--------------------------------------------------------------------------------
ASSET ALLOCATION
--------------------------------------------------------------------------------
Alliance Growth
Investors Fund
and
Alliance Conservative
Investors Fund
Semi-Annual Report
October 31, 2000
[GRAPHIC OMITTED]
Alliance Capital [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
---------------------------
This shareholder report must be preceded or accompanied by the Fund's prospectus
for individuals who are not current shareholders of the Fund.
<PAGE>
----------------------
LETTER TO SHAREHOLDERS
----------------------
LETTER TO SHAREHOLDERS
December 27, 2000
Dear Shareholder:
This report provides the investment results and market activity for Alliance
Growth Investors Fund and Alliance Conservative Investors Fund for the
semi-annual reporting period ended October 31, 2000.
Investment Objective and Policies for Alliance Growth Investors Fund
Alliance Growth Investors Fund seeks to achieve the highest total return
consistant with Alliance's determination of reasonable risk through investment
in a mix of equity and fixed income securities. Normally, the Fund will invest
approximately 70% of its total assets in equity securities.
Investment Results for Alliance Growth Investors Fund
During the six- and 12-month periods ended October 31, 2000, Class A shares of
Alliance Growth Investors Fund returned -2.36% and 4.56%, respectively. The
corresponding returns for the composite benchmark were 1.02% and 6.45%,
respectively.
Fixed income investments over the six- and 12-month periods have performed
reasonably close to the composite. In a period in which equity investments
underperformed, the asset allocation decision to have above-benchmark exposure
to bonds was thus beneficial. Equity performance was the chief contributor to
the underperformance of the Fund. Notwithstanding the Fund's relatively low
technology weighting, stock selection in the U.S. market reduced value during a
period, particularly in the past six months, when many important technology
companies, some of which were held by the Fund, fell markedly in price.
Overseas, equity performance was hampered by the effects of currency weakness in
Europe and poor market returns in volatile Asian stock markets.
INVESTMENT RESULTS*
Periods Ended October 31, 2000
-----------------------
Total Returns
-----------------------
6 Months 12 Months
--------------------------------------------------------------------------------
Alliance Growth
Investors Fund
Class A -2.36% 4.56%
--------------------------------------------------------------------------------
Class B -2.68% 3.85%
--------------------------------------------------------------------------------
Class C -2.68% 3.85%
--------------------------------------------------------------------------------
S&P 500
Stock Index -1.03% 6.08%
--------------------------------------------------------------------------------
Lehman Brothers
Aggregate
Bond Index 5.80% 7.30%
--------------------------------------------------------------------------------
70%/30%
Composite:
S&P 500 Stock
Index / Lehman
Brothers
Aggregate
Bond Index 1.02% 6.45%
--------------------------------------------------------------------------------
* The Fund's investment results represent total returns for the periods
shown and are based on the net asset value (NAV) of each class of shares
as of October 31, 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 unmanaged S&P 500 Stock Index is comprised of 500 U.S. companies and
is a common measure of the performance of the
--------------------------------------------------------------------------------
ALLIANCE GROWTH INVESTORS AND CONSERVATIVE INVESTORS FUNDS o 1
<PAGE>
----------------------
LETTER TO SHAREHOLDERS
----------------------
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/Credit 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 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 any specific investment, including Alliance
Growth Investors Fund.
Additional investment results appear on pages 6-9.
Investment Objective and Policies for Alliance Conservative Investors Fund
Alliance Conservative Investors Fund seeks to achieve a high total return
without, in the view of Alliance, undue risk to principal through investment in
a mix of equity and fixed income securities. Normally, the Fund will invest
approximately 70% of its total assets in fixed income securities.
Investment Results for Alliance Conservative Investors Fund
During the six- and 12-month periods ended October 31, 2000, Class A shares of
Alliance Conservative Investors Fund returned 1.68% and 5.09%, respectively. The
corresponding returns for the composite benchmark were 3.75% and 6.93%,
respectively.
As with Alliance Growth Investors Fund, underperformance was reduced by the
asset allocation decision to have above benchmark exposure to bonds over the
last several months. Fixed income investments performed in line with the
composite. Again, similar to Alliance Growth Investors Fund, equity performance
was hindered by stock selection in the U.S., a weak currency in Europe and poor
market returns in volatile Asian markets.
INVESTMENT RESULTS*
Periods Ended October 31, 2000
---------------------
Total Returns
---------------------
6 Months 12 Months
--------------------------------------------------------------------------------
Alliance
Conservative
Investors Fund
Class A 1.68% 5.09%
--------------------------------------------------------------------------------
Class B 1.40% 4.29%
--------------------------------------------------------------------------------
Class C 1.32% 4.29%
--------------------------------------------------------------------------------
Lehman
Brothers
Aggregate
Bond Index 5.80% 7.30%
--------------------------------------------------------------------------------
S&P 500
Stock Index -1.03% 6.08%
--------------------------------------------------------------------------------
70%/30% Composite:
Lehman Brothers
Aggregate
Bond Index /
S&P 500
Stock Index 3.75% 6.93%
--------------------------------------------------------------------------------
* The Fund's investment results represent total returns for the periods
shown and are based on the net asset value (NAV) of each class of shares
as of October 31, 2000. All fees and expenses related to the operation of
the Fund have been
--------------------------------------------------------------------------------
2 o ALLIANCE GROWTH INVESTORS AND CONSERVATIVE INVESTORS FUNDS
<PAGE>
----------------------
LETTER TO SHAREHOLDERS
----------------------
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 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/Credit
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 unmanaged S&P 500
Stock Index is comprised 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
After the hard pace set in the opening months of the year, stock market
volatility has trailed off somewhat over the past five months. However, this has
not been the case in all regions. This relative placidity has not coincided with
much more satisfying returns. The MSCI World Index fell approximately 5% from
the end of April to the end of September, and no major region recorded a gain in
U.S. dollar terms. North America and the United Kingdom performed relatively
well, declining 3% and 4%, respectively. Due in no small part to the effect of a
weak currency, the EMU (European Monetary Union) region fell by 8%. Without
such a disadvantage, the Pacific region lost 9%.
All regions continued to struggle with concerns that the profit growth of highly
valued technology companies would not meet expectations. In Asia, the
semiconductor sector was under the most pressure. In the U.S. and Europe, the
telecommunications sector suffered as sales growth slowed from the dizzying
heights of recent years. It is ominous that companies that benefited from the
boom in capital expenditure in the Internet sector have shown a pattern of
softer profit growth. This particular sector has faced severely adverse market
conditions. The question investors must now exercise greatly is how far through
the market this fall off in spending will be felt.
Over the period, U.S. government bond markets showed little dramatic change.
However, there was a considerable price change as markets attempted to discount
future growth and inflation rates. This involved driving up Treasuries through
the late spring and summer on increasingly strong indications that
--------------------------------------------------------------------------------
ALLIANCE GROWTH INVESTORS AND CONSERVATIVE INVESTORS FUNDS o 3
<PAGE>
----------------------
LETTER TO SHAREHOLDERS
----------------------
growth prospects were slowing and then driving them back down again in September
in reaction to high oil prices and signs of continuing robust consumer
sentiment. Both sides of this trade can point to sound supporting evidence.
Business confidence has definitely fallen away over several months but, on the
other hand, consumer confidence and private sector credit continue to be
extremely strong. The oil price speaks for itself. The 10-year T-bond was up
over a point and yielding some 40 basis points less by the end of September.
The story of currencies over the past several months has mainly been the story
of the euro. The single currency dropped approximately 9% against the U.S.
dollar, hitting new lows with great regularity. The once current argument that
the currency would rally on stock market weakness in the U.S. has been refuted
by the facts. It now seems that investors continue to prefer the dynamics of the
U.S. economy even without the inducement of a bull market.
The widely reported ambitions of some politicians and bureaucrats in Europe to
see the currency ascend to the status of an alternative reserve to the U.S.
dollar have been severely dented during the reporting period. The combined
intervention of major central banks in September did little more than arrest
what was becoming an alarming slide in the exchange rate, while the monetary
tightening undertaken by the European Central Bank (ECB) had little noticeable
effect at all. In difficult market circumstances, investors still seem to see
security in the U.S. dollar.
--------------------------------------------------------------------------------
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 also Chief Investment Officer for
Alliance Asset Allocation Group. He has over 22 years of investment experience.
Two reasons to remain cautious of the euro for now: the fact that oil is traded
internationally in U.S. currency and the less-than-resolute reactions of several
European governments in the face of fiscal protests over high fuel duties.
We appreciate your investment in Alliance's asset allocation funds and look
forward to reporting their investment results in the ensuing periods.
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 10/31/00
[The following table was depicted as a mountain chart in the printed material.]
<PLOT POINTS TO COME>
S&P 500 Stock Index: $41,008
70% S&P 500 Stock Index / 30% LB Aggregate Bond Index: $34,009
Alliance Growth Investors Fund Class A: $25,652
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 10/31/00) as
compared to the performance of an appropriate broad-based index and a composite
benchmark. 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 is comprised 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/Credit 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 70%/30% composite benchmark is a blend
of both the S&P 500 Stock Index and the Lehman Brothers Aggregate Bond Index
with a 70%/30% weighting, respectively.
When comparing Alliance Growth Investors Fund to the index and composite
benchmark shown above, you should note that no charges or expenses are reflected
in the performance of the index and composite benchmark. 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 10/31
[BAR CHART OMITTED]
<PLOT POINTS TO COME>
Alliance Growth Investors Fund--Yearly Periods Ended 10/31
--------------------------------------------------------------------------------
70% S&P 500 Stock Index/
Alliance Growth 30% Lehman Brothers
Investors Fund Aggregate Bond Index
--------------------------------------------------------------------------------
10/31/92* 7.50% 3.62%
10/31/93 16.25% 14.00%
10/31/94 -1.34% 1.60%
10/31/95 18.95% 23.18%
10/31/96 11.35% 18.61%
10/31/97 17.42% 25.14%
10/31/98 13.73% 18.21%
10/31/99 18.47% 18.12%
10/31/00 4.56% 6.45%
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 Fund's
net asset value (NAV). All fees and expenses related to the operation of the
Fund have been deducted, but no adjustment has been made for sales charges that
may apply when shares are purchased or redeemed. Returns for Class B and Class C
shares will vary due to different expenses charged to these classes. 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 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/Credit 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 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 in vest directly in an index, and its results
are not indicative of any specific investment, including Alliance Growth
Investors Fund.
* The Fund's return for the period ended 10/31/92 is from the Fund's
inception date of 5/4/92 through 10/31/92. The composite benchmark's
return for the period ended 10/31/92 is from 4/30/92 through 10/31/92.
--------------------------------------------------------------------------------
ALLIANCE GROWTH INVESTORS FUND o 7
<PAGE>
-----------------
PORTFOLIO SUMMARY
-----------------
PORTFOLIO SUMMARY
October 31, 2000 (unaudited)
ALLIANCE GROWTH INVESTORS FUND
INCEPTION DATES PORTFOLIO STATISTICS
Class A Shares Net Assets ($mil): $145.8
5/4/92 Median Market Capitalization ($mil): $61,699
Class B Shares
5/4/92
Class C Shares
8/2/93
SECURITY TYPE
Equities
o 43.49% Common Stock
Fixed Income [PIE CHART OMITTED]
o 51.08% Treasury
o 5.43% Short-Term
All data as of October 31, 2000. The Fund's security type breakdown is 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
AVERAGE ANNUAL TOTAL RETURNS AS OF OCTOBER 31, 2000
Class A Shares
--------------------------------------------------------------------------------
Without Sales Charge With Sales Charge
1 Year 4.56% 0.09%
5 Years 12.99% 12.02%
Since Inception* 12.40% 11.83%
Class B Shares
--------------------------------------------------------------------------------
Without Sales Charge With Sales Charge
1 Year 3.85% 0.24%
5 Years 12.20% 12.20%
Since Inception* 11.65% 11.65%
Class C Shares
--------------------------------------------------------------------------------
Without Sales Charge With Sales Charge
1 Year 3.85% 2.95%
5 Years 12.21% 12.21%
Since Inception* 10.92% 10.92%
SEC AVERAGE ANNUAL TOTAL RETURNS (WITH SALES CHARGES)
AS OF THE MOST RECENT QUARTER-END (SEPTEMBER 30, 2000)
Class A Class B Class C
--------------------------------------------------------------------------------
1 Year 4.01% 4.04% 6.91%
5 Years 12.25% 12.42% 12.44%
Since Inception* 12.08% 11.88% 11.20%
The Fund's investment results represent average annual total returns. The
returns reflect reinvestment of dividends and/or capital gains distributions in
additional shares without and with 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.
The value of the fixed income securities will change as the general level of
interest rates fluctuate. The Fund can invest in foreign securities, including
emerging markets, which may magnify these fluctuations due to changes in foreign
exchange rates and the possibility of substantial volatility due to political
and economic uncertainties in foreign countries. The Fund may invest a portion
of its assets in below investment grade debt securities, which are subject to
special risks.
Past performance does not guarantee future results. Investment return and
principal value will fluctuate so that an investor's shares, when redeemed, may
be worth more or less than their original cost.
* Inception date: 5/4/92, Classes A and 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 10/31/00
[The following table was depicted as a mountain chart in the printed material.]
<PLOT POINTS TO COME>
70% LB Aggregate Bond Index / 30% S&P 500 Stock Index: $24,675
Alliance Conservative Investors Fund Class A: $18,407
Lehman Brothers Aggregate Bond Index: $17,676
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 10/31/00)
as compared to the performance of an appropriate broad-based index and a
composite benchmark. 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 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/Credit 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 unmanaged Standard & Poor's 500 Stock Index is
comprised of 500 U.S. companies and is a common measure of the performance of
the overall U.S. stock market. The 70%/30% composite benchmark is a blend of
both the Lehman Brothers Aggregate Bond Index and the S&P 500 Stock Index with a
70%/30% weighting, respectively.
When comparing Alliance Conservative Investors Fund to the index and composite
benchmark shown above, you should note that no charges or expenses are reflected
in the performance of the index and composite benchmark. 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 10/31
[BAR CHART OMITTED]
<PLOT POINTS TO COME>
Alliance Conservative Investors Fund--Yearly Periods Ended 10/31
--------------------------------------------------------------------------------
70% Lehman Brothers
Alliance Conservative Aggregate Bond Index /
Investors Fund 30% S&P 500 Stock Index
--------------------------------------------------------------------------------
10/31/92* 5.31% 5.15%
10/31/93 12.77% 12.78%
10/31/94 -6.07% -1.41%
10/31/95 14.87% 18.88%
10/31/96 8.47% 11.32%
10/31/97 12.92% 15.85%
10/31/98 10.56% 13.14%
10/31/99 6.90% 8.07%
10/31/00 5.09% 6.93%
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 Fund's
net asset value (NAV). All fees and expenses related to the operation of the
Fund have been deducted, but no adjustment has been made for sales charges that
may apply when shares are purchased or redeemed. Returns for Class B and Class C
shares will vary due to different expenses charged to these classes. 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/Credit 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 unmanaged S&P 500 Stock Index is comprised of 500 U.S.
companies and is a common measure of the performance of the overall U.S. stock
market. The 70%/30% composite benchmark 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.
* The Fund's return for the period ended 10/31/92 is from the Fund's
inception date of 5/4/92 through 10/31/92. The composite benchmark's
return for the period ended 10/31/92 is from 4/30/92 through 10/31/92.
--------------------------------------------------------------------------------
ALLIANCE CONSERVATIVE INVESTORS FUND o 11
<PAGE>
-----------------
PORTFOLIO SUMMARY
-----------------
PORTFOLIO SUMMARY
October 31, 2000 (unaudited)
ALLIANCE CONSERVATIVE INVESTORS FUND
INCEPTION DATES PORTFOLIO STATISTICS
Class A Shares Net Assets ($mil): $66.2
5/4/92 Median Market Capitalization ($mil): $62,541
Class B Shares
5/4/92
Class C Shares
8/2/93
SECURITY TYPE
Equities
o 14.95% Common Stock [PIE CHART OMITTED]
Fixed Income
o 80.50% Treasury
o 4.55% Short-Term
All data as of October 31, 2000. The Fund's security type breakdown is 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
AVERAGE ANNUAL TOTAL RETURNS AS OF OCTOBER 31, 2000
Class A Shares
--------------------------------------------------------------------------------
Without Sales Charge With Sales Charge
1 Year 5.09% 0.60%
5 Years 8.75% 7.82%
Since Inception* 8.17% 7.62%
Class B Shares
--------------------------------------------------------------------------------
Without Sales Charge With Sales Charge
1 Year 4.29% 0.46%
5 Years 8.00% 8.00%
Since Inception* 7.45% 7.45%
Class C Shares
--------------------------------------------------------------------------------
Without Sales Charge With Sales Charge
1 Year 4.29% 3.33%
5 Years 7.98% 7.98%
Since Inception* 6.74% 6.74%
SEC AVERAGE ANNUAL TOTAL RETURNS (WITH SALES CHARGES)
AS OF THE MOST RECENT QUARTER-END (SEPTEMBER 30, 2000)
Class A Class B Class C
--------------------------------------------------------------------------------
1 Year 1.13% 1.03% 3.83%
5 Years 7.91% 8.10% 8.10%
Since Inception* 7.65% 7.48% 6.77%
The Fund's investment results represent average annual total returns. The
returns reflect reinvestment of dividends and/or capital gains distributions in
additional shares without and with 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.
The value of fixed income securities will change as the general level of
interest rates fluctuate. The Fund can invest in foreign securities, which may
magnify these fluctuations due to changes in foreign exchange rates and the
possibility of substantial volatility due to political and economic
uncertainties in foreign countries.
Past performance does not guarantee future results. Investment return and
principal value will fluctuate so that an investor's shares, when redeemed, may
be worth more or less than their original cost.
* Inception date: 5/4/92, Classes A and B; 8/2/93, Class C.
--------------------------------------------------------------------------------
ALLIANCE CONSERVATIVE INVESTORS FUND o 13
<PAGE>
--------------------
TEN LARGEST HOLDINGS
--------------------
TEN LARGEST HOLDINGS
October 31, 2000 (unaudited)
Percent of
Company Value Net Assets
--------------------------------------------------------------------------------
U.S. Treasury Notes $61,285,775 42.1%
--------------------------------------------------------------------------------
U.S. Treasury Bonds, 6.375%, 8/15/27 12,541,529 8.6
--------------------------------------------------------------------------------
Citigroup, Inc. 3,189,075 2.2
--------------------------------------------------------------------------------
BP Amoco Plc 2,710,479 1.9
--------------------------------------------------------------------------------
Schering-Plough Corp. 2,646,400 1.8
--------------------------------------------------------------------------------
Pfizer, Inc. 2,307,292 1.6
--------------------------------------------------------------------------------
Minnesota Mining & Manufacturing Co. 2,203,050 1.5
--------------------------------------------------------------------------------
United Technologies Corp. 2,010,600 1.4
--------------------------------------------------------------------------------
American International Group, Inc. 1,936,676 1.3
--------------------------------------------------------------------------------
Noble Drilling Corp. 1,799,657 1.2
--------------------------------------------------------------------------------
$92,630,533 63.6%
MAJOR PORTFOLIO CHANGES
Six Months Ended October 31, 2000 (unaudited)
-------------------------------
Shares* or Principal
-------------------------------
Purchases Bought Holdings 10/31/00
--------------------------------------------------------------------------------
BP Amoco Plc (ADR) 35,700 35,700
--------------------------------------------------------------------------------
Kerr-McGee Corp. 19,700 19,700
--------------------------------------------------------------------------------
Kroger Co. 65,100 65,100
--------------------------------------------------------------------------------
Lucent Technologies, Inc. 28,800 33,500
--------------------------------------------------------------------------------
Time Warner, Inc. 13,100 13,100
--------------------------------------------------------------------------------
U.S. Treasury Bond,
6.375%, 8/15/27 $ 4,200,000 $11,900,000
--------------------------------------------------------------------------------
U.S. Treasury Note
4.75%, 11/15/08 $ 3,700,000 $ 6,800,000
--------------------------------------------------------------------------------
U.S. Treasury Note
5.50%, 8/31/01 $ 4,600,000 $17,780,000
--------------------------------------------------------------------------------
U.S. Treasury Note
5.75%, 8/15/10 $ 7,200,000 $ 7,200,000
--------------------------------------------------------------------------------
U.S. Treasury Note
6.50%, 2/15/10 $ 6,900,000 $ 6,900,000
--------------------------------------------------------------------------------
Sales Sold Holdings 10/31/00
--------------------------------------------------------------------------------
American International Group, Inc. 1,213 19,762
--------------------------------------------------------------------------------
EMC Corp. 14,600 -0-
--------------------------------------------------------------------------------
Exxon Mobil Corp. 13,900 -0-
--------------------------------------------------------------------------------
Harley-Davidson, Inc. 43,800 20,600
--------------------------------------------------------------------------------
Noble Drilling Corp. 21,000 43,300
--------------------------------------------------------------------------------
Oracle Corp. 25,900 -0-
--------------------------------------------------------------------------------
Sanmina Corp. 33,200 -0-
--------------------------------------------------------------------------------
Target Corp. 55,300 -0-
--------------------------------------------------------------------------------
U.S. Treasury Note, 6.50%, 8/31/01 $ 1,400,000 -0-
--------------------------------------------------------------------------------
U.S. Treasury Note, 7.25%, 5/14/04 $ 3,500,000 $ 4,580,000
--------------------------------------------------------------------------------
* Adjusted for stock splits
--------------------------------------------------------------------------------
14 o ALLIANCE GROWTH INVESTORS FUND
<PAGE>
----------------------
SECTOR DIVERSIFICATION
----------------------
SECTOR DIVERSIFICATION
October 31, 2000 (unaudited)
Percent of
U.S. $ Value Net Assets
--------------------------------------------------------------------------------
Aerospace & Defense $ 2,422,445 1.7%
--------------------------------------------------------------------------------
Basic Industry 2,100,577 1.4
--------------------------------------------------------------------------------
Capital Goods 786,546 0.5
--------------------------------------------------------------------------------
Consumer Manufacturing 1,272,209 0.9
--------------------------------------------------------------------------------
Consumer Services 8,176,823 5.6
--------------------------------------------------------------------------------
Consumer Staples 3,723,278 2.6
--------------------------------------------------------------------------------
Energy 9,486,625 6.5
--------------------------------------------------------------------------------
Finance 11,557,657 7.9
--------------------------------------------------------------------------------
Healthcare 6,866,793 4.7
--------------------------------------------------------------------------------
Multi Industry 4,462,463 3.1
--------------------------------------------------------------------------------
Technology 10,580,930 7.3
--------------------------------------------------------------------------------
Transportation 773,975 0.5
--------------------------------------------------------------------------------
Utilities 642,070 0.4
--------------------------------------------------------------------------------
U.S. Government 73,827,304 50.7
--------------------------------------------------------------------------------
Total Investments* 136,679,695 93.8
--------------------------------------------------------------------------------
Cash and receivables, net of liabilities 9,078,183 6.2
--------------------------------------------------------------------------------
Net Assets $145,757,878 100.0%
--------------------------------------------------------------------------------
* Excludes short-term obligations.
--------------------------------------------------------------------------------
ALLIANCE GROWTH INVESTORS FUND o 15
<PAGE>
--------------------
TEN LARGEST HOLDINGS
--------------------
TEN LARGEST HOLDINGS
October 31, 2000 (unaudited)
Percent of
Company Value Net Assets
--------------------------------------------------------------------------------
U.S. Treasury Notes $40,673,994 61.4%
--------------------------------------------------------------------------------
U.S. Treasury Bond, 5.50%, 8/15/28 12,035,968 18.2
--------------------------------------------------------------------------------
Citigroup, Inc. 487,623 0.7
--------------------------------------------------------------------------------
BP Amoco Plc 393,767 0.6
--------------------------------------------------------------------------------
Pfizer, Inc. 356,297 0.5
--------------------------------------------------------------------------------
Minnesota Mining & Manufacturing Co. 347,850 0.5
--------------------------------------------------------------------------------
United Technologies Corp. 328,119 0.5
--------------------------------------------------------------------------------
Philip Morris Companies, Inc. 322,300 0.5
--------------------------------------------------------------------------------
Honeywell International, Inc. 306,731 0.5
--------------------------------------------------------------------------------
Schering-Plough Corp. 304,956 0.5
--------------------------------------------------------------------------------
$55,557,605 83.9%
MAJOR PORTFOLIO CHANGES
Six Months Ended October 31, 2000 (unaudited)
-----------------------------------
Shares* or Principal
-----------------------------------
Purchases Bought Holdings 10/31/00
--------------------------------------------------------------------------------
Applied Materials, Inc. 1,900 1,900
--------------------------------------------------------------------------------
BP Amoco Plc 17,000 17,000
--------------------------------------------------------------------------------
BP Amoco Plc (ADR) 4,900 4,900
--------------------------------------------------------------------------------
Kerr-McGee Corp. 2,900 2,900
--------------------------------------------------------------------------------
Kroger Co. 9,700 9,700
--------------------------------------------------------------------------------
Schering-Plough Corp. 5,900 5,900
--------------------------------------------------------------------------------
U.S. Treasury Bond,
5.50%, 8/15/28 $ 3,100,000 $12,800,000
--------------------------------------------------------------------------------
U.S. Treasury Note,
4.75%, 11/15/08 $ 240,000 $ 3,440,000
--------------------------------------------------------------------------------
U.S. Treasury Note,
5.75%, 8/15/10 $ 1,600,000 $ 1,600,000
--------------------------------------------------------------------------------
U.S. Treasury Note,
6.50%, 2/15/10 $ 1,500,000 $ 1,500,000
--------------------------------------------------------------------------------
Sales Sold Holdings 10/31/00
--------------------------------------------------------------------------------
American International Group, Inc. 682 2,955
--------------------------------------------------------------------------------
Caterpillar, Inc. 5,400 -0-
--------------------------------------------------------------------------------
Exxon Mobil Corp. 2,300 -0-
--------------------------------------------------------------------------------
Harley-Davidson, Inc. 8,300 3,100
--------------------------------------------------------------------------------
Johnson & Johnson Co. 3,600 -0-
--------------------------------------------------------------------------------
Noble Drilling Corp. 4,600 6,600
--------------------------------------------------------------------------------
Nortel Networks Corp. (ADR) 900 3,300
--------------------------------------------------------------------------------
The Proctor & Gamble Co. 3,900 -0-
--------------------------------------------------------------------------------
Target Corp. 5,400 -0-
--------------------------------------------------------------------------------
U.S. Treasury Note,
6.875%, 5/15/06 $ 700,000 $ 4,025,000
--------------------------------------------------------------------------------
* Adjusted for stock splits.
--------------------------------------------------------------------------------
16 o ALLIANCE CONSERVATIVE INVESTORS FUND
<PAGE>
----------------------
SECTOR DIVERSIFICATION
----------------------
SECTOR DIVERSIFICATION
October 31, 2000 (unaudited)
Percent of
U.S. $ Value Net Assets
--------------------------------------------------------------------------------
Aerospace & Defense $ 398,261 0.6%
--------------------------------------------------------------------------------
Basic Industry 334,321 0.5
--------------------------------------------------------------------------------
Capital Goods 127,665 0.2
--------------------------------------------------------------------------------
Consumer Manufacturing 192,388 0.3
--------------------------------------------------------------------------------
Consumer Services 1,132,138 1.7
--------------------------------------------------------------------------------
Consumer Staples 641,368 1.0
--------------------------------------------------------------------------------
Energy 1,449,597 2.2
--------------------------------------------------------------------------------
Finance 1,837,199 2.8
--------------------------------------------------------------------------------
Healthcare 983,064 1.5
--------------------------------------------------------------------------------
Multi Industry 792,188 1.2
--------------------------------------------------------------------------------
Technology 1,632,081 2.4
--------------------------------------------------------------------------------
Utilities 268,546 0.4
--------------------------------------------------------------------------------
U.S. Government 52,709,962 79.6
--------------------------------------------------------------------------------
Total Investments* 62,498,778 94.4
--------------------------------------------------------------------------------
Cash and receivables, net of liabilities 3,734,522 5.6
--------------------------------------------------------------------------------
Net Assets $66,233,300 100.0%
--------------------------------------------------------------------------------
* Excludes short-term obligations.
--------------------------------------------------------------------------------
ALLIANCE CONSERVATIVE INVESTORS FUND o 17
<PAGE>
------------------------
PORTFOLIO OF INVESTMENTS
------------------------
PORTFOLIO OF INVESTMENTS
October 31, 2000 (unaudited)
Company Shares U.S. $ Value
--------------------------------------------------------------------------------
COMMON STOCKS-43.1%
United States Investments-29.9%
Finance-5.5%
Banking-Regional-1.0%
Bank of America Corp. ........................ 29,000 $ 1,393,812
------------
Insurance-1.3%
American International Group, Inc. ........... 19,762 1,936,676
------------
Miscellaneous-3.2%
Citigroup, Inc. .............................. 60,600 3,189,075
MBNA Corp. ................................... 38,400 1,442,400
------------
4,631,475
------------
7,961,963
------------
Technology-5.0%
Communications Equipment-0.5%
Lucent Technologies, Inc. .................... 33,500 780,969
------------
Computer Hardware-1.1%
Dell Computer Corp.(a) ....................... 20,200 595,900
Hewlett-Packard Co. .......................... 21,000 975,187
------------
1,571,087
------------
Computer Software-0.7%
Microsoft Corp.(a) ........................... 13,800 950,475
------------
Networking Software-0.7%
Cisco Systems, Inc.(a) ....................... 19,300 1,039,788
------------
Semi-Conductor Capital Equipment-0.8%
Applied Materials, Inc.(a) ................... 22,200 1,179,375
------------
Semi-Conductor Components-1.2%
Altera Corp.(a) .............................. 23,600 966,125
Intel Corp. .................................. 18,900 850,500
------------
1,816,625
------------
7,338,319
------------
Energy-3.8%
International-0.8%
Chevron Corp. ................................ 13,600 1,116,900
------------
Oil Service-3.0%
Halliburton Co. .............................. 36,100 1,337,956
Kerr-McGee Corp. ............................. 19,700 1,286,656
Noble Drilling Corp.(a) ...................... 43,300 1,799,657
------------
4,424,269
------------
5,541,169
------------
--------------------------------------------------------------------------------
18 o ALLIANCE GROWTH INVESTORS FUND
<PAGE>
------------------------
PORTFOLIO OF INVESTMENTS
------------------------
Company Shares U.S. $ Value
--------------------------------------------------------------------------------
Consumer Services-3.4%
Broadcasting/Media-0.8%
AT&T Corp.- Liberty Media Corp. Cl.A(a) ...... 66,200 $ 1,191,600
------------
Entertainment & Leisure-0.7%
Time Warner, Inc. ............................ 13,100 994,421
------------
Retail-General Merchandise-1.9%
Circuit City Stores-Circuit City Group ....... 22,800 302,100
Home Depot, Inc. ............................. 26,800 1,152,400
Wal-Mart Stores, Inc. ........................ 29,600 1,343,100
------------
2,797,600
------------
4,983,621
------------
Health Care-3.4%
Drugs-3.4%
Pfizer, Inc. ................................. 53,425 2,307,292
Schering-Plough Corp. ........................ 51,200 2,646,400
------------
4,953,692
------------
Multi-Industry Companies-2.7%
Honeywell International, Inc. ................ 33,000 1,775,812
Minnesota Mining & Manufacturing Co. ......... 22,800 2,203,050
------------
3,978,862
------------
Consumer Staples-2.2%
Retail-Food & Drugs-1.0%
Kroger Co.(a) ................................ 65,100 1,468,819
------------
Tobacco-1.2%
Philip Morris Companies, Inc. ................ 45,700 1,673,762
------------
3,142,581
------------
Aerospace & Defense-1.4%
Aerospace-1.4%
United Technologies Corp. .................... 28,800 2,010,600
------------
Basic Industry-1.3%
Chemicals-0.4%
Union Carbide Corp. .......................... 12,900 554,700
------------
Mining & Metals-0.9%
Alcoa, Inc. .................................. 45,600 1,308,150
------------
1,862,850
------------
Consumer Manufacturing-0.7%
Auto & Related-0.7%
Harley-Davidson, Inc. ........................ 20,600 992,663
------------
--------------------------------------------------------------------------------
ALLIANCE GROWTH INVESTORS FUND o 19
<PAGE>
------------------------
PORTFOLIO OF INVESTMENTS
------------------------
Company Shares U.S. $ Value
--------------------------------------------------------------------------------
Utilities-0.5%
Telephone Utility-0.5%
AT&T Corp. ................................. 2,600 $ 60,288
WorldCom, Inc.(a) .......................... 30,050 713,687
----------
773,975
----------
Total United States Investments
(cost $43,065,913) ...................... 43,540,295
----------
Foreign Investments-13.2%
Australia-0.1%
Woodside Petroleum, Ltd. ................... 26,000 190,027
----------
Canada-0.5%
Nortel Networks Corp. (ADR) ................ 16,500 750,750
----------
Finland-0.2%
Nokia Corp.(b) ............................. 2,680 110,278
UPM-Kymmene Oyj(b) ......................... 8,400 237,727
----------
348,005
----------
France-1.9%
Alcatel(a)(b) .............................. 4,310 262,972
Banque Nationale de Paris(b) ............... 8,180 705,262
Carrefour, SA(b) ........................... 3,740 251,045
Sanofi-Synthelabo, SA(b) ................... 7,190 378,289
STMicroelectronics NV(b) ................... 6,720 339,019
Total Fina Elf, SA(b) ...................... 6,070 868,459
----------
2,805,046
----------
Hong Kong-0.5%
Beijing Enterprises Holdings, Ltd. ......... 176,000 160,226
China Telecom (Hong Kong), Ltd.(a) ......... 41,400 265,418
Hutchison Whampoa, Ltd. .................... 26,000 323,375
----------
749,019
----------
Ireland-0.2%
CRH Plc(b) ................................. 18,200 279,546
----------
Italy-0.7%
Alleanza Assicurazioni(b) .................. 56,340 747,272
UniCredito Italiano SpA(b) ................. 58,010 295,364
----------
1,042,636
----------
Japan-3.1%
Banyu Pharmaceutical Co., Ltd.(b) .......... 13,000 278,789
Canon, Inc.(b) ............................. 13,000 515,878
Fast Retailing Co., Ltd.(b) ................ 2,400 590,570
Hoya Corp.(b) .............................. 5,000 413,325
Kao Corp.(b) ............................... 11,000 329,652
NTT Docomo, Inc.(b) ........................ 14 345,140
--------------------------------------------------------------------------------
20 o ALLIANCE GROWTH INVESTORS FUND
<PAGE>
------------------------
PORTFOLIO OF INVESTMENTS
------------------------
Company Shares U.S. $ Value
--------------------------------------------------------------------------------
Omron Corp.(b) ................................... 13,000 $ 320,488
Sankyo Co., Ltd.(b) .............................. 8,800 291,949
Takeda Chemical Industries, Ltd.(b) .............. 12,000 790,725
The Bank of Fukuoka, Ltd.(b) ..................... 46,000 225,963
THK Co., Ltd.(b) ................................. 4,900 121,248
Yamanouchi Pharmaceutical Co., Ltd.(b) ........... 5,000 226,367
------------
4,450,094
------------
Netherlands-0.7%
ING Groep NV(b) .................................. 8,664 594,946
Koninklijke (Royal) Philips Electronics NV(a)(b) . 10,141 398,528
------------
993,474
------------
South Korea-0.2%
Samsung Electronics Co., Ltd. (GDR)(c) ........... 3,510 258,863
------------
Spain-0.6%
Banco Bilbao Vizcaya Argentaria, SA(b) ........... 29,140 388,233
Repsol, SA(b) .................................... 11,110 176,491
Telefonica, SA(a)(b) ............................. 11,600 221,190
------------
785,914
------------
Sweden-0.3%
Securitas AB Series B ............................ 11,200 238,744
Telefonaktiebolaget LM Ericsson
AB Series B(a) ................................ 14,500 192,998
------------
431,742
------------
Switzerland-0.2%
ABB, Ltd. ........................................ 3,880 344,810
------------
United Kingdom-4.0%
BAE Systems Plc(b) ............................... 72,502 411,845
BP Amoco Plc(b) .................................. 105,180 892,010
BP Amoco Plc (ADR) ............................... 35,700 1,818,469
British Telecommunications Plc(b) ................ 35,900 420,880
CGNU Plc(b) ...................................... 47,740 638,654
Dixons Group Plc(b) .............................. 59,200 176,087
Glaxo Wellcome Plc(b) ............................ 8,300 238,931
Reuters Group Plc(b) ............................. 26,470 515,417
Vodafone AirTouch Plc(b) ......................... 185,040 769,877
------------
5,882,170
------------
Total Foreign Investments
(cost $19,513,782) ............................ 19,312,096
------------
Total Common Stocks
(cost $62,579,695) ............................ 62,852,391
------------
--------------------------------------------------------------------------------
ALLIANCE GROWTH INVESTORS FUND o 21
<PAGE>
------------------------
PORTFOLIO OF INVESTMENTS
------------------------
Principal
Amount
Company (000) U.S. $ Value
--------------------------------------------------------------------------------
DEBT OBLIGATIONS-50.7%
U.S. Government Obligations-50.7%
U.S. Treasury Bond
6.375%, 8/15/27 ....................... $ 11,900 $ 12,541,529
U.S. Treasury Notes
3.625%, 1/15/08(d) .................... 14,645 14,411,449
4.75%, 11/15/08 ....................... 6,800 6,328,216
5.50%, 8/31/01 ........................ 17,780 17,657,674
5.625%, 2/15/06 ....................... 3,730 3,696,766
5.75%, 8/15/10 ........................ 7,200 7,193,232
6.50%, 2/15/10 ........................ 6,900 7,222,368
7.25%, 5/15/04 ........................ 4,580 4,776,070
--------------
Total Debt Obligations
(cost $72,652,935) .................... 73,827,304
--------------
SHORT-TERM INVESTMENT-5.4%
Time Deposit-5.4%
State Street Euro Dollar
6.00%, 11/01/00
(amortized cost $7,851,000) ........... 7,851 7,851,000
--------------
Total Investments-99.2%
(cost $143,083,630) ................... 144,530,695
Other assets less liabilities-0.8% ....... 1,227,183
--------------
Net Assets-100% .......................... $ 145,757,878
==============
(a) Non-income producing security.
(b) Securities, or portion thereof, with an aggregate market value of
$14,768,416 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 October 31,
2000, the aggregate market value of this security amounted to $258,863 or
0.2% of net assets.
(d) Treasury Inflation Protection Securities.
Glossary of Terms:
ADR - American Depositary Receipt
GDR - Global Depositary Receipt
See notes to financial statements.
--------------------------------------------------------------------------------
22 o ALLIANCE GROWTH INVESTORS FUND
<PAGE>
------------------------
PORTFOLIO OF INVESTMENTS
------------------------
PORTFOLIO OF INVESTMENTS
October 31, 2000 (unaudited)
Company Shares U.S. $ Value
--------------------------------------------------------------------------------
COMMON STOCKS-14.8%
United States Investments-9.9%
Finance-1.9%
Banking-Regional-0.4%
Bank of America Corp. ........................ 4,900 $ 235,506
----------
Insurance-0.4%
American International Group, Inc. ........... 2,955 289,590
----------
Miscellaneous-1.1%
Citigroup, Inc. .............................. 9,266 487,623
MBNA Corp. ................................... 6,399 240,363
----------
727,986
----------
1,253,082
----------
Technology-1.6%
Communications Equipment-0.1%
Lucent Technologies, Inc. .................... 4,000 93,250
----------
Computer Hardware-0.4%
Dell Computer Corp.(a) ....................... 4,300 126,850
Hewlett-Packard Co. .......................... 3,400 157,887
----------
284,737
----------
Computer Software-0.3%
Microsoft Corp.(a) ........................... 3,300 227,287
----------
Networking Software-0.3%
Cisco Systems, Inc.(a) ....................... 3,100 167,013
----------
Semi-Conductor Capital Equipment-0.2%
Applied Materials, Inc.(a) ................... 1,900 100,938
----------
Semi-Conductor Components-0.3%
Intel Corp. .................................. 4,200 189,000
----------
1,062,225
----------
Energy-1.3%
International-0.3%
Chevron Corp. ................................ 2,200 180,675
----------
Oil Service-1.0%
Halliburton Co. .............................. 5,400 200,138
Kerr-McGee Corp. ............................. 2,900 189,406
Noble Drilling Corp.(a) ...................... 6,600 274,312
----------
663,856
----------
844,531
----------
--------------------------------------------------------------------------------
ALLIANCE CONSERVATIVE INVESTORS FUND o 23
<PAGE>
------------------------
PORTFOLIO OF INVESTMENTS
------------------------
Company Shares U.S. $ Value
--------------------------------------------------------------------------------
Health Care-1.0%
Drugs-1.0%
Pfizer, Inc. ................................... 8,250 $ 356,297
Schering-Plough Corp. .......................... 5,900 304,956
----------
661,253
----------
Multi-Industry Company-1.0%
Honeywell International, Inc. .................. 5,700 306,731
Minnesota Mining & Manufacturing Co. ........... 3,600 347,850
----------
654,581
----------
Consumer Services-0.9%
Broadcasting/Media-0.2%
AT&T Corp.- Liberty Media Corp. Cl.A(a) ........ 5,700 102,600
----------
Retail-General Merchandise-0.7%
Circuit City Stores-Circuit City Group ......... 4,900 64,925
Home Depot, Inc. ............................... 5,000 215,000
Wal-Mart Stores, Inc. .......................... 4,600 208,725
----------
488,650
----------
591,250
----------
Consumer Staples-0.8%
Retail-Food & Drug-0.3%
Kroger Co.(a) .................................. 9,700 218,856
----------
Tobacco-0.5%
Philip Morris Companies, Inc. .................. 8,800 322,300
----------
541,156
----------
Aerospace & Defense-0.5%
Aerospace-0.5%
United Technologies Corp. ...................... 4,700 328,119
----------
Basic Industry-0.4%
Chemicals-0.1%
Union Carbide Corp. ............................ 2,050 88,150
----------
Mining & Metals-0.3%
Alcoa, Inc. .................................... 7,200 206,550
----------
294,700
----------
Utilities-0.3%
Telephone-0.3%
AT&T Corp. ..................................... 2,600 60,288
WorldCom, Inc.(a) .............................. 4,300 102,125
----------
162,413
----------
--------------------------------------------------------------------------------
24 o ALLIANCE CONSERVATIVE INVESTORS FUND
<PAGE>
------------------------
PORTFOLIO OF INVESTMENTS
------------------------
Company Shares U.S. $ Value
--------------------------------------------------------------------------------
Consumer Manufacturing-0.2%
Auto & Related-0.2%
Harley-Davidson, Inc. ........................ 3,100 $ 149,381
------------
Total United States Investments
(cost $6,831,583) ......................... 6,542,691
------------
Foreign Investments-4.9%
Australia-0.0%
Woodside Petroleum, Ltd. ..................... 4,400 32,159
------------
Canada-0.2%
Nortel Networks Corp. (ADR) .................. 3,300 150,150
------------
Finland-0.1%
Nokia Corp.(b) ............................... 340 13,991
UPM-Kymmene Oyj(b) ........................... 1,400 39,621
------------
53,612
------------
France-0.7%
Alcatel(a)(b) ................................ 720 43,930
Banque Nationale de Paris(a) ................. 1,340 115,532
Carrefour, SA(b) ............................. 600 40,275
Sanofi-Synthelabo, SA(b) ..................... 1,170 61,557
STMicroelectronics NV(b) ..................... 1,130 57,008
Total Fina Elf, SA(b) ........................ 1,050 150,228
------------
468,530
------------
Hong Kong-0.3%
Beijing Enterprises Holdings, Ltd. ........... 28,000 25,490
China Resources Enterprise, Ltd. ............. 44,000 49,930
China Telecom (Hong Kong), Ltd.(a) ........... 7,300 46,801
Hutchison Whampoa, Ltd. ...................... 5,000 62,187
------------
184,408
------------
Ireland-0.1%
CRH Plc(b) ................................... 2,800 43,007
------------
Italy-0.2%
Alleanza Assicurazioni(b) .................... 9,000 119,373
UniCredito Italiano SpA(b) ................... 9,490 48,319
------------
167,692
------------
Japan-1.2%
Banyu Pharmaceutical Co., Ltd.(b) ............ 2,000 42,891
Canon, Inc.(b) ............................... 2,000 79,366
Fast Retailing Co., Ltd.(b) .................. 400 98,428
Hoya Corp.(b) ................................ 1,000 82,665
Kao Corp.(b) ................................. 2,000 59,937
NTT Docomo, Inc.(b) .......................... 3 73,959
Omron Corp.(b) ............................... 2,000 49,306
Sankyo Co., Ltd.(b) .......................... 1,500 49,764
Takeda Chemical Industries, Ltd.(b) .......... 2,000 131,788
--------------------------------------------------------------------------------
ALLIANCE CONSERVATIVE INVESTORS FUND o 25
<PAGE>
------------------------
PORTFOLIO OF INVESTMENTS
------------------------
Company Shares U.S. $ Value
--------------------------------------------------------------------------------
The Bank of Fukuoka, Ltd.(b) ....................... 8,000 $ 39,298
THK Co., Ltd.(b) ................................... 800 19,795
Yamanouchi Pharmaceutical Co., Ltd.(b) ............. 1,000 45,273
-----------
772,470
-----------
Netherlands-0.2%
ING Groep NV(b) .................................... 1,421 97,578
Koninklijke (Royal) Philips Electronics NV(a)(b) ... 1,731 68,026
-----------
165,604
-----------
South Korea-0.1%
Samsung Electronics Co., Ltd. (GDR)(c) ............. 580 42,775
-----------
Spain-0.2%
Banco Bilbao Vizcaya Argentaria, SA(b) ............. 4,780 63,684
Repsol, SA(b) ...................................... 1,820 28,912
Telefonica, SA(a)(b) ............................... 2,000 38,136
-----------
130,732
-----------
Sweden-0.1%
Securitas AB Series B .............................. 1,800 38,369
Telefonaktiebolaget (LM)
Ericsson AB Series B(a) ......................... 2,400 31,945
-----------
70,314
-----------
Switzerland-0.1%
ABB, Ltd. .......................................... 659 58,564
-----------
United Kingdom-1.4%
BAE Systems Plc(b) ................................. 12,348 70,142
BP Amoco Plc(b) .................................... 17,000 144,173
BP Amoco Plc (ADR) ................................. 4,900 249,594
British Telecommunications Plc(b) .................. 5,800 67,997
CGNU Plc(b) ........................................ 7,500 100,333
Dixons Group Plc(b) ................................ 9,900 29,447
Glaxo Wellcome Plc(b) .............................. 1,400 40,302
Reuters Group Plc(b) ............................... 4,000 77,887
Vodafone AirTouch Plc(b) ........................... 30,340 126,233
-----------
906,108
-----------
Total Foreign Investments
(cost $3,438,781) ............................... 3,246,125
-----------
Total Common Stocks
(cost $10,270,364) .............................. 9,788,816
-----------
--------------------------------------------------------------------------------
26 o ALLIANCE CONSERVATIVE INVESTORS FUND
<PAGE>
------------------------
PORTFOLIO OF INVESTMENTS
------------------------
Principal
Amount
Company (000) U.S. $ Value
--------------------------------------------------------------------------------
DEBT OBLIGATIONS-79.6%
U.S. Government Obligations-79.6%
U.S. Treasury Bond
5.50%, 8/15/28 .......................... $ 12,800 $ 12,035,968
U.S. Treasury Notes
3.875%, 1/15/09(d) ...................... 6,160 6,160,226
4.75%, 2/15/04 .......................... 8,400 8,119,104
4.75%, 11/15/08 ......................... 3,440 3,201,333
5.75%, 8/15/10 .......................... 1,600 1,598,496
6.50%, 8/31/01 .......................... 15,795 15,807,320
6.50%, 2/15/10 .......................... 1,500 1,570,080
6.875%, 5/15/06 ......................... 4,025 4,217,435
-------------
Total Debt Obligations
(cost $52,327,758) ...................... 52,709,962
-------------
SHORT-TERM INVESTMENT-4.5%
Time Deposit-4.5%
State Street Euro Dollar
6.00%, 11/01/00
(amortized cost $2,978,000) ............. 2,978 2,978,000
-------------
Total Investments-98.9%
(cost $65,576,122) ...................... 65,476,778
Other assets less liabilities-1.1% ......... 756,522
-------------
Net Assets-100% ............................ $ 66,233,300
=============
(a) Non-income producing security.
(b) Securities, or portion thereof, with an aggregate market value of
$2,458,161 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 October 31,
2000, the aggregate market value of this security amounted to $42,775 or
0.1% 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 CONSERVATIVE INVESTORS FUND o 27
<PAGE>
---------------------------------
STATEMENT OF ASSETS & LIABILITIES
---------------------------------
STATEMENT OF ASSETS & LIABILITIES
October 31, 2000 (unaudited)
Growth Conservative
Investors Fund Investors Fund
============== ==============
Assets
Investments in securities, at value
(cost $143,083,630 and $65,576,122,
respectively) ........................... $ 144,530,695 $ 65,476,778
Cash ....................................... 218 781
Interest and dividends receivable .......... 1,040,952 729,465
Unrealized appreciation of forward
exchange currency contracts ............. 346,864 73,142
Receivable for shares of beneficial
interest sold ........................... 262,797 182,010
Foreign taxes receivable ................... 23,464 3,887
-------------- -------------
Total assets ............................... 146,204,990 66,466,063
-------------- -------------
Liabilities
Advisory fee payable ....................... 92,144 25,224
Distribution fee payable ................... 90,035 41,752
Payable for shares of beneficial interest
redeemed ................................ 64,527 37,536
Accrued expenses ........................... 200,406 128,251
-------------- -------------
Total liabilities .......................... 447,112 232,763
-------------- -------------
Net Assets ................................. $ 145,757,878 $ 66,233,300
============== =============
Composition of Net Assets
Shares of beneficial interest, at par ...... $ 100 $ 57
Additional paid-in capital ................. 126,002,182 63,546,059
Undistributed net investment income ........ 1,229,688 420,054
Accumulated net realized gain on
investments and foreign currency
transactions ............................ 16,740,610 2,298,419
Net unrealized appreciation (depreciation)
of investments and foreign currency
denominated assets and liabilities ...... 1,785,298 (31,289)
-------------- -------------
$ 145,757,878 $ 66,233,300
============== =============
See notes to financial statements.
--------------------------------------------------------------------------------
28 o ALLIANCE GROWTH INVESTORS AND CONSERVATIVE INVESTORS FUNDS
<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 ($55,550,582 / 3,843,050 and
$23,393,954 / 2,056,300 shares of
beneficial interest issued and
outstanding, respectively) ............... $14.45 $11.38
Sales charge--4.25% of public offering
price .................................... 0.64 0.51
------ ------
Maximum offering price ...................... $15.09 $11.89
====== ======
Class B Shares
Net asset value and offering price per
share ($77,472,428 / 5,328,542 and
$35,769,171 / 3,076,578 shares of
beneficial interest issued and
outstanding, respectively) ............... $14.54 $11.63
====== ======
Class C Shares
Net asset value and offering price per
share ($12,734,868/ 875,156 and
$7,070,175 / 607,818 shares of
beneficial interest issued and
outstanding, respectively) ............... $14.55 $11.63
====== ======
See notes to financial statements.
--------------------------------------------------------------------------------
ALLIANCE GROWTH INVESTORS AND CONSERVATIVE INVESTORS FUNDS o 29
<PAGE>
-----------------------
STATEMENT OF OPERATIONS
-----------------------
STATEMENT OF OPERATIONS
Six Months Ended October 31, 2000 (unaudited)
Growth Conservative
Investors Fund Investors Fund
============== ==============
Investment Income
Interest .................................... $ 2,296,934 $ 1,656,612
Dividends (net of foreign tax withheld of
$19,737 and $3,328, respectively) ........ 359,040 69,217
------------ -----------
Total income ................................ 2,655,974 1,725,829
------------ -----------
Expenses
Advisory fee ................................ 556,618 243,756
Distribution fee - Class A .................. 84,404 34,400
Distribution fee - Class B .................. 399,313 176,922
Distribution fee - Class C .................. 61,498 33,419
Transfer agency ............................. 142,211 62,962
Custodian ................................... 80,492 65,320
Printing .................................... 41,088 19,995
Audit and legal ............................. 27,284 24,840
Registration ................................ 19,352 20,605
Trustees' fees .............................. 9,350 9,350
Miscellaneous ............................... 5,916 3,523
------------ -----------
Total expenses .............................. 1,427,526 695,092
Less: expenses waived and assumed by
adviser (See Note B) ..................... -0- (92,267)
------------ -----------
Net expenses ................................ 1,427,526 602,825
------------ -----------
Net investment income ....................... 1,228,448 1,123,004
------------ -----------
Realized and Unrealized Gain (Loss) on
Investments and Foreign Currency
Transactions
Net realized gain (loss) on investment
transactions ............................. 5,543,180 (40,495)
Net realized gain on foreign currency
transactions ............................. 773,322 156,774
Net change in unrealized
appreciation/depreciation of:
Investments .............................. (11,372,077) (286,963)
Foreign currency denominated assets
and liabilities ....................... 1,037 (4,926)
------------ -----------
Net loss on investments and foreign
currency transactions .................... (5,054,538) (175,610)
------------ -----------
Net Increase (Decrease) in Net Assets
from Operations .......................... $ (3,826,090) $ 947,394
============ ===========
See notes to financial statements.
--------------------------------------------------------------------------------
30 o ALLIANCE GROWTH INVESTORS AND CONSERVATIVE INVESTORS FUNDS
<PAGE>
----------------------------------
STATEMENT OF CHANGES IN NET ASSETS
----------------------------------
STATEMENT OF CHANGES
IN NET ASSETS
Six Months
Ended Year
October 31, Ended
2000 April 30,
(unaudited) 2000
============= =============
Increase (Decrease) in Net Assets
from Operations
Net investment income .................... $ 1,228,448 $ 2,031,603
Net realized gain on investments and
foreign currency transactions ......... 6,316,502 20,586,656
Net change in unrealized
appreciation/depreciation of
investments and foreign currency
denominated assets and liabilities .... (11,371,040) (10,894,720)
------------- -------------
Net increase (decrease) in net assets from
operations ............................ (3,826,090) 11,723,539
Dividends and Distributions to
Shareholders from:
Net investment income
Class A ............................... -0- (916,889)
Class B ............................... -0- (566,024)
Class C ............................... -0- (86,672)
Net realized gain on investments
Class A ............................... -0- (6,542,816)
Class B ............................... -0- (9,501,774)
Class C ............................... -0- (1,454,949)
Transactions in Shares of Beneficial
Interest
Net increase ............................. 4,899,500 16,940,718
------------- -------------
Total increase ........................... 1,073,410 9,595,133
Net Assets
Beginning of period ...................... 144,684,468 135,089,335
------------- -------------
End of period (including undistributed net
investment income of $1,229,688 and
$1,240, respectively) ................. $ 145,757,878 $ 144,684,468
============= =============
See notes to financial statements.
--------------------------------------------------------------------------------
ALLIANCE GROWTH INVESTORS FUND o 31
<PAGE>
----------------------------------
STATEMENT OF CHANGES IN NET ASSETS
----------------------------------
STATEMENT OF CHANGES
IN NET ASSETS
Six Months
Ended Year
October 31, Ended
2000 April 30,
(unaudited) 2000
============ ============
Increase (Decrease) in Net Assets
from Operations
Net investment income ...................... $ 1,123,004 $ 2,001,526
Net realized gain on investments and
foreign currency transactions ........... 116,279 3,370,108
Net change in unrealized
appreciation/depreciation of
investments and foreign currency
denominated assets and liabilities ...... (291,889) (2,932,320)
------------ ------------
Net increase in net assets from
operations .............................. 947,394 2,439,314
Dividends and Distributions to
Shareholders from:
Net investment income
Class A ................................. (281,274) (696,587)
Class B ................................. (306,635) (940,204)
Class C ................................. (58,187) (158,175)
Net realized gain on investments
Class A ................................. -0- (1,144,836)
Class B ................................. -0- (1,918,554)
Class C ................................. -0- (317,621)
Transaction in Shares of Beneficial
Interest
Net increase ............................... 2,867,541 10,442,988
------------ ------------
Total increase ............................. 3,168,839 7,706,325
Net Assets
Beginning of period ........................ 63,064,461 55,358,136
------------ ------------
End of period (including undistributed net
investment income of $420,054 at
October 31, 2000) ....................... $ 66,233,300 $ 63,064,461
============ ============
See notes to financial statements.
--------------------------------------------------------------------------------
32 o ALLIANCE CONSERVATIVE INVESTORS FUND
<PAGE>
-----------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
NOTES TO FINANCIAL STATEMENTS
October 31, 2000 (unaudited)
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 ex change, on a foreign
securities exchange (other than foreign securities exchanges whose operations
are similar to those of the United States over-the-counter market) or on The
Nasdaq Stock Market, Inc. are generally valued at the last reported 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.
--------------------------------------------------------------------------------
ALLIANCE GROWTH INVESTORS AND CONSERVATIVE INVESTORS FUNDS o 33
<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 ex change 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.
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
--------------------------------------------------------------------------------
34 o ALLIANCE GROWTH INVESTORS AND CONSERVATIVE INVESTORS FUNDS
<PAGE>
-----------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
within the capital accounts based on their federal tax basis treatment;
temporary differences, do not require such reclassification.
NOTE B
Advisory Fee and Other Transactions With Affiliates
Under the terms of an investment advisory agreement, the Funds pay Alliance
Capital Management L.P. (the "Adviser"), an advisory fee at an annual rate of
.75% of each Fund's average daily net assets. Such fee is accrued daily and paid
monthly. The Adviser has agreed to 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 six
months ended October 31, 2000, such reimbursement amounted to $92,267 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 $107,476 and $42,799 for the Growth Investors Fund and Conservative
Investors Fund, respectively, for the six months ended October 31, 2000.
For the six months ended October 31, 2000, the Funds' expenses were reduced by
$7,157 and $2,838 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 $30,933 from the sales of Class A shares and $41,026 and $2,427 in contingent
deferred sales charges imposed upon redemptions by shareholders of Class B and
Class C shares, respectively, for the six months ended October 31, 2000 for the
Growth Investors Fund. The Distributor also received front-end sales charges of
$10,532 from the sales of Class A shares and $33,212 and $856 in contingent
deferred sales charges imposed upon redemptions by shareholders of Class B and
Class C shares, respectively, for the six months ended October 31, 2000 for the
Conservative Investors Fund.
Brokerage commissions paid on investment transactions for the six months ended
October 31, 2000 amounted to $88,014 and $13,574 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 $24,358 and $23,904 respectively, for the Growth Investors
and Conservative Investors Funds, respectively.
--------------------------------------------------------------------------------
ALLIANCE GROWTH INVESTORS AND CONSERVATIVE INVESTORS FUNDS o 35
<PAGE>
-----------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
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 aggregated
$29,610,816 and $37,251,637, respectively, for the six months ended October 31,
2000. There were purchases of $32,380,703 and sales of $11,817,372 of U.S.
government and government agency securities for the six months ended October 31,
2000. At October 31, 2000, the cost of investments for federal in come tax
purposes for the Growth Investors Fund was substantially the same as the cost
for financial reporting purposes. Gross unrealized appreciation of investments
was $7,804,104 and gross unrealized depreciation of investments was $6,357,039
resulting in net unrealized appreciation of $1,447,065 (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
$3,362,146 and $5,429,978, respectively, for the six months ended October 31,
2000. There were purchases of $15,825,853 and sales/maturity of $10,399,461 of
U.S. government and government agency obligations for the six months ended
October 31, 2000.
--------------------------------------------------------------------------------
36 o ALLIANCE GROWTH INVESTORS AND CONSERVATIVE INVESTORS FUNDS
<PAGE>
-----------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
At October 31, 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
$1,432,497 and gross unrealized depreciation of investments was $1,531,841
resulting in net unrealized depreciation of $99,344 (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. These carryover
losses may be used to offset future capital gains. To the extent they are so
used, future capital gains will not be distributed to shareholders until they
exceed available capital loss carryovers.
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 ex change 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 at
least 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 Funds have in that particular currency
contract.
--------------------------------------------------------------------------------
ALLIANCE GROWTH INVESTORS AND CONSERVATIVE INVESTORS FUNDS o 37
<PAGE>
-----------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
At October 31, 2000, the outstanding forward exchange currency contracts for the
Growth Investors Fund and the Conservative Investors Fund were as follows:
<TABLE>
<CAPTION>
U.S. $
Contract Value on U.S. $ Unrealized
Amount Origination Current Appreciation/
(000) Date Value (Depreciation)
--------------------------------------------------------
<S> <C> <C> <C> <C>
Growth Investors Fund
Forward Exchange Currency
Sale Contracts
Euro, settling 12/01/00 6,746 $5,888,327 $5,733,093 $155,234
British Pound,
settling 11/14/00 2,334 3,519,934 3,387,403 132,531
Japanese Yen,
settling 11/14/00 666,098 6,179,448 6,120,349 59,099
--------
$346,864
========
Conservative Investors Fund
Forward Exchange Currency
Sale Contracts
Euro, settling 12/01/00 1,093 $ 953,596 $ 928,456 $ 25,140
British Pound,
settling 11/14/00 686 1,035,083 996,111 38,972
Japanese Yen,
settling 11/14/00 101,769 944,118 935,088 9,030
--------
$ 73,142
========
</TABLE>
2. Financial Futures Contracts
The Funds may buy or sell financial futures contracts for the purpose of hedging
their portfolios against adverse effects 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 October 31,
2000, the Funds had no outstanding futures contracts.
--------------------------------------------------------------------------------
38 o ALLIANCE GROWTH INVESTORS AND CONSERVATIVE INVESTORS FUNDS
<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:
<TABLE>
<CAPTION>
Alliance Growth Investors Fund
------------------------------------ --------------------------------------
Shares Amount
------------------------------------ --------------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
October 31, 2000, April 30, October 31, 2000, April 30,
(unaudited) 2000 (unaudited) 2000
------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A
Shares sold 841,273 1,607,101 $ 12,448,161 $ 24,612,346
-----------------------------------------------------------------------------------------------
Shares issued in
reinvestment of
dividends and
distributions -0- 505,587 -0- 7,124,017
-----------------------------------------------------------------------------------------------
Shares converted
from Class B 19,549 228,015 285,319 3,507,013
-----------------------------------------------------------------------------------------------
Shares redeemed (700,077) (1,691,118) (10,373,421) (25,813,183)
-----------------------------------------------------------------------------------------------
Net increase 160,745 649,585 $ 2,360,059 $ 9,430,193
===============================================================================================
Class B
Shares sold 524,146 1,149,517 $ 7,790,130 $ 17,358,195
-----------------------------------------------------------------------------------------------
Shares issued in
reinvestment of
dividends and
distributions -0- 683,528 -0- 9,753,980
-----------------------------------------------------------------------------------------------
Shares converted
to Class A (19,393) (226,710) (285,319) (3,507,013)
-----------------------------------------------------------------------------------------------
Shares redeemed (447,149) (1,220,053) (6,646,824) (18,489,541)
-----------------------------------------------------------------------------------------------
Net increase 57,604 386,282 $ 857,987 $ 5,115,621
===============================================================================================
Class C
Shares sold 193,550 373,595 $ 2,900,793 $ 5,705,996
-----------------------------------------------------------------------------------------------
Shares issued in
reinvestment of
dividends and
distributions -0- 105,627 -0- 1,508,379
-----------------------------------------------------------------------------------------------
Shares redeemed (81,620) (321,515) (1,219,339) (4,819,471)
-----------------------------------------------------------------------------------------------
Net increase 111,930 157,707 $ 1,681,454 $ 2,394,904
===============================================================================================
</TABLE>
--------------------------------------------------------------------------------
ALLIANCE GROWTH INVESTORS AND CONSERVATIVE INVESTORS FUNDS o 39
<PAGE>
-----------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
<TABLE>
<CAPTION>
Alliance Conservative Investors Fund
------------------------------------ --------------------------------------
Shares Amount
------------------------------------ --------------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
October 31, 2000, April 30, October 31, 2000, April 30,
(unaudited) 2000 (unaudited) 2000
-----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A
Shares sold 338,942 548,247 $ 3,843,460 $ 6,333,105
----------------------------------------------------------------------------------------------
Shares issued in
reinvestment of
dividends and
distributions 22,967 155,862 260,785 1,749,897
----------------------------------------------------------------------------------------------
Shares converted
from Class B 18,775 136,551 213,839 1,592,955
----------------------------------------------------------------------------------------------
Shares redeemed (235,648) (486,067) (2,682,278) (5,605,325)
----------------------------------------------------------------------------------------------
Net increase 145,036 354,593 $ 1,635,806 $ 4,070,632
==============================================================================================
Class B
Shares sold 341,282 1,216,848 $ 3,962,230 $ 14,490,361
----------------------------------------------------------------------------------------------
Shares issued in
reinvestment of
dividends and
distributions 24,428 235,528 283,730 2,699,581
----------------------------------------------------------------------------------------------
Shares converted
to Class A (18,423) (133,744) (213,839) (1,592,955)
----------------------------------------------------------------------------------------------
Shares redeemed (290,544) (870,515) (3,380,455) (10,248,789)
----------------------------------------------------------------------------------------------
Net increase 56,743 448,117 $ 651,666 $ 5,348,198
==============================================================================================
Class C
Shares sold 120,902 256,584 $ 1,409,648 $ 3,008,519
----------------------------------------------------------------------------------------------
Shares issued in
reinvestment of
dividends and
distributions 4,655 38,615 54,117 442,931
----------------------------------------------------------------------------------------------
Shares redeemed (75,925) (206,128) (883,696) (2,427,292)
----------------------------------------------------------------------------------------------
Net increase 49,632 89,071 $ 580,069 $ 1,024,158
==============================================================================================
</TABLE>
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 six months ended October 31, 2000.
--------------------------------------------------------------------------------
40 o ALLIANCE GROWTH INVESTORS AND CONSERVATIVE INVESTORS FUNDS
<PAGE>
--------------------
FINANCIAL HIGHLIGHTS
--------------------
FINANCIAL HIGHLIGHTS
Selected Data For a Share of Beneficial Interest Outstanding Throughout Each
Period
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------
Class A
-------------------------------------------------------------------------------------------
Six
Months
Ended
October 31, Year Ended April 30,
2000 ------------------------------------------------------------------------
(unaudited) 2000 1999 1998 1997 1996
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period .......... $ 14.80 $ 15.80 $ 15.09 $ 13.12 $ 14.08 $ 12.08
-------------------------------------------------------------------------------------------
Income From Investment
Operations
Net investment income .......... .16(a) .29(a) .17(a) .12(a) .16(a)(b) .10(b)
Net realized and unrealized
gain (loss) on investment
transactions ................. (.51) 1.05 2.20 3.34 .76 2.75
-------------------------------------------------------------------------------------------
Net increase (decrease) in net
asset value from operations .. (.35) 1.34 2.37 3.46 .92 2.85
-------------------------------------------------------------------------------------------
Less: Dividends and
Distributions
Dividends from net
investment income ............ -0- (.29) (.16) (.16) (.19) (.26)
Distributions in excess of net
investment income ............ -0- -0- (.09) -0- -0- -0-
Distributions from net
realized gains ............... -0- (2.05) (1.41) (1.33) (1.69) (.59)
-------------------------------------------------------------------------------------------
Total dividends and
distributions ................ -0- (2.34) (1.66) (1.49) (1.88) (.85)
-------------------------------------------------------------------------------------------
Net asset value,
end of period ................ $ 14.45 $ 14.80 $ 15.80 $ 15.09 $ 13.12 $ 14.08
===========================================================================================
Total Return
Total investment return based on
net asset value(c) ........... (2.36)% 9.19% 16.81% 27.96% 6.69% 23.87%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted) .............. $55,551 $54,509 $47,917 $33,222 $27,453 $30,608
Ratios to average net assets of:
Expenses, net of waivers/
reimbursements ............. 1.48%(d) 1.46%(e) 1.56%(e) 1.60%(e) 1.56%(e) 1.40%
Expenses, before waivers/
reimbursements ............. 1.48%(d) 1.46% 1.56% 1.60% 1.73% 1.65%
Net investment income ........ 2.11%(d) 1.93% 1.12% .81% 1.14% 2.02%
Portfolio turnover rate ........ 37% 155% 84% 137% 133% 209%
</TABLE>
See footnote summary on page 47.
--------------------------------------------------------------------------------
ALLIANCE GROWTH INVESTORS FUND o 41
<PAGE>
--------------------
FINANCIAL HIGHLIGHTS
--------------------
Selected Data For a Share of Beneficial Interest Outstanding Throughout Each
Period
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------
Class B
-------------------------------------------------------------------------------------------
Six
Months
Ended
October 31, Year Ended April 30,
2000 ------------------------------------------------------------------------
(unaudited) 2000 1999 1998 1997 1996
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period .......... $ 14.94 $ 15.88 $ 15.12 $ 13.11 $ 14.08 $ 12.09
-------------------------------------------------------------------------------------------
Income From Investment
Operations
Net investment income .......... .10(a) .18(a) .06(a) .01(a) .06(a)(b) .06(b)
Net realized and unrealized
gain (loss) on investment
transactions ................. (.50) 1.05 2.21 3.35 .77 2.70
-------------------------------------------------------------------------------------------
Net increase (decrease) in net
asset value from operations .. (.40) 1.23 2.27 3.36 .83 2.76
-------------------------------------------------------------------------------------------
Less: Dividends and
Distributions
Dividends from net
investment income ............ -0- (.12) (.07) (.02) (.11) (.18)
Distributions in excess of net
investment income ............ -0- -0- (.03) -0- -0- -0-
Distributions from net
realized gains ............... -0- (2.05) (1.41) (1.33) (1.69) (.59)
-------------------------------------------------------------------------------------------
Total dividends and
distributions ................ -0- (2.17) (1.51) (1.35) (1.80) (.77)
-------------------------------------------------------------------------------------------
Net asset value,
end of period ................ $ 14.54 $ 14.94 $ 15.88 $ 15.12 $ 13.11 $ 14.08
===========================================================================================
Total Return
Total investment return based on
net asset value(c) ........... (2.68)% 8.39% 15.96% 27.04% 5.98% 23.06%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted) .............. $77,472 $78,762 $77,554 $72,618 $61,709 $59,978
Ratios to average net assets of:
Expenses, net of waivers/
reimbursements ............. 2.21%(d)) 2.18%(e) 2.29%(e) 2.31%(e) 2.27%(e) 2.10%
Expenses, before waivers/
reimbursements ............. 2.21%(d) 2.18% 2.29% 2.31% 2.44% 2.35%
Net investment income ........ 1.38%(d) 1.20% .39% .10% .42% 1.15%
Portfolio turnover rate ........ 37% 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
Period
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------
Class C
------------------------------------------------------------------------------------
Six
Months
Ended
October 31, Year Ended April 30,
2000 -----------------------------------------------------------------
(unaudited) 2000 1999 1998 1997 1996
------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period .......... $ 14.95 $ 15.88 $15.13 $13.12 $14.09 $12.10
------------------------------------------------------------------------------------
Income From Investment
Operations
Net investment income .......... .10(a) .18(a) .06(a) .02(a) .06(a)(b) .06(b)
Net realized and unrealized
gain (loss) on investment
transactions ................. (.50) 1.06 2.20 3.34 .77 2.70
------------------------------------------------------------------------------------
Net increase (decrease) in net
asset value from operations .. (.40) 1.24 2.26 3.36 .83 2.76
------------------------------------------------------------------------------------
Less: Dividends and
Distributions
Dividends from net
investment income ............ -0- (.12) (.07) (.02) (.11) (.18)
Distributions in excess of net
investment income ............ -0- -0- (.03) -0- -0- -0-
Distributions from net
realized gains ............... -0- (2.05) (1.41) (1.33) (1.69) (.59)
------------------------------------------------------------------------------------
Total dividends and
distributions ................ -0- (2.17) (1.51) (1.35) (1.80) (.77)
------------------------------------------------------------------------------------
Net asset value,
end of period ................ $ 14.55 $ 14.95 $15.88 $15.13 $13.12 $14.09
====================================================================================
Total Return
Total investment return based on
net asset value(c) ........... (2.68)% 8.45% 15.88% 27.02% 5.97% 23.04%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted) .............. $12,735 $11,414 $9,618 $8,336 $6,033 $5,915
Ratios to average net assets of:
Expenses, net of waivers/
reimbursements ............. 2.19%(d) 2.17%(e) 2.28%(e) 2.30%(e) 2.28%(e) 2.10%
Expenses, before waivers/
reimbursements ............. 2.19%(d) 2.17% 2.28% 2.30% 2.43% 2.36%
Net investment income ........ 1.39%(d) 1.21% .40% .11% .42% 1.15%
Portfolio turnover rate ........ 37% 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
Period
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------
Class A
----------------------------------------------------------------------------------------
Six
Months
Ended
October 31, Year Ended April 30,
2000 ---------------------------------------------------------------------
(unaudited) 2000 1999 1998 1997 1996
----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period .......... $ 11.33 $ 11.88 $ 11.97 $ 11.31 $ 11.14 $ 10.38
----------------------------------------------------------------------------------------
Income From Investment
Operations
Net investment income(b) ....... .22(a) .44(a) .38(a) .39(a) .41(a) .51
Net realized and unrealized
gain (loss) on investment
transactions ................. (.03) .07 .61 1.54 .46 .80
----------------------------------------------------------------------------------------
Net increase in net asset
value from operations ........ .19 .51 .99 1.93 .87 1.31
----------------------------------------------------------------------------------------
Less: Dividends and
Distributions
Dividends from net
investment income ............ (.14) (.40) (.38) (.43) (.45) (.55)
Distributions in excess of net
investment income ............ -0- -0- (.05) -0- -0- -0-
Distributions from net
realized gains ............... -0- (.66) (.65) (.84) (.25) -0-
----------------------------------------------------------------------------------------
Total dividends and
distributions ................ (.14) (1.06) (1.08) (1.27) (.70) (.55)
----------------------------------------------------------------------------------------
Net asset value,
end of period ................ $ 11.38 $ 11.33 $ 11.88 $ 11.97 $ 11.31 $ 11.14
========================================================================================
Total Return
Total investment return based on
net asset value(c) ........... 1.68% 4.50% 8.59% 17.87% 7.90% 12.69%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted) .............. $23,394 $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%(e) 1.41%(e) 1.41%(e) 1.40%(e) 1.40%
Expenses, before waivers/
reimbursements ............. 1.67%(d) 1.67% 1.74% 1.91% 1.90% 1.73%
Net investment income(b) ..... 3.92%(d) 3.75% 3.17% 3.33% 3.66% 4.43%
Portfolio turnover rate ........ 26% 54% 105% 138% 174% 267%
</TABLE>
See footnote summary on page 47.
--------------------------------------------------------------------------------
44 o ALLIANCE CONSERVATIVE INVESTORS FUND
<PAGE>
--------------------
FINANCIAL HIGHLIGHTS
--------------------
Selected Data For a Share of Beneficial Interest Outstanding Throughout Each
Period
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------
Class B
---------------------------------------------------------------------------------------
Six
Months
Ended
October 31, Year Ended April 30,
2000 --------------------------------------------------------------------
(unaudited) 2000 1999 1998 1997 1996
---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period .......... $ 11.57 $ 12.12 $ 12.19 $ 11.49 $ 11.31 $ 10.51
---------------------------------------------------------------------------------------
Income From Investment
Operations
Net investment income(b) ....... .19(a) .36(a) .30(a) .32(a) .34(a) .43
Net realized and unrealized
gain (loss) on investment
transactions ................. (.03) .07 .63 1.55 .46 .82
---------------------------------------------------------------------------------------
Net increase in net asset
value from operations ........ .16 .43 .93 1.87 .80 1.25
---------------------------------------------------------------------------------------
Less: Dividends and
Distributions
Dividends from net
investment income ............ (.10) (.32) (.31) (.33) (.37) (.45)
Distributions in excess of net
investment income ............ -0- -0- (.04) -0- -0- -0-
Distributions from net
realized gains ............... -0- (.66) (.65) (.84) (.25) -0-
---------------------------------------------------------------------------------------
Total dividends and
distributions ................ (.10) (.98) (1.00) (1.17) (.62) (.45)
---------------------------------------------------------------------------------------
Net asset value, end of period . $ 11.63 $ 11.57 $ 12.12 $ 12.19 $ 11.49 $ 11.31
=======================================================================================
Total Return
Total investment return based on
net asset value(c) ........... 1.40% 3.73% 7.82% 17.04% 7.10% 11.95%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted) .............. $35,769 $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%(e) 2.11%(e) 2.11%(e) 2.10%(e) 2.10%
Expenses, before waivers/
reimbursements ............. 2.40%(d) 2.40% 2.48% 2.61% 2.61% 2.44%
Net investment income(b) ..... 3.22%(d) 3.05% 2.48% 2.63% 2.96% 3.72%
Portfolio turnover rate ........ 26% 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
Period
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------
Class C
----------------------------------------------------------------------------------
Six
Months
Ended
October 31, Year Ended April 30,
2000 ---------------------------------------------------------------
(unaudited) 2000 1999 1998 1997 1996
----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period ........... $11.58 $12.13 $12.19 $11.49 $11.31 $10.52
----------------------------------------------------------------------------------
Income From Investment
Operations
Net investment income(b) ........ .19(a) .36(a) .30(a) .32(a) .34(a) .41
Net realized and unrealized
gain (loss) on investment
transactions .................. (.04) .07 .64 1.55 .46 .83
----------------------------------------------------------------------------------
Net increase in net asset
value from operations ......... .15 .43 .94 1.87 .80 1.24
----------------------------------------------------------------------------------
Less: Dividends and
Distributions
Dividends from net
investment income ............. (.10) (.32) (.31) (.33) (.37) (.45)
Distribution in excess of net
investment income ............. -0- -0- (.04) -0- -0- -0-
Distributions from net
realized gains ................ -0- (.66) (.65) (.84) (.25) -0-
----------------------------------------------------------------------------------
Total dividends and distributions (.10) (.98) (1.00) (1.17) (.62) (.45)
----------------------------------------------------------------------------------
Net asset value, end of period .. $11.63 $11.58 $12.13 $12.19 $11.49 $11.31
==================================================================================
Total Return
Total investment return based on
net asset value(c) ............ 1.32% 3.72% 7.91% 17.04% 7.10% 11.84%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted) ............... $7,070 $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%(e) 2.11%(e) 2.11%(e) 2.10%(e) 2.10%
Expenses, before waivers/
reimbursements .............. 2.39%(d) 2.39% 2.47% 2.61% 2.60% 2.45%
Net investment income(b) ...... 3.22%(d) 3.05% 2.47% 2.63% 2.96% 3.71%
Portfolio turnover rate ......... 26% 54% 105% 138% 174% 267%
</TABLE>
See footnote summary on page 47.
--------------------------------------------------------------------------------
46 o ALLIANCE CONSERVATIVE INVESTORS FUND
<PAGE>
--------------------
FINANCIAL HIGHLIGHTS
--------------------
(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) Annualized.
(e) 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:
<TABLE>
<CAPTION>
Alliance Growth Investors Alliance Conservative Investors
-------------------------------------------- -------------------------------------------
Year Ended April 30, Year Ended April 30,
-------------------------------------------- -------------------------------------------
2000 1999 1998 1997 2000 1999 1998 1997
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
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%
</TABLE>
--------------------------------------------------------------------------------
ALLIANCE GROWTH INVESTORS AND CONSERVATIVE INVESTORS FUNDS o 47
<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.
capital
Cash or goods that are used to generate income. Also, the net worth of a
business (the amount by which its assets exceed its liabilities).
common stock
A type of security that represents ownership in a public company.
earnings
Revenues minus cost of sales, operating expenses, and taxes, over a given period
of time. Earnings are often the most important determinant of a company's stock
price.
fixed-income security
A bond.
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.
inflation
The overall general upward price movement of goods and services in an economy.
maturity
The date that an obligation becomes due for payment.
net asset value (NAV)
The value of a mutual fund's total assets, minus its liabilities, divided by the
number of shares outstanding. NAV can be used in reference to either an
individual share or the entire assets of a mutual fund.
portfolio
The collection of securities that make up a fund's or an investor's investments.
sector
A group of securities that are similar with respect to maturity, type, rating,
industry and/or coupon. Refers to a distinct part of the economy, for example,
the technology sector.
--------------------------------------------------------------------------------
48 o ALLIANCE GROWTH INVESTORS AND CONSERVATIVE INVESTORS FUNDS
<PAGE>
----------------
ALLIANCE CAPITAL
----------------
ALLIANCE CAPITAL
The Investment Professional's Choice
Alliance Capital is a leading global investment management firm with over $474
billion in assets under management. In recognition of our far-reaching
investment capabilities, Alliance Capital has been selected by employee benefit
plans for 38 of the FORTUNE 100 companies and public retirement funds in 35
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 585
investment professionals in 28 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 10/2/00.
--------------------------------------------------------------------------------
ALLIANCE GROWTH INVESTORS AND CONSERVATIVE INVESTORS FUNDS o 49
<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, Alliance
Select Investor Series Technology Portfolio, and Alliance Select Investor
Series Biotechnology 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.
--------------------------------------------------------------------------------
50 o ALLIANCE GROWTH INVESTORS AND CONSERVATIVE INVESTORS FUNDS
<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 800-221-5672
Independent Accountants
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, New York 10036-2798
(1) Member of the Audit Committee.
--------------------------------------------------------------------------------
ALLIANCE GROWTH INVESTORS AND CONSERVATIVE INVESTORS FUNDS o 51
<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
Biotechnology Portfolio
Premier Portfolio
Technology Portfolio
Fixed Income Funds
Corporate Bond Portfolio
Global Dollar Government Fund
Global Strategic Income Trust
High Yield 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
Closed-End Funds
All-Market Advantage Fund
The Austria Fund
ACM Government Income Fund
ACM Government Opportunity Fund
The Korean Investment Fund
ACM Managed Dollar Income Fund
ACM Managed Income Fund
ACM Municipal Securities Income Fund
The Southern Africa Fund
The Spain Fund
World Dollar Government Fund
World Dollar Government Fund II
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.
--------------------------------------------------------------------------------
52 o ALLIANCE GROWTH INVESTORS AND CONSERVATIVE INVESTORS FUNDS
<PAGE>
Alliance Growth Investors and Conservative Investors Funds
1345 Avenue of the Americas
New York, NY 10105
(800) 221-5672
Alliance Capital [LOGO](R)
The Investment Professional's Choice
(R) These registered service marks used under license from the owner, Alliance
Capital Management L.P.
GICISR1000
