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ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
SEMI-ANNUAL REPORT
JUNE 30, 1997
(UNAUDITED)
The following Semi-Annual Report for the Alliance Variable Products Series
Fund, Inc. (the "Fund") includes financial information for the eighteen
Portfolios of the Fund which were active as of June 30, 1997. 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, 1997
Dear Shareholder:
We are pleased to provide you with investment results for each of the Alliance
Variable Product Series Fund's Portfolios for the six-month period ended June
30, 1997. For your convenience, an overview of market activity affecting
investment performance is provided below.
U.S. ECONOMIC REVIEW AND OUTLOOK
After a first quarter growth sprint of nearly 5%, the U.S. economy slowed to
catch its breath during the second quarter, led by a slowdown in consumer
spending and construction. As growth moderated, inflation remained benign. The
core rate of inflation, which excludes the volatile food and energy components,
dipped to 2.4% in June, its lowest level in more than three decades. The U.S.
bond market posted modest gains through June as interest rates fell on all
maturities. Meanwhile, the stock market has been exceptionally strong, with the
Dow Jones Industrial Average passing 8000 for the first time on July 16.
After raising interest rates for the first time in more than two years in
March, Fed officials have remained in a neutral stance in the face of a more
rapid-than-expected cooling in the economy and better-than-expected inflation
news. In his July testimony to Congress, Fed Chairman Alan Greenspan admitted
to the possibility that, "current developments are part of a once or twice a
century phenomenon that will carry productivity trends...to a new, higher
track."
Our outlook for the U.S. financial markets assumes that the U.S. economy will
move onto a sustainable slow-to-moderate growth path during the next 12 to 18
months. While a pause in consumer spending appears to have pushed growth down
during the second quarter of 1997, that weakness is unlikely to continue given
the growth in real income of more than 3% and record-high consumer confidence.
We believe overall growth of the U.S. economy should average close to 3.5% for
1997, while growth in 1998 should slow to around 2.5%.
REVIEW OF FOREIGN MARKETS
Outside the U.S., particularly in Europe, Japan, and Latin America, there are
increasing signs of economic recovery. International equities, which have
under-performed U.S. equities for several years, are quite attractively valued
at this point. Consequently, as recovery becomes clearer and more sustained,
we should see strong performance in international equity markets.
The first half of 1997 was particularly good in the European markets. The
worst performing European market during this period was the U.K., which gained
8.5% according to the Dow Jones Global Index-United Kingdom. During the first
six months of the year, Dow Jones Global Indices for markets in Switzerland,
the Netherlands, and Spain all rose by 35% or more. However, due to the
strength of the U.S. dollar, investment returns from these markets were more
moderate for U.S. investors.
Emerging debt prices have continued to rise, although at a slower pace than in
the past two years as higher U.S. interest rates negatively impacted emerging
market debt prices. However, bond markets in Mexico and Argentina continued to
outperform the U.S. due to strong economic growth and benign inflationary
pressures.
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Meanwhile, returns in most Asian markets have been quite disappointing in 1997,
though China, India, and Taiwan have been notable exceptions, producing double
digit returns. While many of the Asian economies are recovering, we see some as
having their growth constrained. Inflation levels across Asia are stable, and
interest rates are likely to move lower in a number of Asian countries. Growth
rates, while slowing down, are still strong relative to the rest of the world.
The following pages contain commentaries about investment activity for each of
the Fund's Portfolios. We appreciate your investment in the Portfolios of
Alliance Variable Products Series Fund and look forward to reporting future
investment results.
Sincerely,
/s/ John D. Carifa
John D. Carifa
Chairman and President
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CONSERVATIVE INVESTORS PORTFOLIO
INVESTMENT OBJECTIVE
The Conservative Investors Portfolio seeks the highest total return without,
in the view of the Fund's Advisor, undue risk to principal by investing in a
diversified mix of publicly traded equity and fixed income securities.
MARKET REVIEW
The fixed income markets underwent a change in trend and tone during the first
six months of 1997. At the beginning of the year, data suggested that economic
growth, was accelerating and that it was likely the Federal Reserve would
raise interest rates. This expectation was reflected along the yield curve by
rising quality spreads. In anticipation of the Fed's move, your Portfolio
assumed a more defensive position. After the Fed Funds rate was increased in
late March, the bond market began to exhibit renewed stability in response to
a distinct slowing in economic activity. As a result, we increased your
Portfolio's exposure to higher yielding securities and mortgage-backed
securities to capture the higher returns available as quality spreads
narrowed.
INVESTMENT RESULTS
For the six month period ended June 30, 1997, the Conservative Investors
Portfolio returned 5.36%+. Its benchmark, a 30/70 composite of the S&P 500
Stock Index (30%) and the Lehman Brothers Government/Corporate Bond Index
(70%), yielded an 8.10% return. Separately, the S&P 500 Stock Index posted a
20.60% return and the Lehman Brothers Government/Corporate Bond Index had a
2.74% return. The fixed income portion of your Portfolio, which is the
dominant asset class, outperformed the Bond Index. The equity component of
your Portfolio, however, did not match the S&P 500 because it does not include
as high a proportion of large cap stocks as the S&P 500 and it was these
stocks which fueled the market's rally. The continued overperformance of large
cap stocks in comparison to the rest of the market has persisted for an
unusually long period of time and produced an historically large performance
gap. Without knowing the timing, we believe the extraordinary dominance of the
large capitalization stocks will end and participation in the market's
movement will again broaden as it has in the past. Additional investment
results appear on page A-26.
INVESTMENT OUTLOOK
Throughout the last 15 years, the U.S. equity markets have produced
historically high rates of return. A large part of these extraordinary returns
cannot simply be accounted for by higher corporate profits and lower interest
rates. Other factors include the end of the Cold War, more liberalized markets
at home and abroad, well-behaved inflation, record inflows into the equity
market, and an increase in foreign investments as a result of the strong
dollar. While we expect these trends to continue, we remain cautious about
U.S. equity valuations for the remainder of the year.
PORTFOLIO STRATEGY
We will continue to retain our current investment position until our forecasts
for the economy and interest rates change. As previously mentioned, this
position includes increased exposure to higher yielding securities and
mortgage-backed securities. We will also increase our cash position as prices
rise to levels that we believe are vulnerable to corrections.
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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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GROWTH INVESTORS PORTFOLIO
INVESTMENT OBJECTIVE
The Growth Investors Portfolio seeks the highest total return consistent with
what the Fund's Advisor considers to be reasonable risk by investing in a
diversified mix of publicly traded equity and fixed income securities.
MARKET REVIEW
We are encouraged by both domestic and international investment trends that
began to emerge in the second quarter of the year. The S&P 500 continued to
post record gains and is being fueled by large capitalization stocks. Investors
are well aware of the U.S. economy's superior track record compared with other
developed nations, especially in terms of economic growth and job creation.
International stocks showed signs of improved relative performance as the
underlying economies of both Japan and Europe seem to be nearing a period of
sustainable economic growth.
INVESTMENT RESULTS
For the six months ended June 30, 1997, the Growth Investors Portfolio provided
a total return of 9.54%+. Its benchmark, a 70/30 composite of the S&P 500 Stock
Index (70%) and the Lehman Brothers Government/Corporate Bond Index (30%)
yielded a 15.35% return. Separately, the S&P 500 Stock Index posted a 20.60%
return and the Lehman Brothers Government/Corporate Bond Index had a 2.74%
return. The Portfolio's performance was negatively affected by the continued
concentration of money inflows into a relatively small number of large
capitalization stocks and U.S. domestic indexed funds. This skewed
outperformance in favor of large index stocks has persisted for an unusually
long time. In the past, such marked outperformance has reversed, and actively
managed portfolios have bested the index. Even though we cannot predict when
this reversal will occur, history shows that eventually this gap will close.
Additional investment results appear on page A-26.
INVESTMENT OUTLOOK
Second quarter investment results appear encouraging with expectations for
continued moderate growth with negligible inflation and wage increases. In the
second quarter, we also saw a rally in both the bond and stock markets,
however, the continued outperformance of stocks, particularly in the large cap
sector, should signal added caution. While we expect these trends to continue,
we remain cautious about U.S. equity valuations for the remainder of the year.
PORTFOLIO STRATEGY
Portfolio construction will continue to be driven by our assessment of the
relative attractiveness of U.S. and international equities as well as U.S.
fixed income securities. As stock prices continue to rise, we intend to expand
our cash position as a defense against significant future declines.
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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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TOTAL RETURN PORTFOLIO
INVESTMENT OBJECTIVE
The Total Return 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 equity market continues to show strong earnings growth with the S&P 500
posting record gains again this year. Overall, economic growth, which had risen
to 3.8% at the end of 1996, further accelerated to 4.9% during the first
quarter of 1997. Volatility of returns increased in late March when the Federal
Reserve increased interest rates 0.25%. Such preemptive tightening moves by the
Fed had not been seen in two years. And these moves raised uncertainty that the
growth aspect of the economic cycle had peaked. However, despite this fear,
both the economy and corporate profits have remained strong, driving stock
prices even higher. The U.S. bond market posted modest gains through June as
interest rates fell on all maturities. In the second quarter, the bond market
rallied as data was released indicating that the economy had slowed from its
unsustainable first quarter pace, inflation remained dormant, and the Fed was
unlikely to make any sustained moves in interest rates. Overall, GDP growth
slowed to 2.2% in the second quarter.
INVESTMENT RESULTS
The Total Return Portfolio posted a 9.80%+ return for the six month period
ended June 30, 1997. While its benchmark, a 60/40 composite of the S&P 500
Stock Index (60%) and the Lehman Brothers Government/Corporate Bond Index (40%)
had a 13.46% return, the Portfolio underperformed its benchmark for two
reasons. Our stock selection discipline is based upon valuation measures that
have led us to avoid the types of high-multiple securities that have driven the
overperformance of the S&P 500. As a result, our Portfolio does not contain as
many of the large capitalization stocks that comprise the S&P 500. We were also
subject to adverse stock selection this quarter, particularly in certain
technology and health care issues. Additional investment results appear on page
A-26.
INVESTMENT OUTLOOK
We expect the economy to slow somewhat from its torrid pace, but we do not see
signs of imminent recession. Evidence that the economic cycle has slowed
slightly will continue to bolster the stock market, but we do not foresee the
types of gains that we have seen in the past two and one half years. With
multi-quarter growth trending above the level historically considered to be
non-inflationary, Federal Reserve policy makers will continue to closely
monitor inflationary pressures with a bias towards increasing rates at the
first sign of economic overheating.
PORTFOLIO STRATEGY
For the equity portion of the Portfolio, we will maintain our focus on stocks
that have the most reasonable valuation and seek a defensive dividend yield and
a high degree of sector and industry diversification. High quality corporate
bonds and mortgage-backed securities outperformed government securities during
the most recent reporting period, and we anticipate that this trend will
continue. Therefore, we will maintain the Portfolio's increased allocation to
these fixed income sectors.
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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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GROWTH AND INCOME PORTFOLIO
INVESTMENT OBJECTIVE
The Growth and Income 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 stocks.
MARKET REVIEW
The market has been underpinned by a remarkable period of strong earnings
growth coupled with declining inflation rates. The six-year long era of
moderate economic growth has not yet resulted in bottlenecks that foster higher
prices, but the economy cannot grow above trend for long without causing the
inflation rate to reverse its course and begin to increase.
INVESTMENT RESULTS
The Growth and Income Portfolio posted a 14.38%+ return for the six month
period ended June 30, 1997, underperforming its benchmarks, the S&P 500 Stock
Index, which posted a 20.60% return and the Lipper Growth & Income Funds
Average, which resulted in a 15.52% return. The Portfolio's returns lagged
those of the S&P 500 for the quarter and the first six months of the year. The
Portfolio also lagged the returns of the Lipper Growth and Income Fund's
Average, but by a lesser amount. This underperformance is attributable to two
factors, one market-related and one stock-related.
With regard to the market, 1997 has been characterized by extreme
outperformance of stocks in the largest capitalization category. Through June
15, the 10 largest stocks in the S&P 500 Stock Index returned more than 30%
versus less than 19% for the next 490. These 10 stocks are also among the most
expensive in the market, trading at an average price-earnings multiple of 26
times 1997 earnings per share as compared to 19 times 1997 earnings per share
for the next 490. Our stock selection discipline is based upon valuation
measures that have led us to avoid these types of high-multiple securities.
Therefore, our performance has suffered as these stocks have continued to rise.
We have also been subject to adverse stock selection this quarter, particularly
in certain technology and health care issues. Additional investment results
appear on page A-26.
INVESTMENT OUTLOOK
Looking forward, we expect the economy to slow somewhat from its torrid pace,
but we do not see signs of imminent recession. In this environment, corporate
profits should weaken. Evidence that the economic cycle has slowed slightly
will continue to bolster the stock market, but we do not foresee the types of
gains that we have seen in the past two and one half years. We will continue
to use a quantitative evaluation model and look for price to earnings ratios
that are lower than the S&P 500.
PORTFOLIO STRATEGY
The prices of many stocks do not incorporate anything but perfection going
forward, and we would expect these stocks to suffer disproportionately in the
face of unforeseen bad news. We therefore maintain our focus upon stocks that
have the most reasonable valuations. We continue to seek a defensive dividend
yield and a high degree of sector and industry diversification. Finally, we
continue to rely on Alliance's internal research capabilities in selecting
stocks that we expect to deliver superior performance.
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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.
A-7
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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.
INVESTMENT RESULTS
Your Portfolio's total return was 10.42%+ for the first six months of 1997.
This compares with 20.60% for the overall U.S. stock market, represented by the
S&P 500 Stock Index, and with 19.55% for the Russell 1000 Growth Stock Index,
which tracks large-cap U.S. stocks. Additional investment results appear on
page A-26.
MARKET REVIEW
Three months ago the stock market was undergoing a sharp correction which saw
the S&P 500 Stock Index drop about 10% and Nasdaq and smaller capitalization
issues fare considerably worse. There was widespread concern that the economy
was growing too rapidly, that inflation would resurface and that the Federal
Reserve would continue to push up interest rates.
Remarkably, all of these fears evaporated and the market has moved well into
new high ground. Economic statistics appear to suggest a slowing of economic
activity to a more sustainable pace. Inflation is at very low levels and it is
now widely assumed that the Federal Reserve will not further tighten credit
any time soon.
The market has continued to be led by the very largest capitalization stocks
with the broader market lagging well behind.
The current environment of moderate growth and low inflation is very favorable
to financial assets. On the other hand, the market has made an extraordinary
advance and is at a valuation level which leaves little margin for
disappointment. The continued concentration of market leadership is also of
concern as it has reached historically extreme levels.
The Growth Portfolio has achieved good long term results with an investment
style that emphasizes growth at a reasonable price and a mix of large and
mid-cap stocks, rather than reliance solely on large blue chip issues. Recent
market trends have made it difficult for any portfolio not concentrated
entirely in the largest capitalization stocks to keep up with the S&P 500. We
believe the best long term result will be achieved by consistent application
of the investment style that has served us well for many years rather than
"chasing" market sectors which have shown recent strength.
INVESTMENT OUTLOOK
Barring an unforeseen catalyst which upsets the status quo, the market may
well continue to move higher. We are quite optimistic about the longer term
outlook for equities, but would point out that returns in recent years have
been well above the long-term trend. Investors should expect more moderate
gains in the years ahead.
The Portfolio continues to emphasize technology and financial service issues
with little change in the major holdings.
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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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INTERNATIONAL PORTFOLIO
INVESTMENT OBJECTIVE
The International 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
Most regions in which your Portfolio's assets are invested, primarily Japan
and Europe, with exposure to Pacific ex-Japan and Latin America, showed
positive returns for the period. While the U.S. market continued its ascent,
U.S. dollar investors in the international markets experienced mixed results
during the second quarter of 1997. Currency movements were also mixed, as the
dollar strengthened significantly against the currencies on Continental Europe
and many of the Asian currencies excluding the Yen, but weakened relative to
the British Pound and Japanese Yen.
INVESTMENT RESULTS
For the six month period ended June 30, 1997, the International Portfolio
achieved a total return of 10.41%+ on a net asset value basis while its
benchmark, the Morgan Stanley Capital International Europe, Australia, Far East
Index (MSCI EAFE) returned 11.36%. Our philosophy is to remain approximately
neutral relative to the MSCI Index (minus the U.S.) and we seek to add value
through stock selection.
Our stock selection in Japan was effective; we purchased financial stocks
during the early part of the second quarter and are now overweight in that
sector in addition to the technology sector. Within Europe, the hedge on the
French Franc that we implemented in May added to our performance, while our
positions in French financials and sterling sensitive stocks in the United
Kingdom detracted from our performance. Latin American equity exposure that we
built up in the first quarter added to performance, while our Pacific ex-Japan
weighting detracted from performance relative to the benchmark. Additional
investment results appear on page A-26.
INVESTMENT OUTLOOK
Europe
Europe continued to experience rising markets in the second quarter of 1997,
but the rising dollar caused these markets to generally underperform from a
U.S. dollar perspective. The dollar strengthened significantly against the
Continental European currencies, especially the Deutschemark. To a large
extent, this was a result of the continuing movement toward convergence to
European Monetary Union (EMU). We believe EMU will start on time, but will
include a fairly broad list of participants and a weaker set of convergence
criteria. As a result, we believe the new Euro will be a relatively weak
currency. We implemented a hedge against the French Franc in May as we expect
the French Franc to weaken with or without EMU. The U.K. is likely to be a
holdout from EMU. This perception, along with the U.K.'s relatively strong
economy and rising interest rates, has resulted in a continued strengthening of
the pound relative to the other European currencies.
Japan
Underlying economic trends show signs of a pick-up in growth in Japan, in
spite of the recent weakness in retail and auto sales. We see this weakness as
a temporary result of the binge in consumer spending that preceded the recent
excise tax hike. Capital spending appears sound and recent business surveys
and industrial production reports slightly exceeded expectations.
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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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It also seems to us that real progress is being made in the financial sector.
Pacific Ex-Japan
The handover of Hong Kong back to China created ebullient enthusiasm for stocks
traded in Hong Kong. We expect little overall change in the business
environment and renewed opportunity for growth there. Thailand suffered from a
significant devaluation in the Baht as Thai authorities were forced to allow
the Baht to float. The Baht effect spread throughout Asia, resulting in
downward pressure on both currencies and stock markets in several countries,
especially the Philippines, Indonesia and Malaysia. Growth is slow in Australia
and the economy is sluggish.
Latin America
In Latin America, the second quarter of 1997 saw a continuation of the strong
performance we saw in the first quarter. In fact, most Latin markets had even
stronger performance in the second quarter then they did in the first,
particularly Argentina, Brazil and Mexico.
PORTFOLIO STRATEGY
Volatility increased in the second quarter, and we expect more of the same in
the second half of the year. We maintain our focus on research driven stock
selection and are ever mindful of the strong relationship between fundamental
value and price. The increased volatility has created more opportunities to
adjust positions in the Portfolio. As a consequence, our turnover went up a bit
over the quarter as we sold on strength and bought on weakness.
Europe
In the U.K. we are concentrating on stocks that are benefiting from domestic
growth and de-emphasizing stocks with export oriented businesses. We have added
to consumer stocks and are also keeping a close watch on restructurings which
continue to offer some of the best investment opportunities in Europe for a
broad range of companies.
Japan
Our investment strategy in Japan continues to focus on those companies that
have superior growth characteristics relative to the rest of Japan and that are
attractively valued. This leads us to a number of financial, pharmaceutical and
technology stocks. We see the pending big bang in the financial sector as a
plus for the stronger financial firms in Japan. It will, by necessity, result
in massive changes and concomitant unleashing of value.
Pacific Ex-Japan
Fortunately, we had virtually eliminated our exposure to Thailand prior to the
Baht's devaluation and reduced exposure to the Philippines. Malaysia continues
to be a significant holding, and we have added to our positions here. We think
the Malaysian markets have overreacted, as many of the companies there are
fundamentally strong and now look attractively priced.
Latin America
In the first quarter of 1997, we built up positions in a few Latin stocks that
seemed particularly attractive to us. We will probably add to these positions
as prices come down and may include additional names. We continue to find
interesting opportunities among privatization stories, particularly in the
telecom sector; and several of the larger banks seem well priced especially in
Mexico and Brazil.
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PREMIER GROWTH PORTFOLIO
INVESTMENT OBJECTIVE
The Premier Growth Portfolio seeks growth of capital by investing predominately
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 have been consistently bullish over the last several years based on our
belief that the broad economic framework provided an excellent backdrop for
equity investing. The economy has found a steady balance with moderate growth
and moderate inflation. At the same time, U.S. corporate earnings, based on
worldwide technology leadership and the benefits of several years of cost
cutting, have advanced and balance sheets are in excellent shape to promote
further growth. Many U.S. companies are also in a preeminent position to
capitalize on global demand growth. This has led to an improved return on
equity for large U.S. growth companies from a historic range of 13-14% to the
current level of about 20%.
INVESTMENT RESULTS
Premier Growth Portfolio achieved a total return of 19.64%+ for the six month
period ended June 30, 1997. The S&P 500 Stock Index returned 20.60% and the
Russell 1000 Growth Index had a 19.55% return. Subsequent to the end of the
quarter, the Portfolio has continued to perform well both absolutely and
relative to these two indices. Additional investment results appear on page
A-26.
INVESTMENT OUTLOOK
During the post World War II period, price earnings multiples, which were at
20 times earnings, left the market little room for error. We can say the same
thing today. Judging by the same historic yardsticks, at this point in time
equities are probably 10% or more overvalued versus the bond equivalent. Even
so, we are not inclined to move into the bearish camp. Rather, we would prefer
to be thought of as cautious bulls. The fundamentals are clearly better today
than they have been at any time over the last 50 years. The Cold War is over,
and there is tremendous world momentum towards democratic/capitalist policies.
This represents a great opportunity for well-run companies and enables
governments to engineer middle of the road monetary, fiscal and political
solutions.
PORTFOLIO STRATEGY
We continue to strive to keep our portfolio-weighted price earnings multiple
reasonable by balancing our exposure to high technology on the one hand with
an equal exposure to lower valued stocks in the financial area on the other.
We expect the market to become increasingly volatile in the months ahead.
Therefore, we intend to continue to take profits during bouts of euphoria and
utilize periods of temporary weakness to capitalize on attractive price
opportunities.
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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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QUASAR PORTFOLIO
INVESTMENT OBJECTIVE
The Portfolio seeks growth of capital by pursuing aggressive investment
policies. While it invests primarily in the equity securities of
small-capitalization 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 investment opportunities
outside of the United States.
INVESTMENT RESULTS
From December 31, 1996 through June 30, 1997, the Quasar Portfolio gained
8.82%+ while its benchmark, the Russell 2000 Index, was up 10.20%. Additional
investment results appear on page A-26.
REVIEW OF INVESTMENT STRATEGY
Throughout the past six months, the Portfolio has benefited from many of the
investment strategies implemented during 1995 and 1996. We continue to
underweight technology holdings relative to the Portfolio's benchmark, the
Russell 2000 Index. However, given the tremendous sell-off in the technology
sector that took place in the first quarter of 1997, we are now looking at the
sector very closely for the first time in over nine months.
The Portfolio continued to overweight energy holdings relative to the Russell
2000 with energy issues accounting for 13% of net assets at the time of this
report. In addition to the offshore drilling operators which we have owned for
some time, we have recently added two new holdings in the oil tanker market. We
see a tightening in the demand/supply for oil tankers similar to the demand
crunch faced by drilling rig operators over the last two years. Both OMI and
Knightsbridge Tankers are likely beneficiaries of this trend. We continue to
feel confident about the prospects for the U.S. refining business and have
increased our exposure to Valero Energy.
Within the retail sector, we continue to like Tommy Hilfiger, Nine West, and
Timberland. One addition to the portfolio in this area is Stride Rite
Corporation. We believe they are in the midst of a turnaround, and both the
Stride Rite and Keds brands are being reintroduced into the marketplace. In
addition, Stride Rite has been awarded the Tommy Hilfiger footwear license for
men and boys. The launch of this line is currently ahead of schedule.
We are also quite bullish on the retail end of the automotive sector and
believe that Circuit City's Car Max will benefit as the automobile industry
consolidates, bringing tremendous cost savings and efficiency.
INVESTMENT OUTLOOK
The market continues to benefit from modest economic growth and modest
inflation. Companies reporting better than average earnings are gaining
attention in the marketplace, driving market valuations higher.
Looking forward, our outlook for the U.S. economy and equities remains
positive. However, an increase in interest rates would put some pressure on
price/earnings ratios, which means that stocks with higher P/Es could become
vulnerable. As a result, we continue to focus on the underlying earnings of
each company, working to avoid the risk of unsustainable valuations.
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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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REAL ESTATE INVESTMENT PORTFOLIO
INVESTMENT OBJECTIVE
The Real Estate Investment Portfolio seeks growth of capital combined with a
high and growing level of current income by investing in the equity securities
of companies involved in the real estate industry, primarily Real Estate
Investment Trusts (REITs). The portfolio will focus on those companies which
have the best underlying real estate fundamentals as determined by our
proprietary real estate research methodology.
MARKET REVIEW
The U.S. commercial real estate market continues its robust recovery which
began in 1993. Broadly speaking, the pricing of commercial real estate, as with
any other commodity, is a function of supply and demand. Supply in this case is
the amount of new or vacant space. Demand is a function of economic and
demographic growth. We have seen very little new construction over the past six
years as the economy has expanded steadily. As a result, the real estate market
is currently very strong.
Publicly traded real estate companies control approximately 4% of the
income-producing real estate in this country. Although small, this market share
has grown dramatically in recent years. REITs, for example, have increased
their collective market capitalization from $50 billion to $95 billion in the
past 18 months. In any short period of time, the issuance of new REIT equity
can affect results as much as underlying fundamentals. This occurred in the
first half of 1997 when a robust new issue market hurt REIT returns. During
this time, the market, as measured by the NAREIT Equity Index, was up 5.70%,
substantially below the 20.60% return recorded by the S&P 500 Index.
INVESTMENT RESULTS
Over the six months ended June 30, 1997 the Real Estate Investment Portfolio
produced a total return of 6.50%+ compared to the aforementioned 5.70% for its
benchmark. Throughout the period, the portfolio was overweighted in those
property types and geographic markets which had the best real estate dynamics.
The strongest real estate markets in the United States today are in California
and the Northeast--especially for suburban office and upscale hotel properties.
The weakest markets are luxury apartment and retail properties in the sunbelt.
By continuing to focus on the better real estate markets, the Portfolio should
produce superior earnings growth. Additional investment results appear on page
A-26.
INVESTMENT OUTLOOK
Presently, the overall economy looks outstanding, and we continue to enjoy an
ideal operating environment for the companies in which we invest. In the REIT
market, we expect to see very little new construction of commercial real estate
in the 65 geographic markets we track. Growth is steady, capital is plentiful
and cheap, and the correlation with the overall stock market and interest rates
remains low.
PORTFOLIO STRATEGY
The Portfolio's focus is unlikely to shift dramatically over the remainder of
1997. Due to long construction lead times, we are confident that office and
upscale hotel properties will see little new competition over the next several
years. As long as the economy continues to expand (even moderately), and
valuations do not become untenable, companies that own these types of
properties in strong geographic markets will remain the backbone of our
portfolio. We project that the current portfolio mix of companies will produce
approximately 14% earnings growth this year, well in excess of the REIT market
in general or the components of the S&P 500. As a result, we are optimistic
about prospects for the remainder of the year.
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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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TECHNOLOGY PORTFOLIO
INVESTMENT OBJECTIVE
The Portfolio is a diversified investment that seeks growth of capital and
invests for capital appreciation and, only incidentally, for income. Portfolio
assets are primarily invested in securities of companies expected to benefit
from technological advances and improvements.
INVESTMENT RESULTS
Your Portfolio gained 5.02%+ during the six-month period under review. This
compares with a total return of 16.54% for the Pacific Stock Exchange High
Technology Index during the same time period. Additional investment results
appear on page A-26.
A major reason for the Portfolio's short-term underperformance was our
investment commitment to networking stocks and our unwillingness to sell these
securities when short-term issues arose.
According to the Soundview Technology Index, networking stocks declined 37% in
the first calendar quarter as sentiment turned against these stocks, in spite
of their positive long-term outlook. We have stayed the course, however, and
have been rewarded by a significant recovery in the weeks since May 30.
For the three months ended June 30, 1997, the Portfolio achieved a total return
of 18.74%, exceeding the 16.65% return of the Pacific Stock Exchange High
Technology Index. The Portfolio's positive relative performance has continued
as of this writing as the technology sector, driven by strong relative June
earnings reports, has outperformed the broader market averages in July. We
remain optimistic about our opportunities as we focus on stock selection based
on company fundamentals and our consistent investment strategy.
INVESTMENT STRATEGY
The repeated pattern in investor sentiment about technology stocks, from
euphoria to despair and back to euphoria again, offers us two choices: try to
anticipate those swings by raising (and then spending) lots of cash or leave
that psychological roller coaster to others and focus instead on enduring
investment themes and the companies best positioned to exploit them.
We have opted for the latter approach for several reasons. First, anticipating
shifts in psychology is even more difficult than predicting changes in business
fundamentals. Second, sentiment changes can sometimes last a very short time
and can disorient the investor who pays them too much attention. Finally, we
remain convinced that the secular outlook for technology is as attractive as
any industry, and that our efforts are best spent finding the best companies
with an attractive long-term outlook.
INVESTMENT OUTLOOK
Convergence may be an overused term in technology but we are returning to it
once more because it provides an excellent overview of today's favorable
technology fundamentals. It describes several positive developments: 1) the
emergence of Microsoft's NT operating system as a platform for most new
client/server applications; 2) growth in the power of the Pentium
microprocessor to a point where this architecture can now process many
power-hungry, enterprise-type tasks in combination with NT; 3) a significant
decline in the price of computer memory, or DRAM's 4) steady improvement in the
speed or bandwidth of most corporate networks; 5) a new breed of distributed
software applications which are improving the financial returns of many
technology savvy corporations; and 6) the spreading use of technology in most
worldwide markets because of improved ease of use, the greater affordability of
these products and the phenomenon of the Internet. It's an exciting
environment.
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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.
A-14
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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. Many of these companies have established a reputation for paying
regular dividends and for increasing their common-stock dividends over time.
INVESTMENT RESULTS
For the period ended June 30, 1997, the total return for your Portfolio was
5.58%+. This compares with returns of - 2.47% and 9.47%, respectively for the
Dow Jones Electric Utility Index and the New York Stock Exchange Utility Index.
For the same time period, the Lehman Brothers Long-Term Government Bond Index
returned 2.22%. Additional investment results appear on page A-26.
MARKET REVIEW
Income-producing securities performed poorly versus the broad
large-capitalization market during the period under review, largely due to
interest rates, which rose during most of the first six months of the fiscal
year. This situation was a response to very strong first quarter GDP growth and
Fed tightening. As a result, utility stocks, which generally move in the
opposite direction of interest rates, suffered.
In addition, the winter of 1996-1997 was very mild. Electrical generation and
natural gas prices were negatively affected. These effects showed up in poor
earnings for the electric and gas utility companies.
The best performing group of stocks was the regional Bells. These stocks
benefited from continued strong earnings growth from the addition of second
telephone lines and high levels of communications traffic. In addition, the
opening of the local telephone monopoly was postponed by court activity.
The Utility Income Portfolio has avoided the regional Bells because we believe
the Bells' monopoly will soon be forced open, causing margins and earnings to
suffer. This avoidance has led to near-term underperformance of the NYSE
Utilities Index, though your Portfolio exceeded the returns of the Dow Jones
Utilities Index. The difference is that in the NYSE Index, the regional Bells
are well represented, while they are absent from the Dow Jones Index. While the
Portfolio does not own any of the regional Bells, over 13% of the Portfolio's
assets are invested in telephone companies. We believe that several of
telephone holdings are well positioned to take advantage of deregulation.
INVESTMENT OUTLOOK
The market has been underpinned by a remarkable period of strong earnings
growth coupled with declining inflation rates. The six-year long era of
moderate economic growth has not yet resulted in bottlenecks that foster higher
prices, but the economy cannot grow above its trend for long without causing
the inflation rate to reverse its course and begin to increase. The prices of
many stocks do not incorporate anything but perfection going forward, and we
would expect these stocks to suffer disproportionately in the face of
unforeseen bad news.
We have maintained our focus upon stocks that have the most reasonable
valuations. We continue to seek a defensive dividend yield and a high degree of
sector and industry diversification. Finally, we continue to rely on Alliance's
internal research capabilities in selecting stocks that we expect to deliver
superior performance.
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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.
A-15
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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.
INVESTMENT RESULTS
The environment for privatizations continues to be quite favorable. This being
the case, your Portfolio outperformed the Morgan Stanley EAFE Index for the
six-month period under review, returning 13.87%+, which compares to 11.36% for
the index. Additional performance information appears on page A-26.
MARKET REVIEW
In general, international markets have continued to perform well over the
course of 1997. However, it is our opinion that international equity markets
remain undervalued relative to the U.S. and that signs of recovery, notably in
Europe, will be greeted with further price appreciation from the major stock
markets of the world.
The Worldwide Privatization Portfolio has performed well for the first two
quarters of 1997. Our focus in Western Europe and Latin America, as well as in
Eastern Europe and Russia, has helped to achieve strong relative returns
against other international equity funds. The Portfolio remains broadly
diversified, with holdings in over 50 countries, representing 45 industry
subsets.
Looking forward, we expect 1997 to be another record year for new privatization
transactions. Major areas for new stock issues include Brazil, Eastern Europe,
China and, later on in the year, Africa. Because underwriters recognize the
long-term advantages of placing issues with a Portfolio dedicated to
privatization stocks, your Portfolio continues to benefit from its size and
prestige by gaining access to allocations of new privatization issues. We look
forward to continuing to secure substantial portions of new privatization
equity offerings.
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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.
A-16
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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.
INVESTMENT RESULTS
For the six month period ended June 30, 1997, the total return for the Global
Bond Portfolio has declined 1.51%+. The comparable Salomon Brothers World
Government Bond Index (unhedged and in U.S. dollar terms) performed similarly,
declining 1.23% over the same period. Additional investment results appear on
page A-26.
MARKET REVIEW
Investment results for the first half of 1997 were dominated by the
appreciation of the U.S. dollar, particularly against European currencies.
While returns in local currency terms from European markets have generally been
superior to those from the U.S. bond market, the currency effect has detracted
in excess of 10% from those returns when measured in U.S. dollars. In
hindsight, a more aggressive currency hedging strategy would have protected the
returns from European markets.
The exception within Europe was the performance of the U.K. market which
performed well in the aftermath of the general election. The pound strengthened
markedly against other European currencies as interest rates have been
tightened modestly.
The Japanese market has been volatile both in bond and foreign exchange terms
but, over the year-to-date period, provided returns that are marginally
superior to those available in the U.S. market.
INVESTMENT OUTLOOK
Prospects for the second half of 1997 appear favorable. The U.S. bond market
has shrugged off fears shown earlier in the year that growth would lead to
higher inflation and yields have slowly moved downwards producing positive
returns for bond investors. This has been justified on two fronts; 1) a
reduction in the pace of growth threatening to push up inflation, and 2) no
discernible signs of inflation occurring as a result of the rapid pace of
growth during the first quarter. This creates a generally favorable outlook for
the second half with the likelihood that yields can continue downwards.
Further European currency weakness is expected and will be met with a more
aggressive foreign exchange hedging strategy to better protect the U.S. dollar
returns. The continuing prospects for a broad and weak European Monetary Union
(EMU) should produce good returns from those markets still incorporating risk
premium for not meeting the criteria, primarily Spain and Italy. The bond
markets in Europe look reasonably well underpinned as governments maintain
tight fiscal policies in order to meet the EMU criteria, thus containing growth
at moderate levels.
The Japanese market looks set to see yields rising over the second half of the
year as economic activity picks up to a level seen as "self-sustainable" by the
Bank of Japan. Interest rates are likely to be moved higher from the 0.50%
"emergency" level that has been maintained for almost two years. Such a
tightening of policy is, however, likely to see the Japanese yen appreciate
against the U.S. dollar, thus producing attractive returns to U.S. investors.
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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.
A-17
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GLOBAL DOLLAR PORTFOLIO
INVESTMENT OBJECTIVE
The Global Dollar 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
typically rated 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
The U.S. bond market posted modest gains through June as interest rates fell on
all maturities. After trading lower during the first quarter, the market
rallied as data was released indicating that the economy had slowed from its
unsustainable first quarter pace, inflation remained dormant and the Federal
Reserve was unlikely to make any sustained moves in interest rates.
Outside the U.S., emerging market debt prices continued to rise although at a
slower pace than in the past two years, as sound economic policies and solid
fundamentals promoted growth. The rallying U.S. market, driven by continuing
growth with little inflationary pressures, led to the increase in emerging
markets asset prices. Bond markets in Mexico and Argentina continued to
outperform the U.S., due to strong economic growth and inflationary pressures.
Bulgaria was the best year-to-date performer. Proactive efforts by the
Bulgarian government regarding the expected implementation of the currency
board on July 1 caused a positive reaction in the market.
The Russian economy continues to show gradual improvement, with inflation and
interest rates continuing to fall and the economy beginning to show signs of
growth. Concerns that economic policies are unsustainable in Brazil have
negatively impacted returns in this country. Brazil is running both a large
fiscal and current account deficit which has weighed heavily on consumer
sentiment. Also, fiscal reforms are proving difficult to get through the
country's Congress. However, foreign direct investment is surging, and we
remain optimistic that fiscal policies will be implemented.
INVESTMENT RESULTS
For the six months ended June 30, 1997, the Portfolio returned 10.91%+ on a net
asset value basis. Its benchmark, the J.P. Morgan Emerging Markets Bond Index,
which is composed of dollar denominated sovereign emerging market bonds,
achieved an 11.54% return. The Portfolio modestly underperformed over the last
six months. This can be attributed to the broad diversification of holdings in
the Portfolio as compared to the index, which is composed of 10 countries.
Although this diversification limits the Portfolio's ability to concentrate
assets in those securities experiencing the most significant price gains, it
helps to moderate the volatility of returns and reduce risk in the Portfolio.
Additional investment results appear on page A-26.
INVESTMENT OUTLOOK
We expect U.S. economic activity to accelerate somewhat in the third quarter.
Consumer confidence has reached new highs, real income is growing solidly and
the labor market remains strong, with unemployment at 5.0%. We expect this
re-acceleration to be moderate, with economic growth averaging 3.0% to 3.5% for
1997. With multi-quarter growth trending a-
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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.
A-18
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bove the level historically considered to be non-inflationary, Federal Reserve
policy makers will continue to closely monitor inflationary pressures with a
bias towards increasing rates at the first sign of economic overheating.
We continue to be optimistic about emerging market debt. However, as risk
premiums have narrowed from their highs in 1994, we expect the pace of price
appreciation of these securities to slow.
PORTFOLIO STRATEGY
Credit conditions are improving in Latin America and the rating agencies should
begin to upgrade these sovereign credits. Therefore, we will continue to invest
in these countries. However, the outlook for Asia is much more guarded, and we
anticipate reducing our exposure to this region.
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A-19
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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.
INVESTMENT RESULTS
We are pleased to report that Alliance Variable Product Series - North American
Government Income Portfolio posted a solid 5.82%+ return over the most recent
period. This compares with 3.09% for the Lehman Brothers Aggregate Bond Index,
and 2.76% for the Lehman Brothers Intermediate-Term Government Bond Index,
which measures performance of bonds in the 1 - 10 year maturity range.
Additional performance information appears on page A-26.
MARKET REVIEW
After poor performance in the first quarter, fixed income returns produced
better returns in the second quarter. The market traded off in the second
quarter, as expectations heightened around a Federal Reserve preemptive rate
hike.
Outside the U.S., emerging debt prices continued to rise although at a slower
pace than in the past two years. Higher U.S. interest rates negatively impacted
emerging market debt prices. However, bond markets in Mexico and Argentina
continued to outperform the U.S., due to strong economic growth and benign
inflationary pressures.
INVESTMENT OUTLOOK
We expect U.S. economic activity to accelerate somewhat in the third quarter.
Consumer confidence has reached a new high, real personal income is growing
solidly, and the labor market is strong, with unemployment at 5.0%. We expect
this re-acceleration to be moderate, with economic growth averaging 3.0% to
3.5% for 1997. With multi-quarter growth trending above the level historically
considered to be non-inflationary, Federal Reserve policymakers will continue
to closely monitor inflationary pressures; we remain confident that they will
increase interest at the first clear sign of overheating.
The Mexican economy continues to perform strongly, led by strong growth in
investment and exports. Growth is expected to remain strong at around 4% in
1997 and inflation and interest rates should both decline during the upcoming
year.
In Canada, the Bank of Canada raised short term interest rates as a combination
of firm growth and weakness in the Canadian dollar caused overall monetary
conditions to fall below the Bank of Canada's desired range, forcing them to
change policy. We expect that interest rates will continue to increase
throughout 1997 and, consequently, we anticipate reducing our holdings in
Canada for the short term and look for opportunities in other markets. We
expect that inflation will not increase beyond 2% which should keep domestic
long-term bond yields in the 6% to 6.9% range.
In Argentina, the economy is gaining momentum and is on track for at least 5%
growth this year, after 4.4% growth in 1996. The strength of the economic
expansion is producing a rapid increase in tax revenues while fiscal
expenditures remain largely unchanged from last year's levels. The decision by
Standard & Poor's to raise many Argentine corporate debt ratings underscores
the economic progress being made in this country.
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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.
A-20
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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
The U.S. economy continued its strong performance in early 1997, led by
continued strength in the labor market. The unemployment rate dropped to 20
year lows and wages continued to climb. In response to the continued economic
strength and what were viewed as mounting inflationary pressures, the Federal
Reserve Bank raised short-term interest rates in March. Overall, economic
growth, which had risen to 3.8% at the end of 1996, further accelerated to
5.9% during the first quarter of 1997.
More recent data indicate that the economy slowed sharply during the second
quarter, led by a decline in consumer spending. Retail sales of merchandise
declined 3.8% in the second quarter while real construction spending fell 2.0%
in April - May. The production side of the economy experienced a more muted
slowdown: manufacturing output growth slowed to 4.4% (from 5.3% in the first
quarter) and total hours worked increased by only 1.9% (versus 4.1% in the
first quarter). However, labor market strength continued unabated in the second
quarter as non-farm payroll growth rose to 237,000 new jobs per month from
first quarter's average of 228,000 per month.
In spite of an increase in wage pressures, inflation remained very well-behaved
during the first half of 1997. Consumer prices increased at a 1.4% annual rate
in the first six months of the year and are up 2.3% from the same period last
year. Meanwhile, producer prices dropped for six months in a row through June
and are down 0.1% on a year-over-year basis.
The U.S. bond market posted modest gains through June as interest rates fell on
all maturities. After trading lower during the first quarter, the market
rallied as data was released indicating that the economy had slowed from its
unsustainable first quarter pace, inflation remained dormant, and the Fed was
unlikely to make any sustained moves in interest rates. Among the investment
grade sectors, mortgages were the best performing sectors followed by
corporates, asset-backed and governments.
INVESTMENT RESULTS
For the six months ended June 30, 1997, the Portfolio returned 2.94%+ on a net
asset value basis versus 2.79% for its benchmark (a composite of 67% Lehman
Brothers Government Index and 33% Lehman Brothers Corporate Index). Additional
investment results appear on page A-26.
INVESTMENT OUTLOOK
We expect economic activity to accelerate somewhat in the third quarter.
Consumer confidence has reached new highs, real income is growing solidly, and
the labor market remains strong, with unemployment at 5.0%. We expect this
re-acceleration to be moderate, with economic growth averaging 3.0% to 3.5% for
1997. With multi-quarter growth trending above the level historically
considered to be non-inflationary, Federal Reserve policy makers will continue
to closely monitor inflationary pressures with a bias towards increasing rates
at the first sign of economic overheating.
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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.
A-21
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PORTFOLIO STRATEGY
We are pleased to report that the Portfolio posted solid returns relative to
its benchmark for the first half of 1997. This outperformance can be attributed
to the solid gains realized by the mortgage and corporate holdings in the
Portfolio. As interest volatility decreased late in the period, we increased
the Portfolio's holdings of high quality corporate bonds and mortgage-backed
securities, both of which outperformed government securities during the period.
We anticipate this trend to continue during the upcoming period and will
maintain the Portfolio's increased allocation to these sectors.
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A-22
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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
INVESTMENT RESULTS
For the six months ended June 30, 1997, the Money Market Portfolio returned
2.47% and paid a 7-day yield (on June 30) of 5.11%. During the same time
period, the total return for the Salomon Brothers 3-Month Treasury Bill Index
was 5.14%. Additional investment results appear on page A-26.
MARKET AND STRATEGY REVIEW
Throughout the second quarter, the Portfolio overweighted asset-backed
commercial paper securities due to their relatively high yields. Following the
May 20 Federal Open Market Committee meeting, an effort was made to concentrate
the maturities of Portfolio holdings right around the June 30 quarter end. As
those holdings matured, cash became available to invest in new issues, which
tend to be readily available following calendar quarters.
OUTLOOK
As we enter the second half of 1997, any acceleration or inflationary worries
which caused the Fed to take preemptive measures appear to have subsided. Thus,
the likelihood exists of a non-volatile third quarter with the Fed not
tinkering very much with interest rates.
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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.
A-23
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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.
INVESTMENT RESULTS
The Portfolio's total return for the six months ended June 30, 1997 was 1.82%+,
which compares to the Merrill Lynch 1-3 Year Treasury Index's return of 2.88%
for the same period. Additional investment results appear on page A-26.
MARKET ENVIRONMENT
U.S. bond market returns were subdued for the first quarter due to the increase
in interest rates by the Federal Reserve. However, as data was released
indicating that the economy had slowed from its unsustainable first quarter
pace, inflation remained dormant and the Federal Reserve was unlikely to make
any additional increases in interest rates, the market rallied and posted
modest gains through the first half of 1997.
Outside the U.S, Canadian bonds performed well in the wake of an interest rate
increase by the Bank of Canada. A combination of firm growth and weakness in
the Canadian dollar caused overall monetary conditions to fall below the Bank
of Canada's desired range, forcing them to change policy. The Australian and
New Zealand economies continued to display signs of weakness. Both the Reserve
Bank of Australia and New Zealand eased monetary conditions during the second
quarter as a result of weak economic activity and better than expected
inflation. As a result, bond prices moved higher in both markets. In Europe,
the driving force behind excellent bond markets returns has been the quest for
monetary union. However, the change in several governments within Europe
reflects the voters unhappiness with long term structural unemployment
problems, particularly in France. The elections in France and Great Britain
added to market volatility during the period, creating speculation and
uncertainty in the markets. The U.S. dollar continued to perform very well
against the core European currencies.
INVESTMENT OUTLOOK
We expect economic activity to accelerate somewhat in the third quarter.
Consumer confidence has reached new highs, real income is growing solidly and
the labor market remains strong, with unemployment at 5.0%. We expect this
re-acceleration to be moderate, with economic growth averaging 3.0% to 3.5% for
1997. With multi-quarter growth trending above the level historically
considered to be non-inflationary, Federal Reserve policymakers will continue
to closely monitor inflationary pressures with a bias towards increasing rates
at the first sign of economic overheating.
In Europe, we expect that well-behaved inflation will be offset by moderately
improving growth prospects. European Monetary Union is closer to becoming a
reality. Despite the occasional comment about postponing European Monetary
Union, we believe it will proceed and the historically weaker markets,
particularly Spain and Italy, will outperform Germany and the other stronger
countries.
The Mexican economy continues to perform strongly, led by strong in investment
and exports. Growth is ex-
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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.
A-24
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pected to remain strong at around 4% in 1997 and inflation and interest rates
should both decline during the upcoming year. Investor confidence in Mexico's
economic policies is growing and the decision to prepay the remaining $3.5
billion owed to the U.S.. for the 1995 peso bailout is another positive step in
their efforts to restore Mexico's credibility in international capital markets.
The Congressional and Gubernatorial elections which took place in June caused
an increase in market volatility but we believe that the elections will have
little impact on economic policy which is centered with the President, who
remains popular. While near term volatility may affect returns in the short
term, we remain confident that long term growth prospects are good.
- -------------------------------------------------------------------------------
A-25
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
INVESTMENT RESULTS
- -------------------------------------------------------------------------------
INVESTMENT RESULTS AS OF JUNE 30, 1997
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, 1997.
ASSET ALLOCATION PORTFOLIOS
CONSERVATIVE INVESTORS PORTFOLIO
o Six Months 5.36%*
o One Year 11.55%
o Since Inception (10/94) 9.95%
GROWTH INVESTORS PORTFOLIO
o Six Months 9.54%*
o One Year 16.10%
o Since Inception (10/94) 13.66%
TOTAL RETURN PORTFOLIO
o Six Months 9.80%*
o One Year 21.33%
o Since Inception (12/92) 11.76%
COMMON STOCK/EQUITY SECURITIES PORTFOLIOS
GROWTH AND INCOME PORTFOLIO
o Six Months 14.38%*
o One Year 29.55%
o Five Years 18.49%
o Since Inception (1/91) 14.48%
GROWTH PORTFOLIO
o Six Months 10.42%*
o One Year 26.76%
o Since Inception (9/94) 28.66%
INTERNATIONAL PORTFOLIO
o Six Months 10.41%*
o One Year 10.56%
o Since Inception (12/92) 12.31%
PREMIER GROWTH PORTFOLIO
o Six Months 19.64%*
o One Year 35.42%
o Five Years 21.47%
o Since Inception (6/92) 21.42%
QUASAR PORTFOLIO
o Six Months 8.82%*
o Since Inception (8/96) 15.78%*
REAL ESTATE INVESTMENT PORTFOLIO
o Since Inception (1/97) 6.50%*
TECHNOLOGY PORTFOLIO
o Six Months 5.02%*
o One Year 16.99%
o Since Inception (1/96) 10.59%
UTILITY INCOME PORTFOLIO
o Six Months 5.58%*
o One Year 10.27%
o Since Inception (5/94) 10.74%
WORLDWIDE PRIVATIZATION PORTFOLIO
o Six Months 13.87%*
o One Year 20.57%
o Since Inception (9/94) 16.07%
INCOME-ORIENTED PORTFOLIOS
GLOBAL BOND PORTFOLIO
o Six Months -1.51%*
o One Year 4.36%
o Five Years 6.99%
o Since Inception (7/91) 8.22%
GLOBAL DOLLAR GOVERNMENT PORTFOLIO
o Six Months 10.91%*
o One Year 29.13%
o Since Inception (5/94) 17.76%
NORTH AMERICAN GOVERNMENT
INCOME PORTFOLIO
o Six Months 5.82%*
o One Year 15.72%
o Since Inception (5/94) 10.09%
<PAGE>
U.S. GOVERNMENT/HIGH-GRADE
SECURITIES PORTFOLIO
o Six Months 2.94%*
o One Year 8.90%
o Since Inception (9/92) 5.71%
SHORT-TERM INCOME PORTFOLIOS
MONEY MARKET PORTFOLIO
o Six Months 2.47%*
o Annualized 7-Day Yield 5.11%
SHORT-TERM MULTI-MARKET PORTFOLIO
o Six Months 1.82%*
o One Year 6.38%
o Five Years 3.19%
o Since Inception (11/90) 3.88%
- -------------------------------------------------------------------------------
(*) 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 as
of June 30, 1997.
A-26
<PAGE>
- -------------------------------------------------------------------------------
THE BENCHMARKS
The benchmarks described below represent unmanaged indices; the Lipper averages
include funds that have generally similar investment objectives to the
respective Alliance portfolio, though some funds included in the averages may
have somewhat different investment policies.
S&P 500 -- The Standard & Poor's 500-Stock Index includes 500 U.S. stocks and
is a common measure of the performance of the U.S. stock market.
RUSSELL 1000 -- The Russell 1000 Growth Index represents performance of 1000 of
the largest U.S. companies by market capitalization.
RUSSELL 2000 -- The Russell 2000 Index consists of 2000 small-and mid-cap
companies. The average market capitalization is approximately $500 million.
MSCI EAFE -- The Morgan Stanley Capital International EAFE Index measures the
overall performance of stock markets in 20 countries within Europe, Australia
and the Far East.
DJ UTILITY -- The Dow Jones Utility Average is a price weighted average which
consists of 15 actively traded stocks representing a cross-section of
corporations involved in various phases of the utility industry.
NYSE UTILITY -- The New York Stock Exchange Utility Index is comprised of all
utility issues traded on the Exchange.
LB AGGREGATE -- The Lehman Brothers Aggregate Index is composed of the Mortgage
Backed and Asset Backed Securities Indices, and the Government/ Corporate Bond
Index.
LB GOV'T/CORP. BOND -- The Lehman Brothers Government/Corporate Bond Index
represents a combination of the two indices.
LB GOV'T BOND -- The Lehman Brothers Government Index is composed of the
Treasury Bond and Agency
LB CORP. BOND -- 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.
LB INTERMEDIATE GOV'T BOND -- The Lehman Brothers Intermediate Government Bond
Index is composed of U.S. Government agency and Treasury securities with
maturities of one to ten years.
SB WORLD GOV'T BOND -- The Salomon Brothers World Government Bond Index
represents performance of government bond markets in 14 countries.
ML 1-3 YEAR TREASURY -- The Merrill Lynch 1-3 Year Treasury Index is composed
of U.S. Treasury securities with maturities between one and three years.
JPM EMBI -- The J.P. Morgan Emerging Market Bond Index is composed of
dollar-denominated restructured sovereign bonds; a large percentage of the
index is made up of Brady Bonds.
LIPPER GROWTH & INCOME FUNDS AVERAGE -- The Lipper Growth & Income Funds
Average reflects performance of 565 mutual funds.
LIPPER BALANCED FUNDS AVERAGE -- The Lipper Balanced Funds Average reflects
performance of 317 mutual funds.
LIPPER INTERNATIONAL FUNDS AVERAGE -- The Lipper International Funds Average
reflects performance of 383 mutual funds.
LIPPER SHORT WORLD MULTI-MARKET INCOME FUNDS AVERAGE -- The Lipper Short World
Multi-Market Income Funds Average reflects performance of 33 mutual funds.
NAREIT INDEX -- The NAREIT Index represents returns for the National
Association of Real Estate Investment Trust Equity Index.
PSE HIGH TECHNOLOGY -- The Pacific Stock Exchange High Technology Index is
comprised of technology stocks traded on the Pacific Stock Exchange.
A-27
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
TEN LARGEST HOLDINGS
JUNE 30, 1997 (UNAUDITED)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PREMIER GROWTH PORTFOLIO
COMPANY U.S. $ VALUE PERCENT OF NET ASSETS
<S> <C> <C>
Philip Morris Cos., Inc. $ 17,097,687 6.3%
MBNA Corp. 12,932,287 4.8
Intel Corp. (common stock and warrants) 12,820,372 4.8
UAL Corp. 10,949,063 4.1
Microsoft Corp. 9,434,569 3.5
Pfizer, Inc. 9,237,350 3.4
Merck & Co., Inc. 9,004,500 3.3
Home Depot, Inc. 8,895,212 3.3
Cisco Systems, Inc. 8,851,194 3.3
Morgan Stanley, Dean Witter, Discover & Co. 8,438,312 3.1
$107,660,546 39.9%
</TABLE>
<TABLE>
<CAPTION>
GROWTH AND INCOME PORTFOLIO
COMPANY U.S. $ VALUE PERCENT OF NET ASSETS
<S> <C> <C>
Philip Morris Cos., Inc. $ 6,201,406 3.4%
Schering-Plough Corp. 5,591,800 3.0
Merck & Co., Inc. 5,444,100 2.9
Texaco, Inc. 5,437,500 2.9
First Union Corp. 4,800,750 2.6
Cisco Systems, Inc. 4,774,809 2.6
Chase Manhattan Corp. 4,659,000 2.5
Morgan Stanley, Dean Witter, Discover & Co. 4,478,500 2.4
PacifiCare Health Systems, Inc. C1.B 3,958,312 2.2
National Semiconductor Corp. 3,839,548 2.1
$49,185,725 26.6%
</TABLE>
A-28
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
TEN LARGEST HOLDINGS
JUNE 30, 1997 (UNAUDITED)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
TOTAL RETURN PORTFOLIO
COMPANY U.S. $ VALUE PERCENT OF NET ASSETS
<S> <C> <C>
U.S. Treasury Notes (4.75%-7.25%, 8/31/98-10/15/06) $10,265,917 30.9%
Philip Morris Cos., Inc. 727,750 2.2
Merck & Co., Inc. 662,400 2.0
Morgan Stanley, Dean Witter, Discover & Co. 659,287 2.0
Mobil Corp. 642,850 1.9
First Union Corp. 619,750 1.8
Schering-Plough Corp. 593,650 1.8
Cisco Systems, Inc. 564,112 1.7
Texaco, Inc. 489,375 1.5
PacifiCare Health Systems, Inc. C1.B 472,444 1.4
$15,697,535 47.2%
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL PORTFOLIO
COMPANY U.S. $ VALUE PERCENT OF NET ASSETS
<S> <C> <C>
Sumitomo Bank International (common stock and
0.75%, 5/31/01 conv. bond) $1,408,698 2.4%
Societe Generale 941,018 1.6
Akzo Nobel N.V. 907,219 1.5
Bank of Tokyo-Mitsubishi Bank 886,931 1.5
Rohm Co., Ltd. 823,591 1.4
TDK Corp. 807,102 1.4
DDI Corp. 730,710 1.2
Novartis AG 682,615 1.1
Nomura Securities Co. Ltd. 675,449 1.1
Yamanouchi Pharmaceutical Co. Ltd. 671,785 1.1
$8,535,118 14.3%
</TABLE>
A-29
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
TEN LARGEST HOLDINGS
JUNE 30, 1997 (UNAUDITED)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
UTILITY INCOME PORTFOLIO
COMPANY U.S. $ VALUE PERCENT OF NET ASSETS
<S> <C> <C>
FPL Group, Inc. $ 718,575 4.4%
American Electric Power, Inc. 709,800 4.3
Allegheny Power Systems, Inc. 627,156 3.8
AirTouch Communications, Inc. 624,000 3.8
CMS Energy Corp. 606,300 3.7
CINergy Corp. 581,369 3.6
Edison International 547,250 3.3
Cablevision Systems Corp. 542,500 3.3
Williams Cos., Inc. $3.50 conv. pfd. 487,038 3.0
NIPSCO Industries, Inc. 483,356 3.0
$5,927,344 36.2%
</TABLE>
<TABLE>
<CAPTION>
GROWTH PORTFOLIO
COMPANY U.S. $ VALUE PERCENT OF NET ASSETS
<S> <C> <C>
WorldCom, Inc. (common and 8.0% conv. pfd.) $10,380,707 5.7%
Cisco Systems, Inc. 9,589,913 5.3
CUC International, Inc. 8,614,922 4.7
Intel Corp. 7,221,281 3.9
American Express Co. 5,259,700 2.9
3Com Corp. (common stock and 10.25%, 11/01/01 conv. bond) 5,169,797 2.8
Ceridian Corp. 4,964,375 2.7
Merck & Co., Inc. 4,957,650 2.7
American International Group, Inc. 4,682,906 2.6
Travelers Group, Inc. 4,519,437 2.5
$65,360,688 35.8%
</TABLE>
A-30
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
TEN LARGEST HOLDINGS
JUNE 30, 1997 (UNAUDITED)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
WORLDWIDE PRIVATIZATION PORTFOLIO
COMPANY U.S. $ VALUE PERCENT OF NET ASSETS
<S> <C> <C>
Deutsche Telekom AG $ 765,300 2.3%
Telecomunicacoes Brasileras S.A. (ADR) 682,875 2.0
Akzo Nobel N.V. 644,098 1.9
Commonwealth Sevum Lab. Ltd. 605,691 1.8
Pharmacia & Upjohn, Inc. 590,750 1.8
SK Telecom Ltd. (ADR) 535,919 1.6
Electricidade de Portugal S.A. 535,856 1.6
National Grid Group Plc 475,242 1.4
Usinor Sacilor 474,382 1.4
British Energy Plc 465,488 1.4
$5,775,601 17.2%
</TABLE>
<TABLE>
<CAPTION>
CONSERVATIVE INVESTORS PORTFOLIO
COMPANY U.S. $ VALUE PERCENT OF NET ASSETS
<S> <C> <C>
U.S. Treasury Notes (6.125%-6.875%, 8/31/98-5/15/06) $ 6,364,869 24.9%
Federal National Mortgage Association
(6.00%-7.00%, 4/01/11-5/01/26) 1,585,562 6.2
U.S. Treasury Bond, 6.625%, 02/15/27 934,410 3.7
Government National Mortgage Association
(7.50%, 1/15/27-3/15/27) 618,136 2.4
Federal Home Loan Bank (7.00%, 9/01/11-1/01/12) 559,836 2.2
Time Warner, Inc. (common stock and 8.375%, 3/15/23 bond) 500,745 2.0
St. George Bank Ltd., 7.15%, 10/15/05 422,620 1.7
Zurich Capital Trust I, 8.376%, 06/01/37 414,474 1.6
Corporacion Andina de Fomento, 7.25%, 03/01/07 401,043 1.6
Deutsche Bank Financial, Inc., 6.70%, 12/13/06 342,080 1.3
$12,143,775 47.6%
</TABLE>
A-31
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
TEN LARGEST HOLDINGS
JUNE 30, 1997 (UNAUDITED)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GROWTH INVESTORS PORTFOLIO
COMPANY U.S. $ VALUE PERCENT OF NET ASSETS
<S> <C> <C>
U.S. Treasury Notes (6.125%-7.875%, 4/15/98-5/15/06) $1,216,221 9.4%
Federal National Mortgage Association
(6.00%-7.00%, 1/01/11-5/01/26) 276,738 2.1
Travelers Group, Inc. 184,962 1.4
Philip Morris Cos., Inc. 179,719 1.4
Morgan Stanley, Dean Witter, Discover & Co. 174,403 1.3
MBNA Corp. 153,825 1.2
U.S. Industries, Inc. 149,625 1.2
Government National Mortgage Association, 7.50%, 01/15/27 149,053 1.2
American Express Co. 149,000 1.1
Warner-Lambert Co. 136,675 1.1
$2,770,221 21.4%
</TABLE>
<TABLE>
<CAPTION>
TECHNOLOGY PORTFOLIO
COMPANY U.S. $ VALUE PERCENT OF NET ASSETS
<S> <C> <C>
Dell Computer Corp. $ 2,632,835 5.4%
COMPAQ Computer Corp. 2,262,900 4.7
Cisco Systems, Inc. 2,196,009 4.5
Oracle Corp. 1,769,583 3.6
Altera Corp. 1,581,628 3.3
Intel Corp. 1,512,221 3.1
Applied Materials, Inc. 1,443,937 3.0
Sanmina Corp. 1,358,963 2.8
Tellabs, Inc. 1,339,500 2.7
First Data Corp. 1,212,675 2.5
$17,310,251 35.6%
</TABLE>
A-32
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
TEN LARGEST HOLDINGS
JUNE 30, 1997 (UNAUDITED)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
QUASAR PORTFOLIO
COMPANY U.S. $ VALUE PERCENT OF NET ASSETS
<S> <C> <C>
Mohawk Industries, Inc. $1,047,537 3.2%
Parker Drilling Co. 902,238 2.7
OMI Corp. 891,225 2.7
Consolidated Freightways Corp. 866,250 2.6
Rowan Cos., Inc. 662,406 2.0
Bethlehem Steel Corp. 619,988 1.9
Evergreen Media Corp. 610,506 1.8
Nautica Enterprises, Inc. 600,841 1.8
Industrie Natuzzi S.p.A. (ADS) 581,688 1.7
GelTex Pharmaceuticals, Inc. 578,200 1.7
$7,360,879 22.1%
</TABLE>
<TABLE>
<CAPTION>
REAL ESTATE INVESTMENT PORTFOLIO
COMPANY U.S. $ VALUE PERCENT OF NET ASSETS
<S> <C> <C>
Crescent Real Estate Equities Co. $ 238,125 5.0%
Glenborough Realty Trust, Inc. 227,250 4.8
Starwood Lodging Trust 226,244 4.8
Excel Realty Trust, Inc. 195,175 4.1
Patriot American Hospitality, Inc. 191,250 4.1
Security Capital Industrial Trust 184,900 3.9
Essex Property Trust, Inc. 179,900 3.8
Beacon Properties Corp. 176,888 3.7
Storage USA, Inc. 175,950 3.7
Spieker Properties, Inc. 165,381 3.5
$1,961,063 41.4%
</TABLE>
A-33
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
INDUSTRY DIVERSIFICATION
JUNE 30, 1997 (UNAUDITED)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL PORTFOLIO
U.S. $ VALUE PERCENT OF NET ASSETS
<S> <C> <C>
Basic Industries $ 5,379,000 9.0%
Capital Goods 4,787,151 8.0
Consumer Manufacturing 2,200,242 3.7
Consumer Services 3,789,360 6.3
Consumer Staples 5,665,381 9.5
Energy 1,742,189 2.9
Financial Services 13,160,583 22.0
Healthcare 3,073,093 5.1
Multi-Industry 3,253,567 5.4
Technology 5,980,118 10.0
Transportation 767,867 1.3
Utilities 2,853,460 4.8
Time Deposit 7,190,000 12.0
Total Investments 59,842,011 100.0
Other Assets Less Liabilities 17,527 0.0
Net Assets $59,859,538 100.0%
</TABLE>
A-34
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
INDUSTRY DIVERSIFICATION
JUNE 30, 1997 (UNAUDITED)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
WORLDWIDE PRIVATIZATION PORTFOLIO
U.S. $ VALUE PERCENT OF NET ASSETS
<S> <C> <C>
Basic Industries $ 3,633,954 10.8%
Capital Goods 867,192 2.6
Consumer Manufacturing 522,446 1.6
Consumer Services 2,244,191 6.7
Consumer Staples 1,696,843 5.0
Energy 1,738,131 5.2
Financial Services 4,920,794 14.7
Healthcare 1,649,365 4.9
Multi-Industry 4,688 0.0
Technology 5,645,501 16.8
Transportation 785,109 2.3
Utilities 6,581,870 19.6
Time Deposit 2,243,000 6.7
Total Investments 32,533,084 96.9
Other Assets Less Liabilities 1,034,149 3.1
Net Assets $33,567,233 100.0%
</TABLE>
A-35
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
PREMIER GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
SHARES U.S. $ VALUE
------ ------------
COMMON STOCKS AND
OTHER INVESTMENTS--95.3%
CAPITAL GOODS--0.7%
ELECTRICAL EQUIPMENT--0.7%
General Electric Co................. 30,200 $ 1,974,325
-------------
CONSUMER SERVICES--20.3%
AIRLINES--6.1%
KLM Royal Dutch Airlines NV......... 18,776 579,709
Northwest Airlines Corp. Cl.A *.....135,060 4,938,131
UAL Corp. *.........................153,000 10,949,063
-------------
16,466,903
-------------
APPAREL--1.3%
Nike, Inc. Cl.B..................... 62,100 3,625,088
-------------
BROADCASTING &
CABLE--3.0%
AirTouch Communications, Inc. *.....215,500 5,899,313
Cox Communications, Inc. Cl.A *..... 50,100 1,202,400
Liberty Media Group Cl.A *.......... 37,937 902,189
-------------
8,003,902
-------------
ENTERTAINMENT &
LEISURE--1.3%
Disney (Walt) Co.................... 43,900 3,522,975
-------------
RESTAURANTS &
LODGING--1.2%
Marriot International, Inc.......... 22,600 1,387,075
McDonald's Corp..................... 35,300 1,705,431
-------------
3,092,506
-------------
RETAILING--7.4%
Home Depot, Inc.....................129,033 8,895,212
Kohls Corp. *....................... 45,700 2,419,244
Sears, Roebuck & Co.................107,900 5,799,625
Wal-Mart Stores, Inc................ 86,100 2,911,256
-------------
20,025,337
-------------
54,736,711
-------------
CONSUMER STAPLES--9.0%
COSMETICS--1.5%
Gillette Co......................... 41,500 3,932,125
-------------
FOOD--1.2%
Campbell Soup Co.................... 15,600 780,000
Coca-Cola Co........................ 38,300 2,585,250
-------------
3,365,250
-------------
TOBACCO--6.3%
Philip Morris Cos., Inc.............385,300 $ 17,097,687
-------------
24,395,062
-------------
ENERGY--2.3%
OIL & GAS SERVICES--2.3%
Baker Hughes, Inc................... 48,600 1,880,212
British Petroleum Co. Plc........... 18,400 1,377,700
Schlumberger Ltd.................... 23,700 2,962,500
-------------
6,220,412
-------------
FINANCE--22.5%
BANKING & CREDIT--11.6%
Citicorp............................ 28,300 3,411,919
First Bank System, Inc.............. 6,400 546,400
First Union Corp.................... 17,700 1,637,250
Household International, Inc........ 69,000 8,103,187
MBNA Corp...........................353,100 12,932,287
NationsBank Corp.................... 14,200 915,900
Norwest Corp........................ 61,100 3,436,875
U.S. Bancorp........................ 5,400 346,444
-------------
31,330,262
-------------
BROKERAGE & MONEY
MANAGEMENT--2.9%
Merrill Lynch & Co., Inc............132,200 7,882,425
-------------
INSURANCE--1.9%
American International Group, Inc... 19,900 2,972,563
MGIC Investment Corp................ 21,600 1,035,450
Progressive Corp.................... 11,400 991,800
-------------
4,999,813
-------------
MORTGAGE BANKING--3.0%
Federal National Mortgage
Association .....................185,500 8,092,438
-------------
OTHER--3.1%
Morgan Stanley, Dean Witter,
Discover & Co....................195,955 8,438,312
-------------
60,743,250
-------------
HEALTH CARE--13.9%
BIOTECHNOLOGY--0.7%
Amgen, Inc.......................... 33,000 1,917,094
-------------
DRUGS--6.8%
Merck & Co., Inc.................... 87,000 9,004,500
Pfizer, Inc......................... 77,300 9,237,350
-------------
18,241,850
-------------
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
PREMIER GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONT'D)
- -------------------------------------------------------------------------------
SHARES U.S. $ VALUE
------ ------------
MEDICAL PRODUCTS--1.9%
Johnson & Johnson................... 42,400 $ 2,729,500
Medtronic, Inc...................... 30,200 2,446,200
-------------
5,175,700
-------------
MEDICAL SERVICES--4.5%
Columbia/HCA Healthcare Corp........140,900 5,539,131
Oxford Health Plans, Inc. *......... 24,600 1,765,819
United Healthcare Corp.............. 94,800 4,929,600
-------------
12,234,550
-------------
37,569,194
-------------
MULTI INDUSTRY--1.9%
Tyco International Ltd.............. 71,400 4,966,763
-------------
TECHNOLOGY--24.3%
COMMUNICATIONS
EQUIPMENT--4.5%
Ericsson (L.M.) Telephone Co.
Cl.B (ADR)....................... 93,990 3,703,793
Lucent Technologies, Inc............ 16,321 1,176,132
Nokia Corp. (ADR)................... 96,700 7,131,625
-------------
12,011,550
-------------
COMPUTER HARDWARE--5.0%
COMPAQ Computer Corp. *............. 82,100 8,148,425
Dell Computer Corp. *............... 45,800 5,377,206
-------------
13,525,631
-------------
COMPUTER PERIPHERALS--0.7%
Seagate Technology, Inc. *.......... 56,200 1,977,538
-------------
COMPUTER SOFTWARE &
SERVICES--4.2%
First Data Corp..................... 45,900 2,016,731
Microsoft Corp. *................... 74,600 9,434,569
-------------
11,451,300
-------------
NETWORK SOFTWARE--3.4%
Ascend Communications, Inc. *....... 5,100 200,334
Cisco Systems, Inc. *...............131,800 8,851,194
-------------
9,051,528
-------------
SHARES OR
PRINCIPAL
AMOUNT
(000) U.S. $ VALUE
--------- ------------
SEMI-CONDUCTORS &
RELATED--5.1%
Applied Materials, Inc. *........... 11,300 $ 799,828
Intel Corp.......................... 4,900 693,809
warrants, expiring 3/14/98 *.....119,400 12,126,563
-------------
13,620,200
-------------
TELECOMMUNICATIONS--1.4%
WorldCom, Inc. *....................121,600 3,887,400
-------------
65,525,147
-------------
TRANSPORTATION--0.4%
RAILROADS--0.4%
Burlington Northern Santa Fe........ 11,200 1,006,600
-------------
Total Common Stocks and
Other Investments
(cost $206,211,838).............. 257,137,464
-------------
<PAGE>
SHORT-TERM INVESTMENTS--6.5%
COMMERCIAL PAPER--5.9%
General Electric Capital Corp.
6.18%, 7/01/97...................$16,097 16,097,000
-------------
TIME DEPOSIT--0.6%
State Street Bank and Trust Co.
5.25%, 7/01/97................... 1,532 1,532,000
-------------
Total Short-Term Investments
(amortized cost $17,629,000)..... 17,629,000
-------------
TOTAL INVESTMENTS--101.8%
(cost $223,840,838).............. 274,766,464
Other assets less liabilities--(1.8%) (4,804,300)
-------------
NET ASSETS--100.0%................... $ 269,962,164
=============
- -------------------------------------------------------------------------------
* Non-income producing security.
See Glossary of Terms on page B-49.
See Notes to Financial Statements.
B-2
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
GLOBAL BOND PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
- -------------------------------------------------------------------------------
PRINCIPAL
AMOUNT
(000) U.S. $ VALUE
----------- ------------
CANADA--4.3%
AGENCY OBLIGATION--4.3%
Province of British Columbia
7.50%, 12/31/03
(cost $813,138)........... GBP 500 $ 834,732
------------
FRANCE--9.7%
GOVERNMENT OBLIGATIONS--9.7%
Government of France
6.00%, 3/16/01............ XEU 750 884,989
8.50%, 11/25/02........... FRF 4,900 981,968
------------
Total French Securities
(cost $1,988,459)......... 1,866,957
------------
GERMANY--9.9%
GOVERNMENT OBLIGATIONS--9.9%
Federal Republic of Germany
5.875%, 5/15/00........... DEM 1,400 845,250
6.75%, 4/22/03 (a)........ 1,700 1,063,706
------------
Total German Securities
(cost $2,018,169)......... 1,908,956
------------
ITALY--4.6%
GOVERNMENT OBLIGATION--4.6%
Republic of Italy
6.25%, 3/01/02
(cost $853,777)........... LIRA 1,500,000 885,400
------------
JAPAN--9.2%
DEBT OBLIGATION--9.2%
Export Import Bank of Japan
4.375%, 10/01/03
(cost $1,729,494)......... JPY 180,000 1,772,597
------------
SPAIN--9.3%
GOVERNMENT OBLIGATION--9.3%
Kingdom of Spain
7.90%, 2/28/02
(cost $1,857,527)......... ESP 240,000 1,784,160
------------
SWEDEN--4.8%
GOVERNMENT OBLIGATION--4.8%
Kingdom of Sweden
7.75%, 12/31/03
(cost $919,439)........... GBP 550 $ 933,089
------------
UNITED STATES--36.0%
GOVERNMENT OBLIGATIONS--34.8%
U.S. Treasury Notes
6.25%, 2/15/03............ US$ 3,500 3,472,665
6.375%, 8/15/02........... 2,600 2,599,194
7.50%, 5/15/02............ 600 627,846
------------
6,699,705
------------
TIME DEPOSIT--1.2%
State Street Bank and Trust Co.
5.25%, 7/02/97............ 228 228,000
------------
Total United States Securities
(cost $6,907,946)......... 6,927,705
------------
MULTI-NATIONAL--9.9%
Asian Development Bank
5.625%, 2/18/02........... JPY 100,000 1,019,674
International Bank for
Reconstruction &
Development
4.50%, 3/20/03............ 90,000 890,715
------------
Total Multi-National Securities
(cost $1,866,078)......... 1,910,389
------------
TOTAL INVESTMENTS--97.7%
(cost $18,954,027)........ 18,823,985
Other assets less liabilities--2.3% 442,352
------------
NET ASSETS--100.0%............ $ 19,266,337
============
- -------------------------------------------------------------------------------
(a) Security segregated to collateralize forward exchange currency contracts
with a market value of $1,063,706. See Notes to Financial Statements.
B-3
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
GROWTH AND INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
- -------------------------------------------------------------------------------
SHARES U.S. $ VALUE
------ ------------
COMMON AND
PREFERRED STOCKS--96.9%
BASIC INDUSTRIES--3.8%
CHEMICALS--3.0%
Dow Chemical Co..................... 37,500 $ 3,267,187
Morton International, Inc........... 75,000 2,264,063
-------------
5,531,250
-------------
CONTAINERS--0.8%
Crown Cork & Seal, Inc.
4.5% conv. pfd................... 31,000 1,565,500
-------------
7,096,750
-------------
CAPITAL GOODS--4.4%
ELECTRICAL EQUIPMENT--1.4%
General Electric Co................. 40,800 2,667,300
-------------
ENGINEERING &
CONSTRUCTION--1.0%
Fluor Corp.......................... 33,000 1,821,187
-------------
MACHINERY--1.1%
Allied-Signal, Inc.................. 7,000 588,000
Cooper Industries, Inc.............. 27,000 1,343,250
-------------
1,931,250
-------------
POLLUTION CONTROL--0.9%
United Waste Systems, Inc. *........ 12,800 524,000
USA Waste Services, Inc. *.......... 31,000 1,197,375
-------------
1,721,375
-------------
8,141,112
-------------
CONSUMER
MANUFACTURING--2.3%
APPLIANCES--0.9%
Sunbeam Corp........................ 42,000 1,585,500
-------------
AUTO & RELATED--1.4%
Chrysler Corp....................... 54,000 1,771,875
Harley-Davidson, Inc................ 18,800 901,225
-------------
2,673,100
-------------
4,258,600
-------------
CONSUMER SERVICES--11.2%
AIRLINES--0.8%
Delta Air Lines, Inc................ 18,000 1,476,000
-------------
APPAREL--1.3%
Reebok International Ltd............ 54,000 2,524,500
-------------
BROADCASTING &
CABLE--3.1%
AirTouch Communications, Inc. *..... 54,000 $ 1,478,250
Comcast Corp. Cl.A SPL.............. 74,900 1,598,647
Liberty Media Group Cl.A *.......... 75,500 1,795,484
TCI Group Series A.................. 30,000 445,312
Viacom, Inc. Cl.B *................. 12,600 378,000
-------------
5,695,693
-------------
ENTERTAINMENT &
LEISURE--0.7%
Time Warner, Inc.................... 28,000 1,351,000
-------------
PRINTING & PUBLISHING--1.7%
New York Times Co. Cl.A............. 33,000 1,633,500
Reuters Holdings Plc Cl.B (ADR)..... 23,000 1,449,719
-------------
3,083,219
-------------
RETAILING--3.6%
Dayton Hudson Corp.................. 50,000 2,659,375
Federated Department Stores, Inc. *. 47,000 1,633,250
Sears, Roebuck & Co................. 44,000 2,365,000
-------------
6,657,625
-------------
20,788,037
-------------
CONSUMER STAPLES--12.1%
BEVERAGES--1.9%
Anheuser-Busch Cos., Inc............ 83,000 3,480,813
-------------
FOOD--4.2%
Campbell Soup, Co................... 66,600 3,330,000
General Mills, Inc.................. 28,000 1,823,500
Heinz (H.J.) Co..................... 56,000 2,583,000
-------------
7,736,500
-------------
RETAIL - FOOD--0.9%
Kroger Co. *........................ 62,000 1,798,000
-------------
TOBACCO--5.1%
Philip Morris Cos., Inc.............139,750 6,201,406
RJR Nabisco Holdings Corp........... 98,500 3,250,500
-------------
9,451,906
-------------
22,467,219
-------------
ENERGY--10.6%
OIL & GAS SERVICES--10.0%
Apache Corp......................... 32,500 1,056,250
Baker Hughes, Inc................... 2,700 104,456
BJ Services Co. *................... 18,800 1,008,150
B-4
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
GROWTH AND INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONT'D)
- -------------------------------------------------------------------------------
SHARES U.S. $ VALUE
------ ------------
Halliburton Co...................... 12,000 $ 951,000
Mobil Corp.......................... 51,400 3,591,575
Murphy Oil Corp..................... 18,000 877,500
Texaco, Inc......................... 50,000 5,437,500
Transocean Offshore, Inc............ 26,000 1,888,250
USX-Marathon Group..................126,500 3,652,688
-------------
18,567,369
-------------
PIPELINES--0.6%
Enron Corp.......................... 24,800 1,012,150
-------------
19,579,519
-------------
FINANCE--16.0%
BANKING & CREDIT--7.8%
Chase Manhattan Corp................ 48,000 4,659,000
First Bank System, Inc.............. 21,500 1,835,562
First Chicago NBD Corp.............. 22,448 1,358,104
First Union Corp.................... 51,900 4,800,750
MBNA Corp........................... 50,000 1,831,250
-------------
14,484,666
-------------
BROKERAGE & MONEY
MANAGEMENT--0.5%
Bear Stearns Cos., Inc.............. 26,000 888,875
-------------
INSURANCE--4.9%
Allstate Corp....................... 25,250 1,313,000
Exel Ltd............................ 11,300 596,075
General Reinsurance Corp............ 11,500 2,093,000
Hartford Financial Services
Group, Inc. ..................... 26,400 2,184,600
PennCorp Financial Group, Inc....... 40,000 1,540,000
PMI Group, Inc...................... 19,700 1,228,788
-------------
8,955,463
-------------
REAL ESTATE--0.4%
Security Capital Industrial Trust... 34,000 731,000
-------------
OTHER--2.4%
Morgan Stanley, Dean Witter,
Discover & Co....................104,000 4,478,500
-------------
29,538,504
-------------
HEALTH CARE--11.6%
BIOTECHNOLOGY--0.9%
Centocor, Inc. *.................... 53,400 1,657,069
-------------
DRUGS--6.0%
Merck & Co., Inc.................... 52,600 $ 5,444,100
Schering-Plough Corp................116,800 5,591,800
-------------
11,035,900
-------------
MEDICAL PRODUCTS--1.5%
Boston Scientific Corp. *........... 31,000 1,904,562
St. Jude Medical, Inc. *............ 24,000 936,000
-------------
2,840,562
-------------
MEDICAL SERVICES--3.2%
Columbia/HCA Healthcare Corp........ 48,300 1,898,794
PacifiCare Health Systems,
Inc. Cl.B *...................... 62,000 3,958,312
-------------
5,857,106
-------------
21,390,637
-------------
MULTI INDUSTRY--2.8%
Tyco International Ltd.............. 54,600 3,798,112
Whitman Corp........................ 55,000 1,392,188
-------------
5,190,300
-------------
TECHNOLOGY--18.2%
AEROSPACE & DEFENSE--0.9%
General Dynamics Corp............... 23,000 1,725,000
-------------
COMMUNICATIONS
EQUIPMENT--0.8%
Scientific-Atlanta, Inc............. 71,000 1,553,125
-------------
COMPUTER HARDWARE--1.7%
COMPAQ Computer Corp. *............. 30,750 3,051,938
-------------
COMPUTER PERIPHERALS--1.2%
Seagate Technology, Inc. *.......... 65,000 2,287,188
-------------
COMPUTER SOFTWARE &
SERVICES--0.6%
Electronic Data Systems Corp........ 26,000 1,066,000
-------------
NETWORK SOFTWARE--2.6%
Cisco Systems, Inc. *............... 71,100 4,774,809
-------------
B-5
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
GROWTH AND INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONT'D)
- -------------------------------------------------------------------------------
SHARES U.S. $ VALUE
------ ------------
SEMI-CONDUCTORS &
RELATED--5.9%
Applied Materials, Inc. *........... 16,000 $ 1,132,500
Atmel Corp. *....................... 83,800 2,351,637
Intel Corp.......................... 19,400 2,746,919
Micron Technology, Inc. *........... 20,000 798,750
National Semiconductor Corp. *......125,373 3,839,548
-------------
10,869,354
-------------
TELECOMMUNICATIONS--3.9%
AT&T Corp........................... 58,200 2,040,638
Deutsche Telekom AG................. 39,000 940,875
Teleport Communications Group,
Inc. Cl.A *...................... 58,000 1,975,625
WorldCom, Inc. *.................... 71,600 2,288,962
-------------
7,246,100
-------------
OTHER--0.6%
Solectron Corp. *................... 14,700 1,029,000
-------------
33,602,514
-------------
TRANSPORTATION--1.7%
RAILROADS--1.4%
Canadian Pacific Ltd................ 42,000 1,194,375
Union Pacific Corp.................. 21,000 1,480,500
-------------
2,674,875
-------------
TRUCKING--0.3%
Xtra Corp........................... 12,200 536,038
-------------
3,210,913
-------------
SHARES OR
PRINCIPAL
AMOUNT
(000) U.S. $ VALUE
--------- -------------
UTILITIES--2.2%
ELECTRIC & GAS--2.2%
CMS Energy Corp..................... 16,000 $ 564,000
FPL Group, Inc...................... 32,650 1,503,941
NIPSCO Industries, Inc.............. 33,500 1,383,969
Pinnacle West Capital Corp.......... 19,000 571,187
-------------
4,023,097
-------------
Total Common and Preferred Stocks
(cost $154,014,852).............. 179,287,202
-------------
SHORT-TERM INVESTMENTS--4.2%
COMMERCIAL PAPER--3.9% American Express Co.:
5.56%, 7/01/97...................$ 1,520 1,520,000
6.00%, 7/02/97................... 5,645 5,644,059
-------------
7,164,059
-------------
TIME DEPOSIT--0.3%
State Street Bank and Trust Co.
5.25%, 7/01/97................... 579 579,000
-------------
Total Short-Term Investments
(amortized cost $7,743,059)...... 7,743,059
-------------
TOTAL INVESTMENTS--101.1%
(cost $161,757,911).............. 187,030,261
Other assets less liabilities--(1.1%) (2,093,648)
-------------
NET ASSETS--100.0%................... $ 184,936,613
=============
- -------------------------------------------------------------------------------
* Non-income producing security.
See Glossary of Terms on page B-47.
See Notes to Financial Statements.
B-6
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
SHORT-TERM MULTI-MARKET PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
- -------------------------------------------------------------------------------
PRINCIPAL
AMOUNT
(000) U.S. $ VALUE
----------- ------------
DENMARK--5.0%
GOVERNMENT OBLIGATION--5.0%
Kingdom of Denmark
9.00%, 11/15/98
(cost $400,109)........... DKK 2,200 $ 353,297
-------------
FINLAND--3.0%
GOVERNMENT OBLIGATION--3.0%
Republic of Finland
11.00%, 1/15/99 (a)
(cost $240,448)........... FIM 1,000 212,851
------------
ITALY--8.3%
GOVERNMENT OBLIGATION--8.3%
Republic of Italy
5.25%, 8/15/97 (a)
(cost $582,191)........... LIRA1,000,000 588,737
------------
NEW ZEALAND--12.1%
GOVERNMENT OBLIGATION--7.4%
Government of New Zealand
6.50%, 2/15/00 (a)........ NZD 780 527,749
-------------
DEBT OBLIGATION--4.7%
Nordic Investment Bank
6.75%, 9/16/99............ 500 336,697
-------------
Total New Zealand Securities
(cost $865,600)........... 864,446
-------------
NORWAY--4.1%
GOVERNMENT OBLIGATION--4.1%
Kingdom of Norway
9.00%, 1/31/99
(cost $325,389)........... NOK 2,000 292,911
-------------
SPAIN--4.6%
GOVERNMENT OBLIGATION--4.6%
Kingdom of Spain
7.40%, 7/30/99 (a)
(cost $349,118)........... ESP 46,000 $ 326,121
-------------
SWEDEN--6.2%
GOVERNMENT OBLIGATION--6.2%
Kingdom of Sweden
10.25%, 5/05/00 (a)
(cost $436,278)........... SEK 3,000 438,716
-------------
UNITED STATES--54.2%
GOVERNMENT/AGENCY OBLIGATIONS--49.4%
Federal Farm Credit Bank
5.39%, 7/01/97............ US$ 2,000 2,000,000
U.S. Treasury Note
6.25%, 5/31/99 (a)........ 1,500 1,504,215
-------------
3,504,215
-------------
TIME DEPOSIT--4.8%
State Street Bank and Trust Co.
5.25%, 7/01/97............ 343 343,000
-------------
Total United States Securities
(cost $3,849,445)......... 3,847,215
-------------
TOTAL INVESTMENTS--97.5%
(cost $7,048,578)......... 6,924,294
Other assets less liabilities--2.5% 176,223
-------------
NET ASSETS--100.0%............ $ 7,100,517
=============
- -------------------------------------------------------------------------------
(a) Securities segregated to collateralize forward exchange currency contracts
with an aggregate market value of $3,598,389.
See Notes to Financial Statements.
B-7
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
U.S. GOVERNMENT/HIGH GRADE SECURITIES PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1997 (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 $ 55,800
------------
CORPORATE DEBT
OBLIGATIONS--23.6%
ASSET BACKED--3.1%
Chemical Master Credit Card
Trust I
5.98%, 9/15/08...................$ 1,000 940,000
------------
FINANCE--9.7%
First Union Capital
8.04%, 12/01/26 (a)............. 1,000 997,645
Ford Motor Credit Co.
6.125%, 1/09/06.................. 500 469,035
Goldman Sachs Group L.P.
7.25%, 10/01/05 (a)............. 500 501,761
John Hancock Mutual Life
Insurance Co.
7.375%, 2/15/24 (a)............. 1,000 953,280
Wachovia Corp.
6.375%, 4/15/03.................. 75 73,421
------------
2,995,142
------------
INDUSTRIAL--1.5%
International Business Machines
Corp.
7.125%, 12/01/2096............... 500 473,075
------------
YANKEES--9.3%
Bridas Corp.
12.50%, 11/15/99................. 500 549,375
Dao Heng Bank Group Ltd.
7.75%, 1/24/07 (a).............. 500 500,960
RAS Laffan Liquefied Natural Gas
8.294%, 3/15/14 (a)............. 1,250 1,310,457
PRINCIPAL
AMOUNT
(000) U.S. $ VALUE
--------- -------------
St. George Bank Ltd.
7.15%, 10/15/05 (a).............$ 500 $ 497,200
------------
2,857,992
------------
Total Corporate Debt Obligations
(cost $7,269,480)................ 7,266,209
------------
U.S. GOVERNMENT AND
AGENCY OBLIGATIONS--55.2%
U.S. TREASURY SECURITIES--36.2%
U.S. Treasury Bond
6.625%, 2/15/27.................. 25 24,461
U.S. Treasury Notes:
5.00%, 1/31/98................... 3,900 3,885,999
6.25%, 2/15/07................... 2,750 2,690,710
7.125%, 9/30/99.................. 4,480 4,571,706
------------
11,172,876
------------
<PAGE>
FEDERAL AGENCY -
MORTGAGES--11.9%
Federal National Mortgage
Association:
7.00%, 4/18/25................... 2,000 1,935,030
7.00%, 4/01/26................... 1,685 1,653,424
Government National Mortgage
Association
7.00%, 7/15/23................... 78 76,958
------------
3,665,412
------------
FEDERAL AGENCY--7.1%
AID - Israel
8.00%, 11/15/01.................. 200 210,834
Overseas Private Investment Corp.
6.08%, 8/15/04................... 1,000 977,840
Student Loan Marketing
Association
6.05%, 9/14/00................... 1,000 989,690
------------
2,178,364
------------
Total U.S. Government and
Agency Obligations
(cost $17,058,201)............... 17,016,652
------------
B-8
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
U.S. GOVERNMENT/HIGH GRADE SECURITIES PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONT'D)
- -------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT
(000) U.S. $ VALUE
----------- ------------
SOVEREIGN DEBT
OBLIGATIONS--5.3%
CROATIA--1.6%
Republic of Croatia
6.50% (FRN), 7/30/10 (b). $ 500 $ 486,250
------------
POLAND--3.7%
Republic of Poland:
3.00%, 10/27/24 (c)....... 1,000 572,188
4.00%, 10/27/14 (c)....... 100 85,625
6.9375% (FRN), 10/27/24 (b) 500 490,625
------------
1,148,438
------------
Total Sovereign Debt Obligations
(cost $1,601,685)......... 1,634,688
------------
SHORT-TERM INVESTMENTS--14.4%
TIME DEPOSIT--14.4%
State Street Bank and Trust Co.
5.25%, 7/01/97
(amortized cost $4,451,000) $ 4,451 $ 4,451,000
------------
TOTAL INVESTMENTS--98.7%
(cost $30,430,091)........ 30,424,349
Other assets less liabilities--1.3% 406,321
------------
NET ASSETS--100.0%............ $ 30,830,670
============
- -------------------------------------------------------------------------------
(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,
1997, the aggregate market value of these securities amounted to
$4,817,103 or 15.6% of net assets.
(b) Coupon will fluctuate based upon an interest rate index. Stated interest
rate in effect as of June 30, 1997.
(c) Coupon will increase periodically based upon a predetermined schedule.
Stated interest rate in effect at June 30, 1997.
See Glossary of Terms on page B-47.
See Notes to Financial Statements.
B-9
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
TOTAL RETURN PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
- -------------------------------------------------------------------------------
SHARES U.S. $ VALUE
------ ------------
COMMON AND
PREFERRED STOCKS--63.7%
BASIC INDUSTRIES--1.9%
CHEMICALS--1.5%
Dow Chemical Co..................... 2,600 $ 226,525
Morton International, Inc........... 9,300 280,744
------------
507,269
------------
CONTAINERS--0.4%
Crown Cork & Seal, Inc.
4.5% conv. pfd................... 2,600 131,300
------------
638,569
------------
CAPITAL GOODS--3.2%
ELECTRICAL EQUIPMENT--1.1%
General Electric Co................. 5,600 366,100
------------
ENGINEERING &
CONSTRUCTION--0.6%
Fluor Corp.......................... 3,900 215,231
------------
MACHINERY--0.9%
Allied-Signal, Inc.................. 3,400 285,600
------------
POLLUTION CONTROL--0.6%
United Waste Systems, Inc........... 1,600 65,500
USA Waste Services, Inc. *.......... 3,700 142,913
------------
208,413
------------
1,075,344
------------
CONSUMER
MANUFACTURING--1.7%
APPLIANCES--0.7%
Sunbeam Corp........................ 6,000 226,500
------------
AUTO & RELATED--1.0%
Chrysler Corp....................... 7,300 239,531
Harley-Davidson, Inc................ 2,300 110,256
------------
349,787
------------
576,287
------------
CONSUMER SERVICES--7.9%
AIRLINES--0.6%
Delta Air Lines, Inc................ 2,500 205,000
------------
APPAREL--1.0%
Reebok International Ltd............ 6,900 322,575
------------
BROADCASTING &
CABLE--1.9%
AirTouch Communications, Inc. *..... 8,700 $ 238,162
Comcast Corp. Cl.A SPL.............. 8,200 175,019
Liberty Media Group Cl.A *.......... 7,650 181,927
Viacom, Inc. Cl.B *................. 1,500 45,000
------------
640,108
------------
ENTERTAINMENT &
LEISURE--0.6%
Time Warner, Inc.................... 3,900 188,175
------------
PRINTING & PUBLISHING--1.1%
New York Times Co. Cl.A............. 3,900 193,050
Reuters Holdings Plc Cl.B (ADR) .... 2,900 182,791
------------
375,841
------------
RETAILING--2.7%
Dayton Hudson Corp.................. 6,200 329,762
Federated Department Stores, Inc. *. 6,300 218,925
Sears, Roebuck & Co................. 6,400 344,000
------------
892,687
------------
2,624,386
------------
CONSUMER STAPLES--8.2%
BEVERAGES--1.3%
Anheuser-Busch Cos., Inc............ 10,000 419,375
------------
FOOD--3.0%
Campbell Soup, Co................... 9,200 460,000
General Mills, Inc.................. 3,300 214,912
Heinz (H.J.) Co..................... 6,800 313,650
------------
988,562
------------
RETAIL - FOOD--0.6%
Kroger Co. *........................ 7,500 217,500
------------
TOBACCO--3.3%
Philip Morris Cos., Inc............. 16,400 727,750
RJR Nabisco Holdings Corp........... 11,200 369,600
------------
1,097,350
------------
2,722,787
------------
ENERGY--6.8%
OIL & GAS SERVICES--6.4%
Apache Corp......................... 4,100 133,250
Baker Hughes, Inc................... 300 11,606
B-10
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
TOTAL RETURN PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONT'D)
- -------------------------------------------------------------------------------
SHARES U.S. $ VALUE
------ ------------
BJ Services Co. *................... 2,300 $ 123,338
Halliburton Co...................... 1,500 118,875
Mobil Corp.......................... 9,200 642,850
Murphy Oil Corp..................... 2,100 102,375
Texaco, Inc......................... 4,500 489,375
Transocean offshore, Inc............ 1,800 130,725
USX-Marathon Group.................. 13,000 375,375
------------
2,127,769
------------
PIPELINES--0.4%
Enron Corp.......................... 3,400 138,762
------------
2,266,531
------------
FINANCE--10.3%
BANKING & CREDIT--4.3%
Chase Manhattan Corp................ 1,740 168,889
First Bank System, Inc.............. 2,600 221,975
First Chicago NBD Corp.............. 2,922 176,781
First Union Corp.................... 6,700 619,750
MBNA Corp........................... 6,200 227,075
------------
1,414,470
------------
BROKERAGE & MONEY
MANAGEMENT--0.3%
Bear Stearns Cos., Inc.............. 3,100 105,981
------------
INSURANCE--3.4%
Exel Ltd............................ 1,300 68,575
General Reinsurance Corp............ 1,800 327,600
Hartford Financial Services
Group, Inc. ....................... 2,700 223,425
PennCorp Financial Group, Inc....... 5,100 196,350
PMI Group, Inc...................... 5,300 330,587
------------
1,146,537
------------
REAL ESTATE--0.3%
Security Capital Industrial Trust... 4,400 94,600
------------
OTHER--2.0%
Morgan Stanley, Dean Witter,
Discover & Co.................... 15,310 659,287
------------
3,420,875
------------
HEALTH CARE--7.8%
BIOTECHNOLOGY--0.8%
Centocor, Inc. *.................... 8,100 251,353
------------
DRUGS--3.8%
Merck & Co., Inc.................... 6,400 662,400
Schering-Plough Corp................ 12,400 593,650
------------
1,256,050
------------
MEDICAL PRODUCTS--1.0%
Boston Scientific Corp. *........... 3,800 $ 233,463
St. Jude Medical, Inc. *............ 2,900 113,100
------------
346,563
------------
MEDICAL SERVICES--2.2%
Columbia/HCA Healthcare Corp........ 6,450 253,565
PacifiCare Health Systems,
Inc. Cl.B *..................... 7,400 472,444
------------
726,009
------------
2,579,975
------------
MULTI INDUSTRY--2.1%
Tyco International Ltd.............. 6,600 459,113
Whitman Corp........................ 8,900 225,281
------------
684,394
------------
TECHNOLOGY--11.7%
AEROSPACE & DEFENSE--0.6%
General Dynamics Corp. ............. 2,700 202,500
------------
COMMUNICATIONS
EQUIPMENT--0.6%
Scientific-Atlanta, Inc............. 8,500 185,937
------------
COMPUTER HARDWARE--1.2%
COMPAQ Computer Corp. *............. 4,000 397,000
------------
COMPUTER PERIPHERALS--0.8%
Seagate Technology, Inc. *.......... 8,100 285,019
------------
COMPUTER SOFTWARE &
SERVICES--0.4%
Electronic Data Systems Corp........ 3,500 143,500
------------
NETWORK SOFTWARE--1.7%
Cisco Systems, Inc. *............... 8,400 564,112
------------
SEMI-CONDUCTORS &
RELATED--3.3%
Applied Materials, Inc. *........... 2,000 141,562
Atmel Corp. *....................... 6,300 176,794
Intel Corp.......................... 2,200 311,506
Micron Technology, Inc. *........... 2,600 103,838
National Semiconductor Corp. *...... 12,000 367,500
------------
1,101,200
------------
B-11
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
TOTAL RETURN PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONT'D)
- -------------------------------------------------------------------------------
SHARES U.S. $ VALUE
------ ------------
TELECOMMUNICATIONS--2.7%
AT&T Corp........................... 8,000 $ 280,500
Deutsche Telekom AG................. 5,000 120,625
Teleport Communications Group,
Inc. Cl.A *...................... 7,300 248,656
WorldCom, Inc. *.................... 7,700 246,160
------------
895,941
------------
OTHER--0.4%
Solectron Corp. *................... 1,800 126,000
------------
3,901,209
------------
TRANSPORTATION--0.8%
RAILROADS--0.8%
Canadian Pacific Ltd................ 2,900 82,469
Union Pacific Corp.................. 2,800 197,400
------------
279,869
------------
UTILITIES--1.3%
ELECTRIC & GAS--1.3%
CMS Energy Corp..................... 2,700 95,175
FPL Group, Inc...................... 5,200 239,525
NIPSCO Industries, Inc.............. 2,300 95,019
------------
429,719
------------
Total Common and Preferred Stocks
(cost $18,072,510)............... 21,199,945
------------
U.S. GOVERNMENT AND
AGENCY--30.9%
U.S. Treasury Notes:
4.75%, 8/31/98...................$ 2,317 $ 2,287,319
6.50%, 10/15/06.................. 4,500 4,481,010
7.25%, 8/15/04................... 3,355 3,497,588
------------
Total U.S. Government and Agency
(cost $10,346,800)............... 10,265,917
------------
SHORT-TERM INVESTMENTS--5.2%
TIME DEPOSIT--5.2%
State Street Bank and Trust Co.
5.25%, 7/01/97
(amortized cost $1,747,000)...... 1,747 1,747,000
------------
TOTAL INVESTMENTS--99.8%
(cost $30,166,310)............... 33,212,862
Other assets less liabilities--0.2%.. 57,194
------------
NET ASSETS--100.0%................... $ 33,270,056
============
- -------------------------------------------------------------------------------
* Non-income producing security.
See Glossary of Terms on page B-47.
See Notes to Financial Statements.
B-12
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
INTERNATIONAL PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
- -------------------------------------------------------------------------------
SHARES U.S. $ VALUE
------ ------------
COMMON STOCKS AND
OTHER INVESTMENTS--87.6%
ARGENTINA--0.4%
Telecom Argentina - France
Telecom S.A. (ADR)............... 5,000 $ 262,500
------------
AUSTRALIA--1.8%
Coca Cola Amatil Ltd................ 27,171 353,193
Mayne Nickless Ltd.................. 14,000 81,681
Normandy Mining Ltd.................189,000 212,827
Qantas Airways Ltd.................. 14,362 33,648
WMC Ltd............................. 35,387 223,310
Woolworths Ltd...................... 50,507 166,042
------------
1,070,701
------------
BELGIUM--0.5%
Barco N.V........................... 938 190,050
Delhaize-Le Freres Lion S.A......... 2,050 107,685
------------
297,735
------------
BRAZIL--1.0%
Dixie Toga S.A. pfd................. 11,800 6,357
Panamerican Beverage, Inc........... 8,000 263,000
Telecomunicacoes Brasileras
S.A. (ADR)....................... 2,000 303,500
------------
572,857
------------
DENMARK--0.4%
Den Danske Bank..................... 2,290 222,796
------------
FINLAND--2.6%
Huhtamaki Group OY Series I......... 2,800 120,514
Nokia AB Cl.A....................... 4,600 343,621
Orion-Yhtymne OY Series B........... 15,800 598,804
Rauma OY............................ 342 7,838
Rautaruukki OY...................... 21,533 225,998
UPM-Kymmene Corp.................... 5,900 136,344
Valmet Corp......................... 7,210 124,685
------------
1,557,804
------------
FRANCE--8.3%
Banque National de Paris (a)........ 6,500 267,888
Bouygues (a)........................ 2,800 230,367
Compagnie Francaise d'Etudes et
de Construction Technip.......... 2,380 276,203
Compagnie Generale des Eaux ....... 2,050 266,468
warrants, expiring 5/02/01 *..... 2,050 1,228
Legrand S.A. (a).................... 1,500 264,179
Legris Industries S.A. (a).......... 3,960 186,656
Promodes (a)........................ 770 299,918
SEITA (a)........................... 6,900 $ 218,388
SGS-Thomson Microelectronics N.V. *. 1,710 135,014
Societe Centrale des Assurances
Generales de France.............. 7,540 240,953
Societe des Immuebles de France..... 1,297 75,039
Societe Francaise d'Invetissements
Immobiliers et de Gestion........ 1,295 82,636
Societe Generale (a)................ 8,430 941,018
Societe Nacionale Elf Aquitaine (a). 4,400 474,688
Total S.A. (a)...................... 5,714 577,555
Total S.A. (ADR).................... 1,270 64,294
Usinor Sacilor (a).................. 12,500 225,467
Worms et Compagnie (a).............. 1,992 117,960
------------
4,945,919
------------
GERMANY--2.5%
Adidas AG........................... 2,080 230,170
Bayer AG............................ 8,480 325,858
Henkel KGaA-Vorzug, pfd............. 3,534 200,600
Hornbach Holding AG pfd............. 1,790 151,895
Merck KGaA (b)...................... 4,600 202,953
Schmalbach Lubeca AG................ 1,800 403,532
------------
1,515,008
------------
HONG KONG--3.5%
Asia Satellite Telecom Ltd. *....... 4,000 12,262
Cheung Kong (Holdings).............. 36,000 355,479
Citic Pacific Ltd................... 41,000 256,141
Dao Heng Bank Group Ltd............. 14,000 76,620
Dickson Concepts International Ltd.. 63,000 229,319
First Pacific Co. Ltd...............136,837 174,859
Guangshen Railway Co. Ltd. (ADR) ... 6,700 146,562
Hang Seng Bank...................... 14,000 199,682
Hong Kong and China Gas Co. Ltd..... 40,060 80,148
HSBC Holdings Plc................... 5,000 150,375
Hysan Development Co. Ltd.
warrants, expiring 4/30/98 *..... 500 194
Swire Pacific Ltd. Cl.A............. 19,000 171,060
Television Broadcast Ltd............ 51,000 229,086
------------
2,081,787
------------
INDIA--0.5%
Bajaj Auto Ltd. (GDR) * (b)......... 3,300 114,675
Industrial Credit & Investment
Corp. of India Ltd. (GDR) * (b) . 5,000 71,250
Industrial Credit & Investment
Corp. of India Ltd. (GDR) * ..... 2,000 28,500
B-13
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
INTERNATIONAL PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONT'D)
- -------------------------------------------------------------------------------
SHARES U.S. $ VALUE
------ ------------
State Bank of India (GDR) * (b)..... 2,400 $ 62,760
Videsh Sanchar Nigam Ltd. * (b)..... 1,900 39,330
------------
316,515
------------
INDONESIA--0.5%
PT Indosat.......................... 56,000 167,516
PT Telekomunikasi Indonesia ........ 47,000 76,820
PT Telekomunikasi Indonesia (ADR) .. 1,000 32,500
------------
276,836
------------
IRELAND--0.9%
Allied Irish Banks Plc.............. 50,000 381,354
Jefferson Smurfit Group Plc......... 46,000 132,525
------------
513,879
------------
ITALY--2.2%
Credito Italiano....................160,000 292,780
IMI LNV............................. 64,700 582,447
Societa Italiana Per L'Eserreizio
Delle Telecommunicazioni, P.A.*..132,200 424,314
------------
1,299,541
------------
JAPAN--27.1%
Advantest Corp...................... 2,800 214,971
Amano Corp.......................... 14,000 158,786
Asahi Glass Co. Ltd................. 29,000 288,431
Bank of Tokyo-Mitsubishi Bank....... 44,200 886,931
Bridgestone Corp.................... 11,000 255,278
Canon, Inc.......................... 14,000 381,085
Dai Nippon Printing Co. Ltd......... 7,000 158,175
Daifuku Co. Ltd..................... 13,000 171,262
Daito Trust Construction Co. Ltd.... 34,800 409,876
Daiwa Securities Co. Ltd............ 54,000 425,894
DDI Corp. .......................... 99 730,710
East Japan Railway Co............... 36 184,680
Fuji Bank Ltd....................... 35,000 525,214
Fuji Heavy Industries............... 56,000 292,165
Fuji Photo Film Co.................. 3,000 120,660
Hirose Electric Co.................. 3,000 205,723
Honda Motor Co...................... 18,000 541,790
Japan Securities Finance............ 19,000 187,315
Japan Tobacco, Inc.................. 63 497,426
Kokuyo.............................. 6,000 162,275
Mitsubishi Heavy Industries Ltd..... 22,000 168,714
Mitsui Marine & Fire Insurance
Co. Ltd.......................... 50,000 361,194
Mitsui Trust and Banking Co. Ltd.... 77,000 581,094
National House Industrial Co........ 12,000 158,088
Nintendo Corp. Ltd.................. 2,700 226,139
Nippon Express Co. Ltd.............. 20,000 159,658
Nippon Steel Co..................... 52,000 $ 166,044
Nisshin Steel Co. Ltd............... 64,000 167,510
Nomura Securities Co. Ltd........... 49,000 675,449
Rohm Co., Ltd....................... 8,000 823,591
Santen Pharmaceutical Co............ 22,100 445,394
Seven-Eleven Japan Co. Ltd.......... 400 30,222
Shimano, Inc........................ 8,000 167,510
Shiseido Co. Ltd.................... 11,000 181,382
Sony Corp........................... 6,000 522,945
Sumitomo Bank International......... 73,000 1,197,348
Sumitomo Electric Industries........ 22,000 368,522
Sumitomo Marine & Fire
Insurance Co..................... 22,000 180,422
Sumitomo Reality & Development
Co. Ltd.......................... 47,000 414,151
Taisho Pharmaceutical Co............ 7,000 188,711
Takeda Chemical Industries.......... 3,000 84,278
TDK Corp............................ 11,000 807,102
Tokai Bank.......................... 19,000 195,603
Ube Industries Ltd. ................ 17,000 49,389
Yakult Honsha Co.................... 11,000 120,921
Yamanouchi Pharmaceutical Co. Ltd... 25,000 671,785
Yamatake-Honeywell.................. 8,000 152,155
Yamazaki Baking Co. Ltd............. 8,000 140,988
------------
16,204,956
------------
MALAYSIA--2.3%
Ammb Holdings Bhd .................. 36,000 223,930
warrants, expiring 5/13/02 *..... 1,700 2,290
warrants, expiring 5/02/06 * .... 17,000 6,096
Berjaya Group Bhd...................183,000 224,762
Berjaya Sports Toto Bhd............. 42,000 198,019
DCB Holdings Bhd
warrants, expiring 12/27/99 *.... 2,750 3,062
Malakoff Bhd........................ 40,000 174,326
Malayan Banking Bhd................. 9,000 94,493
Resorts World Bhd................... 43,000 129,477
Telekom Malaysia Bhd................ 69,000 322,583
------------
1,379,038
------------
MEXICO--0.5%
Fomento Economico Mexico S.A........ 52,000 309,481
------------
NETHERLANDS--5.4%
Akzo Nobel N.V...................... 6,620 907,219
Fortis Amev N.V..................... 11,800 525,406
Hunter Douglas N.V.................. 2,900 246,727
B-14
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
INTERNATIONAL PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONT'D)
SHARES U.S. $ VALUE
------ ------------
Internationale Nederlanden
Groep N.V. ........................ 11,815 $ 544,733
Koninklijke Hoogovens N.V........... 4,965 276,719
Koninklijke KNP BT N.V.............. 12,800 291,487
Stork N.V........................... 6,300 256,763
Vendex International N.V............ 3,620 198,253
------------
3,247,307
------------
NEW ZEALAND--0.2%
Fletcher Challenge Ltd.............. 31,042 45,123
Lion Nathan Ltd..................... 37,000 93,743
------------
138,866
------------
NORWAY--1.0%
Bergesen DY ASA Cl.A................ 11,700 276,967
Den Norske Bank..................... 48,000 187,961
Orkla ASA Cl.A...................... 1,800 132,866
------------
597,794
------------
PHILIPPINES--0.2%
Manila Electric Co. Cl.B............ 21,359 105,273
Philippine Commercial International
Bank............................. 1,000 9,668
------------
114,941
------------
PORTUGAL--0.6%
Electricidade de Portugal S.A. *.... 21,329 391,413
------------
SINGAPORE--1.3%
Development Bank of Singapore ...... 4,000 50,360
Overseas Union Banking Ltd.......... 27,600 171,812
Overseas-Chinese Bank Corp. Ltd..... 19,200 198,755
Singapore Airlines Ltd.............. 2,000 17,906
Singapore Press Holdings Ltd. ...... 16,000 322,306
------------
761,139
------------
SOUTH KOREA--0.8%
Korea Electric Power Corp. (ADR).... 5,000 93,437
Pohang Iron & Steel Co., Ltd. (ADR). 4,000 128,000
SK Telecom Co. Ltd. (ADR) .......... 27,132 273,016
------------
494,453
------------
SPAIN--1.9%
Banco Bilbao Vizcaya S.A............ 4,300 349,311
Banco de Santander S.A.............. 6,210 191,336
Tabacalera S.A. Series A............ 4,100 220,095
Telefonica de Espana................ 12,700 367,167
------------
1,127,909
------------
SWEDEN--1.0%
Astra AB Series A................... 10,666 198,553
Sparbanken Sverige AB Cl.A ......... 10,700 237,916
Trygg-Hansa AB...................... 8,400 167,772
------------
604,241
------------
SWITZERLAND--4.4%
Baloise Holdings Ltd................ 105 $ 250,274
Ciba Specialty Chemicals AG *....... 4,027 372,360
Holderbank Financiere Glarus AG..... 350 330,582
Nestle S.A.......................... 276 364,093
Novartis AG ........................ 427 682,615
Schindler Holding AG................ 230 287,500
Schindler Holding AG (Regular)...... 115 147,688
Zurich Versicherungsgesellschaft.... 550 218,870
------------
2,653,982
------------
THAILAND--0.0%
Thai Farmers Bank Co.
warrants, expiring 9/15/02 *..... 625 271
------------
UNITED KINGDOM--15.2%
Anglian Water Plc................... 30,000 327,232
BAA Plc............................. 36,800 339,202
Bass Plc............................ 48,080 586,896
Beazer Group Plc.................... 90,000 245,798
BG Plc.............................. 44,000 161,201
Boots Co. Plc....................... 17,500 205,311
BPB Industries Plc..................119,900 648,607
British Aerospace Plc............... 11,700 260,404
British Petroleum Co. Plc........... 23,949 297,921
British Telecommunications Plc...... 46,100 342,396
BTR Plc............................. 46,000 157,421
Carlton Communications Plc.......... 30,500 258,276
Compass Group Plc................... 33,800 378,250
General Accident Plc................ 9,800 142,800
Guinness Plc........................ 27,000 264,383
Holliday Chemical Holdings Plc......147,100 347,851
Kingfisher Plc...................... 17,100 194,211
Ladbroke Group Plc..................145,008 569,897
PowerGen Plc........................ 27,000 321,037
Royal & Sun Alliance Insurance
Group Plc........................ 22,800 168,582
Rugby Group Plc.....................127,480 254,751
Scottish & Newcastle Plc............ 23,500 252,809
Scottish Power Plc.................. 47,500 308,497
Shell Transport & Trading Co. Plc... 48,000 327,731
Siebe Plc........................... 16,000 271,244
TI Group Plc........................ 28,500 248,459
Tomkins Plc......................... 92,800 401,804
United Assurance Group Plc.......... 16,630 117,838
United News Media Plc............... 21,100 244,735
Vodafone Group Plc.................. 44,900 219,082
Whitbread Plc....................... 21,000 265,607
------------
9,130,233
------------
B-15
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
INTERNATIONAL PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONT'D)
- -------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT
(000) U.S. $ VALUE
----------- ------------
VENEZUELA--0.6%
Compania Anonima Nacional
Telefonos de Venezuela (ADR). 8,000 $ 345,000
------------
Total Common Stocks and
Other Investments
(cost $46,494,511)........... 52,434,902
------------
CONVERTIBLE BONDS--0.4%
JAPAN--0.4%
Sumitomo Bank International
0.75%, 5/31/01 (b) ...........JPY$19,000 211,350
------------
MALAYSIA--0.0%
Ammb Holdings Bhd
5.00%, 5/13/02...............MYR 17 5,759
------------
Total Convertible Bonds
(cost $178,120).................. 217,109
------------
PRINCIPAL
AMOUNT
(000) U.S. $ VALUE
--------- -------------
SHORT-TERM INVESTMENTS--12.0%
TIME DEPOSIT--12.0%
State Street Bank and Trust Co.
5.25%, 7/01/97
(amortized cost $7,190,000).. $ 7,190 $ 7,190,000
------------
TOTAL INVESTMENTS--100.0%
(cost $53,862,631)........... 59,842,011
Other assets less liabilities--0.0% 17,527
------------
NET ASSETS--100.0%............... $ 59,859,538
============
- -------------------------------------------------------------------------------
* Non-income producing security.
(a) Securities segregated to collateralize forward exchange contracts with
aggregate market vlaue of $3,804,084.
(b) Securities exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration normally applied to certain qualified buyers. At June 30,
1997, the aggregate market value of these securities amounted to $702,318
or 1.2% of net assets.
See Glossary of Terms on page B-47.
See Notes to Financial Statements.
B-16
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
MONEY MARKET PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
PRINCIPAL
AMOUNT
(000) U.S. $ VALUE
----------- ------------
COMMERCIAL PAPER--100.6%
AGA Capital, Inc.
5.57%, 7/16/97 (a)...............$ 1,715 $ 1,711,020
Allianz of America Finance Corp.
5.75%, 7/22/97 (a)............... 1,085 1,081,361
Banc One Corp.
6.20%, 7/01/97 (a)............... 3,500 3,500,000
Banca CRT Financial Corp.
5.57%, 7/02/97................... 3,100 3,099,520
BAT Capital Corp.
5.57%, 7/24/97 (a)............... 3,000 2,989,324
Bayer, Inc.
5.54%, 7/01/97................... 2,000 2,000,000
Caisse Centrale Jardins du Quebec
5.40%, 8/21/97................... 2,500 2,480,875
CC USA, Inc.
5.66%, 8/11/97................... 1,800 1,788,397
Chiao Tung Bank Co. Ltd.
5.72%, 10/28/97.................. 2,600 2,550,840
Commerzbank AG
5.57%, 7/30/97................... 2,000 1,991,026
Corporate Asset Securitization
Australia Ltd.
5.70%, 8/07/97 (a)............... 1,100 1,093,556
CPC International Incorporated
5.54%, 7/31/97................... 3,000 2,986,150
Eksportfinans A/S:
5.56%, 7/31/97................... 2,220 2,209,714
5.75%, 9/23/97................... 1,160 1,144,437
Ford Motor Credit Co.
5.53%, 7/16/97................... 2,900 2,893,318
Glencore Finance Ltd.
5.43%, 8/25/97................... 1,000 991,704
Goldman Sachs Group:
5.55%, 7/11/97................... 1,400 1,397,842
5.56%, 7/28/97................... 1,900 1,892,077
Gotham Funding:
5.64%, 7/24/97 (a)............... 1,200 1,195,676
5.73%, 7/23/97 (a)............... 1,200 1,195,798
5.74%, 7/09/97 (a)............... 997 995,728
Industrial Bank of Korea:
5.67%, 7/25/97...................$ 2,300 $ 2,291,306
5.75%, 8/06/97................... 1,000 994,250
Internationale Nederland
5.55%, 7/10/97................... 1,500 1,497,919
Koch Industries
6.25%, 7/01/97 (a)............... 3,500 3,500,000
Korea Development Bank
5.68%, 8/12/97................... 2,600 2,582,771
Merrill Lynch & Co., Inc.:
5.40%, 7/14/97................... 115 114,776
5.56%, 7/14/97................... 1,000 997,992
Mobil Australia Finance Co.
6.22%, 7/01/97................... 1,600 1,600,000
Morgan Stanley Group, Inc.:
5.55%, 8/13/97................... 1,700 1,688,730
5.56%, 8/04/97................... 1,600 1,591,598
Philip Morris Cos., Inc.
5.52%, 7/08/97................... 1,200 1,198,712
Province of British Columbia
5.55%, 7/18/97................... 2,261 2,255,074
Sigma Finance, Inc.:
5.68%, 8/19/97 (a)............... 1,500 1,488,403
5.71%, 10/07/97 (a).............. 2,000 1,968,912
Thames Asset Global Securitization
5.68%, 7/07/97 (a)............... 2,000 1,998,107
UNI Funding, Inc.
5.54%, 7/21/97................... 2,000 1,993,845
Venantius AB
5.52%, 7/23/97................... 2,400 2,391,904
Windmill Funding
5.70%, 7/14/97 (a)............... 1,900 1,896,089
------------
TOTAL INVESTMENTS--100.6%
(cost $73,238,751)............... 73,238,751
Other assets less liabilities--(0.6%) (419,207)
------------
NET ASSETS--100.0%................... $ 72,819,544
============
- -------------------------------------------------------------------------------
(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,
1997, the aggregate market value of the securities amounted to
$24,613,974 or 33.8% of net assets.
See Notes to Financial Statements.
B-17
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
GLOBAL DOLLAR GOVERNMENT PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
- -------------------------------------------------------------------------------
PRINCIPAL
AMOUNT
(000) U.S. $ VALUE
----------- ------------
SOVEREIGN DEBT
OBLIGATIONS--66.1%
COLLATERALIZED
BRADY BONDS--31.6%
ARGENTINA--1.1%
Republic of Argentina
5.50% Par Euro Bonds, 3/31/23 (a)
(cost $130,419)..................$ 210 $ 145,819
------------
BRAZIL--11.9%
Federal Republic of Brazil C Bonds
8.00%, 4/15/14 (b)
(cost $1,529,544)................ 1,905 1,531,823
------------
ECUADOR--2.1%
Republic of Ecuador
6.4375% Disc. (FRN), 2/28/25 (a)
(cost $231,520).................. 380 272,175
------------
MEXICO--5.5%
United Mexican States
6.84% Par Euro Bonds(FRN),
12/31/19 (a) (cost $666,735)..... 1,929 707,275
------------
NIGERIA--1.3%
Central Bank of Nigeria
6.25% Par Bonds, 11/15/20 (c)
(cost $105,881).................. 250 169,062
------------
PANAMA--6.2%
Republic of Panama
4.00%, 7/17/16 (d)(e)
(cost $758,380).................. 913 800,854
------------
VENEZUELA--3.5%
Republic of Venezuela
6.75% (FRN), 3/31/07 (a)(f)
(cost $424,533).................. 476 443,453
------------
Total Collateralized Brady Bonds
(cost $3,847,012)................ 4,070,461
------------
NON-COLLATERALIZED
BRADY BONDS--5.3%
PANAMA--3.0%
Republic of Panama
3.50%, 7/17/14
(cost $284,083).................. 500 385,000
------------
PERU--2.3%
Republic of Peru FLIRB
3.25%, 3/07/17 (d)(e)
(cost $265,571)..................... 500 298,750
------------
Total Non-Collateralized Brady Bonds
(cost $549,654).................. $ 683,750
------------
LOAN PARTICIPATION & ASSIGNMENT--11.4%
MOROCCO--2.9%
Kingdom of Morocco
Restructuring &
Consolidation Loan Participation
6.8125% (FRN), 1/01/09 (a)
(cost $323,052)..................$ 400 366,750
------------
RUSSIA--8.5%
Vnesheconombank Loan
Assignment
9/14/04 (g)
(cost $883,533).................. 1,200 1,101,000
------------
Total Loan Participation &
Assignment
(cost $1,206,585)................ 1,467,750
------------
OTHER SOVEREIGN DEBT--17.8%
BRAZIL--6.6%
Republic of Brazil
6.9375% (FRN), 4/15/12 (a)
(cost $780,026).................. 1,020 845,325
------------
BULGARIA--6.3%
Republic of Bulgaria
2.25%, 7/28/12 (e)............... 800 458,000
Republiic of Bulgaria
6.5625% (FRN), 7/28/12 (a)....... 500 361,250
------------
Total Bulgarian Securities
(cost $709,282).................. 819,250
------------
POLAND--1.4%
Republic of Poland
4.00%, 10/27/14 (e)
(cost $146,468).................. 210 179,813
------------
RUSSIA--3.1%
Russian Ministry of Finance
10.00%, 6/26/07 (d)
(cost $400,200).................. 400 398,800
------------
TRINIDAD & TOBAGO--0.4%
Republic of Trinidad & Tobago
11.75%, 10/03/04
(cost $49,741)................... 50 57,675
------------
B-18
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
AL DOLLAR GOVERNMENT PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONT'D)
- -------------------------------------------------------------------------------
PRINCIPAL
AMOUNT
(000) U.S. $ VALUE
----------- ------------
Total Other Sovereign Debt
(cost $2,085,717)................ $ 2,300,863
Total Sovereign Debt Obligations
(cost $7,688,968)................ 8,522,824
------------
CORPORATE DEBT
OBLIGATIONS--28.8%
BROADCASTING &
CABLE--1.6%
TV Filme, Inc.
12.875%, 12/15/04
(cost $201,750)..................$ 200 210,260
------------
FINANCIAL SERVICES--4.5%
App International Finance Company
B V Guaranteed Secured Note
11.75%, 10/01/05................. 150 165,563
FSW International Finance Company
B V Guaranteed Subordinated Note
12.50%, 11/01/06 (d)............. 150 155,250
RBS Participacoes S.A.
Guaranteed Note
11.00%, 4/01/07 (d).............. 250 262,500
------------
Total Financial Services
(cost $553,750).................. 583,313
------------
INDUSTRIAL--5.1%
Consorcio Grupo Dina S.A.
Zero Coupon, 11/15/02
(cost $653,751).................. 750 655,312
------------
TELEPHONE--3.0%
Philippine Long Distance
Telephone Co.
8.35%, 3/06/17
(cost $398,506).................. 400 380,000
------------
TRANSPORTATION--0.9%
TFM S.A. de CV
Zero Coupon, 6/15/09
(cost $113,066)..................$ 200 $ 116,500
YANKEES--13.7% Altos Hornos de Mexico
S.A. 11.875%, 4/30/04 (d)........ 250 269,688
Banco Nacional
11.25%, 5/30/06 (d).............. 200 225,200
Cantv Finance Ltd.
9.25%, 2/01/04................... 500 509,375
Innova S de R. L.
12.875%, 4/01/07 (d)............. 500 521,250
Transportacion Maritima
Mexicana S.A.
9.25%, 5/15/03................... 12 11,970
Zhuhai Highway Co.
11.50%, 7/01/08.................. 200 228,551
------------
Total Yankees
(cost $1,687,882)................ 1,766,034
------------
Total Corporate Debt Obligations
(cost $3,608,705)................ 3,711,419
------------
SHORT-TERM INVESTMENTS--2.4%
TIME DEPOSIT--2.4%
State Street Bank and Trust Co.
5.25%, 7/01/97
(amortized cost $303,000)........ 303 303,000
------------
TOTAL INVESTMENTS--97.3%
(cost $11,600,673)............... 12,537,243
Other assets less liabilities--2.7%.. 350,782
------------
NET ASSETS--100.0%................... $ 12,888,025
============
<PAGE>
- -------------------------------------------------------------------------------
(a) Coupon will fluctuate based upon an interest rate index. States interest
rate in effect at June 30, 1997.
(b) Coupon consists of 4.5% cash payment and 3.5% paid in kind.
(c) Security trades with oil warrants expiring November 15, 2020.
(d) 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,
1997, the aggregate market value of these securities amounted to
$2,932,292 or 22.8% of net assets.
(e) Coupon will increase periodically based upon a predetermined schedule.
Stated interest rate in effect at June 30, 1997.
(f) Security trades with oil warrants expiring April 15, 2020.
(g) Security is in default and is non-income producing.
See Glossary of Terms on page B-47.
See Notes to Financial Statements.
B-19
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
NORTH AMERICAN GOVERNMENT INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
- -------------------------------------------------------------------------------
PRINCIPAL
AMOUNT
(000) U.S. $ VALUE
----------- ------------
ARGENTINA--19.1%
GOVERNMENT OBLIGATIONS--19.1%
Republic of Argentina
11.75%, 2/12/07 (a)....... ARS 500 $ 556,250
Pensioner-Bocon Pre I
3.356% (FRN), 4/01/01..... 325 297,098
Pensioner-Bocon Pre III
3.356% (FRN), 9/01/02 (b). 61 51,647
Supplier-Bocon Pro I
3.356% (FRN), 4/01/07..... 5,076 3,946,519
------------
Total Argentinian Securities
(cost $3,705,306)......... 4,851,514
------------
CANADA--10.1%
GOVERNMENT/AGENCY OBLIGATIONS--10.1%
Government of Canada
6.50%, 6/01/04 (c)........ CA$ 850 629,583
8.00%, 6/01/23 (c)........ 500 410,768
Province of British Columbia
8.00%, 9/08/23 (c)........ 400 321,402
Province of Manitoba
7.75%, 12/22/25........... 450 355,897
Province of Ontario
8.25%, 12/01/05........... 275 223,234
Province of Quebec
7.75%, 3/30/06............ 325 253,702
Province of Saskatchewan
9.60%, 2/04/22............ 400 375,509
------------
Total Canadian Securities
(cost $2,369,894)......... 2,570,095
------------
MEXICO--15.1%
GOVERNMENT/AGENCY OBLIGATIONS--15.1%
Mexican Treasury Bills
Zero Coupon, 7/03/97...... MXP 6,073 762,792
Zero Coupon, 9/04/97...... 4,224 511,466
Zero Coupon, 12/31/97..... 584 66,225
Zero Coupon, 5/07/98...... MXP 6,097 $ 646,482
Zero Coupon, 6/04/98...... 17,729 1,853,739
------------
Total Mexican Securities
(amortized cost $3,838,006) 3,840,704
------------
UNITED STATES--50.7%
FEDERAL AGENCY - MORTGAGES--0.7%
Government National Mortgage
Association
9.00%, 9/15/24............ US$ 156 165,009
------------
FEDERAL AGENCY--2.6%
Federal Home Loan Bank
7.26%, 9/06/01............ 200 205,156
Federal Home Loan
Mortgage Corp.
6.13%, 8/19/99............ 150 149,649
Federal National Mortgage
Association
5.05%, 11/10/98........... 305 300,663
------------
655,468
------------
U.S. TREASURY SECURITIES--17.0%
U.S. Treasury Notes:
6.25%, 10/31/01........... 1,300 1,293,903
6.50%, 4/30/99............ 85 85,638
7.125%, 9/30/99........... 320 326,550
7.25%, 8/15/04............ 2,500 2,606,250
------------
4,312,341
------------
TIME DEPOSIT--30.4%
State Street Bank and Trust Co.
5.25%, 7/01/97............ 7,736 7,736,000
------------
Total United States Securities
(cost $12,815,590)........ 12,868,818
------------
TOTAL INVESTMENTS--95.0%
(cost $22,728,796)........ 24,131,131
Other assets less liabilities--5.0% 1,279,081
------------
NET ASSETS--100.0%............ $ 25,410,212
============
- -------------------------------------------------------------------------------
(a) Security exempt from registration under Rule 144A of the Security Act of
1933. This security may be resold in transactions exempt from
registration normally applied to certain qualified buyers. At June 20,
1997, the market value of the security amounted to $556,250 or 2.2% of
total assets.
(b) Interest is compounded monthly and capitalized until October 1, 1998,
after which the security holder will receive monthly paydowns of
principal and interest until maturity.
(c) Securities segregated to collateralize forward currency contracts with an
aggregate market value of $1,361,753. See Glossary of Terms on page B-47.
See Notes to financial statements.
B-20
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
UTILITY INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
- -------------------------------------------------------------------------------
SHARES U.S. $ VALUE
------ ------------
COMMON AND
PREFERRED STOCKS--89.1%
UNITED STATES INVESTMENTS--78.1%
CONSUMER SERVICES--9.5%
BROADCASTING &
CABLE--9.5%
AirTouch Communications, Inc.
4.25% conv. pfd.................. 13,000 $ 624,000
Cablevision Systems Corp.
8.50% conv. pfd.................. 20,000 542,500
Comcast Corp. Cl.A ................ 18,000 384,187
------------
1,550,687
------------
ENERGY--1.4%
PIPELINES--1.4%
Enron Corp. ....................... 5,800 236,713
------------
TECHNOLOGY--15.9%
TELECOMMUNICATIONS--15.9%
AT&T Corp. ........................ 12,560 440,385
Frontier Corp. ................... 21,000 418,687
MCI Communications Corp. .......... 10,400 398,125
TCI Group
$2.125 Series A conv. pfd. ...... 6,200 271,638
Telephone and Data Systems, Inc. .. 6,000 227,625
Teleport Communications Group,
Inc. Cl.A. *..................... 13,600 463,250
WorldCom, Inc. * .................. 12,000 383,625
------------
2,603,335
------------
UTILITIES--51.3%
ELECTRIC & GAS--47.6%
AGL Resources, Inc. ............... 6,100 125,050
Allegheny Power Systems, Inc. ..... 23,500 627,156
American Electric Power, Inc. ..... 16,900 709,800
Baltimore Gas & Electric Co. ...... 5,600 149,450
Brooklyn Union Gas Co. ............ 4,600 131,675
Carolina Power & Light Co. ........ 9,000 322,875
CINergy Corp. ..................... 16,700 581,369
CMS Energy Corp. .................. 17,200 606,300
DPL, Inc. ......................... 14,000 344,750
DQE, Inc. ......................... 6,600 186,450
Edison International .............. 22,000 547,250
FPL Group, Inc. ................... 15,600 718,575
Illinova Corp. .................... 13,900 305,800
MCN Corp. ......................... 4,600 $ 140,875
New Jersey Resources Corp. ........ 4,400 138,050
NIPSCO Industries, Inc. ........... 11,700 483,356
Northwest Natural Gas Co. ......... 5,250 137,484
Pacific Enterprises ............... 4,100 137,863
People's Energy Corp. ............. 3,600 134,775
Piedmont Natural Gas Co., Inc. .... 5,100 131,006
Pinnacle West Capital Corp. ....... 12,500 375,781
Questar Corp. ..................... 3,500 141,313
Washington Gas Light Co. .......... 5,600 140,700
Williams Cos., Inc.
$3.50 conv. pfd.................. 4,700 487,038
------------
7,804,741
------------
MULTI-INDUSTRY--3.7%
Ipalco Enterprises, Inc. .......... 10,500 328,125
Southwest Gas Corp. ............... 7,000 139,125
Wicor, Inc. ....................... 3,500 136,281
------------
603,531
------------
8,408,272
------------
Total United States Investments
(cost $11,714,677)............... 12,799,007
------------
FOREIGN INVESTMENTS--11.0%
BRAZIL--3.1%
Light Participacoes, S.A. .........600,000 239,097
Telecomunicacoes Brasileras S.A.
(ADR)........................... 1,800 273,150
------------
512,247
------------
CHILE--1.0%
Compania de Telecomunicacoes
de Chile S.A. (ADR).............. 4,675 154,275
------------
FINLAND--1.1%
Nokia Corp. (ADR)................... 2,500 184,375
------------
MEXICO--1.8%
Telefonos de Mexico S.A.
Series L (ADR)................... 6,200 296,050
------------
PERU--1.0%
Telefonica del Peru S.A............. 62,000 162,918
------------
SOUTH KOREA--1.6%
Korea Electric Power Corp. (ADR) .. 4,020 119,966
SK Telecom Co. Ltd. (ADR) ......... 14,800 148,925
------------
268,891
------------
B-21
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
UTILITY INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONT'D)
- -------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT
(000) U.S. $ VALUE
----------- ------------
SWEDEN--1.4%
Ericsson (L.M.) Telephone Co.
Cl.B (ADR)....................... 5,600 $ 220,675
------------
Total Foreign Investments
(cost $1,064,375)................ 1,799,431
------------
Total Common and Preferred Stocks
(cost $12,779,052)............... 14,598,438
------------
CONVERTIBLE BONDS--3.4%
3Com Corp.
10.25%, 11/01/01 (a).............$ 305 427,381
International Cabletel, Inc.
7.25%, 4/15/05................... 115 124,488
------------
Total Convertible Bonds
(cost $596,950).................. 551,869
------------
PRINCIPAL
AMOUNT
(000) U.S. $ VALUE
--------- -------------
SHORT-TERM INVESTMENTS--6.7%
COMMERCIAL PAPER--6.7%
American Express Credit Corp.:
5.55%, 7/09/97...................$ 400 $ 399,507
5.56%, 7/01/97................... 400 400,000
General Electric Capital Corp.
5.67%, 7/07/97................... 300 299,716
------------
Total Short-Term Investments
(amortized cost $1,099,223)...... 1,099,223
------------
TOTAL INVESTMENTS--99.2%
(cost $14,475,225)............... 16,249,530
Other assets less liabilities--0.8%. 135,781
------------
NET ASSETS--100.0%.................. $ 16,385,311
============
- -------------------------------------------------------------------------------
* Non-income producing security.
(a) 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,
1997, the market value of the security amounted to $427,381 or 2.6% of
net assets.
See Glossary of Terms on page B-47.
See Notes to Financial Statements.
B-22
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
- -------------------------------------------------------------------------------
SHARES U.S. $ VALUE
------ ------------
COMMON AND
PREFERRED STOCKS--92.8%
CAPITAL GOODS--0.9%
POLLUTION CONTROL--0.9%
Republic Industries, Inc. *......... 27,000 $ 671,625
WMX Technologies, Inc............... 27,000 867,375
------------
1,539,000
------------
CONSUMER SERVICES--15.4%
AIRLINES--2.5%
AMR Corp. *......................... 5,000 462,500
Continental Airlines, Inc. Cl.B *... 58,000 2,026,375
Delta Air Lines, Inc................ 11,400 934,800
Northwest Airlines Corp. Cl.A *..... 13,300 486,281
UAL Corp. *......................... 8,900 636,906
------------
4,546,862
------------
AUTO & RELATED--0.4%
Hertz Corp. Cl.A *.................. 17,200 619,200
------------
BROADCASTING &
CABLE--2.2%
Liberty Media Group Inc. Cl.A....... 53,037 1,261,286
Viacom, Inc. Cl.B *................. 92,700 2,781,000
------------
4,042,286
------------
BUSINESS SERVICES--5.9%
ADT Ltd. *.......................... 65,000 2,145,000
CUC International, Inc. *...........333,750 8,614,922
------------
10,759,922
------------
ENTERTAINMENT &
LEISURE--0.9%
ITT Corp. *......................... 28,000 1,709,750
------------
RETAILING--3.5%
CompUSA, Inc. *.....................148,900 3,201,350
Home Depot, Inc..................... 46,100 3,178,019
------------
6,379,369
------------
28,057,389
------------
CONSUMER STAPLES--3.1%
TOBACCO--3.1%
Loews Corp.......................... 25,800 2,583,225
Philip Morris Cos., Inc............. 70,000 3,106,250
------------
5,689,475
------------
ENERGY--6.7%
OIL & GAS SERVICES--6.7%
Baker Hughes, Inc................... 16,000 $ 619,000
BJ Services Co. *................... 19,300 1,034,962
Gulf Canada Resources Ltd. *........482,300 4,009,119
Halliburton Co...................... 20,900 1,656,325
Nabors Industries, Inc. *........... 70,000 1,750,000
Rowan Cos., Inc. *.................. 19,000 535,563
Santa Fe International Corp. *...... 31,000 1,054,000
Transocean Offshore, Inc............ 22,000 1,597,750
------------
12,256,719
------------
FINANCE--24.9%
BANKING & CREDIT--6.4%
Chase Manhattan Corp................ 37,920 3,680,610
First Union Corp.................... 22,000 2,035,000
Household International, Inc........ 10,100 1,186,119
MBNA Corp........................... 60,600 2,219,475
NationsBank Corp.................... 39,000 2,515,500
------------
11,636,704
------------
INSURANCE--10.0%
20th Century Industries, Inc........ 58,000 1,218,000
Acceptance Insurance Co. *..........104,000 2,366,000
American International Group, Inc... 31,350 4,682,906
Hartford Life, Inc. Cl.A............ 58,800 2,205,000
Nationwide Financial Services,
Inc. Cl.A........................ 72,800 1,933,750
PennCorp Financial Group, Inc....... 11,000 423,500
Progressive Corp.................... 11,600 1,009,200
Travelers Group, Inc................ 71,666 4,519,437
18,357,793
------------
REAL ESTATE--4.9%
Alexandria Real Estate Equities,
Inc. ........................... 50,800 1,114,425
Arden Realty Group, Inc............. 40,000 1,040,000
Golf Trust of America, Inc.......... 12,000 333,750
Humphrey Hospitality Trust, Inc..... 78,100 854,219
JP Realty, Inc...................... 38,000 1,030,750
Koger Equity, Inc...................100,000 1,825,000
Macerich Co......................... 52,500 1,456,875
Prentiss Properties Trust........... 49,000 1,255,625
------------
8,910,644
------------
B-23
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONT'D)
- -------------------------------------------------------------------------------
SHARES U.S. $ VALUE
------ ------------
OTHER--3.6%
American Express Co................. 70,600 $ 5,259,700
Morgan Stanley, Dean Witter,
Discover & Co.................... 30,600 1,317,712
------------
6,577,412
------------
45,482,553
------------
HEALTH CARE--6.8%
BIOTECHNOLOGY--0.1%
Gensia Sicor, Inc.
3.75% conv. pfd. (a)............. 8,000 176,000
------------
DRUGS--4.7%
Biogen, Inc. *...................... 16,000 542,500
Merck & Co., Inc.................... 47,900 4,957,650
Pfizer, Inc......................... 18,000 2,151,000
Schering-Plough Corp................ 20,000 957,500
------------
8,608,650
------------
MEDICAL PRODUCTS--0.8%
Boston Scientific Corp. *........... 23,800 1,462,213
------------
MEDICAL SERVICES--1.2%
Medtronic, Inc...................... 21,600 1,749,600
Quest Medical, Inc. *............... 38,000 342,000
------------
2,091,600
------------
12,338,463
------------
TECHNOLOGY--33.7%
COMMUNICATIONS
EQUIPMENT--1.8%
Anixter International, Inc. *....... 30,000 515,625
EMC Corp. *......................... 70,000 2,730,000
------------
3,245,625
------------
COMPUTER HARDWARE--0.5%
Applied Magnetics Corp. *........... 41,000 927,625
------------
COMPUTER SOFTWARE &
SERVICES--7.4%
Ceridian Corp. *....................117,500 4,964,375
Microsoft Corp. *................... 20,000 2,529,375
Sterling Commerce, Inc. *........... 79,789 2,623,063
Sterling Software, Inc..............110,100 3,440,625
------------
13,557,438
------------
NETWORK SOFTWARE--8.3%
3Com Corp. *........................102,500 4,609,297
Cabletron Systems, Inc. *........... 22,500 637,031
SHARES OR
PRINCIPAL
AMOUNT
(000) U.S. $ VALUE
--------- -------------
Cisco Systems, Inc. *...............142,800 $ 9,589,913
Fore Systems, Inc. *................ 21,900 297,703
------------
15,133,944
------------
SEMI-CONDUCTORS &
RELATED--4.2%
Intel Corp.......................... 51,000 7,221,281
Micron Technology, Inc.............. 9,000 359,438
------------
7,580,719
------------
TELECOMMUNICATIONS--11.5%
Brooks Fiber Properties, Inc. *..... 57,600 1,947,600
Cascade Communications Corp. *...... 31,000 855,406
Colt Telecom Group Plc (ADR) *......114,600 2,349,300
Millicom International Cellular,
S.A. *........................... 16,500 794,063
Qwest Communications
International, Inc. *............ 26,500 720,469
Telephone and Data Systems, Inc. *.. 37,900 1,437,831
Teleport Communications Group,
Inc. Cl.A *...................... 68,200 2,323,062
U.S. Cellular Corp. *............... 6,000 177,750
WorldCom, Inc. * ..................282,462 9,029,957
8.0% conv. pfd................... 12,000 1,350,750
------------
20,986,188
------------
61,431,539
------------
TRANSPORTATION--1.3%
RAILROADS--1.3%
Union Pacific Corp.................. 33,853 2,386,637
------------
Total Common and Preferred Stocks
(cost $131,177,642).............. 169,181,775
------------
CONVERTIBLE BONDS--1.9%
3Com Corp.
10.25%, 11/01/01 (a).............$ 400 560,500
Altera Corp.
5.75%, 6/15/02 (a)............... 285 596,006
Applied Magnetics Corp.
7.00%, 3/15/06................... 900 1,284,750
HMT Technology Corp.
5.75%, 1/15/04 (a)............... 1,195 1,041,144
------------
Total Convertible Bonds
(cost $3,789,229)................ 3,482,400
------------
B-24
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONT'D)
- -------------------------------------------------------------------------------
PRINCIPAL
AMOUNT
(000) U.S. $ VALUE
----------- ------------
SHORT-TERM INVESTMENTS--4.9%
U.S. GOVERNMENT AND
AGENCY--4.9%
Federal Home Loan Bank
5.20%, 7/01/97...................$ 6,800 $ 6,800,000
5.30%, 7/01/97................... 2,180 2,180,000
------------
Total Short-Term Investments
(amortized cost $8,980,000)...... 8,980,000
------------
TOTAL INVESTMENTS--99.6%
(cost $143,946,871).............. $181,644,175
Other assets less liabilities--0.4%.. 747,907
------------
NET ASSETS--100.0%................... $182,392,082
============
- -------------------------------------------------------------------------------
* 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,
1997, the aggregate market value of these securities amounted to
$2,373,650 or 1.3% of net assets.
See Glossary of Terms on page B-47.
See Notes to Financial Statements.
B-25
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
WORLDWIDE PRIVATIZATION PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
- -------------------------------------------------------------------------------
SHARES U.S. $ VALUE
------ ------------
COMMON STOCKS AND
OTHER INVESTMENTS--90.2%
ARGENTINA--0.9%
Central Costanera S.A. Cl.B...... 17,600 $ 60,729
Dragados Y Construcciones
Argentina..................... 14,100 62,050
Metrogas S.A. (ADR).............. 7,663 76,630
Telecom Argentina Stet France S.A.
(ADR)......................... 1,850 97,125
------------
296,534
------------
AUSTRALIA--3.3%
Commonwealth Sevum Lab. Ltd...... 98,700 605,691
Qantas Airways Ltd............... 95,868 224,602
TAB Corp. Holdings, Ltd.......... 52,600 286,218
------------
1,116,511
------------
AUSTRIA--3.1%
Austria Mikro Systeme
International AG ............. 3,300 279,855
Bohler-Uddeholm AG............... 1,650 127,953
Flughafen Wien AG................ 5,280 223,023
Voest Alpine Stahl AG............ 3,600 163,069
V.A. Technologies AG............. 1,300 237,903
------------
1,031,803
------------
BELGIUM--0.5%
Credit Communal Holding Dexia.... 1,500 161,131
------------
BOTSWANA--1.1%
Sechaba Investment Trust Ltd..... 312,400 367,382
------------
BRAZIL--9.6%
Bardella S.A. pfd................ 1,000 146,765
Centrais Eletrais de Santa
Catarina, S.A. pfd. .......... 260,001 386,421
Companhia Energetica De Minas
Gerais (ADR).................. 2,400 122,400
Companhia Paulista de Forca e Luz 1,416,000 238,072
pref. * ...................... 373,501 62,068
Companhia Riograndense de
Telecom-pref *................ 284,500 430,760
Receipt *..................... 7,258 9,328
Companhia Vale Receipts De Rio
Doce pfd. (a)*................ 2,360 0
Iven S.A......................... 438,100 299,107
Light Participacoes S.A.......... 305,000 121,541
Metalurgica Gerdau S.A........... 3,369,500 162,755
Multicanal Participacoes S.A.
(ADR)*........................ 5,700 77,306
Petroleo Brasileiro, S.A. (ADR).. 2,000 54,750
Siderurgica Riograndense,
S.A. pfd. .................... 8,687,727 $ 330,869
Telecomunicacoes Brasileras
S.A. (ADR) ................... 4,500 682,875
Trikem S.A. pfd. *...............15,000,000 41,800
Uniao de Bancos Brasileiras
S.A. * ....................... 1,600 59,400
------------
3,226,217
------------
CANADA--2.1%
Alberta Energy Co. Ltd........... 9,900 245,538
Canadian National Railway Co..... 5,100 223,125
Petro-Canada Common.............. 6,100 99,388
Petro-Canada Common Non Resident. 9,000 146,312
------------
714,363
------------
CHILE--0.3%
Enersis S.A. (ADR)............... 3,000 106,688
------------
COLOMBIA--0.2%
Banco de Colombia (GDR)(b)....... 8,400 50,400
------------
CZECH REPUBLIC--1.0%
Ceske Radiokomunikace A.S.*...... 990 124,739
Ceske Energeticke Zavody (GDS) *. 1,500 41,408
Komercni Banka A.S. (GDR)........ 3,600 73,800
Podnik Vypocetni Techniky........ 500 44,184
Tabak A.S........................ 280 65,637
------------
349,768
------------
DENMARK--0.4%
Copenhagen Airport............... 1,200 127,303
------------
EGYPT--0.7%
Commercial International
Bank (GDR).................... 10,500 217,875
------------
FINLAND--1.8%
Outokumpu OY..................... 16,200 321,333
OY Tamro AB...................... 18,000 124,789
Rauma OY......................... 6,400 146,666
------------
592,788
------------
FRANCE--6.9%
LeCarbone Lorraine............... 400 97,334
Compagnie Generale des Eaux *.... 42 4,688
Compagniedes Machines Bull S.A... 6,820 69,283
Pechiney S.A. Cl.A............... 3,200 126,057
Renault S.A...................... 6,100 154,350
Seita............................ 3,500 110,776
SGS-Thomson Microelectronics N.V. * 4,000 315,823
Societe Centrale des Assurances
Generales de France .......... 4,400 140,610
B-26
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
WORLDWIDE PRIVATIZATION PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONT'D)
- -------------------------------------------------------------------------------
SHARES U.S. $ VALUE
------ ------------
Societe Generale................. 1,980 $ 221,022
Societe National Elf Aquitaine S.A. 3,950 426,141
Union des Assurances Federales... 1,400 164,616
Usinor Sacilor................... 26,300 474,382
------------
2,305,082
------------
GERMANY--5.0%
BHW Holding AG *................. 3,950 66,811
Deutsche Lufthansa AG............ 22,900 439,198
Deutsche Telekom AG.............. 31,780 765,300
Viag AG (new).................... 57 25,835
Viag AG.......................... 840 381,928
------------
1,679,072
------------
GHANA--0.4%
Ashanti Goldfields Co. Ltd. (GDR) 11,500 134,406
------------
GREECE--0.3%
Hellenic Sugar Industrie S.A..... 11,200 70,135
Hellenic Telecommunication
Organization, S.A............. 600 14,090
Rights * ..................... 600 0
------------
84,225
------------
HONG KONG--0.2%
The Guangshen Railway Co. Ltd.
(ADR)......................... 3,400 74,375
------------
HUNGARY--2.0%
Gedeon Richter (GDR) *........... 1,460 134,145
Mol Magyar Olaj Es Gazipari
Right (GDR)(b) ............... 8,000 176,000
OTP Bank (GDR)................... 6,100 158,600
Tiszai Vegyi Kombinat Rt (GDR) .. 11,800 202,370
------------
671,115
------------
INDIA--0.5%
Industrial Credit & Investment Corp.
of India Ltd. (GDR) * (b) .... 2,000 28,500
Industrial Credit & Investment Corp.
of India Ltd. (GDR) *......... 3,000 42,750
State Bank of India (GDR)(b) *... 3,900 101,985
Videsh Sanchar Nigam Ltd. (GDS)*. 2,000 41,400
------------
214,635
------------
INDONESIA--2.1%
PTIndosat........................ 140,000 418,791
PT Telekomunikasi Indonesia...... 41,000 67,013
PT Telekomunikasi Indonesia (ADR) 4,600 149,500
Tambang Timah (GDR).............. 2,000 30,620
------------
665,924
------------
IRELAND--0.5%
Greencore Group Plc.............. 36,582 $ 180,002
------------
ISRAEL--0.8%
Bank Hapoalim B.M................ 62,500 130,120
Tadiran Ltd. (ADR)............... 4,600 131,675
------------
261,795
------------
ITALY--3.1%
Ente Nazionale Idrocarburi S.p.A. 46,000 260,507
IMI LNV.......................... 29,600 266,467
Instituto Nazionale delle
Assicurazioni ................ 100,000 152,391
Telecom Italia Mobile di Risp.... 50,000 98,996
Telecom Italia Mobile di Risp
S.p.A ........................ 109,000 194,967
Telecom Italia S.p.A............. 25,000 80,903
------------
1,054,231
------------
JAPAN--5.1%
Daiwa Securities Co., Ltd........ 42,000 331,251
DDI Corp. ....................... 59 435,474
East Japan Railway Co............ 15 76,950
Japan Tobacco, Inc............... 41 323,722
Nippon Telegraph and
Telephone Corp................ 20 191,938
Nomura Securities Co., Ltd....... 25,000 344,617
------------
1,703,952
------------
JORDAN--0.2%
Arab Potash Co................... 8,300 77,849
------------
MALAYSIA--0.4%
Malakoff Bhd..................... 12,000 52,298
Telekom Malaysia Bhd............. 18,000 84,152
------------
136,450
------------
MEXICO--1.8%
ALFA S.A......................... 22,600 154,127
Grupo Financiero Banamex S.A. *.. 44,800 114,995
Grupo Financiero Bancrecer
S.A. de C.V.* ................ 75,000 7,266
Grupo Financiero Banorte
S.A. de C.V.* ................ 148,500 173,239
Grupo Financiero GBM
Atlantico (ADR)(b) (c)*....... 8,400 8,400
Grupo Financiero Probursa S.A.
de C.V.* ..................... 98,814 24,991
Grupo Minsa S.A. C.V. de C.V.*... 75,000 97,200
B-27
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
WORLDWIDE PRIVATIZATION PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONT'D)
- -------------------------------------------------------------------------------
SHARES U.S. $ VALUE
------ ------------
Grupo Profesional Planeacion
Proyectos S.A.(c)............. 4,800 $ 22,347
------------
602,565
------------
NETHERLANDS--4.7%
Akzo Nobel N.V................... 4,700 644,098
European Vinyls Corp.
International N.V. ........... 4,900 124,067
Internationale Nederlanden
Groep N.V..................... 7,300 336,568
KLM Royal Dutch Airlines N.V. *.. 9,092 280,231
Koninkluke PTT Nederland N.V..... 4,753 186,449
------------
1,571,413
------------
NEW ZEALAND--0.4%
Tranz Rail Holdings Ltd.......... 24,100 137,507
------------
NORWAY--0.7%
Christiana Bank OG Kreditkasse... 36,000 122,797
Den Norske Bank.................. 30,000 117,475
------------
240,272
------------
PAKISTAN--0.6%
Hub Power Co. (GDR) *............ 4,600 112,700
Pakistan Telecom (GDR)........... 1,350 97,200
------------
209,900
------------
PERU--1.7%
Cementos Lima S.A................ 3,785 76,200
Cementos Norte Pacasmay Series C. 82,667 127,779
Cementos Norte Pacasmay Series T. 42,912 66,653
Explosivios S.A. Cl. C (c)....... 80,573 88,091
Telefonica del Peru S.A.......... 82,000 215,472
------------
574,195
------------
PHILIPPINES--1.4%
First Philippines Holdings
Corp Series B................. 111,250 153,952
International Container
Terminal Services, Inc........ 190,000 97,247
Manila Electric Co. Series B..... 42,200 207,992
------------
459,191
------------
POLAND--1.4%
Bank Handlowy W Warszawie (GDR)* (b) 4,900 60,760
Bank Handlowy W Warszawie ordinary 14,500 167,214
Banka Przenyslowo Handlowy S.A... 1,400 68,797
Elektrim S.A..................... 11,200 97,465
Wielkopolski Bank Kiedytowy S.A.. 15,000 85,806
------------
480,042
------------
PORTUGAL--1.7%
Electricidade de Portugal S.A. *. 29,200 $ 535,856
Portucel Industrial S.A.......... 6,500 48,193
------------
584,049
------------
RUSSIA--1.7%
Gazprom (ADR)(b)................. 7,500 127,500
Nearmedic S.A. * (c)............. 1,300 193,990
RNGS Holdings Ltd.
8.0% conv. pfd (c)............ 36,800 140,313
Sun Brewing (GDR) * (b).......... 15,800 118,974
------------
580,777
------------
SOUTH AFRICA--0.4%
Iscor, Ltd....................... 212,630 140,597
------------
SOUTH KOREA--2.3%
Korea Electric Power Corp. (ADR). 13,000 242,937
SK Telecom Ltd. (ADR)............ 53,259 535,919
------------
778,856
------------
SPAIN--2.6%
Empresa Nacional de Celulosas S.A. 15,095 266,352
Empresa Nacional de
Electricidad S.A.............. 4,000 335,799
Repsol S.A....................... 6,600 279,050
------------
881,201
------------
SWEDEN--1.3%
Assi Doman AB.................... 6,350 180,596
Castellum AB *................... 11,800 88,475
Sparbanken Sverige AB Cl.A ...... 7,900 175,658
------------
444,729
------------
SWITZERLAND--1.2%
Swissair AG...................... 350 392,192
------------
THAILAND--0.5%
Electricity Generating Public
of Thailand .................. 30,000 73,538
Industrial Finance Corp. of
Thailand ..................... 80,000 101,911
------------
175,449
------------
TURKEY--0.9%
Petrokimya Holdings A.S.......... 141,000 48,416
Tupras Turkiye Petrol
Rafinerileri A.S. ............ 254,800 144,105
Usas Ucak Servisi A.S............ 43,500 102,508
------------
295,029
------------
B-28
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
WORLDWIDE PRIVATIZATION PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONT'D)
- -------------------------------------------------------------------------------
SHARES U.S. $ VALUE
------ ------------
UNITED KINGDOM--9.3%
Anglian Water Plc................ 36,196 $ 394,816
Birkby Plc....................... 46,000 120,268
British Energy Plc............... 190,800 465,488
National Grid Group Plc.......... 131,511 475,242
National Power Plc............... 32,900 285,995
Northern Ireland Electricity Plc. 32,900 227,372
PowerGen Plc..................... 33,044 392,901
RJB Mining....................... 12,000 71,941
Scottish Hydro Electric.......... 32,900 227,372
Stagecoach Holdings Plc.......... 16,687 175,904
Wessex Water Plc................. 40,099 271,782
------------
3,109,081
------------
UNITED STATES--2.0%
Central European Media
Enterprises Ltd. * ........... 2,800 73,850
Pharmacia & Upjohn, Inc.......... 17,000 590,750
------------
664,600
------------
VENEZUELA--1.1%
Compania Anonima Nacional
Telefonos de Venezuela (ADR).. 8,500 $ 366,563
------------
Total Common Stocks and
Other Investments
(cost $27,154,225)............ 30,290,084
------------
SHORT-TERM INVESTMENTS--6.7%
TIME DEPOSIT--6.7%
State Street Bank and Trust Co.
5.25%, 7/01/97
(amortized cost $2,243,000)... $ 2,243 2,243,000
TOTAL INVESTMENTS--96.9%
(cost $29,397,225)............ 32,533,084
Other assets less liabilities--3.1% 1,034,149
------------
NET ASSETS--100.0%................ $ 33,567,233
============
- -------------------------------------------------------------------------------
* Non-income producing security.
(a) These shares are a result of a corporate action. Awaiting shareholder
approval.
(b) Securities exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration normally applied to certain qualified buyers. At June 30,
1997, the aggregate market value of these securities amounted to $672,519
or 2.0% of net assets.
(c) Illiquid security, valued at fair market value (see Note A & E). See
Glossary of Terms on page B-47.
See Notes to Financial Statements.
B-29
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
CONSERVATIVE INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
- -------------------------------------------------------------------------------
SHARES U.S. $ VALUE
------ ------------
COMMON AND
PREFERRED STOCKS--29.0%
BASIC INDUSTRIES--0.8%
CHEMICALS--0.4%
Akzo Nobel N.V...................... 150 $ 20,556
Bayer AG............................ 400 15,371
Ciba Specialty Chemicals AG *....... 151 13,962
Cytec Industries, Inc............... 250 9,344
Henkel KGaA, pfd.................... 140 7,947
Hitachi Chemical Co., Ltd........... 1,000 8,812
Monsanto Co......................... 400 17,225
------------
93,217
------------
CONTAINERS--0.2%
Crown Cork & Seal, Inc.
4.5% conv. pfd................... 500 26,719
Legris Industries S.A............... 100 4,713
Schmalbach Lubeca AG................ 70 15,693
------------
47,125
------------
METALS & MINING--0.1%
Koninklijke Hoogovens N.V........... 206 11,481
NatSteel Ltd........................ 2,000 5,092
Pohang Iron & Steel Co. Ltd. (ADR).. 150 4,800
Rautaruukki OY...................... 693 7,273
Usinor Sacilor...................... 600 10,823
------------
39,469
------------
PAPER & FOREST
PRODUCTS--0.1%
Jefferson Smurfit Corp. *........... 700 11,287
Jefferson Smurfit Group Plc......... 1,700 4,898
Koninklijke KNP BT.................. 500 11,386
------------
27,571
------------
207,382
------------
CAPITAL GOODS--2.5%
ELECTRICAL EQUIPMENT--1.0%
Aiwa Co. Ltd........................ 1,000 22,945
General Electric Co................. 2,000 130,750
Johnson Electric Holdings Ltd....... 2,000 5,963
Legrand S.A......................... 30 5,284
Mabuchi Motor Co.................... 200 11,604
Makita Corp......................... 1,000 14,657
Sony Corp........................... 200 17,431
Sumitomo Electric Industries........ 1,000 16,751
Westinghouse Electric Corp.......... 1,000 23,125
------------
248,510
------------
ENGINEERING &
CONSTRUCTION--0.5%
Beazer Group Plc.................... 2,000 $ 5,462
Compagnie Francaise d'Etudes et
de Construction Technip.......... 115 13,346
Fujitec Co. Ltd..................... 2,000 23,730
Holderbank Financiere Glarus AG..... 15 14,168
Martin Marietta Materials, Inc...... 400 12,950
Matsushita Electric Works........... 2,000 22,684
National House Industrial Co........ 1,000 13,174
NGK Insulators Ltd.................. 1,000 10,993
Rugby Group Plc..................... 5,120 10,232
Toda Construction Co. Ltd........... 1,000 6,997
------------
133,736
------------
MACHINERY--0.7%
Allied-Signal, Inc.................. 1,200 100,800
Coltec Industries, Inc. *........... 600 11,700
Daikin Industries Ltd............... 1,000 9,073
Ishikawajima-Harima Heavy
Industries Co. Ltd............... 1,000 3,926
Mitsubishi Heavy Industries Ltd. *.. 1,000 7,669
Schindler Holding AG *.............. 13 16,695
Stork N.V........................... 300 12,227
Toyoda Automatic Loom Works......... 1,000 22,684
------------
184,774
------------
POLLUTION CONTROL--0.3%
USA Waste Services, Inc. *.......... 1,800 69,525
------------
636,545
------------
CONSUMER
MANUFACTURING--1.2%
APPLIANCES--0.5%
Sunbeam Corp........................ 3,700 139,675
------------
AUTO & RELATED--0.5%
Bajaj Auto Ltd. (GDR)............... 200 6,950
Continental AG...................... 650 16,137
Federal-Mogul Corp.................. 800 28,000
Honda Motor Co...................... 1,000 30,099
NGK Spark Plug...................... 1,000 10,906
UMW Holdings Bhd.................... 2,000 9,430
Volkswagen AG....................... 15 11,499
Yamaha Motor Co. Ltd. *............. 1,000 9,946
------------
122,967
------------
B-30
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
CONSERVATIVE INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONT'D)
- -------------------------------------------------------------------------------
SHARES U.S. $ VALUE
------ ------------
OTHER--0.2%
Fuji Photo Film Co.................. 1,000 $ 40,220
Varitronix International Ltd........ 6,000 10,184
------------
50,404
------------
313,046
------------
CONSUMER SERVICES--3.8%
AIRLINES--0.2%
BAA Plc............................. 1,500 13,826
Northwest Airlines Corp. Cl.A *..... 800 29,250
------------
43,076
------------
APPAREL--0.4%
Adidas A.G.......................... 80 8,853
Onward Kashiyama Co. Ltd............ 1,000 16,576
Reebok International Ltd............ 1,725 80,644
------------
106,073
------------
BROADCASTING &
CABLE--0.4%
Cablevision Systems Corp. Cl.A *.... 400 21,600
Carlton Communications Plc.......... 1,300 11,008
Indonesian Satellite Corp. (ADR).... 500 14,969
Liberty Media Group Cl.A *.......... 2,003 47,634
------------
95,211
------------
ENTERTAINMENT &
LEISURE--0.8%
Carnival Corp. Cl.A................. 600 24,750
Disney (Walt) Co.................... 1,170 93,893
ITT Corp. *......................... 750 45,797
Ladbroke Group Plc.................. 2,500 9,825
Time Warner, Inc.................... 800 38,600
------------
212,865
------------
PRINTING & PUBLISHING--0.3%
New Straits Times Press Bhd......... 1,000 5,864
New York Times Co. Cl.A............. 1,300 64,350
United News Media Plc............... 1,000 11,599
------------
81,813
------------
RESTAURANTS &
LODGING--0.4%
Compass Group Plc................... 1,400 15,667
Host Marriott Corp.................. 2,000 35,625
La Quinta Inns, Inc................. 1,800 39,375
------------
90,667
------------
RETAILING--1.3%
Circuit City Stores, Inc.-Car
Max Group *...................... 980 14,026
Credit Saison Co. Ltd............... 1,000 $ 24,428
Dayton Hudson Corp.................. 1,550 82,441
Dickson Concepts International Ltd.. 2,000 7,280
Federated Department Stores, Inc. *. 800 27,800
Fingerhut Cos., Inc................. 1,400 24,412
Kingfisher Plc...................... 500 5,679
Rite Aid Corp....................... 500 24,937
Sears, Roebuck & Co................. 900 48,375
TJX Cos., Inc....................... 2,000 52,750
Vendex International N.V. *......... 151 8,270
Woolworths Ltd...................... 4,173 13,719
------------
334,117
------------
963,822
------------
CONSUMER STAPLES--2.9%
BEVERAGES--0.2%
Bass Plc............................ 1,000 12,207
Guinness Plc........................ 600 5,875
Scottish & Newcastle Plc............ 1,000 10,758
Whitbread Plc....................... 1,200 15,177
------------
44,017
------------
COSMETICS--0.6%
Colgate-Palmolive Co................ 1,250 81,563
Gillette Co......................... 695 65,851
------------
147,414
------------
FOOD--0.9%
Campbell Soup Co.................... 1,400 70,000
Coca-Cola Co........................ 1,800 121,500
Ezaki Glico Co...................... 200 1,797
Nabisco Holdings Corp. Cl.A......... 525 20,934
Nestle, S.A......................... 11 14,511
Parmalat Finanziaria S.p.A. *....... 3,290 4,656
------------
233,398
------------
HOUSEHOLD PRODUCTS--0.0%
Hunter Douglas N.V.................. 100 8,508
------------
RETAIL - FOOD--0.1%
Promodes............................ 30 11,685
------------
RETAIL - FOOD & DRUG--0.0%
Boots Co. Plc....................... 800 9,385
------------
TOBACCO--1.1%
Japan Tobacco, Inc.................. 2 15,791
Loews Corp.......................... 300 30,038
B-31
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
CONSERVATIVE INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONT'D)
- -------------------------------------------------------------------------------
SHARES U.S. $ VALUE
------ ------------
Philip Morris Cos., Inc............. 5,020 $ 222,763
SEITA............................... 300 9,495
Tabacalera, S.A..................... 150 8,052
------------
286,139
------------
740,546
------------
ENERGY--2.5%
OIL & GAS SERVICES--2.5%
Apache Corp......................... 1,000 32,500
Baker Hughes, Inc................... 500 19,344
BG Plc.............................. 1,800 6,595
BJ Services Co. *................... 1,400 75,075
British Petroleum Co. Plc........... 900 11,196
Ente Nazionale Idrocarburi.......... 1,300 7,362
Gulf Canada Resources Ltd. *........ 2,900 24,106
Halliburton Co...................... 350 27,737
Nabors Industries, Inc. *........... 2,000 50,000
Noble Drilling Corp. *.............. 800 18,050
Parker Drilling Co. *............... 1,000 11,125
Santa Fe International Corp. *...... 400 13,600
Schlumberger Ltd.................... 150 18,750
Shell Transportation & Trading Co... 2,100 14,338
Societe Nacionale Elf Aquitaine..... 225 24,274
Texaco, Inc......................... 1,100 119,625
Total S.A. Cl.B..................... 260 26,280
Transocean Offshore, Inc............ 1,550 112,569
USX-Marathon Group.................. 500 14,437
------------
626,963
------------
FINANCE--5.4%
BANKING & CREDIT--2.0%
Allied Irish Banks.................. 3,000 22,881
Banco Bilbao Vizcaya S.A............ 150 12,185
Banco Santander S.A................. 300 9,243
Bangkok Bank Public Co. Ltd......... 700 4,810
Banque National de Paris *.......... 130 5,358
Beneficial Corp..................... 500 35,531
BG Bank A/S......................... 300 16,582
Chase Manhattan Corp. .............. 400 38,825
Credito Italiano.................... 4,000 7,319
Dao Heng Bank Group Ltd............. 3,000 16,419
Den Danske Bank..................... 100 9,729
Den Norske Bank..................... 2,000 7,832
First Union Corp.................... 500 46,250
Kredietbank N.V..................... 20 8,060
Long-Term Credit Bank of Japan...... 2,000 8,637
MBNA Corp........................... 4,950 $ 181,294
PT Bank Dagang Nasional Indonesia... 12,000 8,512
Societe Generale.................... 90 10,046
Sparbanken Sverige AB A Shares ..... 450 10,006
Wing Hang Bank Ltd.................. 2,000 12,082
Yamaguchi Bank...................... 1,000 15,006
77th Bank........................... 1,000 9,684
------------
496,291
------------
BROKERAGE & MONEY
MANAGEMENT--0.5%
Merrill Lynch & Co., Inc............ 1,600 95,400
Peregrine Investments Holdings Ltd.. 4,000 8,235
Salomon, Inc........................ 500 27,813
------------
131,448
------------
INSURANCE--1.6%
Baloise Holdings Ltd. *............. 10 23,836
Fortis Amev NV...................... 500 22,263
General Accident Plc................ 400 5,829
Internationale Nederlanden
Groep N.V. ...................... 570 26,280
MGIC Investment Corp................ 600 28,762
PennCorp Financial Group, Inc....... 1,100 42,350
PMI Group, Inc...................... 700 43,662
QBE Insurance Group Ltd............. 1,500 9,069
Royal & Sun Alliance Insurance
Group Plc........................ 1,000 7,394
Societe Centrale des Assurances
Generales de France.............. 350 11,185
Travelers Group, Inc................ 2,700 170,269
Trygg-Hansa AB...................... 300 5,992
United Assurance Group Plc.......... 700 4,960
conv. pfd........................ 3,900 195
Zurich Versicherungsgesellschaft.... 30 11,938
------------
413,984
------------
REAL ESTATE--0.1%
Daito Trust Construction Co......... 2,400 28,267
------------
OTHER--1.2%
American Express Co................. 1,700 126,650
Morgan Stanley, Dean Witter,
Discover & Co.................... 4,100 176,556
------------
303,206
------------
1,373,196
------------
B-32
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
CONSERVATIVE INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONT'D)
- -------------------------------------------------------------------------------
SHARES U.S. $ VALUE
------ ------------
HEALTH CARE--2.9%
BIOTECHNOLOGY--0.2%
Centocor, Inc. *.................... 1,643 $ 50,984
------------
DRUGS--1.9%
Astra AB, Series A.................. 400 7,446
Daiichi Pharmaceutical Co........... 1,000 17,624
GelTex Pharmaceuticals, Inc. *...... 1,000 20,000
Merck & Co., Inc.................... 1,100 113,850
Merck KGaA.......................... 250 11,030
Novartis AG......................... 18 28,775
Orion-Yhtymae OY Cl.B............... 200 7,580
Pfizer, Inc......................... 1,000 119,500
Sankyo Co. Ltd...................... 1,000 33,589
Taisho Pharmaceutical Co............ 1,000 26,959
Warner-Lambert Co................... 300 37,275
Yamanouchi Pharmaceutical........... 2,000 53,743
------------
477,371
------------
MEDICAL PRODUCTS--0.6%
Boston Scientific Corp. *........... 1,266 77,780
Kuraray Co. Ltd..................... 1,000 9,946
Medtronic, Inc...................... 760 61,560
PT Tempo Scan Pacific............... 2,000 4,482
------------
153,768
------------
MEDICAL SERVICES--0.2%
Oxford Health Plans, Inc. *......... 900 64,603
------------
746,726
------------
MULTI INDUSTRY--0.9%
Barco Industries N.V................ 63 12,765
Berjaya Sports Toto Bhd............. 2,000 9,429
BTR Plc............................. 2,000 6,844
Compagnie Generale des Eaux ...... 103 13,310
warrants, expiring 5/02/01 *..... 103 62
Granada Group Plc................... 900 11,840
Huhtamaki Group..................... 200 8,608
IMI LNV............................. 1,000 9,002
IMI Plc............................. 1,000 5,729
Orkla ASA........................... 80 5,905
Smith (Howard) Ltd.................. 300 2,857
Swire Pacific Ltd. Cl.A............. 1,000 9,003
Tomkins Plc......................... 4,000 17,319
Tyco International Ltd.............. 700 48,694
U.S. Industries, Inc. *............. 1,900 67,687
Valmet Corp......................... 300 5,188
------------
234,242
------------
TECHNOLOGY--5.3%
AEROSPACE & DEFENSE--0.4%
Boeing Co........................... 400 $ 21,225
British Aerospace Plc............... 500 11,128
General Dynamics Corp............... 400 30,000
United Technologies Corp............ 600 49,800
------------
112,153
------------
COMMUNICATIONS
EQUIPMENT--0.3%
DSC Communications Corp. *.......... 2,000 44,563
Nokia Corp. (ADR)................... 400 29,500
------------
74,063
------------
COMPUTER HARDWARE--0.2%
COMPAQ Computer Corp. *............. 600 59,550
------------
COMPUTER PERIPHERALS--0.0%
Seagate Technology, Inc. *.......... 250 8,797
------------
COMPUTER SOFTWARE &
SERVICES--1.2%
First Data Corp..................... 1,200 52,725
Microsoft Corp. *................... 600 75,881
Netscape Communications Corp. *..... 600 19,219
Oracle Corp. *...................... 1,712 86,189
Storage Technology Corp. *.......... 380 16,910
Sun Microsystems, Inc. *............ 1,400 52,106
------------
303,030
------------
NETWORK SOFTWARE--0.5%
Cisco Systems, Inc. *............... 1,900 127,597
------------
OFFICE EQUIPMENT &
SERVICES--0.1%
Canon, Inc.......................... 1,000 27,220
------------
SEMI-CONDUCTORS &
RELATED--1.2%
Altera Corp. *...................... 2,100 106,115
Intel Corp.......................... 700 99,116
Micron Technology, Inc.............. 500 19,969
National Semiconductor Corp. *...... 2,350 71,969
Nippon Chemical..................... 1,000 5,287
------------
302,456
------------
TELECOMMUNICATIONS--1.4%
Asia Satellite Telecom Ltd. *....... 8,000 24,525
British Telecommunications Plc...... 2,000 14,854
B-33
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
CONSERVATIVE INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONT'D)
- -------------------------------------------------------------------------------
SHARES U.S. $ VALUE
------ ------------
Cable & Wireless Plc................ 1,000 $ 9,159
DDI Corp............................ 2 14,762
Nextel Communications, Inc. *....... 500 9,453
Nokia AB OY Corp. pfd............... 100 7,470
Philippine Long Distance ORD........ 150 4,862
SK Telecom Co. Ltd. (ADR)........... 2,575 25,911
Societa Italiana Per L'Eserreizio
Delle Telecommunicazioni, P.A. *. 6,000 19,258
Telefonica de Espana................ 700 20,238
Telekom Malaysia Bhd *.............. 1,500 7,013
Telephone and Data Systems, Inc..... 700 26,556
Teleport Communications Group,
Inc. Cl.A *...................... 2,300 78,344
Tellabs, Inc. *..................... 600 33,487
Videsh Sanchar Nigam Ltd. * (a)..... 100 2,070
Vodafone Group Plc.................. 2,000 9,759
WorldCom, Inc. *.................... 1,240 39,641
------------
347,362
------------
1,362,228
------------
TRANSPORTATION--0.4%
RAILROADS--0.4%
Union Pacific Corp.................. 1,300 91,650
------------
SHIPPING--0.0%
Bergesen DY ASA Cl.A................ 450 10,653
------------
102,303
------------
UTILITIES--0.4%
ELECTRIC & GAS--0.3%
FPL Group, Inc...................... 800 36,850
Hong Kong Electric Holdings Ltd..... 1,000 4,027
PowerGen Plc........................ 1,000 11,890
Scottish Power Plc.................. 2,500 16,237
Veba AG............................. 200 11,238
------------
80,242
------------
WATER UTILITY--0.1%
Anglian Water Plc................... 1,200 13,089
------------
93,331
------------
Total Common and Preferred Stocks
(cost $5,865,210)................ 7,400,330
------------
PRINCIPAL
AMOUNT
(000) U.S. $ VALUE
--------- -------------
CORPORATE BONDS--10.6%
Bear Stearns Cos., Inc.
6.75%, 5/01/01...................$ 200 $ 199,850
Chase Manhattan Corp.
6.25%, 1/15/06................... 200 188,806
Corporacion Andina de Fomento
7.25%, 3/01/07................... 400 401,043
Deutsche Bank Financial, Inc.
6.70%, 12/13/06.................. 350 342,080
Ford Motor Co.
7.125%, 11/15/25................. 295 281,704
St. George Bank Ltd.
7.15%, 10/15/05 (a).............. 425 422,620
Time Warner, Inc.
8.375%, 3/15/23.................. 450 462,145
Zurich Capital Trust I
8.376%, 6/01/37.................. 400 414,474
------------
Total Corporate Bonds
(cost $2,710,157)................ 2,712,722
------------
U.S. GOVERNMENT AND
AGENCY--39.5%
Federal Home Loan Bank:
7.00%, 9/01/11................... 463 462,723
7.00%, 1/01/12................... 97 97,113
Federal National Mortgage Association:
6.00%, 4/01/11................... 461 445,975
6.50%, 6/01/11................... 322 316,009
6.50%, 4/01/12................... 247 241,716
7.00%, 5/01/26................... 593 581,862
Government National Mortgage
Association:
7.50%, 1/15/27................... 495 496,844
7.50%, 3/15/27................... 121 121,292
U.S. Treasury Bond
6.625%, 2/15/27.................. 955 934,410
U.S. Treasury Notes:
6.125%, 8/31/98.................. 2,370 2,375,925
6.25%, 4/30/01................... 1,280 1,276,403
6.375%, 5/15/99.................. 795 798,975
6.50%, 5/31/02................... 1,550 1,556,293
6.875%, 5/15/06.................. 350 357,273
------------
Total U.S. Government and
Agency
(cost $10,012,365)............... 10,062,813
------------
B-34
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
CONSERVATIVE INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONT'D)
- -------------------------------------------------------------------------------
PRINCIPAL
AMOUNT
(000) U.S. $ VALUE
----------- ------------
SHORT-TERM INVESTMENTS--20.0%
U.S. GOVERNMENT AND
AGENCY--20.0%
Federal Home Loan Bank
5.20%, 7/01/97...................$ 3,000 $ 3,000,000
5.39%, 7/02/97................... 2,100 2,099,686
Total Short-Term Investments
(amortized cost $5,099,686)...... 5,099,686
------------
TOTAL INVESTMENTS--99.1%
(cost $23,687,418)............... $ 25,275,551
Other assets less liabilities--0.9%.. 232,583
------------
NET ASSETS--100.0%................... $ 25,508,134
============
- -------------------------------------------------------------------------------
DISTRIBUTION OF INVESTMENTS BY GLOBAL REGION
AS A PERCENT OF TOTAL INVESTMENTS
Canada.............................. 0.1%
Japan............................... 2.4
New Zealand and Australia........... 0.1
Scandinavia......................... 0.6
Southeast Asia...................... 0.6
United Kingdom...................... 1.3
United States**..................... 92.3
Other European Countries............ 2.6
-------
100.0%
=======
** Includes Short-Term Investments of 20.0%.
- -------------------------------------------------------------------------------
* 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,
1997, the aggregate market value of these securities amounted to $424,690
or 1.7% of net assets.
See Glossary of Terms on page B-47.
See Notes to Financial Statements.
B-35
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
- -------------------------------------------------------------------------------
SHARES U.S. $ VALUE
------ ------------
COMMON AND
PREFERRED STOCKS--65.8%
BASIC INDUSTRIES--2.0%
CHEMICALS--1.0%
Akzo Nobel N.V..................... 150 $ 20,556
Bayer AG............................ 400 15,371
Ciba Specialty Chemicals AG *....... 151 13,962
Cytec Industries, Inc. *............ 800 29,900
Henkel KGaA, pfd.................... 140 7,947
Hitachi Chemical Co., Ltd........... 1,000 8,812
Monsanto Co......................... 750 32,297
------------
128,845
------------
CONTAINERS--0.4%
Crown Cork & Seal, Inc.
4.5% conv., pfd.................. 600 32,062
Legris Industries S.A............... 100 4,714
Schmalbach Lubeca AG................ 70 15,693
------------
52,469
------------
METALS & MINING--0.3%
Koninklijke Hoogovens N.V........... 206 11,481
NatSteel Ltd........................ 2,000 5,092
Pohang Iron & Steel Co. Ltd. (ADR).. 150 4,800
Rautaruukki OY...................... 683 7,168
Usinor Sacilor...................... 600 10,823
------------
39,364
------------
PAPER & FOREST
PRODUCTS--0.3%
Jefferson Smurfit Group *........... 1,500 24,187
Jefferson Smurfit Group Plc......... 1,700 4,898
Koninklijke KNP BT.................. 500 11,386
------------
40,471
------------
261,149
------------
CAPITAL GOODS--4.8%
ELECTRICAL EQUIPMENT--2.0%
Aiwa Co. Ltd........................ 1,000 22,945
General Electric Co................. 1,600 104,600
Johnson Electric Holdings Ltd....... 2,000 5,963
Legrand S.A......................... 30 5,284
Mabuchi Motor Co.................... 200 11,604
Makita Corp......................... 1,000 14,657
Sony Corp........................... 200 17,432
Sumitomo Electric Industries........ 1,000 16,751
Westinghouse Electric Corp.......... 2,500 57,812
------------
257,048
------------
ENGINEERING &
CONSTRUCTION--1.1%
Beazer Group Plc.................... 2,000 $ 5,462
Compagnie Francaise d'Etudes et
de Construction Technip.......... 115 13,346
Fujitec Co. Ltd..................... 1,000 11,865
Holderbank Financiere Glarus AG..... 15 14,168
Martin Marietta Materials, Inc...... 1,000 32,375
Matsushita Electric Works........... 2,000 22,684
National House Industrial Co........ 1,000 13,174
NGK Insulators Ltd.................. 1,000 10,993
Rugby Group Plc..................... 5,110 10,212
Toda Construction Co. Ltd........... 1,000 6,997
------------
141,276
------------
MACHINERY--1.3%
Allied-Signal, Inc.................. 900 75,600
Coltec Industries, Inc. *........... 2,000 39,000
Daikin Industries Ltd............... 1,000 9,073
Ishikawajima-Harima Heavy
Industries Co. Ltd............... 1,000 3,926
Mitsubishi Heavy Industries Ltd. *.. 1,000 7,669
Schindler Holding AG *.............. 13 16,695
Stork N.V........................... 300 12,227
Toyoda Automatic Loomworks ......... 1,000 22,684
------------
186,874
------------
POLLUTION CONTROL--0.4%
USA Waste Services, Inc. *.......... 1,400 54,075
------------
639,273
------------
CONSUMER
MANUFACTURING--2.7%
APPLIANCES--0.8%
Sunbeam Corp........................ 3,000 113,250
------------
AUTO & RELATED--1.5%
Bajaj Auto Ltd. (GDR)............... 300 10,425
Continental AG...................... 650 16,137
Cummins Engine Co., Inc............. 700 49,394
Federal-Mogul Corp.................. 600 21,000
Honda Motor Co...................... 1,000 30,099
NGK Spark Plug...................... 1,000 10,906
UMW Holdings Bhd.................... 2,000 9,429
Volkswagen AG....................... 15 11,499
Yamaha Motor Co. Ltd. *............. 1,000 9,946
------------
168,835
------------
B-36
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONT'D)
- -------------------------------------------------------------------------------
SHARES U.S. $ VALUE
------ ------------
OTHER--0.4%
Fuji Photo Film Co.................. 1,000 $ 40,220
Varitronix International Ltd........ 6,000 10,184
------------
50,404
------------
332,489
------------
CONSUMER SERVICES--9.3%
AIRLINES--0.3%
BAA Plc............................. 1,500 13,826
Northwest Airlines Corp. Cl.A *..... 700 25,594
------------
39,420
------------
APPAREL--0.8%
Adidas A.G.......................... 80 8,853
Onward Kashiyama Co. Ltd............ 1,000 16,576
Reebok International Ltd............ 1,520 71,060
------------
96,489
------------
BROADCASTING &
CABLE--1.1%
Cablevision Systems Corp. Cl.A *.... 1,050 56,700
Carlton Communications Plc.......... 1,300 11,008
Indonesian Satellite Corp. (ADR) ... 1,000 29,938
Liberty Media Group Cl.A *.......... 2,000 47,562
------------
145,208
------------
ENTERTAINMENT &
LEISURE--2.5%
Carnival Corp. Cl.A................. 500 20,625
Disney (Walt) Co.................... 866 69,497
ITT Corp. *......................... 1,750 106,859
Ladbroke Group Plc.................. 2,500 9,825
Time Warner, Inc.................... 2,300 110,975
------------
317,781
------------
PRINTING & PUBLISHING--0.5%
New Straits Times Press Bhd......... 1,000 5,864
New York Times Co. Cl.A............. 1,000 49,500
United News Media Plc............... 1,000 11,599
------------
66,963
------------
RESTAURANTS &
LODGING--0.9%
Compass Group Plc................... 1,500 16,786
Host Marriott Corp.................. 3,700 65,907
La Quinta Inns, Inc................. 1,600 35,000
------------
117,693
------------
RETAILING--3.2%
Circuit City Stores, Inc.-Car
Max Group *...................... 330 4,723
Credit Saison Co. Ltd............... 1,000 $ 24,428
Dayton Hudson Corp.................. 1,600 85,100
Dickson Concepts International Ltd.. 2,000 7,280
Federated Department Stores, Inc. *. 1,700 59,075
Fingerhut Cos., Inc................. 3,000 52,312
Kingfisher Plc...................... 500 5,679
Rite Aid Corp....................... 1,250 62,344
Sears, Roebuck & Co................. 900 48,375
TJX Cos. Inc........................ 1,800 47,475
Vendex International N.V. *......... 151 8,270
Woolworths Ltd...................... 4,173 13,719
------------
418,780
------------
1,202,334
------------
CONSUMER STAPLES--5.4%
BEVERAGES--0.3%
Bass Plc............................ 1,000 12,207
Guinness Plc........................ 600 5,875
Scottish & Newcastle Plc............ 1,000 10,758
Whitbread Plc....................... 1,200 15,177
------------
44,017
------------
COSMETICS--1.0%
Colgate-Palmolive Co................ 1,120 73,080
Gillette Co......................... 645 61,114
------------
134,194
------------
FOOD--1.5%
Campbell Soup Co.................... 1,180 59,000
Coca-Cola Co........................ 1,400 94,500
Ezaki Glico Co...................... 400 3,594
Nabisco Holdings Corp. Cl.A......... 445 17,744
Nestle, S.A......................... 11 14,511
Parmalat Finanziaria S.p.A. *....... 3,290 4,656
------------
194,005
------------
HOUSEHOLD PRODUCTS--0.1%
Hunter Douglas N.V.................. 100 8,508
------------
RETAIL - FOOD--0.1%
Promodes............................ 30 11,685
------------
RETAIL - FOOD & DRUG--0.1%
Boots Co. Plc....................... 700 8,212
------------
TOBACCO--2.3%
Japan Tobacco, Inc.................. 2 15,792
Loews Corp.......................... 800 80,100
Philip Morris Cos., Inc............. 4,050 179,719
B-37
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONT'D)
- -------------------------------------------------------------------------------
SHARES U.S. $ VALUE
------ ------------
SEITA............................... 300 $ 9,495
Tabacalera, S.A..................... 150 8,052
------------
293,158
------------
693,779
------------
ENERGY--7.3%
OIL & GAS SERVICES--7.3%
Apache Corp......................... 2,100 68,250
Baker Hughes, Inc................... 3,500 135,406
BG Plc.............................. 1,800 6,595
BJ Services Co. *................... 1,800 96,525
British Petroleum Co. Plc........... 900 11,196
Ente Nazionale Idrocarburi.......... 1,300 7,362
Gulf Canada Resources Ltd. *........ 6,600 54,863
Halliburton Co...................... 700 55,475
Nabors Industries, Inc. *........... 2,600 65,000
Noble Drilling Corp. *.............. 3,000 67,687
Parker Drilling Co. *............... 2,500 27,813
Santa Fe International Corp. *...... 600 20,400
Shell Transport & Trading Co........ 2,100 14,338
Societe Nacionale Elf Aquitaine SA.. 225 24,274
Texaco, Inc......................... 900 97,875
Total S.A. Cl.B..................... 264 26,684
Transocean Offshore, Inc............ 1,800 130,725
USX-Marathon Group.................. 1,000 28,875
------------
939,343
------------
FINANCE--11.6%
BANKING & CREDIT--3.9%
Allied Irish Banks.................. 3,000 22,881
Banco Bilbao Vizcaya S.A............ 150 12,185
Banco Santander S.A................. 300 9,243
Bangkok Bank Public Co. Ltd......... 1,000 6,871
Banque National de Paris *.......... 130 5,358
Beneficial Corp..................... 1,000 71,062
BG Bank A/S......................... 300 16,582
Chase Manhattan Corp................ 400 38,825
Credito Italiano.................... 4,000 7,320
Dao Heng Bank Group Ltd............. 3,000 16,419
Den Danske Bank..................... 100 9,729
Den Norske Bank..................... 2,000 7,832
First Union Corp.................... 400 37,000
Kredietbank N.V..................... 20 8,060
Long-Term Credit Bank of Japan...... 2,000 8,637
MBNA Corp........................... 4,200 153,825
Overseas Chinese Bank............... 120 1,242
PT Bank Dagang Nasional Indonesia... 12,000 $ 8,512
Societe Generale.................... 90 10,046
Sparbanken Sverige AB A Shares...... 450 10,006
Wing Hang Bank Ltd.................. 2,000 12,082
Yamaguchi Bank...................... 1,000 15,006
77th Bank........................... 1,000 9,684
------------
498,407
------------
BROKERAGE & MONEY
MANAGEMENT--1.0%
Merrill Lynch & Co., Inc............ 1,200 71,550
Peregrine Investments Holdings Ltd.. 4,000 8,235
Salomon, Inc........................ 1,000 55,625
------------
135,410
------------
INSURANCE--4.0%
Baloise Holdings Ltd. *............. 10 23,836
Fortis Amev NV...................... 500 22,263
General Accident Plc................ 400 5,829
Internationale Nederlanden Groep N.V. 568 26,188
MGIC Investment Corp................ 1,900 91,081
PennCorp Financial Group, Inc....... 900 34,650
PMI Group, Inc...................... 500 31,187
QBE Insurance Group Ltd............. 1,500 9,069
Royal & Sun Alliance Insurance
Group Plc........................ 1,000 7,394
Societe Centrale des Assurances
Generales de France.............. 350 11,185
SunAmerica, Inc..................... 900 43,875
Travelers Group, Inc................ 2,933 184,962
Trygg-Hansa AB...................... 300 5,992
United Assurance Group Plc.......... 700 4,960
conv. pfd........................ 9,000 450
Zurich Versicherungsgesellschaft.... 30 11,938
------------
514,859
------------
REAL ESTATE--0.2%
Daito Trust Construction Co......... 2,400 28,267
------------
OTHER--2.5%
American Express Co................. 2,000 149,000
Morgan Stanley, Dean Witter,
Discover & Co.................... 4,050 174,403
------------
323,403
------------
1,500,346
------------
B-38
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONT'D)
- -------------------------------------------------------------------------------
SHARES U.S. $ VALUE
------ ------------
HEALTH CARE--5.9%
BIOTECHNOLOGY--0.3%
Centocor, Inc. *.................... 1,330 $ 41,272
------------
DRUGS--4.2%
Astra AB, Series A.................. 400 7,446
Daiichi Pharmaceutical Co........... 1,000 17,623
GelTex Pharmaceuticals, Inc. *...... 800 16,000
Merck & Co., Inc. .................. 880 91,080
Merck KGaA.......................... 250 11,030
Novartis AG......................... 18 28,775
Orion-Yhtymae OY Cl.B............... 350 13,265
Pfizer, Inc......................... 900 107,550
Sankyo Co. Ltd...................... 1,000 33,589
Taisho Pharmaceutical Co............ 1,000 26,959
Warner-Lambert Co................... 1,100 136,675
Yamanouchi Pharmaceutical........... 2,000 53,743
------------
543,735
------------
MEDICAL PRODUCTS--1.1%
Boston Scientific Corp. *........... 1,007 61,867
Kuraray Co. Ltd..................... 1,000 9,946
Medtronic, Inc...................... 750 60,750
PT Tempo Scan Pacific............... 2,000 4,482
------------
137,045
------------
MEDICAL SERVICES--0.3%
Oxford Health Plans, Inc. *......... 600 43,069
------------
765,121
------------
MULTI INDUSTRY--2.8%
Barco Industries N.V................ 65 13,170
Berjaya Sports Toto Bhd............. 3,000 14,144
BTR Plc............................. 2,000 6,845
Compagnie Generale des Eaux ....... 104 13,438
warrants, expiring 5/02/01 *..... 104 62
Eaton Corp.......................... 500 43,656
Granada Group Plc................... 900 11,840
Huhtamaki Group..................... 200 8,608
IMI LNV............................. 1,000 9,002
IMI Plc............................. 1,000 5,729
Orkla ASA........................... 80 5,905
Smith (Howard) Ltd.................. 300 2,857
Swire Pacific Ltd. Cl.A............. 1,000 9,003
Tomkins Plc......................... 4,000 17,319
Tyco International Ltd.............. 700 48,694
U.S. Industries, Inc. *............. 4,200 149,625
Valmet Corp......................... 300 $ 5,188
------------
365,085
------------
TECHNOLOGY--12.6%
AEROSPACE & DEFENSE--0.7%
Boeing Co........................... 400 21,225
British Aerospace Plc............... 500 11,128
General Dynamics Corp............... 300 22,500
United Technologies Corp............ 500 41,500
------------
96,353
------------
COMMUNICATIONS
EQUIPMENT--0.9%
Nokia Corp. (ADR)................... 1,500 110,625
------------
COMPUTER HARDWARE--0.4%
COMPAQ Computer Corp. *............. 530 52,603
------------
COMPUTER PERIPHERALS--0.2%
Seagate Technology, Inc. *.......... 600 21,113
------------
COMPUTER SOFTWARE &
SERVICES--2.4%
First Data Corp..................... 1,020 44,816
Microsoft Corp. *................... 500 63,234
Netscape Communications Corp. *..... 600 19,219
Oracle Corp. *...................... 1,762 88,706
Storage Technology Corp. *.......... 1,170 52,065
Sun Microsystems, Inc. *............ 1,300 48,384
------------
316,424
------------
NETWORK SOFTWARE--0.9%
Cisco Systems, Inc. *............... 1,650 110,808
------------
OFFICE EQUIPMENT &
SERVICES--0.2%
Canon, Inc.......................... 1,000 27,220
------------
SEMI-CONDUCTORS &
RELATED--2.9%
Altera Corp. *...................... 1,700 85,903
Applied Materials, Inc. *........... 700 49,547
Intel Corp.......................... 600 84,956
Micron Technology, Inc.............. 1,250 49,922
National Semiconductor Corp. *...... 3,250 99,531
Nippon Chemical..................... 1,000 5,287
------------
375,146
------------
B-39
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONT'D)
- -------------------------------------------------------------------------------
SHARES U.S. $ VALUE
------ ------------
TELECOMMUNICATIONS--3.7%
ADC Telecommunications, Inc. *...... 1,300 $ 43,469
Asia Satellite Telecom Ltd.......... 6,000 18,393
British Telecommunications Plc...... 2,000 14,854
Cable & Wireless Plc................ 1,000 9,159
DDI Corp............................ 2 14,762
DSC Communications Corp. *.......... 1,800 40,106
Nextel Communications, Inc *........ 1,000 18,906
Nokia AB OY Corp. pfd............... 100 7,470
Philippine Long Distance ORD........ 150 4,862
SK Telecom Co. Ltd. (ADR)........... 2,060 20,729
Societa Italiana Per L'Eserreizio
Delle Telecommunicazioni, P.A. *. 6,000 19,258
Telefonica de Espana................ 700 20,238
Telekom Malaysia Bhd *.............. 1,500 7,013
Teleport Communications Group,
Inc. Cl.A *...................... 2,700 91,969
Tellabs, Inc. *..................... 500 27,906
Videsh Sanchar Nigam Ltd. * (a)..... 100 2,070
Vodafone Group Plc.................. 2,000 9,759
WorldCom, Inc. *.................... 3,300 105,497
------------
476,420
------------
OTHER--0.3%
Solectron Corp. *................... 600 42,000
------------
1,628,712
------------
TRANSPORTATION--0.7%
RAILROADS--0.6%
Union Pacific Corp.................. 1,100 77,550
------------
SHIPPING--0.1%
Bergesen DY ASA C1. A............... 450 10,652
------------
88,202
------------
UTILITIES--0.7%
ELECTRIC & GAS--0.7%
Anglian Water Plc................... 1,200 13,089
FPL Group, Inc...................... 600 27,638
Hong Kong Electric Holdings Ltd..... 1,000 4,027
PowerGen Plc........................ 1,000 11,890
Scottish Power Plc.................. 2,500 16,237
Veba AG............................. 200 11,238
------------
84,119
------------
Total Common and Preferred Stocks
(cost $6,854,050)................ 8,499,952
------------
CORPORATE BONDS--5.1%
Auburn Hills Trust
12.00%, 5/01/20..................$ 50 $ 74,222
Chase Manhattan Corp.
6.25%, 1/15/06................... 100 94,403
Deutsche Bank Financial, Inc.
6.70%, 12/13/06.................. 75 73,303
Dime Capital Trust I
9.33%, 5/06/27................... 75 78,337
Empresa Nacional de Electricidad, S.A.
7.875%, 2/01/27.................. 75 75,900
Russian Federation
10.00%, 6/26/07.................. 75 74,775
United Companies Financial Corp.
8.375%, 7/01/05.................. 80 79,618
Zurich Capital Trust I
8.376%, 6/01/37.................. 100 103,618
------------
Total Corporate Bonds
(cost $655,312).................. 654,176
------------
U.S. GOVERNMENT AND
AGENCY--14.2%
Federal Home Loan Bank
7.00%, 9/01/11................... 79 78,663
Federal National Mortgage Association:
6.00%, 4/01/11................... 92 89,195
6.50%, 1/01/11................... 62 60,589
7.00%, 12/01/11.................. 48 47,821
7.00%, 5/01/26................... 81 79,133
Government National Mortgage
Association
7.50%, 1/15/27................... 149 149,053
U.S. Treasury Bond
6.625%, 2/15/27.................. 120 117,413
U.S. Treasury Notes:
6.125%, 8/31/98.................. 100 100,250
6.375%, 5/15/99.................. 340 341,700
6.50%, 5/31/02................... 315 316,279
6.875%, 5/15/06.................. 150 153,117
7.875%, 4/15/98.................. 300 304,875
------------
Total U.S. Government And
Agency
(cost $1,831,760)................ 1,838,088
------------
B-40
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONT'D)
- -------------------------------------------------------------------------------
PRINCIPAL
AMOUNT
(000) U.S. $ VALUE
----------- ------------
SHORT-TERM INVESTMENTS--13.9%
U.S. GOVERNMENT AND
AGENCY--13.9%
Federal Home Loan Bank
5.30%, 7/01/97
(amortized cost $1,800,000)......$ 1,800 $ 1,800,000
------------
TOTAL INVESTMENTS--99.0%
(cost $11,141,122)............... $ 12,792,216
Other assets less liabilities--1.0%. 132,528
------------
NET ASSETS--100.0%.................. $ 12,924,744
============
- -------------------------------------------------------------------------------
DISTRIBUTION OF INVESTMENTS BY GLOBAL REGION
AS A PERCENT OF TOTAL INVESTMENTS
Canada.............................. 0.4%
Japan............................... 4.7
New Zealand and Australia........... 0.2
Scandinavia......................... 1.7
South America....................... 0.6
Southeast Asia...................... 1.6
United Kingdom...................... 2.7
United States**..................... 83.1
Other European Countries............ 5.0
-------
100.0%
=======
** Includes Short-Term Investments of 13.9%.
- -------------------------------------------------------------------------------
* Non-income producing security.
(a) 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,
1997, the market value of the security amounted to $2,070 or 0.0% of net
assets.
See Glossary of Terms on page B-47.
See Notes to Financial Statements.
B-41
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
TECHNOLOGY PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
- -------------------------------------------------------------------------------
SHARES U.S. $ VALUE
------ ------------
COMMON STOCKS--80.4%
BUSINESS SERVICES--0.6%
Equifax, Inc........................ 8,000 $ 297,500
------------
COMMUNICATIONS EQUIPMENT--8.4%
Ericsson (L.M.) Telephone Co.
(ADR) Cl.B....................... 23,900 941,809
Motorola, Inc....................... 10,400 790,400
Nokia Corp. (ADR)................... 6,500 479,375
PairGain Technologies, Inc. *....... 16,000 248,500
Scientific-Atlanta, Inc............. 12,400 271,250
Tellabs, Inc. *..................... 24,000 1,339,500
4,070,834
------------
COMPUTER HARDWARE--10.6%
COMPAQ Computer Corp. *............. 22,800 2,262,900
Dell Computer Corp. *............... 22,425 2,632,835
Sun Microsystems, Inc. *............ 7,000 260,531
------------
5,156,266
------------
COMPUTER SOFTWARE &
SERVICES--20.1%
Computer Sciences Corp. *........... 11,900 858,287
DST Systems, Inc. *................. 13,100 436,394
First Data Corp..................... 27,600 1,212,675
Fiserv, Inc. *...................... 5,400 241,650
Gartner Group, Inc. Cl.A *.......... 20,000 718,125
HBO & Co............................ 12,500 860,937
I2 Technologies, Inc. *............. 4,000 123,250
IONA Technologies Plc (ADR) *....... 8,700 171,825
Microsoft Corp. *................... 8,900 1,125,572
Netscape Communications Corp. *..... 15,500 496,484
New Era of Networks, Inc. *......... 3,700 62,437
Object Design, Inc. *............... 12,700 108,744
Oracle Corp. *...................... 35,150 1,769,583
Pegasystems, Inc. *................. 10,000 313,750
PeopleSoft, Inc. *.................. 6,000 316,125
Rational Software Corp. *........... 15,800 265,144
Renaissance Solutions, Inc. *....... 6,900 253,575
Spectrum Holobyte, Inc. *........... 400 1,938
SunGard Data Systems, Inc. *........ 9,000 418,500
------------
9,754,995
------------
NETWORK SOFTWARE--12.7%
3Com Corp. *........................ 8,500 $ 382,234
Ascend Communications, Inc. *....... 21,000 824,906
Bay Networks, Inc. *................ 38,300 1,017,344
Cabletron Systems, Inc. *........... 16,000 453,000
Cascade Communications Corp. *...... 7,400 204,194
Cisco Systems, Inc. *............... 32,700 2,196,009
Fore Systems, Inc. *................ 27,100 368,391
Newbridge Networks Corp. *.......... 16,700 726,450
------------
6,172,528
------------
<PAGE>
SEMI-CONDUCTORS &
RELATED--21.0%
Altera Corp. *...................... 31,300 1,581,628
Applied Materials, Inc. *........... 20,400 1,443,937
Atmel Corp. *....................... 21,000 589,313
CFM Technologies, Inc. *............ 11,800 385,713
Intel Corp. ........................ 10,680 1,512,221
Lam Research Corp. *................ 9,200 341,263
LSI Logic Corp. *................... 18,500 592,000
Microchip Technology, Inc. *........ 16,950 503,733
National Semiconductor Corp. *...... 26,000 796,250
Silicon Valley Group, Inc. *........ 22,800 599,925
Teradyne, Inc. *.................... 17,200 675,100
Texas Instruments, Inc.............. 7,400 622,062
VLSI Technology, Inc. *............. 24,800 585,125
------------
10,228,270
------------
TELECOMMUNICATIONS--0.8%
WorldCom, Inc. *.................... 12,400 396,413
------------
OTHER--6.2%
Ingram Micro, Inc. Cl.A *........... 24,000 579,000
Sanmina Corp. *..................... 21,700 1,358,963
Solectron Corp. *................... 15,600 1,092,000
------------
3,029,963
------------
Total Common Stocks
(cost $32,306,259)............... 39,106,769
------------
B-42
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
TECHNOLOGY PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONT'D)
- -------------------------------------------------------------------------------
PRINCIPAL
AMOUNT
(000) U.S. $ VALUE
----------- ------------
SHORT-TERM INVESTMENTS--19.4%
COMMERCIAL PAPER--19.4%
American Express Credit Corp.
5.55%, 7/07/97...................$ 2,400 $ 2,397,780
Ford Motor Credit Co.
5.52%, 7/03/97................... 2,400 2,399,264
Merrill Lynch & Co., Inc.
5.58%, 7/08/97................... 2,220 2,217,591
Prudential Funding
5.48%, 7/01/97 ................. 2,400 2,400,000
------------
Total Short-Term Investments
(amortized cost $9,414,635)...... 9,414,635
------------
TOTAL INVESTMENTS--99.8%
(cost $41,720,894)............... $ 48,521,404
Other assets less liabilities--0.2%. 102,718
------------
NET ASSETS--100.0%.................. $ 48,624,122
============
- -------------------------------------------------------------------------------
* Non-income producing security.
See Glossary of Terms on page B-47.
See Notes to Financial Statements.
B-43
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
QUASAR PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
- -------------------------------------------------------------------------------
SHARES U.S. $ VALUE
------ ------------
COMMON STOCKS AND
OTHER INVESTMENTS--86.3%
BASIC INDUSTRIES--8.5%
CHEMICALS--2.6%
Crompton & Knowles Corp............. 21,500 $ 478,375
Cytec Industries, Inc. *............ 6,500 242,937
International Specialty
Products, Inc. *................. 9,100 127,969
------------
849,281
------------
CONTAINERS--1.4%
Silgan Holdings, Inc. *............. 12,300 475,856
------------
METALS & MINING--3.8%
Bethlehem Steel Corp. *............. 59,400 619,988
Century Aluminum Co. ............... 12,100 176,206
Pegasus Gold, Inc. *................ 12,600 77,175
Steel Dynamics, Inc. *.............. 16,000 403,000
------------
1,276,369
------------
PAPER & FOREST
PRODUCTS--0.7%
Buckeye Cellulose Corp. *........... 6,300 212,625
------------
2,814,131
------------
CAPITAL GOODS--3.6%
ENGINEERING &
CONSTRUCTION--1.0%
Watsco, Inc......................... 13,600 340,000
------------
POLLUTION CONTROL--2.6%
American Disposal Services, Inc. *.. 9,900 223,988
Superior Services, Inc. *........... 13,700 322,806
United Waste Systems, Inc. *........ 7,900 323,406
------------
870,200
------------
1,210,200
------------
CONSUMER
MANUFACTURING--8.6%
AUTO & RELATED--2.6%
Keystone Automotive Industries,
Inc *............................ 9,300 159,844
Miller Industries, Inc. *........... 25,750 412,000
Monaco Coach Corp. *................ 12,500 300,000
------------
871,844
------------
BUILDING & RELATED--0.9%
Hughes Supply, Inc.................. 7,100 284,000
------------
TEXTILE PRODUCTS--4.7%
Furniture Brands International,
Inc. *........................... 14,600 282,875
Mohawk Industries, Inc. *.......... 46,300 $ 1,047,537
Polymer Group, Inc. *............... 14,700 237,038
------------
1,567,450
------------
OTHER--0.4%
Synetic, Inc. *..................... 4,000 147,500
------------
2,870,794
------------
CONSUMER SERVICES--22.3%
AIRLINES--3.0%
Alaska Air Group, Inc. *............ 14,500 371,562
America West Holding Corp. Cl.B *... 3,300 47,850
Continental Airlines, Inc. Cl.B *... 16,500 576,469
------------
995,881
------------
APPAREL--4.5%
Nautica Enterprises, Inc. *......... 22,700 600,841
Stride Rite Corp.................... 27,400 352,775
Timberland Co. Cl.A *............... 1,500 96,750
Tommy Hilfiger Corp. *.............. 11,100 446,081
------------
1,496,447
------------
BROADCASTING &
CABLE--3.5%
Evergreen Media Corp. *............. 13,700 610,506
Jacor Communications, Inc. Cl.A *... 9,000 345,094
Sinclair Broadcast Group, Inc.
Cl.A * .......................... 6,400 196,800
------------
1,152,400
------------
ENTERTAINMENT &
LEISURE--0.9%
Florida Panthers Holdings,
Inc. Cl.A *...................... 12,100 291,912
------------
RESTAURANTS &
LODGING--2.2%
Doubletree Corp. *.................. 1,800 73,969
Extended Stay America, Inc. *....... 11,235 167,472
Interstate Hotels Co. *............. 7,750 228,140
Suburban Lodges of America, Inc. *.. 13,100 272,644
------------
742,225
------------
RETAILING--6.3%
Abercrombie & Fitch Co. Cl.A *...... 13,400 247,900
Circuit City Stores, Inc.-Car
Max Group *...................... 22,900 327,756
Cross-Continent Auto Retailers,
Inc. *........................... 23,300 246,106
Industrie Natuzzi S.p.A. (ADR)...... 22,700 581,688
Nine West Group, Inc. *............. 14,200 542,263
Petco Animal Supplies, Inc. *....... 5,300 158,834
------------
2,104,547
------------
B-44
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
QUASAR PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONT'D)
- -------------------------------------------------------------------------------
SHARES U.S. $ VALUE
------ ------------
OTHER--1.9%
Equity Corp. International *........ 10,000 $ 241,875
Strayer Education, Inc.............. 2,000 77,500
TeleTech Holdings, Inc. *........... 3,400 89,144
Wackenhut Corrections Corp. *....... 8,100 235,912
------------
644,431
------------
7,427,843
------------
ENERGY--9.6%
OIL & GAS SERVICES--7.9%
Costilla Energy, Inc. *............. 11,800 150,081
KCS Energy, Inc..................... 9,400 191,525
Noble Drilling Corp. *.............. 12,100 273,006
Parker Drilling Co. *............... 81,100 902,238
Rowan Cos., Inc. *.................. 23,500 662,406
Southern Union Co................... 19,900 455,213
------------
2,634,469
------------
PIPELINES--1.7%
Valero Energy Corp.................. 15,700 569,125
------------
3,203,594
------------
FINANCE--3.2%
BANKING & CREDIT--0.0%
Firstfed America Bancorp, Inc. *.... 800 14,200
------------
INSURANCE--0.1%
ReliaStar Financial Corp............ 400 29,250
------------
REAL ESTATE--2.0%
Chelsea GCA Realty, Inc............. 4,900 186,200
Mills Corp.......................... 4,000 110,750
Taubman Centers, Inc................ 29,000 384,250
------------
681,200
------------
OTHER--1.1%
International Alliance Services,
Inc. *........................... 28,900 326,028
warrants, expiring 1/1/49 *...... 9,700 27,587
------------
353,615
------------
1,078,265
------------
HEALTH CARE--6.3%
BIOTECHNOLOGY--1.5%
Centocor, Inc. *.................... 16,100 499,603
------------
DRUGS--2.9%
GelTex Pharmaceuticals, Inc. *...... 28,910 578,200
MedImmune, Inc. *................... 21,100 395,625
------------
973,825
------------
MEDICAL SERVICES--1.9%
Mid Atlantic Medical Services,
Inc. *........................... 21,900 $ 340,819
National Surgery Centers, Inc. *.... 8,200 290,075
------------
630,894
------------
2,104,322
------------
TECHNOLOGY--15.3%
AEROSPACE & DEFENSE--0.9%
Doncasters Plc (ADR) *.............. 12,500 289,063
------------
COMMUNICATIONS
EQUIPMENT--1.6%
Millicom International Cellular,
S.A. *........................... 10,800 519,750
TCSI Corp. *........................ 800 4,150
------------
523,900
------------
COMPUTER HARDWARE--1.1%
Hadco Corp. *....................... 5,800 378,450
------------
COMPUTER PERIPHERALS--1.1%
Read-Rite Corp. *................... 17,400 362,681
------------
COMPUTER SOFTWARE &
SERVICES--5.5%
Cognos, Inc. *...................... 15,500 483,406
Comverse Technology, Inc. *......... 9,700 506,219
DBT Online, Inc. *.................. 6,100 326,350
Rational Software Corp. *........... 19,700 330,591
Renaissance Solutions, Inc. *....... 4,900 180,075
------------
1,826,641
------------
ELECTRONICS--2.7%
BMC Industries, Inc................. 5,200 178,100
Harman International Industries,
Inc. ............................ 9,100 383,337
PMC-Sierra, Inc. *.................. 12,900 337,819
------------
899,256
------------
NETWORK SOFTWARE--0.7%
Fore Systems, Inc. *................ 17,900 243,328
------------
SEMI-CONDUCTORS &
RELATED--0.5%
CFM Technologies, Inc. *............ 5,700 186,319
------------
TELECOMMUNICATIONS--1.2%
Telephone and Data Systems, Inc..... 10,700 405,931
------------
5,115,569
------------
B-45
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
QUASAR PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONT'D)
- -------------------------------------------------------------------------------
SHARES U.S. $ VALUE
------ ------------
TRANSPORTATION--8.9%
RAILROADS--3.2%
Consolidated Freightways Corp. *.... 52,800 $ 866,250
Genesee & Wyoming, Inc. Cl.A *...... 7,200 194,400
------------
1,060,650
------------
SHIPPING--4.3%
Knightsbridge Tankers, Ltd.......... 21,000 531,562
OMI Corp. *......................... 93,200 891,225
------------
1,422,787
------------
TRUCKING--1.4%
Roadway Express, Inc................ 16,600 383,875
Xtra Corp........................... 2,000 87,875
------------
471,750
------------
2,955,187
------------
Total Common Stocks and
Other Investments
(cost $26,522,817)............... 28,779,905
------------
PRINCIPAL
AMOUNT
(000) U.S. $ VALUE
--------- -------------
SHORT-TERM INVESTMENTS--12.3%
U.S. GOVERNMENT AND
AGENCY--12.3%
Federal Home Loan Bank:
5.20%, 7/01/97...................$ 2,100 $ 2,100,000
5.30%, 7/01/97................... 2,000 2,000,000
------------
Total Short-Term Investments
(amortized cost $4,100,000)...... 4,100,000
------------
TOTAL INVESTMENTS--98.6%
(cost $30,622,817)............... 32,879,905
Other assets less liabilities--1.4%.. 479,784
------------
NET ASSETS--100.0%................... $ 33,359,689
============
- -------------------------------------------------------------------------------
* Non-income producing security.
See Glossary of Terms on Page B-47.
See Notes to Financial Statements.
B-46
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
REAL ESTATE INVESTMENT PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1997 (UNAUDITED)
- -------------------------------------------------------------------------------
SHARES U.S. $ VALUE
------ ------------
COMMON STOCKS--96.8%
REAL ESTATE
INVESTMENT TRUSTS--94.6%
APARTMENTS--12.5%
Ambassador Apartments, Inc.......... 5,600 $ 139,300
Avalon Properties, Inc.............. 3,900 111,637
Bay Apartment Communities, Inc...... 4,300 159,100
Essex Property Trust, Inc........... 5,600 179,900
------------
589,937
------------
HOTELS & RESTAURANTS--15.6%
American General Hospitality Corp... 5,400 133,650
FelCor Suite Hotels, Inc............ 1,000 37,250
Innkeepers USA Trust................ 10,000 150,000
Patriot American Hospitality, Inc... 7,500 191,250
Starwood Lodging Trust.............. 5,300 226,244
------------
738,394
------------
OFFICE PROPERTIES--29.3%
Alexandria Real Estate Equities,
Inc. ............................ 4,000 87,750
Arden Realty Group, Inc............. 5,200 135,200
Beacon Properties Corp.............. 5,300 176,888
Brandywine Realty Trust............. 7,100 143,775
Crescent Operating, Inc. *.......... 750 9,750
Crescent Real Estate Equities Co.... 7,500 238,125
Duke Realty Investments, Inc........ 3,200 129,600
Highwoods Properties, Inc........... 4,200 134,400
Reckson Associates Realty Corp...... 7,100 163,300
Spieker Properties, Inc............. 4,700 165,381
------------
1,384,169
------------
REGIONAL MALLS--6.9%
JP Realty, Inc...................... 4,600 124,775
Macerich Co......................... 4,300 119,325
Mills Corp.......................... 3,000 83,063
------------
327,163
------------
SHOPPING CENTERS--9.2%
Developers Diversified Realty Corp.. 3,300 132,000
Excel Realty Trust, Inc............. 7,400 195,175
PRINCIPAL
AMOUNT
(000) U.S. $ VALUE
--------- ------------
IRT Property Co..................... 9,300 $ 109,275
------------
436,450
------------
STORAGE--6.7%
Public Storage, Inc................. 4,800 140,400
Storage USA, Inc.................... 4,600 175,950
------------
316,350
------------
WAREHOUSE &
INDUSTRIAL--6.6%
Meridian Industrial Trust, Inc...... 5,500 129,250
Security Capital Industrial Trust... 8,600 184,900
------------
314,150
------------
DIVERSIFIED--7.8%
Glenborough Realty Trust, Inc....... 9,000 227,250
Golf Trust of America, Inc.......... 1,400 38,937
Pacific Gulf Properties, Inc........ 4,700 103,400
------------
369,587
------------
4,476,200
------------
REAL ESTATE DEVELOPMENT &
MANAGEMENT--2.2%
Rouse Co............................ 3,600 106,200
------------
Total Common Stocks
(cost $4,380,419)................ 4,582,400
------------
SHORT-TERM INVESTMENTS--4.5%
TIME DEPOSIT--4.5%
State Street Bank and Trust Co.
5.25%, 7/01/97
(amortized cost $211,000)........$ 211 211,000
------------
TOTAL INVESTMENTS--101.3%
(cost $4,591,419)................ 4,793,400
Other assets less liabilities--(1.3%) (60,268)
------------
NET ASSETS--100.0%.................. $ 4,733,132
============
- -------------------------------------------------------------------------------
* Non-income producing security.
See Notes to Financial Statements.
GLOSSARY OF TERMS
ADR - American Depository Receipts
FRN - Floating Rate Note
FLIRB - Front Load Interest Reduction Bond
GDR - Global Depository Receipts
GDS - Global Depository Shares
IRB - Interest Reduction Bond
pfd. - Preferred Stock
B-47
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1997 (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 $223,840,838,
$18,954,027, $161,757,911 and $7,048,578,
respectively)........................................ $274,766,464 $18,823,985 $187,030,261 $ 6,924,294
Cash................................................... 672 806 814 38,457
Dividends receivable................................... 305,059 -0- 335,854 -0-
Receivable for investment securities sold.............. 214,665 -0- -0- -0-
Interest receivable.................................... 223 450,841 84 108,691
Unrealized appreciation of forward exchange
currency contracts................................... -0- 16,949 -0- 46,101
Receivable from investment adviser..................... -0- -0- -0- 347
------------ ----------- ----------- -----------
Total assets........................................... 275,287,083 19,292,581 187,367,013 7,117,890
------------ ----------- ----------- -----------
LIABILITIES
Payable for investment securities purchased............ 5,084,380 -0- 2,266,663 -0-
Investment advisory fee payable........................ 183,017 8,403 92,674 -0-
Accrued expenses....................................... 57,522 17,841 71,063 17,373
------------ ----------- ----------- -----------
Total liabilities...................................... 5,324,919 26,244 2,430,400 17,373
------------ ----------- ----------- -----------
NET ASSETS................................................ $269,962,164 $19,266,337 $184,936,613 $ 7,100,517
============ =========== ============ ===========
COMPOSITION OF NET ASSETS
Capital stock, at par.................................. $ 14,391 $ 1,774 $ 10,447 $ 690
Additional paid-in capital............................. 220,035,844 19,378,494 151,040,058 8,071,654
Undistributed net investment income.................... 338,023 415,142 981,454 132,444
Accumulated net realized gain (loss) on investments,
options and foreign currency transactions............ (1,351,720) (419,086) 7,632,273 (1,023,064)
Net unrealized appreciation (depreciation)
of investments and foreign currency
denominated assets and liabilities................... 50,925,626 (109,987) 25,272,381 (81,207)
------------ ----------- ----------- -----------
$269,962,164 $19,266,337 $184,936,613 $ 7,100,517
============ =========== ============ ===========
Shares of capital stock outstanding.................... 14,390,859 1,773,857 10,446,707 689,834
============ =========== =========== ===========
Net asset value per share.............................. $ 18.76 $ 10.86 $ 17.70 $ 10.29
======== ======= ======= =======
</TABLE>
- -----------------------------------------------------------------------------
See Notes to Financial Statements.
B-48
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1997 (UNAUDITED)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S. GOVERNMENT/
HIGH GRADE TOTAL MONEY
SECURITIES RETURN INTERNATIONAL MARKET
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ----------- ----------- -----------
<S> <C> <C> <C> <C>
ASSETS
Investments in securities, at value (cost $30,430,091,
$30,166,310, $53,862,631 and $73,238,751,
respectively)........................................ $ 30,424,349 $33,212,862 $59,842,011 $73,238,751
Cash, at value (cost $610, $818, $848,179
and $-0-, respectively).............................. 610 818 848,127 -0-
Interest receivable.................................... 430,762 189,959 1,270 -0-
Deferred organization expenses......................... 1,060 2,410 2,465 2,493
Dividends receivable................................... -0- 37,240 214,500 -0-
Unrealized appreciation of forward exchange
currency contracts................................... -0- -0- 33,754 -0-
------------ ----------- ----------- -----------
Total assets........................................... 30,856,781 33,443,289 60,942,127 73,241,244
------------ ----------- ----------- -----------
LIABILITIES
Investment advisory fee payable........................ 15,083 16,723 24,306 28,138
Payable for investment securities purchased............ -0- 131,670 992,169 -0-
Dividends payable...................................... -0- -0- -0- 287,038
Due to custodian....................................... -0- -0- -0- 77,513
Accrued expenses....................................... 11,028 24,840 66,114 29,011
------------ ----------- ----------- -----------
Total liabilities...................................... 26,111 173,233 1,082,589 421,700
------------ ----------- ----------- -----------
NET ASSETS................................................ $ 30,830,670 $33,270,056 $59,859,538 $72,819,544
============ =========== =========== ===========
COMPOSITION OF NET ASSETS
Capital stock, at par.................................. $ 2,729 $ 2,169 $ 3,730 $ 72,820
Additional paid-in capital............................. 29,887,625 28,721,467 53,097,360 72,746,287
Undistributed net investment income.................... 873,676 363,203 321,986 1,046
Accumulated net realized gain (loss) on investments
and foreign currency transactions.................... 72,382 1,136,665 422,581 (609)
Net unrealized appreciation (depreciation) of investments
and foreign currency denominated assets and liabilities (5,742) 3,046,552 6,013,881 -0-
------------ ----------- ----------- -----------
$ 30,830,670 $33,270,056 $59,859,538 $72,819,544
============ =========== =========== ===========
Shares of capital stock outstanding.................... 2,728,984 2,168,878 3,729,983 72,819,910
============ =========== =========== ===========
Net asset value per share.............................. $ 11.30 $ 15.34 $ 16.05 $ 1.00
======== ======= ======= =======
- -------------------------------------------------------------------------------
See Notes to Financial Statements.
B-49
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1997 (UNAUDITED)
- -------------------------------------------------------------------------------
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 $11,600,673,
$22,728,796, $14,475,225 and $143,946,871,
respectively)........................................ $ 12,537,243 $24,131,131 $16,249,530 $181,644,175
Cash................................................... 147 1,073,375 102,752 336,320
Receivable for investment securities sold.............. 726,000 50,951 -0- 440,049
Interest receivable.................................... 233,083 169,824 6,971 56,651
Deferred organization expenses......................... 6,134 7,918 5,679 4,410
Unrealized appreciation of forward exchange
currency contracts................................... -0- 1,494 -0- -0-
Dividends receivable................................... -0- -0- 43,902 99,076
------------ ----------- ----------- -----------
Total assets........................................... 13,502,607 25,434,693 16,408,834 182,580,681
------------ ----------- ----------- -----------
LIABILITIES
Payable for investment securities purchased............ 599,750 -0- -0- -0-
Investment advisory fee payable........................ 4,140 12,127 6,959 109,019
Accrued expenses....................................... 10,692 12,354 16,564 79,580
------------ ----------- ----------- -----------
Total liabilities...................................... 614,582 24,481 23,523 188,599
------------ ----------- ----------- -----------
NET ASSETS................................................ $ 12,888,025 $25,410,212 $16,385,311 $182,392,082
============ =========== =========== ============
COMPOSITION OF NET ASSETS
Capital stock, at par.................................. $ 898 $ 2,030 $ 1,245 $ 9,580
Additional paid-in capital............................. 11,415,052 23,081,455 14,499,346 145,644,051
Undistributed net investment income.................... 371,703 880,389 240,995 139,412
Accumulated net realized gain (loss) on investments
and foreign currency transactions.................... 163,802 42,490 (130,580) (1,098,265)
Net unrealized appreciation of investments and
foreign currency denominated assets and liabilities.. 936,570 1,403,848 1,774,305 37,697,304
------------ ----------- ----------- -----------
$ 12,888,025 $25,410,212 $16,385,311 $182,392,082
============ =========== =========== ============
Shares of capital stock outstanding.................... 898,406 2,029,675 1,245,409 9,580,112
============ =========== =========== ===========
Net asset value per share.............................. $ 14.35 $ 12.52 $ 13.16 $ 19.04
======== ======= ======= =======
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
B-50
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1997 (UNAUDITED)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
WORLDWIDE CONSERVATIVE GROWTH
PRIVATIZATION INVESTORS INVESTORS
PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------ -----------
<S> <C> <C> <C>
ASSETS
Investments in securities, at value (cost $29,397,225,
$23,687,418 and $11,141,122, respectively)........... $ 32,533,084 $ 25,275,551 $12,792,217
Cash, at value (cost $499,684, $64,760 and $53,624,
respectively)........................................ 496,956 64,760 53,624
Receivable for investment securities sold.............. 467,263 23,130 122,713
Dividends receivable................................... 183,023 13,125 13,708
Deferred organization expenses......................... 4,454 4,646 4,646
Interest receivable.................................... 327 160,953 27,405
------------ ------------ -----------
Total assets........................................... 33,685,107 25,542,165 13,014,313
------------ ------------ -----------
LIABILITIES
Payable for investment securities purchased............ 84,807 3,781 82,509
Investment advisory fee payable........................ 12,732 10,788 2,854
Accrued expenses....................................... 20,335 19,462 4,206
------------ ------------ -----------
Total liabilities...................................... 117,874 34,031 89,569
------------ ------------ -----------
NET ASSETS................................................ $ 33,567,233 $ 25,508,134 $12,924,744
============ ============ ===========
COMPOSITION OF NET ASSETS
Capital stock, at par.................................. $ 2,299 $ 2,055 $ 955
Additional paid-in capital............................. 28,828,272 23,568,756 11,134,098
Undistributed net investment income.................... 353,492 458,865 100,679
Accumulated net realized gain (loss) on investments
and foreign currency transactions.................... 1,251,624 (109,806) 37,774
Net unrealized appreciation of investments and
foreign currency denominated assets and liabilities.. 3,131,546 1,588,264 1,651,238
------------ ------------ -----------
$ 33,567,233 $ 25,508,134 $12,924,744
============ ============ ===========
Shares of capital stock outstanding.................... 2,299,194 2,055,144 954,809
============ ============ ===========
Net asset value per share.............................. $ 14.60 $ 12.41 $ 13.54
======== ======= =======
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
B-51
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
REAL ESTATE
TECHNOLOGY QUASAR INVESTMENT
PORTFOLIO PORTFOLIO PORTFOLIO
--------- --------- ---------
<S> <C> <C> <C>
ASSETS
Investments in securities, at value (cost $41,720,894,
$30,622,817 and $4,591,419, respectively)............ $ 48,521,404 $ 32,879,905 $ 4,793,400
Cash................................................... 182,025 235,568 656
Receivable for investment securities sold.............. 207,181 990,458 -0-
Deferred organization expenses......................... 15,344 21,397 18,106
Dividends receivable................................... 3,308 11,767 21,127
Receivable from investment adviser..................... -0- -0- 2,557
Interest receivable.................................... -0- -0- 31
------------ ------------ -----------
Total assets........................................... 48,929,262 34,139,095 4,835,877
------------ ------------ -----------
LIABILITIES
Payable for investment securities purchased............ 249,834 739,888 73,335
Investment advisory fee payable........................ 29,625 15,429 -0-
Accrued expenses....................................... 25,681 24,089 29,410
------------ ------------ -----------
Total liabilities...................................... 305,140 779,406 102,745
------------ ------------ -----------
NET ASSETS................................................ $ 48,624,122 $ 33,359,689 $ 4,733,132
============ ============ ===========
COMPOSITION OF NET ASSETS
Capital stock, at par.................................. $ 4,205 $ 2,882 $ 444
Additional paid-in capital............................. 44,305,109 30,962,830 4,475,511
Undistributed net investment income.................... 109,512 16,130 58,489
Accumulated net realized gain (loss) on
investment transactions.............................. (2,595,214) 120,759 (3,293)
Net unrealized appreciation of investments............. 6,800,510 2,257,088 201,981
------------ ------------ -----------
$ 48,624,122 $ 33,359,689 $ 4,733,132
============ ============ ===========
Shares of capital stock outstanding.................... 4,204,793 2,882,120 444,274
============ ============ ===========
Net asset value per share.............................. $ 11.56 $ 11.57 $ 10.65
======== ======= =======
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
B-52
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
STATEMENTS OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 1997 (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 $12,354, $-0-,
$6,969 and $-0-, respectively)....................... $ 941,385 $ -0- $ 1,350,730 $ -0-
Interest............................................... 264,610 525,267 197,066 233,014
------------ ----------- ----------- -----------
Total investment income................................ 1,205,995 525,267 1,547,796 233,014
------------ ----------- ----------- -----------
EXPENSES
Investment advisory fee................................ 912,330 57,991 477,820 20,015
Audit and legal........................................ 33,918 3,479 35,641 1,442
Custodian.............................................. 32,623 32,151 33,934 32,467
Printing............................................... 11,369 1,074 12,629 345
Amortization of organization expenses.................. 2,726 -0- -0- -0-
Directors fees......................................... 733 732 733 732
Transfer agency........................................ 551 508 453 508
Miscellaneous.......................................... 3,532 973 2,134 742
------------ ----------- ----------- -----------
Total expenses......................................... 997,782 96,908 563,344 56,251
Less: expense reimbursement............................ (131,068) (12,151) -0- (21,679)
------------ ----------- ----------- -----------
Net expenses........................................... 866,714 84,757 563,344 34,572
------------ ----------- ----------- -----------
Net investment income.................................. 339,281 440,510 984,452 198,442
------------ ----------- ----------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain (loss) on investment transactions.... (404,323) 167,519 7,633,232 (23,419)
Net realized gain (loss) on foreign currency transactions -0- (565,881) -0- 98,289
Net change in unrealized appreciation (depreciation)
of investments....................................... 33,482,134 (307,610) 12,541,036 (125,803)
Net change in unrealized appreciation (depreciation) of
foreign currency denominated assets and liabilities.. -0- 1,396 40 (12,974)
------------ ----------- ----------- -----------
Net gain (loss) on investments......................... 33,077,811 (704,576) 20,174,308 (63,907)
------------ ----------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS..... $ 33,417,092 $ (264,066) $21,158,760 $ 134,535
============ =========== =========== ===========
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
B-53
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
STATEMENTS OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 1997 (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............................................... $ 1,032,386 $ 335,061 $ 90,503 $ 1,821,326
Dividends (net of foreign tax withheld of $-0-, $831,
$81,152 and $-0-, respectively)...................... 1,181 162,465 526,388 -0-
------------ ----------- ----------- -----------
Total investment income................................ 1,033,567 497,526 616,891 1,821,326
------------ ----------- ----------- -----------
EXPENSES
Investment advisory fee................................ 90,051 90,030 245,688 163,230
Custodian.............................................. 18,296 32,634 105,484 23,610
Audit and legal........................................ 6,161 5,705 10,080 15,815
Amortization of organization expenses.................. 2,404 2,416 2,476 2,476
Printing............................................... 2,027 1,826 3,361 5,050
Directors fees......................................... 733 732 732 717
Transfer agency........................................ 508 507 507 516
Miscellaneous.......................................... 1,211 1,080 1,687 1,073
------------ ----------- ----------- -----------
Total expenses......................................... 121,391 134,930 370,015 212,487
Less: expense reimbursement............................ -0- (390) (136,611) -0-
------------ ----------- ----------- -----------
Net expenses........................................... 121,391 134,540 233,404 212,487
------------ ----------- ----------- -----------
Net investment income.................................. 912,176 362,986 383,487 1,608,839
------------ ----------- ----------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain (loss) on investment transactions.... 54,649 1,136,341 472,486 (266)
Net realized gain on foreign currency transactions..... 17,596 -0- 9,984 -0-
Net change in unrealized appreciation (depreciation)
of investments....................................... (96,187) 1,292,049 4,554,397 -0-
Net change in unrealized appreciation (depreciation) of
foreign currency denominated assets and liabilities.. (12,381) -0- 35,249 -0-
------------ ----------- ----------- -----------
Net gain (loss) on investments......................... (36,323) 2,428,390 5,072,116 (266)
------------ ----------- ----------- -----------
NET INCREASE IN NET ASSETS FROM OPERATIONS................ $ 875,853 $ 2,791,376 $ 5,455,603 $ 1,608,573
============ =========== =========== ===========
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
B-54
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
STATEMENTS OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 1997 (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............................................... $ 427,889 $ 1,006,324 $ 39,409 $ 209,738
Dividends (net of foreign tax withheld of $-0-, $-0-,
$1,533 and $3,466, respectively)..................... 1,336 -0- 274,478 600,865
------------ ----------- ----------- -----------
Total investment income................................ 429,225 1,006,324 313,887 810,603
------------ ----------- ----------- -----------
EXPENSES
Investment advisory fee................................ 39,890 68,399 57,149 581,216
Custodian.............................................. 26,764 30,832 22,262 34,623
Audit and legal........................................ 2,179 4,344 3,340 34,082
Amortization of organization expenses.................. 1,658 2,140 1,517 992
Directors fees......................................... 732 731 733 733
Printing............................................... 567 1,287 2,750 13,468
Transfer agency........................................ 508 507 495 540
Miscellaneous.......................................... 753 917 906 2,182
------------ ----------- ----------- -----------
Total expenses......................................... 73,051 109,157 89,152 667,836
Less: expense reimbursement............................ (22,523) (9,190) (16,764) -0-
------------ ----------- ----------- -----------
Net expenses........................................... 50,528 99,967 72,388 667,836
------------ ----------- ----------- -----------
Net investment income.................................. 378,697 906,357 241,499 142,767
------------ ----------- ----------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain (loss) on investment transactions.... 164,768 46,815 (83,853) (1,018,414)
Net realized loss on foreign currency transactions..... -0- (2,035) (319) -0-
Net change in unrealized appreciation of investments... 545,383 265,760 675,082 17,480,178
Net change in unrealized appreciation (depreciation) of
foreign currency denominated assets and liabilities.. -0- (18,834) -0- 24
------------ ----------- ----------- -----------
Net gain on investments................................ 710,151 291,706 590,910 16,461,788
------------ ----------- ----------- -----------
NET INCREASE IN NET ASSETS FROM OPERATIONS................ $ 1,088,848 $ 1,198,063 $ 832,409 $16,604,555
============ =========== =========== ===========
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
B-55
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
STATEMENTS OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
WORLDWIDE CONSERVATIVE GROWTH
PRIVATIZATION INVESTORS INVESTORS
PORTFOLIO PORTFOLIO PORTFOLIO
--------- --------- ---------
<S> <C> <C> <C>
INVESTMENT INCOME
Dividends (net of foreign tax withheld of $49,742, $3,271
and $3,583, respectively)............................ $ 445,647 $ 44,310 $ 48,309
Interest............................................... 67,953 524,220 108,732
------------ ------------ -----------
Total investment income................................ 513,600 568,530 157,041
------------ ------------ -----------
EXPENSES
Investment advisory fee................................ 126,389 86,182 42,301
Custodian.............................................. 50,187 43,371 39,387
Audit and legal........................................ 5,269 4,943 2,194
Printing............................................... 3,315 1,540 716
Amortization of organization expenses.................. 992 992 992
Directors fees......................................... 733 733 729
Transfer agency........................................ 485 507 502
Miscellaneous.......................................... 1,292 986 930
------------ ------------ -----------
Total expenses......................................... 188,662 139,254 87,751
Less: expense reimbursement............................ (68,593) (30,090) (34,170)
------------ ------------ -----------
Net expenses........................................... 120,069 109,164 53,581
------------ ------------ -----------
Net investment income.................................. 393,531 459,366 103,460
------------ ------------ -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain (loss) on investment transactions.... 1,277,253 (55,576) 65,427
Net realized loss on foreign currency transactions..... (19,737) (1,557) (2,324)
Net change in unrealized appreciation of investments... 1,807,220 865,147 910,038
Net change in unrealized appreciation (depreciation) of
foreign currency denominated assets and liabilities.. (9,073) 22 47
------------ ------------ -----------
Net gain on investments................................ 3,055,663 808,036 973,188
------------ ------------ -----------
NET INCREASE IN NET ASSETS FROM OPERATIONS................ $ 3,449,194 $ 1,267,402 $ 1,076,648
============ ============ ===========
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
B-56
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
STATEMENTS OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
REAL ESTATE
TECHNOLOGY QUASAR INVESTMENT
PORTFOLIO PORTFOLIO PORTFOLIO(A)
------------ ------------ -----------
<S> <C> <C> <C>
INVESTMENT INCOME
Interest............................................... $ 268,680 $ 91,088 $ 3,450
Dividends (net of foreign tax withheld of $1,588, $-0-
and $-0-, respectively).............................. 17,967 31,120 65,818
------------ ------------ -----------
Total investment income................................ 286,647 122,208 69,268
------------ ------------ -----------
EXPENSES
Investment advisory fee................................ 187,825 100,143 10,212
Custodian.............................................. 28,728 45,090 28,853
Audit and legal........................................ 7,603 4,385 304
Printing............................................... 4,968 1,192 99
Amortization of organization expenses.................. 2,131 2,586 1,894
Directors fees......................................... 733 733 515
Transfer agency........................................ 677 420 303
Miscellaneous.......................................... 1,043 525 252
------------ ------------ -----------
Total expenses......................................... 233,708 155,074 42,432
Less: expense reimbursement............................ (55,274) (59,938) (31,653)
------------ ------------ -----------
Net expenses........................................... 178,434 95,136 10,779
------------ ------------ -----------
Net investment income.................................. 108,213 27,072 58,489
------------ ------------ -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net realized gain (loss) on investment transactions.... (2,240,054) 95,429 (3,293)
Net change in unrealized appreciation of investments... 4,740,716 2,108,947 201,981
------------ ------------ -----------
Net gain on investments................................ 2,500,662 2,204,376 198,688
------------ ------------ -----------
NET INCREASE IN NET ASSETS FROM OPERATIONS................ $ 2,608,875 $ 2,231,448 $ 257,177
============ ============ ===========
</TABLE>
- -------------------------------------------------------------------------------
(a) Commencement of operations, January 9, 1997.
See Notes to Financial Statements.
B-57
<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, 1997 DECEMBER 31, JUNE 30, 1997 DECEMBER 31,
(UNAUDITED) 1996 (UNAUDITED) 1996
------------- ------------ ------------- ------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income....................... $ 339,281 $ 323,694 $ 440,510 $ 863,097
Net realized gain (loss) on investment
transactions.............................. (404,323) (442,478) 167,519 269,212
Net realized gain (loss) on foreign currency
transactions.............................. -0- -0- (565,881) 7,112
Net change in unrealized appreciation (depreciation)
of investments and foreign currency denominated
assets and liabilities.................... 33,482,134 14,126,172 (306,214) (125,897)
------------ ------------ ------------ -----------
Net increase (decrease) in net assets
from operations........................... 33,417,092 14,007,388 (264,066) 1,013,524
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income....................... (324,685) (316,135) (945,935) (1,035,617)
Net realized gain on investments............ -0- (17,322,907) (219,947) (309,324)
CAPITAL STOCK TRANSACTIONS
Net increase................................ 140,435,449 70,787,668 2,579,195 6,895,530
------------ ------------ ------------ -----------
Total increase.............................. 173,527,856 67,156,014 1,149,247 6,564,113
NET ASSETS
Beginning of period......................... 96,434,308 29,278,294 18,117,090 11,552,977
------------ ------------ ------------ -----------
End of period (including undistributed net
investment income of $338,023, $323,427,
$415,142 and $920,567, respectively)...... $269,962,164 $ 96,434,308 $ 19,266,337 $18,117,090
============ ============ ============ ===========
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
B-58
<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, 1997 DECEMBER 31, JUNE 30, 1997 DECEMBER 31,
(UNAUDITED) 1996 (UNAUDITED) 1996
------------- ------------ ------------- ------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income....................... $ 984,452 $ 1,277,693 $ 198,442 $ 308,027
Net realized gain (loss) on investment
transactions.............................. 7,633,232 9,399,724 (23,419) 12,232
Net realized gain on foreign currency
transactions.............................. -0- 536 98,289 36,126
Net change in unrealized appreciation (depreciation)
of investments and foreign currency denominated
assets and liabilities.................... 12,541,076 8,263,950 (138,777) 107,268
------------ ------------ ------------ -----------
Net increase in net assets from operations.. 21,158,760 18,941,903 134,535 463,653
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income....................... (1,272,246) (1,128,565) (412,899) (369,515)
Net realized gain on investments............ (9,150,387) (11,815,383) -0- -0-
CAPITAL STOCK TRANSACTIONS
Net increase................................ 47,471,081 78,738,622 266,577 3,866,088
------------ ------------ ------------ -----------
Total increase (decrease)................... 58,207,208 84,736,577 (11,787) 3,960,226
NET ASSETS
Beginning of period......................... 126,729,405 41,992,828 7,112,304 3,152,078
------------ ------------ ------------ -----------
End of period (including undistributed net
investment income of $981,454, $1,269,248,
$132,444 and $346,901, respectively)...... $184,936,613 $126,729,405 $ 7,100,517 $ 7,112,304
============ ============ ============ ===========
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
B-59
<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, 1997 DECEMBER 31, JUNE 30, 1997 DECEMBER 31,
(UNAUDITED) 1996 (UNAUDITED) 1996
----------- ------------ ------------- ------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income....................... $ 912,176 $ 1,425,623 $ 362,986 $ 480,735
Net realized gain on investment
transactions.............................. 54,649 48,507 1,136,341 1,019,837
Net realized gain (loss) on foreign currency
transactions.............................. 17,596 (53,678) -0- -0-
Net change in unrealized appreciation (depreciation)
of investments and foreign currency denominated
assets and liabilities.................... (108,568) (477,962) 1,292,049 1,338,504
------------ ------------ ------------ -----------
Net increase in net assets from operations.. 875,853 942,490 2,791,376 2,839,076
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income....................... (1,409,036) (621,506) (480,826) (88,093)
Net realized gain on investments............ (54,796) (289,591) (1,019,433) (44,705)
CAPITAL STOCK TRANSACTIONS
Net increase................................ 2,268,745 12,171,992 6,103,589 14,926,631
------------ ------------ ------------ -----------
Total increase.............................. 1,680,766 12,203,385 7,394,706 17,632,909
NET ASSETS
Beginning of period......................... 29,149,904 16,946,519 25,875,350 8,242,441
------------ ------------ ------------ -----------
End of period (including undistributed net
investment income of $873,676, $1,370,536,
$363,203 and $481,043, respectively)...... $ 30,830,670 $ 29,149,904 $ 33,270,056 $25,875,350
============ ============ ============ ===========
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
B-60
<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, 1997 DECEMBER 31, JUNE 30, 1997 DECEMBER 31,
(UNAUDITED) 1996 (UNAUDITED) 1996
------------ ------------ ----------- -----------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income....................... $ 383,487 $ 395,473 $ 1,608,839 $ 2,336,884
Net realized gain (loss) on investment
transactions.............................. 472,486 841,241 (266) (343)
Net realized gain on foreign currency
transactions.............................. 9,984 65,399 -0- -0-
Net change in unrealized appreciation of investments
and foreign currency denominated assets and
liabilities............................... 4,589,646 684,246 -0- -0-
------------ ------------ ------------ -----------
Net increase in net assets from operations.. 5,455,603 1,986,359 1,608,573 2,336,541
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income....................... (523,610) (155,834) (1,608,839) (2,336,884)
Net realized gain on investments............ (836,370) (244,881) -0- -0-
CAPITAL STOCK TRANSACTIONS
Net increase................................ 11,439,819 26,196,817 8,050,519 36,677,326
------------ ------------ ------------ -----------
Total increase.............................. 15,535,442 27,782,461 8,050,253 36,676,983
NET ASSETS
Beginning of period......................... 44,324,096 16,541,635 64,769,291 28,092,308
------------ ------------ ------------ -----------
End of period (including undistributed net
investment income of $321,986, $462,109,
$1,046 and $1,046, respectively).......... $ 59,859,538 $ 44,324,096 $ 72,819,544 $64,769,291
============ ============ ============ ===========
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
B-61
<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, 1997 DECEMBER 31, JUNE 30, 1997 DECEMBER 31,
(UNAUDITED) 1996 (UNAUDITED) 1996
----------- ------------ ------------- ------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income....................... $ 378,697 $ 481,784 $ 906,357 $ 1,243,424
Net realized gain on investment
transactions.............................. 164,768 745,244 46,815 821
Net realized loss on foreign currency
transactions.............................. -0- -0- (2,035) (166,651)
Net change in unrealized appreciation of investments
and foreign currency denominated assets and
liabilities............................... 545,383 126,646 246,926 841,208
------------ ------------ ------------ -----------
Net increase in net assets from operations.. 1,088,848 1,353,674 1,198,063 1,918,802
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income....................... (489,947) (191,319) (1,103,754) (49,608)
Net realized gain on investments............ (742,126) (13,292) -0- (3,969)
CAPITAL STOCK TRANSACTIONS
Net increase................................ 4,183,844 3,920,248 8,620,253 7,552,498
------------ ------------ ------------ -----------
Total increase.............................. 4,040,619 5,069,311 8,714,562 9,417,723
NET ASSETS
Beginning of period......................... 8,847,406 3,778,095 16,695,650 7,277,927
------------ ------------ ------------ -----------
End of period (including undistributed net
investment income of $371,703, $482,953,
$880,389 and $1,077,786, respectively).... $ 12,888,025 $ 8,847,406 $ 25,410,212 $16,695,650
============ ============ ============ ===========
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
B-62
<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, 1997 DECEMBER 31, JUNE 30, 1997 DECEMBER 31,
(UNAUDITED) 1996 (UNAUDITED) 1996
------------- ------------ ----------- ------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income....................... $ 241,499 $ 291,723 $ 142,767 $ 312,217
Net realized gain (loss) on investment
transactions.............................. (83,853) (29,624) (1,018,414) 6,453,535
Net realized gain (loss) on foreign currency
transactions.............................. (319) (1,398) -0- 944
Net change in unrealized appreciation of investments
and foreign currency denominated assets and
liabilities............................... 675,082 796,030 17,480,202 16,515,677
------------ ------------ ------------ -----------
Net increase in net assets from operations.. 832,409 1,056,731 16,604,555 23,282,373
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income....................... (289,532) (81,842) (265,892) (230,200)
Net realized gain on investments............ -0- (155,981) (6,564,799) (1,507,259)
CAPITAL STOCK TRANSACTIONS
Net increase................................ 985,641 7,787,344 33,930,327 71,923,266
------------ ------------ ------------ -----------
Total increase.............................. 1,528,518 8,606,252 43,704,191 93,468,180
NET ASSETS
Beginning of period......................... 14,856,793 6,250,541 138,687,891 45,219,711
------------ ------------ ------------ -----------
End of period (including undistributed net
investment income of $240,995, $289,028,
$139,412 and $262,537, respectively)...... $ 16,385,311 $ 14,856,793 $182,392,082 $138,687,891
============ ============ ============ ============
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
B-63
<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, 1997 DECEMBER 31, JUNE 30, 1997 DECEMBER 31,
(UNAUDITED) 1996 (UNAUDITED) 1996
----------- ------------ ------------- ------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income....................... $ 393,531 $ 260,056 $ 459,366 $ 611,534
Net realized gain (loss) on investment
transactions.............................. 1,277,253 526,159 (55,576) (51,567)
Net realized loss on foreign currency
transactions.............................. (19,737) (18,329) (1,557) (4,003)
Net change in unrealized appreciation of investments
and foreign currency denominated assets and
liabilities............................... 1,798,147 1,117,579 865,169 466,246
------------ ------------ ------------ -----------
Net increase in net assets from operations.. 3,449,194 1,885,465 1,267,402 1,022,210
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income....................... (348,486) (90,574) (608,411) (127,029)
Net realized gain on investments............ (421,270) -0- -0- (56,297)
CAPITAL STOCK TRANSACTIONS
Net increase................................ 12,080,982 11,065,148 3,119,950 13,470,589
------------ ------------ ------------ -----------
Total increase.............................. 14,760,420 12,860,039 3,778,941 14,309,473
NET ASSETS
Beginning of period......................... 18,806,813 5,946,774 21,729,193 7,419,720
------------ ------------ ------------ -----------
End of period (including undistributed net
investment income of $353,492, $308,447,
$458,865 and $607,910, respectively)...... $ 33,567,233 $ 18,806,813 $ 25,508,134 $21,729,193
============ ============ ============ ===========
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
B-64
<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 SIX MONTHS ENDED PERIOD ENDED
JUNE 30, 1997 DECEMBER 31, JUNE 30, 1997 DECEMBER 31,
(UNAUDITED) 1996 (UNAUDITED) 1996 (A)
------------ ------------ ------------- -----------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income....................... $ 103,460 $ 177,916 $ 108,213 $ 142,949
Net realized gain (loss) on investment
transactions.............................. 65,427 175,910 (2,240,054) (355,160)
Net realized loss on foreign currency
transactions.............................. (2,324) (570) -0- -0-
Net change in unrealized appreciation of investments and
foreign currency denominated assets and liabilities 910,085 507,668 4,740,716 2,059,794
------------ ------------ ----------- ----------
Net increase in net assets from operations.. 1,076,648 860,924 2,608,875 1,847,583
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income....................... (180,481) (55,626) (141,660) -0-
Net realized gain on investments............ (200,739) (16,764) -0- -0-
CAPITAL STOCK TRANSACTIONS
Net increase................................ 1,519,980 4,942,686 18,073,476 26,235,848
------------ ------------ ------------ -----------
Total increase.............................. 2,215,408 5,731,220 20,540,691 28,083,431
NET ASSETS
Beginning of period......................... 10,709,336 4,978,116 28,083,431 -0-
------------ ------------ ------------ -----------
End of period (including undistributed net
investment income of $100,679, $177,700,
$109,512 and $142,959, respectively)...... $ 12,924,744 $ 10,709,336 $ 48,624,122 $28,083,431
============ ============ ============ ===========
</TABLE>
- --------------------------------------------------------------------------------
(a) Commencement of operations, January 11, 1996.
See Notes to Financial Statements.
B-65
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
QUASAR PORTFOLIO REAL ESTATE INVESTMENT PORTFOLIO
--------------------------------- --------------------------------
SIX MONTHS ENDED PERIOD ENDED PERIOD ENDED
JUNE 30, 1997 DECEMBER 31, JUNE 30, 1997 (B)
(UNAUDITED) 1996 (A) (UNAUDITED)
------------- ----------- -----------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income....................... $ 27,072 $ 11,162 $ 58,489
Net realized gain (loss) on investment
transactions.............................. 95,429 25,330 (3,293)
Net change in unrealized appreciation of investments 2,108,947 148,141 201,981
------------ ------------ -----------
Net increase in net assets from operations.. 2,231,448 184,633 257,177
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income....................... (22,104) -0- -0-
CAPITAL STOCK TRANSACTIONS
Net increase................................ 22,308,528 8,657,184 4,475,955
------------ ------------ -----------
Total increase.............................. 24,517,872 8,841,817 4,733,132
NET ASSETS
Beginning of period......................... 8,841,817 -0- -0-
------------ ------------ -----------
End of period (including undistributed net
investment income of $16,130, $11,162
and $58,489, respectively)................ $ 33,359,689 $ 8,841,817 $ 4,733,132
============ ============ ===========
</TABLE>
- -------------------------------------------------------------------------------
(a) Commencement of operations, August 5, 1996.
(b) Commencement of operations, January 9, 1997.
See Notes to Financial Statements.
B-66
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1997 (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 eighteen 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, Technology Portfolio, Quasar Portfolio and Real Estate Investment
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 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.
B-67
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONT'D)
- -------------------------------------------------------------------------------
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 Portfolio invests
principally in a diversified portfolio of securities of companies which use
technology extensively in the development of new or improved products or
processes.
QUASAR PORTFOLIO-seeks growth of capital by pursuing aggressive investment
policies. The Portfolio invests principally in a diversified portfolio of
equity securities of any company and industry and in any type of security
which is believed to offer possibilities for capital appreciation.
REAL ESTATE INVESTMENT PORTFOLIO-seeks total return on its assets from
long-term growth of capital and from income principally through investing in a
portfolio of equity securities of issuers that are primarily engaged in or
related to the real estate industry.
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. Restricted
securities, illiquid securities and 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.
B-68
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONT'D)
- --------------------------------------------------------------------------------
2. OPTION WRITING
When a Portfolio writes an option, an amount equal to the premium received by
the Portfolio is recorded as a liability and is subsequently adjusted to the
current market value of the option written. Premiums received from writing
options which expire unexercised are recorded by the Portfolio on the
expiration date as realized gains. The difference between the premium and the
amount paid on effecting a closing purchase transaction, including brokerage
commissions, is also recorded as a realized gain, or if the premium is less
than the amount paid for the closing purchase transaction, as a realized loss.
If a call option is exercised, the premium is added to the proceeds from the
sale of the underlying security or currency in determining whether the
Portfolio has realized a gain or loss. If a put option is exercised, the
premium reduces the cost basis of the security or currency purchased by the
Portfolio. In writing an option, the Portfolio bears the market risk of
unfavorable changes in the price of the security or currency underlying the
written option. Exercise of an option written by the Portfolio could result in
the Portfolio selling or buying a security or currency at a price different
from the current market value.
3. CURRENCY TRANSLATION
Assets and liabilities denominated in foreign currencies and commitments under
forward exchange currency contracts are translated into U.S. dollars at the
mean of the quoted bid and asked prices of such currencies against the U.S.
dollar. Purchases and sales of portfolio securities are translated at the
rates of exchange prevailing when such securities were acquired or sold.
Income and expenses are translated at rates of exchange prevailing when
accrued.
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 $(565,881), $98,289, $17,596, $9,984,
$(2,035), $(319), $(19,737), $(1,557) and $(2,324) 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, 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
net change in 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; 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, Technology Portfolio $21,500 through January 2001,
Quasar Portfolio $26,098 through August 2001 and Real Estate Investment
Portfolio $20,000 through January 2002.
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 or excise taxes are
required.
B-69
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONT'D)
- --------------------------------------------------------------------------------
6. INVESTMENT INCOME AND SECURITY TRANSACTIONS
Interest income is accrued daily. Dividend income is recorded on the
ex-dividend date. Security transactions are accounted for on the date
securities are purchased or sold. Security gains and losses are determined on
the identified cost basis. The Fund accretes discounts as adjustments to
interest income.
7. DIVIDENDS AND DISTRIBUTIONS
Each Portfolio declares and distributes dividends and distributions from net
investment income and net realized gains, respectively, if any, at least
annually, except for dividends on the Money Market Portfolio, which are
declared daily and paid monthly. Income dividends and capital gain
distributions are determined in accordance with income tax regulations.
For federal income tax purposes, the Portfolios distributions of income and
capital gains are subject to recharacterization, which may include a tax
return of capital, at the end of the year to reflect the final investment
results for that year.
- --------------------------------------------------------------------------------
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%; Technology Portfolio, 1%; Quasar
Portfolio, 1%; and Real Estate Investment Portfolio, .90%. 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.
During the period ended June 30, 1997 the Adviser voluntarily agreed to waive
its fee and to reimburse the additional operating expenses of each Portfolio
so that expenses did not exceed .95% of average net assets. Expense
waivers/reimbursements, if any, are accrued daily and paid monthly. For the
six months ended June 30, 1997 such waivers/reimbursements amounted to
$131,068, $12,151, $21,679, $390, $136,611, $22,523, $9,190, $16,764, $68,593,
$30,090, $34,170, $55,274, $59,938 and $31,653 for the Premier Growth
Portfolio, the Global Bond Portfolio, the Short-Term Multi-Market Portfolio,
the Total Return Portfolio, the International Portfolio, the Global Dollar
Government Portfolio, the North American Government Income Portfolio, the
Utility Income Portfolio, the Worldwide Privatization Portfolio, the
Conservative Investors Portfolio, the Growth Investors Portfolio, the
Technology Portfolio, the Quasar Portfolio and the Real Estate Investment
Portfolio respectively.
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 Fund. Such compensation amounted to $500 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 and the Growth Investors Portfolio, the Technology
Portfolio, the Quasar Portfolio and the Real Estate Investment Portfolio
respectively, for the six months ended June 30, 1997.
Brokerage commissions paid for the six months ended June 30, 1997 on
securities transactions amounted to $148,715, $190,825, $25,013, $145,055,
$8,367, $130,287, $51,769, $10,797, $13,228, $18,448, $67,676, and $8,470 on
the Premier Growth Portfolio, the Growth and Income Portfolio, the Total
Return Portfolio, the International Portfolio, the Utility Income Portfolio,
the Growth Portfolio, the Worldwide Privatization Portfolio, the Conservative
Investors Portfolio, the Growth Investors Portfolio, the Technology Portfolio,
the Quasar Portfolio and the Real Estate Investment Portfolio, respectively,
none of which was paid to affiliated brokers.
B-70
<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, 1997 were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
----------------------------------- -----------------------------------
STOCKS AND U.S. GOVERNMENT STOCKS AND U.S. GOVERNMENT
PORTFOLIO DEBT OBLIGATIONS AND AGENCIES DEBT OBLIGATIONS AND AGENCIES
- --------- ---------------- ------------------ ---------------- ----------------
<S> <C> <C> <C> <C>
Premier Growth.............................. $ 163,665,970 $ -0- $ 33,184,624 $ -0-
Global Bond................................. 13,199,113 2,470,485 12,143,815 1,235,820
Growth and Income........................... 108,551,566 -0- 69,973,294 -0-
Short-Term Multi-Market..................... 4,558,585 1,506,445 4,433,145 988,984
U.S. Government/High Grade Securities....... 7,379,783 7,778,910 11,520,736 5,916,683
Total Return................................ 12,399,595 2,474,961 9,872,467 -0-
International............................... 35,229,402 -0- 28,583,402 -0-
Global Dollar Government.................... 16,443,932 -0- 12,800,248 -0-
North American Government Income............ 5,463,226 -0- 3,975,789 -0-
Utility Income.............................. 2,527,060 -0- 2,094,385 -0-
Growth...................................... 68,388,322 -0- 45,954,093 -0-
Worldwide Privatization..................... 17,476,748 -0- 5,965,555 -0-
Conservative Investors...................... 6,144,454 14,621,999 6,292,786 12,749,102
Growth Investors............................ 5,027,783 2,542,950 5,583,561 2,130,309
Technology ................................. 23,759,572 -0- 7,046,172 -0-
Quasar...................................... 32,077,630 -0- 12,807,323 -0-
Real Estate Investment (a).................. 4,484,979 -0- 101,267 -0-
</TABLE>
(a) Commencement of operations January 9, 1997.
At June 30, 1997, 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.............................. $ 223,840,838 $ 51,963,621 $ (1,037,995) $ 50,925,626
Global Bond................................. 19,054,856 181,946 (412,817) (230,871)
Growth and Income........................... 161,927,899 27,250,872 (2,148,510) 25,102,362
Short-Term Multi-Market..................... 7,048,578 8,985 (133,269) (124,284)
U.S. Government/High Grade Securities....... 30,437,587 239,153 (252,391) (13,238)
Total Return................................ 30,189,625 3,394,527 (371,290) 3,023,237
International............................... 53,895,947 6,974,276 (1,028,212) 5,946,064
Global Dollar Government.................... 11,600,673 956,476 (19,906) 936,570
North American Government Income............ 22,728,796 1,440,542 (38,207) 1,402,335
Utility Income.............................. 14,475,225 2,100,539 (326,234) 1,774,305
Growth...................................... 143,962,167 40,054,579 (2,372,571) 37,682,008
Worldwide Privatization..................... 29,412,603 4,275,366 (1,154,885) 3,120,481
Conservative Investors...................... 23,695,219 1,706,552 (126,220) 1,580,332
Growth Investors............................ 11,147,878 1,741,975 (97,637) 1,644,338
Technology ................................. 41,797,032 8,424,302 (1,699,930) 6,724,372
Quasar...................................... 30,737,604 2,914,566 (772,265) 2,142,301
Real Estate Investment...................... 4,592,635 227,974 (27,209) 200,765
</TABLE>
B-71
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.,
NOTES TO FINANCIAL STATEMENTS (CONT'D)
- --------------------------------------------------------------------------------
At December 31, 1996, for federal income tax purposes, the Premier Growth,
Money Market, North American Government Income, Utility Income, Conservative
Investors and Technology Portfolios had net capital loss carryforwards of
$714,471, $343, $2,290, $46,396, $33,656 and $355,160 which expire in 2004,
respec-tively. Short-Term Multi-Market had net capital loss carryforward of
$1,097,934 (of which $5,518 expires in 2001, $150,822 expires in 2002, and
$941,594 expires in 2003).
The Global Bond, Short-Term Multi-Market, International and North American
Government Income Portfolios enter into forward exchange currency contracts in
order to hedge their exposure to changes in foreign currency exchange rates on
their foreign portfolio holdings. A forward contract is a commitment to
purchase or sell a foreign currency at a future date at a negotiated forward
rate. The Portfolios may enter into contracts to deliver or receive foreign
currency it will receive from or require for its normal investment activities.
It may also use contracts in a manner intended to protect foreign
currency-denominated securities from declines in value due to unfavorable
exchange rate movements. The gain or loss arising from the difference between
the original contract and the closing of such contract is included in realized
gains or losses from foreign currency transactions. Fluctuations in the value
of forward exchange currency contracts are recorded for financial reporting
purposes as unrealized gains or losses by the Portfolio. The Fund's custodian
will place and maintain liquid assets in a separate account of the Fund having
a value equal to the aggregate amount of the Fund's commitments under forward
exchange currency contracts entered into with respect to position hedges.
Risks may arise from the potential inability of a counterparty to meet the
terms of a contract and from unanticipated movements in the value of a foreign
currency relative to the U.S. dollar. At June 30, 1997, the outstanding
forward exchange currency contracts were as follows:
GLOBAL BOND PORTFOLIO:
- ----------------------
<TABLE>
<CAPTION>
CONTRACT VALUE ON U.S.$
AMOUNT ORIGINATION CURRENT UNREALIZED
FOREIGN CURRENCY SALE CONTRACTS (000) DATE VALUE APPRECIATION
- ------------------------------- ----------- --------------- -------------- ------------
<S> <C> <C> <C> <C>
Deutsche Marks, expiring 7/11/97........................ 1,500 $ 877,706 $ 860,757 $ 16,949
=========
</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>
Australian Dollars, expiring 7/10/97.................... 1,274 $ 978,366 $ 963,053 $ (15,313)
Danish Krone, expiring 7/16/97.......................... 1,121 170,758 169,041 (1,717)
Deutsche Marks, expiring 7/07/97-7/28/97................ 688 431,161 395,070 (36,091)
Indonesian Rupiah, expiring 1/16/98..................... 400,000 158,541 158,646 105
FOREIGN CURRENCY SALE CONTRACTS
- -------------------------------
Australian Dollars, expiring 7/10/97-7/21/97............ 1,257 976,207 949,865 26,342
Danish Krone, expiring 7/16/97.......................... 1,121 171,165 169,041 2,124
Deutsche Marks, expiring 7/15/97-7/28/97................ 1,888 1,115,007 1,084,637 30,370
Finnish Markka, expiring 7/17/97........................ 478 91,937 92,225 (288)
French Francs, expiring 7/02/97-7/17/97................. 1,769 305,684 301,156 4,528
Italian Lira, expiring 7/17/97-7/31/97.................. 1,003,533 590,659 589,975 684
New Zealand Dollars, expiring 7/09/97................... 1,278 876,846 867,990 8,856
Spanish Pesetas, expiring 7/12/97....................... 3,000 20,935 20,360 575
Swedish Krona, expiring 7/17/97-7/28/97................. 3,438 445,555 444,863 692
Swiss Francs, expiring 7/07/97.......................... 400 299,446 274,212 25,234
---------
$ 46,101
=========
</TABLE>
B-72
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONT'D)
- --------------------------------------------------------------------------------
INTERNATIONAL 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>
French Francs, expiring 9/05/97......................... 22,000 $ 3,793,758 $ 3,760,004 $ 33,754
=========
</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 7/02/97-7/14/97.............. 1,600 $ 1,160,416 $ 1,158,922 $ 1,494
=========
</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, 1997 DECEMBER 31, JUNE 30, 1997 DECEMBER 31,
(UNAUDITED) 1996 (UNAUDITED) 1996
---------------- ------------ ---------------- ------------
<S> <C> <C> <C> <C>
Shares sold.......................................... 9,005,357 3,544,816 $ 153,027,152 $ 57,846,653
Shares issued in reinvestment of dividends
and distributions................................. 17,344 1,261,734 324,686 17,639,042
Shares redeemed...................................... (775,738) (307,428) (12,916,389) (4,698,027)
------------ ------------ ------------- -------------
Net increase......................................... 8,246,963 4,499,122 $ 140,435,449 $ 70,787,668
============ ============ ============= =============
</TABLE>
<TABLE>
<CAPTION>
GLOBAL BOND PORTFOLIO
-----------------------------------------------------------------
SHARES AMOUNT
-------------------------------- -------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1997 DECEMBER 31, JUNE 30, 1997 DECEMBER 31,
(UNAUDITED) 1996 (UNAUDITED) 1996
---------------- ------------ ---------------- -------------
<S> <C> <C> <C> <C>
Shares sold.......................................... 242,751 542,902 $ 2,768,045 $ 6,400,878
Shares issued in reinvestment of dividends
and distributions................................. 107,060 122,714 1,165,882 1,344,941
Shares redeemed...................................... (118,915) (73,483) (1,354,732) (850,289)
------------ ------------ ------------- -------------
Net increase......................................... 230,896 592,133 $ 2,579,195 $ 6,895,530
============ ============ ============= =============
</TABLE>
B-73
<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, 1997 DECEMBER 31, JUNE 30, 1997 DECEMBER 31,
(UNAUDTIED) 1996 (UNAUDITED) 1996
----------------- ------------ ----------------- -----------
<S> <C> <C> <C> <C>
Shares sold.......................................... 2,325,876 4,431,728 $ 40,364,346 $ 69,859,324
Shares issued in reinvestment of dividends
and distributions................................. 585,541 897,017 10,422,634 12,943,948
Shares redeemed...................................... (191,993) (260,259) (3,315,899) (4,064,650)
------------ ------------- ------------- -------------
Net increase......................................... 2,719,424 5,068,486 $ 47,471,081 $ 78,738,622
============ ============= ============= =============
</TABLE>
<TABLE>
<CAPTION>
SHORT-TERM MULTI-MARKET PORTFOLIO
-------------------------------------------------------------------
SHARES AMOUNT
------------------------------- --------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1997 DECEMBER 31, JUNE 30, 1997 DECEMBER 31,
(UNAUDITED) 1996 (UNAUDITED) 1996
----------------- ------------ ---------------- ------------
<S> <C> <C> <C> <C>
Shares sold.......................................... 188,090 664,791 $ 2,033,113 $ 7,076,379
Shares issued in reinvestment of dividends
and distributions................................. 40,165 36,156 412,899 369,515
Shares redeemed...................................... (201,248) (336,158) (2,179,435) (3,579,806)
------------ ------------- ------------- -------------
Net increase......................................... 27,007 364,789 $ 266,577 $ 3,866,088
============ ============= ============= =============
</TABLE>
<TABLE>
<CAPTION>
U.S. GOVERNMENT/HIGH GRADE SECURITIES PORTFOLIO
-------------------------------------------------------------------
SHARES AMOUNT
------------------------------- ---------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1997 DECEMBER 31, JUNE 30, 1997 DECEMBER 31,
(UNAUDITED) 1996 (UNAUDITED) 1996
---------------- ------------ ---------------- ------------
<S> <C> <C> <C> <C>
Shares sold.......................................... 363,288 1,420,578 $ 4,213,785 $ 16,046,280
Shares issued in reinvestment of dividends
and distributions................................. 129,086 84,596 1,463,832 911,097
Shares redeemed...................................... (294,816) (426,894) (3,408,872) (4,785,385)
------------ ------------- ------------- -------------
Net increase......................................... 197,558 1,078,280 $ 2,268,745 $ 12,171,992
============ ============= ============= =============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
TOTAL RETURN PORTFOLIO
-------------------------------------------------------------------
SHARES AMOUNT
------------------------------- -------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1997 DECEMBER 31, JUNE 30, 1997 DECEMBER 31,
(UNAUDITED) 1996 (UNAUDITED) 1996
---------------- ------------ ---------------- ------------
<S> <C> <C> <C> <C>
Shares sold.......................................... 386,308 1,193,848 $ 5,871,914 $ 15,859,123
Shares issued in reinvestment of dividends
and distributions................................. 97,356 10,076 1,500,260 132,799
Shares redeemed...................................... (83,685) (78,997) (1,268,585) (1,065,291)
------------ ------------- ------------- -------------
Net increase......................................... 399,979 1,124,927 $ 6,103,589 $ 14,926,631
============ ============= ============= =============
</TABLE>
B-74
<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, 1997 DECEMBER 31, JUNE 30, 1997 DECEMBER 31,
(UNAUDITED) 1996 (UNAUDITED) 1996
---------------- ------------ ---------------- -------------
<S> <C> <C> <C> <C>
Shares sold.......................................... 2,241,205 2,116,357 $ 33,882,800 $ 30,825,850
Shares issued in reinvestment of dividends
and distributions................................. 85,533 27,149 1,359,980 400,715
Shares redeemed...................................... (1,573,531) (342,716) (23,802,961) (5,029,748)
------------ ------------- ------------- -------------
Net increase......................................... 753,207 1,800,790 $ 11,439,819 $ 26,196,817
============ ============= ============= =============
</TABLE>
<TABLE>
<CAPTION>
MONEY MARKET PORTFOLIO
------------------------------------------------------------------
SHARES AMOUNT
-------------------------------- --------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1997 DECEMBER 31, JUNE 30, 1997 DECEMBER 31,
(UNAUDITED) 1996 (UNAUDITED) 1996
---------------- ------------ ---------------- -------------
<S> <C> <C> <C> <C>
Shares sold.......................................... 106,969,959 178,619,585 $ 106,969,959 $ 178,619,585
Shares issued in reinvestment of dividends........... 1,321,801 2,336,582 1,321,801 2,336,582
Shares redeemed...................................... (100,241,241) (144,278,841) (100,241,241) (144,278,841)
------------ ------------- ------------- -------------
Net increase......................................... 8,050,519 36,677,326 $ 8,050,519 $ 36,677,326
============ ============= ============= =============
</TABLE>
<TABLE>
<CAPTION>
GLOBAL DOLLAR GOVERNMENT PORTFOLIO
------------------------------------------------------------------
SHARES AMOUNT
-------------------------------- --------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1997 DECEMBER 31, JUNE 30, 1997 DECEMBER 31,
(UNAUDITED) 1996 (UNAUDITED) 1996
---------------- ------------ ---------------- -------------
<S> <C> <C> <C> <C>
Shares sold.......................................... 281,855 373,824 $ 4,219,282 $ 4,866,573
Shares issued in reinvestment of dividends
and distributions................................. 85,501 17,037 1,232,074 204,610
Shares redeemed...................................... (86,686) (89,291) (1,267,512) (1,150,935)
------------ ------------- ------------- -------------
Net increase......................................... 280,670 301,570 $ 4,183,844 $ 3,920,248
============ ============= ============= =============
</TABLE>
<TABLE>
<CAPTION>
NORTH AMERICAN GOVERNMENT INCOME PORTFOLIO
------------------------------------------------------------------
SHARES AMOUNT
-------------------------------- --------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1997 DECEMBER 31, JUNE 30, 1997 DECEMBER 31,
(UNAUDITED) 1996 (UNAUDITED) 1996
---------------- ------------ ---------------- -------------
<S> <C> <C> <C> <C>
Shares sold.......................................... 762,306 933,567 $ 9,675,910 $ 10,739,062
Shares issued in reinvestment of dividends
and distributions................................. 88,019 4,805 1,103,754 53,576
Shares redeemed...................................... (169,681) (283,721) (2,159,411) (3,240,140)
------------ ------------- ------------- -------------
Net increase......................................... 680,644 654,651 $ 8,620,253 $ 7,552,498
============ ============= ============= =============
</TABLE>
B-75
<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, 1997 DECEMBER 31, JUNE 30, 1997 DECEMBER 31,
(UNAUDITED) 1996 (UNAUDITED) 1996
---------------- ------------ ---------------- -------------
<S> <C> <C> <C> <C>
Shares sold.......................................... 170,203 776,031 $ 2,171,053 $ 9,308,720
Shares issued in reinvestment of dividends
and distributions................................. 22,135 20,206 289,531 237,823
Shares redeemed...................................... (117,290) (146,278) (1,474,943) (1,759,199)
------------ ------------- ------------- -------------
Net increase......................................... 75,048 649,959 $ 985,641 $ 7,787,344
============ ============= ============= =============
</TABLE>
<TABLE>
<CAPTION>
GROWTH PORTFOLIO
------------------------------------------------------------------
SHARES AMOUNT
-------------------------------- --------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1997 DECEMBER 31, JUNE 30, 1997 DECEMBER 31,
(UNAUDITED) 1996 (UNAUDITED) 1996
---------------- ------------ ---------------- -------------
<S> <C> <C> <C> <C>
Shares sold.......................................... 1,793,343 4,744,489 $ 32,695,081 $ 74,657,741
Shares issued in reinvestment of dividends
and distributions................................. 359,700 111,233 6,830,691 1,737,459
Shares redeemed...................................... (312,930) (292,788) (5,595,445) (4,471,934)
------------ ------------- ------------- -------------
Net increase......................................... 1,840,113 4,562,934 $ 33,930,327 $ 71,923,266
============ ============= ============= =============
</TABLE>
<TABLE>
<CAPTION>
WORLDWIDE PRIVATIZATION PORTFOLIO
------------------------------------------------------------------
SHARES AMOUNT
-------------------------------- --------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1997 DECEMBER 31, JUNE 30, 1997 DECEMBER 31,
(UNAUDITED) 1996 (UNAUDITED) 1996
---------------- ------------ ---------------- -------------
<S> <C> <C> <C> <C>
Shares sold.......................................... 852,160 977,499 $ 11,845,775 $ 12,011,656
Shares issued in reinvestment of dividends
and distributions................................. 53,014 7,424 769,756 90,574
Shares redeemed...................................... (38,859) (84,263) (534,549) (1,037,082)
------------ ------------- ------------- -------------
Net increase......................................... 866,315 900,660 $ 12,080,982 $ 11,065,148
============ ============= ============= =============
</TABLE>
<TABLE>
<CAPTION>
CONSERVATIVE INVESTORS PORTFOLIO
------------------------------------------------------------------
SHARES AMOUNT
-------------------------------- --------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1997 DECEMBER 31, JUNE 30, 1997 DECEMBER 31,
(UNAUDITED) 1996 (UNAUDITED) 1996
---------------- ------------ ---------------- -------------
<S> <C> <C> <C> <C>
Shares sold.......................................... 339,803 1,387,334 $ 4,143,496 $ 15,999,200
Shares issued in reinvestment of dividends
and distributions................................. 48,986 16,196 608,412 183,326
Shares redeemed...................................... (133,762) (234,084) (1,631,958) (2,711,937)
------------ ------------- ------------- -------------
Net increase......................................... 255,027 1,169,446 $ 3,119,950 $ 13,470,589
============ ============= ============= =============
</TABLE>
B-76
<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, 1997 DECEMBER 31, JUNE 30, 1997 DECEMBER 31,
(UNAUDITED) 1996 (UNAUDITED) 1996
---------------- ------------ ---------------- -------------
<S> <C> <C> <C> <C>
Shares sold.......................................... 179,968 646,812 $ 2,343,517 $ 7,777,769
Shares issued in reinvestment of dividends
and distributions................................. 28,259 6,038 381,220 72,389
Shares redeemed...................................... (93,806) (231,754) (1,204,757) (2,907,472)
------------ ------------- ------------- -------------
Net increase......................................... 114,421 421,096 $ 1,519,980 $ 4,942,686
============ ============= ============= =============
</TABLE>
<TABLE>
<CAPTION>
TECHNOLOGY PORTFOLIO
------------------------------------------------------------------
SHARES AMOUNT
-------------------------------- --------------------------------
SIX MONTHS ENDED PERIOD ENDED SIX MONTHS ENDED PERIOD ENDED
JUNE 30, 1997 DECEMBER 31, JUNE 30, 1997 DECEMBER 31,
(UNAUDITED) 1996 (A) (UNAUDITED) 1996 (A)
---------------- ------------ ---------------- -------------
<S> <C> <C> <C> <C>
Shares sold.......................................... 1,902,576 2,807,022 $ 20,757,181 $ 29,063,181
Shares issued in reinvestment of dividends
and distributions................................. 12,275 -0- 141,661 -0-
Shares redeemed...................................... (253,537) (263,543) (2,825,366) (2,827,333)
------------ ------------- ------------- -------------
Net increase......................................... 1,661,314 2,543,479 $ 18,073,476 $ 26,235,848
============ ============= ============= =============
</TABLE>
<TABLE>
<CAPTION>
QUASAR PORTFOLIO
------------------------------------------------------------------
SHARES AMOUNT
-------------------------------- --------------------------------
SIX MONTHS ENDED PERIOD ENDED SIX MONTHS ENDED PERIOD ENDED
JUNE 30, 1997 DECEMBER 31, JUNE 30, 1997 DECEMBER 31,
(UNAUDITED) 1996 (B) (UNAUDITED) 1996 (B)
---------------- ------------ ---------------- -------------
<S> <C> <C> <C> <C>
Shares sold.......................................... 2,101,596 832,347 $ 22,849,303 $ 8,673,741
Shares issued in reinvestment of dividends
and distributions................................. 1,959 -0- 22,104 -0-
Shares redeemed...................................... (52,184) (1,598) (562,879) (16,557)
------------ ------------- ------------- -------------
Net increase......................................... 2,051,371 830,749 $ 22,308,528 $ 8,657,184
============ ============= ============= =============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
REAL ESTATE INVESTMENT PORTFOLIO
-----------------------------------------------------
SHARES AMOUNT
------------------ --------------------
PERIOD ENDED PERIOD ENDED
JUNE 30, 1997 (C) JUNE 30, 1997 (C)
(UNAUDITED) (UNAUDITED)
------------------ --------------------
<S> <C> <C>
Shares sold.......................................... 469,387 $ 4,728,635
Shares redeemed...................................... (25,113) (252,680)
-------------- --------------
Net increase......................................... 444,274 $ 4,475,955
============== ==============
</TABLE>
(a) Commencement of operations, January 11, 1996.
(b) Commencement of operations, August 5, 1996.
(c) Commencement of operations, January 9, 1997.
B-77
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONT'D)
- --------------------------------------------------------------------------------
NOTE E - ILLIQUID SECURITIES
Worldwide Privatization Portfolio:
- ----------------------------------
<TABLE>
<CAPTION>
Security Date Acquired U.S. $ Cost
- -------- ------------- -----------
<S> <C> <C>
Explosivios S.A. Cl. C.................................... 1/14/97-6/26/97 $ 84,222
Grupo Financiero Banciecer S.A. de C.V.................... 3/26/97 8,400
Grupo Profesional Planeacion Proyectos S.A................ 4/23/97 21,404
Nearmedic S.A............................................. 5/19/97-6/16/97 181,768
RNGS Holding Ltd., 8.0% conv. Pfd......................... 8/6/96-2/20/97 132,775
</TABLE>
Securities above have been valued at fair value, as of June 30, 1997, in
accordance with procedures described in Note A. The aggregate amount of
securities valued at fair values on June 30, 1997 was $453,141 representing
1.3% of net assets.
B-78
<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, 1997 ------------------------------------ TO
(UNAUDITED) 1996 1995 1994 1993 DECEMBER 31, 1992
-------------- ------ ------ ------ ------ -----------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period..................... $ 15.70 $ 17.80 $ 12.37 $ 12.79 $ 11.38 $ 10.00
------- ------- ------- ------- -------- -------
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b)............................. .03 (c) .08 (c) .09 (c) .03 (c) -0- (c) .06 (c)
Net realized and unrealized gain (loss) on investments 3.05 3.29 5.44 (.41) 1.43 1.32
------- ------- ------- ------- -------- -------
Net increase (decrease) in net asset value from operations 3.08 3.37 5.53 (.38) 1.43 1.38
------- ------- ------- ------- -------- -------
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income.................. (.02) (.10) (.03) (.01) (.01) -0-
Distributions from net realized gains................. -0- (5.37) (.07) (.03) (.01) -0-
------- ------- ------- ------- -------- -------
Total dividends and distributions..................... (0.02) (5.47) (.10) (.04) (.02) -0-
------- ------- ------- ------- -------- -------
Net asset value, end of period........................ $ 18.76 $ 15.70 $ 17.80 $ 12.37 $ 12.79 $ 11.38
======= ======= ======= ======= ======== =======
TOTAL RETURN
Total investment return based on net asset value (d).. 19.64% 22.70% 44.85% (2.96)% 12.63% 13.80%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted)............. $269,962 $96,434 $29,278 $37,669 $13,659 $3,760
Ratio to average net assets of:
Expenses, net of waivers and reimbursements......... .95% (e) .95% .95% .95% 1.18% .95% (e)
Expenses, before waivers and reimbursements......... 1.09% (e) 1.23% 1.19% 1.40% 2.05% 4.20% (e)
Net investment income............................... .37% (e) .52% .55% .42% .22% .96% (e)
Portfolio turnover rate............................... 19% 32% 97% 38% 42% 14%
Average commission rate paid (f)...................... $.0528 $.0609 -0- -0- -0- -0-
</TABLE>
<TABLE>
<CAPTION>
GLOBAL BOND PORTFOLIO
--------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED DECEMBER 31,
JUNE 30, 1997 ------------------------------------------
(UNAUDITED) 1996 1995 1994 1993 1992
---------------- ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period..................... $ 11.74 $ 12.15 $ 9.82 $ 11.33 $ 11.24 $ 11.10
------- ------- ------- ------- ------- -------
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b)............................. .28 (c) .67 (c) .69 (c) .57 (c) .77 (c) .64
Net realized and unrealized gain (loss) on investments
and foreign currency transactions................... (.46) .01 1.73 (1.16) .43 (.13)
------- ------- ------- ------- ------- -------
Net increase (decrease) in net asset value from operations (.18) .68 2.42 (.59) 1.20 .51
------- ------- ------- ------- ------- -------
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income.................. (.57) (.84) (.09) (.62) (.85) (.28)
Distributions from net realized gains................. (.13) (.25) -0- (.30) (.26) (.09)
------- ------- ------- ------- ------- -------
Total dividends and distributions..................... (.70) (1.09) (.09) (.92) (1.11) (.37)
------- ------- ------- ------- ------- -------
Net asset value, end of period........................ $ 10.86 $ 11.74 $ 12.15 $ 9.82 $ 11.33 $ 11.24
======= ======= ======= ======= ======= =======
TOTAL RETURN
Total investment return based on net asset value (d).. (1.51)% 6.21% 24.73% (5.16)% 11.15% 4.87%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted)............. $19,266 $18,117 $11,553 $7,298 $6,748 $5,876
Ratio to average net assets of:
Expenses, net of waivers and reimbursements......... .95% (e) .94% .95% .95% 1.50% 1.50%
Expenses, before waivers and reimbursements......... 1.09% (e) 1.15% 1.77% 2.05% 1.50% 1.97%
Net investment income............................... 4.94% (e) 5.76% 6.22% 6.01% 4.85% 5.85%
Portfolio turnover rate............................... 77% 191% 262% 102% 125% 78%
</TABLE>
- --------------------------------------------------------------------------------
See footnote summary on page B-87.
B-79
<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 PORFOLIO
------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED DECEMBER 31,
JUNE 30, 1997 ----------------------------------------------
(UNAUDITED) 1996 1995 1994 1993 1992
--------------- -------- -------- -------- ------ -----
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ....................... $ 16.40 $ 15.79 $ 11.85 $ 12.18 $ 10.99 $ 10.35
------- ------- ------- ------- ------- -------
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b) ................................. .13 .24 (c) .27 (c) .10 (c) .01 (c) .10 (c)
Net realized and unrealized gain (loss) on investments .... 2.24 3.18 3.94 (.16) 1.27 .71
------- ------- ------- ------- ------- -------
Net increase (decrease) in net asset value from operations 2.37 3.42 4.21 (.06) 1.28 .81
------- ------- ------- ------- ------- -------
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income ...................... (.13) (.25) (.13) (.10) (.06) (.17)
Distributions from net realized gains ..................... (.94) (2.56) (.14) (.17) (.03) -0-
------- ------- ------- ------- ------- -------
Total dividends and distributions ......................... (1.07) (2.81) (.27) (.27) (.09) (.17)
------- ------- ------- ------- ------- -------
Net asset value, end of period ............................ $ 17.70 $ 16.40 $ 15.79 $ 11.85 $ 12.18 $ 10.99
======= ======= ======= ======= ======= =======
TOTAL RETURN
Total investment return based on net asset value (d) ..... 14.38% 24.09% 35.76% (.35)% 11.69% 7.92%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) ................ $184,937 $126,729 $41,993 $41,702 $22,756 $7,803
Ratio to average net assets of:
Expenses, net of waivers and reimbursements ............. .74% (e) .82% .79% .90% 1.18% .99%
Expenses, before waivers and reimbursements ............. .74% (e) .82% .79% .91% 1.28% 2.09%
Net investment income ................................... 1.29% (e) 1.58% 1.95% 1.71% 1.76% 2.42%
Portfolio turnover rate .................................. 47% 87% 150% 95% 69% 49%
Average commission rate paid (f) ......................... $.0577$ $.0602 -0- -0- -0- -0-
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
SHORT-TERM MULTI-MARKET PORTFOLIO
------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED DECEMBER 31,
JUNE 30, 1997 ----------------------------------------------
(UNAUDITED) 1996 1995 1994 1993 1992
--------------- -------- -------- -------- ------ ------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period..................... $ 10.73 $ 10.58 $ 9.91 $ 11.07 $ 10.77 $ 10.68
------- ------- ------- ------- ------- -------
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b)............................. .29 (c) .64 (c) .82 (c) .47 (c) .28 (c) .63 (c)
Net realized and unrealized gain (loss) on investments
and foreign currency transactions................... (.09) .33 (.15) (1.16) .43 (.54)
------- ------- ------- ------- ------- -------
Net increase (decrease) in net asset value from operations .20 .97 .67 (.69) .71 .09
------- ------- ------- ------- ------- -------
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income.................. (.64) (.82) -0- (.46) (.41) -0-
Return of capital..................................... -0- -0- -0- (.01) -0- -0-
------- ------- ------- ------- ------- -------
Total dividends and distributions..................... (.64) (.82) -0- (.47) (.41) -0-
------- ------- ------- ------- ------- -------
Net asset value, end of period........................ $ 10.29 $ 10.73 $ 10.58 $ 9.91 $ 11.07 $ 10.77
======= ======= ======= ======= ======= =======
TOTAL RETURN
Total investment return based on net asset value (d).. 1.82% 9.57% 6.76% (6.51)% 6.62% .84%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted)............. $7,101 $7,112 $3,152 $20,921 $23,560 $14,841
Ratio to average net assets of:
Expenses, net of waivers and reimbursements......... .95% (e) .95% .95% .94% 1.17% .99%
Expenses, before waivers and reimbursements......... 1.55% (e) 2.09% 1.30% .99% 1.24% 1.66%
Net investment income............................... 5.45% (e) 6.03% 8.22% 6.52% 6.39% 7.18%
Portfolio turnover rate............................... 152% 159% 379% 134% 210% 153%
</TABLE>
- -------------------------------------------------------------------------------
See footnote summary on page B-87.
B-80
<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, 1997 ------------------------------------ TO
(UNAUDITED) 1996 1995 1994 1993 DECEMBER 31, 1992
-------------- ------ ------ ------ ------ -----------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period..................... $ 11.52 $ 11.66 $ 9.94 $ 10.72 $ 9.89 $ 10.00
------- ------- ------- ------- ------ -------
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b)............................. .35 (c) .66 (c) .65 (c) .28 (c) .43 (c) .14 (c)
Net realized and unrealized gain (loss) on investments (.01) (.39) 1.25 (.71) .48 (.25)
------- ------- ------- ------- ------ -------
Net increase (decrease) in net asset value from operations .34 .27 1.90 (.43) .91 (.11)
------- ------- ------- ------- ------ -------
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income.................. (.54) (.28) (.18) (.21) (.08) -0-
Distributions from net realized gains................. (.02) (.13) -0- (.14) -0- -0-
------- ------- ------- ------- -------- -------
Total dividends and distributions..................... (.56) (.41) (.18) (.35) (.08) -0-
------- ------- ------- ------- -------- -------
Net asset value, end of period........................ $ 11.30 $ 11.52 $ 11.66 $ 9.94 $ 10.72 $ 9.89
======= ======= ======= ======= ======== =======
TOTAL RETURN
Total investment return based on net asset value (d).. 2.94% 2.55% 19.26% (4.03)% 9.20% (1.10)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted)............. $30,831 $29,150 $16,947 $5,101 $1,350 $785
Ratio to average net assets of:
Expenses, net of waivers and reimbursements.......... .81% (e) .92% .95% .95% 1.16% .95% (e)
Expenses, before waivers and reimbursements.......... .81% (e) .98% 1.58% 3.73% 5.42% 11.56% (e)
Net investment income................................ 6.08% (e) 5.87% 5.96% 5.64% 4.59% 4.82% (e)
Portfolio turnover rate............................... 56% 137% 68% 32% 177% 13%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
TOTAL RETURN PORTFOLIO
--------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED DECEMBER 31, DECEMBER 28, 1992(A)
JUNE 30, 1997 ------------------------------------ TO
(UNAUDITED) 1996 1995 1994 1993 DECEMBER 31, 1992
-------------- ------ ------ ------ ------ -----------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period..................... $ 14.63 $ 12.80 $ 10.41 $ 10.97 $ 10.01 $ 10.00
------- ------- ------- ------- ------- -------
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b)............................. .19 (c) .27 (c) .36 (c) .15 (c) .15 (c) .01
Net realized and unrealized gain (loss) on investments 1.24 1.66 2.10 (.56) .81 -0-
------- ------- ------- ------- ------- -------
Net increase (decrease) in net asset value from operations 1.43 1.93 2.46 (.41) .96 .01
------- ------- ------- ------- ------- -------
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income.................. (.23) (.07) (.07) (.09) -0- -0-
Distributions from net realized gains................. (.49) (.03) -0- (.06) -0- -0-
------- ------- ------- ------- ------- -------
Total dividends and distributions..................... (.72) (.10) (.07) (.15) -0- -0-
------- ------- ------- ------- ------- -------
Net asset value, end of period........................ $ 15.34 $ 14.63 $ 12.80 $ 10.41 $ 10.97 $ 10.01
======= ======= ======= ======= ======= =======
TOTAL RETURN
Total investment return based on net asset value (d).. 9.80% 15.17% 23.67% (3.77)% 9.59% .10%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted)............. $33,270 $25,875 $8,242 $750 $360 $95
Ratio to average net assets of:
Expenses, net of waivers and reimbursements......... .93% (e) .95% .95% .95% 1.20% 0%
Expenses, before waivers and reimbursements......... .93% (e) 1.12% 4.49% 19.49% 25.96% 0%
Net investment income............................... 2.52% (e) 2.76% 3.16% 2.29% 1.45% 2.21% (e)
Portfolio turnover rate............................... 77% 57% 30% 83% 25% 0%
Average commission rate paid (f)...................... $.0582 $.0593 -0- -0- -0- -0-
</TABLE>
- --------------------------------------------------------------------------------
See footnote summary on page B-87.
B-81
<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, 1997 --------------------------------- TO
(UNAUDITED) 1996 1995 1994 1993 DECEMBER 31, 1992
------------------------------- -------- -------- -----------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period..................... $ 14.89 $ 14.07 $ 12.88 $ 12.16 $ 10.00 $ 10.00
------- ------- ------- ------- -------- -------
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b)............................. .12(c) .19(c) .18 (c) .100(c) .03(c) -0-
Net realized and unrealized gain on investments and
and foreign currency transactions................... 1.43 .83 1.08 .72(g) 2.13 -0-
------- ------- ------- ------- -------- -------
Net increase in net asset value from operations....... 1.55 1.02 1.26 .82 2.16 -0-
------- ------- ------- ------- -------- -------
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income.................. (.15) (.08) (.03) (.02) -0- -0-
Distributions from net realized gains................. (.24) (.12) (.04) (.08) -0- -0-
------- ------- ------- ------- -------- -------
Total dividends and distributions..................... (.39) (.20) (.07) (.10) -0- -0-
------- ------- ------- ------- -------- -------
Net asset value, end of period........................ $ 16.05 $ 14.89 $ 14.07 $ 12.88 $ 12.16 $ 10.00
======= ======== ======= ======= ======== =======
TOTAL RETURN
Total investment return based on net asset value (d).. 10.41% 7.25% 9.86% 6.70% 21.60% 0%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted)............. $59,860 $44,324 $16,542 $7,276 $688 $79
Ratio to average net assets of:
Expenses, net of waivers and reimbursements......... .95%(e) .95% .95% .95% 1.20% 0%
Expenses, before waivers and reimbursements......... 1.52%(e) 1.91% 2.99% 7.26% 39.28% 0%
Net investment income............................... 1.58%(e) 1.29% 1.41% .90% .26% 2.07%(e)
Portfolio turnover rate 63% 60% 87% 95% 85% 0%
Average commission rate paid (f)...................... $.0210 $.0431 -0- -0- -0- -0-
</TABLE>
<TABLE>
<CAPTION>
MONEY MARKET PORTFOLIO
---------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED DECEMBER 31, DECEMBER 28, 1992(a)
JUNE 30, 1997 --------------------------------- TO
(UNAUDITED) 1996 1995 1994 1993 DECEMBER 31, 1992
------------------------------- -------- -------- -----------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period..................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- ------- -------- -------
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b)............................. .02 .05 .05 .03 .02 -0-
Net realized and unrealized gain on investments....... -0- -0- -0- -0- -0- -0-
------- ------- ------- ------- -------- -------
Net increase in net asset value from operations....... .02 .05 .05 .03 .02 -0-
------- ------- ------- ------- -------- -------
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income.................. (.02) (.05) (.05) (.03) (.02) -0-
Distributions from net realized gains................. -0- -0- -0- -0- -0- -0-
------- ------- ------- ------- -------- -------
Total dividends and distributions..................... (.02) (.05) (.05) (.03) (.02) -0-
------- ------- ------- ------- -------- -------
Net asset value, end of period........................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= ======== =======
TOTAL RETURN
Total investment return based on net asset value (d).. 2.47% 4.71% 4.97% 3.27% 2.25% .02%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted)............. $72,820 $64,769 $28,092 $6,899 $102 $30
Ratio to average net assets of:
Expenses, net of waivers and reimbursements......... .65%(e) .69% .95% .95% 1.16% 0%
Expenses, before waivers and reimbursements......... .65%(e) .69% 1.07% 4.46% 68.14% 0%
Net investment income............................... 4.93%(e) 4.64% 4.85% 3.98% 2.15% 3.05%(e)
Portfolio turnover rate............................... 0% 0% 0% 0% 0% 0%
</TABLE>
- ------------------
See footnote summary on page B-87.
B-82
<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 DECEMBER 31, MAY 2, 1994(a)
JUNE 30, 1997 ------------------------- TO
(UNAUDITED) 1996 1995 DECEMBER 31, 1994
--------------- -------- -------- -----------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period......................... $ 14.32 $ 11.95 $ 9.84 $ 10.00
---------- -------- --------- --------
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b)................................. .52(c) 1.10(c) .92(c) .36(c)
Net realized and unrealized gain (loss) on
investments and foreign currency transactions........... 1.05 1.78 1.32 (.52)
---------- -------- --------- --------
Net increase (decrease) in net asset value from operations 1.57 2.88 2.24 (.16)
---------- -------- --------- --------
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income...................... (.61) (.48) (.13) -0-
Distributions from net realized gains..................... (.93) (.03) -0- -0-
---------- -------- --------- --------
Total dividends and distributions......................... (1.54) (.51) (.13) -0-
---------- -------- --------- --------
Net asset value, end of period............................ $ 14.35 $ 14.32 $ 11.95 $ 9.84
========== ======== ========= ========
TOTAL RETURN
Total investment return based on net asset value (d)...... 10.91% 24.90% 22.98% (1.60)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted)................. $12,888 $8,847 $3,778 $1,146
Ratio to average net assets of:
Expenses, net of waivers and reimbursements............. .95%(e) .95% .95% .95%(e)
Expenses, before waivers and reimbursements............. 1.37%(e) 1.97% 4.82% 15.00%(e)
Net investment income................................... 7.12%(e) 8.53% 8.65% 6.02%(e)
Portfolio turnover rate................................... 127% 155% 13% 9%
</TABLE>
<TABLE>
<CAPTION>
NORTH AMERICAN GOVERNMENT INCOME PORTFOLIO
------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED DECEMBER 31, MAY 3, 1994(a)
JUNE 30, 1997 ------------------------- TO
(UNAUDITED) 1996 1995 DECEMBER 31, 1994
--------------- -------- -------- -----------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period......................... $ 12.38 $ 10.48 $ 8.79 $ 10.00
---------- -------- --------- --------
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b)................................. .54(c) 1.26(c) 1.13(c) .50(c)
Net realized and unrealized gain (loss) on
investments and foreign currency transactions........... .18 .69 .83 (1.71)
---------- -------- --------- --------
Net increase (decrease) in net asset value from operations .72 1.95 1.96 (1.21)
---------- -------- --------- --------
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income...................... (.58) (.05) (.27) -0-
Distributions from net realized gains..................... -0- -0- -0- -0-
---------- -------- --------- --------
Total dividends and distributions......................... (.58) (.05) (.27) -0-
---------- -------- --------- --------
Net asset value, end of period............................ $ 12.52 $ 12.38 $ 10.48 $ 8.79
========== ======== ========= ========
TOTAL RETURN
Total investment return based on net asset value (d)...... 5.82% 18.70% 22.71% (12.10)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted)................. $25,410 $16,696 $7,278 $3,848
Ratio to average net assets of:
Expenses, net of waivers and reimbursements............. .95%(e) .95% .95% .95%(e)
Expenses, before waivers and reimbursements............. 1.04%(e) 1.41% 2.57% 4.43%(e)
Net investment income................................... 8.61%(e) 11.04% 12.24% 8.49%(e)
Portfolio turnover rate................................... 35% 4% 35% 15%
</TABLE>
- ------------------
See footnote summary on page B-87.
B-83
<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 DECEMBER 31, MAY 10, 1994(a)
JUNE 30, 1997 ------------------------- TO
(UNAUDITED) 1996 1995 DECEMBER 31, 1994
--------------- -------- -------- -----------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period......................... $ 12.69 $ 12.01 $ 9.96 $ 10.00
---------- -------- --------- --------
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b)................................. .20(c) .31(c) .30(c) .28(c)
Net realized and unrealized gain (loss) on investments.... .51 .62 1.83 (.32)
---------- -------- --------- --------
Net increase (decrease) in net asset value from operations .71 .93 2.13 (.04)
---------- -------- --------- --------
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income...................... (.24) (.09) (.08) -0-
Distributions from net realized gains..................... -0- (.16) -0- -0-
---------- -------- --------- --------
Total dividends and distributions......................... (.24) (.25) (.08) -0-
---------- -------- --------- --------
Net asset value, end of period............................ $ 13.16 $ 12.69 $ 12.01 $ 9.96
========== ======== ========= ========
TOTAL RETURN
Total investment return based on net asset value (d)...... 5.58% 7.88% 21.45% (.40)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted)................. $16,385 $14,857 $6,251 $1,254
Ratio to average net assets of:
Expenses, net of waivers and reimbursements............. .95%(e) .95% .95% .95%(e)
Expenses, before waivers and reimbursements............. 1.17%(e) 1.51% 3.79% 15.98%(e)
Net investment income................................... 3.17%(e) 2.61% 2.73% 4.62%(e)
Portfolio turnover rate................................... 14% 75% 138% 31%
Average commission rate paid (f).......................... $.0570 $.0579 -0- -0-
</TABLE>
<TABLE>
<CAPTION>
GROWTH PORTFOLIO
------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED DECEMBER 31, SEPTEMBER 15, 1994(a)
JUNE 30, 1997 ------------------------- TO
(UNAUDITED) 1996 1995 DECEMBER 31, 1994
--------------- -------- -------- -----------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period......................... $ 17.92 $ 14.23 $ 10.53 $ 10.00
---------- -------- --------- --------
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b)................................. .02(c) .06(c) .17(c) .03(c)
Net realized and unrealized gain on investments........... 1.85 3.95 3.54 .50
---------- -------- --------- --------
Net increase in net asset value from operations........... 1.87 4.01 3.71 .53
---------- -------- --------- --------
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income...................... (.03) (.04) (.01) -0-
Distributions from net realized gains..................... (.72) (.28) -0- -0-
---------- -------- --------- --------
Total dividends and distributions......................... (.75) (.32) (.01) -0-
---------- -------- --------- --------
Net asset value, end of period............................ $ 19.04 $ 17.92 $ 14.23 $ 10.53
========== ======== ========= ========
TOTAL RETURN
Total investment return based on net asset value (d)...... 10.42% 28.49% 35.23% 5.30%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted)................. $182,392 $138,688 $45,220 $5,492
Ratio to average net assets of:
Expenses, net of waivers and reimbursements............. .86%(e) .93% .95% .95%(e)
Expenses, before waivers and reimbursements............. .86%(e) .93% 1.27% 4.19%(e)
Net investment income................................... .18%(e) .35% 1.31% 1.17%(e)
Portfolio turnover rate................................... 30% 98% 86% 25%
Average commission rate paid (f).......................... $.0534 $.0578 -0- -0-
</TABLE>
- ------------------
See footnote summary on page B-87.
B-84
<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 DECEMBER 31, SEPTEMBER 23, 1994(a)
JUNE 30, 1997 ------------------------- TO
(UNAUDITED) 1996 1995 DECEMBER 31, 1994
--------------- -------- -------- -----------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period......................... $ 13.13 $ 11.17 $ 10.10 $ 10.00
---------- -------- --------- --------
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b)................................. .21(c) .28(c) .32(c) .10(c)
Net realized and unrealized gain on investments........... 1.61 1.78 .78 -0-
---------- -------- --------- --------
Net increase in net asset value from operations........... 1.82 2.06 1.10 .10
---------- -------- --------- --------
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income...................... (.16) (.10) (.03) -0-
Distributions from net realized gains..................... (.19) -0- -0- -0-
---------- -------- --------- --------
Total dividends and distributions......................... (.35) (.10) (.03) -0-
---------- -------- --------- --------
Net asset value, end of period............................ $ 14.60 $ 13.13 $ 11.17 $ 10.10
========== ======== ========= ========
TOTAL RETURN
Total investment return based on net asset value (d)...... 13.87% 18.51% 10.87% 1.00%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted)................. $33,567 $18,807 $5,947 $1,127
Ratio to average net assets of:
Expenses, net of waivers and reimbursements............. .95%(e) .95% .95% .95%(e)
Expenses, before waivers and reimbursements............. 1.49%(e) 1.85% 4.17% 18.47%(e)
Net investment income................................... 3.11%(e) 2.26% 2.96% 4.27%(e)
Portfolio turnover rate................................... 26% 47% 23% 0%
Average commission rate paid (f).......................... $.0110 $.0148 -0- -0-
</TABLE>
<TABLE>
<CAPTION>
CONSERVATIVE INVESTORS PORTFOLIO
------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED DECEMBER 31, OCTOBER 28, 1994(a)
JUNE 30, 1997 ------------------------- TO
(UNAUDITED) 1996 1995 DECEMBER 31, 1994
--------------- -------- -------- -----------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period......................... $ 12.07 $ 11.76 $ 10.07 $ 10.00
---------- -------- --------- --------
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b)................................. .24(c) .45(c) .51(c) .06(c)
Net realized and unrealized gain (loss) on investments.... .41 (.01)(g) 1.20 .01
---------- -------- --------- --------
Net increase in net asset value from operations........... .65 .44 1.71 .07
---------- -------- --------- --------
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income...................... (.31) (.09) (.02) -0-
Distributions from net realized gains..................... -0- (.04) -0- -0-
---------- -------- --------- --------
Total dividends and distributions......................... (.31) (.13) (.02) -0-
---------- -------- --------- --------
Net asset value, end of period............................ $ 12.41 $ 12.07 $ 11.76 $ 10.07
========== ======== ========= ========
TOTAL RETURN
Total investment return based on net asset value (d)...... 5.36% 3.79% 16.99% 0.70%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted)................. $25,508 $21,729 $7,420 $701
Ratio to average net assets of:
Expenses, net of waivers and reimbursements............. .95%(e) .95% .95% .95%(e)
Expenses, before waivers and reimbursements............. 1.21%(e) 1.40% 4.25% 20.35%(e)
Net investment income................................... 4.00%(e) 3.93% 4.65% 3.55%(e)
Portfolio turnover rate................................... 102% 211% 61% 2%
Average commission rate paid (f).......................... $.0274 $.0578 -0- -0-
</TABLE>
- ------------------
See footnote summary on page B-87.
B-85
<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 DECEMBER 31, OCTOBER 28, 1994(a)
JUNE 30, 1997 ------------------------- TO
(UNAUDITED) 1996 1995 DECEMBER 31, 1994
--------------- -------- -------- -----------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period......................... $ 12.74 $ 11.87 $ 9.86 $ 10.00
---------- -------- --------- --------
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b)................................. .12(c) .24(c) .35(c) .04(c)
Net realized and unrealized gain (loss) on investments.... 1.10 .72 1.67 (.18)
---------- -------- --------- --------
Net increase (decrease) in net asset value from operations 1.22 .96 2.02 (.14)
---------- -------- --------- --------
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income...................... (.20) (.07) (.01) -0-
Distributions from net realized gains..................... (.22) (.02) -0- -0-
---------- -------- --------- --------
Total dividends and distributions......................... (.42) (.09) (.01) -0-
---------- -------- --------- --------
Net asset value, end of period............................ $ 13.54 $ 12.74 $ 11.87 $ 9.86
========== ======== ========= ========
TOTAL RETURN
Total investment return based on net asset value (d)...... 9.54% 8.18% 20.48% (1.40)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted)................. $12,925 $10,709 $4,978 $321
Ratio to average net assets of:
Expenses, net of waivers and reimbursements............. .95%(e) .95% .95% .95%(e)
Expenses, before waivers and reimbursements............. 1.56%(e) 1.85% 6.17% 41.62%(e)
Net investment income................................... 1.83%(e) 2.01% 3.21% 2.29%(e)
Portfolio turnover rate................................... 73% 160% 50% 3%
Average commission rate paid.............................. $.0298 $.0562 -0- -0-
</TABLE>
<TABLE>
<CAPTION>
TECHNOLOGY PORTFOLIO
------------------------------------
SIX MONTHS ENDED JANUARY 11, 1996(a)
JUNE 30, 1997 TO
(UNAUDITED) DECEMBER 31, 1996
----------- -----------------
<S> <C> <C>
Net asset value, beginning of period......................... $ 11.04 $ 10.00
--------- --------
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b)................................. .03(c) .11(c)
Net realized and unrealized gain on investments........... .52 .93
--------- --------
Net increase in net asset value from operations........... .55 1.04
--------- --------
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income...................... (.03) -0-
--------- --------
Net asset value, end of period............................ $ 11.56 $ 11.04
========= ========
TOTAL RETURN
Total investment return based on net asset value (d)...... 5.02% 10.40%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted)................. $48,624 $28,083
Ratio to average net assets of:
Expenses, net of waivers and reimbursements............. .95%(e) .95%(e)
Expenses, before waivers and reimbursements............. 1.24%(e) 1.62%(e)
Net investment income................................... .58%(e) 1.17%(e)
Portfolio turnover rate................................... 25% 22%
Average commission rate paid.............................. $.0552 $.0553
</TABLE>
- ------------------
See footnote summary on page B-87.
B-86
<PAGE>
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
REAL ESTATE
QUASAR PORTFOLIO INVESTMENT PORTFOLIO
----------------------------------- --------------------
SIX MONTHS ENDED AUGUST 5, 1996(a) JANUARY 9, 1997 (a)
JUNE 30, 1997 TO TO JUNE 30, 1997
(UNAUDITED) DECEMBER 31, 1996 (UNAUDITED)
----------- ----------------- -----------
<S> <C> <C> <C>
Net asset value, beginning of period......................... $ 10.64 $ 10.00 $ 10.00
---------- -------- --------
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b)................................. .01(c) .04(c) .22 (c)
Net realized and unrealized gain on investments........... .93 .60 .43
---------- -------- --------
Net increase in net asset value from operations........... .94 .64 .65
---------- -------- --------
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income...................... (.01) -0- -0-
---------- -------- --------
Net asset value, end of period............................ $ 11.57 $ 10.64 $ 10.65
========== ======== ========
TOTAL RETURN
Total investment return based on net asset value (d)...... 8.82% 6.40% 6.50%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted)................. $ 33,360 $8,842 $4,733
Ratio to average net assets of:
Expenses, net of waivers and reimbursements............. .95%(e) .95%(e) .95%(e)
Expenses, before waivers and reimbursements............. 1.55%(e) 4.44%(e) 13.67%(e)
Net investment income................................... .27%(e) .93%(e) 5.15%(e)
Portfolio turnover rate................................... 75% 40% 4%
Average commission rate paid.............................. $.0518 $.0511 $.0511
</TABLE>
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.
B-87
<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)
DONALD J. ROBINSON (1)
OFFICERS
KATHLEEN A. CORBET, Senior Vice President
ALFRED L. HARRISON, Senior Vice President
NELSON JANTZEN, Senior Vice President
WAYNE D. LYSKI, Senior Vice President
ALDEN M. STEWART, Senior Vice President
PETER ANASTOS, Vice President
EDWARD BAKER, Vice President
STEVEN BEINHACKER, Vice President
MARK H. BREEDON, Vice President
PAUL J. DENOON, Vice President
DAVID EDGERLY, Vice President
VICKI L. FULLER, Vice President
RANDALL E. HAASE, Vice President
ROBERT G. HEISTERBERG, Vice President
A. RAMA KRISHNA, Vice President
GERALD T. MALONE, Vice President
DOUGLAS J. PEEBLES, Vice President
DANIEL G. PINE, Vice President
FRANCIS P. REEVES, Vice President
OFFICERS (CONTINUED)
PAUL RISSMAN, Vice President
TYLER J. SMITH, Vice President
WAYNE C. TAPPE, Vice President
JEAN VAN DE WALLE, Vice President
EDMUND P. BERGAN, JR., Secretary
MARK D. GERSTEN, Treasurer & Chief Financial Officer
THOMAS MANLEY, Controller
CUSTODIAN
STATE STREET BANK AND TRUST COMPANY
225 Franklin Street
Boston, MA 02110
DISTRIBUTOR
ALLIANCE FUND DISTRIBUTORS, INC.
1345 Avenue of the Americas
New York, NY 10105
INDEPENDENT AUDITORS
ERNST & YOUNG LLP
787 Seventh Avenue
New York, NY 10019
LEGAL COUNSEL
SEWARD & KISSEL
One Battery Park Plaza
New York, NY 10004
TRANSFER AGENT
ALLIANCE FUND SERVICES, INC.
P.O. Box 1520
Secaucus, NJ 07096-1520
Toll-free 1-(800) 221-5672
- -----------------
(1) Member of the Audit Committee.
B-88
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 1
<NAME> SHORT-TERM MULTI MARKET PORTFOLIO
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1997
<INVESTMENTS-AT-COST> 7,048,578
<INVESTMENTS-AT-VALUE> 6,924,294
<RECEIVABLES> 109,038
<ASSETS-OTHER> 38,457
<OTHER-ITEMS-ASSETS> 46,101
<TOTAL-ASSETS> 7,117,890
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 17,373
<TOTAL-LIABILITIES> 17,373
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 8,072,344
<SHARES-COMMON-STOCK> 689,834
<SHARES-COMMON-PRIOR> 662,827
<ACCUMULATED-NII-CURRENT> 132,444
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (1,023,064)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (81,207)
<NET-ASSETS> 7,100,517
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 233,014
<OTHER-INCOME> 0
<EXPENSES-NET> 34,572
<NET-INVESTMENT-INCOME> 198,442
<REALIZED-GAINS-CURRENT> 74,870
<APPREC-INCREASE-CURRENT> (138,777)
<NET-CHANGE-FROM-OPS> 134,535
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (412,899)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 188,090
<NUMBER-OF-SHARES-REDEEMED> (201,248)
<SHARES-REINVESTED> 40,165
<NET-CHANGE-IN-ASSETS> (11,787)
<ACCUMULATED-NII-PRIOR> 346,901
<ACCUMULATED-GAINS-PRIOR> (1,097,934)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 20,015
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 56,251
<AVERAGE-NET-ASSETS> 7,338,627
<PER-SHARE-NAV-BEGIN> 10.73
<PER-SHARE-NII> .29
<PER-SHARE-GAIN-APPREC> (.09)
<PER-SHARE-DIVIDEND> (.64)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.29
<EXPENSE-RATIO> .95
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 2
<NAME> GROWTH AND INCOME PORTFOLIO
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1997
<INVESTMENTS-AT-COST> 161,757,911
<INVESTMENTS-AT-VALUE> 187,030,261
<RECEIVABLES> 335,938
<ASSETS-OTHER> 814
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 187,367,013
<PAYABLE-FOR-SECURITIES> 2,266,663
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 163,737
<TOTAL-LIABILITIES> 2,430,400
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 151,050,505
<SHARES-COMMON-STOCK> 10,446,707
<SHARES-COMMON-PRIOR> 7,727,283
<ACCUMULATED-NII-CURRENT> 981,454
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 7,632,273
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 25,272,381
<NET-ASSETS> 184,936,613
<DIVIDEND-INCOME> 1,350,730
<INTEREST-INCOME> 197,066
<OTHER-INCOME> 0
<EXPENSES-NET> 563,344
<NET-INVESTMENT-INCOME> 984,452
<REALIZED-GAINS-CURRENT> 7,633,232
<APPREC-INCREASE-CURRENT> 12,541,076
<NET-CHANGE-FROM-OPS> 21,158,760
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (1,272,246)
<DISTRIBUTIONS-OF-GAINS> (9,150,387)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 2,325,876
<NUMBER-OF-SHARES-REDEEMED> (191,993)
<SHARES-REINVESTED> 585,541
<NET-CHANGE-IN-ASSETS> 58,207,208
<ACCUMULATED-NII-PRIOR> 1,269,248
<ACCUMULATED-GAINS-PRIOR> 9,149,428
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 477,820
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 563,344
<AVERAGE-NET-ASSETS> 154,169,543
<PER-SHARE-NAV-BEGIN> 16.40
<PER-SHARE-NII> .13
<PER-SHARE-GAIN-APPREC> 2.24
<PER-SHARE-DIVIDEND> (.13)
<PER-SHARE-DISTRIBUTIONS> (.94)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 17.70
<EXPENSE-RATIO> .74
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 3
<NAME> GLOBAL BOND PORTFOLIO
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1997
<INVESTMENTS-AT-COST> 18,954,027
<INVESTMENTS-AT-VALUE> 18,823,985
<RECEIVABLES> 450,841
<ASSETS-OTHER> 806
<OTHER-ITEMS-ASSETS> 16,949
<TOTAL-ASSETS> 19,292,581
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<NUMBER-OF-SHARES-SOLD> 242,751
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<ACCUMULATED-NII-PRIOR> 920,567
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<PER-SHARE-NII> .28
<PER-SHARE-GAIN-APPREC> (.46)
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</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 4
<NAME> PREMIER GROWTH PORTFOLIO
<S> <C>
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<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1997
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<OTHER-ITEMS-ASSETS> 0
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<TOTAL-LIABILITIES> 5,324,919
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<SHARES-COMMON-STOCK> 14,390,859
<SHARES-COMMON-PRIOR> 6,143,896
<ACCUMULATED-NII-CURRENT> 338,023
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (1,351,720)
<OVERDISTRIBUTION-GAINS> 0
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<NET-ASSETS> 269,962,164
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<REALIZED-GAINS-CURRENT> (404,323)
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<NUMBER-OF-SHARES-SOLD> 9,005,357
<NUMBER-OF-SHARES-REDEEMED> (775,738)
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<ACCUMULATED-GAINS-PRIOR> (947,397)
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<GROSS-EXPENSE> 997,782
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<PER-SHARE-NAV-BEGIN> 15.70
<PER-SHARE-NII> .03
<PER-SHARE-GAIN-APPREC> 3.05
<PER-SHARE-DIVIDEND> (.02)
<PER-SHARE-DISTRIBUTIONS> 0
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<PER-SHARE-NAV-END> 18.76
<EXPENSE-RATIO> .95
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</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 5
<NAME> US GOVERNMENT/HIGH GRADE SECURITIES PORTFOLIO
<S> <C>
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<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1997
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<SHARES-COMMON-PRIOR> 2,531,426
<ACCUMULATED-NII-CURRENT> 873,676
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<ACCUMULATED-NET-GAINS> 72,382
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (5,742)
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<NET-INVESTMENT-INCOME> 912,176
<REALIZED-GAINS-CURRENT> 72,245
<APPREC-INCREASE-CURRENT> (108,568)
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<NUMBER-OF-SHARES-REDEEMED> (294,816)
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<ACCUMULATED-NII-PRIOR> 1,370,536
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<GROSS-EXPENSE> 121,391
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<PER-SHARE-NAV-BEGIN> 11.52
<PER-SHARE-NII> .35
<PER-SHARE-GAIN-APPREC> (.01)
<PER-SHARE-DIVIDEND> (.54)
<PER-SHARE-DISTRIBUTIONS> (.02)
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<PER-SHARE-NAV-END> 11.30
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</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 6
<NAME> TOTAL RETURN PORTFOLIO
<S> <C>
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<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1997
<INVESTMENTS-AT-COST> 30,166,310
<INVESTMENTS-AT-VALUE> 33,212,862
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<PAID-IN-CAPITAL-COMMON> 28,723,636
<SHARES-COMMON-STOCK> 2,168,878
<SHARES-COMMON-PRIOR> 1,768,899
<ACCUMULATED-NII-CURRENT> 363,203
<OVERDISTRIBUTION-NII> 0
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<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 3,046,552
<NET-ASSETS> 33,270,056
<DIVIDEND-INCOME> 162,465
<INTEREST-INCOME> 335,061
<OTHER-INCOME> 0
<EXPENSES-NET> 134,540
<NET-INVESTMENT-INCOME> 362,986
<REALIZED-GAINS-CURRENT> 1,136,341
<APPREC-INCREASE-CURRENT> 1,292,049
<NET-CHANGE-FROM-OPS> 2,791,376
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<NUMBER-OF-SHARES-SOLD> 386,308
<NUMBER-OF-SHARES-REDEEMED> (83,685)
<SHARES-REINVESTED> 97,356
<NET-CHANGE-IN-ASSETS> 7,394,706
<ACCUMULATED-NII-PRIOR> 481,043
<ACCUMULATED-GAINS-PRIOR> 1,019,757
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<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 90,030
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 134,930
<AVERAGE-NET-ASSETS> 29,048,297
<PER-SHARE-NAV-BEGIN> 14.63
<PER-SHARE-NII> .19
<PER-SHARE-GAIN-APPREC> 1.24
<PER-SHARE-DIVIDEND> (.23)
<PER-SHARE-DISTRIBUTIONS> (.49)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 15.34
<EXPENSE-RATIO> .93
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 7
<NAME> INTERNATIONAL PORTFOLIO
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1997
<INVESTMENTS-AT-COST> 53,862,631
<INVESTMENTS-AT-VALUE> 59,842,011
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<TOTAL-ASSETS> 60,942,127
<PAYABLE-FOR-SECURITIES> 992,169
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<TOTAL-LIABILITIES> 1,082,589
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<PAID-IN-CAPITAL-COMMON> 53,101,090
<SHARES-COMMON-STOCK> 3,729,983
<SHARES-COMMON-PRIOR> 2,976,776
<ACCUMULATED-NII-CURRENT> 321,986
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 422,581
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 6,013,881
<NET-ASSETS> 59,859,538
<DIVIDEND-INCOME> 526,388
<INTEREST-INCOME> 90,503
<OTHER-INCOME> 0
<EXPENSES-NET> 233,404
<NET-INVESTMENT-INCOME> 383,487
<REALIZED-GAINS-CURRENT> 482,470
<APPREC-INCREASE-CURRENT> 4,589,646
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<DISTRIBUTIONS-OF-GAINS> (836,370)
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<NUMBER-OF-SHARES-SOLD> 2,241,205
<NUMBER-OF-SHARES-REDEEMED> (1,573,531)
<SHARES-REINVESTED> 85,533
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<AVERAGE-NET-ASSETS> 49,051,066
<PER-SHARE-NAV-BEGIN> 14.89
<PER-SHARE-NII> .12
<PER-SHARE-GAIN-APPREC> 1.43
<PER-SHARE-DIVIDEND> (.15)
<PER-SHARE-DISTRIBUTIONS> (.24)
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<EXPENSE-RATIO> .95
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<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 8
<NAME> MONEY MARKET PORTFOLIO
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1997
<INVESTMENTS-AT-COST> 73,238,751
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<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 2,493
<TOTAL-ASSETS> 73,241,244
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<OTHER-ITEMS-LIABILITIES> 421,700
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<SHARES-COMMON-STOCK> 72,819,910
<SHARES-COMMON-PRIOR> 64,769,391
<ACCUMULATED-NII-CURRENT> 1,046
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (609)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 72,819,544
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 1,821,326
<OTHER-INCOME> 0
<EXPENSES-NET> 212,487
<NET-INVESTMENT-INCOME> 1,608,839
<REALIZED-GAINS-CURRENT> (266)
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<NUMBER-OF-SHARES-SOLD> 106,969,959
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<ACCUMULATED-GAINS-PRIOR> (343)
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<GROSS-EXPENSE> 212,487
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<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> .02
<PER-SHARE-GAIN-APPREC> .00
<PER-SHARE-DIVIDEND> (.02)
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<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 9
<NAME> NORTH AMERICAN GOVERNMENT PORTFOLIO
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1997
<INVESTMENTS-AT-COST> 22,728,796
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<ACCUMULATED-NET-GAINS> 42,490
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1,403,848
<NET-ASSETS> 25,410,212
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 1,006,324
<OTHER-INCOME> 0
<EXPENSES-NET> 99,967
<NET-INVESTMENT-INCOME> 906,357
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<NUMBER-OF-SHARES-SOLD> 762,306
<NUMBER-OF-SHARES-REDEEMED> (169,681)
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<ACCUMULATED-NII-PRIOR> 1,077,786
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<GROSS-EXPENSE> 109,157
<AVERAGE-NET-ASSETS> 21,220,163
<PER-SHARE-NAV-BEGIN> 12.38
<PER-SHARE-NII> .54
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<PER-SHARE-DIVIDEND> (.58)
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</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 10
<NAME> UTILITY INCOME PORTFOLIO
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1997
<INVESTMENTS-AT-COST> 14,475,225
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<PAID-IN-CAPITAL-COMMON> 14,500,591
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<ACCUMULATED-NET-GAINS> (130,580)
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<NET-ASSETS> 16,385,311
<DIVIDEND-INCOME> 274,478
<INTEREST-INCOME> 39,409
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<NET-INVESTMENT-INCOME> 241,499
<REALIZED-GAINS-CURRENT> (84,172)
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<NUMBER-OF-SHARES-SOLD> 170,203
<NUMBER-OF-SHARES-REDEEMED> (117,290)
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<NET-CHANGE-IN-ASSETS> 1,528,518
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<GROSS-EXPENSE> 89,152
<AVERAGE-NET-ASSETS> 15,365,909
<PER-SHARE-NAV-BEGIN> 12.69
<PER-SHARE-NII> .20
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<PER-SHARE-DIVIDEND> (.24)
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<PER-SHARE-NAV-END> 13.16
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<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 11
<NAME> GLOBAL DOLLAR GOVERNMENT PORTFOLIO
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1997
<INVESTMENTS-AT-COST> 11,600,673
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<TOTAL-ASSETS> 13,502,607
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<PAID-IN-CAPITAL-COMMON> 11,415,950
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<SHARES-COMMON-PRIOR> 617,736
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<ACCUMULATED-NET-GAINS> 163,802
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<ACCUM-APPREC-OR-DEPREC> 936,570
<NET-ASSETS> 12,888,025
<DIVIDEND-INCOME> 1,336
<INTEREST-INCOME> 427,889
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<EXPENSES-NET> 50,528
<NET-INVESTMENT-INCOME> 378,697
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<APPREC-INCREASE-CURRENT> 545,383
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<NUMBER-OF-SHARES-SOLD> 281,855
<NUMBER-OF-SHARES-REDEEMED> (86,686)
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<PER-SHARE-NII> .52
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<PER-SHARE-DIVIDEND> (.61)
<PER-SHARE-DISTRIBUTIONS> (.93)
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<PER-SHARE-NAV-END> 14.35
<EXPENSE-RATIO> .95
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<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 12
<NAME> GROWTH PORTFOLIO
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1997
<INVESTMENTS-AT-COST> 143,946,871
<INVESTMENTS-AT-VALUE> 181,644,175
<RECEIVABLES> 595,776
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<OTHER-ITEMS-ASSETS> 4,410
<TOTAL-ASSETS> 182,580,681
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<TOTAL-LIABILITIES> 188,599
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<PAID-IN-CAPITAL-COMMON> 145,653,631
<SHARES-COMMON-STOCK> 9,580,112
<SHARES-COMMON-PRIOR> 7,739,999
<ACCUMULATED-NII-CURRENT> 139,412
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (1,098,265)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 37,697,304
<NET-ASSETS> 182,392,082
<DIVIDEND-INCOME> 600,865
<INTEREST-INCOME> 209,738
<OTHER-INCOME> 0
<EXPENSES-NET> 667,836
<NET-INVESTMENT-INCOME> 142,767
<REALIZED-GAINS-CURRENT> (1,018,414)
<APPREC-INCREASE-CURRENT> 17,480,202
<NET-CHANGE-FROM-OPS> 16,604,555
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (265,892)
<DISTRIBUTIONS-OF-GAINS> (6,564,799)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,793,343
<NUMBER-OF-SHARES-REDEEMED> (312,930)
<SHARES-REINVESTED> 359,700
<NET-CHANGE-IN-ASSETS> 43,704,191
<ACCUMULATED-NII-PRIOR> 262,537
<ACCUMULATED-GAINS-PRIOR> 6,484,948
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<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 581,216
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 667,836
<AVERAGE-NET-ASSETS> 156,275,306
<PER-SHARE-NAV-BEGIN> 17.92
<PER-SHARE-NII> .02
<PER-SHARE-GAIN-APPREC> 1.85
<PER-SHARE-DIVIDEND> (.03)
<PER-SHARE-DISTRIBUTIONS> (.72)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 19.04
<EXPENSE-RATIO> .86
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<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 13
<NAME> WORLDWIDE PRIVATIZATION PORTFOLIO
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1997
<INVESTMENTS-AT-COST> 29,397,225
<INVESTMENTS-AT-VALUE> 32,533,084
<RECEIVABLES> 650,613
<ASSETS-OTHER> 496,956
<OTHER-ITEMS-ASSETS> 4,454
<TOTAL-ASSETS> 33,685,107
<PAYABLE-FOR-SECURITIES> 84,807
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 33,067
<TOTAL-LIABILITIES> 117,874
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 28,830,571
<SHARES-COMMON-STOCK> 2,299,194
<SHARES-COMMON-PRIOR> 1,432,879
<ACCUMULATED-NII-CURRENT> 353,492
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 1,251,624
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 3,131,546
<NET-ASSETS> 33,567,233
<DIVIDEND-INCOME> 445,647
<INTEREST-INCOME> 67,953
<OTHER-INCOME> 0
<EXPENSES-NET> 120,069
<NET-INVESTMENT-INCOME> 393,531
<REALIZED-GAINS-CURRENT> 1,257,516
<APPREC-INCREASE-CURRENT> 1,798,147
<NET-CHANGE-FROM-OPS> 3,449,194
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (348,486)
<DISTRIBUTIONS-OF-GAINS> (421,270)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 852,160
<NUMBER-OF-SHARES-REDEEMED> (38,859)
<SHARES-REINVESTED> 53,014
<NET-CHANGE-IN-ASSETS> 14,760,420
<ACCUMULATED-NII-PRIOR> 308,447
<ACCUMULATED-GAINS-PRIOR> 415,378
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 126,389
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 188,662
<AVERAGE-NET-ASSETS> 25,487,280
<PER-SHARE-NAV-BEGIN> 13.13
<PER-SHARE-NII> .21
<PER-SHARE-GAIN-APPREC> 1.61
<PER-SHARE-DIVIDEND> (.16)
<PER-SHARE-DISTRIBUTIONS> (.19)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 14.60
<EXPENSE-RATIO> .95
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 14
<NAME> CONSERVATIVE INVESTORS PORTFOLIO
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1997
<INVESTMENTS-AT-COST> 23,687,418
<INVESTMENTS-AT-VALUE> 25,275,551
<RECEIVABLES> 197,208
<ASSETS-OTHER> 64,760
<OTHER-ITEMS-ASSETS> 4,646
<TOTAL-ASSETS> 25,542,165
<PAYABLE-FOR-SECURITIES> 3,781
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 30,250
<TOTAL-LIABILITIES> 34,031
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 23,570,811
<SHARES-COMMON-STOCK> 2,055,144
<SHARES-COMMON-PRIOR> 1,800,117
<ACCUMULATED-NII-CURRENT> 458,865
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (109,806)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1,588,264
<NET-ASSETS> 25,508,134
<DIVIDEND-INCOME> 44,310
<INTEREST-INCOME> 524,220
<OTHER-INCOME> 0
<EXPENSES-NET> 109,164
<NET-INVESTMENT-INCOME> 459,366
<REALIZED-GAINS-CURRENT> (57,133)
<APPREC-INCREASE-CURRENT> 865,169
<NET-CHANGE-FROM-OPS> 1,267,402
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (608,411)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 339,803
<NUMBER-OF-SHARES-REDEEMED> (133,762)
<SHARES-REINVESTED> 48,986
<NET-CHANGE-IN-ASSETS> 3,778,941
<ACCUMULATED-NII-PRIOR> 607,910
<ACCUMULATED-GAINS-PRIOR> (52,673)
<OVERDISTRIB-NII-PRIOR> 0
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<GROSS-ADVISORY-FEES> 86,182
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 139,254
<AVERAGE-NET-ASSETS> 23,172,288
<PER-SHARE-NAV-BEGIN> 12.07
<PER-SHARE-NII> .24
<PER-SHARE-GAIN-APPREC> .41
<PER-SHARE-DIVIDEND> (.31)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 12.41
<EXPENSE-RATIO> .95
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 15
<NAME> GROWTH INVESTORS PORTFOLIO
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1997
<INVESTMENTS-AT-COST> 11,141,122
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<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 37,774
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<DIVIDEND-INCOME> 48,309
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<GROSS-EXPENSE> 87,751
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<PER-SHARE-NAV-BEGIN> 12.74
<PER-SHARE-NII> .12
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<PER-SHARE-DIVIDEND> (.20)
<PER-SHARE-DISTRIBUTIONS> (.22)
<RETURNS-OF-CAPITAL> 0
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<EXPENSE-RATIO> .95
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<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 16
<NAME> TECHNOLOGY PORTFOLIO
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1997
<INVESTMENTS-AT-COST> 41,720,894
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<OTHER-ITEMS-ASSETS> 15,344
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<PAYABLE-FOR-SECURITIES> 249,834
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<OTHER-ITEMS-LIABILITIES> 55,306
<TOTAL-LIABILITIES> 305,140
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 44,309,314
<SHARES-COMMON-STOCK> 4,204,793
<SHARES-COMMON-PRIOR> 2,543,479
<ACCUMULATED-NII-CURRENT> 109,512
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (2,595,214)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 6,800,510
<NET-ASSETS> 48,624,122
<DIVIDEND-INCOME> 17,967
<INTEREST-INCOME> 268,680
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<EXPENSES-NET> 178,434
<NET-INVESTMENT-INCOME> 108,213
<REALIZED-GAINS-CURRENT> (2,240,054)
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<NUMBER-OF-SHARES-SOLD> 1,902,576
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<PER-SHARE-NAV-BEGIN> 11.04
<PER-SHARE-NII> .03
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<PER-SHARE-DIVIDEND> (.03)
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<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 11.56
<EXPENSE-RATIO> .95
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 17
<NAME> QUASAR PORTFOLIO
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1997
<INVESTMENTS-AT-COST> 30,622,817
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<RECEIVABLES> 1,002,225
<ASSETS-OTHER> 235,568
<OTHER-ITEMS-ASSETS> 21,397
<TOTAL-ASSETS> 34,139,095
<PAYABLE-FOR-SECURITIES> 739,888
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<OTHER-ITEMS-LIABILITIES> 39,518
<TOTAL-LIABILITIES> 779,406
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<PAID-IN-CAPITAL-COMMON> 30,965,712
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<SHARES-COMMON-PRIOR> 830,749
<ACCUMULATED-NII-CURRENT> 16,130
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 120,759
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 2,257,088
<NET-ASSETS> 33,359,689
<DIVIDEND-INCOME> 31,120
<INTEREST-INCOME> 91,088
<OTHER-INCOME> 0
<EXPENSES-NET> 95,136
<NET-INVESTMENT-INCOME> 27,072
<REALIZED-GAINS-CURRENT> 95,429
<APPREC-INCREASE-CURRENT> 2,108,947
<NET-CHANGE-FROM-OPS> 2,231,448
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<DISTRIBUTIONS-OF-INCOME> (22,104)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 2,101,596
<NUMBER-OF-SHARES-REDEEMED> (52,184)
<SHARES-REINVESTED> 1,959
<NET-CHANGE-IN-ASSETS> 24,517,872
<ACCUMULATED-NII-PRIOR> 11,162
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<GROSS-EXPENSE> 155,074
<AVERAGE-NET-ASSETS> 20,194,593
<PER-SHARE-NAV-BEGIN> 10.64
<PER-SHARE-NII> .01
<PER-SHARE-GAIN-APPREC> .93
<PER-SHARE-DIVIDEND> (.01)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 11.57
<EXPENSE-RATIO> .95
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 18
<NAME> REAL ESTATE INVESTMENT PORTFOLIO
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1997
<INVESTMENTS-AT-COST> 4,591,419
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<ACCUMULATED-NET-GAINS> (3,293)
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<EXPENSES-NET> 10,779
<NET-INVESTMENT-INCOME> 58,489
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<NUMBER-OF-SHARES-SOLD> 469,387
<NUMBER-OF-SHARES-REDEEMED> (25,113)
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<GROSS-EXPENSE> 42,432
<AVERAGE-NET-ASSETS> 2,407,751
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> .22
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<PER-SHARE-NAV-END> 10.65
<EXPENSE-RATIO> .95
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
