ALLIANCE
--------------------------------
VARIABLE PRODUCTS
--------------------------------
SERIES FUND
--------------------------------
SEMI-ANNUAL REPORT
JUNE 30, 1999
(UNAUDITED)
The following Semi-Annual Report for the Alliance Variable Products Series Fund,
Inc. (the "Fund") includes financial information for the nineteen Portfolios of
the Fund which were active as of June 30, 1999. Not all Portfolios of the Fund
are available through each insurance product offering investments in the Fund.
<PAGE>
TEN LARGEST HOLDINGS
June 30, 1999 (unaudited) Alliance Variable Products Series Fund
================================================================================
Conservative Investors Portfolio
- --------------------------------------------------------------------------------
PERCENT
OF NET
COMPANY U.S. $ VALUE ASSETS
- --------------------------------------------------------------------------------
U.S. Treasury Notes $13,915,170 40.4%
- --------------------------------------------------------------------------------
Federal National Mortgage Assoc., 5.625%, 5/14/04 4,554,582 13.2
- --------------------------------------------------------------------------------
U.S. Treasury Bond, 5.50%, 8/15/28 3,113,108 9.0
- --------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp., 5.75%, 6/15/01 1,997,392 5.8
- --------------------------------------------------------------------------------
Nokia AB OYJ Corp. Series A 473,160 1.4
- --------------------------------------------------------------------------------
Cisco Systems, Inc. 141,694 0.4
- --------------------------------------------------------------------------------
Microsoft Corp. 135,187 0.4
- --------------------------------------------------------------------------------
Tyco International, Ltd. 132,650 0.4
- --------------------------------------------------------------------------------
Carrefour, SA 132,206 0.4
- --------------------------------------------------------------------------------
Home Depot, Inc. 128,875 0.3
- --------------------------------------------------------------------------------
$24,724,024 71.7%
- --------------------------------------------------------------------------------
Growth Investors Portfolio
- --------------------------------------------------------------------------------
PERCENT
OF NET
COMPANY U.S. $ VALUE ASSETS
- --------------------------------------------------------------------------------
U.S. Treasury Notes $ 6,775,273 35.8%
- --------------------------------------------------------------------------------
U.S. Treasury Bond, 5.50%, 8/15/28 732,496 3.9
- --------------------------------------------------------------------------------
Nokia AB OYJ Corp. Series A 630,880 3.3
- --------------------------------------------------------------------------------
Cisco Systems, Inc. 276,947 1.5
- --------------------------------------------------------------------------------
Microsoft Corp. 270,375 1.4
- --------------------------------------------------------------------------------
Tyco International, Ltd. 265,300 1.4
- --------------------------------------------------------------------------------
Home Depot, Inc. 251,306 1.3
- --------------------------------------------------------------------------------
Wal-Mart Stores, Inc. 250,900 1.3
- --------------------------------------------------------------------------------
Philip Morris Cos., Inc. 245,144 1.3
- --------------------------------------------------------------------------------
BankAmerica Corp. 241,931 1.3
- --------------------------------------------------------------------------------
$ 9,940,552 52.5%
- --------------------------------------------------------------------------------
Total Return Portfolio
- --------------------------------------------------------------------------------
PERCENT
OF NET
COMPANY U.S. $ VALUE ASSETS
- --------------------------------------------------------------------------------
U.S. Treasury Notes $11,340,701 16.4%
- --------------------------------------------------------------------------------
U.S. Treasury Bonds 3,059,498 4.4
- --------------------------------------------------------------------------------
Household International, Inc. 1,961,325 2.9
- --------------------------------------------------------------------------------
Bristol-Myers Squibb Co. 1,958,163 2.8
- --------------------------------------------------------------------------------
Citigroup, Inc. 1,767,000 2.6
- --------------------------------------------------------------------------------
First Data Corp. 1,546,425 2.2
- --------------------------------------------------------------------------------
BankAmerica Corp. 1,539,562 2.2
- --------------------------------------------------------------------------------
Tyco International, Ltd. 1,487,575 2.2
- --------------------------------------------------------------------------------
Chase Manhattan Corp. 1,204,088 1.8
- --------------------------------------------------------------------------------
USX-Marathon Group 1,100,612 1.6
- --------------------------------------------------------------------------------
$26,964,949 39.1%
- --------------------------------------------------------------------------------
A-1
<PAGE>
TEN LARGEST HOLDINGS (continued) Alliance Variable Products Series Fund
================================================================================
Growth and Income Portfolio
- --------------------------------------------------------------------------------
PERCENT
OF NET
COMPANY U.S. $ VALUE ASSETS
- --------------------------------------------------------------------------------
Bristol-Myers Squibb Co. $ 19,144,912 4.0%
- --------------------------------------------------------------------------------
Household International, Inc. 18,926,313 3.9
- --------------------------------------------------------------------------------
Citigroup, Inc. 16,679,625 3.4
- --------------------------------------------------------------------------------
BankAmerica Corp. 16,634,606 3.4
- --------------------------------------------------------------------------------
Tyco International, Ltd. 15,652,700 3.2
- --------------------------------------------------------------------------------
USX-Marathon Group 15,320,656 3.2
- --------------------------------------------------------------------------------
First Data Corp. 14,764,444 3.1
- --------------------------------------------------------------------------------
Philip Morris Cos., Inc. 12,016,062 2.5
- --------------------------------------------------------------------------------
Chase Manhattan Corp. 11,625,075 2.4
- --------------------------------------------------------------------------------
Noble Drilling Corp. 11,028,937 2.3
- --------------------------------------------------------------------------------
$151,793,330 31.4%
- --------------------------------------------------------------------------------
Growth Portfolio
- --------------------------------------------------------------------------------
PERCENT
OF NET
COMPANY U.S. $ VALUE ASSETS
- --------------------------------------------------------------------------------
International Business Machines Corp. $ 19,516,750 5.1%
- --------------------------------------------------------------------------------
AT&T Corp.--Liberty Media Group Cl.A 17,341,517 4.5
- --------------------------------------------------------------------------------
MCI WorldCom, Inc. 15,596,089 4.1
- --------------------------------------------------------------------------------
Mannesmann AG 14,652,119 3.8
- --------------------------------------------------------------------------------
American International Group, Inc. 13,817,706 3.6
- --------------------------------------------------------------------------------
Sanmina Corp. 13,361,587 3.5
- --------------------------------------------------------------------------------
Global TeleSystems Group, Inc. 12,129,877 3.2
- --------------------------------------------------------------------------------
Nextel Communications, Inc. Cl.A 12,102,719 3.2
- --------------------------------------------------------------------------------
MBNA Corp. 11,697,984 3.1
- --------------------------------------------------------------------------------
BankAmerica Corp. 11,187,487 2.9
- --------------------------------------------------------------------------------
$141,403,835 37.0%
- --------------------------------------------------------------------------------
International Portfolio
- --------------------------------------------------------------------------------
PERCENT
OF NET
COMPANY U.S. $ VALUE ASSETS
- --------------------------------------------------------------------------------
Nokia Oyj Corp. Series A $ 3,890,429 6.3%
- --------------------------------------------------------------------------------
Societe Generale 1,793,434 2.9
- --------------------------------------------------------------------------------
ING Groep NV 1,777,668 2.9
- --------------------------------------------------------------------------------
Royal Bank of Scotland Group Plc 1,581,925 2.6
- --------------------------------------------------------------------------------
Sanofi, SA 1,544,069 2.5
- --------------------------------------------------------------------------------
Bank of Scotland 1,501,995 2.4
- --------------------------------------------------------------------------------
Bank of Tokyo-Mitsubishi, Ltd. 1,495,536 2.4
- --------------------------------------------------------------------------------
Koninklijke Ahold NV 1,483,812 2.4
- --------------------------------------------------------------------------------
SEITA 1,393,545 2.2
- --------------------------------------------------------------------------------
Zurich Allied AG 1,318,241 2.1
- --------------------------------------------------------------------------------
$ 17,780,654 28.7%
- --------------------------------------------------------------------------------
A-2
<PAGE>
Alliance Variable Products Series Fund
================================================================================
Premier Growth Portfolio
- --------------------------------------------------------------------------------
PERCENT
OF NET
COMPANY U.S. $ VALUE ASSETS
- --------------------------------------------------------------------------------
Nokia Corp. (ADR) $107,769,062 6.3%
- --------------------------------------------------------------------------------
Tyco International, Ltd. 84,892,399 4.9
- --------------------------------------------------------------------------------
Cisco Systems, Inc. 76,038,019 4.4
- --------------------------------------------------------------------------------
Home Depot, Inc. 64,263,390 3.7
- --------------------------------------------------------------------------------
Dell Computer Corp. 63,882,000 3.7
- --------------------------------------------------------------------------------
Morgan Stanley, Dean Witter & Co. 57,631,138 3.4
- --------------------------------------------------------------------------------
MCI WorldCom, Inc. 56,971,528 3.3
- --------------------------------------------------------------------------------
MBNA Corp. 56,207,594 3.3
- --------------------------------------------------------------------------------
Intel Corp. 52,284,925 3.0
- --------------------------------------------------------------------------------
EMC Corp. 48,334,000 2.8
- --------------------------------------------------------------------------------
$668,274,055 38.8%
- --------------------------------------------------------------------------------
Quasar Portfolio
- --------------------------------------------------------------------------------
PERCENT
OF NET
COMPANY U.S. $ VALUE ASSETS
- --------------------------------------------------------------------------------
Legg Mason, Inc. $ 4,596,900 3.1%
- --------------------------------------------------------------------------------
Premier Parks, Inc. 4,189,500 2.8
- --------------------------------------------------------------------------------
Chelsea GCA Realty, Inc. 3,315,262 2.2
- --------------------------------------------------------------------------------
Tiffany & Co. 2,991,500 2.0
- --------------------------------------------------------------------------------
Mohawk Industries, Inc. 2,792,981 1.9
- --------------------------------------------------------------------------------
Sunterra Corp. 2,518,506 1.7
- --------------------------------------------------------------------------------
Alaska Air Group, Inc. 2,467,425 1.7
- --------------------------------------------------------------------------------
Venator Group, Inc. 2,434,025 1.6
- --------------------------------------------------------------------------------
Monaco Coach Corp. 2,208,713 1.5
- --------------------------------------------------------------------------------
Taubman Centers, Inc. 1,992,631 1.3
- --------------------------------------------------------------------------------
$ 29,507,443 19.8%
- --------------------------------------------------------------------------------
Real Estate Investment Portfolio
- --------------------------------------------------------------------------------
PERCENT
OF NET
COMPANY U.S. $ VALUE ASSETS
- --------------------------------------------------------------------------------
Equity Office Properties Trust $ 932,750 4.8%
- --------------------------------------------------------------------------------
Pan Pacific Retail Properties, Inc. 821,500 4.2
- --------------------------------------------------------------------------------
Cornerstone Properties, Inc. 811,212 4.2
- --------------------------------------------------------------------------------
Public Storage, Inc. 730,800 3.7
- --------------------------------------------------------------------------------
Avalon Bay Communities, Inc. 715,358 3.6
- --------------------------------------------------------------------------------
Vornado Realty Trust 688,594 3.5
- --------------------------------------------------------------------------------
SL Green Realty Corp. 668,306 3.4
- --------------------------------------------------------------------------------
MeriStar Hospitality Corp. 647,950 3.3
- --------------------------------------------------------------------------------
Mills Corp. 637,613 3.3
- --------------------------------------------------------------------------------
ProLogis Trust 623,700 3.2
- --------------------------------------------------------------------------------
$ 7,277,783 37.2%
- --------------------------------------------------------------------------------
A-3
<PAGE>
TEN LARGEST HOLDINGS (continued) Alliance Variable Products Series Fund
================================================================================
Technology Portfolio
- --------------------------------------------------------------------------------
PERCENT
OF NET
COMPANY U.S. $ VALUE ASSETS
- --------------------------------------------------------------------------------
Cisco Systems, Inc. $11,219,569 5.9%
- --------------------------------------------------------------------------------
Solectron Corp. 9,116,181 4.8
- --------------------------------------------------------------------------------
Dell Computer Corp. 8,218,153 4.4
- --------------------------------------------------------------------------------
Lucent Technologies, Inc. 7,930,650 4.2
- --------------------------------------------------------------------------------
America Online, Inc. 7,762,625 4.1
- --------------------------------------------------------------------------------
Nokia Corp. (ADR) 7,379,937 3.9
- --------------------------------------------------------------------------------
Sanmina Corp. 7,113,281 3.8
- --------------------------------------------------------------------------------
Applied Materials, Inc. 6,121,647 3.2
- --------------------------------------------------------------------------------
International Business Machines Corp. 5,674,075 3.0
- --------------------------------------------------------------------------------
Microsoft Corp. 5,587,750 3.0
- --------------------------------------------------------------------------------
$76,123,868 40.3%
- --------------------------------------------------------------------------------
Utility Income Portfolio
- --------------------------------------------------------------------------------
PERCENT
OF NET
COMPANY U.S. $ VALUE ASSETS
- --------------------------------------------------------------------------------
MCI WorldCom, Inc. $ 2,064,750 5.0%
- --------------------------------------------------------------------------------
AT&T Corp. 2,029,398 4.9
- --------------------------------------------------------------------------------
Ameritech Corp. 1,999,200 4.8
- --------------------------------------------------------------------------------
MediaOne Group, Inc. 1,936,700 4.6
- --------------------------------------------------------------------------------
BellSouth Corp. 1,790,625 4.3
- --------------------------------------------------------------------------------
Nisource, Inc. 1,639,163 3.9
- --------------------------------------------------------------------------------
Consolidated Edison, Inc. 1,615,425 3.9
- --------------------------------------------------------------------------------
GTE Corp. 1,552,875 3.7
- --------------------------------------------------------------------------------
GPU, Inc. 1,518,750 3.6
- --------------------------------------------------------------------------------
Frontier Corp. 1,239,000 3.0
- --------------------------------------------------------------------------------
$17,385,886 41.7%
- --------------------------------------------------------------------------------
Worldwide Privatization Portfolio
- --------------------------------------------------------------------------------
PERCENT
OF NET
COMPANY U.S. $ VALUE ASSETS
- --------------------------------------------------------------------------------
Japan Tobacco, Inc. $ 1,406,795 3.1%
- --------------------------------------------------------------------------------
Nippon Telegraph & Telephone, Corp. 1,153,922 2.5
- --------------------------------------------------------------------------------
United Pan-Europe Communications 1,095,299 2.4
- --------------------------------------------------------------------------------
Telefonos de Mexico, SA Cl.L (ADR) 1,066,725 2.3
- --------------------------------------------------------------------------------
ING Groep NV 997,046 2.2
- --------------------------------------------------------------------------------
Daiwa Securities Co., Ltd. 991,981 2.2
- --------------------------------------------------------------------------------
ST Microelectronics NV 958,938 2.1
- --------------------------------------------------------------------------------
Grupo Financiero Banorte, SA de CV Cl.B 903,124 2.0
- --------------------------------------------------------------------------------
Equant NV 887,599 1.9
- --------------------------------------------------------------------------------
Sanofi, SA 887,416 1.9
- --------------------------------------------------------------------------------
$10,348,845 22.6%
- --------------------------------------------------------------------------------
A-4
<PAGE>
SECTOR DIVERSIFICATION
June 30, 1999 (unaudited) Alliance Variable Products Series Fund
================================================================================
International Portfolio
- --------------------------------------------------------------------------------
PERCENT
OF NET
U.S. $ VALUE ASSETS
- --------------------------------------------------------------------------------
Capital Goods $ 3,412,727 5.5%
- --------------------------------------------------------------------------------
Consumer Manufacturing 2,834,497 4.6
- --------------------------------------------------------------------------------
Consumer Services 9,059,183 14.6
- --------------------------------------------------------------------------------
Consumer Staples 8,411,739 13.5
- --------------------------------------------------------------------------------
Energy 2,011,039 3.2
- --------------------------------------------------------------------------------
Finance 15,831,969 25.6
- --------------------------------------------------------------------------------
Healthcare 5,798,205 9.4
- --------------------------------------------------------------------------------
Multi Industry 102,080 0.2
- --------------------------------------------------------------------------------
Technology 7,982,752 12.9
- --------------------------------------------------------------------------------
Utilities 2,329,890 3.8
- --------------------------------------------------------------------------------
Total Investments* 57,774,081 93.3
- --------------------------------------------------------------------------------
Cash and receivables, net of liabilities 4,174,566 6.7
- --------------------------------------------------------------------------------
Net Assets $61,948,647 100.0%
- --------------------------------------------------------------------------------
Worldwide Privatization Portfolio
- --------------------------------------------------------------------------------
PERCENT
OF NET
U.S. $ VALUE ASSETS
- --------------------------------------------------------------------------------
Aerospace & Defense $ 91,006 0.2%
- --------------------------------------------------------------------------------
Basic Industries 3,447,330 7.5
- --------------------------------------------------------------------------------
Capital Goods 46,597 0.1
- --------------------------------------------------------------------------------
Consumer Manufacturing 373,876 0.8
- --------------------------------------------------------------------------------
Consumer Services 5,737,129 12.5
- --------------------------------------------------------------------------------
Consumer Staples 3,662,870 8.0
- --------------------------------------------------------------------------------
Energy 2,758,985 6.0
- --------------------------------------------------------------------------------
Finance 10,725,553 23.5
- --------------------------------------------------------------------------------
Healthcare 1,684,874 3.7
- --------------------------------------------------------------------------------
Multi Industry 540,350 1.2
- --------------------------------------------------------------------------------
Technology 1,698,098 3.7
- --------------------------------------------------------------------------------
Transportation 1,927,635 4.2
- --------------------------------------------------------------------------------
Utilities 11,185,182 24.5
- --------------------------------------------------------------------------------
Total Investments 43,879,485 95.9
- --------------------------------------------------------------------------------
Cash and receivables, net of liabilities 1,856,061 4.1
- --------------------------------------------------------------------------------
Net Assets $45,735,546 100.0%
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
* Excludes short-term obligations.
A-5
<PAGE>
CONSERVATIVE INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1999 (unaudited) Alliance Variable Products Series Fund
================================================================================
Company Shares U.S. $ Value
- --------------------------------------------------------------------------------
COMMON & PREFERRED
STOCKS-15.8%
UNITED STATES
INVESTMENTS-10.7%
FINANCE-1.4%
BANKING - REGIONAL-0.4%
BankAmerica Corp. .................................. 1,699 $ 124,558
---------------
INSURANCE-0.6%
American International Group,
Inc.............................................. 950 111,209
Citigroup, Inc. .................................... 2,400 114,000
---------------
225,209
---------------
MISCELLANEOUS-0.4%
MBNA Corp. ......................................... 4,200 128,625
---------------
478,392
---------------
CONSUMER STAPLES-1.3%
BEVERAGES-0.3%
Coca-Cola Co. ...................................... 1,700 106,250
---------------
HOUSEHOLD PRODUCTS-0.3%
Procter & Gamble Co. ............................... 1,200 107,100
---------------
RETAIL - FOOD & DRUG-0.3%
Kroger Co. (a) ..................................... 4,400 122,925
---------------
TOBACCO-0.4%
Philip Morris Cos., Inc. ........................... 3,100 124,581
---------------
460,856
---------------
ENERGY-1.3%
INTERNATIONAL-0.6%
Chevron Corp. ...................................... 1,200 114,225
Exxon Corp. ........................................ 1,300 100,262
---------------
214,487
---------------
OIL SERVICE-0.7%
Halliburton Co. .................................... 2,600 117,650
Noble Drilling Corp. (a) ........................... 5,700 112,219
---------------
229,869
---------------
444,356
---------------
BASIC INDUSTRY-1.3%
CHEMICALS-0.6%
Du Pont E.I. de Nemours &
Co .............................................. 1,600 109,300
Union Carbide Corp. ................................ 2,200 107,250
---------------
216,550
---------------
MINING & METALS-0.4%
Alcoa, Inc. ........................................ 1,900 117,563
---------------
PAPER & FOREST
PRODUCTS-0.3%
International Paper Co. ............................ 2,100 106,050
---------------
440,163
---------------
TECHNOLOGY-1.1%
COMPUTER HARDWARE-0.3%
Dell Computer Corp. (a) ............................ 2,800 103,513
---------------
COMPUTER SOFTWARE-0.4%
Microsoft Corp. (a) ................................ 1,500 135,187
---------------
NETWORKING
SOFTWARE-0.4%
Cisco Systems, Inc. (a) ............................ 2,200 141,694
---------------
380,394
---------------
CONSUMER SERVICES-1.1%
RETAIL - GENERAL
MERCHANDISE-1.1%
Dayton Hudson Corp. ................................ 1,800 117,000
Home Depot, Inc. ................................... 2,000 128,875
Wal-Mart Stores, Inc. .............................. 2,600 125,450
---------------
371,325
---------------
CONSUMER
MANUFACTURING-0.9%
AUTO & RELATED-0.9%
Delphi Automotive Systems
Corp ............................................ 858 15,927
General Motors Corp. ............................... 1,300 85,800
Goodyear Tire & Rubber Co. ......................... 1,800 105,862
Harley-Davidson, Inc. .............................. 2,000 108,750
---------------
316,339
---------------
MULTI-INDUSTRY
COMPANIES-0.7%
Minnesota Mining &
Manufacturing Co. ............................... 1,200 104,325
Tyco International, Ltd. ........................... 1,400 132,650
---------------
236,975
---------------
CAPITAL GOODS-0.6%
MACHINERY-0.6%
Allied Signal, Inc. ................................ 1,900 119,700
Caterpillar, Inc. .................................. 1,700 102,000
---------------
221,700
---------------
UTILITY-0.4%
TELEPHONE UTILITY-0.4%
MCI WorldCom, Inc. (a) ............................. 1,400 120,444
---------------
HEALTH CARE-0.3%
MEDICAL PRODUCTS-0.3%
Johnson & Johnson Co. .............................. 1,200 117,600
---------------
AEROSPACE &
DEFENSE-0.3%
AEROSPACE-0.3%
United Technologies Corp. .......................... 1,500 107,531
---------------
Total United States Investments
(cost $2,982,485) ............................... 3,696,075
---------------
B-1
<PAGE>
Alliance Variable Products Series Fund
================================================================================
Company Shares U.S. $ Value
- --------------------------------------------------------------------------------
FOREIGN INVESTMENTS-5.1%
FINLAND-1.4%
Nokia AB OYJ Corp.
Series A ........................................ 5,400 $ 473,160
---------------
FRANCE-1.1%
Carrefour, SA ...................................... 900 132,206
Sanofi, SA (a) ..................................... 2,160 91,626
SEITA .............................................. 1,080 62,346
Total, SA Cl.B ..................................... 650 83,824
---------------
370,002
---------------
GERMANY-0.1%
ProSieben Media AG pfd ............................. 1,080 48,986
---------------
JAPAN-0.3%
Honda Motor Co. .................................... 2,000 84,814
---------------
NETHERLANDS-0.2%
Akzo Nobel NV ...................................... 1,900 79,912
---------------
SPAIN-0.6%
Banco Bilbao Vizcaya, SA ........................... 2,700 38,994
Tabacalera, SA ..................................... 3,200 64,655
Telefonica, SA ..................................... 2,200 105,932
---------------
209,581
---------------
SWEDEN-0.2%
AstraZeneca Group Plc .............................. 1,917 74,747
---------------
SWITZERLAND-0.7%
Nestle, SA ......................................... 43 77,451
Novartis AG ........................................ 38 55,469
Zurich Allied AG ................................... 162 92,089
---------------
225,009
---------------
UNITED KINGDOM-0.5%
Royal Bank of Scotland Group
Plc ............................................. 2,774 56,843
United News & Media Plc ............................ 3,200 30,768
Vodafone Group Plc ................................. 4,321 85,001
---------------
172,612
---------------
Total Foreign Investments
(cost $1,329,815) ............................... 1,738,823
---------------
Total Common & Preferred
Stocks
(cost $4,312,300) ............................... 5,434,898
---------------
Principal
Amount
(000) U.S. $ Value
- --------------------------------------------------------------------------------
DEBT OBLIGATIONS-68.4%
U.S. GOVERNMENT &
AGENCY OBLIGATIONS-68.4%
Federal Home Loan Mortgage
Corp
5.75%, 6/15/01 .................................. $ 2,000 $ 1,997,392
Federal National Mortgage
Assoc
5.625%, 5/14/04 ................................. 4,700 4,554,582
U.S. Treasury Bond
5.50%, 8/15/28 .................................. 3,400 3,113,108
U.S. Treasury Notes
3.875%, 1/15/09 (b) ............................. 1,722 1,679,804
4.75%, 2/15/04 .................................. 2,500 2,404,675
4.75%, 11/15/08 ................................. 1,800 1,652,904
6.50%, 8/31/01 .................................. 5,175 5,272,031
6.875%, 5/15/06 ................................. 2,760 2,905,756
---------------
Total Debt Obligations
(cost $23,557,025) .............................. 23,580,252
---------------
SHORT-TERM
INVESTMENTS-11.9%
COMMERCIAL PAPER-11.6%
Barclays Bank Plc
5.16%, 3/31/00 .................................. 4,000 4,002,879
---------------
TIME DEPOSIT-0.3%
State Street Bank
Euro Dollar
4.50%, 7/01/99 .................................. 103 103,000
---------------
Total Short-Term Investments
(amortized cost $4,105,879) ..................... 4,105,879
---------------
TOTAL INVESTMENTS-96.1%
(cost $31,975,204) .............................. 33,121,029
Other assets less
liabilities-3.9% ................................ 1,342,537
---------------
NET ASSETS-100% .................................... $ 34,463,566
===============
- --------------------------------------------------------------------------------
(a) Non-income producing security.
(b) Treasury Inflation Protection Securities.
See Glossary of Terms on page B-39.
See Notes to Financial Statements.
B-2
<PAGE>
GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1999 (unaudited) Alliance Variable Products Series Fund
================================================================================
Company Shares U.S. $ Value
- --------------------------------------------------------------------------------
COMMON STOCKS & OTHER
INVESTMENTS-51.1%
UNITED STATES
INVESTMENTS-38.3%
CONSUMER STAPLES-4.7%
BEVERAGES-1.1%
Coca-Cola Co. ...................................... 3,300 $ 206,250
---------------
HOUSEHOLD PRODUCTS-1.1%
Procter & Gamble Co. ............................... 2,500 223,125
---------------
RETAIL - FOOD & DRUG-1.2%
Kroger Co. (a) ..................................... 8,000 223,500
---------------
TOBACCO-1.3%
Philip Morris Cos., Inc. ........................... 6,100 245,144
---------------
898,019
---------------
FINANCE-4.7%
BANKING - REGIONAL-1.3%
BankAmerica Corp. .................................. 3,300 241,931
---------------
INSURANCE-2.4%
American International
Group, Inc. ..................................... 2,000 234,125
Citigroup, Inc. .................................... 4,800 228,000
---------------
462,125
---------------
MISCELLANEOUS-1.0%
MBNA Corp. ......................................... 6,000 183,750
---------------
887,806
---------------
ENERGY-4.7%
INTERNATIONAL-2.3%
Chevron Corp. ...................................... 2,300 218,931
Exxon Corp. ........................................ 2,700 208,238
---------------
427,169
---------------
OIL SERVICE-2.4%
Halliburton Co. .................................... 5,200 235,300
Noble Drilling Corp. (a) ........................... 11,200 220,500
---------------
455,800
---------------
882,969
---------------
BASIC INDUSTRY-4.6%
CHEMICALS-2.3%
Du Pont E.I. de Nemours &
Co .............................................. 3,300 225,431
Union Carbide Corp. ................................ 4,300 209,625
---------------
435,056
---------------
MINING & METALS-1.2%
Alcoa, Inc. ........................................ 3,700 228,938
---------------
PAPER & FOREST
PRODUCTS-1.1%
International Paper Co. ............................ 4,100 207,050
---------------
871,044
---------------
TECHNOLOGY-4.0%
COMPUTER HARDWARE-1.1%
Dell Computer Corp. (a) ............................ 5,700 210,722
---------------
COMPUTER SOFTWARE-1.4%
Microsoft Corp. (a) ................................ 3,000 270,375
---------------
NETWORKING
SOFTWARE-1.5%
Cisco Systems, Inc. (a) ............................ 4,300 276,947
---------------
758,044
---------------
CONSUMER SERVICES-3.9%
RETAIL - GENERAL
MERCHANDISE-3.9%
Dayton Hudson Corp. ................................ 3,500 227,500
Home Depot, Inc. ................................... 3,900 251,306
Wal-Mart Stores, Inc. .............................. 5,200 250,900
---------------
729,706
---------------
CONSUMER
MANUFACTURING-3.2%
AUTO & RELATED-3.2%
Delphi Automotive Systems
Corp ............................................ 1,696 31,482
General Motors Corp. ............................... 2,300 151,800
Goodyear Tire & Rubber Co. ......................... 3,600 211,725
Harley-Davidson, Inc. .............................. 3,900 212,062
---------------
607,069
---------------
MULTI-INDUSTRY
COMPANIES-2.5%
Minnesota Mining &
Manufacturing Co. ............................... 2,400 208,650
Tyco International, Ltd. ........................... 2,800 265,300
---------------
473,950
---------------
CAPITAL GOODS-2.3%
MACHINERY-2.3%
AlliedSignal, Inc. ................................. 3,700 233,100
Caterpillar, Inc. .................................. 3,500 210,000
---------------
443,100
---------------
UTILITY-1.3%
TELEPHONE UTILITY-1.3%
MCI WorldCom, Inc. (a) ............................. 2,800 240,888
---------------
HEALTH CARE-1.2%
MEDICAL PRODUCTS-1.2%
Johnson & Johnson Co. .............................. 2,400 235,200
---------------
AEROSPACE &
DEFENSE-1.2%
AEROSPACE-1.2%
United Technologies Corp. .......................... 3,100 222,231
---------------
Total United States Investments
(cost $6,049,506) ............................... 7,250,026
---------------
B-3
<PAGE>
Alliance Variable Products Series Fund
================================================================================
Company Shares U.S. $ Value
- --------------------------------------------------------------------------------
FOREIGN INVESTMENTS-12.8%
FINLAND-3.3%
Nokia AB OYJ Corp.
Series A ........................................ 7,200 $ 630,880
---------------
FRANCE-2.9%
Carrefour, SA ...................................... 1,200 176,275
Sanofi, SA (a) ..................................... 3,480 147,620
SEITA .............................................. 1,730 99,869
Total, SA Cl.B ..................................... 1,010 130,249
---------------
554,013
---------------
GERMANY-0.4%
ProSieben Media AG pfd ............................. 1,730 78,468
---------------
JAPAN-0.5%
Honda Motor Co. .................................... 2,000 84,814
---------------
NETHERLANDS-0.6%
Akzo Nobel NV ...................................... 2,900 121,970
---------------
SPAIN-1.4%
Banco Bilbao Vizcaya, SA ........................... 4,300 62,102
Tabacalera, SA ..................................... 4,300 86,880
Telefonica, SA ..................................... 2,200 105,932
---------------
254,914
---------------
SWEDEN-0.6%
AstraZeneca Group Plc .............................. 2,926 114,090
---------------
SWITZERLAND-1.7%
Nestle, SA ......................................... 58 104,468
Novartis AG ........................................ 72 105,099
Zurich Allied AG ................................... 200 113,691
---------------
323,258
---------------
UNITED KINGDOM-1.4%
Royal Bank of Scotland
Group Plc ....................................... 4,093 83,871
United News & Media Plc ............................ 6,000 57,691
Vodafone Group Plc ................................. 5,824 114,567
---------------
256,129
---------------
Total Foreign Investments
(cost $1,888,811) ............................... 2,418,536
---------------
Total Common Stocks & Other
Investments
(cost $7,938,317) ............................... 9,668,562
---------------
Principal
Amount
(000) U.S. $ Value
- --------------------------------------------------------------------------------
DEBT OBLIGATIONS-39.6%
U.S. GOVERNMENT
OBLIGATIONS-39.6%
U.S. Treasury Bond
5.50%, 8/15/28 .................................. $ 800 $ 732,496
U.S. Treasury Notes
3.875%, 1/15/09 (b) ............................. 1,925 1,877,428
4.75%, 2/15/04 .................................. 1,700 1,635,179
4.75%, 11/15/08 ................................. 400 367,312
6.50%, 8/31/01 .................................. 2,160 2,200,500
6.875%, 5/15/06 ................................. 660 694,854
---------------
Total Debt Obligations
(cost $7,497,711) ............................... 7,507,769
---------------
SHORT-TERM
INVESTMENTS-8.2%
TIME DEPOSIT-6.7%
State Street Cayman Islands
4.50%, 7/01/99 .................................. 1,271 1,271,000
---------------
U.S. Government-1.5%
U.S. Treasury Bill
4.00%, 9/23/99 .................................. 280 277,008
---------------
Total Short-Term Investments
(amortized cost $1,548,008) ..................... 1,548,008
---------------
TOTAL INVESTMENTS-98.9%
(cost $16,984,036) .............................. 18,724,339
Other assets less
liabilities-1.1% ................................ 215,812
---------------
NET ASSETS-100% .................................... $ 18,940,151
===============
- --------------------------------------------------------------------------------
(a) Non-income producing security.
(b) Treasury Inflation Protection Securities.
See Glossary of Terms on page B-39.
See Notes to Financial Statements.
B-4
<PAGE>
TOTAL RETURN PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1999 (unaudited) Alliance Variable Products Series Fund
================================================================================
Company Shares U.S. $ Value
- --------------------------------------------------------------------------------
COMMON STOCKS-60.2%
FINANCE-13.4%
BANKING - MONEY
CENTERS-5.1%
Bank One Corp. .................................... 6,500 $ 387,156
BankAmerica Corp. ................................. 21,000 1,539,562
Chase Manhattan Corp. ............................. 13,900 1,204,088
Wells Fargo & Co. ................................. 10,000 427,500
--------------
3,558,306
--------------
INSURANCE-3.7%
Citigroup, Inc..................................... 37,200 1,767,000
PMI Group, Inc. ................................... 5,600 351,750
Travelers Property Casualty
Corp. Cl.A ..................................... 10,400 406,900
--------------
2,525,650
--------------
MISCELLANEOUS-4.6%
Associates First Capital Corp.
Cl.A ........................................... 11,400 505,163
Household International, Inc. ..................... 41,400 1,961,325
MBNA Corp. ........................................ 14,250 436,406
Newcourt Credit Group, Inc.
(Canada) ....................................... 4,900 63,394
The CIT Group, Inc. Cl. A ......................... 8,000 231,000
--------------
3,197,288
--------------
9,281,244
--------------
TECHNOLOGY-9.5%
COMMUNICATIONS
EQUIPMENT-0.8%
Lucent Technologies, Inc. ......................... 4,125 278,179
Tellabs, Inc. (a) ................................. 4,200 283,894
--------------
562,073
--------------
COMPUTER HARDWARE-0.3%
Compaq Computer Corp. ............................. 8,600 203,712
--------------
COMPUTER PERIPHERALS-0.3%
Seagate Technology, Inc. (a) ...................... 7,500 192,188
--------------
COMPUTER SERVICES-4.6%
Computer Sciences Corp. ........................... 14,000 968,625
Electronic Data Systems Corp. ..................... 11,500 650,469
First Data Corp. .................................. 31,600 1,546,425
--------------
3,165,519
--------------
COMPUTER SOFTWARE-0.6%
Oracle Corp. (a) .................................. 10,800 400,950
--------------
SEMI-CONDUCTOR
COMPONENTS-1.4%
Altera Corp. (a) .................................. 10,600 389,881
Atmel Corp. (a) ................................... 22,300 583,285
--------------
973,166
--------------
MISCELLANEOUS-1.5%
Sanmina Corp. (a) ................................. 6,000 455,250
Solectron Corp. (a) ............................... 9,400 626,862
--------------
1,082,112
--------------
6,579,720
--------------
HEALTH CARE-8.3%
BIOTECHNOLOGY-0.3%
Genzyme Corp. (a) ................................. 5,305 221,656
--------------
DRUGS-4.3%
Bristol-Myers Squibb Co. .......................... 27,800 1,958,163
Schering-Plough Corp. ............................. 18,400 975,200
--------------
2,933,363
--------------
MEDICAL SERVICES-3.7%
Columbia HCA/Healthcare
Corp ........................................... 23,400 533,813
LifePoint Hospitals, Inc. (a) ..................... 1,231 16,503
PacifiCare Health Systems,
Inc. Cl.B, (a) ................................. 6,000 431,813
Tenet Healthcare Corp. (a) ....................... 50,200 931,837
Triad Hospitals, Inc. (a) ......................... 1,231 16,580
United Healthcare Corp. ........................... 9,800 613,725
--------------
2,544,271
--------------
5,699,290
--------------
CONSUMER SERVICES-5.9% AIRLINES-0.9%
Continental Airlines, Inc.
Cl.B, (a) ...................................... 17,200 647,150
--------------
BROADCASTING &
CABLE-1.1%
A.H. Belo Corp. Series A .......................... 20,900 411,468
Scripps E.W. Co. .................................. 2,700 128,419
Vodafone Group PLC ................................ 1,000 197,000
--------------
736,887
--------------
ENTERTAINMENT &
LEISURE-0.4%
Royal Caribbean Cruises,
Ltd ............................................ 6,000 262,500
--------------
PRINTING &
PUBLISHING-1.0%
Donnelley (R.R.) & Sons Co. ....................... 7,400 274,263
Gannett Co., Inc. ................................. 6,000 428,250
--------------
702,513
--------------
RETAIL - GENERAL
MERCHANDISE-2.5%
Dayton Hudson Corp. ............................... 4,400 286,000
Saks, Inc. (a) .................................... 33,000 952,875
Tommy Hilfiger Corp. (a) .......................... 6,700 492,450
--------------
1,731,325
--------------
4,080,375
--------------
B-5
<PAGE>
Alliance Variable Products Series Fund
================================================================================
Company Shares U.S. $ Value
- --------------------------------------------------------------------------------
CONSUMER STAPLES-5.4%
BEVERAGES-1.0%
Coca-Cola Enterprises, Inc. ....................... 8,900 $ 264,775
Pepsi Bottling Group, Inc. ........................ 18,500 426,656
--------------
691,431
--------------
COSMETICS-0.3%
Avon Products, Inc. ............................... 4,300 238,650
--------------
FOOD-1.9%
General Mills, Inc. ............................... 4,200 337,575
Heinz (H.J.) Co. .................................. 4,100 205,512
Nabisco Group Holding
Corp. (a) ...................................... 19,100 373,644
Tyson Foods, Inc. Cl.A ............................ 17,500 393,750
--------------
1,310,481
--------------
RetaiL - FOOD & Drug-0.6%
Kroger Co. (a) .................................... 14,400 402,300
--------------
TOBACCO-1.6%
Philip Morris Cos., Inc. .......................... 22,600 908,238
RJR Nabisco Holdings
Corp. (a) ...................................... 6,366 200,529
--------------
1,108,767
--------------
3,751,629
--------------
ENERGY-6.1%
DOMESTIC
INTEGRATED-2.2%
Kerr-McGee Corp. .................................. 8,800 441,650
USX-Marathon Group ................................ 33,800 1,100,612
--------------
1,542,262
--------------
DOMESTIC PRODUCERS-0.4%
Murphy Oil Corp. .................................. 2,650 129,353
Union Pacific Resources
Group, Inc. .................................... 7,200 117,450
--------------
246,803
--------------
OIL SERVICES-3.0%
BJ Services Co. (a) ............................... 10,000 294,375
Noble Drilling Corp. (a) .......................... 55,600 1,094,625
Total, SA (ADR) ................................... 6,800 438,175
Transocean Offshore, Inc. ......................... 8,500 223,125
--------------
2,050,300
--------------
MISCELLANEOUS-0.5%
AES Corp. (a) ..................................... 6,300 366,188
--------------
4,205,553
--------------
MULTI-INDUSTRY
COMPANIES-3.1%
Honeywell, Inc. ................................... 2,900 336,037
Tyco International, Ltd. .......................... 15,700 1,487,575
U.S. Industries, Inc. ............................. 18,600 316,200
--------------
2,139,812
--------------
Shares or
Principal
Amount
(000) U.S. $ Value
- --------------------------------------------------------------------------------
UTILITIES-4.3%
ELECTRIC & GAS
UTILITIES-2.4%
Allegheny Energy, Inc. ............................ 5,400 $ 173,137
CMS Energy Corp. .................................. 9,200 385,250
Consolidated Edison, Inc. ......................... 2,700 122,175
Duke Energy Corp. ................................. 2,100 114,188
Edison International .............................. 13,300 355,775
FPL Group, Inc. ................................... 5,000 273,125
GPU, Inc. ......................................... 2,500 105,469
Pinnacle West Capital Corp. ....................... 3,800 152,950
--------------
1,682,069
--------------
TELEPHONE UTILITIES-1.9%
AT&T Corp. ........................................ 12,550 700,447
MCI WorldCom, Inc. (a) ............................ 6,726 578,646
--------------
1,279,093
--------------
2,961,162
--------------
CAPITAL GOODS-3.0%
ELECTRICAL
EQUIPMENT-0.4%
General Electric Co. .............................. 2,000 226,000
--------------
MISCELLANEOUS-2.6%
Allied-Signal, Inc. ............................... 15,300 963,900
United Technologies Corp. ......................... 11,800 845,912
--------------
1,809,812
--------------
2,035,812
--------------
BASIC INDUSTRIES-0.9%
CHEMICALS-0.9%
Praxair, Inc. ..................................... 13,000 636,188
--------------
CONSUMER
MANUFACTURING-0.3%
BUILDING & RELATED-0.3%
Masco Corp. ....................................... 7,000 202,125
--------------
Total Common Stocks
(cost $34,097,643) ............................. 41,572,910
--------------
U.S. GOVERNMENT
OBLIGATIONS-20.9%
U.S. Treasury Bonds
5.25%, 11/15/28 ................................ 685 607,191
5.50%, 8/15/28 ................................. 500 457,810
6.125%, 11/15/27 ............................... 1,400 1,390,592
8.125%, 8/15/19 ................................ 500 603,905
U.S. Treasury Notes
5.50%, 5/15/09 ................................. 250 244,218
6.50%, 8/31/01 ................................. 500 509,375
6.50%, 5/31/02 ................................. 5,500 5,624,630
6.50%, 10/15/06 ................................ 250 258,125
6.75%, 4/30/00 ................................. 2,400 2,428,128
6.875%, 5/15/06 ................................ 750 789,607
7.25%, 5/15/04 ................................. 1,400 1,486,618
--------------
Total U.S. Government
Obligations
(cost $14,849,189) ............................. 14,400,199
--------------
B-6
<PAGE>
TOTAL RETURN PORTFOLIO
PORTFOLIO OF INVESTMENTS
(continued) Alliance Variable Products Series Fund
================================================================================
Principal
Amount
(000) U.S. $ Value
- --------------------------------------------------------------------------------
CORPORATE DEBT
OBLIGATIONS-11.4%
AEROSPACE & DEFENSE-0.7% Raytheon Co.
6.40%, 12/15/18 (b) ............................ $ 550 $ 496,660
--------------
AIR TRANSPORTATION-0.2%
Northwest Airlines, Inc.
8.52%, 4/07/04 ................................. 150 144,942
--------------
AUTOMOTIVE-1.0%
Borg-Warner Automotive, Inc.
6.50%, 2/15/09 ................................. 250 236,193
Federal-Mogul Corp.
7.50%, 1/15/09 (b) ............................. 500 461,570
--------------
697,763
--------------
BANKING - MONEY
CENTERS-1.6%
Bank One Corp.
5.625%, 2/17/04 ................................ 500 479,678
Bank United Corp.
8.875%, 5/01/07 ................................ 150 150,346
Citicorp
6.375%, 11/15/08 ............................... 500 475,795
--------------
1,105,819
--------------
BROADCASTING/MEDIA-0.7%
CBS Corp.
7.15%, 5/20/05 ................................. 500 498,225
--------------
CABLE-0.5%
Charter Communications
Holdings LLC
8.625%, 4/01/09 (b) ............................ 100 96,500
Cox Communication, Inc.
6.85%, 1/15/18 ................................. 250 230,319
--------------
326,819
--------------
CHEMICALS-0.5%
ICI North America Inc.
8.875%, 11/15/06 ............................... 150 162,689
Lyondell Chemical Co.
9.875%, 5/01/07 (b) ............................ 150 154,125
--------------
316,814
--------------
COMMUNICATIONS-0.4%
News America Holdings, Inc.
9.50%, 7/15/24 ................................. 250 288,381
--------------
ELECTRIC & GAS
UTILITY-1.6%
Arizona Public Service Co.
5.875%, 2/15/04 ................................ 250 242,399
Calenergy Co., Inc.
8.48%, 9/15/28 ................................. 500 533,424
Connecticut Light & Power Co.
6.125%, 2/01/04 ................................ 300 288,694
--------------
1,064,517
--------------
ENERGY-0.2%
Conoco Inc.
5.90%, 4/15/04 ................................. 150 146,312
--------------
FINANCIAL-1.7%
Chase Manhattan Corp.
6.00%, 2/15/09 ................................. 150 139,140
China Development Bank
8.25%, 5/15/09 ................................. 100 99,625
Household Finance Corp.
6.50%, 11/15/08 ................................ 500 475,377
Merrill Lynch & Co., Inc.
6.00%, 2/17/09 ................................. 500 461,812
--------------
1,175,954
--------------
INDUSTRIAL-0.1%
Delphi Automotive Systems
Corp
7.125%, 5/01/29 ................................ 100 92,691
--------------
PETROLEUM
PRODUCTS-0.7%
Apache Finance PTY, Ltd.
6.50%, 12/15/07 ................................ 250 239,020
Temple-Inland, Inc.
6.75%, 3/01/09 ................................. 250 237,630
--------------
476,650
--------------
PUBLISHING-0.3%
Knight-Ridder, Inc.
6.875%, 3/15/29 ................................ 250 232,045
--------------
RETAIL-0.2%
Kohl's Corp.
7.25%, 6/01/29 (b) ............................. 150 145,074
--------------
TELEPHONE UTILITY-0.2%
MCI WorldCom, Inc.
6.95%, 8/15/28 ................................. 150 141,820
--------------
TRANSPORTATION-0.8%
ERAC USA Finance Co.
6.625%, 5/15/06 (b) ............................ 100 99,950
Union Pacific Corp.
6.625%, 2/01/29 ................................ 500 439,314
--------------
539,264
--------------
Total Corporate Debt
Obligations
(cost $8,402,732) .............................. 7,889,750
--------------
B-7
<PAGE>
Alliance Variable Products Series Fund
================================================================================
Principal
Amount
(000) U.S. $ Value
- --------------------------------------------------------------------------------
YANKEE BONDS-0.9%
Abbey National Plc
6.70%, 6/14/08 ................................. $ 150 $ 139,389
Corporacion Andina De
Fomento
7.75%, 3/01/04 ................................. 100 97,520
Deutsche Capital Bank
7.872%, 12/29/49 (b) ........................... 100 92,738
Laidlaw, Inc.
7.65%, 5/15/06 ................................. 150 146,217
Metronet Communications
Corp
0.00%, 6/15/08 ................................. 150 111,000
--------------
Total Yankee Bonds
(cost $613,357) ................................ 586,864
--------------
SHORT-TERM
INVESTMENT-7.2%
TIME DEPOSIT-7.2%
State Street Cayman Islands
4.50%, 7/01/99
(amortized cost
$4,988,000) .................................... 4,988 4,988,000
--------------
TOTAL INVESTMENTS-100.6%
(cost $62,950,921) ............................. 69,437,723
Other assets less
liabilities-(0.6%) ............................. (387,192)
--------------
NET ASSETS-100% ................................... $ 69,050,531
==============
- --------------------------------------------------------------------------------
(a) Non-income producing security.
(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,
1999, the aggregate market value of these securities amounted to
$1,546,617 or 2.2% of net assets.
See Glossary of Terms on page B-39.
See Notes to Financial Statements.
B-8
<PAGE>
GROWTH AND INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1999 (unaudited) Alliance Variable Products Series Fund
================================================================================
Company Shares U.S. $ Value
- --------------------------------------------------------------------------------
COMMON STOCKS-96.7%
FINANCE-21.1%
BANKING - MONEY
CENTERS-2.4%
Chase Manhattan Corp. ............................. 134,200 $ 11,625,075
--------------
BANKING - REGIONAL-5.7%
Bank One Corp. .................................... 112,100 6,676,956
BankAmerica Corp. ................................. 226,900 16,634,606
Wells Fargo & Co. ................................. 105,000 4,488,750
--------------
27,800,312
--------------
BROKERAGE & MONEY
MANAGEMENT-1.1%
Merrill Lynch & Co., Inc. ......................... 65,000 5,195,937
--------------
INSURANCE-5.4%
Citigroup, Inc. ................................... 351,150 16,679,625
PMI Group, Inc. ................................... 58,900 3,699,656
The Hartford Financial
Services Group, Inc. ........................... 36,000 2,099,250
Travelers Property Casualty
Corp. Cl.A ..................................... 99,300 3,885,113
--------------
26,363,644
--------------
REAL ESTATE-0.2%
ProLogis Trust .................................... 37,090 751,073
--------------
MISCELLANEOUS-6.3%
Associates First Capital Corp.
Cl.A ........................................... 108,800 4,821,200
Household International, Inc. ..................... 399,500 18,926,313
MBNA Corp. ........................................ 113,850 3,486,656
Newcourt Credit Group, Inc.
(Canada) ....................................... 52,000 672,750
The CIT Group, Inc. Cl.A .......................... 83,200 2,402,400
--------------
30,309,319
--------------
102,045,360
--------------
TECHNOLOGY-14.4%
COMMUNICATION
EQUIPMENT-1.1%
Lucent Technologies, Inc. ......................... 39,765 2,681,652
Tellabs, Inc. (a) ................................. 42,000 2,838,938
--------------
5,520,590
--------------
COMPUTER HARDWARE-0.5%
Compaq Computer Corp. ............................. 90,700 2,148,456
--------------
COMPUTER
PERIPHERALS-0.4%
Seagate Technology, Inc. (a) ...................... 77,000 1,973,125
--------------
COMPUTER SERVICES-6.0%
Computer Sciences Corp. ........................... 111,000 7,679,812
Electronic Data Systems
Corp ........................................... 115,000 6,504,688
First Data Corp. .................................. 301,700 14,764,444
--------------
28,948,944
--------------
COMPUTER SOFTWARE-1.6%
Oracle Corp. (a) .................................. 206,100 7,651,463
--------------
SEMI-CONDUCTOR
COMPONENTS-2.0%
Altera Corp. (a) .................................. 112,000 4,119,500
Atmel Corp. (a) ................................... 213,200 5,576,512
--------------
9,696,012
--------------
MISCELLANEOUS-2.8%
Sanmina Corp. (a) ................................. 100,500 7,625,437
Solectron Corp. (a) ............................... 90,400 6,028,550
--------------
13,653,987
--------------
69,592,577
--------------
HEALTH CARE-12.1%
BIOTECHNOLOGY-0.5%
Genzyme Corp. (a) ................................. 42,500 2,059,922
--------------
DRUGS-5.9%
Bristol-Myers Squibb Co. .......................... 271,800 19,144,912
Schering-Plough Corp. ............................. 178,000 9,434,000
--------------
28,578,912
--------------
MEDICAL PRODUCTS-0.0%
Genzyme Surgical
Products (a) ................................... 7,607 33,518
--------------
MEDICAL SERVICES-5.7%
Columbia HCA/Healthcare
Corp ........................................... 223,900 5,107,719
Health Management
Associates (a) ................................. 160,000 1,800,000
Lifepoint Hospitals, Inc. (a) ..................... 11,784 157,979
PacifiCare Health Systems,
Inc. Cl.B (a) .................................. 57,400 4,131,006
Tenet Healthcare Corp. (a) ....................... 558,100 10,359,731
Triad Hospitals, Inc. (a) ......................... 11,784 158,716
United Healthcare Corp. ........................... 93,700 5,867,963
--------------
27,583,114
--------------
58,255,466
--------------
ENERGY-9.8%
DOMESTIC
INTEGRATED-4.3%
Kerr-Mcgee Corp. .................................. 108,500 5,445,344
USX-Marathon Group ................................ 470,500 15,320,656
--------------
20,766,000
--------------
DOMESTIC PRODUCERS-0.5%
Murphy Oil Corp. .................................. 25,550 1,247,159
Union Pacific Resources
Group, Inc. .................................... 70,600 1,151,663
--------------
2,398,822
--------------
INTERNATIONAL-1.0%
Total, SA (ADR) ................................... 74,000 4,768,375
--------------
B-9
<PAGE>
Alliance Variable Products Series Fund
================================================================================
Company Shares U.S. $ Value
- --------------------------------------------------------------------------------
OIL SERVICE-3.3%
BJ Services Co. (a) ............................... 96,600 $ 2,843,663
Noble Drilling Corp. (a) .......................... 560,200 11,028,937
Transocean Offshore, Inc. ......................... 82,200 2,157,750
--------------
16,030,350
--------------
MISCELLANEOUS-0.7%
AES Corp. (a) ..................................... 60,300 3,504,937
--------------
47,468,484
--------------
CONSUMER SERVICES-9.8%
AIRLINES-1.4%
Continental Airlines, Inc. (a) .................... 180,000 6,772,500
--------------
BROADCASTING &
CABLE-1.5%
A.H. Belo Corp. Series A .......................... 199,000 3,917,813
Scripps E.W. Co. .................................. 26,000 1,236,625
Vodafone Group Plc (ADR) .......................... 10,650 2,098,050
--------------
7,252,488
--------------
ENTERTAINMENT &
LEISURE-1.5%
Royal Caribbean Cruises,
Ltd ............................................ 57,500 2,515,625
Time Warner, Inc. ................................. 67,000 4,924,500
--------------
7,440,125
--------------
PRINTING &
PUBLISHING-1.5%
Donnelley (R.R.) & Sons
Co ............................................. 71,000 2,631,437
Gannett Co., Inc. ................................. 65,000 4,639,375
--------------
7,270,812
--------------
RETAIL - GENERAL
MERCHANDISE-3.9%
Dayton Hudson Corp. ............................... 47,100 3,061,500
Saks, Inc. (a) .................................... 324,600 9,372,825
Tommy Hilfiger Corp. (a) .......................... 83,800 6,159,300
--------------
18,593,625
--------------
47,329,550
--------------
CONSUMER STAPLES-9.7%
BEVERAGES-2.3%
Coca-Cola Enterprises, Inc. ....................... 168,000 4,998,000
Pepsi Bottling Group, Inc. ........................ 260,000 5,996,250
--------------
10,994,250
--------------
COSMETICS-0.5%
Avon Products, Inc. ............................... 43,500 2,414,250
--------------
FOOD-2.6%
General Mills, Inc. ............................... 39,500 3,174,813
Heinz (H.J.) Co. .................................. 43,000 2,155,375
Nabisco Group Holding
Corp. (a) ...................................... 181,800 3,556,462
Tyson Foods, Inc. Cl.A ............................ 167,200 3,762,000
--------------
12,648,650
--------------
RETAIL - FOOD &
DRUG-1.4%
Kroger Co. (a) .................................... 251,200 7,017,900
--------------
TOBACCO-2.9%
Philip Morris Cos., Inc. .......................... 299,000 12,016,062
RJR Nabisco Holdings,
Inc. (a) ....................................... 60,600 1,908,900
--------------
13,924,962
--------------
47,000,012
--------------
UTILITIES-7.7%
ELECTRIC & GAS
UTILITY-4.8%
Allegheny Energy, Inc. ............................ 51,900 1,664,044
CMS Energy Corp. .................................. 88,400 3,701,750
Consolidated Edison, Inc. ......................... 25,600 1,158,400
Duke Power Energy Corp. ........................... 20,600 1,120,125
Edison International .............................. 127,200 3,402,600
FPL Group, Inc. ................................... 47,900 2,616,537
GPU, Inc. ......................................... 143,700 6,062,344
Pinnacle West Capital Corp. ....................... 88,600 3,566,150
--------------
23,291,950
--------------
TELEPHONE
UTILITIES-2.9%
AT&T Corp. ........................................ 148,241 8,273,701
MCI WorldCom, Inc. (a) ............................ 68,568 5,898,991
--------------
14,172,692
--------------
37,464,642
--------------
MULTI-INDUSTRY
COMPANIES-4.9%
Honeywell, Inc. ................................... 28,050 3,250,294
Tyco International, Ltd. .......................... 165,200 15,652,700
U.S. Industries, Inc. ............................. 269,100 4,574,700
--------------
23,477,694
--------------
CAPITAL GOODS-4.1%
ELECTRICAL
EQUIPMENT-0.4%
General Electric Co. .............................. 19,200 2,169,600
--------------
MISCELLANEOUS-3.7%
Allied-Signal, Inc. ............................... 146,000 9,198,000
United Technologies Corp. ......................... 119,600 8,573,825
--------------
17,771,825
--------------
19,941,425
--------------
BASIC INDUSTRIES-1.7%
CHEMICALS-1.7%
Lyondell Chemical Co. ............................. 105,000 2,165,625
Praxair, Inc. ..................................... 123,000 6,019,313
--------------
8,184,938
--------------
CONSUMER
MANUFACTURING-0.9%
BUILDING & RELATED-0.9%
Masco Corp. ....................................... 153,000 4,417,875
--------------
B-10
<PAGE>
GROWTH AND INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS
(continued) Alliance Variable Products Series Fund
================================================================================
Shares or
Principal
Amount
(000) U.S. $ Value
- -------------------------------------------------------------------------------
TRANSPORTATION-0.5%
MISCELLANEOUS-0.5%
Wisconsin Central Transport
Corp.(a) ....................................... 120,000 $ 2,242,500
--------------
Total Common Stocks
(cost $388,718,984) ............................ 467,420,523
--------------
SHORT-TERM
INVESTMENT-4.9%
TIME DEPOSIT-4.9%
State Street Bank Euro Dollar
4.50%, 7/01/99
(amortized cost
$23,802,000) ................................... $23,802 23,802,000
--------------
U.S. $ Value
- -------------------------------------------------------------------------------
TOTAL INVESTMENTS-101.6%
(cost $412,520,984) ............................ $ 491,222,523
Other assets less
liabilities-(1.6%) ............................. (7,945,710)
--------------
NET ASSETS-100% ................................... $ 483,276,813
==============
- --------------------------------------------------------------------------------
(a) Non-income producing security.
See Glossary of Terms on page B-39.
See Notes to Financial Statements.
B-11
<PAGE>
GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1999 (unaudited) Alliance Variable Products Series Fund
================================================================================
Company Shares U.S. $ Value
- --------------------------------------------------------------------------------
COMMON & PREFERRED
STOCKS-97.1%
TECHNOLOGY-34.6%
COMMUNICATIONS
EQUIPMENT-5.9%
General Motors Corp. Cl.H ......................... 13,600 $ 765,000
Global TeleSystems Group,
Inc. (a) ....................................... 77,214 6,251,921
Loral Space &
Communications (a) ............................. 271,800 4,892,400
Lucent Technologies, Inc. ......................... 14,850 1,001,447
Sterling Commerce, Inc. (a) ....................... 266,889 9,741,448
--------------
22,652,216
--------------
COMMUNICATION
SERVICES-3.8%
Cable & Wireless Plc .............................. 10,000 127,519
IXC Communications,
Inc. (a) ....................................... 42,000 1,647,187
Nextel Communications, Inc.
Cl.A (a) ....................................... 241,000 12,102,719
Nextlink Communications, Inc.
cv.pfd ......................................... 6,000 546,750
--------------
14,424,175
--------------
COMPUTER HARDWARE-5.1%
International Business
Machines Corp. ................................. 151,000 19,516,750
--------------
COMPUTER SERVICES-2.6%
Ceridian Corp. (a) ................................ 298,000 9,740,875
--------------
COMPUTER SOFTWARE-2.5%
Sterling Software, Inc. (a) ....................... 362,200 9,666,212
--------------
ELECTRONICS-1.7%
SCI Systems, Inc. (a) ............................. 137,400 6,526,500
--------------
NETWORKING
SOFTWARE-2.1%
Cisco Systems, Inc. (a) ........................... 126,600 8,153,831
--------------
SEMI-CONDUCTOR
COMPONENTS-0.8%
Altera Corp. (a) .................................. 34,000 1,250,563
Intel Corp. ....................................... 15,000 892,031
Micron Technology, Inc. (a) ....................... 26,000 1,048,125
--------------
3,190,719
--------------
TELECOMMUNICATIONS-4.2%
Colt Telecom Group Plc
(ADR) (a) ...................................... 41,600 3,576,300
Globalstar Telecommunications,
Ltd.(a) ........................................ 147,400 3,413,231
Intermedia Communications,
Inc. (a) ....................................... 1,188 35,603
cv. pfd ........................................ 18,000 735,750
Millicom International Cellular,
SA (Luxembourg) (a) ............................ 56,500 1,786,813
Nokia OYJ (ADR) (Finland) ......................... 24,000 2,197,500
Orange Plc (ADR) (a) .............................. 56,000 4,200,000
--------------
15,945,197
--------------
MISCELLANEOUS-5.9%
Ingram Micro, Inc. Cl.A (a) ....................... 62,900 1,619,675
Sanmina Corp. (a) ................................. 176,100 13,361,587
Solectron Corp. (a) ............................... 114,600 7,642,388
--------------
22,623,650
--------------
132,440,125
--------------
FINANCE-24.5%
BANKING - MONEY
CENTERS-3.0%
Automatic Common Exchange
Security Trust II .............................. 23,600 424,800
Chase Manhattan Corp. ............................. 95,940 8,310,802
The Bank of Tokyo-Mitsubishi,
Ltd. (ADR) ..................................... 179,000 2,606,688
--------------
11,342,290
--------------
BANKING - REGIONAL-5.8%
Bank One Corp. .................................... 84,000 5,003,250
BankAmerica Corp. ................................. 152,600 11,187,487
Newcourt Credit Group, Inc.
(Canada) ....................................... 399,400 5,167,238
The CIT Group, Inc. Cl.A .......................... 28,780 831,023
--------------
22,188,998
--------------
INSURANCE-4.6%
Ace, Ltd. ......................................... 32,000 904,000
American Bankers Insurance
Group, Inc. .................................... 56,000 3,048,500
American International Group,
Inc............................................. 118,037 13,817,706
--------------
17,770,206
--------------
REAL ESTATE-2.5%
Entertainment Properties
Trust .......................................... 56,000 987,000
Humphrey Hospitality Trust,
Inc............................................. 99,100 802,091
JP Realty, Inc. ................................... 129,400 2,660,787
Koger Equity, Inc. ................................ 100,000 1,843,750
Macerich Co. ...................................... 42,500 1,115,625
Spieker Properties, Inc. .......................... 56,000 2,177,000
--------------
9,586,253
--------------
MISCELLANEOUS-8.6%
Associates First Capital Corp.
Cl.A ........................................... 117,000 5,184,563
Citigroup, Inc. ................................... 223,499 10,616,179
CompuCredit Corp. (a) ............................. 125,900 2,384,231
Household International, Inc. ..................... 62,000 2,937,250
MBNA Corp. ........................................ 381,975 11,697,984
--------------
32,820,207
--------------
93,707,954
--------------
B-12
<PAGE>
GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS
(continued) Alliance Variable Products Series Fund
================================================================================
Company Shares U.S. $ Value
- --------------------------------------------------------------------------------
CONSUMER SERVICES-13.0%
AIRLINES-1.9%
Continental Airlines, Inc.
Cl.B (a) ....................................... 83,000 $ 3,122,875
Delta Air Lines, Inc. ............................. 50,600 2,915,825
UAL Corp. (a) ..................................... 18,700 1,215,500
--------------
7,254,200
--------------
BROADCASTING &
CABLE-4.5%
AT&T Corp.-Liberty Media
Group Cl.A (a) ................................. 471,878 17,341,517
--------------
BUSINESS SERVICES-1.5%
Cendant Corp. (a) ................................. 280,050 5,741,025
--------------
ENTERTAINMENT &
LEISURE-1.0%
Royal Caribbean Cruises,
Ltd ........................................... 90,600 3,963,750
--------------
PRINTING &
PUBLISHING-0.7%
Readers Digest Association,
Inc. pfd ....................................... 75,000 2,775,000
--------------
RETAIL - GENERAL
MERCHANDISE-3.4%
Home Depot, Inc. .................................. 93,300 6,012,019
Tandy Corp. ....................................... 49,400 2,414,425
The Limited, Inc. ................................. 97,300 4,414,987
--------------
12,841,431
--------------
49,916,923
--------------
HEALTH CARE-5.9%
DRUGS-3.8%
Bristol-Myers Squibb Co. .......................... 98,000 6,902,875
Merck & Co., Inc. ................................. 61,800 4,573,200
Schering-Plough Corp. ............................. 50,000 2,650,000
SICOR, Inc.
3.75%, cv. pfd. (a) ............................ 8,000 198,520
--------------
14,324,595
--------------
MEDICAL PRODUCTS-0.3%
Medtronic, Inc. ................................... 15,200 1,183,700
--------------
MEDICAL SERVICES-1.8%
Health Management Associates,
Inc. Cl.A (a) .................................. 129,000 1,451,250
McKesson HBOC, Inc. ............................... 171,160 5,498,515
--------------
6,949,765
--------------
22,458,060
--------------
UTILITIES-5.8%
TELEPHONE UTILITIES-5.8%
MCI WorldCom, Inc. (a) ............................ 181,284 15,596,089
Pacific Gateway Exchange,
Inc. (a) ....................................... 95,600 2,778,375
Sprint Corp. ...................................... 71,000 3,749,688
--------------
22,124,152
--------------
BUSINESS SERVICES-4.3%
BROADCASTING &
CABLE-2.6%
CBS Corp. ......................................... 118,700 5,156,031
MediaOne Group, Inc. (a) .......................... 66,500 4,945,938
--------------
10,101,969
--------------
COMMERCIAL
SERVICES-1.1%
Nielsen Media Research,
Inc............................................. 142,100 4,156,425
--------------
PRINTING &
PUBLISHING-0.6%
News Corp., Ltd. (ADR)
(Australia) .................................... 60,800 2,147,000
--------------
16,405,394
--------------
CAPITAL GOODS-3.8%
MACHINERY-3.8%
Mannesmann AG
(German holding) ............................... 98,025 14,652,119
--------------
MULTI INDUSTRY
COMPANY-2.0%
Tyco International, Ltd. .......................... 81,572 7,728,947
--------------
ENERGY-1.3%
OIL SERVICES-1.3%
Kerr-McGee Corp. .................................. 42,000 2,107,875
Total Fina SA (ADR) ............................... 45,000 2,899,687
--------------
5,007,562
--------------
CONSUMER STAPLES-1.3%
FOOD & BEVERAGES-0.3%
Pepsi Bottling Group, Inc. ........................ 45,100 1,040,119
--------------
TOBACCO-1.0%
Philip Morris Cos., Inc. .......................... 98,000 3,938,375
--------------
4,978,494
--------------
CONSUMER
MANUFACTURING-0.3%
AUTO & RELATED-0.3%
Dana Corp. ........................................ 25,200 1,160,775
--------------
CONSUMER DURABLE
GOODS-0.3%
BUILDING & BUILDING
PRODUCTS-0.3%
Masco Corp. ....................................... 34,000 981,750
--------------
Total Common & Preferred
Stocks
(cost $254,000,706) ............................ 371,562,255
--------------
B-13
<PAGE>
Alliance Variable Products Series Fund
================================================================================
Principal
Amount
Company (000) U.S. $ Value
- --------------------------------------------------------------------------------
LONG-TERM DEBT
SECURITIES-1.5%
COMMUNICATIONS
EQUIPMENT-1.5%
Global TeleSystems Group, Inc.
5.75%, 7/01/10
(cost $2,891,553) .............................. $ 3,735 $ 5,877,956
--------------
SHORT-TERM
INVESTMENT-1.2%
U.S. GOVERNMENT &
AGENCIES-1.2%
Federal Home Loan Bank
4.47%, 7/01/99
(amortized cost
$4,400,000) .................................... 4,400 4,400,000
--------------
U.S. $ Value
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS-99.8%
(cost $261,292,259) ............................ $ 381,840,211
Other assets less
liabilities-0.2% ............................... 723,264
--------------
NET ASSETS-100% ................................... $ 382,563,475
==============
- --------------------------------------------------------------------------------
(a) Non-income producing security.
See Glossary of Terms on page B-39.
See Notes to Financial Statements.
B-14
<PAGE>
INTERNATIONAL PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1999 (unaudited) Alliance Variable Products Series Fund
================================================================================
Company Shares U.S. $ Value
- --------------------------------------------------------------------------------
COMMON & Preferred
STOCKS-93.3%
AUSTRALIA-2.0%
Coca Cola Amatil .................................. 99,400 $ 400,098
National Australia Bank, Ltd. ..................... 33,800 558,587
Telstra Corp., Ltd. ............................... 47,700 272,974
--------------
1,231,659
--------------
BRAZIL-0.4%
Telecomunicacoes Brasileiras,
SA (ADR) ....................................... 5,800 252,713
--------------
FINLAND-6.3%
Nokia Oyj Corp. Series A .......................... 44,400 3,890,429
--------------
FRANCE-12.6%
Cap Gemini SA ..................................... 6,000 942,609
Castorama Dubois Investisse ....................... 530 125,661
Sanofi, SA (a) .................................... 36,400 1,544,069
Schneider Electric, SA ............................ 14,610 820,056
SEITA ............................................. 24,140 1,393,545
Societe Generale .................................. 10,180 1,793,434
Total, SA Cl.B .................................... 9,050 1,167,082
--------------
7,786,456
--------------
GERMANY-4.1%
DaimlerChrysler AG ................................ 6,500 562,844
Hornbach Holding AG pfd ........................... 2,710 115,935
Mannesmann AG ..................................... 8,280 1,237,639
Wella AG pfd ...................................... 830 603,202
--------------
2,519,620
--------------
HONG KONG-1.5%
Cheung Kong Holdings, Ltd. ........................ 42,000 373,521
Citic Pacific, Ltd. ............................... 32,000 102,080
Sun Hung Kai Properties,
Ltd ............................................ 49,000 446,827
--------------
922,428
--------------
IRELAND-0.4%
CRH Plc (b) ....................................... 16,000 283,430
--------------
ITALY-2.0%
ENI SpA (b) ....................................... 86,000 513,301
Unicredito Italiano SpA ........................... 168,000 737,759
--------------
1,251,060
--------------
JAPAN-23.2%
Bank of Tokyo-Mitsubishi,
Ltd ............................................ 105,000 1,495,536
Bridgestone Corp. ................................. 27,000 816,897
Canon, Inc. ....................................... 14,000 402,744
Daito Trust Construction Co.,
Ltd ............................................ 48,700 543,482
Daiwa Securities Group, Inc. ...................... 149,000 985,368
Fuji Photo Film Co. ............................... 18,000 681,491
Honda Motor Co., Ltd. ............................. 8,000 339,258
Hoya Corp. ........................................ 10,000 564,603
Japan Tobacco, Inc. ............................... 91 1,008,019
Kao Corp. ......................................... 37,000 1,039,927
NTT Mobile Communications
Network, Inc. .................................. 17 230,470
New shares (a) ................................. 68 910,639
Santen Pharmaceutical Co.,
Ltd ............................................ 47,000 905,266
Shiseido Co., Ltd. ................................ 25,000 374,886
Sony Corp. ........................................ 4,800 517,814
Takeda Chemical Industries ........................ 19,000 881,128
TDK Corp. ......................................... 6,000 549,062
Tokyo Electron, Ltd. .............................. 12,000 814,417
Yamanouchi Pharmaceutical
Co., Ltd. ...................................... 34,000 1,301,314
--------------
14,362,321
--------------
NETHERLANDS-10.2%
Equant NV (a) ..................................... 8,700 818,888
ING Groep NV ...................................... 32,847 1,777,668
Koninklijke Ahold NV .............................. 43,096 1,483,812
United Pan-Europe
Communications NV (a) .......................... 18,670 1,012,338
Wolters Kluwer NV ................................. 31,500 1,253,411
--------------
6,346,117
--------------
SINGAPORE-0.2%
Development Bank of
Singapore ...................................... 12,000 146,651
--------------
SOUTH KOREA-1.1%
Korea Telecom Corp. (a) ........................... 9,636 385,440
SK Telecom Co., Ltd.
(ADR) .......................................... 16,000 272,000
--------------
657,440
--------------
SPAIN-5.3%
Banco Bilbao Vizcaya, SA .......................... 41,800 603,684
Repsol, SA ........................................ 16,200 330,656
Tabacalera, SA Series A ........................... 59,400 1,200,157
Telefonica, SA .................................... 23,816 1,146,765
--------------
3,281,262
--------------
SWEDEN-2.5%
AstraZeneca Group Plc ............................. 10,635 414,676
Autoliv, Inc. ..................................... 10,300 314,254
ForeningsSparbanken AB ............................ 56,550 799,387
--------------
1,528,317
--------------
SWITZERLAND-4.8%
ABB, Ltd. (a) ..................................... 2,700 254,357
Novartis AG ....................................... 515 751,752
UBS AG ............................................ 2,162 645,083
Zurich Allied AG .................................. 2,319 1,318,240
--------------
2,969,432
--------------
UNITED KINGDOM-16.7%
Bank of Scotland .................................. 112,303 1,501,995
British Airways Plc ............................... 73,900 510,204
Diageo Plc ........................................ 86,438 908,092
Dixons Group Plc .................................. 22,200 416,414
Misys Plc ......................................... 65,100 557,193
B-15
<PAGE>
Alliance Variable Products Series Fund
================================================================================
Company Shares U.S. $ Value
- --------------------------------------------------------------------------------
Next Plc .......................................... 42,800 $ 519,469
Orange Plc (a) .................................... 70,700 1,037,515
Royal Bank of Scotland Group
Plc ............................................ 77,200 1,581,925
Standard Chartered Plc ............................ 65,487 1,066,303
United News & Media Plc ........................... 120,500 1,158,623
Vodafone AirTouch Plc ............................. 55,258 1,087,013
--------------
10,344,746
--------------
Total Common & Preferred
Stocks
(cost $50,729,883) ............................. 57,774,081
--------------
Principal
Amount
(000) U.S. $ Value
- --------------------------------------------------------------------------------
SHORT-TERM
INVESTMENT-2.7%
TIME DEPOSIT-2.7%
State Street Bank Euro Dollar
4.50%, 7/01/99
(amortized cost
$1,672,000) .................................... $ 1,672 $ 1,672,000
--------------
TOTAL INVESTMENTS-96.0%
(cost $52,401,883) ............................. 59,446,081
Other assets less
liabilities-4.0% ............................... 2,502,566
--------------
NET ASSETS-100% ................................... $ 61,948,647
==============
- --------------------------------------------------------------------------------
(a) Non-income producing security.
(b) British Pound denominated security.
See Glossary of Terms on page B-39.
See Notes to Financial Statements.
B-16
<PAGE>
PREMIER GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1999 (unaudited) Alliance Variable Products Series Fund
================================================================================
Company Shares U.S. $ Value
- --------------------------------------------------------------------------------
COMMON STOCKS-96.4%
TECHNOLOGY-27.6%
COMMUNICATIONS
EQUIPMENT-11.2%
EMC Corp. (a) .................................... 878,800 $ 48,334,000
Lucent Technologies, Inc. ........................ 543,384 36,644,459
Nokia Corp. (ADR)
(Finland) ..................................... 1,177,000 107,769,062
------------
192,747,521
------------
COMPUTER
HARDWARE-5.6%
Dell Computer Corp. (a) .......................... 1,728,000 63,882,000
International Business
Machines Corp. ................................ 118,000 15,251,500
Sun Microsystems, Inc. (a) ....................... 246,000 16,950,937
------------
96,084,437
------------
COMPUTER SOFTWARE-1.8%
Microsoft Corp. (a) .............................. 347,400 31,309,425
------------
NETWORKING
SOFTWARE-5.1%
America Online, Inc. ............................. 112,900 12,475,450
Cisco Systems, Inc. (a) .......................... 1,180,600 76,038,019
------------
88,513,469
------------
SEMI-CONDUCTOR
COMPONENTS-3.5%
Intel Corp. ...................................... 879,200 52,284,925
Micron Technology, Inc. (a) ...................... 194,300 7,832,719
------------
60,117,644
------------
MISCELLANEOUS-0.4%
Solectron Corp. (a) .............................. 102,700 6,848,806
------------
475,621,302
------------
CONSUMER SERVICES-24.9%
AIRLINES-2.2%
Continental Airlines, Inc. (a) ................... 128,000 4,816,000
Delta Air Lines, Inc. ............................ 159,900 9,214,238
KLM Royal Dutch Air
(Netherlands) ................................. 125,776 3,592,477
Northwest Airlines Corp.
Cl.A, (a) ..................................... 251,260 8,150,246
UAL Corp. (a) .................................... 188,000 12,220,000
------------
37,992,961
------------
BROADCASTING &
CABLE-7.4%
AT&T Corp.-Liberty Media
Cl.A, (a) ..................................... 943,210 34,662,967
Chancellor Media Corp.
Cl.A, (a) ..................................... 97,400 5,366,131
Clear Channel
Communications (a) ............................ 175,400 12,091,638
MediaOne Group, Inc. (a) ......................... 649,300 48,291,687
Vodafone AirTouch PLC
(ADR) ......................................... 139,900 27,560,300
------------
127,972,723
------------
ENTERTAINMENT &
LEISURE-1.0%
Walt Disney Co. .................................. 584,700 18,016,069
------------
PRINTING &
PUBLISHING-0.4%
Gannett Co., Inc. ................................ 99,000 7,066,125
------------
RETAIL - GENERAL
MERCHANDISE-13.9%
Costco Cos., Inc. (a) ............................ 214,600 17,174,706
Dayton Hudson Corp. .............................. 497,300 32,324,500
Gap, Inc. ........................................ 542,550 27,330,956
Home Depot, Inc. ................................. 997,298 64,263,390
Kohl's Corp. (a) ................................. 268,600 20,732,563
Lowes Cos., Inc. ................................. 585,500 33,190,531
Wal-Mart Stores, Inc. ............................ 905,100 43,671,075
------------
238,687,721
------------
429,735,599
------------
FINANCE-16.7%
BANKING - MONEY
CENTERS-0.2%
Chase Manhattan Corp. ............................ 48,800 4,227,300
------------
BANKING - REGIONAL-1.8%
BankAmerica Corp. ................................ 289,567 21,228,880
Fifth Third Bancorp .............................. 84,200 5,607,194
U.S. Bancorp ..................................... 100,600 3,420,400
------------
30,256,474
------------
BROKERAGE & MONEY
MANAGEMENT-5.1%
Charles Schwab Corp. ............................. 59,000 6,482,625
Goldman Sachs Group,
Inc. (a) ...................................... 73,100 5,281,475
Merrill Lynch & Co., Inc. ........................ 223,900 17,898,006
Morgan Stanley,
Dean Witter & Co. ............................. 562,255 57,631,138
------------
87,293,244
------------
INSURANCE-2.4%
American International Group,
Inc ........................................... 122,775 14,372,348
Citigroup, Inc. .................................. 574,575 27,292,313
------------
41,664,661
------------
MORTGAGE BANKING-3.1%
Federal Home Loan Mortgage
Corp .......................................... 576,300 33,425,400
Federal National Mortgage
Assn .......................................... 219,500 15,008,313
Washington Mutual, Inc. .......................... 141,640 5,010,515
------------
53,444,228
------------
B-17
<PAGE>
Alliance Variable Products Series Fund
================================================================================
Company Shares U.S. $ Value
- --------------------------------------------------------------------------------
MISCELLANEOUS-4.1%
Associates First Capital Corp.
Cl.A .......................................... 268,056 $ 11,878,231
MBNA Corp. ....................................... 1,835,350 56,207,594
Newcourt Credit Group, Inc.
(Canada) ...................................... 141,200 1,826,775
------------
69,912,600
------------
286,798,507
------------
HEALTH CARE-10.7%
DRUGS-8.9%
Bristol-Myers Squibb Co. ......................... 448,600 31,598,262
Merck & Co., Inc. ................................ 243,400 18,011,600
Pfizer, Inc. ..................................... 334,400 36,700,400
Schering-Plough Corp. ............................ 882,900 46,793,700
Warner-Lambert Co. ............................... 286,300 19,862,063
------------
152,966,025
------------
MEDICAL SERVICES-1.8%
IMS Health, Inc. ................................. 432,400 13,512,500
Mckesson HBOC, Inc. .............................. 576,757 18,528,319
------------
32,040,819
------------
185,006,844
------------
CONSUMER STAPLES-5.4%
COSMETICS-0.5%
Gillette Co. ..................................... 197,500 8,097,500
------------
FOOD-0.3%
Coca-Cola Co. .................................... 69,600 4,350,000
------------
HOUSEHOLD
PRODUCTS-0.8%
Colgate-Palmolive Co. ............................ 136,500 13,479,375
------------
RETAIL - FOOD &
DRUGS-1.8%
Kroger Co. (a) ................................... 555,800 15,527,662
Safeway, Inc. (a) ................................ 244,000 12,078,000
Walgreen Co. ..................................... 145,000 4,259,375
------------
31,865,037
------------
TOBACCO-2.0%
Philip Morris Cos., Inc. ......................... 858,773 34,511,940
------------
92,303,852
------------
MULTI INDUSTRY
COMPANY-4.9%
Tyco International, Ltd. ......................... 895,962 84,892,399
------------
Shares or
Principal
Amount
Company (000) U.S. $ Value
- --------------------------------------------------------------------------------
UTILITY-3.3%
TELEPHONE UTILITY-3.3%
MCI WorldCom, Inc. (a) ........................... 662,219 56,971,528
--------------
CAPITAL GOODS-2.2%
ELECTRICAL
EQUIPMENT-0.7%
General Electric Co. ............................. 109,400 12,362,200
--------------
POLLUTION CONTROL-0.4%
Waste Management, Inc. ........................... 106,800 5,740,500
--------------
MISCELLANEOUS-1.1%
United Technologies Corp. ........................ 268,000 19,212,250
--------------
37,314,950
--------------
CONSUMER
MANUFACTURING-0.4%
AUTO & RELATED-0.4%
Ford Motor Co. ................................... 127,000 7,167,563
--------------
ENERGY-0.3%
OIL SERVICE-0.3%
Schlumberger, Ltd. ............................... 83,326 5,306,825
--------------
Total Common Stocks
(cost $1,156,349,252) ......................... 1,661,119,369
--------------
SHORT-TERM
INVESTMENT-3.6%
COMMERCIAL PAPER-3.6%
General Electric Capital Corp.
5.60%, 7/01/99
(amortized cost
$61,377,000) .................................. $ 61,377 61,377,000
--------------
TOTAL INVESTMENTS-100.0%
(cost $1,217,726,252) ......................... 1,722,496,369
Other assets less
liabilities-0.0% .............................. 327,380
--------------
NET ASSETS-100% .................................. $1,722,823,749
==============
- --------------------------------------------------------------------------------
(a) Non-income producing security.
See Glossary of Terms on page B-39.
See Notes to Financial Statements.
B-18
<PAGE>
QUASAR PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1999 (unaudited) Alliance Variable Products Series Fund
================================================================================
Company Shares U.S. $ Value
- --------------------------------------------------------------------------------
COMMON STOCKS-60.5%
CONSUMER PRODUCTS &
SERVICES-29.8%
AIRLINES-3.1%
Alaska Air Group, Inc. (a) ....................... 59,100 $ 2,467,425
America West Airlines, Inc.
Cl.B, (a) ...................................... 79,500 1,500,563
Atlas Air, Inc. (a) ............................... 17,900 577,275
--------------
4,545,263
--------------
BROADCASTING &
CABLE-1.0%
Citadel Communications
Corp. (a) ...................................... 17,500 633,828
Entercom Communications
Corp. (a) ...................................... 19,700 842,175
--------------
1,476,003
--------------
BUSINESS SERVICES-2.5%
Carey International, Inc. (a) ..................... 79,100 1,952,781
FirstService Corp. (a) ............................ 40,900 626,281
TeleSpectrum Worldwide,
Inc. (a) ....................................... 147,500 1,124,688
TeleTech Holdings, Inc. (a) ....................... 2,700 27,169
--------------
3,730,919
--------------
ENTERTAINMENT &
LEISURE-7.5%
Bally Total Fitness Holding
Corp. (a) ...................................... 59,000 1,674,125
Cinar Corp. Cl.B (ADR), (a) ....................... 36,700 906,031
Premier Parks, Inc. (a) ........................... 114,000 4,189,500
SFX Entertainment, Inc.
Cl.A ........................................... 30,000 1,920,000
Sunterra Corp. (a) ................................ 180,700 2,518,506
--------------
11,208,162
--------------
FUNERAL SERVICES-0.5%
Carriage Services, Inc.
Cl.A, (a) ...................................... 41,300 774,375
--------------
INDUSTRIAL
MACHINERY-1.2%
United Rentals, Inc. (a) .......................... 61,200 1,805,400
--------------
RESTAURANTS &
LODGING-0.8%
MeriStar Hospitality Corp. ........................ 51,900 1,164,506
--------------
RETAILING-11.8%
BJ's Wholesale Club, Inc. (a) ..................... 54,100 1,626,381
Circuit City Stores, Inc.
Car Max Group (a) .............................. 128,000 680,000
Furniture Brands International,
Inc. (a) ....................................... 33,900 944,963
Industrie Natuzzi SpA (ADR)
(Italy) ........................................ 59,000 1,146,812
Mens Wearhouse, Inc. (a) .......................... 53,950 1,385,841
Movado Group, Inc. ................................ 41,400 1,073,812
Reebok International,
Ltd. (a) ....................................... 600 11,175
Sports Authority, Inc. (a) ....................... 171,300 760,144
Stage Stores, Inc. (a) ............................ 124,000 806,000
Tiffany & Co. ..................................... 31,000 2,991,500
Transport World Entertainment
Corp. (a) ...................................... 53,750 601,328
Tweeter Home Entertainment
Group, Inc. (a) ................................ 11,300 441,406
Venator Group, Inc. (a) ........................... 233,200 2,434,025
Whole Foods Market,
Inc. (a) ....................................... 14,300 686,847
Women First HealthCare,
Inc. (a) ....................................... 17,200 230,050
Zale Corp. (a) .................................... 42,800 1,712,000
--------------
17,532,284
--------------
MISCELLANEOUS-1.4%
Century Business Services,
Inc. (a) ....................................... 101,400 1,463,962
Imax Corp. (a) .................................... 15,100 341,638
Playtex Products, Inc. (a) ....................... 17,800 277,013
--------------
2,082,613
--------------
44,319,525
--------------
TECHNOLOGY-10.0%
COMMUNICATIONS
EQUIPMENT-1.0%
Juniper Networks, Inc. ............................ 800 119,325
Pinnacle Holdings, Inc. (a) ....................... 41,000 1,001,938
Tekelec (a) ....................................... 35,200 430,100
--------------
1,551,363
--------------
COMPUTER HARDWARE-1.7%
Apex PC Solutions, Inc. (a) ....................... 84,000 1,719,375
MIPS Technologies, Inc. (a) ....................... 16,000 766,000
--------------
2,485,375
--------------
COMPUTER SOFTWARE &
SERVICES-2.7%
DBT Online, Inc. (a) .............................. 51,800 1,696,450
IMRglobal Corp. (a) ............................... 25,100 484,744
Insight Enterprises, Inc. (a) ..................... 32,900 813,247
New Era of Networks,
Inc. (a) ....................................... 11,800 518,093
Sapient Corp. ..................................... 800 45,375
Stamps.com, Inc. .................................. 2,000 35,125
TenFold Corp. (a) ................................. 12,600 396,900
--------------
3,989,934
--------------
INDUSTRIAL
MACHINERY-0.4%
Applied Power, Inc. Cl.A .......................... 23,900 652,769
--------------
B-19
<PAGE>
Alliance Variable Products Series Fund
================================================================================
Company Shares U.S. $ Value
- --------------------------------------------------------------------------------
NETWORKING
SOFTWARE-0.6%
BackWeb Technologies,
Ltd. (a) ....................................... 23,600 $ 643,100
CareInsite, Inc. (a) .............................. 4,000 189,750
Software.com, Inc. (a) ............................ 4,500 104,484
--------------
937,334
--------------
SEMI-CONDUCTOR
EQUIPMENT-0.8%
MKS Instruments, Inc. (a) ......................... 29,800 555,956
SDL, Inc. (a) ..................................... 11,400 582,469
--------------
1,138,425
--------------
TELECOMMUNICATIONS-1.9%
GST Telecommunications,
Inc. (a) ....................................... 51,800 681,494
Millicom International Cellular,
SA (Luxembourg), (a) ........................... 50,900 1,609,712
RCN Corp. (a) ..................................... 12,500 520,703
--------------
2,811,909
--------------
MISCELLANEOUS-0.9%
Excalibur Technologies
Corp. (a) ...................................... 33,500 478,422
Harman International
Industries, Inc. ............................... 15,700 690,800
Network Plus Corp. (a) ............................ 3,600 75,262
Orbital Sciences Corp. (a) ....................... 700 16,538
--------------
1,261,022
--------------
14,828,131
--------------
FINANCIAL
SERVICES-7.0%
BROKERAGE & MONEY
MANAGEMENT-3.1%
Legg Mason, Inc. .................................. 119,400 4,596,900
--------------
INSURANCE-0.1%
Reinsurance Group of America,
Inc............................................. 3,450 121,613
--------------
REAL ESTATE-3.6%
Chelsea GCA Realty, Inc. .......................... 89,300 3,315,262
Golf Trust of America, Inc. ....................... 1,300 31,769
Taubman Centers, Inc. ............................. 151,100 1,992,631
--------------
5,339,662
--------------
MISCELLANEOUS-0.2%
Cash America International,
Inc............................................. 27,600 355,350
--------------
10,413,525
--------------
HEALTH CARE-4.3%
BIOTECHNOLOGY-1.2%
GelTex Pharmaceuticals,
Inc. (a) ....................................... 60,410 1,085,492
Human Genome Sciences,
Inc. (a) ....................................... 18,300 721,707
--------------
1,807,199
--------------
DRUGS, HOSPITAL
SUPPLIES & MEDICAL
SERVICES-3.1%
LifePoint Hospitals, Inc. (a) ..................... 106,200 1,423,744
Novoste Corp. (a) ................................. 40,800 855,525
Orthodontic Centers of America,
Inc. (a) ....................................... 49,900 704,837
St. Jude Medical, Inc. (a) ....................... 21,700 773,062
Synetic, Inc. (a) ................................. 12,500 859,766
--------------
4,616,934
--------------
6,424,133
--------------
BASIC INDUSTRIES-4.2%
BUILDING & RELATED-0.0%
Associate Materials, Inc. ......................... 2,000 27,000
--------------
METAL HARDWARE-0.5%
Bethlehem Steel Corp. (a) ......................... 104,500 803,344
--------------
TEXTILE PRODUCTS-1.9%
Mohawk Industries, Inc. (a) ....................... 91,950 2,792,981
--------------
TRANSPORTATION &
SHIPPING-1.8%
Consolidated Freightways
Corp. (a) ...................................... 130,300 1,673,541
Teekay Shipping Corp. ............................. 58,300 1,027,537
--------------
2,701,078
--------------
6,324,403
--------------
CONSUMER
MANUFACTURING-4.0%
AUTO & RELATED-4.0%
Budget Group, Inc. Cl.A, (a) ...................... 73,500 904,969
Dollar Thrifty Automotive
Group, Inc. (a) ................................ 44,300 1,029,975
Group 1 Automotive, Inc. (a) ...................... 83,400 1,761,825
Monaco Coach Corp. (a) ............................ 52,200 2,208,713
--------------
5,905,482
--------------
ENERGY-1.2%
OIL & GAS SERVICES-1.2%
Evergreen Resources,
Inc. (a) ....................................... 5,100 128,616
Southern Union Co. ................................ 75,426 1,640,515
--------------
1,769,131
--------------
Total Common Stocks
(cost $82,157,305) ............................. 89,984,330
--------------
B-20
<PAGE>
QUASAR PORTFOLIO
PORTFOLIO OF INVESTMENTS
(continued) Alliance Variable Products Series Fund
================================================================================
Principal
Amount
(000) U.S. $ Value
- --------------------------------------------------------------------------------
SHORT-TERM
INVESTMENTS-39.5%
U.S. GOVERNMENT &
AGENCIES-37.3%
Federal Home Loan Bank
4.60%, 7/01/99 ................................. $48,400 $ 48,400,000
Federal Home Loan Mortgage
Corp
4.97%, 7/01/99 ................................. 7,000 7,000,000
--------------
55,400,000
--------------
TIME DEPOSIT-2.2%
State Street Bank Euro Dollar
4.50%, 7/01/99 ................................. $ 3,264 $ 3,264,000
--------------
Total Short-Term Investments
(amortized cost
$58,664,000) ................................... 58,664,000
--------------
TOTAL INVESTMENTS-100.0%
(cost $140,821,305) ............................ 148,648,330
Other assets less
liabilities-0.0% ............................... 15,697
--------------
NET ASSETS-100% ................................... $ 148,664,027
==============
- --------------------------------------------------------------------------------
(a) Non-income producing security.
See Glossary of Terms on page B-39.
See Notes to Financial Statements.
B-21
<PAGE>
REAL ESTATE INVESTMENT PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1999 (unaudited) Alliance Variable Products Series Fund
================================================================================
Company Shares U.S. $ Value
- --------------------------------------------------------------------------------
COMMON STOCKS-96.2%
REAL ESTATE INVESTMENT
TRUSTS-96.2%
APARTMENTS-8.7%
Apartment Investment &
Management Co. ................................. 11,200 $ 478,800
Avalon Bay Communities,
Inc. ........................................... 19,334 715,358
Essex Property Trust, Inc. ........................ 14,300 505,863
--------------
1,700,021
--------------
DIVERSIFIED-14.9%
Captec Net Lease Realty,
Inc. ........................................... 6,800 92,013
Correctional Properties Trust ..................... 28,600 450,450
Entertainment Properties
Trust .......................................... 30,100 530,512
Glenborough Realty Trust,
Inc ............................................ 33,200 581,000
Golf Trust of America, Inc. ....................... 18,200 444,762
Mission West Properties, Inc. ..................... 15,000 123,750
Vornado Realty Trust .............................. 19,500 688,594
--------------
2,911,081
--------------
HOTELS &
RESTAURANTS-8.2%
Hospitality Properties Trust ...................... 14,300 387,887
Innkeepers USA Trust .............................. 36,400 364,000
MeriStar Hospitality Corp. ........................ 28,878 647,950
Starwood Hotels & Resorts ......................... 4,000 122,250
Wyndham International,
Inc. (a) ....................................... 18,469 83,111
--------------
1,605,198
--------------
MANUFACTURED HOME
COMMUNITIES-2.3%
Sun Communities, Inc. ............................. 12,400 440,200
--------------
OFFICE-22.4%
Alexandria Real Estate
Equities, Inc. ................................. 13,800 431,250
Arden Realty Group, Inc. .......................... 19,400 477,725
Boston Properties, Inc. ........................... 15,100 541,713
Cornerstone Properties, Inc. ...................... 51,100 811,212
Crescent Real Estate Equities
Co ............................................. 21,800 517,750
Equity Office Properties
Trust .......................................... 36,400 932,750
SL Green Realty Corp. ............................. 32,700 668,306
--------------
4,380,706
--------------
Shares or
Principal
Amount
Company (000) U.S. $ Value
- -------------------------------------------------------------------------------
OFFICE - INDUSTRIAL
MIX-11.7%
Brandywine Realty Trust ........................... 26,800 $ 530,975
Great Lakes REIT, Inc. ............................ 4,700 76,375
Highwoods Properties, Inc. ........................ 18,000 493,875
Reckson Associates Realty
Corp ........................................... 26,500 622,750
Spieker Properties, Inc. .......................... 14,500 563,687
--------------
2,287,662
--------------
REGIONAL MALLS-6.3%
Macerich Co. ...................................... 22,800 598,500
Mills Corp. ....................................... 29,400 637,613
--------------
1,236,113
--------------
SHOPPING CENTERS-11.2%
Burnham Pacific Properites,
Inc. ........................................... 14,200 174,838
Pan Pacific Retail Properties,
Inc............................................. 42,400 821,500
Prime Retail, Inc. ................................ 57,900 503,006
Ramco-Gershenson Properties
Trust .......................................... 18,000 292,500
Regency Reality Corp. ............................. 18,120 397,507
--------------
2,189,351
--------------
STORAGE-3.7%
Public Storage, Inc. .............................. 26,100 730,800
--------------
WAREHOUSE &
INDUSTRIAL-6.8%
AMB Property Corp. ................................ 7,200 169,200
Cabot Industrial Trust ............................ 25,100 533,375
ProLogis Trust .................................... 30,800 623,700
--------------
1,326,275
--------------
Total Common Stocks
(cost $20,220,602) ............................. 18,807,407
--------------
SHORT-TERM
INVESTMENT-3.9%
TIME DEPOSIT-3.9%
State Street Bank Euro Dollar
4.50%, 7/01/99
(amortized cost $761,000) ...................... $ 761 761,000
--------------
TOTAL INVESTMENTS-100.1%
(cost $20,981,602) ............................. 19,568,407
Other assets less
liabilities-(0.1%) ............................. (27,111)
--------------
NET ASSETS-100% ................................... $ 19,541,296
==============
- --------------------------------------------------------------------------------
(a) Non-income producing security.
See Glossary of Terms on page B-39.
See Notes to Financial Statements.
B-22
<PAGE>
TECHNOLOGY PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1999 (unaudited) Alliance Variable Products Series Fund
================================================================================
Company Shares U.S. $ Value
- --------------------------------------------------------------------------------
COMMON STOCKS-93.2%
TECHNOLOGY-89.1%
COMMUNICATIONS
EQUIPMENT-10.3%
Amdocs, Ltd (a) ................................... 174,400 $ 3,967,600
Juniper Networks, Inc. (a) ....................... 1,600 238,650
Lucent Technologies, Inc. ......................... 117,600 7,930,650
Nokia Corp. (ADR)
(Finland) ...................................... 80,600 7,379,937
--------------
19,516,837
--------------
COMPUTER HARDWARE-9.3%
Apex PC Solutions, Inc. (a) ....................... 56,850 1,163,649
Compaq Computer Corp. ............................. 106,700 2,527,456
Dell Computer Corp. (a) ........................... 222,300 8,218,153
International Business
Machines Corp. ................................. 43,900 5,674,075
--------------
17,583,333
--------------
COMPUTER PERIPHERALS-2.8%
Lexmark International Group,
Inc.(a) ........................................ 80,600 5,324,638
--------------
COMPUTER SERVICES-17.6%
Ceridian Corp. (a) ................................ 135,900 4,442,231
Computer Sciences Corp. ........................... 75,200 5,202,900
Convergys Corp. (a) ............................... 36,300 698,775
DST Systems, Inc. (a) ............................. 62,125 3,906,109
First Data Corp. .................................. 104,500 5,113,969
Fiserv, Inc. (a) .................................. 105,450 3,305,199
Galileo International, Inc. ....................... 75,100 4,013,156
Gartner Group, Inc. Cl.A, (a) ..................... 41,000 840,500
Sabre Group Holdings, Inc.
Cl.A, (a) ...................................... 34,700 2,385,625
SunGard Data Systems,
Inc. (a) ....................................... 95,400 3,291,300
--------------
33,199,764
--------------
COMPUTER SOFTWARE-8.7%
BEA Systems, Inc. (a) ............................. 40,000 1,143,750
Descartes Systems Group,
Inc. (Canada) (a) .............................. 11,100 56,194
DoubleClick, Inc. (a) ............................. 38,500 3,523,953
I2 Technologies, Inc. (a) ......................... 30,000 1,291,875
Interplay Entertainment
Corp. (a) ...................................... 33,000 85,078
Microsoft Corp. (a) ............................... 62,000 5,587,750
Mindspring Enterprises,
Inc. (a) ....................................... 38,000 1,683,875
New Era of Networks,
Inc. (a) ....................................... 39,400 1,729,906
Rational Software Corp. (a) ....................... 40,900 1,348,422
--------------
16,450,803
--------------
NETWORKING
SOFTWARE-10.1%
America Online, Inc. .............................. 70,250 7,762,625
Cisco Systems, Inc. (a) ........................... 174,200 11,219,569
--------------
18,982,194
--------------
SEMI-CONDUCTOR
CAPITAL EQUIPMENT-7.1%
Amkor Technology, Inc. (a) ....................... 69,100 706,116
Applied Materials, Inc. (a) ....................... 82,900 6,121,647
KLA-Tencor Corp. (a) .............................. 45,500 2,950,390
Teradyne, Inc. (a) ................................ 50,700 3,637,725
--------------
13,415,878
--------------
SEMI-CONDUCTOR
COMPONENTS-12.7%
Altera Corp. (a) .................................. 110,000 4,045,938
Intel Corp. ....................................... 72,400 4,305,537
Micron Technology, Inc. (a) ....................... 29,700 1,197,281
PMC-Sierra, Inc. (a) .............................. 65,000 3,832,969
Texas Instruments, Inc. ........................... 37,400 5,423,000
Xilinx, Inc. (a) .................................. 90,900 5,206,866
--------------
24,011,591
--------------
MISCELLANEOUS-10.5%
Ingram Micro, Inc. Cl.A, (a) ...................... 74,100 1,908,075
Jabil Circuit, Inc. (a) ........................... 35,000 1,579,375
Network Plus Corp. (a) ............................ 7,000 146,344
Sanmina Corp. (a) ................................. 93,750 7,113,281
Solectron Corp. (a) ............................... 136,700 9,116,181
--------------
19,863,256
--------------
168,348,294
--------------
UTILITY-1.9%
TELEPHONE UTILITY-1.9%
MCI WorldCom, Inc. (a) ............................ 42,400 3,647,725
--------------
CONSUMER SERVICES-1.3%
RETAIL - GENERAL
MERCHANDISE-0.9%
Tandy Corp. ....................................... 33,600 1,642,200
--------------
MISCELLANEOUS-0.4%
Equifax, Inc. ..................................... 20,000 713,750
--------------
2,355,950
--------------
HEALTH CARE-0.9%
MEDICAL SERVICES-0.9%
Mckesson HBOC, Inc. ............................... 50,824 1,632,721
--------------
Total Common Stocks
(cost $110,547,953) ............................ 175,984,690
--------------
B-23
<PAGE>
Alliance Variable Products Series Fund
================================================================================
Principal
Amount
(000) U.S. $ Value
- -------------------------------------------------------------------------------
SHORT-TERM
INVESTMENT-7.4%
TIME DEPOSIT-7.4%
State Street Bank Euro Dollar
4.50%, 7/01/99
(amortized cost
$13,949,000) ................................ $ 13,949 $ 13,949,000
---------------
U.S. $ Value
- -------------------------------------------------------------------------------
TOTAL INVESTMENTS-100.6%
(cost $124,496,953) ......................... $ 189,933,690
Other assets less
liabilities-(0.6%) .......................... (1,058,799)
---------------
NET ASSETS-100% ................................ $ 188,874,891
===============
- --------------------------------------------------------------------------------
(a) Non-income producing security.
See Glossary of Terms on page B-39.
See Notes to Financial Statements.
B-24
<PAGE>
UTILITY INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1999 (unaudited) Alliance Variable Products Series Fund
================================================================================
Company Shares U.S. $ Value
- -------------------------------------------------------------------------------
COMMON & PREFERRED
STOCKS-86.9%
UNITED STATES
INVESTMENTS-76.7%
UTILITIES-56.6%
ELECTRIC & GAS
UTILITIES-26.4%
AGL Resources, Inc. ............................ 6,100 $ 112,469
American Electric Power,
Inc.......................................... 16,900 634,806
CINergy Corp. .................................. 22,100 707,200
CMS Energy Corp. ............................... 18,400 770,500
Consolidated Edison, Inc. ...................... 35,700 1,615,425
DPL, Inc. ...................................... 21,000 385,875
FPL Group, Inc. ................................ 10,200 557,175
GPU, Inc. ...................................... 36,000 1,518,750
Illinova Corp. ................................. 28,000 763,000
KeySpan Energy Corp. (a) ....................... 4,600 121,325
MCN Corp. ...................................... 4,600 95,450
New Jersey Resources Corp. ..................... 4,400 164,725
Nisource, Inc. ................................. 56,200 1,639,163
Northwest Natural Gas Co. ...................... 5,250 126,328
People's Energy Corp. .......................... 3,600 135,675
Pinnacle West Capital Corp. .................... 19,000 764,750
Questar Corp. .................................. 7,000 133,875
Reliant Energy Inc. ............................ 23,000 635,375
Sempra Energy .................................. 6,165 139,483
---------------
11,021,349
---------------
TELEPHONE UTILITIES-30.2%
Ameritech Corp. ................................ 27,200 1,999,200
AT&T Corp. ..................................... 36,361 2,029,398
Bell Atlantic Corp. ............................ 12,800 836,800
BellSouth Corp. ................................ 38,200 1,790,625
Frontier Corp. ................................. 21,000 1,239,000
GTE Corp. ...................................... 20,500 1,552,875
MCI WorldCom, Inc. (a) ......................... 24,000 2,064,750
Telephone and Data Systems,
Inc.......................................... 6,000 438,375
US West Communications
Group ....................................... 10,800 634,500
---------------
12,585,523
---------------
23,606,872
---------------
CONSUMER SERVICES-10.3%
BROADCASTING &
CABLE-10.3%
Cablevision Systems Corp.
Series I 8.50% cv. pfd ...................... 10,000 1,080,000
Comcast Corp. Cl.A ............................. 18,000 691,875
MediaOne Group, Inc. ........................... 21,400 1,936,700
Omnipoint Corp.
7.00% cv. pfd. (a)(b) ....................... 11,000 598,125
---------------
4,306,700
---------------
ENERGY-6.5%
DOMESTIC PRODUCERS-2.6%
The Williams Cos., Inc.
3.50% pfd ................................... 4,700 942,937
Washington Gas Light Co. ....................... 5,600 145,600
---------------
1,088,537
---------------
PIPELINES-1.5%
Enron Corp. .................................... 5,800 474,150
Piedmont Natural Gas Co.,
Inc.......................................... 5,100 158,738
---------------
632,888
---------------
MISCELLANEOUS-2.4%
AES Corp. (a) .................................. 17,200 999,750
---------------
2,721,175
---------------
MULTI-INDUSTRY
COMPANIES-1.9%
Montana Power Co. .............................. 5,600 394,800
Southwest Gas Corp. ............................ 7,000 200,375
Wicor, Inc. .................................... 7,000 195,562
---------------
790,737
---------------
TECHNOLOGY-1.4%
COMMUNICATION
EQUIPMENT-1.4%
NTL, Inc. (a) .................................. 4,172 359,705
PairGain Technologies,
Inc. (a) .................................... 17,000 196,031
---------------
555,736
---------------
Total United States Investments
(cost $22,124,884) .......................... 31,981,220
---------------
FOREIGN
INVESTMENTS-10.2%
ARGENTINA-1.6%
Telecom Argentina, SA .......................... 11,500 307,625
Telefonica De Argentina ........................ 11,500 360,812
---------------
668,437
---------------
BRAZIL-0.3%
Celular CRT Participacoes,
SA (a) ...................................... 129,000 17,487
Companhia Energetica de
Minas Gerais (ADR) .......................... 1,958 40,862
Companhia Paranaense de
Energia-Copel pfd. (ADR) .................... 4,700 39,362
Companhia Riograndense de
Telecom pfd ................................. 129,000 31,294
---------------
129,005
---------------
CANADA-2.0%
BCE, Inc. ...................................... 16,700 823,519
---------------
FINLAND-2.2%
Nokia Corp. (ADR) .............................. 10,000 915,625
---------------
B-25
<PAGE>
Alliance Variable Products Series Fund
================================================================================
Company Shares U.S. $ Value
- -------------------------------------------------------------------------------
MEXICO-2.4%
Telefonos de Mexico, SA
Series L (ADR) .............................. 12,400 $ 1,002,075
---------------
PERU-0.2%
Telefonica del Peru, SA Cl.B ................... 62,000 93,209
---------------
PHILIPPINES-0.4%
Philippine Long Distance
Telephone Co. Series III
3.50% cv.pfd. (ADR) ......................... 6,000 180,750
---------------
SOUTH KOREA-1.1%
Korea Electric Power Corp. ..................... 4,020 167,051
SK Telecom Co., Ltd. (ADR) .................... 15,701 266,923
---------------
433,974
---------------
Total Foreign Investments
(cost $2,928,735) ........................... 4,246,594
---------------
Total Common & Preferred
Stocks
(cost $25,053,619) .......................... 36,227,814
---------------
Principal
Amount
(000) U.S. $ Value
- -------------------------------------------------------------------------------
SHORT-TERM
INVESTMENT-13.2%
TIME DEPOSIT-13.2%
State Street Bank Euro Dollar
4.50%, 7/01/99
(amortized cost
$5,499,000) ................................. $ 5,499 $ 5,499,000
---------------
TOTAL INVESTMENTS-100.1%
(cost $30,552,619) .......................... 41,726,814
Other assets less
liabilities-(0.1%) .......................... (41,361)
---------------
NET ASSETS-100% ................................ $ 41,685,453
===============
- --------------------------------------------------------------------------------
(a) Non-income producing security.
(b) 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, 1999, the
aggregate market value of this security amounted to $598,125 or 1.4% of
net assets.
See Glossary of Terms on page B-39.
See Notes to Financial Statements.
B-26
<PAGE>
WORLDWIDE PRIVATIZATION PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1999 (unaudited) Alliance Variable Products Series Fund
================================================================================
Company Shares U.S. $ Value
- -------------------------------------------------------------------------------
COMMON STOCKS & OTHER
INVESTMENTS-95.9%
ARGENTINA-0.7%
Nortel Inversora, SA Series B
pfd. (ADR) (a) .............................. 18,800 $ 326,650
---------------
AUSTRALIA-1.6%
Commonwealth Serum Lab,
Ltd ......................................... 63,400 546,514
TAB Corp. Holdings, Ltd. ....................... 31,600 212,652
---------------
759,166
---------------
AUSTRIA-3.1%
Austria Tabakwerke AG .......................... 9,653 562,220
Bank Austria AG ................................ 16,680 876,924
---------------
1,439,144
---------------
BRAZIL-5.3%
Bardella Industrias Mecanicas,
SA pfd. (a) ................................. 1,650 46,597
Celese Centrais Eletrais de
Santa Catarina, SA
Cl.B pfd. (a) ............................... 455,001 174,753
Celular CRT Participacoes,
SA (a) ...................................... 645,734 61,580
Companhia Paranaense de
Energia-Copel (ADR) ......................... 44,000 368,500
Companhia Paulista de Forca e
Luz pfd ..................................... 1,591 98
Companhia Riograndense de
Telecom Cl.A pfd ............................ 454,282 110,203
Companhia Vale do Rio Doce
PNB (receipts) .............................. 2,360 0
Embratel Participacoes, SA
(ADR) (a) ................................... 13,000 180,375
Espirito Santo Centrais
Electricas, SA .............................. 324 11,899
Gerdau, SA pfd ................................. 24,114,144 401,789
Iven, SA pfd. (a)(b) ........................... 681,300 88,505
Metalurgica Gerdau, SA (b) .................... 419,660 9,481
pfd ......................................... 14,360,043 433,924
Tele Sudeste Celular
Participacoes, SA
(ADR) (a) ................................... 5,300 153,700
Telesp Participacoes, SA
(ADR) (a) ................................... 16,000 366,000
---------------
2,407,404
---------------
CHILE-0.3%
Companhia de
Telecomunicaciones de
Chile, SA (ADR) ............................. 6,000 148,500
---------------
CROATIA-0.5%
Pliva D.D. (GDR) ............................... 14,200 213,710
---------------
CYPRUS-0.2%
Premier Telesports, Ltd. (a)(b) ................ 6,600 54,429
Primamedic, Ltd. (a)(b) ........................ 129,000 37,234
---------------
91,663
---------------
CZECH REPUBLIC-0.9%
Ceske Radiokomunikace
AS (a) ...................................... 9,561 332,231
Tabak AS ....................................... 330 78,474
---------------
410,705
---------------
EGYPT-0.7%
Commercial International
Bank ........................................ 10,000 89,806
Egypt Mobile Phone
non-tradeable receipts (a) .................. 8,340 187,992
Madinet NASR City for
Housing & Development ....................... 4,740 53,054
---------------
330,852
---------------
FINLAND-1.0%
Merita OYJ, Plc Series A (a) ................... 84,200 478,255
---------------
FRANCE-8.1%
Aerospatiale Matra (a) ......................... 3,950 91,006
CNP Assurances (a) ............................. 17,950 490,164
Sanofi, SA (a) ................................. 20,920 887,416
SEITA .......................................... 13,030 752,191
Societe Generale ............................... 3,671 646,728
Societe National Elf
Aquitaine ................................... 5,710 837,600
---------------
3,705,105
---------------
GERMANY-2.8%
MVV Energie AG (a) ............................. 25,550 402,975
Stinnes AG (a) ................................. 28,400 442,070
Viag AG ........................................ 900 424,916
---------------
1,269,961
---------------
GREECE-0.5%
Heracles General Cement,
SA .......................................... 7,900 211,290
---------------
HONG KONG-1.4%
China Telecom (a) .............................. 100,000 277,756
Ng Fung Hong Ltd. .............................. 342,000 284,317
Shandong International Power
Development Co., Ltd.
Cl.H (a) .................................... 395,000 91,131
---------------
653,204
---------------
HUNGARY-1.1%
Magyar Olaj-es Gazipari
Reszvenytar ................................. 14,100 339,499
OTP Bank (GDR) ................................. 3,930 161,130
---------------
500,629
---------------
INDIA-1.2%
Industrial Credit & Investment
Corp. (GDR) (a) ............................. 23,000 232,300
Mahanagar Telephone Nigam,
Ltd. (GDR) .................................. 19,600 192,080
Videsh Sanchar Nigam, Ltd.
(GDR) (c) ................................... 11,900 150,237
---------------
574,617
---------------
B-27
<PAGE>
Alliance Variable Products Series Fund
================================================================================
Company Shares U.S. $ Value
- -------------------------------------------------------------------------------
INDONESIA-0.2%
PT Tambang Timah (GDR) ......................... 12,800 $ 113,280
---------------
ISRAEL-0.6%
Bank Hapoalim, Ltd. ............................ 100,000 256,470
---------------
ITALY-5.3%
Banca Nazionale del
Lavoro (a) .................................. 203,300 639,194
Ente Nazionale Idrocarburi
SpA (a) ..................................... 189,400 694,742
Istituto Bancario San Paolo di
Torini ...................................... 104 1,415
Monte dei Paschi di Siena
SpA (a) ..................................... 75,000 332,449
Telecom Italia Mobile di Risp
SpA ......................................... 90,000 331,212
Telecom Italia SpA (a) ......................... 77,000 417,515
---------------
2,416,527
---------------
JAPAN-12.5%
Daiwa Securities Co., Ltd. ..................... 150,000 991,982
East Japan Railway Co. ......................... 82 440,605
Japan Tobacco, Inc. ............................ 127 1,406,795
Nippon Telegraph & Telephone,
Corp ........................................ 99 1,153,923
Nomura Securities Co., Ltd. .................... 56,000 655,964
NTT Mobile Communications
Network, Inc. (a) ........................... 65 872,613
West Japan Railway ............................. 58 222,468
---------------
5,744,350
---------------
MALAYSIA-0.6%
Telekom Malaysia Berhad ........................ 78,600 264,483
---------------
MALTA-0.3%
Maltacom Plc (GDR) (a) ......................... 7,000 124,250
---------------
MEXICO-5.1%
Grupo Financiero Banorte,
SA de CV Cl.B (a) ........................... 617,200 903,124
Telefonos de Mexico, SA
Cl.L (ADR) .................................. 13,200 1,066,725
Tubos de Acero de Mexico,
SA (ADR) .................................... 33,000 358,875
---------------
2,328,724
---------------
NETHERLANDS-10.4%
Akzo Nobel NV .................................. 20,000 841,174
Equant NV (a) .................................. 9,430 887,599
ING Groep NV ................................... 18,423 997,046
ST Microelectronics NV ......................... 14,400 958,938
---------------
United Pan-Europe
Communications NV (a) ....................... 20,200 1,095,299
---------------
4,780,056
---------------
NORWAY-0.4%
Christiana Bank OG
Kreditkasse ................................. 47,500 170,579
---------------
PEOPLES REPUBLIC OF
CHINA-0.8%
Beijing Datang Power
Generation Co., Ltd. Cl.H ................... 500,000 161,111
Yanzhou Coal Mining Co.,
Ltd. Cl.H ................................... 542,000 193,856
---------------
354,967
---------------
PERU-0.6%
Cementos Norte Pacasmayo,
SA Cl.C (a) ................................. 74,796 97,633
Explosivios, SA Cl.C (a)(b) .................... 134,976 115,434
Ferreyros, SA .................................. 112,642 74,024
---------------
287,091
---------------
PHILIPPINES-1.0%
International Container
Terminal Services, Inc. (a) ................. 216,578 28,175
Manila Electric Co. Series B ................... 51,300 184,707
Philippine Long Distance
Telephone Co. ............................... 7,440 226,817
---------------
439,699
---------------
POLAND-1.6%
Kredyt Bank PBI, SA
(GDR) (a) (c) ............................... 12,000 288,000
Orbis, SA (a) .................................. 30,300 249,975
Powszechny Bank Kredytowy,
SA (GDR) (a) ................................ 8,100 198,450
---------------
736,425
---------------
PORTUGAL-1.0%
Electricidade de Portugal,
SA .......................................... 14,000 251,981
Soporcel Sociedade Portuguesa
de Papel, SA ................................ 19,600 201,036
---------------
453,017
---------------
RUSSIA-1.2%
Gazprom (ADR) (a)(c) ........................... 8,000 90,000
Lukoil Holdings (ADR) .......................... 6,770 268,092
Sberbank of Russia (a) ......................... 1,907 77,329
Sun Interbrew, Ltd.
(GDR) Voting shares (a)(b)(c) ............... 10,400 50,922
(GDR) Cl.A Non voting
shares (a)(b)(c) ............................ 14,200 36,978
---------------
523,321
---------------
SINGAPORE-1.2%
Development Bank of
Singapore, Ltd. ............................. 44,000 537,720
---------------
SOUTH AFRICA-0.3%
Iscor, Ltd. (a) ................................ 450,071 140,974
---------------
B-28
<PAGE>
WORLDWIDE PRIVATIZATION PORTFOLIO
PORTFOLIO OF INVESTMENTS
(continued) Alliance Variable Products Series Fund
================================================================================
Company Shares U.S. $ Value
- -------------------------------------------------------------------------------
SOUTH KOREA-5.0%
Housing & Commercial
Bank (a) .................................... 7,300 $ 230,194
Korea Electric Power Corp. ..................... 11,000 457,106
Korea Telecom Corp.
(ADR) (a) ................................... 10,064 402,560
Pohang Iron & Steel Co., Ltd. .................. 4,980 598,267
SK Telecom Co., Ltd. (ADR) .................... 19,924 575,089
rights, expiring 7/26/99 .................... 40 21,011
---------------
2,284,227
---------------
SPAIN-5.2%
Aldeasa, SA (a) ................................ 21,000 581,029
Argentaria, SA ................................. 21,400 486,427
Indra Sistemas, SA ............................. 35,000 377,034
Repsol, S ...................................... 21,150 431,689
Tabacalera, SA Cl.A ............................ 24,300 490,973
---------------
2,367,152
---------------
SWEDEN-0.4%
ForeningsSparbanken AB,
Cl.A ........................................ 11,850 167,511
---------------
SWITZERLAND-1.5%
Sairgroup ...................................... 1,000 209,311
Swisscom AG (a) ................................ 1,300 489,036
---------------
698,347
---------------
TAIWAN-0.8%
Taiwan Semiconductor Co. ....................... 94,710 362,126
---------------
THAILAND-1.1%
PTT Exploration & Production
Public Co., Ltd. (a) ........................ 24,500 187,363
Siam Commercial Bank (a) ....................... 224,000 318,915
---------------
506,278
---------------
TURKEY-0.5%
Petkim Petrokimya Holding
AS .......................................... 5,869,500 80,650
Turkiye Is Bankasi Series C .................... 8,646,000 153,621
---------------
234,271
---------------
UNITED KINGDOM-8.9%
Anglian Water Plc .............................. 22,059 244,089
Birkby Plc ..................................... 74,200 343,856
British Airways Plc ............................ 75,500 521,250
British Energy Plc ............................. 60,500 519,729
Energis Plc (a) ................................ 18,300 437,296
Mersey Docks & Harbour
Co .......................................... 40,600 337,898
National Grid Group Plc ........................ 61,200 426,382
National Power Plc ............................. 78,101 567,522
PowerGen Plc ................................... 19,724 212,344
Stagecoach Holdings Plc ........................ 127,700 456,419
---------------
4,066,785
---------------
TOTAL INVESTMENTS-95.9%
(cost $37,267,815) .......................... 43,879,485
Other assets less
liabilities-4.1% ............................ 1,856,061
---------------
NET ASSETS-100% ................................ $ 45,735,546
===============
- --------------------------------------------------------------------------------
(a) Non-income producing security.
(b) Illiquid security valued at fair market value (see Note A).
(c) Securities exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration normally applied to certain qualified buyers. At June 30,
1999, the aggregate market value of these securities amounted to $616,137
or 1.3% of net assets.
See Glossary of Terms on page B-39.
See Notes to Financial Statements.
B-29
<PAGE>
GLOBAL BOND PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1999 (unaudited) Alliance Variable Products Series Fund
================================================================================
Principal
Amount
(000) U.S. $ Value
- --------------------------------------------------------------------------------
AUSTRIA-3.1%
GOVERNMENT
OBLIGATION-3.1%
Republic of Austria
4.50%, 9/28/05 (a) .............. JPY 140,000 $ 1,364,470
-----------
FRANCE-4.2%
GOVERNMENT
OBLIGATION-4.2%
Government of France
5.25%, 4/25/08 .................. EUR 1,700 1,840,068
-----------
GERMANY-9.3%
GOVERNMENT
OBLIGATION-9.3%
Government of Germany
6.00%, 2/16/06 (a) .............. 3,600 4,078,456
-----------
ITALY-8.3%
GOVERNMENT
OBLIGATION-8.3%
Republic of Italy
6.25%, 5/15/02 .................. 3,300 3,640,272
-----------
JAPAN-16.3%
DEBT OBLIGATIONS-16.3%
Asian Development Bank
5.00%, 2/05/03 .................. JPY 190,000 1,796,024
European Investment Bank
3.00%, 9/20/06 (a) .............. 210,000 1,909,565
Export Import Bank
2.875%, 7/28/05 ................. 190,000 1,698,644
Tokyo Electric Power Co.,
Inc
4.00%, 3/24/04 .................. EUR 1,700 1,734,204
-----------
7,138,437
-----------
NETHERLANDS-5.0%
GOVERNMENT
OBLIGATION-5.0%
Dutch Government
5.25%, 7/15/08 .................. 2,050 2,208,339
-----------
SPAIN-7.3%
GOVERNMENT
OBLIGATIONS-7.3%
Government of Spain
3.10%, 9/20/06 .................. JPY 170,000 1,550,265
5.25%, 1/31/03 (a) .............. EUR 1,500 1,622,816
-----------
3,173,081
-----------
SWEDEN-4.0%
GOVERNMENT
OBLIGATION-4.0%
Kingdom of Sweden
8.00%, 8/15/07 .................. SEK 12,500 1,766,845
-----------
UNITED KINGDOM-8.2%
DEBT OBLIGATIONS-6.0%
Abbey National Treasury
3.625%, 7/12/04 ................. EUR 1,750 1,753,476
International Bank for
Reconstruction &
Development
7.125%, 7/30/07 ................. GBP 500 852,358
-----------
2,605,834
-----------
GOVERNMENT
OBLIGATION-2.2%
U.K. Treasury Gilts
8.50%, 7/16/07 (a) .............. 520 981,121
-----------
3,586,955
-----------
UNITED STATES-32.2%
GOVERNMENT/AGENCY
OBLIGATIONS-30.5%
Federal National Mortgage
Association
2.125%, 10/09/07 (a) ............ JPY 230,000 1,945,028
U.S. Treasury Notes
5.625%, 5/15/08 ................. US$ 1,000 979,530
6.125%, 8/15/07 ................. 1,400 1,415,092
6.875%, 5/15/06 ................. 3,600 3,790,116
7.25%, 8/15/04 .................. 4,900 5,212,374
-----------
13,342,140
-----------
TIME DEPOSIT-1.7%
State Street Bank Euro Dollar
4.50%, 7/01/99 .................. 754 754,000
-----------
14,096,140
-----------
TOTAL INVESTMENTS-97.9%
(cost $44,404,305) .............. 42,893,063
Other assets less
liabilities-2.1% ................ 912,323
-----------
NET ASSETS-100% .................... $43,805,386
===========
- --------------------------------------------------------------------------------
(a) Securities, or portion thereof, with an aggregate market value of
$7,409,611 have been segregated to collateralize forward exchange currency
contracts.
See Glossary of Terms on page B-39.
See Notes to Financial Statements.
B-30
<PAGE>
GLOBAL DOLLAR GOVERNMENT PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1999 (unaudited) Alliance Variable Products Series Fund
================================================================================
Shares or
Principal
Amount
(000) U.S. $ Value
- -------------------------------------------------------------------------------
SOVEREIGN DEBT
OBLIGATIONS-66.4%
NON-COLLATERALIZED
BRADY BONDS-21.2%
BRAZIL-10.4%
Republic of Brazil, C-Bonds
5.00%, 4/15/14 (a) .......................... $ 885 $ 570,507
Republic of Brazil FRN
5.9375%, 4/15/12 ............................ 520 317,876
---------------
888,383
---------------
BULGARIA-5.6%
Republic of Bulgaria FLIRB
2.50%, 7/28/12 (b) .......................... 800 476,000
---------------
PERU-5.2%
Republic of Peru FLIRB
3.75%, 3/07/17 (b)(c) ....................... 250 136,875
Republic of Peru PDI
4.50%, 3/07/17 .............................. 500 306,900
---------------
443,775
---------------
Total Non-Collateralized
Brady Bonds
(cost $2,040,185) ........................... 1,808,158
---------------
OTHER SOVEREIGN DEBT
OBLIGATIONS-34.4%
ARGENTINA-4.1%
Province of Tucuman
9.45%, 8/01/04 (c) .......................... 412 338,247
Republic of Argentina,
warrants,
expiring 12/03/99 (d) ....................... 0 4,000
Republic of Argentina,
warrants,
expiring 2/25/00 (d) ........................ 0 4,945
---------------
347,192
---------------
COLOMBIA-2.5%
Republic of Colombia
8.375%, 2/15/27 ............................. 300 210,000
---------------
MEXICO-13.6%
United Mexican States
9.75%, 4/06/05 .............................. 300 303,750
United Mexican States
10.375%, 2/17/09 ............................ 850 858,500
---------------
1,162,250
---------------
PANAMA-4.5%
Republic of Panama
9.375%, 4/01/29 ............................. 400 380,520
---------------
RUSSIA-5.7%
Russia Ministry of Finance
3.00%, 5/14/03 .............................. 400 94,000
Russia Ministry of Finance
12.75%, 6/24/28 ............................. 500 280,000
Russian IAN FRN
6.0625%, 12/15/15 ........................... 692 108,107
---------------
482,107
---------------
Principal
Amount
(000) U.S. $ Value
- -------------------------------------------------------------------------------
TURKEY-1.2%
Republic of Turkey
12.375%, 6/15/09 ............................ $ 100 $ 99,250
---------------
UNITED STATES-2.8%
Republic of Costa Rica
9.335%, 5/15/09 (c) ......................... 100 97,500
Republic of Philippines
8.875%, 4/15/08 ............................. 150 145,350
---------------
242,850
---------------
Total Other Sovereign
Debt Obligations
(cost $2,948,897) ........................... 2,924,169
---------------
COLLATERALIZED
BRADY BONDS-10.8%
ARGENTINA-3.4%
Republic of Argentina
5.75%, 3/31/23 .............................. 460 291,548
---------------
BULGARIA-2.4%
Republic of Bulgaria FRN
5.875%, 7/28/24 ............................. 300 203,250
---------------
ECUADOR-1.0%
Republic of Ecuador FRN
6.00%, 2/28/25 .............................. 180 83,250
---------------
VENEZUELA-4.0%
Republic of Venezuela
6.75%, 3/31/20 .............................. 500 343,750
---------------
Total Collateralized
Brady Bonds
(cost $978,382) ............................. 921,798
---------------
Total Sovereign Debt
Obligations
(cost $5,967,464) ........................... 5,654,125
---------------
CORPORATE DEBT
OBLIGATIONS-23.1%
BANKING-4.6%
Banco Nacional De
Desenvolvimiento
Economico FRN
10.80%, 6/16/08 (c) ......................... 300 250,125
Korea Development Bank FRN
8.889%, 6/16/03 (c) ......................... 150 146,250
---------------
396,375
---------------
COMMUNICATIONS-2.4%
Viatel, Inc.
11.50%, 3/15/09 (c) ......................... 200 207,000
---------------
ELECTRONICS-4.0%
Samsung Electronics, Ltd.
7.45%, 10/01/02 (c) ......................... 350 337,472
---------------
INDUSTRIAL-4.8%
Petroleos Mexicanos
9.25%, 3/30/18 (c) .......................... 500 405,000
---------------
B-31
<PAGE>
Alliance Variable Products Series Fund
================================================================================
Principal
Amount
(000) U.S. $ Value
- -------------------------------------------------------------------------------
YANKEE BOND-7.3%
Cantv Finance, Ltd.
9.25%, 2/01/04 .............................. $ 500 $ 433,125
Consorcio Ecuatoriano
14.00%, 5/01/02 (c) ......................... 400 112,000
Interamericas Communications
14.00%, 10/27/07 (c)(e) .................... 100 68,500
Transportacion Maritima
Mexicana SP
9.25%, 5/15/03 .............................. 12 9,270
---------------
622,895
---------------
Total Corporate Debt
Obligations
(cost $2,427,470) ........................... 1,968,742
---------------
U.S. $ Value
- -------------------------------------------------------------------------------
TOTAL INVESTMENTS-89.5%
(cost $8,394,934) ........................... $ 7,622,867
Other assets less
liabilities-10.5% ........................... 892,868
---------------
NET ASSETS-100% ................................ $ 8,515,735
===============
- --------------------------------------------------------------------------------
(a) Coupon consists of 5% cash payment and 3% paid in kind.
(b) Coupon will increase periodically based upon a predetermined schedule.
Stated interest rate in effect at June 30, 1999.
(c) Securities exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration normally applied to certain qualified buyers. At June 30,
1999 the aggregate market value of these securities amounted to $2,098,969
or 24.7% of net assets.
(d) Non-income producing security.
(e) Security trades with warrants expiring in October 2007.
See Glossary of Terms on page B-39.
See Notes to Financial Statements.
B-32
<PAGE>
HIGH-YIELD PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1999 (unaudited) Alliance Variable Products Series Fund
================================================================================
Principal
Amount
(000) U.S. $ Value
- -------------------------------------------------------------------------------
CORPORATE DEBT
OBLIGATIONS-91.1%
AUTOMOTIVE-2.8%
American Axle &
Manufacturing, Inc.
9.75%, 3/01/09 (a) .......................... $ 300 $ 301,500
Federal Mogul Corp.
7.50%, 1/15/09 (a) .......................... 300 276,942
---------------
578,442
---------------
CABLE-4.9%
Charter Communications
Holdings LLC
8.625%, 4/01/09 (a) ......................... 500 482,500
NTL, Inc.
10.00%, 2/15/07 ............................. 300 312,000
TVN Entertainment Corp.
14.00%, 8/01/08 (a)(b)(c) ................... 400 220,000
---------------
1,014,500
---------------
CHEMICALS-7.2%
Climachem, Inc. Series B
10.75%, 12/01/07 ............................ 300 288,375
Lyondell Chemical Co.
9.875%, 5/01/07 ............................. 500 513,750
Philipp Brothers Chemicals, Inc.
9.875%, 6/01/08 (a) ......................... 400 366,000
Royster Clark, Inc.
10.25%, 4/01/09 (a) ......................... 300 297,000
---------------
1,465,125
---------------
COMMUNICATIONS-10.9%
Call-Net Enterprises, Inc.
9.375%, 5/15/09 ............................. 250 239,375
Iridium Capital Corp. LLC
14.00%, 7/15/05 (a) ......................... 550 118,250
Nextlink Communications, Inc.
10.75%, 6/01/09 ............................. 250 257,500
Orbital Imaging Corp. Series B
11.625%, 3/01/05 (a) ........................ 300 274,500
RSL Communications Plc
10.50%, 11/15/08 ............................ 500 497,500
Spectrasite Holdings, Inc.
0.00%, 4/15/09 (a) .......................... 500 282,500
Telecorp PCS, Inc.
0.00%, 4/15/09 (a) .......................... 500 278,750
Versatel Telecom BV, warrants
expiring 5/15/08 (a)(b) .................... 1 25,000
Winstar Equipment Corp.
12.50%, 3/15/04 (a) ......................... 250 261,875
---------------
2,235,250
---------------
CONSUMER
MANUFACTURING-2.2%
Derby Cycle Corp.
10.00%, 5/15/08 ............................. 250 203,750
Sleepmaster LLC
11.00%, 5/15/09 (a) ......................... 250 255,625
---------------
459,375
---------------
ENERGY-4.8%
Northern Offshore ASA
10.00%, 5/15/05 (a) ......................... 300 166,500
Pride International, Inc.
10.00%, 6/01/09 ............................. 300 306,000
Queens Sand Resources, Inc.
12.50%, 7/01/08 ............................. 400 246,000
Western Gas Resources, Inc.
10.00%, 6/15/09 (a) ......................... 250 256,250
---------------
974,750
---------------
ENTERTAINMENT-2.4%
Harrahs Operating, Inc.
7.875%, 12/15/05 ............................ 250 243,125
Hollywood Park, Inc.
9.25%, 2/15/07 .............................. 250 249,375
---------------
492,500
---------------
HEALTHCARE-5.5%
Lifepoint Hospitals Holdings, Inc.
10.75%, 5/15/09 (a) ......................... 300 306,750
Quest Diagnostic, Inc.
9.875%, 7/01/09 ............................. 500 505,000
Triad Hospitals Holdings, Inc.
11.00%, 5/15/09 (a) ......................... 300 306,750
---------------
1,118,500
---------------
HOTELS-2.3%
Florida Panthers Holdings, Inc.
9.875%, 4/15/09 (a) ......................... 250 235,000
Vail Resorts, Inc.
8.75%, 5/15/09 (a) .......................... 250 244,375
---------------
479,375
---------------
HOUSEHOLD
FURNISHINGS-1.5%
Imperial Home Decor Group,
Inc.
11.00%, 3/15/08 ............................. 400 302,000
---------------
INDUSTRIAL-10.3%
Amtrol, Inc.
10.625%, 12/31/06 ........................... 300 295,500
Anchor Lamina, Inc.
9.875%, 2/01/08 ............................. 500 462,500
Aqua Chemical, Inc.
11.25%, 7/01/08 ............................. 300 211,500
Elgar Holdings, Inc.
9.875%, 2/01/08 ............................. 50 40,250
Fairfield Manufacturing, Inc.
9.625%, 10/15/08 (a) ........................ 250 246,875
Geologistics Corp.
9.75%, 10/15/07 ............................. 500 380,625
ITT Corp.
6.75%, 11/15/05 ............................. 250 226,841
ZSC Specialty Chemicals Plc
11.00%, 7/01/09 (a) ......................... 250 251,562
---------------
2,115,653
---------------
B-33
<PAGE>
Alliance Variable Products Series Fund
================================================================================
Principal
Amount
(000) U.S. $ Value
- -------------------------------------------------------------------------------
METALS & MINING-4.1%
Alaska Steel Corp.
7.875%, 2/15/09 (a) ......................... $ 300 $ 289,500
P&L Coal Holdings Corp.
9.625%, 5/15/08 ............................. 300 299,250
Russel Metals, Inc.
10.00%, 6/01/09 ............................. 250 251,875
---------------
840,625
---------------
PAPER / PACKAGING-8.5%
Consolidated Container
Company LLC
10.125%, 7/15/09 (a) ........................ 300 303,000
Doman Industries, Ltd.
12.00%, 7/01/04 (a) ......................... 250 242,500
Repap New Brunswick, Inc.
9.00%, 6/01/04 .............................. 250 234,375
Riverwood International Corp.
10.625%, 8/01/07 (a) ........................ 400 412,000
Russell Stanley Holdings, Inc.
10.875%, 2/15/09 (a) ........................ 250 248,750
Tembec Industries, Inc.
8.625%, 6/30/09 ............................. 300 300,000
---------------
1,740,625
---------------
PUBLIC UTILITIES-6.4% AES Corp.
9.50%, 6/01/09 .............................. 250 258,125
Calpine Corp.
7.75%, 4/15/09 .............................. 500 471,250
Filtronic Plc
10.00%, 12/01/05 (a) ........................ 250 252,188
Generac Portable Products LLC
11.25%, 7/01/06 (a) ......................... 300 330,000
---------------
1,311,563
---------------
REAL ESTATE-5.0%
LNR Property Corp.
10.50%, 1/15/09 ............................. 500 502,500
Reliant Building Products, Inc.
Series B
10.875%, 5/01/04 (a) ........................ 400 270,000
Werner Holding Co., Inc.
10.00%, 11/15/07 ............................ 250 246,875
---------------
1,019,375
---------------
RETAIL-1.2%
Sonic Automotive, Inc.
11.00%, 8/01/08 ............................. 250 248,750
---------------
SERVICES-3.4%
Avis Rent a Car, Inc.
11.00%, 5/01/09 (a) ......................... 250 253,438
United Rentals, Inc.
9.00%, 4/01/09 (a) .......................... 250 246,250
United States Office
Products Co.
9.75%, 6/15/08 .............................. 300 199,500
---------------
699,188
---------------
TECHNOLOGY-6.2%
Amkor Technology, Inc.
9.25%, 5/01/06 .............................. 300 294,000
Dialog Corp. Plc
11.00%, 11/15/07 ............................ 500 455,000
Fairchild Semiconductor Corp.
10.375%, 10/01/07 (a) ....................... 300 296,250
Viasystems, Inc.
9.75%, 6/01/07 (a) .......................... 250 220,000
---------------
1,265,250
---------------
TRANSPORTATION-1.5%
American Commercial Lines
LLC
10.25%, 6/30/08 (a) ......................... 300 301,500
---------------
Total Corporate Debt
Obligations
(cost $20,013,413) .......................... 18,662,346
---------------
SHORT-TERM
INVESTMENT-10.8%
TIME DEPOSIT-10.8%
State Street Bank Euro Dollar
4.50%, 7/01/99
(amortized cost
$2,212,000) ................................. 2,212 2,212,000
---------------
TOTAL INVESTMENTS-101.9%
(cost $22,225,413) .......................... 20,874,346
Other assets less liabilities-(1.9%) ........... (394,584)
---------------
NET ASSETS-100% ................................ $20,479,762
===============
- --------------------------------------------------------------------------------
(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,
1999, the aggregate market value of these securities amounted to
$9,119,880 or 44.5% of net assets.
(b) Non-income producing security.
(c) Security trades with warrants expiring August 1, 2008.
See Glossary of Terms on page B-39.
See Notes to Financial Statements.
B-34
<PAGE>
NORTH AMERICAN GOVERNMENT INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1999 (unaudited) Alliance Variable Products Series Fund
================================================================================
Principal
Amount
(000) U.S. $ Value
- --------------------------------------------------------------------------------
ARGENTINA-19.9%
GOVERNMENT
OBLIGATIONS-19.9%
Republic of Argentina
Pensioner-Bocon Pre I
FRN
2.815%, 4/01/01 ................. ARS 152 $ 137,150
Supplier-Bocon Pro I FRN
2.815%, 4/01/07 ................. 8,792 5,746,146
-----------
Total Argentinian Securities
(cost $6,158,344) ............... 5,883,296
-----------
CANADA-7.2%
GOVERNMENT/AGENCY
OBLIGATIONS-7.2%
Government of Canada
6.50%, 6/01/04 .................. CA$ 850 600,628
Province of British
Columbia
8.00%, 9/08/23 .................. 400 331,102
Province of Manitoba
7.75%, 12/22/25 ................. 450 369,260
Province of Ontario
8.25%, 12/01/05 ................. 275 210,856
Province of Quebec
7.75%, 3/30/06 .................. 325 242,352
Province of Saskatchewan
9.60%, 2/04/22 .................. 400 385,888
-----------
Total Canadian Securities
(cost $1,968,733) ............... 2,140,086
-----------
MEXICO-24.3%
GOVERNMENT/AGENCY
OBLIGATIONS-24.3%
Mexican Treasury Bills (a)
24.98%, 9/09/99 ................. MXP 7,397 753,182
30.75%, 8/05/99 ................. 6,620 687,844
30.75%, 5/11/00 ................. 59,568 5,249,493
Nacional Financiera SNC
22.00%, 5/20/02 (b) ............. 5,000 507,634
-----------
Total Mexican Securities
(cost $6,973,366) ............... 7,198,153
-----------
UNITED STATES-46.0%
FEDERAL/AGENCY
OBLIGATIONS-1.4%
Federal Home Loan Bank
7.26%, 9/06/01 .................. US$ 200 $ 205,968
Federal Home Loan
Mortgage Corp.
6.13%, 8/19/99 .................. 150 150,117
Government National
Mortgage Association
9.00%, 9/15/24 .................. 65 68,600
-----------
424,685
-----------
U.S. TREASURY
SECURITIES-40.0%
U.S. Treasury Notes
5.625%, 5/15/08 ................. 6,800 6,660,804
7.00%, 7/15/06 .................. 2,400 2,542,128
7.25%, 8/15/04 .................. 2,500 2,659,374
-----------
11,862,306
-----------
TIME DEPOSIT-4.6%
State Street Bank Euro
Dollar
4.50%, 7/01/99 .................. 1,359 1,359,000
-----------
Total United States
Securities
(cost $13,995,376) .............. 13,645,991
-----------
TOTAL INVESTMENTS-97.4%
(cost $29,095,819) .............. 28,867,526
Other assets less
liabilities-2.6% ................ 769,505
-----------
NET ASSETS-100% .................... $29,637,031
===========
- --------------------------------------------------------------------------------
(a) Interest rate represents annualized yield to maturity at purchase date.
(b) 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, 1999, the
aggregate market value of this security amounted to $507,634 or 1.7% of
net assets.
See Glossary of Terms on page B-39.
See Notes to Financial Statements.
B-35
<PAGE>
SHORT-TERM MULTI-MARKET PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1999 (unaudited) Alliance Variable Products Series Fund
================================================================================
Principal
Amount
(000) U.S. $ Value
- --------------------------------------------------------------------------------
DENMARK-4.7%
GOVERNMENT
OBLIGATION-4.7%
Kingdom of Denmark
9.00%, 11/15/00
(cost $320,411) ................. DKK 2,000 $ 297,108
-----------
FRANCE-3.8%
GOVERNMENT
OBLIGATION-3.8%
Government of France
7.75%, 4/12/00 (a)
(cost $268,244) ................. EUR 229 244,685
-----------
GERMANY-16.5%
DEBT OBLIGATION-7.9%
Bremer Landesbank
Kreditanstalt Oldenburg
6.375%, 12/29/99 (a) ............ US 500 501,000
-----------
GOVERNMENT
OBLIGATION-8.6%
Government of Germany
5.75%, 8/22/00 (a) .............. EUR 511 543,140
-----------
Total German Securities
(cost $1,090,324) ............... 1,044,140
-----------
ITALY-8.5%
GOVERNMENT
OBLIGATION-8.5%
Republic of Italy
6.00%, 2/15/00
(cost $587,226) ................. 516 542,504
-----------
NETHERLANDS-4.8%
DEBT OBLIGATION-4.8%
Rabobank Nederland
6.25%, 12/31/99 (a)
(cost $301,230) ................. US$ 300 300,450
-----------
NEW ZEALAND-6.6%
DEBT OBLIGATION-3.4%
International Bank for
Reconstruction &
Development
7.00%, 9/18/00 (a) .............. NZ$ 400 215,274
-----------
GOVERNMENT
OBLIGATION-3.2%
Government of New Zealand
8.00%, 2/15/01 .................. 365 201,173
-----------
Total New Zealand
Securities
(cost $458,399) ................. 416,447
-----------
SWEDEN-5.9%
GOVERNMENT
OBLIGATION-5.9%
Kingdom of Sweden
10.25%, 5/05/00 (a)
(cost $436,278) ................. SEK 3,000 373,154
-----------
UNITED KINGDOM-6.6%
DEBT OBLIGATION-6.6%
Abbey National Treasury
Services
7.125%, 3/14/01 ................. GBP 75 120,654
Suedwest Deutsche
Landesbank
5.75%, 12/10/99 (a) ............. US$ 300 299,850
-----------
Total United Kingdom
Securities
(cost $420,441) ................. 420,504
-----------
UNITED STATES-38.7%
DEBT OBLIGATIONS-4.2%
Federal National Mortgage
Association
7.00%, 9/26/00 (a) .............. NZ$ 500 268,696
-----------
TIME DEPOSIT-34.5%
State Street Bank Euro Dollar
4.50%, 7/01/99 .................. US$ 2,185 2,185,000
-----------
Total United States
Securities
(cost $2,447,270) ............... 2,453,696
-----------
TOTAL INVESTMENTS-96.1%
(cost $6,329,823) ............... 6,092,688
Other assets less
liabilities-3.9% ................ 245,727
-----------
NET ASSETS-100% .................... $ 6,338,415
===========
- --------------------------------------------------------------------------------
(a) Securities, or portion thereof, with an aggregate market value of
$2,746,249 have been segregated to collateralize forward exchange currency
contracts.
See Glossary of Terms on page B-39.
See Notes to Financial Statements.
B-36
<PAGE>
U.S. GOVERNMENT/HIGH GRADE SECURITIES PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1999 (unaudited) Alliance Variable Products Series Fund
================================================================================
Principal
Amount
(000) U.S. $ Value
- --------------------------------------------------------------------------------
U.S. GOVERNMENT/AGENCY
OBLIGATIONS-68.0%
FEDERAL AGENCIES-38.6%
Federal National Mortgage
Association
6.00%, 9/01/13 ........................... $1,482 $ 1,431,913
6.00%, 3/01/29 ........................... 2,598 2,440,948
6.50%, 10/01/28 .......................... 824 794,876
6.50%, 12/01/28 .......................... 760 733,207
6.50%, 6/01/29 ........................... 600 578,866
7.00%, 2/01/12 ........................... 1,843 1,849,452
7.00%, 4/01/26 ........................... 310 306,468
7.00%, 5/01/28 ........................... 382 378,171
7.50%, 9/01/27 ........................... 1,000 1,009,999
7.50%, 4/01/29 ........................... 2,363 2,386,478
8.00%, 11/01/28 .......................... 524 537,978
8.00%, 1/01/29 ........................... 875 898,487
Government National Mortgage
Association
6.50%, 3/15/28 ........................... 546 525,471
6.50%, 7/15/28 ........................... 1,148 1,104,189
6.50%, 3/15/29 ........................... 2,736 2,630,588
7.00%, 7/15/23 ........................... 54 53,671
7.00%, 7/15/27 ........................... 794 783,342
7.00%, 2/15/28 ........................... 692 682,947
7.00%, 3/15/28 ........................... 899 886,760
7.00%, 12/15/28 .......................... 2,465 2,431,544
-----------
22,445,355
-----------
U.S. TREASURY
SECURITIES-29.4%
U.S. Treasury Bonds
5.25%, 11/15/28 .......................... 1,150 1,019,372
5.25%, 2/15/29 ........................... 625 561,525
6.125%, 11/15/27 ......................... 500 496,640
8.125%, 8/15/19 .......................... 1,740 2,101,589
U.S. Treasury Notes
6.50%, 5/31/02 ........................... 4,525 4,627,536
6.75%, 4/30/00 ........................... 2,700 2,731,644
6.875%, 5/15/06 .......................... 3,500 3,684,835
7.25%, 5/15/04 ........................... 1,800 1,911,366
-----------
17,134,507
-----------
Total U.S. Government/Agency
Obligations
(cost $40,738,083) ....................... 39,579,862
-----------
CORPORATE DEBT
OBLIGATIONS-22.9%
AUTOMOTIVE-3.4%
Ford Motor Co.
6.375%, 2/01/29 .......................... 2,250 1,960,859
-----------
BANKING-2.4%
Citicorp
6.375%, 11/15/08 ......................... 1,400 1,332,226
Wachovia Corp.
6.375%, 4/15/03 .......................... 75 74,638
-----------
1,406,864
-----------
BROADCASTING/MEDIA-2.2%
Time Warner, Inc.
6.625%, 5/15/29 .......................... 1,450 1,281,121
-----------
CABLE-3.8%
Comcast Cable Corp.
8.375%, 5/01/07 .......................... 1,000 1,069,175
Cox Communications, Inc.
6.80%, 8/01/28 ........................... 1,250 1,125,305
-----------
2,194,480
-----------
FINANCE-5.1%
Goldman Sachs Group LP
7.25%, 10/01/05 (a) ...................... 500 507,817
Household Finance Corp.
5.875%, 11/01/02 ......................... 1,150 1,127,904
Household Netherlands BV
6.20%, 12/01/03 .......................... 1,350 1,324,960
-----------
2,960,681
-----------
TRANSPORTATION-3.0%
Burlington Northern Santa Fe
7.082%, 5/13/29 .......................... 500 491,751
Union Pacific Corp.
6.79%, 11/09/07 .......................... 1,300 1,266,502
-----------
1,758,253
-----------
YANKEE BONDS-3.0%
Empresa Nacional De
Electricidade, SA
8.50%, 4/01/09 (a) ....................... 1,240 1,216,982
St. George Bank, Ltd.
7.15%, 10/15/05 (a) ...................... 500 497,206
-----------
1,714,188
-----------
Total Corporate Debt
Obligations
(cost $14,075,400) ....................... 13,276,446
-----------
ASSET BACKED
SECURITIES-4.1%
Capital Auto Receivables
5.58%, 6/15/02 ........................... 1,500 1,486,410
Carco Auto Loan
5.65%, 3/15/03 ........................... 920 914,968
-----------
Total Asset Backed Securities
(cost $2,419,626) ........................ 2,401,378
-----------
B-37
<PAGE>
Alliance Variable Products Series Fund
================================================================================
Principal
Amount
(000) U.S. $ Value
- --------------------------------------------------------------------------------
COLLATERALIZED
MORTGAGE BACKED
SECURITIES-1.0%
LB Commercial Conduit
Mortgage Trust
6.78%, 4/15/09
(cost $605,773) .......................... $ 600 $ 593,013
-----------
SHORT-TERM
INVESTMENT-3.2%
TIME DEPOSIT-3.2%
State Street Cayman Islands
4.50%, 7/01/99
(amortized cost
$1,844,000) .............................. 1,844 1,844,000
-----------
U.S. $ Value
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS-99.2%
(cost $59,682,882) ....................... $57,694,699
Other assets less
liabilities-0.8% ......................... 484,997
-----------
NET ASSETS-100% ............................. $58,179,696
===========
- --------------------------------------------------------------------------------
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,
1999, the aggregate market value of these securities amounted to
$2,222,005 or 3.8% of net assets.
See Glossary of Terms on page B-39.
See Notes to Financial Statements.
B-38
<PAGE>
MONEY MARKET PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 1999 (unaudited) Alliance Variable Products Series Fund
================================================================================
Principal
Amount
(000) U.S. $ Value
- -------------------------------------------------------------------------------
COMMERCIAL PAPER-89.0%
Allianz of America Finance
Corp.
4.89%, 8/24/99 (a) ........................ $3,000 $ 2,977,995
5.13%, 9/28/99 (a) ........................ 3,000 2,961,952
Bell Atlantic Financial Services
5.21%, 7/14/99 ............................ 5,900 5,888,900
Cargill Global Funding
5.70%, 7/01/99 ............................ 6,000 6,000,000
Citibank
4.90%, 8/26/99 ............................ 3,000 2,977,133
DaimlerChrysler
4.98%, 7/15/99 ............................ 3,000 2,994,190
Duke Energy Corp.
5.65%, 7/01/99 ............................ 6,000 6,000,000
Eastman Kodak Co.
5.01%, 7/22/99 ............................ 4,600 4,586,556
Equilon Enterprise LLC
5.10%, 7/26/99 ............................ 6,000 5,978,750
Exxon Project Investment Corp.
5.75%, 7/01/99 ............................ 6,000 6,000,000
Ford Motor Credit Corp.
4.89%, 7/27/99 ............................ 3,000 2,989,405
5.19%, 9/30/99 ............................ 3,000 2,960,643
GE Capital International
Funding
5.22%, 9/30/99 ............................ 3,000 2,960,415
General Electric Capital Corp.
4.90%, 8/31/99 ............................ 3,000 2,975,092
General Motors Acceptance
Corp
4.95%, 7/15/99 ............................ 3,300 3,293,648
Government Development
Bank of Puerto Rico
5.22%, 7/23/99 ............................ 6,000 5,980,860
Household Finance Corp.
5.15%, 7/30/99 ............................ 3,000 2,987,554
J.P. Morgan & Co., Inc.
4.83%, 9/27/99 ............................ 3,000 2,964,580
Merril Lynch & Co.
5.10%, 7/30/99 ............................ 4,000 3,983,567
Morgan Stanley Group, Inc.
5.75%, 7/01/99 ............................ 3,500 3,500,000
National City Corp.
5.20%, 8/13/99 ............................ 6,000 5,962,733
National Rural Utilities Corp.
4.90%, 8/26/99 ............................ 3,000 2,977,133
Norwest Financial Inc.
5.11%, 7/30/99 ............................ 6,000 5,975,302
Prudential Funding Corp.
5.01%, 7/30/99 ............................ 6,000 5,975,785
Southern Co.
5.05%, 7/14/99 ............................ 3,000 2,994,529
Teachers Insurance
5.20%, 7/30/99 ............................ 6,000 5,974,867
-------------
Total Commercial Paper
(amortized cost
$110,821,589) ............................. 110,821,589
-------------
CERTIFICATES OF
DEPOSIT-4.0%
State Street Bank & Trust Co.
4.95%, 9/13/99
(amortized cost
$5,000,000) ............................... 5,000 5,000,000
-------------
BANKERS ACCEPTANCE-4.0%
First National Bank of Chicago
5.60%, 6/14/00
(amortized cost
$4,997,708) ............................... 5,000 4,997,708
-------------
PROMISSORY NOTE-3.2%
Goldman Sachs Group LP FRN
5.03%, 11/19/99 (a)
(amortized cost
$4,000,000) ............................... 4,000 4,000,000
-------------
TOTAL INVESTMENTS-100.2%
(cost $124,819,297) ....................... 124,819,297
Other assets less
liabilities-(0.2%) ........................ (248,543)
-------------
NET ASSETS-100% .............................. $ 124,570,754
=============
- --------------------------------------------------------------------------------
(a) Securities issued in reliance on Section (4) 2 or Rule 144A of the
Securities Act of 1933. These securities may be resold in transactions
exempt from registration normally to qualified institutional buyers. At
June 30, 1999, the aggregate market value of these securities amounted to
$9,939,947 or 8.0% of net assets.
Glossary of Terms:
ADR American Depositary Receipts
ADS American Depositary Shares
FLIRB Front Load Interest Reduction Bond
FRN Floating Rate Note
GDR Global Depositary Receipts
GDS Global Depositary Shares
IAN Interest Arrears Note
PDI Past Due Interest
See Notes to Financial Statements.
B-39
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
June 30, 1999 (unaudited) Alliance Variable Products Series Fund
================================================================================
<TABLE>
<CAPTION>
Conservative Growth Total Growth and
Investors Investors Return Income
Portfolio Portfolio Portfolio Portfolio
---------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C>
ASSETS
Investments in securities, at value
(cost $31,975,204, $16,984,036,
$62,950,921 and $412,520,984,
respectively) ................. $ 33,121,029 $ 18,724,339 $ 69,437,723 $491,222,523
Cash, at value (cost $1,001,298,
$939,538, $18,777 and
$192,561, respectively) ....... 980,340 926,553 18,777 192,561
Interest receivable ............. 389,457 136,144 291,568 2,975
Dividends receivable ............ 7,324 9,896 37,858 485,881
Deferred organization expenses .. 646 646 -0- -0-
Receivable for investment
securities sold ............... -0- -0- 187,580 324,723
------------ ------------ ------------ ------------
Total assets .................... 34,498,796 19,797,578 69,973,506 492,228,663
------------ ------------ ------------ ------------
LIABILITIES
Advisory fee payable ............ 19,607 8,142 34,459 238,414
Payable for investment securities
purchased ..................... -0- 836,038 816,940 8,586,068
Accrued expenses ................ 15,623 13,247 71,576 127,368
------------ ------------ ------------ ------------
Total liabilities ............... 35,230 857,427 922,975 8,951,850
------------ ------------ ------------ ------------
NET ASSETS ......................... $ 34,463,566 $ 18,940,151 $ 69,050,531 $483,276,813
============ ============ ============ ============
COMPOSITION OF NET ASSETS
Capital stock, at par ........... $ 2,655 $ 1,224 $ 3,898 $ 21,559
Additional paid-in capital ...... 31,198,256 14,790,636 58,579,026 383,145,986
Undistributed net investment
income ........................ 632,513 180,418 741,439 1,532,202
Accumulated net realized gain
on investments and foreign
currency transactions ......... 1,505,504 2,240,799 3,239,366 19,875,527
Net unrealized appreciation of
investments and foreign
currency denominated assets
and liabilities ............... 1,124,638 1,727,074 6,486,802 78,701,539
------------ ------------ ------------ ------------
$ 34,463,566 $ 18,940,151 $ 69,050,531 $483,276,813
============ ============ ============ ============
Class A Shares
Net assets ...................... $ 34,463,566 $ 18,940,151 $ 69,050,531 $481,492,485
============ ============ ============ ============
Shares of capital stock
outstanding ................... 2,654,881 1,223,500 3,898,392 21,479,426
============ ============ ============ ============
Net asset value per share ....... $ 12.98 $ 15.48 $ 17.71 $ 22.42
============ ============ ============ ============
Class B Shares
Net assets ...................... $ 1,784,328
============
Shares of capital stock
outstanding ................... 79,589
============
Net asset value per share ....... $ 22.42
============
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
B-40
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIESS
(continued) Alliance Variable Products Series Fund
================================================================================
<TABLE>
<CAPTION>
Premier
Growth International Growth Quasar
Portfolio Portfolio Portfolio Portfolio
---------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C>
ASSETS
Investments in securities, at value
(cost $261,292,259, $52,401,883,
$1,217,726,252 and $140,821,304,
respectively) ................. $ 381,840,211 $ 59,446,081 $ 1,722,496,369 $ 148,648,330
Cash, at value (cost $122,130
$1,971,117, $6,192,262 and
$779, respectively) ........... 122,130 1,969,130 6,192,262 779
Receivable for investment
securities sold ............... 649,118 1,506,809 -0- 207,352
Dividends receivable ............ 303,170 176,193 848,674 163,751
Interest receivable ............. 107,381 170 -0- 408
Deferred organization expenses .. 410 -0- -0- 11,001
--------------- --------------- --------------- ---------------
Total assets .................... 383,022,420 63,098,383 1,729,537,305 149,031,621
--------------- --------------- --------------- ---------------
LIABILITIES
Advisory fee payable ............ 226,155 33,372 1,328,378 70,807
Payable for investment securities
purchased ..................... 97,176 1,082,108 4,890,807 251,595
Accrued expenses ................ 135,614 34,256 494,371 45,192
--------------- --------------- --------------- ---------------
Total liabilities ............... 458,945 1,149,736 6,713,556 367,594
--------------- --------------- --------------- ---------------
NET ASSETS ......................... $ 382,563,475 $ 61,948,647 $ 1,722,823,749 $ 148,664,027
=============== =============== =============== ===============
COMPOSITION OF NET ASSETS
Capital stock, at par ........... $ 13,313 $ 3,788 $ 49,826 $ 12,568
Additional paid-in capital ...... 237,527,664 52,946,261 1,164,542,224 147,512,807
Undistributed net investment
income (loss) ................. 410,726 259,527 (2,022,819) 237,378
Accumulated net realized gain
(loss) on investments and
foreign currency transactions . 24,063,935 1,705,523 55,484,401 (6,925,751)
Net unrealized appreciation of
investments and foreign
currency denominated assets
and liabilities ............... 120,547,837 7,033,548 504,770,117 7,827,025
--------------- --------------- --------------- ---------------
$ 382,563,475 $ 61,948,647 $ 1,722,823,749 $ 148,664,027
=============== =============== =============== ===============
Class A Shares
Net assets ...................... $ 381,873,190 $ 61,948,647 $ 1,722,823,749 $ 148,664,027
=============== =============== =============== ===============
Shares of capital stock
outstanding ................... 13,288,440 3,787,361 49,825,711 12,567,930
=============== =============== =============== ===============
Net asset value per share ....... $ 28.74 $ 16.36 $ 34.58 $ 11.83
=============== =============== =============== ===============
Class B Shares
Net assets ...................... $ 690,285
===============
Shares of capital stock
outstanding ................... 24,022
===============
Net asset value per share ....... $ 28.74
===============
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
B-41
<PAGE>
Alliance Variable Products Series Fund
================================================================================
<TABLE>
<CAPTION>
Real Estate Utility Worldwide
Investment Technology Income Privatization
Portfolio Portfolio Portfolio Portfolio
---------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C>
ASSETS
Investments in securities, at value
(cost $20,981,602, $124,496,953,
$30,552,619 and $37,267,815,
respectively) ................. $ 19,568,407 $ 189,933,690 $ 41,726,814 $ 43,879,485
Cash, at value (cost $962, $273,
$2,649 and $1,406,463,
respectively) ................. 962 273 2,735 1,406,649
Dividends receivable ............ 153,101 9,034 40,652 190,390
Receivable for investment
securities sold ............... 29,918 488,989 -0- 564,207
Deferred organization expenses .. 10,112 6,752 -0- 454
Interest receivable ............. 95 1,744 687 -0-
--------------- --------------- --------------- ---------------
Total assets .................... 19,762,595 190,440,482 41,770,888 46,041,185
--------------- --------------- --------------- ---------------
LIABILITIES
Payable for investment securities
purchased ..................... 191,001 1,415,514 -0- 172,416
Advisory fee payable ............ 449 122,924 44,317 29,631
Accrued expenses ................ 29,849 27,153 41,118 103,592
--------------- --------------- --------------- ---------------
Total liabilities ............... 221,299 1,565,591 85,435 305,639
--------------- --------------- --------------- ---------------
NET ASSETS ......................... $ 19,541,296 $ 188,874,891 $ 41,685,453 $ 45,735,546
=============== =============== =============== ===============
COMPOSITION OF NET ASSETS
Capital stock, at par ........... $ 1,973 $ 8,554 $ 2,034 $ 2,892
Additional paid-in capital ...... 21,946,240 115,450,019 28,285,418 37,961,688
Undistributed net investment
income (loss) ................. 498,818 (220,285) 346,393 366,374
Accumulated net realized gain
(loss) on investments and
foreign currency transactions . (1,492,540) 8,199,866 1,878,105 799,494
Net unrealized appreciation
(depreciation) of investments
and foreign currency
denominated assets and
liabilities ................... (1,413,195) 65,436,737 11,173,503 6,605,098
--------------- --------------- --------------- ---------------
$ 19,541,296 $ 188,874,891 $ 41,685,453 $ 45,735,546
=============== =============== =============== ===============
Class A Shares
Shares of capital stock
outstanding ................... 1,972,748 8,553,848 2,033,750 2,892,382
=============== =============== =============== ===============
Net asset value per share ....... $ 9.91 $ 22.08 $ 20.50 $ 15.81
=============== =============== =============== ===============
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
B-42
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIESS
(continued) Alliance Variable Products Series Fund
================================================================================
<TABLE>
<CAPTION>
Global Dollar North American
Global Bond Government High-Yield Government Income
Portfolio Portfolio Portfolio Portfolio
---------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C>
ASSETS
Investments in securities, at value
(cost $44,404,305, $8,394,934,
$22,225,413 and $29,095,819,
respectively) ................. $ 42,893,063 $ 7,622,867 $ 20,874,346 $ 28,867,526
Cash, at value (cost $313,
$682,221, $841 and $429,776,
respectively) ................. 313 682,221 841 430,163
Interest receivable ............. 947,051 232,031 434,980 264,264
Receivable for investment
securities sold ............... -0- -0- -0- 102,730
--------------- --------------- --------------- ---------------
Total assets .................... 43,840,427 8,537,119 21,310,167 29,664,683
--------------- --------------- --------------- ---------------
LIABILITIES
Advisory fee payable ............ 23,001 95 10,941 15,562
Unrealized depreciation of
forward exchange currency
contract ...................... 10,702 -0- -0- -0-
Payable for investment
securities purchased .......... -0- -0- 800,000 -0-
Accrued expenses ................ 1,338 21,289 19,464 12,090
--------------- --------------- --------------- ---------------
Total liabilities ............... 35,041 21,384 830,405 27,652
--------------- --------------- --------------- ---------------
NET ASSETS ......................... $ 43,805,386 $ 8,515,735 $ 20,479,762 $ 29,637,031
=============== =============== =============== ===============
COMPOSITION OF NET ASSETS
Capital stock, at par ........... $ 3,972 $ 924 $ 2,234 $ 2,493
Additional paid-in capital ...... 45,126,440 12,630,563 23,343,549 28,979,767
Undistributed net investment
income ........................ 285,755 489,544 916,177 959,490
Accumulated net realized
loss on investments and
foreign currency transactions.. (61,082) (3,833,229) (2,431,131) (77,055)
Net unrealized depreciation of
investments and foreign
currency denominated assets
and liabilities ............... (1,549,699) (772,067) (1,351,067) (227,664)
--------------- --------------- --------------- ---------------
$ 43,805,386 $ 8,515,735 $ 20,479,762 $ 29,637,031
=============== =============== =============== ===============
Class A Shares
Shares of capital stock
outstanding ................... 3,972,265 924,415 2,233,988 2,492,617
=============== =============== =============== ===============
Net asset value per share ....... $ 11.03 $ 9.21 $ 9.17 $ 11.89
=============== =============== =============== ===============
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
B-43
<PAGE>
Alliance Variable Products Series Fund
================================================================================
<TABLE>
<CAPTION>
Short-Term U.S. Government/
Multi-Market High Grade Securities Money Market
Portfolio Portfolio Portfolio
---------------- ---------------- ----------------
<S> <C> <C> <C>
ASSETS
Investments in securities, at value (cost $6,329,823,
$59,682,882 and $124,819,297, respectively) ....... $ 6,092,688 $ 57,694,699 $ 124,819,297
Cash, at value (cost $79,658, $677 and $205,372,
respectively) ..................................... 77,427 677 205,372
Interest receivable ................................. 115,644 529,213 108,699
Unrealized appreciation of forward exchange
currency contracts ................................ 59,469 -0- -0-
Receivable from Adviser ............................. 440 -0- -0-
------------- ------------- -------------
Total assets ........................................ 6,345,668 58,224,589 125,133,368
------------- ------------- -------------
LIABILITIES
Advisory fee payable ................................ -0- 28,334 54,179
Dividend payable .................................... -0- -0- 469,853
Accrued expenses .................................... 7,253 16,559 38,582
------------- ------------- -------------
Total liabilities ................................... 7,253 44,893 562,614
------------- ------------- -------------
NET ASSETS ............................................. $ 6,338,415 $ 58,179,696 $ 124,570,754
============= ============= =============
COMPOSITION OF NET ASSETS
Capital stock, at par ............................... $ 649 $ 5,227 $ 124,571
Additional paid-in capital .......................... 7,545,317 59,569,562 124,446,010
Undistributed net investment income ................. 27,678 1,535,439 573
Accumulated net realized loss on investments and
foreign currency transactions ..................... (1,051,068) (942,349) (400)
Net unrealized depreciation of investments and
foreign currency denominated assets and liabilities (184,161) (1,988,183) -0-
------------- ------------- -------------
$ 6,338,415 $ 58,179,696 $ 124,570,754
============= ============= =============
Class A shares
Net assets .......................................... $ 6,338,415 $ 58,080,071 $ 124,456,260
============= ============= =============
Shares of capital stock outstanding ................. 649,465 5,217,779 124,456,417
============= ============= =============
Net asset value per share ........................... $ 9.76 $ 11.13 $ 1.00
============= ============= =============
Class B shares
Net assets .......................................... $ 99,625 $ 114,494
============= =============
Shares of capital stock outstanding ................. 8,952 114,494
============= =============
Net asset value per share ........................... $ 11.13 $ 1.00
============= =============
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
B-44
<PAGE>
STATEMENTS OF OPERATIONS
Six Months Ended June 30, 1999 (unaudited)
Alliance Variable Products Series Fund
================================================================================
<TABLE>
<CAPTION>
Conservative Growth Total Growth and
Investors Investors Return Income
Portfolio Portfolio Portfolio Portfolio
---------------- --------------- -------------- ------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Interest .......................... $ 767,237 $ 212,978 $ 773,317 $ 358,848
Dividends (net of foreign taxes
withheld of $3,444, $4,933,
$30 and $320, respectively) ..... 50,845 75,757 242,370 2,673,163
------------ ------------ ------------ ------------
Total investment income ........... 818,082 288,735 1,015,687 3,032,011
------------ ------------ ------------ ------------
EXPENSES
Advisory fee ...................... 135,274 75,722 196,714 1,295,838
Distribution fee - Class B ........ -0- -0- -0- 168
Custodian ......................... 31,637 33,846 27,508 45,600
Administrative .................... 31,500 31,500 31,500 31,500
Audit and legal ................... 2,673 1,514 2,941 32,196
Printing .......................... 2,325 1,567 2,788 49,741
Amortization of organization
expenses ........................ 992 992 -0- -0-
Directors' fees ................... 620 721 606 522
Transfer agency ................... 473 481 450 574
Miscellaneous ..................... 4,097 722 1,633 7,507
------------ ------------ ------------ ------------
Total expenses .................... 209,591 147,065 264,140 1,463,646
Less: expenses waived and
reimbursed ...................... (38,245) (51,150) -0- -0-
------------ ------------ ------------ ------------
Net expenses ...................... 171,346 95,915 264,140 1,463,646
------------ ------------ ------------ ------------
Net investment income ............. 646,736 192,820 751,547 1,568,365
------------ ------------ ------------ ------------
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY
TRANSACTIONS
Net realized gain on investment
transactions .................... 1,564,251 2,268,845 3,277,112 20,130,014
Net realized gain (loss) on foreign
currency transactions ........... (24,732) (19,583) 5 60
Net change in unrealized
appreciation (depreciation) of
investments ..................... (1,593,736) (1,379,633) 944,636 37,315,892
Net change in unrealized
appreciation (depreciation) of
foreign currency denominated
assets and liabilities .......... (21,455) (13,521) (3) (52)
------------ ------------ ------------ ------------
Net gain (loss) on investments
and foreign currency
transactions .................... (75,672) 856,108 4,221,750 57,445,914
------------ ------------ ------------ ------------
NET INCREASE IN NET
ASSETS FROM OPERATIONS ............... $ 571,064 $ 1,048,928 $ 4,973,297 $ 59,014,279
============ ============ ============ ============
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
B-45
<PAGE>
Alliance Variable Products Series Fund
================================================================================
<TABLE>
<CAPTION>
Premier
Growth International Growth Quasar
Portfolio Portfolio Portfolio Portfolio
---------------- ---------------- ------------- -------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends (net of foreign taxes
withheld of $1,129, $84,980,
$12,962, and $7,836,
respectively) ................... $ 1,416,208 $ 726,855 $ 4,358,125 $ 332,134
Interest .......................... 352,766 13,624 1,576,123 407,123
------------- ------------- ------------- -------------
Total investment income ........... 1,768,974 740,479 5,934,248 739,257
------------- ------------- ------------- -------------
EXPENSES
Advisory fee ...................... 1,289,348 310,074 7,526,265 474,696
Distribution fee - Class B ........ 61 -0- -0- -0-
Custodian ......................... 52,178 64,419 93,730 46,561
Audit and legal ................... 33,085 4,581 151,927 9,826
Administrative .................... 31,500 31,500 31,500 31,500
Printing .......................... 22,362 8,963 134,540 13,694
Directors' fees ................... 1,073 685 845 900
Amortization of organization
expenses ........................ 992 -0- -0- 2,550
Transfer agency ................... 501 469 547 540
Miscellaneous ..................... 6,145 3,306 17,713 5,998
------------- ------------- ------------- -------------
Total expenses .................... 1,437,245 423,997 7,957,067 586,265
Less: expenses waived and
reimbursed ...................... -0- (129,426) -0- (135,304)
------------- ------------- ------------- -------------
Net expenses ...................... 1,437,245 294,571 7,957,067 450,961
------------- ------------- ------------- -------------
Net investment income (loss) ...... 331,729 445,908 (2,022,819) 288,296
------------- ------------- ------------- -------------
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY
TRANSACTIONS
Net realized gain (loss) on
investment transactions ......... 24,155,153 2,890,563 55,837,594 (2,688,294)
Net realized gain (loss) on foreign
currency transactions ........... (311) (198,281) 4 -0-
Net change in unrealized
appreciation (depreciation) of
investments ..................... 25,189,137 419,854 123,062,712 9,530,350
Net change in unrealized
appreciation (depreciation) of
foreign currency denominated
assets and liabilities .......... (619) (22,896) -0- -0-
------------- ------------- ------------- -------------
Net gain on investments and
foreign currency transactions ... 49,343,360 3,089,240 178,900,310 6,842,056
------------- ------------- ------------- -------------
NET INCREASE IN NET
ASSETS FROM OPERATIONS ............... $ 49,675,089 $ 3,535,148 $ 176,877,491 $ 7,130,352
============= ============= ============= =============
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
B-46
<PAGE>
STATEMENTS OF OPERATIONS
(continued) Alliance Variable Products Series Fund
================================================================================
<TABLE>
<CAPTION>
Real Estate Utility Worldwide
Investment Technology Income Privatization
Portfolio Portfolio Portfolio Portfolio
--------------- ------------- -------------- --------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends (net of foreign taxes
withheld of $0, $5,105, $2,725
and $65,120, respectively) ... $ 576,847 $ 77,877 $ 468,460 $ 569,203
Interest ....................... 15,945 429,652 60,138 11,595
------------ ------------ ------------ ------------
Total investment income ........ 592,792 507,529 528,598 580,798
------------ ------------ ------------ ------------
EXPENSES
Advisory fee ................... 78,118 766,418 139,102 218,610
Administrative ................. 31,500 31,500 31,500 31,500
Custodian ...................... 31,421 35,474 33,677 92,944
Printing ....................... 3,555 10,943 15,540 21,603
Amortization of organization
expenses ..................... 1,982 2,130 1,078 992
Audit and legal ................ 1,292 10,364 10,887 5,195
Directors' fees ................ 723 1,191 683 1,358
Transfer agency ................ 510 543 492 450
Miscellaneous .................. 2,619 2,684 2,928 4,520
------------ ------------ ------------ ------------
Total expenses ................. 151,720 861,247 235,887 377,172
Less: expenses waived and
reimbursed ................... (69,262) (133,150) (59,691) (169,492)
------------ ------------ ------------ ------------
Net expenses ................... 82,458 728,097 176,196 207,680
------------ ------------ ------------ ------------
Net investment income (loss) ... 510,334 (220,568) 352,402 373,118
------------ ------------ ------------ ------------
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY
TRANSACTIONS
Net realized gain (loss) on
investment transactions ...... (1,158,732) 8,422,213 1,886,610 1,355,030
Net realized loss on foreign
currency transactions ........ -0- -0- (28) (61,567)
Net change in unrealized
appreciation (depreciation) of
investments .................. 1,604,545 14,761,086 2,347,523 4,681,373
Net change in unrealized
appreciation (depreciation) of
foreign currency denominated
assets and liabilities ....... -0- -0- (678) (38,770)
------------ ------------ ------------ ------------
Net gain on investments and
foreign currency transactions 445,813 23,183,299 4,233,427 5,936,066
------------ ------------ ------------ ------------
NET INCREASE IN NET
ASSETS FROM OPERATIONS ............ $ 956,147 $ 22,962,731 $ 4,585,829 $ 6,309,184
============ ============ ============ ============
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
B-47
<PAGE>
Alliance Variable Products Series Fund
================================================================================
<TABLE>
<CAPTION>
Global Dollar North American
Global Bond Government High-Yield Government Income
Portfolio Portfolio Portfolio Portfolio
---------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Interest ......................... $ 936,010 $ 543,435 $ 1,020,945 $ 1,698,862
----------- ----------- ----------- -----------
EXPENSES
Advisory fee ..................... 125,222 33,488 69,257 98,074
Custodian ........................ 35,372 37,314 35,939 30,952
Administrative ................... 31,500 31,500 31,500 31,500
Audit and legal .................. 4,958 1,713 1,669 6,466
Printing ......................... 4,365 3,165 1,010 677
Directors' fees .................. 1,047 600 824 889
Transfer agency .................. 512 485 493 460
Amortization of organization
expenses ....................... -0- 1,105 -0- 1,429
Miscellaneous .................... 2,315 3,174 1,463 1,668
----------- ----------- ----------- -----------
Total expenses ................... 205,291 112,544 142,155 172,115
Less: expenses waived and
reimbursed ..................... (31,500) (70,125) (54,429) (31,500)
----------- ----------- ----------- -----------
Net expenses ..................... 173,791 42,419 87,726 140,615
----------- ----------- ----------- -----------
Net investment income ............ 762,219 501,016 933,219 1,558,247
----------- ----------- ----------- -----------
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY
TRANSACTIONS
Net realized gain (loss) on
investment transactions ........ 964 (1,376,749) (1,570,327) 241,763
Net realized loss on foreign
currency transactions .......... (36,620) -0- -0- (304,514)
Net change in unrealized
appreciation (depreciation) of
investments .................... (3,905,229) 1,501,337 194,266 (211,945)
Net change in unrealized
appreciation (depreciation) of
foreign currency denominated
assets and liabilities ......... (80,631) -0- -0- 377
----------- ----------- ----------- -----------
Net gain (loss) on investments and
foreign currency transactions .. (4,021,516) 124,588 (1,376,061) (274,319)
----------- ----------- ----------- -----------
NET INCREASE (DECREASE)
IN NET ASSETS FROM
OPERATIONS .......................... $(3,259,297) $ 625,604 $ (442,842) $ 1,283,928
=========== =========== =========== ===========
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
B-48
<PAGE>
STATEMENTS OF OPERATIONS
(continued) Alliance Variable Products Series Fund
================================================================================
<TABLE>
<CAPTION>
Short-Term U.S. Government/
Multi-Market High Grade Securities Money Market
Portfolio Portfolio Portfolio
------------ --------------------- ------------
<S> <C> <C> <C>
INVESTMENT INCOME
Interest ........................................... $ 198,020 $ 1,790,816 $ 3,270,915
----------- ----------- -----------
EXPENSES
Advisory fee ....................................... 18,695 174,643 328,609
Distribution fee - Class B ......................... -0- 8 2
Administrative ..................................... 31,500 31,500 31,500
Custodian .......................................... 31,429 27,006 41,516
Directors' fees .................................... 1,025 1,219 849
Audit and legal .................................... 916 3,320 13,060
Printing ........................................... 782 3,424 6,433
Transfer agency .................................... 490 535 392
Miscellaneous ...................................... 1,175 165 3,440
----------- ----------- -----------
Total expenses ..................................... 86,012 241,820 425,801
Less: expenses waived and reimbursed ............... (53,719) -0- -0-
----------- ----------- -----------
Net expenses ....................................... 32,293 241,820 425,801
----------- ----------- -----------
Net investment income .............................. 165,727 1,548,996 2,845,114
----------- ----------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY
TRANSACTIONS
Net realized gain (loss) on investment transactions (22,393) (900,750) 63
Net realized gain on foreign currency transactions.. 107,021 3,257 -0-
Net change in unrealized appreciation (depreciation)
of investments ................................... (169,029) (2,352,872) -0-
Net change in unrealized appreciation (depreciation)
of foreign currency denominated assets and
liabilities ...................................... 49,510 -0- -0-
----------- ----------- -----------
Net gain (loss) on investments and foreign currency
transactions ..................................... (34,891) (3,250,365) 63
----------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS ....................................... $ 130,836 $(1,701,369) $ 2,845,177
=========== =========== ===========
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
B-49
<PAGE>
STATEMENTS OF CHANGES
IN NET ASSETS Alliance Variable Products Series Fund
================================================================================
<TABLE>
<CAPTION>
Conservative Investors Portfolio
Six Months Ended Year Ended
June 30, 1999 December 31,
(Unaudited) 1998
---------------- -------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income ................................................. $ 646,736 $ 1,293,443
Net realized gain on investments and foreign currency transactions .... 1,539,519 1,744,403
Net change in unrealized appreciation (depreciation) of investments and
foreign currency denominated assets and liabilities ................. (1,615,191) 1,547,074
------------ ------------
Net increase in net assets from operations ............................ 571,064 4,584,920
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A ............................................................. (1,308,186) (983,527)
Net realized gain on investments
Class A ............................................................. (1,740,988) (1,277,811)
CAPITAL STOCK TRANSACTIONS
Net increase (decrease) ............................................... (398,996) 4,820,709
------------ ------------
Total increase (decrease) ............................................. (2,877,106) 7,144,291
NET ASSETS
Beginning of year ..................................................... 37,340,672 30,196,381
------------ ------------
End of period (including undistributed net
investment income of $632,513
and $1,293,963, respectively) ....................................... $ 34,463,566 $ 37,340,672
============ ============
<CAPTION>
Growth Investors Portfolio
Six Months Ended Year Ended
June 30, 1999 December 31,
(Unaudited) 1998
---------------- -------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income .................................................. $ 192,820 $ 315,400
Net realized gain on investments and foreign currency transactions ..... 2,249,262 1,521,478
Net change in unrealized appreciation (depreciation) of investments and
foreign currency denominated assets and liabilities .................. (1,393,154) 2,044,183
------------ ------------
Net increase in net assets from operations ............................. 1,048,928 3,881,061
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A .............................................................. (322,580) (214,940)
Net realized gain on investments
Class A .............................................................. (1,494,582) (1,371,580)
CAPITAL STOCK TRANSACTIONS
Net increase (decrease) ................................................ (1,320,087) 2,134,021
------------ ------------
Total increase (decrease) .............................................. (2,088,321) 4,428,562
NET ASSETS
Beginning of year ...................................................... 21,028,472 16,599,910
------------ ------------
End of period (including undistributed net investment income of $180,418
and $310,178, respectively) .......................................... $ 18,940,151 $ 21,028,472
============ ============
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
B-50
<PAGE>
STATEMENTS OF CHANGES
IN NET ASSETS (continued) Alliance Variable Products Series Fund
================================================================================
<TABLE>
<CAPTION>
Total Return Portfolio
Six Months Ended Year Ended
June 30, 1999 December 31,
(Unaudited) 1998
---------------- ---------------
<S> <C> <C>
INCREASE IN NET ASSETS FROM OPERATIONS
Net investment income ................................................... $ 751,547 $ 1,227,924
Net realized gain on investments and foreign currency transactions ...... 3,277,117 4,687,411
Net change in unrealized appreciation of investments and foreign currency
denominated assets and liabilities .................................... 944,633 2,033,090
------------- -------------
Net increase in net assets from operations .............................. 4,973,297 7,948,425
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A ............................................................... (1,231,521) (828,887)
Net realized gain on investments
Class A ............................................................... (4,690,187) (3,824,313)
CAPITAL STOCK TRANSACTIONS
Net increase ............................................................ 10,535,192 13,248,556
------------- -------------
Total increase .......................................................... 9,586,781 16,543,781
NET ASSETS
Beginning of year ....................................................... 59,463,750 42,919,969
------------- -------------
End of period (including undistributed net investment income of $741,439
and $1,221,413, respectively) ......................................... $ 69,050,531 $ 59,463,750
============= =============
<CAPTION>
Growth and Income Portfolio
Six Months Ended Year Ended
June 30, 1999 December 31,
(Unaudited) 1998
---------------- ---------------
<S> <C> <C>
INCREASE IN NET ASSETS FROM OPERATIONS
Net investment income ................................................... $ 1,568,365 $ 3,319,311
Net realized gain on investments and foreign currency transactions ...... 20,130,074 42,675,250
Net change in unrealized appreciation of investments and foreign currency
denominated assets and liabilities .................................... 37,315,840 13,019,417
------------- -------------
Net increase in net assets from operations .............................. 59,014,279 59,013,978
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A ............................................................... (3,318,107) (2,226,956)
Net realized gain on investments
Class A ............................................................... (42,704,228) (28,160,219)
CAPITAL STOCK TRANSACTIONS
Net increase ............................................................ 88,670,528 102,785,943
------------- -------------
Total increase .......................................................... 101,662,472 131,412,746
NET ASSETS
Beginning of year ....................................................... 381,614,341 250,201,595
------------- -------------
End of period (including undistributed net investment income of
$1,532,202 and $3,281,944, respectively) .............................. $ 483,276,813 $ 381,614,341
============= =============
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
B-51
<PAGE>
Alliance Variable Products Series Fund
================================================================================
<TABLE>
<CAPTION>
Growth Portfolio
Six Months Ended Year Ended
June 30, 1999 December 31,
(Unaudited) 1998
---------------- ---------------
<S> <C> <C>
INCREASE IN NET ASSETS FROM OPERATIONS
Net investment income ................................................... $ 331,729 $ 1,173,874
Net realized gain on investments and foreign currency transactions ...... 24,154,842 28,074,041
Net change in unrealized appreciation of investments and foreign currency
denominated assets and liabilities .................................... 25,188,518 41,502,598
------------- -------------
Net increase in net assets from operations .............................. 49,675,089 70,750,513
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A ............................................................... (1,078,121) (667,879)
Net realized gain on investments
Class A ............................................................... (28,188,611) (15,606,121)
CAPITAL STOCK TRANSACTIONS
Net increase ............................................................ 33,473,673 38,329,947
------------- -------------
Total increase .......................................................... 53,882,030 92,806,460
NET ASSETS
Beginning of year ....................................................... 328,681,445 235,874,985
------------- -------------
End of period (including undistributed net income of $410,726 and
$1,157,118, respectively) ............................................. $ 382,563,475 $ 328,681,445
============= =============
<CAPTION>
International Portfolio
Six Months Ended Year Ended
June 30, 1999 December 31,
(Unaudited) 1998
---------------- ---------------
<S> <C> <C>
INCREASE IN NET ASSETS FROM OPERATIONS
Net investment income ................................................... $ 445,908 $ 697,067
Net realized gain on investments and foreign currency transactions ...... 2,692,282 2,211,966
Net change in unrealized appreciation of investments and foreign currency
denominated assets and liabilities .................................... 396,958 5,095,509
------------- -------------
Net increase in net assets from operations .............................. 3,535,148 8,004,542
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A ............................................................... (553,389) (1,367,666)
Net realized gain on investments
Class A ............................................................... (1,787,594) (2,040,979)
CAPITAL STOCK TRANSACTIONS
Net decrease ............................................................ (4,297,311) (254,502)
------------- -------------
Total increase (decrease) ............................................... (3,103,146) 4,341,395
NET ASSETS
Beginning of year ....................................................... 65,051,793 60,710,398
------------- -------------
End of period (including undistributed net investment income of $259,527
and $367,008, respectively) ........................................... $ 61,948,647 $ 65,051,793
============= =============
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
B-52
<PAGE>
STATEMENTS OF CHANGES
IN NET ASSETS (continued) Alliance Variable Products Series Fund
================================================================================
<TABLE>
<CAPTION>
Premier Growth Portfolio
Six Months Ended Year Ended
June 30, 1999 December 31,
(Unaudited) 1998
---------------- ---------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment loss .................................................... $ (2,022,819) $ (327,127)
Net realized gain on investments and foreign currency transactions ..... 55,837,598 31,022,713
Net change in unrealized appreciation (depreciation) of investments and
foreign currency denominated assets and liabilities .................. 123,062,712 291,597,182
--------------- ---------------
Net increase in net assets from operations ............................. 176,877,491 322,292,768
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A .............................................................. -0- (748,382)
Net realized gain on investments
Class A .............................................................. (23,280,324) -0-
CAPITAL STOCK TRANSACTIONS
Net increase ........................................................... 321,972,312 453,383,779
--------------- ---------------
Total increase ......................................................... 475,569,479 774,928,165
NET ASSETS
Beginning of year ...................................................... 1,247,254,270 472,326,105
--------------- ---------------
End of period .......................................................... $ 1,722,823,749 $ 1,247,254,270
=============== ===============
<CAPTION>
Quasar Portfolio
Six Months Ended Year Ended
June 30, 1999 December 31,
(Unaudited) 1998
---------------- ---------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income .................................................. $ 288,296 $ 414,211
Net realized loss on investments and foreign currency transactions ..... (2,688,294) (3,461,226)
Net change in unrealized appreciation (depreciation) of investments and
foreign currency denominated assets and liabilities .................. 9,530,350 (1,930,679)
--------------- ---------------
Net increase (decrease) in net assets from operations .................. 7,130,352 (4,977,694)
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A .............................................................. (312,238) (58,060)
Net realized gain on investments
Class A .............................................................. -0- (6,038,262)
CAPITAL STOCK TRANSACTIONS
Net increase ........................................................... 50,975,675 42,667,086
--------------- ---------------
Total increase ......................................................... 57,793,789 31,593,070
NET ASSETS
Beginning of year ...................................................... 90,870,238 59,277,168
--------------- ---------------
End of period (including undistributed net investment income of $237,378
and $261,320, respectively) .......................................... $ 148,664,027 $ 90,870,238
=============== ===============
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
B-53
<PAGE>
Alliance Variable Products Series Fund
================================================================================
<TABLE>
<CAPTION>
Real Estate Investment Portfolio
Six Months Ended Year Ended
June 30, 1999 December 31,
(Unaudited) 1998
---------------- ---------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income .................................................. $ 510,334 $ 793,118
Net realized loss on investments and foreign currency transactions ..... (1,158,732) (314,101)
Net change in unrealized appreciation (depreciation) of investments and
foreign currency denominated assets and liabilities .................. 1,604,545 (4,050,201)
------------- -------------
Net increase (decrease) in net assets from operations .................. 956,147 (3,571,184)
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A .............................................................. (845,701) (240,978)
Net realized gain on investments
Class A .............................................................. -0- (104,773)
CAPITAL STOCK TRANSACTONS
Net increase ........................................................... 2,351,291 7,302,437
------------- -------------
Total increase ......................................................... 2,461,737 3,385,502
NET ASSETS
Beginning of year ...................................................... 17,079,559 13,694,057
------------- -------------
End of period (including undistributed net investment income of $498,818
and $834,185, respectively) .......................................... $ 19,541,296 $ 17,079,559
============= =============
<CAPTION>
Technology Portfolio
Six Months Ended Year Ended
June 30, 1999 December 31,
(Unaudited) 1998
---------------- ---------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment loss .................................................... $ (220,568) $ (269,678)
Net realized gain on investments and foreign currency transactions ..... 8,422,213 2,981,897
Net change in unrealized appreciation (depreciation) of investments and
foreign currency denominated assets and liabilities .................. 14,761,086 45,284,402
------------- -------------
Net increase in net assets from operations ............................. 22,962,731 47,996,621
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A .............................................................. -0- (121,060)
Net realized gain on investments
Class A .............................................................. (356,801) -0-
CAPITAL STOCK TRANSACTIONS
Net increase ........................................................... 35,667,299 13,486,268
------------- -------------
Total increase ......................................................... 58,273,229 61,361,829
NET ASSETS
Beginning of year ...................................................... 130,601,662 69,239,833
------------- -------------
End of period (including undistributed net investment income of $283 at
December 31, 1998) ................................................... $ 188,874,891 $ 130,601,662
============= =============
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
B-54
<PAGE>
STATEMENTS OF CHANGES
IN NET ASSETS (continued) Alliance Variable Products Series Fund
================================================================================
<TABLE>
<CAPTION>
Utility Income Portfolio
Six Months Ended Year Ended
June 30, 1999 December 31,
(Unaudited) 1998
---------------- --------------
<S> <C> <C>
INCREASE IN NET ASSETS FROM OPERATIONS
Net investment income .................................................. $ 352,402 $ 573,673
Net realized gain on investments and foreign currency transactions ..... 1,886,582 1,038,950
Net change in unrealized appreciation (depreciation) of investments and
foreign currency denominated assets and liabilities .................. 2,346,845 4,488,575
------------ ------------
Net increase in net assets from operations ............................. 4,585,829 6,101,198
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A .............................................................. (573,650) (467,584)
Net realized gain on investments
Class A .............................................................. (1,041,778) (217,903)
CAPITAL STOCK TRANSACTIONS
Net increase ........................................................... 4,278,815 8,673,520
------------ ------------
Total increase ......................................................... 7,249,216 14,089,231
NET ASSETS
Beginning of year ...................................................... 34,436,237 20,347,006
------------ ------------
End of period (including undistributed net investment income of $346,393
and $567,409, respectively) .......................................... $ 41,685,453 $ 34,436,237
============ ============
Worldwide Privatization Portfolio
Six Months Ended Year Ended
June 30, 1999 December 31,
(Unaudited) 1998
---------------- --------------
<S> <C> <C>
INCREASE IN NET ASSETS FROM OPERATIONS
Net investment income .................................................. $ 373,118 $ 797,477
Net realized gain on investments and foreign currency transactions ..... 1,293,463 2,235,067
Net change in unrealized appreciation (depreciation) of investments and
foreign currency denominated assets and liabilities .................. 4,642,603 1,068,120
------------ ------------
Net increase in net assets from operations ............................. 6,309,184 4,100,664
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A .............................................................. (823,765) (602,038)
Net realized gain on investments
Class A .............................................................. (2,431,306) (2,230,552)
CAPITAL STOCK TRANSACTIONS
Net increase (decrease) ................................................ (3,586,416) 3,181,810
------------ ------------
Total increase (decrease) .............................................. (532,303) 4,449,884
NET ASSETS
Beginning of year ...................................................... 46,267,849 41,817,965
------------ ------------
End of period (including undistributed net investment income of $366,374
and $817,021, respectively) .......................................... $ 45,735,546 $ 46,267,849
============ ============
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
B-55
<PAGE>
Alliance Variable Products Series Fund
================================================================================
<TABLE>
<CAPTION>
Global Bond Portfolio
Six Months Ended Year Ended
June 30, 1999 December 31,
(Unaudited) 1998
---------------- --------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income ................................................... $ 762,219 $ 1,108,817
Net realized gain (loss) on investments and foreign currency transactions (35,656) 35,057
Net change in unrealized appreciation (depreciation) of investments and
foreign currency denominated assets and liabilities ................... (3,985,860) 2,427,349
------------ ------------
Net increase (decrease) in net assets from operations ................... (3,259,297) 3,571,223
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A ............................................................... (1,344,306) (359,373)
Net realized gain on investments
Class A ............................................................... (153,011) (126,325)
CAPITAL STOCK TRANSACTIONS
Net increase ............................................................ 13,910,066 9,372,064
------------ ------------
Total increase .......................................................... 9,153,452 12,457,589
NET ASSETS
Beginning of year ....................................................... 34,651,934 22,194,345
------------ ------------
End of period (including undistributed net investment income of $285,755
and $867,842, respectively) ........................................... $ 43,805,386 $ 34,651,934
============ ============
<CAPTION>
Global Dollar Government Portfolio
Six Months Ended Year Ended
June 30, 1999 December 31,
(Unaudited) 1998
---------------- --------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income ................................................... $ 501,016 $ 1,310,397
Net realized loss on investments and foreign currency transactions ...... (1,376,749) (2,456,480)
Net change in unrealized appreciation (depreciation) of investments and
foreign currency denominated assets and liabilities ................... 1,501,337 (2,200,919)
------------ ------------
Net increase (decrease) in net assets from operations ................... 625,604 (3,347,002)
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A ............................................................... (1,308,548) (1,020,590)
Net realized gain on investments
Class A ............................................................... -0- (745,193)
CAPITAL STOCK TRANSACTIONS
Net increase (decrease) ................................................. (1,181,229) 114,249
------------ ------------
Total decrease .......................................................... (1,864,173) (4,998,536)
NET ASSETS
Beginning of year ....................................................... 10,379,908 15,378,444
------------ ------------
End of period (including undistributed net investment income of $489,544
and $1,297,076, respectively) ......................................... $ 8,515,735 $ 10,379,908
============ ============
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
B-56
<PAGE>
STATEMENTS OF CHANGES
IN NET ASSETS (continued) Alliance Variable Products Series Fund
================================================================================
<TABLE>
<CAPTION>
High-Yield Portfolio
Six Months Ended Year Ended
June 30, 1999 December 31,
(Unaudited) 1998
---------------- -------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income .................................................. $ 933,219 $ 1,083,734
Net realized loss on investments and foreign currency transactions ..... (1,570,327) (860,804)
Net change in unrealized appreciation (depreciation) of investments and
foreign currency denominated assets and liabilities .................. 194,266 (1,556,891)
------------ ------------
Net decrease in net assets from operations ............................. (442,842) (1,333,961)
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income
Class A .............................................................. (1,097,239) (11,475)
CAPITAL STOCK TRANSACTIONS
Net increase ........................................................... 5,109,608 17,114,316
------------ ------------
Total increase ......................................................... 3,569,527 15,768,880
NET ASSETS
Beginning of year ...................................................... 16,910,235 1,141,355
------------ ------------
End of period (including undistributed net investment income of $916,177
and $1,080,197, respectively) ........................................ $ 20,479,762 $ 16,910,235
============ ============
<CAPTION>
North American Government Income Portfolio
Six Months Ended Year Ended
June 30, 1999 December 31,
(Unaudited) 1998
---------------- -------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income .................................................. $ 1,558,247 $ 2,994,908
Net realized loss on investments and foreign currency transactions ..... (62,751) (895,371)
Net change in unrealized appreciation (depreciation) of investments and
foreign currency denominated assets assets and liabilities ........... (211,568) (929,103)
------------ ------------
Net increase in net assets from operations ............................. 1,283,928 1,170,434
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A .............................................................. (2,352,761) (2,126,978)
Net realized gain on investments
Class A .............................................................. (303,945) (285,327)
CAPITAL STOCK TRANSACTIONS
Net increase (decrease) ................................................ (1,048,753) 2,793,932
------------ ------------
Total increase (decrease) .............................................. (2,421,531) 1,552,061
NET ASSETS
Beginning of year ...................................................... 32,058,562 30,506,501
------------ ------------
End of period (including undistributed net investment income of $959,490
and $1,754,004, respectively) ........................................ $ 29,637,031 $ 32,058,562
============ ============
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
B-57
<PAGE>
Alliance Variable Products Series Fund
================================================================================
<TABLE>
<CAPTION>
Short-Term Multi-Market Portfolio
Six Months Ended Year Ended
June 30, 1999 December 31,
(Unaudited) 1998
---------------- --------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income .................................................... $ 165,727 $ 379,654
Net realized gain (loss) on investments and foreign currency transactions 84,628 (48,980)
Net change in unrealized appreciation (depreciation) of investments and
foreign currency denominated assets and liabilities .................... (119,519) 59,323
------------ ------------
Net increase in net assets from operations ............................... 130,836 389,997
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A ................................................................ (333,118) (630,815)
CAPITAL STOCK TRANSACTIONS
Net increase ............................................................. 71,873 220,210
------------ ------------
Total decrease ........................................................... (130,409) (20,608)
NET ASSETS
Beginning of year ........................................................ 6,468,824 6,489,432
------------ ------------
End of period (including undistributed net investment income of $27,678
and $195,069, respectively) ............................................ $ 6,338,415 $ 6,468,824
============ ============
<CAPTION>
U.S. Government/High Grade Securities Portfolio
Six Months Ended Year Ended
June 30, 1999 December 31,
(Unaudited) 1998
---------------- --------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income .................................................... $ 1,548,996 $ 2,340,340
Net realized gain (loss) on investments and foreign currency transactions (897,493) 1,404,021
Net change in unrealized appreciation (depreciation) of investments and
foreign currency denominated assets and liabilities .................... (2,352,872) (296,956)
------------ ------------
Net increase (decrease) in net assets from operations .................... (1,701,369) 3,447,405
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A ................................................................ (2,355,508) (1,873,534)
Net realized gain on investments
Class A ................................................................ (1,423,816) (214,996)
CAPITAL STOCK TRANSACTIONS
Net increase ............................................................. 5,242,687 20,861,049
------------ ------------
Total increase (decrease) ................................................ (238,006) 22,219,924
NET ASSETS
Beginning of year ........................................................ 58,417,702 36,197,778
------------ ------------
End of period (including undistributed net investment income of $1,535,439
and $2,341,951, respectively) .......................................... $ 58,179,696 $ 58,417,702
============ ============
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
B-58
<PAGE>
STATEMENTS OF CHANGES
IN NET ASSETS (continued) Alliance Variable Products Series Fund
================================================================================
<TABLE>
<CAPTION>
Money Market Portfolio
Six Months Ended Year Ended
June 30, 1999 December 31,
(Unaudited) 1998
------------ ------------
<S> <C> <C>
INCREASE IN NET ASSETS FROM OPERATIONS
Net investment income .............................................. $ 2,845,114 $ 4,568,135
Net realized gain on investments ................................... 63 178
------------ ------------
Net increase in net assets from operations ......................... 2,845,177 4,568,313
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A .......................................................... (2,845,056) (4,568,135)
Class B .......................................................... (58) -0-
CAPITAL STOCK TRANSACTIONS
Net increase ....................................................... 4,996,987 51,989,705
------------ ------------
Total increase ..................................................... 4,997,050 51,989,883
NET ASSETS
Beginning of year .................................................. 119,573,704 67,583,821
------------ ------------
End of period (including undistributed net investment income of $573
and $573, respectively) .......................................... $124,570,754 $119,573,704
============ ============
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
B-59
<PAGE>
NOTES TO FINANCIAL STATEMENTS
June 30, 1999 (unaudited) Alliance Variable Products Series Fund
================================================================================
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
nineteen separately managed pools of assets which have differing investment
objectives and policies. The Fund currently issues shares of the Conservative
Investors Portfolio, Growth Investors Portfolio, Total Return Portfolio, Growth
and Income Portfolio, Growth Portfolio, International Portfolio, Premier Growth
Portfolio, Quasar Portfolio, Real Estate Investment Portfolio, Technology
Portfolio, Utility Income Portfolio, Worldwide Privatization Portfolio, Global
Bond Portfolio, Global Dollar Government Portfolio, High-Yield Portfolio, North
American Government Income Portfolio, Short-Term Multi-Market Portfolio, U.S.
Government/High Grade Securities Portfolio and Money Market Port folio (the
"Portfolios"). On January 5, 1999, the creation of a second class of shares,
Class B shares, was approved by the Board of Directors. The Fund offers Class A
and Class B shares. Both classes of shares have identical voting, dividend,
liquidating and other rights, except that Class B shares bear a distribution
expense and have exclusive voting rights with respect to the Class B
distribution plan. The investment objectives of each Portfolio are as follows:
Conservative Investors Portfolio--seeks to achieve a high total return without,
in the view of Alliance, undue risk to principal.
Growth Investors Portfolio--seeks to achieve the highest total return consistent
with what Alliance considers to be reasonable risk.
Total Return Portfolio--seeks to achieve a high return through a combination of
current income and capital appreciation.
Growth and Income Portfolio--seeks reasonable current income and reasonable
opportunity for appreciation through investments primarily in dividend-paying
common stocks of good quality.
Growth Portfolio--seeks to provide long-term growth of capital. Current income
is incidental to the Portfolio's objective.
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-U.S. companies (i.e., companies incorporated
outside the U.S.), companies participating in foreign economies with prospects
for growth, and foreign government securities.
Premier Growth Portfolio--seeks growth of capital by pursuing aggressive
investment policies.
Quasar Portfolio--seeks growth of capital by pursuing aggressive investment
policies. Current income is incidental to the Portfolio's objective.
Real Estate Investment Portfolio--seeks total return from long-term growth of
capital and income principally through investing in equity securities of
companies that are primarily engaged in or related to the real estate industry.
Technology Portfolio--seeks growth of capital. Current income is incidental to
the Portfolio's objective.
Utility Income Portfolio--seeks current income and capital appreciation by
investing primarily in equity and fixed-income securities of companies in the
utilities industry.
Worldwide Privatization Portfolio--seeks long-term capital appreciation.
Global Bond Portfolio--seeks a high level of return from a combination of
current income and capital ap preciation by investing in a globally diversified
portfolio of high-quality debt securities denominated in the U.S. Dollar and a
range of foreign currencies.
Global Dollar Government Portfolio--seeks a high level of current income and,
secondarily, capital appreciation.
High-Yield Portfolio--seeks to earn the highest level of current income without
assuming undue risk by investing principally in high-yielding fixed-income
securities rated Baa or lower by Moody's or BBB or lower by S&P, Duff & Phelps
or Fitch or, if unrated, of comparable quality.
North American Government Income Portfolio--seeks the highest level of current
income, consistent with what Alliance considers to be prudent investment risk,
that is available from a portfolio of debt securities issued or guaranteed by
the United States, Canada, or Mexico, their political subdivisions (including
Canadian prov inces, but excluding states of the United States), agencies,
instrumentalities or authorities.
Short-Term Multi-Market Portfolio--seeks the highest level of current income,
consistent with what the Alliance 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.
B-60
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(continued) Alliance Variable Products Series Fund
================================================================================
U.S. Government/High Grade Securities Portfolio--seeks high current income
consistent with preservation of capital.
Money Market Portfolio--seeks safety of principal, excellent liquidity and
maximum current income to the extent consistent with the first two objectives.
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 financial statements have been prepared in conformity with generally
accepted accounting principles which require management to make certain
estimates and assumptions that affect the reported amounts of assets and
liabilities in the financial statements and amounts of income and expenses
during the reporting period. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Fund.
1. Security Valuation
Portfolio securities traded on a national securities exchange or on a foreign
securities exchange (other than foreign securities exchanges whose operations
are similar to those of the United States over-the-counter market) are generally
valued at the last reported sales price or if no sale occurred, at the mean of
the closing bid and asked price on that day. Readily marketable securities
traded in the over-the-counter market, securities listed on a foreign securities
exchange whose operations are similar to the U.S. over-the-counter market, and
securities listed on a national securities exchange whose primary market is
believed to be over-the-counter, are valued at the mean of the current bid and
asked price. U.S. government and fixed income securities which mature in 60 days
or less are valued at amortized cost, unless this method does not represent fair
value. Securities for which current market quotations are not readily available
are valued at their fair value as determined in good faith by, or in accordance
with procedures adopted by, the Board of Directors. Fixed income securities may
be valued on the basis of prices obtained from a pricing service when such
prices are believed to reflect the fair market value of such securities.
Securities in which the Money Market Portfolio invests are valued at amortized
cost, under which method a portfolio instrument is valued at cost and any
premium or discount is amortized on a straight-line basis to maturity.
2. 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 price 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 ex
penses 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 realized gains and losses on foreign currency transactions represent foreign
exchange gains and losses from sales and maturities of securities and forward
exchange currency contracts, holdings of foreign currencies, exchange gains and
losses realized between the trade and settlement dates on investment
transactions, and the difference between the amounts of interest, dividends and
foreign witholding tax reclaims recorded on the Portfolio's books and the U.S.
dollar equivalent amounts actually received or paid. Net currency gains and
losses from valuing foreign currency denominated assets and liabilities at year
end exchange rates are reflected as a component of net unrealized appreciation
(depreciation) of investments and foreign currency denominated assets and
liabilities.
3. Organization Expenses
Organization expenses of each Portfolio have been deferred and are being
amortized on a straight-line basis as follows: Conservative Investors Portfolio
$10,000 through October 1999; Growth Investors Portfolio $10,000 through October
1999; Growth Portfolio $10,000 through September 1999; Quasar Portfolio $26,098
through August 2001; Real Estate Investment Portfolio $20,000 through January
2002; Technology Portfolio $21,500 through January 2001; Worldwide Privatization
Portfolio $10,000 through September 1999. For the following Portfolios the
organization expense was amortized on a straight-line basis as follows: Utility
Income Portfolio $15,299 through April 1999; Global Dollar Government Portfolio
$16,723 through April 1999; North American Government Income Portfolio $21,570
through April 1999.
B-61
<PAGE>
Alliance Variable Products Series Fund
================================================================================
4. 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 any, to
shareholders. Therefore, no provisions for federal income or excise taxes are
required.
5. Investment Income and Investment Transactions
Dividend income is recorded on the ex-dividend date. Interest income is accrued
daily. Investment transactions are accounted for on the trade date securities
are purchased or sold. The Fund accretes discounts as adjustments to interest
income and in the case of the Money Market Portfolio, amortizes premium as well.
Investment gains and losses are determined on the identified cost basis.
6. 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 gains distributions to
shareholders are recorded on the ex-dividend date.
Income dividends and capital gains distributions are determined in accordance
with federal tax regulations and may differ from those determined in accordance
with generally accepted accounting principles. To the extent these differences
are permanent, such amounts are reclassified within the capital accounts based
on their federal tax basis treatment; temporary differences do not require such
reclassification.
- --------------------------------------------------------------------------------
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: Conservative
Investors Portfolio, .75 of 1%; Growth Investors Portfolio, .75 of 1%; Total
Return Portfolio, .625 of 1%; Growth and Income Portfolio, .625 of 1%; Growth
Portfolio, .75 of 1%; International Portfolio, 1%; Premier Growth Portfolio, 1%;
Quasar Portfolio, 1%; Real Estate Investment Portfolio, .90 of 1%; Technology
Portfolio, 1%; Utility Income Portfolio, .75 of 1%; Worldwide Privatization
Portfolio, 1%; Global Bond Portfolio, .65 of 1%; Global Dollar Government
Portfolio, .75 of 1%; High-Yield Portfolio, .75 of 1%; North American Government
Income Portfolio, .65 of 1%; Short-Term Multi-Market Portfolio, .55 of 1%; U.S.
Government/High Grade Securities Portfolio, .60 of 1%; and Money Market
Portfolio, .50 of 1%. The 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 Limited, an affiliate of American International
Group, Inc.
Pursuant to the advisory agreement, the Total Return, Growth & Income, Growth,
Premier Growth, U.S. Government/High Grade Securities and Money Market
Portfolios each paid $31,500, respectively, to the Adviser representing the cost
of certain legal and accounting services provided to the Funds by the Adviser
for the six months ended June 30, 1999.
B-62
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(continued) Alliance Variable Products Series Fund
================================================================================
The Fund compensates Alliance Fund Services, Inc., a wholly-owned subsidiary of
the Adviser, under a Transfer Agency Agreement for providing personnel and
facilities to perform transfer agency services for the Fund. For the six months
ended June 30, 1999, the Fund paid a total of $9,000 which was allocated evenly
among the Portfolios.
During the six months ended June 30, 1999, the Adviser agreed to waive its fee
and to reimburse the additional operating expenses of each Portfolio, except for
the Premier Growth Portfolio, so that expenses did not exceed .95% and 1.20% of
average net assets respectively, for Class A and Class B shares. Expense
waivers/reimbursements, if any, are accrued daily and paid monthly. For the six
months ended June 30, 1999, such waivers/reimbursements amounted to $38,245,
$51,150, $129,426, $135,304, $69,262, $133,150, $59,691, $169,492, $31,500,
$70,125, $54,429 $31,500 and $53,719, for the Conservative Investors Portfolio,
the Growth Investors Portfolio, the International Portfolio, the Quasar
Portfolio, the Real Estate Investment Port folio, the Technology Portfolio, the
Utility Income Portfolio, the Worldwide Privatization Portfolio, Global Bond
Portfolio, the Global Dollar Government Portfolio, the High-Yield Portfolio,
North American Government Income Portfolio and the Short-Term Multi-Market
Portfolio, respectively.
Brokerage commissions paid for the six months ended June 30, 1999, on investment
transactions amounted to $6,271, $6,493, $25,189, $323,457, $248,912, $133,972,
$584,385, $133,909, $21,628, $65,698, $5,484 and $57,707 for the Conservative
Investors Portfolio, the Growth Investors Portfolio, the Total Return
Portfolio, the Growth and Income Portfolio, the Growth Portfolio, the
International Portfolio, the Premier Growth Portfolio, the Quasar Portfolio, the
Real Estate Investment Portfolio, the Technology Portfolio, the Utility Income
Portfolio and the Worldwide Privatization Portfolio, respectively, of which $515
was paid by the Quasar Portfolio and $942 was paid by the Worldwide
Privatization Portfolio to Donaldson, Lufkin & Jenrette Securities Corp., an
affiliate of the Adviser.
- --------------------------------------------------------------------------------
NOTE C: Distribution Plan
Each Portfolio's Distribution Plan permits the Portfolio to pay a distribution
fee of up to 0.50% of the average daily net assets attributable to its Class B
shares. The Fund, on behalf of each Portfolio, has entered into distribution
agreements ("the Class B Distribution Agreements") pursuant to the Distribution
Plans with the Distributor. The Class B Distribution Agreement provides that the
Distributor receives payments from each Portfolio at a rate equal to 0.25% of
the average daily net assets of such Portfolio attributable to Class B shares.
The Distribution Plans provide that the Distributor will use the payments
received under the Class B Distribution Agreement for services rendered (and
expenses borne) in connection with activities primarily intended to result in
the sale of the Fund's Class B shares. Since Distributor's compensation is not
directly tied to its expenses, the amount of compensation received under the
Class B Distribution Agreement during any year may be more or less than actual
expenses. For this reason, the Distribution Plans are characterized by the staff
of the Securities and Exchange Commission as being of the "Compensation"
variety.
- --------------------------------------------------------------------------------
NOTE D: Investment Transactions
Purchases and sales of investment securities (excluding short-term investments)
for the six months ended June 30, 1999, 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>
Conservative Investors ... $ 2,829,133 $ 19,944,690 $ 8,414,993 $ 15,692,369
Growth Investors ......... 5,463,009 6,951,718 9,485,533 2,505,773
Total Return ............. 9,579,725 38,317,598 11,334,693 29,370,914
Growth and Income ........ 149,112,675 -0- 103,087,986 -0-
Growth ................... 118,789,882 -0- 103,280,401 -0-
International ............ 28,591,891 -0- 34,632,829 -0-
Premier Growth ........... 492,484,860 -0- 205,553,260 -0-
Quasar ................... 49,358,443 -0- 36,478,404 -0-
Real Estate Investment ... 5,341,960 -0- 3,264,432 -0-
Technology ............... 67,912,724 -0- 33,993,319 -0-
Utility Income ........... 3,567,494 -0- 2,556,513 -0-
Worldwide Privatization .. 7,817,250 -0- 13,595,095 -0-
Global Bond .............. 21,597,410 6,061,488 9,966,477 3,535,938
Global Dollar Government . 4,937,997 -0- 7,485,985 -0-
High-Yield ............... 28,917,241 -0- 23,155,669 -0-
North American Government
Income ................ 539,957 -0- 115,935 1,754,523
Short-Term Multi-Market .. 325,847 -0- 206,296 -0-
U.S. Government/High Grade
Securities ............ 23,947,170 43,967,562 16,609,945 47,511,746
</TABLE>
B-63
<PAGE>
Alliance Variable Products Series Fund
================================================================================
At June 30, 1999, the cost of investments for federal income tax purposes was
substantially the same as the cost for financial reporting purposes. The gross
un realized appreciation, depreciation and net unrealized appreciation
(depreciation) were as follows (excluding foreign currency transactions):
<TABLE>
<CAPTION>
Net
Gross Unrealized Unrealized
----------------------------- Appreciation
Portfolio Appreciation Depreciation (Depreciation)
- --------- ------------ ------------ --------------
<S> <C> <C> <C>
Conservative Investors .............. $ 1,368,697 $ (222,872) $ 1,145,825
Growth Investors .................... 2,003,782 (263,479) 1,740,303
Total Return ........................ 8,709,557 (2,222,755) 6,486,802
Growth and Income ................... 91,192,887 (12,491,348) 78,701,539
Growth .............................. 136,108,863 (15,560,911) 120,547,952
International ....................... 9,535,191 (2,490,993) 7,044,198
Premier Growth ...................... 534,724,847 (29,954,730) 504,770,117
Quasar .............................. 13,387,951 (5,560,926) 7,827,025
Real Estate Investment .............. 191,506 (1,604,701) (1,413,195)
Technology .......................... 68,748,683 (3,311,946) 65,436,737
Utility Income ...................... 11,847,193 (673,690) 11,173,503
Worldwide Privatization ............. 9,691,890 (3,080,220) 6,611,670
Global Bond ......................... 193,474 (1,704,716) (1,511,242)
Global Dollar Government ............ 285,533 (1,057,600) (772,067)
High-Yield .......................... 210,458 (1,561,525) (1,351,067)
North American Government Income .... 607,853 (836,146) (228,293)
Short-Term Multi-Market ............. 7,776 (244,911) (237,135)
U.S. Government/High Grade Securities 8,780 (1,996,963) (1,988,183)
</TABLE>
At December 31, 1998, for federal income tax purposes, Quasar, Real Estate,
Global Dollar Government, High Yield, Short-Term Multi-Market Trust and Money
Market Portfolios had net capital loss carryforwards of $1,214,862 which expires
in the year 2006, $191,303 which ex pires in the year 2006, $2,000,064 which
expires in the year 2006, $63,971 which expires in the year 2006, $1,135,696 (of
which $5,518 expires in the year 2000, $150,822 expires in the year 2002,
$941,593 expires in the year 2003, $32,651 expires in the year 2005 and $5,112
expires in the year 2006), $463 (of which $165 expires in the year 2004 and $298
expires in the year 2005).
1. Forward Exchange Currency Contracts
The Global Bond and Short-Term Multi-Market Portfolios enter into forward
exchange currency contracts to hedge exposure to changes in foreign currency ex
change rates on foreign portfolio holdings, to hedge certain firm purchase and
sales commitments denominated in foreign currencies and for investment purposes.
A forward exchange currency 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 contracts and
the closing of such contracts 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.
Each Portfolio's custodian will place and maintain cash not available for
investment or other liquid assets in a separate account of the Portfolio having
a value equal to the aggregate amount of the respective portfolios 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. The face or contract amount, in U.S.
dollars, reflects the total exposure each
B-64
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(continued) Alliance Variable Products Series Fund
================================================================================
Portfolio has in that particular currency contract.
At June 30, 1999, the outstanding forward ex change currency contracts were as
follows:
GLOBAL BOND PORTFOLIO:
<TABLE>
<CAPTION>
U.S. $
Contract Value on U.S. $ Unrealized
Amount Origination Current Appreciation
(000) Date Value (Depreciation)
---------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C>
Foreign Currency Buy Contracts
Euro Dollar, settling 8/26/99..... 1,200 $1,267,560 $1,242,218 $(25,342)
Japanese Yen, settling 8/26/99.... 90,000 755,623 750,086 (5,537)
--------
$(30,879)
========
Foreign Currency Sale Contracts
Euro Dollar, settling 8/26/99..... 3,200 $3,375,456 $3,312,581 $62,875
Japanese Yen, settling 8/26/99.... 270,000 2,207,559 2,250,257 (42,698)
--------
$20,177
========
SHORT-TERM MULTI-MARKET PORTFOLIO:
U.S. $
Contract Value on U.S. $ Unrealized
Amount Origination Current Appreciation
(000) Date Value (Depreciation)
---------------- ---------------- ---------------- ----------------
Foreign Currency Buy Contracts
Euro Dollar, settling 7/20/99..... 200 $ 209,196 $ 206,469 $(2,727)
Swedish Krona, settling 7/20/99... 1,800 214,178 212,294 (1,884)
--------
$(4,611)
========
Foreign Currency Sale Contracts
Danish Kroner, settling 7/07/99... 2,000 $ 287,749 $ 277,429 $10,320
Euro Dollars, settling 7/20/99 - 9/13/99 1,331 1,423,592 1,377,042 46,550
New Zealand Dollar, settling 7/27/99 1,303 696,202 690,326 5,876
Norwegian Kroner, settling 7/07/99 672 84,231 85,305 (1,074)
Pound Sterling, settling 7/23/99.. 78 123,965 123,375 590
Swedish Kronas, settling 7/20/99 - 7/26/99 5,238 619,741 617,923 1,818
--------
$64,080
========
</TABLE>
2. Option Transactions
For hedging and investment purposes, the Portfolios purchase and write (sell)
put and call options on U.S. securities that are traded on U.S. securities
exchanges and over-the-counter markets.
The risk associated with purchasing an option is that the Portfolio pays a
premium whether or not the option is exercised. Additionally, the Portfolio
bears the risk of loss of premium and change in market value should the
counterparty not perform under the contract. Put and call options purchased are
accounted for in the same manner as portfolio securities. The cost of securities
acquired through the exercise of call options is increased by premiums paid. The
proceeds from securities sold through the exercise of put options are decreased
by the premiums paid.
When the Portfolio writes an option, 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 written options which expire
unexercised are recorded by the Portfolio on the expiration date as realized
gains from option written. The difference between the premium received and the
amount paid on effecting a closing purchase transaction, including brokerage
commissions, is also treated as a realized gain, or if the premium received is
less than the amount paid for the closing purchase transaction, as a realized
loss. If a call option is exercised, the premium received 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 received
B-65
<PAGE>
Alliance Variable Products Series Fund
================================================================================
reduces the cost basis of the security or currency purchased by the Portfolio.
In writing an option, the Portfolio bears the market risk of an unfavorable
change 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.
For the six months ended June 30, 1999, the Portfolio did not engage in any
option transactions.
- -------------------------------------------------------------------------------
NOTE E: Capital Stock
There are 20,000,000,000 shares of capital stock, $.001 par value per share of
the Fund authorized divided into two classes, designated Class A and Class B.
Each consists of 10,000,000,000 authorized shares. Transactions in capital stock
were as follows:
<TABLE>
<CAPTION>
Conservative Investors Portfolio
----------------------------------- ----------------------------------
SHARES AMOUNT
----------------------------------- ----------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 1999 December 31, June 30, 1999 December 31,
(unaudited) 1998 (unaudited) 1998
---------------- ----------- ---------------- -----------
<S> <C> <C> <C> <C>
Class A
Shares sold .................... 86,383 675,652 $1,219,539 $9,097,687
Shares issued in reinvestment of
dividends and distributions . 237,845 171,184 3,049,175 2,261,337
Shares redeemed ................ (331,236) (489,669) (4,667,710) (6,538,315)
------- ------- ---------- ----------
Net increase (decrease) ........ (7,008) 357,167 $ (398,996) $4,820,709
======= ======= ========== ==========
<CAPTION>
Growth Investors Portfolio
----------------------------------- ----------------------------------
SHARES AMOUNT
----------------------------------- ----------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 1999 December 31, June 30, 1999 December 31,
(unaudited) 1998 (unaudited) 1998
---------------- ----------- ---------------- -----------
<S> <C> <C> <C> <C>
Class A
Shares sold .................... 31,188 263,760 $ 524,890 $4,023,709
Shares issued in reinvestment of
dividends and distributions . 121,063 105,839 1,817,162 1,586,520
Shares redeemed ................ (216,843) (235,959) (3,662,139) (3,476,208)
------- ------- ----------- ----------
Net increase (decrease) ........ (64,592) 133,640 $(1,320,087) $2,134,021
======= ======= =========== ==========
<CAPTION>
Total Return Portfolio
----------------------------------- ----------------------------------
SHARES AMOUNT
----------------------------------- ----------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 1999 December 31, June 30, 1999 December 31,
(unaudited) 1998 (unaudited) 1998
---------------- ----------- ---------------- -----------
<S> <C> <C> <C> <C>
Class A
Shares sold .................... 619,535 1,066,045 $11,371,238 $18,467,616
Shares issued in reinvestment of
dividends and distributions . 346,907 274,525 5,921,708 4,653,200
Shares redeemed ................ (360,982) (583,936) (6,757,754) (9,872,260)
-------- -------- ----------- -----------
Net increase ................... 605,460 756,634 $10,535,192 $13,248,556
======== ======== =========== ===========
</TABLE>
B-66
<PAGE>
Notes To Financial Statements
(continued) Alliance Variable Products Series Fund
================================================================================
<TABLE>
<CAPTION>
Growth and Income Portfolio
----------------------------------- ----------------------------------
SHARES AMOUNT
----------------------------------- ----------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 1999 December 31, June 30, 1999 December 31,
(unaudited) 1998 (unaudited) 1998
---------------- ----------- ---------------- -----------
<S> <C> <C> <C> <C>
Class A
Shares sold .................... 3,129,726 5,339,328 $70,615,500 $109,529,029
Shares issued in reinvestment of
dividends and distributions . 2,179,088 1,482,301 46,022,335 30,387,175
Shares redeemed ................ (1,299,543) (1,904,291) (29,705,850) (37,130,261)
--------- --------- ----------- ------------
Net increase ................... 4,009,271 4,917,338 $86,931,985 $102,785,943
========= ========= =========== ============
<CAPTION>
June 1, 1999* to June 1, 1999* to
June 30, 1999 June 30, 1999
(unaudited) (unaudited)
---------------- ----------------
<S> <C> <C>
Class B
Shares sold .................... 79,589 $1,738,543
------ ----------
Net increase ................... 79,589 $1,738,543
====== ==========
<CAPTION>
Growth Portfolio
----------------------------------- ----------------------------------
SHARES AMOUNT
----------------------------------- ----------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 1999 December 31, June 30, 1999 December 31,
(unaudited) 1998 (unaudited) 1998
---------------- ----------- ---------------- -----------
<S> <C> <C> <C> <C>
Class A
Shares sold .................... 930,220 2,150,440 $26,489,113 $51,763,496
Shares issued in reinvestment of
dividends and distributions . 1,101,081 657,801 29,266,731 16,274,000
Shares redeemed ................ (804,921) (1,267,396) (22,944,319) (29,707,549)
--------- --------- ----------- -----------
Net increase ................... 1,226,380 1,540,845 $32,811,525 $38,329,947
========= ========= =========== ===========
<CAPTION>
June 1, 1999* to June 1, 1999* to
June 30, 1999 June 30, 1999
(unaudited) (unaudited)
---------------- ----------------
<S> <C> <C>
Class B
Shares sold....................... 24,022 $ 662,148
------ ----------
Net increase...................... 24,022 $ 662,148
====== ==========
</TABLE>
- --------------------------------------------------------------------------------
* Commencement of distributions.
B-67
<PAGE>
Alliance Variable Products Series Fund
================================================================================
<TABLE>
<CAPTION>
International Portfolio
----------------------------------- ----------------------------------
SHARES AMOUNT
----------------------------------- ----------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 1999 December 31, June 30, 1999 December 31,
(unaudited) 1998 (unaudited) 1998
---------------- ----------- ---------------- -----------
<S> <C> <C> <C> <C>
Class A
Shares sold .................... 2,640,956 8,028,440 $43,283,152 $130,223,344
Shares issued in reinvestment of
dividends and distributions . 149,679 209,505 2,340,983 3,408,645
Shares redeemed ................ (3,027,047) (8,256,225) (49,921,446) (133,886,491)
--------- --------- ----------- -----------
Net decrease ................... (236,412) (18,280) $(4,297,311) $ (254,502)
========= ========= =========== ===========
<CAPTION>
Premier Growth Portfolio
----------------------------------- ----------------------------------
SHARES AMOUNT
----------------------------------- ----------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 1999 December 31, June 30, 1999 December 31,
(unaudited) 1998 (unaudited) 1998
---------------- ----------- ---------------- -----------
<S> <C> <C> <C> <C>
Class A
Shares sold .................... 12,652,954 21,307,889 $422,833,629 $546,039,957
Shares issued in reinvestment of
dividends and distributions . 743,305 27,956 23,280,324 748,382
Shares redeemed ................ (3,760,529) (3,650,182) (124,141,641) (93,404,560)
--------- --------- ----------- -----------
Net increase ................... 9,635,730 17,685,663 $321,972,312 $453,383,779
========= ========= =========== ===========
<CAPTION>
Quasar Portfolio
----------------------------------- ----------------------------------
SHARES AMOUNT
----------------------------------- ----------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 1999 December 31, June 30, 1999 December 31,
(unaudited) 1998 (unaudited) 1998
---------------- ----------- ---------------- -----------
<S> <C> <C> <C> <C>
Class A
Shares sold .................... 6,469,873 4,852,440 $73,815,500 $56,389,957
Shares issued in reinvestment of
dividends and distributions . 27,705 471,122 312,238 6,096,321
Shares redeemed ................ (2,088,781) (1,865,305) (23,152,063) (19,819,192)
--------- --------- ----------- -----------
Net increase ................... 4,408,797 3,458,257 $50,975,675 $42,667,086
========= ========= =========== ===========
<CAPTION>
Real Estate Investment Portfolio
----------------------------------- ----------------------------------
SHARES AMOUNT
----------------------------------- ----------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 1999 December 31, June 30, 1999 December 31,
(unaudited) 1998 (unaudited) 1998
---------------- ----------- ---------------- -----------
<S> <C> <C> <C> <C>
Class A
Shares sold .................... 483,666 1,017,147 $ 4,792,964 $11,445,744
Shares issued in reinvestment of
dividends and distributions . 84,995 31,720 845,701 345,751
Shares redeemed ................ (343,132) (411,779) (3,287,374) (4,489,058)
-------- -------- ----------- -----------
Net increase ................... 225,529 637,088 $ 2,351,291 $ 7,302,437
======== ======== =========== ===========
</TABLE>
B-68
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(continued) Alliance Variable Products Series Fund
================================================================================
<TABLE>
<CAPTION>
Technology Portfolio
----------------------------------- ----------------------------------
SHARES AMOUNT
----------------------------------- ----------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 1999 December 31, June 30, 1999 December 31,
(unaudited) 1998 (unaudited) 1998
---------------- ----------- ---------------- -----------
<S> <C> <C> <C> <C>
Class A
Shares sold .................... 3,329,814 2,683,902 $68,336,653 $39,262,852
Shares issued in reinvestment of
dividends ................... 17,795 8,130 356,801 121,060
Shares redeemed ................ (1,606,447) (1,789,557) (33,026,155) (25,897,644)
--------- --------- ----------- -----------
Net increase ................... 1,741,162 902,475 $35,667,299 $13,486,268
========= ========= =========== ===========
<CAPTION>
Utility Income Portfolio
----------------------------------- ----------------------------------
SHARES AMOUNT
----------------------------------- ----------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 1999 December 31, June 30, 1999 December 31,
(unaudited) 1998 (unaudited) 1998
---------------- ----------- ---------------- -----------
<S> <C> <C> <C> <C>
Class A
Shares sold .................... 348,178 827,755 $ 7,024,517 $13,812,249
Shares issued in reinvestment of
dividends and distributions . 80,330 41,319 1,615,428 685,488
Shares redeemed ................ (217,165) (345,013) (4,361,130) (5,824,217)
-------- -------- ----------- -----------
Net increase ................... 211,343 524,061 $ 4,278,815 $ 8,673,520
======== ======== =========== ===========
<CAPTION>
Worldwide Privatization Portfolio
----------------------------------- ----------------------------------
SHARES AMOUNT
----------------------------------- ----------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 1999 December 31, June 30, 1999 December 31,
(unaudited) 1998 (unaudited) 1998
---------------- ----------- ---------------- -----------
<S> <C> <C> <C> <C>
Class A
Shares sold .................... 124,264 574,559 $ 1,944,574 $ 8,801,773
Shares issued in reinvestment of
dividends and distributions . 218,607 188,588 3,255,071 2,832,590
Shares redeemed ................ (574,001) (584,343) (8,786,061) (8,452,553)
-------- -------- ----------- -----------
Net increase (decrease) ........ (231,130) 178,804 $(3,586,416) $ 3,181,810
======== ======== =========== ===========
<CAPTION>
Global Bond Portfolio
----------------------------------- ----------------------------------
SHARES AMOUNT
----------------------------------- ----------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 1999 December 31, June 30, 1999 December 31,
(unaudited) 1998 (unaudited) 1998
---------------- ----------- ---------------- -----------
<S> <C> <C> <C> <C>
Class A
Shares sold .................... 1,215,605 1,110,903 $14,389,547 $13,087,136
Shares issued in reinvestment of
dividends and distributions . 132,977 43,327 1,497,316 485,698
Shares redeemed ................ (166,308) (363,470) (1,976,797) (4,200,770)
--------- -------- ----------- -----------
Net increase ................... 1,182,274 790,760 $13,910,066 $ 9,372,064
========= ======== =========== ===========
</TABLE>
B-69
<PAGE>
Alliance Variable Products Series Fund
================================================================================
<TABLE>
<CAPTION>
Global Dollar Government Portfolio
----------------------------------- ----------------------------------
SHARES AMOUNT
----------------------------------- ----------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 1999 December 31, June 30, 1999 December 31,
(unaudited) 1998 (unaudited) 1998
---------------- ----------- ---------------- -----------
<S> <C> <C> <C> <C>
Class A
Shares sold .................... 33,701 266,108 $ 345,168 $ 3,464,930
Shares issued in reinvestment of
dividends and distributions . 148,026 136,883 1,308,548 1,765,784
Shares redeemed ................ (277,352) (433,004) (2,834,945) (5,116,465)
-------- -------- ----------- -----------
Net increase (decrease) ........ (95,625) (30,013) $(1,181,229) $ 114,249
======== ======== =========== ===========
<CAPTION>
High-Yield Portfolio
----------------------------------- ----------------------------------
SHARES AMOUNT
----------------------------------- ----------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 1999 December 31, June 30, 1999 December 31,
(unaudited) 1998 (unaudited) 1998
---------------- ----------- ---------------- -----------
<S> <C> <C> <C> <C>
Class A
Shares sold .................... 682,072 2,333,171 $ 6,660,708 $24,996,204
Shares issued in reinvestment of
dividends ................... 119,655 1,032 1,097,239 11,475
Shares redeemed ................ (269,014) (743,394) (2,648,339) (7,893,363)
-------- --------- ----------- -----------
Net increase ................... 532,713 1,590,809 $ 5,109,608 $17,114,316
======== ========= =========== ===========
<CAPTION>
North American Government Income Portfolio
----------------------------------- ----------------------------------
SHARES AMOUNT
----------------------------------- ----------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 1999 December 31, June 30, 1999 December 31,
(unaudited) 1998 (unaudited) 1998
---------------- ----------- ---------------- -----------
<S> <C> <C> <C> <C>
Class A
Shares sold .................... 246,229 807,658 $ 3,098,315 $10,378,068
Shares issued in reinvestment of
dividends and distributions . 226,103 195,804 2,656,706 2,412,304
Shares redeemed ................ (535,189) (800,671) (6,803,774) (9,996,440)
-------- -------- ----------- -----------
Net increase (decrease) ........ (62,857) 202,791 $(1,048,753) $ 2,793,932
======== ======== =========== ===========
<CAPTION>
Short-Term Multi-Market Portfolio
----------------------------------- ----------------------------------
SHARES AMOUNT
----------------------------------- ----------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 1999 December 31, June 30, 1999 December 31,
(unaudited) 1998 (unaudited) 1998
---------------- ----------- ---------------- -----------
<S> <C> <C> <C> <C>
Class A
Shares sold .................... 139,219 320,284 $ 1,407,598 $ 3,296,379
Shares issued in reinvestment of
dividends ................... 34,201 64,303 333,118 630,815
Shares redeemed ................ (164,210) (357,998) (1,668,843) (3,706,984)
-------- -------- ----------- -----------
Net increase ................... 9,210 26,589 $ 71,873 $ 220,210
======== ======== =========== ===========
</TABLE>
B-70
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(continued) Alliance Variable Products Series Fund
================================================================================
<TABLE>
<CAPTION>
U.S. Government/High Grade Securities Portfolio
----------------------------------- -------------------------------------
SHARES AMOUNT
----------------------------------- -------------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 1999 December 31, June 30, 1999 December 31,
(unaudited) 1998 (unaudited) 1998
---------------- ------------ ---------------- -------------
<S> <C> <C> <C> <C>
Class A
Shares sold .................... 1,144,390 2,327,632 $ 13,777,116 $ 28,190,782
Shares issued in reinvestment of
dividends and distributions . 337,139 178,050 3,779,325 2,088,529
Shares redeemed ................ (1,025,349) (777,937) (12,412,843) (9,418,262)
------------- ------------- ------------- -------------
Net increase ................... 456,180 1,727,745 $ 5,143,598 $ 20,861,049
============= ============= ============= =============
<CAPTION>
June 2, 1999* to June 2, 1999* to
June 30, 1999 June 30, 1999
(unaudited) (unaudited)
---------------- ----------------
<S> <C> <C>
Class B
Shares sold....................... 8,952 $ 99,089
----- ------------
Net increase...................... 8,952 $ 99,089
===== ============
<CAPTION>
Money Market Portfolio
----------------------------------- -------------------------------------
SHARES AMOUNT
----------------------------------- -------------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 1999 December 31, June 30, 1999 December 31,
(unaudited) 1998 (unaudited) 1998
---------------- ------------ ---------------- -------------
<S> <C> <C> <C> <C>
Class A
Shares sold .................... 202,204,975 426,000,949 $202,204,975 $426,000,949
Shares issued in reinvestment of
dividends ................... 2,845,056 4,568,135 2,845,056 4,568,135
Shares redeemed ................ (200,167,538) (378,579,379) (200,167,538) (378,579,379)
------------- ------------- ------------- -------------
Net increase ................... 4,882,493 51,989,705 $ 4,882,493 $ 51,989,705
============= ============= ============= =============
<CAPTION>
June 2, 1999* to June 2, 1999* to
June 30, 1999 June 30, 1999
(unaudited) (unaudited)
---------------- ----------------
<S> <C> <C>
Class B
Shares sold....................... 14,436 $ 114,436
Shares issued in reinvestment of
dividends and distributions.... 58 58
------- ------------
Net increase...................... 114,494 $ 114,494
======= ============
</TABLE>
- --------------------------------------------------------------------------------
* Commencement of distribution.
B-71
<PAGE>
Alliance Variable Products Series Fund
================================================================================
NOTE F: Concentration of Risk
Investing in securities of foreign companies or foreign governments involves
special risks which include changes in foreign exchange rates and the
possibility of future political and economic developments which could adversely
affect the value of such securities. Moreover, securities of many foreign
companies or foreign governments and their markets may be less liquid and their
prices more volatile than those of comparable United States companies or of the
United States government.
- -------------------------------------------------------------------------------
NOTE G: Bank Borrowing
A number of open-end mutual funds managed by the Adviser, including the Fund,
participate in a $750 million revolving credit facility (the "Facility")
intended to provide short-term financing if necessary, subject to certain
restrictions in connection with abnormal redemption activity. Commitment fees
related to the Facility are paid by the participating funds and are included in
the miscellaneous expenses in the statement of operations. The Fund did not
utilize the Facility during the six months ended June 30, 1999.
B-72
<PAGE>
FINANCIAL HIGHLIGHTS Alliance Variable Products Series Fund
================================================================================
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
<TABLE>
<CAPTION>
-------------------------------------------------------------------------
CONSERVATIVE INVESTORS PORTFOLIO
-------------------------------------------------------------------------
Six Months October 28,
Ended Year Ended December 31, 1994(a) to
June 30, 1999 December 31,
(unaudited) 1998 1997 1996 1995 1994
------------- ---- ---- ---- ---- ------------
<S> <C> <C> <C> <C> <C> <C>
Class A
Net asset value, beginning of period ............... $14.03 $13.10 $12.07 $11.76 $10.07 $10.00
------ ------ ------ ------ ------ ------
Income From Investment Operations
Net investment income (b)(c) ....................... .25 .50 .48 .45 .51 .06
Net realized and unrealized gain (loss) on
investments and foreign currency transactions .... (.05) 1.31 .86 (.01) 1.20 .01
------ ------ ------ ------ ------ ------
Net increase in net asset value from
operations ....................................... .20 1.81 1.34 .44 1.71 .07
------ ------ ------ ------ ------ ------
Less: Dividends and Distributions
Dividends from net investment income ............... (.54) (.38) (.31) (.09) (.02) -0-
Distributions from net realized gains .............. (.71) (.50) -0- (.04) -0- -0-
------ ------ ------ ------ ------ ------
Total dividends and distributions .................. (1.25) (.88) (.31) (.13) (.02) -0-
------ ------ ------ ------ ------ ------
Net asset value, end of period ..................... $12.98 $14.03 $13.10 $12.07 $11.76 $10.07
====== ====== ====== ====== ====== ======
Total Return
Total investment return based on net asset value (d) 1.52% 14.20% 11.22% 3.79% 16.99% .70%
Ratios/Supplemental Data
Net assets, end of period (000's omitted) .......... $34,464 $37,341 $30,196 $21,729 $7,420 $701
Ratios to average net assets of:
Expenses, net of waivers and reimbursements ...... .95%(e) .90% .95% .95% .95% .95%(e)
Expenses, before waivers and reimbursements ...... 1.16%(e) 1.19% 1.33% 1.40% 4.25% 20.35%(e)
Net investment income (b) ........................ 3.59%(e) 3.69% 3.85% 3.93% 4.65% 3.55%(e)
Portfolio turnover rate ............................ 85% 123% 209% 211% 61% 2%
<CAPTION>
-------------------------------------------------------------------------
GROWTH INVESTORS PORTFOLIO
-------------------------------------------------------------------------
Six Months October 28,
Ended Year Ended December 31, 1994(a) to
June 30, 1999 December 31,
(unaudited) 1998 1997 1996 1995 1994
------------- ---- ---- ---- ---- ------------
<S> <C> <C> <C> <C> <C> <C>
Class A
Net asset value, beginning of period ............... $16.33 $14.38 $12.74 $11.87 $9.86 $10.00
------ ------ ------ ------ ------ ------
Income From Investment Operations
Net investment income (b)(c) ....................... .16 .26 .23 .24 .35 .04
Net realized and unrealized gain (loss) on
investments and foreign currency transactions .... .62 3.03 1.83 .72 1.67 (.18)
------ ------ ------ ------ ------ ------
Net increase (decrease) in net asset value from
operations ....................................... .78 3.29 2.06 .96 2.02 (.14)
------ ------ ------ ------ ------ ------
Less: Dividends and Distributions
Dividends from net investment income ............... (.29) (.18) (.20) (.07) (.01) -0-
Distributions from net realized gains .............. (1.34) (1.16) (.22) (.02) -0- -0-
------ ------ ------ ------ ------ ------
Total dividends and distributions .................. (1.63) (1.34) (.42) (.09) (.01) -0-
------ ------ ------ ------ ------ ------
Net asset value, end of period ..................... $15.48 $16.33 $14.38 $12.74 $11.87 $9.86
====== ====== ====== ====== ====== ======
Total Return
Total investment return based on net asset value (d) 5.08% 23.68% 16.34% 8.18% 20.48% (1.40)%
Ratios/Supplemental Data
Net assets, end of period (000's omitted) .......... $18,940 $21,028 $16,600 $10,709 $4,978 $321
Ratios to average net assets of:
Expenses, net of waivers and reimbursements ...... .95%(e) .94% .95% .95% .95% .95%(e)
Expenses, before waivers and reimbursements ...... 1.46%(e) 1.68% 1.70% 1.85% 6.17% 41.62%(e)
Net investment income (b) ........................ 1.91%(e) 1.71% 1.72% 2.01% 3.21% 2.29%(e)
Portfolio turnover rate ............................ 78% 100% 164% 160% 50% 3%
</TABLE>
- --------------------------------------------------------------------------------
See footnote summary on page B-84.
B-73
FINANCIAL HIGHLIGHTS (continued) Alliance Variable Products Series Fund
================================================================================
<TABLE>
<CAPTION>
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
---------------------------------------------------------------------------
TOTAL RETURN PORTFOLIO
---------------------------------------------------------------------------
Six Months
Ended Year Ended December 31,
June 30, 1999
(unaudited) 1998 1997 1996 1995 1994
----------- ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
Class A
Net asset value, beginning of year ................. $18.06 $16.92 $14.63 $12.80 $10.41 $10.97
------ ------ ------ ------ ------ ------
Income From Investment Operations
Net investment income (c) .......................... .21 .41(b) .39(b) .27(b) .36(b) .15(b)
Net realized and unrealized gain (loss) on
investment transactions .......................... 1.15 2.36 2.62 1.66 2.10 (.56)
------ ------ ------ ------ ------ ------
Net increase (decrease) in net asset value from
operations ....................................... 1.36 2.77 3.01 1.93 2.46 (.41)
------ ------ ------ ------ ------ ------
Less: Dividends and Distributions
Dividends from net investment income ............... (.36) (.29) (.23) (.07) (.07) (.09)
Distributions from net realized gains .............. (1.35) (1.34) (.49) (.03) -0- (.06)
------ ------ ------ ------ ------ ------
Total dividends and distributions .................. (1.71) (1.63) (.72) (.10) (.07) (.15)
------ ------ ------ ------ ------ ------
Net asset value, end of period ..................... $17.71 $18.06 $16.92 $14.63 $12.80 $10.41
====== ====== ====== ====== ====== ======
Total Return
Total investment return based on net asset value (d) 7.87% 16.99% 21.11% 15.17% 23.67% (3.77)%
Ratios/Supplemental Data
Net assets, end of period (000's omitted) .......... $69,051 $59,464 $42,920 $25,875 $8,242 $750
Ratios to average net assets of:
Expenses, net of waivers and reimbursements ...... .84%(e) .88% .88% .95% .95% .95%
Expenses, before waivers and reimbursements ...... .84%(e) .95% .88% 1.12% 4.49% 19.49%
Net investment income ............................ 2.39%(e) 2.41%(b) 2.46%(b) 2.76%(b) 3.16%(b) 2.29%(b)
Portfolio turnover rate ............................ 69% 57% 65% 57% 30% 83%
<CAPTION>
------------------------------------------------------------------------
GROWTH AND INCOME PORTFOLIO
------------------------------------------------------------------------
Six Months
Ended Year Ended December 31,
June 30, 1999
(unaudited) 1998 1997 1996 1995 1994
----------- ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
Class A
Net asset value, beginning of year ................. $21.84 $19.93 $16.40 $15.79 $11.85 $12.18
------ ------ ------ ------ ------ ------
Income From Investment Operations
Net investment income (c) .......................... .08 .22(b) .21(b) .24(b) .27(b) .10(b)
Net realized and unrealized gain (loss) on
investment transactions .......................... 2.96 3.81 4.39 3.18 3.94 (.16)
------ ------ ------ ------ ------ ------
Net increase (decrease) in net asset value from
operations ....................................... 3.04 4.03 4.60 3.42 4.21 (.06)
------ ------ ------ ------ ------ ------
Less: Dividends and Distributions
Dividends from net investment income ............... (.18) (.16) (.13) (.25) (.13) (.10)
Distributions from net realized gains .............. (2.28) (1.96) (.94) (2.56) (.14) (.17)
------ ------ ------ ------ ------ ------
Total dividends and distributions .................. (2.46) (2.12) (1.07) (2.81) (.27) (.27)
------ ------ ------ ------ ------ ------
Net asset value, end of period ..................... $22.42 $21.84 $19.93 $16.40 $15.79 $11.85
====== ====== ====== ====== ====== ======
Total Return
Total investment return based on net asset value (d) 14.59% 20.89% 28.80% 24.09% 35.76% (.35)%
Ratios/Supplemental Data
Net assets, end of period (000's omitted) .......... $481,492 $381,614 $250,202 $126,729 $41,993 $41,702
Ratios to average net assets of:
Expenses, net of waivers and reimbursements ...... .71%(e) .73% .72% .82% .79% .90%
Expenses, before waivers and reimbursements ...... .71%(e) .73% .72% .82% .79% .91%
Net investment income ............................ .76%(e) 1.07%(b) 1.16%(b) 1.58%(b) 1.95%(b) 1.71%(b)
Portfolio turnover rate ............................ 25% 79% 86% 87% 150% 95%
</TABLE>
- --------------------------------------------------------------------------------
See footnote summary on page B-84.
B-74
<PAGE>
Alliance Variable Products Series Fund
================================================================================
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
<TABLE>
<CAPTION>
---------------
GROWTH
AND
INCOME
PORTFOLIO
---------------
June 1, 1999(f)
to
June 30, 1999
(unaudited)
---------------
<S> <C>
Class B
Net asset value, beginning of period.............................................................. $ 21.37
--------
Income From Investment Operations
Net investment income (c)......................................................................... .01
Net realized and unrealized gain (loss) on
investment transactions......................................................................... 1.04
--------
Net increase in net asset value from
operations...................................................................................... 1.05
--------
Less: Dividends and Distributions
Dividends from net investment income.............................................................. -0-
Distributions from net realized gains............................................................. -0-
--------
Total dividends and distributions................................................................. -0-
--------
Net asset value, end of period.................................................................... $ 22.42
========
Total Return
Total investment return based on net asset value (d).............................................. 4.91%
Ratios/Supplemental Data
Net assets, end of period (000's omitted)......................................................... $ 1,784
Ratios to average net assets of:
Expenses........................................................................................ .96%(e)
Net investment income (b)....................................................................... .88%(e)
Portfolio turnover rate........................................................................... 25%
</TABLE>
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
GROWTH PORTFOLIO
--------------------------------------------------------------------------------
September 15,
Six Months 1994(a)
Ended Year Ended December 31, to
June 30, 1999 December 31,
(unaudited) 1998 1997 1996 1995 1994
-------------- ------ ------ ------ ------ ------------
<S> <C> <C> <C> <C> <C> <C>
Class A
Net asset value, beginning of period ........... $27.25 $22.42 $17.92 $14.23 $10.53 $10.00
------ ------ ------ ------ ------ ------
Income From Investment Operations
Net investment income (c) ...................... .03 .10(b) .07(b) .06(b) .17(b) .03(b)
Net realized and unrealized gain on
investment transactions ...................... 3.88 6.19 5.18 3.95 3.54 .50
------ ------ ------ ------ ------ ------
Net increase in net asset value from
operations ................................... 3.91 6.29 5.25 4.01 3.71 .53
------ ------ ------ ------ ------ ------
Less: Dividends and Distributions
Dividends from net investment income ........... (.09) (.06) (.03) (.04) (.01) -0-
Distributions from net realized gains .......... (2.33) (1.40) (.72) (.28) -0- -0-
------ ------ ------ ------ ------ ------
Total dividends and distributions .............. (2.42) (1.46) (.75) (.32) (.01) -0-
------ ------ ------ ------ ------ ------
Net asset value, end of period ................. $28.74 $27.25 $22.42 $17.92 $14.23 $10.53
====== ====== ====== ====== ====== ======
Total Return
Total investment return based on net
asset value (d) .............................. 15.06% 28.73% 30.02% 28.49% 35.23% 5.30%
Ratios/Supplemental Data
Net assets, end of period (000's omitted) ...... $381,873 $328,681 $235,875 $138,688 $45,220 $5,492
Ratios to average net assets of:
Expenses, net of waivers and reimbursements .. .84%(e) .87% .84% .93% .95% .95%(e)
Expenses, before waivers and reimbursements .. .84%(e) .87% .84% .93% 1.27% 4.19%(e)
Net investment income ........................ .19%(e) .43%(b) .37%(b) .35%(b) 1.31%(b) 1.17%(b)(e)
Portfolio turnover rate ........................ 30% 62% 62% 98% 86% 25%
</TABLE>
- --------------------------------------------------------------------------------
See footnote summary on page B-84.
B-75
<PAGE>
Alliance Variable Products Series Fund
================================================================================
<TABLE>
<CAPTION>
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
--------------
GROWTH
PORTFOLIO
---------------
June 1, 1999(f)
to
June 30, 1999
(unaudited)
---------------
<S> <C>
Class B
Net asset value, beginning of period.............................................................. $26.83
------
Income From Investment Operations
Net investment income (c)......................................................................... -0-
Net realized and unrealized gain on
investment transactions......................................................................... 1.91
------
Net increase in net asset value from
operations...................................................................................... 1.91
------
Less: Dividends and Distributions
Dividends from net investment income.............................................................. -0-
Distributions from net realized gains............................................................. -0-
------
Total dividends and distributions................................................................. -0-
------
Net asset value, end of period.................................................................... $28.74
======
Total Return
Total investment return based on net asset value (d).............................................. 7.12%
Ratios/Supplemental Data
Net assets, end of period (000's omitted)......................................................... $690
Ratios to average net assets of:
Expenses........................................................................................ 1.09%(e)
Net investment income .......................................................................... .36%(e)
Portfolio turnover rate........................................................................... 30%
</TABLE>
<TABLE>
<CAPTION>
----------------------------------------------------------------------------
INTERNATIONAL PORTFOLIO
----------------------------------------------------------------------------
Six Months
Ended Year Ended December 31,
June 30, 1999
(unaudited) 1998 1997 1996 1995 1994
------------- ------ ------ ------ ------- ------
<S> <C> <C> <C> <C> <C> <C>
Class A
Net asset value, beginning of year............. $16.17 $15.02 $14.89 $14.07 $12.88 $12.16
------ ------ ------ ------ ------- ------
Income From Investment Operations
Net investment income (b)(c)................... .12 .17 .13 .19 .18 .10
Net realized and unrealized gain on
investments and foreign currency
transactions ................................ .71 1.80 .39 .83 1.08 .72
------ ------ ------ ------ ------- ------
Net increase in net asset value from
operations................................... .83 1.97 .52 1.02 1.26 .82
------ ------ ------ ------ ------- ------
Less: Dividends and Distributions
Dividends from net investment income........... (.15) (.33) (.15) (.08) (.03) (.02)
Distributions from net realized gains.......... (.49) (.49) (.24) (.12) (.04) (.08)
------ ------ ------ ------ ------- ------
Total dividends and distributions.............. (.64) (.82) (.39) (.20) (.07) (.10)
------ ------ ------ ------ ------- ------
Net asset value, end of period................. $16.36 $16.17 $15.02 $14.89 $14.07 $12.88
====== ====== ====== ====== ======= ======
Total Return
Total investment return based on net
asset value (d) ............................. 5.33% 13.02% 3.33% 7.25% 9.86% 6.70%
Ratios/Supplemental Data
Net assets, end of period (000's omitted)...... $61,949 $65,052 $60,710 $44,324 $16,542 $7,276
Ratios to average net assets of:
Expenses, net of waivers and reimbursements . .95%(e) .95% .95% .95% .95% .95%
Expenses, before waivers and reimbursements . 1.37%(e) 1.37% 1.42% 1.91% 2.99% 7.26%
Net investment income (b).................... 1.44%(e) 1.08% .87% 1.29% 1.41% 90%
Portfolio turnover rate........................ 47% 117% 134% 60% 87% 95%
</TABLE>
- --------------------------------------------------------------------------------
See footnote summary on page B-84.
B-76
<PAGE>
FINANCIAL HIGHLIGHTS (continued) Alliance Variable Products Series Fund
================================================================================
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 30, 1999
(unaudited) 1998 1997 1996 1995 1994
------------- ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
Class A
Net asset value, beginning of year............. $31.03 $20.99 $15.70 $17.80 $12.37 $12.79
------ ------ ------ ------ ------ ------
Income From Investment Operations
Net investment income (loss) (c)............... (.04) (.01)(b) .04(b) .08(b) .09(b) .03(b)
Net realized and unrealized gain (loss) on
investment transactions...................... 4.06 10.08 5.27 3.29 5.44 (.41)
------ ------ ------ ------ ------ ------
Net increase (decrease) in net asset
value from operations........................ 4.02 10.07 5.31 3.37 5.53 (.38)
------ ------ ------ ------ ------ ------
Less: Dividends and Distributions
Dividends from net investment income........... -0- (.03) (.02) (.10) (.03) (.01)
Distributions from net realized gains.......... (.47) -0- -0- (5.37) (.07) (.03)
------ ------ ------ ------ ------ ------
Total dividends and distributions.............. (.47) (.03) (.02) (5.47) (.10) (.04)
------ ------ ------ ------ ------ ------
Net asset value, end of period................. $34.58 $31.03 $20.99 $15.70 $17.80 $12.37
====== ====== ====== ====== ====== ======
Total Return
Total investment return based on net
asset value (d) ............................. 13.12 % 47.97% 33.86% 22.70% 44.85% (2.96)%
Ratios/Supplemental Data
Net assets, end of period (000's omitted)...... $1,722,824 $1,247,254 $472,326 $96,434 $29,278 $37,669
Ratios to average net assets of: ..............
Expenses, net of waivers and reimbursements . 1.06%(e) 1.06% .95% .95% .95% .95%
Expenses, before waivers and reimbursements . 1.06%(e) 1.09% 1.10% 1.23% 1.19% 1.40%
Net investment income (loss) ................ (.27)%(e) (.04)%(b) .21%(b) .52%(b) .55%(b) .42%(b)
Portfolio turnover rate........................ 14% 31% 27% 32% 97% 38%
</TABLE>
<TABLE>
<CAPTION>
---------------------------------------------------
QUASAR PORTFOLIO
---------------------------------------------------
Six Months August 5,
Ended 1996(a) to
June 30, 1999 Year Ended December 31, December 31,
(unaudited) 1998 1997 1996
------------ ------ ------ ------
<S> <C> <C> <C> <C>
Class A
Net asset value, beginning of period ..................................... $11.14 $12.61 $10.64 $10.00
------ ------ ------ ------
Income From Investment Operations
Net investment income (b)(c) ............................................. .03 .07 .02 .04
Net realized and unrealized gain (loss) on
investment transactions ................................................ .70 (.49) 1.96 .60
------ ------ ------ ------
Net increase (decrease) in net asset value from
operations ............................................................. .73 (.42) 1.98 .64
------ ------ ------ ------
Less: Dividends and Distributions
Dividends from net investment income ..................................... (.04) (.01) (.01) -0-
Distributions from net realized gains .................................... -0- (1.04) -0- -0-
------ ------ ------ ------
Total dividends and distributions ........................................ (.04) (1.05) (.01) -0-
------ ------ ------ ------
Net asset value, end of period ........................................... $11.83 $11.14 $12.61 $10.64
====== ====== ====== ======
Total Return
Total investment return based on net asset value (d) 6.54% (4.49)% 18.60% 6.40%
Ratios/Supplemental Data
Net assets, end of period (000's omitted) ................................ $148,664 $90,870 $59,277 $8,842
Ratios to average net assets of:
Expenses, net of waivers and reimbursements ............................ .95%(e) .95% .95% .95%(e)
Expenses, before waivers and reimbursements ............................ 1.24%(e) 1.30% 1.37% 4.44%(e)
Net investment income (b) .............................................. .61%(e) .55% .17% .93%(e)
Portfolio turnover rate .................................................. 46% 107% 210% 40%
</TABLE>
- --------------------------------------------------------------------------------
See footnote summary on page B-84.
B-77
<PAGE>
Alliance Variable Products Series Fund
================================================================================
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
<TABLE>
<CAPTION>
----------------------------------------
REAL ESTATE INVESTMENT
PORTFOLIO
----------------------------------------
Six Months January 9,
Ended Year Ended 1997(a) to
June 30, 1999 December 31, December 31,
(unaudited) 1998 1997
------------- ------ ------
<S> <C> <C> <C>
Class A
Net asset value, beginning of period...................................... $ 9.78 $12.34 $10.00
------ ------ ------
Income From Investment Operations
Net investment income (b)(c).............................................. .28 .54 .56
Net realized and unrealized gain (loss) on
investment transactions................................................. .31 (2.87) 1.78
------ ------ ------
Net increase (decrease) in net asset value from
operations.............................................................. .59 (2.33) 2.34
------ ------ ------
Less: Dividends and Distributions
Dividends from net investment income...................................... (.46) (.16) -0-
Distributions from net realized gains..................................... -0- (.07) -0-
------ ------ ------
Total dividends and distributions......................................... (.46) (.23) -0-
------ ------ ------
Net asset value, end of period............................................ $ 9.91 $ 9.78 $12.34
====== ====== ======
Total Return
Total investment return based on net asset value (d)...................... 6.01% (19.07)% 23.40%
Ratios/Supplemental Data
Net assets, end of period (000's omitted)................................. $19,541 $17,080 $13,694
Ratios to average net assets of:
Expenses, net of waivers and reimbursements............................. .95%(e) .95% .95%(e)
Expenses, before waivers and reimbursements............................. 1.75%(e) 1.77% 2.31%(e)
Net investment income (b)............................................... 5.88%(e) 4.98% 5.47%(e)
Portfolio turnover rate................................................... 19% 27% 26%
</TABLE>
<TABLE>
<CAPTION>
-------------------------------------------------------
TECHNOLOGY PORTFOLIO
-------------------------------------------------------
January 11,
Six Months 1996(a)
Ended to
June 30, 1999 Year Ended December 31, December 31,
(unaudited) 1998 1997 1996
----------- ------ ------ ------
<S> <C> <C> <C> <C>
Class A
Net asset value, beginning of period........................... $19.17 $11.72 $11.04 $10.00
------ ------ ------ ------
Income From Investment Operations
Net investment income (loss) (b)(c)............................ (.03) (.04) .02 .11
Net realized and unrealized gain on
investment transactions...................................... 2.98 7.51 .69 .93
------ ------ ------ ------
Net increase in net asset value from
operations................................................... 2.95 7.47 .71 1.04
------ ------ ------ ------
Less: Dividends and Distributions
Dividends from net investment income........................... -0- (.02) (.03) -0-
Distribution from net realized gains........................... (.04) -0- -0- -0-
------ ------ ------ ------
Total dividends and distributions.............................. (.04) (.02) (.03) -0-
------ ------ ------ ------
Net asset value, end of period................................. $22.08 $19.17 $11.72 $11.04
====== ====== ====== ======
Total Return
Total investment return based on net asset value (d)........... 15.43% 63.79% 6.47% 10.40%
Ratios/Supplemental Data
Net assets, end of period (000's omitted)...................... $188,875 $130,602 $69,240 $28,083
Ratios to average net assets of:
Expenses, net of waivers and reimbursements.................. .95%(e) .95% .95% .95%(e)
Expenses, before waivers and reimbursements.................. 1.12%(e) 1.20% 1.19% 1.62%(e)
Net investment income (loss) (b)............................. (.29)%(e) (.30)% .16% 1.17%(e)
Portfolio turnover rate........................................ 25% 63% 46% 22%
</TABLE>
- --------------------------------------------------------------------------------
See footnote summary on page B-84.
B-78
<PAGE>
FINANCIAL HIGHLIGHTS (continued) Alliance Variable Products Series Fund
================================================================================
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
<TABLE>
<CAPTION>
--------------------------------------
UTILITY INCOME PORTFOLIO
--------------------------------------
Six Months May 10, 1994(a)
Ended Year Ended December 31, to
June 30, 1999 December 31,
(unaudited) 1998 1997 1996 1995 1994
------------- ------ ------ ------ ------ --------------
<S> <C> <C> <C> <C> <C> <C>
Class A
Net asset value, beginning of period ............... $18.90 $15.67 $12.69 $12.01 $9.96 $10.00
------ ------ ------ ------ ------ ------
Income From Investment Operations
Net investment income (b)(c) ....................... .19 .37 .38 .31 .30 .28
Net realized and unrealized gain (loss) on
investments and foreign currency transactions .... 2.25 3.31 2.84 .62 1.83 (.32)
------ ------ ------ ------ ------ ------
Net increase (decrease) in net asset value from
operations ....................................... 2.44 3.68 3.22 .93 2.13 (.04)
------ ------ ------ ------ ------ ------
Less: Dividends and Distributions
Dividends from net investment income ............... (.30) (.31) (.24) (.09) (.08) -0-
Distributions from net realized gains .............. (.54) (.14) -0- (.16) -0- -0-
------ ------ ------ ------ ------ ------
Total dividends and distributions .................. (.84) (.45) (.24) (.25) (.08) -0-
------ ------ ------ ------ ------ ------
Net asset value, end of period ..................... $20.50 $18.90 $15.67 $12.69 $12.01 $ 9.96
====== ====== ====== ====== ====== ======
Total Return
Total investment return based on net asset value (d) 13.01% 23.91% 25.71% 7.88% 21.45% (.40)%
Ratios/Supplemental Data
Net assets, end of period (000's omitted) .......... $41,685 $34,436 $20,347 $14,857 $6,251 $1,254
Ratios to average net assets of:
Expenses, net of waivers and reimbursements ...... .95%(e) .95% .95% .95% .95% .95%(e)
Expenses, before waivers and reimbursements ...... 1.27%(e) 1.35% 1.08% 1.51% 3.79% 15.98%(e)
Net investment income (b) ........................ 1.90%(e) 2.20% 2.83% 2.61% 2.73% 4.62%(e)
Portfolio turnover rate ............................ 8% 20% 30% 75% 138% 31%
<CAPTION>
------------------------------------------------------------------------------
WORLDWIDE PRIVATIZATION PORTFOLIO
------------------------------------------------------------------------------
September 23,
Six Months 1994(a)
Ended Year Ended December 31, to
June 30, 1999 December 31,
(unaudited) 1998 1997 1996 1995 1994
------------- ------ ------ ------ ------ --------------
<S> <C> <C> <C> <C> <C> <C>
Class A
Net asset value, beginning of period ............... $ 14.81 $14.20 $13.13 $11.17 $10.10 $10.00
------- ------ ------ ------ ------ ------
Income From Investment Operations
Net investment income (b)(c) ....................... .13 .26 .25 .28 .32 .10
Net realized and unrealized gain on
investments and foreign currency transactions .... 2.09 1.29 1.17 1.78 .78 -0-
------- ------ ------ ------ ------ ------
Net increase in net asset value from
operations ....................................... 2.22 1.55 1.42 2.06 1.10 .10
------- ------ ------ ------ ------ ------
Less: Dividends and Distributions
Dividends from net investment income ............... (.31) (.20) (.16) (.10) (.03) -0-
Distributions from net realized gains .............. (.91) (.74) (.19) -0- -0- -0-
------- ------ ------ ------ ------ ------
Total dividends and distributions .................. (1.22) (.94) (.35) (.10) (.03) -0-
------- ------ ------ ------ ------ ------
Net asset value, end of period ..................... $ 15.81 $14.81 $14.20 $13.13 $11.17 $10.10
======= ====== ====== ====== ====== ======
Total Return
Total investment return based on net asset value (d) 15.51% 10.83% 10.75% 18.51% 10.87% 1.00%
Ratios/Supplemental Data
Net assets, end of period (000's omitted) .......... $45,736 $46,268 $41,818 $18,807 $5,947 $1,127
Ratios to average net assets of:
Expenses, net of waivers and reimbursements ...... .95%(e) .95% .95% .95% .95% .95%(e)
Expenses, before waivers and reimbursements ...... 1.59%(e) 1.70% 1.55% 1.85% 4.17% 18.47%(e)
Net investment income (b) ........................ 1.71%(e) 1.74% 1.76% 2.26% 2.96% 4.27%(e)
Portfolio turnover rate ............................ 18% 92% 58% 47% 23% 0%
</TABLE>
- --------------------------------------------------------------------------------
See footnote summary on page B-84.
B-79
<PAGE>
FINANCIAL HIGHLIGHTS (continued) Alliance Variable Products Series Fund
================================================================================
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------
GLOBAL BOND PORTFOLIO
-------------------------------------------------------------------------------
Six Months
Ended Year Ended December 31,
June 30, 1999
(unaudited) 1998 1997 1996 1995 1994
------------- ------ ------ ------ ------- ------
<S> <C> <C> <C> <C> <C> <C>
Class A
Net asset value, beginning of year ................. $12.42 $11.10 $11.74 $12.15 $ 9.82 $11.33
------ ------ ------ ------ ------- ------
Income From Investment Operations
Net investment income (b)(c) ....................... .23 .49 .54 .67 .69 .57
Net realized and unrealized gain (loss) on
investments and foreign currency transactions .... (1.21) 1.06 (.48) .01 1.73 (1.16)
------ ------ ------ ------ ------- ------
Net increase (decrease) in net asset value from
operations ....................................... (.98) 1.55 .06 .68 2.42 (.59)
------ ------ ------ ------ ------- ------
Less: Dividends and Distributions
Dividends from net investment income ............... (.37) (.17) (.57) (.84) (.09) (.62)
Distributions from net realized gains .............. (.04) (.06) (.13) (.25) -0- (.30)
------ ------ ------ ------ ------- ------
Total dividends and distributions .................. (.41) (.23) (.70) (1.09) (.09) (.92)
------ ------ ------ ------ ------- ------
Net asset value, end of period ..................... $11.03 $12.42 $11.10 $11.74 $ 12.15 $ 9.82
====== ====== ====== ====== ======= ======
Total Return
Total investment return based on net asset value (d) (7.95)% 14.12% .67% 6.21% 24.73% (5.16)%
Ratios/Supplemental Data
Net assets, end of period (000's omitted) .......... $43,805 $34,652 $22,194 $18,117 $11,553 $7,298
Ratios to average net assets of:
Expenses, net of waivers and reimbursements ...... .90%(e) .93% .94% .94% .95% .95%
Expenses, before waivers and reimbursements ...... 1.07%(e) 1.17% 1.03% 1.15% 1.77% 2.05%
Net investment income (b) ........................ 3.96%(e) 4.23% 4.81% 5.76% 6.22% 6.01%
Portfolio turnover rate ............................ 37% 42% 257% 191% 262% 102%
<CAPTION>
-------------------------------------------------------------------------------
GLOBAL DOLLAR GOVERNMENT PORTFOLIO
-------------------------------------------------------------------------------
Six Months May 2, 1994(a)
Ended Year Ended December 31, to
June 30, 1999 December 31,
(unaudited) 1998 1997 1996 1995 1994
------------- ------ ------ ------ ------ --------------
<S> <C> <C> <C> <C> <C> <C>
Class A
Net asset value, beginning of period ............... $10.18 $14.65 $14.32 $11.95 $ 9.84 $10.00
------ ------ ------ ------ ------ ------
Income From Investment Operations
Net investment income (b)(c) ....................... .55 1.20 1.17 1.10 .92 .36
Net realized and unrealized gain (loss) on
investments and foreign currency transactions .... .16 (4.03) .70 1.78 1.32 (.52)
------ ------ ------ ------ ------ ------
Net increase (decrease) in net asset value from
operations ....................................... .71 (2.83) 1.87 2.88 2.24 (.16)
------ ------ ------ ------ ------ ------
Less: Dividends and Distributions
Dividends from net investment income ............... (1.68) (.95) (.61) (.48) (.13) -0-
Distributions from net realized gains .............. -0- (.69) (.93) (.03) -0- -0-
------ ------ ------ ------ ------ ------
Total dividends and distributions .................. (1.68) (1.64) (1.54) (.51) (.13) -0-
------ ------ ------ ------ ------ ------
Net asset value, end of period ..................... $ 9.21 $10.18 $14.65 $14.32 $11.95 $ 9.84
====== ====== ====== ====== ====== ======
Total Return
Total investment return based on net asset value (d) 7.61% (21.71)% 13.23% 24.90% 22.98% (1.60)%
Ratios/Supplemental Data
Net assets, end of period (000's omitted) .......... $8,516 $10,380 $15,378 $8,847 $3,778 $1,146
Ratios to average net assets of:
Expenses, net of waivers and reimbursements ...... .95%(e) .95% .95% .95% .95% .95%(e)
Expenses, before waivers and reimbursements ...... 2.52%(e) 1.75% 1.29% 1.97% 4.82% 15.00%(e)
Net investment income (b) ........................ 11.22%(e) 9.49% 7.87% 8.53% 8.65% 6.02%(e)
Portfolio turnover rate ............................ 51% 166% 214% 155% 13% 9%
</TABLE>
- --------------------------------------------------------------------------------
See footnote summary on page B-84.
B-80
<PAGE>
FINANCIAL HIGHLIGHTS (continued) Alliance Variable Products Series Fund
================================================================================
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
------------------------------------
HIGH-YIELD PORTFOLIO
------------------------------------
SIX MONTHS OCTOBER 27,
ENDED YEAR ENDED 1997(A) TO
JUNE 30, 1999 DECEMBER 31, DECEMBER 31,
(UNAUDITED) 1998 1997
----------- ----------- -----------
CLASS A
Net asset value, beginning of period $9.94 $10.33 $10.00
----------- ----------- -----------
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b)(c) .48 1.03 .13
Net realized and unrealized gain (loss)
on investment transactions (.70) (1.41) .20
----------- ----------- -----------
Net increase (decrease) in net asset
value from operations (.22) (.38) .33
----------- ----------- -----------
LESS: DIVIDENDS
Dividends from net investment income (.55) (.01) -0-
----------- ----------- -----------
Net asset value, end of period $9.17 $9.94 $10.33
========== =========== ============
TOTAL RETURN
Total investment return based on
net asset value (d) (2.26)% (3.69)% 3.30%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $20,480 $16,910 $1,141
Ratios to average net assets of:
Expenses, net of waivers and
reimbursements .95%(e) .95% .95%(e)
Expenses, before waivers and
reimbursements 1.54%(e) 1.80% 8.26%(e)
Net investment income (b) 10.11%(e) 9.77% 7.28%(e)
Portfolio turnover rate 108% 295% 8%
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------
NORTH AMERICAN GOVERNMENT INCOME PORTFOLIO
-----------------------------------------------------------------------------
SIX MONTHS MAY 3, 1994(A)
ENDED YEAR ENDED DECEMBER 31, TO
JUNE 30, 1999 --------------------------------------------- DECEMBER 31,
(UNAUDITED) 1998 1997 1996 1995 1994
--------------- ------- ------- ------ ------ -------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A
Net asset value, beginning of period $12.55 $12.97 $12.38 $10.48 $8.79 $10.00
------ ------ ------ ------ ------- ------
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b)(c) .64 1.16 1.07 1.26 1.13 .50
Net realized and unrealized gain (loss)
on investments and foreign currency
transactions (.11) (.65) .10 .69 .83 (1.71)
------ ------ ------ ------ ------- ------
Net increase (decrease) in net asset
value from operations .53 .51 1.17 1.95 1.96 (1.21)
------ ------ ------ ------ ------- ------
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (1.05) (.82) (.58) (.05) (.27) -0-
Distributions from net realized gains (.14) (.11) -0- -0- -0- -0-
------ ------ ------ ------ ------- ------
Total dividends and distributions (1.19) (.93) (.58) (.05) (.27) -0-
------ ------ ------ ------ ------- ------
Net asset value, end of period $11.89 $12.55 $12.97 $12.38 $10.48 $8.79
====== ====== ====== ====== ======= ======
TOTAL RETURN
Total investment return based on
net asset value (d) 4.26% 4.07% 9.62% 18.70% 22.71% (12.10)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $29,637 $32,059 $30,507 $16,696 $7,278 $3,848
Ratios to average net assets of:
Expenses, net of waivers
and reimbursements .93%(e) .86% .95% .95% .95% .95%(e)
Expenses, before waivers
and reimbursements 1.14%(e) 1.17% 1.04% 1.41% 2.57% 4.43%(e)
Net investment income (b) 10.33%(e) 9.16% 8.34% 11.04% 12.24% 8.49%(e)
Portfolio turnover rate 2% 8% 20% 4% 35% 15%
</TABLE>
See footnote summary on page B-84.
B-81
<PAGE>
Alliance Variable Products Series Fund
================================================================================
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
<TABLE>
<CAPTION>
--------------------------------------------------------------------------
SHORT-TERM MULTI-MARKET PORTFOLIO
--------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, 1999 -------------------------------------------------------
(UNAUDITED) 1998 1997 1996 1995 1994
------------- ------- ------- ------- ------ ------
<S> <C> <C> <C> <C> <C> <C>
CLASS A
Net asset value, beginning of year $10.10 $10.57 $10.73 $10.58 $9.91 $11.07
------ ------ ------ ------ ------- ------
INCOME FROM INVESTMENT OPERATIONS
Net investment income (b)(c) .24 .61 .59 .64 .82 .47
Net realized and unrealized gain (loss)
on investments and foreign currency
transactions (.04) .03 (.11) .33 (.15) (1.16)
------ ------ ------ ------ ------- ------
Net increase (decrease) in net asset
value from operations .20 .64 .48 .97 .67 (.69)
------ ------ ------ ------ ------- ------
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.54) (1.11) (.64) (.82) -0- (.46)
Return of capital -0- -0- -0- -0- -0- (.01)
------ ------ ------ ------ ------- ------
Total dividends and distributions (.54) (1.11) (.64) (.82) -0- (.47)
------ ------ ------ ------ ------- ------
Net asset value, end of period $9.76 $10.10 $10.57 $10.73 $10.58 $9.91
====== ====== ====== ====== ======= ======
TOTAL RETURN
Total investment return based
on net asset value (d) 1.94% 6.32% 4.59% 9.57% 6.76% (6.51)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $6,338 $6,469 $6,489 $7,112 $3,152 $20,921
Ratios to average net assets of:
Expenses, net of waivers
and reimbursements .95%(e) .94% .94% .95% .95% .94%
Expenses, before waivers
and reimbursements 2.53%(e) 2.69% 1.42% 2.09% 1.30% .99%
Net investment income (b) 4.88%(e) 5.94% 5.50% 6.03% 8.22% 6.52%
Portfolio turnover rate 5% 18% 222% 159% 379% 134%
</TABLE>
<TABLE>
<CAPTION>
--------------------------------------------------------------------------
U.S. GOVERNMENT/HIGH GRADE SECURITIES PORTFOLIO
--------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, 1999 --------------------------------------------------------
(UNAUDITED) 1998 1997 1996 1995 1994
------------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
CLASS A
Net asset value, beginning of year $12.27 $11.93 $11.52 $11.66 $9.94 $10.72
------ ------ ------ ------ ------- ------
INCOME FROM INVESTMENT OPERATIONS
Net investment income (c) .31 .63(b) .68(b) .66(b) .65(b) .28(b)
Net realized and unrealized gain (loss)
on investment transactions (.66) .32 .29 (.39) 1.25 (.71)
------ ------ ------ ------ ------- ------
Net increase (decrease) in net
asset value from operations (.35) .95 .97 .27 1.90 (.43)
------ ------ ------ ------ ------- ------
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.49) (.55) (.54) (.28) (.18) (.21)
Distributions from net realized gains (.30) (.06) (.02) (.13) -0- (.14)
------ ------ ------ ------ ------- ------
Total dividends and distributions (.79) (.61) (.56) (.41) (.18) (.35)
------ ------ ------ ------ ------- ------
Net asset value, end of period $11.13 $12.27 $11.93 $11.52 $11.66 $9.94
====== ====== ====== ====== ======= ======
TOTAL RETURN
Total investment return based
on net asset value (d) (2.89)% 8.22% 8.68% 2.55% 19.26% (4.03)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $58,080 $58,418 $36,198 $29,150 $16,947 $5,101
Ratios to average net assets of:
Expenses, net of waivers
and reimbursements .83%(e) .78% .84% .92% .95% .95%
Expenses, before waivers
and reimbursements .83%(e) .91% .84% .98% 1.58% 3.73%
Net investment income 5.32%(e) 5.24%(b) 5.89%(b) 5.87%(b) 5.96%(b) 5.64%(b)
Portfolio turnover rate 112% 235% 114% 137% 68% 32%
</TABLE>
See footnote summary on page B-84.
B-82
<PAGE>
FINANCIAL HIGHLIGHTS (continued) Alliance Variable Products Series Fund
================================================================================
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
--------------
U.S.
GOVERNMENT/
HIGH GRADE
SECURITIES
PORTFOLIO
--------------
JUNE 2, 1999(F)
TO
JUNE 30, 1999
(UNAUDITED)
--------------
CLASS A
Net asset value, beginning of period $11.13
----------
INCOME FROM INVESTMENT OPERATIONS
Net investment income (c) -0-
Net realized and unrealized gain (loss) on
investment transactions -0-
----------
Net increase (decrease) in net
asset value from operations -0-
----------
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income -0-
Distributions from net realized gains -0-
----------
Total dividends and distributions -0-
----------
Net asset value, end of period $11.13
==========
TOTAL RETURN
Total investment return based
on net asset value (d) 0%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $100
Ratios to average net assets of:
Expenses 1.08%(e)
Net investment income 6.16%(e)
Portfolio turnover rate 112%
<TABLE>
<CAPTION>
--------------------------------------------------------------------------
MONEY MARKET PORTFOLIO
--------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED DECEMBER 31,
JUNE 30, 1999 --------------------------------------------------------
(UNAUDITED) 1998 1997 1996 1995 1994
------------- ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
CLASS A
Net asset value, beginning of year $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
------ ------ ------ ------ ------- ------
INCOME FROM INVESTMENT OPERATIONS
Net investment income .02 .05 .05(b) .05(b) .05(b) .03(b)
------ ------ ------ ------ ------- ------
LESS: DIVIDENDS
Dividends from net investment income (.02) (.05) (.05) (.05) (.05) (.03)
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) 2.17% 4.98% 5.11% 4.71% 4.97% 3.27%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $124,456 $119,574 $67,584 $64,769 $28,092 $6,899
Ratios to average net assets of:
Expenses, net of waivers and reimbursements .65%(e) .68% .64% .69% .95% .95%
Exenses, before waivers and reimbursements .65%(e) .68% .64% .69% 1.07% 4.46%
Net investment income 4.33%(e) 4.84% 5.00%(b) 4.64%(b) 4.85%(b) 3.98%(b)
</TABLE>
See footnote summary on page B-84.
B-83
<PAGE>
Alliance Variable Products Series Fund
================================================================================
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
----------------
MONEY
MARKET
PORTFOLIO
----------------
June 16, 1999(f)
to
June 30, 1999
(unaudited)
----------------
Class B
Net asset value, beginning of period ................... $ 1.00
------
Income From Investment Operations
Net investment income .................................. .001
------
Less: Dividends
Dividends from net investment income ................... (.001)
------
Net asset value, end of period ......................... $ 1.00
======
Total Return
Total investment return based on net asset value (d) ... .18%
Ratios/Supplemental Data
Net assets, end of period (000's omitted) .............. $114
Ratios to average net assets of:
Expenses ............................................. .90%(e)
Net investment income ................................ 6.22%(e)
- --------------------------------------------------------------------------------
Footnote Summary:
(a) Commencement of operations.
(b) Net of expenses reimbursed or waived by the 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) Commencement of distribution.
B-84
<PAGE>
Alliance Variable Products Series Fund
================================================================================
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
Matthew Bloom, Senior Vice President
Kathleen A. Corbet, Senior Vice President
Alfred L. Harrison, Senior Vice President
Nelson Jantzen, Senior Vice President
Wayne D. Lyski, Senior Vice President
Raymond J. Papera, Senior Vice President
Alden M. Stewart, Senior Vice President
Peter Anastos, Vice President
Steven Beinhacker, Vice President
Mark H. Breedon, Vice President
Russell Brody, Vice President
Nicholas D.P. Carn, Vice President
Ian Coulman, Vice President
Randall E. Haase, Vice President
David Kruth, Vice President
Gerald T. Malone, Vice President
Douglas J. Peebles, Vice President
Daniel G. Pine, Vice President
Paul C. 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-85
<PAGE>
(This page left intentionally blank.)
<PAGE>
(This page left intentionally blank.)
<PAGE>
(This page left intentionally blank.)
