<PAGE>
As filed with the Securities and Exchange
Commission on October 10, 1996
File Nos. 33-18647
811-5398
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________________________
FORM N-1A
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF l933
Pre-Effective Amendment No.
Post-Effective Amendment No. 18 X
and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940
Amendment No. 19 X
____________________________________
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
(Exact Name of Registrant as Specified in Charter)
1345 Avenue of the Americas, New York, New York 10105
(Address of Principal Executive Office) (Zip Code)
Registrant's Telephone Number, including Area Code:
(800) 221-5672
____________________________________
EDMUND P. BERGAN, JR.
Alliance Capital Management L.P.
1345 Avenue of the Americas
New York, New York l0105
(Name and address of agent for service)
______________________________________
Copies of communications to:
Thomas G. MacDonald
Seward & Kissel
One Battery Park Plaza
New York, New York 10004
<PAGE>
It is proposed that this filing will become effective
(check appropriate box)
x immediately upon filing pursuant to paragraph (b)
_____ on (date), 1996 pursuant to paragraph (b)
_____ 60 days after filing pursuant to paragraph (a)(1)
_____ on (date) pursuant to paragraph (a)(1)
_____ 75 days after filing pursuant to paragraph (a)(2)
_____ on (date) pursuant to paragraph (a)(2) of rule 485.
If appropriate, check the following box:
_____ this post-effective amendment designates a new
effective date for a previously filed post-effective
amendment.
Registrant has registered an indefinite number of shares of
common stock pursuant to Rule 24f-2 under the Investment Company
Act of 1940. Registrant's Rule 24f-2 notice for its fiscal year
ended December 31, 1995 was filed on February 26, 1996 and
amended March 6, 1996.
2
<PAGE>
CROSS REFERENCE SHEET
(as required by Rule 404 (c))
N-1A ITEM NO. LOCATION IN PROSPECTUS
PART A
Item 1. Cover Page Cover Page
Item 2. Synopsis Expense Information
Item 3. Condensed Financial Information Financial Highlights
Item 4. General Description of Registrant Description of the Portfolios
Item 5. Management of the Fund Management of the Fund;
General Information
Item 6. Capital Stock and Other Securities General Information; Dividends,
Distributions and Taxes
Item 7. Purchase of Securities Being Offered Purchase and Redemption of
Shares; General Information
Item 8. Redemption or Repurchase Purchase and Redemption of
Shares; General Information
Item 9. Pending Legal Proceedings Not Applicable
PART B LOCATION IN STATEMENT
OF ADDITIONAL INFORMATION
Item 10. Cover Page Cover Page
Item 11. Table of Contents Cover Page
Item 12. General Information and History Management of the Fund;
General Information
Item 13. Investment Objectives and Policies Investment Policies and
Restrictions
3
<PAGE>
CROSS REFERENCE SHEET
(as required by Rule 404 (c))
PART B
(Continued)
Item 14. Management of the Fund Management of the Fund
Item 15. Control Persons and Principal
Holders of Securities Management of the Fund;
General Information
Item 16. Investment Advisory and Other
Services Management of the Fund
Item 17. Brokerage Allocation Portfolio Transactions
Item 18. Capital Stock and Other Securities General Information
Item 19. Purchase, Redemption and Pricing Purchase and
of Securities Being Offered Redemption of Shares;
Net Asset Value
Item 20. Tax Status Dividends, Distributions
and Taxes
Item 21. Underwriters General Information
Item 22. Calculation of Performance Data General Information
Item 23. Financial Statements Financial Statements; Report
of Independent Auditors
4
00250292.AY8
<PAGE>
Incorporated herein by reference is the prospectus of Alliance
Variable Products Series Fund, Inc. (the "Fund") contained in
Post-Effective Amendment No. 15 to the Fund's Registration
Statement on Form N-1A (File Nos. 33-18647 and 811-5398) filed
April 30, 1996, except with respect to any information contained
therein pertaining to the Technology Portfolio.
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
_________________________________________________________________
P.O. Box 1520, Secaucus, New Jersey 07096-1520
Toll Free (800) 221-5672
_________________________________________________________________
Alliance Variable Products Series Fund, Inc. (the
"Fund") is an open-end series investment company designed to fund
variable annuity contracts and variable life insurance policies
to be offered by the separate accounts of certain life insurance
companies.
_________________________________________________________________
TECHNOLOGY PORTFOLIO
_________________________________________________________________
The Technology Portfolio (the "Portfolio") seeks growth
of capital through investment in companies expected to benefit
from advances in technology. The Portfolio invests principally
in a diversified portfolio of securities of companies which use
technology extensively in the development of new or improved
products or processes.
(R) : This is a registered mark used under license from the
owner, Alliance Capital Management L.P.
_________________________________________________________________
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED
BY THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES
COMMISSION NOR HAS THE SECURITIES AND EXCHANGE COMMISSION OR ANY
STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY
OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.
PROSPECTUS/_____, 1996
Investors are advised to carefully read this Prospectus
and to retain it for future reference.
<PAGE>
_________________________________________________________________
PURCHASE INFORMATION
_________________________________________________________________
The Fund will offer and sell the Portfolio's shares only
to separate accounts of certain life insurance companies, for the
purpose of funding variable annuity contracts and variable life
insurance policies. Sales will be made without sales charge at
the Portfolio's per share net asset value. Further information
can be obtained from Alliance Fund Services, Inc. at the address
or telephone number shown above.
An investment in the Fund is not a deposit or obligation
of, or guaranteed or endorsed by, any bank and is not federally
insured by the Federal Deposit Insurance Corporation, the Federal
Reserve Board or any other agency.
_________________________________________________________________
ADDITIONAL INFORMATION
_________________________________________________________________
This Prospectus sets forth concisely the information
which a prospective investor should know about the Fund and the
Portfolio before applying for certain variable annuity contracts
and variable life insurance policies offered by participating
insurance companies. It should be read in conjunction with the
Prospectus of the separate account of the specific insurance
product which accompanies this Prospectus. A "Statement of
Additional Information" dated ___________, 1996, which provides a
further discussion of certain areas in this Prospectus and other
matters which may be of interest to some investors, has been
filed with the Securities and Exchange Commission and is
incorporated herein by reference. For a free copy, call or write
Alliance Fund Services, Inc. at the address or telephone number
shown above.
_________________________________________________________________
EXPENSE INFORMATION
_________________________________________________________________
Shareholder Transaction Expenses
The Fund has no sales load on purchases or reinvested
dividends, deferred sales load, redemption fee or exchange fee.
2
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Annual Portfolio Operating Expenses
(as a percentage of average net assets)
Management Fees.......................... 0%*
Other Expenses........................... .95%*
_____
Total Portfolio Operating Expenses......... .95%
=====
____________________
* Net of expense reimbursement
Example
You would pay the following expenses on a $1,000
investment, assuming a 5% annual return (cumulatively through the
end of each time period).
1 Year 3 Years 5 Years 10 Years
$10 $30 $52 $116
The purpose of the foregoing table is to assist the
investor in understanding the various costs and expenses that an
investor in the Fund will bear directly and indirectly. The
expenses listed in the table for the Portfolio are net of
voluntary expense reimbursements, which are not required to be
continued indefinitely; however, the Adviser intends to continue
such reimbursements for the foreseeable future. The estimated
expenses of the Portfolio, before expense reimbursement would be:
Management Fees -- 1.00%, Other Expenses -- 1.55% and Total
Operating Expenses -- 2.44%. The example should not be
considered representative of future expenses; actual expenses may
be greater or less than those shown.
3
<PAGE>
FINANCIAL HIGHLIGHTS
The following information as to net asset value, ratios
and certain supplemental data for the period shown below has not
been audited.
Technology Portfolio
January 11, 1996(a)
to
June 30, 1996
(unaudited)
Net asset value, beginning
of period $10.00
INCOME FROM INVESTMENT
OPERATIONS
Net investment income(b) .08(c)
Net realized and unrealized
loss on investments (.17)
Net decrease in net asset
value from operations (.09)
Net asset value, end
of period $9.91
TOTAL RETURN
Total investment return
based on net asset
value(d) (.90 )%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of
period (000's omitted) $12,170
Ratio to average
net assets of:
Expenses, net of waivers
and reimbursements .95%(e)
Expenses, before waivers
and reimbursements 1.85%(e)
Net investment income 1.96%(e)
Portfolio turnover
rate 11%
Average commission rate $.0625
paid (f)
___________________
(a) Commencement of operations.
4
<PAGE>
(b) Net of expenses reimbursed or waived 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. Total investment return calculated
for a period of less than one year is not annualized.
(e) Annualized.
(f) For fiscal years beginning on or after September 1, 1995, a
fund is required to disclose its average commission rate per
share for trades on which commissions are charged.
(g) 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 timing of sales and
repurchases of portfolio shares in relation to fluctuating
market values for the portfolio.
_________________________________________________________________
DESCRIPTION OF THE PORTFOLIO
_________________________________________________________________
Introduction to the Fund
The Fund was established as a corporation in Maryland.
The Fund is an open-end management investment company commonly
known as a "mutual fund" whose shares are offered in separate
series each referred to as a "portfolio." Because the Fund offers
multiple portfolios, it is known as a "series fund." Each
portfolio is a separate pool of assets constituting, in effect, a
separate fund with its own investment objectives and policies.
A shareholder in the Portfolio will be entitled to his
or her pro rata share of all dividends and distributions arising
from the Portfolio's assets and, upon redeeming shares of the
Portfolio, the shareholder will receive the then current net
asset value of the Portfolio represented by the redeemed shares.
(See "Purchase and Redemption of Shares"). While the Fund has no
present intention of doing so, the Fund is empowered to
establish, without shareholder approval, additional portfolios
which may have different investment objectives.
5
<PAGE>
The Fund currently has 18 other portfolios: the Money
Market Portfolio, the Premier Growth Portfolio, the Growth and
Income Portfolio, the U.S. Government/High Grade Securities
Portfolio, the High-Yield Portfolio, the Total Return Portfolio,
the International Portfolio, the Short-Term Multi-Market
Portfolio, the Global Bond Portfolio, the North American
Government Income Portfolio, the Global Dollar Government
Portfolio, the Utility Income Portfolio, the Conservative
Investors Portfolio, the Growth Investors Portfolio, the Growth
Portfolio, the Worldwide Privatization Portfolio and the Quasar
Portfolio.
The Fund is intended to serve as the investment medium
for variable annuity contracts and variable life insurance
policies to be offered by the separate accounts of certain life
insurance companies.
It is conceivable that in the future it may be
disadvantageous for variable annuity and variable life insurance
separate accounts to invest simultaneously in the Fund.
Currently, however, the Fund does not foresee any disadvantage to
the holders of variable annuity contracts and variable life
insurance policies arising from the fact that the interests of
the holders of such contracts and policies may differ.
Nevertheless, the Fund's Directors intend to monitor events in
order to identify any material irreconcilable conflicts which may
possibly arise and to determine what action, if any, should be
taken in response thereto.
The investment objectives and policies of the Portfolio
are set forth below. There can be, of course, no assurance that
the Portfolio will achieve its investment objectives.
Investment Objectives and Policies
General
The Portfolio is a diversified investment portfolio that
emphasizes growth of capital and invests for capital
appreciation, and only incidentally for current income. The
Portfolio invests primarily in securities of companies expected
to benefit from technological advances and improvements (i.e.,
companies that use technology extensively in the development of
new or improved products or processes). The Portfolio will
normally have at least 80% of its assets invested in the
securities of these companies. The Portfolio normally will have
substantially all its assets invested in equity securities, but
it also invests in debt securities offering an opportunity for
price appreciation. The Portfolio will invest in listed and
unlisted securities and U.S. and foreign securities, but it will
6
<PAGE>
not purchase a foreign security if as a result 10% or more of the
Portfolio's total assets would be invested in foreign securities.
The Portfolio's policy is to invest in any company and
industry and in any type of security with potential for capital
appreciation. It invests in well-known and established companies
and in new and unseasoned companies.
The Portfolio may maintain up to 15% of its net assets
in illiquid securities, lend portfolio securities equal in value
to not more than 30% of the Portfolio's total assets and invest
up to 10% of its total assets in foreign securities.
Options. In an effort to increase current income and to
reduce fluctuations in net asset value, the Portfolio intends to
write covered call options and purchase put and call options on
securities of the types in which it is permitted to invest that
are traded on U.S. and foreign securities exchanges. A call
option written by the Portfolio is "covered" if the Portfolio
(i) owns the underlying security covered by the call (ii) has an
absolute and immediate right to acquire that security without
additional cash consideration (or for additional cash
consideration held in a segregated account by the Fund's
Custodian) upon conversion or exchange of other portfolio
securities, or (iii) holds a call on the same security in the
same principal amount as the call written where the exercise
price of the call held (i) is equal to or less than the exercise
price of the call written or (ii) is greater than the exercise
price of the call written if the difference is maintained by the
Portfolio in cash and liquid high-grade debt securities in a
segregated account with the Fund's Custodian. The premium paid
by the purchaser of an option will reflect, among other things,
the relationship of the exercise price to the market price and
volatility of the underlying security, the remaining term of the
option, supply and demand and interest rates.
The Portfolio will not write uncovered call options and
will not write a call option if the premium to be received by the
Portfolio in doing so would not produce an annualized return of
at least 15% of the then current market value of the securities
subject to the option (without giving effect to commissions,
stock transfer taxes and other expenses that are deducted from
premium receipts). The Portfolio will not write a call option
if, as a result, the aggregate of the Portfolio's securities
subject to outstanding call options (valued at the lower of the
option price or market value of such securities) would exceed 15%
of the Portfolio's total assets or more than 10% of the
Portfolio's assets would be committed to call options that at the
time of sale have a remaining term of more than 100 days. The
aggregate cost of all outstanding options purchased and held by
7
<PAGE>
the Portfolio will at no time exceed 10% of the Portfolio's total
assets.
The Portfolio may purchase or write options on
securities of the types in which it is permitted to invest in
privately negotiated transactions. The Portfolio will effect
such transactions only with investment dealers and other
financial institutions (such as commercial banks or savings and
loan institutions) deemed creditworthy by the Adviser, and the
Adviser has adopted procedures for monitoring the
creditworthiness of such entities. Options purchased or written
by a Portfolio in negotiated transactions are illiquid and it may
not be possible for the Portfolio to effect a closing transaction
at a time when the Adviser believes it would be advantageous to
do so. See "Illiquid Securities." See Appendix A in the
Statement of Additional Information for a further discussion of
the use, risks and costs of option trading.
The Portfolio may purchase and sell exchange-traded
options on any securities index composed of the types of
securities in which it may invest. An option on a securities
index is similar to an option on a security except that, rather
than the right to take or make delivery of a security at a
specified price, an option on a securities index gives the holder
the right to receive, upon exercise of the option, an amount of
cash if the closing level of the chosen index is greater than (in
the case of a call) or less than (in the case of a put) the
exercise price of the option.
Rights and Warrants
The Portfolio may invest up to 10% of its total assets
in rights and warrants. The Portfolio will invest in rights and
warrants only if the underlying equity securities themselves are
deemed appropriate by the Adviser for inclusion in the Portfolio.
Rights and warrants entitle the holder to buy equity securities
at a specific price for a specific period of time. Rights are
similar to warrants except that they have a substantially shorter
duration. Rights and warrants may be considered more speculative
than certain other types of investments in that they do not
entitle a holder to dividends or voting rights with respect to
the underlying securities nor do they represent any rights in the
assets of the issuing company. The value of a warrant does not
necessarily change with the value of the underlying security,
although the value of a right or warrant may decline because of
an increase in the value of the underlying security, the passage
of time or a change in perception as to the potential of the
underlying security, or any combination thereof. If the market
price of the underlying security is below the exercise price set
forth in the warrant on the expiration date, the warrant will
8
<PAGE>
expire worthless. Moreover, a right or warrant ceases to have
value if it is not exercised prior to the expiration date.
For a further description of the Portfolio's investment policies
and techniques, see "Other Investment Policies and Techniques"
below.
OTHER INVESTMENT POLICIES AND TECHNIQUES
Loans of Portfolio Securities
The Portfolio may make secured loans of its portfolio
securities to brokers, dealers and financial institutions
provided that cash, U.S. Government securities, other liquid
high-quality debt securities or bank letters of credit equal to
at least 100% of the market value of the securities loaned is
deposited and maintained by the borrower with the Portfolio.
The risks in lending portfolio securities, as with other
extensions of credit, consist of possible loss of rights in the
collateral should the borrower fail financially. In determining
whether to lend securities to a particular borrower, the Adviser
(subject to review by the Directors) will consider all relevant
facts and circumstances, including the creditworthiness of the
borrower. While securities are on loan, the borrower will pay
the Portfolio any income earned thereon and the Portfolio may
invest any cash collateral in portfolio securities, thereby
earning additional income, or receive an agreed upon amount of
income from a borrower who has delivered equivalent collateral.
The Portfolio will have the right to regain record ownership of
loaned securities to exercise beneficial rights such as voting
rights, subscription rights and rights to dividends, interest or
other distributions. The Portfolio may pay reasonable finders',
administrative and custodial fees in connection with a loan. The
Directors will monitor the lending of securities by the
Portfolio. No more than 30% of the value of the assets of the
Portfolio may be loaned at any time, nor will the Portfolio lend
its portfolio securities to any officer, director, employee or
affiliate of either the Fund or the Adviser.
Foreign Securities
The Portfolio will not purchase a foreign security if
such purchase at the time thereof would cause 10% or more of the
value of the Portfolio's total assets to be invested in foreign
securities. To the extent the Portfolio invests in foreign
securities, consideration is given to certain factors comprising
both risk and opportunity. The values of foreign securities
investments are affected by changes in currency rates or exchange
control regulations, application of foreign tax laws, including
withholding taxes, changes in governmental administration or
9
<PAGE>
economic, taxation or monetary policy (in the United States and
abroad) or changed circumstances in dealings between nations.
Currency exchange rate movements will increase or reduce the U.S.
dollar value of the Portfolio's net assets and income
attributable to foreign securities. Costs are incurred in
connection with conversions between various currencies held by
the Portfolio. In addition, there may be substantially less
publicly available information about foreign issuers than about
domestic issuers, and foreign issuers may not be subject to
accounting, auditing and financial reporting standards and
requirements comparable to those of domestic issuers. Foreign
issuers are subject to accounting, auditing and financial
standards and requirements that differ, in some cases
significantly, from those applicable to U.S. issuers. In
particular, the assets and profits appearing on the financial
statements of a foreign issuer may not reflect its financial
position or results of operations in the way they would be
reflected had the financial statements been prepared in
accordance with U.S. generally accepted accounting principles.
In addition, for an issuer that keeps accounting records in local
currency, inflation accounting rules in some of the countries in
which the Portfolio will invest require, for both tax and
accounting purposes, that certain assets and liabilities be
restated on the issuer's balance sheet in order to express items
in terms of currency of constant purchasing power. Inflation
accounting may indirectly generate losses or profits.
Consequently, financial data may be materially affected by
restatements for inflation and may not accurately reflect the
real condition of those issuers and securities markets.
Securities of some foreign issuers are less liquid and more
volatile than securities of comparable domestic issuers, and
foreign brokerage commissions are generally higher than in the
United States. Foreign securities markets may also be less
liquid, more volatile, and less subject to governmental
supervision than in the United States. Investments in foreign
countries could be affected by other factors not present in the
United States, including expropriation, confiscatory taxation,
lack of uniform accounting and auditing standards and potential
difficulties in enforcing contractual obligations and could be
subject to extended settlement periods.
Illiquid Securities
The Portfolio may maintain no more than 15% of its net
assets in illiquid securities. For purposes of the Portfolio's
investment objectives and policies and investment restrictions,
illiquid securities include, among others, (a) direct placements
or other securities which are subject to legal or contractual
restrictions on resale or for which there is no readily available
market (e.g., trading in the security is suspended or, in the
case of unlisted securities, market makers do not exist or will
10
<PAGE>
not entertain bids or offers), (b) options purchased by the
Portfolio over-the-counter and the cover for options written by
the Portfolio over-the-counter, and (c) repurchase agreements not
terminable within seven days. Securities eligible for resale
under Rule 144A under the Securities Act of 1933, as amended,
that have legal or contractual restrictions on resale but have a
readily available market are not deemed illiquid for purposes of
this limitation. The Adviser will monitor the liquidity of such
securities under the supervision of the Board of Directors. See
the Statement of Additional Information for further discussion of
illiquid securities.
Portfolio Turnover
Generally, the Fund's policy with respect to turnover of
securities held in the Portfolio is to purchase securities for
investment purposes and not for the purpose of realizing short-
term trading profits or for the purpose of exercising control.
When circumstances warrant, however, securities may be sold
without regard to the length of time held. Although the Fund
cannot accurately predict its annual portfolio turnover rate, the
Adviser does not expect the annual rate of the Portfolio to
exceed 100%.
A high rate of portfolio turnover involves
correspondingly greater expenses than a lower rate, which
expenses must be borne by the Portfolio and its shareholders.
High portfolio turnover also may result in the realization of
substantial net short-term capital gains. In order to continue
to qualify as a regulated investment company for Federal tax
purposes, less than 30% of the annual gross income of a Portfolio
must be derived from the sale of securities held by the Portfolio
for less than three months. See "Dividends, Distributions and
Taxes."
Certain Fundamental Investment Policies
The Fund has adopted certain fundamental investment
policies applicable to the Portfolio which may not be changed
without the approval of the shareholders of the Portfolio.
Certain of those fundamental investment policies are set forth
below. For a complete listing of such fundamental investment
policies, see the Statement of Additional Information.
The Portfolio may not: (i) with respect to 75% of its
total assets, have such assets represented by other than:
(a) cash and cash items, (b) U.S. Government securities, or
(c) securities of any one issuer (other than the U.S. Government
and its agencies or instrumentalities) not greater in value than
5% of the Portfolio's total assets, and not more than 10% of the
outstanding voting securities of such issuer; (ii) purchase the
11
<PAGE>
securities of any one issuer, other than the U.S. Government and
its agencies or instrumentalities, if as a result (a) the value
of the holdings of the Portfolio in the securities of such issuer
exceeds 25% of its total assets, or (b) the Portfolio owns more
than 25% of the outstanding securities of any one class of
securities of such issuer; (iii) concentrate its investments in
any one industry, but the Portfolio has reserved the right to
invest up to 25% of its total assets in a particular industry;
and (iv) invest in the securities of any issuer which has a
record of less than three years of continuous operation
(including the operation of any predecessor) if such purchase
would cause 10% or more of its total assets to be invested in the
securities of such issuers.
In addition, the Fund has adopted an investment policy,
which is not designated a "fundamental policy" within the meaning
of the Act, of intending to have the Portfolio comply at all
times with the diversification requirements prescribed in
Section 817(h) of the Internal Revenue Code or any successor
thereto and the applicable Treasury Regulations thereunder. This
policy may be changed upon notice to shareholders of the Fund,
but without their approval.
_________________________________________________________________
MANAGEMENT OF THE FUND
_________________________________________________________________
Directors
John D. Carifa, Chairman of the Board and President, is
President of Alliance Capital Management Corporation ("ACMC"),
the sole general partner of the Adviser, with which he has been
associated since prior to 1991.
Ruth Block is a Director of Ecolab Incorporated
(specialty chemicals) and Amoco Corporation (oil and gas). She
was formerly an Executive Vice President and the Chief Insurance
Officer of The Equitable Life Assurance Society of the United
States since prior to 1991.
David H. Dievler was formerly President of the Fund, and
a Senior Vice President of ACMC, with which he has been
associated since prior to 1991.
John H. Dobkin is President of Historic Hudson Valley
(historic preservation) since prior to 1991. Previously, he was
Director of the National Academy of Design. From 1987 to 1992,
he was a Director of ACMC.
12
<PAGE>
William H. Foulk, Jr. was formerly a Senior Manager of
Barrett Associates, Inc., a registered investment adviser, with
which he has been associated since prior to 1991.
Dr. James M. Hester is President of the Harry Frank
Guggenheim Foundation and a Director of Union Carbide Corporation
since prior to 1991. He was formerly President of New York
University, The New York Botanical Garden and Rector of the
United Nations University.
Clifford L. Michel is a member of the law firm of Cahill
Gordon & Reindel, with which he has been associated since prior
to 1991.
Robert C. White is a Vice President and the Chief
Financial Officer of the Howard Hughes Medical Institute, with
which he has been associated since prior to 1991.
Adviser
Alliance Capital Management L.P. (the "Adviser"), a
Delaware limited partnership with principal offices at 1345
Avenue of the Americas, New York, New York 10105 has been
retained under an investment advisory agreement (the "Investment
Advisory Agreement") to provide investment advice and, in
general, to conduct the management and investment program of each
of the Fund's Portfolios subject to the general supervision and
control of the Board of Directors of the Fund. The employees of
the Adviser principally responsible for the Portfolio's
investment program since its inception are Peter Anastos and
Gerald T. Malone. Mr. Anastos has been associated with the
Adviser since prior to 1991 and Mr. Malone has been associated
with the Adviser since 1992. Prior thereto, Mr. Malone was
associated with College Retirement Equities Fund since prior to
1991.
The Adviser is a leading international investment
manager supervising client accounts with assets as of March 1,
1996 totaling more than $56 billion (of which more than $48
billion represented the assets of investment companies). The
Adviser's clients are primarily major corporate employee benefit
funds, public employee retirement systems, investment companies,
foundations and endowment funds. The 50 registered investment
companies managed by the Adviser comprising 107 separate
investment portfolios currently have over two million
shareholders. As of March 1, 1996, the Adviser was retained as
an investment manager by 34 of the Fortune 100 companies.
ACMC, the sole general partner of, and the owner of a 1%
general partnership interest in, the Adviser, is an indirect
wholly-owned subsidiary of The Equitable Life Assurance Society
13
<PAGE>
of the United States ("Equitable"), one of the largest life
insurance companies in the United States and a wholly owned
subsidiary of the Equitable Companies Incorporated, a holding
company which is controlled by AXA, a French insurance holding
company. Certain information concerning the ownership and
control of Equitable by AXA is set forth in the Statement of
Additional Information under "Management of the Fund."
The Adviser provides investment advisory services and
order placement facilities for each of the Fund's portfolios and
pays all compensation of Directors and officers of the Fund who
are affiliated persons of the Adviser. The Adviser or its
affiliates also furnish the Fund, without charge, management
supervision and assistance and office facilities and provide
persons satisfactory to the Fund's Board of Directors to serve as
the Fund's officers. The Portfolio pays the Adviser at an annual
rate of 1.00% of the average daily net asset value. The fees are
accrued daily and paid monthly. The Commission takes the
position that the rate of fees applicable to the Portfolio are
higher than those paid by most other investment companies;
however, the Adviser believes the fees are comparable to those
paid by investment companies of similar investment orientation.
Expenses of the Fund
In addition to the payments to the Adviser under the
Investment Advisory Agreement described above, the Fund pays
certain other costs including (a) custody, transfer and dividend
disbursing expenses, (b) fees of Directors who are not affiliated
with the Adviser, (c) legal and auditing expenses, (d) clerical,
accounting and other office costs, (e) costs of printing the
Fund's prospectuses and shareholder reports, (f) cost of
maintaining the Fund's existence, (g) interest charges, taxes,
brokerage fees and commissions, (h) costs of stationery and
supplies, (i) expenses and fees related to registration and
filing with the Commission and with state regulatory authorities,
and (j) cost of certain personnel of the Adviser or its
affiliates rendering clerical, accounting and other services to
the Fund.
As to the obtaining of clerical and accounting services
not required to be provided to the Fund by the Adviser under the
Investment Advisory Agreement, the Fund may employ its own
personnel. For such services, it may also utilize personnel
employed by the Adviser or by its affiliates; in such event, the
services are provided to the Fund at cost and the payments
specifically approved in advance by the Fund's Board of
Directors.
14
<PAGE>
_________________________________________________________________
PURCHASE AND REDEMPTION OF SHARES
_________________________________________________________________
Purchase of Shares
Shares of the Portfolio are offered on a continuous
basis directly by the Fund and by Alliance Fund Distributors,
Inc., the Fund's Principal Underwriter, to the separate accounts
of certain life insurance companies without any sales or other
charge, at the Portfolio's net asset value, as described below.
The separate accounts of insurance companies place orders to
purchase shares of the Portfolio based on, among other things,
the amount of premium payments to be invested and surrender and
transfer requests to be effected on that day pursuant to variable
annuity contracts and variable life insurance policies which are
funded by shares of the Portfolios. The Fund reserves the right
to suspend the sale of the Fund's shares in response to
conditions in the securities markets or for other reasons.
Individuals may not place orders directly with the Fund. See the
Prospectus of the separate account of the participating insurance
company for more information on the purchase of Portfolio shares.
The public offering price of the Portfolio's shares is
their net asset value. The per share net asset value of the
Portfolio is computed in accordance with the Fund's Articles of
Incorporation and By-Laws, at the next close of regular trading
on the New York Stock Exchange (the "Exchange") (currently 4:00
p.m. Eastern), following receipt of a purchase or redemption
order by the Fund, on each Fund business day on which such an
order is received and trading in the types of securities in which
the Fund invests might materially affect the value of Fund
shares. The Fund's per share net asset value is computed by
dividing the value of the Fund's total assets, less its
liabilities, by the total number of its shares then outstanding.
A Fund business day is any weekday exclusive of national holidays
on which the Exchange is closed (most national holidays and Good
Friday). For purposes of this computation, the securities in the
Portfolio are valued at their current market value determined on
the basis of market quotations or, if such quotations are not
readily available, such other methods as the Directors believe
would accurately reflect fair market value. Portfolio securities
may also be valued on the basis of prices provided by a pricing
service when such prices are believed by the Adviser to reflect
the fair market value of such securities.
15
<PAGE>
Redemption of Shares
An insurance company separate account may redeem all or
any portion of the shares of the Portfolio in its account at any
time at the net asset value per share of the Portfolio next
determined after a redemption request in proper form is furnished
to the Fund or the Principal Underwriter. Any certificates
representing shares being redeemed must be submitted with the
redemption request. Shares redeemed are entitled to earn
dividends, if any, up to and including the day redemption is
effected. There is no redemption charge. Payment of the
redemption price will normally be made within seven days after
receipt of such tender for redemption.
The right of redemption may be suspended or the date of
payment may be postponed for any period during which the Exchange
is closed (other than customary weekend and holiday closings) or
during which the Commission determines that trading thereon is
restricted, or for any period during which an emergency (as
determined by the Commission) exists as a result of which
disposal by the Fund of securities owned by the Portfolio is not
reasonably practicable or as a result of which it is not
reasonably practicable for the Fund fairly to determine the value
of the Portfolio's net assets, or for such other periods as the
Commission may by order permit for the protection of security
holders of the Fund.
_________________________________________________________________
DIVIDENDS, DISTRIBUTIONS AND TAXES
_________________________________________________________________
The Portfolio will declare and distribute dividends from
net investment income and will distribute its net capital gains,
if any, at least annually. Such income and capital gains
distributions will be made in shares of the Portfolio.
The Portfolio intends to qualify to be taxed as a
regulated investment company under Subchapter M of the Internal
Revenue Code (the "Code"). If so qualified, the Portfolio will
not be subject to Federal income or excise taxes on its
investment company taxable income and net capital gains to the
extent such investment company taxable income and net capital
gains are distributed to the separate accounts of insurance
companies which hold its shares. Under current tax law, capital
gains or dividends from the Portfolio are not currently taxable
when left to accumulate within a variable annuity (other than an
annuity interest owned by a person who is not a natural person)
or variable life insurance contract. Distributions of net
investment income and net short-term capital gain will be treated
as ordinary income and distributions of net long-term capital
16
<PAGE>
gain will be treated as long-term capital gain in the hands of
the insurance companies.
Section 817(h) of the Code requires that the investments
of a segregated asset account of an insurance company be
"adequately diversified," in accordance with Treasury Regulations
promulgated there-under, in order for the holders of the variable
annuity contracts or variable life insurance policies underlying
the account to receive the tax-deferred or tax-free treatment
generally afforded holders of annuities or life insurance
policies under the Code. The Department of the Treasury has
issued Regulations under section 817(h) which, among other
things, provide the manner in which a segregated asset account
will treat investments in a regulated investment company for
purposes of the applicable diversification requirements. Under
the Regulations, if a regulated investment company satisfies
certain conditions, a segregated asset account owning shares of
the regulated investment company will not be treated as a single
investment for these purposes, but rather the account will be
treated as owning its proportionate share of each of the assets
of the regulated investment company. The Portfolio plans to
satisfy these conditions at all times so that the shares of the
Portfolio owned by a segregated asset account of a life insurance
company will be subject to this treatment under the Code.
For information concerning federal income tax
consequences for the holders of variable annuity contracts and
variable rate insurance policies, such holders should consult the
prospectus used in connection with the issuance of their
particular contracts or policies.
_________________________________________________________________
GENERAL INFORMATION
_________________________________________________________________
Portfolio Transactions
Subject to the general supervision of the Board of
Directors of the Fund, the Adviser is responsible for the
investment decisions and the placing of the orders for portfolio
transactions for the Portfolio. Portfolio transactions for the
Portfolio are normally effected by brokers.
The Fund has no obligation to enter into transactions in
portfolio securities with any broker, dealer, issuer, underwriter
or other entity. In placing orders, it is the policy of the Fund
to obtain the best price and execution for its transactions.
Consistent with the objective of obtaining best execution, the
Fund may use brokers and dealers who provide research,
statistical and other information to the Adviser.
17
<PAGE>
There may be occasions where the transaction cost
charged by a broker may be greater than that which another broker
may charge if the Fund determines in good faith that the amount
of such transaction cost is reasonable in relation to the value
of the brokerage and research and statistical services provided
by the executing broker. Consistent with the Rules of Fair
Practice of the National Association of Securities Dealers, Inc.,
and subject to seeking best price and execution, the Fund may
consider sales of shares of the Fund as a factor in the selection
of brokers and dealers to enter into portfolio transactions with
the Fund.
The Fund may from time to time place orders for the
purchase or sale of securities on an agency basis with Donaldson,
Lufkin & Jenrette Securities Corporation, an affiliate of the
Adviser, and with brokers which may have their transactions
cleared or settled, or both, by the Pershing Division of
Donaldson, Lufkin and Jenrette Securities Corporation, for which
Donaldson, Lufkin and Jenrette Securities Corporation may receive
a portion of the brokerage commission. In such instances, the
placement of orders with such brokers would be consistent with
the Fund's objective of obtaining best execution and would not be
dependent upon the fact that Donaldson, Lufkin & Jenrette
Securities Corporation is an affiliate of the Adviser.
Organization
The Fund is a Maryland corporation organized on
November 17, 1987. The authorized capital stock of the Fund
consists solely of 9,000,000,000 shares of Common Stock having a
par value of $.001 per share, which may, without shareholder
approval, be divided into an unlimited number of series. Such
shares are currently divided into 17 series, one underlying each
portfolio. Shares of each portfolio are normally entitled to one
vote for all purposes. Generally, shares of all portfolios vote
as a single series on matters, such as the election of Directors,
that affect all portfolios in substantially the same manner.
Maryland law does not require a registered investment company to
hold annual meetings of shareholders and it is anticipated that
shareholder meetings will be held only when specifically required
by federal or state law. Shareholders have available certain
procedures for the removal of Directors. Shares of each
portfolio are freely transferable, are entitled to dividends as
determined by the Board of Directors and, in liquidation of the
Fund, are entitled to receive the net assets of that portfolio.
Shareholders have no preference, pre-emptive or conversion
rights. In accordance with current law, it is anticipated that
an insurance company issuing a variable annuity contract or
variable life insurance policy that participates in the Fund will
request voting instructions from contract or policyholders and
18
<PAGE>
will vote shares in the separate account in accordance with the
voting instructions received.
Principal Underwriter
Alliance Fund Distributors, Inc., 1345 Avenue of the
Americas, New York, New York 10105, an indirect wholly-owned
subsidiary of the Adviser, is the Principal Underwriter of shares
of the Fund.
Custodian
State Street Bank and Trust Company, 225 Franklin
Street, Boston, Massachusetts 02110, acts as Custodian for the
securities and cash of the Fund and as its dividend disbursing
agent, but plays no part in deciding on the purchase or sale of
portfolio securities.
Registrar and Dividend-Disbursing Agent
Alliance Fund Services, Inc., an indirect wholly-owned
subsidiary of the Adviser, located at 500 Plaza Drive, Secaucus,
New Jersey, 07094, acts as the Fund's registrar and dividend-
disbursing agent.
Additional Information
Any shareholder inquiries may be directed to Alliance
Fund Services, Inc. at the address or telephone number shown on
the front cover of this Prospectus. This Prospectus and the
Statement of Additional Information which has been incorporated
by reference herein, does not contain all the information set
forth in the Registration Statement filed by the Fund with the
Commission under the Securities Act of 1933, as amended. Copies
of the Registration Statement may be obtained at a reasonable
charge from the Commission or may be examined, without charge, at
the offices of the Commission in Washington, D.C.
This Prospectus does not constitute an offering in any
state in which such offering may not lawfully be made.
19
00250292.AY8
<PAGE>
Incorporated herein by reference is the statement of additional
information of Alliance Variable Products Series Fund, Inc. (the
"Fund") contained in Post-Effective Amendment No. 15 to the
Fund's Registration Statement on Form N-1A (File Nos. 33-18647
and 811-5398) filed April 30, 1996, except with respect to any
information contained therein pertaining to the Technology
Portfolio.
<PAGE>
ALLIANCE VARIABLE PRODUCTS
SERIES FUND, INC.
- Technology Portfolio
_________________________________________________________________
P. O. Box 1520, Secaucus, New Jersey 07096-1520
Toll Free (800) 221-5672
_________________________________________________________________
STATEMENT OF ADDITIONAL INFORMATION
____________, 1996
_________________________________________________________________
This Statement of Additional Information is not a
prospectus but supplements and should be read in conjunction with
the Portfolio's current Prospectus dated ____________ __, 1996.
Copies of such Prospectus may be obtained by contacting Alliance
Fund Services, Inc. at the address or telephone number shown
above.
TABLE OF CONTENTS
PAGE
Introduction
Investment Policies and Restrictions
Management of the Fund
Purchase and Redemption of Shares
Net Asset Value
Portfolio Transactions
Dividends, Distributions and Taxes
General Information
Appendix A: Options
(R): This registered service mark used under license from the
owner, Alliance Capital Management L.P.
<PAGE>
_________________________________________________________________
INTRODUCTION
_________________________________________________________________
The Technology Portfolio (the "Portfolio") is a
portfolio of the Alliance Variable Products Series Fund, Inc.
("the Fund"), an open-end series investment company designed to
fund variable annuity contracts and variable life insurance
policies offered by the separate accounts of certain life
insurance companies.
_________________________________________________________________
INVESTMENT POLICIES AND RESTRICTIONS
_________________________________________________________________
The following investment policies and restrictions
supplement, and should be read in conjunction with, the
information regarding the investment objectives, policies and
restrictions of the Portfolio set forth in the Portfolio's
Prospectus. Except as noted below, the investment policies
described below are not fundamental and may be changed by the
Board of Directors of the Fund without the approval of the
shareholders of the Portfolio; however, shareholders will be
notified prior to a material change in such policies.
Whenever any investment policy or restriction states a
minimum or maximum percentage of the Portfolio's assets which may
be invested in any security or other asset, it is intended that
such minimum or maximum percentage limitation be determined
immediately after and as a result of the Portfolio's acquisition
of such security or other asset. Accordingly, any later increase
or decrease in percentage beyond the specified limitations
resulting from a change in value or net assets will not be
considered a violation.
The primary investment objective of the Portfolio is to
emphasize growth of capital, and investments will be made based
upon their potential for capital appreciation. Therefore,
current income will be incidental to the objective of capital
growth. However, subject to the limitations referred to under
"Options" below, the Portfolio may seek to earn income through
the writing of listed call options. In seeking to achieve its
objective, the Portfolio will invest primarily in securities of
companies which are expected to benefit from technological
advances and improvements (i.e., companies which use technology
extensively in the development of new or improved products or
processes). The Portfolio will have at least 80% of its assets
invested in the securities of such companies except when the
Portfolio assumes a temporary defensive position. There
2
<PAGE>
obviously can be no assurance that the Portfolio's investment
objective will be achieved, and the nature of the Portfolio's
investment objective and policies may involve a somewhat greater
degree of risk than would be present in a more conservative
investment approach.
Except as otherwise indicated, the investment policies
of the Portfolio are not "fundamental policies" and may,
therefore, be changed by the Board of Directors without a
shareholder vote. However, the Portfolio will not change its
investment policies without contemporaneous written notice to its
shareholders. The Portfolio's investment objective, as well as
the Portfolio's 80% investment policy described above, may not be
changed without shareholder approval.
The Portfolio expects under normal circumstances to have
substantially all of its assets invested in equity securities
(common stocks or securities convertible into common stocks or
rights or warrants to subscribe for or purchase common stocks).
When business or financial conditions warrant, the Portfolio may
take a defensive position and invest without limit in investment
grade debt securities or preferred stocks or hold its assets in
cash. The Portfolio at times may also invest in debt securities
and preferred stocks offering an opportunity for price
appreciation (e.g., convertible debt securities).
Critical factors which will be considered in the
selection of securities will include the economic and political
outlook, the value of individual securities relative to other
investment alternatives, trends in the determinants of corporate
profits, and management capability and practices. Generally
speaking, disposal of a security will be based upon factors such
as (i) actual or potential deterioration of the issuer's earning
power which the Portfolio believes may adversely affect the price
of its securities, (ii) increases in the price level of the
security or of securities generally which the Portfolio believes
are not fully warranted by the issuer's earning power, and (iii)
changes in the relative opportunities offered by various
securities.
Companies in which the Portfolio will invest include
those whose processes, products or services are anticipated by
Alliance Capital Management L.P., the Portfolio's investment
adviser (the "Investment Adviser"), to be significantly benefited
by the utilization or commercial application of scientific
discoveries or developments in such fields as, for example,
aerospace, aerodynamics, astrophysics, biochemistry, chemistry,
communications, computers, conservation, electricity, electronics
(including radio, television and other media), energy (including
development, production and service activities), geology, health
3
<PAGE>
care, mechanical engineering, medicine, metallurgy, nuclear
physics, oceanography and plant physiology.
The Portfolio will endeavor to invest in companies where
the expected benefits to be derived from the utilization of
technology will significantly enhance the prospects of the
company as a whole (including, in the case of a conglomerate,
affiliated companies). The Portfolio's investment objective
permits the Portfolio to seek securities having potential for
capital appreciation in a variety of industries.
Certain of the companies in which the Portfolio invests
may allocate greater than usual amounts to research and product
development. The securities of such companies may experience
above-average price movements associated with the perceived
prospects of success of the research and development programs. In
addition, companies in which the Portfolio invests could be
adversely affected by lack of commercial acceptance of a new
product or products or by technological change and obsolescence.
INVESTMENT POLICIES
OPTIONS. The Portfolio may write call options and may
purchase and sell put and call options written by others,
combinations thereof, or similar options. The Portfolio may not
write put options. A put option gives the buyer of such option,
upon payment of a premium, the right to deliver a specified
number of shares of a stock to the writer of the option on or
before a fixed date at a predetermined price. A call option
gives the purchaser of the option, upon payment of a premium, the
right to call upon the writer to deliver a specified number of
shares of a specified stock on or before a fixed date, at a
predetermined price, usually the market price at the time the
contract is negotiated. A call option written by the Portfolio
is "covered" if the Portfolio owns the underlying security
covered by the call or has an absolute and immediate right to
acquire that security without additional cash consideration (or
for additional cash, U.S. Government Securities or other liquid
high grade debt obligation held in a segregated account by the
Fund's Custodian) upon conversion or exchange of other securities
held in its portfolio. A call option is also covered if the
Portfolio holds a call on the same security and in the same
principal amount as the call written where the exercise price of
the call held (a) is equal to or less than the exercise price of
the call written or (b) is greater than the exercise price of the
call written if the difference is maintained by the Portfolio in
cash in a segregated account with the Fund's Custodian. The
premium paid by the purchaser of an option will reflect, among
other things, the relationship of the exercise price to the
market price and volatility of the underlying security, the
remaining term of the option, supply and demand and interest
4
<PAGE>
rates.
The writing of call options will, therefore, involve a
potential loss of opportunity to sell securities at high prices.
In exchange for the premium received by it, the writer of a fully
collateralized call option assumes the full downside risk of the
securities subject to such option. In addition, the writer of the
call gives up the gain possibility of the stock protecting the
call. Generally, the opportunity for profit from the writing of
options occurs when the stocks involved are lower priced or
volatile, or both. While an option that has been written is in
force, the maximum profit that may be derived from the optioned
stock is the premium less brokerage commissions and fees.
It is the Portfolio's policy not to write a call option
if the premium to be received by the Portfolio in connection with
such options would not produce an annualized return of at least
15% of the then market value of the securities subject to the
option. Commissions, stock transfer taxes and other expenses of
the Portfolio must be deducted from such premium receipts.
Option premiums vary widely depending primarily on supply and
demand. Calls written by the Portfolio will ordinarily be sold
either on a national securities exchange or through put and call
dealers, most, if not all, of which are members of a national
securities exchange on which options are traded, and will in such
case be endorsed or guaranteed by a member of a national
securities exchange or qualified broker-dealer, which may be
Donaldson, Lufkin & Jenrette Securities Corporation, an affiliate
of the Adviser. The endorsing or guaranteeing firm requires that
the option writer (in this case the Portfolio) maintain a margin
account containing either corresponding stock or other equity as
required by the endorsing or guaranteeing firm.
The Portfolio will not sell a call option written or
guaranteed by it if, as a result of such sale, the aggregate of
the Portfolio's securities subject to outstanding call options
(valued at the lower of the option price or market value of such
securities) would exceed 15% of the Portfolio's total assets.
The Portfolio will not sell any call option if such sale would
result in more than 10% of the Portfolio's assets being committed
to call options written by the Portfolio which, at the time of
sale by the Portfolio, have a remaining term of more than 100
days.
OPTIONS ON MARKET INDICES. Options on securities
indices are similar to options on a security except that, rather
than the right to take or make delivery of a security at a
specified price, an option on a securities index gives the holder
the right to receive, upon exercise of the option, an amount of
cash if the closing level of the chosen index is greater than (in
5
<PAGE>
the case of a call) or less than (in the case of a put) the
exercise price of the option.
Through the purchase of listed index options, the
Portfolio could achieve many of the same objectives as through
the use of options on individual securities. Price movements in
the Portfolio's portfolio securities probably will not correlate
perfectly with movements in the level of the index and,
therefore, the Portfolio would bear a risk of loss on index
options purchased by it if favorable price movements of the
hedged portfolio securities do not equal or exceed losses on the
options or if adverse price movements of the hedged portfolio
securities are greater than gains realized from the options.
RIGHTS AND WARRANTS. The Portfolio may invest up to 10%
of its total assets in rights and warrants which entitle the
holder to buy equity securities at a specific price for a
specific period of time. Rights and warrants may be considered
more speculative than certain other types of investments in that
they do not entitle a holder to dividends or voting rights with
respect to the securities which may be purchased nor do they
represent any rights in the assets of the issuing company. Also,
the value of a right or warrant does not necessarily change with
the value of the underlying securities and a right or warrant
ceases to have value if it is not exercised prior to the
expiration date.
FOREIGN INVESTMENTS. The Portfolio will not purchase a
foreign security if such purchase at the time thereof would cause
10% or more of the value of the Portfolio's total assets to be
invested in foreign securities. Foreign issuers are subject to
accounting and financial standards and requirements that differ,
in some cases significantly, from those applicable to U.S.
issuers. In particular, the assets and profits appearing on the
financial statements of a foreign issuer may not reflect its
financial position or results of operations in the way they would
be reflected had the financial statement been prepared in
accordance with U.S. generally accepted accounting principles.
In addition, for an issuer that keeps accounting records in local
currency, inflation accounting rules in some of the countries in
which the Portfolio will invest require, for both tax and
accounting purposes, that certain assets and liabilities be
restated on the issuer's balance sheet in order to express items
in terms of currency of constant purchasing power. Inflation
accounting may indirectly generate losses or profits.
Consequently, financial data may be materially affected by
restatements for inflation and may not accurately reflect the
real condition of those issuers and securities markets.
Substantially less information is publicly available abut certain
non-U.S. issuers than is available about U.S. issuers.
6
<PAGE>
Expropriation, confiscatory taxation, nationalization,
political, economic or social instability or other similar
developments, such as military coups, have occurred in the past
in countries in which the Portfolio may invest and could
adversely affect the Portfolio's assets should these conditions
or events recur.
Foreign investment in certain foreign securities is
restricted or controlled to varying degrees. These restrictions
or controls may at times limit or preclude foreign investment in
certain foreign securities and increase the costs and expenses of
the Portfolio. Certain countries in which the Portfolio may
invest require governmental approval prior to investments by
foreign persons, limit the amount of investment by foreign
persons in a particular issuer, limit the investment by foreign
persons only to a specific class of securities of an issuer that
may have less advantageous rights than the classes available for
purchase by domiciliaries of the countries and/or impose
additional taxes on foreign investors.
ILLIQUID SECURITIES. The following investment policy is
not fundamental and may be changed by a vote of the Board of
Directors. The Portfolio will not maintain more than 15% of its
total assets (taken at market value) in illiquid securities. For
this purpose, illiquid securities include, among others,
(a) securities that are illiquid by virtue of the absence of a
readily available market or legal or contractual restriction on
resale, (b) options purchased by the Portfolio over-the-counter
and the cover for options written by the Portfolio over-the-
counter and (c) repurchase agreements not terminable within seven
days.
Securities that have legal or contractual restrictions
on resale but have a readily available market are not deemed
illiquid for purposes of this limitation. The Adviser will
monitor the liquidity of such restricted securities under the
supervision of the Board of Directors.
Historically, illiquid securities have included
securities subject to contractual or legal restrictions on resale
because they have not been registered under the Securities Act of
1933, as amended (the "Securities Act"), securities which are
otherwise not readily marketable and repurchase agreements having
a maturity of longer than seven days. Securities which have not
been registered under the Securities Act are referred to as
private placements or restricted securities and are purchased
directly from the issuer or in the secondary market. Mutual
funds do not typically hold a significant amount of these
restricted or other illiquid securities because of the potential
for delays on resale and uncertainty in valuation. Limitations
on resale may have an adverse effect on the marketability of
7
<PAGE>
portfolio securities and a mutual fund might be unable to dispose
of restricted or other illiquid securities promptly or at
reasonable prices and might thereby experience difficulty
satisfying redemptions within seven days. A mutual fund might
also have to register such restricted securities in order to
dispose of them resulting in additional expense and delay.
Adverse market conditions could impede such a public offering of
securities.
In recent years, however, a large institutional market
has developed for certain securities that are not registered
under the Securities Act including repurchase agreements,
commercial paper, foreign securities, municipal securities and
corporate bonds and notes. Institutional investors depend on an
efficient institutional market in which the unregistered security
can be readily resold or on an issuer's ability to honor a demand
for repayment. The fact that there are contractual or legal
restrictions on resale to the general public or to certain
institutions may not be indicative of the liquidity of such
investments.
During the coming year, the Portfolio may invest up to
5% of its total assets in restricted securities issued under
Section 4(2) of the Securities Act, which exempts from
registration "transactions by an issuer not involving any public
offering." Section 4(2) instruments are restricted in the sense
that they can only be resold through the issuing dealer and only
to institutional investors; they cannot be resold to the general
public without registration.
Rule 144A under the Securities Act allows a broader
institutional trading market for securities otherwise subject to
restriction on resale to the general public. Rule 144A
establishes a "safe harbor" from the registration requirements of
the Securities Act for resales of certain securities to qualified
institutional buyers. An insufficient number of qualified
institutional buyers interested in purchasing certain restricted
securities held by the Portfolio, however, could affect adversely
the marketability of such portfolio securities and the Portfolio
might be unable to dispose of such securities promptly or at
reasonable prices. Rule 144A has already produced enhanced
liquidity for many restricted securities, and market liquidity
for such securities may continue to expand as a result of this
regulation and the consequent inception of the PORTAL System
sponsored by the National Association of Securities Dealers,
Inc., an automated system for the trading, clearance and
settlement of unregistered securities of domestic and foreign
issuers.
The Adviser, acting under the supervision of the Board
of Directors, will monitor the liquidity of restricted securities
8
<PAGE>
in the Portfolio that are eligible for resale pursuant to Rule
144A. In reaching liquidity decisions, the Adviser will
consider, among others, the following factors: (i) the frequency
of trades and quotes for the security; (ii) the number of dealers
making quotations to purchase or sell the security; (iii) the
number of other potential purchasers of the security; (iv) the
number of dealers undertaking to make a market in the security;
(v) the nature of the security and the nature of the marketplace
for the security (e.g., the time needed to dispose of the
security, the method of soliciting offers and the mechanics of
the transfer); and (vi) any applicable Commission interpretation
or position with respect to such type of securities.
LENDING OF PORTFOLIO SECURITIES. In order to increase
income, the Portfolio may from time to time lend its securities
to brokers, dealers and financial institutions and receive
collateral in the form of cash or U.S. Government Securities.
Under the Portfolio's procedures, collateral for such loans must
be maintained at all times in an amount equal to at least 100% of
the current market value of the loaned securities (including
interest accrued on the loaned securities). The interest
accruing on the loaned securities will be paid to the Portfolio
and the Portfolio will have the right, on demand, to call back
the loaned securities. The Portfolio may pay fees to arrange the
loans. The Portfolio will not lend its securities in excess of
30% of the value of its total assets, nor will the Portfolio lend
its securities to any officer, director, employee or affiliate of
the Fund or the Adviser.
PORTFOLIO TURNOVER. The investment activities described
above are likely to result in the Portfolio engaging in a
considerable amount of trading of securities held for less than
one year. Accordingly, it can be expected that the Portfolio will
have a higher turnover rate than might be expected from
investment companies which invest substantially all of their
funds on a long-term basis. Correspondingly heavier brokerage
commission expenses can be expected to be borne by the Portfolio.
Management anticipates that the Portfolio's annual rate of
portfolio turnover will not be in excess of 100% in future years.
A 100% annual turnover rate would occur, for example, if all the
stocks in the Portfolio's portfolio were replaced once in a
period of one year.
Within this basic framework, the policy of the Portfolio
is to invest in any company and industry and in any type of
security which are believed to offer possibilities for capital
appreciation. Investments may be made in well-known and
established companies as well as in new and unseasoned companies.
Since securities fluctuate in value due to general economic
conditions, corporate earnings and many other factors, the shares
of the Portfolio will increase or decrease in value accordingly,
9
<PAGE>
and there can be no assurance that the Portfolio will achieve its
investment goal or be successful.
INVESTMENT RESTRICTIONS
The following restrictions may not be changed without
approval of a majority of the outstanding voting securities of
the Portfolio, which means the vote of (i) 67% or more of the
shares represented at a meeting at which more than 50% of the
outstanding shares are represented or (ii) more than 50% of the
outstanding shares, whichever is less.
To maintain portfolio diversification and reduce
investment risk, as a matter of fundamental policy, the Portfolio
may not:
(i) with respect to 75% of its total assets, have
such assets represented by other than: (a) cash and cash
items, (b) securities issued or guaranteed as to
principal or interest by the U.S. Government or its
agencies or instrumentalities, or (c) securities of any
one issuer (other than the U.S. Government and its
agencies or instrumentalities) not greater in value than
5% of the Portfolio's total assets, and not more than
10% of the outstanding voting securities of such issuer;
(ii) purchase the securities of any one issuer,
other than the U.S. Government and its agencies or
instrumentalities, if immediately after and as a result
of such purchase (a) the value of the holdings of the
Portfolio in the securities of such issuer exceeds 25%
of the value of the Portfolio's total assets, or (b) the
Portfolio owns more than 25% of the outstanding
securities of any one class of securities of such
issuer;
(iii) concentrate its investments in any one
industry, but the Portfolio has reserved the right to
invest up to 25% of its total assets in a particular
industry;
(iv) invest in the securities of any issuer which
has a record of less than three years of continuous
operation (including the operation of any predecessor)
if such purchase at the time thereof would cause 10% or
more of the value of the total assets of the Portfolio
to be invested in the securities of such issuer or
issuers;
(v) make short sales of securities or maintain a
short position or write put options;
10
<PAGE>
(vi) mortgage, pledge or hypothecate or otherwise
encumber its assets, except as may be necessary in
connection with permissible borrowings mentioned in
investment restriction (xiv) listed below;
(vii) purchase the securities of any other
investment company or investment trust, except when such
purchase is part of a merger, consolidation or
acquisition of assets;
(viii) purchase or sell real property (including
limited partnership interests but excluding readily
marketable interests in real estate investment trusts or
readily marketable securities of companies which invest
in real estate) commodities or commodity contracts;
(ix) purchase participations or other direct
interests in oil, gas, or other mineral exploration or
development programs;
(x) participate on a joint or joint and several
basis in any securities trading account;
(xi) invest in companies for the purpose of
exercising control;
(xii) purchase securities on margin, but it may
obtain such short-term credits from banks as may be
necessary for the clearance of purchases and sales of
securities;
(xiii) make loans of its assets to any other person,
which shall not be considered as including the purchase
of a portion of an issue of publicly-distributed debt
securities; except that the Portfolio may purchase non-
publicly distributed securities subject to the
limitations applicable to restricted or not readily
marketable securities and except for the lending of
portfolio securities as discussed under "Other
Investment Policies and Techniques - Loans of Portfolio
Securities" in the Prospectus;
(xiv) borrow money except for the short-term credits
from banks referred to in paragraph (xii) above and
except for temporary or emergency purposes and then only
from banks and in an aggregate amount not exceeding 5%
of the value of its total assets at the time any
borrowing is made. Money borrowed by the Portfolio will
be repaid before the Portfolio makes any additional
investments;
11
<PAGE>
(xv) act as an underwriter of securities of other
issuers, except that the Portfolio may acquire
restricted or not readily marketable securities under
circumstances where, if sold, the Portfolio might be
deemed to be an underwriter for purposes of the
Securities Act of 1933 (the Portfolio will not invest
more than 10% of its net assets in aggregate in
restricted securities and not readily marketable
securities); and
(xvi) purchase or retain the securities of any
issuer if, to the knowledge of the Portfolio's
management, those officers and directors of the
Portfolio, and those employees of the Investment
Adviser, who each owns beneficially more than one-half
of 1% of the outstanding securities of such issuer
together own more than 5% of the securities of such
issuer.
_________________________________________________________________
MANAGEMENT OF THE FUND
_________________________________________________________________
DIRECTORS AND OFFICERS
The Directors and principal officers of the Fund, their
ages and their primary occupations during the past five years are
set forth below. Each such Director and officer is also a
trustee, director or officer of other registered investment
companies sponsored by the Adviser. Unless otherwise specified,
the address of each such person is 1345 Avenue of the Americas,
New York, New York 10105.
DIRECTORS
JOHN D. CARIFA, 51, Chairman of the Board, is the
President, Chief Operating Officer and a Director of Alliance
Capital Management Corporation ("ACMC"), the sole general partner
of the Adviser, with which he has been associated since prior to
1991.
RUTH BLOCK, 65, was formerly Executive Vice President
and the Chief Insurance Officer of The Equitable Life Assurance
Society of the United States. She is a Director of Ecolab
Incorporated (specialty chemicals) and Amoco Corporation (oil and
gas). Her address is Box 4653, Stamford, Connecticut 06905.
DAVID H. DIEVLER, 66, was formerly Chairman and
President of the Fund and a Senior Vice President of ACMC, with
12
<PAGE>
which he had been associated since prior to 1991. He is
currently an independent consultant. His address is P.O. Box
167, Spring Lake, New Jersey 07762.
JOHN H. DOBKIN, 53, has been the President of Historic
Hudson Valley (historic preservation) since 1990. From 1988 to
1992, he was a Director of ACMC. His address is Historic Hudson
Valley, 150 White Plains Road, New York, New York 10591.
WILLIAM H. FOULK, JR., 63, is a Senior Manager of
Barrett Associates, Inc., a registered investment adviser, since
prior to 1991. His address is 521 Fifth Avenue, New York, New
York 10175.
DR. JAMES M. HESTER, 72, is President of the Harry Frank
Guggenheim Foundation and a Director of Union Carbide
Corporation. He was formerly President of New York University,
The New York Botanical Garden and Rector of the United Nations
University. His address is 525 East 72nd Street, New York, New
York 10021.
CLIFFORD L. MICHEL, 56, is a member of the law firm of
Cahill Gordon & Reindel, with which he has been associated since
prior to 1991. He is also Chief Executive Officer of Wenonah
Development Company (investments) and a Director of Placer Dome,
Inc. (mining) and Faber-Castell Corporation (writing products).
His address is St. Bernard's Road, Gladstone, New Jersey 07934.
ROBERT C. WHITE, 75, is a Vice President and Chief
Financial Officer of the Howard Hughes Medical Institute with
which he has been associated prior to 1991. He is also a retired
Trustee of St. Clair Fixed Income Fund, St. Clair Tax-Free Fund
and St. Clair Equity Fund (registered investment companies) and a
Director of MEDSTAAT Systems, Inc. (health care information).
His address is 8101 Connecticut Avenue, Apartment S501, Chevy
Chase, Maryland 20815.
OFFICERS
ALFRED L. HARRISON, SENIOR VICE PRESIDENT, 57, is a Vice
Chairman of ACMC, with which he has been associated with since
prior to 1991.
WAYNE D. LYSKI, SENIOR VICE PRESIDENT, 53, is an
Executive Vice President of ACMC, with which he has been
associated with since prior to 1991.
KATHLEEN A. CORBET, 35, Senior Vice President, has been
a Senior Vice President of ACMC since July 1993. Previously, she
held various responsibilities as head of Equitable Capital
Management Corporation's Fixed Income Management Department,
13
<PAGE>
Private Placement Secondary Trading and Fund Management since
prior to 1991.
EDMUND P. BERGAN, Jr., 45, Secretary, is a Vice
President and Assistant General Counsel of ACMC with which he has
been associated since prior to 1991.
MARK D. GERSTEN, TREASURER AND CHIEF FINANCIAL OFFICER,
45, is a Senior Vice President of Alliance Fund Services, Inc.
("AFS"), with which he has been associated since prior to 1991.
ANDREW GANGOLF, ASSISTANT SECRETARY, 41, has been a Vice
President and Assistant General Counsel of AFD since December
1994. Prior thereto he was a Vice President and Assistant
Secretary of Delaware Management Company, Inc. since October 1992
and a Vice President and Counsel to Equitable Life Assurance
Society of the United States since prior to 1991.
LAURA MAH, CONTROLLER, 39, has been a Vice President of
ACMC since July 1992. Previously she was associated with
Equitable Capital Management Corporation ("ECMC") since prior to
1991.
THOMAS R. MANLEY, ASSISTANT CONTROLLER, 43, has been an
Assistant Vice President of ACMC since July 1993. Previously he
was associated with ECMC since 1991.
STEVEN YU, ASSISTANT CONTROLLER, 35, has been an
Assistant Vice President of ACMC since 1993. Previously he was
associated with ECMC since prior to 1991.
The Fund does not pay any fees to, or reimburse
expenses of, its Directors who are considered "interested
persons" of the Fund. The aggregate compensation paid by the
Fund to each of the Directors during its fiscal year ended
December 31, 1995 and the aggregate compensation paid to each of
the Directors during calendar year 1995 by all of the registered
investment companies to which the Adviser provides investment
advisory services (collectively, the "Alliance Fund Complex")
and the total number of registered investment companies in the
Alliance Fund Complex with respect to which each of the
Directors serves as a director or trustee, are set forth below.
Neither the Fund nor any other fund in the Alliance Fund Complex
provides compensation in the form of pension or retirement
benefits to any of its directors or trustees.
14
<PAGE>
Total Total Number
Compensation of Funds in the
from the Alliance Fund
Alliance Fund Complex, Including
Aggregate Complex, the Fund, as to which
Name of Director Compensation Including the the Director is a
of the Fund from the Fund Fund Director or Trustee
_______________ _____________ _____________ _____________________
John D. Carifa $-0- $-0- 49
Ruth Block $3,165 $ 159,000 36
David H. Dievler $3,165 $ 179,200 42
John H. Dobkin $3,300 $ 117,200 29
William H. Foulk, Jr. $3,300 $ 143,500 30
Dr. James M. Hester $3,165 $ 156,000 37
Clifford L. Michel $3,165 $ 131,500 36
Robert C. White $3,165 $ 133,200 36
___________________________
As of March 30, 1996, the Directors and officers of the Fund as a
group owned less than 1% of the shares of the Fund.
ADVISER
Alliance Capital Management L.P., a New York Stock
Exchange listed company with principal offices at 1345 Avenue of
the Americas, New York, New York 10105, has been retained under
an advisory agreement (the "Advisory Agreement") to provide
investment advice and, in general, to conduct the management and
investment program of the Fund under the supervision and control
of the Fund's Board of Directors.
The Adviser is a leading international investment
manager supervising client accounts with assets as of March 1,
1996 of more than $156 billion (of which approximately $48
billion represented the assets of investment companies). The
Adviser's clients are primarily major corporate employee benefit
funds, public employee retirement systems, investment companies,
foundations and endowment funds and included, as of March 1,
1996, 34 of the FORTUNE 100 Companies. As of that date, the
Adviser and its subsidiaries employed approximately 1,350
employees who operated out of domestic offices and the overseas
offices of subsidiaries in Bombay, Istanbul, London, Sydney,
Tokyo, Toronto, Bahrain, Luxembourg and Singapore. The 50
registered investment companies comprising 107 separate
investment portfolios managed by the Adviser currently have more
than two million shareholders.
Alliance Capital Management Corporation, the sole
general partner of, and the owner of a 1% general partnership
15
<PAGE>
interest in, the Adviser, is an indirect wholly-owned subsidiary
of The Equitable Life Assurance Society of the United States
("Equitable"), one of the largest life insurance companies in the
United States and a wholly-owned subsidiary of The Equitable
Companies Incorporated ("ECI"), a holding company controlled by
AXA, a French insurance holding company. As of March 1, 1996,
ACMC, Inc. and Equitable Capital Management Corporation, each a
wholly-owned direct or indirect subsidiary of Equitable, together
with Equitable, owned in the aggregate approximately 57.6% of the
issued and outstanding units representing assignments of
beneficial ownership of limited partnership interests in the
Adviser ("Units"). As of March 1, 1996, approximately 32.4% and
10% of the Units were owned by the public and employees of the
Adviser and its subsidiaries, respectively, including employees
of the Adviser who serve as Directors of the Fund.
AXA and its subsidiaries own approximately 63.9% of the
issued and outstanding shares of capital stock of ECI. AXA is
the holding company for an international group of insurance and
related financial services companies. AXA's insurance operations
include activities in life insurance, property and casualty
insurance and reinsurance. The insurance operations are diverse
geographically, with activities in France, the United States,
Australia, the United Kingdom, Canada and other countries,
principally in Europe and the Asia Pacific area. AXA is also
engaged in asset management, investment banking, securities
trading, brokerage, real estate and other financial services
activities in the United States, Europe and the Asia Pacific
area. Based on information provided by AXA, as of March 1, 1996,
42.1% of the issued ordinary shares (representing 53.4% of the
voting power) of AXA were owned by Midi Participations, a French
holding company ("Midi"). The shares of Midi were, in turn,
owned 61.4% (representing 62.5% of the voting power) by Finaxa, a
French holding company, and 38.6% (representing 37.5% of the
voting power) by subsidiaries of Assicurazioni Generali S.p.A.,
an Italian corporation (one of which, Belgica Insurance Holding
S.A., a Belgian corporation, owned 30.8%, representing 33.1% of
the voting power). As of March 1, 1996, 61.1% of the voting
shares (representing 73.4% of the voting power) of Finaxa were
owned by five French mutual insurance companies (the "Mutuelles
AXA") (one of which, AXA Assurances I.A.R.D. Mutuelle, owned
34.7% of the voting shares representing 40.4% of the voting
power), and 25.5% of the voting shares (representing 16% of the
voting power) of Finaxa were owned by Banque Paribas, a French
bank. Including the ordinary shares owned by Midi, as of
March 1, 1996, the Mutuelles AXA directly or indirectly owned 51%
of the issued ordinary shares (representing 64.7% of the voting
power) of AXA. Acting as a group, the Mutuelles AXA control AXA,
Midi and Finaxa.
16
<PAGE>
The Investment Advisory Agreement became effective on
July 22, 1992. The Investment Advisory Agreement was approved by
the unanimous vote, cast in person, of the Fund's Directors
including the Directors who are not parties to the Investment
Advisory Agreement or "interested persons" as defined in the Act,
of any such party, at a meeting called for the purpose and held
on September 10, 1991. At a meeting held on June 11, 1992, a
majority of the outstanding voting securities of the Fund
approved the Investment Advisory Agreement. The Investment
Advisory Agreement was amended as of June 2, 1994 to provide for
the addition of the North American Government Income Portfolio,
the Global Dollar Government Portfolio and the Utility Income
Portfolio. The amendment to the Investment Advisory Agreement
was approved by the unanimous vote, cast in person, of the
disinterested Directors at a meeting called for that purpose and
held on December 7, 1993. The Investment Advisory Agreement was
amended as of October 24, 1994 to provide for the addition of the
Growth Portfolio, Worldwide Privatization Portfolio, Conservative
Investors Portfolio and Growth Investors Portfolio. The
amendment to the Investment Advisory Agreement was approved by
the unanimous vote, cast in person of the disinterested Directors
at a meeting called for that purpose and held on June 14, 1994.
The Investment Advisory Agreement was amended as of February 1,
1996 to provide for the addition of the Technology Portfolio.
The amendment to the Investment Advisory Agreement was approved
by the unanimous vote, cast in person, of the disinterested
Directors at a meeting called for that purpose and held on
November 28, 1995.
The Adviser provides investment advisory services and
order placement facilities for the Portfolio and pays all
compensation of Directors and officers of the Fund who are
affiliated persons of the Adviser. The Adviser or its affiliates
also furnish the Fund, without charge, management supervision and
assistance and office facilities and provide persons satisfactory
to the Fund's Board of Directors to serve as the Fund's officers.
The Portfolio pays the Adviser at an annual rate of 1.00% of its
average daily net asset value.
The Commission takes the position that the rate of the
advisory fee applicable to the Portfolio is higher than that paid
by most investment companies, however, the Adviser believes the
fee is comparable to that paid by investment companies of similar
investment orientation.
Certain other clients of the Adviser may have investment
objectives and policies similar to those of the Portfolio. The
Adviser may, from time to time, make recommendations which result
in the purchase or sale of the particular security by its other
clients simultaneously with the Portfolio. If transactions on
behalf of more than one client during the same period increase
17
<PAGE>
the demand for securities being purchased or the supply of
securities being sold, there may be an adverse effect on price.
It is the policy of the Adviser to allocate advisory
recommendations and the placing of orders in a manner which is
deemed equitable by the Adviser to the accounts involved,
including the Portfolio. When two or more of the clients of the
Adviser (including the Portfolio) are purchasing or selling the
same security on a given day from the same broker or dealer, such
transactions may be averaged as to price.
As to the obtaining of services other than those
specifically provided to the Portfolio by the Adviser, the
Portfolio may employ its own personnel. For such services, it
also may utilize personnel employed by the Adviser or by other
subsidiaries of Equitable. In such event, the services will be
provided to the Portfolio at cost and the payments specifically
approved by the Fund's Board of Directors.
The Investment Advisory Agreement is terminable with
respect to the Portfolio without penalty on 60 days' written
notice by a vote of a majority of the outstanding voting
securities of such Portfolio or by a vote of a majority of the
Fund's Directors, or by the Adviser on 60 days' written notice,
and will automatically terminate in the event of its assignment.
The Investment Advisory Agreement provides that in the absence of
willful misfeasance, bad faith or gross negligence on the part of
the Adviser, or of reckless disregard of its obligations
thereunder, the Adviser shall not be liable for any action or
failure to act in accordance with its duties thereunder.
The Investment Advisory Agreement continues in effect
until each December 31, and thereafter for successive twelve
month periods computed from each January 1, provided that such
continuance is specifically approved at least annually by a vote
of a majority of the Fund's outstanding voting securities or by
the Fund's Board of Directors, including in either case approval
by a majority of the Directors who are not parties to the
Investment Advisory Agreement or interested persons of such
parties as defined by the 1940 Act.
The Adviser may act as an investment adviser to other
persons, firms or corporations, including investment companies,
and is investment adviser to ACM Institutional Reserves, Inc.,
AFD Exchange Reserves, The Alliance Fund, Inc., Alliance All-Asia
Investment Fund, Inc., Alliance Balanced Shares, Inc., Alliance
Bond Fund, Inc., Alliance Capital Reserves, Alliance Developing
Markets Fund, Inc., Alliance Global Dollar Government Fund, Inc.,
Alliance Global Fund, Inc., Alliance Global Small Cap Fund, Inc.,
Alliance Global Strategic Income Trust, Inc., Alliance Government
Reserves, Alliance Growth and Income Fund, Inc., Alliance Income
Builder Fund, Inc., Alliance International Fund, Alliance Limited
18
<PAGE>
Maturity Government Fund, Inc., Alliance Managed Dollar Income
Fund, Inc., Alliance Money Market Fund, Alliance Mortgage
Securities Income Fund, Inc., , Alliance Multi-Market Strategy
Trust, Inc., Alliance Municipal Income Fund, Inc., Alliance
Municipal Income Fund II, Inc., Alliance Municipal Trust,
Alliance New Europe Fund, Inc., Alliance North American
Government Income Trust, Inc., Alliance Premier Growth Fund,
Inc., Alliance Quasar Fund, Inc., Alliance Short-Term Multi-
Market Trust, Inc., Alliance Technology Fund, Inc., Alliance
Utility Income Fund, Inc., Alliance World Income Trust, Inc.,
Alliance Worldwide Privatization Fund, Inc., Fiduciary Management
Associates, The Alliance Portfolios, and The Hudson River Trust,
all registered open-end investment companies; and to ACM
Government Income Fund, Inc., ACM Government Securities Fund,
Inc., ACM Government Spectrum Fund, Inc., ACM Government
Opportunity Fund, Inc., ACM Managed Income Fund, Inc., ACM
Municipal Securities Income Fund, Inc., Alliance Global
Environment Fund, Inc., Alliance World Dollar Government Fund,
Inc., Alliance World Dollar Government Fund II, Inc., The Austria
Fund, Inc., The Korean Investment Fund, Inc., The Southern Africa
Fund, Inc. and The Spain Fund, Inc., all registered closed-end
investment companies.
_________________________________________________________________
PURCHASE AND REDEMPTION OF SHARES
_________________________________________________________________
The following information supplements that set forth in
the Portfolio's Prospectus under the heading "Purchase and
Redemption of Shares."
REDEMPTION OF SHARES
The value of a shareholder's shares on redemption or
repurchase may be more or less than the cost of such shares to
the shareholder, depending upon the market value of the
Portfolio's securities at the time of such redemption or
repurchase. Payment either in cash or in portfolio securities
received by a shareholder upon redemption or repurchase of his
shares, assuming the shares constitute capital assets in his
hands, will result in long-term or short-term capital gains (or
loss) depending upon the shareholder's holding period and basis
in respect of the shares redeemed.
19
<PAGE>
_________________________________________________________________
NET ASSET VALUE
_________________________________________________________________
The net asset value of shares of the Portfolio on which
the subscription and redemption prices are based is computed in
accordance with the Articles of Incorporation and By-Laws of the
Fund at the next close of regular trading on the New York Stock
Exchange (the "Exchange") (currently 4:00 p.m. Eastern time)
following receipt of a purchase or redemption order by the Fund,
on each Fund business day on which such an order is received and
trading in the types of securities in which the Portfolio invests
might materially affect the value of the Portfolio's shares, by
dividing the value of the Portfolio's assets less its
liabilities, by the total number of shares then outstanding. For
this purpose, a Fund business day is any weekday exclusive of
days on which the New York Stock Exchange is closed (most
national holidays and Good Friday).
Portfolio securities that are actively traded in the
over-the-counter market, including listed securities for which
the primary market is believed to be over-the-counter, are valued
at the mean between the most recently quoted bid and asked prices
provided by the principal market makers. Any security for which
the primary market is on an exchange is valued at the last sale
price on such exchange on the day of valuation or, if there was
no sale on such day, the last bid price quoted on such day.
Options will be valued at market value or fair market value if no
market exists. Futures contracts will be valued in a like
manner, except that open futures contracts sales will be valued
using the closing settlement price or, in the absence of such a
price, the most recently quoted asked price. Securities and
assets for which market quotations are not readily available are
valued at fair value as determined in good faith by or under the
direction of the Board of Directors of the Fund. However,
readily marketable fixed-income securities may be valued on the
basis of prices provided by a pricing service when such prices
are believed by the Adviser to reflect the fair market value of
such securities. The prices provided by a pricing service take
into account institutional size trading in similar groups of
securities and any developments related to specific securities.
U.S. Government Securities and other debt instruments having 60
days or less remaining until maturity are stated at amortized
cost if their original maturity was 60 days or less, or by
amortizing their fair value as of the 61st day prior to maturity
if their original term to maturity exceeded 60 days (unless in
either case the Fund's Board of Directors determines that this
method does not represent fair value). All other assets of the
Portfolio, including restricted and not readily marketable
securities, are valued in such manner as the Board of Directors
20
<PAGE>
of the Fund in good faith deems appropriate to reflect their fair
market value.
_________________________________________________________________
PORTFOLIO TRANSACTIONS
_________________________________________________________________
Neither the Fund nor the Adviser has entered into
agreements or understandings with any brokers or dealers
regarding the placement of securities transactions because of
research or statistical services they provide. To the extent
that such persons or firms supply investment information to the
Adviser for use in rendering investment advice to the Fund, such
information may be supplied at no cost to the Adviser and,
therefore, may have the effect of reducing the expenses of the
Adviser in rendering advice to the Fund. While it is impossible
to place an actual dollar value on such investment information,
its receipt by the Adviser probably does not reduce the overall
expenses of the Adviser to any material extent.
The investment information provided to the Adviser is of
the types described in Section 28(e)(3) of the Securities
Exchange Act of 1934 and is designed to augment the Adviser's own
internal research and investment strategy capabilities. Research
and statistical services furnished by brokers through which the
Fund effects securities transactions are used by the Adviser in
carrying out its investment management responsibilities with
respect to all its client accounts but not all such services may
be utilized by the Adviser in connection with the Fund.
The Fund will deal in some instances in equity
securities which are not listed on a national stock exchange but
are traded in the over-the-counter market. Where transactions
are executed in the over-the-counter market, the Fund will seek
to deal with the primary market makers, but when necessary in
order to obtain the best price and execution, it will utilize the
services of others. In all cases, the Fund will attempt to
negotiate best execution.
The Fund may from time to time place orders for the
purchase or sale of securities (including listed call options)
with Donaldson, Lufkin & Jenrette Securities Corporation ("DLJ"),
an affiliate of the Adviser, the Fund's distributor, and with
brokers which may have their transactions cleared or settled, or
both, by the Pershing Division of DLJ for which DLJ may receive a
portion of the brokerage commission. With respect to orders
placed with DLJ for execution on a national securities exchange,
commissions received must conform to Section 17(e)(2)(A) of the
1940 Act and Rule 17e-1 thereunder, which permit an affiliated
person of a registered investment company (such as the Fund), or
21
<PAGE>
any affiliated person of such person, to receive a brokerage
commission from such registered investment company provided that
such commission is reasonable and fair compared to the
commissions received by other brokers in connection with
comparable transactions involving similar securities during a
comparable period of time.
_________________________________________________________________
DIVIDENDS, DISTRIBUTIONS AND TAXES
_________________________________________________________________
The Portfolio intends to qualify to be taxed as a
"regulated investment company" under the Internal Revenue Code of
1986 (the "Code"). If so qualified, the Portfolio will not be
subject to federal income and excise taxes on its investment
company taxable income and net capital gains to the extent such
investment company taxable income and net capital gains are
distributed to the separate accounts of insurance companies which
hold its shares. Under current tax law, capital gains or
dividends from any Portfolio are not currently taxable when left
to accumulate within a variable annuity or variable life
insurance contract. Distributions of net investment income and
net short-term capital gains will be treated as ordinary income
and distributions of net long-term capital gains will be treated
as long-term capital gain in the hands of the insurance
companies.
Investment income received by the Portfolio from sources
within foreign countries may be subject to foreign income taxes
withheld at the source. If more than 50% of the value of the
Portfolio's total assets at the close of its taxable year
consists of stocks or securities of foreign corporations (which
for this purpose should include obligations issued by foreign
governments), the Portfolio will be eligible to file an election
with the Internal Revenue Service to pass through to its
shareholders the amount of foreign taxes paid by the Portfolio.
If eligible, the Portfolio intends to file such an election,
although there can be no assurance that the Portfolio will be
able to do so.
Section 817(h) of the Code requires that the investments
of a segregated asset account of an insurance company be
"adequately diversified", in accordance with Treasury Regulations
promulgated thereunder, in order for the holders of the variable
annuity contracts or variable life insurance policies underlying
the account to receive the tax-deferred or tax-free treatment
generally afforded holders of annuities or life insurance
policies under the Code. The Department of the Treasury has
issued Regulations under section 817(h) which, among other
things, provide the manner in which a segregated asset account
22
<PAGE>
will treat investments in a regulated investment company for
purposes of the applicable diversification requirements. Under
the Regulations, if a regulated investment company satisfies
certain conditions, a segregated asset account owning shares of
the regulated investment company will not be treated as a single
investment for these purposes, but rather the account will be
treated as owning its proportionate share of each of the assets
of the regulated investment company. The Portfolio plans to
satisfy these conditions at all times so that the shares of the
Portfolio owned by a segregated asset account of a life insurance
company will be subject to this treatment under the Code.
For information concerning the federal income tax
consequences for the holders of variable annuity contracts and
variable rate insurance policies, such holders should consult the
prospectus used in connection with the issuance of their
particular contracts or policies.
________________________________________________________________
GENERAL INFORMATION
________________________________________________________________
CAPITALIZATION
The Fund's shares have non-cumulative voting rights,
which means that the holders of more than 50% of the shares
voting for the election of Directors can elect 100% of the
Directors if they choose to do so, and in such election of
Directors will not be able to elect any person or persons to the
Board of Directors.
All shares of the Fund when duly issued will be fully
paid and nonassessable. The Board of Directors is authorized to
reclassify and issue any unissued shares to any number of
additional series without shareholder approval. Accordingly, the
Board of Directors in the future, for reasons such as the desire
to establish one or more additional portfolios with different
investment objectives, policies or restrictions, may create
additional series of shares. Any issuance of shares of such
additional series would be governed by the 1940 Act and the law
of the State of Maryland.
If shares of another series were issued in connection
with the creation of the new portfolio, each share of any of the
Fund's portfolios would normally be entitled to one vote for all
purposes. Generally, shares of each portfolio would vote as a
single series for the election of directors and on any other
matter that affected each portfolio in substantially the same
manner. As to matters affecting each portfolio differently, such
as approval of the Investment Advisory Agreement and changes in
23
<PAGE>
investment policy, shares of each portfolio would vote as
separate series.
Procedures for calling a shareholders' meeting for the
removal of Directors of the Fund, similar to those set forth in
Section 16(c) of the 1940 Act, are available to any shareholder
of the Fund. Meetings of shareholders may be called by 10% of the
Fund's outstanding shareholders.
The outstanding voting shares of the Portfolio as of
September 30, 1996, consisted of 321,760 Shares of common stock.
Set forth below is certain information as to all persons who
owned of record or beneficially 5% or more of the outstanding
shares of the Portfolio at September 30, 1996.
NAME AND ADDRESS NUMBER OF SHARES % OF SHARES
AIG Life Insurance 251,139 78%
Company
One ALICO Plaza
600 Kings Street
Wilmington, DE 19801
American International 70,621 22%
Life Assurance Company
of New York
80 Pine Street
New York, NY 10005
CUSTODIAN
State Street Bank and Trust Company, 225 Franklin
Street, Boston, Massachusetts 02110, acts as Custodian for the
securities and cash of the Fund but plays no part in deciding the
purchase or sale of portfolio securities.
PRINCIPAL UNDERWRITER
Alliance Fund Distributors, Inc., 1345 Avenue of the
Americas, New York, New York 10105, serves as the Fund's
Principal Underwriter, and as such may solicit orders from the
public to purchase shares of the Fund. Under the Distribution
Services Agreement between the Fund and the Principal
Underwriter, the Fund has agreed to indemnify the distributor, in
the absence of its willful misfeasance, bad faith, gross
negligence or reckless disregard of its obligations thereunder,
against certain civil liabilities, including liabilities under
the Securities Act.
24
<PAGE>
COUNSEL
Legal matters in connection with the issuance of the
shares of the Fund offered hereby will be passed upon by Seward &
Kissel, One Battery Park Plaza, New York, New York 10004.
INDEPENDENT AUDITORS
Ernst & Young LLP, 787 Seventh Avenue, New York, New
York 10019, have been appointed as independent auditors for the
Fund.
SHAREHOLDER APPROVAL
The capitalized term "Shareholder Approval" as used in
this Statement of Additional Information means (1) the vote of
67% or more of the shares of the Portfolio represented at a
meeting at which more than 50% of the outstanding shares are
represented or (2) more than 50% of the outstanding shares of the
Portfolio, whichever is less.
Yield and Total Return Quotations
From time to time the Portfolio states its "yield",
"actual distribution rate" and "total return." The Portfolio's
yield for any 30-day (or one-month) period is computed by
dividing the net investment income per share earned during such
period by the maximum public offering price per share on the last
day of the period, and then annualizing such 30-day (or one-
month) yield in accordance with a formula prescribed by the
Commission which provides for compounding on a semi-annual basis.
The Portfolio's "actual distribution rate," which may be
advertised in items of sales literature, is computed in the same
manner as yield except that actual income dividends declared per
share during the period in question are substituted for net
investment income per share. Advertisements of the Portfolio's
total return disclose the Portfolio's average annual compounded
total return for the period since the Portfolio's inception. The
Portfolio's total return for each such period is computed by
finding, through the use of a formula prescribed by the
Commission, the average annual compounded rate of return over the
period that would equate an assumed initial amount invested to
the value of such investment at the end of the period. For
purposes of computing total return, income dividends and capital
gains distributions paid on shares of the Portfolio are assumed
to have been reinvested when received and the maximum sales
charge applicable to purchases of Portfolio shares is assumed to
have been paid. The past performance of the Portfolio is not
intended to indicate future performance.
25
<PAGE>
Additional Information
Any shareholder inquiries may be directed to the
shareholder's broker or to Alliance Fund Services, Inc. at the
address or telephone numbers shown on the front cover of this
Statement of Additional Information. This Statement of
Additional Information does not contain all the information set
forth in the Registration Statement filed by the Fund with the
Securities and Exchange Commission under the Securities Act of
1933. Copies of the Registration Statement may be obtained at a
reasonable charge from the Securities and Exchange Commission or
may be examined, without charge, at the offices of the Securities
and Exchange Commission in Washington, D.C.
26
00250292.AY8
<PAGE>
APPENDIX A
OPTIONS
The Portfolio will only write "covered" put and call
options, unless such options are written for cross-hedging
purposes. The manner in which such options will be deemed
"covered" is described in the Prospectus under the heading "Other
Investment Policies and Techniques -- Options."
The writer of an option may have no control over when
the underlying securities must be sold, in the case of a call
option, or purchased, in the case of a put option, since with
regard to certain options, the writer may be assigned an exercise
notice at any time prior to the termination of the obligation.
Whether or not an option expires unexercised, the writer retains
the amount of the premium. This amount, of course, may, in the
case of a covered call option, be offset by a decline in the
market value of the underlying security during the option period.
If a call option is exercised, the writer experiences a profit or
loss from the sale of the underlying security. If a put option
is exercised, the writer must fulfill the obligation to purchase
the underlying security at the exercise price, which will usually
exceed the then market value of the underlying security.
The writer of a listed option that wishes to terminate
its obligation may effect a "closing purchase transaction." This
is accomplished by buying an option of the same series as the
option previously written. The effect of the purchase is that
the writer's position will be cancelled by the clearing
corporation. However, a writer may not effect a closing purchase
transaction after being notified of the exercise of an option.
Likewise, an investor who is the holder of a listed option may
liquidate its position by effecting a "closing sale transaction".
This is accomplished by selling an option of the same series as
the option previously purchased. There is no guarantee that
either a closing purchase or a closing sale transaction can be
effected.
Effecting a closing transaction in the case of a written
call option will permit the Portfolio to write another call
option on the underlying security with either a different
exercise price or expiration date or both, or in the case of a
written put option will permit the Portfolio to write another put
option to the extent that the exercise price thereof is secured
by deposited cash or short-term securities. Also, effecting a
closing transaction will permit the cash or proceeds from the
concurrent sale of any securities subject to the option to be
used for other Portfolio investments. If the Portfolio desires
to sell a particular security from its portfolio on which it has
A-1
<PAGE>
written a call option, it will effect a closing transaction prior
to or concurrent with the sale of the security.
The Portfolio will realize a profit from a closing
transaction if the price of the transaction is less than the
premium received from writing the option or is more than the
premium paid to purchase the option; the Portfolio will realize a
loss from a closing transaction if the price of the transaction
is more than the premium received from writing the option or is
less than the premium paid to purchase the option. Because
increases in the market price of a call option will generally
reflect increases in the market price of the underlying security,
any loss resulting from the repurchase of a call option is likely
to be offset in whole or in part by appreciation of the
underlying security owned by the Portfolio.
An option position may be closed out only where there
exists a secondary market for an option of the same series. If a
secondary market does not exist, it might not be possible to
effect closing transactions in particular options with the result
that the Portfolio would have to exercise the options in order to
realize any profit. If the Portfolio is unable to effect a
closing purchase transaction in a secondary market, it will not
be able to sell the underlying security until the option expires
or it delivers the underlying security upon exercise. Reasons
for the absence of a liquid secondary market include the
following: (i) there may be insufficient trading interest in
certain options, (ii) restrictions may be imposed by a national
securities exchange ("Exchange") on opening transactions or
closing transactions or both, (iii) trading halts, suspensions or
other restrictions may be imposed with respect to particular
classes or series of options or underlying securities, (iv)
unusual or unforeseen circumstances may interrupt normal
operations on an Exchange, (v) the facilities of an Exchange or
the Options Clearing Corporation may not at all times be adequate
to handle current trading volume, or (vi) one or more Exchanges
could, for economic or other reasons, decide or be compelled at
some future date to discontinue the trading of options (or a
particular class or series of options), in which event the
secondary market on that Exchange (or in that class or series of
options) would cease to exist, although outstanding options on
that Exchange that had been issued by the Options Clearing
Corporation as a result of trades on that Exchange would continue
to be exercisable in accordance with their terms.
The Portfolio may write options in connection with buy-
and-write transactions; that is, the Portfolio may purchase a
security and then write a call option against that security. The
exercise price of the call the Portfolio determines to write will
depend upon the expected price movement of the underlying
security. The exercise price of a call option may be below ("in-
A-2
<PAGE>
the-money"), equal to ("at-the-money") or above ("out-of-the-
money") the current value of the underlying security at the time
the option is written. Buy-and-write transactions using in-the-
money call options may be used when it is expected that the price
of the underlying security will remain flat or decline moderately
during the option period. Buy-and-write transactions using at-
the-money call options may be used when it is expected that the
price of the underlying security will remain fixed or advance
moderately during the option period. Buy-and-write transactions
using out- of-the-money call options may be used when it is
expected that the premiums received from writing the call option
plus the appreciation in the market price of the underlying
security up to the exercise price will be greater than the
appreciation in the price of the underlying security alone. If
the call options are exercised in such transactions, the
Portfolio's maximum gain will be the premium received by it for
writing the option, adjusted upwards or downwards by the
difference between the Portfolio's purchase price of the security
and the exercise price. If the options are not exercised and the
price of the underlying security declines, the amount of such
decline will be offset in part, or entirely, by the premium
received.
The writing of covered put options is similar in terms
of risk/return characteristics to buy-and-write transactions. If
the market price of the underlying security rises or otherwise is
above the exercise price, the put option will expire worthless
and the Portfolio's gain will be limited to the premium received.
If the market price of the underlying security declines or
otherwise is below the exercise price, the Portfolio may elect to
close the position or take delivery of the security at the
exercise price and the Portfolio's return will be the premium
received from the put option minus the amount by which the market
price of the security is below the exercise price. Out-of-the-
money, at-the-money, and in-the-money put options may be used by
the Portfolio in the same market environments that call options
are used in equivalent buy- and-write transactions.
A portfolio may purchase put options to hedge against a
decline in the value of its portfolio. By using put options in
this way, the Portfolio will reduce any profit it might otherwise
have realized in the underlying security by the amount of the
premium paid for the put option and by transaction costs.
The Portfolio may purchase call options to hedge against
an increase in the price of securities that the Portfolio
anticipates purchasing in the future. The premium paid for the
call option plus any transaction costs will reduce the benefit,
if any, realized by the Portfolio upon exercise of the option,
and, unless the price of the underlying security rises
sufficiently, the option may expire worthless to the Portfolio.
A-3
00250292.AY8
<PAGE>
PART C
OTHER INFORMATION
ITEM 24. Financial Statements and Exhibits.
(a) FINANCIAL STATEMENTS
Included in the Prospectus:
Financial Highlights
Included in the Statement of Additional Information for
the Premier 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 and the Money Market Portfolio:
Portfolio of Investments - December 31, 1995
Statement of Assets and Liabilities -
December 31, 1995
Statement of Operations, year ended December 31,
1995
Statement of Changes in Net Assets, years ended
December 31, 1995 and December 31, 1994
Notes to Financial Statements - December 31, 1995
Financial Highlights - for the years ended
December 31, 1995, December 31, 1994
December 31, 1993 and December 31, 1992
Report of Ernst & Young LLP, Independent Auditors
Included in the Statement of Additional Information for
the Global Dollar Government Portfolio, North American
Government Income Portfolio, Utility Income Portfolio,
Growth Portfolio, Worldwide Privatization Portfolio,
Conservative Investors Portfolio and Growth Investors
Portfolio:
Portfolio of Investments - December 31, 1995
Statement of Assets and Liabilities -
December 31, 1995
Statement of Operations, year ended December 31,
1995
Statement of Changes in Net Assets, year ended
December 31, 1995 and December 31, 1994
Notes to Financial Statements - December 31, 1995
Financial Highlights - for the year ended
December 31, 1995 and December 31, 1994
Report of Ernst & Young LLP, Independent Auditors
All other schedules are either omitted because they
are not required under the related instructions, they
are inapplicable or the required information is
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<PAGE>
presented in the financial statements or notes which are
included in the Statement of Additional Information of
the Registration Statement.
(b) EXHIBITS:
(1)(a) Articles of Incorporation of the Registrant -
Incorporated herein by reference to Exhibit 1 to
Registration Statement on Form N-1A, filed on
November 20, 1987.
(b) Articles Supplementary to the Articles of
Incorporation of the Registrant - Incorporated
herein by reference to Exhibit 1 to Registration
Statement on Form N-1A, filed on November 20,
1987.
(c) Form of Articles Supplementary to the Articles of
Incorporation of the Registrant - Incorporated by
reference to Exhibit 1(c) to Post-Effective
Amendment No. 5 to Registration Statement on Form
N-1A, filed on May 1, 1991.
(d) Articles Supplementary to the Articles of
Incorporation of the Registrant - Incorporated by
reference to Exhibit 1(d) to Post-Effective
Amendment No. 13 to Registration Statement on
Form N-1A, filed on May 1, 1995.
(e) Articles of Amendment to the Articles of
Incorporation of the Registrant - Incorporated by
reference to Exhibit 1(e) to Post-Effective
Amendment No. 13 to Registration Statement on
Form N-1A, filed on May 1, 1995.
(f) Articles Supplementary to the Articles of
Incorporation adding Technology Portfolio -
Incorporated by reference to Exhibit 1(f) to
Post-Effective Amendment No. 15 to Registration
Statement on Form N-1A, filed on April 30, 1996.
(g) Articles Supplementary to the Articles of
Incorporation increasing the authorized aggregate
number of shares of capital stock.
(h) Articles Supplementary to the Articles of
Incorporation adding Quasar Portfolio - filed
herewith.
(2)(a) By-Laws of the Registrant - Incorporated by
reference to Exhibit 2(a) to Post-Effective
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<PAGE>
Amendment No. 15 to Registration Statement on
Form N-1A, filed on April 30, 1996.
(b) Revised By-Laws of the Registrant - Incorporated
by reference to Exhibit 2(b) to Post-Effective
Amendment No. 4 of Registration Statement on Form
N-1A, filed on April 30, 1991.
(3) Not applicable.
(4)(a) Specimen form of Share Certificate for Money
Market Portfolio, Growth Portfolio, Growth and
Income Portfolio, Managed Income Portfolio, High
Yield Portfolio, Total Return Portfolio and
International Portfolio - Incorporated by
reference to Exhibit 4 to Registration Statement
on Form N-1A, filed on November 20, 1987.
(b) Specimen form of Share Certificate for U.S.
Government/High Grade Securities Portfolio,
Short-Term Multi-Market Portfolio - Incorporated
by reference to Exhibit 4(b) to Post-Effective
Amendment No. 4 of Registration Statement on Form
N-1A, filed on April 30, 1991
(c) Specimen form of Share Certificate for Global
Bond Portfolio - Incorporated by reference to
Exhibit 4(c) to Post-Effective Amendment No. 5 of
Registration Statement on Form N-1A, filed on
May 1, 1991.
(d) Specimen form of Share Certificate for Technology
Portfolio - Incorporated by reference to Exhibit
4(d) to Post-Effective Amendment No. 15 of
Registration Statement on Form N-1A, filed
April 30, 1996.
(5)(a) Advisory Agreement between the Registrant and
Alliance Capital Management L.P.- Incorporated by
reference to Exhibit 5(a) to Post-Effective
Amendment No. 13 to Registration Statement on
Form N-1A, filed May 1, 1995.
(b) Sub-Advisory Agreement between Alliance Capital
Management L.P. and Law, Dempsey & Company
Limited, relating to the Global Bond Portfolio -
Incorporated by reference to Exhibit (5)(b) to
Post-Effective Amendment No. 7 of the
Registration Statement on Form N-1A filed on
February 26, 1993.
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<PAGE>
(6) Distribution Services Agreement between the
Registrant and Alliance Fund Distributors, Inc. -
Incorporated by reference to Exhibit (6) to Post-
Effective Amendment No. 7 of the Registration
Statement on Form N-1A filed on February 26,
1993.
(7) Not applicable.
(8)(a) Amended Custodian Contract between the Registrant
and State Street Bank and Trust Company -
Incorporated by reference to Exhibit 8(a) to
Post-Effective Amendment No. 4 of Registration
Statement on Form N-1A, filed on April 30, 1991.
(9) Not applicable
(10) Not applicable.
(11) Consent of Independent Auditors - filed herewith.
(12) Not applicable
(13) Not applicable
(14) Not applicable
(15) Not applicable
(16)(a) Schedule for computation of Yield and Total
Return Performance Quotation - Incorporated by
reference to Exhibit 16 to Post-Effective
Amendment No. 4 of Registration Statement on Form
N-1A, filed on April 30, 1991.
(b) Schedule for computation of Yield Quotation for
the Money market Portfolio - Incorporated by
reference to Exhibit 16(b) to Post-Effective
Amendment No. 13 of Registration Statement on
Form N-1A, filed May 1, 1995.
OTHER EXHIBIT:
Powers of Attorney of David H. Dievler, John D.
Carifa, William H. Foulk, Jr. and Robert C. White-
Incorporated by reference to Other Exhibit to Post-
Effective Amendment No. 4 of Registration Statement on
Form N-1A, filed on April 30, 1991.
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<PAGE>
Power of Attorney of John H. Dobkin - Incorporated by
reference to Other Exhibit to Post Effective Amendment
No. 7 filed on February 26, 1993.
ITEM 25. Persons Controlled by or under Common Control
with Registrant.
None.
ITEM 26. Number of Holders of Securities.
NUMBER OF RECORD HOLDERS
TITLE OF CLASS September 30, 1996
Common Stock:
Short-Term Multi-Market Portfolio 13
Growth and Income Portfolio 8
Global Bond Portfolio 5
Money Market Portfolio 4
Premier Growth Portfolio 5
U.S. Government/High Grade Portfolio 5
High Yield Portfolio 0
International Portfolio 5
Total Return Portfolio 4
North American Government Income Portfolio 4
Global Dollar Government Portfolio 4
Utility Income Portfolio 5
Conservative Investors Portfolio 5
Growth Investors Portfolio 5
Worldwide Privatization Portfolio 4
Growth Portfolio 6
Technology Portfolio 4
ITEM 27. Indemnification.
It is the Registrant's policy to indemnify its
directors and officers, employees and other agents to
the maximum extent permitted by Section 2-418 of the
General Corporation Law of the State of Maryland and
as set forth in Article EIGHTH of Registrant's
Articles of Incorporation, filed as Exhibit 1,
Article VII of the Registrant's By-Laws filed as
Exhibit 2 and Section 9 of the Distribution Services
Agreement filed as Exhibit 6(a), all as set forth
below. Registrant's Articles of Incorporation and
Article VII, Section 1 through Section 6 of the
Registrant's By-Laws, as set forth below. The
Adviser's liability for any loss suffered by the
Registrant or its shareholders is set forth in Section
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<PAGE>
4 of the Advisory Agreement filed as Exhibit 5(a) in
response to Item 24, as set forth below.
Section 2-418 of the Maryland General Corporation Law reads
as follows:
"2-418 INDEMNIFICATION OF DIRECTORS, OFFICERS,
EMPLOYEES AND AGENTS.--(a) In this section the
following words have the meaning indicated.
(1) "Directors" means any person who is or
was a director of a corporation and any person
who, while a director of a corporation, is or
was serving at the request of the corporation as
a director, officer, partner, trustee, employee,
or agent of another foreign or domestic
corporation, partnership, joint venture, trust,
other enterprise, or employee benefit plan.
(2) "Corporation" includes any domestic or
foreign predecessor entity of a corporation in a
merger, consolidation, or other transaction in
which the predecessor's existence ceased upon
consummation of the transaction.
(3) "Expenses" include attorney's fees.
(4) "Official capacity" means the
following:
(i) When used with respect to a
director, the office of director in the
corporation; and
(ii) When used with respect to a person
other than a director as contemplated in
subsection (i), the elective or appointive
office in the corporation held by the officer,
or the employment or agency relationship
undertaken by the employee or agent in behalf of
the corporation.
(iii) "Official capacity" does not
include service for any other foreign or
domestic corporation or any partnership, joint
venture, trust, other enterprise, or employee
benefit plan.
(5) "Party" includes a person who was, is,
or is threatened to be made a named defendant or
respondent in a proceeding.
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<PAGE>
(6) "Proceeding" means any threatened,
pending or completed action, suit or proceeding,
whether civil, criminal, administrative, or
investigative.
(b)(1) A corporation may indemnify any
director made a party to any proceeding by
reason of service in that capacity unless it is
established that:
(i) The act or omission of the
director was material to the matter giving rise
to the proceeding; and
1. Was committed in bad faith;
or
2. Was the result of active and
deliberate dishonesty; or
(ii) The director actually received an
improper personal benefit in money, property, or
services; or
(iii) In the case of any criminal
proceeding, the director had reasonable cause to
believe that the act or omission was unlawful.
(2) (i) Indemnification may be against
judgments, penalties, fines, settlements, and
reasonable expenses actually incurred by the
director in connection with the proceeding.
(ii) However, if the proceeding was one
by or in the right of the corporation,
indemnification may not be made in respect of
any proceeding in which the director shall have
been adjudged to be liable to the corporation.
(3) (i) The termination of any proceeding
by judgment, order or settlement does not create
a presumption that the director did not meet the
requisite standard of conduct set forth in this
subsection.
(ii) The termination of any proceeding
by conviction, or a plea of nolo contendere or
its equivalent, or an entry of an order of
probation prior to judgment, creates a
rebuttable presumption that the director did not
meet that standard of conduct.
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(c) A director may not be indemnified
under subsection (b) of this section in respect
of any proceeding charging improper personal
benefit to the director, whether or not
involving action in the director's official
capacity, in which the director was adjudged to
be liable on the basis that personal benefit was
improperly received.
(d) Unless limited by the charter:
(1) A director who has been
successful, on the merits or otherwise, in the
defense of any proceeding referred to in
subsection (b) of this section shall be
indemnified against reasonable expenses incurred
by the director in connection with the
proceeding.
(2) A court of appropriate
jurisdiction upon application of a director and
such notice as the court shall require, may
order indemnification in the following
circumstances:
(i) If it determines a director is
entitled to reimbursement under paragraph (1) of
this subsection, the court shall order
indemnification, in which case the director
shall be entitled to recover the expenses of
securing such reimbursement; or
(ii) If it determines that the director
is fairly and reasonably entitled to
indemnification in view of all the relevant
circumstances, whether or not the director has
met the standards of conduct set forth in
subsection (b) of this section or has been
adjudged liable under the circumstances
described in subsection (c) of this section, the
court may order such indemnification as the
court shall deem proper. However,
indemnification with respect to any proceeding
by or in the right of the corporation or in
which liability shall have been adjudged in the
circumstances described in subsection (c) shall
be limited to expenses.
(3) A court of appropriate
jurisdiction may be the same court in which the
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<PAGE>
proceeding involving the director's liability
took place.
(e) (1) Indemnification under subsection
(b) of this section may not be made by the
corporation unless authorized for a specific
proceeding after a determination has been made
that indemnification of the director is
permissible in the circumstances because the
director has met the standard of conduct set
forth in subsection (b) of this section.
(2) Such determination shall be made:
(i) By the board of directors by a
majority vote of a quorum consisting of
directors not, at the time, parties to the
proceeding, or, if such a quorum cannot be
obtained, then by a majority vote of a committee
of the board consisting solely of two or more
directors not, at the time, parties to such
proceeding and who were duly designated to act
in the matter by a majority vote of the full
board in which the designated directors who are
parties may participate;
(ii) By special legal counsel selected
by the board or a committee of the board by vote
as set forth in subparagraph (i) of this
paragraph, or, if the requisite quorum of the
full board cannot be obtained therefor and the
committee cannot be established, by a majority
vote of the full board in which directors who
are parties may participate; or
(iii) By the stockholders.
(3) Authorization of indemnification and
determination as to reasonableness of expenses
shall be made in the same manner as the
determination that indemnification is
permissible. However, if the determination that
indemnification is permissible is made by
special legal counsel, authorization of
indemnification and determination as to
reasonableness of expenses shall be made in the
manner specified in subparagraph (ii) of
paragraph (2) of this subsection for selection
of such counsel.
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<PAGE>
(4) Shares held by directors who are
parties to the proceeding may not be voted on
the subject matter under this subsection.
(f) (1) Reasonable expenses incurred by a
director who is a party to a proceeding may be
paid or reimbursed by the corporation in advance
of the final disposition of the proceeding, upon
receipt by the corporation of:
(i) A written affirmation by the
director of the director's good faith belief
that the standard of conduct necessary for
indemnification by the corporation as authorized
in this section has been met; and
(ii) A written undertaking by or on
behalf of the director to repay the amount if it
shall ultimately be determined that the standard
of conduct has not been met.
(2) The undertaking required by
subparagraph (ii) of paragraph (1) of this
subsection shall be an unlimited general
obligation of the director but need not be
secured and may be accepted without reference to
financial ability to make the repayment.
(3) Payments under this subsection
shall be made as provided by the charter,
bylaws, or contract or as specified in
subsection (e) of this section.
(g) The indemnification and advancement of
expenses provided or authorized by this section
may not be deemed exclusive of any other rights,
by indemnification or otherwise, to which a
director may be entitled under the charter, the
bylaws, a resolution of stockholders or
directors, an agreement or otherwise, both as to
action in an official capacity and as to action
in another capacity while holding such office.
(h) This section does not limit the
corporation's power to pay or reimburse expenses
incurred by a director in connection with an
appearance as a witness in a proceeding at a
time when the director has not been made a named
defendant or respondent in the proceeding.
(i) For purposes of this section:
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(1) The corporation shall be deemed to
have requested a director to serve an employee
benefit plan where the performance of the
director's duties to the corporation also
imposes duties on, or otherwise involves
services by, the director to the plan or
participants or beneficiaries of the plan:
(2) Excise taxes assessed on a
director with respect to an employee benefit
plan pursuant to applicable law shall be deemed
fines; and
(3) Action taken or omitted by the
director with respect to an employee benefit
plan in the performance of the director's duties
for a purpose reasonably believed by the
director to be in the interest of the
participants and beneficiaries of the plan shall
be deemed to be for a purpose which is not
opposed to the best interests of the
corporation.
(j) Unless limited by the charter:
(1) An officer of the corporation
shall be indemnified as and to the extent
provided in subsection (d) of this section for a
director and shall be entitled, to the same
extent as a director, to seek indemnification
pursuant to the provisions of subsection (d);
(2) A corporation may indemnify and
advance expenses to an officer, employee, or
agent of the corporation to the same extent that
it may indemnify directors under this section;
and
(3) A corporation, in addition, may
indemnify and advance expenses to an officer,
employee, or agent who is not a director to such
further extent, consistent with law, as may be
provided by its charter, bylaws, general or
specific action of its board of directors or
contract.
(k) (1) A corporation may purchase and
maintain insurance on behalf of any person who
is or was a director, officer, employee, or
agent of the corporation, or who, while a
director, officer, employee, or agent of the
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corporation, is or was serving at the request,
of the corporation as a director, officer,
partner, trustee, employee, or agent of another
foreign or domestic corporation, partnership,
joint venture, trust, other enterprise, or
employee benefit plan against any liability
asserted against and incurred by such person in
any such capacity or arising out of such
person's position, whether or not the
corporation would have the power to indemnify
against liability under the provisions of this
section.
(2) A corporation may provide similar
protection, including a trust fund, letter of
credit, or surety bond, not inconsistent with
this section.
(3) The insurance or similar
protection may be provided by a subsidiary or an
affiliate of the corporation.
(l) Any indemnification of, or advance of
expenses to, a director in accordance with this
section, if arising out of a proceeding by or in
the right of the corporation, shall be reported
in writing to the stockholders with the notice
of the next stockholders' meeting or prior to
the meeting."
Article EIGHTH of the Registrant's Articles of
Incorporation reads as follows:
"EIGHTH: To the maximum permitted by the General
Corporation Law of the State of Maryland as from time
to time amended, the Corporation shall indemnify its
currently acting and its former directors and officers
and those persons who, at the request of the
Corporation, serve or have served another Corporation,
partnership, joint venture, trust or other enterprise
in one or more of such Corporations.
The Advisory Agreement between the Registrant and
Alliance Capital Management L.P. provides that
Alliance Capital Management L.P. will not be liable
under such agreements for any mistake of judgment or
in any event whatsoever except for lack of good faith
and that nothing therein shall be deemed to protect,
or purport to protect, Alliance Capital Management
L.P. against any liability to Registrant or its
security holders to which it would otherwise be
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subject by reason of willful misfeasance, bad faith or
gross negligence in the performance of its duties
thereunder, or by reason of reckless disregard of its
obligations or duties thereunder.
The Distribution Services Agreement between the
Registrant and Alliance Fund Distributors, Inc.
provides that the Registrant will indemnify, defend
and hold Alliance Fund Distributors, Inc., and any
person who controls it within the meaning of Section
15 of the Investment Company Act of 1940, free and
harmless from and against any and all claims, demands,
liabilities and expenses which Alliance Fund
Distributors, Inc. or any controlling person may incur
arising out of or based upon any alleged untrue
statement of a material fact contained in Registrant's
Registration Statement or Prospectus or Statement of
Additional Information or arising out of, or based
upon any alleged omission to state a material fact
required to be stated in either thereof or necessary
to make the statements in any thereof not misleading,
provided that nothing therein shall be so construed as
to protect Alliance Fund Distributors against any
liability to Registrant or its security holders to
which it would otherwise be subject by reason of
willful misfeasance, bad faith or gross negligence in
the performance of its duties, or be reason of
reckless disregard of its obligations or duties
thereunder. The foregoing summaries are qualified by
the entire text of Registrant's Articles of
Incorporation, the Advisory Agreement between the
Registrant and Alliance Capital Management L.P. and
the Distribution Services Agreement between the
Registrant and Alliance Fund Distributors, Inc.
Insofar as indemnification for liabilities arising
under the Securities Act of 1933, as amended (the
"Securities Act") may be permitted to directors,
officers and controlling persons of the Registrant
pursuant to the foregoing provisions, or otherwise,
the Registrant has been advised that, in the opinion
of the Securities and Exchange Commission, such
indemnification is against public policy as expressed
in the Securities Act and is, therefore,
unenforceable. In the event that a claim for
indemnification against such liabilities (other than
the payment by the Registrant of expenses incurred or
paid by a director, officer or controlling person of
the Registrant in the successful defense of any
action, suit or proceeding) is asserted by such
director, officer or controlling person in connection
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with the securities being registered, the Registrant
will, unless in the opinion of its counsel the matter
has been settled by controlling precedent, submit to a
court of appropriate jurisdiction the question of
whether such indemnification by it is against public
policy as expressed in the Securities Act and will be
governed by the final adjudication of such issue.
In accordance with Release No. IC-11330 (September 2,
1980), the Registrant will indemnify its directors,
officers, investment manager and principal
underwriters only if (1) a final decision on the
merits was issued by the court or other body before
whom the proceeding was brought that the person to be
indemnified (the "indemnitee") was not liable by
reason or willful misfeasance, bad faith, gross
negligence or reckless disregard of the duties
involved in the conduct of his office ("disabling
conduct") or (2) a reasonable determination is made,
based upon a review of the facts, that the indemnitee
was not liable by reason of disabling conduct, by
(a) the vote of a majority of a quorum of the
directors who are neither "interested persons" of the
Registrant as defined in section 2(a)(19) of the
Investment Company Act of 1940 nor parties to the
proceeding ("disinterested, non-party directors"), or
(b) an independent legal counsel in a written opinion.
The Registrant will advance attorneys fees or other
expenses incurred by its directors, officers,
investment adviser or principal underwriters in
defending a proceeding, upon the undertaking by or on
behalf of the indemnitee to repay the advance unless
it is ultimately determined that he is entitled to
indemnification and, as a condition to the advance,
(1) the indemnitee shall provide a security for his
undertaking, (2) the Registrant shall be insured
against losses arising by reason of any lawful
advances, or (3) a majority of a quorum of
disinterested, non-party directors of the Registrant,
or an independent legal counsel in a written opinion,
shall determine, based on a review of readily
available facts (as opposed to a full trial-type
inquiry), that there is reason to believe that the
indemnitee ultimately will be found entitled to
indemnification.
ARTICLE VII, Section 1 through Section 6 of the
Registrant's By-laws reads as follows:
"Section 1. INDEMNIFICATION OF DIRECTORS AND
OFFICERS. The Corporation shall indemnify its
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directors to the fullest extent that indemnification
of directors is permitted by the Maryland General
Corporation Law. The Corporation shall indemnify its
officers to the same extent as its directors and to
such further extent as is consistent with law. The
Corporation shall indemnify its directors and officers
who while serving as directors or officers also serve
at the request of the Corporation as a director,
officer, partner, trustee, employee, agent or
fiduciary of another corporation, partnership, joint
venture, trust, other enterprise or employee benefit
plan to the fullest extent consistent with law. The
indemnification and other rights provided by this
Article shall continue as to a person who has ceased
to be a director or officer and shall inure to the
benefit of the heirs, executors and administrators of
such a person. This Article shall not protect any
such person against any liability to the Corporation
or any stockholder thereof to which such person would
otherwise be subject by reason of willful misfeasance,
bad faith, gross negligence or reckless disregard of
the duties involved in the conduct of his office
("disabling conduct").
"Section 2. ADVANCES. Any current or former director
or officer of the Corporation seeking indemnification
within the scope of this Article shall be entitled to
advances from the Corporation for payment of the
reasonable expenses incurred by him in connection with
the matter as to which he is seeking indemnification
in the manner and to the fullest extent permissible
under the Maryland General Corporation Law. The
person seeking indemnification shall provide to the
Corporation a written affirmation of his good faith
belief that the standard of conduct necessary for
indemnification by the Corporation has been met and a
written undertaking to repay any such advance if it
should ultimately be determined that the standard of
conduct has not been met. In addition, at least one
of the following additional conditions shall be met:
(a) the person seeking indemnification shall provide a
security in form and amount acceptable to the
Corporation for his undertaking; (b) the Corporation
is insured against losses arising by reason of the
advance; or (c) a majority of a quorum of directors of
the Corporation who are neither "interested persons"
as defined in Section 2(a)(19) of the Investment
Company Act of 1940, as amended, nor parties to the
proceeding ("disinterested non-party directors"), or
independent legal counsel, in a written opinion, shall
have determined, based on a review of facts readily
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available to the Corporation at the time the advance
is proposed to be made, that there is reason to
believe that the person seeking indemnification will
ultimately be found to be entitled to indemnification.
"Section 3. PROCEDURE. At the request of any person
claiming indemnification under this Article, the Board
of Directors shall determine, or cause to be
determined, in a manner consistent with the Maryland
General Corporation Law, whether the standards
required by this Article have been met.
Indemnification shall be made only following: (a) a
final decision on the merits by a court or other body
before whom the proceeding was brought that the person
to be indemnified was not liable by reason of
disabling conduct or (b) in the absence of such a
decision, a reasonable determination, based upon a
review of the facts, that the person to be indemnified
was not liable by reason of disabling conduct by
(i) the vote of a majority of a quorum of
disinterested non-party directors or (ii) an
independent legal counsel in a written opinion.
"Section 4. INDEMNIFICATION OF EMPLOYEES AND AGENTS.
Employees and agents who are not officers or directors
of the Corporation may be indemnified, and reasonable
expenses may be advanced to such employees or agents,
as may be provided by action of the Board of Directors
or by contract, subject to any limitations imposed by
the Investment Company Act of 1940.
"Section 5. OTHER RIGHTS. The Board of Directors may
make further provision consistent with law for
indemnification and advance of expenses to directors,
officers, employees and agents by resolution,
agreement or otherwise. The indemnification provided
by this Article shall not be deemed exclusive of any
other right, with respect to indemnification or
otherwise, to which those seeking indemnification may
be entitled under any insurance or other agreement or
resolution of stockholders or disinterested directors
or otherwise. The rights provided to any person by
this Article shall be enforceable against the
Corporation by such person who shall be presumed to
have relied upon it in serving or continuing to serve
as a director, officer, employee, or agent as provided
above.
"Section 6. AMENDMENTS. References in this Article
are to the Maryland General Corporation Law and to the
Investment Company Act of 1940 as from time to time
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amended. No amendment of these By-laws shall effect
any right of any person under this Article based on
any event, omission or proceeding prior to the
amendment."
The Registrant participates in a joint directors and
officers liability insurance policy issued by the ICI
Mutual Insurance Company. Coverage under this policy
has been extended to directors, trustees and officers
of the investment companies managed by Alliance
Capital Management L.P. Under this policy, outside
trustees and directors are covered up to the limits
specified for any claim against them for acts
committed in their capacities as trustee or director.
A pro rata share of the premium for this coverage is
charged to each investment company and to the Adviser.
ITEM 28. Business and Other Connections of Adviser.
The descriptions of Alliance Capital Management L.P.
under the caption "Management of the Fund" in the
Prospectus and in the Statement of Additional
Information constituting Parts A and B, respectively,
of this Registration Statement are incorporated by
reference herein.
The information as to the directors and executive
officers of Alliance Capital Management Corporation,
the general partner of Alliance Capital Management
L.P., set forth in Alliance Capital Management L.P.'s
Form ADV filed with the Securities and Exchange
Commission on April 21, 1988 (File No. 801-32361) and
amended through the date hereof, is incorporated by
reference herein.
ITEM 29. Principal Underwriters.
(a) Alliance Fund Distributors, Inc., the Registrant's
Principal Underwriter in connection with the sale of
shares of the Registrant, also acts as Principal
Underwriter or Distributor for the following
investment companies:
ACM Institutional Reserves, Inc.
AFD Exchange Reserves
The Alliance Fund, Inc.
Alliance All-Asia Investment Fund, Inc.
Alliance Balanced Shares, Inc.
Alliance Bond Fund, Inc.
Alliance Capital Reserves
Alliance Developing Markets Fund, Inc.
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Alliance Global Fund
Alliance Global Dollar Government Fund, Inc.
Alliance Global Small Cap Fund, Inc.
Alliance Global Strategic Income Trust, Inc.
Alliance Government Reserves
Alliance Growth and Income Fund, Inc.
Alliance Income Builder Fund, Inc.
Alliance International Fund
Alliance Limited Maturity Government Fund, Inc.
Alliance Money Market Fund
Alliance Mortgage Securities Income Fund, Inc.
Alliance Multi-Market Strategy Trust, Inc.
Alliance Municipal Income Fund, Inc.
Alliance Municipal Income Fund, Inc. II
Alliance Municipal Trust
Alliance New Europe Fund, Inc.
Alliance North American Government Income Trust,
Inc.
Alliance Premier Growth Fund, Inc.
Alliance Quasar Fund, Inc.
Alliance Real Estate Investment Fund, Inc.
Alliance Short-Term Multi-Market Trust, Inc.
Alliance Technology Fund, Inc.
Alliance Utility Income Fund, Inc.
Alliance World Income Trust, Inc.
Alliance Worldwide Privatization Fund, Inc.
Fiduciary Management Associates
The Alliance Portfolios
(b) The following are the Directors and Officers of
Alliance Fund Distributors, Inc., the principal place
of business of which is 1345 Avenue of the Americas,
New York, New York, 10105.
POSITIONS AND OFFICES POSITIONS AND OFFICES
NAME WITH UNDERWRITER WITH REGISTRANT
Michael J. Laughlin Chairman
Robert L. Errico President
Edmund P. Bergan, Jr. Senior Vice President, Secretary
General Counsel
and Secretary
Daniel J. Dart Senior Vice President
Byron M. Davis Senior Vice President
Richard A. Davies Senior Vice President
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Kimberly A. Gardener Senior Vice President
Geoffrey L. Hyde Senior Vice President
Barbara J. Krumseik Senior Vice President
Stephen R. Laut Senior Vice President
Daniel D. McGingley Senior Vice President
Dusty W. Paschall Senior Vice President
Antonios G. Poleonadkis Senior Vice President
Gregory K. Shannahan Senior Vice President
Joseph F. Sumanski Senior Vice President
Peter J. Szabo Senior Vice President
Nicholas K. Willett Senior Vice President
Richard A. Winge Senior Vice President
Warren W. Babcock, III Vice President
Benji A. Baer Vice President
Kenneth F. Barkoff Vice President
William P. Beanblossom Vice President
Jack C. Bixler Vice President
Casimir F. Bolanowski Vice President
Kevin T. Cannon Vice President
William W. Collins, Jr. Vice President
Richard W. Dabney Vice President
John F. Dolan Vice President
Mark J. Dunbar Vice President
Sohaila S. Farsheed Vice President
Linda A. Finnerty Vice President
William C. Fisher Vice President
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<PAGE>
Robert M. Frank Vice President
Gerard J. Friscia Vice President & Controller
Andrew L. Gangolf Vice President
Mark D. Gersten Vice President Treasurer, CFO and
Assistant Secretary
Joseph W. Gibson Vice President
Herbert H. Goldman Vice President
James E. Gunter Vice President
Alan Halfenger Vice President
Daniel M. Hazard Vice President
George R. Hrabovsky Vice President
Valerie J. Hugo Vice President
Robert H. Joseph, Jr. Vice President & Treasurer
Richard D. Keppler Vice President
Sheila F. Lamb Vice President
Donna M. Lamback Vice President
Thomas Leavitt, III Vice President
James M. Liptrot Vice President
James P. Luisi Vice President
Christopher J. MacDonald Vice President
Michael F. Mahoney Vice President
Maura A. McGrath Vice President
Matthew P. Mintzer Vice President
Joanna D. Murray Vice President
Nicole Nolan-Koester Vice President
Daniel J. Phillips Vice President
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Robert T. Pigozzi Vice President
James J. Posch Vice President
Robert E. Powers Vice President
Domenick Pugliese Vice President
Bruce W. Reitz Vice President
Dennis A. Sanford Vice President
Raymond S. Sclafani Vice President
Richard J. Sidell Vice President
J. William Stratt, Jr. Vice President
Richard E. Tambourine Vice President
Joseph T. Tocylosky Vice President
Neil S. Wood Vice President
Emilie D. Wrapp Vice President
Maria L. Carreras Assistant Vice President
Sarah A. Chodara Assistant Vice President
John W. Cronin Assistant Vice President
Leon M. Fern Assistant Vice President
William B. Hanigan Assistant Vice President
Vicky M. Hayes Assistant Vice President
John C. Hershock Assistant Vice President
James J. Hill Assistant Vice President
Thomas K. Intoccia Assistant Vice President
Edward W. Kelly Assistant Vice President
Patrick Look Assistant Vice President
Shawn P. McClain Assistant Vice President
Thomas F. Monnerat Assistant Vice President
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Jeanette M. Nardella Assistant Vice President
Carol H. Rappa Assistant Vice President
Lisa Robinson-Cronin Assistant Vice President
Karen C. Satterberg Assistant Vice President
Robert M. Smith Assistant Vice President
Joseph T. Tocyloski Assistant Vice President
Wesley S. Williams Assistant Vice President
Mark R. Manley Assistant Vice President
(c) Not Applicable.
ITEM 30. Location of Accounts and Records.
The accounts, books and other documents required to be
maintained by Section 31(a) of the Investment Company Act of 1940
and the Rules thereunder are maintained as follows: journals,
ledgers, securities records and other original records are
maintained principally at the offices of Alliance Fund Services,
Inc., 500 Plaza Drive, Secaucus, New Jersey 07094, and at the
offices of State Street Bank and Trust Company, the Registrant's
Custodian, 225 Franklin Street, Boston, Massachusetts 02110. All
other records so required to be maintained are maintained at the
offices of Alliance Capital Management L.P., 1345 Avenue of the
Americas, New York, New York 10105.
ITEM 31. Management Services.
Not Applicable.
ITEM 32. Undertakings.
(b) Registrant undertakes to file a Post-Effective
Amendment, using financial statements pertaining to the Quasar
Portfolio, which need not be certified, within four to six months
from the effective date of the amendment to its Securities Act of
1933 Registration Statement.
(c) The Registrant undertakes to furnish each person to
whom a prospectus is delivered with a copy of the Registrant's
latest annual report to shareholders upon request and without
charge.
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SIGNATURES
Pursuant to the requirements of the Securities Act of
1933, as amended, and the Investment Company Act of 1940, as
amended, the Registrant certifies that it meets all of the
requirements for effectiveness of this Amendment to its
Registration Statement pursuant to Rule 485(b) under the
Securities Act of 1933 and has duly caused this amendment to the
Registration Statement to be signed on its behalf by the
undersigned, thereunto duly authorized, in the City of New York
and State of New York, on the 9th day of October, 1996.
ALLIANCE VARIABLE PRODUCTS
SERIES FUND, INC.
by /s/ John D. Carifa
_____________________
John D. Carifa
Chairman and President
Pursuant to the requirements of the Securities Act of
1933, as amended, this Amendment to the Registration Statement
has been signed below by the following persons in the capacities
and on the date indicated:
SIGNATURE TITLE DATE
1. Principal Executive Officer
/s/ John D. Carifa Chairman and October 9, 1996
__________________
John D. Carifa
2. Principal Financial and
Accounting Officer
/s/ Mark D. Gersten Treasurer and October 9, 1996
___________________ Chief Financial
Mark D. Gersten Officer
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3. A majority of the Directors
David H. Dievler
John D. Carifa
William H. Foulk, Jr.
John H. Dobkin
Robert C. White
by /s/ Edmund P. Bergan, Jr. October 9, 1996
____________________________
(Attorney-in-fact)
Edmund P. Bergan, Jr.
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INDEX TO EXHIBITS
EXHIBIT NO.
C-25
00250292.AX8
