ALLIANCE PORTFOLIOS, N-30D, 2000-07-07

ALLIANCE PORTFOLIOS
N-30D, 2000-07-07

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ASSET ALLOCATION
--------------------------------------------------------------------------------

Alliance Growth
Investors Fund
and
Alliance Conservative
Investors Fund

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
June 5, 2000

Dear Shareholder:

This report reviews the investment results and market activity for Alliance
Growth Investors Fund and Alliance Conservative Investors Fund for the annual
reporting period ended April 30, 2000.

Investment Objectives and Policies for Alliance Growth Investors Fund

Alliance Growth Investors Fund seeks to provide highest total return with
reasonable risk through investment in a mix of equity and fixed income
securities. Normally, the Fund will hold approximately 70% of its total assets
in equity securities.

Investment Results for Alliance Growth Investors Fund

In the six- and 12-month periods ended April 30, 2000, the Class A shares of the
Alliance Growth Investors Fund returned 7.09% and 9.19%, respectively. The
corresponding returns for the composite benchmark were 5.45% and 7.46%,
respectively.

While both fixed-income and equity investments performed well relative to the
benchmark over the six-month period under review, the latter was the chief
contributor to outperformance. Stock selection in European markets added value
while U.S. equity investments performed approximately in-line with the market in
a period of high volatility.

For the 12-month period under review, good stock selection in all regions
contributed to the outperformance, as did the decision to hold bond investments
as a shorter duration than that of the benchmarks.

--------------------------------------------------------------------------------
INVESTMENT RESULTS*
Periods Ended April 30, 2000

-------------------
Total Returns
-------------------
6 Months 12 Months
--------------------------------------------
Alliance Growth
Investors Fund
Class A 7.09% 9.19%
--------------------------------------------
Class B 6.71% 8.39%
--------------------------------------------
Class C 6.70% 8.45%
--------------------------------------------
S&P 500 7.18% 10.12%
--------------------------------------------
Lehman Brothers
Aggregate Bond
Index 1.42% 1.26%
--------------------------------------------
70%/30%
Composite:
S&P 500 Stock
Index / Lehman
Brothers
Aggregate
Bond Index 5.45% 7.46%
--------------------------------------------

* 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. Past performance is no guarantee of
future results.

The S&P 500 Stock Index is an unmanaged index of 500 U.S. companies and is
a common measure of the performance of the overall U.S. stock market. The
unmanaged Lehman Brothers Aggregate Bond Index is composed of the Lehman
Brothers Mortgage-Backed Securities Index, the Lehman Brothers
Asset-Backed Securities Index and the Lehman Brothers Government/Corporate
Bond Index. It is a broad measure of the performance of taxable bonds in
--------------------------------------------------------------------------------

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ALLIANCE GROWTH INVESTORS AND CONSERVATIVE INVESTORS FUNDS o 1
<PAGE>

----------------------
LETTER TO SHAREHOLDERS
----------------------

--------------------------------------------------------------------------------
the U.S. market, with maturities of at least one year. The 70%/30%
Composite is a blend of both the S&P 500 Stock Index and the Lehman
Brothers Aggregate Bond Index with a 70%/30% weighting, respectively. An
investor cannot invest directly in an index and its results are not
indicative of the performance of any specific investment, including
Alliance Growth Investors Fund.

Additional investment results appear on pages 6-9.
--------------------------------------------------------------------------------

Investment Objectives and Policies for Alliance Conservative Investors Fund

Alliance Conservative Investors Fund seeks to provide high total return without
undue risk to principal through investment in a mix of equity and fixed income
securities. Normally, the Fund will hold approximately 70% of its total assets
in fixed income securities.

Investment Results for Alliance Conservative Investors Fund

The Class A shares of the Alliance Conservative Investors Fund returned 3.35%
during the six-month period under review, and by 4.50% over the 12-month period.
Composite benchmark performance was 3.15% and 3.92%, respectively.

As with the Growth Investors Fund, value was added in the Conservative Investors
Fund by European stock selection over the six-month period. Fixed-income
investments gained due to a preference for longer-maturity U.S. Treasuries in a
period when these performed well relative to other bonds.

--------------------------------------------------------------------------------
INVESTMENT RESULTS*
Periods Ended April 30, 2000

-------------------
Total Returns
-------------------
6 Months 12 Months
-----------------------------------------
Alliance
Conservative
Investors Fund
Class A 3.35% 4.50%
-----------------------------------------
Class B 2.85% 3.73%
-----------------------------------------
Class C 2.93% 3.72%
-----------------------------------------
Lehman Brothers
Aggregate Bond
Index 1.42% 1.26%
-----------------------------------------
S&P 500
Stock Index 7.18% 10.12%
-----------------------------------------
70%/30% Composite:
Lehman Brothers
Aggregate
Bond Index /
S&P 500
Stock Index 3.15% 3.92%
-----------------------------------------

The unmanaged Lehman Brothers Aggregate Bond Index is composed of the
Lehman Brothers Mortgage-Backed Securities Index, the Lehman Brothers
Asset-Backed

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2 o ALLIANCE GROWTH INVESTORS AND CONSERVATIVE INVESTORS FUNDS
<PAGE>

----------------------
LETTER TO SHAREHOLDERS
----------------------

--------------------------------------------------------------------------------
Securities Index and the Lehman Brothers Government/Corporate Bond Index.
It is a broad measure of the performance of taxable bonds in the U.S.
market, with maturities of at least one year. The S&P 500 Stock Index is
an unmanaged index of 500 U.S. companies and is a common measure of the
performance of the overall U.S. Stock Market. The 70%/30% Composite is a
blend of both the Lehman Brothers Aggregate Bond Index and the S&P 500
Stock Index with a 70%/30% weighting, respectively. An investor cannot
invest directly in an index and its results are not indicative of any
specific investment, including Alliance Conservative Investors Fund.

Additional investment results appear on pages 10-13.
--------------------------------------------------------------------------------

Economic and Market Environment

The past six-month period ended April 30, 2000 may be seen in hindsight to have
continued a long rolling upward trend in the stock market, or the dramatic end
of a technological growth bubble. This time period has certainly witnessed
extraordinary volatility at the level of the major indices and severe advances
and reverses in renowned stocks. There were three major events during this time
frame: 1.) technology stocks enjoyed almost uninterrupted and rapid appreciation
in November and December, 2.) high volatility and increasing skepticism of the
valuations of sectors of the new economy eventually led to new market highs in
late March, and 3.) a definite turn in April from technology stocks and the near
abandonment of many 'pure-play' internet stocks led to the market retracing to
its December levels.

After such a ride, the aggregate changes to the indices seem rather dull. The
MSCI World Index rose by 7% in the October-to-April period. Of the regional MSCI
indices, the euro nations performed best, gaining 14%, while North America
gained 8% and the Pacific Region lagged somewhat with 3%. The importance of the
technology and communications sectors in driving volatility is exemplified in
the relative performance of the S&P 500 and the Nasdaq Composite. While the more
broad-based S&P 500 rose 10% between November and March and ended the six-month
period up 7%, the NASDAQ rose to 5,000 in March from 3,000 in November before
falling to 3,500 and finishing April around 4,000. By mid-May, the two indices'
total performance over the six-month period was almost identical.

This volatility is the market's response to serious questions in both the macro
and micro economy. Growth in the U.S. continues at breakneck speed. Annualized
growth in the final quarter of 1999 was 7.3%. Initial estimates for the first
quarter of this year suggest that this has slowed somewhat, but that the pace of
personal consumption growth has not slackened at all. Productivity growth has
also remained strong, but is now challenged by increased wages. In the first
quarter, unit labor costs grew 1.8%, which compares poorly with the decline of
-2.9% in the preceding period. Such a development stokes con-

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ALLIANCE GROWTH INVESTORS AND CONSERVATIVE INVESTORS FUNDS o 3
<PAGE>

----------------------
LETTER TO SHAREHOLDERS
----------------------

sumer inflation. Producer inflation is already manifest in commodity prices. The
policy response has been to raise rates aggressively and the Federal Reserve
gives no indication that the monetary tightening cycle is over.

Higher interest rates put pressure on corporate earnings and, therefore, on the
valuations of stocks. Many technology stocks that have been awarded high
valuations are not expected to provide earnings for several years and so, like
bonds with long maturity dates, are particularly sensitive to higher interest
rates. This is one explanation for the precipitous declines in certain stocks in
recent months. On a broader outlook, it can be said that failure to achieve
expected earnings figures has been punished severely, adding to general market
volatility.

In light of this growing concern over the inflationary implications of higher
commodity prices and robust global growth, and declining faith in the ability of
the U.S. economy to counter these pressures solely through improved
productivity, the government bond markets have suffered. Consequently, on the
volatility in the equity markets, bond markets have found some support from
transfers of capital to lower risk investments. However, the trend has been
downward, with relief found only in the longer maturity U.S. government bonds
and in the Japanese government bond market, which operates in an inflationary
environment that differs from that in the U.S. and Europe. The yield on the
10-year U.S. Treasury is now 6.4%, while similarly dated European bonds yield
about 1% less in light of lower expectations for inflation.

The persistent weakness of the euro has been the most notable feature of the
major currency markets over recent months. Defying a broad consensus of opinion,
the single currency has failed to rebound in reaction to the demonstrable
acceleration of growth in the euro countries over the second half of 1999, and
the growth in the U.S. external deficit to a gigantic size. It now appears that
the euro will remain weak against the dollar until the gap between U.S. and
Europe growth narrows. The yen has fluctuated against the dollar but has matched
its appreciation against the euro.

Having enjoyed a powerful economic recovery for over a year now -- boosted in
significant degree by an increasingly competitive exchange rate -- the euro
countries now face something of a dilemma. The Federal Reserve is set on a
policy of raising interest rates. If the European Central Bank takes a less
aggressive line, as would be suggested by European inflation which remains
relatively modest, then the euro may well come under further pressure. This
policy will tend to defeat itself as a weaker currency will increase inflation
and so make interest rate increases necessary. However, if Euroland -- Belgium,
Germany, Spain, France, Ireland, Italy, Luxembourg, the Netherlands, Portugal,
Austria and Finland -- matches the monetary tightening

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4 o ALLIANCE GROWTH INVESTORS AND CONSERVATIVE INVESTORS FUNDS
<PAGE>

----------------------
LETTER TO SHAREHOLDERS
----------------------

------------------------------
[PHOTO OMITTED] John D.
Carifa

[PHOTO OMITTED] Nicholas D.P.
Carn

Portfolio Manager, Nicholas
D.P. Carn, is a Senior Vice
President and Chief Investment
Officer for Alliance Asset
Allocation Group. He has over
22 years of investment
experience.
------------------------------

policy of the U.S., then it may bring a premature end to the European growth
phase before important member economies, such as Germany and Italy, have reaped
the benefits of significant consumption growth.

We appreciate your investment in Alliance's asset allocation funds and look
forward to reporting their progress to you in the future.

Sincerely,

/s/ John D. Carifa

John D. Carifa
Chairman and President

/s/ Nicholas D.P. Carn

Nicholas D.P. Carn
Vice President

--------------------------------------------------------------------------------
ALLIANCE GROWTH INVESTORS AND CONSERVATIVE INVESTORS FUNDS o 5
<PAGE>

------------------
PERFORMANCE UPDATE
------------------

PERFORMANCE UPDATE

ALLIANCE GROWTH INVESTORS FUND
GROWTH OF A $10,000 INVESTMENT
5/31/92* TO 4/30/00

[The following table was depicted as a mountain chart in the printed material.]

S&P 500 Stock Index: $41,436

70% S&P 500 Stock Index / 30% LB Aggregate Bond Index: $34,136

Alliance Growth Investors Fund Class A: $26,273

This chart illustrates the total value of an assumed $10,000 investment in
Alliance Growth Investors Fund Class A shares (from 5/31/92 to 4/30/00) as
compared to the performance of an appropriate broad-based index and a composite.
The chart reflects the deduction of the maximum 4.25% sales charge from the
initial $10,000 investment in the Fund and assumes the reinvestment of dividends
and capital gains. Performance for Class B and Class C shares will vary from the
results shown above due to differences in expenses charged to 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 Lehman Brothers Aggregate Bond Index is composed of the Lehman
Brothers Mortgage-Backed Securities Index, the Lehman Brothers Asset-Backed
Securities Index and the Lehman Brothers Government/Corporate Bond Index.

The composite shown above represents a 70/30 weighting (70% S&P 500 Stock Index
and 30% Lehman Brothers Aggregate Bond Index).

When comparing Alliance Growth Investors Fund to the index and composite shown
above, you should note that no charges or expenses are reflected in the
performance of the index and composite. An investor cannot invest directly in an
index and its results are not indicative of any specific investment, including
Alliance Growth Investors Fund.

* Closest month-end after Fund's Class A share inception date of 5/4/92.

--------------------------------------------------------------------------------
6 o ALLIANCE GROWTH INVESTORS FUND
<PAGE>

------------------
PERFORMANCE UPDATE
------------------

PERFORMANCE UPDATE

ALLIANCE GROWTH INVESTORS FUND
HISTORY OF RETURNS
YEARLY PERIODS ENDED 4/30

[BAR CHART OMITTED]

Alliance Growth Investors Fund--Yearly Periods Ended 4/30
-----------------------------------------------------------------------
70% S&P 500 Stock Index/
Alliance Growth 30% Lehman Brothers
Investors Fund Aggregate Bond Index
-----------------------------------------------------------------------
4/30/93* 16.32% 10.43%
4/30/94 4.46% 3.97%
4/30/95 5.57% 14.40%
4/30/96 23.87% 23.72%
4/30/97 6.69% 19.71%
4/30/98 27.96% 32.02%
4/30/99 16.80% 17.16%
4/30/00 9.19% 7.46%

Past performance is 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 S&P 500 Stock Index is
comprised of 500 U.S. companies and is a common measure of the performance for
the overall U.S. stock market. The unmanaged Lehman Brothers Aggregate Bond
Index is composed of the Lehman Brothers Mortgage-Backed Securities Index, the
Lehman Brothers Asset-Backed Securities Index and the Lehman Brothers
Government/Corporate Bond Index. An investor cannot invest directly in an index,
and its results are not indicative of any specific investment, including
Alliance Growth Investors Fund.

* From inception (5/4/92 for Fund and 4/30/92 for composite)

--------------------------------------------------------------------------------
ALLIANCE GROWTH INVESTORS FUND o 7
<PAGE>

-----------------
PORTFOLIO SUMMARY
-----------------

PORTFOLIO SUMMARY
April 30, 2000

ALLIANCE GROWTH INVESTORS FUND

INCEPTION DATE PORTFOLIO STATISTICS
(Class A shares) Assets ($mil): 144.7
5/4/92 Median Market Capitalization ($mil): $80.5

SECURITY TYPE
Equities:
54.38% Common Stock [PIE CHART OMITTED]
Fixed Income:
36.66% Treasury
8.96% Short-Term

All data as of April 30, 2000. The Fund's securities are expressed as a
percentage of the portfolio's total investments and may vary over time.

--------------------------------------------------------------------------------
8 o ALLIANCE GROWTH INVESTORS FUND
<PAGE>

------------------
INVESTMENT RESULTS
------------------

INVESTMENT RESULTS

ALLIANCE GROWTH INVESTORS FUND
NAV AND SEC AVERAGE ANNUAL TOTAL RETURNS
AS OF APRIL 30, 2000

Class A Shares
--------------------------------------------------------------------------------
Without Sales Charge With Sales Charge
One Year 9.19% 4.56%
Five Years 16.62% 15.60%
Since Inception* 13.58% 12.97%

Class B Shares
--------------------------------------------------------------------------------
Without Sales Charge With Sales Charge
One Year 8.39% 4.62%
Five Years 15.80% 15.80%
Since Inception* 12.77% 12.77%

Class C Shares
--------------------------------------------------------------------------------
Without Sales Charge With Sales Charge
One Year 8.45% 7.51%
Five Years 15.79% 15.79%
Since Inception* 12.22% 12.22%

SEC AVERAGE ANNUAL TOTAL RETURNS
AS OF THE MOST RECENT QUARTER-END (MARCH 31, 2000)

Class A Class B Class C
--------------------------------------------------------------------------------
1 Year 7.69% 7.76% 10.73%
5 Years 16.45% 16.64% 16.65%
Since Inception* 13.46% 13.26% 12.81%

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.

Past performance does not guarantee future results. Investment return and
principal value will fluctuate so that an investor's shares, when redeemed, may
be worth more or less than their original cost.

* Inception: 5/4/92 Classes A & B; 8/2/93 Class C.

--------------------------------------------------------------------------------
ALLIANCE GROWTH INVESTORS FUND o 9
<PAGE>

------------------
PERFORMANCE UPDATE
------------------

PERFORMANCE UPDATE

ALLIANCE CONSERVATIVE INVESTORS FUND
GROWTH OF A $10,000 INVESTMENT
5/31/92* TO 4/30/00

[The following table was depicted as a mountain chart in the printed material.]

70% LB Aggregate Bond Index / 30% S&P 500 Stock Index: $24,245

Alliance Conservative Investors Fund Class A: $18,102

Lehman Brothers Aggregate Bond Index: $16,705

This chart illustrates the total value of an assumed $10,000 investment in
Alliance Conservative Investors Fund Class A shares (from 5/31/92 to 4/30/00) as
compared to the performance of an appropriate broad-based index and a composite.
The chart reflects the deduction of the maximum 4.25% sales charge from the
initial $10,000 investment in the Fund and assumes the reinvestment of dividends
and capital gains. Performance for Class B and Class C shares will vary from the
results shown above due to differences in expenses charged to 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 composite shown above represents a 70/30 weighting (70% Lehman Brothers
Aggregate Bond Index and 30% S&P 500 Stock Index).

When comparing Alliance Conservative Investors Fund to the index and composite
shown above, you should note that no charges or expenses are reflected in the
performance of the index and composite. An investor cannot invest directly in an
index and its results are not indicative of any specific investment, including
Alliance Conservative Investors Fund.

* Closest month-end after Fund's Class A share inception date of 5/4/92.

--------------------------------------------------------------------------------
10 o ALLIANCE CONSERVATIVE INVESTORS FUND
<PAGE>

------------------
PERFORMANCE UPDATE
------------------

PERFORMANCE UPDATE

ALLIANCE CONSERVATIVE INVESTORS FUND
HISTORY OF RETURNS
YEARLY PERIODS ENDED 4/30

[BAR CHART OMITTED]

Alliance Conservative Investors Fund--Yearly Periods Ended 4/30
------------------------------------------------------------------------
70% Lehman Brothers
Alliance Conservative Aggregate Bond Index /
Investors Fund 30% S&P 500 Stock Index
------------------------------------------------------------------------
4/30/93* 12.25% 12.05%
4/30/94 0.35% 2.19%
4/30/95 4.65% 10.35%
4/30/96 12.69% 15.11%
4/30/97 7.90% 12.50%
4/30/98 17.87% 19.96%
4/30/99 8.59% 10.94%
4/30/00 4.50% 3.92%

Past performance is 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 Lehman Brothers Aggregate
Bond Index is composed of the Lehman Brothers Mortgage-Backed Securities Index,
the Lehman Brothers Asset-Backed Securities Index and the Lehman Brothers
Government/Corporate Bond Index. The unmanaged S&P 500 Stock Index is comprised
of 500 U.S. companies and is a common measure of the performance for the overall
U.S. stock market. An investor cannot invest directly in an index, and its
results are not indicative of any specific investment, including Alliance
Conservative Investors Fund.

* From inception (5/4/92 for Fund and 4/30/92 for Index)

--------------------------------------------------------------------------------
ALLIANCE CONSERVATIVE INVESTORS FUND o 11
<PAGE>

-----------------
PORTFOLIO SUMMARY
-----------------

PORTFOLIO SUMMARY
April 30, 2000

ALLIANCE CONSERVATIVE INVESTORS FUND

INCEPTION DATE PORTFOLIO STATISTICS
(Class A shares) Assets ($mil): 63.1
5/4/92 Median Market Capitalization ($mil): $86.1

SECURITY TYPE
Equities:
21.25% Common Stock [PIE CHART OMITTED]
Fixed Income:
75.03% Treasury
3.72% Short-Term

All data as of April 30, 2000. The Fund's securities are expressed as a
percentage of the portfolio's total investments and may vary over time.

--------------------------------------------------------------------------------
12 o ALLIANCE CONSERVATIVE INVESTORS FUND
<PAGE>

------------------
INVESTMENT RESULTS
------------------

INVESTMENT RESULTS

ALLIANCE CONSERVATIVE INVESTORS FUND
NAV AND SEC AVERAGE ANNUAL TOTAL RETURNS
AS OF APRIL 30, 2000

Class A Shares
--------------------------------------------------------------------------------
Without Sales Charge With Sales Charge
One Year 4.50% 0.04%
Five Years 10.21% 9.26%
Since Inception* 8.49% 7.90%

Class B Shares
--------------------------------------------------------------------------------
Without Sales Charge With Sales Charge
One Year 3.73% -0.09%
Five Years 9.43% 9.43%
Since Inception* 7.72% 7.72%

Class C Shares
--------------------------------------------------------------------------------
Without Sales Charge With Sales Charge
One Year 3.72% 2.77%
Five Years 9.43% 9.43%
Since Inception* 7.05% 7.05%

SEC AVERAGE ANNUAL TOTAL RETURNS
AS OF THE MOST RECENT QUARTER-END (MARCH 31, 2000)

Class A Class B Class C
--------------------------------------------------------------------------------
1 Year 1.76% 1.62% 4.44%
5 Years 9.80% 9.97% 9.97%
Since Inception* 8.14% 7.97% 7.34%

* Inception: 5/4/92 Classes A & B; 8/2/93 Class C.

--------------------------------------------------------------------------------
ALLIANCE CONSERVATIVE INVESTORS FUND o 13
<PAGE>

--------------------
TEN LARGEST HOLDINGS
--------------------

TEN LARGEST HOLDINGS
April 30, 2000

Percent of
Company Value Net Assets
--------------------------------------------------------------------------------
U.S. Treasury Notes $44,156,929 30.5%
--------------------------------------------------------------------------------
U.S. Treasury Bonds, 6.375%, 8/15/27 7,862,393 5.4
--------------------------------------------------------------------------------
Noble Drilling Corp. 2,567,981 1.8
--------------------------------------------------------------------------------
Harley-Davidson, Inc. 2,563,925 1.8
--------------------------------------------------------------------------------
Wal-Mart Stores, Inc. 2,403,275 1.7
--------------------------------------------------------------------------------
Citigroup, Inc. 2,368,585 1.6
--------------------------------------------------------------------------------
American International Group, Inc. 2,300,695 1.6
--------------------------------------------------------------------------------
AT&T Corp. 2,144,506 1.5
--------------------------------------------------------------------------------
Applied Materials, Inc. 2,087,156 1.5
--------------------------------------------------------------------------------
Home Depot, Inc. 2,079,919 1.4
--------------------------------------------------------------------------------
$70,535,364 48.8%

MAJOR PORTFOLIO CHANGES
Six Months Ended April 30, 2000

-----------------------------------
Shares* or Principal
-----------------------------------
Purchases Bought Holdings 4/30/00
-------------------------------------------------------------------------
United States Treasury Note,
5.50%, 8/31/01 $13,180,000 $13,180,000
-------------------------------------------------------------------------
United States Treasury Note,
7.25%, 5/15/04 $8,080,000 $8,080,000
-------------------------------------------------------------------------
United States Treasury Note,
5.625%, 2/15/06 $4,530,000 $4,530,000
-------------------------------------------------------------------------
EMC Corp. 14,600 14,600
-------------------------------------------------------------------------
Applied Materials, Inc. 20,500 20,500
-------------------------------------------------------------------------
Altera Corp. 19,800 19,800
-------------------------------------------------------------------------
AT&T Corp.- Liberty Media Group Cl.A 40,700 40,700
-------------------------------------------------------------------------
Oracle Corp. 25,900 25,900
-------------------------------------------------------------------------
Sanmina Corp. 33,200 33,200
-------------------------------------------------------------------------
Schering-Plough Corp. 47,200 47,200
-------------------------------------------------------------------------

Sales Sold Holdings 4/30/00
-------------------------------------------------------------------------
Honeywell International, Inc. 15,000 12,700
-------------------------------------------------------------------------
Tyco International Ltd. 40,800 -0-
-------------------------------------------------------------------------
NTT Mobile Communications Network, Inc. 53 3
-------------------------------------------------------------------------
Intel Corp. 17,000 11,600
-------------------------------------------------------------------------
Cisco Systems, Inc. 8,400 23,200
-------------------------------------------------------------------------
Nortel Networks Corp. 26,800 14,000
-------------------------------------------------------------------------
United States Treasury Note,
6.875%, 5/15/06 $4,200,000 $380,000
-------------------------------------------------------------------------
Nokia Corp. 39,600 18,400
-------------------------------------------------------------------------
United States Treasury Note,
4.75%, 2/15/04 $9,000,000 -0-
-------------------------------------------------------------------------
United States Treasury Note,
6.50%, 8/31/01 $13,000,000 $1,400,000
-------------------------------------------------------------------------

* Adjusted for stock splits.

--------------------------------------------------------------------------------
14 o ALLIANCE GROWTH INVESTORS FUND
<PAGE>

----------------------
SECTOR DIVERSIFICATION
----------------------

SECTOR DIVERSIFICATION
April 30, 2000

Percent of
U.S. $ Value Net Assets
--------------------------------------------------------------------------------
Aerospace & Defense $ 2,219,369 1.5%
--------------------------------------------------------------------------------
Basic Industry 3,531,701 2.4
--------------------------------------------------------------------------------
Capital Goods 1,851,286 1.3
--------------------------------------------------------------------------------
Consumer Manufacturing 4,118,977 2.9
--------------------------------------------------------------------------------
Consumer Services 12,217,212 8.5
--------------------------------------------------------------------------------
Consumer Staples 1,438,632 1.0
--------------------------------------------------------------------------------
Energy 6,285,658 4.4
--------------------------------------------------------------------------------
Finance 11,445,460 7.9
--------------------------------------------------------------------------------
Healthcare 6,138,415 4.2
--------------------------------------------------------------------------------
Multi Industry 2,081,236 1.4
--------------------------------------------------------------------------------
Technology 23,769,101 16.4
--------------------------------------------------------------------------------
Utilities 2,063,846 1.4
--------------------------------------------------------------------------------
U.S. Government 52,019,322 36.0
--------------------------------------------------------------------------------
Total Investments* 129,180,215 89.3
--------------------------------------------------------------------------------
Cash and receivables, net of liabilities 15,504,253 10.7
--------------------------------------------------------------------------------
Net Assets $144,684,468 100.0%
--------------------------------------------------------------------------------

* Excludes short-term obligations.

--------------------------------------------------------------------------------
ALLIANCE GROWTH INVESTORS FUND o 15
<PAGE>

--------------------
TEN LARGEST HOLDINGS
--------------------

TEN LARGEST HOLDINGS
April 30, 2000

Percent of
Company Value Net Assets
--------------------------------------------------------------------------
U.S. Treasury Notes $37,400,532 59.3%
--------------------------------------------------------------------------
U.S. Treasury Bond, 5.50%, 8/15/28 8,810,316 14.0
--------------------------------------------------------------------------
Nortel Networks Corp. 475,650 0.8
--------------------------------------------------------------------------
Harley-Davidson, Inc. 453,863 0.7
--------------------------------------------------------------------------
Noble Drilling Corp. 447,300 0.7
--------------------------------------------------------------------------
Wal-Mart Stores, Inc. 420,850 0.7
--------------------------------------------------------------------------
Home Depot, Inc. 420,469 0.7
--------------------------------------------------------------------------
Citigroup, Inc. 413,091 0.6
--------------------------------------------------------------------------
American International Group, Inc. 398,933 0.6
--------------------------------------------------------------------------
Cisco Systems, Inc. 388,238 0.6
--------------------------------------------------------------------------
$49,629,242 78.7%

MAJOR PORTFOLIO CHANGES
Six Months Ended April 30, 2000

-------------------------------
Shares*
-------------------------------
Purchases Bought Holdings 4/30/00
--------------------------------------------------------------------------
Circuit City Stores-Circuit City Group 4,900 4,900
--------------------------------------------------------------------------
Warner-Lambert Co. 2,300 2,300
--------------------------------------------------------------------------
AT&T Corp. 2,600 2,600
--------------------------------------------------------------------------
Harley-Davidson, Inc. 1,800 11,400
--------------------------------------------------------------------------
CGNU Plc 9,800 9,800
--------------------------------------------------------------------------
Wal-Mart Stores, Inc. 2,400 7,600
--------------------------------------------------------------------------
Noble Drilling Corp. 3,600 11,200
--------------------------------------------------------------------------
American International Group, Inc. 1,200 3,637
--------------------------------------------------------------------------
Target Corp. 1,800 5,400
--------------------------------------------------------------------------
Citigroup, Inc. 2,100 6,950
--------------------------------------------------------------------------

Sales Sold Holdings 4/30/00
--------------------------------------------------------------------------
Altadis, SA 4,400 -0-
--------------------------------------------------------------------------
Tyco International Ltd. 5,400 -0-
--------------------------------------------------------------------------
Intel Corp. 1,100 2,800
--------------------------------------------------------------------------
Telefonica, SA 6,700 2,000
--------------------------------------------------------------------------
Nortel Networks Corp. 1,400 4,200
--------------------------------------------------------------------------
Sony Corp. 1,000 300
--------------------------------------------------------------------------
Coca-Cola Co. 3,300 -0-
--------------------------------------------------------------------------
Cisco Systems, Inc. 1,300 5,600
--------------------------------------------------------------------------
NTT Mobile Communications Network, Inc. 7 3
--------------------------------------------------------------------------
Nokia Corp. 7,400 2,800
--------------------------------------------------------------------------

* Adjusted for stock splits.

--------------------------------------------------------------------------------
16 o ALLIANCE CONSERVATIVE INVESTORS FUND
<PAGE>

----------------------
SECTOR DIVERSIFICATION
----------------------

SECTOR DIVERSIFICATION
April 30, 2000

Percent of
U.S. $ Value Net Assets
--------------------------------------------------------------------------------
Aerospace & Defense $ 383,916 0.6%
--------------------------------------------------------------------------------
Basic Industry 771,370 1.2
--------------------------------------------------------------------------------
Capital Goods 678,457 1.1
--------------------------------------------------------------------------------
Consumer Manufacturing 708,995 1.1
--------------------------------------------------------------------------------
Consumer Services 1,991,185 3.2
--------------------------------------------------------------------------------
Consumer Staples 555,469 0.9
--------------------------------------------------------------------------------
Energy 1,163,035 1.8
--------------------------------------------------------------------------------
Finance 2,075,326 3.3
--------------------------------------------------------------------------------
Healthcare 795,475 1.3
--------------------------------------------------------------------------------
Multi Industry 355,063 0.6
--------------------------------------------------------------------------------
Technology 3,055,097 4.8
--------------------------------------------------------------------------------
Utilities 553,093 0.9
--------------------------------------------------------------------------------
U.S. Government 46,210,848 73.3
--------------------------------------------------------------------------------
Total Investments* 59,297,329 94.1
--------------------------------------------------------------------------------
Cash and receivables, net of liabilities 3,767,132 5.9
--------------------------------------------------------------------------------
Net Assets $63,064,461 100.0%
--------------------------------------------------------------------------------

* Excludes short-term obligations.

--------------------------------------------------------------------------------
ALLIANCE CONSERVATIVE INVESTORS FUND o 17
<PAGE>

------------------------
PORTFOLIO OF INVESTMENTS
------------------------

PORTFOLIO OF INVESTMENTS
April 30, 2000

Company Shares U.S. $ Value
----------------------------------------------------------------------------
Common Stocks - 53.3%

United States Investments - 38.3%

Technology - 12.1%
Communications Equipment - 1.3%
Cisco Systems, Inc.(a)...................... 23,200 $ 1,608,413
Lucent Technologies, Inc. .................. 4,700 292,281
------------
1,900,694
------------
Computer Hardware - 3.1%
Dell Computer Corp.(a)...................... 24,800 1,243,100
Hewlett-Packard Co. ........................ 12,900 1,741,500
Intel Corp. ................................ 11,600 1,471,025
------------
4,455,625
------------
Computer Peripherals - 1.4%
EMC Corp.(a)................................ 14,600 2,028,488
------------
Computer Software - 2.1%
Microsoft Corp.(a).......................... 12,700 885,825
Oracle Corp.(a)............................. 25,900 2,070,381
------------
2,956,206
------------
Semi-Conductor Components - 4.2%
Altera Corp.(a)............................. 19,800 2,024,550
Applied Materials, Inc.(a).................. 20,500 2,087,156
Sanmina Corp.(a)............................ 33,200 1,994,075
------------
6,105,781
------------
17,446,794
------------
Consumer Services - 6.8%
Broadcasting/Media - 1.4%
AT&T Corp.- Liberty Media Group Cl.A(a)..... 40,700 2,032,456
------------
Retail - General Merchandise - 5.4%
Circuit City Stores-Circuit City Group...... 21,000 1,235,062
Home Depot, Inc. ........................... 37,100 2,079,919
Target Corp. ............................... 30,700 2,043,469
Wal-Mart Stores, Inc. ...................... 43,400 2,403,275
------------
7,761,725
------------
9,794,181
------------
Finance - 4.7%
Banking - Regional - 0.7%
Bank of America Corp. ...................... 21,400 1,048,600
------------
Insurance - 3.3%
American International Group, Inc. ......... 20,975 2,300,695
Citigroup, Inc. ............................ 39,850 2,368,585
------------
4,669,280
------------

--------------------------------------------------------------------------------
18 o ALLIANCE GROWTH INVESTORS FUND
<PAGE>

------------------------
PORTFOLIO OF INVESTMENTS
------------------------

Company Shares U.S. $ Value
----------------------------------------------------------------------------
Miscellaneous - 0.7%
MBNA Corp. ................................. 38,400 $ 1,020,000
------------
6,737,880
------------
Energy - 3.8%
International - 1.1%
Chevron Corp. .............................. 6,600 561,825
Exxon Mobil Corp. .......................... 13,900 1,079,856
------------
1,641,681
------------
Oil Service - 2.7%
Halliburton Co. ............................ 30,900 1,365,394
Noble Drilling Corp.(a)..................... 64,300 2,567,981
------------
3,933,375
------------
5,575,056
------------
Health Care - 2.8%
Drugs - 2.4%
Schering-Plough Corp. ...................... 47,200 1,902,750
Warner-Lambert Co. ......................... 13,500 1,536,469
------------
3,439,219
------------
Medical Products - 0.4%
Johnson & Johnson........................... 8,300 684,750
------------
4,123,969
------------
Basic Industry - 2.0%
Chemicals - 1.0%
Union Carbide Corp. ........................ 23,800 1,404,200
------------
Mining & Metals - 0.9%
Alcoa, Inc. ................................ 21,000 1,362,375
------------
Paper & Forest Products - 0.1%
International Paper Co. .................... 3,600 132,300
------------
2,898,875
------------
Consumer Manufacturing - 1.8%
Auto & Related - 1.8%
Harley-Davidson, Inc. ...................... 64,400 2,563,925
------------
Multi Industry Company - 1.2%
Minnesota Mining & Manufacturing Co. ....... 21,000 1,816,500
------------
Aerospace & Defense - 1.1%
Aerospace - 1.1%
United Technologies Corp. .................. 26,600 1,654,187
------------
Utilities - 0.9%
Telephone Utility - 0.9%
AT&T Corp. ................................. 2,400 112,050
MCI WorldCom, Inc.(a)....................... 25,350 1,151,840
------------
1,263,890
------------

--------------------------------------------------------------------------------
ALLIANCE GROWTH INVESTORS FUND o 19
<PAGE>

------------------------
PORTFOLIO OF INVESTMENTS
------------------------

Company Shares U.S. $ Value
----------------------------------------------------------------------------
Capital Goods - 0.6%
Machinery - 0.6%
Caterpillar, Inc. .......................... 4,900 $ 193,244
Honeywell International, Inc. .............. 12,700 711,200
------------
904,444
------------
Consumer Staples - 0.5%
Household Products - 0.4%
The Procter & Gamble Co. ................... 8,900 530,662
------------
Tobacco - 0.1%
Philip Morris Companies, Inc. .............. 8,100 177,188
------------
707,850
------------
Total United States Investments
(cost $46,437,195)....................... 55,487,551
------------
Foreign Investments - 15.0%
Canada - 1.1%
Nortel Networks Corp. (ADR)................. 14,000 1,585,500
------------
Finland - 0.7%
Nokia Corp.(b).............................. 18,400 1,055,501
------------
France - 2.2%
Alcatel(b).................................. 1,400 324,549
Banque Nationale de Paris(b)................ 7,180 580,280
Carrefour, SA(b)............................ 3,740 243,443
Castorama Dubois Investissement, SA(b)...... 1,560 340,367
France Telecom, SA(b)....................... 2,030 314,100
Sanofi-Synthelabo, SA(b).................... 7,190 268,320
STMicroelectronics NV(b).................... 2,590 494,224
Total Fina Elf(b)........................... 3,160 479,463
------------
3,044,746
------------
Hong Kong - 0.5%
China Telecom (Hong Kong), Ltd. ............ 66,000 472,385
Citic Pacific, Ltd. ........................ 57,600 264,736
------------
737,121
------------
Ireland - 0.3%
CRH Plc(b).................................. 23,200 371,836
------------
Japan - 4.5%
Advantest Corp. ............................ 1,600 366,023
Banyu Pharmaceutical Co., Ltd. ............. 14,000 308,476
Canon, Inc. ................................ 13,000 594,547
Daiwa Securities Group, Inc. ............... 24,000 366,616
Fast Retailing Co., Ltd. ................... 1,200 528,816

--------------------------------------------------------------------------------
20 o ALLIANCE GROWTH INVESTORS FUND
<PAGE>

------------------------
PORTFOLIO OF INVESTMENTS
------------------------

Company Shares U.S. $ Value
----------------------------------------------------------------------------
Hoya Corp. ................................. 5,000 $ 509,188
Kao Corp. .................................. 16,000 487,340
Kawasaki Steel Corp. ....................... 220,000 342,175
Nippon Broadcasting System, Inc. ........... 1,000 71,564
NTT Mobile Communications Network, Inc. .... 3 100,264
Omron Corp. ................................ 14,000 381,058
Sankyo Co., Ltd. ........................... 1,400 64,028
New(a)................................... 2,800 124,168
Santen Pharmaceutical Co., Ltd. ............ 10,000 221,266
Sony Corp.(a)............................... 1,800 208,304
Sumitomo Trust & Banking Co., Ltd. ......... 56,000 409,573
Takeda Chemical Industries, Ltd. ........... 7,000 460,769
TDK Corp. .................................. 2,000 267,926
The Bank of Fukuoka, Ltd. .................. 39,000 257,436
Tokyo Electron, Ltd. ....................... 1,000 163,033
Yamanouchi Pharmaceutical Co., Ltd. ........ 6,000 317,178
------------
6,549,748
------------
Netherlands - 1.2%
Akzo Nobel NV(b)............................ 7,100 290,651
Completel Europe NV(a)(b)................... 6,320 110,889
Equant NV(a)(b)............................. 2,884 223,250
ING Groep NV(b)............................. 10,500 572,924
Koninklijke (Royal) Philips
Electronics NV(b) ........................ 10,000 446,095
Libertel NV(a)(b)........................... 6,300 110,538
United Pan-Europe Communications NV(a)(b)... 180 6,550
------------
1,760,897
------------
South Korea - 0.6%
Samsung Electronics Co., Ltd. (GDR)(c)...... 5,310 850,928
------------
Spain - 0.3%
Repsol, SA(b)............................... 11,300 231,139
Telefonica, SA(b)........................... 11,800 262,606
------------
493,745
------------
Sweden - 0.3%
Securitas AB Series B....................... 16,900 437,296
------------
Switzerland - 0.4%
ABB, Ltd. .................................. 5,032 564,606
------------
United Kingdom - 2.9%
Bank of Scotland............................ 11,700 104,197
British Aerospace Plc....................... 91,900 565,181
British Sky Broadcasting Group Plc.......... 6,100 149,584
CGNU Plc.................................... 60,400 866,107
Invensys Plc................................ 244 1,178
Reuters Group Plc........................... 8,050 144,260
Royal Bank of Scotland Group Plc............ 13,422 209,392
Slough Estates Plc.......................... 57,600 319,262

--------------------------------------------------------------------------------
ALLIANCE GROWTH INVESTORS FUND o 21
<PAGE>

------------------------
PORTFOLIO OF INVESTMENTS
------------------------

Shares or
Principal
Amount
Company (000) U.S. $ Value
---------------------------------------------------------------------------
SmithKline Beecham Plc...................... 32,000 $ 438,437
Standard Chartered Plc...................... 43,300 584,497
Vodafone AirTouch Plc....................... 183,361 839,323
------------
4,221,418
------------
Total Foreign Investments
(cost $18,153,003)....................... 21,673,342
------------

Total Common Stocks
(cost $64,590,198)....................... 77,160,893
------------
Debt Obligations - 36.0%
U.S. Government Obligations - 36.0%
U.S. Treasury Bond
6.375%, 8/15/27.......................... $ 7,700 7,862,393
U.S. Treasury Notes
3.625%, 1/15/08(d)....................... 14,388 14,019,116
4.75%, 11/15/08.......................... 3,100 2,768,207
5.50%, 8/31/01........................... 13,180 12,986,386
5.625%, 2/15/06.......................... 4,530 4,339,604
6.50%, 8/31/01........................... 1,400 1,396,934
6.875%, 5/15/06(b)....................... 380 386,175
7.25%, 5/15/04........................... 8,080 8,260,507
------------
Total Debt Obligations
(cost $51,770,875)....................... 52,019,322
------------
Short-Term Investments - 8.8%
Time Deposit - 6.7%
State Street Euro Dollar
5.50%, 5/01/00........................... 9,617 9,617,000
------------
U.S. Government Agency Obligation - 2.1%
Federal Home Loan Bank
5.38%, 5/03/00........................... 3,100 3,099,029
------------
Total Short-Term Investments
(amortized cost $12,716,029)............. 12,716,029
------------
Total Investments - 98.1%
(cost $129,077,102)...................... 141,896,244
Other assets less liabilities - 1.9%........ 2,788,224
------------

Net Assets - 100%........................... $144,684,468
============

--------------------------------------------------------------------------------
22 o ALLIANCE GROWTH INVESTORS FUND
<PAGE>

------------------------
PORTFOLIO OF INVESTMENTS
------------------------

(a) Non-income producing security.

(b) Securities, or portion thereof, with an aggregate market value of
$7,112,900 have been segregated to collateralize forward exchange currency
contracts.

(c) Securities exempt from registration under Rule 144A, of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration normally applied to certain qualified buyers. At April 30,
2000, the aggregate market value of this security amounted to $850,928 or
0.6% of net assets.

(d) Treasury Inflation Protection Securities.

Glossary of Terms:

ADR - American Depositary Receipt

GDR - Global Depositary Receipt

See notes to financial statements.

--------------------------------------------------------------------------------
ALLIANCE GROWTH INVESTORS FUND o 23
<PAGE>

------------------------
PORTFOLIO OF INVESTMENTS
------------------------

PORTFOLIO OF INVESTMENTS
April 30, 2000

Company Shares U.S. $ Value
----------------------------------------------------------------------------
Common Stocks - 20.8%

United States Investments - 14.5%

Technology - 2.9%
Communications Equipment - 1.0%
Cisco Systems, Inc.(a)...................... 5,600 $ 388,238
Lucent Technologies, Inc. .................. 4,000 248,750
------------
636,988
------------
Computer Hardware - 1.5%
Dell Computer Corp.(a)...................... 5,700 285,712
Hewlett-Packard Co. ........................ 2,300 310,500
Intel Corp. ................................ 2,800 355,075
------------
951,287
------------
Computer Software - 0.4%
Microsoft Corp.(a).......................... 3,300 230,175
------------
1,818,450
------------
Consumer Services - 2.3%
Retail - General Merchandise - 2.3%
Circuit City Stores-Circuit City Group...... 4,900 288,181
Home Depot, Inc. ........................... 7,500 420,469
Target Corp. ............................... 5,400 359,437
Wal-Mart Stores, Inc. ...................... 7,600 420,850
------------
1,488,937
------------
Finance - 1.9%
Banking - Regional - 0.4%
Bank of America Corp. ...................... 4,900 240,100
------------
Insurance - 1.3%
American International Group, Inc. ......... 3,637 398,933
Citigroup, Inc. ............................ 6,950 413,091
------------
812,024
------------
Miscellaneous - 0.2%
MBNA Corp. ................................. 6,399 169,973
------------
1,222,097
------------
Energy - 1.7%
International - 0.6%
Chevron Corp. .............................. 2,200 187,275
Exxon Mobil Corp. .......................... 2,300 178,681
------------
365,956
------------
Oil Service - 1.1%
Halliburton Co. ............................ 5,400 238,613
Noble Drilling Corp.(a)..................... 11,200 447,300
------------
685,913
------------
1,051,869
------------

--------------------------------------------------------------------------------
24 o ALLIANCE CONSERVATIVE INVESTORS FUND
<PAGE>

------------------------
PORTFOLIO OF INVESTMENTS
------------------------

Company Shares U.S. $ Value
----------------------------------------------------------------------------

Basic Industry - 1.0%
Chemicals - 0.4%
Union Carbide Corp. ........................ 4,100 $ 241,900
------------
Mining & Metals - 0.4%
Alcoa, Inc. ................................ 3,600 233,550
------------
Paper & Forest Products - 0.2%
International Paper Co. .................... 3,900 143,325
------------
618,775
------------
Health Care - 0.9%
Drugs - 0.4%
Warner-Lambert Co. ......................... 2,300 261,769
------------
Medical Products - 0.5%
Johnson & Johnson........................... 3,600 297,000
------------
558,769
------------
Capital Goods - 0.8%
Machinery - 0.8%
Caterpillar, Inc. .......................... 5,400 212,962
Honeywell International, Inc. .............. 5,700 319,200
------------
532,162
------------
Consumer Manufacturing - 0.7%
Auto & Related - 0.7%
Harley-Davidson, Inc. ...................... 11,400 453,863
------------
Consumer Staples - 0.7%
Household Products - 0.4%
The Procter & Gamble Co. ................... 3,900 232,538
------------
Tobacco - 0.3%
Philip Morris Companies, Inc. .............. 8,800 192,500
------------
425,038
------------
Utilities - 0.6%
Telephone Utility - 0.6%
AT&T Corp. ................................. 2,600 121,388
MCI WorldCom, Inc.(a)....................... 5,800 263,537
------------
384,925
------------
Multi Industry Company - 0.5%
Minnesota Mining & Manufacturing Co. ....... 3,600 311,400
------------
Aerospace & Defense - 0.5%
Aerospace - 0.5%
United Technologies Corp. .................. 4,700 292,281
------------
Total United States Investments
(cost $8,325,659)........................ 9,158,566
------------

--------------------------------------------------------------------------------
ALLIANCE CONSERVATIVE INVESTORS FUND o 25
<PAGE>

------------------------
PORTFOLIO OF INVESTMENTS
------------------------

Company Shares U.S. $ Value
----------------------------------------------------------------------------

Foreign Investments - 6.3%
Canada - 0.8%
Nortel Networks Corp. (ADR)................. 4,200 $ 475,650
------------
Finland - 0.3%
Nokia Corp.(b).............................. 2,800 160,620
Sonera Oyj(b)............................... 650 35,750
------------
196,370
------------
France - 0.8%
Alcatel(b).................................. 200 46,364
Banque Nationale de Paris(b)................ 1,160 93,750
Carrefour, SA(b)............................ 600 39,055
Castorama Dubois Investissement, SA(b)...... 240 52,364
France Telecom, SA(b)....................... 330 51,061
Sanofi-Synthelabo, SA(b).................... 1,170 43,663
STMicroelectronics NV(b).................... 420 80,144
Total Fina Elf(b)........................... 490 74,347
------------
480,748
------------
Hong Kong - 0.2%
China Telecom (Hong Kong), Ltd.............. 10,700 76,584
Citic Pacific, Ltd. ........................ 9,500 43,663
Culturecom Holdings, Ltd.(a)................ 122,000 18,169
Sunevision Holdings, Ltd.(a)................ 2,000 2,606
------------
141,022
------------
Ireland - 0.1%
CRH Plc(b).................................. 3,800 60,904
------------
Japan - 1.6%
Advantest Corp. ............................ 300 68,629
Banyu Pharmaceutical Co., Ltd. ............. 2,000 44,068
Canon, Inc. ................................ 2,000 91,469
Daiwa Securities Group, Inc. ............... 5,000 76,378
Fast Retailing Co., Ltd. ................... 200 88,136
Hoya Corp. ................................. 1,000 101,838
Kao Corp. .................................. 3,000 91,376
Kawasaki Steel Corp......................... 32,000 49,771
NTT Mobile Communications Network, Inc. .... 3 100,264
Omron Corp. ................................ 2,000 54,437
Sankyo Co., Ltd. ........................... 200 9,147
New(a)................................... 500 22,173
Santen Pharmaceutical Co., Ltd. ............ 1,000 22,126
Sony Corp.(a)............................... 300 34,717
Sumitomo Trust & Banking Co., Ltd. ......... 9,000 65,824
The Bank of Fukuoka, Ltd. .................. 7,000 46,207
Yamanouchi Pharmaceutical Co., Ltd. ........ 1,000 52,863
------------
1,019,423
------------

--------------------------------------------------------------------------------
26 o ALLIANCE CONSERVATIVE INVESTORS FUND
<PAGE>

------------------------
PORTFOLIO OF INVESTMENTS
------------------------

Company Shares U.S. $ Value
----------------------------------------------------------------------------

Netherlands - 0.5%
Akzo Nobel NV(b)............................ 1,100 $ 45,031
Completel Europe NV(a)(b)................... 1,260 22,108
Equant NV(a)(b)............................. 476 36,847
ING Groep NV(b)............................. 1,870 102,035
Koninklijke (Royal) Philips
Electronics NV(b)......................... 1,600 71,375
Libertel NV(a)(b)........................... 1,000 17,546
United Pan-Europe Communications NV(a)(b)... 620 22,562
------------
317,504
------------
South Korea - 0.2%
Samsung Electronics Co., Ltd. (GDR)(c)...... 780 124,995
------------
Spain - 0.1%
Repsol, SA(b)............................... 1,800 36,819
Telefonica, SA(b)........................... 2,000 44,509
------------
81,328
------------
Sweden - 0.2%
Securitas AB Series B....................... 2,700 69,864
Telefonaktiebolaget (LM) Ericsson Series B.. 700 62,224
------------
132,088
------------
Switzerland - 0.2%
ABB, Ltd. .................................. 817 91,670
------------
United Kingdom - 1.3%
Bank of Scotland............................ 8,700 77,480
Billiton Plc................................ 8,000 29,769
British Aerospace Plc....................... 14,900 91,634
British Sky Broadcasting Group Plc.......... 1,000 24,522
CGNU Plc.................................... 9,800 140,527
Invensys Plc................................ 39 188
Reuters Group Plc........................... 1,300 23,297
Rio Tinto Plc............................... 1,800 28,025
Royal Bank of Scotland Group Plc............ 2,216 34,571
Slough Estates Plc.......................... 9,400 52,102
SmithKline Beecham Plc...................... 5,400 73,986
Standard Chartered Plc...................... 7,000 94,492
Vodafone AirTouch Plc....................... 29,628 135,620
------------
806,213
------------
Total Foreign Investments
(cost $3,519,556)........................ 3,927,915
------------
Total Common Stocks
(cost $11,845,215)....................... 13,086,481
------------

--------------------------------------------------------------------------------
ALLIANCE CONSERVATIVE INVESTORS FUND o 27
<PAGE>

------------------------
PORTFOLIO OF INVESTMENTS
------------------------

Principal
Amount
Company (000) U.S. $ Value
---------------------------------------------------------------------------

Debt Obligations - 73.3%
U.S. Government Obligations - 73.3%
U.S. Treasury Bond
5.50%, 8/15/28........................... $ 9,700 $ 8,810,316
U.S. Treasury Notes
3.875%, 1/15/09(d)....................... 6,052 5,993,473
4.75%, 2/15/04........................... 8,500 7,987,365
4.75%, 11/15/08(b)....................... 3,200 2,857,504
6.50%, 8/31/01........................... 15,795 15,760,409
6.875%, 5/15/06.......................... 4,725 4,801,781
------------
Total Debt Obligations
(cost $47,264,495)....................... 46,210,848
------------
Short-Term Investment - 3.6%
Time Deposit - 3.6%
State Street Euro Dollar
5.50%, 5/01/00
(amortized cost $2,292,000).............. 2,292 2,292,000
------------
Total Investments - 97.7%
(cost $61,401,710)....................... 61,589,329
Other assets less liabilities - 2.3%....... 1,475,132
------------

Net Assets - 100%........................... $ 63,064,461
============

(a) Non-income producing security

(b) Securities, or portion thereof, with an aggregate market value of
$3,994,358 have been segregated to collateralize forward exchange currency
contracts.

(d) Treasury Inflation Protection Securities.

Glossary of Terms:

ADR - American Depositary Receipt

GDR - Global Depositary Receipt

See notes to financial statements.

--------------------------------------------------------------------------------
28 o ALLIANCE CONSERVATIVE INVESTORS FUND
<PAGE>

---------------------------------
STATEMENT OF ASSETS & LIABILITIES
---------------------------------

STATEMENT OF ASSETS & LIABILITIES
April 30, 2000

Growth Conservative
Investors Fund Investors Fund
============== ==============
Assets
Investments in securities, at value
(cost $129,077,102 and $61,401,710,
respectively) ................................ $141,896,244 $ 61,589,329
Cash ............................................ 204 849
Foreign cash, at value (cost $2,574,448
and $241,899, respectively) .................. 2,514,399 239,863
Receivable for investment securities sold ....... 13,933,250 122,847
Interest and dividends receivable ............... 866,187 669,744
Receivable for shares of beneficial interest
sold ......................................... 434,069 686,105
Unrealized appreciation of forward
exchange currency contracts .................. 418,234 84,131
Foreign taxes receivable ........................ 41,458 6,548
------------ ------------
Total assets .................................... 160,104,045 63,399,416
------------ ------------
Liabilities
Payable for investment securities
purchased .................................... 14,689,709 82,216
Payable for shares of beneficial interest
redeemed ..................................... 378,296 83,437
Advisory fee payable ............................ 89,403 9,947
Distribution fee payable ........................ 87,703 39,310
Accrued expenses ................................ 174,466 120,045
------------ ------------
Total liabilities ............................... 15,419,577 334,955
------------ ------------
Net Assets ...................................... $144,684,468 $ 63,064,461
============ ============
Composition of Net Assets
Shares of beneficial interest, at par ........... $ 97 $ 55
Additional paid-in capital ...................... 121,102,685 60,678,520
Undistributed net investment income (loss) ...... 1,240 (56,854)
Accumulated net realized gain on
investments and foreign currency
transactions ................................. 10,424,108 2,182,140
Net unrealized appreciation of investments
and foreign currency denominated assets
and liabilities .............................. 13,156,338 260,600
------------ ------------
$144,684,468 $ 63,064,461
============ ============

See notes to financial statements.

--------------------------------------------------------------------------------
ALLIANCE GROWTH INVESTORS AND CONSERVATIVE INVESTORS FUNDS o 29
<PAGE>

---------------------------------
STATEMENT OF ASSETS & LIABILITIES
---------------------------------

Growth Conservative
Investors Fund Investors Fund
============== ==============
Calculation of Maximum Offering Price
Class A Shares
Net asset value and redemption price per
share ($54,508,770 / 3,682,305 and
$21,648,412 / 1,911,264 shares of
beneficial interest issued and
outstanding, respectively)........... $14.80 $11.33
Sales charge--4.25% of public offering
price................................ .66 .50
------ ------
Maximum offering price.................. $15.46 $11.83
====== ======
Class B Shares
Net asset value and offering price per
share ($78,762,004 / 5,270,938 and
$34,952,205 / 3,019,835 shares of
beneficial interest issued and
outstanding, respectively)........... $14.94 $11.57
====== ======
Class C Shares
Net asset value and offering price per
share ($11,413,694 / 763,226 and
$6,463,844 / 558,186 shares of
beneficial interest issued and
outstanding, respectively)........... $14.95 $11.58
====== ======

See notes to financial statements.

--------------------------------------------------------------------------------
30 o ALLIANCE GROWTH INVESTORS AND CONSERVATIVE INVESTORS FUNDS
<PAGE>

-----------------------
STATEMENT OF OPERATIONS
-----------------------

STATEMENT OF OPERATIONS
Year Ended April 30, 2000

Growth Conservative
Investors Fund Investors Fund
============== ==============
Investment Income
Interest ..................................... $ 3,870,142 $ 3,015,849
Dividends (net of foreign tax withheld of
$51,112 and $8,072, respectively) ......... 796,913 122,211
------------ ------------
Total income ................................. 4,667,055 3,138,060
------------ ------------
Expenses
Advisory fee ................................. 1,037,700 457,144
Distribution fee - Class A ................... 152,573 61,487
Distribution fee - Class B ................... 765,406 345,694
Distribution fee - Class C ................... 109,616 58,875
Transfer agency .............................. 262,439 123,979
Custodian .................................... 123,678 117,721
Printing ..................................... 85,243 46,303
Audit and legal .............................. 49,684 42,507
Registration ................................. 37,596 35,975
Trustees' fees ............................... 18,000 18,000
Miscellaneous ................................ 7,601 4,131
------------ ------------
Total expenses ............................... 2,649,536 1,311,816
Less: expenses waived and assumed by
adviser (See Note B) ...................... -0- (169,640)
Less: expense offset arrangement
(See Note B) .............................. (14,084) (5,642)
------------ ------------
Net expenses ................................. 2,635,452 1,136,534
------------ ------------
Net investment income ........................ 2,031,603 2,001,526
------------ ------------
Realized and Unrealized Gain (Loss) on
Investments and Foreign Currency
Transactions
Net realized gain on investment
transactions .............................. 21,019,667 3,626,854
Net realized loss on foreign currency
transactions .............................. (433,011) (256,746)
Net change in unrealized
appreciation/depreciation of:
Investments ............................. (11,238,919) (3,008,316)
Foreign currency denominated assets
and liabilities ....................... 344,199 75,996
------------ ------------
Net gain on investments and foreign
currency transactions ..................... 9,691,936 437,788
------------ ------------
Net Increase in Net Assets
from Operations ........................... $ 11,723,539 $ 2,439,314
============ ============

See notes to financial statements.

--------------------------------------------------------------------------------
ALLIANCE GROWTH INVESTORS AND CONSERVATIVE INVESTORS FUNDS o 31
<PAGE>

----------------------------------
STATEMENT OF CHANGES IN NET ASSETS
----------------------------------

STATEMENT OF CHANGES
IN NET ASSETS

Year Ended Year Ended
April 30, 2000 April 30, 1999
============== ==============
Increase (Decrease) in Net Assets
from Operations
Net investment income ...................... $ 2,031,603 $ 749,748
Net realized gain on investments and
foreign currency transactions ........... 20,586,656 12,769,703
Net change in unrealized
appreciation/depreciation of
investments and foreign currency
denominated assets and liabilities ...... (10,894,720) 4,691,829
------------- -------------
Net increase in net assets from
operations .............................. 11,723,539 18,211,280
Dividends and Distributions to
Shareholders from:
Net investment income
Class A ................................. (916,889) (418,359)
Class B ................................. (566,024) (295,401)
Class C ................................. (86,672) (35,988)
Distribution in excess of net investment
income
Class A ................................. -0- (214,001)
Class B ................................. -0- (150,826)
Class C ................................. -0- (17,942)
Net realized gain on investments
Class A ................................. (6,542,816) (3,526,765)
Class B ................................. (9,501,774) (6,296,282)
Class C ................................. (1,454,949) (761,076)
Transactions in Shares of Beneficial
Interest
Net increase ............................... 16,940,718 14,418,907
------------- -------------
Total increase ............................. 9,595,133 20,913,547
Net Assets
Beginning of year .......................... 135,089,335 114,175,788
------------- -------------
End of year (including undistributed net
investment income of $1,240 at
April 30, 2000) ......................... $ 144,684,468 $ 135,089,335
============= =============

See notes to financial statements.

--------------------------------------------------------------------------------
32 o ALLIANCE GROWTH INVESTORS FUND
<PAGE>

----------------------------------
STATEMENT OF CHANGES IN NET ASSETS
----------------------------------

STATEMENT OF CHANGES
IN NET ASSETS

Year Ended Year Ended
April 30, 2000 April 30, 1999
============== ==============
Increase (Decrease) in Net Assets
from Operations
Net investment income ........................ $ 2,001,526 $ 1,273,397
Net realized gain on investments and
foreign currency transactions ............. 3,370,108 3,425,696
Net change in unrealized
appreciation/depreciation of
investments and foreign currency
denominated assetsand liabilities ......... (2,932,320) (1,015,940)
------------ ------------
Net increase in net assets from
operations ................................ 2,439,314 3,683,153
Dividends and Distributions to
Shareholders from:
Net investment income
Class A ................................... (696,587) (466,063)
Class B ................................... (940,204) (687,634)
Class C ................................... (158,175) (119,700)
Distribution in excess of net investment
income
Class A ................................... -0- (61,173)
Class B ................................... -0- (89,189)
Class C ................................... -0- (15,332)
Net realized gain on investments
Class A ................................... (1,144,836) (804,489)
Class B ................................... (1,918,554) (1,442,985)
Class C ................................... (317,621) (254,273)
Transactions in Shares of Beneficial
Interest
Net increase ................................. 10,442,988 11,307,818
------------ ------------
Total increase ............................... 7,706,325 11,050,133
Net Assets
Beginning of year ............................ 55,358,136 44,308,003
------------ ------------
End of year .................................. $ 63,064,461 $ 55,358,136
============ ============

See notes to financial statements.

--------------------------------------------------------------------------------
ALLIANCE CONSERVATIVE INVESTORS FUND o 33
<PAGE>

-----------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------

NOTES TO FINANCIAL STATEMENTS
April 30, 2000

NOTE A
Significant Accounting Policies

Alliance Growth Investors Fund and Alliance Conservative Investors Fund (the
"Funds"), two series of The Alliance Portfolios (the "Trust"), are registered
under the Investment Company Act of 1940 as diversified, open-end management
investment companies. The Funds offer Class A, Class B and Class C shares. Class
A shares are sold with a front-end sales charge of up to 4.25% for purchases not
exceeding $1,000,000. With respect to purchases of $1,000,000 or more, Class A
shares redeemed within one year of purchase 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. Class B shares held for a period ending eight years
after the end of the calendar month of purchase will convert to Class A shares.
Class C shares are subject to a contingent deferred sales charge of 1% on
redemptions made within the first year after purchase. All three classes of
shares have identical voting, dividend, liquidation and other rights, except
that each class bears different distribution expenses and has exclusive voting
rights with respect to its distribution plan. The financial statements have been
prepared in conformity with accounting principles generally accepted in the
United States, 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 Funds.

1. Security Valuation

Portfolio securities traded on a national securities exchange, 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 sales 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. 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.

--------------------------------------------------------------------------------
34 o ALLIANCE GROWTH INVESTORS AND CONSERVATIVE INVESTORS FUNDS
<PAGE>

-----------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------

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 and foreign exchange
currency contracts, currency gains and losses realized between the trade and
settlement dates on security transactions and the difference between the amounts
of interest, dividends and foreign tax reclaims recorded on the Funds' books and
the U.S. dollar equivalent amounts actually received or paid. The Funds do 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 of investments and foreign currency denominated assets
and liabilities.

3. Taxes

It is each Fund's policy to meet the requirements of the Internal Revenue Code
applicable to regulated investment companies and to distribute all of its
investment company taxable income and net realized gains, if any, to
shareholders. Therefore, no provisions for federal income or excise taxes are
required.

4. Investment Income and Investment Transactions

Dividend income is recorded on the ex-dividend date. Interest income is accrued
daily. Investment transactions are accounted for on the date securities are
purchased or sold. The Funds accrete discounts and amortize 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 Funds are borne on a pro-rata
basis by each outstanding class of shares, based on the proportionate interest
in each Fund represented by the net assets of such class, except that each
Fund's Class B and Class C shares bear higher distribution and transfer agent
fees than Class A shares. Expenses of the Trust are charged to each Fund in
proportion to net assets.

6. Dividends and Distributions

Dividends and distributions to shareholders are recorded on the ex-dividend
date.

--------------------------------------------------------------------------------
ALLIANCE GROWTH INVESTORS AND CONSERVATIVE INVESTORS FUNDS o 35
<PAGE>

-----------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------

Income dividends and capital gains distributions are determined in accordance
with federal tax regulations and may differ from those determined in accordance
with accounting principles generally accepted in the United States. 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.

During the current fiscal year, the Growth Investors Fund had permanent
differences, primarily due to foreign currency losses and a sell of a passive
foreign investment company, which resulted in a net decrease in undistributed
net investment income and a corresponding increase in accumulated net realized
gain on investments and foreign currency transactions. During the current fiscal
year, the Conservative Investors Fund had permanent differences, primarily due
to foreign currency losses, which resulted in a net decrease in undistributed
net investment income and a corresponding increase in accumulated net realized
gain on investments and foreign currency transactions. These reclassifications
had no effect on net assets.

NOTE B

Advisory Fee and Other Transactions With Affiliates

Under the terms of an investment advisory agreement, the Funds pay Alliance
Capital Management L.P. (the "Adviser"), an advisory fee at an annual rate of
.75% of each Fund's average daily net assets. Such fee is accrued daily and paid
monthly. The Adviser has agreed to waive its fees and bear certain expenses to
the extent necessary to limit total operating expenses on an annual basis to
1.40%, 2.10%, and 2.10% of the daily average net assets for Class A, Class B and
Class C shares, respectively, of the Conservative Investors Fund. For the year
ended April 30, 2000, such reimbursement amounted to $169,640 for the
Conservative Investors Fund.

The Funds compensate 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 Funds. Such compensation
amounted to $197,912 and $79,994 for the Growth Investors Fund and Conservative
Investors Fund, respectively, for the year ended April 30, 2000.

For the year ended April 30, 2000, the Funds' expenses were reduced by $14,084
and $5,642 for the Growth Investors Fund and the Conservative Investors Fund,
respectively, under an expense offset arrangements with Alliance Fund Services,
Inc.

Alliance Fund Distributors, Inc., (the "Distributor"), a wholly-owned subsidiary
of the Adviser, serves as the Distributor of each Fund's shares. The Distributor
has advised the Fund that it has received front-end sales charges of $53,762
from the sales of Class A shares and $90,968 and $5,062 in contingent deferred
sales charges imposed upon redemptions by shareholders of Class B and Class C
shares, respectively, for the year ended April 30, 2000

--------------------------------------------------------------------------------
36 o ALLIANCE GROWTH INVESTORS AND CONSERVATIVE INVESTORS FUNDS
<PAGE>

-----------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------

for the Growth Investors Fund. The Distributor also received front-end sales
charges of $27,135 from the sales of Class A shares and $67,160 and $2,767 in
contingent deferred sales charges imposed upon redemptions by shareholders of
Class B and Class C shares, respectively, for the year ended April 30, 2000 for
the Conservative Investors Fund.

Brokerage commissions paid on investment transactions for the year ended April
30, 2000 amounted to $203,338 and $26,619 for the Growth Investors and
Conservative Investors Funds, respectively, 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, nor to DLJ directly.

Accrued expenses includes amounts owed to one of the Trustees under a deferred
compensation plan of $21,278 and $22,650 respectively, for the Growth Investors
and Conservative Investors Funds, respectively.

NOTE C

Distribution Plans

The Funds have adopted a Plan for each class of shares of the Funds pursuant to
Rule 12b-1 under the Investment Company Act of 1940 (each a "Plan" and
collectively the "Plans"). Under the Plans, the Funds pay distribution and
servicing fees to the Distributor at an annual rate of up to .50% of each Fund's
average daily net assets attributable to the Class A shares and 1% of the
average daily net assets attributable to both Class B and Class C shares. The
fees are accrued daily and paid monthly. The Trustees currently limit payments
under the Class A plan to .30% of each Fund's average daily net assets
attributable to Class A shares. The Plans provide that the Distributor will use
such payments in their entirety for distribution assistance and promotional
activities.

The Funds are not obligated under the Plans to pay any distribution services fee
in excess of the amounts set forth above. The purpose of the payments to the
Distributor under the Plans is to compensate the Distributor for its
distribution services with respect to the sale of each Fund's shares. Since the
Distributor's compensation is not directly tied to its expenses, the amount of
compensation received by it under the Plan during any year may be more or less
than its actual expenses. For this reason, the Plans are characterized by the
staff of the Commission as being of the "compensation" variety.

In the event that a Plan is terminated or not continued, no distribution
services fees (other than current amounts accrued but not yet paid) would be
owed by the Funds to the Distributor with respect to the relevant class.

The Plans also provide that the Adviser may use its own resources to finance
the distribution of each Fund's shares.

NOTE D

Investment Transactions

Purchases and sales of investment securities (excluding short-term investments
and U.S. government securities) for the Growth Investors Fund aggre-

--------------------------------------------------------------------------------
ALLIANCE GROWTH INVESTORS AND CONSERVATIVE INVESTORS FUNDS o 37
<PAGE>

-----------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------

gated $124,148,508 and $131,638,955, respectively, for the year ended April 30,
2000. There were purchases of $85,488,846 and sales of $60,337,906 of U.S.
government and government agency securities for the year ended April 30, 2000.
At April 30, 2000, the cost of investments for federal income tax purposes for
the Growth Investors Fund was $130,593,759. Gross unrealized appreciation of
investments was $13,368,412 and gross unrealized depreciation of investments was
$2,065,927 resulting in net unrealized appreciation of $11,302,485 (excluding
foreign currency transactions).

Purchases and sales of investment securities (excluding short-term investments
and U.S. government securities) for the Conservative Investors Fund aggregated
$16,482,456 and $15,513,816, respectively, for the year ended April 30, 2000.
There were purchases of $36,561,023 and sales/maturity of $16,867,791 of U.S.
government and government agency obligations for the year ended April 30, 2000.
At April 30, 2000, the cost of investments for federal income tax purposes for
the Conservative Investors Fund was substantially the same as the cost for
financial reporting purposes. Gross unrealized appreciation of investments was
$2,036,555 and gross unrealized depreciation of investments was $1,848,936
resulting in net unrealized appreciation of $187,619 (excluding foreign currency
transactions).

The Conservative Investors Fund incurred and elected to defer post October
currency losses of $135,653 for the year ended April 30, 2000. To the extent
that any post October loss is used to offset future capital gains, it is
probable that these gains will not be distributed to shareholders.

1. Forward Exchange Currency Contracts

The Growth Investors and Conservative Investors Funds enter into forward
exchange currency contracts in order to hedge exposure to changes in foreign
currency exchange rates on foreign portfolio holdings. A forward exchange
currency contract is a commitment to purchase or sell a foreign currency at a
future date at a negotiated forward rate. The gain or loss arising from the
difference between the original contracts and the closing of such contracts is
included in net realized gain or loss on foreign currency transactions.

Fluctuations in the value of forward exchange currency contracts held are
recorded for financial reporting purposes as unrealized gains or losses by the
Funds.

The Funds' custodian will place and maintain cash not available for investment
or other liquid assets in a separate account of the Funds having a value equal
to the aggregate amount of the Funds' 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. The face or contract amount, in U.S.
dollars, reflects the total exposure the

--------------------------------------------------------------------------------
38 o ALLIANCE GROWTH INVESTORS AND CONSERVATIVE INVESTORS FUNDS
<PAGE>

-----------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------

Funds have in that particular currency contract.

At April 30, 2000, the outstanding forward exchange currency contracts for the
Growth Investors Fund and the Conservative Investors Fund were as follows:

U.S. $
Contract Value on U.S. $ Unrealized
Amount Origination Current Appreciation
(000) Date Value (Depreciation)
-----------------------------------------------------

Growth Investors Fund

Forward Exchange Currency
Sale Contracts

Euros, settling 6/16/00 7,292 $7,069,806 $6,651,572 $418,234
--------

U.S. $
Contract Value on U.S. $ Unrealized
Amount Origination Current Appreciation
(000) Date Value (Depreciation)
-----------------------------------------------------
Conservative Investors Fund

Forward Exchange Currency
Buy Contracts

Euros, settling 6/16/00 558 $ 525,000 $ 509,211 $(15,789)

Forward Exchange Currency
Sale Contracts

Euros, settling 6/16/00 1,742 1,689,045 1,589,125 99,920
--------
$ 84,131
--------
2. Financial Futures Contracts

The Funds may buy or sell financial futures contracts for the purpose of hedging
their portfolios against adverse affects of anticipated movements in the market.
The Funds bear the market risk that arises from changes in the value of these
financial instruments. The Fund's activities in domestic futures contracts are
conducted through regulated exchanges which do not result in counterparty credit
risk.

At the time the Funds enter into a futures contract, each Fund deposits and
maintains with their custodian as collateral an initial margin as required by
the exchange on which the transaction is effected. Pursuant to the contract, the
Funds agree to receive from or pay to the broker an amount of cash equal to the
daily fluctuation in the value of the contract.

Such receipts or payments are known as variation margin and are recorded by the
Funds as unrealized gains or losses. When the contract is closed, the Funds
record a realized gain or loss equal to the difference between the value of the
contract at the time it was opened and the time it was closed. At April 30,
2000, the Funds had no outstanding futures contracts.

--------------------------------------------------------------------------------
ALLIANCE GROWTH INVESTORS AND CONSERVATIVE INVESTORS FUNDS o 39
<PAGE>

-----------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------

NOTE E

Shares of Beneficial Interest

There is an unlimited number of $0.00001 par value shares of beneficial interest
authorized, divided into three classes, designated Class A, Class B and Class C
shares for both Funds. Transactions in shares of beneficial interest were as
follows:

Alliance Growth Investors Fund
--------------------------- -----------------------------
Shares Amount
--------------------------- -----------------------------
Year Ended Year Ended Year Ended Year Ended
April 30, April 30, April 30, April 30,
2000 1999 2000 1999
-----------------------------------------------------------
Class A
Shares sold 1,607,101 566,266 $ 24,612,346 $ 8,776,626
--------------------------------------------------------------------------------
Shares issued in
reinvestment of
dividends and
distributions 505,587 281,053 7,124,017 4,047,170
--------------------------------------------------------------------------------
Shares converted
from Class B 228,015 510,928 3,507,013 7,806,714
--------------------------------------------------------------------------------
Shares redeemed (1,691,118) (527,391) (25,813,183) (8,032,657)
--------------------------------------------------------------------------------
Net increase 649,585 830,856 $ 9,430,193 $ 12,597,853
================================================================================

Class B
Shares sold 1,149,517 964,442 $ 17,358,195 $ 14,830,200
--------------------------------------------------------------------------------
Shares issued in
reinvestment of
dividends and
distributions 683,528 453,061 9,753,980 6,573,928
--------------------------------------------------------------------------------
Shares converted
to Class A (226,710) (509,338) (3,507,013) (7,806,714)
--------------------------------------------------------------------------------
Shares redeemed (1,220,053) (827,094) (18,489,541) (12,604,631)
--------------------------------------------------------------------------------
Net increase 386,282 81,071 $ 5,115,621 $ 992,783
================================================================================

Class C
Shares sold 373,595 210,668 $ 5,705,996 $ 3,218,152
--------------------------------------------------------------------------------
Shares issued in
reinvestment of
dividends and
distributions 105,627 54,989 1,508,379 798,413
--------------------------------------------------------------------------------
Shares redeemed (321,515) (211,237) (4,819,471) (3,188,294)
--------------------------------------------------------------------------------
Net increase 157,707 54,420 $ 2,394,904 $ 828,271
================================================================================

--------------------------------------------------------------------------------
40 o ALLIANCE GROWTH INVESTORS AND CONSERVATIVE INVESTORS FUNDS
<PAGE>

-----------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------

Alliance Conservative Investors Fund
--------------------------- -----------------------------
Shares Amount
--------------------------- -----------------------------
Year Ended Year Ended Year Ended Year Ended
April 30, April 30, April 30, April 30,
2000 1999 2000 1999
-----------------------------------------------------------
Class A
Shares sold 548,247 346,984 $ 6,333,105 $ 4,157,099
--------------------------------------------------------------------------------
Shares issued in
reinvestment of
dividends and
distributions 155,862 107,403 1,749,897 1,256,931
--------------------------------------------------------------------------------
Shares converted
from Class B 136,551 390,356 1,592,955 4,672,943
--------------------------------------------------------------------------------
Shares redeemed (486,067) (267,054) (5,605,325) (3,183,427)
--------------------------------------------------------------------------------
Net increase 354,593 577,689 $ 4,070,632 $ 6,903,546
================================================================================

Class B
Shares sold 1,216,848 1,094,428 $ 14,490,361 $ 13,349,393
--------------------------------------------------------------------------------
Shares issued in
reinvestment of
dividends and
distributions 235,528 173,141 2,699,581 2,068,607
--------------------------------------------------------------------------------
Shares converted
to Class A (133,744) (388,535) (1,592,955) (4,672,943)
--------------------------------------------------------------------------------
Shares redeemed (870,515) (639,564) (10,248,789) (7,883,521)
--------------------------------------------------------------------------------
Net increase 448,117 239,470 $ 5,348,198 $ 2,861,536
================================================================================

Class C
Shares sold 256,584 216,203 $ 3,008,519 $ 2,631,544
--------------------------------------------------------------------------------
Shares issued in
reinvestment of
dividends and
distributions 38,615 30,304 442,931 362,040
--------------------------------------------------------------------------------
Shares redeemed (206,128) (118,770) (2,427,292) (1,450,848)
--------------------------------------------------------------------------------
Net increase 89,071 127,737 $ 1,024,158 $ 1,542,736
================================================================================

NOTE F

Bank Borrowing

A number of open-end mutual funds managed by the Adviser, including the Funds,
participate in a $750 million revolving credit facility (the "Facility")
intended to provide for 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 Funds did not utilize
the Facility during the year ended April 30, 2000.

--------------------------------------------------------------------------------
ALLIANCE GROWTH INVESTORS AND CONSERVATIVE INVESTORS FUNDS o 41
<PAGE>

--------------------
FINANCIAL HIGHLIGHTS
--------------------

FINANCIAL HIGHLIGHTS

Selected Data For a Share of Beneficial Interest Outstanding Throughout Each
Year

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------
Class A
----------------------------------------------------------------------------------
Year Ended April 30,
2000 1999 1998 1997 1996
----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year .... $15.80 $15.09 $13.12 $14.08 $12.08
----------------------------------------------------------------------------------
Income From Investment Operations
Net investment income ................. .29(a) .17(a) .12(a) .16(a)(b) .10(b)
Net realized and unrealized gain on
investment transactions ............. 1.05 2.20 3.34 .76 2.75
----------------------------------------------------------------------------------
Net increase in net asset value from
operations .......................... 1.34 2.37 3.46 .92 2.85
----------------------------------------------------------------------------------
Less: Dividends and Distributions
Dividends from net investment income .. (.29) (.16) (.16) (.19) (.26)
Distributions in excess of net
investment income ................... -0- (.09) -0- -0- -0-
Distributions from net realized gains . (2.05) (1.41) (1.33) (1.69) (.59)
----------------------------------------------------------------------------------
Total dividends and distributions ..... (2.34) (1.66) (1.49) (1.88) (.85)
----------------------------------------------------------------------------------
Net asset value, end of year .......... $14.80 $15.80 $15.09 $13.12 $14.08
==================================================================================
Total Return
Total investment return based on net
asset value(c) ...................... 9.19% 16.81% 27.96% 6.69% 23.87%
Ratios/Supplemental Data
Net assets, end of year (000's omitted) $54,509 $47,917 $33,222 $27,453 $30,608
Ratios to average net assets of:
Expenses, net of waivers/
reimbursements .................... 1.46%(d) 1.56%(d) 1.60%(d) 1.56%(d) 1.40%
Expenses, before waivers/
reimbursements .................... 1.46% 1.56% 1.60% 1.73% 1.65%
Net investment income ............... 1.93% 1.12% .81% 1.14% 2.02%
Portfolio turnover rate ............... 155% 84% 137% 133% 209%
</TABLE>

See footnote summary on page 47.

--------------------------------------------------------------------------------
42 o ALLIANCE GROWTH INVESTORS FUND
<PAGE>

--------------------
FINANCIAL HIGHLIGHTS
--------------------

Selected Data For a Share of Beneficial Interest Outstanding Throughout Each
Year

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------
Class B
------------------------------------------------------------------------------------
Year Ended April 30,
2000 1999 1998 1997 1996
------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year .... $15.88 $15.12 $13.11 $14.08 $12.09
------------------------------------------------------------------------------------
Income From Investment Operations
Net investment income ................. .18(a) .06(a) .01(a) .06(a)(b) .06(b)
Net realized and unrealized gain on
investment transactions ............. 1.05 2.21 3.35 .77 2.70
------------------------------------------------------------------------------------
Net increase in net asset value from
operations .......................... 1.23 2.27 3.36 .83 2.76
------------------------------------------------------------------------------------
Less: Dividends and Distributions
Dividends from net investment income .. (.12) (.07) (.02) (.11) (.18)
Distributions in excess of net
investment income ................... -0- (.03) -0- -0- -0-
Distributions from net realized gains . (2.05) (1.41) (1.33) (1.69) (.59)
------------------------------------------------------------------------------------
Total dividends and distributions ..... (2.17) (1.51) (1.35) (1.80) (.77)
------------------------------------------------------------------------------------
Net asset value, end of year .......... $14.94 $15.88 $15.12 $13.11 $14.08
====================================================================================
Total Return
Total investment return based on net
asset value(c) ...................... 8.39% 15.96% 27.04% 5.98% 23.06%
Ratios/Supplemental Data
Net assets, end of year (000's omitted) $78,762 $77,554 $72,618 $61,709 $59,978
Ratios to average net assets of:
Expenses, net of waivers/
reimbursements .................... 2.18%(d) 2.29%(d) 2.31%(d) 2.27%(d) 2.10%
Expenses, before waivers/
reimbursements .................... 2.18% 2.29% 2.31% 2.44% 2.35%
Net investment income ............... 1.20% .39% .10% .42% 1.15%
Portfolio turnover rate ............... 155% 84% 137% 133% 209%
</TABLE>

See footnote summary on page 47.

--------------------------------------------------------------------------------
ALLIANCE GROWTH INVESTORS FUND o 43
<PAGE>

--------------------
FINANCIAL HIGHLIGHTS
--------------------

Selected Data For a Share of Beneficial Interest Outstanding Throughout Each
Year

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------
Class C
---------------------------------------------------------------------------------
Year Ended April 30,
2000 1999 1998 1997 1996
---------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year .... $15.88 $15.13 $13.12 $14.09 $12.10
---------------------------------------------------------------------------------
Income From Investment Operations
Net investment income ................. .18(a) .06(a) .02(a) .06(a)(b) .06(b)
Net realized and unrealized gain on
investment transactions ............. 1.06 2.20 3.34 .77 2.70
---------------------------------------------------------------------------------
Net increase in net asset value from
operations .......................... 1.24 2.26 3.36 .83 2.76
---------------------------------------------------------------------------------
Less: Dividends and Distributions
Dividends from net investment income .. (.12) (.07) (.02) (.11) (.18)
Distributions in excess of net
investment income ................... -0- (.03) -0- -0- -0-
Distributions from net realized gains . (2.05) (1.41) (1.33) (1.69) (.59)
---------------------------------------------------------------------------------
Total dividends and distributions ..... (2.17) (1.51) (1.35) (1.80) (.77)
---------------------------------------------------------------------------------
Net asset value, end of year .......... $14.95 $15.88 $15.13 $13.12 $14.09
=================================================================================
Total Return
Total investment return based on net
asset value(c) ...................... 8.45% 15.88% 27.02% 5.97% 23.04%
Ratios/Supplemental Data
Net assets, end of year (000's omitted) $11,414 $9,618 $8,336 $6,033 $5,915
Ratios to average net assets of:
Expenses, net of waivers/
reimbursements .................... 2.17%(d) 2.28%(d) 2.30%(d) 2.28%(d) 2.10%
Expenses, before waivers/
reimbursements .................... 2.17% 2.28% 2.30% 2.43% 2.36%
Net investment income ............... 1.21% .40% .11% .42% 1.15%
Portfolio turnover rate ............... 155% 84% 137% 133% 209%
</TABLE>

See footnote summary on page 47.

--------------------------------------------------------------------------------
44 o ALLIANCE GROWTH INVESTORS FUND
<PAGE>

--------------------
FINANCIAL HIGHLIGHTS
--------------------

Selected Data For a Share of Beneficial Interest Outstanding Throughout Each
Year

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
Class A
--------------------------------------------------------------------------------
Year Ended April 30,
2000 1999 1998 1997 1996
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year .... $11.88 $11.97 $11.31 $11.14 $10.38
--------------------------------------------------------------------------------
Income From Investment Operations
Net investment income(b) .............. .44(a) .38(a) .39(a) .41(a) .51
Net realized and unrealized gain on
investment transactions ............. .07 .61 1.54 .46 .80
--------------------------------------------------------------------------------
Net increase in net asset value from
operations .......................... .51 .99 1.93 .87 1.31
--------------------------------------------------------------------------------
Less: Dividends and Distributions
Dividends from net investment income .. (.40) (.38) (.43) (.45) (.55)
Distributions in excess of net
investment income ................... -0- (.05) -0- -0- -0-
Distributions from net realized gains . (.66) (.65) (.84) (.25) -0-
--------------------------------------------------------------------------------
Total dividends and distributions ..... (1.06) (1.08) (1.27) (.70) (.55)
--------------------------------------------------------------------------------
Net asset value, end of year .......... $11.33 $11.88 $11.97 $11.31 $11.14
================================================================================
Total Return
Total investment return based on net
asset value(c) ...................... 4.50% 8.59% 17.87% 7.90% 12.69%
Ratios/Supplemental Data
Net assets, end of year (000's omitted) $21,648 $18,493 $11,715 $11,860 $14,161
Ratios to average net assets of:
Expenses, net of waivers/
reimbursements .................... 1.41%(d) 1.41%(d) 1.41%(d) 1.40%(d) 1.40%
Expenses, before waivers/
reimbursements .................... 1.67% 1.74% 1.91% 1.90% 1.73%
Net investment income(b) ............ 3.75% 3.17% 3.33% 3.66% 4.43%
Portfolio turnover rate ............... 54% 105% 138% 174% 267%
</TABLE>

See footnote summary on page 47.

--------------------------------------------------------------------------------
ALLIANCE CONSERVATIVE INVESTORS FUND o 45
<PAGE>

--------------------
FINANCIAL HIGHLIGHTS
--------------------

Selected Data For a Share of Beneficial Interest Outstanding Throughout Each
Year

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
Class B
--------------------------------------------------------------------------------
Year Ended April 30,
2000 1999 1998 1997 1996
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year .... $12.12 $12.19 $11.49 $11.31 $10.51
--------------------------------------------------------------------------------
Income From Investment Operations
Net investment income(b) .............. .36(a) .30(a) .32(a) .34(a) .43
Net realized and unrealized gain on
investment transactions ............. .07 .63 1.55 .46 .82
--------------------------------------------------------------------------------
Net increase in net asset value from
operations .......................... .43 .93 1.87 .80 1.25
--------------------------------------------------------------------------------
Less: Dividends and Distributions
Dividends from net investment income .. (.32) (.31) (.33) (.37) (.45)
Distributions in excess of net
investment income ................... -0- (.04) -0- -0- -0-
Distributions from net realized gains . (.66) (.65) (.84) (.25) -0-
--------------------------------------------------------------------------------
Total dividends and distributions ..... (.98) (1.00) (1.17) (.62) (.45)
--------------------------------------------------------------------------------
Net asset value, end of year .......... $11.57 $12.12 $12.19 $11.49 $11.31
================================================================================
Total Return
Total investment return based on net
asset value(c) ...................... 3.73% 7.82% 17.04% 7.10% 11.95%
Ratios/Supplemental Data
Net assets, end of year (000's omitted) $34,952 $31,177 $28,432 $28,037 $31,979
Ratios to average net assets of:
Expenses, net of waivers/
reimbursements .................... 2.11%(d) 2.11%(d) 2.11%(d) 2.10%(d) 2.10%
Expenses, before waivers/
reimbursements .................... 2.40% 2.48% 2.61% 2.61% 2.44%
Net investment income(b) ............ 3.05% 2.48% 2.63% 2.96% 3.72%
Portfolio turnover rate ............... 54% 105% 138% 174% 267%
</TABLE>

--------------------------------------------------------------------------------
46 o ALLIANCE CONSERVATIVE INVESTORS FUND
<PAGE>

--------------------
FINANCIAL HIGHLIGHTS
--------------------

Selected Data For a Share of Beneficial Interest Outstanding Throughout Each
Year

<TABLE>
<CAPTION>
---------------------------------------------------------------------------
Class C
---------------------------------------------------------------------------
Year Ended April 30,
2000 1999 1998 1997 1996
---------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year .... $12.13 $12.19 $11.49 $11.31 $10.52
---------------------------------------------------------------------------
Income From Investment Operations
Net investment income(b) .............. .36(a) .30(a) .32(a) .34(a) .41
Net realized and unrealized gain on
investment transactions ............. .07 .64 1.55 .46 .83
---------------------------------------------------------------------------
Net increase in net asset value from
operations .......................... .43 .94 1.87 .80 1.24
---------------------------------------------------------------------------
Less: Dividends and Distributions
Dividends from net investment income .. (.32) (.31) (.33) (.37) (.45)
Distribution in excess of net
investment income ................... -0- (.04) -0- -0- -0-
Distributions from net realized gains . (.66) (.65) (.84) (.25) -0-
---------------------------------------------------------------------------
Total dividends and distributions ..... (.98) (1.00) (1.17) (.62) (.45)
---------------------------------------------------------------------------
Net asset value, end of year .......... $11.58 $12.13 $12.19 $11.49 $11.31
===========================================================================
Total Return
Total investment return based on net
asset value(c) ...................... 3.72% 7.91% 17.04% 7.10% 11.84%
Ratios/Supplemental Data
Net assets, end of year (000's omitted) $6,464 $5,688 $4,162 $4,150 $5,326
Ratios to average net assets of:
Expenses, net of waivers/
reimbursements .................... 2.11%(d) 2.11%(d) 2.11%(d) 2.10%(d) 2.10%
Expenses, before waivers/
reimbursements .................... 2.39% 2.47% 2.61% 2.60% 2.45%
Net investment income(b) ............ 3.05% 2.47% 2.63% 2.96% 3.71%
Portfolio turnover rate ............... 54% 105% 138% 174% 267%
</TABLE>

(a) Based on average shares outstanding.

(b) Net of fees waived and expenses reimbursed by Adviser.

(c) 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.

(d) Ratios reflect expenses grossed up for expense offset arrangement with the
transfer agent. For the periods shown below the net expense ratios were as
follows:

Alliance Growth Investors Alliance Conservative Investors
----------------------------- -------------------------------
Year Ended April 30, Year Ended April 30,
----------------------------- -------------------------------
2000 1999 1998 1997 2000 1999 1998 1997
--------------------------------------------------------------
Class A 1.45% 1.54% 1.59% 1.55% 1.40% 1.40% 1.40% 1.40%
Class B 2.17% 2.27% 2.29% 2.26% 2.10% 2.10% 2.10% 2.10%
Class C 2.16% 2.27% 2.29% 2.26% 2.10% 2.10% 2.10% 2.10%

--------------------------------------------------------------------------------
ALLIANCE CONSERVATIVE INVESTORS FUND o 47
<PAGE>

---------------------------------
REPORT OF INDEPENDENT ACCOUNTANTS
---------------------------------

REPORT OF INDEPENDENT
ACCOUNTANTS

To the Trustees and Shareholders of Alliance Growth Investors Fund and Alliance
Conservative Investors Fund

In our opinion, the accompanying statements of assets and liabilities, including
the portfolios of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Alliance Growth Investors Fund and
Alliance Conservative Investors Fund (separately managed portfolios constituting
parts of The Alliance Portfolios, hereafter referred to as the "Funds") at April
30, 2000, the results of each of their operations for the year then ended, the
changes in each of their net assets for each of the two years in the period then
ended and the financial highlights for each of the periods presented, in
conformity with accounting principles generally accepted in the United States.
These financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Funds' management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with auditing standards generally accepted in the United States, which require
that we plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements, assessing the accounting principles used and
significant estimates made by management, and evaluating the overall financial
statement presentation. We believe that our audits, which included confirmation
of securities at April 30, 2000 by correspondence with the custodian and
brokers, provide a reasonable basis for the opinion expressed above.

PricewaterhouseCoopers LLP
New York, New York
June 16, 2000

TAX INFORMATION

(unaudited)

In order to meet certain requirements of the Internal Revenue Code we are
advising you that $16,404,512 and $2,840,096 of the capital gain distributions
paid by the Alliance Growth Investors and Conservative Investors Funds,
respectively, during the fiscal year ended April 30, 2000, are subject to the
maximum tax rate of 20%. Shareholders should not use the above information to
prepare their tax returns. The information necessary to complete your tax
returns was included with your Form 1099 DIV which was sent to you separately in
January 2000.

--------------------------------------------------------------------------------
48 o ALLIANCE GROWTH INVESTORS AND CONSERVATIVE INVESTORS FUNDS
<PAGE>

----------------------------
GLOSSARY OF INVESTMENT TERMS
----------------------------

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.

bond

Bonds are issued by governments or corporations when they need to raise cash.
Bonds are sold, or issued, to investors and have a maturity date, which is the
date the issuer is obligated to repay the investor for the principal, or face
amount, of the Bond. Bonds also pay interest until maturity. Bonds are also
called fixed-income securities

common stock

A type of security that represents ownership in a public company.

Consumer Price Index (CPI)

An index that measures the cost of living. The CPI is published by the U.S.
Bureau of Labor Statistics.

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.

monetary policy

The regulation of the money supply and interest rates by a country's central
bank with the purpose of controlling inflation and stabilizing currency

net asset value (NAV)

The value of a mutual fund's total assets, minus its liabilities, divided by the
number of shares outstanding.

portfolio

The collection of securities that make up a Fund's or an investor's investments.

yield

The rate of return on an asset, usually referring to dividend or interest
payments, expressed as a percentage of current market price.

--------------------------------------------------------------------------------
ALLIANCE GROWTH INVESTORS AND CONSERVATIVE INVESTORS FUNDS o 49
<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.

--------------------------------------------------------------------------------
50 o ALLIANCE GROWTH INVESTORS AND CONSERVATIVE INVESTORS FUNDS
<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 INVESTORS AND CONSERVATIVE INVESTORS FUNDS o 51
<PAGE>

------------------
BOARD OF DIRECTORS
------------------

BOARD OF TRUSTEES

John D. Carifa, Chairman and President
Ruth Block(1)
John H. Dobkin(1)
David H. Dievler(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
Nicholas D. P. Carn, Vice President
Edmund P. Bergan, Jr., Clerk
Mark D. Gersten, Treasurer & Chief Financial Officer
Vincent S. Noto, Controller & Chief Accounting Officer

Custodian

State Street Bank & Trust Company
225 Franklin Street
Boston, MA 02110

Principal Underwriter

Alliance Fund Distributors, Inc.
1345 Avenue of the Americas
New York, NY 10105

Legal Counsel

Ropes & Gray
One International Place
Boston, MA 02110-02624

Transfer Agent

Alliance Fund Services, Inc.
P.O. Box 1520
Secaucus, NJ 07096-1520
Toll-Free 1-800-221-5672

Independent Accountants

PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, New York 10036-2798

(1) Member of the Audit Committee.

--------------------------------------------------------------------------------
52 o ALLIANCE GROWTH INVESTORS AND CONSERVATIVE INVESTORS FUNDS
<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.

--------------------------------------------------------------------------------
ALLIANCE GROWTH INVESTORS AND CONSERVATIVE INVESTORS FUNDS o 53
<PAGE>

Alliance Growth Investors and Conservative Investors Funds ---------------
1345 Avenue of the Americas BULK RATE
New York, NY 10105 U.S. POSTAGE
(800) 221-5672 PAID
New York, NY
Permit No. 7131
---------------

AllianceCapital[LOGO](R)
The Investment Professional's Choice

(R) These registered service marks used under license from the owner, Alliance
Capital Management L.P.

GICIAR400