------------------------
LARGE AND MID CAP GROWTH
------------------------
Alliance Growth
Fund
Semi-Annual Report
April 30, 2000
AllianceCapital [LOGO](R)
The Investment Professional's Choice
<PAGE>
Investment Products Offered
---------------------------
o Are Not FDIC Insured
o May Lose Value
o Are Not Bank Guaranteed
---------------------------
<PAGE>
----------------------
LETTER TO SHAREHOLDERS
----------------------
LETTER TO SHAREHOLDERS
April 4, 2000
Dear Shareholder:
This report provides you with the market commentary and investment results for
the Alliance Growth Fund (the "Fund") for the semi-annual reporting period ended
April 30, 2000.
Investment Objective And Policies
Alliance Growth Fund seeks long-term growth of capital. The Fund invests
principally in a diversified portfolio of equity securities of companies with a
favorable outlook for earnings and whose rate of growth is expected to exceed
that of the United States economy over time.
Investment Results
The following table provides performance data for the Fund and its two
benchmarks, the Standard & Poor's ("S&P") 500 Stock Index and the Russell 1000
Stock Index, for the six- and 12-month periods ended April 30, 2000.
--------------------------------------------------------------------------------
INVESTMENT RESULTS*
Periods Ended April 30, 2000
---------------------------
Total Returns
---------------------------
6 Months 12 Months
--------------------------------------------------------------------------------
Alliance Growth
Fund
Class A 12.31% 16.70%
--------------------------------------------------------------------------------
Class B 11.89% 15.88%
--------------------------------------------------------------------------------
Class C 11.91% 15.88%
--------------------------------------------------------------------------------
S&P 500
Stock Index 7.18% 10.12%
--------------------------------------------------------------------------------
---------------------------
Total Returns
---------------------------
6 Months 12 Months
--------------------------------------------------------------------------------
Russell 1000
Stock Index 9.72% 12.45%
--------------------------------------------------------------------------------
* The Fund's investment results are total returns for the periods shown and
are based on the net asset value of each class of shares as of April 30,
2000. All fees and expenses related to the operation of the Fund have been
deducted, but no adjustment has been made for sales charges that may apply
when shares are purchased or redeemed. Returns for the Fund include the
reinvestment of any distributions paid during the period. Returns for the
Fund include the reinvestment of any distributions paid during each
period. Past performance is no guarantee of future results.
The unmanaged 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 unmanaged
Russell 1000 Stock Index is comprised of 1000 of the largest stocks
representing approximately 87% of the U.S. equity market. An investor
cannot invest directly in an index and its results are not indicative of
the performance for any specific investment, including Alliance Growth
Fund.
Additional investment results appear on pages 4-7.
--------------------------------------------------------------------------------
It was a volatile period for the stock market, but one that yielded another
positive result as the Fund's Class A
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ALLIANCE GROWTH FUND o 1
<PAGE>
----------------------
LETTER TO SHAREHOLDERS
----------------------
shares gained 12.31% compared to a gain of 7.18% for the S&P 500 Stock Index for
the six-month period ended April 30, 2000. At the start of the fiscal year last
November, the market had just begun to recover from a decline brought on by the
Federal Reserve's decision to begin raising interest rates. Strong growth
continued with little evidence of inflation. The Federal Reserve continued to
raise rates throughout this period and has now done so four separate times. In
recent weeks, some signs of inflationary pressure have appeared, and the stock
market has reacted negatively seeming at long last to believe that there may
indeed be a problem.
Performance Review
The Fund has continued to strongly emphasize investments in financial services,
technology and telecommunications. Financial service stocks have generally
underperformed the averages since the trend of interest rates turned up.
Technology, and especially telecommunications stocks, have been strong
performers for the Fund, and it is these holdings that have been primarily
responsible for the Fund's strong performance relative to the S&P 500 and the
Russell 1000 Index. In more recent weeks, in the context of a weak over all
market, the relative performance of these groups has reversed. The long
suffering financial stocks have rallied and the technology and
telecommunications stocks have declined sharply. We continue to like both of
these sectors on a long-term basis. We are especially convinced that the
extraordinarily rapid growth in data communications will continue for many years
and that telecommunications will be a rewarding area for investment.
Investment Outlook
For the past 12 months, the economy has continued to perform superbly. The
market has only recently begun to display serious concern that interest rates
may move to much higher levels as the Federal Reserve continues its attempt to
slow the economy. This has been an extraordinary economic cycle characterized by
a remarkably long period of strong, non-inflationary growth. The risk now is
that it may end with a burst of inflation and high interest rates. The hoped for
outcome is that the economy will slow without going into re cession, and that
inflation will remain restrained, the so-called "soft landing" scenario. At the
moment, the pessimistic view prevails in the stock market. Bear markets have
traditionally been accompanied by recessions, wars, oil embargoes, shortages,
high inflation or other such pressures. The U. S., and much of the rest of the
world, seem much too healthy to us to suggest that recent weakness will grow
into a bear
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2 o ALLIANCE GROWTH FUND
<PAGE>
----------------------
LETTER TO SHAREHOLDERS
----------------------
[PHOTO OMITTED] John D.
Carifa
[PHOTO OMITTED] Tyler J.
Smith
Portfolio Manager, Tyler J. Smith, has over 37 years of investment experience.
market. We remain focused on investing in those areas where we see the best
long-term combination of growth and value.
Thank you for your continued interest in the Alliance Growth Fund. We look
forward to reporting to you on market activity and your Fund's investment
performance in the coming periods.
Sincerely,
/s/ John D. Carifa
John D. Carifa
Chairman and President
/s/ Tyler J. Smith
Tyler J. Smith
Vice President
--------------------------------------------------------------------------------
ALLIANCE GROWTH FUND o 3
<PAGE>
------------------
PERFORMANCE UPDATE
------------------
PERFORMANCE UPDATE
ALLIANCE GROWTH FUND
GROWTH OF A $10,000 INVESTMENT
4/30/90 TO 4/30/00
[MOUNTAIN CHART OMITTED]
Alliance Growth Fund Class B: $65,559
Russell 1000 Stock Index: $56,667
S&P 500 Stock Index: $55,814
This chart illustrates the total value of an assumed $10,000 investment in
Alliance Growth Fund Class B shares (from 4/30/90 to 4/30/00) as compared to the
performance of appropriate broad-based indices. The chart assumes the
reinvestment of dividends and capital gains. Performance for Class A, Class C
and Advisor Class shares will vary from the results shown above due to
differences in expenses charged to these 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 unmanaged Standard & Poor's 500 Stock Index includes 500 U.S. stocks and is
a common measure of the performance of the overall U.S. stock market.
The unmanaged Russell 1000 Stock Index is comprised of 1000 of the largest
stocks representing approximately 87% of the U.S. equity market.
When comparing Alliance Growth Fund to the indices shown above, you should note
that no charges or expenses are reflected in the performance of the indices. An
investor cannot invest directly in an index and its results are not indicative
of any specific investment, including Alliance Growth Fund.
--------------------------------------------------------------------------------
4 o ALLIANCE GROWTH FUND
<PAGE>
------------------
PERFORMANCE UPDATE
------------------
PERFORMANCE UPDATE
ALLIANCE GROWTH FUND
HISTORY OF RETURNS
YEARLY PERIODS ENDED 4/30
[BAR CHART OMITTED]
Alliance Growth Fund - Yearly Periods Ended 4/30
--------------------------------------------------------------------------------
Alliance Growth Fund Russell 1000 Stock Index
--------------------------------------------------------------------------------
4/30/91* 32.40% 20.22%
4/30/92 23.61% 15.23%
4/30/93 18.89% 10.37%
4/30/94 15.66% 5.58%
4/30/95 9.22% 16.10%
4/30/96 29.86% 31.27%
4/30/97 14.12% 22.36%
4/30/98 44.90% 42.15%
4/30/99 20.27% 20.31%
4/30/00 16.70% 12.45%
Past performance in no guarantee of future results. The Fund's investment
results represent total returns for Class A shares and are based on the net
asset value. All fees and expenses related to the operation of the Fund have
been deducted. Returns for the Fund include the reinvestment of any
distributions paid during the period.
The unmanaged Russell 1000 Stock Index is comprised of 1000 of the largest
stocks representing approximately 87% of the U.S. equity market. An investor
cannot invest directly in an index and its results are not indicative of the
performance for any specific investment, including Alliance Growth Fund.
* The Fund's return for the period ended 4/30/91 is from the Fund's
inception date of 9/4/90. The Benchmark's return for the period ended
4/30/91 is from 8/31/90 through 4/30/91.
--------------------------------------------------------------------------------
ALLIANCE GROWTH FUND o 5
<PAGE>
-----------------
PORTFOLIO SUMMARY
-----------------
PORTFOLIO SUMMARY
April 30, 2000 (unaudited)
INCEPTION DATE
(Class A Shares)
9/4/90
PORTFOLIO STATISTICS
Assets ($mil): $8404
Median Market Capitalization ($mil): $50,127
SECTOR BREAKDOWN
36.38% Technology
14.68% Finance
9.70% Consumer Services
9.39% Utility
8.11% Financial Services
4.30% Consumer Non-cyclicals
4.30% Business Services [PIE CHART OMITTED]
3.15% Health Care
2.59% Multi-Industry Companies
2.29% Consumer Cyclicals
2.19% Energy
.30% Transportation
.45% Communications Equipment
2.17% Short-term
HOLDINGS BY ISSUER COUNTRY
82.76% United States
11.93% United Kingdom
.94% Australia
.66% Luxembourg
.44% Japan [PIE CHART OMITTED]
.36% Canada
.27% Finland
.24% France
.23% Netherlands
2.17% Short-term
All data as of April 30, 2000. Sector and country breakdowns may vary over time.
These breakdowns are expressed as a percentage of total investments.
--------------------------------------------------------------------------------
6 o ALLIANCE GROWTH FUND
<PAGE>
------------------
INVESTMENT RESULTS
------------------
INVESTMENT RESULTS
NAV AND SEC AVERAGE ANNUAL TOTAL RETURNS
AS OF APRIL 30, 2000
Class A Shares
--------------------------------------------------------------------------------
Without Sales Charge With Sales Charge
1 Year 16.70% 11.73%
5 Years 24.69% 23.61%
Since Inception* 23.04% 22.49%
Class B Shares
--------------------------------------------------------------------------------
Without Sales Charge With Sales Charge
1 Year 15.88% 11.96%
5 Years 23.82% 23.82%
10 Years(a) 18.30% 18.30%
Class C Shares
--------------------------------------------------------------------------------
Without Sales Charge With Sales Charge
1 Year 15.88% 14.90%
5 Years 23.83% 23.83%
Since Inception* 19.47% 19.47%
SEC AVERAGE ANNUAL TOTAL RETURNS
AS OF THE MOST RECENT QUARTER-END (MARCH 31, 2000)
Class A Class B Class C
--------------------------------------------------------------------------------
1 Year 22.24% 22.76% 25.80%
5 Years 25.19% 25.40% 25.40%
10 Years N/A 19.03%(a) N/A
Since Inception* 23.39% 22.03%(a) 20.71%
The Fund's investment results represent average annual total returns. The NAV
and SEC returns reflect reinvestment of dividends and/or capital gains
distributions in additional shares without (NAV) and with (SEC) 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. Total return for Advisor Class shares will differ due to
different expenses associated with that class.
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 Date: 9/4/90, Class A; 10/23/87, Class B; 8/2/93, Class C.
n/a: not applicable.
(a) Assumes conversion of Class B shares into Class A after 8 years.
--------------------------------------------------------------------------------
ALLIANCE GROWTH FUND o 7
<PAGE>
--------------------
TEN LARGEST HOLDINGS
--------------------
TEN LARGEST HOLDINGS
April 30, 2000 (unaudited)
Percent of
Company Value(a) Net Assets
--------------------------------------------------------------------------------
Vodafone AirTouch Group Plc (ADR) $ 805,690,839 9.6%
--------------------------------------------------------------------------------
AT&T Corp.-Liberty Media Group Cl.A 530,561,459 6.3
--------------------------------------------------------------------------------
American International Group, Inc. 285,679,229 3.4
--------------------------------------------------------------------------------
Sprint Corp. (Fon Group) 264,671,400 3.1
--------------------------------------------------------------------------------
Nextel Communications, Inc. Cl.A
(Common stocks and bond) 239,624,145 2.9
--------------------------------------------------------------------------------
Citigroup, Inc. 239,585,365 2.9
--------------------------------------------------------------------------------
SCI Systems, Inc. 235,926,360 2.8
--------------------------------------------------------------------------------
Bank of America Corp. 218,977,600 2.6
--------------------------------------------------------------------------------
MCI WorldCom, Inc. 197,125,835 2.3
--------------------------------------------------------------------------------
MBNA Corp. 194,953,795 2.3
--------------------------------------------------------------------------------
$3,212,796,027 38.2%
MAJOR PORTFOLIO CHANGES
Six Months Ended April 30, 2000 (unaudited)
------------------------------
Shares(b)
------------------------------
Purchases Bought Holdings 4/30/00
--------------------------------------------------------------------------------
Adelphia Communications Corp. 2,250,000 2,981,700
--------------------------------------------------------------------------------
Associates First Capital Corp. Cl.A 4,068,800 7,605,800
--------------------------------------------------------------------------------
AT&T Wireless Group 6,033,800 6,033,800
--------------------------------------------------------------------------------
Bank of America Corp. 1,850,000 4,555,200
--------------------------------------------------------------------------------
Boston Scientific Corp. 2,978,125 5,253,125
--------------------------------------------------------------------------------
BP Amoco Plc (ADR) 15,664,408 15,664,408
--------------------------------------------------------------------------------
MediaOne Group, Inc. 1,276,000 1,832,000
--------------------------------------------------------------------------------
Providian Financial Corp. 1,084,000 1,384,000
--------------------------------------------------------------------------------
US West, Inc. 2,568,000 2,568,000
--------------------------------------------------------------------------------
Vodafone AirTouch Group Plc (ADR) 176,032,540 176,032,540
--------------------------------------------------------------------------------
Sales Sold Holdings 4/30/00
--------------------------------------------------------------------------------
Applied Materials, Inc. 550,000 700,000
--------------------------------------------------------------------------------
Atlantic Richfield Co. 1,719,800 -0-
--------------------------------------------------------------------------------
AT&T Corp.-Liberty Media Group Cl.A 3,750,000 6,614,446
--------------------------------------------------------------------------------
CBS Corp. 1,990,000 741,700
--------------------------------------------------------------------------------
Citigroup, Inc. 1,300,000 4,049,698
--------------------------------------------------------------------------------
Colt Telecom Group Plc (ADR) 794,500 80,500
--------------------------------------------------------------------------------
Intel Corp. 800,000 1,450,000
--------------------------------------------------------------------------------
International Business Machines Corp. 1,747,500 1,048,500
--------------------------------------------------------------------------------
Mannesmann AG (ADR) 1,798,000 -0-
--------------------------------------------------------------------------------
Sterling Commerce, Inc. 4,853,144 -0-
--------------------------------------------------------------------------------
(a) Adjusted for market value of call options written.
(b) Adjusted for stock splits.
--------------------------------------------------------------------------------
8 o ALLIANCE GROWTH FUND
<PAGE>
------------------------
PORTFOLIO OF INVESTMENTS
------------------------
PORTFOLIO OF INVESTMENTS
April 30, 2000 (unaudited)
Company Shares Value
--------------------------------------------------------------------------------
Common & Preferred Stocks-100.5%
Technology-37.6%
Computer Hardware-1.9%
Dell Computer Corp.(a)(b) ........................ 900,000 $ 45,112,500
International Business Machines Corp.(b) ......... 1,048,500 117,038,813
------------
162,151,313
------------
Computer Software & Services-3.2%
Ceridian Corp.(a) ................................ 5,332,100 115,639,919
Computer Associates International, Inc. .......... 2,507,693 139,960,616
Ingram Micro, Inc. Cl.A(a)(b) .................... 603,500 11,881,406
------------
267,481,941
------------
Electronics-5.1%
Applied Materials, Inc.(a)(b) .................... 700,000 71,268,750
Flextronics International, Ltd.(a)(b) ............ 650,000 45,662,500
Micron Technology, Inc.(a)(b) .................... 510,000 71,017,500
SCI Systems, Inc.(a)(b) .......................... 4,476,400 238,368,300
------------
426,317,050
------------
Semi-Conductor Components-2.2%
Altera Corp.(a) .................................. 69,518 7,108,215
Intel Corp.(b) ................................... 1,450,000 183,878,125
------------
190,986,340
------------
Telecommunications-22.9%
Colt Telecom Group Plc (ADR)(a)
(United Kingdom) .............................. 80,500 13,745,375
Energis Plc (United Kingdom)(a) .................. 200,400 9,897,051
Equant NV(a) ..................................... 250,000 19,500,000
General Motors Corp. Class H ..................... 235,000 22,633,437
Global Telesystems Group, Inc.(a) ................ 6,428,572 93,616,080
Intermedia Communications, Inc.(a) ............... 8,820 359,415
pfd. Series D ................................. 414,600 21,351,900
Loral Space & Communications(b)(c) ............... 500,000 15,366,000
pfd. Series ................................... 8,628,000 84,662,250
Lucent Technologies, Inc. ........................ 100,000 6,218,750
MCI WorldCom, Inc.(a)(b) ......................... 4,523,817 205,550,935
Millicom International Cellular, SA
(Luxembourg)(a) ............................... 1,052,400 56,303,400
Nextel Communications, Inc. Cl.A(a)(b) ........... 2,116,800 231,657,300
Nextel STRYPES Trust ............................. 360,000 33,120,000
Nextlink Communications, Inc.(a)(b) .............. 200,000 16,862,500
pfd. Series ................................... 65,000 11,821,875
Nokia Corp. (ADR) (Finland)(b) ................... 400,000 22,750,000
NTL, Inc.(b) ..................................... 2,546,156 194,780,934
Qwest Communications International, Inc.(a)(b) ... 300,000 13,012,500
--------------------------------------------------------------------------------
ALLIANCE GROWTH FUND o 9
<PAGE>
------------------------
PORTFOLIO OF INVESTMENTS
------------------------
Company Shares Value
--------------------------------------------------------------------------------
Vodafone AirTouch Group Plc (ADR)
(United Kingdom)(a)(b) .................. 176,032,540 $ 805,777,639
VoiceStream Wireless Corp.(a)(b) ........... 315,100 31,194,900
Western Wireless Corp. Cl.A(a)(b) .......... 250,000 12,421,875
--------------
1,922,604,116
--------------
Miscellaneous-2.3%
Sanmina Corp.(a)(b) ........................ 2,300,200 138,155,762
Solectron Corp.(a)(b) ...................... 1,131,400 52,963,663
--------------
191,119,425
--------------
3,160,660,185
--------------
Finance-14.9%
Banking-Money Centers-4.5%
Chase Manhattan Corp. ...................... 1,956,604 140,997,775
Citigroup, Inc.(b) ......................... 4,049,698 240,703,925
--------------
381,701,700
--------------
Banking-Regional-2.7%
Bank of America Corp.(b) ................... 4,555,200 223,204,800
--------------
Insurance-3.4%
American International Group, Inc. ......... 2,604,483 285,679,229
--------------
Miscellaneous-4.3%
Associates First Capital Corp. Cl.A ........ 7,605,800 168,753,688
MBNA Corp. ................................. 7,339,437 194,953,795
--------------
363,707,483
--------------
1,254,293,212
--------------
Consumer Services-9.9%
Broadcasting & Cable-6.4%
AT&T Corp.-Liberty Media Group CI.A(a) ..... 6,614,446 330,308,897
Comcast Corp. Cl.A(a)(b) ................... 1,713,000 68,627,063
MediaOne Group, Inc.(a) .................... 1,832,000 138,545,000
--------------
537,480,960
--------------
Entertainment & Leisure-2.1%
Carnival Corp. Cl.A(b) ..................... 829,500 20,633,812
Cendant Corp.(a)(b) ........................ 7,565,504 116,792,468
MGM Grand, Inc.(a)(d) ...................... 1,510,000 40,015,000
--------------
177,441,280
--------------
Retail-General Merchandise-1.4%
Home Depot, Inc.(b) ........................ 2,007,500 112,545,469
Wal-Mart Stores, Inc.(b) ................... 100,000 5,537,500
--------------
118,082,969
--------------
833,005,209
--------------
Utility-9.6%
Telephone-9.6%
AT&T Corp.(b) .............................. 247,000 11,531,813
AT&T Wireless Group ........................ 6,033,800 191,950,262
Bell Atlantic Corp.(b) ..................... 750,000 44,437,500
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10 o ALLIANCE GROWTH FUND
<PAGE>
------------------------
PORTFOLIO OF INVESTMENTS
------------------------
Company Shares Value
--------------------------------------------------------------------------------
BellSouth Corp.(b) ........................... 850,000 $ 41,384,375
Cable & Wireless Plc (United Kingdom) ........ 3,070,000 50,953,088
SBC Communications, Inc.(b) .................. 500,000 21,906,250
Sprint Corp.(Fon Group) ...................... 4,303,600 264,671,400
US West, Inc. ................................ 2,568,000 182,809,500
------------
809,644,188
------------
Financial Services-8.4%
Banking & Credit-3.1%
Providian Financial Corp.(b) ................. 1,384,000 121,878,500
The CIT Group, Inc. .......................... 8,181,478 138,573,783
------------
260,452,283
------------
Banking-Money Centers-0.5%
The Bank of Tokyo-Mitsubishi, Ltd. (ADR)
(Japan)(a) ................................ 2,902,400 37,549,800
------------
Banking-Regional-0.5%
Bank One Corp.(b) ............................ 1,375,000 41,937,500
------------
Insurance-2.3%
AFLAC, Inc.(b) ............................... 1,170,000 57,110,625
John Hancock Financial Services, Inc.(a) ..... 1,783,100 32,541,575
Metlife, Inc.(a) ............................. 1,600,000 26,500,000
PMI Group, Inc. .............................. 1,640,950 79,483,516
------------
195,635,716
------------
Real Estate-1.0%
Entertainment Properties Trust ............... 239,400 3,261,825
JP Realty, Inc. .............................. 755,300 13,548,194
Kroger Equity, Inc. .......................... 1,762,571 30,844,992
Macerich Co. ................................. 1,016,400 23,567,775
Summit Properties, Inc. ...................... 691,700 13,790,769
------------
85,013,555
------------
Miscellaneous-1.0%
Household International, Inc.(b) ............. 1,930,500 80,598,375
------------
701,187,229
------------
Consumer Noncyclicals-4.6%
Drugs-1.4%
Merck & Co., Inc.(b) ......................... 1,352,400 93,991,800
Pfizer, Inc.(b) .............................. 450,000 18,956,250
SICOR, Inc.(c) ............................... 68,500 2,393,733
------------
115,341,783
------------
Hospital Supplies & Services-2.5%
Boston Scientific Corp.(a)(b) ................ 5,253,125 139,207,812
McKesson HBOC, Inc.(b) ....................... 4,154,000 70,098,750
------------
209,306,562
------------
Retail-Food-0.6%
Kroger Co.(b) ................................ 2,730,000 50,675,625
------------
--------------------------------------------------------------------------------
ALLIANCE GROWTH FUND o 11
<PAGE>
------------------------
PORTFOLIO OF INVESTMENTS
------------------------
Company Shares Value
--------------------------------------------------------------------------------
Tobacco-0.1%
Loews Corp. .................................. 248,000 $ 13,671,000
--------------
388,994,970
--------------
Business Services-4.4%
Printing, Publishing & Broadcasting-4.4%
Adelphia Communications Corp.(a)(b) .......... 2,981,700 147,780,506
Cablevision Systems Corp. CI.A(a)(b) ......... 1,290,000 87,316,875
CBS Corp.(a)(b) .............................. 741,700 43,574,875
Gannett Co., Inc. ............................ 150,000 9,581,250
News Corp., Ltd. (ADR) (Australia)(b) ........ 1,560,900 80,288,794
UnitedGlobalCom, Inc. Cl.A(a) ................ 39,000 2,071,875
--------------
370,614,175
--------------
Health Care-3.3%
Drugs-3.1%
Bristol-Myers Squibb Co.(b) .................. 2,164,000 113,474,750
IMS Health, Inc.(b) .......................... 3,517,000 60,008,813
Schering-Plough Corp.(b) ..................... 1,973,000 79,536,562
Warner-Lambert Co.(b) ........................ 100,000 11,381,250
--------------
264,401,375
--------------
Medical Products-0.2%
Medtronic, Inc. .............................. 240,600 12,496,163
--------------
276,897,538
--------------
Multi-Industry Companies-2.7%
Honeywell International, Inc. ................ 1,883,312 105,465,472
Tyco International, Ltd.(b) .................. 2,580,224 118,529,040
--------------
223,994,512
--------------
Consumer Cyclicals-2.6%
Airlines-0.2%
Continental Airlines, Inc. Cl.B(a) ........... 400,200 16,008,000
--------------
Retail-General-2.4%
Gap, Inc. (b) ................................ 750,100 27,566,175
Tandy Corp.(b) ............................... 1,500,000 85,500,000
The Limited, Inc.(b) ......................... 1,895,725 85,663,073
--------------
198,729,248
--------------
214,737,248
--------------
Energy-2.2%
Oil & Gas Services-2.2%
BP Amoco Plc (ADR) (United Kingdom) .......... 15,664,408 135,235,422
Gulf Canada Resources, Ltd. (Canada)(a) ...... 7,500,100 30,937,913
Total, SA (ADR) (France)(a) .................. 271,000 20,494,375
--------------
186,667,710
--------------
Transportation-0.3%
Railroad-0.3%
Burlington Northern Santa Fe Corp. ........... 1,056,000 25,476,000
--------------
Total Common & Preferred Stocks
(cost $6,562,956,696) ..................... 8,446,172,176
--------------
--------------------------------------------------------------------------------
12 o ALLIANCE GROWTH FUND
<PAGE>
------------------------
PORTFOLIO OF INVESTMENTS
------------------------
Principal
Amount
(000)
Company or Contracts(e) Value
--------------------------------------------------------------------------------
Convertible Bonds-0.5%
Communication Equipment-0.5%
Global Telesystems Group, Inc.
5.75%, 7/01/10 ........................ $ 38,525 $ 25,570,969
Nextel Communications, Inc. Cl.A
4.75%, 7/01/07(c) ..................... 3,500 8,518,125
NTL, Inc.
7.00%, 12/15/08 ....................... 2,255 4,572,012
---------------
Total Convertible Bonds
(cost $37,730,679) .................... 38,661,106
---------------
Short-Term Investment-2.2%
U.S. Government Agency-2.2%
Federal Home Loan Bank
5.88%, 5/01/00
(amortized cost $184,300,000) ......... 184,300 184,300,000
---------------
Total Investments-103.2%
(cost $6,784,987,375) ................. 8,669,133,282
---------------
Outstanding Call Options Written-(1.9%)
Adelphia Communications Corp.
expiring May 2000
@ $46.13 .............................. (1,000) (419,830)
@ $46.44 .............................. (1,000) (424,020)
@ $49.00 .............................. (1,000) (233,500)
@ $54.75 .............................. (1,000) (15,000)
expiring June 2000
@ $46.74 .............................. (1,000) (500,860)
AFLAC, Inc.
expiring May 2000
@ $41.50 .............................. (1,500) (1,183,290)
expiring June 2000
@ $44.19 .............................. (1,000) (593,740)
@ $46.25 .............................. (1,000) (477,810)
Applied Materials, Inc.
expiring July 2000
@ $92.75 .............................. (2,000) (3,761,840)
AT&T Corp.
expiring May 2000
@ $51.50 .............................. (1,000) (50,650)
@ $52.00 .............................. (2,000) (79,580)
@ $52.13 .............................. (1,000) (137,300)
@ $52.75 .............................. (1,500) (90,195)
@ $52.75 .............................. (1,000) (24,280)
@ $52.81 .............................. (1,000) (76,340)
@ $53.00 .............................. (2,000) (126,320)
@ $53.63 .............................. (2,000) (171,720)
@ $54.75 .............................. (1,500) (175,770)
@ $54.88 .............................. (1,500) (140,340)
--------------------------------------------------------------------------------
ALLIANCE GROWTH FUND o 13
<PAGE>
------------------------
PORTFOLIO OF INVESTMENTS
------------------------
Contracts(e) Value
--------------------------------------------------------------------------------
expiring June 2000
@ $52.25 .......................... (1,200) $ (313,704)
@ $54.00 .......................... (800) (166,984)
@ $56.88 .......................... (1,000) (78,000)
@ $57.25 .......................... (1,000) (128,800)
@ $57.88 .......................... (1,000) (62,070)
@ $58.63 .......................... (2,000) (114,840)
@ $59.38 .......................... (2,000) (125,400)
expiring July 2000
@ $46.75 .......................... (1,000) (581,350)
@ $49.54 .......................... (1,500) (585,870)
Banc One Corp.
expiring June 2000
@ $31.88 .......................... (1,000) (146,070)
@ $32.11 .......................... (1,500) (268,050)
@ $36.00 .......................... (2,000) (150,980)
expiring July 2000
@ $31.24 .......................... (2,000) (512,340)
Bank of America Corp.
expiring May 2000
@ $45.00 .......................... (2,000) (840,260)
@ $45.06 .......................... (2,000) (799,300)
@ $45.60 .......................... (2,000) (710,600)
@ $45.75 .......................... (2,000) (728,960)
@ $46.06 .......................... (2,000) (551,720)
expiring July 2000
@ $51.25 .......................... (2,000) (596,360)
Bell Atlantic Corp.
expiring June 2000
@ $58.25 .......................... (2,000) (726,960)
@ $60.38 .......................... (2,000) (503,100)
@ $64.13 .......................... (1,500) (303,270)
BellSouth Corp.
expiring May 2000
@ $45.75 .......................... (2,500) (1,198,525)
expiring June 2000
@ $44.88 .......................... (2,500) (1,319,000)
@ $44.88 .......................... (2,000) (1,006,220)
@ $51.00 .......................... (1,500) (312,750)
Boston Scientific Corp.
expiring April 2000
@ $18.20 .......................... (2,000) (1,759,680)
expiring May 2000
@ $17.75 .......................... (2,000) (1,750,560)
@ $18.00 .......................... (1,000) (849,550)
@ $18.19 .......................... (2,000) (1,664,240)
@ $20.88 .......................... (1,000) (574,280)
@ $21.13 .......................... (1,000) (551,240)
--------------------------------------------------------------------------------
14 o ALLIANCE GROWTH FUND
<PAGE>
------------------------
PORTFOLIO OF INVESTMENTS
------------------------
Contracts(e) Value
--------------------------------------------------------------------------------
@ $21.30 ............................ (2,000) $(1,052,760)
@ $21.31 ............................ (2,000) (1,093,140)
@ $21.63 ............................ (1,000) (522,000)
@ $21.63 ............................ (1,000) (521,950)
@ $22.25 ............................ (1,500) (719,970)
expiring June 2000
@ $20.83 ............................ (1,000) (628,260)
@ $20.88 ............................ (1,000) (603,870)
@ $21.00 ............................ (1,000) (616,890)
@ $21.25 ............................ (2,000) (1,143,420)
@ $21.25 ............................ (1,000) (595,000)
@ $21.37 ............................ (1,000) (572,060)
@ $21.56 ............................ (1,500) (871,500)
@ $21.63 ............................ (1,000) (562,840)
expiring July 2000
@ $22.25 ............................ (1,000) (538,760)
@ $23.38 ............................ (1,000) (437,330)
@ $24.88 ............................ (1,500) (576,075)
@ $25.25 ............................ (1,500) (541,950)
@ $27.25 ............................ (1,500) (405,105)
@ $27.39 ............................ (2,000) (502,340)
Bristol-Myers Squibb Co.
expiring May 2000
@ $52.75 ............................ (1,500) (166,500)
expiring July 2000
@ $49.63 ............................ (1,000) (628,290)
@ $63.13 ............................ (1,000) (98,860)
Cablevision Systems Corp.
expiring May 2000
@ $63.50 ............................ (1,000) (465,890)
@ $65.50 ............................ (1,000) (301,600)
expiring June 2000
@ $63.88 ............................ (1,000) (746,690)
Carnival Corp.
expiring May 2000
@ $23.00 ............................ (2,500) (520,000)
@ $26.00 ............................ (1,000) (21,730)
expiring June 2000
@ $23.94 ............................ (750) (174,525)
@ $24.50 ............................ (2,000) (436,000)
CBS Corp.
expiring May 2000
@ $59.63 ............................ (1,000) (325,380)
@ $60.50 ............................ (1,000) (221,410)
expiring June 2000
@ $61.88 ............................ (1,000) (213,800)
expiring July 2000
@ $59.00 ............................ (1,000) (472,260)
--------------------------------------------------------------------------------
ALLIANCE GROWTH FUND o 15
<PAGE>
------------------------
PORTFOLIO OF INVESTMENTS
------------------------
Contracts(e) Value
-------------------------------------------------------------------------------
Cendant Corp.
expiring May 2000
@ $17.00 .............................. (1,500) $ (109,035)
@ $17.00 .............................. (1,500) (26,475)
@ $17.00 .............................. (2,000) (1,740)
@ $17.13 .............................. (1,500) (55,665)
@ $17.25 .............................. (1,000) (66,660)
@ $17.44 .............................. (1,000) (26,240)
@ $17.63 .............................. (1,000) (52,170)
expiring June 2000
@ $17.63 .............................. (2,000) (120,560)
@ $17.75 .............................. (2,000) (153,240)
@ $17.75 .............................. (875) (66,001)
@ $17.75 .............................. (125) (9,429)
@ $17.88 .............................. (1,000) (48,860)
@ $18.13 .............................. (1,000) (41,280)
@ $18.38 .............................. (1,000) (91,010)
@ $18.50 .............................. (1,000) (41,550)
@ $18.63 .............................. (2,000) (114,320)
@ $19.38 .............................. (1,000) (25,000)
expiring July 2000
@ $15.13 .............................. (1,000) (191,990)
@ $15.44 .............................. (1,000) (174,570)
Citigroup, Inc.
expiring May 2000
@ $48.00 .............................. (1,000) (1,118,560)
Comcast Corp.
expiring May 2000
@ $37.75 .............................. (2,000) (709,000)
@ $41.50 .............................. (1,500) (160,080)
expiring June 2000
@ $38.95 .............................. (1,000) (420,360)
expiring July 2000
@ $36.88 .............................. (1,000) (587,000)
Dell Computer Corp.
expiring April 2000
@ $42.38 .............................. (1,500) (1,162,500)
expiring May 2000
@ $43.00 .............................. (1,500) (1,078,185)
@ $46.25 .............................. (1,000) (437,080)
@ $57.00 .............................. (1,000) (47,000)
@ $58.88 .............................. (1,000) (87,850)
Flextronics International, Ltd.
expiring April 2000
@ $62.23 .............................. (1,500) (1,203,285)
expiring May 2000
@ $68.50 .............................. (500) (285,130)
@ $68.75 .............................. (2,000) (1,133,260)
expiring June 2000
@ $62.00 .............................. (1,000) (1,199,610)
--------------------------------------------------------------------------------
16 o ALLIANCE GROWTH FUND
<PAGE>
------------------------
PORTFOLIO OF INVESTMENTS
------------------------
Contracts(e) Value
--------------------------------------------------------------------------------
expiring July 2000
@ $68.56 .................................. (1,000) $ (921,440)
@ $68.56 .................................. (500) (463,830)
Gap, Inc.
expiring May 2000
@ $43.00 .................................. (2,500) (37,500)
expiring July 2000
@ $37.75 .................................. (1,500) (567,465)
Home Depot, Inc.
expiring May 2000
@ $64.00 .................................. (500) (29,120)
expiring July 2000
@ $60.37 .................................. (1,500) (504,645)
Household International, Inc.
expiring June 2000
@ $36.12 .................................. (1,000) (643,740)
@ $36.37 .................................. (2,000) (1,323,560)
IMS Health, Inc.
expiring June 2000
@ $17.00 .................................. (2,000) (392,840)
@ $17.63 .................................. (1,000) (169,950)
Ingram Micro, Inc.
expiring May 2000
@ $10.81 .................................. (1,000) (888,790)
@ $10.88 .................................. (1,100) (970,200)
@ $13.25 .................................. (1,000) (659,210)
@ $13.75 .................................. (1,000) (607,810)
@ $14.38 .................................. (1,500) (804,375)
Intel Corp.
expiring May 2000
@ $113.09 ................................. (2,000) (2,992,200)
@ $117.49 ................................. (2,000) (2,326,960)
@ $120.69 ................................. (1,000) (914,730)
@ $128.00 ................................. (1,500) (900,825)
expiring June 2000
@ $141.88 ................................. (1,000) (489,670)
expiring July 2000
@ $113.94 ................................. (1,000) (2,002,450)
International Business Machines Corp.
expiring June 2000
@ $128.00 ................................. (1,000) (278,390)
Kroger Co.
expiring June 2000
@ $21.75 .................................. (1,000) (83,000)
--------------------------------------------------------------------------------
ALLIANCE GROWTH FUND o 17
<PAGE>
------------------------
PORTFOLIO OF INVESTMENTS
------------------------
Contracts(e) Value
--------------------------------------------------------------------------------
Loral Space & Communications
expiring May 2000
@ $11.50 .............................. (1,000) $ (37,040)
@ $11.63 .............................. (1,000) (30,500)
@ $12.25 .............................. (1,000) (21,160)
expiring June 2000
@ $9.31 ............................... (1,500) (255,615)
@ $9.38 ............................... (1,000) (157,720)
@ $9.50 ............................... (1,000) (159,930)
@ $10.19 .............................. (1,000) (122,000)
@ $10.25 .............................. (430) (51,136)
@ $10.44 .............................. (1,000) (108,280)
@ $10.56 .............................. (1,000) (115,760)
@ $10.75 .............................. (1,000) (100,790)
@ $11.06 .............................. (570) (50,684)
MCI WorldCom, Inc.
expiring May 2000
@ $42.88 .............................. (2,000) (732,300)
@ $43.50 .............................. (1,000) (326,000)
@ $43.70 .............................. (1,000) (374,090)
@ $43.85 .............................. (1,000) (390,590)
@ $44.00 .............................. (1,000) (323,430)
expiring June 2000
@ $41.50 .............................. (1,500) (826,500)
@ $42.00 .............................. (1,000) (592,350)
@ $42.00 .............................. (1,000) (507,920)
@ $42.13 .............................. (2,000) (1,182,640)
@ $42.75 .............................. (1,000) (467,710)
@ $42.88 .............................. (2,000) (800,140)
@ $44.25 .............................. (2,000) (821,900)
@ $45.20 .............................. (1,000) (420,660)
expiring July 2000
@ $41.88 .............................. (1,000) (658,870)
McKesson HBOC, Inc.
expiring May 2000
@ $18.38 .............................. (1,500) (38,895)
@ $18.63 .............................. (1,500) (46,335)
@ $18.88 .............................. (1,000) (6,000)
@ $19.00 .............................. (1,500) (54,135)
@ $19.00 .............................. (1,000) (49,000)
@ $19.06 .............................. (1,500) (48,285)
@ $19.38 .............................. (1,000) (1,000)
expiring June 2000
@ $19.00 .............................. (2,000) (118,000)
@ $19.13 .............................. (2,000) (89,120)
@ $19.63 .............................. (1,000) (41,020)
@ $20.25 .............................. (1,000) (39,750)
@ $20.50 .............................. (1,000) (48,360)
@ $20.75 .............................. (1,000) (60,450)
@ $20.80 .............................. (1,000) (33,980)
@ $21.63 .............................. (1,000) (20,160)
--------------------------------------------------------------------------------
18 o ALLIANCE GROWTH FUND
<PAGE>
------------------------
PORTFOLIO OF INVESTMENTS
------------------------
Contracts(e) Value
--------------------------------------------------------------------------------
expiring July 2000
@ $16.63 .............................. (1,500) $ (297,090)
@ $18.13 .............................. (1,500) (204,000)
@ $18.75 .............................. (1,000) (108,330)
Merck & Co., Inc.
expiring June 2000
@ $67.25 .............................. (1,000) (544,000)
Micron Technology, Inc.
expiring May 2000
@ $106.02 ............................. (1,500) (5,021,955)
@ $120.75 ............................. (1,000) (2,150,080)
@ $129.45 ............................. (1,000) (2,105,160)
expiring June 2000
@ $110.80 ............................. (600) (2,181,642)
expiring July 2000
@ $110.31 ............................. (1,000) (3,769,760)
News Corp., Ltd.
expiring May 2000
@ $55.50 .............................. (1,000) (15,000)
@ $57.69 .............................. (500) (18,125)
@ $58.50 .............................. (500) (13,740)
@ $63.00 .............................. (1,000) (6,000)
expiring June 2000
@ $61.00 .............................. (1,000) (73,560)
Nextel Communications, Inc.
expiring May 2000
@ $133.23 ............................. (2,000) (161,820)
@ $133.75 ............................. (1,000) (182,000)
@ $134.13 ............................. (2,000) (124,540)
@ $136.42 ............................. (2,000) (82,920)
Nextlink Communications, Inc.
expiring June 2000
@ $102.50 ............................. (1,000) (518,390)
expiring July 2000
@ $74.38 .............................. (550) (1,039,483)
@ $74.95 .............................. (450) (836,789)
Nokia Corp. (ADR) (Finland)
expiring June 2000
@ $46.88 .............................. (3,200) (3,707,808)
@ $47.75 .............................. (800) (864,424)
NTL, Inc.
expiring May 2000
@ $102.65 ............................. (1,250) (139,200)
expiring June 2000
@ $98.13 .............................. (1,000) (290,000)
@ $99.00 .............................. (1,250) (335,000)
--------------------------------------------------------------------------------
ALLIANCE GROWTH FUND o 19
<PAGE>
------------------------
PORTFOLIO OF INVESTMENTS
------------------------
Contracts(e) Value
--------------------------------------------------------------------------------
Pfizer, Inc.
expiring June 2000
@ $40.00 .................................. (1,500) $ (587,490)
expiring July 2000
@ $38.50 .................................. (1,500) (811,620)
Providian Financial Corp.
expiring May 2000
@ $80.50 .................................. (1,000) (1,081,150)
expiring June 2000
@ $84.63 .................................. (1,000) (894,590)
@ $86.50 .................................. (1,500) (1,124,745)
@ $87.00 .................................. (1,062) (1,001,179)
@ $87.00 .................................. (438) (412,916)
@ $87.44 .................................. (1,000) (870,000)
expiring July 2000
@ $89.50 .................................. (1,000) (1,071,500)
@ $90.25 .................................. (1,000) (874,600)
@ $90.25 .................................. (1,000) (866,340)
Qwest Communications International, Inc.
expiring June 2000
@ $46.13 .................................. (1,500) (413,160)
Sanmina Corp.
expiring May 2000
@ $61.75 .................................. (2,000) (133,820)
SBC Communications, Inc.
expiring June 2000
@ $42.75 .................................. (2,000) (770,060)
@ $46.63 .................................. (1,000) (302,060)
@ $46.94 .................................. (2,000) (531,160)
Schering-Plough Corp.
expiring May 2000
@ $34.56 .................................. (2,000) (1,152,240)
@ $35.25 .................................. (2,500) (1,270,000)
@ $35.25 .................................. (1,000) (497,000)
@ $37.44 .................................. (1,500) (667,920)
expiring June 2000
@ $35.25 .................................. (1,000) (649,070)
SCI Systems, Inc.
expiring May 2000
@ $36.00 .................................. (1,000) (1,726,000)
expiring June 2000
@ $54.66 .................................. (2,000) (715,940)
Solectron Corp.
expiring May 2000
@ $44.00 .................................. (1,000) (445,400)
expiring July 2000
@ $46.19 .................................. (2,000) (1,211,520)
--------------------------------------------------------------------------------
20 o ALLIANCE GROWTH FUND
<PAGE>
------------------------
PORTFOLIO OF INVESTMENTS
------------------------
Contracts(e) Value
--------------------------------------------------------------------------------
Tandy Corp.
expiring April 2000
@ $36.63 ................................ (1,000) $(2,067,500)
expiring May 2000
@ $37.25 ................................ (1,000) (1,989,010)
@ $37.75 ................................ (1,000) (1,939,060)
@ $39.25 ................................ (1,000) (1,794,870)
@ $46.88 ................................ (1,000) (1,082,270)
expiring July 2000
@ $54.63 ................................ (500) (395,495)
@ $58.57 ................................ (1,000) (533,900)
The Limited, Inc.
expiring May 2000
@ $29.88 ................................ (2,000) (3,065,580)
@ $33.63 ................................ (2,000) (2,316,800)
@ $38.75 ................................ (1,000) (718,030)
expiring June 2000
@ $37.75 ................................ (1,000) (790,810)
@ $38.94 ................................ (1,000) (658,100)
@ $39.13 ................................ (1,000) (652,450)
@ $48.00 ................................ (500) (93,700)
@ $49.00 ................................ (500) (76,785)
expiring July 2000
@ $47.25 ................................ (2,000) (558,720)
Tyco International, Ltd.
expiring May 2000
@ $38.00 ................................ (2,000) (1,594,660)
@ $47.13 ................................ (1,000) (189,210)
@ $47.50 ................................ (1,000) (264,000)
@ $47.88 ................................ (1,000) (230,760)
expiring June 2000
@ $49.81 ................................ (1,000) (283,450)
@ $52.25 ................................ (1,000) (178,960)
expiring July 2000
@ $44.50 ................................ (1,000) (571,240)
Vodafone AirTouch Group Plc (ADR)
(United Kingdom)
expiring May 2000
@ $3.70 ................................. (5,000) (21,642)
@ $3.73 ................................. (5,000) (65,158)
VoiceStream Wireless Corp.
expiring May 2000
@ $129.99 ............................... (1,500) (152,295)
Wal-Mart Stores, Inc.
expiring June 2000
@ $62.75 ................................ (1,000) (217,290)
--------------------------------------------------------------------------------
ALLIANCE GROWTH FUND o 21
<PAGE>
------------------------
PORTFOLIO OF INVESTMENTS
------------------------
Contracts(e) Value
--------------------------------------------------------------------------------
Warner Lambert Co.
expiring May 2000
@ $86.07 .............................. (1,000) $ (2,766,540)
Western Wireless Corp.
expiring June 2000
@ $45.50 .............................. (1,000) (794,560)
expiring July 2000
@ $47.00 .............................. (1,500) (1,183,170)
---------------
Total Outstanding Call Options Written
(premiums received $153,694,100) ...... (158,427,484)
---------------
Total Investments Net of Outstanding
Call Options Written-101.3%
(cost $6,631,293,275) ................. 8,510,705,798
Other assets less liabilities-(1.3%) ..... (106,350,772)
---------------
Net Assets-100% .......................... $ 8,404,355,026
===============
(a) Non-income producing security.
(b) Security on which options are written (shares subject to call have an
aggregate market value of $5,047,102,827).
(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 April 30,
2000, these securities amounted to $66,292,858 or 0.79% of net assets.
(d) Illiquid security, valued at fair value (see Notes A & F)
(e) One contract relates to 100 shares.
Glossary of Terms:
ADR - American Depositary Receipt
STRYPES - Structured yield product exchangeable for common stock
See notes to financial statements.
--------------------------------------------------------------------------------
22 o ALLIANCE GROWTH FUND
<PAGE>
---------------------------------
STATEMENT OF ASSETS & LIABILITIES
---------------------------------
STATEMENT OF ASSETS & LIABILITIES
April 30, 2000 (unaudited)
Assets
Investments in securities, at value (cost $6,784,987,375) .. $ 8,669,133,282
Cash ....................................................... 1,519,678
Receivable for investment securities sold .................. 152,557,273
Receivable for shares of beneficial interest sold .......... 8,835,603
Dividends and interest receivable .......................... 6,688,243
Receivable for foreign exchange contracts .................. 5,799,590
---------------
Total assets ............................................... 8,844,533,669
---------------
Liabilities
Payable for investment securities purchased ................ 262,155,529
Outstanding call options written, at value
(premiums received $153,694,100) ........................ 158,427,484
Payable for foreign exchange contracts ..................... 5,890,290
Payable for shares of beneficial interest redeemed ......... 5,126,499
Advisory fee payable ....................................... 4,661,510
Distribution fee payable ................................... 1,357,651
Accrued expenses ........................................... 2,559,680
---------------
Total liabilities .......................................... 440,178,643
---------------
Net Assets ................................................. $ 8,404,355,026
---------------
Composition Of Net Assets
Shares of beneficial interest, at par ...................... $ 1,900
Additional paid-in capital ................................. 5,585,218,724
Accumulated net investment loss ............................ (35,409,907)
Accumulated net realized gain on investment
transactions ............................................ 975,260,329
Net unrealized appreciation of investments, options and
foreign currency denominated assets and liabilities ..... 1,879,283,980
---------------
$ 8,404,355,026
===============
Calculation Of Maximum Offering Price
Class A Shares
Net asset value and redemption price per share
($1,677,918,966 / 30,198,980 shares of beneficial
interest issued and outstanding) ........................ $55.56
Sales charge--4.25% of public offering price ............... 2.47
------
Maximum offering price ..................................... $58.03
------
Class B Shares
Net asset value and offering price per share
($5,640,865,520 / 134,272,495 shares of beneficial
interest issued and outstanding) ........................ $42.01
------
Class C Shares
Net asset value and offering price per share
($1,044,948,317 / 24,854,835 shares of beneficial
interest issued and outstanding) ........................ $42.04
------
Advisor Class Shares
Net asset value, redemption and offering price per share
($40,622,223 / 721,911 shares of beneficial interest
issued and outstanding) ................................. $56.27
------
See notes to financial statements.
--------------------------------------------------------------------------------
ALLIANCE GROWTH FUND o 23
<PAGE>
-----------------------
STATEMENT OF OPERATIONS
-----------------------
STATEMENT OF OPERATIONS
Six Months Ended April 30, 2000 (unaudited)
Investment Income
Dividends (net of foreign taxes
withheld of $166,099) .................. $ 27,481,519
Interest .................................. 7,952,613 $ 35,434,132
---------------
Expenses
Advisory fee .............................. 28,059,610
Distribution fee - Class A ................ 2,380,744
Distribution fee - Class B ................ 28,268,734
Distribution fee - Class C ................ 5,049,047
Transfer agency ........................... 5,466,630
Printing .................................. 745,151
Custodian ................................. 417,475
Audit and legal ........................... 125,770
Registration .............................. 119,374
Trustees' fees ............................ 11,271
Miscellaneous ............................. 146,854
---------------
Total expenses ............................ 70,790,660
---------------
Net investment loss ....................... (35,356,528)
---------------
Realized and Unrealized Gain (Loss)
on Investments and Foreign Currency
Transactions
Net realized gain on investment
transactions ........................... 1,010,215,367
Net realized gain on written options
transactions ........................... 15,817,387
Net realized loss on foreign currency
transactions ........................... (76,560)
Net change in unrealized appreciation /
depreciation of:
Investments .......................... (95,794,857)
Written options ...................... 35,417,445
Foreign currency denominated assets
and liabilities .................... (4,717)
---------------
Net gain on investments and foreign
currency transactions .................. 965,574,065
---------------
Net Increase in Net Assets
from Operations ........................ $ 930,217,537
===============
See notes to financial statements.
--------------------------------------------------------------------------------
24 o ALLIANCE GROWTH FUND
<PAGE>
----------------------------------
STATEMENT OF CHANGES IN NET ASSETS
----------------------------------
STATEMENT OF CHANGES
IN NET ASSETS
Six Months
Ended Year Ended
April 30, 2000 October 31,
(unaudited) 1999
--------------- ---------------
Increase (Decrease) in Net Assets
from Operations
Net investment loss ...................... $ (35,356,528) $ (62,346,346)
Net realized gain on investments, options
and foreign currency transactions ..... 1,025,956,194 1,277,437,169
Net change in unrealized appreciation/
depreciation of investments, options,
and foreign currency denominated
assets and liabilities ................ (60,382,129) 496,585,304
--------------- ---------------
Net increase in net assets from
operations ............................ 930,217,537 1,711,676,127
Distributions to Shareholders from:
Net realized gain on investments
Class A ............................... (190,225,942) (78,504,438)
Class B ............................... (878,876,396) (410,079,547)
Class C ............................... (154,838,516) (69,316,205)
Advisor Class ......................... (18,003,861) (13,813,033)
Transactions in Shares of
Beneficial Interest
Net increase ............................. 942,764,245 501,072,018
--------------- ---------------
Total increase ........................... 631,037,067 1,641,034,922
Net Assets
Beginning of year ........................ 7,773,317,959 6,132,283,037
--------------- ---------------
End of period ............................ $ 8,404,355,026 $ 7,773,317,959
=============== ===============
See notes to financial statements.
--------------------------------------------------------------------------------
ALLIANCE GROWTH FUND o 25
<PAGE>
-----------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
NOTES TO FINANCIAL STATEMENTS
April 30, 2000 (unaudited)
NOTE A
Significant Accounting Policies
Alliance Growth Fund (the "Fund"), a series of The Alliance Portfolios (the
"Trust"), is registered under the Investment Company Act of 1940 as a
diversified, open-end investment company. The Fund offers Class A, Class B,
Class C and Advisor Class 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 may 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. Advisor Class shares are
sold without any initial or contingent deferred sales charge and are not subject
to ongoing distribution expenses. Advisor Class shares are offered to investors
participating in fee-based programs and to certain retirement plan accounts. All
four 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 financial
statements have been prepared in conformity with generally accepted accounting
principles which require management to make certain estimates and assumptions
that affect the reported amounts of assets and liabilities in the financial
statements and amounts of income and expenses during the reporting period.
Actual results could differ from those estimates. The following is a summary of
significant accounting policies followed by the Fund.
1. Security Valuation
Portfolio securities traded on a national securities ex change, on a foreign
securities exchange (other than foreign securities exchanges whose operations
are similar to those of the United States over-the-counter market) or on the
Nasdaq Stock Market, Inc. are generally valued at the last reported sale price
or if no sale occurred, at the mean of the closing bid and asked prices on that
day. Readily marketable securities traded in the over-the-counter market,
securities listed on a foreign securities exchange whose operations are similar
to the U.S. over-the-counter market, and securities listed on a national
securities exchange whose primary market is believed to be over-the-counter (but
excluding securities traded on the Nasdaq Stock Market, Inc.), are valued at the
mean of the current bid and asked prices. U.S. government and fixed income
securities which mature in 60 days or less are valued at amortized cost, unless
this method does not represent fair value. Securities for which current market
quotations are not readily available are valued at their fair value as
determined in good faith by, or in accordance with procedures adopted by, the
Board of Trustees.
--------------------------------------------------------------------------------
26 o ALLIANCE GROWTH FUND
<PAGE>
-----------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
Fixed income securities may be valued on the basis of prices obtained from a
pricing service when such prices are believed to reflect the fair market value
of such securities. Listed put and call options purchased by the Fund are valued
at the last sale price. If there has been no sale on that day, such securities
will be valued at the closing bid prices on that day. Over-the-counter written
options are valued using prices provided by brokers.
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 realized foreign currency gains and losses represent foreign exchange gains
and losses from sales and maturities of debt securities, currency gains and
losses realized between the trade and settlement dates on security transactions
and the difference between the amounts of dividends and interest recorded on the
Fund's books and the U.S. dollar equivalent amounts actually received or paid.
The Fund does not isolate the effect of fluctuations in foreign currency
exchange rates when determining the gain or loss upon the sale of equity
securities. 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 (depreciation) of investments,
options and foreign currency denominated assets and liabilities.
3. Taxes
It is the Fund's policy to meet the requirements of the Internal Revenue Code
applicable to regulated investment companies and to distribute all of its
investment company taxable income and net realized gains, if 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. The Fund accretes discounts and amortizes premiums as
adjustments to interest income. Investment gains and losses are determined on
the identified cost basis.
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 the Fund's
Class B and Class C shares bear higher distribution and transfer agent fees than
Class A shares and the Advisor Class shares have no distribution fees. Expenses
attributable to the Fund are charged to the Fund. Expenses of the Trust are
charged to the Fund in proportion to net assets.
--------------------------------------------------------------------------------
ALLIANCE GROWTH FUND o 27
<PAGE>
-----------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
6. Dividends and Distributions
Dividends and distributions to shareholders are recorded on the ex-dividend
date. Income dividends 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 Fund pays Alliance
Capital Management L.P. (the "Adviser") an advisory fee equal to the annualized
rate of .75% of the Fund's average daily net assets up to $3 billion, .70% of
the next $1 billion of the Fund's average daily net assets, .65% of the next $1
billion of the Fund's average daily net assets, and .60% of the Fund's average
daily net assets over $5 billion. Such fee is accrued daily and paid monthly.
The Fund compensates Alliance Fund Services, Inc., a wholly-owned subsidiary of
the Adviser, under a Transfer Agency Agreement for providing personnel and
facilities to perform transfer agency services for the Fund. Such compensation
amounted to $4,153,844 for the six months ended April 30, 2000.
For the six months ended April 30, 2000, the Fund's expenses were reduced by
$293,919 under an expense offset arrangement with Alliance Fund Services, Inc.
Alliance Fund Distributors, Inc., (the "Distributor"), a wholly-owned subsidiary
of the Adviser, serves as the Distributor of the Fund's shares. The Distributor
has advised the Fund that it has received front-end sales charges of $347,275
from the sales of Class A shares and $64,674, $2,471,678, and $82,159 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
April 30, 2000.
Brokerage commissions paid on investment transactions for the six months ended
April 30, 2000 amounted to $3,964,098, none of which was paid to brokers
utilizing the services of the Pershing Division of Donaldson Lufkin & Jenrette
Securities Corp. ("DLJ"), an affiliate of the Adviser, and of which $351,092 was
paid to DLJ directly.
Accrued expenses includes $17,966 owed to a trustee and a former trustee under
the Trust's deferred compensation plan.
NOTE C
Distribution Services Agreement
The Fund has adopted a Distribution Services Agreement (the "Agreement")
pursuant to Rule 12b-1 under the Investment Company Act of 1940. Under the
Agreement, the Fund pays distribution and servicing fees to the Distributor at
an annual rate of up to .50% of the Fund's average daily net assets attributable
to Class A shares and
--------------------------------------------------------------------------------
28 o ALLIANCE GROWTH FUND
<PAGE>
-----------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
1% of the average daily net assets attributable to both Class B and Class C
shares. There are no distribution and servicing fees on the Advisor Class
shares. The fees are accrued daily and paid monthly. The Trustees currently
limit payments under the Class A plan to .30% of the Fund's average daily net
assets attributable to Class A shares.
The Fund is not obligated under the Agreement to pay any distribution services
fee in excess of the amounts set forth above. The purpose of the payments to the
Distributor under the Agreement is to compensate the Distributor for its
distribution services with respect to the sale of the Fund's shares. Since the
Distributor's compensation is not directly tied to its expenses, the amount of
compensation received by it under the Agreement during any year may be more or
less than its actual expenses. For this reason, the Agreement is characterized
by the staff of the Commission as being of the "compensation" variety.
In the event that the Agreement is terminated or not continued, no distribution
services fees (other than current amounts accrued but not yet paid) would be
owed by the Fund to the Distributor with respect to the relevant class.
The Agreement also provides that the Adviser may use its own resources to
finance the distribution of the Fund's shares.
NOTE D
Investment Transactions
Purchases and sales of investment securities (excluding short-term investments
and U.S. government securities) aggregated $3,229,296,780 and $3,398,696,597,
respectively, for the six months ended April 30, 2000. There were no purchases
and sales in U.S. government and government agency obligations for the six
months ended April 30, 2000.
At April 30, 2000, the cost of investments for federal income tax purposes was
substantially the same as the cost for financial reporting purposes.
Accordingly, gross unrealized appreciation of investments was $2,449,612,948 and
gross unrealized depreciation of in vestments was $565,467,041 resulting in net
unrealized appreciation of $1,884,145,907 excluding foreign currency
transactions.
1. Option Transactions
For hedging and investment purposes, the Fund purchases and writes (sells) put
and call options on U.S. and foreign securities and foreign currencies that are
traded on U.S. and foreign securities exchanges and over-the-counter markets.
The risk associated with purchasing an option is that the Fund pays a premium
whether or not the option is exercised. Additionally, the Fund bears the risk of
loss of the premium and change in market value should the counterparty not
perform under the contract. Put and call options purchased are accounted for in
the same manner as portfolio securities. The cost of securities
--------------------------------------------------------------------------------
ALLIANCE GROWTH FUND o 29
<PAGE>
-----------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
acquired through the exercise of call options is increased by premiums paid. The
proceeds from securities sold through the exercise of put options are decreased
by the premiums paid.
When the Fund writes an option, the premium received by the Fund is recorded as
a liability and is subsequently adjusted to the current market value of the
option written. Premiums received from writing options which expire unexercised
are recorded by the Fund on the expiration date as realized gains from option
transactions. The difference between the premium received and the amount paid on
effecting a closing purchase transaction, including brokerage commissions, is
also treated as a realized gain, or if the premium received is less than the
amount paid for the closing purchase transaction, as a realized loss. If a call
option is exercised, the premium received is added to the proceeds from the sale
of the underlying security or currency in determining whether the Fund has
realized a gain or loss. If a put option is exercised, the premium received
reduces the cost basis of the security or currency purchased by the Fund. The
risk involved in writing an option is that, if the option was exercised the
underlying security could then be purchased or sold by the Fund at a
disadvantageous price.
Transactions in options written for the six months ended April 30, 2000 were as
follows:
Number of
Contracts Premiums
------------- -------------
Options outstanding at beginning of year ... 267,350 $ 103,671,026
Options written ............................ 842,103 389,549,876
Options terminated in closing
purchase transactions ................... (149,000) (72,580,971)
Options expired ............................ (314,522) (122,613,280)
Options exercised .......................... (297,481) (144,332,551)
------------- -------------
Options outstanding at April 30, 2000 ...... 348,450 $ 153,694,100
============= =============
2. Forward Exchange Currency Contracts
The Fund enters into forward exchange currency contracts in order to hedge its
exposure to changes in foreign currency exchange rates on foreign portfolio
holdings and to hedge certain firm purchase and sale commitments denominated in
foreign currencies. 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 on foreign currency transactions.
Fluctuations in the value of forward exchange currency contracts are recorded
for financial reporting purposes as unrealized gains or losses by the Fund.
--------------------------------------------------------------------------------
30 o ALLIANCE GROWTH FUND
<PAGE>
-----------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
The Fund's custodian will place and maintain cash not available for investment
or other liquid assets 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, 2000, the Fund had no outstanding forward exchange currency
contracts.
NOTE E
Shares of Beneficial Interest
There is an unlimited number of $0.00001 par value shares of beneficial interest
authorized, divided into four classes, designated Class A, Class B, Class C and
Advisor Class Shares. Transactions in shares of beneficial interest were as
follows:
<TABLE>
<CAPTION>
---------------------------------------- ----------------------------------------
Shares Amount
---------------------------------------- ----------------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
April 30, 2000 October 31, April 30, 2000 October 31,
(unaudited) 1999 (unaudited) 1999
----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A
Shares sold 28,054,353 14,313,089 $ 1,570,106,741 $ 659,034,500
-----------------------------------------------------------------------------------------------------------------------------------
Shares issued in
reinvestment of
distributions 3,237,661 1,103,597 173,959,672 47,609,915
-----------------------------------------------------------------------------------------------------------------------------------
Shares converted
from Class B 1,946,898 1,525,332 109,319,934 70,157,128
-----------------------------------------------------------------------------------------------------------------------------------
Shares redeemed (28,641,218) (13,387,711) (1,607,430,994) (615,070,017)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase 4,597,694 3,554,307 $ 245,955,353 $ 161,731,526
===================================================================================================================================
Class B
Shares sold 9,261,522 20,547,117 $ 393,856,589 $ 776,085,446
-----------------------------------------------------------------------------------------------------------------------------------
Shares issued in
reinvestment of
distributions 19,875,618 7,651,345 809,732,554 268,634,078
-----------------------------------------------------------------------------------------------------------------------------------
Shares converted
to Class A (2,565,480) (1,871,621) (109,319,934) (70,157,128)
-----------------------------------------------------------------------------------------------------------------------------------
Shares redeemed (10,896,357) (13,986,411) (465,031,445) (518,571,785)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase 15,675,303 12,340,430 $ 629,237,764 $ 455,990,611
===================================================================================================================================
Class C
Shares sold 8,494,428 4,951,688 $ 362,429,029 $ 187,545,992
-----------------------------------------------------------------------------------------------------------------------------------
Shares issued in
reinvestment of
distributions 3,526,763 1,279,996 143,785,949 44,966,581
-----------------------------------------------------------------------------------------------------------------------------------
Shares redeemed (7,954,918) (3,903,263) (340,117,427) (145,672,105)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase 4,066,273 2,328,421 $ 166,097,551 $ 86,840,468
===================================================================================================================================
</TABLE>
--------------------------------------------------------------------------------
ALLIANCE GROWTH FUND o 31
<PAGE>
-----------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
<TABLE>
<CAPTION>
---------------------------------------- ----------------------------------------
Shares Amount
---------------------------------------- ----------------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
April 30, 2000 October 31, April 30, 2000 October 31,
(unaudited) 1999 (unaudited) 1999
----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Advisor Class
Shares sold 174,881 2,358,835 $ 9,854,262 $ 106,555,081
-----------------------------------------------------------------------------------------------------------------------------------
Shares issued in
reinvestment of
distributions 310,054 149,933 16,851,437 6,490,605
-----------------------------------------------------------------------------------------------------------------------------------
Shares redeemed (2,272,333) (1,123,061) (125,232,122) (52,697,763)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase
(decrease) (1,787,398) 1,385,707 $ (98,526,423) $ 60,347,923
===================================================================================================================================
</TABLE>
NOTE F
Illiquid Security
Date acquired Cost
--------------- ---------------
MGM Grand, Inc. ........................ 4/14/00 $40,015,000
The security shown above is illiquid and has been valued at fair value in
accordance with the procedures described in Note A. The value of this security
at April 30, 2000 was $40,015,000, representing .48% of net assets.
NOTE G
Bank Borrowing
A number of open-end mutual funds managed by the Adviser, including the Fund,
participate in a $750 million revolving credit facility (the "Facility")
intended to provide short-term financing if necessary, subject to certain
restrictions, in connection with abnormal redemption activity. Commitment fees
related to the Facility are paid by the participating funds and are included in
miscellaneous expenses in the statement of operations. The Fund did not utilize
the Facility during the six months ended April 30, 2000.
--------------------------------------------------------------------------------
32 o ALLIANCE GROWTH FUND
<PAGE>
--------------------
FINANCIAL HIGHLIGHTS
--------------------
FINANCIAL HIGHLIGHTS
Selected Data For A Share Of Beneficial Interest Outstanding Throughout Each
Period
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------
Class A
-------------------------------------------------------------------------------------------
Six Months
Ended
April 30, Year Ended October 31,
2000 ------------------------------------------------------------------------
(unaudited) 1999 1998 1997 1996 1995
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of year ............. $56.32 $47.17 $43.95 $34.91 $29.48 $25.08
-------------------------------------------------------------------------------------------
Income From Investment
Operations
Net investment income (loss) .... (.08)(a) (.15)(a) (.05)(a) (.10)(a) .05 .12
Net realized and unrealized
gain on investments,
options and foreign
currency transactions ......... 6.76 13.01 6.18 10.17 6.20 4.80
-------------------------------------------------------------------------------------------
Net increase in net asset
value from operations ......... 6.68 12.86 6.13 10.07 6.25 4.92
-------------------------------------------------------------------------------------------
Less: Dividends and
Distributions
Dividends from net
investment income ............. -0- -0- -0- -0- (.19) (.11)
Distributions from net
realized gains ................ (7.44) (3.71) (2.91) (1.03) (.63) (.41)
-------------------------------------------------------------------------------------------
Total dividends and
distributions ................. (7.44) (3.71) (2.91) (1.03) (.82) (.52)
-------------------------------------------------------------------------------------------
Net asset value, end of period .. $55.56 $56.32 $47.17 $43.95 $34.91 $29.48
===========================================================================================
Total Return
Total investment return based
on net asset value(b) ......... 12.31% 28.69% 14.56% 29.54% 21.65% 20.18%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted) ............... $1,677,919 $1,441,962 $1,008,093 $783,110 $499,459 $285,161
Ratios to average net assets of:
Expenses ...................... 1.13%(c) 1.18% 1.22%(d) 1.26%(d) 1.30% 1.35%
Net investment income (loss) .. (.28)%(c) (.28)% (.11)% (.25)% .15% .56%
Portfolio turnover rate ......... 38% 62% 61% 48% 46% 61%
</TABLE>
See footnote summary on page 36.
--------------------------------------------------------------------------------
ALLIANCE GROWTH FUND o 33
<PAGE>
--------------------
FINANCIAL HIGHLIGHTS
--------------------
Selected Data For A Share Of Beneficial Interest Outstanding Throughout Each
Period
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------
Class B
------------------------------------------------------------------------------------------------
Six Months
Ended
April 30, Year Ended October 31,
2000 ------------------------------------------------------------------------------
(unaudited) 1999 1998 1997 1996 1995
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of year ............ $44.40 $38.15 $36.31 $29.21 $24.78 $21.21
------------------------------------------------------------------------------------------------
Income From Investment
Operations
Net investment loss ............ (.21)(a) (.42)(a) (.31)(a) (.31)(a) (.12) (.02)
Net realized and unrealized
gain on investments,
options and foreign
currency transactions ........ 5.26 10.38 5.06 8.44 5.18 4.01
------------------------------------------------------------------------------------------------
Net increase in net asset
value from operations ........ 5.05 9.96 4.75 8.13 5.06 3.99
------------------------------------------------------------------------------------------------
Less: Dividends and
Distributions
Dividends from net
investment income ............ -0- -0- -0- -0- -0- (.01)
Distributions from net
realized gains ............... (7.44) (3.71) (2.91) (1.03) (.63) (.41)
------------------------------------------------------------------------------------------------
Total dividends and
distributions ................ (7.44) (3.71) (2.91) (1.03) (.63) (.42)
------------------------------------------------------------------------------------------------
Net asset value, end of period . $42.01 $44.40 $38.15 $36.31 $29.21 $24.78
================================================================================================
Total Return
Total investment return based
on net asset value(b) ....... 11.89% 27.79% 13.78% 28.64% 20.82% 19.33%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted) .............. $5,640,866 $5,265,153 $4,230,756 $3,578,806 $2,498,097 $1,502,020
Ratios to average net assets of:
Expenses ..................... 1.84%(c) 1.90% 1.94%(d) 1.96%(d) 1.99% 2.05%
Net investment loss .......... (1.00)%(c) (1.00)% (.83)% (.94)% (.54)% (.15)%
Portfolio turnover rate ........ 38% 62% 61% 48% 46% 61%
</TABLE>
See footnote summary on page 36.
--------------------------------------------------------------------------------
34 o ALLIANCE GROWTH FUND
<PAGE>
--------------------
FINANCIAL HIGHLIGHTS
--------------------
Selected Data For A Share Of Beneficial Interest Outstanding Throughout Each
Period
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------
Class C
---------------------------------------------------------------------------------------
Six Months
Ended
April 30, Year Ended October 31,
2000 --------------------------------------------------------------------
(unaudited) 1999 1998 1997 1996 1995
---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of year ................. $44.42 $38.17 $36.33 $29.22 $24.79 $21.22
---------------------------------------------------------------------------------------
Income From Investment
Operations
Net investment loss ................. (.21)(a) (.42)(a) (.31)(a) (.31)(a) (.12) (.03)
Net realized and unrealized
gain on investments,
options and foreign
currency transactions ............. 5.27 10.38 5.06 8.45 5.18 4.02
---------------------------------------------------------------------------------------
Net increase in net asset
value from operations ............. 5.06 9.96 4.75 8.14 5.06 3.99
---------------------------------------------------------------------------------------
Less: Dividends and
Distributions
Dividends from net
investment income ................. -0- -0- -0- -0- -0- (.01)
Distributions from net
realized gains .................... (7.44) (3.71) (2.91) (1.03) (.63) (.41)
---------------------------------------------------------------------------------------
Total dividends and
distributions ..................... (7.44) (3.71) (2.91) (1.03) (.63) (.42)
---------------------------------------------------------------------------------------
Net asset value, end of period ...... $42.04 $44.42 $38.17 $36.33 $29.22 $24.79
=======================================================================================
Total Return
Total investment return based
on net asset value(b) ............ 11.91% 27.78% 13.76% 28.66% 20.81% 19.32%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted) ................... $1,044,948 $923,483 $718,688 $599,449 $403,478 $226,662
Ratios to average net assets of:
Expenses .......................... 1.84%(c) 1.90% 1.93%(d) 1.97%(d) 2.00% 2.05%
Net investment loss ............... (.99)%(c) (1.00)% (.83)% (.95)% (.55)% (.15)%
Portfolio turnover rate ............. 38% 62% 61% 48% 46% 61%
</TABLE>
See footnote summary on page 36.
--------------------------------------------------------------------------------
ALLIANCE GROWTH FUND o 35
<PAGE>
--------------------
FINANCIAL HIGHLIGHTS
--------------------
Selected Data For A Share Of Beneficial Interest Outstanding Throughout Each
Period
<TABLE>
<CAPTION>
------------------------------------------------------------------------
Advisor Class
------------------------------------------------------------------------
Six Months
Ended October 2,
April 30, Year Ended October 31, 1996(e) to
2000 --------------------------------------- October 31,
(unaudited) 1999 1998 1997 1996
------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ......... $56.88 $47.47 $44.08 $34.91 $34.14
------------------------------------------------------------------------
Income From Investment Operations
Net investment income (loss) ................. (.01)(a) .02(a) .08(a) (.05)(a) -0-
Net realized and unrealized gain on
investments, options and foreign
currency transactions ...................... 6.84 13.10 6.22 10.25 .77
------------------------------------------------------------------------
Net increase in net asset value from
operations ................................. 6.83 13.12 6.30 10.20 .77
------------------------------------------------------------------------
Less: Distributions
Distributions from net realized gains ........ (7.44) (3.71) (2.91) (1.03) -0-
------------------------------------------------------------------------
Net asset value, end of period ............... $56.27 $56.88 $47.47 $44.08 $34.91
========================================================================
Total Return
Total investment return based on
net asset value(b) ......................... 12.47% 29.08% 14.92% 29.92% 2.26%
Ratios/Supplemental Data
Net assets, end of period (000's omitted) .... $40,622 $142,720 $174,745 $101,205 $946
Ratios to average net assets of:
Expenses ................................... .82%(c) .88% .93%(d) .98%(d) 1.26%(c)
Net investment income (loss) ............... (.03)%(c) .03% .17% (.12)% .50%(c)
Portfolio turnover rate ...................... 38% 62% 61% 48% 46%
</TABLE>
(a) Based on average shares outstanding.
(b) Total investment return is calculated assuming an initial investment made
at the net asset value at the beginning of the period, reinvestment of all
dividends and distributions at net asset value during the period, and
redemption on the last day of the period. Initial sales charges or
contingent deferred sales charges are not reflected in the calculation of
total investment return. Total investment return calculated for a period
of less than one year is not annualized.
(c) Annualized.
(d) Ratios reflect expenses grossed up for expense offset arrangement with the
transfer agent. For the years ended October 31, 1998 and 1997 the ratios
of expenses to average net assets were 1.21% and 1.25% for Class A shares,
1.93% and 1.95% for Class B shares, 1.92% and 1.95% for Class C shares and
.92% and .96% for Advisor Class shares, respectively.
(e) Commencement of distribution.
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36 o ALLIANCE GROWTH FUND
<PAGE>
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GLOSSARY OF INVESTMENT TERMS
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GLOSSARY OF INVESTMENT TERMS
benchmark
A standard by which a fund's performance can be measured. A benchmark is usually
an unmanaged index, such as the Standard & Poor's 500 Stock Index or the Lehman
Brothers Aggregate Bond Index.
equity
Another term for stock.
index
A compilation of securities of similar types of companies that is used to
measure the investment performance of securities within that specific market. An
index is often used as a benchmark for a mutual fund. An investor cannot invest
directly in an index.
net asset value (NAV)
The value of a mutual fund's total assets, minus its liabilities, divided by the
number of shares outstanding.
share
A unit which represents ownership in a mutual fund or stock.
Federal Reserve Board
The seven-member board that oversees Federal Reserve Banks, establishes monetary
policy and monitors the country's economic state.
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ALLIANCE GROWTH FUND o 37
<PAGE>
ALLIANCE CAPITAL
ALLIANCE CAPITAL
The Investment Professional's Choice
Alliance Capital is a leading global investment management firm with over $394
billion in assets under management. In recognition of our far-reaching
investment capabilities, Alliance Capital has been selected by employee benefit
plans for 28 of the FORTUNE 100 companies and public retirement funds in 33
states as well as by hundreds of foundations, endowments and foreign
institutions. By sharing this institutional money management experience with
millions of mutual fund investors as well, Alliance stands out as a "manager of
choice" for thousands of investment professionals around the world.
At Alliance Capital, we place a premium on investment research. We carefully
select securities based on our proprietary research, conducted by over 276
investment professionals in 22 investment offices worldwide. Our commitment to
this process means that our mutual fund shareholders have their portfolios
managed by the same experienced analysts and portfolio managers who manage the
pension funds of some of America's largest institutional investors.
All information on Alliance Capital is as of 3/31/00.
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38 o ALLIANCE GROWTH FUND
<PAGE>
--------------------------------
ALLIANCE CAPITAL AT YOUR SERVICE
--------------------------------
ALLIANCE CAPITAL AT YOUR SERVICE
At Alliance Capital, shareholder satisfaction is among our top priorities.
That's why we provide our shareholders with a wide variety of products and
time-saving services to meet their needs.
o Low Minimum Investments
You can begin investing in Alliance Capital funds with as little as $250
(except for Alliance Select Investor Series Premier Portfolio and Alliance
Select Investor Series Technology Portfolio, which generally have a
$10,000 minimum initial investment) and may make subsequent investments of
$50 or more.
o Automatic Reinvestment
You may choose to reinvest fund dividend and capital-gains distributions
automatically at no charge.
o Automatic Investment Program
Build your investment account by having money automatically transferred
from your bank account on a regular basis.
o Dividend Direction Plans
You may cross-invest dividends from one fund into the same class of shares
in any other fund without incurring a sales charge. This can be a good way
to diversify your assets.
o The Alliance Advance
A quarterly newsletter discussing investment strategies, economic news and
other matters that could affect your mutual fund investment.
o Auto Exchange
You may choose to automatically exchange money from one Alliance Capital
fund to another on a regular basis. This can be a good way to dollar cost
average*, helping you to invest with discipline.
o Systematic Withdrawals
Regular checks for specified amounts can be sent to you or to your
brokerage or bank account.
o A Choice of Purchase Plans
Most funds are available in A, B, and C Class shares. Many funds are also
available in Advisor Class shares.
o Telephone Transaction
Purchases, transfers and redemptions can be made by calling (800)
221-5672. Our knowledgeable representatives are available to assist you
Monday through Friday from 8:30 a.m. to 8:00 p.m. Eastern Standard Time.
o Alliance Answer: 24-Hour Information
For your convenience, our computerized audio response system is available
to you 24-hours a day by calling (800) 251-0539. Using any touch tone
phone, you can hear share prices, get account balances, review details of
your last transaction, obtain dividend information, order
statements/checkbooks, review fund objectives, literature and Watchlist
information, order additional copies of statements and request additional
year-end tax forms (available from February 1 to May 31).
o Alliance Capital on the World Wide Web at www.alliancecapital.com. Here,
you can access updated account information, make additional investments,
request more information, exchange between Alliance funds and view fund
performance, press releases and articles.
* Dollar cost averaging does not assure a profit nor protect against loss in
a declining market. Since this strategy involves continuous investments in
securities, regardless of fluctuating prices, investors should consider
their financial ability to invest during periods of low price levels.
--------------------------------------------------------------------------------
ALLIANCE GROWTH FUND o 39
<PAGE>
--------
TRUSTEES
--------
TRUSTEES
John D. Carifa, Chairman and President
Ruth Block(1)
David H. Dievler(1)
John H. Dobkin(1)
William H. Foulk, Jr.(1)
Brenton W. Harries(1)
Dr. James M. Hester(1)
Clifford L. Michel(1)
Donald J. Robinson(1)
OFFICERS
Bruce Calvert, Senior Vice President
Kathleen A. Corbet, Senior Vice President
Wayne D. Lyski, Senior Vice President
Tyler J. Smith, Vice President
Edmund P. Bergan, Jr., Clerk
Mark D. Gersten, Treasurer & Chief Financial Officer
Vincent S. Noto, Controller & Chief Accounting Officer
Custodian
State Street Bank & Trust Company
225 Franklin Street
Boston, MA 02110
Principal Underwriter
Alliance Fund Distributors, Inc.
1345 Avenue of the Americas
New York, NY 10105
Legal Counsel
Ropes & Gray
One International Place
Boston, MA 02110-2624
Transfer Agent
Alliance Fund Services, Inc.
P.O. Box 1520
Secaucus, NJ 07096-1520
Toll-Free 1-(800)-221-5672
Independent Accountants
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, NY 10036-2798
(1) Member of the Audit Committee.
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40 o ALLIANCE GROWTH FUND
<PAGE>
--------------------------------
ALLIANCE CAPITAL FAMILY OF FUNDS
--------------------------------
ALLIANCE CAPITAL FAMILY OF FUNDS
Domestic Equity Funds
Balanced Shares
Conservative Investors Fund
Disciplined Value Fund
Growth & Income Fund
Growth Fund
Growth Investors Fund
Health Care Fund
Premier Growth Fund
Quasar Fund
Real Estate Investment Fund
Technology Fund
The Alliance Fund
Utility Income Fund
Global & International Equity Funds
All-Asia Investment Fund
Global Small Cap Fund
Greater China '97 Fund
International Fund
International Premier Growth Fund
New Europe Fund
Worldwide Privatization Fund
Select Investor Series
Premier Portfolio
Technology Portfolio
Fixed Income Funds
Corporate Bond Portfolio
Global Dollar Government Fund
Global Strategic Income Trust
High Yield Fund
Limited Maturity Government Fund
Mortgage Securities Income Fund
Multi-Market Strategy Trust
North American Government Income Trust
Quality Bond Portfolio
U.S. Government Portfolio
Municipal Income Funds
National
Insured National
Arizona
California
Insured California
Florida
Massachusetts
Michigan
Minnesota
New Jersey
New York
Ohio
Pennsylvania
Virginia
Alliance also offers AFD Exchange Reserves, which serves as the money market
fund exchange vehicle for the Alliance mutual funds.
To obtain a prospectus for any Alliance Capital fund, call your investment
professional, or call Alliance at (800) 227-4618.
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ALLIANCE GROWTH FUND o 41
<PAGE>
Alliance Growth Fund
1345 Avenue of the Americas
New York, NY 10105
(800) 221-5672
-----------------
BULK RATE
U.S. POSTAGE
PAID
New York, NY
Permit No. 7131
-----------------
ALLIANCE CAPITAL [LOGO] (R)
The Investment Professional's Choice
(R) These registered service marks used under license from the owner, Alliance
Capital Management L.P.
GROWTHSR400
