ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
Semi-Annual Report
June 30, 1996
(Unaudited)
The following Semi-Annual Report for the Alliance Variable Products Series
Fund, Inc. (the "Fund") includes financial information for the sixteen
Portfolios of the Fund which were active as of June 30, 1996. Not all
Portfolios of the Fund are available through each insurance product offering
investments in the Fund.
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Alliance Variable Products Series Fund, Inc.
Letter to Shareholders
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July 22, 1996
Dear Investor:
We are pleased to report to you on the investment performance and activities
of the Alliance Variable Products Series Fund for the six months ended June
30, 1996. Financial markets worldwide offered a range of investment
opportunities during the period. Some sectors, markets, and securities thrived
in the prevailing economic and business climate, while others stalled or
stumbled. Arguably, under such circumstances, comprehensive research, market
expertise, prudent investment selections, diversification, and patience are
requisites to investing successfully.
We also believe that the Alliance Variable Series Fund remains an excellent
vehicle for investors interested in building assets for the future. Individual
investors have unique investment needs. Having a variety of investment
alternatives from which to choose encourages a customized strategy and,
equally important, provides the diversification needed to survive fickle
markets.
For those reasons, I'm pleased to report that we added a new portfolio to the
Fund in January 1996. The Technology Portfolio, which is discussed on page 16,
is managed by Peter Anastos and Gerald Malone. Peter and Gerry, who manage
other technology funds for Alliance Capital, offer substantial expertise and a
solid investment record in this highly specialized, often difficult, but
potentially rewarding sector of the market.
In addition, we are adding the Quasar Portfolio to the Fund in August. The
Quasar Portfolio will seek growth of capital by pursuing aggressive investment
policies. While it will invest primarily in the equity securities of small
companies, it may invest in any type of security issued by any company in any
industry that we believe to offer possibilities for capital appreciation. The
Portfolio may also pursue investments outside the United States.
Of course, there are risks associated with an aggressive strategy, and
investments in foreign securities face the potential risks of currency
fluctuations, political instability, and financial and investment practices
and standards that differ from those in the United States. We believe,
however, that investors who wish to participate in the growth prospects of
small companies will find a well-researched and professionally managed
portfolio a prudent way to invest. The managers of the Quasar Portfolio, Al
Stewart and Randall Haase, are experienced managers of small-company
securities and aggressive growth portfolios.
I invite you to read the commentaries and performance summaries that follow.
On behalf of Alliance Capital Management, I wish to thank you for your
investments in the Alliance Variable Products Series Fund. We look forward to
managing your assets and reporting on their progress in the coming period.
Sincerely,
/s/ John D. Carifa
John D. Carifa
Chairman and President
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HIGHLIGHTS
The first half of 1996 was anything but smooth sailing for investors. World
equity and bond markets pursued different paths, with returns on equities
advancing and bond prices mildly contracting. The end results gloss over the
swings and shifts that were characteristic of both markets during the period.
THE U.S. ECONOMY AND MARKETS
In the United States, gross domestic product (GDP) rose from 0.5% in the
fourth quarter of 1995 to 2.3% in the first three months of 1996. Investors
had not anticipated the sharp about-face. As the possibility of recession
receded, confidence in the prospects for moderate but sustained economic
growth increased. That shift in expectations set off a string of negative
monthly returns in the fixed-income markets and boosted the returns on the
stocks of small and mid-sized companies.
In the second quarter, the economy continued to pick up steam, as evidenced by
the 4.2% increase in GDP. That acceleration in growth coupled with
surprisingly strong employment data caused investor sentiment to shift once
again. With concern about inflation mounting, investors wrestled with the
possibility that the Federal Reserve would severely tighten monetary policy by
raising interest rates. During the period, interest rates edged up causing
bond prices to falter. The same news undermined the performance of small- and
mid-capitalization stocks.
For technology stocks, which posted some of the best returns during the first
five months of the year, June was a difficult month. Share prices declined,
triggered by a spate of negative earnings forecasts and reports of overstocked
inventories. In investors' minds, the misfortunes of a few companies tarred
the outlook for the entire sector. Nevertheless, technology stocks provided
solid returns during the period. Other sectors that generally performed well
were consumer services, consumer staples, and capital goods.
Despite a number of steep one-day swings, the stock markets in the U.S.
handsomely rewarded investors in the first six months of 1996. The S&P
500-Stock Index, a measure of the broad market, closed up 10.1%, and the
Russell 2000-Stock Index, which tracks smaller company stocks, rose 10.4%.
The bond markets were not so hospitable. A 1% increase in interest rates and
indications that corporate earnings were decelerating produced negative
returns for most sectors. The Lehman Brothers Aggregate Bond Index, a measure
of the broad market, declined 1.2% during the period. Only mortgage-backed,
high-yield, and money-market securities posted gains.
ECONOMIES AND MARKETS ELSEWHERE
In Europe, economies teetered on the brink of recession in the first half of
1996. Few companies were as competitive as their U.S. counterparts. In
addition, consumers in most European countries lacked the confidence to open
their wallets. What growth their economies experienced was fueled more by
governmental policies and reactions to U.S.
monetary shifts than by consumer spending.
In Japan, the economy experienced a mild recovery during the first six months
of 1996. Fiscal and monetary intervention by the government aided the economy
and lifted corporate profits. Outside Japan, the economies of the Pacific
region generally remained robust.
Most developed markets in Europe and Asia underperformed the U.S. markets. The
Morgan Stanley Europe, Australia, and Far East Index, which tracks stock
markets overseas, rose 4.5% in U.S. dollar terms during the period. Results in
world bond markets were similarly disappointing, with both corporate and
government indices reporting negative returns for the full six-month period.
While several markets yielded double-digit performance in local currency
terms, those gains diminished when translated into the strengthening U.S.
dollar.
Investment opportunities were particularly attractive in the emerging stock
markets during the first half of 1996. The Morgan Stanley Emerging Markets
Free Index rose 10.7% on a U.S.-dollar basis.
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THE OUTLOOK
Going forward, we expect the U.S. economy will continue to grow, but more
slowly. We project growth in the range of 2% to 2.5% during the second half of
1996. As a result, U.S. fixed-income markets may offer better performance over
the next six months, although we anticipate troughs. Bond yields reached their
lows in 1995, when investors thought balanced-budget legislation would reduce
the rate of growth in entitlement spending. As prospects for structural change
fade, so too do bond prices. Although the deficit is shrinking on a short-term
basis, the absence of fundamental reform will soon produce revenue shortfalls,
and further deficit increases. Until the outcome of the election and the
impact of entitlement-spending reforms become clear, fixed-income markets will
continue to react to the vast array of economic and political forecasts.
International stocks appear to be good prospects in the second half of 1996.
They are attractively priced relative to U.S. stocks and have the potential
for major recovery both in business conditions and profitability. After two
years of underperforming the U.S. stock market, it seems that share-price
momentum may be shifting in favor of markets overseas.
Since the close of the Fund's fiscal six-month period on June 30, the U.S.
equity markets have suffered a series of setbacks caused first by a fear of
economic growth and then by the fear of an economic slowdown. Obviously, only
one of these scenarios can play out. Whatever the outcome, we view recent
price swings as a near-term correction and believe that the economy will land
firmly but softly on its feet.
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CONSERVATIVE INVESTORS PORTFOLIO
INVESTMENT OBJECTIVE
The Portfolio seeks the highest total return without, in the view of the
Fund's Adviser, undue risk to principal by investing in a diversified mix of
publicly traded equity and fixed-income securities.
MARKET REVIEW
The fixed-income markets did not fare as well as the equity markets during the
first half of 1996. The equity markets soared to new highs with the S&P 500
gaining 10.08% for the six months ending June 30, while the Lehman Brothers
Treasury Bond Index lost 1.84%. Unexpected signs of renewed economic growth
sparked a string of negative monthly returns in the fixed-income markets.
INVESTMENT RESULTS
At the beginning of the year, our forecast was for a weaker economy in 1996.
Consequently, the Portfolio was positioned with 78% of assets in fixed-income
securities. Furthermore, the fixed-income component had an average maturity
longer than the benchmark.
This defensive positioning hurt performance, causing the Portfolio to lag its
unmanaged benchmark, which is 70% composed of the Lehman Brothers Aggregate
Index and 30% composed of the S&P 500-Stock Index. The Portfolio declined
1.97%+ for the first six months of 1996, compared to a gain of 2.18% for the
benchmark. For additional information on the Portfolio's investment results,
see page 25.
INVESTMENT OUTLOOK AND PORTFOLIO STRATEGY
During the period, we carefully initiated a number of positive changes to the
Portfolio. Exposure to corporate bonds was reduced in favor of increased
mortgage positions. The higher interest-rate environment has caused prepayment
activity to decline, making mortgage securities relatively more attractive. As
evidence of a strengthening economy appeared, the fixed-income maturity was
shortened and is now in line with its benchmark.
The equity position was increased to 30%, which included approximately 7% in
international equities, due to their more attractive valuation levels and the
potential for major cyclical recovery in business conditions and profits. In
U.S. equities, we continue to focus on high quality stocks, as increased
emphasis is being placed on earnings predictability in a period of much slower
economic growth and in a much more difficult profit environment.
Looking forward, we believe the recent market volatility to be a mild
correction in reaction to the short-term valuation excesses that had developed
earlier in the year. We will continue to pursue opportunities for total return
consistent with the Portfolio's objective as they arise.
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GROWTH INVESTORS PORTFOLIO
INVESTMENT OBJECTIVE
The Portfolio seeks the highest total return consistent with what the Fund's
Adviser considers to be reasonable risk by investing in a diversified mix of
publicly traded equity and fixed-income securities.
MARKET REVIEW
Equity markets produced extraordinary gains during the first half of 1996 with
most domestic indices delivering returns in the double digits. This
performance substantially exceeded investors' expectations, especially
following the record returns posted in 1995. Fixed income markets ended the
half of 1996 in negative territory, posting gains in only January and June.
INVESTMENT RESULTS
At the beginning of 1996, your Portfolio was invested to reflect concerns
about a weakening economy and a deteriorating profit outlook. This forecast
supported a less-than-benchmark weighting in equities (53% stocks versus the
benchmark's 70% weighting), and an overweighted position in high quality
Treasury issues and cash.
However, economic data released during the first six months of 1996 indicated
a sharply expanding economy that increased the prospects of accelerating
inflation. Interest rates rose on this news, as did stock prices. These events
caused the Portfolio to underperform its unmanaged market benchmark 70%
composed of the S&P 500-Stock Index and 30% composed of the Lehman Brothers
Aggregate Bond Index. For the fiscal semi-annual period ended June 30, the
Portfolio provided a total return of 2.07%+ compared to the 6.70% return
reported by the benchmark for the same period. For additional information on
the Portfolio's investment results, see page 25.
INVESTMENT OUTLOOK AND PORTFOLIO STRATEGY
Throughout the period, we carefully adjusted the Portfolio's composition. The
average maturity was reduced, and we further diversified the fixed-income
portion with the addition of corporates and mortgages.
We raised the equity weighting to 70% and increased our exposure to foreign
equities. Foreign stocks have more attractive valuation levels than they had
earlier in the year and have the potential for major cyclical recovery in
business conditions and profits. Recently we have also been adding small- and
medium-capitalization stocks to the Portfolio. The price dips subsequent to
June 30 have produced some good buying opportunities in these areas, and they
will augment our high quality, large- capitalization holdings.
Given our forecast of an economic "soft landing" and its implications for a
benign inflation and interest-rate environment, we believe that the recent
equity market sell-off is an interim correction of some short-term valuation
excesses that had developed during the first half of the year. Accordingly, we
continue to accumulate attractive stocks on price weakness.
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TOTAL RETURN PORTFOLIO
INVESTMENT OBJECTIVE
The Portfolio seeks to achieve a high return through a combination of current
income and capital appreciation and pursues that objective by investing in
common and preferred stocks, senior corporate debt securities, and U.S.
Government and Agency obligations, bonds, and senior debt securities.
MARKET REVIEW
The re-acceleration of the economy in response to the Federal Reserve Board's
decision last summer to pursue a less restrictive monetary policy caused
returns on stocks and bonds to diverge in the first half of 1996. Stocks
advanced through the six months ended June 30, 1996, urged upward by
unexpectedly strong corporate profit reports and by record-setting
participation in equity mutual funds. At the same time, most sectors of the
fixed-income market lost ground. Bond returns turned negative as inflationary
pressures grew and interest-rate increases seemed probable.
INVESTMENT RESULTS
The Portfolio provided investors with a cumulative total return of 4.23%+ for
the six months ended June 30, 1996. Its unmanaged benchmark (60% S&P 500-Stock
Index and 40% of the Lehman Brothers Government/Corporate Bond Index) did
somewhat better, gaining 5.30% . We attribute the difference in returns to the
fact that the Portfolio began its fiscal semi-annual period slightly
underweighted in stocks compared to the benchmark's 60% exposure. Since
equities were the star performers during the first half of 1996, the Portfolio
underperformed its benchmark. Additional performance data appear on page 25.
INVESTMENT OUTLOOK AND STRATEGY
Based on our forecast of slower economic growth through the remainder of 1996,
the Portfolio's fixed-income component continues to have a longer-than-average
duration versus the Lehman Brothers Government/Corporate Bond Index. This
posture should enhance the Portfolio's return in coming months if, as we
expect, interest rates stabilize or decline. For the equity component of the
Portfolio, we plan to pursue growth at an attractive price. We continue to
invest in issues offering predictable but accelerated earnings growth compared
to the market average.
THE PORTFOLIO
On June 30, the Portfolio held approximately 59% of its assets in stocks, 32%
in U.S. Government securities, and 9% in cash. We intend to maintain that
weighting since we believe stocks have the potential for significant earnings
growth over the next six to twelve months. As always, we will monitor
carefully those developments in the economy and markets that could affect the
Portfolio's performance and will make the adjustments necessary to seek a high
level of total return.
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GROWTH AND INCOME PORTFOLIO
INVESTMENT OBJECTIVE
The Portfolio seeks to balance the objectives of reasonable current income and
reasonable opportunities for appreciation through investments primarily in
dividend-paying common stocks of good quality. Whenever the economic outlook
is unfavorable for common stock, the Portfolio may invest in other types of
securities, such as bonds, convertible bonds, and preferred stock.
MARKET REVIEW
The first half of 1996 saw a continuation of the market's advance that began
in late 1994. The most remarkable aspect of the recent gain was the impressive
performance of the equities of small companies. Nevertheless, the
large-company stocks that make up the S&P 500-Stock Index performed well, and
that benchmark rose 10.08% in the first six months of the year. The
dividend-paying, blue-chip stocks that are the centerpiece of the Portfolio
generally kept pace with it.
INVESTMENT RESULTS
For the six months ended June 30, 1996, the Growth and Income Portfolio
provided a total return of 9.56%+, slightly lagging the S&P 500 stocks. The
Portfolio's performance reflected our caution in selecting sectors and stocks
with the potential to provide reasonable current income and growth in a market
that had become both more volatile and, in the view of many investors,
increasingly overvalued. The discipline, market perspective, and research that
we apply to the purchase and sale of each security helped the Portfolio
weather the market's whims. For additional information on the Portfolio's
investment results, see page 25.
INVESTMENT OUTLOOK AND PORTFOLIO STRATEGY
The growth spurt that the economy witnessed early in 1996 is beginning to
slow, and the current expansion dating from 1991 is advancing in age. In this
environment, we believe that investments in defensive stocks in the health
care and consumer non-durable areas will do better than the equities of more
cyclical industries.
In addition, we are positioning the portfolio for the second half to take
advantage of some perceived misvaluations in the stock market. We are
overweighting the technology sector and, more specifically, the semiconductor
industry. The stocks of semiconductor companies have fallen to 1994 price
levels and, based on several measures, are trading below their five-year
historic valuations.
While the short-term direction of the market continues to be difficult to
predict, the Portfolio remains fully invested in equities and equity-related
securities. We are confident in the lesson history has taught us: stocks
outperform other types of investments over time. We also believe that prudent
and well-researched stock selection is the key to superior performance in any
market environment.
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GROWTH PORTFOLIO
INVESTMENT OBJECTIVE
The Growth Portfolio seeks long-term growth of capital by investing primarily
in equity securities of companies with a favorable outlook for earnings.
MARKET REVIEW
During the first half of 1996, there was considerable uncertainty about
whether the economy would grow more slowly, or whether it would reaccelerate
without lapsing into recession. The weight of evidence gradually accumulated
suggesting that the economy would escape recession and grow moderately this
year. This was good news for corporate profits, but it also suggested that
interest rates might rise and put pressure on the stock market.
INVESTMENT RESULTS
Exceptionally strong cash flow into mutual funds lifted the market through
mid-year. The S&P 500 gained 10.08% while the Growth Portfolio did somewhat
better with a total return of 11.92%+ for the six months ended June 30, 1996.
The Portfolio tracked the 12.01% return of the Russell 1000-Growth Stock
Index, another comparative measure, but slightly underperformed it. For
additional performance information, see page 25.
MARKET OUTLOOK
Subsequent to June 30, economic reports suggesting that the rate of growth was
stronger than generally expected raised fears that the Federal Reserve would
soon increase interest rates in an attempt to forestall a resurgence of
inflation. The bond market fell, and with it the stock market, which dropped
about 7% in three weeks. We do not think that this is the start of a bear
market. It seems to us more likely that consumers will not be able to sustain
their rate of borrowing and spending and that the economy will slow down in
the second half of 1996. If this view is correct, the Fed will not have to
tighten credit and the stock market should regain its equilibrium.
Corrections of 5% to 10% during the course of a bull market have historically
taken place about every two years. Prior to July 1996, we had not experienced
one since 1990.
We are hopeful that the recent weakness will prove to be a health restoring
correction, and not the start of a deeper decline. We should point out,
however, that the market's rate of gain has been well above the long-term
trend for some years now.
THE PORTFOLIO
Going forward, the Growth Portfolio will continue to favor technology and
financial service companies, with particular emphasis on computer-networking
firms. We believe those sectors are well positioned to provide growth in the
coming months.
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INTERNATIONAL PORTFOLIO
INVESTMENT OBJECTIVE
The Portfolio primarily seeks to obtain a total return on its assets from
long-term growth of capital. It invests principally in marketable securities
of established companies incorporated outside the United States, in companies
participating in foreign economies with prospects for growth, and in foreign
government securities. As a secondary objective, the Portfolio will attempt to
increase its current income without assuming undue risk.
MARKET REVIEW
Global equity markets performed well in the first half of 1996. The emerging
markets offered the richest returns during the period, with stocks climbing
11.43% on a U.S. dollar basis. The U.S. equity market, responding to
reasonable earnings reports and liquidity flows, posted the largest gain of
the major developed countries. Many markets in Europe experienced double-digit
returns in local currency terms as investors anticipated a surge in economic
growth in response to declining short-term interest rates. In Japan, foreign
investors and positive earnings surprises at many companies helped to support
further increases in equity prices. Japanese stocks moved 7.56% higher in
local dollar terms during the first six months of the year. The returns in
Europe and Japan were not spread evenly across all the stocks in their
respective markets. Share price appreciation depended more on the individual
company's prospects than on the overall rise in equity markets.
Also significant was the strengthening of the U.S. dollar, which began in the
first quarter and continued through June 1996. Since the beginning of the
year, the dollar has risen over 6% versus the German mark and Japanese yen.
After two years of weakness, the dollar is finally gaining momentum.
INVESTMENT RESULTS
The International Portfolio's total return of 7.10%+ for the fiscal six months
ended June 30, 1996, surpassed the 4.47% increase for the same period
registered by the unmanaged MSCI EAFE Index, with dividends reinvested and
stated in U.S. dollars. Stock selection was responsible for most of the
Portfolio's exceptional performance, with each of the three geographic areas
in which it invests--i.e., Europe, Japan, and the Pacific region--exceeding
their respective regional benchmarks. For additional information on
performance see page 25.
The Portfolio maintained a fairly neutral posture during the six-month period,
but European equities were slightly underweighted while Pacific region stocks
received more emphasis. During the second quarter, this positioning marginally
detracted from the Portfolio's results since the European markets moved higher
than those in the Pacific region.
Europe's performance was driven by conglomerates that are possible candidates
for restructuring. They included Henkel, Veba, Bayer, and Ciba Geigy. In
Japan, Honda and Toyota reported impressive earnings, boosting share prices.
The Portfolio's consumer-related Japanese stocks, such as Shisheido and Fuji
Photo, also gained, while investments in pharmaceutical companies continued
their steady ascent. The underweighting of banks and overweighting of
technology stocks further enhanced returns on the Portfolio's Japanese
component.
The Portfolio's Pacific holdings, excluding Japan, provided generous returns
due to investments in several Hong Kong conglomerates--namely, First Pacific
and Swire Pacific--and to positions in growth stocks like Korea Mobile
Telecommunications and Coca Cola Amatil.
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INVESTMENT OUTLOOK
As 1996 progresses, we believe that European economies will strengthen, aided
by growing exports to North and South America, by lower interest rates, and,
most important, by a strong U.S. dollar. The Portfolio is not positioned
aggressively for stronger growth since valuations of cyclical stocks are not
compelling. One area where we do see value opportunities, however, is in the
United Kingdom. Our forecast is based on lively consumer spending and the
prospect that the government will stimulate the economy to build support for
the May 1997 elections. We expect that the stocks of retailers and
housing-construction companies will be winners in the months ahead.
In Japan, fiscal and monetary policies have triggered a moderate recovery in
both the economy and corporate profits, but there is little potential for
further fiscal stimulus heading into the second half of 1996. The strength and
sustainability of Japan's recent growth are questionable. For that reason, we
expect to remain underexposed to Japanese cyclicals, such as paper and
chemical companies, while adding to growth-oriented cyclicals--particularly
technology stocks. Pharmaceutical stocks also continue to be attractive.
In other areas of the Pacific, we project growth rates at moderate but healthy
levels. Slower growth should help financial markets since it will ease
inflationary pressures and encourage lower interest rates. In fact, we believe
that growth in the countries of the Pacific will be superior to that of any
other part of the world. We continue to emphasize the more emerging Asian
markets over the core markets of Hong Kong, Singapore, Malaysia, Australia,
and New Zealand. In our opinion, Indonesia offers the best combination of
growth and value in all of Asia.
PORTFOLIO STRATEGY
The Portfolio remains slightly overweighted in the Pacific (excluding Japan)
and marginally underweighted in Europe. Targeted allocations are 40% of assets
in Japanese stocks, 48% in European issues, and 12% in the stocks of the
Pacific region. We enter the second half of the Portfolio's fiscal year with
small currency hedges and fairly neutral regional allocations. Once again,
research-driven stock selections within each of the geographic areas will
drive the Portfolio's performance.
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PREMIER GROWTH PORTFOLIO
INVESTMENT OBJECTIVE
The Portfolio seeks growth of capital by investing predominantly in the equity
securities of a limited number of large, carefully selected, high-quality U.S.
companies that, in our judgment, are likely to achieve superior earnings
growth. The Portfolio is not intended for investors whose principal objective
is assured income or preservation of capital.
MARKET REVIEW
We began 1996 with a generally favorable view of economic and corporate
developments and with a belief in the stock market's potential to reward
investors with another year of double-digit returns. At the same time, we
recognized that the market's advance might be erratic. During the six months
ended June 30, 1996, the equity market lived up to our expectations. On March
8, for example, the bellwether Dow Jones Industrial Average gave up 171 points
in a single day, only to gain back 111 points in the next session. Despite
these fluctuations, the market did deliver double-digit returns in the first
half of the year. The best performing stocks were small-capitalization issues,
not the large-capitalization stocks that the Portfolio favors.
INVESTMENT RESULTS
The Premier Growth Portfolio provided a total return of 8.40%+ for the six
months ended June 30, 1996, compared to gains of 10.08% and 12.07% for the
unmanaged S&P 500-Stock Index and Russell 1000-Growth Stock Index,
respectively. Throughout the period, the Portfolio adhered to its policy of
investing in large-company stocks with attractive growth potential. While our
selections within that sector generally performed well, there were
disappointments. Our emphasis on financial companies, which are sensitive to
interest-rate movements, dampened performance as concern about an accelerating
economy pushed rates higher. Several technology stocks in our portfolio also
squeezed returns when that sector experienced a major correction in the
opening months of the period. Additional information on the Portfolio's
performance may be found on page 25.
MARKET OUTLOOK
Our long-term attitude toward the market remains positive. We see solid
earnings, cash flow, and balance sheet improvement at many companies. Nothing
on the horizon suggests that the prospects of these companies will change
materially. Also, the broad economic view, both domestically and worldwide, is
for a continuation of moderate growth and moderate inflation.
Another reason for our positive outlook is the competitiveness of the United
States. A decade of painful cost cutting, growing technological leadership,
and a still undervalued dollar suggest that U.S. companies will be successful
in the world marketplace. Finally, and perhaps most important, we are enjoying
the elixir of both an orthodox monetary policy, led by Alan Greenspan, and a
conservative fiscal policy that has been embraced by both political parties
and by the general electorate. Indeed, the deficit worries of a few years ago
have proven to be of little import in relation to a multi-trillion-dollar
gross domestic product.
THE PORTFOLIO
Our bullish position and our investment strategy going forward are tempered by
the fact that stocks have been trading at more than 16 times our estimate of
1996 earnings. In our opinion, an appropriate range for the stock market is 14
to 18 times earnings. At the beginning of 1995, the market was priced at just
under 14 times projected earnings, and we were very bullish. We also recognize
that the equity market's advance has lasted 15 years and that recent gains
have been fueled by enormous injections of money into mutual funds. For these
reasons, we shall continue to keep our portfolio-weighted price-earnings
multiple as low as possible while still striving for above-average growth.
For the last six months, the market has been obsessed with the performance of
high-technology stocks. We believe a better approach to consistent long-term
growth is to invest in a broad mixture of stocks drawn from a variety of
different industries. With that in mind, we have positioned the Portfolio to
take advantage of the growth potential we see in certain consumer, financial,
and industrial companies. While we always have a growth bias, we are committed
to keeping our stock selection as diverse as possible.
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+ Cumulative total return, based on net asset value with any distributions
reinvested. Insurance company separate account or annuity contract charges,
which reduce the value to a contract owner, are not included.
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UTILITY INCOME PORTFOLIO
INVESTMENT OBJECTIVE
The Portfolio seeks current income and capital appreciation by investing
primarily in equity and fixed-income securities of companies in the utility
industry. The Portfolio is designed to take advantage of the characteristics
and historical performance of companies in the utilities industry. Many of
these companies have established a reputation for paying regular dividends and
for increasing their common-stock dividends over time.
MARKET REVIEW
During the first half of 1996, concerns about possible increases in interest
rates, the specter of higher inflation, and the effects of greater competition
among electric utilities subdued the performance of utility stocks. The Dow
Jones Electric Utility Index registered these concerns, reporting a decline of
.5%. Yields on long bonds rose from 6% to 7%. As a result, the Lehman Brothers
Long-Term Government Bond Index also retreated, falling approximately 9%
during the first six months of the year. We are pleased to report that the
Portfolio performed well in this difficult environment.
INVESTMENT RESULTS
The Portfolio's total return of 3.29%+ for the six months ended June 30, 1996,
surpassed the 2.12% return reported by its unmanaged comparative benchmark,
the New York Stock Exchange Utility Index, for the same period. We attribute
its performance to our decision to underweight our holdings of electric
utilities and to avoid owning corporate or government bonds. For additional
performance information, please see page 25.
As the economy began demonstrating signs of accelerating growth and the risk
of inflation surprises increased, we reduced our exposure to interest-rate
sensitive securities and raised our cash position. For most of the first half
of 1996, the Portfolio had a larger-than-normal cash position of approximately
10%. This posture helped when utility stocks declined and when yields on
long-term bonds rose to 7%.
MARKET OUTLOOK
While the financial markets continue to worry about an overheating economy,
accelerating inflation, and higher interest rates, we believe that the economy
will slow and that interest rates will fall during the second half of 1996. We
also feel that valuations have improved in the electric utility and
telecommunication sectors. As a result, we are reducing our cash position and
increasing our exposure to both.
Our belief that interest rates will decline in the second half of 1996 is
supported by the following forecasts: 1) slower consumer spending as consumer
debt levels and credit delinquencies continue to rise ; 2) an easing of
corporate capital spending in 1996 as a result of flat-to-lower earnings among
the S&P 500 companies; 3) an increase of government capital expenditures in
the range of 2% to 3% versus the 8% to 10% increases that have sparked growth
in previous election years; and 4) the persistence of moderate-to- low export
demand as both Germany and Japan continue to experience weak economic
activity.
THE PORTFOLIO
In the months ahead, we intend to adhere to our strategy of emphasizing
investment in the telecommunications-equipment sector, which we believe will
benefit from a number of significant trends. One trend is the globalization,
privatization, and deregulation of existing monopolies; another, the prospect
for higher capacity- and higher bandwidth-driven applications. The
transformation from analog to digital information systems and a truly seamless
and ubiquitous convergence of computing and communications technologies are
also expected to enhance the sector's performance. Falling barriers to entry
for companies providing end-to-end communication service may further
accelerate the sector's growth and profitability. We expect these trends to
lead to a spending cycle that could last 7 to 10 years. Given this scenario,
the telecommunications-equipment sector should present investors with an
opportunity for substantial long-term capital growth.
We are confident that the second half of 1996 holds improved potential for the
Portfolio. Led by telecommunications-equipment stocks and fueled by declining
interest rates, the stocks of both electric utilities and telecommunications
companies could prove winners in the months ahead.
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+ Cumulative total return, based on net asset value with any distributions
reinvested. Insurance company separate account or annuity contract charges,
which reduce the value to a contract owner, are not included.
13
<PAGE>
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WORLDWIDE PRIVATIZATION PORTFOLIO
INVESTMENT OBJECTIVE
The Portfolio seeks long-term capital appreciation by investing principally in
equity securities issued by enterprises that are undergoing, or have
undergone, privatization. The balance of the Portfolio's assets will include
equity securities of companies that we believe to be beneficiaries of the
privatization process.
MARKET REVIEW
Markets worldwide performed relatively well over the first half of 1996. The
Morgan Stanley Capital International Europe, Australia, and Far East (MSCI
EAFE) Index, which excludes the results of the U.S. stock market, gained 4.47%
in U.S. dollar terms, with net dividends reinvested. Emerging markets did even
better. The Morgan Stanley Emerging Markets Index rose 11.43% over the first
six months ended June 30, 1996. Eastern Europe led the performance charts,
propelled by investors who began to believe that Boris Yeltsin would remain in
power following the Russian election. The favorable market environment, in
both developed and emerging countries, led to an upsurge in privatization
transactions in the first half of 1996.
Western Europe remained the largest source of privatization deals during this
period, although much of the volume was the result of second- or third-stage
sales by governments of earlier listings. The most substantial gains, both in
volume and in price, were seen in Eastern Europe. Transaction volume in Latin
America and the Far East remained disappointingly low. We are optimistic about
increased privatization activity in those regions during the second half of
1996, however, when Brazilian and Japanese privatization programs are expected
to build momentum.
INVESTMENT RESULTS
The Worldwide Privatization Portfolio performed well over the period. During
the six months ended June 30, 1996, the Portfolio produced a cumulative total
return of 11.92%+. Longer term, the Portfolio also provided attractive
returns. From May 31, 1995, through June 30, 1996, the Portfolio gained
15.76%+. Additional performance data appear on page 25.
We attribute the Portfolio's robust six-month performance to asset allocation.
Forty-four percent of invested assets were committed to privatization
transactions in emerging markets. The strong showing by that sector during the
first half of 1996 elevated the Portfolio's overall total return.
INVESTMENT OUTLOOK
We believe 1996 may prove to be a record year for the U.S. dollar volume of
privatization transactions.
We are encouraged also by the range and variety of industries that brought
deals to the market this year. The pharmaceutical, rail transportation,
electronics, and insurance industries have become increasingly represented in
our potential universe of investment opportunities.
While returns in the first half of 1996 were positive, the recent volatility
and corrections besetting the equity markets have unnerved some investors. It
is our contention that the corrections so far have been a healthy reaction to
the increase in bond yields in the U.S. and elsewhere. We also believe that as
the year progresses investors will focus more on the prospects for economic
recovery in Germany and Japan. At the same time, we see little evidence of
renewed inflationary pressure and we anticipate that price increases on the
retail level will remain subdued.
To date, growth outside the United States has been sustained largely by
investment spending and governmental programs. In the coming months, we think
the consumer is likely to play a more important role in fueling growth
throughout the world. This is particularly true given the spending cuts
undertaken by European governments to fulfill the Maastricht criteria
- ------------------------------------------------------------------------------
+ Cumulative total return, based on net asset value with any distributions
reinvested. Insurance company separate account or annuity contract charges,
which reduce the value to a contract owner, are not included.
14
<PAGE>
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for 1997 and the attempts by the U.S. government to curtail its expenditures.
There is also the potential in the near term for some further reductions in
short-term interest rates. We expect Europe to make the first move since
inflation in that region continues to decline along with the monetary
aggregates.
THE PORTFOLIO
The Worldwide Privatization Portfolio enters the second half of its fiscal
year with its assets broadly invested. On June 30, 1996, cash made up 14% of
assets. Developed markets accounted for approximately 56% of the invested
portion of the portfolio, while emerging markets represented 44%. (We usually
target a weighting of 60% developed markets and 40% emerging markets.) Assets
are well diversified among countries, industries, and issuers. At the period's
close, the Portfolio had approximately 120 different equity positions
representing stock markets in 40 different countries. The United Kingdom,
France, Brazil, Austria, and Italy were the most significant country
weightings.
From an industry viewpoint, the portfolio also remains diversified, with
electric and gas utilities, telephones, pharmaceuticals, and airlines
representing the largest exposures.
15
<PAGE>
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TECHNOLOGY PORTFOLIO
INVESTMENT OBJECTIVE
The Portfolio is a diversified investment that seeks growth of capital and
invests for capital appreciation, and only incidentally for current income. It
invests primarily in securities of companies expected to benefit from
technological advances and improvements.
INVESTMENT RESULTS
The Technology Portfolio commenced operations on January 11, 1996, and held
cash only until January 25. From the market's opening on January 25 through
June 30, 1996, the Portfolio showed a modest loss.
MARKET REVIEW
This was a challenging time to initiate the Portfolio because, after an
extended period of consistent appreciation, technology stocks entered a phase
of more volatile price movement in the fall of 1995. A series of strong but
brief moves in both directions has characterized the technology sector since
then, and it has remained in that mode. Consolidation of those earlier gains
is one reason for this inconsistent stock behavior. Another factor was
disappointing results in the June quarter for some highly visible companies,
such as Motorola and Hewlett Packard. The third reason for this volatility may
be the concern expressed in some circles that technology is a maturing
sector--a thesis that we strongly disagree with and which we discuss below.
Nevertheless, these rapid advances and declines make investing difficult, and
we have purposely been slow to commit new assets into the stock market during
this period. As we also discuss below, however, market timing is not a
characteristic of our approach, and we are looking to commit our cash reserves
to strong companies with dynamic long-term prospects.
ECONOMIC OVERVIEW
Technology spending continues to be robust worldwide. Technology products and
services in the United States are being supported by strong consumer and
capital spending as well as strengthening industrial production. In
international markets, infrastructure building, productivity gains, and price
elasticity are more important underpinnings for technology than overall
economic growth. As technology products and services become more pervasive,
spending on the sector is exerting an increasingly important influence on
economic activity. For example, according to the U.S. Bureau of Economic
Analysis, technology expenditures as a percentage of gross domestic product in
the United States are approaching 10%, more than double the level achieved in
the late 1970s. Similar dynamics exist in international markets, where, in
many cases, acceptance and deployment of technology has been even more rapid.
Simply put, technology is becoming an important driver of economic growth
around the world.
PORTFOLIO STRATEGY
The tactics of near-term portfolio implementation--cash usage, specific stock
selection, industry weightings, and sensitivity to valuation parameters, among
other things--are always changing. However, a portfolio manager's investment
approach or the "style" used to maximize returns in a responsible way over the
long term should change infrequently, if at all. Several years ago, Alliance
developed strategies which we believe will help the Portfolio achieve higher
returns over the longer term with reduced volatility. These strategies are
fairly straightforward and include the following:
Research Analysis. Rather than react to constant "sound bites" that presumably
describe important short-term change, we believe that for consistent results
over time selecting (and selling) stocks on the basis of fundamental research
analysis and frequent contact with corporate managements is the best way to
maximize long-term investment returns.
Cash. Raising large amounts of cash can be one way to protect a portfolio if
one is concerned about the stock market's trend or near-term valuation levels.
Nevertheless, timing the market is a dangerous practice, so we don't do it.
However, we do adjust individual holdings or the mix of particular sectors
within technology when valuation levels seem to dictate those changes.
Themes. There are now thousands of publicly traded technology companies in the
U.S., in dozens of different business areas; tracking even a large minority of
these
16
<PAGE>
situations has become impractical. Important trends within technology
can be analyzed, however, and these secular themes do not change frequently.
Identifying those trends as early as possible and selecting the companies
which benefit from them is a central part of our investment philosophy.
Examples of some current themes include wireless communications, the Internet
and Intranets, outsourcing, networking, storage, custom semiconductors,
client/server software, software tools, database technology, and personal
computers.
Franchise companies. With so many companies in technology to choose from,
portfolio managers can be very selective about the types of corporations in
which they invest. Large and fairly conservative companies with modest growth
rates represent one extreme; emerging companies exploiting a new theme and
growing rapidly but still building their management, distribution, and
technology infrastructures would be another. We generally avoid the first type
but do invest in the second. The majority of the Portfolio's assets, however,
are focused between those extremes--"sophomore" companies with above-average
growth rates which have demonstrated both management excellence and staying
power. These are companies which have built a brand image or meaningful
customer base, are exploiting an emerging theme, and have the opportunity to
become the large companies of tomorrow.
Turnover. Each of the portfolio management characteristics mentioned above
leads to one other important factor: lower portfolio turnover. An important
benefit of this over time is a real commitment to the secular themes our
research has identified and the companies best positioned to benefit from
those themes. We believe that limited portfolio turnover should continue to
yield superior results over time.
FUNDAMENTAL OUTLOOK
We believe that as the technology sector becomes more diverse and impacts a
larger number of end markets while expanding internationally, the vicious
profit cycles of the past should become more moderate. Commentary in the media
and the investment community has focused on the slowdown of the semiconductor
business (particularly the weakness in memory pricing), the fear of PC
saturation, and the potentially disruptive effect of the Internet on many
established technology companies. Do we still subscribe to the view that
technology profits are becoming somewhat more stable while also expecting
superior growth in this area over the next five years? Definitely.
The recent semiconductor industry slowdown is a case in point. While the
commodity portion of this business (DRAMs) is suffering from excess capacity
and memory prices are falling rapidly, the larger and more proprietary logic
business appears to be slowly recovering. If this current period does in fact
mark the bottom, the 1995-96 semiconductor cycle for these proprietary
semiconductor companies will be less painful than the 1990-91 cycle, which in
turn was less difficult than the downturn in 1984-85. PCs are another
example--rumors of their death have proven to be premature. Once again, the
combination of greater functionality (in both hardware and software), lower
prices, and an increasingly obsolete installed base is at work in the PC
sector, and 1996 will be another strong year. In fact, the PC is beginning to
transform itself from a computation device to a communications platform, from
something understood by a minority to something everyone can use. The revenue
potential behind that shift is potentially very significant and, in our view,
not fully appreciated.
Finally, the Internet does represent an important change, the kind of change
which occurs infrequently and which spawns dozens of new companies. However,
many established companies will also be beneficiaries of this innovation as
they help build the infrastructure of this technology and offer
Internet-enabled solutions to large corporations. The Internet will not be a
zero sum game. Individual companies within the technology sector will always
fail. In fact, since so many of these companies are now public, there will
probably be a greater incidence of failure in the future--a diversified and
professionally managed approach to technology opportunities still makes sense.
We continue to believe that the boom/bust nature of this industry is waning
and that a more consistent, albeit uneven, pattern of growth lies ahead. Our
challenge, as always, is to prudently select tomorrow's leaders at an early
stage.
17
<PAGE>
GLOBAL BOND PORTFOLIO
INVESTMENT OBJECTIVE
The Portfolio seeks to provide a high level of current income consistent with
what the Fund's Adviser and Sub-Adviser consider to be prudent investment risk
from a multi-currency portfolio of high-quality debt securities of varying
maturities.
MARKET REVIEW
Although bond markets in the U.S. generally posted negative results during the
first half of 1996, foreign markets fared better. For U.S. investors overseas,
however, the strength of the dollar detracted from those superior foreign
returns.
INVESTMENT RESULTS
The Portfolio generated a gain of .24%+ for the six months ended June 30, 1996.
While modest, this positive total return surpassed the Salomon Brothers World
Government Bond Index, which declined 1.48% over the same period. Exposure to
a deteriorating U.S. bond market and the impact of a strengthening U.S. dollar
on the Portfolio's component of foreign securities muted performance.
Within "dollar" markets, the Portfolio's assets were diversified among
Canadian and Australian securities in order to reduce exposure to the weak
domestic bond market. Investments in both Canada and Australia provided
excellent returns. Additionally, to protect against rising U.S. interest
rates, the durations of U.S. holdings were shortened.
The Portfolio also increased its holdings of Japanese bonds, which were
resilient to events elsewhere in the world during the first half of 1996.
Since the Bank of Japan appeared intent on maintaining the yen at low levels,
we partially hedged the exposure to the Japanese currency backed into U.S.
dollars.
Investments in European markets proved rewarding during the first six months
of the year. We concentrated assets in Germany, where the market has been
fully discounting the achievement of European monetary union. In higher
yielding European markets, a substantial risk premium remains even though
progress toward monetary union in 1999 or later is being made at a rapid rate.
The Portfolio's exposure to European currencies during the period was
partially hedged back to the strong U.S. dollar but this position is likely to
be reduced as growth prospects within Europe improve and become supportive of
these currencies against the U.S. dollar.
INVESTMENT OUTLOOK
U.S. bond yields are now more attractive than they were at the end of last
year. At these higher levels there is some protection from further shocks
should the economy's growth accelerate. We also believe that the U.S. dollar
is unlikely to strengthen materially during the second half of 1996. With the
Bank of Japan apparently succeeding in its drive to weaken the yen and with
growth prospects in Europe improving, Japanese and European currencies may
hold the dollar in check.
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+ Cumulative total return, based on net asset value with any distributions
reinvested. Insurance company separate account or annuity contract charges,
which reduce the value to a contract owner, are not included.
18
<PAGE>
GLOBAL DOLLAR PORTFOLIO
INVESTMENT OBJECTIVE
The Portfolio seeks a high level of current income through investing
substantially all of its assets in U.S. and non-U.S. fixed-income securities
denominated only in U.S. dollars. As a secondary objective, the Portfolio
seeks capital appreciation. Substantially all of the Portfolio's assets will
be invested in high-yield, high-risk debt securities that are low-rated (i.e.,
below investment grade), or in unrated debt securities of comparable quality
that are considered to be predominantly speculative with regard to the
issuer's capacity to pay interest and repay principal.
MARKET REVIEW AND INVESTMENT RESULTS
Since our last report, the U.S. bond market has experienced a bumpy ride. The
rapid re-strengthening of the U.S. economy during the first half of 1996 has
depressed the bond market, while raising concerns about inflation and the
outlook for intervention by the Federal Reserve. Across all major sectors of
the U.S. fixed- income market shorter-duration securities outperformed
longer-duration securities as interest rates for all maturities increased. The
Portfolio posted a return of 7.28%+ for the first half of 1996, due in large
part to the continued strong performance of emerging market bonds. This
compares to a 13.4% return for the Portfolio's benchmark index, the J.P.
Morgan Emerging Markets Bond Index, which is composed of dollar-denominated
sovereign bonds and includes a large percentage of Brady Bond. The Portfolio
underperformed its benchmark for the six months ended June 30 since its
exposure to less developed countries and credits within the emerging markets
was limited. This kept the Portfolio from participating in the dramatic price
increases some of these securities experienced. Additional performance data
appears on page 25.
Outside the U.S., emerging-market debt prices continued to rise. The Mexican
economy continued its recovery, although more slowly than anticipated.
Mexico's plan to repay $7 billion to the U.S. Treasury (over half of what is
owed from the 1995 bailout) emphasized the Mexican government's commitment to
improved management and helped to shore up investor confidence. The Argentine
economy continued to enjoy an environment of low inflation and stability that
helped to promote economic growth. Confidence in the stability of the economy
attracted new investment to Argentina and provided the liquidity needed for
continued growth.
Poland's Brady bonds continued to perform well following their debt-rating
upgrade to investment grade. This was a very significant event for all
emerging-market debt. It demonstrates that prudent economic policies can
positively affect the credit quality of developing country debt. It is
unlikely that any other Brady bond will get a BBB rating in the near future,
although most countries continue to make progress toward this goal.
MARKET OUTLOOK
It is our view that U.S. economic growth will slow during the second half of
1996 following fairly robust growth during the second quarter. Our forecast
calls for a fixed-base-year growth domestic product growth rate of 2.0% to
2.5% through the remainder of the year. Outside the U.S., we remain optimistic
on emerging- market debt securities. Moderate economic growth in the U.S.,
stable inflation, and relatively steady bond prices provide a strong positive
environment for this segment of the fixed-income market.
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+ Cumulative total return, based on net asset value with any distributions
reinvested. Insurance company separate account or annuity contract charges,
which reduce the value to a contract owner, are not included.
19
<PAGE>
NORTH AMERICAN GOVERNMENT INCOME PORTFOLIO
INVESTMENT OBJECTIVE
The Portfolio seeks the highest level of current income, consistent with what
we believe to be prudent investment risk, from a portfolio of debt securities
issued or guaranteed by the governments of the United States, Canada, and
Mexico. The Portfolio expects to maintain at least 25% of its assets in
U.S.-dollar-denominated securities and may invest up to 25% of its total
assets in debt securities issued by governmental entities in Argentina.
MARKET REVIEW
After experiencing a sustained, broad-based rally during 1995, returns in the
U.S. bond market were generally constrained during the first half of 1996. The
rapid re-strengthening of the U.S. economy depressed the bond market while
raising concerns about inflation and the outlook for intervention by the
Federal Reserve. Across all major sectors of the U.S. fixed-income market,
shorter-duration securities outperformed longer-duration securities as
interest rates for all maturities increased.
Outside the U.S., emerging-market debt prices continued to rise. The Mexican
economy continued it's recovery, although more slowly than anticipated.
Mexico's plan to prepay $7 billion to the U.S. Treasury (over half of what is
owed from the 1995 bailout) emphasized the Mexican government's commitment to
improved debt management and helped to shore-up investor confidence.
The Argentine economy continued to enjoy an environment of low inflation and
stability that helped to promote economic growth. Confidence in the stability
of the economy attracted new investment to Argentina and provided the
liquidity needed for continued growth.
In Canada, bond prices also moved higher following an intermediate resolution
of the Quebec separatist movement.
INVESTMENT RESULTS
Through its fiscal semi-annual reporting period ended June 30, 1996, the
Portfolio provided a total return of 8.54%+, outperforming the unmanaged
Lehman Brothers (LB) Aggregate Index, a measure of the broad U.S. bond market,
which declined 1.22%. The Portfolio also did well versus the LB
Intermediate-Term (LBIT) Government Bond Index, which tracks the returns of
U.S. bonds in the one-to-ten-year maturity range. The LBIT Index fell .01% for
the fiscal six months ended June 30.
We attribute the Portfolio's solid performance during the last six months to
the resurgence of emerging-market bond prices. Specifically, the Portfolio was
positioned to capitalize on the improving investment climate in Argentina and
Mexico. Recent political and fiscal initiatives in those countries have been
having the desired effect on their economies, and their bond markets have
offered opportunities for substantial appreciation. For additional performance
information, see page 25.
INVESTMENT OUTLOOK
It is our view that economic growth in the U.S. will slow during the second
half of 1996 following fairly robust growth during the second quarter. Our
forecast calls for a fixed-base-year gross domestic product growth rate of
2.0% to 2.5% for the second half of the year. If the economy does not soon
begin to show signs of slowing down as expected, the Federal Reserve is likely
to tighten monetary policy. Until a clearer picture of the U.S. economy
emerges, we expect the domestic bond market to continue to be choppy.
In Canada, we expect economic growth to proceed moderately as policy makers
continue to focus on fiscal improvement.
We remain optimistic on emerging-market debt securities. Moderate economic
growth in the U.S., stable inflation, and relatively steady bond prices
provide a strong, positive environment for this fixed-income market segment.
Argentina has held steady to the economic policies designed to reduce
inflation below 2.0%. Bank deposits and international reserves have returned
to levels existing prior to the Mexican peso devaluation in December 1994. We
believe that Argentine economic growth in the second half of 1996 will
continue to support higher bond prices.
In Mexico, we believe many of the components necessary for long-term economic
growth are in place. The Banco de Mexico's tightened monetary policies have
stabilized the peso at a sustainable level, and the government's commitment to
debt repayment will help to attract new investment. Political concerns may
continue to affect market volatility, and we will monitor these developments
closely.
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+ Cumulative total return, based on net asset value with any distributions
reinvested. Insurance company separate account or annuity contract charges,
which reduce the value to a contract owner, are not included.
20
<PAGE>
U.S. GOVERNMENT/HIGH GRADE SECURITIES PORTFOLIO
INVESTMENT OBJECTIVE
The U.S. Government/High Grade Securities Portfolio seeks high current income
consistent with preservation of capital by investing principally in
obligations issued or guaranteed by the U.S. Government and repurchase
agreements pertaining to U.S. Government securities and other high-grade debt
securities.
MARKET REVIEW AND INVESTMENT RESULTS
After experiencing a sustained, broad-based rally during 1995, returns in the
U.S. bond market were generally constrained during the first half of 1996. The
market was reacting to stronger-than-expected U.S. economic data and
expectations that the Federal Reserve might raise interest rates to contain
inflationary pressures. In anticipation of such a tightening, interest rates
rose 55 basis points on one-year Treasury securities and 95 basis points, or
nearly 1%, on 30-year bonds. As a result of this investment environment, the
Portfolio's total return declined 3.06%+ over the past six months versus a
decline of 1.91% for the benchmark (67% Lehman Brothers Government Index and
33% Lehman Brothers Corporate Index). For additional performance information,
please see page 25. The Portfolio's duration was longer than that of the
benchmark at the beginning of the year, causing it to underperform the
comparative index. We have since moved to a more neutral stance given the
uncertainty surrounding future economic growth.
The U.S. economy rebounded from an inventory-related slowdown during the
second half of 1995. Real growth accelerated during the first quarter of 1996,
fueled by strong consumer demand. The re-strengthening continued in the second
quarter, led by a rapidly improving labor market. Employment gains averaged
265,000 per month during the second quarter, and total hours worked climbed by
an annualized 5.6%. Overall growth during the second quarter increased at a
4.2% rate, although this pace is unlikely to be sustained during the second
half of 1996.
Inflation was boosted this past spring by rising food and energy prices.
However, the less volatile "core" rate of inflation, estimated at 2.7%,
hovered near a 30-year low. Although the Federal Reserve had been in a holding
pattern since January, intensification of inflationary pressures had pushed
the Fed closer to a preemptive tightening.
THE PORTFOLIO
The Portfolio's performance improved against its benchmark as 1996 progressed.
The first quarter was the most difficult as virtually all sectors of the bond
market posted negative returns. As the market continued to trade lower, we
increased the Portfolio's holdings of mortgage-backed securities. Higher
interest rates provided mortgages with a more stable prepayment environment
and their shorter durations helped performance during periods of market
decline.
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+ Cumulative total return, based on net asset value with any distributions
reinvested. Insurance company separate account or annuity contract charges,
which reduce the value to a contract owner, are not included.
21
<PAGE>
MONEY MARKET PORTFOLIO
INVESTMENT OBJECTIVE
The Portfolio seeks safety of principal, maintenance of liquidity, and maximum
current income by investing in a broadly diversified portfolio of money market
securities. An investment in the Portfolio is neither insured nor guaranteed
by the U.S. Government.
MARKET REVIEW
A moderate pick-up in gross domestic product (GDP) growth and a dramatic surge
on the labor front highlighted the first half of 1996. Legitimate concerns as
to where the economy was heading were raised due to strong estimates of GDP
growth. Perhaps of greater significance was how employment reports affected
the market. Twice during the second quarter surprisingly strong numbers in job
growth and wages created a mild steepening of the short-term yield curve.
INVESTMENT RESULTS
The Money Market Portfolio performed in line with its unmanaged market
benchmark, the 3-Month Treasury Bill for the period. The Fund's total return
for the six months ended June 30 was 2.28% versus the 2.57% return recorded by
the Salomon 3-Month Treasury Bill Index for the same period.
As 1996 began, the Portfolio was positioned for declining interest rates. Its
holdings had relatively long maturities. We shortened Portfolio duration as
maturities came due in March and April. We felt that at some point during the
year the Federal Reserve would raise the Fed Funds rate as insurance against
escalating inflation. We continue to feel variable-rate securities are
attractive in a potential rising interest-rate environment and will acquire
such securities when pricing opportunities present themselves. For additional
information on the Portfolio's investment results, see page 25.
INVESTMENT STRATEGY
As we enter the second half of the year, prices in the short-term debt markets
reflect some degree of Fed tightening but not enough to warrant extending the
Portfolio's average maturity with any confidence. Economic data to be released
later this year will provide an important barometer on the direction of
interest rates. What has become apparent from recent market responses is that
any future acceleration of economic growth will prompt market-driven forces to
shape the short-term yield curve even more than the influences of Fed policy.
We shall cautiously invest around these key periods and allow market factors
to aid in determining fund investment strategy.
22
<PAGE>
SHORT-TERM MULTI-MARKET PORTFOLIO
INVESTMENT OBJECTIVE
The Portfolio seeks the highest level of current income, consistent with what
the Investment Manager believes to be prudent risk from a portfolio of
high-quality debt securities denominated in U.S. dollars and selected foreign
currencies and having remaining maturities of not more than three years.
MARKET REVIEW
While the U.S. bond market enjoyed a sustained, broad-based rally throughout
most of 1995 and into early 1996, economic news led to a setback in February.
The bond market responded negatively when job-growth data was unexpectedly
robust and the prospect of Federal Reserve intervention to relieve
inflationary pressures seemed imminent. Outside the U. S., emerging-market and
other debt prices rose sharply as positive developments in Latin America and
Central Europe encouraged foreign investment.
INVESTMENT RESULTS
For the six months ended June 30, 1996, the Portfolio produced a cumulative
total return of 4.88%+. This compares favorably with the 1.01% gain posted by
its unmanaged index, the Shearson Lehman 1-3 Year Treasury Index, for the same
period. The Portfolio's competitive return relative to the benchmark was due
primarily to its participation in European debt markets. Sluggish growth in
gross domestic product (GDP) combined with low and falling inflation levels,
allowed the region's governing bodies to continue easing interest rates. Those
lower rates led to higher fixed-income prices, which benefited the Portfolio's
overall performance. Additional performance information appears on page 25.
INVESTMENT OUTLOOK
Our long-term outlook for fixed-income markets is optimistic. We believe world
GDP will grow, but moderately. We also expect that inflation will remain
subdued. A reversal of the long-term trend of increased government spending
should keep total GDP under control. That, together with increasing
competition from emerging-market economies, should hold down the wage
increases that directly affect the inflation outlook. This combination of low
growth and low inflation provide an excellent environment for global bond
investing. This long-term favorable outlook does not preclude possible
near-term market sell-offs arising from normal shifts and adjustments in the
business cycle.
THE PORTFOLIO
As we begin the second half of the Portfolio's fiscal year, assets remain
heavily weighted in European securities. The potential for further rate cuts
by central banks in that region makes their short-dated fixed-income
securities very attractive investments. The driving force behind European
policy makers' actions for the foreseeable future is the Maastricht Treaty for
European Monetary Union. Achieving its targeted goals will require drastic
reductions in current debt and deficit levels. Such a fiscal contraction would
leave monetary policy as the only tool available to stimulate the sluggish
European economies. The mixture of tight fiscal with loose monetary policy,
while quite bond friendly, is not a good combination for currency. For that
reason, we also remain bullish on the U.S. dollar versus the European
currencies.
For the second half of 1996, the three major economic regions of the developed
world--the United States, Europe, and Japan--are likely to be in a
synchronized growth pattern for the first time in many years. That growth,
however, is likely to be low by historical standards. Two areas that may be on
the upswing in this environment are Australia and New Zealand. Increased world
GDP growth often leads to greater demand for commodities and natural
resources. If this scenario develops, the natural-resource-producing countries
of Australia and New Zealand may benefit. Consequently, the Portfolio will
continue to maintain its sizable exposure to the Australian and New Zealand
markets.
- -------------------------------------------------------------------------------
+ Cumulative total return, based on net asset value with any distributions
reinvested. Insurance company separate account or annuity contract charges,
which reduce the value to a contract owner, are not included.
23
<PAGE>
THE BENCHMARKS
o The Standard and Poor's 500-Stock Index includes 500 U.S. stocks and is a
common measure of the performance of the U.S. stock market.
o The Russell 1000-Growth Stock Index represents performance of 1000 of the
largest U.S. companies by market capitalization.
o The Morgan Stanley Capital International EAFE Index measures the overall
performance of stock markets in 20 countries within Europe, Australia and
the Far East.
o The New York Stock Exchange Utility Index is comprised of all utility
issues traded on the Exchange.
o The Lehman Brothers Aggregate Index is composed of the Mortgage Backed
and Asset Backed Securities Indices and the Government/Corporate Bond
Index.
o The Lehman Brothers Government/Corporate Bond Index represents a
combination of the two indices.
o The Lehman Brothers Government Index is composed of the Treasury Bond and
Agency Bond Indices, the 1-3 Year Government Index and the 20+ Year
Treasury Index.
o The Lehman Brothers Corporate Bond Index includes all publicly issued,
fixed -rate, non-convertible investment grade corporate debt; the index
is composed of both U.S. and Brady Bonds.
o The Lehman Brothers Intermediate Government Bond Index is composed of U.S.
Government agency and Treasury securities with maturities of one to
ten years.
o The Pacific Stock Exchange Index High-Tech Index is composed of the
stocks of companies in the technology industry.
o The Salomon Brothers World Government Bond Index represents performance of
government bond markets in 14 countries.
o The Merrill Lynch 1-3 Year Treasury Index is composed of U.S. Treasury
securities with maturities between one and three years.
o The J.P. Morgan Emerging Markets Bond Index is composed of
dollar-denominated restructured sovereign bonds; a large percentage of
the index is made up of Brady Bonds.
24
<PAGE>
Alliance Variable Products Series Fund, Inc.
Investment Results
- -------------------------------------------------------------------------------
Investment Results as of June 30, 1996
Listed below are the Portfolios' six-month cumulative, unannualized total
returns, as well as their average annual total returns for the one-year,
five-year (where applicable) and since-inception periods ended June 30, 1996.
ASSET ALLOCATION PORTFOLIOS
CONSERVATIVE INVESTORS PORTFOLIO
Six Months (1.97)%*
One Year 4.14%
Since Inception (10/94) 8.95%
GROWTH INVESTORS PORTFOLIO
Six Months 2.07%*
One Year 10.84%
Since Inception (10/94) 12.15%
TOTAL RETURN PORTFOLIO
Six Months 4.23%*
One Year 13.84%
Since Inception (12/92) 9.17%
COMMON STOCK/EQUITY SECURITIES
PORTFOLIOS
GROWTH AND INCOME PORTFOLIO
Six Months 9.56%*
One Year 24.10%
Five Years 12.75%
Since Inception (1/91) 11.92%
GROWTH PORTFOLIO
Six Months 11.92%*
One Year 24.62%
Since Inception (9/94) 29.74%
INTERNATIONAL PORTFOLIO
Six Months 7.10%*
One Year 14.77%
Since Inception (12/92) 12.81%
PREMIER GROWTH PORTFOLIO
Six Months 8.40%*
One Year 22.82%
Since Inception (6/92) 18.16%
UTILITY INCOME PORTFOLIO
Six Months 3.29%*
One Year 12.88%
Since Inception (5/94) 10.97%
WORLDWIDE PRIVATIZATION PORTFOLIO
Six Months 11.92%*
One Year 15.76%
Since Inception (9/94) 13.60%
TECHNOLOGY PORTFOLIO
Since Inception (1/96) (.90)%*
INCOME-ORIENTED PORTFOLIOS
GLOBAL BOND PORTFOLIO
Six Months .24%*
One Year 7.30%
Since Inception (7/91) 9.01%
GLOBAL DOLLAR GOVERNMENT PORTFOLIO
Six Months 7.28%*
One Year 19.26%
Since Inception (5/94) 12.78%
NORTH AMERICAN GOVERNMENT
INCOME PORTF0LIO
Six Months 8.54%*
One Year 23.91%
Since Inception (5/94) 7.53%
U.S. GOVERNMENT/HIGH-GRADE
SECURITIES PORTFOLIO
Six Months (3.06)%*
One Year 3.42%
Since Inception (9/92) 4.89%
<PAGE>
SHORT-TERM INCOME PORTFOLIOS
MONEY MARKET PORTFOLIO
Six Months 2.28%*
Annualized 7-Day Yield 4.71%
SHORT-TERM MULTI-MARKET PORTFOLIO
Six Months 4.88%*
One Year 10.08%
Five Years 3.16%
Since Inception (11/90) 3.44%
- -------------------------------------------------------------------------------
* Cumulative, unannualized total returns for the periods indicated.
Total returns are based on net asset value performance and reflect investment
of dividends and/or capital gains distributions in additional shares. These
figures do not reflect insurance company separate account or annuity contract
charges, which would reduce total return to a contract owner. Past performance
does not guarantee future results. Investment return and principal value will
fluctuate so that an investor's shares, when redeemed, may be worth more or
less than their original cost.
The Money Market Portfolio yield is an annualized 7-day compound return.
25
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
TEN LARGEST HOLDINGS
June 30, 1996 (Unaudited)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PREMIER GROWTH PORTFOLIO
- -------------------------------------------------------------------------------------------------------------------------
COMPANY U.S. $ VALUE PERCENT OF NET ASSETS
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Philip Morris Cos., Inc. $ 3,681,600 5.7%
- -------------------------------------------------------------------------------------------------------------------------
Federal National Mortgage Assn. 2,529,250 3.9
- -------------------------------------------------------------------------------------------------------------------------
Intel Corp. (common stock and warrants) 2,455,112 3.8
- -------------------------------------------------------------------------------------------------------------------------
Norwest Corp. 2,130,862 3.3
- -------------------------------------------------------------------------------------------------------------------------
United Healthcare Corp. 2,040,200 3.1
- -------------------------------------------------------------------------------------------------------------------------
Merrill Lynch & Co., Inc. 2,025,387 3.1
- -------------------------------------------------------------------------------------------------------------------------
Hewlett-Packard Co. 1,992,500 3.1
- -------------------------------------------------------------------------------------------------------------------------
AirTouch Communications, Inc. 1,935,125 3.0
- -------------------------------------------------------------------------------------------------------------------------
Walt Disney Co. 1,817,088 2.8
- -------------------------------------------------------------------------------------------------------------------------
Merck & Co., Inc. 1,738,412 2.7
- -------------------------------------------------------------------------------------------------------------------------
$22,345,536 34.5%
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
GROWTH AND INCOME PORTFOLIO
- -------------------------------------------------------------------------------------------------------------------------
COMPANY U.S. $ VALUE PERCENT OF NET ASSETS
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
AT & T Corp. $ 3,019,400 3.7%
- -------------------------------------------------------------------------------------------------------------------------
Philip Morris Cos., Inc. 2,532,400 3.1
- -------------------------------------------------------------------------------------------------------------------------
Goodyear Tire & Rubber Co. 2,337,713 2.8
- -------------------------------------------------------------------------------------------------------------------------
International Business Machines Corp. 2,272,050 2.8
- -------------------------------------------------------------------------------------------------------------------------
General Electric Co. 2,119,250 2.6
- -------------------------------------------------------------------------------------------------------------------------
First Union Corp. 2,106,275 2.5
- -------------------------------------------------------------------------------------------------------------------------
RJR Nabisco Holdings Corp. 1,813,500 2.2
- -------------------------------------------------------------------------------------------------------------------------
Century Telephone Enterprises, Inc. 1,769,062 2.1
- -------------------------------------------------------------------------------------------------------------------------
Colgate-Palmolive Co. 1,686,525 2.0
- -------------------------------------------------------------------------------------------------------------------------
Gillette Co. 1,665,412 2.0
- -------------------------------------------------------------------------------------------------------------------------
$21,321,587 25.8%
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
26
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
TEN LARGEST HOLDINGS
June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
TOTAL RETURN PORTFOLIO
- -------------------------------------------------------------------------------------------------------------------------
COMPANY U.S. $ VALUE PERCENT OF NET ASSETS
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
U.S. Treasury Notes $5,726,517 31.1%
- -------------------------------------------------------------------------------------------------------------------------
Philip Morris Cos., Inc. 374,400 2.0
- -------------------------------------------------------------------------------------------------------------------------
AT & T Corp. 347,200 1.9
- -------------------------------------------------------------------------------------------------------------------------
General Electric Co. 337,350 1.8
- -------------------------------------------------------------------------------------------------------------------------
Exxon Corp. 330,125 1.8
- -------------------------------------------------------------------------------------------------------------------------
Merck & Co., Inc. 290,812 1.6
- -------------------------------------------------------------------------------------------------------------------------
Intel Corp. 242,344 1.3
- -------------------------------------------------------------------------------------------------------------------------
FPL Group, Inc. 239,200 1.3
- -------------------------------------------------------------------------------------------------------------------------
Columbia/HCA Healthcare Corp. 229,512 1.2
- -------------------------------------------------------------------------------------------------------------------------
Schering-Plough Corp. 219,625 1.2
- -------------------------------------------------------------------------------------------------------------------------
$8,337,085 45.2%
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL PORTFOLIO
- -------------------------------------------------------------------------------------------------------------------------
COMPANY U.S. $ VALUE PERCENT OF NET ASSETS
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
DDI Corp. $ 673,086 2.2%
- -------------------------------------------------------------------------------------------------------------------------
Rohm Co. 529,603 1.7
- -------------------------------------------------------------------------------------------------------------------------
Seven Eleven Japan 472,967 1.5
- -------------------------------------------------------------------------------------------------------------------------
Toyota Corp. 450,967 1.4
- -------------------------------------------------------------------------------------------------------------------------
Ciba Geigy AG Registered 414,734 1.3
- -------------------------------------------------------------------------------------------------------------------------
TDK Corp. 358,798 1.1
- -------------------------------------------------------------------------------------------------------------------------
Mitsui Trust and Banking Co. Ltd. 351,118 1.1
- -------------------------------------------------------------------------------------------------------------------------
Bayer AG 308,254 1.0
- -------------------------------------------------------------------------------------------------------------------------
B.A.T. Industries Plc 306,560 1.0
- -------------------------------------------------------------------------------------------------------------------------
Matsushita Electric Industrial 298,450 1.0
- -------------------------------------------------------------------------------------------------------------------------
$4,164,537 13.3%
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
27
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
TEN LARGEST HOLDINGS
June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
UTILITY INCOME PORTFOLIO
- -------------------------------------------------------------------------------------------------------------------------
COMPANY U.S. $ VALUE PERCENT OF NET ASSETS
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
AT & T Corp. $ 586,520 4.8%
- -------------------------------------------------------------------------------------------------------------------------
AirTouch Communications, Inc. 417,987 3.4
- -------------------------------------------------------------------------------------------------------------------------
Public Service Co. of New Mexico 381,300 3.1
- -------------------------------------------------------------------------------------------------------------------------
Motorola, Inc. 370,962 3.0
- -------------------------------------------------------------------------------------------------------------------------
Houston Industries, Inc. 369,375 3.0
- -------------------------------------------------------------------------------------------------------------------------
Portland General Corp. 357,532 2.9
- -------------------------------------------------------------------------------------------------------------------------
FPL Group, Inc. 354,200 2.9
- -------------------------------------------------------------------------------------------------------------------------
New York State Electric & Gas Corp. 351,000 2.9
- -------------------------------------------------------------------------------------------------------------------------
Union Pacific Corp. 349,375 2.9
- -------------------------------------------------------------------------------------------------------------------------
Central & South West Corp. 348,000 2.8
- -------------------------------------------------------------------------------------------------------------------------
$3,886,251 31.7%
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
GROWTH PORTFOLIO
- -------------------------------------------------------------------------------------------------------------------------
COMPANY U.S. $ VALUE PERCENT OF NET ASSETS
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Cisco Systems, Inc. $ 4,591,687 5.0%
- -------------------------------------------------------------------------------------------------------------------------
Philip Morris Cos., Inc. 3,432,000 3.8
- -------------------------------------------------------------------------------------------------------------------------
Sterling Software, Inc. 2,779,700 3.1
- -------------------------------------------------------------------------------------------------------------------------
American International Group, Inc. 2,697,394 3.0
- -------------------------------------------------------------------------------------------------------------------------
TCI Group Series A 2,642,544 2.9
- -------------------------------------------------------------------------------------------------------------------------
3Com Corp. (common stock and conv. bond) 2,524,169 2.8
- -------------------------------------------------------------------------------------------------------------------------
Loews Corp. 2,508,225 2.8
- -------------------------------------------------------------------------------------------------------------------------
Travelers Group, Inc. 2,087,344 2.3
- -------------------------------------------------------------------------------------------------------------------------
Wal-Mart Stores, Inc. 2,030,000 2.2
- -------------------------------------------------------------------------------------------------------------------------
Telephone & Data Systems, Inc. 1,930,500 2.1
- -------------------------------------------------------------------------------------------------------------------------
$27,223,563 30.0%
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
28
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
TEN LARGEST HOLDINGS
June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
WORLDWIDE PRIVATIZATION PORTFOLIO
- -------------------------------------------------------------------------------------------------------------------------
COMPANY U.S. $ VALUE PERCENT OF NET ASSETS
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Pharmacia & Upjohn, Inc. $ 355,000 3.0%
- -------------------------------------------------------------------------------------------------------------------------
Lufthansa AG 339,362 2.9
- -------------------------------------------------------------------------------------------------------------------------
East Japan Railway Co. 315,457 2.6
- -------------------------------------------------------------------------------------------------------------------------
Roussel Uclaf 276,120 2.3
- -------------------------------------------------------------------------------------------------------------------------
Korea Mobile Telecommunications Corp. (ADR) 262,012 2.2
- -------------------------------------------------------------------------------------------------------------------------
Ente Nazionale Idrocarburi S.p.A 224,670 1.9
- -------------------------------------------------------------------------------------------------------------------------
OTP Bank 185,400 1.6
- -------------------------------------------------------------------------------------------------------------------------
V.A. Technologies AG 177,720 1.5
- -------------------------------------------------------------------------------------------------------------------------
CSL Ltd. 168,173 1.4
- -------------------------------------------------------------------------------------------------------------------------
Indosat 168,099 1.4
- -------------------------------------------------------------------------------------------------------------------------
$2,472,013 20.8%
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
CONSERVATIVE INVESTORS PORTFOLIO
- -------------------------------------------------------------------------------------------------------------------------
COMPANY U.S. $ VALUE PERCENT OF NET ASSETS
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
U.S. Treasury Notes $5,127,490 29.9%
- -------------------------------------------------------------------------------------------------------------------------
Federal National Mortgage Assn. (common stock and bond) 1,145,795 6.7
- -------------------------------------------------------------------------------------------------------------------------
U.S. Treasury Bond, 7.625%, 2/15/25 565,688 3.3
- -------------------------------------------------------------------------------------------------------------------------
Auburn Hills Trust, 12.00%, 5/01/20 361,100 2.1
- -------------------------------------------------------------------------------------------------------------------------
Time Warner, Inc., 8.375%, 3/15/23 292,086 1.7
- -------------------------------------------------------------------------------------------------------------------------
John Hancock Mutual Life Insurance Co., 7.375%, 2/15/24 278,319 1.6
- -------------------------------------------------------------------------------------------------------------------------
Government National Mortgage Assn., 7.50%, 1/15/26 237,938 1.4
- -------------------------------------------------------------------------------------------------------------------------
Chase Manhattan Corp. (common stock and bond) 219,799 1.3
- -------------------------------------------------------------------------------------------------------------------------
St. George Bank Ltd., 7.15%, 10/15/05 217,611 1.3
- -------------------------------------------------------------------------------------------------------------------------
Bear Stearns Cos., Inc., 6.75%, 5/01/01 197,926 1.1
- -------------------------------------------------------------------------------------------------------------------------
$8,643,752 50.4%
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
29
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
TEN LARGEST HOLDINGS
June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GROWTH INVESTORS PORTFOLIO
- -------------------------------------------------------------------------------------------------------------------------
COMPANY U.S. $ VALUE PERCENT OF NET ASSETS
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
U.S. Treasury Notes $ 878,431 9.3%
- -------------------------------------------------------------------------------------------------------------------------
Federal National Mortgage Assn. (common stock and bond) 286,954 3.1
- -------------------------------------------------------------------------------------------------------------------------
Philip Morris Cos., Inc. 192,400 2.0
- -------------------------------------------------------------------------------------------------------------------------
Exxon Corp. 121,625 1.3
- -------------------------------------------------------------------------------------------------------------------------
U.S. Treasury Bond, 7.625%, 2/15/25 102,362 1.1
- -------------------------------------------------------------------------------------------------------------------------
Ceridian Corp. 101,000 1.1
- -------------------------------------------------------------------------------------------------------------------------
Monsanto Co. 99,125 1.1
- -------------------------------------------------------------------------------------------------------------------------
WMX Technologies, Inc. 98,250 1.0
- -------------------------------------------------------------------------------------------------------------------------
General Electric Co. 95,150 1.0
- -------------------------------------------------------------------------------------------------------------------------
U.S. Industries, Inc. 94,087 1.0
- -------------------------------------------------------------------------------------------------------------------------
$2,069,384 22.0%
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
TECHNOLOGY PORTFOLIO
- -------------------------------------------------------------------------------------------------------------------------
COMPANY U.S. $ VALUE PERCENT OF NET ASSETS
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
First Data Corp. $ 414,050 3.4%
- -------------------------------------------------------------------------------------------------------------------------
Oracle Corp. 412,122 3.4
- -------------------------------------------------------------------------------------------------------------------------
Spyglass, Inc. 406,125 3.4
- -------------------------------------------------------------------------------------------------------------------------
Informix Corp. 379,194 3.1
- -------------------------------------------------------------------------------------------------------------------------
Dell Computer Corp. 376,012 3.1
- -------------------------------------------------------------------------------------------------------------------------
Compaq Computer Corp. 369,375 3.1
- -------------------------------------------------------------------------------------------------------------------------
3Com Corp. 319,812 2.6
- -------------------------------------------------------------------------------------------------------------------------
Electronic Data Systems Corp. 284,875 2.3
- -------------------------------------------------------------------------------------------------------------------------
Intel Corp. 260,703 2.1
- -------------------------------------------------------------------------------------------------------------------------
Bay Networks, Inc. 257,500 2.1
- -------------------------------------------------------------------------------------------------------------------------
$3,479,768 28.6%
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
30
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
INDUSTRY DIVERSIFICATION
June 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL PORTFOLIO
- -------------------------------------------------------------------------------------------------------------------------
U.S. $ VALUE PERCENT OF NET ASSETS
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Basic Industries $ 3,180,449 10.2%
- -------------------------------------------------------------------------------------------------------------------------
Capital Goods 1,891,685 6.0
- -------------------------------------------------------------------------------------------------------------------------
Consumer Manufacturing 3,615,332 11.5
- -------------------------------------------------------------------------------------------------------------------------
Consumer Services 2,635,707 8.4
- -------------------------------------------------------------------------------------------------------------------------
Consumer Staples 3,418,066 10.9
- -------------------------------------------------------------------------------------------------------------------------
Energy 1,102,547 3.5
- -------------------------------------------------------------------------------------------------------------------------
Financial Services 5,673,168 18.1
- -------------------------------------------------------------------------------------------------------------------------
Healthcare 1,219,014 3.9
- -------------------------------------------------------------------------------------------------------------------------
Multi-Industry 852,665 2.7
- -------------------------------------------------------------------------------------------------------------------------
Technology 1,624,724 5.2
- -------------------------------------------------------------------------------------------------------------------------
Transportation 640,033 2.1
- -------------------------------------------------------------------------------------------------------------------------
Utilities 3,764,457 12.0
- -------------------------------------------------------------------------------------------------------------------------
Time Deposit 2,193,000 7.0
- -------------------------------------------------------------------------------------------------------------------------
Total Investments 31,810,847 101.5
- -------------------------------------------------------------------------------------------------------------------------
Cash and receivables, net of liabilities (454,847) (1.5)
- -------------------------------------------------------------------------------------------------------------------------
Net Assets $31,356,000 100.0%
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
31
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
INDUSTRY DIVERSIFICATION
June 30, 1996 (Unaudited)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
WORLDWIDE PRIVATIZATION PORTFOLIO
- -------------------------------------------------------------------------------------------------------------------------
U.S. $ VALUE PERCENT OF NET ASSETS
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Basic Industries $ 984,180 8.3%
- -------------------------------------------------------------------------------------------------------------------------
Capital Goods 259,102 2.2
- -------------------------------------------------------------------------------------------------------------------------
Consumer Manufacturing 204,241 1.7
- -------------------------------------------------------------------------------------------------------------------------
Consumer Services 1,026,989 8.7
- -------------------------------------------------------------------------------------------------------------------------
Consumer Staples 135,160 1.2
- -------------------------------------------------------------------------------------------------------------------------
Energy 788,764 6.7
- -------------------------------------------------------------------------------------------------------------------------
Financial Services 1,308,203 11.0
- -------------------------------------------------------------------------------------------------------------------------
Healthcare 859,315 7.2
- -------------------------------------------------------------------------------------------------------------------------
Multi-Industry 444,296 3.7
- -------------------------------------------------------------------------------------------------------------------------
Technology 143,682 1.2
- -------------------------------------------------------------------------------------------------------------------------
Transportation 646,187 5.4
- -------------------------------------------------------------------------------------------------------------------------
Utilities 3,391,441 28.5
- -------------------------------------------------------------------------------------------------------------------------
Time Deposit 1,833,000 15.4
- -------------------------------------------------------------------------------------------------------------------------
Total Investments 12,024,560 101.2
- -------------------------------------------------------------------------------------------------------------------------
Cash and receivables, net of liabilities (138,929) (1.2)
- -------------------------------------------------------------------------------------------------------------------------
Net Assets $11,885,631 100.0%
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
32
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
PREMIER GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996 (UNAUDITED)
- ------------------------------------------------------------------------------
Shares U.S. $ Value
------ ------------
COMMON STOCKS AND
OTHER INVESTMENTS--98.6%
BASIC INDUSTRIES--0.7%
METALS & MINING--0.7%
Aluminum Co. of America................ 8,000 $ 459,000
------------
CAPITAL GOODS--2.4%
ELECTRICAL EQUIPMENT--1.1%
General Electric Co. .................. 8,000 692,000
------------
MACHINERY--1.3%
Case Corp.............................. 9,600 460,800
Deere & Co............................. 9,900 396,000
------------
856,800
------------
1,548,800
------------
CONSUMER
MANUFACTURING--3.6%
AUTO & RELATED--3.6%
Chrysler Corp.......................... 10,700 663,400
Ford Motor Co.......................... 27,000 874,125
General Motors Corp.................... 15,000 785,625
------------
2,323,150
------------
CONSUMER SERVICES--22.6%
AIRLINES--7.6%
AMR Corp.*............................. 5,000 455,000
Delta Air Lines, Inc................... 10,300 854,900
KLM Royal Dutch Airlines .............. 18,129 575,596
Northwest Airlines Corp. Cl.A* ........ 36,100 1,423,693
UAL Corp.*............................. 30,400 1,634,000
------------
4,943,189
------------
BROADCASTING &
CABLE--5.3%
AirTouch Communications, Inc.* ........ 68,500 1,935,125
Cox Communications, Inc. CI.A* ........ 21,600 467,100
Liberty Media Group Cl.A* ............. 8,625 229,101
TCI Group Series A*.................... 45,500 821,844
------------
3,453,170
------------
ENTERTAINMENT &
LEISURE--4.7%
Carnival Corp. Cl.A.................... 7,800 225,225
ITT Corp.*............................. 14,900 987,125
Walt Disney Co......................... 28,900 1,817,088
------------
3,029,438
------------
RESTAURANTS &
LODGING--2.6%
McDonald's Corp........................ 35,300 $ 1,650,275
------------
RETAILING--2.4%
Home Depot, Inc........................ 20,033 1,081,782
Sears, Roebuck & Co.................... 9,400 457,075
------------
1,538,857
------------
14,614,929
------------
CONSUMER STAPLES--9.4%
BEVERAGES--0.4%
Coca-Cola Co........................... 4,800 234,600
------------
COSMETICS--0.9%
Gillette Co............................ 9,800 611,275
------------
FOOD--2.4%
PepsiCo, Inc........................... 43,800 1,549,425
------------
TOBACCO--5.7%
Philip Morris Cos., Inc. .............. 35,400 3,681,600
------------
6,076,900
------------
FINANCE--21.6%
BANKING & CREDIT--8.8%
Citicorp............................... 9,100 751,888
First Bank System, Inc................. 6,400 371,200
MBNA Corp.............................. 50,300 1,433,550
NationsBank Corp....................... 12,200 1,008,025
Norwest Corp........................... 61,100 2,130,862
------------
5,695,525
------------
BROKERAGE & MONEY
MANAGEMENT--4.5%
Green Tree Financial Corp. ............ 6,800 212,500
Merrill Lynch & Co., Inc. ............. 31,100 2,025,387
Morgan Stanley Group, Inc. ............ 14,000 687,750
------------
2,925,637
------------
INSURANCE--4.4%
American International Group, Inc...... 11,900 1,173,638
General Reinsurance Corp............... 6,400 974,400
Travelers Group, Inc................... 15,000 684,375
------------
2,832,413
------------
MORTGAGE BANKING--3.9%
Federal National Mortgage Association . 75,500 2,529,250
------------
13,982,825
------------
33
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
PREMIER GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS (Cont'd)
- ------------------------------------------------------------------------------
Shares U.S. $ Value
------ ------------
HEALTH CARE--13.9%
DRUGS--7.5%
Amgen, Inc.*........................... 25,500 $ 1,373,812
Merck & Co., Inc....................... 26,900 1,738,412
Pfizer, Inc............................ 17,300 1,234,788
Schering-Plough Corp................... 8,000 502,000
------------
4,849,012
------------
MEDICAL PRODUCTS--1.1%
Baxter International, Inc.............. 15,000 708,750
------------
MEDICAL SERVICES--5.3%
Columbia/HCA Healthcare Corp........... 26,900 1,435,788
United Healthcare Corp................. 40,400 2,040,200
------------
3,475,988
------------
9,033,750
------------
TECHNOLOGY--19.8%
COMMUNICATIONS
EQUIPMENT--1.4%
Ericsson (L.M.) Telephone Co........... 11,990 257,036
Nokia Corp. (ADR)...................... 17,100 632,700
------------
889,736
------------
COMPUTER HARDWARE--5.5%
Compaq Computer Corp.*................. 15,600 768,300
Hewlett-Packard Co..................... 20,000 1,992,500
International Business Machines Corp. . 7,800 772,200
------------
3,533,000
------------
COMPUTER PERIPHERALS--0.2%
Seagate Technology, Inc.* ............. 3,000 135,000
------------
COMPUTER SOFTWARE &
SERVICES--3.1%
First Data Corp........................ 5,700 453,862
Microsoft Corp.*....................... 10,900 1,308,681
Oracle Corp.*.......................... 6,900 272,119
------------
2,034,662
------------
Shares or
Principal
Amount
(000) U.S. $ Value
--------- ------------
NETWORK SOFTWARE--3.3%
3Com Corp.*............................ 10,000 $ 456,875
Cisco Systems, Inc.*................... 29,800 1,689,288
------------
2,146,163
------------
SEMI-CONDUCTORS &
RELATED--6.3%
Applied Materials, Inc.* .............. 53,300 1,622,319
Intel Corp. .......................... 5,000 367,187
warrants, expiring 3/14/98* ........ 57,400 2,087,925
------------
4,077,431
------------
12,815,992
------------
TRANSPORTATION--1.5%
RAILROADS--1.5%
Burlington Northern Santa Fe .......... 10,900 881,537
Union Pacific Corp..................... 1,100 76,863
------------
958,400
------------
UTILITIES--3.1%
TELEPHONE--3.1%
AT & T Corp............................ 20,100 1,246,200
MCI Communications Corp................ 30,500 779,656
------------
2,025,856
------------
Total Common Stocks and
Other Investments
(cost $57,567,280)................... 63,839,602
------------
SHORT-TERM INVESTMENTS--1.5%
COMMERCIAL PAPER--1.5%
Ford Motor Credit Co.
5.50%, 7/01/96
(amortized cost $949,000) ........... $ 949 949,000
------------
TOTAL INVESTMENTS--100.1%
(cost $58,516,280)................... 64,788,602
Other assets less liabilities--(0.1%) . (46,505)
------------
NET ASSETS--100.0%..................... $ 64,742,097
============
- ------------------------------------------------------------------------------
* Non-income producing security.
See Glossary of Terms on page 71.
See Notes to Financial Statements.
34
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
GLOBAL BOND PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996 (Unaudited)
- ------------------------------------------------------------------------------
Shares or
Principal
Amount
(000) U.S. $ Value
--------- ------------
AUSTRALIA--4.7%
GOVERNMENT/AGENCY--4.7%
Queensland Treasury
8.00%, 5/14/03 (a)
(cost $716,789)............ AU$ 950 $ 710,592
------------
AUSTRIA--8.9%
GOVERNMENT/AGENCY--8.9%
Republic of Austria
5.00%, 1/22/01 ............ JPY 60,000 612,399
9.125%, 5/07/02 (a) ....... CA$ 950 746,265
------------
Total Austrian Securities
(cost $1,383,689).......... 1,358,664
------------
BELGIUM--3.6%
GOVERNMENT/AGENCY--3.6%
Kingdom of Belgium
6.25%, 10/06/03
(cost $596,840)............ DEM 850 555,952
------------
GERMANY--5.8%
GOVERNMENT/AGENCY--5.8%
Federal Republic of Germany
8.25%, 9/20/01
(cost $911,001)............ DEM 1,200 877,764
------------
IRELAND--4.8%
GOVERNMENT/AGENCY--4.8%
Republic of Ireland
6.25%, 10/18/04
(cost $730,233)............ IEP 500 738,745
------------
ITALY--9.6%
GOVERNMENT/AGENCY--9.6%
Republic of Italy
10.00%, 8/01/03 ........... LIRA 1,100,000 753,208
10.50%, 4/01/05 ........... 1,000,000 704,000
------------
Total Italian Securities
(cost $1,367,736).......... 1,457,208
------------
JAPAN--9.8%
CORPORATE OBLIGATIONS--9.8%
Asian Development Bank
5.625%, 2/18/02 ........... JPY 85,000 894,768
Export Import Bank of Japan
4.375%, 10/01/03 .......... JPY 60,000 $ 595,254
------------
Total Japanese Securities
(cost $1,532,283).......... 1,490,022
------------
NETHERLANDS--4.8%
GOVERNMENT/AGENCY--4.8%
Government of Netherlands
8.50%, 3/15/01
(cost $727,315)............ NLG 1,100 725,916
------------
SWEDEN--9.5%
GOVERNMENT/AGENCY--9.5%
Kingdom of Sweden
10.25%, 5/05/03
(cost $1,405,121).......... SEK 8,600 1,455,807
------------
UNITED KINGDOM--9.2%
GOVERNMENT/AGENCY--9.2%
U.K. Treasury
8.00%, 6/10/03 ............ GBP 410 650,276
8.50%, 12/07/05 ........... 460 744,981
------------
Total United Kingdom Securities
(cost $1,337,922).......... 1,395,257
------------
UNITED STATES--26.9%
GOVERNMENT/AGENCY--25.6%
U.S. Treasury Notes
6.25%, 2/15/03 (a) ........ US$ 1,300 1,277,042
6.375%, 8/15/02 (a) ....... 2,000 1,984,060
7.50%, 5/15/02 ............ 600 628,122
------------
3,889,224
------------
TIME DEPOSIT--1.3%
State Street Bank and Trust Co.
5.00%, 7/01/96 ............ 202 202,000
------------
Total United States Securities
(cost $4,129,738).......... 4,091,224
------------
TOTAL INVESTMENTS--97.6%
(cost $14,838,667)......... 14,857,151
Other assets less liabilities--2.4% 372,156
------------
NET ASSETS--100.0%........... $ 15,229,307
============
- ------------------------------------------------------------------------------
(a) Securities segregated to collateralize forward exchange currency contracts
with an aggregate market value of $4,717,959. See Notes to Financial
Statements.
35
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
GROWTH AND INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996 (UNAUDITED)
- ------------------------------------------------------------------------------
Shares U.S. $ Value
------ ------------
COMMON STOCKS--96.4%
BASIC INDUSTRIES--6.3%
CHEMICALS--2.3%
Dow Chemical Co........................ 13,100 $ 995,600
Du Pont (E.I.) de Nemours & Co......... 6,000 474,750
Union Carbide Corp..................... 11,200 445,200
------------
1,915,550
------------
CONTAINERS--1.7%
Crown Cork & Seal, Inc................. 31,000 1,395,000
------------
METALS & MINING--0.8%
Reynolds Metals Co..................... 11,900 620,288
------------
POLLUTION CONTROL--1.5%
WMX Technologies, Inc.................. 38,300 1,254,325
------------
5,185,163
------------
CAPITAL GOODS--4.3%
ELECTRICAL EQUIPMENT--2.6%
General Electric Co.................... 24,500 2,119,250
------------
MACHINERY--1.7%
Allied-Signal, Inc..................... 7,000 399,875
BWIP Holdings, Inc. Cl.A............... 18,450 352,856
Cooper Industries, Inc................. 16,000 664,000
------------
1,416,731
------------
3,535,981
------------
CONSUMER
MANUFACTURING--2.8%
AUTO & RELATED--2.8%
Goodyear Tire & Rubber Co.............. 48,450 2,337,713
------------
CONSUMER SERVICES--9.7%
BROADCASTING &
CABLE--4.9%
AirTouch Communications, Inc.* ........ 54,000 1,525,500
Comcast Corp. Cl.A SPL................. 24,900 457,538
Liberty Media Group Cl.A* ............. 25,000 664,062
TCI Group Series A*.................... 30,000 541,875
Vodafone Group PLC (ADR) .............. 22,000 811,250
------------
4,000,225
------------
ENTERTAINMENT &
LEISURE--1.9%
Eastman Kodak Co....................... 9,100 707,525
ITT Corp.*............................. 12,700 841,375
------------
1,548,900
------------
RETAILING--2.9%
Federated Department Stores, Inc.* .... 25,000 853,125
Lowes Cos., Inc........................ 21,550 778,494
Pep Boys Manny, Moe & Jack ............ 15,900 540,600
Price/Costco, Inc*..................... 12,000 $ 258,000
------------
2,430,219
------------
7,979,344
------------
CONSUMER STAPLES--15.1%
COSMETICS--2.0%
Gillette Co............................ 26,700 1,665,412
------------
FOOD--5.0%
Campbell Soup Co....................... 13,000 916,500
Kellogg Co............................. 11,000 805,750
Nabisco Holdings Corp. Cl.A ........... 35,550 1,257,581
PepsiCo, Inc........................... 33,100 1,170,913
------------
4,150,744
------------
HOUSEHOLD PRODUCTS--2.8%
Black & Decker Corp.................... 16,000 618,000
Colgate-Palmolive Co................... 19,900 1,686,525
------------
2,304,525
------------
TOBACCO--5.3%
Philip Morris Cos., Inc................ 24,350 2,532,400
RJR Nabisco Holdings Corp.............. 58,500 1,813,500
------------
4,345,900
------------
12,466,581
------------
ENERGY--7.6%
DOMESTIC INTEGRATED--5.8%
Amoco Corp............................. 16,200 1,172,475
Atlantic Richfield Co.................. 11,100 1,315,350
Exxon Corp............................. 17,000 1,476,875
Mobil Corp............................. 7,000 784,875
------------
4,749,575
------------
PIPELINES--1.8%
Enron Corp............................. 36,800 1,504,200
------------
6,253,775
------------
FINANCE--11.9%
BANKING & CREDIT--5.5%
First Chicago NBD Corp................. 17,648 690,478
First Union Corp....................... 34,600 2,106,275
Fleet Financial Group, Inc............. 18,100 787,350
NationsBank Corp....................... 12,150 1,003,894
------------
4,587,997
------------
BROKERAGE & MONEY
MANAGEMENT--1.5%
Merrill Lynch & Co., Inc............... 19,500 1,269,937
------------
INSURANCE--3.8%
Allstate Corp.......................... 25,250 997,375
General Reinsurance Corp............... 7,500 1,141,875
PMI Group, Inc......................... 5,700 242,250
Travelers Group, Inc................... 16,350 745,969
------------
3,127,469
------------
36
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
GROWTH AND INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONT'D)
- ------------------------------------------------------------------------------
Shares U.S. $ Value
------ ------------
REAL ESTATE--1.1%
Evans Withycombe Residential, Inc. .... 17,400 $ 363,225
Post Properties, Inc................... 9,000 318,375
Sovran Self Storage, Inc............... 7,400 196,100
------------
877,700
------------
9,863,103
------------
HEALTH CARE--11.6%
BIOTECHNOLOGY--0.4%
Centocor, Inc.*........................ 11,400 341,288
------------
DRUGS--6.7%
AB Astra (ADR)......................... 14,400 635,855
Amgen, Inc.*........................... 6,700 360,963
Bristol-Myers Squibb Co................ 13,500 1,215,000
Merck & Co., Inc....................... 16,000 1,034,000
Pharmacia & Upjohn, Inc................ 18,000 798,750
Schering-Plough Corp................... 24,250 1,521,687
------------
5,566,255
------------
MEDICAL PRODUCTS--2.0%
Baxter International, Inc.............. 34,000 1,606,500
------------
MEDICAL SERVICES--2.5%
Columbia/HCA Healthcare Corp........... 16,200 864,675
United Healthcare Corp................. 23,000 1,161,500
------------
2,026,175
------------
9,540,218
------------
MULTI INDUSTRY--1.6%
Whitman Corp........................... 55,000 1,326,875
------------
TECHNOLOGY--15.1%
COMMUNICATIONS
EQUIPMENT--5.6%
DSC Communications Corp.* ............. 38,100 1,145,381
General Instrument Corp.* ............. 19,550 564,506
Nokia Corp. (ADR)...................... 36,800 1,361,600
Scientific-Atlanta, Inc................ 50,000 775,000
Teleport Communications Group, Inc.* .. 39,500 750,500
------------
4,596,987
------------
COMPUTER HARDWARE--3.4%
Compaq Computer Corp.*................. 10,050 494,963
International Business Machines Corp... 22,950 2,272,050
------------
2,767,013
------------
OFFICE EQUIPMENT &
SERVICES--1.9%
Xerox Corp............................. 29,700 1,588,950
------------
Shares or
Principal
Amount
(000) U.S. $ Value
--------- ------------
SEMI-CONDUCTORS &
RELATED--4.2%
Altera Corp.*.......................... 20,100 $ 762,544
Atmel Corp.*........................... 27,200 821,100
Intel Corp............................. 14,800 1,086,875
National Semiconductor Corp.* ......... 53,373 827,281
------------
3,497,800
------------
12,450,750
------------
TRANSPORTATION--0.8%
TRUCKING--0.8%
Xtra Corp.............................. 16,000 708,000
------------
UTILITIES--9.6%
ELECTRIC & GAS--2.5%
FPL Group, Inc......................... 16,650 765,900
Houston Industries, Inc................ 15,100 371,837
New York State Electric & Gas Corp..... 31,000 755,625
Portland General Corp.................. 5,900 182,163
------------
2,075,525
------------
TELEPHONE--7.1%
ALLTEL Corp............................ 34,750 1,068,562
AT & T Corp............................ 48,700 3,019,400
Century Telephone Enterprises, Inc..... 55,500 1,769,062
------------
5,857,024
------------
7,932,549
------------
Total Common Stocks
(cost $74,198,672)................... 79,580,052
------------
SHORT-TERM INVESTMENTS--4.3%
COMMERCIAL PAPER--3.4%
Ford Motor Credit Co.
5.37%, 7/02/96....................... $ 2,000 1,999,702
5.37%, 7/03/96....................... 838 837,750
------------
2,837,452
------------
U.S. GOVERNMENT
OBLIGATIONS--0.9%
Federal Home Loan Mortgage Corp.
5.29%, 7/05/96....................... 705 704,585
------------
Total Short-Term Investments
(amortized cost $3,542,037) ......... 3,542,037
------------
TOTAL INVESTMENTS--100.7%
(cost $77,740,709)................... 83,122,089
Other assets less liabilities--(0.7%) . (599,763)
------------
NET ASSETS--100.0%..................... $ 82,522,326
============
- ------------------------------------------------------------------------------
* Non-income producing security.
See Glossary of Terms on page 71.
See Notes to Financial Statements.
37
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
SHORT-TERM MULTI-MARKET PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996 (UNAUDITED)
- ------------------------------------------------------------------------------
Shares or
Principal
Amount
(000) U.S. $ Value
--------- ------------
AUSTRALIA--4.9%
GOVERNMENT/AGENCY--4.9%
Commonwealth of Australia
6.25%, 3/15/99 (a)
(cost $238,698)............ AU$ 320 $ 239,277
------------
CANADA--4.3%
GOVERNMENT/AGENCY--4.3%
Government of Canada
8.00%, 11/01/98 (a)
(cost $210,150)............ CA$ 275 208,833
------------
DENMARK--4.5%
GOVERNMENT/AGENCY--4.5%
Kingdom of Denmark
9.00%, 11/15/98 (a)
(cost $236,626)............ DKK 1,200 222,200
------------
FINLAND--5.0%
GOVERNMENT/AGENCY--5.0%
Republic of Finland
11.00%, 1/15/99
(cost $240,448)............ FIM 1,000 245,703
------------
FRANCE--1.6%
GOVERNMENT/AGENCY--1.6%
Government of France
5.75%, 11/12/98
(cost $82,319)............. FRF 400 79,462
------------
GERMANY--4.4%
GOVERNMENT/AGENCY--4.4%
Federal Republic of Germany
5.75%, 5/28/99 (a)
(cost $211,220)............ DEM 315 212,762
------------
IRELAND--2.9%
GOVERNMENT/AGENCY--2.9%
Republic of Ireland
6.25%, 4/01/99
(cost $139,709)............ IEP 90 143,247
------------
ITALY--4.2%
GOVERNMENT/AGENCY--4.2%
Republic of Italy
9.50%, 4/15/99 ............ LIRA 150,000 $ 100,830
10.50%, 11/01/98 .......... 150,000 102,318
------------
Total Italian Securities
(cost $195,477)............ 203,148
------------
NEW ZEALAND--4.1%
GOVERNMENT/AGENCY--4.1%
New Zealand Bond Treasury
Zero Coupon, 10/09/96 (a)
(cost $195,316)............ NZ$ 297 198,858
------------
NORWAY--4.2%
GOVERNMENT/AGENCY--4.2%
Kingdom of Norway
9.00%, 1/31/99
(cost $210,999)............ NOK 1,250 207,849
------------
SPAIN--5.0%
GOVERNMENT/AGENCY--5.0%
Kingdom of Spain
9.90%, 10/31/98 (a)
(cost $245,397)............ ESP 30,000 246,131
------------
SWEDEN--6.1%
GOVERNMENT/AGENCY--6.1%
Kingdom of Sweden
11.00%, 1/21/99 (a)
(cost $297,725)............ SEK 1,800 299,057
------------
UNITED KINGDOM--2.2%
GOVERNMENT/AGENCY--2.2%
U.K. Treasury
10.50%, 5/19/99
(cost $106,208)............ GBP 63 106,953
------------
UNITED STATES--50.1%
DEBT OBLIGATIONS--3.2%
KFW International Finance, Inc.
8.25%, 3/18/98 (a) ........ US$ 150 154,810
------------
38
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
SHORT-TERM MULTI-MARKET PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONT'D)
- ------------------------------------------------------------------------------
Shares or
Principal
Amount
(000) U.S. $ Value
--------- ------------
GOVERNMENT/AGENCY--4.9%
U.S. Treasury Note
5.00%, 2/15/99 (a) ........ US$ 250 $ 242,540
------------
TIME DEPOSIT--42.0%
State Street Bank and Trust Co.
5.00%, 7/01/96 ............ 2,054 2,054,000
------------
Total United States Securities
(cost $2,456,120).......... 2,451,350
------------
TOTAL INVESTMENTS--103.5%
(cost $5,066,412).......... $ 5,064,830
Other assets less liabilities--(3.5%) (171,871)
------------
NET ASSETS--100.0%........... $ 4,892,959
============
- ------------------------------------------------------------------------------
(a) Securities segregated to collateralize forward exchange currency contracts
with an aggregate market value of $2,024,468. See Notes to Financial
Statements.
39
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
U.S. GOVERNMENT/HIGH GRADE SECURITIES PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996 (UNAUDITED)
- ------------------------------------------------------------------------------
Shares or
Principal
Amount
(000) U.S. $ Value
--------- ------------
PREFERRED STOCKS--0.2%
FINANCE--0.2%
Banesto Holdings Ltd.
10.50% Conv. Series A (a)
(cost $49,725)....................... 1,800 $ 51,975
------------
CORPORATE OBLIGATIONS--11.4%
ASSET BACKED--3.6%
Chemical Master Credit Card Trust I
5.98%, 9/15/08....................... $ 1,000 918,120
------------
FINANCE--4.1%
Ford Motor Credit Co.
6.125%, 1/09/06...................... 500 457,050
Goldman Sachs Group L.P.
7.25%, 10/01/05 (a).................. 500 493,320
Wachovia Corp.
6.375%, 4/15/03...................... 75 72,448
------------
1,022,818
------------
YANKEES--3.7%
Republic of Columbia
8.70%, 2/15/16....................... 500 458,190
St. George Bank, Ltd.
7.15%, 10/15/05 (a).................. 500 483,580
------------
941,770
------------
Total Corporate Obligations
(cost $3,063,213).................... 2,882,708
------------
U.S. GOVERNMENT
OBLIGATIONS--70.9%
U.S. TREASURY SECURITIES--45.5%
U.S. Treasury Bonds
6.00%, 2/15/26....................... 880 780,314
14.00%, 11/15/11..................... 900 1,372,779
U.S. Treasury Notes
5.00%, 1/31/98....................... 3,900 3,839,043
6.50%, 8/15/05....................... 100 98,562
7.125%, 9/30/99...................... 4,930 5,037,819
8.50%, 4/15/97....................... 350 357,381
------------
11,485,898
------------
Principal
Amount
(000) U.S. $ Value
--------- ------------
FEDERAL AGENCY -
MORTGAGES--14.9%
Federal National Mortgage Assn.
7.00%, 4/01/26....................... $ 1,781 $ 1,713,194
Government National Mortgage Assn.
7.00%, 7/15/23....................... 84 81,119
7.50%, 4/15/26....................... 1,989 1,960,436
------------
3,754,749
------------
FEDERAL AGENCY--10.5%
AID - Israel
8.00%, 11/15/01...................... 200 211,176
Federal Home Loan Bank
7.26%, 9/06/01....................... 300 307,125
Federal Home Loan Mortgage Corp.
6.13%, 8/19/99 (b)................... 200 197,906
Overseas Private Investment Corp.
6.08%, 8/15/04....................... 1,000 954,090
Student Loan Marketing Assn.
6.05%, 9/14/00....................... 1,000 979,530
------------
2,649,827
------------
Total U.S. Government Obligations
(cost $18,107,827)................... 17,890,474
------------
SOVEREIGN DEBT
OBLIGATIONS--8.8%
AUSTRALIA--2.0%
Commonwealth of Australia
8.75%, 8/15/08 (b)......... AU$ 640 493,944
------------
CANADA--3.1%
Government of Canada
8.75%, 12/01/05............ CA $ 1,000 788,104
------------
POLAND--3.7%
Republic of Poland
3.75%, PDI, 10/27/14 (c)... US $ 1,200 924,000
------------
Total Sovereign Debt Obligations
(cost $2,196,319).......... 2,206,048
------------
40
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
U.S. GOVERNMENT/HIGH GRADE SECURITIES PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONT'D)
- ------------------------------------------------------------------------------
Principal
Amount
(000) U.S. $ Value
--------- ------------
SHORT-TERM INVESTMENTS--9.3%
TIME DEPOSIT--9.3%
State Street Bank and Trust Co.
5.00%, 7/01/96
(amortized cost $2,343,000) ......... $ 2,343 $ 2,343,000
------------
TOTAL INVESTMENTS--100.6%
(cost $25,760,084)................... $ 25,374,205
Other assets less liabilities--(0.6%) . (152,283)
------------
NET ASSETS--100.0%..................... $ 25,221,922
============
- ------------------------------------------------------------------------------
(a) Securities exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration normally applied to certain qualified buyers. At June 30,
1996, the aggregate market value of these securities amounted to
$1,028,875 or 4.1% of net assets.
(b) Securities segregated to collateralize forward exchange currency contracts
with an aggregate market value of $691,850.
(c) Coupon will increase periodically based upon a predetermined schedule.
Stated interest rate in effect at June 30, 1996. See Glossary of Terms on
page 71. See Notes to Financial Statements.
41
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
TOTAL RETURN PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996 (UNAUDITED)
- ------------------------------------------------------------------------------
Shares U.S. $ Value
------ ------------
COMMON STOCKS--57.3%
BASIC INDUSTRIES--2.9%
CHEMICALS--2.6%
Dow Chemical Co........................ 1,500 $ 114,000
Monsanto Co............................ 3,950 128,375
Morton International, Inc.............. 2,900 108,025
Union Carbide Corp..................... 3,100 123,225
------------
473,625
------------
CONTAINERS--0.3%
Crown Cork & Seal, Inc................. 1,400 63,000
------------
536,625
------------
CAPITAL GOODS--3.5%
ELECTRICAL EQUIPMENT--1.8%
General Electric Co.................... 3,900 337,350
------------
MACHINERY--1.1%
Allied-Signal, Inc..................... 3,400 194,225
------------
POLLUTION CONTROL--0.6%
WMX Technologies, Inc.................. 3,500 114,625
------------
646,200
------------
CONSUMER
MANUFACTURING--1.1%
AUTO & RELATED--1.1%
Goodyear Tire & Rubber Co.............. 3,100 149,575
Magna International, Inc............... 1,100 50,600
------------
200,175
------------
CONSUMER SERVICES--7.0%
AIRLINES--0.3%
Northwest Airlines Corp. Cl.A*......... 1,300 51,269
------------
BROADCASTING &
CABLE--1.6%
AirTouch Communications, Inc.*......... 4,200 118,650
Cox Communications, Inc. Cl.A*......... 3,600 77,850
Liberty Media Group Cl.A*.............. 3,600 95,625
------------
292,125
------------
ENTERTAINMENT &
LEISURE--1.9%
Carnival Corp. Cl.A.................... 1,700 49,088
Eastman Kodak Co....................... 1,300 101,075
ITT Corp.*............................. 1,200 79,500
Walt Disney Co......................... 1,900 119,462
------------
349,125
------------
RESTAURANTS &
LODGING--1.1%
McDonald's Corp........................ 2,900 $ 135,575
Wendy's International, Inc............. 4,300 80,088
------------
215,663
------------
RETAILING--2.1%
Federated Department Stores, Inc.*..... 3,300 112,612
Lowes Cos., Inc........................ 3,200 115,600
Price/Costco, Inc*..................... 3,400 73,100
Sears, Roebuck & Co.................... 1,800 87,525
------------
388,837
------------
1,297,019
------------
CONSUMER STAPLES--8.1%
COSMETICS--1.0%
Gillette Co............................ 3,000 187,125
------------
FOOD--2.4%
Campbell Soup Co....................... 1,000 70,500
General Mills, Inc..................... 1,900 103,550
Kellogg Co............................. 1,200 87,900
PepsiCo, Inc........................... 4,900 173,337
------------
435,287
------------
HOUSEHOLD PRODUCTS--2.0%
Black & Decker Corp.................... 3,400 131,325
Colgate-Palmolive Co................... 1,900 161,025
Newell Co.............................. 2,700 82,688
------------
375,038
------------
TOBACCO--2.7%
Philip Morris Cos., Inc................ 3,600 374,400
RJR Nabisco Holdings Corp.............. 4,000 124,000
------------
498,400
------------
1,495,850
------------
ENERGY--4.4%
DOMESTIC INTEGRATED--3.4%
Atlantic Richfield Co.................. 1,100 130,350
Exxon Corp............................. 3,800 330,125
Mobil Corp............................. 1,500 168,188
------------
628,663
------------
PIPELINES--1.0%
Enron Corp............................. 4,400 179,850
------------
808,513
------------
FINANCE--8.3%
BANKING & CREDIT--4.2%
Chase Manhattan Corp................... 1,740 122,888
42
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
TOTAL RETURN PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONT'D)
- ------------------------------------------------------------------------------
Shares U.S. $ Value
------ ------------
First Chicago NBD Corp................. 3,172 $ 124,104
First Union Corp....................... 2,800 170,450
Fleet Financial Group, Inc............. 2,400 104,400
MBNA Corp.............................. 3,650 104,025
NationsBank Corp....................... 1,700 140,462
Republic New York Corp................. 300 18,675
------------
785,004
------------
BROKERAGE & MONEY
MANAGEMENT--1.3%
Merrill Lynch & Co., Inc............... 2,500 162,813
Morgan Stanley Group, Inc.............. 1,400 68,775
------------
231,588
------------
INSURANCE--1.7%
General Reinsurance Corp............... 800 121,800
PMI Group, Inc......................... 2,200 93,500
Travelers Group, Inc................... 2,300 104,937
------------
320,237
------------
MORTGAGE BANKING--0.6%
Federal National Mortgage Association . 3,100 103,850
------------
OTHER--0.5%
Dean Witter, Discover & Co............. 1,700 97,325
------------
1,538,004
------------
HEALTH CARE--8.1%
BIOTECHNOLOGY--0.3%
Centocor, Inc.*........................ 1,900 56,881
------------
DRUGS--5.3%
Amgen, Inc.*........................... 1,500 80,813
Bristol-Myers Squibb Co................ 2,300 207,000
Lilly (Eli) & Co....................... 1,100 71,500
Merck & Co., Inc....................... 4,500 290,812
Pharmacia & Upjohn, Inc................ 2,400 106,500
Schering-Plough Corp................... 3,500 219,625
------------
976,250
------------
MEDICAL PRODUCTS--0.7%
Baxter International, Inc.............. 2,600 122,850
------------
MEDICAL SERVICES--1.8%
Columbia/HCA Healthcare Corp........... 4,300 229,512
United Healthcare Corp................. 1,500 75,750
Value Health, Inc.*.................... 1,100 25,988
------------
331,250
------------
1,487,231
------------
MULTI INDUSTRY--0.6%
Tyco International Ltd................. 1,000 $ 40,750
U.S. Industries, Inc.*................. 800 19,300
Whitman Corp........................... 2,500 60,313
------------
120,363
------------
TECHNOLOGY--7.6%
COMMUNICATIONS
EQUIPMENT--1.2%
DSC Communications Corp.*.............. 1,500 45,094
General Instrument Corp.*.............. 700 20,212
Nokia Corp. (ADR)...................... 4,400 162,800
------------
228,106
------------
COMPUTER HARDWARE--2.9%
Compaq Computer Corp.*................. 2,000 98,500
Hewlett-Packard Co..................... 2,200 219,175
International Business Machines Corp... 2,100 207,900
------------
525,575
------------
COMPUTER SOFTWARE &
SERVICES--0.5%
First Data Corp........................ 1,200 95,550
------------
OFFICE EQUIPMENT &
SERVICES--0.9%
Xerox Corp............................. 3,000 160,500
------------
SEMI-CONDUCTORS &
RELATED--2.1%
Altera Corp.*.......................... 1,000 37,937
Atmel Corp.*........................... 2,000 60,375
Intel Corp............................. 3,300 242,344
National Semiconductor Corp.*.......... 3,200 49,600
------------
390,256
------------
1,399,987
------------
TRANSPORTATION--0.5%
RAILROADS--0.5%
CSX Corp............................... 1,600 77,200
Illinois Central Corp.................. 695 19,721
------------
96,921
------------
UTILITIES--5.2%
ELECTRIC & GAS--2.5%
FPL Group, Inc......................... 5,200 239,200
Houston Industries, Inc................ 8,500 209,313
------------
448,513
------------
43
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
TOTAL RETURN PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONT'D)
- ------------------------------------------------------------------------------
Shares or
Principal
Amount
(000) U.S. $ Value
--------- ------------
TELEPHONE--2.7%
AT & T Corp............................ 5,600 $ 347,200
Century Telephone Enterprises, Inc..... 4,900 156,187
------------
503,387
------------
951,900
------------
Total Common Stocks
(cost $9,953,890).................... 10,578,788
------------
U.S. GOVERNMENT
OBLIGATIONS--31.1%
U.S. Treasury Notes
4.75%, 8/31/98....................... $ 2,317 2,251,475
7.25%, 8/15/04....................... 3,355 3,475,042
------------
Total U.S. Government Obligations
(cost $5,849,506).................... 5,726,517
------------
Principal
Amount
(000) U.S. $ Value
--------- ------------
SHORT-TERM INVESTMENTS--9.4%
TIME DEPOSIT--9.4%
State Street Bank and Trust Co.
5.00%, 7/01/96
(amortized cost $1,734,000).......... $ 1,734 $ 1,734,000
------------
TOTAL INVESTMENTS--97.8%
(cost $17,537,396)................... 18,039,305
Other assets less liabilities--2.2% ... 414,169
------------
NET ASSETS--100.0%..................... $ 18,453,474
============
- ------------------------------------------------------------------------------
* Non-income producing security.
See Glossary of Terms on page 71.
See Notes to Financial Statements.
44
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
INTERNATIONAL PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996 (UNAUDITED)
- ------------------------------------------------------------------------------
Shares U.S. $ Value
------ ------------
COMMON STOCKS AND
OTHER INVESTMENTS--93.9%
AUSTRALIA--1.9%
Coca Cola Amatil Ltd................... 14,086 $ 156,413
Mayne Nickless Ltd..................... 10,000 58,389
Qantas Airways Ltd..................... 11,589 19,581
TNT*................................... 33,000 37,084
WMC Ltd................................ 17,056 121,972
Woolworths Ltd......................... 78,073 188,357
------------
581,796
------------
AUSTRIA--0.1%
Austria Mikro Systeme
International AG (a)................. 110 10,276
Mayr Melnhof Karton AG*................ 520 22,394
------------
32,670
------------
BELGIUM--0.5%
Kredietbank S.A........................ 500 149,993
------------
BRAZIL--0.2%
Dixie Toga S.A. pfd.................... 27,000 26,080
Industries Klabin de Papel E
Celulose S.A. pfd.................... 40,000 50,588
------------
76,668
------------
DENMARK--1.0%
Den Danske Bank........................ 2,830 189,842
Tele Danmark AS, Series B.............. 2,760 138,978
------------
328,820
------------
FINLAND--0.9%
Merita Ltd. Series A*.................. 35,730 74,830
Nokia AB Cl.A.......................... 2,118 78,197
Orion-Yhtymne OY Series B.............. 3,922 131,083
------------
284,110
------------
FRANCE--8.8%
Banque National de Paris............... 6,028 211,770
Bouygues............................... 1,598 178,329
CEP Communications..................... 300 25,371
Compagnie Generale des Eaux ........... 1,157 129,340
Group Danone........................... 1,590 240,806
Group Danone (New)*.................... 26 3,883
GTM Entrepose.......................... 1,210 78,571
Klepierre.............................. 180 22,047
Lafarge Coppee S.A..................... 2,400 145,346
Legris Ind. S.A.*...................... 2,796 130,461
Pechiney S.A........................... 2,280 90,959
Peugeot PSA Peugeot Citroen (b)........ 1,390 186,194
Salomon S.A.*.......................... 160 $ 146,357
Sefimeg................................ 1,045 70,701
Simco.................................. 710 65,567
Simco (New)............................ 8 655
Soc Elf Aquitaine S.A.................. 1,970 145,004
Societe Centrale des Assurances
Generales de France (b).............. 6,060 164,236
Societe des Immeub..................... 1,235 79,715
Societe Television Francaise........... 790 90,310
Total S.A. (ADR)....................... 1,246 46,258
Total S.A. Cl.B........................ 2,850 211,550
Union du Credit Bail Immobilier........ 1,320 131,908
Union Immob France..................... 900 73,664
Usinor Sacilor*........................ 5,700 82,282
------------
2,751,284
------------
GERMANY--6.0%
Bayer AG (b)........................... 8,720 308,254
Deutsche Bank AG....................... 3,700 175,205
Henkel Kgaa, pfd....................... 526 227,282
Hornbach Holding AG pfd................ 1,800 155,081
KSB.................................... 225 38,474
KSB AG - Vorzug pfd.................... 660 85,077
Lufthansa AG........................... 1,030 145,643
Schmalbach Lubeca AG*.................. 900 176,981
Suedzucker AG.......................... 321 159,603
Varta AG*.............................. 565 121,324
Veba AG................................ 5,250 279,229
------------
1,872,153
------------
HONG KONG--2.8%
Asia Satellite Telecom Ltd.*........... 3,000 8,894
Citic Pacific, Ltd..................... 16,000 64,696
Consolidated Electric Power Asia Ltd... 71,000 117,404
Dao Heng Bank Group Ltd................ 30,000 115,880
First Pacific Co. Ltd.................. 62,357 95,862
Guangshen Railway Co. Ltd. (ADR)*...... 2,000 38,250
Hong Kong and China Gas Co. Ltd........ 27,440 43,779
warrants, expiring 9/30/97*.......... 1,620 424
Hysan Development Co. Ltd.............. 13,000 39,802
warrants, expiring 4/30/98*.......... 500 265
New World Development Co. Ltd.......... 9,226 42,788
Sun Hung Kai Properties Ltd............ 7,000 70,761
Swire Pacific Ltd. Cl.A................ 9,000 77,027
Television Broadcasts of
Hong Kong Ltd........................ 22,000 82,563
Wharf (Holdings) Ltd................... 21,000 75,147
------------
873,542
------------
45
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
INTERNATIONAL PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONT'D)
- ------------------------------------------------------------------------------
Shares U.S. $ Value
------ ------------
INDIA--0.4%
Bajaj Auto Ltd. (GDR) (a)* ............ 3,800 $ 142,500
------------
INDONESIA--1.3%
HM Sampoerna .......................... 18,000 204,941
Indosat ............................... 45,000 151,289
PT Telekomunikasi Indonesia ........... 5,000 7,572
PT Telekomunikasi Indonesia (ADR) ..... 1,000 29,750
------------
393,552
------------
IRELAND--0.4%
Irish Life Plc ........................ 3,092 12,293
Irish Life Plc (Dublin Listing) ....... 31,427 124,925
------------
137,218
------------
ITALY--2.2%
Ente Nazionale Idrocarburi S.p.A ...... 29,300 146,285
INA ................................... 109,200 162,953
La Rinascente S.p.A ................... 25,355 181,728
Magneti Marelli ....................... 16,600 23,687
Societa Italiana Per L'Eserreizio
Delle Telecommunicazioni, P.A.* ..... 88,300 190,007
------------
704,660
------------
JAPAN--36.0%
Amano Corp. ........................... 10,000 149,042
Asahi Glass Co. Ltd. .................. 20,000 239,565
Bank of Tokyo-Mitsubishi Bank ......... 400 9,290
Bank of Tokyo-Mitsubishi Bank Ltd. .... 800 18,653
Canon, Inc. ........................... 10,000 208,476
Chiba Bank ............................ 6,000 52,997
Dai Nippon Printing Co. Ltd. .......... 7,000 135,692
Daifuku Co. ........................... 8,000 122,891
Daito Trust Construction .............. 13,300 199,442
Daiwa Securities Co. Ltd. ............. 5,000 64,463
DDI Corp. ............................. 77 673,086
East Japan Railway Co. ................ 36 189,274
Eisai Co. ............................. 6,250 118,297
Fuji Photo Film Co. (ORD) ............. 2,000 63,274
Furukawa Co. Ltd. ..................... 12,000 63,091
Hirose Electric Co. ................... 3,000 185,708
Honda Motor Co. ....................... 3,000 77,904
House Food Industry ................... 4,000 76,076
Hoya Corp. ............................ 8,000 258,949
Ishikawajima-Harima Heavy Industries .. 13,000 63,594
Ito - Yokado Co. Ltd. ................. 2,000 120,880
Japan Securities Finance .............. 13,000 210,396
Japan Tobacco, Inc. ................... 20 153,614
Kamigumi Co. Ltd. ..................... 9,000 82,293
Kandenko Co. Ltd. ..................... 7,300 $ 92,781
Kao Corp. ............................. 15,000 202,990
Kirin Brewery Co. Ltd. ................ 6,000 73,515
Kokuyo ................................ 2,000 55,411
Kuraray Co. Ltd. ...................... 15,000 168,701
Mabuchi Motor Co. ..................... 1,000 63,823
Maeda Road Construction ............... 3,000 51,845
Matsushita Electric Industrial ........ 16,000 298,450
Matsushita Electric Works ............. 10,000 108,810
Mitsubishi Heavy Industries Ltd. ...... 15,000 130,709
Mitsubishi Materials Corp. ............ 7,000 38,147
Mitsubishi Oil Co. .................... 14,000 119,691
Mitsui Marine & Fire .................. 15,000 119,462
Mitsui Trust and Banking Co. Ltd. ..... 30,000 351,118
National House Industrial Co. ......... 7,000 109,450
NGK Insulators ........................ 5,000 56,234
Nikko Securities Co. Ltd. ............. 12,000 134,961
Nippon Express Co. Ltd. ............... 13,000 127,189
Nippon Light Metal Co. ................ 13,000 73,936
Nippon Steel Corp. .................... 32,000 110,017
Nisshin Steel Co. Ltd. ................ 60,000 233,164
NKK Corp.* ............................ 37,000 112,321
Nomura Securities Co. Ltd. ............ 12,000 234,810
NTT Data Communications
Systems Corp. ....................... 5 149,957
Osaka Gas Co. ......................... 25,000 91,665
Rohm Co. .............................. 8,000 529,603
Sankyo Co. Ltd. ....................... 2,000 51,936
Santen Pharmaceutical Co. ............. 1,000 23,316
Seven Eleven Japan .................... 7,400 472,967
Shimano, Inc. ......................... 6,000 107,530
Shimizu Corp. ......................... 11,000 121,703
Shiseido Co. Ltd. ..................... 11,000 140,813
Sony Music Entertainment, Inc. ........ 2,000 93,266
Sumitomo Electric Industries .......... 8,000 114,845
Sumitomo Marine & Fire ................ 13,000 113,519
Sumitomo Realty & Development ......... 15,000 118,914
Sumitomo Rubber Ind ................... 6,000 52,064
Taisho Pharmaceutical Co. ............. 5,000 108,353
Takeda Chemical Industries ............ 3,000 53,216
TDK Corp. ............................. 6,000 358,798
Toagosei Co. Ltd. ..................... 5,000 26,380
Tokai Bank ............................ 13,000 168,793
Tokyo Electric Power .................. 6,000 152,517
Tokyo Gas Cos. Ltd. ................... 51,000 186,531
46
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
INTERNATIONAL PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONT'D)
- ------------------------------------------------------------------------------
Shares U.S. $ Value
------ ------------
Tokyo Steel Manufacturing .............. 13,000 $ 255,566
Toyo Kanetsu Kk ........................ 9,000 45,920
Toyota Corp. ........................... 18,000 450,967
Ube Industries Ltd.* ................... 12,000 45,755
Ushio, Inc. ............................ 12,000 147,031
Yakult Honsha Co. ...................... 7,000 99,209
Yamanouchi Pharmaceutical .............. 10,000 217,620
Yamatake Honeywell ..................... 6,000 109,176
Yamazaki Baking Co. Ltd. ............... 4,000 74,247
------------
11,286,659
------------
KOREA--0.5%
Korea Electric Power Corp.(ADR) ........ 2,200 53,350
Korea Mobile Telecommunications
Corp. (ADR)* (a) ..................... 2,400 41,100
Pohang Iron & Steel Ltd.(ADR) .......... 2,000 48,750
------------
143,200
------------
MALAYSIA--1.9%
Ammb Holdings Bhd ...................... 9,000 126,278
DCB Holdings Bhd,
warrants, expiring 12/27/99* ......... 2,750 3,616
Malakoff Bhd ........................... 22,000 96,131
Malayan Banking Bhd .................... 8,000 76,969
Petronas Gas Bhd ....................... 19,000 81,499
Rashid Hussain Bhd ..................... 12,000 44,017
Resorts World Bhd ...................... 24,000 137,583
Telekom Malaysia ....................... 5,000 44,498
------------
610,591
------------
NETHERLANDS--3.0%
Akzo Nobel N.V ......................... 2,150 257,798
Apothekers Cooperative OPG ............. 850 22,776
Fortis Amev N.V ........................ 8,190 234,823
Ing Groep N.V .......................... 8,215 245,174
Koninklijke KNP BT N.V ................. 4,000 95,925
Koninklijke Nedlloyd Groep N.V ......... 3,550 81,803
------------
938,299
------------
NEW ZEALAND--0.9%
Fletcher Challenge Ltd. ................ 26,000 32,377
Lion Nathan Ltd. ....................... 35,000 91,744
Telecom Corp. of New Zealand Ltd. ...... 37,000 155,790
------------
279,911
------------
NORWAY--1.0%
Bergesen D.Y. AS Cl.A .................. 8,000 166,433
Christiania Bank OG Kreditkasse ........ 60,000 141,468
------------
307,901
------------
PHILIPPINES--0.4%
Manila Electric Co. .................... 10,550 $ 110,735
Philippine Commercial International
Bank ................................. 1,000 12,500
------------
123,235
------------
SINGAPORE--1.3%
Overseas Chinese Bank .................. 10,000 116,938
Overseas Union Bank Ltd. ............... 19,000 130,617
Singapore Airlines Ltd. ................ 4,000 42,239
Singapore Press Holdings Ltd.
(Foreign) ............................ 6,000 117,789
------------
407,583
------------
SPAIN--1.7%
Banco Intercontinental Espana .......... 1,552 173,745
Repsol S.A ............................. 3,400 118,331
Sol Melia S.A.* ........................ 1,800 37,967
Tabacalera S.A. Series A ............... 3,180 160,236
Uralita S.A ............................ 5,280 49,498
------------
539,777
------------
SWEDEN--1.9%
Astra AB ............................... 3,900 172,611
Electrolux AB Series B ................. 2,570 129,469
Marieberg Tidnings AB .................. 5,860 146,940
Stora Kopparbergs Series B ............. 10,115 133,693
------------
582,713
------------
SWITZERLAND--3.9%
Baloise Holdings Ltd. .................. 77 167,525
Ciba Geigy AG Registered ............... 340 414,734
Forbo Holding AG ....................... 385 163,214
Nestle S.A ............................. 259 296,041
Sandoz AG Registered ................... 150 171,693
------------
1,213,207
------------
TAIWAN--0.2%
Advanced Semiconductor
Engineering (GDR)* (a) ............... 8,100 66,825
------------
THAILAND--0.4%
Bangkok Bank Public Co. Ltd............. 5,000 67,756
Thai Farmers Bank Co.................... 5,000 54,757
------------
122,513
------------
UNITED KINGDOM--14.3%
Anglian Water Plc....................... 19,550 179,894
B.A.T. Industries Plc................... 39,400 306,560
Babcock International Group Plc......... 25,500 36,038
47
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
INTERNATIONAL PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONT'D)
- ------------------------------------------------------------------------------
Shares U.S. $ Value
------ ------------
Baird (William) Plc .................... 14,895 $ 45,802
British Land Co. Plc ................... 22,300 146,323
British Telecommunications Plc ......... 28,900 155,294
British Vita Plc ....................... 29,900 98,908
BTR Plc ................................ 56,000 220,034
Cadbury Schweppes Plc .................. 18,900 149,404
Coats Viyella Plc ...................... 21,955 58,476
Courtald Plc ........................... 10,200 56,869
Enterprise Oil Plc ..................... 20,900 149,309
General Electric Plc ................... 33,100 178,120
Glaxo Wellcome Plc ..................... 11,000 148,113
Grand Metropolitan Plc ................. 36,700 243,375
Hazlewood Foods Plc .................... 50,200 76,403
Hepworth Plc ........................... 41,150 184,373
Holliday Chemical Holdings Plc ......... 31,590 57,891
Marley Plc ............................. 51,000 102,174
McBride (a) ............................ 25,000 50,086
Mowlem (John) & Co. Plc ................ 41,000 57,307
National Power Plc ..................... 15,450 124,771
Northern Foods Plc ..................... 28,500 81,884
Pace Micro Technology Plc* ............. 25,050 73,139
Peninsular & Oriental Steam
Navigation Co. ....................... 22,100 166,119
Royal Bank of Scotland Group ........... 24,800 189,881
Rugby Group Plc ........................ 100,000 170,834
Sainsbury (J.) Plc ..................... 31,500 185,409
Sears Plc .............................. 91,300 140,374
Tate & Lyle Plc ........................ 29,400 208,891
Vodafone Group Plc ..................... 61,400 228,379
Wimpey (George) Plc .................... 98,800 227,859
------------
4,498,293
------------
Principal
Amount
(000) U.S. $ Value
--------- ------------
Total Common Stocks and
Other Investments
(cost $27,855,183).... $ 29,449,673
------------
CONVERTIBLE BOND--0.6%
JAPAN--0.6%
Sumitomo Bank International
0.75%, 5/31/01 (a)
(cost $155,634)... JPY 17,000 168,174
------------
SHORT-TERM INVESTMENTS--7.0%
TIME DEPOSIT--7.0%
State Street Bank and Trust Co.
5.00%, 7/01/96
(amortized cost $2,193,000) US$ 2,193 2,193,000
------------
TOTAL INVESTMENTS--101.5%
(cost $30,203,817).... 31,810,847
Other assets less liabilities--(1.5%) (454,847)
------------
NET ASSETS--100.0%....... $ 31,356,000
============
- ------------------------------------------------------------------------------
* Non-income producing security.
(a) Securities exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration normally applied to certain qualified buyers. At June 30,
1996, the aggregate market value of these securities amounted to $478,961
or 1.5% of net assets.
(b) Securities segregated to collateralize forward exchange currency contracts
with an aggregate market value of $658,684.
See Glossary of Terms on page 71. See Notes to Financial Statements.
48
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
MONEY MARKET PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996 (UNAUDITED)
- ------------------------------------------------------------------------------
Principal
Amount
(000) U.S. $ Value
--------- ------------
U.S. GOVERNMENT AND
AGENCY OBLIGATIONS--98.7%
Federal Farm Credit Bank
5.26%, 7/16/96 ....................... $ 4,000 $ 3,991,233
5.27%, 7/18/96 ....................... 7,000 6,982,580
Federal Home Loan Bank
5.19%, 8/12/96 ....................... 1,000 993,945
5.23%, 7/31/96 ....................... 3,300 3,285,617
5.29%, 8/27/96 ....................... 6,000 5,949,745
Federal Home Loan Mortgage Corp.
5.26%, 7/19/96 ....................... 6,000 5,984,220
5.27%, 7/15/96 ....................... 1,500 1,496,926
5.27%, 7/31/96 ....................... 400 398,237
5.28%, 7/18/96 ....................... 600 598,504
5.28%, 7/22/96 ....................... 2,571 2,563,081
Federal National Mortgage Assn.
5.24%, 7/09/96 ....................... 7,000 6,991,849
5.76%, 9/03/96 ....................... 2,000 2,000,984
Tennessee Valley Authority
Discount Note
5.29%, 7/18/96 ....................... 1,000 997,502
U.S. Treasury Note
7.25%, 8/31/96 ....................... 10,000 10,026,761
------------
TOTAL INVESTMENTS--98.7%
(amortized cost $52,261,184) ......... 52,261,184
Other assets less liabilities--1.3% .... 679,785
------------
NET ASSETS--100.0% ..................... $ 52,940,969
============
- ------------------------------------------------------------------------------
See Notes to Financial Statements.
49
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
GLOBAL DOLLAR GOVERNMENT PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996 (UNAUDITED)
- ------------------------------------------------------------------------------
Principal
Amount
(000) U.S. $ Value
--------- ------------
SOVEREIGN DEBT
OBLIGATIONS--58.5%
COLLATERALIZED
BRADY BONDS--28.5%
ARGENTINA--2.2%
Republic of Argentina
5.25% Par Euro Bonds, 3/31/23 (a)
(cost $102,922) ...................... $ 210 $ 115,367
------------
BULGARIA--1.9%
National Republic of Bulgaria
6.25% Series A Disc. (FRN),
7/28/24 (b)
(cost $94,027) ....................... 200 103,750
------------
ECUADOR--3.3%
Republic of Ecuador
6.06% Disc. (FRN), 2/28/25 (b) ....... 130 73,775
3.25% Par Bonds, 2/28/25 (a) ......... 290 105,487
------------
Total Ecuadorian Securities
(cost $161,336) ...................... 179,262
------------
MEXICO--6.7%
United Mexican States
Zero Coupon, 10/29/96 ............... 250 275
6.25%, 12/31/19 ...................... 250 162,500
6.61% Disc. (FRN), 12/31/19 (b) ...... 250 196,250
------------
Total Mexican Securities
(cost $351,129) ...................... 359,025
------------
NIGERIA--2.5%
Central Bank of Nigeria
6.25% Pars, 11/15/20 (a)
(cost $105,244) ...................... 250 133,280
------------
PHILIPPINES--3.2%
Central Bank of Philippines
6.25% Pars, 12/01/17 (a)
(cost $154,023) ...................... 215 171,194
------------
POLAND--1.2%
Republic of Poland
6.44% Disc. (FRN), 10/24/24 (b)
(cost $51,297) ....................... 70 65,800
------------
SLOVENIA--4.6%
Republic of Slovenia
6.50%, 12/27/06 (b)
(cost $247,041) ...................... 250 248,750
------------
VENEZUELA--2.9%
Republic of Venezuela
6.75% Series A Pars (FRN),
3/31/20 (b)
(cost $125,354) ...................... $ 250 $ 153,750
------------
Total Collateralized Brady Bonds
(cost $1,392,373) .................... 1,530,178
------------
OTHER SOVEREIGN DEBT--30.0%
ARGENTINA--8.0%
Hidroelectrica Alicura
8.375%, 3/15/99 ...................... 150 144,060
Republic of Argentina
Pensioner-Bocon Series II
5.42% (FRN), 4/01/01 (b) ............. 317 284,941
------------
Total Argentinian Securities
(cost $396,741) ...................... 429,001
------------
BRAZIL--9.5%
OPP Petroquimica S.A.
11.50%, 2/23/04 (c) .................. 150 150,000
Republic of Brazil
6.375% Series A IDU
(FRN), 1/01/01 (b) ................... 36 34,049
8.00% C-Bonds, 4/15/14 (d) ........... 530 329,169
------------
Total Brazilian Securities
(cost $446,036) ...................... 513,218
------------
BULGARIA--2.9%
National Republic of Bulgaria
2.00% (FRN), 7/28/12 (a) ............. 225 73,125
6.25% PDI (FRN), 7/28/11 (b) ......... 180 85,500
------------
Total Bulgarian Securities
(cost $173,070) ...................... 158,625
------------
MEXICO--0.2%
Desc Sociedad de Fomento
11.00%, 12/15/97
(cost $10,500) ....................... 10 10,350
------------
POLAND--8.3%
Republic of Poland
3.75% PDI, 10/27/14 (a)
(cost $381,539) ...................... 580 446,600
------------
50
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
GLOBAL DOLLAR GOVERNMENT PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONT'D)
- ------------------------------------------------------------------------------
Principal
Amount
(000) U.S. $ Value
--------- ------------
TRINIDAD & TOBAGO--1.1%
Republic of Trinidad & Tobago
11.75%, 10/03/04
(cost $49,720) ....................... $ 50 $ 56,825
------------
Total Other Sovereign Debt
(cost $1,457,606) .................... 1,614,619
------------
Total Sovereign Debt Obligations
(cost $2,849,979) .................... 3,144,797
------------
CORPORATE DEBT
OBLIGATIONS--37.6%
BROADCASTING &
CABLE--0.7%
Viacom, Inc.
8.00%, 7/07/06
(cost $33,422) ....................... 40 36,600
------------
FINANCIAL SERVICES--9.9%
App International Finance Company
B V Guaranteed Secured Note
11.75%, 10/01/05 ..................... 250 256,250
Dine S.A. de CV
8.125%, 10/15/98 ..................... 40 38,650
Home Holdings, Inc.
7.75%, 12/15/98 ...................... 200 164,000
8.625%, 2/15/03 ...................... 100 71,750
------------
Total Financial Services
(cost $567,473) ...................... 530,650
------------
INDUSTRIAL--4.8%
Hylsa S.A. de CV
11.00%, 2/23/98
(cost $247,206) ...................... 250 256,250
------------
YANKEES--22.2%
Banco Nacional
7.25%, 2/02/04 ....................... $ 200 $ 163,750
Centragas
10.65%, 12/01/10 (c) ................. 48 50,858
Centragas Columbia
10.65%, 12/01/10 ..................... 48 50,858
Grupo Mexicano de Desarrollo
8.25%, 2/17/01 ....................... 40 21,000
Metrogas S.A. Series B
10.875%, 5/15/01 ..................... 250 254,687
National Bank of Hungary
8.875%, 11/01/13 ..................... 290 290,829
Philippine Long Distance
9.875%, 8/01/05 ...................... 100 104,500
Republic of Columbia
8.70%, 2/15/16 ....................... 250 229,095
Telefonica de Argentina
8.375%, 10/01/00 ..................... 20 19,450
Transportacion Maritima Mexicana S.A.
9.25%, 5/15/03 ....................... 12 11,040
------------
Total Yankees
(cost $1,188,755) .................... 1,196,067
------------
Total Corporate Debt Obligations
(cost $2,036,856) .................... 2,019,567
------------
TOTAL INVESTMENTS--96.1%
(cost $4,886,835) .................... 5,164,364
Other assets less liabilities--3.9% .... 212,237
------------
NET ASSETS--100.0% ..................... $ 5,376,601
============
- ------------------------------------------------------------------------------
(a) Coupon will increase periodically based upon a predetermined schedule.
Stated interest rate in effect at June 30, 1996.
(b) Coupon will fluctuate based upon an interest rate index. Stated interest
rate in effect at June 30, 1996.
(c) Securities exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration normally applied to certain qualified buyers. At June 30,
1996, the aggregate market value of these securities amounted to $200,858
or 3.7% of net assets.
(d) Coupon consists of 4.50% cash payment and 3.50% paid-in-kind.
See Glossary of Terms on page 71.
See Notes to Financial Statements.
51
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
NORTH AMERICAN GOVERNMENT INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996 (UNAUDITED)
- ------------------------------------------------------------------------------
Principal
Amount
(000) U.S. $ Value
--------- ------------
ARGENTINA--18.4%
GOVERNMENT OBLIGATIONS--18.4%
Republic of Argentina
Pensioner-Bocon Series I
3.56% (FRN), 4/01/01 (a) ... ARS 336 $ 264,733
3.56% (FRN), 4/01/07 (a) ... 3,042 1,794,043
Republic of Argentina
Pensioner-Bocon Series II
3.56% (FRN), 9/01/02 (a) ... 59 38,216
------------
Total Argentinian Securities
(cost $1,569,737) .......... 2,096,992
------------
CANADA--17.1%
GOVERNMENT/AGENCY--17.1%
Government of Canada
6.50%, 6/01/04 (b) ......... CA$ 850 585,175
Province of British Columbia
8.00%, 9/08/23 (b) ......... 400 283,211
Province of Manitoba
7.75%, 12/22/25 (b) ........ 450 308,912
Province of Ontario
8.25%, 12/01/05 (b) ........ 275 207,464
Province of Quebec
7.75%, 3/30/06 ............. 325 233,877
Province of Saskatchewan
9.60%, 2/04/22 ............. 400 329,363
------------
Total Canadian Securities
(cost $1,955,695) .......... 1,948,002
------------
MEXICO--19.7%
GOVERNMENT/AGENCY--19.7%
Mexican Treasury Bills
Zero Coupon, 7/25/96 ....... MXP 404 52,176
Zero Coupon, 9/26/96 ....... 3,359 412,160
Zero Coupon, 10/10/96 ...... 904 109,683
Zero Coupon, 12/11/96 ...... 2,551 295,451
Nafinsa
Zero Coupon, 10/10/96 ...... 3,366 406,760
United Mexican States
21.00%, 11/27/96 (a)(c) .... US$ 1,000 963,106
------------
Principal
Contract
Amount
(000) U.S. $ Value
--------- ------------
Total Mexican Securities
(cost $2,281,381) .......... $ 2,239,336
------------
UNITED STATES--42.1%
U.S. TREASURY SECURITIES--17.3%
U.S. Treasury Notes
6.50%, 4/30/99 ............. US$ 85 85,451
7.125%, 9/30/99 ............ 320 326,999
7.25%, 8/15/04 ............. 1,500 1,553,670
------------
1,966,120
------------
FEDERAL AGENCY -
MORTGAGES--1.6%
Government National
Mortgage Assn
9.00%, 9/15/24 ............. 177 184,979
------------
FEDERAL AGENCY--5.7%
Federal Home Loan Bank
7.26%, 9/06/01 ............. 200 204,750
Federal Home Loan
Mortgage Corp.
6.13%, 8/19/99 ............. 150 148,430
Federal National Mortgage Assn.
5.05%, 11/10/98 ............ 305 298,043
------------
651,223
------------
TIME DEPOSIT--17.5%
State Street Bank and Trust Co.
5.00%, 7/01/96 ............. 1,995 1,995,000
------------
Total United States Securities
(cost $4,725,255) .......... 4,797,322
------------
OTHER--0.0%
PUT OPTIONS PURCHASED
Brazil Real
expiring November 1996 @ 1.10
(cost $1,618) .............. US$ 1,150 2,185
------------
TOTAL INVESTMENTS--97.3%
(cost $10,533,686) ......... 11,083,837
Other assets less liabilities--2.7% 312,410
------------
NET ASSETS--100.0% ........... $ 11,396,247
============
52
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
NORTH AMERICAN GOVERNMENT INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONT'D)
- ------------------------------------------------------------------------------
(a) Coupon will fluctuate based upon an interest rate index. Stated interest
rate in effect at June 30, 1996.
(b) Securities segregated to collateralize forward exchange currency contracts
with an aggregate market value of $1,384,762.
(c) Security exempt from registration under Rule 144A of the Securities Act of
1933. This security may be resold in transactions exempt from registration
normally applied to certain qualified buyers. At June 30, 1996, the
aggregate market value of this security amounted to $963,106 or 8.5% of net
assets.
See Glossary of Terms on page 71.
See Notes to Financial Statements.
53
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
UTILITY INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996 (UNAUDITED)
- ------------------------------------------------------------------------------
Shares U.S. $ Value
------ ------------
COMMON STOCKS--85.7%
UNITED STATES INVESTMENTS--77.6%
CONSUMER SERVICES--5.8%
BROADCASTING &
CABLE--5.8%
AirTouch Communications, Inc.* ......... 14,796 $ 417,987
TCI Group Series A* .................... 16,100 290,806
------------
708,793
------------
ENERGY--0.9%
PIPELINES--0.9%
Enron Corp. ............................ 2,800 114,450
------------
TECHNOLOGY--9.4%
COMMUNICATIONS
EQUIPMENT--9.4%
DSC Communications Corp.* .............. 9,100 273,569
General Instrument Corp.* .............. 4,600 132,825
Glenayre Technologies, Inc.* ........... 5,050 252,184
Motorola, Inc. ......................... 5,900 370,962
Northern Telecom, Ltd. ................. 2,300 125,063
------------
1,154,603
------------
TRANSPORTATION--4.5%
RAILROADS--4.5%
Southern Pacific Rail Corp.* ........... 8,300 207,500
Union Pacific Corp. .................... 5,000 349,375
------------
556,875
------------
UTILITIES--57.0%
ELECTRIC & GAS--38.4%
Allegheny Power Systems ................ 8,800 271,700
American Electric Power, Inc. .......... 8,100 345,263
Baltimore Gas & Electric Co. ........... 5,600 158,900
Carolina Power & Light Co. ............. 9,000 342,000
Central & South West Corp. ............. 12,000 348,000
CMS Energy Corp. ....................... 8,200 253,175
DPL, Inc. .............................. 6,500 158,438
FPL Group, Inc. ........................ 7,700 354,200
Houston Industries, Inc. ............... 15,000 369,375
Illinova Corp. ......................... 8,300 238,625
Ipalco Enterprises, Inc. ............... 10,000 262,500
New York State Electric & Gas Corp. .... 14,400 351,000
Pinnacle West Capital Corp. ............ 5,400 164,025
Portland General Corp. ................. 11,580 357,532
Public Service Co. of New Mexico ....... 18,600 $ 381,300
Texas Utilities Co. .................... 8,100 346,275
------------
4,702,308
------------
TELEPHONE--18.6%
AT & T Corp. ........................... 9,460 586,520
Brooks Fiber Properties, Inc.* ......... 2,600 85,475
Ericsson (L.M.) Telephone Co. .......... 10,600 227,238
MCI Communications Corp. ............... 11,200 286,300
Nynex Corp. ............................ 2,300 109,250
Telefonica de Peru S.A ................. 62,000 125,878
Telephone and Data Systems, Inc. ....... 6,000 270,000
U.S. Cellular Corp.* ................... 8,300 257,300
U.S. West Communications, Inc. ......... 10,300 328,312
------------
2,276,273
------------
6,978,581
------------
Total United States Investments
(cost $9,091,192) .................... 9,513,302
------------
FOREIGN INVESTMENTS--8.1%
BRAZIL--1.0%
Telecomunicacoes Brasileras
S.A. (ADR) ........................... 1,800 125,325
------------
CHILE--0.9%
Compania de Telefonos Chile (ADR) ...... 1,100 107,938
------------
FINLAND--2.6%
Nokia Corp. (ADR) ...................... 8,500 314,500
------------
HONG KONG--0.8%
Consolidated Electric Power Asia (ADR) . 58,800 97,230
------------
KOREA--1.1%
Korea Electric Power Corp. (ADR) ....... 4,020 138,757
------------
MEXICO--1.7%
Telefonos de Mexico S.A.,
Series L (ADR) ....................... 6,200 207,700
------------
Total Foreign Investments
(cost $1,046,105) .................... 991,450
------------
Total Common Stocks
(cost $10,137,297) ................... 10,504,752
------------
54
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
UTILITY INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONT'D)
- ------------------------------------------------------------------------------
Principal
Amount
(000) U.S. $ Value
--------- ------------
SHORT-TERM INVESTMENTS--13.1%
COMMERCIAL PAPER--13.1%
General Electric Capital Corp.
5.37%, 7/03/96 ....................... $ 1,200 $ 1,199,642
Merrill Lynch & Co.
5.35%, 7/02/96 ....................... 400 399,941
------------
Total Short-Term Investments
(amortized cost $1,599,583) .......... 1,599,583
------------
TOTAL INVESTMENTS--98.8%
(cost $11,736,880) ................... $ 12,104,335
Other assets less liabilities--1.2% .... 146,859
------------
NET ASSETS--100.0% ..................... $ 12,251,194
============
- ------------------------------------------------------------------------------
* Non-income producing security.
See Glossary of Terms on page 71.
See Notes to Financial Statements.
55
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996 (UNAUDITED)
- ------------------------------------------------------------------------------
Shares U.S. $ Value
------ ------------
COMMON STOCKS--95.3%
BASIC INDUSTRIES--1.9%
CHEMICALS--0.9%
Grace (W.R.) & Co. ..................... 5,000 $ 354,375
Great Lakes Chemical Corp. ............. 6,900 429,525
------------
783,900
------------
MINING & METALS--0.7%
Century Aluminum Co.* .................. 40,000 627,500
------------
PAPER & FOREST
PRODUCTS--0.3%
Louisiana-Pacific Corp. ................ 14,000 309,750
------------
1,721,150
------------
CAPITAL GOODS--1.3%
MACHINERY--0.6%
Mannesmann AG (ADR) .................... 1,600 552,906
------------
POLLUTION CONTROL--0.7%
WMX Technologies, Inc. ................. 20,000 655,000
------------
1,207,906
------------
CONSUMER
MANUFACTURING--1.0%
AUTO & RELATED--1.0%
AutoZone, Inc.* ........................ 27,000 938,250
------------
CONSUMER SERVICES--18.9%
BROADCASTING &
CABLE--7.9%
AirTouch Communications, Inc.* ......... 14,900 420,925
Argyle Television, Inc.* ............... 62,000 1,534,500
Comcast Corp. Cl.A ..................... 17,000 312,375
Cox Communications, Inc.* .............. 35,000 756,875
Liberty Media Group Cl.A* .............. 11,325 300,820
TCI Group Series A* .................... 146,300 2,642,544
Turner Broadcasting Systems, Inc. Cl.B . 26,000 715,000
U.S. West Media Group* ................. 24,000 438,000
------------
7,121,039
------------
BUSINESS SERVICES--1.2%
CUC International, Inc.* ............... 30,000 1,065,000
------------
ENTERTAINMENT &
LEISURE--2.3%
ITT Corp.* ............................. 27,400 1,815,250
Walt Disney Co. ........................ 5,000 314,375
------------
2,129,625
------------
RETAILING--7.5%
Aviation Sales Co.* .................... 23,000 $ 471,500
Hasbro, Inc. ........................... 10,000 357,500
Home Depot, Inc. ....................... 25,000 1,350,000
Lowes Cos., Inc. ....................... 40,100 1,448,613
Sears, Roebuck & Co. ................... 24,000 1,167,000
Wal-Mart Stores, Inc. .................. 80,000 2,030,000
------------
6,824,613
------------
17,140,277
------------
CONSUMER STAPLES--9.0%
FOOD--1.4%
Coca-Cola Femsa S.A. (ADR) ............. 40,000 1,145,000
PepsiCo, Inc. .......................... 1,600 56,600
------------
1,201,600
------------
TOBACCO--7.6%
Loews Corp. ............................ 31,800 2,508,225
Philip Morris Cos., Inc. ............... 33,000 3,432,000
RJR Nabisco Holdings Corp. ............. 31,000 961,000
------------
6,901,225
------------
8,102,825
------------
ENERGY--2.8%
OIL & GAS SERVICES--2.8%
Belco Oil & Gas Corp.* ................. 20,200 717,100
Gulf Canada Resources Ltd.* ............ 359,000 1,839,875
------------
2,556,975
------------
FINANCE--19.7%
BANKING & CREDIT--3.5%
Chase Manhattan Corp. .................. 17,320 1,223,225
Corestates Financial Corp. ............. 8,000 308,000
First Union Corp. ...................... 16,000 974,000
MBNA Corp. ............................. 10,000 285,000
Union Acceptance Corp.* ............... 24,700 373,587
------------
3,163,812
------------
INSURANCE--9.2%
Acceptance Insurance Co.* .............. 73,000 1,250,125
American International Group, Inc. ..... 27,350 2,697,394
PMI Group, Inc. ........................ 19,400 824,500
Progressive Corp. ...................... 22,500 1,040,625
Travelers Group, Inc. .................. 45,750 2,087,344
Travelers/Aetna Property Casualty Corp. 15,500 439,812
------------
8,339,800
------------
MORTGAGE BANKING--0.6%
Federal National Mortgage Assn ......... 16,000 536,000
------------
56
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONT'D)
- ------------------------------------------------------------------------------
Shares U.S. $ Value
------ ------------
REAL ESTATE--4.5%
Castle & Cooke, Inc.* .................. 100,000 $ 1,600,000
Essex Property Trust ................... 10,500 225,750
JP Realty, Inc. ........................ 38,000 812,250
Macerich Co. ........................... 37,500 787,500
Patriot American Hospitality, Inc. ..... 17,000 503,625
Storage USA, Inc. ...................... 6,000 193,500
------------
4,122,625
------------
OTHER--1.9%
Mercury Finance Co. .................... 133,500 1,702,125
------------
17,864,362
------------
HEALTH CARE--5.2%
BIOTECHNOLOGY--0.1%
Gensia, Inc. (a) ....................... 8,000 109,848
------------
DRUGS--3.1%
Amgen, Inc.* ........................... 9,000 484,875
Biogen, Inc.* .......................... 10,000 546,875
Merck & Co., Inc. ...................... 17,700 1,143,862
Pfizer, Inc. ........................... 9,500 678,063
------------
2,853,675
------------
MEDICAL PRODUCTS--0.4%
Baxter International, Inc. ............. 5,000 236,250
Boston Scientific Corp.* ............... 2,100 94,500
------------
330,750
------------
MEDICAL SERVICES--1.6%
Healthsource, Inc.* .................... 20,000 350,000
Medtronic, Inc. ........................ 9,800 548,800
Quest Medical, Inc.* ................... 38,000 273,125
United Healthcare Corp. ................ 5,000 252,500
------------
1,424,425
------------
4,718,698
------------
TECHNOLOGY--30.3%
COMMUNICATIONS
EQUIPMENT--5.3%
Asia Satellite Telecom Holdings Ltd. ... 25,000 743,750
EMC Corp.* ............................. 38,000 707,750
Loral Space & Communications* .......... 52,000 708,500
Millicom International Cellular S.A.* .. 13,500 638,719
Newbridge Networks Corp.* .............. 20,000 1,310,000
Teleport Communications Group, Inc. .... 37,600 714,400
------------
4,823,119
------------
COMPUTER HARDWARE--3.1%
Compaq Computer Corp.* ................. 14,000 689,500
Dell Computer Corp.* ................... 23,500 1,194,094
Digital Equipment Corp.* ............... 4,300 $ 193,500
Texas Instruments, Inc. ................ 15,500 773,062
------------
2,850,156
------------
COMPUTER PERIPHERALS--0.5%
Seagate Technology, Inc.* .............. 11,000 495,000
------------
COMPUTER SOFTWARE &
SERVICES--10.9%
Cabletron Systems, Inc.* ............... 7,000 480,375
Ceridian Corp.* ........................ 12,000 606,000
Electronic Data Systems Corp.* ......... 24,000 1,290,000
Informix Corp.* ........................ 65,000 1,458,437
Microsoft Corp.* ....................... 7,000 840,438
Oracle Corp. ........................... 45,300 1,786,519
Sterling Software, Inc.* ............... 36,100 2,779,700
UUNET Technologies, Inc. ............... 9,400 621,575
------------
9,863,044
------------
NETWORK SOFTWARE--7.2%
3Com Corp.* ............................ 41,700 1,905,169
Cisco Systems, Inc.* ................... 81,000 4,591,687
------------
6,496,856
------------
OFFICE EQUIPMENT &
SERVICES--0.4%
Xerox Corp. ............................ 6,900 369,150
------------
SEMI-CONDUCTORS &
RELATED--2.9%
Altera Corp.* .......................... 10,000 379,375
Intel Corp. ............................ 18,500 1,358,594
National Semiconductor Corp.* .......... 55,400 858,700
------------
2,596,669
------------
27,493,994
------------
TRANSPORTATION--2.4%
RAILROADS--2.4%
Southern Pacific Rail Corp.* ........... 42,400 1,060,000
Tranz Rail Holdings Ltd. ............... 12,400 173,600
Union Pacific Corp. .................... 13,200 922,350
------------
2,155,950
------------
UTILITIES--2.8%
TELEPHONE--2.8%
AT & T Corp. ........................... 5,000 310,000
Telephone & Data Systems, Inc. ......... 42,900 1,930,500
U.S. Cellular Corp.* ................... 8,000 248,000
------------
2,488,500
------------
Total Common Stocks
(cost $78,288,355) ................... 86,388,887
------------
57
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONT'D)
- ------------------------------------------------------------------------------
Principal
Amount
(000) U.S. $ Value
--------- ------------
CONVERTIBLE BONDS--1.0%
3Com Corp. .............................
10.25%, 11/01/01 (a) ................. $ 400 $ 619,000
Altera Corp.
5.75%, 6/15/02 (a) ................... 335 335,838
------------
Total Convertible Bonds
(cost $985,802) ...................... 954,838
------------
SHORT-TERM INVESTMENTS--3.6%
U.S. GOVERNMENT
OBLIGATIONS--3.6%
Federal Home Loan Bank
5.20%, 7/01/96
(amortized cost $3,300,000) .......... 3,300 3,300,000
------------
TOTAL INVESTMENTS--99.9%
(cost $82,574,157) ................... $ 90,643,725
Other assets less liabilities--0.1% .... 46,397
------------
NET ASSETS--100.0% ..................... $ 90,690,122
============
- ------------------------------------------------------------------------------
* Non-income producing security.
(a) Securities exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration normally applied to certain qualified buyers. At June 30,
1996, the aggregate market value of these securities amounted to $1,064,686
or 1.2% of net assets.
See Glossary of Terms on page 71.
See Notes to Financial Statements.
58
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
WORLDWIDE PRIVATIZATION PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996 (UNAUDITED)
- ------------------------------------------------------------------------------
Shares U.S. $ Value
------ ------------
COMMON STOCKS--85.8%
ARGENTINA--1.9%
Central Costanera ...................... 15,000 $ 55,222
Dycasa Dragados S.A .................... 10,000 46,519
Metrogas A.S. (ADR) .................... 3,000 31,875
Telecom Argentina Stet France (ADR) .... 2,000 94,750
------------
228,366
------------
AUSTRALIA--3.1%
CSL Ltd. ............................... 40,000 168,173
Qantas Airways Ltd. .................... 25,000 42,240
TAB Corp. Holdings Ltd. ................ 35,000 158,153
------------
368,566
------------
AUSTRIA--4.5%
Austria Mikro Systeme
International AG ..................... 960 89,682
Bohler Uddeholm ........................ 1,700 131,814
Flughafen Wien AG ...................... 1,300 89,322
V.A. Stahl AG .......................... 1,500 50,726
V.A. Technologies AG ................... 1,450 177,720
------------
539,264
------------
BRAZIL--4.7%
Celgon Centrais Eletricas Goias
S.A. Series B pfd.* .................. 1,205,000 48,250
Centrais Eletricas Brasileras
pfd. (ADR) ........................... 4,000 58,164
Companhia Energetica De Sao
(ADR)* ............................... 5,000 50,000
Light Servicos de Eletricid S.A ........ 500,000 133,937
Telecomunicacoes Brasileras
S.A. (ADR) ........................... 1,900 135,869
Usinas Siderurgicas de Minas
pfd. (ADR) (a) ....................... 6,000 65,135
Vale Rio Doce Cia ...................... 3,360 65,079
------------
556,434
------------
CANADA--2.9%
Alberta Energy Ltd. .................... 5,000 93,386
Canadian National Railway Co. .......... 7,000 128,625
Petro Canada* .......................... 10,000 123,416
------------
345,427
------------
CZECHOSLOVAKIA--1.2%
CEZ* ................................... 1,500 59,699
CEZ (GDR)* ............................. 1,000 39,799
Komercni Banka A.S ..................... 1,500 40,500
------------
139,998
------------
DENMARK--0.3%
Kobenhavn Lufthave ..................... 300 $ 29,700
------------
FINLAND--2.6%
Finnair ................................ 12,000 82,391
Merita Ltd. Series A* .................. 15,000 31,415
OY Tamro AB ............................ 10,000 60,022
Valmet Co. ............................. 8,000 135,590
------------
309,418
------------
FRANCE--5.6%
Assur General de France ................ 1,750 47,428
Renault S.A ............................ 2,000 51,520
Roussel Uclaf .......................... 1,150 276,120
Sgs Thomson Micro Ltd.* ............... 2,000 70,379
Soc Elf Aquitaine S.A .................. 1,500 110,409
Usinor Sacilor ......................... 8,000 115,483
------------
671,339
------------
GERMANY--4.5%
Bangesellschaft Berlin AG .............. 250 53,190
Lufthansa AG ........................... 2,400 339,362
Viag AG ................................ 57 22,005
Viag AG (VAR) .......................... 300 119,763
------------
534,320
------------
GHANA--0.8%
Ashanti Goldfields Co. Ltd. (GDR)* ..... 5,000 98,750
------------
GREECE--0.9%
Hellenic Sugar Industries .............. 6,000 56,376
O.T.E. ................................. 3,000 49,765
------------
106,141
------------
HONG KONG--0.9%
Consolidated Electric Power Asia Ltd. .. 35,000 57,875
Guangshen Railway Co. Ltd. (ADR)* ...... 2,500 47,813
------------
105,688
------------
HUNGARY--2.8%
Mol Magyar Olaj Es Gazipari
Right (GDR)(a) ....................... 9,000 97,200
OTP Bank* .............................. 12,000 185,400
Zalakeramia ............................ 1,300 53,252
------------
335,852
------------
INDIA--0.5%
Steel Authority India (GDR)* ........... 4,000 57,000
------------
59
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
WORLDWIDE PRIVATIZATION PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONT'D)
- ------------------------------------------------------------------------------
Shares U.S. $ Value
------ ------------
INDONESIA--2.1%
Indosat ................................ 50,000 $ 168,099
PT Telekomunikasi Indonesia (ADR)* ..... 1,500 44,625
Tambang Timah (GDR) .................... 2,000 36,300
------------
249,024
------------
IRELAND--1.5%
Greencore Group ........................ 15,000 78,784
Irish Life Plc (Dublin Listing) ........ 25,458 101,198
------------
179,982
------------
ISRAEL--0.9%
Bank Hapoalim B.M.* .................... 38,000 55,757
Tadiran Ltd. (ADR) ..................... 2,000 54,000
------------
109,757
------------
ITALY--4.7%
Ente Nazionale Idrocarburi S.p.A ....... 45,000 224,670
IMI LNV ................................ 10,000 83,592
INA .................................... 70,000 104,457
Telecom Italia Mobile di Risp .......... 50,000 86,367
Telecom Italia Mobile di Risp S.p.A .... 40,000 54,596
------------
553,682
------------
JAPAN--4.0%
DDI Corp. .............................. 5 43,707
East Japan Railway Co. ................. 60 315,457
Japan Tobacco, Inc. .................... 15 115,211
------------
474,375
------------
KOREA--3.0%
Korea Electric Power Corp. (ADR) ....... 4,000 97,000
Korea Mobile Telecommunications
Corp. (ADR)* (a) ..................... 15,300 262,012
------------
359,012
------------
MALAYSIA--1.0%
Petronas Gas Bhd* ...................... 10,000 42,895
Telekom Malaysia ....................... 9,000 80,096
------------
122,991
------------
MEXICO--0.8%
Grupo Financiero Banorte* .............. 50,000 48,121
Telefonos de Mexico S.A.
Series L (ADR) ....................... 1,500 50,250
------------
98,371
------------
NETHERLANDS--2.9%
European Vinyls Corp.
International N.V .................... 1,850 57,490
KLM .................................... 4,048 129,593
Kon Ptt Nederland ...................... 4,031 152,684
------------
339,767
------------
NEW ZEALAND--2.0%
Telecom Corp. of New Zealand Ltd. ...... 18,000 $ 75,789
Tranz Rail Holdings* ................... 15,000 70,382
Trustpower Ltd. ........................ 70,000 89,577
------------
235,748
------------
NORWAY--0.8%
Christiania Bank OG Kreditkasse ........ 20,000 47,156
Den Norske Bank ........................ 15,000 45,538
------------
92,694
------------
PAKISTAN--0.9%
Hub Power Co. (GDR)* ................... 2,000 48,000
Pakistan Telecom C (GDR)* .............. 500 58,500
------------
106,500
------------
PERU--1.6%
Cementos Norte Pacasmay ................ 20,000 33,811
Minas Buenaventura ..................... 7,616 68,585
Telefonica de Peru S.A. ................ 42,000 85,272
------------
187,668
------------
PHILIPPINES--2.4%
First Philippines Holdings ............. 39,000 95,267
International Container Terminal Svc.* . 50,000 33,874
Manila Electric Co. .................... 15,000 157,443
------------
286,584
------------
POLAND--2.2%
Bank Rozwoju Eksportu S.A .............. 2,000 52,262
Banka Przenyslowo Handlowy ............. 2,000 144,271
Elektrim S.A ........................... 8,000 65,658
------------
262,191
------------
PORTUGAL--0.3%
Portugal Telecom S.A. .................. 1,500 39,230
------------
SINGAPORE--0.3%
Singapore Airlines Ltd. ................ 3,000 31,680
------------
SOUTH AFRICA--0.5%
Iscor Ltd. ............................. 71,621 57,356
------------
SPAIN--2.4%
Argentaria S.A. ........................ 1,000 43,670
Emp Nac Electricid ..................... 2,000 124,839
Repsol S.A. ............................ 3,200 111,371
------------
279,880
------------
60
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
WORLDWIDE PRIVATIZATION PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONT'D)
- ------------------------------------------------------------------------------
Shares U.S. $ Value
------ ------------
SWEDEN--0.6%
Stadshypotek AB ........................ 3,000 $ 67,068
------------
THAILAND--1.6%
Electricity Generating Pub. of
Thailand* ............................ 10,000 34,863
Industrial Finance of Thailand ......... 35,000 157,180
------------
192,043
------------
TURKEY--1.8%
Eregli Demir Celik ..................... 500,000 55,407
Petkim ................................. 75,000 35,618
Tupras Turkiye Petrol* ................. 150,000 28,312
Turk Hava Yollari* ..................... 231,818 63,516
Usas Ucak Servisi AS ................... 25,000 36,532
------------
219,385
------------
UNITED KINGDOM--7.1%
Anglian Water Plc ...................... 10,000 92,017
East Midlands Electricity .............. 3,000 24,414
London Electricity ..................... 4,428 43,015
National Grid Group .................... 63,411 167,908
National Power Plc ..................... 8,000 64,606
Northern Ireland Electricity Plc ....... 10,000 65,150
Powergen ............................... 9,073 66,085
RJB Mining Plc ......................... 3,000 25,765
Shares or
Principal
Amount
(000) U.S. $ Value
--------- ------------
Scottish Hydro ......................... 14,000 $ 64,358
Scottish Power ......................... 10,000 47,212
Stagecoach Holdings Plc. ............... 12,478 83,910
Wessex Water Plc ....................... 17,333 96,369
------------
840,809
------------
UNITED STATES--3.2%
Central European Media
Enterprises Ltd.* .................... 1,000 24,500
Pharmacia & Upjohn, Inc. ............... 8,000 355,000
------------
379,500
------------
Total Common Stocks
(cost $9,402,460) .................... 10,191,560
------------
SHORT-TERM INVESTMENTS--15.4%
TIME DEPOSIT--15.4%
State Street Bank and Trust Co.
5.00%, 7/01/96
(amortized cost $1,833,000) .......... $ 1,833 1,833,000
------------
TOTAL INVESTMENTS--101.2%
(cost $11,235,460) ................... 12,024,560
Other assets less liabilities--(1.2%) .. (138,929)
------------
NET ASSETS--100.0% ..................... $ 11,885,631
============
- ------------------------------------------------------------------------------
* Non-income producing security.
(a) Securities exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration normally applied to certain qualified buyers. At June 30,
1996, the aggregate market value of these securities amounted to $424,347
or 3.6% of net assets.
See Glossary of Terms on page 71.
See Notes to Financial Statements.
61
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
CONSERVATIVE INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996 (UNAUDITED)
- ------------------------------------------------------------------------------
Shares U.S. $ Value
------ ------------
COMMON STOCKS AND
OTHER INVESTMENTS--30.7%
BASIC INDUSTRIES--1.7%
CHEMICALS--1.5%
AKZO Nobel N.V. (a) .................... 300 $ 35,972
Bayer AG (b) ........................... 700 24,745
Ciba Geigy AG (c) ...................... 20 24,396
Cytec Industries, Inc.* ............... 250 21,375
Freeport McMoran, Inc. ................. 900 31,950
Hercules, Inc. ......................... 300 16,575
IMC Global ............................. 200 7,525
Monsanto Co. ........................... 1,850 60,125
Olin Corp. ............................. 400 35,700
------------
258,363
------------
CONTAINERS--0.1%
Crown Cork & Seal, Inc. ................ 400 18,000
------------
METALS & MINING--0.1%
Aluminum Co. of America ................ 300 17,213
------------
PAPER & FOREST
PRODUCTS--0.0%
Louisiana-Pacific Corp. ................ 200 4,425
------------
298,001
------------
CAPITAL GOODS--2.8%
ELECTRICAL EQUIPMENT--1.2%
General Electric Co. ................... 1,200 103,800
Hitachi Ltd. (d) ....................... 5,000 46,633
Matsushita Electrical Industrial
Co., Ltd. (d) ........................ 3,000 55,959
------------
206,392
------------
ENGINEERING &
CONSTRUCTION--0.3%
American Standard Cos., Inc.* .......... 800 26,400
Bouygues (e) ........................... 250 27,899
Martin Marietta Materials, Inc. ........ 200 4,850
------------
59,149
------------
MACHINERY--0.7%
Allied-Signal, Inc. .................... 1,200 68,550
Cincinnati Milacron, Inc. .............. 1,000 24,000
Coltec Industries, Inc.* ............... 600 8,550
Deere & Co. ............................ 400 16,000
------------
117,100
------------
POLLUTION CONTROL--0.6%
USA Waste Services, Inc.* .............. 1,500 44,438
WMX Technologies, Inc. ................. 1,500 49,125
------------
93,563
------------
476,204
------------
CONSUMER
MANUFACTURING--1.1%
AUTO & RELATED--1.1%
AutoZone, Inc.* ........................ 2,000 $ 69,500
Goodyear Tire & Rubber Co. ............. 700 33,775
Magna International, Inc. (f) .......... 720 33,120
Toyota Corp. (d) ....................... 2,000 50,108
------------
186,503
------------
CONSUMER SERVICES--3.9%
AIRLINES--0.3%
Delta Air Lines, Inc. .................. 250 20,750
Northwest Airlines Corp. Cl.A* ......... 700 27,606
------------
48,356
------------
APPAREL--0.1%
Cone Mills Corp.* ...................... 1,500 16,875
------------
BROADCASTING &
CABLE--0.8%
AirTouch Communications, Inc.* ......... 700 19,775
Cablevision Systems Corp. Cl.A* ........ 700 32,375
Societe Television Francaise (e) ....... 180 20,577
TCI Group Series A* .................... 1,100 19,869
Viacom, Inc. Cl.B* ..................... 1,005 39,069
------------
131,665
------------
ENTERTAINMENT &
LEISURE--0.8%
ITT Corp.* ............................. 800 53,000
Resorts World Bhd (g) .................. 3,000 17,198
Walt Disney Co. ........................ 1,170 73,564
------------
143,762
------------
PRINTING & PUBLISHING--0.2%
New York Times Co. Cl. A ............... 1,300 42,412
------------
RESTAURANTS &
LODGING--0.5%
Host Marriott Corp.* ................... 1,800 23,625
McDonald's Corp. ....................... 1,345 62,879
------------
86,504
------------
RETAILING--1.2%
CompUSA, Inc.* ......................... 1,350 46,069
Federated Department Stores, Inc.* ..... 1,700 58,012
Fingerhut Cos., Inc. ................... 1,400 21,875
Hasbro, Inc. ........................... 600 21,450
Hornbach Holding AG (b) ............... 100 8,616
Lowes Cos., Inc. ....................... 230 8,309
Payless Cashways, Inc.* ............... 3,000 13,500
Sears Plc (h) .......................... 8,000 12,300
62
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
CONSERVATIVE INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONT'D)
- ------------------------------------------------------------------------------
Shares U.S. $ Value
------ ------------
Thrifty Payless Holdings Inc.* ......... 500 $ 8,625
------------
198,756
------------
668,330
------------
CONSUMER STAPLES--3.4%
BEVERAGES--0.5%
Cadbury Schweppes Plc (h) .............. 2,000 15,810
Grand Metropolitan Plc (h) ............. 3,500 23,210
Kirin Brewery Co. Ltd. (d) ............. 3,000 36,757
------------
75,777
------------
COSMETICS--0.3%
Gillette Co. ........................... 850 53,019
------------
FOOD--0.4%
Nabisco Holdings Corp. Cl. A ........... 1,025 36,259
Nestle S.A. (c) ........................ 26 29,719
------------
65,978
------------
HOUSEHOLD PRODUCTS--0.9%
Black & Decker Corp. ................... 1,700 65,663
Colgate-Palmolive Co. .................. 790 66,952
First Brands Corp. ..................... 750 20,250
------------
152,865
------------
TOBACCO--1.3%
B.A.T. Industries Plc (h) .............. 3,000 23,342
Loews Corp. ............................ 200 15,775
Philip Morris Cos., Inc. ............... 1,790 186,160
------------
225,277
------------
572,916
------------
ENERGY--2.2%
DOMESTIC INTEGRATED--1.3%
Exxon Corp. ............................ 1,600 139,000
Mobil Corp. ............................ 800 89,700
------------
228,700
------------
OIL & GAS SERVICES--0.9%
BJ Services Co.* ....................... 1,000 35,125
Enron Oil & Gas Co. .................... 1,400 39,025
Louisiana Land & Exploration Co. ....... 200 11,525
Schlumberger Ltd. (a) .................. 400 33,700
Total S.A. Cl.B (e) .................... 400 29,691
------------
149,066
------------
377,766
------------
FINANCE--5.0%
BANKING & CREDIT--1.4%
Chase Manhattan Corp. .................. 500 35,313
Deutsche Bank AG (b) ................... 600 28,412
First Union Corp. ...................... 1,300 79,137
MBNA Corp. ............................. 2,300 65,550
Sakura Bank Ltd. (d) ................... 3,000 $ 33,466
------------
241,878
------------
BROKERAGE & MONEY
MANAGEMENT--0.4%
Merrill Lynch & Co., Inc. .............. 800 52,100
Nomura Securities Co. Ltd. (d) ......... 1,000 19,568
------------
71,668
------------
INSURANCE--2.1%
Aetna Life & Casualty Co. .............. 250 17,875
AFLAC, Inc. ............................ 150 4,481
American International Group, Inc. ..... 400 39,450
General Reinsurance Corp. .............. 200 30,450
Internationale Nederlanden
Groep N.V.(a)* ....................... 962 28,711
MGIC Investment Corp. .................. 550 30,869
PMI Group, Inc. ........................ 800 34,000
TIG Holdings, Inc. ..................... 1,000 29,000
Tokio Marine and Fire Co. (d) .......... 3,000 40,049
Transatlantic Holdings, Inc. ........... 200 14,025
Travelers Group, Inc. .................. 2,100 95,812
------------
364,722
------------
MORTGAGE BANKING--0.5%
Federal National Mortgage Association .. 2,300 77,050
------------
REAL ESTATE--0.2%
Daito Trust Construction (d) ........... 2,000 29,991
------------
OTHER--0.4%
Associates First Capital Corp.* ........ 1,000 37,625
Dean Witter, Discover & Co. ............ 600 34,350
------------
71,975
------------
857,284
------------
HEALTH CARE--3.1%
BIOTECHNOLOGY--0.2%
Centocor, Inc.* ........................ 900 26,944
------------
DRUGS--1.7%
Amgen, Inc.* ........................... 900 48,488
Biogen, Inc.* .......................... 570 31,172
Glaxo Wellcome Plc (h) ................. 1,000 13,465
Merck & Co., Inc. ...................... 1,100 71,087
Pfizer, Inc. ........................... 700 49,963
Smithkline Beecham Plc (h) ............. 1,030 11,013
Warner-Lambert Co. ..................... 400 22,000
Yamanouchi Pharmaceutical (d) .......... 2,000 43,524
------------
290,712
------------
MEDICAL PRODUCTS--0.3%
Baxter International, Inc. ............. 1,250 59,062
------------
63
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
CONSERVATIVE INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONT'D)
- ------------------------------------------------------------------------------
Shares U.S. $ Value
------ ------------
MEDICAL SERVICES--0.9%
Columbia/HCA Healthcare Corp. .......... 600 $ 32,025
Steris Corp.* .......................... 868 27,722
United Healthcare, Corp. ............... 1,100 55,550
Value Health, Inc.* .................... 1,500 35,437
------------
150,734
------------
527,452
------------
MULTI INDUSTRY--1.1%
Berjaya Sports Toto Bhd (g) ............ 4,000 13,229
BTR Plc (h) ............................ 3,598 14,137
Canadian Pacific Ltd. .................. 700 15,400
Compagnie Generale des Eaux (e) ........ 300 33,537
Swire Pacific Ltd. Cl.A (i) ............ 3,000 25,676
Tyco International Ltd. ................ 200 8,150
U.S. Industries, Inc.* ................. 2,200 53,075
Whitman Corp. .......................... 1,300 31,362
------------
194,566
------------
TECHNOLOGY--4.6%
AEROSPACE & DEFENSE--0.3%
Boeing Co. ............................. 500 43,563
------------
COMMUNICATIONS
EQUIPMENT--0.7%
DSC Communications Corp.* .............. 750 22,547
Motorola, Inc. ......................... 350 22,006
Nokia Corp. (ADR) ...................... 1,000 37,000
Scientific-Atlanta, Inc. ............... 1,500 23,250
Vanguard Cellular Systems, Inc.* ....... 1,000 21,938
------------
126,741
------------
COMPUTER HARDWARE--0.4%
Digital Equipment Corp.* ............... 300 13,500
EMC Corp.* ............................. 800 14,900
Hewlett-Packard Co. .................... 400 39,850
------------
68,250
------------
COMPUTER PERIPHERALS--0.1%
Seagate Technology, Inc.* .............. 300 13,500
------------
COMPUTER SOFTWARE &
SERVICES--1.8%
Ceridian Corp.* ........................ 1,000 50,500
Electronic Data Systems Corp.* ......... 750 40,312
First Data Corp. ....................... 500 39,812
General Motors Corp. Cl.H .............. 100 6,013
Informix Corp.* ........................ 2,800 62,825
Intergraph Corp.* ...................... 1,500 18,375
Oracle Corp.* .......................... 1,712 67,517
Softkey International Inc.* ............ 500 9,500
Sterling Software, Inc.* ............... 300 23,100
------------
317,954
------------
NETWORK SOFTWARE--0.6%
3Com Corp.* ............................ 1,000 $ 45,687
Bay Networks, Inc.* .................... 400 10,300
Cisco Systems, Inc.* ................... 900 51,019
------------
107,006
------------
OFFICE EQUIPMENT &
SERVICES--0.4%
Canon, Inc. (d) ........................ 3,000 62,543
------------
SEMI-CONDUCTORS &
RELATED--0.3%
Altera Corp.* .......................... 800 30,350
Intel Corp. ............................ 300 22,031
------------
52,381
------------
791,938
------------
TRANSPORTATION--0.6%
RAILROADS--0.4%
Burlington Northern Santa Fe ........... 300 24,263
Union Pacific Corp. .................... 500 34,937
------------
59,200
------------
TRUCKING--0.2%
Xtra Corp. ............................. 900 39,825
------------
99,025
------------
UTILITIES--1.2%
ELECTRIC & GAS--0.2%
Hong Kong and China Gas Co. Ltd. (i) ... 6,000 9,572
warrants, expiring 9/30/97* (i) ...... 500 131
Veba AG (b) ............................ 600 31,912
------------
41,615
------------
TELEPHONE--1.0%
Asia Satellite Telecom Ltd.* (i) ....... 5,500 16,306
AT & T Corp. ........................... 850 52,700
British Telecommunications Plc (h) ..... 3,000 16,121
Korea Mobile Telecommunications
Corp. (ADR)* (j)(k) .................. 900 15,412
MCI Communications Corp. ............... 300 7,669
Mobilemedia Corp.* ..................... 475 5,700
Telecom Corp. of New Zealand Ltd. (l) .. 5,000 21,053
Telephone & Data Systems, Inc. ......... 700 31,500
------------
166,461
------------
208,076
------------
Total Common Stocks and
Other Investments
(cost $5,132,881) .................... 5,258,061
------------
64
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
CONSERVATIVE INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONT'D)
- ------------------------------------------------------------------------------
Principal
Amount
(000) U.S. $ Value
--------- ------------
CORPORATE BONDS--10.0%
Auburn Hills Trust
12.00%, 5/01/20 ...................... $ 250 $ 361,100
Bear Stearns Cos., Inc.
6.75%, 5/01/01 ....................... 200 197,926
Chase Manhattan Corp.
6.25%, 1/15/06 ....................... 200 184,486
Ford Motor Credit Co.
6.125%, 1/09/06 ...................... 200 182,820
John Hancock Mutual Life
Insurance Co.
7.375%, 2/15/24 ...................... 300 278,319
St. George Bank, Ltd.
7.15%, 10/15/05 (j) .................. 225 217,611
Time Warner, Inc.
8.375%, 3/15/23 ...................... 300 292,086
------------
Total Corporate Bonds
(cost $1,739,360) .................... 1,714,348
------------
U.S. GOVERNMENT
OBLIGATIONS--40.8%
Federal National Mortgage Assn.
6.00%, 4/01/11 ....................... 499 471,549
7.00%, 5/01/26 ....................... 621 597,196
Government National Mortgage Assn.
7.50%, 1/15/26 ....................... 241 237,938
U.S. Treasury Bond
7.625%, 2/15/25 ...................... 525 565,688
U.S. Treasury Notes
5.75%, 10/31/00 ...................... $ 1,440 $ 1,402,646
5.75%, 8/15/03 ....................... 850 809,489
5.875%, 8/15/98 ...................... 1,270 1,262,266
6.50%, 8/15/05 ....................... 525 517,451
7.75%, 12/31/99 ...................... 1,090 1,135,638
------------
Total U.S. Government Obligations
(cost $6,991,504) .................... 6,999,861
------------
SHORT-TERM INVESTMENTS--19.8%
U.S. GOVERNMENT
OBLIGATIONS--19.8%
Federal Farm Credit Bank
5.29%, 7/01/96 ....................... 1,100 1,100,000
Federal Home Loan Bank
5.20%, 7/01/96 ....................... 1,200 1,200,000
Federal Home Loan Mortgage
5.28%, 7/18/96 ....................... 1,100 1,097,257
------------
Total Short-Term Investments
(amortized cost $3,397,257) .......... 3,397,257
------------
TOTAL INVESTMENTS--101.3%
(cost $17,261,002) ................... 17,369,527
Other assets less liabilities--(1.3%) .. (218,290)
------------
NET ASSETS--100.0% ..................... $ 17,151,237
============
- ------------------------------------------------------------------------------
* Non-income producing security.
(a) Dutch holding.
(b) German holding
(c) Swiss holding.
(d) Japanese holding.
(e) French holding.
(f) Canadian holding.
(g) Malaysian holding.
(h) United Kingdom holding.
(i) Hong Kong holding.
(j) Securities exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration normally applied to certain qualified buyers. At June 30,
1996, the aggregate market value of these securities amounted to $233,023
or 1.4% of net assets.
(k) Korean holding.
(l) New Zealand holding.
See Glossary of Terms on page 71.
See Notes to Financial Statements.
65
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996 (UNAUDITED)
- ------------------------------------------------------------------------------
Shares U.S. $ Value
------ ------------
COMMON STOCKS AND
OTHER INVESTMENTS--67.0%
BASIC INDUSTRIES--5.6%
CHEMICALS--4.7%
AKZO Nobel N.V. (a) ................... 330 $ 39,569
Bayer AG (b) ........................... 1,100 38,885
Ciba Geigy AG (c) ...................... 10 12,198
Cytec Industries, Inc.* ............... 350 29,925
Freeport McMoran, Inc. ................. 1,500 53,250
Hercules, Inc. ......................... 1,000 55,250
IMC Global ............................. 900 33,863
Monsanto Co. ........................... 3,050 99,125
Olin Corp. ............................. 900 80,325
------------
442,390
------------
CONTAINERS--0.2%
Crown Cork & Seal, Inc. ................ 400 18,000
------------
METALS & MINING--0.6%
Aluminum Co. of America ................ 400 22,950
United Dominion Industries Ltd. ........ 1,500 34,500
------------
57,450
------------
PAPER & FOREST
PRODUCTS--0.1%
Louisiana-Pacific Corp.* ............... 500 11,062
------------
528,902
------------
CAPITAL GOODS--6.0%
ELECTRICAL EQUIPMENT--2.0%
General Electric Co. ................... 1,100 95,150
Hitachi Ltd. (d) ....................... 6,000 55,960
Matsushita Electrical Industrial
Co. Ltd. (d) ......................... 2,000 37,306
------------
188,416
------------
ENGINEERING &
CONSTRUCTION--1.0%
American Standard Cos., Inc.* .......... 1,600 52,800
Bouygues (e) ........................... 300 33,479
Martin Marietta Materials, Inc. ........ 500 12,125
------------
98,404
------------
MACHINERY--1.5%
Allied-Signal, Inc. .................... 1,000 57,125
Cincinnati Milacron, Inc. .............. 2,000 48,000
Coltec Industries, Inc.* ............... 2,000 28,500
Deere & Co. ............................ 300 12,000
------------
145,625
------------
POLLUTION CONTROL--1.5%
USA Waste Services, Inc.* .............. 1,300 38,512
WMX Technologies, Inc. ................. 3,000 98,250
------------
136,762
------------
569,207
------------
CONSUMER
MANUFACTURING--2.0%
AUTO & RELATED--2.0%
AutoZone, Inc.* ........................ 1,800 $ 62,550
Goodyear Tire & Rubber Co. ............. 480 23,160
Magna International, Inc. .............. 620 28,520
Toyota Corp. (d) ....................... 3,000 75,161
------------
189,391
------------
CONSUMER SERVICES--8.8%
AIRLINES--0.9%
Delta Air Lines, Inc. .................. 700 58,100
Northwest Airlines Corp. Cl.A* ......... 700 27,606
------------
85,706
------------
APPAREL--0.4%
Cone Mills Corp.* ...................... 3,000 33,750
------------
BROADCASTING &
CABLE--1.7%
AirTouch Communications, Inc.* ......... 725 20,481
Cablevision Systems Corp. Cl.A* ........ 1,250 57,813
Societe Television Francaise (e) ....... 300 34,295
TCI Group Series A* .................... 1,200 21,675
Viacom, Inc. Cl.B* ..................... 714 27,757
------------
162,021
------------
ENTERTAINMENT &
LEISURE--1.9%
ITT Corp.* ............................. 1,300 86,125
Resorts World Bhd (f) .................. 4,000 22,930
Walt Disney Co. ........................ 1,066 67,025
------------
176,080
------------
PRINTING & PUBLISHING--0.3%
New York Times Co. Cl.A ................ 1,000 32,625
------------
RESTAURANTS &
LODGING--1.1%
Host Marriott Corp.* ................... 3,300 43,312
McDonald's Corp. ....................... 1,260 58,905
------------
102,217
------------
RETAILING--2.5%
CompUSA, Inc.* ......................... 1,150 39,244
Federated Department Stores, Inc.* ..... 2,000 68,250
Fingerhut Cos., Inc. ................... 3,000 46,875
Hasbro, Inc. ........................... 400 14,300
Hornbach Holding AG (b) ............... 150 12,923
Lowes Cos., Inc. ....................... 140 5,058
Payless Cashways, Inc.* ............... 3,000 13,500
Sears Plc (h) .......................... 9,600 14,760
66
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONT'D)
- ------------------------------------------------------------------------------
Shares U.S. $ Value
------ ------------
Thrifty Payless Holdings, Inc.* ........ 1,000 $ 17,250
------------
232,160
------------
824,559
------------
CONSUMER STAPLES--6.7%
BEVERAGES--0.9%
Cadbury Schweppes Plc (h) .............. 2,500 19,762
Grand Metropolitan Plc (h) ............. 3,500 23,210
Kirin Brewery Co. Ltd. (d) ............. 3,000 36,758
------------
79,730
------------
COSMETICS--0.5%
Gillette Co. ........................... 740 46,157
------------
FOOD--0.8%
Nabisco Holdings Corp. Cl.A ............ 845 29,892
Nestle S.A. (c) ........................ 40 45,721
------------
75,613
------------
HOUSEHOLD PRODUCTS--1.8%
Black & Decker Corp. ................... 1,500 57,938
Colgate-Palmolive Co. .................. 695 58,901
First Brands Corp. ..................... 2,000 54,000
------------
170,839
------------
TOBACCO--2.7%
B.A.T. Industries Plc (h) ............. 3,200 24,898
Loews Corp. ............................ 500 39,438
Philip Morris Cos., Inc. ............... 1,850 192,400
------------
256,736
------------
629,075
------------
ENERGY--4.0%
DOMESTIC INTEGRATED--2.3%
Exxon Corp. ............................ 1,400 121,625
Mobil Corp. ............................ 800 89,700
------------
211,325
------------
OIL--1.7%
BJ Services Co.* ....................... 800 28,100
Enron Oil & Gas Co. .................... 1,200 33,450
Louisiana Land & Exploration Co. ....... 700 40,338
Schlumberger Ltd. (a) .................. 300 25,275
Total S.A. Cl.B (e) .................... 500 37,114
------------
164,277
------------
375,602
------------
FINANCE--10.6%
BANKING & CREDIT--2.6%
Chase Manhattan Corp. .................. 500 35,312
Deutsche Bank AG (b) ................... 800 37,882
First Union Corp. ...................... 1,000 60,875
MBNA Corp. ............................. 2,100 59,850
National Australia Bank Ltd. (i) ....... 1,000 9,234
Overseas Chinese Bank (j) .............. 1,000 $ 11,694
Sakura Bank Ltd. (d) ................... 3,000 33,466
------------
248,313
------------
BROKERAGE & MONEY
MANAGEMENT--1.0%
Merrill Lynch & Co., Inc. .............. 600 39,075
Nomura Securities Co. Ltd. (d) ......... 3,000 58,703
------------
97,778
------------
INSURANCE--5.1%
Aetna Life & Casualty Co. .............. 400 28,600
AFLAC, Inc. ............................ 150 4,481
American International Group, Inc. ..... 300 29,588
General Reinsurance Corp. .............. 200 30,450
Internationale Nederlanden
Groep N.V.* (a) ...................... 1,310 39,096
Life Re Corp. .......................... 1,000 30,875
MGIC Investment Corp. .................. 1,200 67,350
PMI Group, Inc. ........................ 600 25,500
TIG Holdings, Inc. ..................... 2,000 58,000
Tokio Marine and Fire Co. (d) .......... 3,000 40,049
Transatlantic Holdings, Inc. ........... 500 35,063
Travelers Group, Inc. .................. 1,950 88,969
------------
478,021
------------
MORTGAGE BANKING--0.7%
Federal National Mortgage Association .. 1,900 63,650
------------
REAL ESTATE--0.2%
Daito Trust Construction (d) ........... 1,000 14,996
------------
OTHER--1.0%
Associates First Capital Corp.* ........ 1,500 56,437
Dean Witter, Discover & Co. ............ 600 34,350
------------
90,787
------------
993,545
------------
HEALTH CARE--5.9%
DRUGS--3.6%
Amgen, Inc.* ........................... 900 48,488
Glaxo Wellcome Plc (h) ................. 400 5,386
Johnson and Johnson Co.. 1,200 ......... 59,400
Merck & Co., Inc. ...................... 900 58,162
Pfizer, Inc. ........................... 600 42,825
Smithkline Beecham Plc (h) ............. 419 4,480
Warner-Lambert Co. ..................... 1,300 71,500
Yamanouchi Pharmaceutical (d) .......... 2,000 43,524
------------
333,765
------------
MEDICAL PRODUCTS--0.2%
Baxter International, Inc. ............. 500 23,625
------------
67
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONT'D)
- ------------------------------------------------------------------------------
Shares U.S. $ Value
------ ------------
MEDICAL SERVICES--2.1%
Columbia / HCA Healthcare Corp. ........ 600 $ 32,025
HealthCare Compare Corp.* .............. 700 34,081
Steris Corp.* .......................... 690 22,037
United Healthcare Corp. ................ 1,100 55,550
Value Health, Inc.* .................... 2,100 49,613
------------
193,306
------------
550,696
------------
MULTI INDUSTRY--2.5%
Berjaya Sports Toto Bhd (f) ............ 6,000 19,844
BTR Plc (h) ............................ 4,346 17,076
Canadian Pacific Ltd. .................. 500 11,000
Compagnie Generale des Eaux (e) ........ 250 27,947
Hutchison Whampoa, Ltd. (g) ............ 1,000 6,291
Swire Pacific Ltd. Cl.A (g) ............ 1,000 8,559
Tyco International Ltd. ................ 600 24,450
U.S. Industries, Inc. .................. 3,900 94,087
Whitman Corp. .......................... 1,300 31,363
------------
240,617
------------
TECHNOLOGY--11.9%
AEROSPACE & DEFENSE--0.7%
Boeing Co. ............................. 750 65,344
------------
COMMUNICATIONS
EQUIPMENT--2.3%
DSC Communications Corp.* .............. 800 24,050
Motorola, Inc. ......................... 375 23,578
Nokia Corp. (ADR) ...................... 1,650 61,050
Scientific-Atlanta, Inc. ............... 2,600 40,300
Vanguard Cellular Systems, Inc.* ....... 3,000 65,812
------------
214,790
------------
COMPUTER HARDWARE--1.8%
Compaq Computer Corp.* ................. 1,300 64,025
Digital Equipment Corp.* ............... 1,000 45,000
Hewlett-Packard Co. .................... 225 22,416
Sun Microsystems, Inc.* ............... 600 35,325
------------
166,766
------------
COMPUTER PERIPHERALS--0.3%
Seagate Technology, Inc.* .............. 700 31,500
------------
COMPUTER SOFTWARE &
SERVICES--4.0%
Ceridian Corp.* ........................ 2,000 101,000
Electronic Data Systems Corp.* ......... 1,300 69,875
First Data Corp. ....................... 500 39,812
General Motors Corp. Cl.H .............. 100 6,013
Informix Corp.* ........................ 2,000 44,875
Intergraph Corp.* ...................... 2,000 24,500
Oracle Corp. ........................... 1,312 $ 51,742
Softkey International, Inc.* ........... 250 4,750
Sterling Software, Inc.* ............... 450 34,650
------------
377,217
------------
NETWORK SOFTWARE--1.5%
3Com Corp.* ............................ 1,150 52,540
Bay Networks, Inc.* .................... 1,600 41,200
Cisco Systems, Inc.* ................... 900 51,019
------------
144,759
------------
OFFICE EQUIPMENT &
SERVICES--0.7%
Canon, Inc. (d) ........................ 3,000 62,543
------------
SEMI-CONDUCTORS &
RELATED--0.6%
Altera Corp.* .......................... 800 30,350
Intel Corp. ............................ 300 22,031
------------
52,381
------------
1,115,300
------------
TRANSPORTATION--1.1%
RAILROADS--0.7%
Burlington Northern Santa Fe ........... 300 24,263
Union Pacific Corp. .................... 600 41,925
------------
66,188
------------
TRUCKING--0.4%
Xtra Corp. ............................. 800 35,400
------------
101,588
------------
UTILITIES--1.9%
ELECTRIC & GAS--0.6%
Hong Kong & China Gas Co., Ltd. (g) .... 7,200 11,487
warrants, expiring 9/30/97* (g) ...... 600 157
Veba AG (b) ............................ 800 42,549
------------
54,193
------------
TELEPHONE--1.3%
Asia Satellite Telecom Ltd.* (g) ....... 6,000 17,789
AT & T Corp. ........................... 750 46,500
British Telecommunications Plc (h) ..... 4,000 21,494
Korea Mobile Telecommunications
Corp. (ADR)* (k)(l) .................. 900 15,412
Mobilemedia Corp.* ..................... 525 6,300
Telecom Corp. of New Zealand Ltd. (m) .. 3,400 14,316
------------
121,811
------------
176,004
------------
Total Common Stocks and
Other Investments
(cost $6,129,302) .................... 6,294,486
------------
68
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONT'D)
- ------------------------------------------------------------------------------
Principal
Amount
(000) U.S. $ Value
--------- ------------
CORPORATE BONDS--2.7%
Auburn Hills Trust
12.00%, 5/01/20 ...................... $ 40 $ 57,776
Chase Manhattan Corp.
6.25%, 1/15/06 ....................... 50 46,122
Ford Motor Credit Co.
6.125%, 1/09/06 ...................... 50 45,705
John Hancock Mutual Life
Insurance Co.
7.375%, 2/15/24 ...................... 50 46,386
Time Warner, Inc.
8.375%, 3/15/23 ...................... 60 58,417
------------
Total Corporate Bonds
(cost $260,426) ...................... 254,406
------------
U.S. GOVERNMENT
OBLIGATIONS--13.3%
Federal National Mortgage Assn.
6.00%, 4/01/11 ....................... 100 94,310
7.00%, 5/01/26 ....................... 134 128,994
Government National Mortgage Assoc.
7.50%, 1/15/26 ....................... 44 43,703
U.S. Treasury Bond
7.625%, 2/15/25 ...................... $ 95 $ 102,362
U.S. Treasury Notes
5.75%, 10/31/00 ...................... 75 73,055
5.75%, 8/15/03 ....................... 245 233,323
5.875%, 8/15/98 ...................... 410 407,503
6.50%, 8/15/05 ....................... 105 103,490
7.25%, 2/15/98 ....................... 60 61,060
------------
Total U.S. Government Obligations
(cost $1,250,796) .................... 1,247,800
------------
SHORT-TERM INVESTMENTS--17.1%
U.S. GOVERNMENT
OBLIGATION--17.1%
Federal Home Loan Bank
5.20%, 7/01/96
(amortized cost $1,600,000) .......... 1,600 1,600,000
------------
TOTAL INVESTMENTS--100.1%
(cost $9,240,524) .................... 9,396,692
Other assets less liabilities--(0.1%) .. (5,038)
------------
NET ASSETS--100.0% ..................... $ 9,391,654
============
- ------------------------------------------------------------------------------
* Non-income producing security.
(a) Dutch holding.
(b) German holding
(c) Swiss holding.
(d) Japanese holding.
(e) French holding.
(f) Malaysian holding.
(g) Hong Kong holding.
(h) United Kingdom holding.
(I) Australian holding.
(j) Singapore holding.
(k) Securities exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration normally applied to certain qualified buyers. At June 30,
1996, the aggregate market value of these securities amounted to $15,412
or 0.2% of net assets.
(l) Korean holding.
(m) New Zealand holding.
See Glossary of Terms on page 71.
See Notes to Financial Statements.
69
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
TECHNOLOGY PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996 (UNAUDITED)
- ------------------------------------------------------------------------------
Shares U.S. $ Value
------ ------------
COMMON STOCKS--53.7%
BUSINESS SERVICES--0.1%
Security First Network Bank* ........... 400 $ 13,350
------------
COMMUNICATIONS
EQUIPMENT--5.7%
Cabletron Systems, Inc.* ............... 2,500 171,562
DSP Communications Inc.* ............... 1,600 82,100
Ericsson (L.M.) Telephone Co. (ADR) .... 3,200 68,600
Gandalf Technologies, Inc.* ............ 2,600 20,556
General Instrument Corp.* .............. 1,500 43,313
Glenayre Technologies, Inc.* ........... 1,860 92,884
Nokia Corp. (ADR) ...................... 3,000 111,000
Picturetel Corp.* ...................... 900 35,494
Scientific-Atlanta, Inc. ............... 4,200 65,100
------------
690,609
------------
COMPUTER HARDWARE--7.9%
Compaq Computer Corp.* ................. 7,500 369,375
Dell Computer Corp.* ................... 7,400 376,012
Hewlett-Packard Co. .................... 2,150 214,194
------------
959,581
------------
COMPUTER PERIPHERALS--2.8%
Seagate Technology, Inc.* .............. 5,000 225,000
Stormedia, Inc.* ....................... 3,900 41,925
Western Digital Corp.* ................. 3,000 78,375
------------
345,300
------------
COMPUTER SOFTWARE &
SERVICES--20.9%
Affiliated Computer Services, Inc. ..... 1,600 75,400
CompuServe Corp.* ...................... 1,300 27,462
Edify Corp.* ........................... 100 2,625
Electronic Data Systems Corp.* ......... 5,300 284,875
Farallon Communications ................ 3,000 44,625
First Data Corp. ....................... 5,200 414,050
HBO & Co. .............................. 600 40,575
I2 Technologies, Inc.* ................. 2,000 86,250
Informix Corp.* ........................ 16,900 379,194
Integrated Systems, Inc.* .............. 300 11,813
Macromedia, Inc.* ...................... 1,000 22,000
Maxis, Inc.* ........................... 1,600 $ 32,200
Mechanical Dynamics, Inc.* ............. 300 4,500
Microsoft Corp.* ....................... 1,150 138,072
Nova Corp.* ............................ 300 10,125
Open Market, Inc.* ..................... 200 4,900
Oracle Corp.* .......................... 10,450 412,122
Planning Sciences International
Plc (ADR)* ........................... 200 4,425
Renaissance Solutions, Inc.* ........... 1,800 50,850
Software 2000, Inc.* ................... 3,800 61,974
Spectrum Holobyte, Inc.* ............... 800 4,500
Spyglass, Inc.* ........................ 19,000 406,125
Transition Systems, Inc.* .............. 300 8,475
Uscs International, Inc.* .............. 700 13,562
------------
2,540,699
------------
NETWORK SOFTWARE--10.1%
3Com Corp.* ............................ 7,000 319,812
Aspect Development, Inc.* .............. 100 2,538
Bay Networks, Inc.* .................... 10,000 257,500
Cascade Communications Corp.* .......... 750 51,047
Cisco Systems, Inc.* ................... 4,300 243,756
Fore Systems, Inc.* .................... 4,700 171,293
H & R Block, Inc. ...................... 2,000 65,250
Shiva Corp.* ........................... 1,400 112,000
------------
1,223,196
------------
SEMI-CONDUCTORS &
RELATED--4.8%
Altera Corp.* .......................... 3,700 140,369
Applied Materials, Inc.* ............... 2,400 73,050
Intel Corp. ............................ 3,550 260,703
Lam Research Corp.* .................... 2,000 51,875
Microchip Technology, Inc.* ............ 2,500 62,500
------------
588,497
------------
OTHER--1.4%
Sanmina Corp.* ......................... 3,000 81,000
Solectron Corp.* ....................... 2,500 94,688
------------
175,688
------------
Total Common Stocks
(cost $6,822,182) .................... 6,536,920
------------
70
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
TECHNOLOGY PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONT'D)
- ------------------------------------------------------------------------------
Principal
Amount
(000) U.S. $ Value
--------- ------------
SHORT-TERM INVESTMENTS--50.0%
COMMERCIAL PAPER--2.9%
Merrill Lynch & Co.
5.43%, 7/08/96 ....................... $ 357 $ 356,623
------------
U.S. GOVERNMENT
OBLIGATIONS--47.1%
Federal Home Loan Bank
5.23%, 7/08/96 ....................... 1,590 1,588,383
Federal Home Loan Mortgage Corp.
5.27%, 7/15/96 ....................... 1,900 1,896,106
Federal National Mortgage Association
5.28%, 7/05/96 ....................... 1,250 1,249,267
5.29%, 7/12/96 ....................... 1,000 998,383
------------
5,732,139
------------
Total Short-Term Investments
(amortized cost $6,088,762) .......... 6,088,762
------------
TOTAL INVESTMENTS--103.7%
(cost $12,910,944) ................... $ 12,625,682
Other assets less liabilities--(3.7%) .. (455,305)
------------
NET ASSETS--100.0% ..................... $ 12,170,377
============
- ------------------------------------------------------------------------------
* Non-income producing security.
See Notes to Financial Statements.
Glossary of Terms
ADR - American Depository Receipts
FRN - Floating Rate Note
GDR - Global Depository Receipts
IDU - Interest Due on Unpaid Bond
ORD - Ordinary
PDI - Past Due Interest Bonds
71
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1996 (UNAUDITED)
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Premier Global Growth and Short-Term
Growth Bond Income Multi-Market
Portfolio Portfolio Portfolio Portfolio
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
ASSETS
Investments in securities, at value (cost $58,516,280,
$14,838,667, $77,740,709 and $5,066,412,
respectively) ........................................... $ 64,788,602 $ 14,857,151 $ 83,122,089 $ 5,064,830
Cash, at value (cost $90,583, $1,264, $181,703
and $407, respectively) ................................. 90,583 1,264 182,217 407
Receivable for capital stock sold ........................ 183,852 23,932 70,521 26,490
Dividends receivable ..................................... 70,959 -0- 185,677 -0-
Receivable for investment securities sold ................ 45,287 2,327,853 -0- -0-
Deferred organization expenses ........................... 5,428 162 31 -0-
Interest receivable ...................................... -0- 356,064 -0- 83,079
Unrealized appreciation of forward exchange
currency contracts ...................................... -0- 8,227 -0- 9,780
Receivable from investment adviser ....................... -0- -0- -0- 1,458
------------ ------------ ------------ ------------
Total assets ............................................. 65,184,711 17,574,653 83,560,535 5,186,044
------------ ------------ ------------ ------------
LIABILITIES
Payable for investment securities purchased .............. 349,950 2,280,605 921,956 260,333
Investment advisory fee payable .......................... 36,898 23,628 40,600 -0-
Payable for capital stock redeemed ....................... 14,770 1,703 28,580 3,384
Accrued expenses ......................................... 40,996 39,410 47,073 29,368
------------ ------------ ------------ ------------
Total liabilities ........................................ 442,614 2,345,346 1,038,209 293,085
------------ ------------ ------------ ------------
NET ASSETS ................................................. $ 64,742,097 $ 15,229,307 $ 82,522,326 $ 4,892,959
============ ============ ============ ============
COMPOSITION OF NET ASSETS
Capital stock, at par .................................... $ 4,667 $ 1,375 $ 5,698 $ 476
Additional paid-in capital ............................... 58,490,037 14,864,407 72,975,940 5,850,512
Undistributed net investment income ...................... 119,504 395,753 506,169 136,390
Accumulated net realized gain (loss) on investments,
options and foreign currency transactions ............... (144,433) (63,524) 3,652,625 (1,102,006)
Net unrealized appreciation of investments and
foreign currency denominated assets and liabilities ..... 6,272,322 31,296 5,381,894 7,587
============ ============ ============ ============
$ 64,742,097 $ 15,229,307 $ 82,522,326 $ 4,892,959
============ ============ ============ ============
Shares of capital stock outstanding ...................... 4,667,052 1,374,828 5,698,137 476,331
============ ============ ============ ============
Net asset value per share ................................ $ 13.87 $ 11.08 $ 14.48 $ 10.27
============ ============ ============ ============
</TABLE>
- ------------------------------------------------------------------------------
See Notes to Financial Statements.
72
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1996 (UNAUDITED)
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S. Government/
High Grade Total Money
Securities Return International Market
Portfolio Portfolio Portfolio Portfolio
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
ASSETS
Investment in securities, at value (cost $25,760,084,
$17,537,396, $30,203,817 and $52,261,184,
respectively) ........................................... $ 25,374,205 $ 18,039,305 $ 31,810,847 $ 52,261,184
Cash, at value (cost $47, $243, $8,972 and
$333,891, respectively) ................................. 47 243 8,932 333,891
Interest receivable ...................................... 359,090 129,056 930 280,083
Deferred organization expenses ........................... 5,921 7,283 7,458 7,486
Unrealized appreciation of forward exchange
currency contracts ...................................... 3,631 -0- -0- -0-
Receivable for capital stock sold ........................ -0- 267,538 43,609 193,937
Receivable for investment securities sold ................ -0- 70,085 44,771 -0-
Dividends receivable ..................................... -0- 17,353 102,768 -0-
------------ ------------ ------------ ------------
Total assets ............................................. 25,742,894 18,530,863 32,019,315 53,076,581
------------ ------------ ------------ ------------
LIABILITIES
Payable for capital stock redeemed ....................... 477,778 4,697 5,114 47,973
Investment advisory fee payable .......................... 11,347 7,905 3,480 20,002
Payable for investment securities purchased .............. -0- 4,790 555,880 -0-
Unrealized depreciation of forward exchange
currency contracts ...................................... -0- -0- 12,299 -0-
Accrued expenses ......................................... 31,847 59,997 86,542 67,637
------------ ------------ ------------ ------------
Total liabilities ........................................ 520,972 77,389 663,315 135,612
------------ ------------ ------------ ------------
NET ASSETS ................................................. $ 25,221,922 $ 18,453,474 $ 31,356,000 $ 52,940,969
============ ============ ============ ============
COMPOSITION OF NET ASSETS
Capital stock, at par .................................... $ 2,315 $ 1,394 $ 2,109 $ 52,941
Additional paid-in capital ............................... 25,204,929 17,508,743 29,029,010 52,887,425
Undistributed net investment income ...................... 614,308 181,194 213,408 803
Accumulated net realized gain (loss) on investments
and foreign currency transactions ....................... (217,363) 260,234 517,616 (200)
Net unrealized appreciation (depreciation) of investments
and foreign currency denominated assets and liabilities . (382,267) 501,909 1,593,857 -0-
------------ ------------ ------------ ------------
$ 25,221,922 $ 18,453,474 $ 31,356,000 $ 52,940,969
============ ============ ============ ============
Shares of capital stock outstanding ...................... 2,315,058 1,394,237 2,108,731 52,941,169
============ ============ ============ ============
Net asset value per share ................................ $ 10.89 $ 13.24 $ 14.87 $ 1.00
============ ============ ============ ============
</TABLE>
- ------------------------------------------------------------------------------
See Notes to Financial Statements.
73
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1996 (UNAUDITED)
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
North American
Global Dollar Government Utility
Government Income Income Growth
Portfolio Portfolio Portfolio Portfolio
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
ASSETS
Investments in securities, at value (cost $4,886,835,
$10,533,686, $11,736,880 and $82,574,157,
respectively) ........................................... $ 5,164,364 $ 11,083,837 $ 12,104,335 $ 90,643,725
Cash, at value (cost $118,075, $13,407, $118,946
and $259,092, respectively) ............................. 118,075 13,371 118,946 259,092
Interest receivable ...................................... 105,222 323,506 -0- 7,689
Deferred organization expense ............................ 9,477 12,233 8,738 6,411
Receivable from investment adviser ....................... 1,298 -0- -0- -0-
Receivable for capital stock sold ........................ 664 -0- 25,225 367,879
Unrealized appreciation of forward exchange
currency contracts ...................................... -0- 1,576 -0- -0-
Dividends receivable ..................................... -0- -0- 22,238 103,891
Receivable for investment securities sold ................ -0- -0- -0- 1,004,632
------------ ------------ ------------ ------------
Total assets ............................................. 5,399,100 11,434,523 12,279,482 92,393,319
------------ ------------ ------------ ------------
LIABILITIES
Payable for capital stock redeemed ....................... 376 12,548 3,318 45
Investment advisory fee payable .......................... -0- 1,828 3,114 53,792
Payable for investment securities purchased .............. -0- -0- -0- 1,585,727
Accrued expenses ......................................... 22,123 23,900 21,856 63,633
------------ ------------ ------------ ------------
Total liabilities ........................................ 22,499 38,276 28,288 1,703,197
------------ ------------ ------------ ------------
NET ASSETS ................................................. $ 5,376,601 $ 11,396,247 $ 12,251,194 $ 90,690,122
============ ============ ============ ============
COMPOSITION OF NET ASSETS
Capital stock, at par .................................... $ 437 $ 1,007 $ 1,009 $ 5,811
Additional paid-in capital ............................... 4,809,412 10,354,707 11,579,757 79,930,999
Undistributed net investment income ...................... 198,857 601,509 100,182 174,199
Accumulated net realized gain (loss) on investments
and foreign currency transactions ....................... 90,366 (112,741) 202,791 2,509,545
Net unrealized appreciation of investments and
foreign currency denominated assets and liabilities ..... 277,529 551,765 367,455 8,069,568
------------ ------------ ------------ ------------
$ 5,376,601 $ 11,396,247 $ 12,251,194 $ 90,690,122
============ ============ ============ ============
Shares of capital stock outstanding ...................... 437,007 1,006,963 1,008,590 5,811,313
============ ============ ============ ============
Net asset value per share ................................ $ 12.30 $ 11.32 $ 12.15 $ 15.61
============ ============ ============ ============
</TABLE>
- ------------------------------------------------------------------------------
See Notes to Financial Statements.
74
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1996 (UNAUDITED)
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Worldwide Conservative Growth
Privatization Investors Investors Technology
Portfolio Portfolio Portfolio Portfolio
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
ASSETS
Investments in securities, at value (cost $11,235,460,
$17,261,002, $9,240,524 and $12,910,944,
respectively) ........................................... $ 12,024,560 $ 17,369,527 $ 9,396,692 $ 12,625,682
Cash, at value (cost $21,362, $59,270, $186,232
and $107,091, respectively) ............................. 21,455 59,270 186,232 107,091
Receivable for investment securities sold ................ 155,711 149,914 47,531 14,705
Dividends receivable ..................................... 46,411 7,589 9,217 1,366
Receivable for capital stock sold ........................ 44,958 591 -0- 164,003
Deferred organization expenses ........................... 6,455 6,647 6,647 19,640
Interest receivable ...................................... 764 176,497 30,127 -0-
Receivable from investment adviser ....................... -0- -0- 2,440 -0-
------------ ------------ ------------ ------------
Total assets ............................................. 12,300,314 17,770,035 9,678,886 12,932,487
------------ ------------ ------------ ------------
LIABILITIES
Payable for investment securities purchased .............. 379,875 572,261 247,275 731,076
Investment advisory fee payable .......................... 2,118 4,521 -0- 3,971
Payable for capital stock redeemed ....................... 1,680 7,938 8,866 1,923
Accrued expenses ......................................... 31,010 34,078 31,091 25,140
------------ ------------ ------------ ------------
Total liabilities ........................................ 414,683 618,798 287,232 762,110
------------ ------------ ------------ ------------
NET ASSETS ................................................. $ 11,885,631 $ 17,151,237 $ 9,391,654 $ 12,170,377
============ ============ ============ ============
COMPOSITION OF NET ASSETS
Capital stock, at par .................................... $ 959 $ 1,504 $ 781 $ 1,229
Additional paid-in capital ............................... 10,854,703 16,985,718 8,998,021 12,404,830
Undistributed net investment income ...................... 121,607 241,904 84,070 44,425
Accumulated net realized gain (loss) on investments
and foreign currency transactions ....................... 120,679 (186,467) 152,620 5,155
Net unrealized appreciation (depreciation) of investments
and foreign currency denominated assets and liabilities . 787,683 108,578 156,162 (285,262)
------------ ------------ ------------ ------------
$ 11,885,631 $ 17,151,237 $ 9,391,654 $ 12,170,377
============ ============ ============ ============
Shares of capital stock outstanding ...................... 958,650 1,503,897 781,363 1,228,582
============ ============ ============ ============
Net asset value per share ................................ $ 12.40 $ 11.40 $ 12.02 $ 9.91
============ ============ ============ ============
</TABLE>
- ------------------------------------------------------------------------------
See Notes to Financial Statements.
75
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
STATEMENTS OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 1996 (UNAUDITED)
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Premier Global Growth and Short-Term
Growth Bond Income Multi-Market
Portfolio Portfolio Portfolio Portfolio
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends (net of foreign tax withheld of $2,368, $-0-,
$4,424 and $-0-, respectively) .......................... $ 269,810 $ -0- $ 644,465 $ -0-
Interest ................................................. 73,870 459,307 119,951 156,524
----------- ----------- ----------- -----------
Total investment income .................................. 343,680 459,307 764,416 156,524
----------- ----------- ----------- -----------
EXPENSES
Investment advisory fee .................................. 232,306 42,981 191,588 11,603
Custodian ................................................ 32,171 33,238 27,891 39,343
Audit and legal .......................................... 18,282 6,018 22,994 2,188
Printing ................................................. 9,464 1,514 13,542 5,011
Amortization of organization expenses .................... 2,741 1,974 627 -0-
Directors fees ........................................... 768 557 1,490 7
Transfer agency .......................................... 738 622 547 472
Miscellaneous ............................................ 5,266 689 3,033 -0-
----------- ----------- ----------- -----------
Total expenses ........................................... 301,736 87,593 261,712 58,624
Less: expense reimbursement .............................. (81,046) (24,775) (1,981) (38,583)
----------- ----------- ----------- -----------
Net expenses ............................................. 220,690 62,818 259,731 20,041
----------- ----------- ----------- -----------
Net investment income .................................... 122,990 396,489 504,685 136,483
----------- ----------- ----------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain (loss) on investment transactions ...... 357,267 (49,226) 3,914,044 (12,352)
Net realized gain on foreign currency transactions ....... -0- 5,086 -0- 17,671
Net change in unrealized appreciation (depreciation)
of investments .......................................... 2,955,002 (288,901) 914,522 1,511
Net change in unrealized appreciation (depreciation) of
foreign currency denominated assets and liabilities ..... -0- (1,927) 17 55,774
----------- ----------- ----------- -----------
Net gain (loss) on investments ........................... 3,312,269 (334,968) 4,828,583 62,604
----------- ----------- ----------- -----------
NET INCREASE IN NET ASSETS FROM OPERATIONS ................. $ 3,435,259 $ 61,521 $ 5,333,268 $ 199,087
============ ============ =========== ===========
</TABLE>
- ------------------------------------------------------------------------------
See Notes to Financial Statements.
76
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
STATEMENTS OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 1996 (UNAUDITED)
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S. Government/
High Grade Total Money
Securities Return International Market
Portfolio Portfolio Portfolio Portfolio
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Interest ................................................. $ 714,959 $ 174,435 $ 68,980 $ 1,107,355
Dividends (net of foreign tax withheld of $-0-, $74,
$38,813 and $-0-, respectively) ......................... 1,181 67,871 256,534 -0-
----------- ----------- ----------- -----------
Total investment income .................................. 716,140 242,306 325,514 1,107,355
----------- ----------- ----------- -----------
EXPENSES
Investment advisory fee .................................. 63,660 40,093 116,915 104,255
Custodian ................................................ 30,611 35,754 119,100 24,669
Audit and legal .......................................... 8,892 5,559 9,987 16,158
Printing ................................................. 4,849 3,149 5,445 6,992
Amortization of organization expenses .................... 2,429 2,429 2,490 2,490
Directors fees ........................................... 625 493 315 510
Transfer agency .......................................... 566 564 595 598
Miscellaneous ............................................ 1,856 1,185 1,600 1,836
----------- ----------- ----------- -----------
Total expenses ........................................... 113,488 89,226 256,447 157,508
Less: expense reimbursement .............................. (12,693) (28,286) (145,378) (1,153)
----------- ----------- ----------- -----------
Net expenses ............................................. 100,795 60,940 111,069 156,355
----------- ----------- ----------- -----------
Net investment income .................................... 615,345 181,366 214,445 951,000
----------- ----------- ----------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain (loss) on investment transactions ...... (176,313) 259,834 481,132 (443)
Net realized gain (loss) on foreign currency transactions (47,104) -0- 98,970 -0-
Net change in unrealized appreciation (depreciation)
of investments .......................................... (980,041) 85,910 876,320 -0-
Net change in unrealized appreciation (depreciation) of
foreign currency denominated assets and liabilities ..... 16,986 -0- (22,452) -0-
----------- ----------- ----------- -----------
Net gain (loss) on investments ........................... (1,186,472) 345,744 1,433,970 (443)
----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS ...... $ (571,127) $ 527,110 $ 1,648,415 $ 950,557
============ ============ ============ ============
</TABLE>
- ------------------------------------------------------------------------------
See Notes to Financial Statements.
77
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
STATEMENTS OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 1996 (UNAUDITED)
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
North American
Global Dollar Government Utility
Government Income Income Growth
Portfolio Portfolio Portfolio Portfolio
---------- ---------- ---------- -----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Interest ................................................. $ 222,703 $ 647,215 $ 28,924 $ 120,624
Dividends (net of foreign tax withheld of $-0-, $-0-,
$1,993 and $1,192, respectively) ........................ -0- -0- 114,449 333,794
---------- ---------- ---------- -----------
Total investment income .................................. 222,703 647,215 143,373 454,418
---------- ---------- ---------- -----------
EXPENSES
Investment advisory fee .................................. 16,648 30,131 33,693 251,665
Custodian ................................................ 27,848 31,813 26,030 34,849
Audit and legal .......................................... 3,520 4,813 5,542 22,188
Printing ................................................. 3,452 4,903 7,207 10,489
Amortization of organization expenses .................... 1,667 2,151 1,525 997
Transfer agency .......................................... 468 613 568 467
Directors fees ........................................... 68 -0- 366 1,532
Miscellaneous ............................................ 282 907 764 2,533
---------- ---------- ---------- -----------
Total expenses ........................................... 53,953 75,331 75,695 324,720
Less: expense reimbursement .............................. (32,867) (31,293) (33,018) (8,159)
---------- ---------- ---------- -----------
Net expenses ............................................. 21,086 44,038 42,677 316,561
---------- ---------- ---------- -----------
Net investment income .................................... 201,617 603,177 100,696 137,857
---------- ---------- ---------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain on investment transactions ............. 90,521 6,166 221,408 2,564,260
Net realized gain (loss) on foreign currency transactions -0- (118,477) (1,050) 838
Net change in unrealized appreciation of investments ..... 12,988 232,340 64,262 4,368,272
Net change in unrealized appreciation (depreciation) of
foreign currency denominated assets and liabilities ..... -0- 3,711 -0- (129)
---------- ---------- ---------- -----------
Net gain on investments .................................. 103,509 123,740 284,620 6,933,241
---------- ---------- ---------- -----------
NET INCREASE IN NET ASSETS FROM OPERATIONS ................. $ 305,126 $ 726,917 $ 385,316 $ 7,071,098
========== ========== ========== ===========
</TABLE>
- ------------------------------------------------------------------------------
See Notes to Financial Statements.
78
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
STATEMENTS OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 1996 (UNAUDITED)
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Worldwide Conservative Growth
Privatization Investors Investors Technology
Portfolio Portfolio Portfolio Portfolio (a)
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends (net of foreign tax withheld of $14,002, $824,
$1,424 and $31, respectively) ........................... $ 116,599 $ 25,848 $ 37,574 $ 2,997
Interest ................................................. 45,251 272,115 79,199 62,943
---------- ---------- ---------- ----------
Total investment income .................................. 161,850 297,963 116,773 65,940
---------- ---------- ---------- ----------
EXPENSES
Investment advisory fee .................................. 42,048 44,500 26,104 22,647
Custodian ................................................ 33,847 34,230 37,338 14,369
Audit and legal .......................................... 5,232 6,429 3,945 1,458
Printing ................................................. 1,032 1,506 1,821 519
Amortization of organization expenses .................... 997 997 997 1,860
Transfer agency .......................................... 596 732 624 572
Directors fees ........................................... 458 152 397 229
Miscellaneous ............................................ 742 946 1,103 368
---------- ---------- ---------- ----------
Total expenses ........................................... 84,952 89,492 72,329 42,022
Less: expense reimbursement .............................. (45,006) (33,126) (39,265) (20,507)
---------- ---------- ---------- ----------
Net expenses ............................................. 39,946 56,366 33,064 21,515
---------- ---------- ---------- ----------
Net investment income .................................... 121,904 241,597 83,709 44,425
---------- ---------- ---------- ----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain (loss) on investment transactions ...... 172,937 (183,341) 153,583 5,155
Net realized loss on foreign currency transactions ....... (8,494) (2,092) (456) -0-
Net change in unrealized appreciation (depreciation)
of investments .......................................... 573,228 (148,324) (77,317) (285,262)
Net change in unrealized appreciation (depreciation) of
foreign currency denominated assets and liabilities ..... (1,365) 53 (6) -0-
---------- ---------- ---------- ----------
Net gain (loss) on investments ........................... 736,306 (333,704) 75,804 (280,107)
---------- ---------- ---------- ----------
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS ...... $ 858,210 $ (92,107) $ 159,513 $ (235,682)
========== ========== ========== ==========
</TABLE>
- ------------------------------------------------------------------------------
(a) Commencement of operations, January 11, 1996.
See Notes to Financial Statements.
79
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Premier Growth Portfolio Global Bond Portfolio
------------------------------- -------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 1996 December 31, June 30, 1996 December 31,
(Unaudited) 1995 (Unaudited) 1995
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income ............................... $ 122,990 $ 313,463 $ 396,489 $ 565,830
Net realized gain (loss) on investment
transactions ....................................... 357,267 16,824,672 (49,226) 445,890
Net realized gain on foreign currency
transactions ....................................... -0- -0- 5,086 466,026
Net change in unrealized appreciation (depreciation)
of investments and foreign currency denominated
assets and liabilities ............................. 2,955,002 3,054,025 (290,828) 446,385
------------ ------------ ------------ ------------
Net increase in net assets from operations .......... 3,435,259 20,192,160 61,521 1,924,131
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income ............................... (316,135) (97,581) (1,035,617) (72,090)
Net realized gain on investments and foreign
currency transactions .............................. (17,322,907) (273,977) (309,324) -0-
CAPITAL STOCK TRANSACTIONS
Net increase (decrease) ............................. 49,667,586 (28,211,402) 4,959,750 2,402,867
------------ ------------ ------------ ------------
Total increase (decrease) ........................... 35,463,803 (8,390,800) 3,676,330 4,254,908
NET ASSETS
Beginning of period ................................. 29,278,294 37,669,094 11,552,977 7,298,069
------------ ------------ ------------ ------------
End of period (including undistributed net
investment income of $119,504, $312,649,
$395,753 and $1,034,881, respectively) ............. $ 64,742,097 $ 29,278,294 $ 15,229,307 $ 11,552,977
============ ============ ============ ============
</TABLE>
- ------------------------------------------------------------------------------
See Notes to Financial Statements.
80
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Growth and Income Portfolio Short-Term Multi-Market Portfolio
-------------------------------- ---------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 1996 December 31, June 30, 1996 December 31,
(Unaudited) 1995 (Unaudited) 1995
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income .......................... $ 504,685 $ 1,133,993 $ 136,483 $ 1,307,834
Net realized gain (loss) on investment
transactions .................................. 3,914,044 11,527,647 (12,352) (910,867)
Net realized gain (loss) on foreign currency
transactions .................................. -0- 18,489 17,671 (964,669)
Net change in unrealized appreciation of
investments and foreign currency denominated
assets and liabilities ........................ 914,539 4,605,887 57,285 1,423,840
------------ ------------ ------------ ------------
Net increase in net assets from operations ..... 5,333,268 17,286,016 199,087 856,138
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income .......................... (1,128,565) (531,525) (369,515) -0-
Net realized gain on investments and foreign
currency transactions ......................... (11,815,383) (551,658) -0- -0-
CAPITAL STOCK TRANSACTIONS
Net increase (decrease) ........................ 48,140,178 (15,911,876) 1,911,309 (18,624,919)
------------ ------------ ------------ ------------
Total increase (decrease) ...................... 40,529,498 290,957 1,740,881 (17,768,781)
NET ASSETS
Beginning of period ............................ 41,992,828 41,701,871 3,152,078 20,920,859
------------ ------------ ------------ ------------
End of period (including undistributed net
investment income of $506,169, $1,130,049,
$136,390 and $369,422, respectively) .......... $ 82,522,326 $ 41,992,828 $ 4,892,959 $ 3,152,078
============ ============ ============ ============
</TABLE>
- ------------------------------------------------------------------------------
See Notes to Financial Statements.
81
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S. Government/
High Grade Securities Portfolio Total Return Portfolio
--------------------------------- ---------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 1996 December 31, June 30, 1996 December 31,
(Unaudited) 1995 (Unaudited) 1995
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income ............................... $ 615,345 $ 600,099 $ 181,366 $ 88,070
Net realized gain (loss) on investment
transactions ....................................... (176,313) 319,393 259,834 49,542
Net realized gain (loss) on foreign currency
transactions ....................................... (47,104) 29,033 -0- -0-
Net change in unrealized appreciation (depreciation)
of investments and foreign currency denominated
assets and liabilities ............................. (963,055) 777,806 85,910 424,620
------------ ------------ ------------ ------------
Net increase (decrease) in net assets
from operations .................................... (571,127) 1,726,331 527,110 562,232
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income ............................... (621,506) (149,971) (88,093) (10,089)
Net realized gain on investments .................... (289,591) -0- (44,705) -0-
CAPITAL STOCK TRANSACTIONS
Net increase ........................................ 9,757,627 10,268,875 9,816,721 6,940,398
------------ ------------ ------------ ------------
Total increase ...................................... 8,275,403 11,845,235 10,211,033 7,492,541
NET ASSETS
Beginning of period ................................. 16,946,519 5,101,284 8,242,441 749,900
------------ ------------ ------------ ------------
End of period (including undistributed net
investment income of $614,308, $620,469,
$181,194 and $87,921, respectively) ................ $ 25,221,922 $ 16,946,519 $ 18,453,474 $ 8,242,441
============ ============ ============ ============
</TABLE>
- ------------------------------------------------------------------------------
See Notes to Financial Statements.
82
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
International Portfolio Money Market Portfolio
-------------------------------- --------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 1996 December 31, June 30, 1996 December 31,
(Unaudited) 1995 (Unaudited) 1995
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income .......................... $ 214,445 $ 148,832 $ 951,000 $ 798,013
Net realized gain (loss) on investment
transactions .................................. 481,132 60,209 (443) 726
Net realized gain on foreign currency
transactions .................................. 98,970 136,755 -0- -0-
Net change in unrealized appreciation of
investments and foreign currency denominated
assets and liabilities ........................ 853,868 823,228 -0- -0-
------------ ------------ ------------ ------------
Net increase in net assets from operations ..... 1,648,415 1,169,024 950,557 798,739
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income .......................... (155,834) (23,594) (951,000) (798,013)
Net realized gain on investments and foreign
currency transactions ......................... (244,881) (29,314) -0- -0-
CAPITAL STOCK TRANSACTIONS
Net increase ................................... 13,566,665 8,149,131 24,849,104 21,193,287
------------ ------------ ------------ ------------
Total increase ................................. 14,814,365 9,265,247 24,848,661 21,194,013
NET ASSETS
Beginning of period ............................ 16,541,635 7,276,388 28,092,308 6,898,295
------------ ------------ ------------ ------------
End of period (including undistributed net
investment income of $213,408, $154,797,
$803 and $803, respectively) ................. $ 31,356,000 $ 16,541,635 $ 52,940,969 $ 28,092,308
============ ============ ============ ============
</TABLE>
- ------------------------------------------------------------------------------
See Notes to Financial Statements.
83
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Global Dollar North American
Government Portfolio Government Income Portfolio
-------------------------------- -------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 1996 December 31, June 30, 1996 December 31,
(Unaudited) 1995 (Unaudited) 1995
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income .......................... $ 201,617 $ 190,779 $ 603,177 $ 628,992
Net realized gain on investment transactions ... 90,521 13,908
6,166 21,305
Net realized loss on foreign currency
transactions .................................. -0- -0- (118,477) (582,809)
Net change in unrealized appreciation of
investments and foreign currency denominated
assets and liabilities ........................ 12,988 317,262 236,051 1,031,464
------------ ------------ ------------ ------------
Net increase in net assets from operations ..... 305,126 521,949 726,917 1,098,952
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income .......................... (191,319) (28,002) (49,608) (144,624)
Net realized gain on investments ............... (13,292) -0- (3,969) -0-
CAPITAL STOCK TRANSACTIONS
Net increase ................................... 1,497,991 2,137,822 3,444,980 2,475,517
------------ ------------ ------------ ------------
Total increase ................................. 1,598,506 2,631,769 4,118,320 3,429,845
NET ASSETS
Beginning of period ............................ 3,778,095 1,146,326 7,277,927 3,848,082
------------ ------------ ------------ ------------
End of period (including undistributed net
investment income of $198,857, $188,559,
$601,509 and $47,940, respectively) ........... $ 5,376,601 $ 3,778,095 $ 11,396,247 $ 7,277,927
============ ============ ============ ============
</TABLE>
- ------------------------------------------------------------------------------
See Notes to Financial Statements.
84
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Utility Income Portfolio Growth Portfolio
--------------------------------- -------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 1996 December 31, June 30, 1996 December 31,
(Unaudited) 1995 (Unaudited) 1995
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income .......................... $ 100,696 $ 81,490 $ 137,857 $ 271,351
Net realized gain on investment transactions ... 221,408 146,191 2,564,260 1,503,347
Net realized gain (loss) on foreign currency
transactions .................................. (1,050) 2,026 838 (8,006)
Net change in unrealized appreciation of
investments and foreign currency denominated
assets and liabilities ........................ 64,262 336,155 4,368,143 3,495,519
------------ ------------ ------------ ------------
Net increase in net assets from operations ..... 385,316 565,862 7,071,098 5,262,211
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income .......................... (81,842) (19,130) (230,200) (10,913)
Net realized gain on investments ............... (155,981) -0- (1,507,259) -0-
CAPITAL STOCK TRANSACTIONS
Net increase ................................... 5,853,160 4,449,560 40,136,772 34,476,649
------------ ------------ ------------ ------------
Total increase ................................. 6,000,653 4,996,292 45,470,411 39,727,947
NET ASSETS
Beginning of period ............................ 6,250,541 1,254,249 45,219,711 5,491,764
------------ ------------ ------------ ------------
End of period (including undistributed net
investment income of $100,182, $81,328,
$174,199 and $266,542, respectively) .......... $ 12,251,194 $ 6,250,541 $ 90,690,122 $ 45,219,711
============ ============ ============ ============
</TABLE>
- ------------------------------------------------------------------------------
See Notes to Financial Statements.
85
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Worldwide Privatization Portfolio Conservative Investors Portfolio
--------------------------------- --------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 1996 December 31, June 30, 1996 December 31,
(Unaudited) 1995 (Unaudited) 1995
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income ............................... $ 121,904 $ 95,371 $ 241,597 $ 127,493
Net realized gain (loss) on investment
transactions ....................................... 172,937 (45,435) (183,341) 55,975
Net realized loss on foreign currency
transactions ....................................... (8,494) (3,414) (2,092) -0-
Net change in unrealized appreciation (depreciation)
of investments and foreign currency denominated
assets and liabilities ............................. 571,863 215,820 (148,271) 255,556
------------ ------------ ------------ ------------
Net increase (decrease) in net assets
from operations .................................... 858,210 262,342 (92,107) 439,024
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income ............................... (90,574) (7,193) (127,029) (3,619)
Net realized gain on investments .................... -0- -0- (56,297) -0-
CAPITAL STOCK TRANSACTIONS
Net increase ........................................ 5,171,221 4,564,563 10,006,950 6,283,423
------------ ------------ ------------ ------------
Total increase ...................................... 5,938,857 4,819,712 9,731,517 6,718,828
NET ASSETS
Beginning of period ................................. 5,946,774 1,127,062 7,419,720 700,892
------------ ------------ ------------ ------------
End of period (including undistributed net
investment income of $121,607, $90,277,
$241,904 and $127,336, respectively) ............... $ 11,885,631 $ 5,946,774 $ 17,151,237 $ 7,419,720
============ ============ ============ ============
</TABLE>
- ------------------------------------------------------------------------------
See Notes to Financial Statements.
86
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Growth Investors Portfolio Technology Portfolio
------------------------------ --------------------
Six Months Ended Year Ended Period Ended
June 30, 1996 December 31, June 30, 1996 (a)
(Unaudited) 1995 (Unaudited)
------------ ------------ ------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income .......................... $ 83,709 $ 55,823 $ 44,425
Net realized gain on investment transactions ... 153,583 16,967 5,155
Net realized loss on foreign currency
transactions .................................. (456) -0- -0-
Net change in unrealized appreciation
(depreciation) of investments ................. (77,323) 237,378 (285,262)
------------ ------------ ------------
Net increase (decrease) in net assets
from operations ............................... 159,513 310,168 (235,682)
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income .......................... (55,626) (903) -0-
Net realized gain on investments ............... (16,764) -0- -0-
CAPITAL STOCK TRANSACTIONS
Net increase ................................... 4,326,415 4,348,053 12,406,059
------------ ------------ ------------
Total increase ................................. 4,413,538 4,657,318 12,170,377
NET ASSETS
Beginning of period ............................ 4,978,116 320,798 -0-
------------ ------------ ------------
End of period (including undistributed net
investment income of $84,070, $55,987
and $44,425, respectively) .................... $ 9,391,654 $ 4,978,116 $ 12,170,377
============ ============ ============
</TABLE>
- ------------------------------------------------------------------------------
(a) Commencement of operations, January 11, 1996.
See Notes to Financial Statements.
87
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1996 (UNAUDITED)
- ------------------------------------------------------------------------------
NOTE A -SIGNIFICANT ACCOUNTING POLICIES
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC. (the "Fund"), was incorporated in
the State of Maryland on November 17, 1987 as an open-end series investment
company. The Fund had no operations prior to November 28, 1990. The Fund
offers sixteen separately managed pools of assets which have differing
investment objectives and policies. The Fund currently issues shares of 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, Money Market
Portfolio, Global Dollar Government Portfolio, North American Government
Income Portfolio, Utility Income Portfolio, Growth Portfolio, Worldwide
Privatization Portfolio, Conservative Investors Portfolio, Growth Investors
Portfolio and Technology Portfolio (the "Portfolios"). The investment
objectives of each Portfolio are as follows:
PREMIER GROWTH PORTFOLIO-seeks growth of capital employing aggressive
investment policies. Since investments will be made based upon their potential
for capital appreciation, current income will be incidental to the objective
of capital growth. The Portfolio is not intended for investors whose principal
objective is assured income or preservation of capital.
GLOBAL BOND PORTFOLIO-seeks a high level of return from a combination of
current income and capital appreciation by investing in a globally diversified
portfolio of high quality debt securities denominated in the U.S. Dollar and a
range of foreign currencies.
GROWTH AND INCOME PORTFOLIO-seeks reasonable current income and opportunities
for appreciation through investments primarily in dividend-paying common
stocks of good quality.
SHORT-TERM MULTI-MARKET PORTFOLIO-seeks the highest level of current income,
consistent with what the Fund's Adviser considers to be prudent investment
risk, that is available from a portfolio of high-quality debt securities
having remaining maturities of not more than three years.
U.S. GOVERNMENT/HIGH GRADE SECURITIES PORTFOLIO-seeks a high level of current
income consistent with preservation of capital by investing principally in a
portfolio of U.S. Government securities and other high grade debt securities.
TOTAL RETURN PORTFOLIO-seeks to achieve a high return through a combination of
current income and capital appreciation by investing in a diversified
portfolio of common and preferred stocks, senior corporate debt securities,
and U.S. Government and agency obligations, bonds and senior debt securities.
INTERNATIONAL PORTFOLIO-seeks to obtain a total return on its assets from
long-term growth of capital principally through a broad portfolio of
marketable securities of established non-United States companies, companies
participating in foreign economies with prospects for growth, and foreign
government securities.
MONEY MARKET PORTFOLIO-seeks safety of principal, maintenance of liquidity and
maximum current income by investing in a broadly diversified portfolio of
money market securities.
GLOBAL DOLLAR GOVERNMENT PORTFOLIO-seeks a high level of current income
through investing substantially all of its assets in U.S. and non-U.S. fixed
income securities denominated only in U.S. Dollars. As a secondary objective,
the Portfolio seeks capital appreciation.
NORTH AMERICAN GOVERNMENT INCOME PORTFOLIO-seeks the highest level of current
income, consistent with what the Fund's Adviser considers to be prudent
investment risk, that is available from a portfolio of debt securities issued
or guaranteed by the governments of the United States, Canada and Mexico,
their political subdivisions (including Canadian Provinces but excluding the
States of the United States), agencies, instrumentalities or
88
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONT'D)
- ------------------------------------------------------------------------------
authorities. The Portfolio seeks high current yields by investing in
government securities denominated in local currency and U.S. Dollars.
Normally, the Portfolio expects to maintain at least 25% of its assets in
securities denominated in the U.S. Dollar.
UTILITY INCOME PORTFOLIO-seeks current income and capital appreciation by
investing primarily in the equity and fixed-income securities of companies in
the "utilities industry." The Portfolio's investment objective and policies
are designed to take advantage of the characteristics and historical
performance of securities of utilities companies.
GROWTH PORTFOLIO-seeks long-term growth of capital by investing primarily in
common stocks and other equity securities.
WORLDWIDE PRIVATIZATION PORTFOLIO-seeks long-term capital appreciation by
investing principally in equity securities issued by enterprises that are
undergoing, or have undergone, privatization. The balance of the Portfolio's
investment portfolio will include equity securities of companies that are
believed by the Fund's Adviser to be beneficiaries of the privatization
process.
CONSERVATIVE INVESTORS PORTFOLIO-seeks the highest total return without, in
the view of the Fund's Adviser, undue risk to principal by investing in a
diversified mix of publicly traded equity and fixed-income securities.
GROWTH INVESTORS PORTFOLIO-seeks the highest total return consistent with what
the Fund's Adviser considers to be reasonable risk by investing in a
diversified mix of publicly traded equity and fixed-income securities.
TECHNOLOGY PORTFOLIO-seeks growth of capital through investment in companies
expected to benefit from advances in technology.
The Fund offers and sells its shares only to separate accounts of certain life
insurance companies, for the purpose of funding variable annuity contracts and
variable life insurance policies. Sales are made without a sales charge, at
each Portfolio's net asset value per share.
The following is a summary of significant accounting policies followed by the
Fund.
1. SECURITY VALUATION
Portfolio securities traded on a national securities exchange are 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. Listed securities
not traded and securities traded in the over-the-counter market, including
listed debt securities whose primary market is believed to be
over-the-counter, are valued at the mean between the most recent quoted bid
and asked prices provided by the principal market makers. Publicly traded
sovereign debt obligations are typically traded internationally on the
over-the-counter market. Readily marketable sovereign debt obligations and
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 value of such securities. Options are valued at market value or fair
value using methods determined by the Board of Directors. Securities for which
market quotations are not readily available are valued in good faith at fair
value using methods determined by the Board of Directors. Securities which
mature in 60 days or less are valued at amortized cost, which approximates
market value, unless this method does not represent fair value.
2. OPTION WRITING
When a Portfolio writes an option, an amount equal to the premium received by
the Portfolio is recorded as a liability and is subsequently adjusted to the
current market value of the option written. Premiums received from writing
options which expire unexercised are recorded by the Portfolio on the
expiration date as realized gains. The difference between the premium and the
amount paid on effecting a closing purchase transaction, including brokerage
commissions, is also recorded as a realized gain, or if the premium is less
than the amount paid for the closing purchase transaction, as a realized loss.
If a call option is
89
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONT'D)
- ------------------------------------------------------------------------------
exercised, the premium is added to the proceeds from the sale of the
underlying security or currency in determining whether the Portfolio has
realized a gain or loss. If a put option is exercised, the premium reduces the
cost basis of the security or currency purchased by the Portfolio. In writing
an option, the Portfolio bears the market risk of unfavorable changes in the
price of the security or currency underlying the written option. Exercise of
an option written by the Portfolio could result in the Portfolio selling or
buying a security or currency at a price different from the current market
value.
3. CURRENCY TRANSLATION
Assets and liabilities denominated in foreign currencies and commitments under
forward exchange currency contracts are translated into U.S. dollars at the
mean of the quoted bid and asked prices of such currencies against the U.S.
dollar. Purchases and sales of portfolio securities are translated at the
rates of exchange prevailing when such securities were acquired or sold.
Income and expenses are translated at rates of exchange prevailing when
accrued.
The Portfolios isolate that portion of the results of operations resulting
from changes in foreign exchange rates on investments from the fluctuations
arising from changes in market prices of securities held.
Net foreign exchange gains (losses) of $5,086, $17,671, $(47,104), $98,970,
$(118,477), $(1,050), $838, $(8,494), $(2,092) and $(456) for the Global Bond
Portfolio, Short-Term Multi-Market Portfolio, U.S. Government/High Grade
Securities Portfolio, International Portfolio, North American Government
Income Portfolio, Utility Income Portfolio, Growth Portfolio, Worldwide
Privatization Portfolio, Conservative Investors Portfolio and Growth
Investors Portfolio, respectively, represent foreign exchange gains and losses
from sales and maturities of securities, holding of foreign currencies,
options on foreign currencies, exchange gains or losses realized between the
trade and settlement dates on security transactions, and the difference
between the amounts of interest and dividends recorded on the Portfolio's
books and the U.S. dollar equivalent of the amounts actually received or paid.
Net currency gains and losses from valuing foreign currency denominated assets
and liabilities at period end exchange rates are reflected as a component of
unrealized appreciation (depreciation) on investments and foreign currency
denominated assets and liabilities.
4. ORGANIZATION EXPENSES
Organization expenses of each Portfolio have been deferred and are being
amortized on a straight-line basis as follows: PREMIER GROWTH PORTFOLIO
$27,506 through June 1997; Global Bond Portfolio $19,898 through July 1996;
Growth and Income Portfolio $22,263 through January 1996; Short-Term
Multi-Market Portfolio $22,263 through November 1995; U.S. Government/High
Grade Securities Portfolio $24,384 through September 1997; Total Return
Portfolio $24,384 through December 1997; International Portfolio $24,983
through December 1997; Money Market Portfolio $24,983 through December 1997;
Global Dollar Government Portfolio $16,723 through April 1999; North American
Government Income Portfolio $21,570 through April 1999; Utility Income
Portfolio $15,299 through April 1999; Growth Portfolio $10,000 through
September 1999; Worldwide Privatization Portfolio $10,000 through September
1999; Conservative Investors Portfolio $10,000 through October 1999, Growth
Investors Portfolio $10,000 through October 1999 and Technology Portfolio
$21,500 through January 2001.
5. TAXES
It is the Fund's policy to meet the requirements of the Internal Revenue Code
applicable to regulated investment companies and to distribute all of its
investment company taxable income and net realized gains, if applicable, to
shareholders. Therefore, no provisions for federal income taxes are required.
6. INVESTMENT INCOME AND SECURITY TRANSACTIONS
Interest income is accrued daily. Dividend income is recorded on the
ex-dividend date. Security transactions are accounted for on the date
securities are purchased or
90
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONT'D)
- ------------------------------------------------------------------------------
sold. Security gains and losses are determined on the identified cost basis.
The Fund accretes discounts as adjustments to interest income.
7. DIVIDENDS AND DISTRIBUTIONS
Each Portfolio declares and distributes dividends and distributions from net
investment income and net realized gains, respectively, if any, at least
annually, except for dividends on the Money Market Portfolio, which are
declared daily and paid monthly. Income dividends and capital gain
distributions are determined in accordance with income tax regulations.
- ------------------------------------------------------------------------------
NOTE B - ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under the terms of an investment advisory agreement, each Portfolio pays
Alliance Capital Management L.P., (the "Adviser"), an investment advisory fee,
based on average net assets at the following annual rates: Premier Growth
Portfolio, 1%; Global Bond Portfolio, .65 of 1%; Growth and Income Portfolio,
.625 of 1%; Short-Term Multi-Market Portfolio, .55 of 1%; U.S. Government/High
Grade Securities Portfolio, .60 of 1%; Total Return Portfolio, .625 of 1%;
International Portfolio, 1%; Money Market Portfolio, .50 of 1%; Global Dollar
Government Portfolio, .75 of 1%; North American Government Income Portfolio,
.65 of 1%; Utility Income Portfolio, .75 of 1%; Growth Portfolio, .75 of 1%;
Worldwide Privatization Portfolio, 1%; Conservative Investors Portfolio, .75
of 1%; Growth Investors Portfolio, .75 of 1% and Technology Portfolio, 1%.
Such fee is accrued daily and paid monthly. For the Global Bond Portfolio, the
adviser has retained, under a sub-advisory agreement, a sub-adviser, AIGAM
International Ltd., an affiliate of American International Group, Inc.
The Adviser voluntarily agreed to reimburse each Portfolio based on their
respective average net assets for expenses exceeding .95% for the six months
ended June 30, 1996. Expense reimbursements, if any, are accrued daily and
paid monthly. For the six months ended June 30, 1996, such reimbursements
amounted to $81,046, $24,775, $1,981, $38,583, $12,693, $28,286, $145,378,
$1,153, $32,867, $31,293, $33,018, $8,159, $45,006. $33,126, $39,265 and
$20,507 for the PREMIER GROWTH PORTFOLIO, the Global Bond Portfolio, the
Growth and Income Portfolio, the Short-Term Multi-Market Portfolio, the U.S.
Government/High Grade Securities Portfolio, the Total Return Portfolio, the
International Portfolio, the Money Market Portfolio, the Global Dollar
Government Portfolio, the North American Government Income Portfolio, the
Utility Income Portfolio, the Growth Portfolio, the Worldwide Privatization
Portfolio, the Conservative Investors Portfolio, the Growth Investors
Portfolio and the Technology Portfolio, respectively. In addition, for the six
months ended June 30, 1996, the Advisers agreed to waive the Global Bond
Portfolio's investment advisory fee in the amount of $24,775.
Each Portfolio compensates Alliance Fund Services, Inc. (a wholly-owned
subsidiary of the Adviser) for providing personnel and facilities to perform
transfer agency services for the Portfolio. Such compensation amounted to $563
for the PREMIER GROWTH PORTFOLIO, the Global Bond Portfolio, the Growth and
Income Portfolio, the Short-Term Multi-Market Portfolio, the U.S.
Government/High Grade Securities Portfolio, the Total Return Portfolio, the
International Portfolio, the Money Market Portfolio, the Global Dollar
Government Portfolio, the North American Government Income Portfolio, the
Utility Income Portfolio, the Growth Portfolio, the Worldwide Privatization
Portfolio, the Conservative Investors Portfolio, the Growth Investors
Portfolio and the Technology Portfolio, respectively, for the six months ended
June 30, 1996.
Brokerage commissions paid for the six months ended June 30, 1996 on
securities transactions amounted to $51,330, $101,590, $73,630, $10,895,
$13,725, $126,803, $22,018, $11,148, $16,389 and $4,038 on the Premier Growth
Portfolio, the Growth and Income Portfolio, the International Portfolio, the
Total Return Portfolio, the Utility Income Portfolio, the Growth Portfolio,
the Worldwide Privatization Portfolio, the Conservative Investors Portfolio,
the Growth Investors Portfolio and the Technology Portfolio, respectively,
none of which was paid to affiliated brokers.
91
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONT'D)
- ------------------------------------------------------------------------------
NOTE C - INVESTMENT TRANSACTIONS
Purchases and sales of investment securities (excluding short-term
investments) for the six months ended June 30, 1996 were as follows:
<TABLE>
<CAPTION>
U.S. Government/
Premier Global Growth and Short-Term High Grade
Growth Bond Income Multi-Market Securities
Portfolio Portfolio Portfolio Portfolio Portfolio
----------- ----------- ----------- ---------- -----------
<S> <C> <C> <C> <C> <C>
PURCHASES
Stocks and debt obligations .. $43,143,950 $14,594,261 $57,223,716 $2,755,816 $ 4,925,779
U.S. Government and government
agency obligations ......... -0- 5,268,445 -0- 441,915 14,055,650
SALES
Stocks and debt obligations .. 4,656,064 9,205,246 17,876,160 1,435,932 4,923,784
U.S. Government and government
agency obligations ......... -0- 5,872,906 -0- 194,563 6,472,297
</TABLE>
<TABLE>
<CAPTION>
Global North American
Total Dollar Government Utility
Return International Government Income Income
Portfolio Portfolio Portfolio Portfolio Portfolio
---------- ----------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
PURCHASES
Stocks and debt obligations .. $7,402,954 $20,529,076 $2,681,210 $1,111,295 $6,426,869
U.S. Government and government
agency obligations ......... 3,692,485 -0- -0- -0- -0-
SALES
Stocks and debt obligations .. 2,209,098 7,602,904 369,170 293,458 1,940,589
U.S. Government and government
agency obligations ......... -0- -0- 591,219 -0- -0-
</TABLE>
<TABLE>
<CAPTION>
Worldwide Conservative Growth
Growth Privatization Investors Investors Technology
Portfolio Portfolio Portfolio Portfolio Portfolio(a)
----------- ---------- ----------- ---------- ----------
<S> <C> <C> <C> <C> <C>
PURCHASES
Stocks and debt obligations .. $64,926,629 $7,200,939 $ 8,508,388 $7,783,111 $7,194,017
U.S. Government and government
agency obligations ......... -0- -0- 16,016,014 3,301,112 -0-
SALES
Stocks and debt obligations .. 28,386,281 1,706,508 2,433,906 3,458,982 376,991
U.S. Government and government
agency obligations ......... -0- -0- 12,048,189 3,185,536 -0-
</TABLE>
(a) Commencement of operations, January 11, 1996.
92
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONT'D)
- ------------------------------------------------------------------------------
At June 30, 1996, the cost of investments for federal income tax purposes and
the tax basis gross unrealized appreciation, depreciation and net unrealized
appreciation/(depreciation) were as follows:
<TABLE>
<CAPTION>
Net
Gross Unrealized Unrealized
--------------------------- Appreciation
Portfolio Cost Appreciation Depreciation (Depreciation)
- --------- ----------- ------------ ------------ ------------
<S> <C> <C> <C> <C>
Premier Growth ...................... $58,886,948 $ 7,805,948 $(1,904,294) $ 5,901,654
Global Bond ......................... 14,858,344 220,230 (221,423) (1,193)
Growth and Income ................... 77,803,013 6,756,130 (1,437,054) 5,319,076
Short-Term Multi-Market ............. 5,071,626 24,939 (31,735) (6,796)
U.S. Government/High Grade Securities 25,760,084 48,037 (433,916) (385,879)
Total Return ........................ 17,538,345 789,065 (288,105) 500,960
International ....................... 30,286,520 2,001,611 (477,284) 1,524,327
Global Dollar Government ............ 4,886,835 361,011 (83,482) 277,529
North American Government Income .... 10,533,686 612,211 (62,060) 550,151
Utility Income ...................... 11,746,598 629,833 (272,096) 357,737
Growth .............................. 82,597,110 10,230,648 (2,184,033) 8,046,615
Worldwide Privatization ............. 11,235,489 1,146,872 (357,801) 789,071
Conservative Investors .............. 17,298,033 280,327 (208,833) 71,494
Growth Investors .................... 9,252,757 349,308 (205,373) 143,935
Technology .......................... 12,910,944 351,931 (637,193) (285,262)
</TABLE>
At December 31, 1995, for federal income tax purposes, the Short-Term
Multi-Market and Worldwide Privatization Portfolios had net capital loss
carryforwards of $1,102,009 (of which $9,593 expires in 2001, $150,822 expires
in 2002, and $941,594 expires in 2003) and $43,735 which expires 2003,
respectively.
The Global Bond, Short-Term Multi-Market, U.S. Government/High Grade
Securities, International and North American Government Income Portfolios
enter into forward exchange currency contracts in order to hedge their
exposure to changes in foreign currency exchange rates on their foreign
portfolio holdings. A forward contract is a commitment to purchase or sell a
foreign currency at a future date at a negotiated forward rate. The Portfolios
may enter into contracts to deliver or receive foreign currency it will
receive from or require for its normal investment activities. It may also use
contracts in a manner intended to protect foreign currency-denominated
securities from declines in value due to unfavorable exchange rate movements.
The gain or loss arising from the difference between the original contract and
the closing of such contract is included in realized gains or losses from
foreign currency transactions. Fluctuations in the value of forward exchange
currency contracts are recorded for financial reporting purposes as unrealized
gains or losses by the Portfolio. The Fund's custodian will place and maintain
cash not available for investment or government securities in a separate
account of the Fund having a value equal to the aggregate amount of the Fund's
commitments under forward exchange currency contracts entered into with
respect to position hedges. Risks may arise from the potential inability of a
counterparty to meet the terms of a contract and from unanticipated movements
in the value of a foreign currency relative to the U.S. dollar. At June 30,
1996, the outstanding forward exchange currency contracts were as follows:
93
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONT'D)
- ------------------------------------------------------------------------------
GLOBAL BOND PORTFOLIO:
<TABLE>
<CAPTION>
Contract Value on U.S.$ Unrealized
Amount Origination Current Appreciation
FOREIGN CURRENCY BUY CONTRACTS (000) Date Value (Depreciation)
----- ---------- ---------- -------
<S> <C> <C> <C> <C>
Canadian Dollars, expiring 11/04/96 ........ 800 $ 582,666 $ 587,530 $ 4,864
FOREIGN CURRENCY SALE CONTRACTS
Australian Dollars, expiring 8/01/96 ....... 900 707,940 705,853 2,087
Canadian Dollars, expiring 11/04/96-11/08/96 1,800 1,325,700 1,322,001 3,699
Deutsche Marks, expiring 7/24/96 ........... 2,300 1,512,561 1,514,984 (2,423)
-------
$ 8,227
=======
</TABLE>
SHORT-TERM MULTI-MARKET PORTFOLIO:
<TABLE>
<CAPTION>
Contract Value on U.S.$ Unrealized
Amount Origination Current Appreciation
FOREIGN CURRENCY BUY CONTRACTS (000) Date Value (Depreciation)
------ -------- --------- -------
<S> <C> <C> <C> <C>
Deutsche Marks, expiring 7/25/96 ............ 149 $ 97,716 $ 98,391 $ 675
Japanese Yen, expiring 8/07/96 .............. 10,000 93,066 91,967 (1,099)
Spanish Pesetas, expiring 7/25/96 ........... 12,000 94,695 93,605 (1,090)
Swedish Krona, expiring 7/25/96 ............. 639 93,100 96,437 3,337
FOREIGN CURRENCY SALE CONTRACTS
British Pounds, expiring 8/27/96 ............ 49 76,083 76,692 (609)
Canadian Dollars, expiring 9/18/96 .......... 274 201,105 201,258 (153)
Deutsche Marks, expiring 7/25/96-9/20/96 .... 938 619,122 618,879 243
Finnish Markka, expiring 8/20/96 ............ 1,178 255,216 255,105 111
French Francs, expiring 8/26/96 ............. 384 74,489 74,773 (284)
Italian Lira, expiring 8/16/96............... 150,000 97,153 97,515 (362)
Japanese Yen, expiring 8/07/96 .............. 22,840 219,996 210,053 9,943
Spanish Pesetas, expiring 7/25/96 ........... 25,216 195,532 196,693 (1,161)
Swedish Krona, expiring 7/22/96-9/24/96 ..... 3,398 511,496 513,127 (1,631)
Swiss Francs, expiring 9/04/96 .............. 744 600,371 598,511 1,860
-------
$ 9,780
=======
</TABLE>
U.S. GOVERNMENT/HIGH GRADE SECURITIES PORTFOLIO:
<TABLE>
<CAPTION>
Contract Value on U.S.$ Unrealized
Amount Origination Current Appreciation
FOREIGN CURRENCY SALE CONTRACTS (000) Date Value (Depreciation)
----- -------- -------- -------
<S> <C> <C> <C> <C>
Australian Dollars, expiring 7/15/96 . 767 $606,462 $602,482 $ 3,980
Canadian Dollars, expiring 7/15/96 ... 1,100 805,460 805,809 (349)
--------
$ 3,631
========
</TABLE>
94
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONT'D)
- ------------------------------------------------------------------------------
INTERNATIONAL PORTFOLIO:
<TABLE>
<CAPTION>
Contract Value on U.S.$ Unrealized
Amount Origination Current Appreciation
FOREIGN CURRENCY BUY CONTRACTS (000) Date Value (Depreciation)
--------- ---------- --------- --------
<S> <C> <C> <C> <C>
Deutsche Marks, expiring 7/31/96 ............ 450 $ 297,177 $ 296,535 $ (642)
French Francs, expiring 8/30/96 ............. 1,600 311,727 311,978 251
Japanese Yen, expiring 7/31/96............... 135,000 1,293,599 1,240,303 (53,296)
FOREIGN CURRENCY SALE CONTRACTS
Deutsche Marks, expiring 7/31/96 ............ 900 593,276 593,070 206
French Francs, expiring 8/30/96 ............. 3,100 595,010 604,458 (9,448)
Japanese Yen, expiring 7/31/96............... 135,000 1,290,933 1,240,303 50,630
--------
$(12,299)
========
</TABLE>
NORTH AMERICAN GOVERNMENT INCOME PORTFOLIO:
<TABLE>
<CAPTION>
Contract Value on U.S.$
Amount Origination Current Unrealized
FOREIGN CURRENCY SALE CONTRACTS (000) Date Value Appreciation
------- ---------- ---------- ------
<S> <C> <C> <C> <C>
Canadian Dollars, expiring 8/12/96-8/30/96 1,600 $1,174,686 $1,173,110 $1,576
======
</TABLE>
- ------------------------------------------------------------------------------
NOTE D - CAPITAL STOCK
There are 900,000,000 shares of capital stock, $.001 par value per share of
the Fund authorized. Transactions in capital stock were as follows:
<TABLE>
<CAPTION>
PREMIER GROWTH PORTFOLIO
--------------------------------------------------------------
Shares Amount
---------------------------- ------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 1996 December 31, June 30, 1996 December 31,
(Unaudited) 1995 (Unaudited) 1995
---------- ---------- ------------ ------------
<S> <C> <C> <C> <C>
Shares sold .............................. 1,814,729 2,743,464 $ 32,992,579 $ 42,977,782
Shares issued in reinvestment of dividends
and distributions ...................... 1,261,734 24,754 17,639,042 371,559
Shares redeemed .......................... (54,185) (4,167,864) (964,035) (71,560,743)
---------- ---------- ------------ ------------
Net increase (decrease) .................. 3,022,278 (1,399,646) $ 49,667,586 $(28,211,402)
============ =========== ============ ============
</TABLE>
<TABLE>
<CAPTION>
Global Bond Portfolio
---------------------------------------------------------
Shares Amount
---------------------------- ----------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 1996 December 31, June 30, 1996 December 31,
(Unaudited) 1995 (Unaudited) 1995
-------- -------- ----------- -----------
<S> <C> <C> <C> <C>
Shares sold .............................. 322,115 232,590 $ 3,864,773 $ 2,666,899
Shares issued in reinvestment of dividends
and distributions ...................... 122,713 6,352 1,344,941 72,090
Shares redeemed .......................... (20,828) (31,126) (249,964) (336,122)
-------- -------- ----------- -----------
Net increase ............................. 424,000 207,816 $ 4,959,750 $ 2,402,867
======== ======= =========== ============
</TABLE>
95
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONT'D)
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Growth and Income Portfolio
--------------------------------------------------------------
Shares Amount
----------------------------- ------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 1996 December 31, June 30, 1996 December 31,
(Unaudited) 1995 (Unaudited) 1995
---------- ---------- ------------ ------------
<S> <C> <C> <C> <C>
Shares sold .............................. 2,248,967 2,176,403 $ 36,943,806 $ 31,126,890
Shares issued in reinvestment of dividends
and distributions ...................... 897,016 79,180 12,943,948 1,083,182
Shares redeemed .......................... (106,643) (3,114,447) (1,747,576) (48,121,948)
---------- ---------- ------------ ------------
Net increase (decrease) .................. 3,039,340 (858,864) $ 48,140,178 $(15,911,876)
========== ========== ============ ============
</TABLE>
<TABLE>
<CAPTION>
Short-Term Multi-Market Portfolio
--------------------------------------------------------------
Shares Amount
----------------------------- ------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 1996 December 31, June 30, 1996 December 31,
(Unaudited) 1995 (Unaudited) 1995
---------- ---------- ------------ ------------
<S> <C> <C> <C> <C>
Shares sold .............................. 305,314 485,653 $ 3,312,671 $ 4,901,077
Shares issued in reinvestment of dividends
and distributions ...................... 36,156 -0- 369,515 -0-
Shares redeemed .......................... (163,177) (2,299,084) (1,770,877) (23,525,996)
---------- ---------- ------------ ------------
Net increase (decrease) .................. 178,293 (1,813,431) $ 1,911,309 $(18,624,919)
========== ========== ============ ============
</TABLE>
<TABLE>
<CAPTION>
U.S. Government/High Grade Securities Portfolio
--------------------------------------------------------------
Shares Amount
----------------------------- ------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 1996 December 31, June 30, 1996 December 31,
(Unaudited) 1995 (Unaudited) 1995
---------- ---------- ------------ ------------
<S> <C> <C> <C> <C>
Shares sold .............................. 997,428 1,256,331 $ 11,320,520 $ 13,737,462
Shares issued in reinvestment of dividends
and distributions ...................... 84,596 13,708 911,097 149,970
Shares redeemed .......................... (220,112) (330,322) (2,473,990) (3,618,557)
---------- ---------- ------------ ------------
Net increase ............................. 861,912 939,717 $ 9,757,627 $ 10,268,875
========== ========== ============ ============
</TABLE>
<TABLE>
<CAPTION>
Total Return Portfolio
--------------------------------------------------------------
Shares Amount
----------------------------- ------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 1996 December 31, June 30, 1996 December 31,
(Unaudited) 1995 (Unaudited) 1995
---------- ---------- ------------ ------------
<S> <C> <C> <C> <C>
Shares sold .............................. 763,189 610,625 $ 9,986,502 $ 7,402,831
Shares issued in reinvestment of dividends
and distributions ...................... 10,075 866 132,798 10,089
Shares redeemed .......................... (22,999) (39,552) (302,579) (472,522)
---------- ---------- ------------ ------------
Net increase ............................. 750,265 571,939 $ 9,816,721 $ 6,940,398
========== ========== ============ ============
</TABLE>
96
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONT'D)
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
International Portfolio
--------------------------------------------------------------
Shares Amount
----------------------------- ------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 1996 December 31, June 30, 1996 December 31,
(Unaudited) 1995 (Unaudited) 1995
---------- ---------- ------------ ------------
<S> <C> <C> <C> <C>
Shares sold .............................. 942,440 761,751 $ 13,704,153 $ 10,153,923
Shares issued in reinvestment of dividends
and distributions ...................... 27,148 4,039 400,714 52,908
Shares redeemed .......................... (36,843) (154,693) (538,202) (2,057,700)
---------- ---------- ------------ ------------
Net increase ............................. 932,745 611,097 $ 13,566,665 $ 8,149,131
========== ========== ============ ============
</TABLE>
<TABLE>
<CAPTION>
Money Market Portfolio
--------------------------------------------------------------
Shares Amount
----------------------------- ------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 1996 December 31, June 30, 1996 December 31,
(Unaudited) 1995 (Unaudited) 1995
---------- ---------- ------------ ------------
<S> <C> <C> <C> <C>
Shares sold .............................. 74,453,382 72,470,594 $ 74,453,382 $ 72,470,594
Shares issued in reinvestment of dividends 951,033 799,144 951,033 799,144
Shares redeemed .......................... (50,555,311) (52,076,451) (50,555,311) (52,076,451)
---------- ---------- ------------ ------------
Net increase ............................. 24,849,104 21,193,287 $ 24,849,104 $ 21,193,287
========== ========== ============ ============
</TABLE>
<TABLE>
<CAPTION>
Global Dollar Government Portfolio
--------------------------------------------------------------
Shares Amount
----------------------------- ------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 1996 December 31, June 30, 1996 December 31,
(Unaudited) 1995 (Unaudited) 1995
---------- ---------- ------------ ------------
<S> <C> <C> <C> <C>
Shares sold .............................. 134,082 234,218 $ 1,675,649 $ 2,508,397
Shares issued in reinvestment of dividends
and distributions ...................... 17,037 2,647 204,611 28,002
Shares redeemed .......................... (30,278) (37,201) (382,269) (398,577)
---------- ---------- ------------ ------------
Net increase ............................. 120,841 199,664 $ 1,497,991 $ 2,137,822
========== ========== ============ ============
</TABLE>
<TABLE>
<CAPTION>
North American Government Income Portfolio
--------------------------------------------------------------
Shares Amount
----------------------------- ------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 1996 December 31, June 30, 1996 December 31,
(Unaudited) 1995 (Unaudited) 1995
---------- ---------- ------------ ------------
<S> <C> <C> <C> <C>
Shares sold .............................. 424,921 528,380 $ 4,678,134 $ 4,987,369
Shares issued in reinvestment of dividends
and distributions ...................... 4,805 15,806 53,576 144,624
Shares redeemed .......................... (117,143) (287,428) (1,286,730) (2,656,476)
---------- ---------- ------------ ------------
Net increase ............................. 312,583 256,758 $ 3,444,980 $ 2,475,517
========== ========== ============ ============
</TABLE>
97
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONT'D)
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Utility Income Portfolio
--------------------------------------------------------------
Shares Amount
----------------------------- ------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 1996 December 31, June 30, 1996 December 31,
(Unaudited) 1995 (Unaudited) 1995
---------- ---------- ------------ ------------
<S> <C> <C> <C> <C>
Shares sold .............................. 510,810 443,081 $ 6,129,486 $ 4,987,939
Shares issued in reinvestment of dividends
and distributions ...................... 20,206 1,762 237,824 19,131
Shares redeemed .......................... (42,828) (50,420) (514,150) (557,510)
---------- ---------- ------------ ------------
Net increase ............................. 488,188 394,423 $ 5,853,160 $ 4,449,560
========== ========== ============ ============
</TABLE>
<TABLE>
<CAPTION>
Growth Portfolio
--------------------------------------------------------------
Shares Amount
----------------------------- ------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 1996 December 31, June 30, 1996 December 31,
(Unaudited) 1995 (Unaudited) 1995
---------- ---------- ------------ ------------
<S> <C> <C> <C> <C>
Shares sold .............................. 2,589,102 2,718,920 $ 39,429,079 $ 35,309,744
Shares issued in reinvestment of dividends
and distributions ...................... 111,233 874 1,737,458 10,912
Shares redeemed .......................... (66,087) (64,342) (1,029,765) (844,007)
---------- ---------- ------------ ------------
Net increase ............................. 2,634,248 2,655,452 $ 40,136,772 $ 34,476,649
========== ========== ============ ============
</TABLE>
<TABLE>
<CAPTION>
Worldwide Privatization Portfolio
--------------------------------------------------------------
Shares Amount
----------------------------- ------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 1996 December 31, June 30, 1996 December 31,
(Unaudited) 1995 (Unaudited) 1995
---------- ---------- ------------ ------------
<S> <C> <C> <C> <C>
Shares sold .............................. 433,049 430,445 $ 5,248,147 $ 4,671,434
Shares issued in reinvestment of dividends
and distributions ...................... 7,424 662 90,574 7,193
Shares redeemed .......................... (14,042) (10,458) (167,500) (114,064)
---------- ---------- ------------ ------------
Net increase ............................. 426,431 420,649 $ 5,171,221 $ 4,564,563
========== ========== ============ ============
</TABLE>
<TABLE>
<CAPTION>
Conservative Investors Portfolio
--------------------------------------------------------------
Shares Amount
----------------------------- ------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 1996 December 31, June 30, 1996 December 31,
(Unaudited) 1995 (Unaudited) 1995
---------- ---------- ------------ ------------
<S> <C> <C> <C> <C>
Shares sold .............................. 909,803 600,037 $ 10,428,495 $ 6,706,928
Shares issued in reinvestment of dividends
and distributions ...................... 16,195 328 183,325 3,620
Shares redeemed .......................... (52,772) (39,275) (604,870) (427,125)
---------- ---------- ------------ ------------
Net increase ............................. 873,226 561,090 $ 10,006,950 $ 6,283,423
========== ========== ============ ============
</TABLE>
98
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONT'D)
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Growth Investors Portfolio
--------------------------------------------------------------
Shares Amount
----------------------------- ------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 1996 December 31, June 30, 1996 December 31,
(Unaudited) 1995 (Unaudited) 1995
---------- ---------- ------------ ------------
<S> <C> <C> <C> <C>
Shares sold .............................. 378,718 407,129 $ 4,525,029 $ 4,571,141
Shares issued in reinvestment of dividends
and distributions ...................... 6,037 83 72,390 903
Shares redeemed .......................... (22,684) (20,469) (271,004) (223,991)
---------- ---------- ------------ ------------
Net increase ............................. 362,071 386,743 $ 4,326,415 $ 4,348,053
========== ========== ============ ============
</TABLE>
<TABLE>
<CAPTION>
Technology Portfolio
-------------------------
Shares Amount
-------- --------
January 11, 1996 (a)
to June 30, 1996
(Unaudited)
-------------------------
<S> <C> <C>
Shares sold......................... 1,232,682 $12,447,277
Shares redeemed..................... (4,100) (41,218)
---------- ------------
Net increase........................ 1,228,582 $12,406,059
========== ============
</TABLE>
(a) Commencement of operations.
- ------------------------------------------------------------------------------
NOTE E - RECLASSIFICATION OF COMPONENTS OF NET ASSETS
As a result of permanent differences between accounting and tax regulations in
the treatment of foreign currency transactions, short-term gains and tax
returns of capital distributions, the portfolios made the following
reclassifications during the year ended December 31, 1995:
<TABLE>
<CAPTION>
U.S. Government/
Premier Global Growth and Short-Term High Grade
Growth Bond Income Multi-Market Securities
Portfolio Portfolio Portfolio Portfolio Portfolio
-------- ---------- --------- ---------- ---------
<S> <C> <C> <C> <C> <C>
Paid-in capital ................... $ -0- $ -0- $ (1,714) $ (2,334) $ -0-
Undistributed net investment income 932 470,176 (12,298) (936,055) 23,001
Undistributed net realized gains .. (932) (470,176) 14,012 938,389 (23,001)
</TABLE>
<TABLE>
<CAPTION>
North American
Government Utility Worldwide
International Income Income Growth Privatization
Portfolio Portfolio Portfolio Portfolio Portfolio
--------- --------- -------- --------- ---------
<S> <C> <C> <C> <C> <C>
Paid-in capital.............. $ -0- $ -0- $ -0- $ -0- $ -0-
Undistributed net investment income 5,652 (577,975) 136 (5,159) (5,085)
Undistributed net realized gains .. (5,652) 577,975 (136) 5,159 5,085
</TABLE>
Net investment income, net realized gains and net assets were not affected by
the reclassifications.
99
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PREMIER GROWTH PORTFOLIO
----------------------------------------------------------------------
Six Months Ended Year Ended December 31, June 26, 1992(a)
June 30, 1996 ------------------------------------ to
(Unaudited) 1995 1994 1993 December 31, 1992
----------- ------------- ---------- ---------- -----------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ....................... $ 17.80 $ 12.37 $ 12.79 $ 11.38 $ 10.00
--------- --------- -------- --------- ---------
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b) ................................ .05(c) .09(c) .03(c) -0- .06(c)
Net realized and unrealized gain (loss) on investments ... 1.49 5.44 (.41) 1.43 1.32
--------- --------- -------- --------- ---------
Net increase (decrease) in net asset value from operations 1.54 5.53 (.38) 1.43 1.38
--------- --------- -------- --------- ---------
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income ..................... (.10) (.03) (.01) (.01) -0-
Distributions from net realized gains .................... (5.37) (.07) (.03) (.01) -0-
--------- --------- -------- --------- ---------
Total dividends and distributions ........................ (5.47) (.10) (.04) (.02) -0-
--------- --------- -------- --------- ---------
Net asset value, end of period ........................... $ 13.87 $ 17.80 $ 12.37 $ 12.79 $ 11.38
========== ========== ======== ========= =========
TOTAL RETURN
Total investment return based on net asset value (d) ..... 8.40% 44.85% (2.96)% 12.63% 13.80%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) ................ $ 64,742 $ 29,278 $ 37,669 $ 13,659 $ 3,760
Ratio to average net assets of:
Expenses, net of waivers and reimbursements ............. .95%(e) .95% .95% 1.18% .95%(e)
Expenses, before waivers and reimbursements ............. 1.30%(e) 1.19% 1.40% 2.05% 4.20%(e)
Net investment income ................................... .53%(e) .55% .42% .22% .96%(e)
Portfolio turnover rate .................................. 11% 97% 38% 42% 14%
Average commission rate paid (f) ......................... $ .0691 -0- -0- -0- -0-
</TABLE>
<TABLE>
<CAPTION>
Global Bond Portfolio
-------------------------------------------------------------------------------
Six Months Ended Year Ended December 31, July 15, 1991(a)
June 30, 1996 ----------------------------------------------- to
(Unaudited) 1995 1994 1993 1992 December 31, 1991
------------ ----------- ---------- ---------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ........... $ 12.15 $ 9.82 $ 11.33 $ 11.24 $ 11.10 $ 10.00
--------- --------- -------- --------- ---------
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b) .................... .36(c) .69(c) .57(c) .77(c) .64 .28
Net realized and unrealized gain (loss) on
investments and foreign currency transactions (.34) 1.73 (1.16) .43 (.13) .82
--------- --------- -------- --------- ---------
Net increase (decrease) in net asset value
from operations ............................. .02 2.42 (.59) 1.20 .51 1.10
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income ......... (.84) (.09) (.62) (.85) (.28) -0-
Distributions from net realized gains ........ (.25) -0- (.30) (.26) (.09) -0-
--------- --------- -------- --------- --------- --------
Total dividends and distributions ............ (1.09) (.09) (.92) (1.11) (.37) -0-
--------- --------- -------- --------- --------- ---------
Net asset value, end of period ............... $ 11.08 $ 12.15 $ 9.82 $ 11.33 $ 11.24 $ 11.10
========== ========= ========= ========= ============ ========
TOTAL RETURN
Total investment return based on
net asset value (d) ......................... .24% 24.73% (5.16)% 11.15% 4.87% 11.00%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) .... $ 15,229 $ 11,553 $ 7,298 $ 6,748 $ 5,876 $ 5,551
Ratio to average net assets of:
Expenses, net of waivers and reimbursements . .95%(e) .95% .95% 1.50% 1.50% 1.50%(e)
Expenses, before waivers and reimbursements . 1.32%(e) 1.77% 2.05% 1.50% 1.97% 2.15%(e)
Net investment income ....................... 6.00%(e) 6.22% 6.01% 4.85% 5.85% 5.77%(e)
Portfolio turnover rate ...................... 118% 262% 102% 125% 78% 25%
</TABLE>
- ------------------------------------------------------------------------------
See footnote summary on page 108
100
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Growth and Income Portfolio
---------------------------------------------------------------------------------
Six Months Ended Year Ended December 31, July 15, 1991(a)
June 30, 1996 ------------------------------------------------ to
(Unaudited) 1995 1994 1993 1992 December 31, 1991
----------- ----------- ----------- ----------- --------- ------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ......... $ 15.79 $ 11.85 $ 12.18 $ 10.99 $ 10.35 $ 10.00
--------- --------- --------- -------- --------- ---------
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b) .................. .13(c) .27(c) .10(c) .01(c) .10(c) .35(c)
Net realized and unrealized gain (loss) on
investments ............................... 1.37 3.94 (.16) 1.27 .71 -0-
--------- --------- --------- -------- --------- ---------
Net increase (decrease) in net asset value
from operations ........................... 1.50 4.21 (.06) 1.28 .81 .35
--------- --------- --------- -------- --------- ---------
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income ....... (.25) (.13) (.10) (.06) (.17) -0-
Distributions from net realized gains ...... (2.56) (.14) (.17) (.03) -0- -0-
--------- --------- --------- -------- --------- ---------
Total dividends and distributions .......... (2.81) (.27) (.27) (.09) (.17) -0-
--------- --------- --------- -------- --------- ---------
Net asset value, end of period ............. $ 14.48 $ 15.79 $ 11.85 $ 12.18 $ 10.99 $ 10.35
========= ========== ========== ======== ========= =========
TOTAL RETURN
Total investment return based on
net asset value (d) ....................... 9.56% 35.76% (.35)% 11.69% 7.92% 3.50%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) .. $ 82,522 $ 41,993 $ 41,702 $ 22,756 $ 7,803 $ 1,431
Ratio to average net assets of:
Expenses, net of waivers and reimbursements .85%(e) .79% .90% 1.18% .99% 1.79%(e)
Expenses, before waivers and reimbursements .85%(e) .79% .91% 1.28% 2.09% 9.43%(e)
Net investment income ..................... 1.65%(e) 1.95% 1.71% 1.76% 2.42% 3.59%(e)
Portfolio turnover rate .................... 31% 150% 95% 69% 49% 0%
Average commission rate paid (f) ........... $ .0661 -0- -0- -0- -0- -0-
</TABLE>
<TABLE>
<CAPTION>
Short-Term Multi-Market Portfolio
-------------------------------------------------------------------------------
Six Months Ended Year Ended December 31,
June 30, 1996 ---------------------------------------------------------------
(Unaudited) 1995 1994 1993 1992 1991
---------- ----------- ---------- ----------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ........... $ 10.58 $ 9.91 $ 11.07 $ 10.77 $ 10.68 $ 10.03
--------- --------- --------- -------- --------- ---------
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b) .................... .35(c) .82(c) .47(c) .28(c) .63(c) .36
Net realized and unrealized gain (loss) on
investments and foreign currency transactions .16 (.15) (1.16) .43 (.54) .34
--------- --------- --------- -------- --------- ---------
Net increase (decrease) in net asset value
from operations ............................. .51 .67 (.69) .71 .09 .70
--------- --------- --------- -------- --------- ---------
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income ......... (.82) -0- (.46) (.41) -0- (.03)
Distributions from net realized gains ........ -0- -0- -0- -0- -0- (.02)
Return of capital ............................ -0- -0- (.01) -0- -0- -0-
--------- --------- --------- -------- --------- ---------
Total dividends and distributions ............ (.82) -0- (.47) (.41) -0- (.05)
--------- --------- --------- -------- --------- ---------
Net asset value, end of period ............... $ 10.27 $ 10.58 $ 9.91 $ 11.07 $ 10.77 $ 10.68
======== ========== ========== ========= ========= ========
TOTAL RETURN
Total investment return based on
net asset value (d) ......................... 4.88% 6.76% (6.51)% 6.62% .84% 7.01%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) .... $ 4,893 $ 3,152 $ 20,921 $ 23,560 $ 14,841 $ 5,858
Ratio to average net assets of:
Expenses, net of waivers and reimbursements . .95%(e) .95% .94% 1.17% .99% 1.79%
Expenses, before waivers and reimbursements . 2.78%(e) 1.30% .99% 1.24% 1.66% 4.40%
Net investment income ....................... 6.47%(e) 8.22% 6.52% 6.39% 7.18% 7.53%
Portfolio turnover rate ...................... 76% 379% 134% 210% 153% 51%
</TABLE>
- ------------------------------------------------------------------------------
See footnote summary on page 108
101
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S. Government/High Grade Securities Portfolio
----------------------------------------------------------------------
Six Months Ended Year Ended December 31, September 17, 1992(a)
June 30, 1996 --------------------------------- to
(Unaudited) 1995 1994 1993 December 31, 1992
--------- -------- ------- -------- ---------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ....................... $ 11.66 $ 9.94 $ 10.72 $ 9.89 $ 10.00
--------- --------- -------- --------- ---------
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b) ................................ .33(c) .65(c) .28(c) .43(c) .14(c)
Net realized and unrealized gain (loss) on investments ... (.69) 1.25 (.71) .48 (.25)
--------- --------- -------- --------- ---------
Net increase (decrease) in net asset value from operations (.36) 1.90 (.43) .91 (.11)
--------- --------- -------- --------- ---------
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income ..................... (.28) (.18) (.21) (.08) -0-
Distributions from net realized gains .................... (.13) -0- (.14) -0- -0-
--------- --------- -------- --------- ---------
Total dividends and distributions ........................ (.41) (.18) (.35) (.08) -0-
--------- --------- -------- --------- ---------
Net asset value, end of period ........................... $ 10.89 $ 11.66 $ 9.94 $ 10.72 $ 9.89
======== ========== ======== ========= =========
TOTAL RETURN
Total investment return based on net asset value (d) ..... (3.06)% 19.26% (4.03)% 9.20% (1.10)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) ................ $ 25,222 $ 16,947 $ 5,101 $ 1,350 $ 785
Ratio to average net assets of:
Expenses, net of waivers and reimbursements ............. .95%(e) .95% .95% 1.16% .95%(e)
Expenses, before waivers and reimbursements ............. 1.07%(e) 1.58% 3.73% 5.42% 11.56%(e)
Net investment income ................................... 5.80%(e) 5.96% 5.64% 4.59% 4.82%(e)
Portfolio turnover rate .................................. 57% 68% 32% 177% 13%
</TABLE>
<TABLE>
<CAPTION>
Total Return Portfolio
----------------------------------------------------------------------
Six Months Ended Year Ended December 31, September 28, 1992(a)
June 30, 1996 --------------------------------- to
(Unaudited) 1995 1994 1993 December 31, 1992
--------- -------- ------- -------- ---------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ....................... $ 12.80 $ 10.41 $ 10.97 $ 10.01 $ 10.00
--------- --------- -------- --------- ---------
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b) ................................ .18(c) .36(c) .15(c) .15(c) .01
Net realized and unrealized gain (loss) on investments ... .36 2.10 (.56) .81 -0-
--------- --------- -------- --------- ---------
Net increase (decrease) in net asset value from operations .54 2.46 (.41) .96 .01
--------- --------- -------- --------- ---------
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income ..................... (.07) (.07) (.09) -0- -0-
Distributions from net realized gains .................... (.03) -0- (.06) -0- -0-
--------- --------- -------- --------- ---------
Total dividends and distributions ........................ (.10) (.07) (.15) -0- -0-
--------- --------- -------- --------- ---------
Net asset value, end of period ........................... $ 13.24 $ 12.80 $ 10.41 $ 10.97 $ 10.01
========= ========= ======== ========= =========
TOTAL RETURN
Total investment return based on net asset value (d) ..... 4.23% 23.67% (3.77)% 9.59% .10%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) ................ $ 18,453 $ 8,242 $ 750 $ 360 $ 95
Ratio to average net assets of:
Expenses, net of waivers and reimbursements ............. .95%(e) .95% .95% 1.20% 0%
Expenses, before waivers and reimbursements ............. 1.39%(e) 4.49% 19.49% 25.96% 0%
Net investment income ................................... 2.83%(e) 3.16% 2.29% 1.45% 2.21%(e)
Portfolio turnover rate .................................. 20% 30% 83% 25% 0%
Average commission rate paid (f) ......................... $ .0693 -0- -0- -0- -0-
</TABLE>
- -----------------------------------------------------------------------------
See footnote summary on page 108.
102
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
International Portfolio
----------------------------------------------------------------------
Six Months Ended Year Ended December 31, December 28, 1992(a)
June 30, 1996 --------------------------------- to
(Unaudited) 1995 1994 1993 December 31, 1992
--------- -------- ------- -------- ---------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ................. $ 14.07 $ 12.88 $ 12.16 $ 10.00 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b) .......................... .13(c) .18(c) .10(c) .03(c) -0-
Net realized and unrealized gain on investments and
foreign currency transactions ..................... .87 1.08 .72(g) 2.13 -0-
--------- --------- -------- --------- ---------
Net increase in net asset value from operations .... 1.00 1.26 .82 2.16 -0-
--------- --------- -------- --------- ---------
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income ............... (.08) (.03) (.02) -0- -0-
Distributions from net realized gains .............. (.12) (.04) (.08) -0- -0-
--------- --------- -------- --------- ---------
Total dividends and distributions .................. (.20) (.07) (.10) -0- -0-
--------- --------- -------- --------- ---------
Net asset value, end of period ..................... $ 14.87 $ 14.07 $ 12.88 $ 12.16 $ 10.00
======== ========== ======== ========= ==========
TOTAL RETURN
Total investment return based on net asset value (d) 7.10% 9.86% 6.70% 21.60% 0%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) .......... $ 31,356 $16,542 $ 7,276 $ 688 $ 79
Ratio to average net assets of:
Expenses, net of waivers and reimbursements ....... .95%(e) .95% .95% 1.20% 0%
Expenses, before waivers and reimbursements ....... 2.19%(e) 2.99% 7.26% 39.28% 0%
Net investment income ............................. 1.83%(e) 1.41% .90% .26% 2.07%(e)
Portfolio turnover rate ............................ 36% 87% 95% 85% 0%
Average commission rate paid (f) ................... $ .0284 -0- -0- -0- -0-
</TABLE>
<TABLE>
<CAPTION>
Money Market Portfolio
----------------------------------------------------------------------
Six Months Ended Year Ended December 31, December 28, 1992(a)
June 30, 1996 --------------------------------- to
(Unaudited) 1995 1994 1993 December 31, 1992
--------- -------- ------- -------- ---------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b) .......................... .02 .05 .03 .22 -0-
Net realized and unrealized gain on investments .... -0- -0- -0- -0- -0-
--------- --------- -------- --------- ---------
Net increase in net asset value from operations .... .02 .05 .03 .22 -0-
--------- --------- -------- --------- ---------
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income ............... (.02) (.05) (.03) (.22) -0-
Distributions from net realized gains .............. -0- -0- -0- -0- -0-
--------- --------- ------- --------- ---------
Total dividends and distributions .................. (.02) (.05) (.03) (.22) -0-
--------- --------- ------- --------- ---------
Net asset value, end of period ..................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ========== ======= ========= =========
TOTAL RETURN
Total investment return based on net asset value (d) 2.28% 4.97% 3.27% 2.25% .02%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) .......... $ 52,941 $ 28,092 $ 6,899 $ 102 $ 30
Ratio to average net assets of:
Expenses, net of waivers and reimbursements ....... .75%(e) .95% .95% 1.16% 0%
Expenses, before waivers and reimbursements ....... .76%(e) 1.07% 4.46% 68.14% 0%
Net investment income ............................. 4.56%(e) 4.85% 3.98% 2.15% 3.05%(e)
Portfolio turnover rate ............................ 0% 0% 0% 0% 0%
</TABLE>
- ------------------------------------------------------------------------------
See footnote summary on page 108.
103
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Global Dollar Government Portfolio
----------------------------------------------------
Six Months Ended Year Ended May 2, 1994(a)
June 30, 1996 December 31, to
(Unaudited) 1995 December 31, 1994
---------------- ------------ -----------------
<S> <C> <C> <C>
Net asset value, beginning of period ....................... $11.95 $ 9.84 $ 10.00
------- ------- ---------
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b) ................................ .56(c) .92(c) .36(c)
Net realized and unrealized gain (loss) on
investments and foreign currency transactions ........... .30 1.32 (.52)
------- ------- ---------
Net increase (decrease) in net asset value from operations .86 2.24 (.16)
------- ------- ---------
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income ..................... (.48) (.13) -0-
Distributions from net realized gains .................... (.03) -0- -0-
------- ------- ---------
Total dividends and distributions ........................ (.51) (.13) -0-
------- ------- ---------
Net asset value, end of period ........................... $12.30 $11.95 $ 9.84
======= ======= =========
TOTAL RETURN
Total investment return based on net asset value (d) ..... 7.28% 22.98% (1.60)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) ................ $5,377 $3,778 $ 1,146
Ratio to average net assets of:
Expenses, net of waivers and reimbursements ............. .95%(e) .95% .95%(e)
Expenses, before waivers and reimbursements ............. 2.43%(e) 4.82% 15.00%(e)
Net investment income ................................... 9.08%(e) 8.65% 6.02%(e)
Portfolio turnover rate .................................. 22% 13% 9%
</TABLE>
<TABLE>
<CAPTION>
North American Government Income Portfolio
----------------------------------------------------
Six Months Ended Year Ended May 2, 1994(a)
June 30, 1996 December 31, to
(Unaudited) 1995 December 31, 1994
---------------- ------------ -----------------
<S> <C> <C> <C>
Net asset value, beginning of period ....................... $ 10.48 $ 8.79 $ 10.00
------- ------- ---------
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b) ................................ .71(c) 1.13(c) .50(c)
Net realized and unrealized gain (loss) on
investments and foreign currency transactions ........... .18 .83 (1.71)
------- ------- ---------
Net increase (decrease) in net asset value from operations .89 1.96 (1.21)
------- ------- ---------
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income ..................... (.05) (.27) -0-
Distributions from net realized gains .................... -0- -0- -0-
------- ------- ---------
Total dividends and distributions ........................ (.05) (.27) -0-
------- ------- ---------
Net asset value, end of period ........................... $ 11.32 $ 10.48 $ 8.79
======== ========== =========
TOTAL RETURN
Total investment return based on net asset value (d) ..... 8.54% 22.71% (12.10)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) ................ $11,396 $ 7,278 $ 3,848
Ratio to average net assets of:
Expenses, net of waivers and reimbursements ............. .95%(e) .95% .95%(e)
Expenses, before waivers and reimbursements ............. 1.63%(e) 2.57% 4.43%(e)
Net investment income ................................... 13.01%(e) 12.24% 8.49%(e)
Portfolio turnover rate .................................. 5% 35% 15%
</TABLE>
- ------------------------------------------------------------------------------
See footnote summary on page 108.
104
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Utility Income Portfolio
----------------------------------------------------
Six Months Ended Year Ended May 10, 1994(a)
June 30, 1996 December 31, to
(Unaudited) 1995 December 31, 1994
---------------- ------------ -----------------
<S> <C> <C> <C>
Net asset value, beginning of period ....................... $ 12.01 $ 9.96 $ 10.00
------- ------- ---------
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b) ................................ .13(c) .30(c) .28(c)
Net realized and unrealized gain (loss) on investments ... .26 1.83 (.32)
------- ------- ---------
Net increase (decrease) in net asset value from operations .39 2.13 (.04)
------- ------- ---------
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income ..................... (.09) (.08) -0-
Distributions from net realized gains .................... (.16) -0- -0-
------- ------- ---------
Total dividends and distributions ........................ (.25) (.08) -0-
------- ------- ---------
Net asset value, end of period ........................... $ 12.15 $ 12.01 $ 9.96
======== ========== =========
TOTAL RETURN
Total investment return based on net asset value (d) ..... 3.29% 21.45% (.40)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) ................ $12,251 $ 6,251 $ 1,254
Ratio to average net assets of:
Expenses, net of waivers and reimbursements ............. .95%(e) .95% .95%(e)
Expenses, before waivers and reimbursements ............. 1.68%(e) 3.79% 15.98%(e)
Net investment income ................................... 2.24%(e) 2.73% 4.62%(e)
Portfolio turnover rate .................................. 24% 138% 31%
Average commission rate paid (f) ......................... $ .0641 -0- -0-
</TABLE>
<TABLE>
<CAPTION>
Growth Portfolio
----------------------------------------------------
Six Months Ended Year Ended September 15, 1994(a)
June 30, 1996 December 31, to
(Unaudited) 1995 December 31, 1994
---------------- ------------ -----------------
<S> <C> <C> <C>
Net asset value, beginning of period ................. $ 14.23 $ 10.53 $ 10.00
------- ------- ---------
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b) .......................... .03(C) .17(C) .03(C)
Net realized and unrealized gain on investments .... 1.67 3.54 .50
------- ------- ---------
Net increase in net asset value from operations .... 1.70 3.71 .53
------- ------- ---------
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income ............... (.04) (.01) -0-
Distributions from net realized gains .............. (.28) -0- -0-
------- ------- ---------
Total dividends and distributions .................. (.32) (.01) -0-
-------- --------- ---------
Net asset value, end of period ..................... $ 15.61 $ 14.23 $ 10.53
======== ========== ==========
TOTAL RETURN
Total investment return based on net asset value (d) 11.92% 35.23% 5.30%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) .......... $90,690 $45,220 $ 5,492
Ratio to average net assets of:
Expenses, net of waivers and reimbursements ....... .94%(e) .95% .95%(e)
Expenses, before waivers and reimbursements ....... .97%(e) 1.27% 4.19%(e)
Net investment income ............................. .41%(e) 1.31% 1.17%(e)
Portfolio turnover rate ............................ 44% 86% 25%
Average commission rate paid (f) ................... $ .0624 -0- -0-
</TABLE>
- ------------------------------------------------------------------------------
See footnote summary on page 108.
105
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Worldwide Privatization Portfolio
----------------------------------------------------
Six Months Ended Year Ended September 23, 1994(a)
June 30, 1996 December 31, to
(Unaudited) 1995 December 31, 1994
---------------- ------------ -----------------
<S> <C> <C> <C>
Net asset value, beginning of period ................. $ 11.17 $ 10.10 $ 10.00
-------- -------- --------
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b) .......................... .17(c) .32(c) .10(c)
Net realized and unrealized gain on investments .... 1.16 .78 -0-
-------- -------- --------
Net increase in net asset value from operations .... 1.33 1.10 .10
-------- -------- --------
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income ............... (.10) (.03) -0-
Distributions from net realized gains .............. -0- -0- -0-
-------- -------- --------
Total dividends and distributions .................. (.10) (.03) -0-
-------- -------- --------
Net asset value, end of period ..................... $ 12.40 $ 11.17 $ 10.10
======= ======= =======
TOTAL RETURN
Total investment return based on net asset value (d) 11.92% 10.87% 1.00%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) .......... $11,885 $ 5,947 $ 1,127
Ratio to average net assets of:
Expenses, net of waivers and reimbursements ....... .95%(e) .95% .95%(e)
Expenses, before waivers and reimbursements ....... 2.02%(e) 4.17% 18.47%(e)
Net investment income ............................. 2.90%(e) 2.96% 4.27%(e)
Portfolio turnover rate ............................ 24% 23% 0%
Average commission rate paid (f) ................... $ .0119 -0- -0-
</TABLE>
<TABLE>
<CAPTION>
Conservative Investors Portfolio
----------------------------------------------------
Six Months Ended Year Ended October 28, 1994(a)
June 30, 1996 December 31, to
(Unaudited) 1995 December 31, 1994
---------------- ------------ -----------------
<S> <C> <C> <C>
Net asset value, beginning of period ....................... $ 11.76 $ 10.07 $10.00
-------- ------- ------
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b) ................................ .23(c) .51(c) .06(c)
Net realized and unrealized gain (loss) on investments ... (.46) 1.20 .01
-------- ------- ------
Net increase (decrease) in net asset value from operations (.23) 1.71 .07
-------- ------- ------
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income ..................... (.09) (.02) -0-
Distributions from net realized gains .................... (.04) -0- -0-
-------- ------- ------
Total dividends and distributions ........................ (.13) (.02) -0-
-------- ------- ------
Net asset value, end of period ........................... $ 11.40 $ 11.76 $ 10.07
======== ======= =======
TOTAL RETURN
Total investment return based on net asset value (d) ..... (1.97)% 16.99% 0.70%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) ................ $ 17,151 $ 7,420 $ 701
Ratio to average net assets of:
Expenses, net of waivers and reimbursements ............. .95%(e) .95% .95%(e)
Expenses, before waivers and reimbursements ............. 1.51%(e) 4.25% 20.35%(e)
Net investment income ................................... 4.07%(e) 4.65% 3.55%(e)
Portfolio turnover rate .................................. 174% 61% 2%
Average commission rate paid (f) ......................... $ .0629 -0- -0-
</TABLE>
- ------------------------------------------------------------------------------
See footnote summary on page 108.
106
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Growth Investors Portfolio
----------------------------------------------------
Six Months Ended Year Ended October 28, 1994(a)
June 30, 1996 December 31, to
(Unaudited) 1995 December 31, 1994
---------------- ------------ -----------------
<S> <C> <C> <C>
Net asset value, beginning of period ....................... $ 11.87 $ 9.86 $ 10.00
--------- ------- -------
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b) ................................ .14(c) .35(c) .04(c)
Net realized and unrealized gain (loss) on investments ... .10 1.67 (.18)
--------- ------- -------
Net increase (decrease) in net asset value from operations .24 2.02 (.14)
--------- ------- -------
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income ..................... (.07) (.01) -0-
Distributions from net realized gains .................... (.02) -0- -0-
--------- ------- -------
Total dividends and distributions ........................ (.09) (.01) -0-
--------- ------- -------
Net asset value, end of period ........................... $ 12.02 $ 11.87 $ 9.86
========= ======== =======
TOTAL RETURN
Total investment return based on net asset value (d) ..... 2.07% 20.48% (1.40)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) ................ $ 9,392 $ 4,978 $ 321
Ratio to average net assets of:
Expenses, net of waivers and reimbursements ............. .95%(e) .95% .95%(e)
Expenses, before waivers and reimbursements ............. 2.08%(e) 6.17% 41.62%(e)
Net investment income ................................... 2.41%(e) 3.21% 2.29%(e)
Portfolio turnover rate .................................. 69% 50% 3%
Average commission rate paid (f) ......................... $ .0600 -0- -0-
</TABLE>
<TABLE>
<CAPTION>
Technology Portfolio
January 11, 1996(a)
to June 30, 1996
(Unaudited)
-----------------------
<S> <C>
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 paid (f) ..................................... $ .0625
</TABLE>
- ------------------------------------------------------------------------------
See footnote summary on page 108.
107
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
- ------------------------------------------------------------------------------
FOOTNOTE SUMMARY:
- -----------------
(a) Commencement of operations.
(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.
108
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
- ---------------------------------------------------------------------------
BOARD OF DIRECTORS
JOHN D. CARIFA, Chairman and President
RUTH BLOCK (1)
DAVID H. DIEVLER (1)
JOHN H. DOBKIN (1)
WILLIAM H. FOULK, JR. (1)
DR. JAMES M. HESTER (1)
CLIFFORD L. MICHEL (1)
ROBERT C. WHITE (1)
OFFICERS
KATHLEEN A. CORBET, Senior Vice President
ALFRED L. HARRISON, Senior Vice President
ALAN LEVI, Senior Vice President
WAYNE D. LYSKI, Senior Vice President
DEBRA G. ACKERMAN, Vice President
GREGORY ALLISON, Vice President
STEVEN BEINHACKER, Vice President
MARK H. BREEDON, Vice President
PAUL J. DENOON, Vice President
KELLY L. MORGAN, Vice President
DOUGLAS J. PEEBLES, Vice President
PAMELA F. RICHARDSON, Vice President
PAUL RISSMAN, Vice President
TYLER J. SMITH, Vice President
EDMUND P. BERGAN, Jr., Secretary
MARK D. GERSTEN, Treasurer & Chief Financial Officer
LAURA MAH, Controller
CUSTODIAN
STATE STREET BANK AND TRUST COMPANY
225 Franklin Street
Boston, MA 02110
DISTRIBUTOR
ALLIANCE FUND DISTRIBUTORS, INC.
1345 Avenue of the Americas
New York, NY 10105
INDEPENDENT AUDITORS
ERNST & YOUNG LLP
787 Seventh Avenue
New York, NY 10019
LEGAL COUNSEL
SEWARD & KISSEL
One Battery Park Plaza
New York, NY 10004
TRANSFER AGENT
ALLIANCE FUND SERVICES, INC.
P.O. Box 1520
Secaucus, NJ 07096-1520
Toll-free 1-(800) 221-5672
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- ----------------------------------------
(1) Member of the Audit Committee.
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 1
<NAME> SHORT-TERM MULTI MARKET PORTFOLIO
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<INVESTMENTS-AT-COST> 5,066,412
<INVESTMENTS-AT-VALUE> 5,064,830
<RECEIVABLES> 111,027
<ASSETS-OTHER> 407
<OTHER-ITEMS-ASSETS> 9,780
<TOTAL-ASSETS> 5,186,044
<PAYABLE-FOR-SECURITIES> 260,333
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 32,752
<TOTAL-LIABILITIES> 293,085
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 5,850,988
<SHARES-COMMON-STOCK> 476,331
<SHARES-COMMON-PRIOR> 298,038
<ACCUMULATED-NII-CURRENT> 136,390
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (1,102,006)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 7,587
<NET-ASSETS> 4,892,959
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 156,524
<OTHER-INCOME> 0
<EXPENSES-NET> 20,041
<NET-INVESTMENT-INCOME> 136,483
<REALIZED-GAINS-CURRENT> 5,319
<APPREC-INCREASE-CURRENT> 57,285
<NET-CHANGE-FROM-OPS> 199,087
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 369,515
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 305,314
<NUMBER-OF-SHARES-REDEEMED> 163,177
<SHARES-REINVESTED> 36,156
<NET-CHANGE-IN-ASSETS> 1,740,881
<ACCUMULATED-NII-PRIOR> 369,422
<ACCUMULATED-GAINS-PRIOR> (1,107,325)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 11,603
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 58,624
<AVERAGE-NET-ASSETS> 4,242,293
<PER-SHARE-NAV-BEGIN> 10.58
<PER-SHARE-NII> .35
<PER-SHARE-GAIN-APPREC> .16
<PER-SHARE-DIVIDEND> .82
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.27
<EXPENSE-RATIO> .95
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 2
<NAME> GROWTH AND INCOME PORTFOLIO
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<INVESTMENTS-AT-COST> 77,740,709
<INVESTMENTS-AT-VALUE> 83,122,089
<RECEIVABLES> 256,198
<ASSETS-OTHER> 182,217
<OTHER-ITEMS-ASSETS> 31
<TOTAL-ASSETS> 83,560,535
<PAYABLE-FOR-SECURITIES> 921,956
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 116,253
<TOTAL-LIABILITIES> 1,038,209
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 72,981,638
<SHARES-COMMON-STOCK> 5,698,137
<SHARES-COMMON-PRIOR> 2,658,797
<ACCUMULATED-NII-CURRENT> 506,169
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 3,652,625
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 5,381,894
<NET-ASSETS> 82,522,326
<DIVIDEND-INCOME> 644,465
<INTEREST-INCOME> 119,951
<OTHER-INCOME> 0
<EXPENSES-NET> 259,731
<NET-INVESTMENT-INCOME> 504,685
<REALIZED-GAINS-CURRENT> 3,914,044
<APPREC-INCREASE-CURRENT> 914,539
<NET-CHANGE-FROM-OPS> 5,333,268
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 1,128,565
<DISTRIBUTIONS-OF-GAINS> 11,815,383
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 2,248,967
<NUMBER-OF-SHARES-REDEEMED> 106,643
<SHARES-REINVESTED> 897,016
<NET-CHANGE-IN-ASSETS> 40,529,498
<ACCUMULATED-NII-PRIOR> 1,130,049
<ACCUMULATED-GAINS-PRIOR> 11,553,964
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 191,588
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 261,712
<AVERAGE-NET-ASSETS> 61,645,076
<PER-SHARE-NAV-BEGIN> 15.79
<PER-SHARE-NII> .13
<PER-SHARE-GAIN-APPREC> 1.37
<PER-SHARE-DIVIDEND> .25
<PER-SHARE-DISTRIBUTIONS> 2.56
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 14.48
<EXPENSE-RATIO> .85
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 3
<NAME> GLOBAL BOND PORTFOLIO
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<INVESTMENTS-AT-COST> 14,838,667
<INVESTMENTS-AT-VALUE> 14,857,151
<RECEIVABLES> 2,707,849
<ASSETS-OTHER> 1,264
<OTHER-ITEMS-ASSETS> 8,389
<TOTAL-ASSETS> 17,574,653
<PAYABLE-FOR-SECURITIES> 2,280,605
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 64,741
<TOTAL-LIABILITIES> 2,345,346
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 14,865,782
<SHARES-COMMON-STOCK> 1,374,828
<SHARES-COMMON-PRIOR> 950,828
<ACCUMULATED-NII-CURRENT> 395,753
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (63,524)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 31,296
<NET-ASSETS> 15,229,307
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 459,307
<OTHER-INCOME> 0
<EXPENSES-NET> 62,818
<NET-INVESTMENT-INCOME> 396,489
<REALIZED-GAINS-CURRENT> (44,140)
<APPREC-INCREASE-CURRENT> (290,828)
<NET-CHANGE-FROM-OPS> 61,521
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 1,035,617
<DISTRIBUTIONS-OF-GAINS> 309,324
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 322,115
<NUMBER-OF-SHARES-REDEEMED> 20,828
<SHARES-REINVESTED> 122,713
<NET-CHANGE-IN-ASSETS> 3,676,330
<ACCUMULATED-NII-PRIOR> 1,034,881
<ACCUMULATED-GAINS-PRIOR> 289,940
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 42,981
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 87,593
<AVERAGE-NET-ASSETS> 13,297,488
<PER-SHARE-NAV-BEGIN> 12.15
<PER-SHARE-NII> .36
<PER-SHARE-GAIN-APPREC> (.34)
<PER-SHARE-DIVIDEND> .84
<PER-SHARE-DISTRIBUTIONS> .25
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 11.08
<EXPENSE-RATIO> .95
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 4
<NAME> PREMIER GROWTH PORTFOLIO
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<INVESTMENTS-AT-COST> 58,516,280
<INVESTMENTS-AT-VALUE> 64,788,602
<RECEIVABLES> 300,098
<ASSETS-OTHER> 90,583
<OTHER-ITEMS-ASSETS> 5,428
<TOTAL-ASSETS> 65,184,711
<PAYABLE-FOR-SECURITIES> 349,950
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 92,664
<TOTAL-LIABILITIES> 442,614
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 58,494,704
<SHARES-COMMON-STOCK> 4,667,052
<SHARES-COMMON-PRIOR> 1,644,774
<ACCUMULATED-NII-CURRENT> 119,504
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (144,433)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 6,272,322
<NET-ASSETS> 64,742,097
<DIVIDEND-INCOME> 269,810
<INTEREST-INCOME> 73,870
<OTHER-INCOME> 0
<EXPENSES-NET> 220,690
<NET-INVESTMENT-INCOME> 122,990
<REALIZED-GAINS-CURRENT> 357,267
<APPREC-INCREASE-CURRENT> 2,955,002
<NET-CHANGE-FROM-OPS> 3,435,259
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 316,135
<DISTRIBUTIONS-OF-GAINS> 17,322,907
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,814,729
<NUMBER-OF-SHARES-REDEEMED> 54,185
<SHARES-REINVESTED> 1,261,734
<NET-CHANGE-IN-ASSETS> 35,463,803
<ACCUMULATED-NII-PRIOR> 312,649
<ACCUMULATED-GAINS-PRIOR> 16,821,207
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 232,306
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 301,736
<AVERAGE-NET-ASSETS> 46,716,409
<PER-SHARE-NAV-BEGIN> 17.80
<PER-SHARE-NII> .05
<PER-SHARE-GAIN-APPREC> 1.49
<PER-SHARE-DIVIDEND> .1
<PER-SHARE-DISTRIBUTIONS> 5.37
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 13.87
<EXPENSE-RATIO> .95
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 5
<NAME> US GOVERNMENT/HIGH GRADE PORTFOLIO
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<INVESTMENTS-AT-COST> 25,760,084
<INVESTMENTS-AT-VALUE> 25,374,205
<RECEIVABLES> 359,090
<ASSETS-OTHER> 47
<OTHER-ITEMS-ASSETS> 9,552
<TOTAL-ASSETS> 25,742,894
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 520,972
<TOTAL-LIABILITIES> 520,972
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 25,207,244
<SHARES-COMMON-STOCK> 2,315,058
<SHARES-COMMON-PRIOR> 1,453,146
<ACCUMULATED-NII-CURRENT> 614,308
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (217,363)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (382,267)
<NET-ASSETS> 25,221,922
<DIVIDEND-INCOME> 1,181
<INTEREST-INCOME> 714,959
<OTHER-INCOME> 0
<EXPENSES-NET> 100,795
<NET-INVESTMENT-INCOME> 615,345
<REALIZED-GAINS-CURRENT> (223,417)
<APPREC-INCREASE-CURRENT> (963,055)
<NET-CHANGE-FROM-OPS> (571,127)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 621,506
<DISTRIBUTIONS-OF-GAINS> 289,591
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 997,428
<NUMBER-OF-SHARES-REDEEMED> 220,112
<SHARES-REINVESTED> 84,596
<NET-CHANGE-IN-ASSETS> 8,275,403
<ACCUMULATED-NII-PRIOR> 620,469
<ACCUMULATED-GAINS-PRIOR> 295,645
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 63,660
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 113,488
<AVERAGE-NET-ASSETS> 21,336,557
<PER-SHARE-NAV-BEGIN> 11.66
<PER-SHARE-NII> .33
<PER-SHARE-GAIN-APPREC> (.69)
<PER-SHARE-DIVIDEND> .28
<PER-SHARE-DISTRIBUTIONS> .13
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.89
<EXPENSE-RATIO> .95
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 6
<NAME> TOTAL RETURN PORTFOLIO
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<INVESTMENTS-AT-COST> 17,537,396
<INVESTMENTS-AT-VALUE> 18,039,305
<RECEIVABLES> 484,032
<ASSETS-OTHER> 243
<OTHER-ITEMS-ASSETS> 7,283
<TOTAL-ASSETS> 18,530,863
<PAYABLE-FOR-SECURITIES> 4,790
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 72,599
<TOTAL-LIABILITIES> 77,389
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 17,510,137
<SHARES-COMMON-STOCK> 1,394,237
<SHARES-COMMON-PRIOR> 643,972
<ACCUMULATED-NII-CURRENT> 181,194
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 260,234
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 501,909
<NET-ASSETS> 18,453,474
<DIVIDEND-INCOME> 67,871
<INTEREST-INCOME> 174,435
<OTHER-INCOME> 0
<EXPENSES-NET> 60,940
<NET-INVESTMENT-INCOME> 181,366
<REALIZED-GAINS-CURRENT> 259,834
<APPREC-INCREASE-CURRENT> 85,910
<NET-CHANGE-FROM-OPS> 527,110
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 88,093
<DISTRIBUTIONS-OF-GAINS> 44,705
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 763,189
<NUMBER-OF-SHARES-REDEEMED> 22,999
<SHARES-REINVESTED> 10,075
<NET-CHANGE-IN-ASSETS> 10,211,033
<ACCUMULATED-NII-PRIOR> 87,921
<ACCUMULATED-GAINS-PRIOR> 45,105
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 40,093
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 89,226
<AVERAGE-NET-ASSETS> 12,900,124
<PER-SHARE-NAV-BEGIN> 12.80
<PER-SHARE-NII> .18
<PER-SHARE-GAIN-APPREC> .36
<PER-SHARE-DIVIDEND> .07
<PER-SHARE-DISTRIBUTIONS> .03
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 13.24
<EXPENSE-RATIO> .95
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 7
<NAME> INTERNATIONAL PORTFOLIO
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<INVESTMENTS-AT-COST> 30,203,817
<INVESTMENTS-AT-VALUE> 31,810,847
<RECEIVABLES> 192,078
<ASSETS-OTHER> 8,932
<OTHER-ITEMS-ASSETS> 7,458
<TOTAL-ASSETS> 32,019,315
<PAYABLE-FOR-SECURITIES> 555,880
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 107,435
<TOTAL-LIABILITIES> 663,315
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 29,031,119
<SHARES-COMMON-STOCK> 2,108,731
<SHARES-COMMON-PRIOR> 1,175,986
<ACCUMULATED-NII-CURRENT> 213,408
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 517,616
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1,593,857
<NET-ASSETS> 31,356,000
<DIVIDEND-INCOME> 256,534
<INTEREST-INCOME> 68,980
<OTHER-INCOME> 0
<EXPENSES-NET> 111,069
<NET-INVESTMENT-INCOME> 214,445
<REALIZED-GAINS-CURRENT> 580,102
<APPREC-INCREASE-CURRENT> 853,868
<NET-CHANGE-FROM-OPS> 1,648,415
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 155,834
<DISTRIBUTIONS-OF-GAINS> 244,881
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 942,440
<NUMBER-OF-SHARES-REDEEMED> 36,843
<SHARES-REINVESTED> 27,148
<NET-CHANGE-IN-ASSETS> 14,814,365
<ACCUMULATED-NII-PRIOR> 154,797
<ACCUMULATED-GAINS-PRIOR> 182,395
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 116,915
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 256,447
<AVERAGE-NET-ASSETS> 23,511,520
<PER-SHARE-NAV-BEGIN> 14.07
<PER-SHARE-NII> .13
<PER-SHARE-GAIN-APPREC> .87
<PER-SHARE-DIVIDEND> .08
<PER-SHARE-DISTRIBUTIONS> .12
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 14.87
<EXPENSE-RATIO> .95
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 8
<NAME> MONEY MARKET PORTFOLIO
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<INVESTMENTS-AT-COST> 52,261,184
<INVESTMENTS-AT-VALUE> 52,261,184
<RECEIVABLES> 474,020
<ASSETS-OTHER> 333,891
<OTHER-ITEMS-ASSETS> 7,486
<TOTAL-ASSETS> 53,076,581
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 135,612
<TOTAL-LIABILITIES> 135,612
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 52,940,366
<SHARES-COMMON-STOCK> 52,941,169
<SHARES-COMMON-PRIOR> 28,092,065
<ACCUMULATED-NII-CURRENT> 803
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (200)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 52,940,969
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 1,107,355
<OTHER-INCOME> 0
<EXPENSES-NET> 156,355
<NET-INVESTMENT-INCOME> 951,000
<REALIZED-GAINS-CURRENT> (443)
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 950,557
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 951,000
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 74,453,382
<NUMBER-OF-SHARES-REDEEMED> (50,555,311)
<SHARES-REINVESTED> 951,033
<NET-CHANGE-IN-ASSETS> 24,848,661
<ACCUMULATED-NII-PRIOR> 803
<ACCUMULATED-GAINS-PRIOR> 243
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 104,255
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 157,508
<AVERAGE-NET-ASSETS> 41,931,155
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> .02
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> .02
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</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 9
<NAME> NORTH AMERICAN GOVERNMENT PORTFOLIO
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<INVESTMENTS-AT-COST> 10,533,686
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<RECEIVABLES> 323,506
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<OTHER-ITEMS-ASSETS> 13,809
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<OTHER-ITEMS-LIABILITIES> 38,276
<TOTAL-LIABILITIES> 38,276
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<PAID-IN-CAPITAL-COMMON> 10,355,714
<SHARES-COMMON-STOCK> 1,006,963
<SHARES-COMMON-PRIOR> 694,380
<ACCUMULATED-NII-CURRENT> 601,509
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (112,741)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 551,765
<NET-ASSETS> 11,396,247
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 647,215
<OTHER-INCOME> 0
<EXPENSES-NET> 44,038
<NET-INVESTMENT-INCOME> 603,177
<REALIZED-GAINS-CURRENT> (112,311)
<APPREC-INCREASE-CURRENT> 236,051
<NET-CHANGE-FROM-OPS> 726,917
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 49,608
<DISTRIBUTIONS-OF-GAINS> 3,969
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 424,921
<NUMBER-OF-SHARES-REDEEMED> 117,143
<SHARES-REINVESTED> 4,805
<NET-CHANGE-IN-ASSETS> 4,118,320
<ACCUMULATED-NII-PRIOR> 47,940
<ACCUMULATED-GAINS-PRIOR> 3,539
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 30,131
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 75,331
<AVERAGE-NET-ASSETS> 9,322,115
<PER-SHARE-NAV-BEGIN> 10.48
<PER-SHARE-NII> .71
<PER-SHARE-GAIN-APPREC> .18
<PER-SHARE-DIVIDEND> .05
<PER-SHARE-DISTRIBUTIONS> 0
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<PER-SHARE-NAV-END> 11.32
<EXPENSE-RATIO> .95
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<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 10
<NAME> UTILITY INCOME PORTFOLIO
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<INVESTMENTS-AT-COST> 11,736,880
<INVESTMENTS-AT-VALUE> 12,104,335
<RECEIVABLES> 47,463
<ASSETS-OTHER> 118,946
<OTHER-ITEMS-ASSETS> 8,738
<TOTAL-ASSETS> 12,279,482
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 28,288
<TOTAL-LIABILITIES> 28,288
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 11,580,766
<SHARES-COMMON-STOCK> 1,008,590
<SHARES-COMMON-PRIOR> 520,402
<ACCUMULATED-NII-CURRENT> 100,182
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 202,791
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 367,455
<NET-ASSETS> 12,251,194
<DIVIDEND-INCOME> 114,449
<INTEREST-INCOME> 28,924
<OTHER-INCOME> 0
<EXPENSES-NET> 42,677
<NET-INVESTMENT-INCOME> 100,696
<REALIZED-GAINS-CURRENT> 220,358
<APPREC-INCREASE-CURRENT> 64,262
<NET-CHANGE-FROM-OPS> 385,316
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 81,842
<DISTRIBUTIONS-OF-GAINS> 155,981
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 510,810
<NUMBER-OF-SHARES-REDEEMED> 42,828
<SHARES-REINVESTED> 20,206
<NET-CHANGE-IN-ASSETS> 6,000,653
<ACCUMULATED-NII-PRIOR> 81,328
<ACCUMULATED-GAINS-PRIOR> 138,414
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 33,693
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 75,695
<AVERAGE-NET-ASSETS> 9,034,144
<PER-SHARE-NAV-BEGIN> 12.01
<PER-SHARE-NII> .13
<PER-SHARE-GAIN-APPREC> .26
<PER-SHARE-DIVIDEND> .09
<PER-SHARE-DISTRIBUTIONS> .16
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 12.15
<EXPENSE-RATIO> .95
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 11
<NAME> GLOBAL DOLLAR GOVERNMENT PORTFOLIO
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<INVESTMENTS-AT-COST> 4,886,835
<INVESTMENTS-AT-VALUE> 5,164,364
<RECEIVABLES> 107,184
<ASSETS-OTHER> 118,075
<OTHER-ITEMS-ASSETS> 9,477
<TOTAL-ASSETS> 5,399,100
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 22,499
<TOTAL-LIABILITIES> 22,499
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 4,809,849
<SHARES-COMMON-STOCK> 437,007
<SHARES-COMMON-PRIOR> 316,166
<ACCUMULATED-NII-CURRENT> 198,857
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 90,366
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 277,529
<NET-ASSETS> 5,376,601
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 222,703
<OTHER-INCOME> 0
<EXPENSES-NET> 21,086
<NET-INVESTMENT-INCOME> 201,617
<REALIZED-GAINS-CURRENT> 90,521
<APPREC-INCREASE-CURRENT> 12,988
<NET-CHANGE-FROM-OPS> 305,126
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 191,319
<DISTRIBUTIONS-OF-GAINS> 13,292
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 134,082
<NUMBER-OF-SHARES-REDEEMED> 30,278
<SHARES-REINVESTED> 17,037
<NET-CHANGE-IN-ASSETS> 1,598,506
<ACCUMULATED-NII-PRIOR> 188,559
<ACCUMULATED-GAINS-PRIOR> 13,137
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 16,648
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 53,953
<AVERAGE-NET-ASSETS> 4,463,682
<PER-SHARE-NAV-BEGIN> 11.95
<PER-SHARE-NII> .56
<PER-SHARE-GAIN-APPREC> .30
<PER-SHARE-DIVIDEND> .48
<PER-SHARE-DISTRIBUTIONS> .03
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 12.30
<EXPENSE-RATIO> .95
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 12
<NAME> GROWTH PORTFOLIO
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<INVESTMENTS-AT-COST> 82,574,157
<INVESTMENTS-AT-VALUE> 90,643,725
<RECEIVABLES> 1,484,091
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<OTHER-ITEMS-ASSETS> 6,411
<TOTAL-ASSETS> 92,393,319
<PAYABLE-FOR-SECURITIES> 1,585,727
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 117,470
<TOTAL-LIABILITIES> 1,703,197
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 79,936,810
<SHARES-COMMON-STOCK> 5,811,313
<SHARES-COMMON-PRIOR> 3,177,065
<ACCUMULATED-NII-CURRENT> 174,199
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 2,509,545
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 8,069,568
<NET-ASSETS> 90,690,122
<DIVIDEND-INCOME> 333,794
<INTEREST-INCOME> 120,624
<OTHER-INCOME> 0
<EXPENSES-NET> 316,561
<NET-INVESTMENT-INCOME> 137,857
<REALIZED-GAINS-CURRENT> 2,565,098
<APPREC-INCREASE-CURRENT> 4,368,143
<NET-CHANGE-FROM-OPS> 7,071,098
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 230,200
<DISTRIBUTIONS-OF-GAINS> 1,507,259
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 2,589,102
<NUMBER-OF-SHARES-REDEEMED> 66,087
<SHARES-REINVESTED> 111,233
<NET-CHANGE-IN-ASSETS> 45,470,411
<ACCUMULATED-NII-PRIOR> 266,542
<ACCUMULATED-GAINS-PRIOR> 1,451,706
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 251,665
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 324,720
<AVERAGE-NET-ASSETS> 67,479,341
<PER-SHARE-NAV-BEGIN> 14.23
<PER-SHARE-NII> .03
<PER-SHARE-GAIN-APPREC> 1.67
<PER-SHARE-DIVIDEND> .04
<PER-SHARE-DISTRIBUTIONS> .28
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 15.61
<EXPENSE-RATIO> .94
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<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 13
<NAME> WORLWIDE PRIVATIZATION PORTFOLIO
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<INVESTMENTS-AT-COST> 11,235,460
<INVESTMENTS-AT-VALUE> 12,024,560
<RECEIVABLES> 247,844
<ASSETS-OTHER> 21,455
<OTHER-ITEMS-ASSETS> 6,455
<TOTAL-ASSETS> 12,300,314
<PAYABLE-FOR-SECURITIES> 379,875
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 34,808
<TOTAL-LIABILITIES> 414,683
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 10,855,662
<SHARES-COMMON-STOCK> 958,650
<SHARES-COMMON-PRIOR> 532,219
<ACCUMULATED-NII-CURRENT> 121,607
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 120,679
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 787,683
<NET-ASSETS> 11,885,631
<DIVIDEND-INCOME> 116,599
<INTEREST-INCOME> 45,251
<OTHER-INCOME> 0
<EXPENSES-NET> 39,946
<NET-INVESTMENT-INCOME> 121,904
<REALIZED-GAINS-CURRENT> 164,443
<APPREC-INCREASE-CURRENT> 571,863
<NET-CHANGE-FROM-OPS> 858,210
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 90,574
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 433,049
<NUMBER-OF-SHARES-REDEEMED> 14,042
<SHARES-REINVESTED> 7,424
<NET-CHANGE-IN-ASSETS> 5,938,857
<ACCUMULATED-NII-PRIOR> 90,277
<ACCUMULATED-GAINS-PRIOR> (43,764)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 42,048
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 84,952
<AVERAGE-NET-ASSETS> 8,455,834
<PER-SHARE-NAV-BEGIN> 11.17
<PER-SHARE-NII> .17
<PER-SHARE-GAIN-APPREC> 1.16
<PER-SHARE-DIVIDEND> .10
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 12.40
<EXPENSE-RATIO> .95
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 14
<NAME> CONSERVATIVE INVESTORS PORTFOLIO
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<INVESTMENTS-AT-COST> 17,261,002
<INVESTMENTS-AT-VALUE> 17,369,527
<RECEIVABLES> 334,591
<ASSETS-OTHER> 59,270
<OTHER-ITEMS-ASSETS> 6,647
<TOTAL-ASSETS> 17,770,035
<PAYABLE-FOR-SECURITIES> 572,261
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 46,537
<TOTAL-LIABILITIES> 618,798
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 16,987,222
<SHARES-COMMON-STOCK> 1,503,897
<SHARES-COMMON-PRIOR> 630,671
<ACCUMULATED-NII-CURRENT> 241,904
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (186,467)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 108,578
<NET-ASSETS> 17,151,237
<DIVIDEND-INCOME> 25,848
<INTEREST-INCOME> 272,115
<OTHER-INCOME> 0
<EXPENSES-NET> 56,366
<NET-INVESTMENT-INCOME> 241,597
<REALIZED-GAINS-CURRENT> (185,433)
<APPREC-INCREASE-CURRENT> (148,271)
<NET-CHANGE-FROM-OPS> (92,107)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 127,029
<DISTRIBUTIONS-OF-GAINS> 56,297
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 909,803
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<SHARES-REINVESTED> 16,195
<NET-CHANGE-IN-ASSETS> 9,731,517
<ACCUMULATED-NII-PRIOR> 127,336
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<OVERDISTRIB-NII-PRIOR> 0
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<GROSS-ADVISORY-FEES> 44,500
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 89,492
<AVERAGE-NET-ASSETS> 11,931,838
<PER-SHARE-NAV-BEGIN> 11.76
<PER-SHARE-NII> .23
<PER-SHARE-GAIN-APPREC> (.46)
<PER-SHARE-DIVIDEND> .09
<PER-SHARE-DISTRIBUTIONS> .04
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 11.40
<EXPENSE-RATIO> .95
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 15
<NAME> GROWTH INVESTORS PORTFOLIO
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
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<RECEIVABLES> 89,315
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<OTHER-ITEMS-ASSETS> 6,647
<TOTAL-ASSETS> 9,678,886
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<OVERDISTRIBUTION-NII> 0
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<ACCUM-APPREC-OR-DEPREC> 156,162
<NET-ASSETS> 9,391,654
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<NET-INVESTMENT-INCOME> 83,709
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<APPREC-INCREASE-CURRENT> (77,323)
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<DISTRIBUTIONS-OF-INCOME> 55,626
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<NUMBER-OF-SHARES-SOLD> 378,718
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<SHARES-REINVESTED> 6,037
<NET-CHANGE-IN-ASSETS> 4,413,538
<ACCUMULATED-NII-PRIOR> 55,987
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<GROSS-EXPENSE> 72,329
<AVERAGE-NET-ASSETS> 6,999,148
<PER-SHARE-NAV-BEGIN> 11.87
<PER-SHARE-NII> .14
<PER-SHARE-GAIN-APPREC> .10
<PER-SHARE-DIVIDEND> .07
<PER-SHARE-DISTRIBUTIONS> .02
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 12.02
<EXPENSE-RATIO> .95
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 16
<NAME> TECHNOLOGY PORTFOLIO
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<INVESTMENTS-AT-COST> 12,910,944
<INVESTMENTS-AT-VALUE> 12,625,682
<RECEIVABLES> 180,074
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<TOTAL-ASSETS> 12,932,487
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<SENIOR-LONG-TERM-DEBT> 0
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<TOTAL-LIABILITIES> 762,110
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<ACCUMULATED-NII-CURRENT> 44,425
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<ACCUMULATED-NET-GAINS> 5,155
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (285,262)
<NET-ASSETS> 12,170,377
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<EXPENSES-NET> 21,515
<NET-INVESTMENT-INCOME> 44,425
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<APPREC-INCREASE-CURRENT> (285,262)
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<NUMBER-OF-SHARES-SOLD> 1,232,682
<NUMBER-OF-SHARES-REDEEMED> 4,100
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 12,170,377
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<GROSS-EXPENSE> 42,022
<AVERAGE-NET-ASSETS> 5,255,424
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> .08
<PER-SHARE-GAIN-APPREC> (.17)
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<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 9.91
<EXPENSE-RATIO> .95
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
