SALES SOLD 10/31/97
- -------------------------------------------------------------------------------
Allied-Signal, Inc. 2,800 -0-
Colgate-Palmolive Co. 1,585 -0-
General Electric Co. 2,300 -0-
Government National Mortgage Assn.,
8.00%, 1/15/27 $3,001,044 -0-
Pfizer, Inc. 2,300 -0-
Premier Auto Trust, 7.15%, 2/04/99 $927,813 $572,187
U.S. Treasury Bond, 6.625%, 2/15/27 $1,990,000 $1,595,000
U.S. Treasury Note, 5.75%, 8/15/03 $1,000,000 -0-
U.S. Treasury Note, 6.875%, 5/15/06 $1,450,000 -0-
U.S. Treasury Note, 7.875%, 4/15/98 $5,000,000 -0-
7
INDUSTRY DIVERSIFICATION
OCTOBER 31, 1997 (UNAUDITED) ALLIANCE CONSERVATIVE INVESTORS FUND
_______________________________________________________________________________
PERCENT OF
U.S. $ VALUE NET ASSETS
- -------------------------------------------------------------------------------
Basic Industries $ 365,448 0.8%
Capital Goods 401,052 0.9
Consumer Manufacturing 914,980 2.1
Consumer Services 1,758,878 4.0
Consumer Staples 1,679,036 3.8
Energy 1,687,024 3.8
Finance 3,187,801 7.1
Healthcare 1,784,784 4.0
Multi Industry 588,017 1.3
Technology 2,033,630 4.6
Transportation 27,775 0.1
Utilities 393,911 0.9
Corporate Debt Obligations 6,897,141 15.5
U.S. Government & Agencies 18,642,425 41.9
Yankee Bonds 2,909,214 6.5
Total Investments* 43,271,116 97.3
Cash and receivables, net of liabilities 1,208,782 2.7
Net Assets $44,479,898 100.0%
* Excludes short-term obligations.
8
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1997 (UNAUDITED) ALLIANCE GROWTH INVESTORS FUND
_______________________________________________________________________________
COMPANY SHARES U.S. $ VALUE
- -------------------------------------------------------------------------
COMMON STOCKS & OTHER INVESTMENTS-76.4%
UNITED STATES INVESTMENTS-45.2%
FINANCE-9.4%
BANKING - MONEY CENTER-2.5%
Chase Manhattan Corp. 15,000 $ 1,730,625
Citicorp 7,000 875,438
------------
2,606,063
BROKERAGE & MONEY MANAGEMENT-1.9%
Merrill Lynch & Co., Inc. 15,000 1,014,375
Morgan Stanley, Dean Witter,
Discover & Co. 19,000 931,000
------------
1,945,375
INSURANCE-2.2%
American International Group, Inc. 12,000 1,224,750
Travelers Group, Inc. 15,000 1,050,000
------------
2,274,750
MISCELLANEOUS-2.8%
American Express Co. 10,000 780,000
MBNA Corp. 52,500 1,381,406
PMI Group, Inc. 12,000 725,250
------------
2,886,656
------------
9,712,844
TECHNOLOGY-7.4%
COMMUNICATIONS EQUIPMENT-1.2%
Lucent Technologies, Inc. 15,000 1,236,562
COMPUTER HARDWARE-1.3%
COMPAQ Computer Corp. (a) 20,600 1,313,250
COMPUTER SOFTWARE-0.9%
Oracle Corp. (a) 27,375 979,512
NETWORKING SOFTWARE-1.6%
Cisco Systems, Inc. (a) 20,000 1,640,625
SEMI-CONDUCTOR CAPITAL EQUIPMENT-0.5%
Applied Materials, Inc. (a) 14,000 467,250
SEMI-CONDUCTOR COMPONENTS-1.9%
Altera Corp. (a) 18,000 798,750
Intel Corp. 15,000 1,155,000
------------
1,953,750
------------
7,590,949
ENERGY-7.1%
DOMESTIC PRODUCERS-0.5%
Apache Corp. 11,500 483,000
INTERNATIONAL-1.6%
Texaco, Inc. 30,000 1,708,125
OIL SERVICE-5.0%
BJ Services Co. (a) 12,000 1,017,000
Halliburton Co. 31,000 1,848,375
Noble Drilling Corp. (a) 20,000 711,250
Transocean Offshore, Inc. 29,000 1,566,000
------------
5,142,625
------------
7,333,750
CONSUMER STAPLES-5.8%
COSMETICS-1.0%
Gillette Co. 12,000 1,068,750
FOOD-1.9%
Campbell Soup Co. 25,000 1,289,062
Coca-Cola Co. 12,000 678,000
------------
1,967,062
RETAIL - FOOD & DRUG-1.0%
Kroger Co. (a) 30,000 978,750
9
PORTFOLIO OF INVESTMENTS (CONTINUED) ALLIANCE GROWTH INVESTORS FUND
_______________________________________________________________________________
COMPANY SHARES U.S. $ VALUE
- -------------------------------------------------------------------------
TOBACCO-1.9%
Philip Morris Cos., Inc. 50,000 $ 1,981,250
------------
5,995,812
HEALTH CARE-5.4%
DRUGS-4.3%
Merck & Co., Inc. 30,000 2,677,500
Schering-Plough Corp. 32,000 1,794,000
------------
4,471,500
MEDICAL PRODUCTS-1.1%
Boston Scientific Corp. (a) 12,000 546,000
Medtronic, Inc. 14,000 609,000
------------
1,155,000
------------
5,626,500
CONSUMER SERVICES-5.1%
BROADCASTING & CABLE-1.7%
Cox Communications, Inc. Cl.A (a) 35,000 1,076,250
Tele-Communications, Inc. - Liberty
Media Cl.A (a) 20,000 696,250
------------
1,772,500
ENTERTAINMENT & LEISURE-2.7%
Harley-Davidson, Inc. 40,000 1,110,000
Walt Disney Co. 20,000 1,645,000
------------
2,755,000
RETAIL - GENERAL MERCHANDISE-0.7%
Dayton Hudson Corp. 12,000 753,750
------------
5,281,250
MULTI INDUSTRY COMPANIES-1.5%
Tyco International, Ltd. 14,000 528,500
U.S. Industries, Inc. (a) 37,500 1,007,813
------------
1,536,313
CAPITAL GOODS-1.4%
POLLUTION CONTROL-0.7%
USA Waste Services, Inc. (a) 20,000 740,000
MISCELLANEOUS-0.7%
United Technologies Corp. 10,000 700,000
------------
1,440,000
CONSUMER MANUFACTURING-1.1%
APPLIANCES-1.1%
Sunbeam Corp. 25,600 1,160,000
UTILITIES-1.0%
TELEPHONE UTILITY-1.0%
WorldCom, Inc. (a) 30,000 1,008,750
Total United States Investments
(cost $36,997,863) 46,686,168
FOREIGN INVESTMENTS-31.2%
AUSTRALIA-0.2%
Normandy Mining, Ltd. 200,000 218,008
BRAZIL-0.5%
Telecomunicacoes Brasileiras SA (ADR) 5,000 507,500
CANADA-1.2%
Gulf Canada Resources, Ltd. (a) 70,000 586,250
Magna International, Inc. Cl.A 10,000 659,169
------------
1,245,419
DENMARK-1.3%
Den Danske Bank 7,000 790,357
Sophus Berendsen Cl.B 4,000 604,211
------------
1,394,568
10
ALLIANCE GROWTH INVESTORS FUND
_______________________________________________________________________________
COMPANY SHARES U.S. $ VALUE
- -------------------------------------------------------------------------
FINLAND-2.2%
Nokia AB OY Corp. Series A pfd. 15,000 $ 1,310,588
Orion-Yhtymae OY Cl.B 20,000 738,414
Outokumpu OY Cl.A 13,300 197,961
------------
2,246,963
FRANCE-1.9%
Legris Ind., SA (b) 4,937 175,458
Sanofi, SA (b) 4,000 380,011
Societe Generale (b) 3,053 418,129
Total, SA Cl.B (b) 5,000 554,761
Unibail, SA (b) 5,018 478,464
------------
2,006,823
GERMANY-2.6%
Adidas AG 4,000 578,954
Bayer AG 18,000 631,744
Hornbach Holding AG pfd. 6,683 449,720
ProSieben Media AG pfd. (a) 15,000 735,294
Schmalbach-Lubeca AG pfd. 1,567 290,892
------------
2,686,604
HONG KONG-1.3%
Cheung Kong (Holdings), Ltd. 50,000 347,604
Citic Pacific, Ltd. 90,000 430,706
Dickson Concepts International, Ltd. 33,000 71,066
HSBC Holdings Plc. 15,000 339,520
Sun Hung Kai Properties, Ltd. 20,000 147,449
------------
1,336,345
INDONESIA-0.1%
PT Indosat (ADR) 60,000 135,229
ITALY-0.7%
Credito Italiano 100,000 266,686
IMI LNV 48,000 429,250
------------
695,936
JAPAN-7.0%
Bank of Tokyo, Ltd. 30,000 391,359
Canon, Inc. 16,000 388,201
Daito Trust Construction Co. 16,700 148,475
Daiwa Securities Co., Ltd. 90,000 544,412
Honda Motor Co. 20,000 673,037
Japan Tobacco, Inc. 50 410,054
Kokuyo 15,000 353,968
Nintendo Corp., Ltd. 5,000 432,073
Rohm Co. 8,000 791,026
Santen Pharmaceutical Co. 25,000 442,459
Sony Corp. 10,000 830,079
Sumitomo Electric Industries 12,000 158,538
Taisho Pharmaceutical Co. 15,000 383,880
TDK Corp. 6,000 497,549
Yakult Honsha Co. 20,000 166,016
Yamanouchi Pharmaceutical Co., Ltd. 25,000 614,873
------------
7,225,999
MEXICO-0.4%
Pan American Beverage Cl.A 15,000 465,000
NETHERLANDS-1.5%
Akzo Nobel NV 4,000 704,816
Internationale Nederlanden Groep NV 19,490 818,148
------------
1,522,964
NORWAY-0.2%
Bergesen D.Y. AS Cl.A 6,500 190,042
PHILIPPINES-0.1%
Manila Electric Co. Cl.B 39,560 120,521
RUSSIA-0.5%
Lukoil Holding (ADR) (c) 6,000 510,375
SOUTH KOREA-0.0%
SK Telecom, Ltd. (ADR) 6,180 33,990
11
PORTFOLIO OF INVESTMENTS (CONTINUED) ALLIANCE GROWTH INVESTORS FUND
_______________________________________________________________________________
COMPANY SHARES U.S. $ VALUE
- -------------------------------------------------------------------------
SPAIN-0.5%
Tabacalera, SA Series A 7,000 $ 504,297
SWEDEN-1.4%
Ericsson LM Telecom
Series B 10,000 440,593
Sparbanken Sverige AB
Series A 15,000 340,458
Volvo AB Series A 25,000 649,208
------------
1,430,259
SWITZERLAND-3.7%
Baloise Holdings, Ltd. 400 719,872
Ciba Specialty Chemicals
AG (a) 5,000 490,984
Nestle, SA 570 803,149
Novartis AG (ADR) 600 939,689
Zurich Versicherungsgesellschaft 2,000 825,567
------------
3,779,261
UNITED KINGDOM-3.9%
BAA Plc 50,000 461,382
BPB Plc 90,000 493,762
British Petroleum Co. Plc 30,108 442,500
Compass Group Plc 75,000 792,737
Smithkline Beecham Plc 67,200 637,009
TI Group Plc 50,000 459,284
Tomkins Plc 74,000 379,910
United News Media Plc 25,000 314,578
------------
3,981,162
Total Foreign Investments
(cost $31,557,242) 32,237,265
Total Common Stocks & Other Investments
(cost $68,555,105) 78,923,433
PRINCIPAL
AMOUNT
(000) U.S. $ VALUE
- -------------------------------------------------------------------------------
U.S. GOVERNMENT & AGENCIES-14.3%
Federal Home Loan Bank
7.00%, 9/01/11 $ 928 $942,463
Federal National Mortgage Assn.
6.50%, 1/01/11 91 91,827
6.50%, 5/01/11 1,773 1,775,119
7.00%, 5/01/26 1,015 1,019,951
U.S. Treasury Bond
6.625%, 2/15/27 1,370 1,452,625
U.S. Treasury Notes
6.00%, 8/15/00 1,150 1,159,166
6.375%, 5/15/99 2,900 2,931,262
6.50%, 8/31/01 2,175 2,230,397
6.50%, 5/31/02 1,790 1,841,176
6.875%, 5/15/06 1,250 1,329,887
Total U.S. Government & Agencies
(cost $14,469,175) 14,773,873
CORPORATE DEBT OBLIGATIONS-2.7%
BANKING-0.6%
Dime Capital Trust I Ser. A
9.33%, 5/06/27 600 657,746
FINANCIAL-1.3%
Ford Motor Credit Co.
6.125%, 1/09/06 650 632,512
United Companies Financial Corp.
8.375%, 7/01/05 700 705,404
------------
1,337,916
MORTGAGE RELATED-0.8%
World Financial Properties
6.95%, 9/01/13 (c) 750 770,235
Total Corporate Debt Obligations
(cost $2,617,191) 2,765,897
12
ALLIANCE GROWTH INVESTORS FUND
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) U.S. $ VALUE
- -------------------------------------------------------------------------------
YANKEE BONDS-2.5%
Corporacion Andina De Fomento
7.10%, 2/01/03 (d) $600 $ 609,051
Deutsche Bank Financial, Inc.
6.70%, 12/13/06 650 663,598
Perez Companc SA
8.125%, 7/15/07 (c) 600 547,500
Quebec Province Canada
7.125%, 2/09/24 (e) 750 755,760
Total Yankee Bonds
(cost $2,577,552) 2,575,909
SHORT-TERM DEBT SECURITIES-0.3%
U.S. Treasury Bills
4.83%, 12/18/97 10 9,937
4.94%, 12/18/97 260 258,323
Total Short-Term Debt Securities
(amortized cost $268,260) 268,260
TOTAL INVESTMENTS -96.2%
(cost $88,487,283) 99,307,372
Other assets less liabilities-3.8% 3,974,744
NET ASSETS-100% $ 103,282,116
(a) Non-income producing security.
(b) Securities or portion thereof, with an aggregate market value of
$2,006,823 have been segregated to collateralize forward exchange currency
contracts.
(c) Securities are exempt from registration under Rule 144A of the Securities
Act of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At October 31, 1997,
these securities amounted to $1,828,110 or 1.8% of net assets.
(d) Country of origin - Mexico.
(e) Country of origin - Canada.
Glossary:
ADR - American Depositary Receipt
See notes to financial statements.
13
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1997 (UNAUDITED) ALLIANCE CONSERVATIVE INVESTORS FUND
_______________________________________________________________________________
COMPANY SHARES U.S. $ VALUE
- -------------------------------------------------------------------------
COMMON STOCKS & OTHER INVESTMENTS-33.3%
UNITED STATES INVESTMENTS-20.3%
FINANCE-4.5%
BANKING - MONEY CENTER-1.3%
Chase Manhattan Corp. 3,000 $ 346,125
Citicorp 2,000 250,125
------------
596,250
BROKERAGE & MONEY MANAGEMENT-0.7%
Merrill Lynch & Co., Inc. 2,500 169,063
Morgan Stanley, Dean Witter,
Discover and Co. 3,000 147,000
------------
316,063
INSURANCE-1.2%
American International Group, Inc. 3,000 306,187
Travelers Group, Inc. 3,000 210,000
------------
516,187
MISCELLANEOUS-1.3%
American Express Co. 800 62,400
MBNA Corp. 12,375 325,617
PMI Group, Inc. 3,000 181,313
------------
569,330
------------
1,997,830
TECHNOLOGY-3.4%
COMMUNICATION EQUIPMENT-0.6%
Lucent Technologies, Inc. 3,000 247,312
COMPUTER HARDWARE-0.6%
COMPAQ Computer Corp. (a) 4,400 280,500
COMPUTER SOFTWARE-0.5%
Oracle Corp. (a) 6,000 214,688
NETWORKING SOFTWARE-0.7%
Cisco Systems, Inc. (a) 4,000 328,125
SEMI-CONDUCTOR CAPITAL EQUIPMENT-0.1%
Applied Materials, Inc. (a) 1,200 40,050
SEMI-CONDUCTOR COMPONENTS-0.9%
Altera Corp. (a) 4,800 213,000
Intel Corp. 2,500 192,500
------------
405,500
------------
1,516,175
ENERGY-2.9%
DOMESTIC PRODUCERS-0.2%
Apache Corp. 2,500 105,000
INTERNATIONAL-0.6%
Texaco, Inc. 5,000 284,688
OIL SERVICE-2.1%
BJ Services Co. (a) 2,000 169,500
Halliburton Co. 5,000 298,125
Noble Drilling Corp. (a) 3,000 106,687
Transocean Offshore, Inc. 6,400 345,600
------------
919,912
------------
1,309,600
CONSUMER STAPLES-2.5%
COSMETICS-0.4%
Gillette Co. 2,000 178,125
FOOD-0.8%
Campbell Soup Co. 4,000 206,250
Coca-Cola Co. 2,500 141,250
------------
347,500
14
ALLIANCE CONSERVATIVE INVESTORS FUND
_______________________________________________________________________________
COMPANY SHARES U.S. $ VALUE
- -------------------------------------------------------------------------
RETAIL - FOOD & DRUG-0.4%
Kroger Co. (a) 6,000 $ 195,750
TOBACCO-0.9%
Philip Morris Cos., Inc. 10,000 396,250
------------
1,117,625
CONSUMER SERVICES-2.3%
BROADCASTING & CABLE-0.8%
Cox Communications, Inc. Cl.A (a) 7,000 215,250
Tele-Communications, Inc. - Liberty
Media Cl.A (a) 4,000 139,250
------------
354,500
ENTERTAINMENT & LEISURE-1.1%
Harley-Davidson, Inc. 8,000 222,000
Walt Disney Co. 3,000 246,750
------------
468,750
RETAIL - GENERAL MERCHANDISE-0.4%
Dayton Hudson Corp. 3,000 188,437
------------
1,011,687
HEALTH CARE-2.3%
DRUGS-1.8%
Merck & Co., Inc. 5,000 446,250
Schering-Plough Corp. 6,000 336,375
------------
782,625
MEDICAL PRODUCTS-0.5%
Boston Scientific Corp. (a) 2,000 91,000
Medtronic, Inc. 3,158 137,373
------------
228,373
------------
1,010,998
MULTI INDUSTRY COMPANIES-0.8%
Tyco International, Ltd. 4,000 151,000
U.S. Industries, Inc. 7,950 213,656
------------
364,656
CAPITAL GOODS-0.7%
POLLUTION CONTROL-0.4%
USA Waste Services, Inc. (a) 4,300 159,100
MISCELLANEOUS-0.3%
United Technologies Corp. 2,000 140,000
------------
299,100
CONSUMER MANUFACTURING-0.5%
APPLIANCES-0.5%
Sunbeam Corp. 5,000 226,563
UTILITIES-0.4%
TELEPHONE UTILITY-0.4%
WorldCom, Inc. (a) 6,000 201,750
Total United States Investments
(cost $7,165,740) 9,055,984
FOREIGN INVESTMENTS-13.0%
AUSTRALIA-0.1%
Normandy Mining, Ltd. 35,000 38,151
BRAZIL-0.3%
Telecomunicacoes Brasileiras SA (ADR) 1,200 121,800
CANADA-0.4%
Gulf Canada Resources, Ltd. (a) 12,000 100,500
Magna International, Inc. Cl.A 1,000 65,917
------------
166,417
15
PORTFOLIO OF INVESTMENTS (CONTINUED) ALLIANCE CONSERVATIVE INVESTORS FUND
_______________________________________________________________________________
COMPANY SHARES U.S. $ VALUE
- -------------------------------------------------------------------------
DENMARK-0.6%
Den Danske Bank 1,000 $ 112,908
Sophus Berendsen Cl.B 1,000 151,053
------------
263,961
FINLAND-0.7%
Nokia AB OY Corp. Series A pfd. 2,000 174,745
Orion-Yhtymae OY Cl.B 3,000 110,762
Outokumpu OY Cl.A 2,700 40,188
------------
325,695
FRANCE-0.9%
Legris Ind., SA 1,003 35,646
Sanofi SA (b) 1,000 95,003
Societe Generale 512 70,122
Total, SA Cl.B (b) 800 88,762
Unibail, SA (b) 1,002 95,540
------------
385,073
GERMANY-1.1%
Adidas AG 700 101,317
Bayer AG 3,000 105,291
Hornbach Holdings AG pfd. 984 66,216
ProSieben Media AG pfd. (a) 3,000 147,059
Schmalbach-Lubeca AG 315 58,475
------------
478,358
HONG KONG-0.5%
Cheung Kong (Holdings), Ltd. 8,000 55,617
Citic Pacific, Ltd. 15,000 71,784
Dickson Concepts International, Ltd. 7,000 15,075
HSBC Holdings Plc 2,000 45,269
Sun Hung Kai Properties, Ltd. 3,000 22,117
------------
209,862
INDONESIA-0.1%
PT Indosat (ADR) 12,000 27,046
ITALY-0.3%
Credito Italiano 20,000 53,337
IMI LNV 8,000 71,542
------------
124,879
JAPAN-3.0%
Bank of Tokyo, Ltd. 7,000 91,317
Canon, Inc. 3,000 72,788
Daito Trust Construction Co. 3,000 26,672
Daiwa Securities Co., Ltd. 12,000 72,588
Honda Motor Co. 5,000 168,259
Japan Tobacco, Inc. 10 82,011
Kokuyo 2,000 47,196
Nintendo Corp., Ltd. 1,500 129,622
Rohm Co. 1,000 98,878
Santen Pharmaceutical Co. 5,000 88,492
Sony Corp. 2,000 166,016
Sumitomo Electric Industries 3,000 39,634
Taisho Pharmaceutical Co. 2,000 51,184
TDK Corp. 1,000 82,925
Yakult Honsha Co. 3,000 24,902
Yamanouchi Pharmaceutical Co., Ltd. 4,000 98,380
------------
1,340,864
MEXICO-0.1%
Pan American Beverage Cl.A 2,000 62,000
NETHERLANDS-0.6%
Akzo Nobel NV 700 123,343
Internationale Nederlanden Groep NV 3,900 163,713
------------
287,056
NORWAY-0.1%
Bergesen D.Y. AS Cl.A 950 27,775
PHILIPPINES-0.0%
Manila Electric Co. Cl.B 5,850 17,822
16
ALLIANCE CONSERVATIVE INVESTORS FUND
_______________________________________________________________________________
COMPANY SHARES U.S. $ VALUE
- -------------------------------------------------------------------------
RUSSIA-0.2%
Lukoil Holding (ADR) (c) 1,000 $ 85,062
SOUTH KOREA-0.0%
SK Telecom, Ltd. (ADR) 4,635 25,493
SPAIN-0.2%
Tabacalera, SA Series A 1,200 86,451
SWEDEN-0.6%
Ericsson LM Telecom Series B 2,000 88,119
Sparbanken Sverige AB Series A 3,000 68,092
Volvo AB Series A 4,000 103,873
------------
260,084
SWITZERLAND-1.5%
Baloise Holdings, Ltd. 80 143,974
Ciba Specialty Chemicals AG (a) 800 78,557
Nestle, SA 110 154,994
Novartis AG (ADR) 100 156,615
Zurich Versicherungsgesellschaft 300 123,835
------------
657,975
UNITED KINGDOM-1.7%
BAA Plc 12,000 110,732
BPB Plc 25,000 137,156
British Petroleum Co. Plc 7,015 103,100
Compass Group Plc 12,000 126,838
Smithkline Beecham Plc 10,000 94,793
TI Group Plc 7,000 64,300
Tomkins Plc 17,000 87,277
United News Media Plc 4,000 50,332
------------
774,528
Total Foreign Investments
(cost $5,706,056) 5,766,352
Total Common Stocks & Other Investments
(cost $12,871,796) 14,822,336
PRINCIPAL
AMOUNT
(000) U.S. $ VALUE
- -------------------------------------------------------------------------------
U.S. GOVERNMENT & AGENCIES-41.9%
Federal Home Loan Bank
7.00%, 9/01/11 $1,458 $ 1,481,013
Federal National Mortgage Assn.
6.50%, 6/01/11 3,086 3,088,536
6.50%, 6/01/11 510 510,548
7.00%, 5/01/26 1,522 1,529,926
U.S. Treasury Bond
6.625%, 2/15/27 1,595 1,691,194
U.S. Treasury Notes
6.00%, 8/15/00 1,625 1,637,951
6.25%, 4/30/01 925 939,597
6.375%, 5/15/99 3,575 3,613,538
6.50%, 8/31/01 1,725 1,768,936
6.50%, 5/31/02 2,315 2,381,186
Total U.S. Government & Agencies
(cost $18,315,914) 18,642,425
CORPORATE DEBT OBLIGATIONS-15.5%
BANKING-2.3%
Long Islands Savings Bank
7.00%, 6/13/02 1,000 1,022,970
FINANCIAL-3.6%
Goldman Sachs Group LP
7.20%, 11/01/06 (c) 1,000 1,050,670
Premier Auto Trust Cl.A5
7.15%, 2/04/99 572 573,257
------------
1,623,927
INDUSTRIAL-7.3%
Comcast Cable Communications
8.375%, 5/01/07 (c) 1,100 1,205,259
Royal Caribbean Cruises, Ltd.
7.50%, 10/15/27 1,050 1,036,434
17
PORTFOLIO OF INVESTMENTS (CONTINUED) ALLIANCE CONSERVATIVE INVESTORS FUND
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) U.S. $ VALUE
- -------------------------------------------------------------------------------
Time Warner Entertainment Co.
8.375%, 3/15/23 (c) $ 900 $ 986,634
------------
3,228,327
TRANSPORTATION-2.3%
Erac USA Finance Co.
6.95%, 3/01/04 (c) 1,000 1,021,917
Total Corporate Debt Obligations
(cost $6,721,686) 6,897,141
YANKEE BONDS-6.5%
Deutsche Bank Financial, Inc.
6.70%, 12/13/06 900 918,828
Quebec Province Canada
7.125%, 2/09/24 (d) 950 957,296
St. George Bank, Ltd.
7.15%, 10/15/05 (c) 1,000 1,033,090
Total Yankee Bonds
(cost $2,753,891) 2,909,214
SHORT-TERM DEBT SECURITIES-1.6%
Student Loan Marketing Assn.
5.63%, 11/03/97 600 599,812
U.S. Treasury Bills
4.83%, 12/18/97 10 9,937
4.94%, 12/18/97 85 84,452
Total Short-Term Debt Securities
(amortized cost $694,201) 694,201
TOTAL INVESTMENTS -98.8%
(cost $41,357,488) 43,965,317
Other assets less liabilities-1.2% 514,581
NET ASSETS-100% $ 44,479,898
(a) Non-income producing security.
(b) Securities or portion thereof, with an aggregate market value of $279,305
have been segregated to collateralize forward exchange currency contracts.
(c) Securities are exempt from registration under Rule 144A of the Securities
Act of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At October 31, 1997,
these securities amounted to $5,382,632 or 12.1% of net assets.
(d) Country of origin - Canada.
Glossary:
ADR - American Depositary Receipt
See notes to financial statements.
18
STATEMENTS OF ASSETS AND LIABILITIES
OCTOBER 31, 1997 (UNAUDITED)
ALLIANCE GROWTH INVESTORS AND
CONSERVATIVE INVESTORS FUNDS
_______________________________________________________________________________
GROWTH CONSERVATIVE
INVESTORS FUND INVESTORS FUND
-------------- --------------
ASSETS
Investments in securities, at value (cost
$88,487,283 and $41,357,488 respectively) $ 99,307,372 $ 43,965,317
Cash, at value (cost $1,940,096 and
$53,480, respectively) 1,940,351 53,483
Receivable for investment securities and
foreign currency sold 3,558,965 410,771
Interest and dividends receivable 424,910 438,287
Receivable for shares of beneficial
interest sold 65,802 48,787
Foreign taxes receivable 26,058 4,417
Total assets 105,323,458 44,921,062
LIABILITIES
Payable for investment securities and
foreign currency purchased 1,475,754 173,217
Payable on variation margin 144,500 47,530
Unrealized depreciation of forward
exchange currency contracts 80,957 11,887
Distribution fee payable 72,797 31,366
Advisory fee payable 68,193 134
Payable for shares of beneficial
interest redeemed 973 9,208
Accrued expenses 198,168 167,822
Total liabilities 2,041,342 441,164
NET ASSETS $ 103,282,116 $ 44,479,898
COMPOSITION OF NET ASSETS
Shares of beneficial interest, at par $ 70 $ 36
Additional paid-in capital 82,226,918 38,417,500
Undistributed net investment income 545,085 473,248
Accumulated net realized gain on
investments, futures contracts and
foreign currency transactions 9,645,309 2,960,120
Net unrealized appreciation of
investments, futures contracts and
foreign currency denominated assets
and liabilities 10,864,734 2,628,994
$ 103,282,116 $ 44,479,898
CALCULATION OF MAXIMUM OFFERING PRICE
CLASS A SHARES
Net asset value and redemption price per
share ($29,242,903/1,970,186 and
$11,643,141/951,181 shares of
beneficial interest issued and
outstanding, respectively) $14.84 $12.24
Sales charge--4.25% of public
offering price .66 .54
Maximum offering price $15.50 $12.78
CLASS B SHARES
Net asset value and offering price per
share ($67,191,235/4,547,548 and
$28,734,495/2,311,101 shares of
beneficial interest issued and
outstanding, respectively) $14.78 $12.43
CLASS C SHARES
Net asset value and offering price per
share ($6,847,978/463,079 and
$4,102,262/329,846 shares of
beneficial interest issued and
outstanding, respectively) $14.79 $12.44
See notes to financial statements.
19
STATEMENTS OF OPERATIONS
SIX MONTHS ENDED OCTOBER 31, 1997 (UNAUDITED)
ALLIANCE GROWTH INVESTORS AND
CONSERVATIVE INVESTORS FUNDS
_______________________________________________________________________________
GROWTH CONSERVATIVE
INVESTORS FUND INVESTORS FUND
-------------- --------------
INVESTMENT INCOME
Interest $ 817,798 $ 1,005,010
Dividends (net of foreign tax withheld of
$30,512 and $4,063, respectively) 501,022 97,869
Total income 1,318,820 1,102,879
EXPENSES
Advisory fee 391,121 169,251
Distribution fee - Class A 44,684 17,894
Distribution fee - Class B 338,374 145,314
Distribution fee - Class C 34,175 20,707
Custodian 124,943 75,128
Transfer agency 110,120 50,606
Audit and legal 41,094 43,201
Registration 32,247 24,000
Printing 30,680 20,292
Trustees' fees 15,000 15,000
Miscellaneous 4,905 5,868
Total expenses 1,167,343 587,261
Less: expenses waived and assumed
by adviser (See Note B) -0- (149,449)
Less: expense offset arrangement
(See Note B) (14,163) (5,521)
Net expenses 1,153,180 432,291
Net investment income 165,640 670,588
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain on investment transactions 9,993,218 2,453,453
Net realized loss on futures contracts (143,333) (42,727)
Net realized loss on foreign currency
transactions (56,244) (15,341)
Net change in unrealized appreciation
(depreciation) of:
Investments 2,093,919 854,533
Futures contracts 141,975 40,400
Foreign currency denominated assets
and liabilities (86,322) (13,480)
Net gain on investments, futures contracts
and foreign currency transactions 11,943,213 3,276,838
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 12,108,853 $ 3,947,426
See notes to financial statements.
20
STATEMENTS OF CHANGES IN NET ASSETS
ALLIANCE GROWTH INVESTORS AND
CONSERVATIVE INVESTORS FUNDS
_______________________________________________________________________________
<TABLE>
<CAPTION>
GROWTH INVESTORS FUND CONSERVATIVE INVESTORS FUND
--------------------------------------- ---------------------------------------
SIX MONTHS ENDED SIX MONTHS ENDED
OCT. 31, 1997 YEAR ENDED OCT. 31, 1997 YEAR ENDED
(UNAUDITED) APRIL 30, 1997 (UNAUDITED) APRIL 30, 1997
----------------- ----------------- ----------------- -----------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS
Net investment income $ 165,640 $ 611,440 $ 670,588 $ 1,528,962
Net realized gain on investments,
futures contracts and foreign
currency transactions 9,793,641 2,985,209 2,395,385 593,982
Net change in unrealized
appreciation (depreciation) of
investments, futures contracts
and foreign currency denominated
assets and liabilities 2,149,572 2,361,782 881,453 1,321,406
Net increase in net assets
from operations 12,108,853 5,958,431 3,947,426 3,444,350
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income
Class A -0- (345,352) (139,346) (516,046)
Class B -0- (444,447) (239,782) (967,390)
Class C -0- (43,458) (34,475) (154,474)
Net realized gain on investments
Class A -0- (3,066,309) -0- (278,463)
Class B -0- (7,140,766) -0- (644,643)
Class C -0- (698,222) -0- (100,968)
TRANSACTIONS IN SHARES OF
BENEFICIAL INTEREST
Net increase (decrease) (4,021,942) 4,473,662 (3,100,689) (8,201,003)
Total increase (decrease) 8,086,911 (1,306,461) 433,134 (7,418,637)
NET ASSETS
Beginning of year 95,195,205 96,501,666 44,046,764 51,465,401
End of period (including
undistributed net investment
income of $545,085, $379,445,
$473,248 and $216,263,
respectively) $ 103,282,116 $ 95,195,205 $ 44,479,898 $ 44,046,764
</TABLE>
See notes to financial statements.
21
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 1997 (UNAUDITED)
ALLIANCE GROWTH INVESTORS AND
CONSERVATIVE INVESTORS FUNDS
_______________________________________________________________________________
NOTE A: SIGNIFICANT ACCOUNTING POLICIES
Alliance Growth Investors Fund and Conservative Investors Fund (the "Funds"),
two series of The Alliance Portfolios (the "Trust"), are registered under the
Investment Company Act of 1940 as diversified, open-end investment companies.
The Funds offer Class A, Class B and Class C shares. Class A shares are sold
with a front-end sales charge of up to 4.25% 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 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
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 and commitments under
forward exchange currency contracts are translated into U.S. dollars at the
mean of the quoted bid and asked price of such currencies against the U.S.
dollar. Purchases and sales of portfolio securities are translated into U.S.
dollars at the rates of exchange prevailing when such securities were acquired
or sold. Income and expenses are translated into U.S. dollars at rates of
exchange prevailing when accrued.
Net foreign currency loss represents foreign exchange gains and losses from
sales and maturities of securities, currency gains and losses realized between
the trade and settlement dates on security transactions and the difference
between the amounts of interest recorded on the Fund's books and the U.S.
dollar equivalent amounts actually received or paid. Net currency gains and
losses from valuing foreign currency denominated assets and liabilities at
period end exchange rates are reflected as a component of net unrealized
appreciation of investments and foreign currency denominated assets and
liabilities.
3. 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.
4. 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.
5. 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 net assets 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
22
ALLIANCE GROWTH INVESTORS AND
CONSERVATIVE INVESTORS FUNDS
_______________________________________________________________________________
fees than Class A shares. Expenses of the Trust are charged to each Fund in
proportion to net assets.
6. DIVIDENDS AND DISTRIBUTIONS
Dividends and distributions to shareholders are recorded on the ex-dividend
date. Income and capital gains distributions are determined in accordance with
federal tax regulations and may differ from those determined in accordance with
generally accepted accounting principles. To the extent these differences are
permanent, such amounts are reclassified within the capital accounts based on
their federal tax basis treatment; temporary differences, do not require such
reclassification.
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 the Conservative Investors Fund. For the six months ended
October 31, 1997, such reimbursement amounted to $149,449 for the Conservative
Investors Fund.
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 $66,147 and $26,591 for the Growth Investors Fund and
Conservative Investors Fund, respectively, for the six months ended October 31,
1997. In addition, for the six months ended October 31, 1997, the Fund's
expenses were reduced by $14,163 and $5,521 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
statements of operation exclude these credits.
Alliance Fund Distributors, Inc. (the "Distributor"), a wholly-owned subsidiary
of the Adviser serves as the Distributor of each Fund's shares. The Distributor
received front-end sales charges of $2,271 from the sale of Class A shares and
$894, $30,934 and $1,070 in contingent deferred sales charges imposed upon
redemptions by shareholders of Class A, Class B and Class C shares,
respectively, for the six months ended October 31, 1997 for the Growth
Investors Fund. The Distributor also received front-end sales charges of $458
from the sale of Class A shares and $542, $19,808 and $1,936 in contingent
deferred sales charges imposed upon redemptions by shareholders of Class A,
Class B and Class C shares, respectively, for the six months ended October 31,
1997 for the Conservative Investors Fund.
Brokerage commissions paid on investment transactions for the six months ended
October 31, 1997 amounted to $212,117 and $39,880 for the Growth Investors and
Conservative Investors Funds, respectively, none of which was paid to
Donaldson, Lufkin & Jenrette Securities Corp. ("DLJ"), an affiliate of the
Adviser.
Accrued expenses includes amounts owed to two of the Trustees under a deferred
compensation plan of $39,076 and $36,430 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
23
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
ALLIANCE GROWTH INVESTORS AND
CONSERVATIVE INVESTORS FUNDS
_______________________________________________________________________________
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
$66,341,680 and $61,510,879, respectively, for the six months ended October 31,
1997. There were purchases of $14,483,307 and sales of $16,458,727 of U.S.
government and government agency obligations for the six months ended October
31, 1997. At October 31, 1997, the cost of investments for federal income tax
purposes for the Growth Investors Fund was substantially the same as the cost
for financial reporting purposes. Accordingly, gross unrealized appreciation of
investments was $13,021,533 and gross unrealized depreciation of investments
was $2,201,444 resulting in net unrealized appreciation of $10,820,089,
(excluding foreign currency transactions.)
Purchases and sales of investment securities (excluding short-term investments
and U.S. government securities) for the Conservative Investors Fund aggregated
$19,058,941 and $14,325,199, respectively, for the six months ended October 31,
1997. There were purchases of $19,667,996 and sales of $25,069,014, of U.S.
government and government agency obligations for the six months ended October
31, 1997. At October 31, 1997, the cost of investments for federal income tax
purposes for the Conservative Investors Fund was $41,360,391. Accordingly gross
unrealized appreciation of investments was $3,031,025 and gross unrealized
depreciation of investments was $426,099 resulting in net unrealized
appreciation of $2,604,926 (excluding foreign currency transactions.)
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
six months ended October 31, 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.
FORWARD EXCHANGE CURRENCY CONTRACTS
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 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
24
ALLIANCE GROWTH INVESTORS AND
CONSERVATIVE INVESTORS FUNDS
_______________________________________________________________________________
unanticipated movements in the value of a foreign currency relative to the U.S.
dollar. The face or contract amount, in U.S. dollars, as reflected in the
following table, reflects the total exposure the Funds have in that particular
currency contract.
At October 31, 1997, the Funds had outstanding forward exchange currency
contracts to sell foreign currencies against the U.S. dollar, as follows:
GROWTH INVESTORS
------------------------------------------------------
CONTRACT VALUE ON U.S. $
AMOUNT ORIGINATION CURRENT UNREALIZED
(000) DATE VALUE DEPRECIATION
------------ ------------ ------------ ------------
FOREIGN CURRENCY
SALE CONTRACTS
French Franc,
maturing 12/05/97 10,756 $1,787,591 $1,868,548 $ 80,957
CONSERVATIVE INVESTORS
------------------------------------------------------
CONTRACT VALUE ON U.S. $
AMOUNT ORIGINATION CURRENT UNREALIZED
(000) DATE VALUE DEPRECIATION
------------ ------------ ------------ ------------
FOREIGN CURRENCY
SALE CONTRACTS
French Franc,
maturing 12/05/97 1,579 $ 262,475 $ 274,362 $ 11,887
FINANCIAL FUTURES CONTRACTS
The Fund may buy or sell financial futures contracts for the purpose of hedging
its portfolio against adverse affects of anticipated movements in the market.
At October 31, 1997, the Fund had entered into exchange traded financial
futures contracts as described below. The Fund bears the market risk that
arises from changes in the value of these financial instruments.
At the time the Fund enters into a futures contract, the Fund deposits and
maintains as collateral an initial margin as required by the exchange on which
the transaction is effected. The aggregate value of cash pledged to cover
margin requirements for open positions at October 31, 1997 was $268,260 and
$94,389 for the Growth Investors and Conservative Investors Funds,
respectively. Pursuant to the contract, the Fund agrees to receive from or pay
to the broker an amount of cash equal to the daily fluctuation in the value of
the contract. Such receipts or payments are known as variation margin and are
recorded by the Fund as unrealized gains or losses. When the contract is
closed, the Fund records a realized gain or loss equal to the difference
between the value of the contract at the time it was opened and the time it was
closed. At October 31, 1997, the Funds had outstanding futures contracts as
follows:
GROWTH INVESTORS
----------------------------------------------------------
UNREALIZED
NUMBER OF EXPIRATION DEPRECIATION
TYPE CONTRACTS POSITION MONTH OCT. 31, 1997
- ------------------ ------------- ------------- ------------- -------------
Eurotop 100 Index 10 Short December 1997 $ 19,100
S&P 500 Index 12 Short December 1997 125,400
144,500
CONSERVATIVE INVESTORS
----------------------------------------------------------
UNREALIZED
NUMBER OF EXPIRATION DEPRECIATION
TYPE CONTRACTS POSITION MONTH OCT. 31, 1997
- ------------------ ------------- ------------- ------------- -------------
Eurotop 100 Index 3 Short December 1997 $ 5,730
S&P 500 Index 4 Short December 1997 41,800
47,530
25
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
ALLIANCE GROWTH INVESTORS AND
CONSERVATIVE INVESTORS FUNDS
_______________________________________________________________________________
NOTE E: SHARES OF BENEFICIAL INTEREST
There is an unlimited number of $0.00001 par value shares of beneficial
interest authorized divided into three classes, designated Class A, Class B and
Class C shares for both Funds. Transactions in shares of beneficial interest
were as follows:
ALLIANCE GROWTH INVESTORS FUND
-----------------------------------------------------------
SHARES AMOUNT
--------------------------- ------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
OCT. 31, 1997 APRIL 30, OCT. 31, 1997 APRIL 30,
(UNAUDITED) 1997 (UNAUDITED) 1997
------------ ------------ -------------- --------------
CLASS A
Shares sold 78,884 416,498 $ 1,149,815 $ 5,723,360
Shares issued in
reinvestment of
dividends and
distributions 4 255,265 59 3,305,692
Shares converted
from Class B 54,168 88,258 791,073 1,193,716
Shares redeemed (254,801) (842,362) (3,703,946) (11,968,491)
Net decrease (121,745) (82,341) $ (1,762,999) $ (1,745,723)
CLASS B
Shares sold 322,416 772,493 $ 4,715,916 $ 10,626,034
Shares issued in
reinvestment of
dividends and
distributions 82 564,549 1,176 7,322,203
Shares converted
to Class A (54,329) (88,353) (791,073) (1,193,716)
Shares redeemed (427,588) (802,824) (6,217,776) (11,040,599)
Net increase
(decrease) (159,419) 445,865 $ (2,291,757) $ 5,713,922
CLASS C
Shares sold 68,128 187,433 $ 991,688 $ 2,572,550
Shares issued in
reinvestment of
dividends and
distributions -0- 51,785 -0- 672,170
Shares redeemed (64,879) (199,231) (958,874) (2,739,257)
Net increase 3,249 39,987 $ 32,814 $ 505,463
26
ALLIANCE GROWTH INVESTORS AND
CONSERVATIVE INVESTORS FUNDS
_______________________________________________________________________________
ALLIANCE CONSERVATIVE INVESTORS FUND
--------------------------- ------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
OCT. 31, 1997 APRIL 30, OCT. 31, 1997 APRIL 30,
(UNAUDITED) 1997 (UNAUDITED) 1997
------------ ------------ -------------- --------------
CLASS A
Shares sold 20,923 155,230 $ 250,487 $ 1,741,912
Shares issued in
reinvestment of
dividends and
distributions 10,772 66,216 127,926 747,524
Shares converted
from Class B 42,636 41,333 514,114 468,493
Shares redeemed (172,027) (484,981) (2,053,181) (5,464,450)
Net decrease (97,696) (222,202) $ (1,160,654) $ (2,506,521)
CLASS B
Shares sold 173,096 378,962 $ 2,121,134 $ 4,341,413
Shares issued in
reinvestment of
dividends and
distributions 18,570 130,177 224,364 1,495,849
Shares converted
to Class A (41,992) (40,723) (514,114) (468,493)
Shares redeemed (279,534) (856,038) (3,395,682) (9,795,661)
Net decrease (129,860) (387,622) $ (1,564,298) $ (4,426,892)
CLASS C
Shares sold 43,848 98,699 $ 533,090 $ 1,120,987
Shares issued in
reinvestment of
dividends and
distributions 2,679 20,142 32,360 231,457
Shares redeemed (77,810) (228,588) (941,187) (2,620,034)
Net decrease (31,283) (109,747) $ (375,737) $ (1,267,590)
27
FINANCIAL HIGHLIGHTS ALLIANCE GROWTH INVESTORS FUND
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD
<TABLE>
<CAPTION>
CLASS A
------------------------------------------------------------------------
SIX MONTHS
ENDED
OCTOBER 31, YEAR ENDED APRIL 30, MAY 4, 1992(A)
1997 --------------------------------------------- TO APRIL 30,
(UNAUDITED) 1997 1996 1995 1994 1993
------------ ---------- ---------- ---------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $13.12 $14.08 $12.08 $11.61 $11.35 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b) .06(c) .16(c) .10 .25 .12 .20
Net realized and unrealized gain on
investment transactions 1.66 .76 2.75 .38 .39 1.43
Net increase in net asset value from
operations 1.72 .92 2.85 .63 .51 1.63
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income -0- (.19) (.26) (.15) (.11) (.16)
Distributions from net realized gains -0- (1.69) (.59) (.01) (.14) (.12)
Total dividends and distributions -0- (1.88) (.85) (.16) (.25) (.28)
Net asset value, end of period $14.84 $13.12 $14.08 $12.08 $11.61 $11.35
TOTAL RETURN
Total investment return based on net
asset value (d) 13.11% 6.69% 23.87% 5.57% 4.46% 16.32%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $29,243 $27,453 $30,608 $22,189 $16,759 $3,503
Ratios to average net assets of:
Expenses, net of waivers/reimbursements 1.72%(e)(f) 1.56%(f) 1.40% 1.40% 1.40% 1.40%(e)
Expenses, before waivers/reimbursements 1.71%(e) 1.73% 1.65% 1.97% 2.33% 4.27%(e)
Net investment income .82%(e) 1.14% 2.02% 2.32% 1.67% 1.91%(e)
Portfolio turnover rate 80% 133% 209% 134% 96% 114%
Average commission rate (g) $.0368 $.0435 -- -- -- --
</TABLE>
See footnote summary on page 33.
28
ALLIANCE GROWTH INVESTORS FUND
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD
<TABLE>
<CAPTION>
CLASS B
------------------------------------------------------------------------
SIX MONTHS
ENDED
OCTOBER 31, YEAR ENDED APRIL 30, MAY 4, 1992(A)
1997 --------------------------------------------- TO APRIL 30,
(UNAUDITED) 1997 1996 1995 1994 1993
------------ ---------- ---------- ---------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $13.11 $14.08 $12.09 $11.65 $11.41 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b) .01(c) .06(c) .06 .17 .07 .07
Net realized and unrealized gain
on investment transactions 1.66 .77 2.70 .38 .37 1.45
Net increase in net asset value
from operations 1.67 .83 2.76 .55 .44 1.52
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income -0- (.11) (.18) (.10) (.06) (.05)
Distributions from net realized gains -0- (1.69) (.59) (.01) (.14) (.06)
Total dividends and distributions -0- (1.80) (.77) (.11) (.20) (.11)
Net asset value, end of period $14.78 $13.11 $14.08 $12.09 $11.65 $11.41
TOTAL RETURN
Total investment return based on net
asset value (d) 12.74% 5.98% 23.06% 4.83% 3.84% 15.23%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $67,191 $61,709 $59,978 $43,328 $30,871 $7,999
Ratios to average net assets of:
Expenses, net of waivers/reimbursements 2.42%(e)(f) 2.27%(f) 2.10% 2.10% 2.11% 2.15%(e)
Expenses, before waivers/reimbursements 2.41%(e) 2.44% 2.35% 2.67% 3.00% 4.48%(e)
Net investment income .12%(e) .42% 1.15% 1.62% .95% 1.07%(e)
Portfolio turnover rate 80% 133% 209% 134% 96% 114%
Average commission rate (g) $.0368 $.0435 -- -- -- --
</TABLE>
See footnote summary on page 33.
29
FINANCIAL HIGHLIGHTS (CONTINUED) ALLIANCE GROWTH INVESTORS FUND
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD
<TABLE>
<CAPTION>
CLASS C
--------------------------------------------------------------
SIX MONTHS
ENDED AUGUST 2,
OCTOBER 31, YEAR ENDED APRIL 30, 1993(H)
1997 ---------------------------------- TO APRIL 30,
(UNAUDITED) 1997 1996 1995 1994
------------ ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $13.12 $14.09 $12.10 $11.65 $11.88
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b) .01(c) .06(c) .06 .18 .08
Net realized and unrealized gain (loss)
on investment transactions 1.66 .77 2.70 .38 (.11)
Net increase (decrease) in net asset
value from operations 1.67 .83 2.76 .56 (.03)
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income -0- (.11) (.18) (.10) (.06)
Distributions from net realized gains -0- (1.69) (.59) (.01) (.14)
Total dividends and distributions -0- (1.80) (.77) (.11) (.20)
Net asset value, end of period $14.79 $13.12 $14.09 $12.10 $11.65
TOTAL RETURN
Total investment return based on net
asset value (d) 12.73% 5.97% 23.04% 4.91% (.26)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $6,848 $6,033 $5,915 $4,247 $3,280
Ratios to average net assets of:
Expenses, net of waivers/reimbursements 2.42%(e)(f) 2.28%(f) 2.10% 2.10% 2.10%(e)
Expenses, before waivers/reimbursements 2.41%(e) 2.43% 2.36% 2.66% 3.02%(e)
Net investment income .12%(e) .42% 1.15% 1.62% 1.04%(e)
Portfolio turnover rate 80% 133% 209% 134% 96%
Average commission rate (g) $.0368 $.0435 -- -- --
</TABLE>
See footnote summary on page 33.
30
ALLIANCE CONSERVATIVE INVESTORS FUND
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD
<TABLE>
<CAPTION>
CLASS A
------------------------------------------------------------------------
SIX MONTHS
ENDED
OCTOBER 31, YEAR ENDED APRIL 30, MAY 4, 1992(A)
1997 --------------------------------------------- TO APRIL 30,
(UNAUDITED) 1997 1996 1995 1994 1993
------------ ---------- ---------- ---------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $11.31 $11.14 $10.38 $10.37 $10.79 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b) .21(c) .41(c) .51 .48 .31 .39
Net realized and unrealized gain (loss)
on investment transactions .86 .46 .80 (.02) (.26) .82
Net increase in net asset value
from operations 1.07 .87 1.31 .46 .05 1.21
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.14) (.45) (.55) (.45) (.29) (.36)
Distributions from net realized gains -0- (.25) -0- -0- (.18) (.06)
Total dividends and distributions (.14) (.70) (.55) (.45) (.47) (.42)
Net asset value, end of period $12.24 $11.31 $11.14 $10.38 $10.37 $10.79
TOTAL RETURN
Total investment return based on net
asset value (d) 9.50% 7.90% 12.69% 4.65% .35% 12.25%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $11,643 $11,860 $14,161 $16,105 $15,595 $5,339
Ratios to average net assets of:
Expenses, net of waivers/reimbursements 1.41%(e)(f) 1.41%(f) 1.40% 1.40% 1.40% 1.40%(e)
Expenses, before waivers/reimbursements 2.06%(e) 1.90% 1.73% 1.83% 2.03% 3.45%(e)
Net investment income 3.49%(e) 3.66% 4.43% 4.66% 3.43% 3.92%(e)
Portfolio turnover rate 89% 174% 267% 248% 133% 84%
Average commission rate (g) $.0386 $.0428 -- -- -- --
</TABLE>
See footnote summary on page 33.
31
FINANCIAL HIGHLIGHTS (CONTINUED) ALLIANCE CONSERVATIVE INVESTORS FUND
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD
<TABLE>
<CAPTION>
CLASS B
------------------------------------------------------------------------
SIX MONTHS
ENDED
OCTOBER 31, YEAR ENDED APRIL 30, MAY 4, 1992(A)
1997 --------------------------------------------- TO APRIL 30,
(UNAUDITED) 1997 1996 1995 1994 1993
------------ ---------- ---------- ---------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $11.49 $11.31 $10.51 $10.47 $10.88 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b) .17(c) .34(c) .43 .46 .24 .24
Net realized and unrealized gain (loss)
on investment transactions .87 .46 .82 (.02) (.26) .89
Net increase (decrease) in net asset
value from operations 1.04 .80 1.25 .44 (.02) 1.13
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.10) (.37) (.45) (.40) (.21) (.22)
Distributions from net realized gains -0- (.25) -0- -0- (.18) (.03)
Total dividends and distributions (.10) (.62) (.45) (.40) (.39) (.25)
Net asset value, end of period $12.43 $11.49 $11.31 $10.51 $10.47 $10.88
TOTAL RETURN
Total investment return based on
net asset value (d) 9.10% 7.10% 11.95% 3.91% (.31)% 11.39%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $28,734 $28,037 $31,979 $30,542 $29,697 $9,210
Ratios to average net assets of:
Expenses, net of waivers/reimbursements 2.11%(e)(f) 2.11%(f) 2.10% 2.10% 2.11% 2.15%(e)
Expenses, before waivers/reimbursements 2.76%(e) 2.61% 2.44% 2.52% 2.73% 3.95%(e)
Net investment income 2.78%(e) 2.96% 3.72% 3.96% 2.72% 3.06%(e)
Portfolio turnover rate 89% 174% 267% 248% 133% 84%
Average commission rate (g) $.0386 $.0428 -- -- -- --
</TABLE>
See footnote summary on page 33.
32
ALLIANCE CONSERVATIVE INVESTORS FUND
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD
<TABLE>
<CAPTION>
CLASS C
--------------------------------------------------------------
SIX MONTHS
ENDED AUGUST 2,
OCTOBER 31, YEAR ENDED APRIL 30, 1993(H)
1997 ---------------------------------- TO APRIL 30,
(UNAUDITED) 1997 1996 1995 1994
------------ ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $11.49 $11.31 $10.52 $10.47 $11.12
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b) .17(c) .34(c) .41 .46 .18
Net realized and unrealized gain (loss)
on investment transactions .88 .46 .83 (.01) (.50)
Net increase (decrease) in net asset value from
operations 1.05 .80 1.24 .45 (.32)
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.10) (.37) (.45) (.40) (.15)
Distributions from net realized gains -0- (.25) -0- -0- (.18)
Total dividends and distributions (.10) (.62) (.45) (.40) (.33)
Net asset value, end of period $12.44 $11.49 $11.31 $10.52 $10.47
TOTAL RETURN
Total investment return based on net
asset value (d) 9.18% 7.10% 11.84% 4.01% (2.98)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $4,102 $4,150 $5,326 $4,419 $4,375
Ratios to average net assets of:
Expenses, net of waivers/reimbursements 2.11%(e)(f) 2.11%(f) 2.10% 2.10% 2.10%(e)
Expenses, before waivers/reimbursements 2.76%(e) 2.60% 2.45% 2.52% 2.69%(e)
Net investment income 2.79%(e) 2.96% 3.71% 3.97% 2.94%(e)
Portfolio turnover rate 89% 174% 267% 248% 133%
Average commission rate (g) $.0386 $.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) Annualized.
(f) Ratios reflect expenses grossed up for expense offset arrangement with the
Transfer Agent. For the six months ended October 31, 1997 and the year ended
April 30, 1997, the ratios of expenses net of waivers/reimbursements would have
been 1.71%, 2,41% and 2.41% and 1.55%, 2.26% and 2.26% for Class A, B and C
shares of the Growth Investors Fund, respectively, and 1.40%, 2.10% and 2.10%
and 1.40%, 2.10% and 2.10% for Class A, B and C shares of the Conservative
Investors Fund, respectively.
(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.
33
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.
The financial information included herein is taken from the records of the
Fund without audit by independent accountants who do not express an opinion
thereon.
34
THE ALLIANCE FAMILY OF MUTUAL FUNDS
_______________________________________________________________________________
FIXED INCOME
Alliance Bond Fund
U.S. Government Portfolio
Corporate Bond Portfolio
Alliance Global Dollar Government Fund
Alliance Global Strategic Income Trust
Alliance High Yield Fund
Alliance Mortgage Securities Income Fund
Alliance Limited Maturity Government Fund
Alliance Multi-Market Strategy Trust
Alliance North American Government Income Trust
Alliance Short-Term Multi-Market Trust
Alliance Short-Term U.S. Government Fund
Alliance World Income Trust
TAX-FREE INCOME
Alliance Municipal Income Fund
California Portfolio
Insured California Portfolio
Insured National Portfolio
National Portfolio
New York Portfolio
Alliance Municipal Income Fund II
Arizona Portfolio
Florida Portfolio
Massachusetts Portfolio
Michigan Portfolio
Minnesota Portfolio
New Jersey Portfolio
Ohio Portfolio
Pennsylvania Portfolio
Virginia Portfolio
MONEY MARKET
AFD Exchange Reserves
GROWTH
The Alliance Fund
Alliance Global Environment Fund
Alliance Global Small Cap Fund
Alliance Growth Fund
Alliance Premier Growth Fund
Alliance/Regent Sector Opportunity Fund
GROWTH & INCOME
Alliance Strategic Balanced Fund
Alliance Balanced Shares
Alliance Conservative Investors Fund
Alliance Growth & Income Fund
Alliance Growth Investors Fund
Alliance Income Builder Fund
Alliance Real Estate Investment Fund
Alliance Utility Income Fund
AGGRESSIVE GROWTH
Alliance Quasar Fund
Alliance Technology Fund
INTERNATIONAL
Alliance All-Asia Investment Fund
Alliance Greater China '97 Fund
Alliance International Fund
Alliance New Europe Fund
Alliance Worldwide Privatization Fund
CLOSED-END FUNDS
Alliance All-Market Advantage Fund
ACM Government Income Fund
ACM Government Opportunity Fund
ACM Government Securities Fund
ACM Government Spectrum Fund
ACM Managed Dollar Income Fund
ACM Managed Income Fund
ACM Municipal Securities Income Fund
Alliance World Dollar Government Fund
Alliance World Dollar Government Fund II
The Austria Fund
The Korean Investment Fund
The Spain Fund
The Southern Africa Fund
CASH MANAGEMENT SERVICES
ACM Institutional Reserves
Government Portfolio
Prime Portfolio
Tax-Free Portfolio
Trust Portfolio
Alliance Capital Reserves
Alliance Government Reserves
Alliance Insured Account
Alliance Money Reserves
Alliance Municipal Trust
California Portfolio
Connecticut Portfolio
Florida Portfolio
General Portfolio
Massachusetts Portfolio
New Jersey Portfolio
New York Portfolio
Virginia Portfolio
Alliance Treasury Reserves
Alliance Money Market Fund
Prime Portfolio
Government Portfolio
General Municipal Portfolio
35
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.
GICISR
