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ALLIANCE VARIABLE PRODUCTS
Alliance Capital [Logo] (R) SERIES FUND, INC.
Supplement Dated January 2, 1996 to Prospectus Dated May 1, 1995
This Supplement to the current Prospectus of
Alliance Variable Products Series Fund, Inc. (the "Fund")
sets forth disclosure regarding the Technology Portfolio of
the Fund. This Supplement should be read in conjunction
with the Prospectus.
Technology Portfolio.
Effective January 2, 1996 the Fund is offering
shares of the Technology Portfolio.
The Technology Portfolio seeks growth of capital
through investment in companies expected to benefit from
advances in technology. The Technology 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.
The Technology Portfolio's investment objectives
cannot be changed without approval by the holders of a
majority of the Technology Portfolio's outstanding voting
securities, as defined in the Investment Company Act of
1940, as amended (the "Act"). The Fund may change the
Technology Portfolio's investment policies that are not
designated "fundamental policies" within the meaning of the
Act upon notice to the shareholders of the Technology
Portfolio, but without their approval. There can be, of
course, no assurance that the Technology Portfolio will
achieve its investment objectives. The types of portfolio
securities in which the Technology Portfolio may invest are
described in greater detail below.
(R) This registered mark used under license from the owner,
Alliance Capital Management L.P.
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Expense Information.
Shareholder Transaction Expenses
The Technology Portfolio has no sales load on
purchases or reinvested dividends, deferred sales load,
redemption fee or exchange fee.
(Annual Technology Portfolio Operating Expenses
as a percentage of average net assets)
Management Fees.................................. 0%*
Other Expenses................................... .95%*
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Total Technology Portfolio Operating Expenses .95%
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* 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
$10 $30
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. "Other Expenses" for the Technology Portfolio
are based on estimated amounts for the Technology
Portfolio's current fiscal year. The example should not be
considered representative of future expenses; actual
expenses may be greater or less than those shown.
Description of the Technology Portfolio.
The Technology Portfolio is a diversified
investment portfolio that emphasizes growth of capital and
invests for capital appreciation, and only incidentally for
current income. The Technology 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
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improved products or processes). The Technology Portfolio
will normally have at least 80% of its assets invested in
the securities of these companies. The Technology 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
Technology Portfolio will invest in listed and unlisted
securities and U.S. and foreign securities, but it will not
purchase a foreign security if as a result 10% or more of
the Technology Portfolio's total assets would be invested in
foreign securities.
The Technology 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 Technology 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
Technology Portfolio's total assets and invest up to 10% of
its total assets in foreign securities.
Options. The Technology Portfolio may write and
purchase exchange-listed call options and purchase listed
put options, including exchange-traded index put options.
The Technology Portfolio will not write uncovered call
options and will not write a call option if the premium to
be received by the Technology 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 Technology Portfolio will not write a call option if, as
a result, the aggregate of the Technology 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 Technology Portfolio's
total assets or more than 10% of the Technology 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 the Technology Portfolio will at no time exceed 10% of
the Technology Portfolio's total assets.
Rights and Warrants. The Technology Portfolio may
also invest up to 10% of its total assets in rights and
warrants. The Technology Portfolio will invest in rights
and warrants only if the underlying equity securities
themselves are deemed appropriate by the Adviser for
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inclusion in the Technology 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 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 Technology
Portfolio's investment policies and techniques, see "Other
Investment Policies and Techniques" in the Prospectus.
Portfolio Turnover.
The Adviser anticipates that the Technology
Portfolio's annual rate of portfolio turnover will not be in
excess of 100%. See "Other Investment Policies and
Techniques - Portfolio Turnover" in the Prospectus.
Certain Fundamental Investment
Policies of the Technology Portfolio.
The Technology 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 Technology Portfolio's
total assets, and not more than 10% of the outstanding
voting securities of such issuers; (ii) purchase the
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 Technology Portfolio in the
securities of such issuer exceeds 25% of its total assets,
or (b) the Technology 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 Technology Portfolio has reserved the
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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.
Portfolio Management.
The employees of the Adviser principally
responsible for the Technology Portfolio's investment
program 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.
Advisory Fee.
The Technology Portfolio pays the Adviser at an
annual rate of 1.00% of the average daily value of its net
assets. The fees are accrued daily and paid monthly.
YOU SHOULD RETAIN THIS SUPPLEMENT WITH YOUR PROSPECTUS FOR
FUTURE REFERENCE.
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