ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
ANNUAL REPORT
DECEMBER 31, 1994
The following Annual Report for the Alliance Variable Products Series Fund, Inc.
(the "Fund") includes financial information for the fifteen Portfolios of the
Fund which were active as of December 31, 1994. Not all Portfolios of the Fund
are available through each insurance product offering investments in the Fund.
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
LETTER TO SHAREHOLDERS
-------------------------------------------------------------------------------
February 2, 1995
Dear Shareholder:
For the twelve months ended December 31, 1994, we are pleased to provide
overviews of market activity, both domestically and internationally, that
influenced investment performance for Alliance Variable Products Series Fund.
MARKET OVERVIEW
The economy grew at an above-average rate during 1994 in the face of the Federal
Reserve's series of interest rate increases. This scenario resulted in a
frustrating year for investors. Although a growing economy is positive for the
financial markets over the long term, over the short term it creates problems.
During a strong economic cycle, liquidity is drawn out of the financial markets
to finance growth as consumers save less and borrow more. At the same time,
businesses borrow additional money to finance inventories, accounts receivable
and capital spending on new plants and equipment. A rapidly growing economy also
uses up spare resources in terms of industrial capacity and labor force.
While the major U.S. stock index, represented by the unmanaged S&P 500, showed a
positive 1.32% return for 1994 and finished the year better than the bond
market, the general universe of 7,000 stocks was down 7.78%. Additionally,
according to Lipper Analytical Services, U.S. stock mutual funds were down by an
average of 1.69%. Foreign stock markets fared better for the second year in a
row; the unmanaged Morgan Stanley Capital International Index was up 5.08%.
Although rising rates put downward pressure on stock market valuations, this
decline was offset by profits that were much stronger than anticipated. The
market suffered a sharp decline between February and April when the Fed began
raising interest rates. It then had a gradual recovery through the rest of the
year as positive profit reports emerged. The current pattern, with prices
drifting modestly higher or lower, could go on for some time. Any substantial
rise in stocks in the near term, however, appears unlikely.
Within the stock market, weak areas were marked by companies that perform well
early in the economic cycle, including autos and retailers. Though earnings are
still strong, these stocks have experienced substantial price increases. The
market is now looking ahead to the impact of rising interest rates on this
segment of the economy and asking whether its profitability is sustainable.
Another area with particularly negative results was the electric utilities
sector, which suffered from negative regulatory conditions as well as rising
rates. The market's best performing areas were internationally oriented growth
stocks in sectors such as technology, health care and some consumer nondurables;
or cyclicals with exposure to rising commodities prices, including chemicals,
papers and metals.
Stocks will probably remain under pressure in the first half of the year. It is
important to note, however, that events as we head into the new year fall within
cyclical patterns. For example, it is normal in the early phases of a cycle of
rising rates for the bond markets to decline more than the stock market. Later
in the cycle, however, the stock market generally catches up with those early
bond market declines.
Looking at the U.S. bond market, 1994 ranked as one of its worst-performing
years. Inflation fears and the succession of interest rate hikes caused negative
market sentiment and broad declines in bond prices. In contrast to 1993's strong
gains, all sectors of the bond market finished 1994 with negative total returns.
Government bond market returns were at their lowest levels in 30 years. The
Lehman Aggregate Index, a measure of the broad bond market, was down by 2.92%.
Two of the best bond market sectors were short-term bonds and lower-quality
bonds. Short-term bonds were less affected by the overall rise in rates and
lower-quality bonds declined less than Treasurys as spreads narrowed and the
strong economy gave investors increased confidence in lower-quality credits.
In the near term, the rise in short-term interest rates will likely keep
pressure on all financial assets, including long-term bonds. However, investors
are starting to
<PAGE>
anticipate that higher rates will slow the economy before inflation gets out of
hand. As a result, long-term bond prices began to stabilize late in 1994 and are
now poised for a strong rally that should begin with signs of a slowing economy
and stabilizing or declining short-term interest rates.
The new year may be volatile for the stock and bond markets, however our
longer-term outlook is positive. We anticipate a high degree of opportunity for
investors as the economy slows its pace and before 1995 is over, both markets
should be on a positive recovery track.
o MONEY MARKET PORTFOLIO
As year end approached, upward pressure on short-term funds allowed for
attractive investment opportunities without the risk of lengthening duration.
Much of the Portfolio's strategy throughout the year conformed with fourth
quarter market conditions, which dictated a shorter average maturity.
Speculation about further rate increases is likely to persist through the first
half of 1995 if inflation concerns continue. With one or possibly two interest
rate increases expected during this quarter, a careful placing of maturities
will be a priority for the Portfolio.
U.S. STOCK MARKET
o GROWTH AND INCOME PORTFOLIO
o GROWTH INVESTORS PORTFOLIO
o GROWTH PORTFOLIO
o PREMIER GROWTH PORTFOLIO
o TOTAL RETURN PORTFOLIO
o UTILITY INCOME PORTFOLIO
It was a frustrating year for investors in 1994. After a fast start in January
the market dropped sharply when the Federal Reserve began to raise interest
rates. Since that time, there has been a struggle between the positive stimulus
from good corporate earnings and the negative impact of rising rates on market
valuations.
The market has had only one focus in 1994, namely that the economic recovery
would translate into higher inflation and higher interest rates. From a
longer-term perspective, however, the Federal Reserve's action should be good
for the sustainability and quality of U.S. economic performance. Stocks will
show their best returns when viewed over a several-year period, and extended
moderate growth is exactly what the Federal Reserve action is seeking to
achieve. It would be naive to assume no cyclicality in the coming years, but
volatility of economic performance and profits should be more muted than in the
past.
Beyond the current interest rate cycle our outlook is more optimistic. Low
inflation, reduced government regulation of business and advances in technology
could contribute to a very good investment outlook beyond 1995.
In the utilities sector, weak performance over the past 18 months reflects a
combination of cyclical economic recovery, attendant rising interest rates, and
continuing evidence of secular competitive pressures arising from increased
deregulation. Going into 1995 the question remains of whether it will take much
higher interest rates to slow the economy and keep inflation in check.
o INTERNATIONAL PORTFOLIO
International stock markets generally outperformed the U.S. again in 1994.
Japan, the largest and most important market, rose 21%, but more than half of
this gain was from currency appreciation. Major European markets were able to
slightly outpace the U.S. only with the aid of currency gains, which averaged
9%. Strong local performance was provided by Scandinavia and other small
European markets and by individual Latin American markets. Most developing
country markets suffered major declines as continued interest rate hikes by the
U.S. Federal Reserve impacted capital inflows.
The International Portfolio performed well on a relative basis in 1994. This was
primarily because of good stock selection in Japan, as well as solid
representation in the strongly performing smaller markets of Europe.
Japanese stock selection emphasizes the financial services sector and global
leaders in electronic and cellular technology, consumer electronics and capital
goods. European stock selection favors capital goods, basic materials and
cellular and media stocks.
GLOBAL BOND MARKETS
o CONSERVATIVE INVESTORS PORTFOLIO
o GLOBAL BOND PORTFOLIO
o GLOBAL DOLLAR GOVERNMENT PORTFOLIO
o NORTH AMERICAN GOVERNMENT INCOME PORTFOLIO
o SHORT-TERM MULTI-MARKET PORTFOLIO
o U.S. GOVERNMENT/HIGH GRADE SECURITIES
PORTFOLIO
<PAGE>
Stricter U.S. monetary policy placed downward pressure on domestic and
international bond prices for most of the year. In the six months since we last
reported, yields on two-year U.S. Treasury notes rose from 6.17% to 7.69%. In
the same period, 30-year Treasury bond yields increased from 7.61% to 7.88%.
Thus, the yield spread between long-term and short-term Treasury notes narrowed
dramatically. Negative returns for the U.S. bond market represented the first
overall decline in more than 20 years.
If the Federal Reserve succeeds at keeping inflation under control, as we
believe it will, current yields on high quality bonds, already very high
relative to the current inflation rate, will be more attractive. Interest rates
would hit a cyclical peak during the year and, in addition to earning a bond's
stated rate of interest, this would offer the opportunity to capture price
appreciation as rates decline.
U.S. mortgage backed securities outperformed both Treasurys and U.S.
corporate bonds. In general, corporate bonds outperformed Treasurys, but
at this late stage of the economic cycle we believe most of the good
news on credit quality is already reflected in the prices of corporate
bonds.
The continued tightening in U.S. monetary policy by the Federal Reserve and
political and economic events in Mexico, Argentina and Canada have triggered
declining bond prices with high price volatility in these markets. Adding to
this price pressure was the Mexican government's decision, in late December, to
abandon its currency trading band and float the peso. This unexpected action led
to significant price declines for all Mexican debt obligations. While this
dramatic shift in Mexican economic policy may prove beneficial to the long-term
performance of the economy, it negatively impacted the value of the Portfolios'
Mexican debt securities.
The Mexican government floated the peso in hopes of improving the trade deficit,
lowering interest rates and halting the depletion of its currency reserves.
However, in taking such action, the government has raised the likelihood of
higher inflation and lower growth in 1995, and has severely shaken investor
confidence in their economic programs.
President Ernesto Zedillo Ponce de Leon's economic rescue plan includes
defending the peso with the use of an international aid package, cutting
government spending, limiting wage increases and privatizing several state-owned
facilities. To be successful, the government's plan must maintain the price
advantages that come with a substantial currency devaluation, without setting
off inflation. Results from the program may begin to appear in the second half
of the year.
While economic fundamentals remain strong in Argentina, the devaluation of the
Mexican peso is likely to result in higher Argentinean interest rates as
investors demand increased protection from Latin American currency risk. The
resulting downward pressure on prices should ease as economic problems in Mexico
subside. The Mexican crisis has also compounded the weakness of the Canadian
dollar, which has been weighed down by the country's budget deficits and
uncertainty over Quebec's status. As the peso stabilizes, the Canadian dollar
should strengthen and more closely reflect the country's economic strength.
Canada enjoyed rapid economic growth and very low inflation in 1994 and we
forecast further growth with minimal price pressure in 1995.
The long-term outlook for Mexico, Argentina and Canada indicates the
continuation of export-led economic growth. Economic fundamentals remain strong
in these countries and the long-term impact of the North American Free Trade
Agreement should continue to boost economic activity and increase regional
trade. In addition, President Clinton, under executive order, recently approved
an aid package for Mexico that will exceed the $40 billion of the original U.S.
congressional aid package.
In European markets, growth rates of many of the economies have been a great
deal stronger than market consensus forecasts at the start of 1994. Total
year-over-year gross domestic product, or GDP, growth rates for 1994 are likely
to be 2.0 - 2.5% in Germany, France and Italy; 3.5 - 4.0% in the United Kingdom,
and 4.5 - 5.0% in Denmark. These rates are considerably higher than projected
early in the year.
Growth rates in Europe have been buoyed by exports sectors of the respective
economies. A healthy U.S. economy and booming economies in the newly
industrialized countries of Asia have provided a healthy market for European
exports. The domestic sectors of the European economies, however, have not kept
pace. Stubbornly high unemployment rates combined with
<PAGE>
continued fiscal tightening (less government spending and higher tax rates) have
combined to keep the consumer on the sidelines. We believe the markets are
pricing in interest rate increases in the near future that are too great for the
upcoming domestic economic environment.
Given the continued search for European Monetary Union and economic convergence
within Europe, it is easy to foresee this as an attractive investment
environment once again. Also, the German unification, while still being smoothed
out, is no longer driving the German economy in a different direction from the
rest of its European neighbors.
o WORLDWIDE PRIVATIZATION PORTFOLIO
By the end of 1994, privatization offerings had raised more than $57 billion,
another record total. Western Europe has maintained its position as the leading
area of privatization activity, accounting for over half of the total volume;
the remainder is divided roughly equally between the Asian-Pacific region, Latin
America and Eastern Europe.
The impact of the recent shakeout in emerging markets on the 1995 privatization
program looks unlikely to result in a decline in the pace of privatization in
developing markets. In fact, following the crisis in the Mexican financial
markets, part of the government's commitment to potential lenders is the
proposal to speed up the privatization process.
Consequently, we expect 1995 should prove to be a healthy year for privatization
volumes. We look particu-larly towards the Middle East, Russia and Africa as
offering interesting investment opportunities in the current year. Clearly some
stabilization of the current malaise inflicting the world's stock markets is a
precondition for successful offerings and in this regard we remain optimistic.
World growth is moving upwards and corporate earnings remain strong. The
relatively strong financial performance of newly privatized securities remains
intact and the potential for cost cutting and price improvement is good. We
believe that privatization issues will continue to offer positive long-term
returns for investors.
Investment results for each Portfolio appear on the following page. We
appreciate your investment in Alliance Variable Products Series Fund and look
forward to reporting its progress to you later in the year.
Sincerely,
John D. Carifa
Chairman and President
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
INVESTMENT RESULTS
-------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN AS OF DECEMBER 31, 1994
Listed below are total returns for the fiscal twelve months ended December 31,
1994. Where applicable, average annual total returns from inception are
included.
Conservative Investors Portfolio
o Since Inception (10/94) +0.70%
Global Bond Portfolio
o One Year -5.16%
o Since Inception (7/91) +6.10%
Global Dollar Portfolio
o Since Inception (5/94) -1.60%
Growth and Income Portfolio
o One Year -0.35%
o Since Inception (1/91) +6.04%
Growth Investors Portfolio
o Since Inception (10/94) -1.40%
Growth Portfolio
o Since Inception (9/94) +5.30%
International Portfolio
o One Year +6.70%
o Since Inception (12/92) +13.91%
Money Market Portfolio
o One Year +3.27%
North American Government
Income Portfolio
o Since Inception (5/94) -12.10%
Premier Growth Portfolio
o One Year -2.96%
o Since Inception (6/92) +9.08%
Short-Term Multi-Market Portfolio
o One Year -6.51%
o Since Inception (11/90) -0.16%
Total Return Portfolio
o One Year -3.77%
o Since Inception (12/92) +2.75%
U.S. Government/High Grade Securities Portfolio
o One Year -4.03%
o Since Inception (9/92) +2.37%
Utility Income Portfolio
o Since Inception (5/94) -0.40%
Worldwide Privatization Portfolio
o Since Inception (9/94) +1.00%
The average annual total returns reflect investment of dividends and/or capital
gains distributions in additional shares. 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.
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND
GROWTH OF A $10,000 INVESTMENT
PREMIER GROWTH PORTFOLIO
6/30/92 TO 12/31/94
PREMIER GROWTH S&P 500 RUSSELL 1000
------------------- --------------- ---------------
6/30/92 10000 10000 10000
12/31/92 11380 10834 10992
6/30/93 11850 11361 11528
12/31/93 12817 11923 12108
6/30/94 12096 11520 11607
12/31/94 12438 12080 12153
GLOBAL BOND PORTFOLIO
7/31/91 TO 12/31/94
GLOBAL BD. SB WRLD GOV'T
------------------- ---------------
7/31/91 10000 10000
12/31/91 11078 11233
6/30/92 11400 12068
12/31/92 11617 12279
6/30/93 12217 13123
12/31/93 12913 13780
6/30/94 12297 13871
12/31/94 12247 13990
GROWTH AND INCOME PORTFOLIO
1/31/91 TO 12/31/94
GROWTH AND INCOME S&P 500 LIPPER G&I
------------------- --------------- ---------------
1/31/91 10000 10000 10000
6/30/91 10140 11457 11072
12/31/91 10340 12265 12040
6/30/92 10246 12920 13560
12/31/92 11160 13560 13279
6/30/93 11668 14045 13872
12/31/93 12465 15303 15188
6/30/94 12159 14769 14599
12/31/94 12421 14995 14564
GROWTH OF A $10,000 INVESTMENT
TOTAL RETURN PORTFOLIO
12/31/92 TO 12/31/94
TOTAL RETURN 60/40 COMPOSITE LIPPER AVG
-------------- --------------- ---------------
12/31/92 10000 10000 10000
6/30/93 10540 10604 10353
12/31/93 10970 11045 10871
6/30/94 10506 10629 10410
12/31/94 10557 10976 10617
INTERNATIONAL PORTFOLIO
12/31/92 TO 12/31/94
INT'L MSCI EAFE LIPPER INT'L
------------------- --------------- ---------------
12/31/92 10000 10000 10000
6/30/93 11160 12345 11217
12/31/93 12160 13294 13431
6/30/94 13146 14481 13456
12/31/94 12975 14366 13343
The charts shown in these pages illustrate the total value of an assumed
investment in an Alliance Variable Products Series Fund Portfolio (since
inception), with dividends and capital gains reinvested. Results should not
be considered representative of future gain or loss in capital value or
dividend income. All indexes are unmanaged.
The Lehman Brothers Aggregate Index is composed of the Mortgage Backed
Securities Index, the Asset Backed Securities Index and the combination
Government/Corporate Bond Index.
The Lehman Brothers Government/Corporate Bond Index represents a
combination of the Government Bond Index and the Corporate Bond Index.
The Merrill Lynch 1-3 Year Treasury Index is composed of U.S. government
agency and Treasury securities with maturities of one to three years.
<PAGE>
The Lipper Balanced Funds Average reflects performance of 207 funds. These
funds have generally similar investment objectives to the Total Return
Portfolio, although some funds included in the average may have somewhat
different investment policies.
The Lipper Growth and Income Funds Average reflects performance of 419
funds. These funds have generally similar investment objectives to the Growth
and Income Portfolio, although some funds included in the average may have
somewhat different investment policies.
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND
GROWTH OF A $10,000 INVESTMENT
SHORT-TERM MULTI-MARKET PORTFOLIO
11/30/90 TO 12/31/94
SHORT-TERM ML 1-3YR GOV'T LIPPER AVG
------------------- --------------- ---------------
11/30/90 10000 10000 10000
12/31/90 10040 10516 10099
12/31/91 10734 11223 10460
12/31/92 10824 12067 10503
12/31/93 11540 12994 11181
12/31/94 10789 12946 11188
U.S. GOVERNMENT/HIGH-GRADE SECURITIES PORTFOLIO
9/30/92 TO 12/31/94
US GOV'T/HIGH GRADE LB AGGREGATE 67/33 COMPOSITE
------------------- --------------- ---------------
9/30/92 10000 10000 10000
12/31/92 9890 10441 10479
9/30/93 10440 10998 11156
12/31/93 10800 10689 10772
9/30/94 10754 10643 10689
12/31/94 10364 10683 10730
The Lipper International Funds Average reflects performance of 223 funds.
These funds have generally similar investment objectives to the International
Portfolio, although some funds included in the average may have somewhat
different investment policies.
The Lipper Short World Multi-Market Income Funds Average reflects
performance of 44 funds. These funds have generally similar investment
objectives to the Short-Term Multi-Market Portfolio, although some funds
included in the average may have somewhat different investment policies.
The Morgan Stanley Capital International EAFE Index measures the overall
performance of stock markets in 20 different countries in Europe, Australia
and the Far East.
The Russell 1000 Stock Index is an unmanaged index representing
performance of 1000 of the largest U.S. companies by market capitalization.
The Salomon Brothers World Government Bond Index represents performance of
government bond markets in 14 countries.
The Standard and Poor's 500-stock index is an unmanaged index that
includes 500 U.S. stocks. It is a common measure of the performance of the
U.S. stock market.
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
TEN LARGEST HOLDINGS
DECEMBER 31, 1994
PREMIER GROWTH PORTFOLIO
<TABLE>
<CAPTION>
COMPANY U.S. $ VALUE
PERCENT OF NET ASSETS
---------- ------------
---------------------
<S> <C>
<C>
Intel Corp. (common stock and warrants) $ 2,209,069
5.9%
Motorola, Inc. 1,805,700
4.8
United Healthcare Corp. 1,737,312
4.6
Merrill Lynch & Co., Inc. 1,687,400
4.5
Federal National Mortgage Assn. 1,515,800
4.0
Norwest Corp. 1,505,350
4.0
Chrysler Corp. 1,381,800
3.7
Compaq Computer Corp. 1,181,050
3.1
General Motors Corp. 1,035,125
2.7
Tele-Communications, Inc. Cl. A 988,106
2.6
$15,046,712
39.9%
</TABLE>
GROWTH AND INCOME PORTFOLIO
<TABLE>
<CAPTION>
COMPANY U.S. $ VALUE
PERCENT OF NET ASSETS
---------- ------------
---------------------
<S> <C>
<C>
Sprint Corp. $ 1,914,412
4.6%
YPF Sociedad Anonima (ADR) 1,325,250
3.2
Philip Morris Cos., Inc. 1,299,500
3.1
General Electric Co. 1,020,000
2.4
General Instrument Corp. (common stock and conv. bond) 951,812
2.3
Western Atlas, Inc. 936,862
2.2
AB Astra (common stock - ADR, Series A and B) 935,296
2.2
Travelers, Inc. 910,000
2.2
Walt Disney Co. 830,250
2.0
Comcast Corp. (common stock and bond) 811,075
2.0
$10,934,457
26.2%
</TABLE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
TEN LARGEST HOLDINGS
DECEMBER 31, 1994
-------------------------------------------------------------------------------
TOTAL RETURN PORTFOLIO
<TABLE>
<CAPTION>
COMPANY U.S. $ VALUE
PERCENT OF NET ASSETS
---------- ------------
---------------------
<S> <C>
<C>
U.S. Treasury Notes $245,137
32.7%
General Electric Co. 16,320
2.2
Enron Corp. 10,675
1.4
Philip Morris Cos., Inc. 10,350
1.4
Federal National Mortgage Assn. 10,202
1.4
Walt Disney Co. 10,148
1.4
Chevron Corp. 9,817
1.3
American International Group, Inc. 9,800
1.3
Merck & Co., Inc. 8,769
1.1
Sprint Corp. 7,735
1.0
$338,953
45.2%
</TABLE>
INTERNATIONAL PORTFOLIO
<TABLE>
<CAPTION>
COMPANY U.S. $ VALUE
PERCENT OF NET ASSETS
---------- ------------
---------------------
<S> <C>
<C>
Bank of Tokyo $ 123,695
1.7%
Sumitomo Bank 114,458
1.6
Sony Corp. 113,454
1.6
Astra AB 101,548
1.4
Asahi Glass Co., Ltd. 98,795
1.3
Hitachi Metals, Ltd. 97,992
1.3
Tokio Marine and fire Co. 97,992
1.3
Sakura Bank, Ltd. 94,177
1.3
Amev N.V. 93,786
1.3
Asahi Bank, Ltd. 93,173
1.3
$1,029,070
14.1%
</TABLE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
TEN LARGEST HOLDINGS
DECEMBER 31, 1994
-------------------------------------------------------------------------------
UTILITY INCOME PORTFOLIO
<TABLE>
<CAPTION>
COMPANY U.S. $ VALUE
PERCENT OF NET ASSETS
---------- ------------
---------------------
<S> <C>
<C>
Penn Engineering Manufacturing Corp. $ 46,338
3.7%
Duke Power Co. 41,937
3.3
Baltimore Gas & Electric Co. 39,825
3.2
American Electric Power, Inc. 39,450
3.1
FPL Group, Inc. 38,637
3.1
San Diego Gas & Electric Co. 38,500
3.0
Dominion Resources, Inc. 35,750
2.9
Public Service Co. of New Mexico 33,800
2.7
Wisconsin Energy Corp. 33,638
2.7
Pennsylvania Power & Light Co. 32,300
2.6
$380,175
30.3%
</TABLE>
GROWTH PORTFOLIO
<TABLE>
<CAPTION>
COMPANY U.S. $ VALUE
PERCENT OF NET ASSETS
---------- ------------
---------------------
<S> <C>
<C>
Cisco Systems, Inc. $ 227,906
4.1%
Loews Corp. 199,813
3.6
Travelers, Inc. 182,000
3.3
Sears, Roebuck & Co. 174,800
3.2
EMC Corp. 173,000
3.2
Healthsource, Inc. 171,675
3.1
Rogers Cantel Mobile Communications, Inc. 155,025
2.8
Intel Corp. 146,625
2.7
Ortel Corp. 131,250
2.4
Sports Authority, Inc. 126,000
2.3
$1,688,094
30.7%
</TABLE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
TEN LARGEST HOLDINGS
DECEMBER 31, 1994
-------------------------------------------------------------------------------
CONSERVATIVE INVESTORS PORTFOLIO
<TABLE>
<CAPTION>
COMPANY U.S. $ VALUE
PERCENT OF NET ASSETS
---------- ------------
---------------------
<S> <C>
<C>
U.S. Treasury Bond $210,443
30.0%
Federal Farm Credit Bank 104,843
15.0
Federal Home Loan Bank 99,870
14.2
Federal National Mortgage Assn. 89,632
12.8
Amoco Corp. 5,912
.9
Motorola, Inc. 5,788
.8
Hercules, Inc. 5,769
.8
Philip Morris Co., Inc. 5,750
.8
Caterpillar, Inc. 5,512
.8
General Electric Co. 5,100
.7
$538,619
76.8%
</TABLE>
GROWTH INVESTORS PORTFOLIO
<TABLE>
<CAPTION>
COMPANY U.S. $ VALUE
PERCENT OF NET ASSETS
---------- ------------
---------------------
<S> <C>
<C>
Federal Farm Credit Bank $69,756
21.8%
U.S. Treasury Bond 38,262
11.9
Amoco Corp. 11,825
3.7
Motorola, Inc. 11,575
3.6
Philip Morris Cos., Inc. 11,500
3.6
Caterpillar, Inc. 11,025
3.4
Aluminum Co. of America 8,662
2.7
Citicorp 8,275
2.6
First Financial Management Corp. 6,162
1.9
Enron Corp. 6,100
1.9
$183,142
57.1%
</TABLE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
INTERNATIONAL PORTFOLIO
INDUSTRY DIVERSIFICATION
DECEMBER 31, 1994
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S. $ VALUE
PERCENT OF NET ASSETS
------------
----------------------
<S> <C> <C>
Basic Industries $1,047,089
14.4%
Capital Goods 369,805
5.1
Consumer Manufacturing 689,761
9.5
Consumer Services 955,713
13.1
Consumer Staples 550,004
7.6
Energy 259,641 3.6
Financial Services 1,611,383
22.1
Healthcare 272,951 3.8
Multi-Industry 246,740
3.4
Technology 241,215
3.3
Transportation 103,821
1.4
Utilities 596,896 8.2
Time Deposit 658,000
9.0
Total Investments 7,603,019
104.5
Cash and receivables, net of liabilities (326,631)
(4.5)
Net Assets $7,276,388
100.0%
</TABLE>
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
PREMIER GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1994
-------------------------------------------------------------------------------
SHARES U.S.$ VALUE
------ -----------
COMMON STOCKS AND
OTHER INVESTMENTS - 94.8%
BASIC INDUSTRIES - 5.9%
CHEMICALS - 2.1%
Hercules, Inc....................... 2,500 $ 288,437
Monsanto Co......................... 4,400 310,200
Morton International, Inc........... 6,500 185,250
------------
783,887
------------
METALS & MINING - 2.9%
Bethlehem Steel, Corp.* 41,000 738,000
LTV Corp.* 9,500 154,375
USX-United States Steel Group 6,200 220,100
------------
1,112,475
------------
PAPER & FOREST PRODUCTS - 0.9%
Georgia-Pacific Corp. 4,800 343,200
------------
2,239,562
------------
CAPITAL GOODS - 1.9%
ELECTRICAL EQUIPMENT - 1.9%
Caterpillar, Inc. 6,800 374,850
Deere & Co. 2,000 132,500
General Electric Co. 4,000 204,000
------------
711,350
------------
CONSUMER
MANUFACTURING - 8.6%
AUTO & RELATED - 8.6%
Chrysler Corp. 28,200 1,381,800
Ford Motor Co. 16,800 470,400
General Motors Corp. 24,500 1,035,125
Goodyear Tire & Rubber Co. 10,600 356,425
------------
3,243,750
------------
CONSUMER SERVICES - 24.5%
AIRLINES - 4.2%
AMR Corp.* 6,400 340,800
Southwest Airlines Co. 27,700 463,975
UAL Corp.* 8,900 777,638
------------
1,582,413
------------
BROADCASTING & CABLE - 8.4%
AirTouch Communications, Inc.* 21,400 623,275
Comcast Corp. Cl.A SPL 39,000 611,812
Tele-Communications, Inc. Cl.A* 45,300 988,106
Viacom, Inc. Cl.A 1,448 60,273
Cl. B 20,168 819,325
rights 50,700 57,038
------------
3,159,829
------------
ENTERTAINMENT & LEISURE - 4.2%
Mirage Resorts, Inc.* 14,950 306,475
Time Warner, Inc. 13,700 481,212
Walt Disney Co. 17,800 821,025
------------
1,608,712
------------
RESTAURANTS & LODGING - 1.0%
McDonald's Corp. 13,000 $ 380,250
------------
RETAILING - 6.7%
Best Buy Co., Inc.* 12,800 400,000
Home Depot, Inc. 16,133 742,118
Kohls Corp.* 6,300 250,425
May Department Stores Co. 12,800 432,000
Wal-Mart Stores, Inc. 32,400 688,500
------------
2,513,043
------------
9,244,247
------------
CONSUMER STAPLES - 1.7%
TOBACCO - 1.7%
Philip Morris Cos., Inc............. 11,400 655,500
------------
FINANCE - 21.8%
BANKING & CREDIT - 8.9%
Chemical Banking Corp............... 7,000 251,125
Citicorp............................ 15,200 628,900
First Bank System, Inc.............. 13,300 442,225
NationsBank Corp.................... 12,100 546,012
Norwest Corp........................ 64,400 1,505,350
------------
3,373,612
------------
BROKERAGE & MONEY
MANAGEMENT - 6.0%
Merrill Lynch & Co., Inc............ 47,200 1,687,400
Morgan Stanley Group, Inc........... 9,500 560,500
------------
2,247,900
------------
INSURANCE - 2.2%
Progressive Corp.................... 7,600 266,000
Travelers, Inc...................... 17,055 554,288
------------
820,288
------------
MORTGAGE BANKING - 4.0%
Federal National Mortgage Assn...... 20,800 1,515,800
------------
OTHER - 0.7%
MBNA Corp........................... 10,800 252,450
------------
8,210,050
------------
HEALTH CARE - 6.6%
HOSPITAL SERVICES - 6.6%
Columbia HCA Healthcare Corp........ 12,000 438,000
United Healthcare Corp.............. 38,500 1,737,312
U.S. Healthcare, Inc................ 7,500 308,438
------------
2,483,750
------------
TECHNOLOGY - 19.9%
COMMUNICATIONS EQUIPMENT - 7.2%
Cisco Systems, Inc.*................ 15,800 553,988
General Instrument Corp.*........... 11,200 336,000
Motorola, Inc....................... 31,200 1,805,700
------------
2,695,688
------------
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
PREMIER GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONT'D)
-------------------------------------------------------------------------------
SHARES U.S.$ VALUE
------ -----------
COMPUTER HARDWARE - 3.1%
Compaq Computer Corp.*.............. 29,900 $ 1,181,050
------------
COMPUTER SOFTWARE &
SERVICES - 2.4%
Microsoft Corp.* 10,500 643,125
Oracle System Corp.* 6,000 265,500
------------
908,625
------------
SEMI-CONDUCTORS &
RELATED - 7.2%
Intel Corp. 21,600 1,377,000
warrants expiring 3/14/98* 59,700 832,069
Texas Instruments, Inc. 6,500 486,687
------------
2,695,756
------------
7,481,119
------------
TRANSPORTATION - 2.7%
RAILROAD - 2.7%
Conrail, Inc. 15,600 787,800
Southern Pacific Rail Corp.* 12,000 217,500
1,005,300
UTILITIES - 1.2%
TELEPHONE - 1.2%
MCI Communications Corp. 24,200 446,188
------------
Total Common Stocks and
Other Investments
(cost $35,457,521) 35,720,816
------------
Principal
Amount
(000) U.S.$ VALUE
COMMERCIAL PAPER - 2.9%
American Express Co.
5.80%, 1/03/95
(amortized cost $1,104,644) $ 1,105 $ 1,104,644
------------
TIME DEPOSIT - 8.7%
State Street Bank and Trust Co.
5.4375%, 1/03/95
(amortized cost $3,260,000) 3,260 3,260,000
------------
TOTAL INVESTMENTS - 106.4%
(cost $39,822,165) 40,085,460
Other assets less liabilities - (6.4%) (2,416,366)
------------
NET ASSETS - 100.0% $37,669,094
============
-------------------------------------------------------------------------------
* Non-income producing security.
See Notes to Financial Statements.
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
GLOBAL BOND PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1994
-------------------------------------------------------------------------------
PRINCIPAL
AMOUNT
(000) U.S.$ VALUE
------ -----------
AUSTRIA - 4.7%
GOVERNMENT/AGENCY - 4.7%
Republic of Austria
7.625%, 10/18/04
(cost $347,327) ATS 3,800 $ 346,729
------------
DENMARK - 5.3%
GOVERNMENT/AGENCY - 5.3%
Kingdom of Denmark
8.00%, 5/15/03 (a) DKK 1,000 154,421
9.00%, 11/15/00 (a) 1,400 230,112
------------
Total Danish Securities
(cost $412,880) 384,533
------------
GERMANY - 14.9%
GOVERNMENT/AGENCY - 11.9%
Federal Republic of Germany
8.00%, 7/22/02 DEM 510 334,691
Kingdom of Belgium
6.25%, 10/06/03 (a) 520 300,987
Treuhandanstalt
6.625%, 7/09/03 (a) 380 228,902
------------
864,580
------------
MISCELLANEOUS - 3.0%
Baden Wurttemberg
6.00%, 5/10/99 360 220,340
------------
Total German Securities
(cost $1,100,317) 1,084,920
------------
IRELAND - 4.2%
GOVERNMENT/AGENCY - 4.2%
Republic of Ireland
6.25%, 10/18/04
(cost $307,619) IEP 240 306,860
------------
ITALY - 5.5%
GOVERNMENT/AGENCY - 3.0%
Republic of Italy
12.00%, 9/01/01 (a) LIRA 360,000 222,051
------------
CORPORATE OBLIGATIONS - 2.5%
Nordic Investment Bank
11.30%, 3/04/02 (a) 300,000 183,423
------------
Total Italian Securities
(cost $425,345) $ 405,474
------------
JAPAN - 27.0%
CORPORATE OBLIGATIONS - 14.0%
Asian Development Bank
5.00%, 2/05/03 JPY 28,000 288,153
European Investment Bank
4.625%, 2/26/03 38,000 382,003
International Bank for
Reconstruction & Development
4.50%, 3/20/03 35,000 350,088
------------
1,020,244
------------
GOVERNMENT/AGENCY - 13.0%
Japan Development Bank
6.50%, 9/20/01 60,000 671,310
Republic of Austria
6.25%, 10/16/03 25,000 279,556
------------
950,866
------------
Total Japanese Securities
(cost $1,948,277) 1,971,110
------------
UNITED KINGDOM - 4.3%
CORPORATE OBLIGATIONS - 4.3%
British Telecommunications, Plc
7.125%, 9/15/03
(cost $322,073) GBP 225 311,791
------------
UNITED STATES - 31.7%
GOVERNMENT/AGENCY - 28.8%
United States Treasury Notes
5.125%, 3/31/96 US$ 650 631,820
6.375%, 8/15/02 500 457,810
8.25%, 7/15/98 1,000 1,012,340
------------
2,101,970
------------
TIME DEPOSIT - 2.9%
State Street Bank and Trust Co.
5.4375%, 1/04/95 212 212,000
------------
Total United States Securities
(amortized cost $2,382,621) 2,313,970
------------
TOTAL INVESTMENTS - 97.6%
(cost $7,246,459) 7,125,387
Other assets less liabilities - 2.4% 172,682
------------
NET ASSETS - 100.0%.......... $ 7,298,069
============
-------------------------------------------------------------------------------
(a) Securities segregated to collateralize forward exchange currency contracts
with an aggregate market value of approximately $1,319,896.
See Notes to Financial Statements.
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
GROWTH AND INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1994
-------------------------------------------------------------------------------
SHARES U.S.$ VALUE
------ -----------
COMMON AND PREFERRED STOCKS - 82.4%
BASIC INDUSTRIES - 4.7%
CHEMICALS - 2.9%
Lubrizol Corp....................... 8,000 $ 271,000
Monsanto Co......................... 7,000 493,500
Rohm & Haas Co...................... 8,000 457,000
------------
1,221,500
------------
METALS & MINING - 0.7%
Alcan Aluminum Ltd. 12,000 304,500
------------
PAPER & FOREST PRODUCTS - 1.1%
International Paper Co. 6,000 452,250
------------
1,978,250
------------
CAPITAL GOODS - 5.7%
ELECTRICAL EQUIPMENT - 3.5%
Emerson Electric Co. 7,000 437,500
General Electric Co. 20,000 1,020,000
------------
1,457,500
------------
MACHINERY - 2.2%
Allied-Signal, Inc. 14,000 476,000
Coltec Industries, Inc.* 26,100 446,962
------------
922,962
------------
2,380,462
------------
CONSUMER
MANUFACTURING - 2.8%
AUTO & RELATED - 2.8%
General Motors Corp. 10,000 422,500
cv. pfd. Series C 5,000 286,875
Magna International, Inc. Cl.A 12,000 460,500
------------
1,169,875
------------
CONSUMER SERVICES - 12.0%
BROADCASTING & CABLE - 3.2%
Comcast Corp. Cl.A SPL 37,200 583,575
Viacom, Inc. Cl. B* 8,486 344,744
rights* 14,000 15,750
Vodafone Plc (ADR) 12,200 410,225
------------
1,354,294
------------
ENTERTAINMENT & LEISURE - 2.8%
Eastman Kodak Co. 7,000 334,250
Walt Disney Co. 18,000 830,250
------------
1,164,500
------------
PRINTING & PUBLISHING - 0.3%
American Greetings Corp. Cl.A 4,000 107,750
------------
RETAILING - 5.7%
Federated Department Stores, Inc.* 15,500 298,375
Gap, Inc. 10,000 305,000
Kohls Corp.* 10,000 397,500
May Department Stores Co. 18,000 607,500
Toys R Us, Inc.* 14,000 427,000
Wal-Mart Stores, Inc. 16,000 340,000
------------
2,375,375
------------
5,001,919
------------
CONSUMER STAPLES - 10.4%
CONSUMER PRODUCTS &
SERVICES - 1.9%
Perrigo Co.* 12,000 $ 149,250
Procter and Gamble Co. 10,000 620,000
------------
769,250
------------
COSMETICS - 3.1%
Avon Products, Inc 6,000 358,500
Colgate-Palmolive Co 6,400 405,600
Gillette Co 7,000 523,250
------------
1,287,350
------------
FOOD - 2.3%
Campbell Soup Co 12,000 529,500
Heinz (HJ) Co 12,000 441,000
------------
970,500
------------
TOBACCO - 3.1%
Philip Morris Cos., Inc 22,600 1,299,500
------------
4,326,600
------------
ENERGY - 10.4%
DOMESTIC PRODUCERS - 2.2%
Apache Corp 14,000 350,000
Renaissance Energy Ltd.* 18,000 348,054
Snyder Oil Corp. 5,000 74,375
4.00% cv. pfd 2,000 164,012
------------
936,441
------------
INTERNATIONAL
PRODUCERS - 3.2%
YPF Sociedad Anonima (ADR) 62,000 1,325,250
------------
OIL & GAS SERVICES - 3.2%
Repsol S.A. (ADR) 14,800 403,300
Western Atlas, Inc.* 24,900 936,862
------------
1,340,162
------------
PIPELINES - 1.8%
Enron Corp 24,000 732,000
------------
4,333,853
------------
FINANCE - 11.1%
BANKING & CREDIT - 2.9%
BankAmerica Corp 9,000 355,500
First Bank Systems, Inc. pfd 12,000 399,000
cv. pfd. $3.56 Series 91-A 3,000 179,250
First Interstate Bancorp 4,000 270,500
------------
1,204,250
------------
BROKERAGE & MONEY
MANAGEMENT - 1.0%
Merrill Lynch & Co., Inc 12,000 429,000
------------
INSURANCE - 4.1%
American International Group, Inc 8,000 784,000
Travelers, Inc 28,000 910,000
------------
1,694,000
------------
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
GROWTH AND INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONT'D)
-------------------------------------------------------------------------------
SHARES U.S.$ VALUE
------ -----------
MORTGAGE BANKING - 0.9%
Federal National Mortgage Assn 5,000 $ 364,375
------------
REAL ESTATE - 1.9%
Avalon Property, Inc 12,000 276,000
Crescent Real Estate Equities 10,000 271,250
Spieker Properties, Inc 12,000 244,500
------------
791,750
------------
OTHER - 0.3%
American Express Co. 5,000 147,500
------------
4,630,875
------------
HEALTH CARE - 12.2%
DRUGS - 11.2%
AB Astra (ADR) 16,400 423,561
AB Astra Series A 5,000 129,195
AB Astra Series B 15,000 382,540
Abbott Laboratories, Inc. 19,000 619,875
Columbia HCA Healthcare Corp. 21,300 777,450
Health Care Property Investors,
Inc. 13,100 394,638
Merck & Co., Inc. 14,000 533,750
Pfizer, Inc. 5,200 401,700
Schering-Plough Corp. 7,000 518,000
United Healthcare Corp. 11,000 496,375
------------
4,677,084
------------
MEDICAL SERVICES - 1.0%
Meditrust 13,300 402,325
------------
5,079,409
------------
MULTI INDUSTRY
COMPANIES - 0.9%
ITT Corp. 4,000 354,500
------------
TRANSPORTATION - 1.9%
RAILROAD - 1.9%
Conrail, Inc. 11,000 555,500
Southern Pacific Rail Corp.* 14,000 253,750
------------
809,250
------------
TECHNOLOGY - 4.5%
COMMUNICATIONS
EQUIPMENT - 0.5%
General Instrument Corp. 7,000 210,000
------------
COMPUTER HARDWARE - 1.3%
Compaq Computer Corp.* 14,000 553,000
------------
COMPUTER SOFTWARE &
SERVICES - 0.7%
Informix Corp.* 9,000 288,563
------------
SHARES OR
PRINCIPAL
AMOUNT
(000) U.S.$ VALUE
------ -----------
SEMI-CONDUCTORS &
RELATED - 2.0%
Intel Corp. 12,600 $ 803,250
------------
1,854,813
------------
UTILITIES - 5.8%
TELEPHONE - 5.8%
MCI Communications Corp. 28,000 516,250
Sprint Corp. 69,300 1,914,412
2,430,662
------------
Total Common and Preferred Stocks
(cost $34,465,621) 34,350,468
------------
CONVERTIBLE BONDS - 6.8% Comcast Corp.
3.375%, 9/09/05 $ 250 227,500
EMC Corp.
4.25%, 1/01/01 200 236,000
General Instrument Corp.
5.00%, 6/15/00 550 741,812
IRT Property Co.
7.30%, 8/15/03 200 184,000
Legg Mason, Inc.
7.00%, 6/15/11 100 105,000
Liberty Property Ltd. Partnership
8.00%, 7/01/01 200 187,500
Motorola Inc.
Zero Coupon, 9/27/13 1,100 781,000
Wendy's International, Inc.
7.00%, 4/01/06 300 376,500
------------
Total Convertible Bonds
(cost $2,862,685) 2,839,312
------------
U.S. GOVERNMENT
OBLIGATIONS- 10.8%
Federal Home Loan Mortgage Corp.
5.75%, 1/03/95 4,200 4,198,659
5.75%, 1/05/95 300 299,808
------------
Total U.S. Government Obligations
(amortized cost $4,498,467) 4,498,467
------------
TOTAL INVESTMENTS - 100.0%
(cost $41,826,773) 41,688,247
Other assets less liabilities - 0.0% 13,624
------------
NET ASSETS - 100.0% $ 41,701,871
============
-------------------------------------------------------------------------------
* Non-income producing security.
See Glossary of Terms on page 37.
See Notes to Financial Statements.
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
SHORT-TERM MULTI-MARKET PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1994
-------------------------------------------------------------------------------
PRINCIPAL
AMOUNT
(000) U.S.$ VALUE
------ -----------
AUSTRALIA - 4.5%
GOVERNMENT/AGENCY - 4.5%
New South Wales Treasury
12.10%, 4/01/95 (a) AU$ 300 $ 234,305
Queensland Treasury
5.125%, 1/15/97 (b) 1,000 706,809
------------
Total Australian Securities
(cost $931,168) 941,114
------------
CANADA - 1.2%
GOVERNMENT/AGENCY - 1.2%
Canadian Treasury Bill
Zero Coupon, 6/29/95 (a)
(cost $260,699) CA$ 375 257,645
------------
ITALY - 2.9%
GOVERNMENT/AGENCY - 2.9%
Republic of Italy
8.50%, 8/01/97 (a)
(cost $618,900) LIRA 1,045,000 597,769
------------
MEXICO - 6.5%
GOVERNMENT/AGENCY - 6.5%
Mexican Treasury Bills
Zero Coupon, 6/08/95 (a) MXP 2,368 420,297
Zero Coupon, 11/30/95 (a) 4,360 733,478
9.214%, 2/16/95 (a) 1,110 214,766
------------
Total Mexican Securities
(cost $2,114,276) 1,368,541
---------
NEW ZEALAND - 7.3%
GOVERNMENT/AGENCY - 7.3%
New Zealand Treasury Bond
8.00%, 11/15/95 (a)
(cost $1,442,245) NZ$ 2,400 1,516,881
------------
SPAIN - 2.4%
GOVERNMENT/AGENCY - 2.4%
Government of Spain
9.00%, 2/28/97 (a)
(cost $521,493) ESP 70,000 511,073
------------
UNITED KINGDOM - 2.3%
GOVERNMENT/AGENCY - 2.3%
U.K. Treasury
8.75%, 9/01/97 (a)
(cost $468,894) GBP 300 $ 473,541
------------
UNITED STATES - 73.7%
DEBT OBLIGATIONS - 16.5%
Teso Bonos
Zero Coupon, 5/04/95 US$ 685 640,544
Zero Coupon, 6/01/95 1,045 963,072
Zero Coupon, 7/13/95 1,000 902,200
Zero Coupon, 11/16/95 1,100 947,760
------------
3,453,576
------------
BANK OBLIGATIONS - 13.5%
Bankers Trust
Zero Coupon, 2/10/95 (b) 1,500 1,230,600
Bayerische Landesbank
Zero Coupon, 4/12/95 1,000 770,000
Morgan Guaranty Trust
Company Nassau
Zero Coupon, 1/19/95 1,000 831,000
------------
2,831,600
------------
TIME DEPOSIT - 43.7%
State Street Bank and Trust Co.
5.4375%, 1/03/95 9,133 9,133,000
------------
Total United States Securities
(cost $16,253,390) 15,418,176
------------
TOTAL INVESTMENTS - 100.8%
(cost $22,611,065) 21,084,740
Other assets less liabilities - (0.8%) (163,881)
------------
NET ASSETS - 100.0% $20,920,859
===========
-------------------------------------------------------------------------------
(a) Securities segregated to collateralize forward exchange currency contracts
with an aggregate market value of approximately $4,959,755.
(b) 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 December 31,
1994, the aggregate market value of these securities amounted to $1,937,029
or 9.3% of net assets.
See Notes to Financial Statements.
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
U.S. GOVERNMENT/HIGH GRADE SECURITIES PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1994
-------------------------------------------------------------------------------
PRINCIPAL
AMOUNT
(000) U.S.$ VALUE
------ -----------
PREFERRED STOCK - 0.9%
FINANCE - 0.9%
Banesto Holdings Ltd. cv. pfd.
Series A 10.50% (a)
(cost $49,725)................... 1,800 $ 45,225
------------
CORPORATE OBLIGATIONS - 12.9%
FINANCE - 8.6% BankAmerica Corp.
7.20%, 4/15/06 $ 100 88,791
Chemical Banking Corp.
7.875%, 7/15/06 100 94,000
General Motors Acceptance Corp.
7.125%, 6/01/99 200 188,570
Wachovia Corp.
6.375%, 4/15/03 75 65,625
------------
436,986
------------
ASSET BACKED - 4.3%
MBNA Master Credit Card Trust
5.40%, 9/15/00 100 91,125
Navistar Finance
6.40%, 1/15/20 131 128,179
------------
219,304
------------
Total Corporate Obligations
(cost $687,750) 656,290
------------
U.S. GOVERNMENT
OBLIGATIONS- 67.0%
U.S. TREASURY SECURITIES - 35.6%
U.S. Treasury Bond
7.50%, 11/15/24 50 47,828
U.S. Treasury Notes
6.375%, 1/15/00 400 376,124
6.75%, 5/31/99 650 623,292
7.25%, 8/15/04 410 393,534
7.75%, 3/31/96 350 351,204
U.S. Treasury Strip
Zero Coupon, 2/15/13 100 23,810
------------
1,815,792
------------
FEDERAL AGENCY - MORTGAGES - 18.2%
Federal Home Loan Mortgage Corp./
Government National Mortgage Assn.
4.75%, 7/25/11 $ 400 $ 365,248
Federal National Mortgage Assn.
6.05%, 1/12/98 100 94,687
6.85%, 4/05/04 100 91,156
Government National Mortgage Assn.
7.00%, 7/15/23 93 83,663
8.00%, 1/15/24 146 139,800
9.00%, 9/15/24 153 154,098
------------
928,652
------------
FEDERAL AGENCY - 13.2%
AID - Israel
8.00%, 11/15/01 200 199,194
Federal Home Loan Bank
7.26%, 9/06/01 300 290,061
Federal Home Loan Mortgage Corp.
6.13%, 8/19/99 200 185,500
------------
674,755
------------
Total U.S. Government Obligations
(cost $3,580,257) 3,419,199
------------
TIME DEPOSIT - 14.9%
State Street Bank and Trust Co.
5.4375%, 1/03/95
(amortized cost $761,000) 761 761,000
------------
TOTAL INVESTMENTS -95.7%
(cost $5,078,732) 4,881,714
Other assets less liabilities - 4.3% 219,570
------------
NET ASSETS - 100.0% $ 5,101,284
============
-------------------------------------------------------------------------------
(a) 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 December 31,
1994, the aggregate market value of these securities amounted to $45,225 or
0.9% of net assets.
See Notes to Financial Statements.
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
TOTAL RETURN PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1994
-------------------------------------------------------------------------------
SHARES U.S.$ VALUE
------ -----------
COMMON STOCKS - 41.2%
BASIC INDUSTRIES - 3.0%
CHEMICALS - 2.6%
Lubrizol Corp. 120 $ 4,065
Monsanto Co. 100 7,050
Rohm & Haas Co. 100 5,712
Union Carbide Corp. 100 2,938
------------
19,765
------------
METALS & MINING - 0.4%
Bethlehem Steel, Corp.* 150 2,700
------------
22,465
------------
CAPITAL GOODS - 3.8%
ELECTRICAL EQUIPMENT - 2.2%
General Electric Co. 320 16,320
------------
MACHINERY - 1.6%
Allied-Signal, Inc. 200 6,800
Coltec Industries, Inc.* 130 2,226
Paccar, Inc. 70 3,080
------------
12,106
------------
28,426
------------
CONSUMER
MANUFACTURING - 2.4%
AUTO & RELATED - 1.8%
Chrysler Corp. 90 4,410
General Motors Corp. 70 2,958
Magna International, Inc. 150 5,756
------------
13,124
------------
OTHER - 0.6%
Eastman Kodak Co. 100 4,775
------------
17,899
------------
CONSUMER SERVICES - 6.5%
BROADCASTING & CABLE - 1.2%
Comcast Corp. Cl.A SPL 200 3,138
Tele-Communications, Inc. Cl.A 100 2,181
Viacom, Inc. Cl.B 100 4,062
------------
9,381
------------
ENTERTAINMENT & LEISURE - 1.4%
Walt Disney Co. 220 10,148
------------
RESTAURANTS & LODGING - 1.2%
McDonald's Corp. 220 6,435
Wendy's International, Inc. 190 2,731
------------
9,166
------------
RETAILING - 2.7%
Federated Department Stores Inc. 350 6,737
Kohls Corp.* 100 3,975
May Department Stores Co. 100 3,375
Toys R Us, Inc.* 200 $ 6,100
------------
20,187
------------
48,882
------------
CONSUMER STAPLES - 3.9%
COSMETICS - 0.6%
Gillette Co. 60 4,485
------------
HOUSEHOLD PRODUCTS - 1.9%
Colgate-Palmolive Co. 70 4,436
Procter & Gamble Co. 90 5,580
Scott Paper Co. 60 4,148
------------
14,164
------------
TOBACCO - 1.4%
Philip Morris Cos., Inc. 180 10,350
------------
28,999
------------
ENERGY - 4.0%
DOMESTIC PRODUCERS - 0.6%
Snyder Oil Corp. 300 4,463
------------
INTERNATIONAL PRODUCERS - 1.3%
Chevron Corp. 220 9,817
------------
OIL & GAS SERVICES - 0.7%
Western Atlas, Inc.* 140 5,268
------------
PIPELINES - 1.4%
Enron Corp. 350 10,675
------------
30,223
------------
FINANCE - 7.0%
BANKING & CREDIT - 2.3%
Citicorp 70 2,896
Fleet Financial Group, Inc. 100 3,250
MBNA Corp. 150 3,506
NationsBank Corp. 110 4,964
Norwest Corp. 120 2,805
------------
17,421
------------
BROKERAGE & MONEY
MANAGEMENT - 0.5%
Morgan Stanley Group, Inc. 60 3,540
------------
INSURANCE - 2.8%
American International Group, Inc. 100 9,800
MGIC Investment Corp. 150 4,969
Travelers, Inc. 200 6,500
------------
21,269
------------
MORTGAGE BANKING - 1.4%
Federal National Mortgage Assn. 140 10,202
------------
52,432
------------
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
TOTAL RETURN PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONT'D)
-------------------------------------------------------------------------------
SHARES U.S.$ VALUE
------ -----------
HEALTH CARE - 4.1%
DRUGS - 1.8%
Merck & Co., Inc. 230 $ 8,769
Pfizer, Inc. 60 4,635
------------
13,404
------------
MEDICAL PRODUCTS - 0.5%
Abbott Laboratories, Inc. 130 4,241
------------
MEDICAL SERVICES - 1.8%
Columbia HCA Healthcare Corp. 140 5,110
Healthsource, Inc. 70 2,861
United Healthcare Corp. 80 3,610
Value Health, Inc. 50 1,863
------------
13,444
------------
31,089
------------
TECHNOLOGY - 2.5%
COMMUNICATIONS EQUIPMENT - 1.7%
General Instrument Corp. 170 5,100
Motorola, Inc. 130 7,524
------------
12,624
------------
COMPUTER HARDWARE - 0.5%
Sun Microsystems, Inc.* 100 3,544
------------
SEMI-CONDUCTORS & RELATED - 0.3%
Intel Corp. 40 2,550
------------
18,718
------------
TRANSPORTATION - 1.0%
RAILROAD - 1.0%
Conrail, Inc. 80 4,040
Illinois Central Corp. 100 3,075
------------
7,115
------------
UTILITIES - 3.0%
ELECTRIC & GAS - 1.3%
NIPSCO Industries, Inc. 240 7,140
Peco Energy Co. 120 2,940
------------
10,080
------------
SHARES OR
PRINCIPAL
AMOUNT
(000) U.S.$ VALUE
TELEPHONE - 1.7%
MCI Communications Corp. 250 $ 4,609
Sprint Corp. 280 7,735
------------
12,344
------------
22,424
------------
Total Common Stocks
(cost $309,666) 308,672
------------
U.S. GOVERNMENT
OBLIGATIONS- 32.7%
U.S. Treasury Notes
4.25%, 5/15/96 $ 42 40,255
4.75%, 8/31/98 37 33,404
5.125%, 12/31/98 25 22,703
7.25%, 8/15/04 155 148,775
------------
Total U.S. Government Obligations
(cost $252,764) 245,137
------------
TIME DEPOSIT - 25.2%
State Street Bank and Trust Co.
5.4375%, 1/03/95
(amortized cost $189,000) 189 189,000
-------
TOTAL INVESTMENTS -99.1%
(cost $751,430) 742,809
Other assets less liabilities - 0.9% 7,091
------------
NET ASSETS - 100.0% $ 749,900
============
-------------------------------------------------------------------------------
* Non-income producing security.
See Notes to Financial Statements.
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
INTERNATIONAL PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1994
-------------------------------------------------------------------------------
SHARES U.S.$ VALUE
------ -----------
COMMON STOCKS AND OTHER
INVESTMENTS - 95.5%
ARGENTINA - 0.3%
Telecom Argentina S.A. Cl. B (b) 1,900 $ 9,309
YPF Sociedad Anonima (ADR) 600 12,825
------------
22,134
------------
AUSTRALIA - 2.7%
Australia and New Zealand
Banking Group 7,429 24,483
Boral Ltd. 8,638 22,774
Brambles Industries Ltd. 3,000 28,660
Broken Hill Proprietary Co. 3,651 55,433
Coca Cola Amatil Ltd. 3,492 22,204
Mayne Nickless Ltd. 7,891 40,385
------------
193,939
------------
BELGIUM - 0.9%
Arbed S.A.* 98 14,726
Kredietbank S.A. 243 50,953
------------
65,679
------------
CANADA - 0.2%
Alcan Aluminum Ltd. 1 31
Renaissance Energy Ltd.* (b) 600 11,548
------------
11,579
------------
DENMARK - 0.7%
Den Danske Bank 900 49,112
------------
FINLAND - 1.2%
Nokia AB Preferred 572 84,267
------------
FRANCE - 6.9%
Banque National De Paris 537 24,683
Bouygues 400 38,270
Coflexip Sponsored (ADR) 754 17,436
Compagnie De Saint Gobain 540 62,078
Compagnie Financiere De Paribas S.A. 766 50,914
Compagnie Generale Des Eaux 655 63,648
Group Danone 120 16,828
Pechiney International S.A. 500 33,702
Salomon S.A. 100 39,974
Societe Centrale Des Assurances
Generales De France 1,854 73,591
Total S.A. (ADR) 1,217 35,902
Total S.A. Cl. B 600 34,847
Union Du Credit Bail Immobil 125 11,421
------------
503,294
------------
GERMANY - 6.6%
Basf AG 400 82,468
Bayer AG 238 55,749
Bayerische Motoren Werke AG 72 35,589
Deutsche Bank AG 178 $ 82,700
KSB AG - Vorzug Preferred 20 4,194
Lufthansa AG* 562 70,717
PWA - Papierwerke Waldhof -
Aschaffenburg AG* 205 31,483
Suedzucker AG 81 40,508
Veba AG 218 75,963
------------
479,371
------------
GHANA - 0.2%
Ashanti Goldfields (ADR)* (b) 140 3,027
Ashanti Goldfields (GDS)* (b) 475 10,094
------------
13,121
------------
HONG KONG - 2.5%
Hong Kong and China Gas Co. Ltd.
warrants expiring 12/31/95 200 323
Hong Kong Land Holdings Ltd. 13,000 25,370
Hutchison Whampoa 9,000 36,407
Jardine Strategic Holdings Ltd. 10,000 32,827
Sun Hung Kai Properties Ltd. 8,000 47,767
Television Broadcasts of
Hong Kong Ltd. 10,000 39,936
------------
182,630
------------
INDIA - 0.5%
Bajaj Auto Ltd. (GDR)* 230 5,520
Hindalco Industries Ltd. (GDR)* 450 15,300
Reliance Industries Ltd.* (b) 350 7,699
rights * (b) 420 8,316
------------
36,835
------------
INDONESIA - 0.5%
Astra International 9,000 17,197
Indocement Tunggal Prakarsa 4,000 11,511
Indosat* 1,500 5,374
Idr500 (alien Mkt)* 1,000 3,583
------------
37,665
------------
ITALY - 1.9%
Burgo (Cartiere) Spa* 5,600 37,132
La Rinascente Spa 6,855 38,561
Societa Italiana Per L'Eserreizio
Delle Telecommunicazioni, P.A. 23,140 60,232
------------
135,925
------------
JAPAN - 39.7%
Asahi Bank Ltd. 8,000 93,173
Asahi Glass Co. Ltd. 8,000 98,795
Bank of Tokyo 8,000 123,695
Canon, Inc. 4,000 67,871
Dai Ichi Kangyo Bank 4,000 75,502
Dai Nippon Printing Co. Ltd. 2,000 34,137
Daiwa Securities Co. Ltd. 3,000 43,373
DDI Corp. 6 51,807
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
INTERNATIONAL PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONT'D)
-------------------------------------------------------------------------------
SHARES U.S.$ VALUE
------ -----------
East Japan Railway Co. 7 $ 35,000
Fuji Photo Film Co. (ORD) 3,000 69,578
Hankyu Department Stores 5,000 64,257
Hitachi Metals Ltd. 8,000 97,992
Ito - Yokado Co. Ltd. (ADR) 225 48,037
Kajima Corp. 1,000 8,574
Kao Corp. 2,000 22,691
Komatsu Co. Ltd. 4,000 36,145
Kuraray Co. Ltd. 5,000 59,237
Long-Term Credit Bank of Japan 6,000 65,663
Matsushita Electric Works (a) 7,000 71,687
Mitsubishi Chemical 13,200 72,626
Mitsubishi Electric Corp. 10,000 70,984
Mitsubishi Heavy Industries Ltd. 4,000 30,522
NEC Corp. 7,000 80,120
Nippondenso Co. Ltd. 4,000 84,337
Nippon Electric Glass Co. Ltd. 4,000 79,518
Nippon Express Co Ltd. 4,000 40,161
Nippon Paper Industries Co. 6,000 44,096
Nippon Steel Corp. 11,000 41,416
Nippon Telegraph and Telephone Corp. 7 61,918
Nomura Securities Ltd. (ADR) 226 46,890
NTN Corp. 10,000 75,000
Sakura Bank Ltd. 7,000 94,177
Sankyo Co. Ltd. 1,000 24,900
Santen Pharmaceutical Co. 2,000 55,622
Sanyo Electric Co. Ltd. 2,000 11,506
Seven Eleven Japan 1,000 80,422
Sony Corp. 2,000 113,454
Sumitomo Bank 6,000 114,458
Sumitomo Realty and Development 4,000 23,695
Taisho Pharmaceutical Co. 3,000 57,530
Takara Shuzo Co. 6,000 47,651
Tokio Marine and Fire Co. 8,000 97,992
Tokyo Electric Power 1,000 27,912
Tokyo Gas Cos. Ltd. 10,000 43,373
Toyota Corp. (a) 4,000 84,337
Ube Industries Ltd.* 9,000 34,789
Yamazaki Baking Co. Ltd. 4,000 80,321
------------
2,886,941
------------
MALAYSIA - 1.4%
Aokam Perdana Bhd 5,400 33,413
Development & Commercial Bank 7,000 15,626
Development & Commercial Bank,
Rights* 1,750 0
Resorts World Bhd 6,000 35,246
Technology Resources Industries Bhd 6,000 19,150
------------
103,435
------------
MEXICO - 0.6%
Grupo Financiero Bancomer S.A. (b) 16,100 $ 8,738
Grupo Situr S.A. Series BCP 7,503 15,383
Telefonos de Mexico S.A. Series L
(ADR) 557 22,837
------------
46,958
------------
NETHERLANDS - 4.7%
Amev N.V. 2,209 93,786
DSM N.V. 630 50,047
Elsevier N.V. 3,400 35,451
European Vinyls Corp. International
N.V.* 400 17,720
Heineken N.V. 526 79,087
Royal Ptt Nederland N.V. 1,050 35,385
VNU - Ver Ned Uitgevers Ver Bezit 321 33,322
------------
344,798
------------
NORWAY - 0.5%
Transocean AS* 4,700 38,921
------------
PHILIPPINES - 0.5%
Manila Electric Co. 2,300 31,578
Philippine Long Distance Telephone
Company (ADR) 105 5,788
------------
37,366
------------
SINGAPORE - 1.9%
Development Bank of Singapore 6,000 61,749
Keppel Corp. 7,000 59,554
Singapore Press Holdings Ltd. 1,000 18,182
------------
139,485
------------
SPAIN - 3.6%
Banco Intercontinental Espana 442 36,569
Centros Comerciale Continente S.A. 2,250 45,299
Gas Natural Sdg E 285 24,510
Iberdrola S.A. 3,495 21,561
Repsol S.A. 1,975 53,567
Tabacalera S.A. 1,200 32,091
Telefonica De Espana 3,945 46,606
------------
260,203
------------
SWEDEN - 2.8%
Astra AB 3,930 101,548
Hennes and Mauritz AB 280 14,357
Marieberg Tidnings AB 1,400 31,653
SKF AB Cl. A* 792 13,110
SKF AB Cl. B* 1,000 16,486
Stora Kopparbergs Series B 495 29,844
------------
206,998
------------
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
INTERNATIONAL PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONT'D)
-------------------------------------------------------------------------------
SHARES U.S.$ VALUE
------ -----------
SWITZERLAND - 2.0%
BBC Brown Boveri AG - Bearer 56 $ 48,214
BBC Brown Boveri AG - Regular 24 3,960
Nestle S.A. 96 91,453
------------
143,627
------------
UNITED KINGDOM - 12.7%
Argos Plc (a) 7,500 41,308
Barclays Plc 6,635 63,433
Barratt Development Plc 3,000 7,839
Bat Industries Plc 9,425 63,561
British Airways Plc 10,575 59,237
British Land Co. Plc 6,000 36,004
British Petroleum Co. Plc 5,720 38,083
Dixons Group Plc 21,600 64,215
Forte Plc (a) 24,350 91,822
General Electric Plc 6,637 28,662
Johnson Matthey Plc 7,100 60,657
Mowlem (John) & Co. Plc* 21,700 33,954
Royal Bank of Scotland Group 9,200 56,717
Smithkline Beecham Cl. A 4,700 33,351
Thorn EMI Plc 4,219 68,292
Unilever Plc (a) 2,960 53,610
Vodafone Group Plc 23,452 77,795
Wimpey (George) Plc (a) 20,905 42,196
------------
920,736
------------
Total Common Stocks and Other
Investments
(cost $7,026,388) 6,945,019
------------
TIME DEPOSIT - 9.0%
State Street Bank and Trust Co.
5.4375%, 1/03/95
(amortized cost $658,000) $ 658 $ 658,000
------------
TOTAL INVESTMENTS - 104.5%
(cost $7,684,388) 7,603,019
Other assets less liabilities - (4.5%) (326,631)
------------
NET ASSETS - 100.0% $ 7,276,388
============
-------------------------------------------------------------------------------
* Non-income producing security.
(a) Securities segregated to collateralize forward exchange currency contracts
with an aggregate market value of approximately $384,960.
(b) 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 December 31,
1994, the aggregate market value of these securities amounted to $58,731 or
0.8% of net assets.
See Glossary of Terms on page 37.
See Notes to Financial Statements.
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
MONEY MARKET PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1994
-------------------------------------------------------------------------------
PRINCIPAL
AMOUNT
(000) U.S.$ VALUE
------ -----------
U.S. GOVERNMENT AND
AGENCY OBLIGATIONS - 98.2%
Federal Farm Credit Bank
5.70%, 1/23/95 $ 810 $ 807,178
Federal Home Loan Bank
5.65%, 1/06/95 500 499,608
5.89%, 2/21/95 300 297,497
Federal Home Loan Mortgage Corp.
5.24%, 1/04/95 300 299,869
5.63%, 1/23/95 300 298,968
5.88%, 1/12/95 400 399,281
5.94%, 1/23/95 700 697,459
Federal National Mortgage Assn.
5.64%, 2/13/95 300 297,979
5.90%, 1/06/95 800 799,344
5.91%, 1/09/95 400 399,475
United States Treasury Bill
5.36%, 3/09/95 2,000 1,980,049
------------
Total U.S. Government and
Agency Obligations
(amortized cost $6,776,707) 6,776,707
------------
TOTAL INVESTMENTS -98.2%
(amortized cost $6,776,707) $ 6,776,707
Other assets less liabilities - 1.8% 121,588
------------
NET ASSETS - 100.0% $ 6,898,295
============
------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
GLOBAL DOLLAR GOVERNMENT PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1994
-------------------------------------------------------------------------------
PRINCIPAL
AMOUNT
(000) U.S.$ VALUE
------ -----------
SOVEREIGN DEBT OBLIGATIONS - 30.7%
COLLATERALIZED BRADY BONDS - 18.9%
ARGENTINA - 1.5%
Republic of Argentina
Euro Par Bond
4.25%, 3/31/23
(cost $20,856) $ 40 $ 16,950
------------
BULGARIA - 8.1%
National Republic of Bulgaria
Series A Disc.
6.0625%, 7/28/24
(cost $93,513) 200 93,500
------------
PHILIPPINE - 4.9%
Central Bank of Philippines
Par Bonds FRB
5.75%, 12/01/95
(cost $57,818) 90 55,800
------------
POLAND - 4.4%
Republic of Poland
Disc.
6.8125%, 10/27/24
(cost $51,110) 70 50,470
------------
Total Collateralized Brady Bonds
(cost $223,297) 216,720
------------
OTHER SOVEREIGN DEBT - 11.8%
ARGENTINA - 2.1%
Republic of Argentina
FRB
6.50%, 3/31/05
(cost $28,725) 38 24,320
------------
BRAZIL - 4.5%
Republic of Brazil
C-Bonds
8.00%, 4/15/14 41 19,635
Republic of Brazil
Series A IDU
6.0625%, 1/01/01 38 31,985
------------
Total Brazilian Securities
(cost $51,099) 51,620
------------
MEXICO - 0.8%
Desc Sociedad de Fomento
11.00%, 12/15/97
(cost $10,500) $ 10 $ 9,613
------------
TRINIDAD & TOBAGO - 4.3%
Republic of Trinidad & Tobago
11.75%, 10/03/04
(cost $49,692) 50 49,500
------------
Total Other Sovereign Debt Obligations
(cost $140,016) 135,053
------------
CORPORATE DEBT OBLIGATIONS - 18.5%
BROADCASTING - 3.2%
Paramount Communications, Inc.
8.25%, 8/01/22 3 2,483
Viacom, Inc.
8.00%, 7/07/06 40 34,300
------------
Total Broadcasting
(cost $35,377) 36,783
------------
ELECTRIC & GAS - 0.2%
DQU II Funding Corp.
8.70%, 6/01/16
(cost $2,873) 3 2,763
------------
FINANCIAL - 2.8%
Dine SA De CV
8.125%, 10/15/98
(cost $36,177) 40 31,700
------------
INDUSTRIAL - 3.8%
Hylsa SA De CV
11.00%, 2/23/98
(cost $49,888) 50 43,125
------------
TELEPHONE - 1.4%
Telefonica De Argentina
8.375%, 10/01/00
(cost $18,587) 20 16,100
------------
YANKEES - 7.1%
Centragas
10.65%, 12/01/10 (a) 50 47,625
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
GLOBAL DOLLAR GOVERNMENT PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONT'D)
-------------------------------------------------------------------------------
PRINCIPAL
AMOUNT
(000) U.S.$ VALUE
------ -----------
Grupo Mexicano De Desarrollo
8.25%, 2/17/01 $ 40 $ 24,750
Transportacion Maritima
Mexicana, S.A.
9.25%, 5/15/03 12 9,105
------------
Total Yankees
(cost $92,716) 81,480
------------
Total Corporate Debt Obligations
(cost $235,618) 211,951
------------
U.S. GOVERNMENT OBLIGATIONS - 41.4%
U.S. Treasury Notes
6.50%, 4/30/99 55 52,267
6.75%, 5/31/99 90 86,302
7.25%, 8/15/04 350 335,944
------------
Total U.S. Government Obligations
(cost $492,027) 474,513
------------
TIME DEPOSIT - 17.5%
State Street Bank and Trust Co.
5.4375%, 1/03/95
(amortized cost $201,000) $ 201 $ 201,000
------------
TOTAL INVESTMENTS - 108.1%
(cost $1,291,958) 1,239,237
Other assets less liabilities - (8.1%) (92,911)
------------
NET ASSETS - 100.0% $ 1,146,326
============
-------------------------------------------------------------------------------
(a) 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 December 31,
1994, the aggregate market value of these securities amounted to $47,625 or
4.2% of net assets.
See Notes to Financial Statements.
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
NORTH AMERICAN GOVERNMENT INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1994
-------------------------------------------------------------------------------
PRINCIPAL
AMOUNT
(000) U.S.$ VALUE
------ -----------
ARGENTINA - 15.9%
GOVERNMENT OBLIGATIONS - 15.9%
Bonos De Inversion y Creimiento
18.75%, 5/01/01 (FRN) ARS 78 $ 69,571
Republic of Argentina
Pensioner-Bocon Series I
3.50%, 4/01/01 (FRN) 319 135,307
3.50%, 4/01/07 (FRN) 1,517 406,085
------------
Total Argentina Securities
(cost $928,928). 610,963
------------
MEXICO - 18.4%
GOVERNMENT/AGENCY - 18.4%
Mexican Treasury Bills
Zero Coupon, 1/26/95 MXP 241 47,366
Zero Coupon, 2/16/95 500 96,637
Zero Coupon, 4/12/95 180 33,702
Zero Coupon, 4/20/95 650 121,221
Zero Coupon, 5/04/95 1,103 203,954
Zero Coupon, 10/19/95 1,129 203,736
------------
Total Mexican Securities
(cost $1,056,137) 706,616
------------
UNITED STATES - 64.7%
GOVERNMENT/AGENCY - 58.6%
Federal Home Loan Bank
7.26%, 9/06/01 US$ 200 193,374
Federal Home Loan Mortgage Corp.
6.13%, 8/19/99 US$ 150 $ 139,125
Federal National Mortgage Assn.
5.05%, 11/10/98 305 275,168
Government National Mortgage Assn.
9.00%, 9/15/24 204 205,464
U.S. Treasury Notes
6.50%, 4/30/99 185 175,808
6.75%, 5/31/99 320 306,851
7.25%, 8/15/04 1,000 959,840
------------
2,255,630
------------
TIME DEPOSIT - 6.1%
State Street Bank and Trust Co.
5.4375%, 1/03/95 236 236,000
------------
Total United States Securities
(cost $2,539,885) 2,491,630
------------
TOTAL INVESTMENTS - 99.0%
(cost $4,524,950) 3,809,209
------------
Other assets less liabilities - 1.0% 38,873
------------
NET ASSETS - 100.0% $ 3,848,082
============
-------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
UTILITY INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1994
-------------------------------------------------------------------------------
SHARES U.S.$ VALUE
------ -----------
COMMON AND PREFERRED STOCKS - 83.1%
UNITED STATES INVESTMENTS - 79.0%
ENERGY - 3.5%
OIL & GAS SERVICES - 1.8%
Western Atlas, Inc.* 600 $ 22,575
------------
PIPELINES - 1.7%
Enron Corp. 700 21,350
------------
43,925
------------
MULTI INDUSTRY COMPANIES - 5.9%
Cinergy Corp. 1,200 28,050
Penn Engineering Manufacturing
Corp. 1,100 46,338
------------
74,388
------------
PUBLIC UTILITIES - 69.1%
ELECTRIC & GAS - 59.6%
American Electric Power, Inc. 1,200 39,450
Baltimore Gas & Electric Co. 1,800 39,825
CMS Energy Corp. 950 21,731
Companhia Energetica De Minas
(ADR) (a) 400 9,455
Companhia Energetica De Sao Paulo
(ADR)* (a) 300 4,091
Compania Boliviana De Energia
Electrica S.A. (ADR) 200 4,550
Dominion Resources, Inc. 1,000 35,750
DPL, Inc. 1,500 30,750
Duke Power Co. 1,100 41,937
Eastern Utilities Assoc. 1,000 22,000
Empresa Nacional De Electricd (ADR) 100 4,050
Enersis S.A. (ADR) 100 2,775
Entergy Corp. 500 10,938
FPL Group, Inc. 1,100 38,637
Hawaiian Electric Industries, Inc. 800 25,900
IES Industries, Inc. 400 10,100
LG & E Energy Corp. 400 14,750
NIPSCO Industries, Inc. 900 26,775
Northeast Utilities 1,000 21,625
Oklahoma Gas & Electric Co. 600 19,875
Pacificorp 600 10,875
Peco Energy Capital LP
9.00% Series A pfd. 430 10,804
Peco Energy Co. 600 14,700
Pennsylvania Power & Light Co. 1,700 32,300
Portland General Corp. 1,200 23,100
Public Service Co. of Colorado 800 23,500
Public Service Company NM 2,600 33,800
Repsol SA, ADR 500 13,625
San Diego Gas & Electric Co. 2,000 38,500
Scecorp 400 5,850
Southern Co. 1,200 24,000
Texas Utilities Co. 900 $ 28,800
Unicom Corp. 1,000 24,000
Western Resources, Inc. 200 5,725
Wisconsin Energy Corp. 1,300 33,638
------------
748,181
------------
TELEPHONE - 9.5%
GTE Corp. 700 21,262
MCI Communications Corp. 1,000 18,437
Pacific Telesis Group 650 18,525
Philippine Long Distance
Telephone Co. (ADR) 100 5,513
Telecom Argentina Stet
France (ADR) (a) 200 10,350
Telecom Corp. of
New Zealand (ADR) 200 10,275
Telecomunicacoes Brasileras
S.A. (ADR) 100 4,475
Telefonica De Argentina (ADR) 100 5,300
Telefonos de Mexico, S.A.,
Series L (ADR) 600 24,600
------------
118,737
------------
866,918
------------
TECHNOLOGY - 0.5%
COMPUTER PERIPHERALS - 0.5%
Indonesian Satellite Corp. (ADR) 170 6,077
------------
Total United States Investments
(cost $1,014,037) 991,308
------------
FOREIGN INVESTMENTS - 4.1%
ARGENTINA - 1.8%
Central Costanera S.A. (a) 300 7,950
Central Puerta S.A. (a) 300 7,424
Transportadora De Gas Del Sur 3,800 7,143
------------
22,517
------------
CANADA - 1.2%
Renaissance Energy Ltd.* 800 15,469
------------
MALAYSIA - 0.3%
Tenaga Nasional 1,000 3,956
------------
PHILIPPINE - 0.8%
Manila Electric Co. 680 9,336
------------
Total Foreign Investments
(cost $60,987) 51,278
------------
Total Common and Preferred Stocks
(cost $1,075,024) 1,042,586
------------
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
UTILITY INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONT'D)
-------------------------------------------------------------------------------
PRINCIPAL
AMOUNT
(000) U.S.$ VALUE
------ -----------
CORPORATE BONDS - 3.9%
ELECTRIC & GAS - 3.9%
Gulf States Utilities Company
8.25%, 4/01/04 $ 25 $ 24,231
Texas Utilities Electric Co.
8.25%, 4/01/04 25 24,562
------------
Total Corporate Bonds
(cost $49,317) 48,793
------------
TOTAL INVESTMENTS - 87.0%
(cost $1,124,341) 1,091,379
Other assets less liabilities - 13.0% 162,870
------------
NET ASSETS - 100.0% $ 1,254,249
============
-------------------------------------------------------------------------------
* Non-income producing security.
(a) 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 December 31,
1994, the aggregate market value of these securities amounted to $39,270 or
3.1% of net assets.
See Notes to Financial Statements.
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1994
-------------------------------------------------------------------------------
SHARES U.S.$ VALUE
------ -----------
COMMON STOCKS - 89.0%
BASIC INDUSTRIES - 2.2%
CHEMICALS - 1.4%
NL Industries, Inc.* 6,000 $ 75,750
------------
METALS & MINING - 0.8%
Kaiser Aluminum Corp.* 2,000 21,750
National Steel Corp.* 1,500 21,750
------------
43,500
------------
119,250
------------
CAPITAL GOODS - 1.0%
MACHINERY - 1.0%
Caterpillar, Inc. 1,000 55,125
------------
CONSUMER
MANUFACTURING - 3.2%
AUTO & RELATED - 1.9%
Chrysler Corp. 2,100 102,900
------------
OTHER - 1.3%
Americredit Corp.* 12,000 72,000
------------
174,900
------------
CONSUMER SERVICES - 12.5%
BROADCASTING & CABLE - 5.2%
AirTouch Communications, Inc.* 2,900 84,463
Tele-Communications, Inc. Cl.A* 4,300 93,794
Viacom, Inc. Cl.A* 64 2,664
Cl.B* 2,484 100,912
------------
281,833
ENTERTAINMENT & LEISURE - 0.8%
Time Warner, Inc. 1,300 45,662
------------
PRINTING & PUBLISHING - 0.4%
Donnelley (R.R.) & Sons Co. 800 23,600
------------
RETAILING - 6.1%
Home Depot, Inc. 700 32,200
Sears, Roebuck & Co. 3,800 174,800
Sports Authority, Inc.* 6,000 126,000
------------
333,000
------------
684,095
------------
CONSUMER STAPLES - 5.0%
TOBACCO - 5.0%
Loews Corp. 2,300 199,813
Philip Morris Cos., Inc. 1,300 74,750
------------
274,563
------------
ENERGY - 4.8%
DOMESTIC PRODUCERS - 1.0%
Anadarko Petroleum Corp. 400 15,400
Apache Corp. 500 $ 12,500
Renaissance Energy Ltd.* 500 9,668
Seagull Energy Corp.* 1,000 19,125
------------
56,693
------------
INTERNATIONAL PRODUCERS - 0.6%
YPF Sociedad Anonima (ADR) 1,600 34,200
------------
OIL & GAS SERVICES - 2.6%
Baker Hughes, Inc. 2,000 36,500
Energy Service, Inc.* 1,000 12,250
Western Atlas, Inc.* 2,500 94,063
------------
142,813
------------
PIPELINES - 0.4%
Enron Corp. 500 15,250
Sonat Offshore Drilling, Inc. 200 3,550
------------
18,800
------------
OTHER - 0.2%
Enron Oil & Gas Co. 700 13,125
------------
265,631
------------
FINANCE - 24.5%
BANKING & CREDIT - 2.8%
Capital One Financial Corp.* 5,000 80,000
Citicorp. 1,000 41,375
World Acceptance Corp.* 1,500 35,062
------------
156,437
------------
INSURANCE - 11.6%
Acceptance Insurance Co. 3,000 45,000
American International Group, Inc. 1,200 117,600
CNA Financial Corp. 100 6,488
General Reinsurance Corp. 200 24,750
John Alden Financial Corp. 2,500 71,875
Penncorp Financial Group, Inc. 7,000 91,875
Travelers, Inc. 5,600 182,000
Twentieth Century Industries, Inc. 7,900 82,950
USF&G Corp. 1,100 14,987
------------
637,525
------------
MORTGAGE BANKING - 0.4%
Federal National Mortgage Assn. 300 21,863
------------
REAL ESTATE - 7.4%
Essex Property Trust 1,000 15,125
Evans Withycombe Residential 1,500 31,500
Gables Residential Trust 2,000 43,000
Highwoods Properties, Inc. 3,800 82,175
Macerich Co. 1,500 32,063
Manufactured Home Communities, Inc. 1,500 29,813
Saul Centers, Inc. 3,000 44,250
Summit Properties, Inc. 5,000 96,250
Weeks Corp. 1,500 32,812
------------
406,988
------------
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONT'D)
-------------------------------------------------------------------------------
SHARES U.S.$ VALUE
------ -----------
OTHER - 2.3%
Dean Witter, Discover & Co. 1,000 $ 33,875
Mercury Finance Co. 900 11,700
MGIC Investment Corp. 100 3,312
Student Loan Marketing Assn. 2,300 74,750
------------
123,637
------------
1,346,450
------------
HEALTH CARE - 8.2%
DRUGS - 4.9%
Healthsource, Inc.* 4,200 171,675
Lilly (Eli) & Co. 200 13,125
Merck & Co., Inc. 1,200 45,750
Pfizer, Inc. 500 38,625
------------
269,175
------------
MEDICAL PRODUCTS - 1.4%
SciMed Life Systems, Inc.* 1,500 75,844
------------
MEDICAL SERVICES - 1.5%
Abbott Laboratories, Inc. 1,000 32,625
United Healthcare Corp. 700 31,587
U.S. Healthcare, Inc. 400 16,450
------------
80,662
------------
OTHER - 0.4%
Guidant Corp.* 1,500 24,000
------------
449,681
------------
TECHNOLOGY - 23.7%
COMMUNICATIONS EQUIPMENT - 17.9%
Cisco Systems, Inc.* 6,500 227,906
DSC Communications Corp.* 1,800 64,913
EMC Corp.* 8,000 173,000
General Instrument Corp.* 3,600 108,000
Indonesian Satellite Corp. (ADR) 2,100 75,075
Millicom International
Cellular S.A.* 3,600 109,575
Motorola, Inc. 1,600 92,600
Ortel Corp.* 5,000 131,250
------------
982,319
------------
COMPUTER HARDWARE - 1.2%
Dell Computer Corp.* 1,200 49,125
Silicon Graphics, Inc.* 500 15,437
------------
64,562
------------
SHARES OR
PRINCIPAL
AMOUNT
(000)
COMPUTER SOFTWARE &
SERVICES - 0.8%
Aspen Technology, Inc.* 200 $ 3,887
Epic Design Technology, Inc.* 300 6,675
Shiva Corp.* 800 31,900
------------
42,462
------------
SEMI-CONDUCTORS &
RELATED - 2.7%
Intel Corp. 2,300 146,625
------------
TRUCKING - 0.2%
Knight Transportation, Inc.* 1,000 14,375
------------
OTHER - 0.9%
Covenant Transport, Inc.* 200 3,950
PRI Automation, Inc.* 400 6,450
Security Dynamics Technology, Inc.* 1,500 27,844
Videonics, Inc.* 1,000 12,500
------------
50,744
------------
1,301,087
------------
UTILITIES - 3.9%
TELEPHONE - 3.9%
Rogers Cantel Mobile Communications,
Inc. Cl.B* 5,300 155,025
Sprint Corp. 1,200 33,150
Telephone & Data Systems, Inc. 600 27,675
------------
215,850
------------
Total Common Stocks
(cost $4,680,726) 4,886,632
------------
SHORT-TERM INVESTMENTS - 10.9%
U.S. GOVERNMENT
OBLIGATIONS - 10.9%
Federal Home Loan Bank
5.65%, 1/05/95
(amortized cost $599,623) $ 600 599,623
------------
TOTAL INVESTMENTS - 99.9%
(cost $5,280,349) 5,486,255
Other assets less liabilities - 0.1% 5,509
------------
NET ASSETS - 100.0% $ 5,491,764
============
-------------------------------------------------------------------------------
* Non-income producing security.
See Notes to Financial Statements.
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
WORLDWIDE PRIVATIZATION PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1994
-------------------------------------------------------------------------------
PRINCIPAL
AMOUNT
(000) U.S.$ VALUE
------ -----------
UNITED STATES - 100.4%
TIME DEPOSIT - 100.4%
State Street Bank and Trust Co.
5.4375%, 1/03/95
(amortized cost $1,132,000) $1,132 $ 1,132,000
------------
TOTAL INVESTMENTS - 100.4%
(cost $1,132,000) 1,132,000
Other assets less liabilities - (0.4%) (4,938)
------------
NET ASSETS - 100.0% $ 1,127,062
===========
-------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
CONSERVATIVE INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1994
-------------------------------------------------------------------------------
SHARES U.S.$ VALUE
------ -----------
COMMON STOCKS - 9.7%
BASIC INDUSTRIES - 1.4%
CHEMICALS - 0.8%
Hercules, Inc. 50 $ 5,769
------------
METALS & MINING - 0.6%
Aluminum Co. of America 50 4,331
------------
10,100
------------
CAPITAL GOODS - 1.5%
ELECTRICAL EQUIPMENT - 0.7%
General Electric Co. 100 5,100
------------
MACHINERY - 0.8%
Caterpillar, Inc. 100 5,512
------------
10,612
------------
CONSUMER
MANUFACTURING - 0.7%
AUTO & RELATED - 0.7%
Chrysler Corp. 100 4,900
------------
CONSUMER SERVICES - 0.6%
BROADCASTING & CABLE - 0.6%
Capital Cities ABC, Inc. 50 4,263
------------
CONSUMER STAPLES - 1.8%
COSMETICS - 0.6%
Gillette Co. 50 3,737
------------
FOOD - 0.4%
IBP, Inc. 100 3,025
------------
TOBACCO - 0.8%
Philip Morris Cos., Inc. 100 5,750
------------
ENERGY - 1.3%
DOMESTIC PRODUCERS - 0.9%
Amoco Corp. 100 5,912
------------
PIPELINES - 0.4%
Enron Corp. 100 3,050
------------
8,962
------------
FINANCE - 0.6%
BANKING & CREDIT - 0.6%
Citicorp 100 4,138
------------
TECHNOLOGY - 1.2%
COMMUNICATIONS EQUIPMENT - 0.8%
Motorola, Inc. 100 $ 5,788
------------
COMPUTER SOFTWARE &
SERVICES - 0.4%
Reynolds & Reynolds Co. 100 2,500
------------
8,288
------------
UTILITIES - 0.6%
TELEPHONE - 0.6%
Southwestern Bell Corp. 100 4,038
------------
Total Common Stocks
(cost $69,543) 67,813
------------
U.S. GOVERNMENT
OBLIGATIONS- 30.0%
U.S. Treasury Bond
7.50%, 11/15/24
(cost $207,419) $ 220 210,443
------------
SHORT-TERM INVESTMENTS - 42.0%
U.S. GOVERNMENT
OBLIGATIONS- 42.0%
Federal Farm Credit Bank
5.85%, 1/06/95 65 64,947
5.85%, 1/17/95 40 39,896
Federal Home Loan Bank
5.85%, 1/09/95 100 99,870
Federal National Mortgage Assn.
5.89%, 1/26/95 90 89,632
------------
Total Short-Term Investments
(amortized cost $294,346) 294,345
------------
TOTAL INVESTMENTS -81.7%
(cost $571,308) 572,601
Other assets less liabilities - 18.3% 128,291
------------
NET ASSETS - 100.0% $ 700,892
============
-------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1994
-------------------------------------------------------------------------------
SHARES U.S.$ VALUE
------ -----------
COMMON STOCKS - 39.6%
BASIC INDUSTRIES - 4.5%
CHEMICALS - 1.8%
Hercules, Inc. 50 $ 5,769
------------
METALS & MINING - 2.7%
Aluminum Co. of America 100 8,662
------------
14,431
------------
CAPITAL GOODS - 5.0%
ELECTRICAL EQUIPMENT - 1.6%
General Electric Co. 100 5,100
------------
MACHINERY - 3.4%
Caterpillar, Inc. 200 11,025
------------
16,125
------------
CONSUMER
MANUFACTURING - 1.5%
AUTO & RELATED - 1.5%
Chrysler Corp. 100 4,900
------------
CONSUMER SERVICES - 1.3%
BROADCASTING & CABLE - 1.3%
Capital Cities ABC, Inc. 50 4,263
------------
CONSUMER STAPLES - 6.7%
COSMETICS - 1.2%
Gillette Co. 50 3,737
------------
FOOD - 1.9%
IBP, Inc. 200 6,050
------------
TOBACCO - 3.6%
Philip Morris Cos., Inc. 200 11,500
------------
21,287
------------
ENERGY - 5.6%
DOMESTIC PRODUCERS - 3.7%
Amoco Corp. 200 11,825
------------
PIPELINES - 1.9%
Enron Corp. 200 6,100
------------
17,925
------------
FINANCE - 4.5%
BANKING & CREDIT - 2.6%
Citicorp 200 8,275
------------
SHARES OR
PRINCIPAL
AMOUNT
(000)
BROKERAGE & MONEY
MANAGEMENT - 1.9%
First Financial Management Corp. 100 $ 6,162
------------
14,437
------------
HEALTH CARE - 1.4%
MEDICAL SERVICES - 1.4%
United Healthcare Corp. 100 4,513
------------
TECHNOLOGY - 7.8%
COMMUNICATIONS EQUIPMENT - 3.6%
Motorola, Inc. 200 11,575
------------
COMPUTER SOFTWARE &
SERVICES - 4.2%
Oracle Systems Corp.* 100 4,425
Paychex, Inc. 100 4,025
Reynolds & Reynolds Co. 200 5,000
------------
13,450
------------
25,025
------------
UTILITIES - 1.3%
TELEPHONE - 1.3%
Southwestern Bell Corp. 100 4,038
------------
Total Common Stocks
(cost $131,571) 126,944
------------
U.S. GOVERNMENT
OBLIGATIONS- 11.9%
U.S. Treasury Bond
7.50%, 11/15/24
(cost $37,528) $ 40 38,262
------------
SHORT-TERM INVESTMENTS - 21.7%
U.S. GOVERNMENT
OBLIGATIONS- 21.7%
Federal Farm Credit Bank
5.70%, 1/23/95
(amortized cost $69,756) 70 69,756
------------
TOTAL INVESTMENTS -73.2%
(cost $238,855) 234,962
Other assets less liabilities - 26.8% 85,836
------------
NET ASSETS - 100.0% $ 320,798
============
-------------------------------------------------------------------------------
See Notes to Financial Statements.
GLOSSARY OF TERMS
ADR - American Depository Receipts
ADS - American Depository Shares
FRB - Floating Rate Bond
FRN - Floating Rate Note
GDR - Global Depository Receipts
GDS - Global Depository Shares
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1994
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PREMIER GLOBAL
GROWTH AND SHORT-TERM
GROWTH BOND
INCOME MULTI-MARKET
PORTFOLIO PORTFOLIO
PORTFOLIO PORTFOLIO
----------- ---------- ----------
----------
<S> <C> <C>
<C> <C>
ASSETS
Investments in securities, at value (cost $39,822,165,
$7,246,459, $41,826,773 and $22,611,065, respectively) $ 40,085,460 $
7,125,387 $ 41,688,247 $21,084,740
Cash, at value (cost $482, $3,617, $180,170 and
$617, respectively).................................. 482 3,615
180,170 617
Receivable for capital stock sold...................... 36,005 -0-
195,982 -0-
Dividends receivable................................... 24,856 -0-
67,175 -0-
Deferred organization expense.......................... 13,666 6,111
5,107 4,040
Interest receivable.................................... 985 191,903
27,529 117,841
Receivable for investment securities sold.............. -0- -0-
685,918 -0-
Receivable from investment adviser..................... -0- 2,837
-0- -0-
Unrealized appreciation of forward exchange
currency contracts................................... -0- -0- -0-
50,450
Total assets........................................... 40,161,454 7,329,853
42,850,128 21,257,688
------------ ----------- -----------
-----------
LIABILITIES
Payable for investment securities purchased............ 2,441,781 -0-
1,088,770 -0-
Investment advisory fee payable........................ 17,758 -0-
21,535 10,885
Payable for capital stock redeemed..................... 6,506 -0-
6,421 298,420
Unrealized depreciation on forward exchange
currency contracts................................... -0- 2,620 -0-
-0-
Accrued expenses....................................... 26,315 29,164
31,531 27,524
------------ ----------- -----------
-----------
Total liabilities...................................... 2,492,360 31,784
1,148,257 336,829
------------ ----------- -----------
-----------
NET ASSETS................................................ $ 37,669,094 $ 7,298,069
$41,701,871 $20,920,859
============
=========== =========== ===========
Shares of capital stock outstanding.................... 3,044,420 743,012
3,517,661 2,111,469
=========
======= ========= =========
Net asset value per share.............................. $ 12.37 $ 9.82
$11.85 $ 9.91
=======
======= ====== ======
COMPOSITION OF NET ASSETS
Capital stock, at par.................................. $ 3,044 $ 743 $
3,517 $ 2,111
Additional paid-in capital............................. 37,035,476 7,502,422
40,751,533 22,564,821
Undistributed (overdistributed) net investment income.. 95,835 70,965
539,879 (2,357)
Accumulated net realized gain (loss) on investments, options
written and foreign currency transactions............ 271,444 (151,800)
545,474 (170,178)
Net unrealized appreciation (depreciation) of investments
and foreign currency................................. 263,295 (124,261)
(138,532) (1,473,538)
------------ ----------- -----------
-----------
$ 37,669,094 $ 7,298,069
$41,701,871 $ 20,920,859
============
=========== =========== ============
</TABLE>
-------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1994
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S. GOVERNMENT/
HIGH GRADE TOTAL
MONEY
SECURITIES RETURN
INTERNATIONAL MARKET
PORTFOLIO PORTFOLIO
PORTFOLIO PORTFOLIO
------------ ----------- -----------
-----------
<S> <C>
<C> <C> <C>
ASSETS
Investment in securities, at value (cost $5,078,732,
$751,430, $7,684,388 and $6,776,707, respectively).... $ 4,881,714 $
742,809 $ 7,603,019 $ 6,776,707
Cash, at value (cost $355, $973, $38,275 and
$128,581 respectively)............................... 355 973
38,381 128,581
Receivable for capital stock sold...................... 162,931 132,000
7,914 21,091
Interest receivable.................................... 64,909 5,820
199 -0-
Deferred organization expense.......................... 13,223 14,585
14,941 14,969
Receivable from investment adviser..................... 3,160 6,435
24,773 1,533
Dividends receivable................................... 1,181 800
8,365 -0-
Receivable for investment securities sold.............. -0- -0-
144,910 -0-
------------ ----------- -----------
-----------
Total assets........................................... 5,127,473 903,422
7,842,502 6,942,881
------------ ----------- -----------
-----------
LIABILITIES
Payable for investment securities purchased............ -0- 113,810
478,005 -0-
Unrealized depreciation on forward exchange
currency contracts................................... -0- -0- 1,892
-0-
Accrued expenses....................................... 26,189 39,712
86,217 44,586
------------ ----------- -----------
-----------
Total liabilities...................................... 26,189 153,522
566,114 44,586
------------ ----------- -----------
-----------
NET ASSETS................................................ $ 5,101,284 $ 749,900
$ 7,276,388 $ 6,898,295
============
=========== =========== ===========
Shares of capital stock outstanding.................... 513,429 72,033
564,889 6,898,778
======= ======
======= =========
Net asset value per share.............................. $ 9.94 $ 10.41 $
12.88 $ 1.00
=======
======= ======= ======
COMPOSITION OF NET ASSETS
Capital stock, at par.................................. $ 513 $ 72 $
565 $ 6,899
Additional paid-in capital............................. 5,180,229 752,946
7,314,758 6,891,076
Undistributed net investment income.................... 147,340 9,940
23,907 803
Accumulated net realized gain (loss) on investments and
foreign currency transactions........................ (29,780) (4,437)
20,397 (483)
Net unrealized depreciation of investments and
foreign currency..................................... (197,018) (8,621)
(83,239) -0-
------------ ----------- -----------
-----------
$ 5,101,284 $ 749,900 $
7,276,388 $ 6,898,295
============
=========== =========== ===========
</TABLE>
-------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1994
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NORTH AMERICAN
GLOBAL DOLLAR
GOVERNMENT UTILITY
GOVERNMENT INCOME
INCOME GROWTH
PORTFOLIO PORTFOLIO
PORTFOLIO PORTFOLIO
------------ ----------- -----------
-----------
<S> <C> <C>
<C> <C>
ASSETS
Investments in securities, at value (cost $1,291,958,
$4,524,950, $1,124,341 and $5,280,349, respectively). $ 1,239,237 $
3,809,209 $ 1,091,379 $ 5,486,255
Cash, at value (cost $168, $110, $190,118 and
$187,520, respectively).............................. 168 110
190,118 187,520
Interest receivable.................................... 26,090 49,709
1,031 -0-
Receivable for investment securities sold.............. 14,969 -0-
58,405 -0-
Deferred organization expense.......................... 8,663 8,668
8,707 9,408
Receivable from investment adviser..................... 6,997 5,885
7,984 6,758
Receivable for capital stock sold...................... -0- 7,086
-0- 14,301
Dividends receivable................................... -0- -0-
5,718 5,686
Total assets........................................... 1,296,124 3,880,667
1,363,342 5,709,928
------------ ----------- -----------
-----------
LIABILITIES
Payable for investment securities purchased............ 113,760 -0-
77,252 195,358
Accrued expenses....................................... 36,038 32,585
31,841 22,806
------------ ----------- -----------
-----------
Total liabilities...................................... 149,798 32,585
109,093 218,164
------------ ----------- -----------
-----------
NET ASSETS................................................ $ 1,146,326 $ 3,848,082
$ 1,254,249 $ 5,491,764
============
=========== =========== ===========
Shares of capital stock outstanding.................... 116,502 437,622
125,979 521,613
=======
======= ======= =======
Net asset value per share.............................. $ 9.84 $ 8.79
$ 9.96 $10.53
=======
======= ====== ======
COMPOSITION OF NET ASSETS
Capital stock, at par.................................. $ 116 $ 438 $
126 $ 522
Additional paid-in capital............................. 1,173,920 4,434,779
1,277,920 5,322,867
Undistributed net investment income.................... 25,782 141,547
18,832 11,263
Accumulated net realized loss on investments and
foreign currency transactions........................ (771) (12,932)
(9,667) (48,794)
Net unrealized appreciation (depreciation) of investments
and foreign currency................................. (52,721) (715,750)
(32,962) 205,906
------------ ----------- -----------
-----------
$ 1,146,326 $ 3,848,082 $
1,254,249 $ 5,491,764
============
=========== =========== ===========
</TABLE>
-------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1994
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
WORLDWIDE
CONSERVATIVE GROWTH
PRIVATIZATION
INVESTORS INVESTORS
PORTFOLIO
PORTFOLIO PORTFOLIO
------------- -------------
-----------
<S> <C> <C>
<C>
ASSETS
Investments in securities, at value ( cost $1,132,000,
$571,308 and $238,855, respectively)................. $ 1,132,000 $
572,601 $ 234,962
Cash, at value (cost $299, $91,980 and
$98,226, respectively)............................... 299 91,980
98,226
Deferred organization expense.......................... 9,452 9,644
9,644
Receivable from investment adviser..................... 8,529
8,911 8,856
Receivable for capital stock sold...................... 2,500 32,500
-0-
Interest receivable.................................... 342 2,142
390
Dividends receivable................................... -0- 191
298
------------ -----------
------------
Total assets........................................... 1,153,122 717,969
352,376
------------ -----------
------------
LIABILITIES
Payable for investment securities purchased............ -0- -0-
14,798
Accrued expenses....................................... 26,060 17,077
16,780
------------ -----------
------------
Total liabilities...................................... 26,060 17,077
31,578
------------ -----------
------------
NET ASSETS................................................ $ 1,127,062 $
700,892 $ 320,798
===========
============ ============
Shares of capital stock outstanding.................... 111,570 69,581
32,549
=======
====== ======
Net asset value per share.............................. $ 10.10 $ 10.07
$ 9.86
=======
======= =======
COMPOSITION OF NET ASSETS
Capital stock, at par.................................. $ 112 $ 69
$ 33
Additional paid-in capital............................. 1,119,766 696,780
324,301
Undistributed net investment income.................... 7,184
3,462 1,067
Accumulated net realized loss on investments........... -0-
(712) (710)
Net unrealized appreciation (depreciation) of investments -0-
1,293 (3,893)
$ 1,127,062 $ 700,892
$ 320,798
============
=========== ============
</TABLE>
-------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
STATEMENTS OF OPERATIONS
YEAR ENDED DECEMBER 31, 1994
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PREMIER GLOBAL
GROWTH AND SHORT-TERM
GROWTH BOND
INCOME MULTI-MARKET
PORTFOLIO PORTFOLIO
PORTFOLIO PORTFOLIO
------------ ----------- -----------
-----------
<S> <C> <C>
<C> <C>
INVESTMENT INCOME
Dividends (net of foreign tax withheld of $-0-, $-0-,
$9,432 and $-0-, respectively)....................... $ 286,083 $ -0- $
658,453 $ -0-
Interest (net of foreign tax withheld of $-0-, $3,345,
$-0- and $13,291, respectively)...................... 34,773 473,105
192,025 1,916,619
------------ ----------- -----------
-----------
Total investment income................................ 320,856 473,105
850,478 1,916,619
------------ ----------- -----------
-----------
EXPENSES
Investment advisory fee................................ 235,000 44,159
203,549 141,225
Custodian.............................................. 57,131 64,179
55,384 79,186
Audit and legal........................................ 12,039 10,554
10,765 12,422
Printing............................................... 9,485 10,729
8,335 9,310
Amortization of organization expenses.................. 5,497 3,975
4,449 4,449
Registration........................................... 5,057 153
6,506 1,696
Transfer agency........................................ 2,248 2,195
2,814 2,327
Director's fees........................................ 1,420 1,420
1,972 1,651
Miscellaneous.......................................... 2,012 2,126
3,613 2,773
------------ ----------- -----------
-----------
Total expenses......................................... 329,889 139,490
297,387 255,039
Less: expense reimbursement............................ (106,639) (74,975)
(3,095) (13,543)
------------ ----------- -----------
-----------
Net expenses........................................... 223,250 64,515
294,292 241,496
------------ ----------- -----------
-----------
Net investment income.................................. 97,606 408,590
556,186 1,675,123
------------ ----------- -----------
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) on security transactions...... 271,826 (154,419)
605,669 (150,822)
Net realized loss on options written and
foreign currency transactions........................ -0- (253,681)
(50) (1,801,598)
Net change in unrealized appreciation (depreciation)
of investments....................................... (1,055,863) (279,435)
(1,403,801) (1,154,264)
Net change in unrealized appreciation (depreciation)
of options written and foreign currency.............. -0- (74,522)
(6) (61,098)
------------ ----------- -----------
-----------
Net loss on investments................................ (784,037) (762,057)
(798,188) (3,167,782)
------------ ----------- -----------
-----------
NET DECREASE IN NET ASSETS FROM OPERATIONS................ $
(686,431) $ (353,467) $ (242,002) $(1,492,659)
===========
========== ========== ===========
</TABLE>
-------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
STATEMENTS OF OPERATIONS
YEAR ENDED DECEMBER 31, 1994
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S. GOVERNMENT/
HIGH GRADE TOTAL
MONEY
SECURITIES RETURN
INTERNATIONAL MARKET
PORTFOLIO PORTFOLIO
PORTFOLIO PORTFOLIO
------------ ----------- -----------
-----------
<S> <C> <C>
<C> <C>
INVESTMENT INCOME
Interest............................................... $ 167,791 $ 9,014 $
18,531 $ 102,454
Dividends (net of foreign tax withheld of $-0-, $-0-, $4,687
and $-0-, respectively).............................. 4,725 4,714
33,148 -0-
------------ ----------- -----------
-----------
Total investment income................................ 172,516 13,728
51,679 102,454
------------ ----------- -----------
-----------
EXPENSES
Investment advisory fee................................ 15,701 2,645
27,975 10,387
Custodian.............................................. 48,846 46,788
141,885 46,179
Audit and legal........................................ 12,073 12,252
13,127 13,591
Printing............................................... 10,208 10,299
10,139 8,412
Amortization of organization expenses.................. 4,873 4,872
4,994 4,993
Transfer agency........................................ 2,785 2,754
2,233 2,569
Director's fees........................................ 1,819 2,150
1,114 3,996
Registration........................................... 184 142 1,103
1,348
Miscellaneous.......................................... 1,239 590
544 1,091
------------ ----------- -----------
-----------
Total expenses......................................... 97,728 82,492
203,114 92,566
Less: expense reimbursement............................ (72,868) (78,468)
(176,537) (72,831)
------------ ----------- -----------
-----------
Net expenses........................................... 24,860 4,024
26,577 19,735
------------ ----------- -----------
-----------
Net investment income.................................. 147,656 9,704
25,102 82,719
------------ ----------- -----------
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized loss on security transactions............. (29,780) (4,437)
18,758 (473)
Net realized gain on foreign currency transactions..... -0- -0-
1,982 -0-
Net change in unrealized depreciation of investments... (182,479) (22,102)
(103,346) -0-
Net change in unrealized depreciation on foreign currency -0- -0-
(3,355) -0-
Net loss on investments................................ (212,259) (26,539)
(85,961) (473)
------------ ----------- -----------
-----------
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS..... $
(64,603) $ (16,835) $ (60,859) $ 82,246
===========
========== ========== ==========
</TABLE>
-------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
STATEMENTS OF OPERATIONS
YEAR ENDED DECEMBER 31, 1994
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NORTH AMERICAN
GLOBAL DOLLAR
GOVERNMENT UTILITY
GOVERNMENT INCOME
INCOME GROWTH
PORTFOLIO (A) PORTFOLIO
(B) PORTFOLIO (C) PORTFOLIO (D)
-------------- ------------ -------------
-------------
<S> <C> <C>
<C> <C>
INVESTMENT INCOME
Interest................................................. $ 29,849 $ 161,885 $
4,462 $ 9,840
Dividends (net of foreign tax withheld of $-0-, $-0-, $178
and $-0-, respectively)................................ -0- -0-
18,261 10,542
------------ ----------- -----------
-----------
Total investment income.................................. 29,849 161,885
22,723 20,382
------------ ----------- -----------
-----------
EXPENSES
Investment advisory fee.................................. 3,211 11,144
3,059 7,199
Custodian................................................ 33,213 36,004
35,381 14,796
Audit and legal.......................................... 14,878 14,695
14,855 11,340
Printing................................................. 7,428 7,417
7,346 3,348
Director's fees.......................................... 2,204 2,891
1,621 324
Amortization of organization expenses.................... 1,337 1,331
1,293 592
Transfer agency.......................................... 424 328
472 216
Registration............................................. 304 1,068 153
1,600
Miscellaneous............................................ 1,217 1,121
978 756
------------ ----------- -----------
-----------
Total expenses........................................... 64,216 75,999
65,158 40,171
Less: expense reimbursement.............................. (60,149) (59,712)
(61,284) (31,052)
------------ ----------- -----------
-----------
Net expenses............................................. 4,067 16,287
3,874 9,119
------------ ----------- -----------
-----------
Net investment income.................................... 25,782 145,598
18,849 11,263
------------ ----------- -----------
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized loss on security transactions............... (771) (12,751)
(9,667) (48,794)
Net realized loss on foreign currency transactions....... -0- (4,232)
(17) -0-
Net unrealized appreciation (depreciation) of investments (52,721) (715,741)
(32,962) 205,906
Net unrealized depreciation on foreign currency.......... -0- (9)
-0- -0-
Net gain (loss) on investments........................... (53,492) (732,733)
(42,646) 157,112
------------ ----------- -----------
-----------
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS..... $
(27,710) $ (587,135) $ (23,797) $ 168,375
============
=========== =========== ===========
</TABLE>
-------------------------------------------------------------------------------
(a) Commencement of operations, May 2, 1994.
(b) Commencement of operations, May 3, 1994.
(c) Commencement of operations, May 10, 1994.
(d) Commencement of operations, September 15, 1994.
See Notes to Financial Statements.
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
STATEMENTS OF OPERATIONS
YEAR ENDED DECEMBER 31, 1994
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
WORLDWIDE
CONSERVATIVE GROWTH
PRIVATIZATION
INVESTORS INVESTORS
PORTFOLIO (A) PORTFOLIO
(B) PORTFOLIO (B)
------------ -----------
------------
<S> <C> <C>
<C>
INVESTMENT INCOME
Interest............................................... $ 8,782 $ 4,101
$ 1,022
Dividends.............................................. -0- 286
488
------------ -----------
------------
Total investment income................................ 8,782 4,387
1,510
------------ -----------
------------
EXPENSES
Investment advisory fee................................ 1,682 730
350
Custodian expense...................................... 13,700 8,905
8,905
Audit and legal........................................ 10,500 6,825
6,825
Printing............................................... 3,100 2,015
2,015
Amortization of organization expenses.................. 548 356
356
Registration........................................... 336 205
180
Director's fees........................................ 300 195
195
Transfer agency........................................ 200 130
130
Miscellaneous.......................................... 700 455
455
------------ -----------
------------
Total expenses......................................... 31,066 19,816
19,411
Less: expense reimbursement............................ (29,468)
(18,891) (18,968)
------------ -----------
------------
Net expenses........................................... 1,598 925
443
------------ -----------
------------
Net investment income.................................. 7,184 3,462
1,067
------------ -----------
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized loss on security transactions............. -0- (712)
(710)
Net unrealized appreciation (depreciation) of investments -0-
1,293 (3,893)
Net gain (loss) on investments......................... -0- 581
(4,603)
------------ -----------
------------
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS..... $
7,184 $ 4,043 $ (3,536)
============
=========== ===========
</TABLE>
-------------------------------------------------------------------------------
(a) Commencement of operations, September 23, 1994.
(b) Commencement of operations, October 28, 1994.
See Notes to Financial Statements.
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PREMIER GROWTH PORTFOLIO
GLOBAL BOND PORTFOLIO
-----------------------------------
------------------------------
YEAR ENDED YEAR ENDED
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
DECEMBER 31, DECEMBER 31,
1994 1993 1994
1993
---------------- ---------------- ----------------
----------
<S> <C> <C> <C>
<C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income....................... $ 97,606 $ 19,019 $
408,590 $ 302,648
Net realized gain (loss) on security
transactions............................... 271,826 55,949 (154,419)
181,668
Net realized gain (loss) on foreign currency
transactions.............................. -0- -0- (253,681)
42,628
Net change in unrealized appreciation (depreciation)
of investments and foreign currency....... (1,055,863) 1,001,174
(353,957) 136,242
------------ ----------- -----------
-----------
Net increase (decrease) in net assets
from operations........................... (686,431) 1,076,142
(353,467) 663,186
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income....................... (20,473) (10,082)
(383,604) (330,796)
Net realized gain on investments and foreign
currency transactions..................... (56,132) (9,307) (181,669)
(255,069)
CAPITAL STOCK TRANSACTIONS
Net increase................................ 24,773,454 8,842,017
1,468,349 795,308
------------ ----------- -----------
-----------
Total increase.............................. 24,010,418 9,898,770 549,609
872,629
NET ASSETS
Beginning of period......................... 13,658,676 3,759,906
6,748,460 5,875,831
------------ ----------- -----------
-----------
End of period (including undistributed net
investment income of $95,835, $18,702,
$70,965 and $303,791, respectively)....... $37,669,094 $ 13,658,676 $
7,298,069 $ 6,748,460
===========
============ =========== ===========
</TABLE>
-------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GROWTH AND INCOME PORTFOLIO
SHORT-TERM MULTI-MARKET PORTFOLIO
-----------------------------------
-------------------------------
YEAR ENDED YEAR ENDED
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
DECEMBER 31, DECEMBER 31,
1994 1993 1994
1993
---------------- ---------------- ----------------
----------
<S> <C> <C> <C>
<C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income....................... $ 556,186 $ 264,070 $
1,675,123 $ 1,144,150
Net realized gain (loss) on
security transactions .................... 605,669 422,874
(567,154) 35,446
Net realized gain (loss) on options written and
foreign currency transactions............. (50) -0- (1,385,266)
(226,112)
Net change in unrealized appreciation (depreciation)
of investments and foreign currency....... (1,403,807) 997,654
(1,215,362) 140,407
------------ ----------- -----------
-----------
Net increase (decrease) in net assets
from operations........................... (242,002) 1,684,598
(1,492,659) 1,093,891
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income....................... (277,061) (82,842)
(1,057,212) (671,358)
Net realized gain on investments............ (484,873) (43,527)
-0- -0-
Return of capital........................... -0- -0- (940)
-0-
CAPITAL STOCK TRANSACTIONS
Net increase (decrease)..................... 19,950,283 13,394,453
(88,801) 8,296,929
------------ ----------- -----------
-----------
Total increase (decrease)................... 18,946,347 14,952,682
(2,639,612) 8,719,462
NET ASSETS
Beginning of period......................... 22,755,524 7,802,842
23,560,471 14,841,009
------------ ----------- -----------
-----------
End of period (including undistributed
(overdistributed) net investment
income of $539,879, $263,579, $(2,357)
and $1,411,590, respectively)............. $41,701,871 $ 22,755,524
$20,920,859 $ 23,560,471
===========
============ =========== ============
</TABLE>
-------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S. GOVERNMENT/
HIGH GRADE SECURITIES PORTFOLIO
TOTAL RETURN PORTFOLIO
-----------------------------------
----------------------------------
YEAR ENDED YEAR ENDED
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
DECEMBER 31, DECEMBER 31,
1994 1993 1994
1993
---------------- ----------------- ----------------
---------------
<S> <C> <C> <C>
<C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income....................... $ 147,656 $ 52,417 $
9,704 $ 3,228
Net realized gain (loss) on security
transactions.............................. (29,780) 37,563 (4,437)
2,282
Net change in unrealized appreciation (depreciation)
of investments............................ (182,479) (2,396) (22,102)
13,455
------------ ----------- -----------
-----------
Net increase (decrease) in net assets
from operations........................... (64,603) 87,584 (16,835)
18,965
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income....................... (52,816) (8,681)
(3,795) -0-
Net realized gain on investments............ (35,522) -0-
(2,282) -0-
CAPITAL STOCK TRANSACTIONS
Net increase................................ 3,903,950 485,928 412,828
245,865
------------ ----------- -----------
-----------
Total increase.............................. 3,751,009 564,831 389,916
264,830
NET ASSETS
Beginning of period......................... 1,350,275 785,444
359,984 95,154
------------ ----------- -----------
-----------
End of period (including undistributed net
investment income of $147,340, $52,500,
$9,940 and $3,251, respectively).......... $ 5,101,284 $ 1,350,275 $
749,900 $ 359,984
===========
============ =========== ============
</TABLE>
-------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL PORTFOLIO
MONEY MARKET PORTFOLIO
-----------------------------------
-------------------------------
YEAR ENDED YEAR ENDED
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
DECEMBER 31, DECEMBER 31,
1994 1993 1994
1993
---------------- ---------------- ----------------
----------
<S> <C> <C> <C>
<C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income....................... $ 25,102 $ 511 $
82,719 $ 1,847
Net realized gain (loss) on security
transactions.............................. 18,758 10,916 (473)
(10)
Net realized gain (loss) on foreign currency
transactions.............................. 1,982 (698) -0-
-0-
Net change in unrealized appreciation (depreciation)
of investments and foreign currency....... (106,701) 23,442
-0- -0-
------------ ----------- -----------
-----------
Net increase (decrease) in net assets
from operations........................... (60,859) 34,171 82,246
1,837
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income....................... (1,901) -0- (82,719)
(1,847)
Net realized gain on investments and foreign
currency transactions..................... (11,169) -0- -0-
-0-
CAPITAL STOCK TRANSACTIONS
Net increase................................ 6,662,423 574,261 6,797,225
71,544
------------ ----------- -----------
-----------
Total increase.............................. 6,588,494 608,432 6,796,752
71,534
NET ASSETS
Beginning of period......................... 687,894 79,462
101,543 30,009
------------ ----------- -----------
-----------
End of period (including undistributed net
investment income of $23,907, $529, $803
and $-0-, respectively)................... $ 7,276,388 $ 687,894 $
6,898,295 $ 101,543
===========
============ =========== ============
</TABLE>
-------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NORTH AMERICAN
GLOBAL DOLLAR GOVERNMENT
UTILITY
GOVERNMENT INCOME
INCOME GROWTH
PORTFOLIO PORTFOLIO
PORTFOLIO PORTFOLIO
-------------- ----------------- ----------------
--------------
PERIOD ENDED PERIOD ENDED
PERIOD ENDED PERIOD ENDED
DECEMBER 31, DECEMBER 31,
DECEMBER 31, DECEMBER 31,
1994 (A) 1994 (B) 1994 (C)
1994 (D)
---------------- ---------------- ----------------
------------
<S> <C> <C> <C>
<C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income....................... $ 25,782 $ 145,598 $
18,849 $ 11,263
Net realized loss on security transactions.. (771) (12,751)
(9,667) (48,794)
Net realized gain (loss) on foreign currency
transactions.............................. -0- (4,232) (17)
-0-
Net unrealized appreciation (depreciation)
of investments and foreign currency....... (52,721) (715,750)
(32,962) 205,906
------------ ----------- -----------
-----------
Net increase (decrease) in net assets
from operations........................... (27,710) (587,135)
(23,797) 168,375
CAPITAL STOCK TRANSACTIONS
Net increase................................ 1,174,036 4,435,217
1,278,046 5,323,389
------------ ----------- -----------
-----------
Total increase.............................. 1,146,326 3,848,082
1,254,249 5,491,764
NET ASSETS
Beginning of period......................... -0- -0- -0-
-0-
------------ ----------- -----------
-----------
End of period (including undistributed net
investment income of $25,782, $141,547,
$18,832 and $11,263, respectively)........ $ 1,146,326 $ 3,848,082 $
1,254,249 $ 5,491,764
============
=========== =========== ============
</TABLE>
-------------------------------------------------------------------------------
(a) Commencement of operations, May 2, 1994.
(b) Commencement of operations, May 3, 1994.
(c) Commencement of operations, May 10, 1994.
(d) Commencement of operations, September 15, 1994.
See Notes to Financial Statements.
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
WORLDWIDE
CONSERVATIVE GROWTH
PRIVATIZATION
INVESTORS INVESTORS
PORTFOLIO
PORTFOLIO PORTFOLIO
---------------- ----------------
--------------
PERIOD ENDED PERIOD
ENDED PERIOD ENDED
DECEMBER 31,
DECEMBER 31, DECEMBER 31,
1994 (A) 1994 (B)
1994 (B)
---------------- ----------------
------------
<S> <C>
<C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income....................... $ 7,184 $ 3,462
$ 1,067
Net realized gain (loss) on security transactions -0- (712)
(710)
Net unrealized appreciation (depreciation)
of investments and foreign currency....... -0- 1,293
(3,893)
------------ -----------
------------
Net increase (decrease) in net assets
from operations........................... 7,184 4,043
(3,536)
CAPITAL STOCK TRANSACTIONS
Net increase................................ 1,119,878 696,849
324,334
------------ -----------
------------
Total increase.............................. 1,127,062 700,892
320,798
NET ASSETS
Beginning of period......................... -0- -0-
-0-
------------ -----------
------------
End of period (including undistributed net
investment income of $7,184, $3,462 and
$1,067, respectively)..................... $ 1,127,062 $ 700,892
$ 320,798
============
=========== ============
</TABLE>
-------------------------------------------------------------------------------
(a) Commencement of operations, September 23, 1994.
(b) Commencement of operations, October 28, 1994.
See Notes to Financial Statements.
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1994
-------------------------------------------------------------------------------
NOTE A -- SIGNIFICANT ACCOUNTING POLICIES
Alliance Variable Products Series Fund, Inc. (the "Fund"), was incorporated in
the State of Maryland on November 17, 1987 as an open-end series investment
company. The Fund had no operations prior to November 28, 1990. The Fund offers
fifteen separately managed pools of assets which have differing investment
objectives and policies. The Fund currently issues shares of the Premier Growth
Portfolio (formerly Growth Portfolio), Global Bond Portfolio, Growth and Income
Portfolio, Short-Term Multi-Market Portfolio, U.S. Government/High Grade
Securities Portfolio, Total Return Portfolio, International Portfolio, Money
Market Portfolio, Global Dollar Government Portfolio, North American Government
Income Portfolio, Utility Income Portfolio, Growth Portfolio, Worldwide
Privatization Portfolio, Conservative Investors Portfolio and Growth Investors
Portfolio (the "Portfolios").
The Fund offers and sells its shares only to separate accounts of certain life
insurance companies, for the purpose of funding variable annuity contracts and
variable life insurance policies. Sales are made without sales charge, at each
Portfolio's net asset value per share.
The following is a summary of significant accounting policies followed by the
Fund.
1. SECURITY VALUATION
Investments are stated at value. Investments for which market quotations are
readily available are valued at the closing price on the day of valuation.
Securities for which market quotations are not readily available are valued in
good faith at fair value using methods determined by the Board of Directors.
Securities which mature in 60 days or less are valued at amortized cost, which
approximates market value, unless this method does not represent fair value.
2. OPTION WRITING
When a Portfolio writes an option, an amount equal to the premium received by
the Portfolio is recorded as a liability and is subsequently adjusted to the
current market value of the option written. Premiums received from writing
options which expire unexercised are recorded by the Portfolio on the expiration
date as realized gains. The difference between the premium and the amount paid
on effecting a closing purchase transaction, including brokerage commissions, is
also recorded as a realized gain, or if the premium is less than the amount paid
for the closing purchase transaction, as a realized loss. If a call option is
exercised, the premium is added to the proceeds from the sale of the underlying
security or currency in determining whether the Portfolio has realized a gain or
loss. If a put option is exercised, the premium reduces the cost basis of the
security or currency purchased by the Portfolio. In writing an option, the
Portfolio bears the market risk of unfavorable changes in the price of the
security or currency underlying the written option. Exercise of an option
written by the Portfolio could result in the Portfolio selling or buying a
security or currency at a price different from the current market value.
3. 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 prices of such currencies against the U.S. dollar.
Purchases and sales of portfolio securities are translated at the rates of
exchange prevailing when such securities were acquired or sold. Income and
expenses are translated at rates of exchange prevailing when accrued.
Net foreign exchange gains (losses) of $(253,681), $(50), $(1,394,953), $1,982,
$(4,232) and $(17) in the Global Bond Portfolio, Growth and Income Portfolio,
Short-Term Multi-Market Portfolio, International Portfolio, North American
Government Income Portfolio and Utility Income Portfolio, respectively,
represent foreign exchange gains and losses from sales and maturities of
securities, holding of foreign currencies, options on foreign currencies,
exchange gains or losses realized between the trade and settlement dates on
security transactions, and the difference between the amounts of interest and
dividends recorded on the Portfolio's books and the U.S. dollar equivalent of
the amounts actually received or paid.
Net currency gains and losses from valuing foreign currency denominated assets
and liabilities at period end
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONT'D)
-------------------------------------------------------------------------------
exchange rates are reflected as a component of unrealized appreciation
(depreciation) on investments and foreign currency.
4. ORGANIZATION EXPENSES
Organization expenses of $260,664 have been deferred and are being amortized on
a straight-line basis as follows: Premier Growth Portfolio $27,506 through June
1997; Global Bond Portfolio $19,898 through July 1996; Growth and Income
Portfolio $22,263 through January 1996; Short-Term Multi-Market Portfolio
$22,263 through November 1995; U.S. Government/High Grade Securities Portfolio
$24,384 through September 1997; Total Return Portfolio $24,384 through December
1997; International Portfolio $24,983 through December 1997; Money Market
Portfolio $24,983 through December 1997; Global Dollar Government Portfolio
$10,000 through April 1999; North American Government Income Portfolio $10,000
through April 1999; Utility Income Portfolio $10,000 through April 1999; Growth
Portfolio $10,000 through September 1999; Worldwide Privatization Portfolio
$10,000 through September 1999; Conservative Investors Portfolio $10,000 through
October 1999 and Growth Investors Portfolio $10,000 through October 1999.
5. FEDERAL INCOME TAX
It is the Fund's policy to meet the requirements of the Internal Revenue Code
applicable to regulated investment companies and to distribute all of its
investment company taxable income and net realized gains, if applicable, to
shareholders. Therefore, no provision for federal income tax is required.
6. INVESTMENT INCOME AND SECURITY TRANSACTIONS
Interest income is accrued daily. Dividend income is recorded on the ex-dividend
date. Security transactions are accounted for on the date securities are
purchased or sold. Security gains and losses are determined on the identified
cost basis. The Fund accretes discounts as adjustments to interest income.
7. DIVIDENDS AND DISTRIBUTIONS
Each Portfolio declares and distributes dividends and distributions from net
investment income and net realized gains, respectively, if any, at least
annually, except for dividends on the Money Market Portfolio, which are declared
daily and paid monthly. Income dividends and capital gain distributions are
determined in accordance with income tax regulations, which may differ from
generally accepted accounting principles.
-------------------------------------------------------------------------------
NOTE B -- ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under the terms of an investment advisory agreement, each Portfolio pays
Alliance Capital Management L.P., (the "Adviser"), an investment advisory fee,
based on average net assets, at the following annual rates: Premier Growth
Portfolio, 1%; Global Bond Portfolio .65 of 1%; Growth and Income Portfolio .625
of 1%; Short-Term Multi-Market Portfolio, .55 of 1%; U.S. Government/High Grade
Securities Portfolio, .60 of 1%; Total Return Portfolio, .625 of 1%;
International Portfolio, 1%; Money Market Portfolio, .50 of 1%; Global Dollar
Government Portfolio, .75 of 1%; North American Government Income Portfolio, .65
of 1%; Utility Income Portfolio, .75 of 1%; Growth Portfolio, .75 of 1%;
Worldwide Privatization Portfolio, 1%; Conservative Investors Portfolio, .75 of
1% and Growth Investors Portfolio, .75 of 1%. Such fee is accrued daily and paid
monthly. For the Global Bond Portfolio, the adviser has retained, under a
sub-advisory agreement, a sub-adviser, AIGAM International Ltd., an affiliate of
American International Group, Inc.
The Adviser voluntarily agreed to reimburse each Portfolio based on their
respective average net assets for expenses exceeding their limitation which was
.95% for the period ended December 31, 1994. Expense reimbursements, if any, are
accrued daily and paid monthly. For the period ended December 31, 1994, such
reimbursements amounted to $106,639, $30,816, $3,095, $13,543, $72,868, $78,468,
$176,537, $72,831, $60,149, $59,712, $61,284, $31,052, $29,468, $18,891 and
$18,968 for the Premier Growth Portfolio, the Global Bond Portfolio, the Growth
and Income Portfolio, the Short-Term Multi-Market Portfolio, the U.S.
Government/High Grade Securities Portfolio, the Total Return Portfolio, the
International Portfolio, the Money Market Portfolio, the Global Dollar
Government Portfolio, the North American Government Income Portfolio, the
Utility Income Portfolio, the Growth Portfolio, the
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONT'D)
-------------------------------------------------------------------------------
Worldwide Privatization Portfolio, the Conservative Investors Portfolio and the
Growth Investors Portfolio, respectively. In addition, for the year ended
December 31, 1994, the Advisers agreed to waive the Global Bond Portfolio's
investment advisory fee in the amount of $44,159.
Each Portfolio compensates Alliance Fund Services, Inc. (a wholly-owned
subsidiary of the Adviser) for providing personnel and facilities to perform
transfer agency services for the Portfolio. Such compensation amounted to $900
for the Premier Growth Portfolio, the Global Bond Portfolio, the Growth and
Income Portfolio, the Short-Term Multi-Market Portfolio, the U.S.
Government/High Grade Securities Portfolio, the Total Return Portfolio, the
International Portfolio and the Money Market Portfolio and $424, $328, $472,
$216, $200,
$130 and $130 for the Global Dollar Government Portfolio, the North American
Government Income Portfolio, the Utility Income Portfolio, the Growth Portfolio,
the Worldwide Privatization Portfolio, the Conservative Investors Portfolio and
the Growth Investors Portfolio, respectively, for the period ended December 31,
1994.
Brokerage commissions paid for the period ended December 31, 1994 on securities
transactions amounted to $54,827, $102,852, $28,278, $1,043, $3,214, $10,634,
$105 and $175 on the Premier Growth Portfolio, the Growth and Income Portfolio,
the International Portfolio, the Total Return Portfolio, the Utility Income
Portfolio, the Growth Portfolio, the Conservative Investors Portfolio and the
Growth Investors Portfolio, respectively, none of which was paid to affiliated
brokers.
-------------------------------------------------------------------------------
NOTE C -- INVESTMENT TRANSACTIONS
Purchases and sales of investment securities (excluding short-term investments)
for the period ended December 31, 1994 were:
<TABLE>
<CAPTION>
U.S. GOVERNMENT/
PREMIER GLOBAL GROWTH AND
SHORT-TERM HIGH GRADE
GROWTH BOND INCOME
MULTI-MARKET SECURITIES
PORTFOLIO PORTFOLIO PORTFOLIO
PORTFOLIO PORTFOLIO
--------- --------- ----------- ------------
------------
<S> <C> <C> <C>
<C> <C>
PURCHASES
Stocks and debt obligations.................. $ 32,753,919 $ 6,933,893 $ 45,231,112
$ 13,998,012 $ 943,138
U.S. Government and government
agency obligations........................ -0- 1,127,828 87,695
1,191,875 2,934,005
SALES
Stocks and debt obligations.................. 8,887,239 6,260,040 27,997,025
23,296,459 522,775
U.S. Government and government
agency obligations........................ -0- 157,735 481,561
1,192,125 239,834
<CAPTION>
GLOBAL NORTH
AMERICAN
TOTAL DOLLAR
GOVERNMENT UTILITY
RETURN INTERNATIONAL
GOVERNMENT INCOME INCOME
PORTFOLIO PORTFOLIO PORTFOLIO
PORTFOLIO PORTFOLIO
--------- --------- ----------- ------------
------------
<S> <C> <C> <C>
<C> <C>
PURCHASES
Stocks and debt obligations.................. $ 365,375 $ 9,011,605 $ 653,376
$ 922,173 $ 1,298,176
U.S. Government and government
agency obligations........................ 218,416 -0- 491,914
2,599,688 -0-
SALES
Stocks and debt obligations.................. 247,272 2,489,956 55,619
6,444 164,177
U.S. Government and government
agency obligations........................ 81,758 -0- -0-
285,816 -0-
</TABLE>
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONT'D)
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
WORLDWIDE
CONSERVATIVE GROWTH
GROWTH PRIVATIZATION
INVESTORS INVESTORS
PORTFOLIO PORTFOLIO
PORTFOLIO PORTFOLIO
--------- ------------- ------------
----------
<S> <C> <C> <C>
<C>
PURCHASES
Stocks and debt obligations.................. $ 5,501,242 $ -0- $ 74,838
$ 136,866
U.S. Government and government
agency obligations........................ -0- -0- 207,407
37,524
SALES
Stocks and debt obligations.................. 771,721 -0- 4,592
4,592
U.S. Government and government
agency obligations........................ -0- -0- -0-
-0-
</TABLE>
At December 31, 1994, the cost of investments for federal income tax purposes
was substantially the same as the cost for financial reporting purposes.
Accordingly, gross unrealized appreciation (depreciation) of investments for
each Portfolio were as follows:
<TABLE>
<CAPTION>
NET
UNREALIZED
GROSS UNREALIZED
APPRECIATION
PORTFOLIO APPRECIATION
DEPRECIATION (DEPRECIATION)
--------- ------------ ------------
--------------
<S> <C> <C>
<C>
Premier Growth..................................................... $ 2,157,787 $
(1,894,492) $ 263,295
Global Bond........................................................ 30,214 (151,286)
(121,072)
Growth and Income.................................................. 1,471,498
(1,610,024) (138,526)
Short-Term Multi-Market............................................ 89,229
(1,615,554) (1,526,325)
U.S. Government/High Grade Securities.............................. 506
(197,524) (197,018)
Total Return....................................................... 14,283 (22,904)
(8,621)
International...................................................... 148,894 (230,263)
(81,369)
Global Dollar Government........................................... 3,351
(56,072) (52,721)
North American Government Income................................... -0-
(715,741) (715,741)
Utility Income..................................................... 20,245 (53,208)
(32,963)
Growth Portfolio................................................... 319,888
(113,982) 205,906
Worldwide Privatization............................................ -0- -0-
-0-
Conservative Investors............................................. 3,659 (2,366)
1,293
Growth Investors................................................... 1,608 (5,501)
(3,893)
</TABLE>
At December 31, 1994, for federal income tax purposes, the Short-Term
Multi-Market and Money Market Portfolios had net capital loss carryforwards of
$160,415 (of which $9,593 expires in 2000 and $150,822 expires in 2002) and $483
(of which $10 expires in 2001 and $473 expires in 2002), respectively, and the
Global Bond, U.S. Government/High Grade Securities, Total Return, Global Dollar
Government, North American Government Income, Utility Income, Growth,
Conservative Investors and Growth Investors Portfolios had net capital loss
carryforwards of $154,419, $29,780, $2,456, $771, $12,931, $9,667, $43,194, $712
and $710, respectively, which all expire in 2002.
The Global Bond, Short-Term Multi-Market and International Portfolios enter into
forward exchange currency contracts in order to hedge their exposure to changes
in foreign currency exchange rates on their foreign portfolio holdings. A
forward contract is a commitment to purchase or sell a foreign currency at a
future date at a negotiated forward rate. The Portfolios may enter into
contracts to deliver or receive foreign currency it will receive from or require
for its normal investment activi-ties. It may also use contracts in a manner
intended to protect foreign currency-denominated securities from declines in
value due to unfavorable exchange rate movements. The gain or loss arising from
the difference
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONT'D)
-------------------------------------------------------------------------------
between the original contract and the closing of such contract is included in
realized gains or losses from foreign currency transactions. Fluctuations in the
value of forward exchange currency contracts are recorded for financial
reporting purposes as unrealized gains or losses by the Portfolio. Risks may
arise from the potential
inability of a counterparty to meet the terms of a contract and from
unanticipated movements in the value of a foreign currency relative to the U.S.
dollar. At December 31, 1994, the outstanding forward exchange currency
contracts were as follows:
<TABLE>
<CAPTION>
GLOBAL BOND PORTFOLIO:
CONTRACT COST ON
U.S.$
AMOUNT ORIGINATION
CURRENT UNREALIZED
FOREIGN CURRENCY SALE CONTRACTS (000)
DATE VALUE DEPRECIATION
------------------------------- ---------- -------------- -------
------------
<S> <C> <C> <C>
<C>
Deutsche Marks, expiring 1/30/95........................ 450 $ 287,908 $
290,528 $ 2,620
=========
<CAPTION>
SHORT-TERM MULTI-MARKET PORTFOLIO:
CONTRACT COST ON
U.S.$ UNREALIZED
AMOUNT ORIGINATION
CURRENT APPRECIATION
FOREIGN CURRENCY BUY CONTRACTS (000) DATE
VALUE (DEPRECIATION)
------------------------------ ---------- -------------- -------
--------------
<S> <C> <C> <C>
<C>
British Pounds, expiring 2/23/95........................ 616 $ 966,768 $
963,555 $ (3,213)
Canadian Dollars, expiring 1/30/95-4/17/95.............. 2,528 1,822,944
1,801,767 (21,177)
Deutsche Marks, expiring 2/21/95-2/23/95................ 3,842 2,492,151
2,481,594 (10,557)
Finnish Markka, expiring 1/9/95-1/17/95................. 4,945 1,040,929
1,044,147 3,218
French Francs, expiring 1/31/95......................... 3,331 615,334
623,764 8,430
Indonesian Rupiahs, expiring 3/7/95..................... 440,602 195,840
198,066 2,226
New Zealand Dollars, expiring 1/24/95................... 1,783 1,083,775
1,139,520 55,745
Spanish Pesetas, expiring 1/23/95....................... 164,557 1,248,504
1,249,039 535
FOREIGN CURRENCY SALE CONTRACTS
Australian Dollars, expiring 1/20/95.................... 1318 969,376
1,021,599 (52,223)
Belgian Francs, expiring 1/11/95-1/26/95................ 51,033 1,637,243
1,604,436 32,807
Deutsche Marks, expiring 2/21/95-2/23/95................ 2,512 1,608,484
1,622,376 (13,892)
Finnish Markka, expiring 1/9/95-1/17/95................. 5,155 1,107,017
1,088,121 18,896
French Francs, expiring 1/31/95......................... 3,331 649,533
623,601 25,932
New Zealand Dollars, expiring 1/24/95................... 847 521,074
541,416 (20,342)
Spanish Pesetas, expiring 1/23/95....................... 156,803 1,209,899
1,189,838 20,061
Swedish Krona, expiring 1/23/95-1/31/95................. 13,590 1,830,486
1,826,482 4,004
---------
$ 50,450
=========
<CAPTION>
INTERNATIONAL PORTFOLIO:
CONTRACT COST ON
U.S.$
AMOUNT ORIGINATION
CURRENT UNREALIZED
FOREIGN CURRENCY SALE CONTRACTS (000)
DATE VALUE DEPRECIATION
------------------------------- ---------- -------------- -------
------------
<S> <C> <C> <C>
<C>
Deutsche Marks, expiring 2/28/95........................ 300 $ 191,914 $
193,806 $ 1,892
=========
</TABLE>
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONT'D)
-------------------------------------------------------------------------------
Transactions in currency call and put options written by the Short-Term
Multi-Market Portfolio for the year ended December 31, 1994 were as follows:
<TABLE>
<CAPTION>
NUMBER OF
CONTRACTS
PREMIUMS
----------
----------
<S> <C>
<C>
Options outstanding at beginning of year................................................
-0- $ -0-
Options written......................................................................... 4
11,662
Options terminated in closing purchase transactions.....................................
-0- -0-
Options expired......................................................................... (4)
(11,662)
Options exercised....................................................................... -0-
-0-
---
---
Options outstanding at December 31, 1994 ...............................................
-0- $ -0-
===
==========
</TABLE>
-------------------------------------------------------------------------------
NOTE D -- CAPITAL STOCK
There are 900,000,000 shares of capital stock, $.001 par value per share of the
Fund authorized. Transactions in capital stock were as follows:
<TABLE>
<CAPTION>
PREMIER GROWTH
PORTFOLIO
-------------------------------------------------------------
SHARES
AMOUNT
---------------------------
---------------------------
YEAR ENDED YEAR ENDED
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
DECEMBER 31, DECEMBER 31,
1994 1993 1994
1993
--------------------------------
--------------------------
<S> <C> <C>
<C> <C>
Shares sold.......................................... 2,158,503 889,167 $
27,040,995 $ 10,571,023
Shares issued in reinvestment of dividends
and distributions................................. 6,295 1,643
76,606 19,389
Shares redeemed...................................... (187,942) (153,728)
(2,344,147) (1,748,395)
-------- -------- ----------
----------
Net increase......................................... 1,976,856 737,082 $
24,773,454 $ 8,842,017
========= =======
============= =============
<CAPTION>
GLOBAL
BOND PORTFOLIO
-------------------------------------------------------------
SHARES
AMOUNT
--------------------------------
---------------------------
YEAR ENDED YEAR ENDED
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
DECEMBER 31, DECEMBER 31,
1994 1993 1994
1993
-------------- ---------------- -------------
------------
<S> <C> <C>
<C> <C>
Shares sold.......................................... 99,445 18,949 $
1,004,475 $ 213,273
Shares issued in reinvestment of dividends
and distributions................................. 57,681 54,146
565,272 585,865
Shares redeemed...................................... (9,522) (334)
(101,398) (3,830)
------ ---- --------
------
Net increase......................................... 147,604 72,761 $
1,468,349 $ 795,308
======= ======
============ ============
</TABLE>
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONT'D)
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GROWTH AND INCOME
PORTFOLIO
-------------------------------------------------------------
SHARES
AMOUNT
--------------------------------
---------------------------
YEAR ENDED YEAR ENDED
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
DECEMBER 31, DECEMBER 31,
1994 1993 1994
1993
--------------------------------
--------------------------
<S> <C> <C>
<C> <C>
Shares sold.......................................... 1,938,671 1,270,247 $
23,400,005 $ 14,712,220
Shares issued in reinvestment of dividends
and distributions................................. 65,234 10,969
761,935 126,368
Shares redeemed...................................... (355,050) (122,326)
(4,211,657) (1,444,135)
-------- -------- ----------
----------
Net increase......................................... 1,648,855 1,158,890 $
19,950,283 $ 13,394,453
=========
========= = ========== = ==========
<CAPTION>
SHORT-TERM MULTI-MARKET
PORTFOLIO
------------------------------------------------------------
SHARES
AMOUNT
--------------------------------
--------------------------
YEAR ENDED YEAR ENDED
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
DECEMBER 31, DECEMBER 31,
1994 1993 1994
1993
-------------- ----------------- --------------
----------
<S>
Shares sold.......................................... 2,182,196 1,712,885 $
23,826,681 $ 18,917,712
Shares issued in reinvestment of dividends
and distributions................................. 100,584 61,354
1,058,151 671,209
Shares redeemed...................................... (2,298,689) (1,025,075)
(24,973,632) (11,291,992)
---------- ---------- -----------
-----------
Net increase (decrease).............................. (15,909) 749,164 $
(88,801) $ 8,296,929
==========
========== ============ ============
<CAPTION>
U.S. GOVERNMENT/HIGH
GRADE SECURITIES PORTFOLI
--------------------------------------------------------------
SHARES
AMOUNT
---------------------------------
----------------------------
YEAR ENDED YEAR ENDED
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
DECEMBER 31, DECEMBER 31,
1994 1993 1994
1993
--------------- ---------------- ---------------
------------
<S> <C> <C>
<C> <C>
Shares sold.......................................... 518,614 124,778 $
5,232,257 $ 1,316,230
Shares issued in reinvestment of dividends
and distributions................................. 8,852 817
88,339 8,681
Shares redeemed...................................... (140,052) (78,982)
(1,416,646) (838,983)
-------- ------- ------------
------------
Net increase......................................... 387,414 46,613 $
3,903,950 $ 485,928
======== =======
============ ============
<CAPTION>
TOTAL RETURN
PORTFOLIO
------------------------------------------------------------
SHARES
AMOUNT
-------------------------------
---------------------------
YEAR ENDED YEAR ENDED
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
DECEMBER 31, DECEMBER 31,
1994 1993 1994
1993
-------------- ----------------- --------------
----------
<S> <C> <C>
<C> <C>
Shares sold.......................................... 69,761 26,302 $
736,467 $ 278,320
Shares issued in reinvestment of dividends
and distributions................................. 583 -0- 6,076
-0-
Shares redeemed...................................... (31,120) (3,003)
(329,715) (32,455)
------- ------ --------
-------
Net increase......................................... 39,224 23,299 $
412,828 $ 245,865
====== ======
============ ============
</TABLE>
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONT'D)
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL
PORTFOLIO
--------------------------------------------------------------
SHARES
AMOUNT
---------------------------------
-----------------------------
YEAR ENDED YEAR ENDED
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
DECEMBER 31, DECEMBER 31,
1994 1993 1994
1993
--------------------------------
--------------------------
<S> <C> <C>
<C> <C>
Shares sold.......................................... 547,184 49,958 $
7,176,460 $ 589,918
Shares issued in reinvestment of dividends
and distributions................................. 1,015 -0- 13,070
-0-
Shares redeemed...................................... (39,868) (1,343)
(527,107) (15,657)
------- ------ --------
-------
Net increase......................................... 508,331 48,615 $
6,662,423 $ 574,261
======= ======
============ ============
<CAPTION>
MONEY MARKET
PORTFOLIO
--------------------------------------------------------------
SHARES
AMOUNT
---------------------------------
-----------------------------
YEAR ENDED YEAR ENDED
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
DECEMBER 31, DECEMBER 31,
1994 1993 1994
1993
--------------------------------
--------------------------
<S> <C> <C>
<C> <C>
Shares sold.......................................... 14,471,656 597,121 $
14,471,656 $ 597,121
Shares issued in reinvestment of dividends........... 82,845 1,851
82,845 1,851
Shares redeemed...................................... (7,757,276) (527,428)
(7,757,276) (527,428)
---------- -------- ----------
--------
Net increase......................................... 6,797,225 71,544 $
6,797,225 $ 71,544
========= ======
============ ============
<CAPTION>
NORTH
AMERICAN
GLOBAL DOLLAR
GOVERNMENT
GOVERNMENT PORTFOLIO
INCOME PORTFOLIO
-------------------------------
-------------------------------
SHARES AMOUNT
SHARES AMOUNT
--------- ------- ---------
----------
MAY 2, 1994 (A) MAY
3, 1994 (A)
TO TO
DECEMBER 31, 1994
DECEMBER 31, 1994
---------------------------------
--------------------------------
<S> <C> <C>
<C> <C>
Shares sold.......................................... 118,322 $ 1,192,406
525,199 $ 5,263,041
Shares redeemed...................................... (1,820) (18,370)
(87,577) (827,824)
------ ------- -------
--------
Net increase......................................... 116,502 $ 1,174,036
437,622 $ 4,435,217
=======
============ ======= ============
<CAPTION>
UTILITY
GROWTH
INCOME PORTFOLIO
PORTFOLIO
--------------------------------
-----------------------------
SHARES AMOUNT
SHARES AMOUNT
-------------- ---------------- ----------------
------------
MAY 10, 1994 (A)
SEPTEMBER 15, 1994 (A)
TO TO
DECEMBER 31, 1994
DECEMBER 31, 1994
---------------------------------
-------------------------------
<S> <C> <C>
<C> <C>
Shares sold.......................................... 130,903 $ 1,329,004
525,636 $ 5,364,669
Shares redeemed...................................... (4,924) (50,958)
(4,023) (41,280)
------ ------- ------
-------
Net increase......................................... 125,979 $ 1,278,046
521,613 $ 5,323,389
=======
============ ======= ===========
</TABLE>
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONT'D)
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
WORLDWIDE
CONSERVATIVE
PRIVATIZATION PORTFOLIO
INVESTORS PORTFOLIO
--------------------------------
-------------------------------
SHARES AMOUNT
SHARES AMOUNT
----------- --------- ---------------
--------
SEPTEMBER 23, 1994 (A)
OCTOBER 28, 1994 (A)
TO TO
DECEMBER 31, 1994
DECEMBER 31, 1994
---------------------------------
-------------------------
<S> <C> <C>
<C> <C>
Shares sold.......................................... 111,619 $ 1,120,370
71,574 $ 716,743
Shares redeemed...................................... (49) (492) (1,993)
(19,894)
--- ---- ------
-------
Net increase......................................... 111,570 $ 1,119,878
69,581 $ 696,849
=======
============ ====== ===========
<CAPTION>
GROWTH
INVESTORS PORTFOLIO
-----------------------
SHARES AMOUNT
------- ---------
OCTOBER 28, 1994 (A)
TO
DECEMBER 31, 1994
-------------------------
<S> <C> <C>
Shares sold.......................................... 34,433 $ 342,801
Shares redeemed...................................... (1,884) (18,467)
------ -------
Net increase......................................... 32,549 $ 324,334
======
============
</TABLE>
-------------------------------------------------------------------------------
(a) Commencement of operations.
NOTE E -- RECLASSIFICATION OF COMPONENTS OF NET ASSETS
During the year ended December 31, 1994, the Fund adopted Statement of Position
93-2 Determination, Disclosure, and Financial Statement Presentation of Income,
Capital Gain, and Return of Capital Distributions by Investment Companies.
Accordingly, permanent book and tax basis differences relating to shareholder
distributions have been reclassified to additional paid in capital. As of the
beginning of the current period, the cumulative effect of such differences have
been restated as follows:
<TABLE>
<CAPTION>
GLOBAL GROWTH AND
SHORT-TERM TOTAL
BOND INCOME
MULTI-MARKET RETURN
PORTFOLIO PORTFOLIO
PORTFOLIO PORTFOLIO
--------- ----------- ------------
---------
<S> <C> <C>
<C> <C>
Paid-in capital...................................... $ -0- $ 711 $
(309,420) $ (780)
Undistributed net investment income.................. (257,812) (2,825)
(2,031,858) 780
Undistributed net realized gains..................... 257,812 2,114
2,341,278 -0-
<CAPTION>
NORTH
AMERICAN
MONEY
GOVERNMENT UTILITY
INTERNATIONAL MARKET
INCOME INCOME
PORTFOLIO PORTFOLIO
PORTFOLIO PORTFOLIO
------------- --------- ----------------
----------
<S> <C> <C>
<C> <C>
Paid-in capital...................................... $ (785) $ (803) $
-0- $ -0-
Undistributed net investment income.................. 226 803
(4,051) (17)
Undistributed net realized gains..................... 559 -0-
4,051 17
</TABLE>
Net investment income, net realized gains and net assets were not affected by
the change.
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING
THROUGHOUT EACH PERIOD
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PREMIER GROWTH
PORTFOLIO
-------------------------------------------------------
YEAR ENDED DECEMBER 31,
JUNE 26, 1992(A)
--------------------------
TO
1994 1993
DECEMBER 31, 1992
----- ----
-----------------
<S> <C>
<C> <C>
Net asset value, beginning of period......................... $ 12.79 $ 11.38
$ 10.00
---------- ----------
----------
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b)................................. .03(c) -0-(c)
.06(c)
Net realized and unrealized gain (loss) on investments.... (.41)
1.43 1.32
---------- ----------
----------
Net increase (decrease) in net asset value from operations (.38)
1.43 1.38
---------- ----------
----------
LESS: DISTRIBUTIONS
Dividends from net investment income...................... (.01) (.01)
-0-
Distributions from net realized gains..................... (.03) (.01)
-0-
---------- ----------
----------
Total dividends and distributions......................... (.04) (.02)
-0-
---------- ----------
----------
Net asset value, end of period............................ $ 12.37 $ 12.79
$ 11.38
==========
========== ==========
TOTAL RETURNS
Total investment return based on net asset value (d)...... (2.96)%
12.63% 13.80%(e)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted)................. $37,669 $13,659
$3,760
Ratio to average net assets of:
Expenses, net of waivers and reimbursements............. .95%
1.18% .95%(f)
Expenses, before waivers and reimbursements............. 1.40%
2.05% 4.20%(f)
Net investment income................................... .42% .22%
.96%(f)
Portfolio turnover rate................................... 38% 42%
14%
<CAPTION>
GLOBAL BOND
PORTFOLIO
YEAR ENDED DECEMBER
31, JULY 15, 1991(A)
----------------------------------
TO
1994 1993 1992
DECEMBER 31, 1991
----- ---- ----
-------------------
<S> <C> <C>
<C> <C>
Net asset value, beginning of period......................... $ 11.33 $ 11.24 $
11.10 $ 10.00
---------- ---------- ---------
---------
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b)................................. .57(c) .77(c)
.64 .28
Net realized and unrealized gain (loss) on investments
and foreign currency transactions....................... (1.16) .43
(.13) .82
---------- ---------- ---------
---------
Net increase (decrease) in net asset value from operations (.59) 1.20
.51 1.10
---------- ---------- ---------
---------
LESS: DISTRIBUTIONS
Dividends from net investment income...................... (.62) (.85)
(.28) -0-
Distributions from net realized gains..................... (.30) (.26)
(.09) -0-
---------- ---------- ----------
---------
Total dividends and distributions......................... (.92) (1.11)
(.37) -0-
---------- ---------- ---------
---------
Net asset value, end of period............................ $ 9.82 $ 11.33 $
11.24 $ 11.10
==========
========== ========= =========
TOTAL RETURNS
Total investment return based on net asset value (d)...... (5.16)% 11.15%
4.87% 11.00%(e)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted)................. $7,298 $6,748
$5,876 $5,551
Ratio to average net assets of:
Expenses, net of waivers and reimbursements............. .95% 1.50%
1.50% 1.50%(f)
Expenses, before waivers and reimbursements............. 2.05% 1.50%
1.97% 2.15%(f)
Net investment income................................... 6.01% 4.85%
5.85% 5.77%(f)
Portfolio turnover rate................................... 102% 125%
78% 25%
</TABLE>
------------------------------------------------------------------------------
(a) Commencement of operations.
(b) Net of expenses reimbursed or waived by the investment advisor.
(c) Based on average shares outstanding.
(d) Total investment return is calculated assuming an initial investment made at
the net asset value at the beginning of the period, reinvestment of all
dividends and distributions at net asset value during the period, and
redemption on the last day of the period.
(e) Total investment return calculated for a period of less than one year is not
annualized.
(f) Annualized.
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING
THROUGHOUT EACH PERIOD
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GROWTH AND
INCOME PORTFOLIO
---------------------------------------------------------
JANUARY 14, 1991(A)
YEAR ENDED DECEMBER
31, TO
1994 1993 1992
DECEMBER 31, 1991
----- ------ ------
------------------
<S> <C> <C>
<C> <C>
Net asset value, beginning of period......................... $ 12.18 $ 10.99 $
10.35 $ 10.00
------- ------- --------
-------
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b)................................. .10(c) .01(c)
.10(c) .35(c)
Net realized and unrealized gain (loss) on investments.... (.16) 1.27
.71 -0-
------- ------- --------
-------
Net increase (decrease) in net asset value from operations (.06) 1.28
.81 .35
------- ------- --------
-------
LESS: DISTRIBUTIONS
Dividends from net investment income...................... (.10) (.06)
(.17) -0-
Distributions from net realized gains..................... (.17) (.03) -0-
-0-
------- ------- --------
-------
Total dividends and distributions......................... (.27) (.09) (.17)
-0-
------- ------- -------
-------
Net asset value, end of period............................ $ 11.85 $ 12.18 $
10.99 $ 10.35
======= =======
======= =======
TOTAL RETURNS
Total investment return based on net asset value (d)...... (.35)% 11.69%
7.92% 3.50%(e)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted)................. $41,702 $22,756
$7,803 $1,431
Ratio to average net assets of:
Expenses, net of waivers and reimbursements............. .90% 1.18%
.99% 1.79%(f)
Expenses, before waivers and reimbursements............. .91% 1.28%
2.09% 9.43%(f)
Net investment income................................... 1.71% 1.76%
2.42% 3.59%(f)
Portfolio turnover rate................................... 95% 69%
49% 0%
<CAPTION>
SHORT-TERM
MULTI-MARKETPORTFOLIO
-------------------------------------------------------------------
NOVEMBER 28, 1990(A)
YEAR ENDED DECEMBER 31,
TO
---------------------------------------------
1994 1993 1992 1991
DECEMBER 31, 1990
-------- -------- -------- --------
-----------------
<S> <C> <C> <C>
<C> <C>
Net asset value, beginning of period............. $ 11.07 $ 10.77 $ 10.68 $
10.03 $ 10.00
------- -------- ---------- ---------
---------
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b)..................... .47(c) .28(c) .63(c) .36
.03
Net realized and unrealized gain (loss) on
investments and foreign currency transactions (1.16) .43 (.54)
.34 -0-
------- -------- ---------- ---------
---------
Net increase (decrease) in net asset value
from operations............................. (.69) .71 .09 .70
.03
------- -------- ---------- ---------
---------
LESS: DISTRIBUTIONS
Dividends from net investment income.......... (.46) (.41) -0-
(.03) -0-
Distributions from net realized gains......... -0- -0- -0- (.02)
-0-
Return of capital............................. (.01) -0- -0- -0-
-0-
------- -------- ---------- ---------
---------
Total dividends and distributions............. (.47) (.41) -0- (.05)
-0-
------- -------- ---------- ---------
---------
Net asset value, end of period................ $ 9.91 $ 11.07 $ 10.77 $
10.68 $ 10.03
======= =========
========== ========= =========
TOTAL RETURN
Total investment return based on
net asset value (d)......................... (6.51)% 6.62% .84%
7.01% .30%(e)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted)..... $20,921 $23,560 $14,841
$5,858 $296
Ratio to average net assets of:
Expenses, net of waivers and reimbursements. .94% 1.17% .99%
1.79% 2.50%(f)
Expenses, before waivers and reimbursements. .99% 1.24% 1.66%
4.40% 10.62%(f)
Net investment income....................... 6.52% 6.39% 7.18%
7.53% 5.76%(f)
Portfolio turnover rate....................... 134% 210% 153%
51% 0%
-----------------------------------------------------------------------------------------------------------
---------------------
<FN>
(a) Commencement of operations.
(b) Net of expenses reimbursed by the investment adviser.
(c) Based on average shares outstanding.
(d) Total investment return is calculated assuming an initial investment made at
the net asset value at the beginning of the period, reinvestment of all
dividends and distributions at net asset value during the period, and
redemption on the last day of the period.
(e) Total investment return calculated for a period of less than one year is not annualized.
(f) Annualized.
</TABLE>
62
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING
THROUGHOUT EACH PERIOD
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S. GOVERNMENT/HIGH
GRADE SECURITIES PORTFOLIO
---------------------------------------------------------------
YEAR ENDED DECEMBER 31,
SEPTEMBER 17, 1992(A)
---------------------------------
TO
1994 1993
DECEMBER 31, 1992
---- ----
------------------------
<S> <C> <C>
<C>
Net asset value, beginning of period......................... $ 10.72 $ 9.89
$ 10.00
------- ----------
---------
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b)................................. .28(c) .43(c)
.14(c)
Net realized and unrealized gain (loss) on investments.... (.71) .48
(.25)
------- ----------
---------
Net increase (decrease) in net asset value from operations (.43) .91
(.11)
------- ----------
---------
LESS: DISTRIBUTIONS
Dividends from net investment income...................... (.21) (.08)
-0-
Distributions from net realized gains..................... (.14) -0-
-0-
------- ----------
---------
Total dividends and distributions......................... (.35) (.08)
-0-
------- ----------
---------
Net asset value, end of period............................ $ 9.94 $ 10.72
$ 9.89
=======
========== =========
TOTAL RETURNS
Total investment return based on net asset value (d)...... (4.03)%
9.20% (1.10%)(e)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted)................. $5,101 $1,350
$785
Ratio to average net assets of:
Expenses, net of waivers and reimbursements............. .95%
1.16% .95%(f)
Expenses, before waivers and reimbursements............. 3.73%
5.42% 11.56%(f)
Net investment income................................... 5.64% 4.59%
4.82%(f)
Portfolio turnover rate................................... 32% 177%
13%
<CAPTION>
TOTAL RETURN
PORTFOLIO
------------------------------------------------------------
YEAR ENDED DECEMBER 31,
DECEMBER 28, 1992(A)
------------------------
TO
1994 1993
DECEMBER 31, 1992
---- ----
----------------------
<S> <C> <C>
<C>
Net asset value, beginning of period......................... $ 10.97 $ 10.01
$ 10.00
---------- ----------
---------
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b)................................. .15(c) .15(c)
.01
Net realized and unrealized gain (loss) on investments.... (.56)
.81 -0-
---------- ----------
---------
Net increase (decrease) in net asset value from operations (.41)
.96 .01
---------- ----------
---------
LESS: DISTRIBUTIONS
Dividends from net investment income...................... (.09)
-0- -0-
Distributions from net realized gains..................... (.06) -0-
-0-
---------- ----------
---------
Total dividends and distributions......................... (.15) -0-
-0-
---------- ----------
---------
Net asset value, end of period............................ $ 10.41 $ 10.97
$ 10.01
==========
========== =========
TOTAL RETURNS
Total investment return based on net asset value (d)...... (3.77)%
9.59% .10%(e)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted)................. $750 $360
$95
Ratio to average net assets of:
Expenses, net of waivers and reimbursements............. .95%
1.20% 0%
Expenses, before waivers and reimbursements............. 19.49%
25.96% 0%
Net investment income................................... 2.29% 1.45%
2.21%(f)
Portfolio turnover rate................................... 83% 25%
0%
-----------------------------------------------------------------------------------------------------------
--------------------
<FN>
(a) Commencement of operations.
(b) Net of expenses reimbursed or waived by the investment adviser.
(c) Based on average share outstanding.
(d) Total investment return is calculated assuming an initial investment made at
the net asset value at the beginning of the period, reinvestment of all
dividends and distributions at net asset value during the period, and
redemption on the last day of the period.
(e) Total investment return calculated for a period of less than one year is not annualized.
(f) Annualized.
</TABLE>
63
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING
THROUGHOUT EACH PERIOD
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL
PORTFOLIO
---------------------------------------------------------------
YEAR ENDED DECEMBER 31,
DECEMBER 28, 1992(A)
-----------------------------------
TO
1994 1993
DECEMBER 31, 1992
---- ----
----------------------
<S> <C> <C>
<C>
Net asset value, beginning of period......................... $ 12.16 $ 10.00
$ 10.00
---------- ----------
---------
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b)................................. .10(c) .03(c)
-0-
Net realized and unrealized gain on investments and
foreign currency transactions........................... .72(d) 2.13
-0-
---------- ----------
---------
Net increase in net asset value from operations........... .82 2.16
-0-
---------- ----------
---------
LESS: DISTRIBUTIONS
Dividends from net investment income...................... (.02)
-0- -0-
Distributions from net realized gains..................... (.08) -0-
-0-
---------- ----------
---------
Total dividends and distributions......................... (.10) -0-
-0-
---------- ----------
---------
Net asset value, end of period............................ $ 12.88 $ 12.16
$ 10.00
==========
========== =========
TOTAL RETURN
Total investment return based on net asset value (e)...... 6.70%
21.60% 0%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted)................. $7,276 $688
$79
Ratio to average net assets of:
Expenses, net of waivers and reimbursements............. .95%
1.20% 0%
Expenses, before waivers and reimbursements............. 7.26%
39.28% 0%
Net investment income................................... .90% .26%
2.07%(g)
Portfolio turnover rate................................... 95% 85%
0%
<CAPTION>
MONEY MARKET
PORTFOLIO
--------------------------------------------------------------
YEAR ENDED DECEMBER 31,
DECEMBER 28, 1992(A)
------------------------------
TO
1994 1993
DECEMBER 31, 1992
---- ----
-------------------------
<S> <C> <C>
<C>
Net asset value, beginning of period......................... $ 1.00 $ 1.00
$ 1.00
--------- ----------
---------
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b)................................. .03 .22
-0-
Net realized and unrealized gain on investments........... -0- -0-
-0-
--------- ----------
---------
Net increase in net asset value from operations........... .03 .22
-0-
--------- ----------
---------
LESS: DISTRIBUTIONS
Dividends from net investment income...................... (.03)
(.22) -0-
Distributions from net realized gains..................... -0- -0-
-0-
--------- ----------
---------
Total dividends and distributions......................... (.03) (.22)
-0-
--------- ----------
---------
Net asset value, end of period............................ $ 1.00 $ 1.00
$ 1.00
=========
========== =========
TOTAL RETURNS
Total investment return based on net asset value (e)...... 3.27%
2.25% .02%(f)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted)................. $6,899 $102
$30
Ratio to average net assets of:
Expenses, net of waivers and reimbursements............. .95%
1.16% 0%
Expenses, before waivers and reimbursements............. 4.46%
68.14% 0%
Net investment income................................... 3.98% 2.15%
3.05%(g)
Portfolio turnover rate................................... 0% 0%
0%
-----------------------------------------------------------------------------------------------------------
---------------
<FN>
(a) Commencement of operations.
(b) Net of expenses reimbursed by investment advisor.
(c) Based on average shares outstanding.
(d) The amount shown in this caption for a share outstanding throughout the
period may not accord with the change in realized and unrealized gains and
losses in the Portfolio securities for the period because of the timing of
sales and repurchases of Portfolio shares in relation to fluctuating market
values for the Portfolio.
(e) 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.
(f) Total investment return calculated for a period of less than one year is not annualized.
(g) Annualized.
</TABLE>
64
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING
THROUGHOUT EACH PERIOD
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NORTH AMERICAN
GLOBAL DOLLAR
GOVERNMENT
GOVERNMENT PORTFOLIO
INCOME PORTFOLIO
---------------------
----------------
MAY 2, 1994(A)
MAY 3, 1994(A)
TO
TO
DECEMBER 31, 1994
DECEMBER 31, 1994
-------------------
------------------
<S> <C>
<C>
Net asset value, beginning of period......................... $ 10.00
$ 10.00
-------
------
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b)................................. .36(c)
.50(c)
Net realized and unrealized loss on investments and
foreign currency transactions........................... (.52)
(1.71)
-------
------
Net decrease in net asset value from operations........... (.16)
(1.21)
-------
------
LESS: DISTRIBUTIONS
Dividends from net investment income...................... -0-
-0-
Distributions from net realized gains..................... -0-
-0-
---
---
Total dividends and distributions......................... -0-
-0-
---
---
Net asset value, end of period............................ $ 9.84
$ 8.79
=======
======
TOTAL RETURN
Total investment return based on net asset value(d)....... (1.60)%(e)
(12.10)%(e)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted)................. $1,146
$3,848
Ratio to average net assets of:
Expenses, net of waivers and reimbursements............. .95%(f)
.95%(f)
Expenses, before waivers and reimbursements............. 15.00%(f)
4.43%(f)
Net investment income................................... 6.02%(f)
8.49%(f)
Portfolio turnover rate................................... 9%
15%
<CAPTION>
UTILITY
GROWTH
INCOME PORTFOLIO
PORTFOLIO
----------------
---------------------
MAY 10, 1994(A)
SEPTEMBER 15, 1994(A)
TO
TO
DECEMBER 31, 1994
DECEMBER 31, 1994
-------------------
------------------
<S> <C>
<C>
Net asset value, beginning of period......................... $ 10.00
$ 10.00
----------
---------
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b)................................. .28(c)
.03(c)
Net realized and unrealized gain (loss) on investments.... (.32)
.50
----
---
Net increase (decrease) in net asset value from operations (.04)
.53
----
---
LESS: DISTRIBUTIONS
Dividends from net investment income...................... -0-
-0-
Distributions from net realized gains..................... -0-
-0-
---
---
Total dividends and distributions......................... -0-
-0-
---
---
Net asset value, end of period............................ $ 9.96
$ 10.53
==========
=========
TOTAL RETURN
Total investment return based on net asset value(d)....... (.40)%(e)
5.30%(e)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted)................. $1,254
$5,492
Ratio to average net assets of:
Expenses, net of waivers and reimbursements............. .95%(f)
.95%(f)
Expenses, before waivers and reimbursements............. 15.98%(f)
4.19%(f)
Net investment income................................... 4.62%(f)
1.17%(f)
Portfolio turnover rate................................... 31%
25%
-----------------------------------------------------------------------------------------------------------
----------------------
<FN>
(a) Commencement of operations.
(b) Net of expenses reimbursed by investment advisor.
(c) Based on average shares outstanding.
(d) Total investment return is calculated assuming an initial investment made at
the net asset value at the beginning of the period, reinvestment of all
dividends and distributions at net asset value during the period, and
redemption on the last day of the period.
(e) Total investment return calculated for a period of less than one year is not annualized.
(f) Annualized.
</TABLE>
65
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING
THROUGHOUT EACH PERIOD
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
WORLDWIDE
CONSERVATIVE
PRIVATIZATION PORTFOLIO
INVESTORS PORTFOLIO
-----------------------
-------------------
SEPTEMBER 23, 1994(A)
OCTOBER 28, 1994(A)
TO
TO
DECEMBER 31, 1994
DECEMBER 31, 1994
-------------------
------------------
<S> <C>
<C>
Net asset value, beginning of period......................... $ 10.00
$ 10.00
----------
---------
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b)................................. .10(c)
.06(c)
Net realized and unrealized gain on investments........... -0-
.01
----------
---------
Net increase in net asset value from operations........... .10
.07
----------
---------
LESS: DISTRIBUTIONS
Dividends from net investment income...................... -0-
-0-
Distributions from net realized gains..................... -0-
-0-
----------
---------
Total dividends and distributions......................... -0-
-0-
----------
---------
Net asset value, end of period............................ $ 10.10
$ 10.07
==========
=========
TOTAL RETURN
Total investment return based on net asset value(d)....... 1.00%(e)
0.70%(e)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted)................. $1,127
$701
Ratio to average net assets of:
Expenses, net of waivers and reimbursements............. .95%(f)
.95%(f)
Expenses, before waivers and reimbursements............. 18.47%(f)
20.35%(f)
Net investment income................................... 4.27%(f)
3.55%(f)
Portfolio turnover rate................................... 0%
2%
<CAPTION>
GROWTH
INVESTORS PORTFOLIO
-------------------
OCTOBER 28, 1994(A)
TO
DECEMBER 31, 1994
------------------
<S> <C>
Net asset value, beginning of period......................... $ 10.00
--------
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b)................................. .04(c)
Net realized and unrealized loss on investments........... (.18)
---------
Net decrease in net asset value from operations........... (.14)
--------
LESS: DISTRIBUTIONS
Dividends from net investment income...................... -0-
Distributions from net realized gains..................... -0-
--------
Total dividends and distributions......................... -0-
--------
Net asset value, end of period............................ $ 9.86
========
TOTAL RETURN
Total investment return based on net asset value(d)....... (1.40)%(e)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted)................. $321
Ratio to average net assets of:
Expenses, net of waivers and reimbursements............. .95%(f)
Expenses, before waivers and reimbursements............. 41.62%(f)
Net investment income................................... 2.29%(f)
Portfolio turnover rate................................... 3%
-----------------------------------------------------------------------------------------------------------
---------------------
<FN>
(a) Commencement of operations.
(b) Net of expenses reimbursed by investment advisor.
(c) Based on average shares outstanding.
(d) Total investment return is calculated assuming an initial investment made at
the net asset value at the beginning of the period, reinvestment of all
dividends and distributions at net asset value during the period, and
redemption on the last day of the period.
(e) Total investment return calculated for a period of less than one year is not annualized.
(f) Annualized.
</TABLE>
66
<PAGE>
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
-----------------------------------------------------------------------------
TO THE SHAREHOLDERS AND BOARD OF DIRECTORS
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
We have audited the accompanying statements of assets and liabilities,
including the portfolios of investments, of Alliance Variable Products
Series Fund, Inc., (the "Fund"), (comprising, respectively, the Premier
Growth (formerly the Growth Portfolio), Global Bond, Growth and Income,
Short-Term Multi-Market, U.S. Government/High Grade Securities, Total Return,
International, Money Market, Global Dollar Government, North American
Government Income, Utility Income, Growth, Worldwide Privatization,
Conservative Investors and Growth Investors Portfolios), as of
December 31, 1994, and the related statements of operations and changes in
net assets and the financial highlights for each of the periods indicated
therein. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audits to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of securities
owned as of December 31, 1994, by correspondence with the custodian and brokers
or other alternative procedures when replies from brokers were not received. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the respective Portfolios constituting Alliance Variable Products Series
Fund, Inc. at December 31, 1994, and the results of their operations, the
changes in their net assets and the financial highlights for each of the
indicated periods, in conformity with generally accepted accounting principles.
New York, New York
February 6, 1995
-----------------------------------------------------------------------------
FEDERAL INCOME TAX INFORMATION (UNAUDITED)
The following Portfolios of the Fund hereby designate the respective amounts
per share as long-term capital gain distributions during the taxable year
ended December 31, 1994:
PER SHARE
---------
Premier Growth $.013
Global Bond $.12
Growth and Income $.01
67
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
------------------------------------------------------------------------------
BOARD OF DIRECTORS
JOHN D. CARIFA, Chairman and President
RUTH BLOCK (1)
DAVID H. DIEVLER
JOHN H. DOBKIN (1)
WILLIAM H. FOULK, JR. (1)
DR. JAMES M. HESTER (1)
CLIFFORD L. MICHEL (1)
ROBERT C. WHITE (1)
OFFICERS
ALFRED L. HARRISON, Senior Vice President
WAYNE D. LYSKI, Senior Vice President
THOMAS M. PERKINS, Senior Vice President
ROBERT M. SINCHE, Senior Vice President
DOUGLAS J. PEEBLES, Vice President
EDMUND P. BERGAN, JR., Secretary
MARK D. GERSTEN, Treasurer & Chief Financial Officer
LAURA MAH, Controller
CUSTODIAN
STATE STREET BANK AND TRUST COMPANY
225 Franklin Street
Boston, MA 02110
DISTRIBUTOR
ALLIANCE FUND DISTRIBUTORS, INC.
1345 Avenue of the Americas
New York, NY 10105
INDEPENDENT AUDITORS
ERNST & YOUNG LLP
787 Seventh Avenue
New York, NY 10019
LEGAL COUNSEL
SEWARD & KISSEL
One Battery Park Plaza
New York, NY 10004
TRANSFER AGENT
ALLIANCE FUND SERVICES, INC.
P.O. Box 1520
Secaucus, NJ 07096-1520
Toll-free 1-(800) 221-5672
------------------------------------------------------------------------------
(1) Member of the Audit Committee.
68
