ALLIANCE VARIABLE PRODUCTS SERIES FUND TECHNOLOGY PORTFOLIO
SEMI-ANNUAL REPORT
JUNE 30, 2000
(UNAUDITED)
Investment Products Offered
> Are Not FDIC Insured
> May Lose Value
> Are Not Bank Guaranteed
TECHNOLOGY PORTFOLIO
TEN LARGEST HOLDINGS
June 30, 2000 (unaudited) Alliance Variable Products Series Fund
_______________________________________________________________________________
PERCENT OF
COMPANY U.S. $ VALUE NET ASSETS
-------------------------------------------------------------------------------
Cisco Systems, Inc. $ 27,681,469 4.7%
PMC-Sierra, Inc. 24,503,106 4.2
Amdocs, Ltd. 23,370,375 4.0
Sanmina Corp. 23,350,050 4.0
Nokia Corp. (ADR) 21,657,894 3.7
Micron Technology, Inc. 20,404,081 3.5
Dell Computer Corp. 19,310,775 3.3
Xilinx, Inc. 17,082,181 2.9
Altera Corp. 16,840,075 2.8
First Data Corp. 14,649,300 2.5
$208,849,306 35.6%
1
TECHNOLOGY PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 2000 (unaudited) Alliance Variable Products Series Fund
_______________________________________________________________________________
Company Shares U.S. $ Value
-------------------------------------------------------------------------------
COMMON STOCKS-92.5%
TECHNOLOGY-86.9%
COMMUNICATIONS EQUIPMENT-7.5%
Exfo Electro-Optical Engineering, Inc. 7,100 $ 311,512
JDS Uniphase Corp. (a) 81,400 9,757,825
Lucent Technologies, Inc. 132,600 7,856,550
Motorola, Inc. 155,361 4,515,179
Nokia Corp. (ADR) (Finland) (a) 433,700 21,657,894
------------
44,098,960
COMPUTER HARDWARE-5.8%
Apex, Inc. (a) 91,250 3,992,188
Brocade Communications Systems, Inc. (a) 13,800 2,532,084
Dell Computer Corp. (a) 391,600 19,310,775
Gateway, Inc. (a) 147,600 8,376,300
------------
34,211,347
COMPUTER PERIPHERALS-1.6%
Lexmark International Group, Inc. (a) 142,100 9,556,225
COMPUTER SERVICES-9.4%
Computer Sciences Corp. (a) 105,400 7,872,062
Convergys Corp. (a) 60,500 3,138,437
DST Systems, Inc. (a) 151,725 11,550,066
Exult, Inc. (a) 31,000 310,000
First Data Corp. 295,200 14,649,300
Fiserv, Inc. (a) 120,350 5,205,137
MarchFirst, Inc. (a) 47,115 859,849
Sabre Group Holdings, Inc. Cl.A 44,400 1,265,400
Sapient Corp. (a) 96,700 10,340,856
Viant Corp. (a) 2,100 62,213
------------
55,253,320
COMPUTER SOFTWARE-15.7%
Amdocs, Ltd (a) 304,500 23,370,375
BEA Systems, Inc. (a) 233,200 11,528,825
I2 Technologies, Inc. (a) 66,500 6,933,664
Macrovision Corp. (a) 43,800 2,799,778
Microsoft Corp. (a) 181,000 14,480,000
Oracle Corp. (a) 173,200 14,559,625
Precise Software Solutions Ltd. 1,000 24,000
Rational Software Corp. (a) 61,300 5,697,069
TIBCO Software, Inc. (a) 38,600 4,139,247
VERITAS Software Corp. (a) 43,000 4,859,672
Vitria Technology, Inc. (a) 58,400 3,569,700
------------
91,961,955
CONTRACT MANUFACTURING-10.5%
Celestica, Inc. (a) 59,400 2,947,725
Flextronics International, Ltd. (a) 165,700 11,381,519
Jabil Circuit, Inc. (a) 197,600 9,805,900
Sanmina Corp. (a) 273,100 23,350,050
Solectron Corp. (a) 340,000 14,237,500
------------
61,722,694
INTERNET-6.6%
America Online, Inc. (a) 253,400 13,366,850
DoubleClick, Inc. (a) 107,300 4,090,812
EBay, Inc. (a) 243,600 13,230,525
Yahoo!, Inc. (a) 64,800 8,027,100
------------
38,715,287
NETWORKING SOFTWARE-4.7%
Cisco Systems, Inc. (a) 435,500 27,681,469
SEMI-CONDUCTOR CAPITAL EQUIPMENT-5.6%
Amkor Technology, Inc. (a) 117,500 4,149,219
Applied Materials, Inc. (a) 123,600 11,201,250
KLA-Tencor Corp. (a) 115,000 6,734,687
Teradyne, Inc. (a) 144,900 10,650,150
------------
32,735,306
SEMI-CONDUCTOR COMPONENTS-19.4%
Altera Corp. (a) 165,200 16,840,075
Fairchild Semiconductor Corp. Cl.A (a) 191,400 7,751,700
Intel Corp. (a) 73,200 9,785,925
Micron Technology, Inc. (a) 231,700 20,404,081
PMC-Sierra, Inc. (a) 137,900 24,503,106
STMicroelectronics NV (ADR) (Netherlands) 100,200 6,431,588
Taiwan Semiconductor Manufacturing
Company, Ltd. (ADR), (Taiwan) (a) 104,600 4,059,788
Texas Instruments, Inc. (a) 105,200 7,225,925
Xilinx, Inc. (a) 206,900 17,082,181
------------
114,084,369
MISCELLANEOUS-0.1%
StorageNetworks, Inc. (a) 3,700 333,925
------------
510,354,857
UTILITIES-2.9%
TELEPHONE UTILITY-2.9%
AT&T Corp. 98,600 3,118,225
U.S. WEST, Inc. 162,600 13,942,950
------------
17,061,175
2
Alliance Variable Products Series Fund
_______________________________________________________________________________
Company Shares U.S. $ Value
-------------------------------------------------------------------------------
CONSUMER SERVICES-2.7%
CELLULAR COMMUNICATIONS-2.7%
AT&T Wireless Group (a) 279,900 $ 7,802,213
Vodafone AirTouch Plc
(ADR) (United Kingdom) 186,928 7,745,829
------------
15,548,042
Total Common Stocks
(cost $367,043,523) 542,964,074
Principal
Amount
Company (000) U.S. $ Value
-------------------------------------------------------------------------------
SHORT-TERM INVESTMENT-8.1%
TIME DEPOSIT-8.1%
State Street Euro Dollar
6.00%, 7/03/00
(amortized cost $47,673,000) $47,673 $ 47,673,000
TOTAL INVESTMENTS-100.6%
(cost $414,716,523) 590,637,074
Other assets less liabilities-(0.6%) (3,312,903)
NET ASSETS-100% $587,324,171
(a) Non-income producing security.
Glossary:
ADR - American Depositary Receipt
See Notes to Financial Statements.
3
TECHNOLOGY PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2000 (unaudited) Alliance Variable Products Series Fund
_______________________________________________________________________________
ASSETS
Investments in securities, at value (cost $414,716,523) $590,637,074
Cash 461
Receivable for investment securities sold 1,677,810
Dividends and interest receivable 61,017
Deferred organization expenses 2,444
Total assets 592,378,806
LIABILITIES
Payable for investment securities purchased 4,554,571
Advisory fee payable 445,065
Accrued expenses 54,999
Total liabilities 5,054,635
NET ASSETS $587,324,171
COMPOSITION OF NET ASSETS
Capital stock, at par $ 16,069
Additional paid-in capital 367,864,777
Accumulated net investment loss (872,385)
Accumulated net realized gain on investments and foreign
currency transactions 44,395,159
Net unrealized appreciation of investments 175,920,551
$587,324,171
Class A Shares
Net assets $495,721,390
Shares of capital stock outstanding 13,560,701
Net asset value per share $ 36.56
Class B Shares
Net assets $ 91,602,781
Shares of capital stock outstanding 2,508,509
Net asset value per share $ 36.52
See Notes to Financial Statements.
4
TECHNOLOGY PORTFOLIO
STATEMENT OF OPERATIONS
Six Months Ended June 30, 2000 (unaudited)
Alliance Variable Products Series Fund
_______________________________________________________________________________
INVESTMENT INCOME
Interest $ 1,076,505
Dividends (net of foreign taxes withheld of $13,631) 488,298
Total investment income 1,564,803
EXPENSES
Advisory fee 2,426,307
Distribution fee - Class B 44,481
Custodian 61,039
Administrative 31,500
Audit and legal 20,562
Printing 10,168
Amortization of organization expenses 2,142
Transfer agency 491
Directors' fees 411
Miscellaneous 6,234
Total expenses 2,603,335
Less: expenses waived and reimbursed (166,147)
Net expenses 2,437,188
Net investment loss (872,385)
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND
FOREIGN CURRENCY TRANSACTIONS
Net realized gain on investment transactions 44,844,702
Net realized gain on written options transactions 62,315
Net realized loss on foreign currency transactions (753)
Net change in unrealized appreciation/depreciation of
investments 13,857,443
Net gain on investments, written options and foreign
currency transactions 58,763,707
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 57,891,322
See Notes to Financial Statements.
5
TECHNOLOGY PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS Alliance Variable Products Series Fund
_______________________________________________________________________________
Six Months Ended Year Ended
June 30, 2000 December 31,
(unaudited) 1999
--------------- ---------------
INCREASE IN NET ASSETS FROM OPERATIONS
Net investment loss $ (872,385) $ (777,699)
Net realized gain on investments, written
options and foreign currency transactions 44,906,264 30,906,400
Net change in unrealized
appreciation/depreciation of investments 13,857,443 111,387,457
Net increase in net assets from operations 57,891,322 141,516,158
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net realized gain on investments
Class A (26,796,903) (356,801)
Class B (3,620,556) -0-
CAPITAL STOCK TRANSACTIONS
Net increase 192,020,815 96,068,474
Total increase 219,494,678 237,227,831
NET ASSETS
Beginning of period 367,829,493 130,601,662
End of period $587,324,171 $367,829,493
See Notes to Financial Statements.
6
TECHNOLOGY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
June 30, 2000 (unaudited) Alliance Variable Products Series Fund
_______________________________________________________________________________
NOTE A: Significant Accounting Policies
The Technology Portfolio (the "Portfolio") is a series of Alliance Variable
Products Series Fund, Inc. (the "Fund"). The Portfolio's investment objective
is to seek growth of capital. Current income is incidental to the Portfolio's
objective. 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 Portfolio (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. As of June 30, 2000, the following Portfolios had Class B
shares issued and outstanding: Growth and Income Portfolio, Growth Portfolio,
Premier Growth Portfolio, Technology Portfolio, Global Bond Portfolio, U.S.
Government/High Grade Securities Portfolio and Money Market Portfolio.
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 accounting
principles generally accepted in the United States, 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) or on The
Nasdaq Stock Market, Inc., 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
(but excluding securities traded on The Nasdaq Stock Market, Inc.), 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 which approximates fair value, 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
expenses are translated at rates of exchange prevailing when accrued.
The Portfolios isolate that portion of the results of operations resulting from
changes in foreign exchange rates on investments from the fluctuations arising
from changes in market prices of securities held.
Net 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
7
TECHNOLOGY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
(continued) Alliance Variable Products Series Fund
_______________________________________________________________________________
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 period 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 $21,500 have been deferred and are being amortized on
a straight line basis through January 2001.
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 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 accounting principles generally accepted in the United States. 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, the Portfolio pays
Alliance Capital Management L.P. (the "Adviser"), an investment advisory fee at
an annualized rate of 1% of the Portfolio's average daily net assets.
Pursuant to the advisory agreement, the Portfolio paid $9,500 to the Adviser
representing the cost of certain legal and accounting services provided to the
Portfolio by the Adviser for the six months ended June 30, 2000.
Prior to May 1, 2000, the Adviser agreed to waive its fee and to reimburse the
additional operating expenses to the extent necessary to limit total operating
expenses on an annual basis to .95% and 1.20% of the average daily net assets
for Class A and Class B shares, respectively. Effective May 1, 2000, the
Adviser determined not to extend the expense limitation undertaking of the
Portfolio. Expense waivers/reimbursements, if any, are accrued daily and paid
monthly. For the six months ended June 30, 2000, such waivers/reimbursements
amounted to $166,147.
Brokerage commissions paid on investment transactions for the six months ended
June 30, 2000, amounted to $110,627, none of which was paid to brokers
utilizing the services of the Pershing Division of Donaldson, Lufkin & Jenrette
Securities Corp. ("DLJ"), an affiliate of the Adviser, and of which $5,406 was
paid to DLJ directly.
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, 2000, the Fund paid a total of $9,000 which was allocated evenly
among the Portfolios.
NOTE C: Distribution Plan
The Portfolios have each adopted a Plan for Class B shares of the Fund pursuant
to Rule 12b-1 under the Investment Company Act of 1940 (each a "Plan" and
collectively the "Plans"). Under the Plans, the Portfolios pay distribution and
servicing fees to the Distributor at an annual rate of up to .50% of each
portfolio's average daily net assets attributable to the Class B shares. The
8
Alliance Variable Products Series Fund
_______________________________________________________________________________
fees are accrued daily and paid monthly. The Board of Directors currently limit
payments under the Plan to .25% of each Portfolio's average daily net assets
attributable to Class B shares. The Plans provide that the Distributor will use
such payments in their entirety for distribution assistance and promotional
activities.
The Portfolios are not obligated under the Plans to pay any distribution
services fee in excess of the amounts set forth above. The purpose of the
payments to the Distributor under the Plans is to compensate the Distributor
for its distribution services with respect to the sale of each Portfolio's
shares. Since the Distributor's compensation is not directly tied to its
expenses, the amount of compensation received by it under the Plan during any
year may be more or less than its actual expenses. For this reason, the Plans
are characterized by the staff of the Commission as being of the "compensation"
variety.
In the event that a Plan is terminated or not continued, no distribution
services fees (other than current amounts accrued but not yet paid) would be
owed by the Portfolios to the Distributor with respect to the relevant Plan.
The Plan also provides that the Adviser may use its own resources to finance
the distribution of each Portfolio's shares.
NOTE D: Investment Transactions
Purchases and sales of investment securities (excluding short-term investments)
for the six months ended June 30, 2000, were as follows:
Purchases:
Stocks and debt obligations $255,761,305
U.S. government and agencies -0-
Sales:
Stocks and debt obligations $105,284,874
U.S. government and agencies -0-
At June 30, 2000, the cost of investments for federal income tax purposes was
substantially the same as the cost for financial reporting purposes.
Accordingly, gross unrealized appreciation and unrealized depreciation are as
follows:
Gross unrealized appreciation $191,977,497
Gross unrealized depreciation (16,056,946)
Net unrealized appreciation $175,920,551
1. Forward Exchange Currency Contracts
All Portfolios (except for the Global Dollar Government Portfolio, U.S.
Government/High Grade Securities Portfolio and Money Market Portfolio) may
enter into forward exchange currency contracts to hedge exposure to changes in
foreign currency exchange 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
an approximate value equal to the aggregate amount of the respective
portfolio's commitments under forward exchange currency contracts entered into
with respect to position hedges.
Risks may arise from the potential inability of a counterparty to meet the
terms of a contract and from unanticipated movements in the value of a foreign
currency relative to the U.S. dollar. The face or contract amount, in U.S.
dollars, reflects the total exposure each Portfolio has in that particular
currency contract.
At June 30, 2000, the Portfolio had no outstanding forward exchange currency
contracts.
9
TECHNOLOGY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
(continued) Alliance Variable Products Series Fund
_______________________________________________________________________________
2. Option Transactions
For hedging and investment purposes, all Portfolios (except for the Money
Market Portfolio) may purchase and write call options and purchase put 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 which written options
expire unexercised are recorded by the Portfolio on the expiration date as
realized gains from written options. 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. 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.
Transactions in options written for the six months ended June 30, 2000 were as
follows:
Number of
Contracts Premiums
----------- -------------
Options outstanding at beginning of period -0- $ -0-
Options written 128 88,180
Options terminated in closing purchase transactions (128) (88,180)
Options outstanding at June 30, 2000 -0- $ -0-
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 class consists of 10,000,000,000 authorized shares. Transactions in
capital stock were as follows:
SHARES AMOUNT
--------------------------- ------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 2000 December 31, June 30, 2000 December 31,
(unaudited) 1999 (unaudited) 1999
------------ ------------ -------------- --------------
Shares sold 6,075,106 12,863,200 $ 227,809,840 $ 307,701,168
Shares issued in
reinvestment of
dividends 723,654 17,796 26,796,903 356,801
Shares redeemed (3,873,497) (9,058,244) (145,013,630) (221,002,537)
Net increase 2,925,263 3,822,752 $ 109,593,113 $ 87,055,432
10
Alliance Variable Products Series Fund
_______________________________________________________________________________
SHARES AMOUNT
--------------------------- ------------------------------
Six Months September 22, Six Months September 22,
Ended 1999* to Ended 1999* to
June 30, 2000 December 31, June 30, 2000 December 31,
(unaudited) 1999 (unaudited) 1999
------------ ------------ -------------- --------------
Class B
Shares sold 2,202,281 318,126 $82,651,703 $9,336,030
Shares issued in
reinvestment of
dividends 97,853 -0- 3,620,556 -0-
Shares redeemed (99,565) (10,186) (3,844,557) (322,988)
Net increase 2,200,569 307,940 $82,427,702 $9,013,042
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, 2000.
* Commencement of distribution.
11
TECHNOLOGY PORTFOLIO
FINANCIAL HIGHLIGHTS Alliance Variable Products Series Fund
_______________________________________________________________________________
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
<TABLE>
<CAPTION>
CLASS A
---------------------------------------------------------------
Six Months January 31,
Ended Year Ended December 31, 1996(a) to
June 30, 2000 ------------------------------------- December 31,
(unaudited) 1999 1998 1997 1996
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $33.61 $19.17 $11.72 $11.04 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) (b)(c) (.06) (.09) (.04) .02 .11
Net realized and unrealized gain on
investment transactions 5.13 14.57 7.51 .69 .93
Net increase in net asset value from
operations 5.07 14.48 7.47 .71 1.04
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income -0- -0- (.02) (.03) -0-
Distributions from net realized gains (2.12) (.04) -0- -0- -0-
Total dividends and distributions (2.12) (.04) (.02) (.03) -0-
Net asset value, end of period $36.56 $33.61 $19.17 $11.72 $11.04
TOTAL RETURN
Total investment return based on net
asset value (d) 15.00% 75.71% 63.79% 6.47% 10.40%
Ratios/Supplemental Data
Net assets, end of period (000's omitted) $495,721 $357,480 $130,602 $69,240 $28,083
Ratios to average net assets of:
Expenses, net of waivers and
reimbursements .98%(f) .95% .95% .95% .95%(f)
Expenses, before waivers and
reimbursements 1.05%(f) 1.12% 1.20% 1.19% 1.62%(f)
Net investment income (loss) (b) (.34)%(f) (.39)% (.30)% .16% 1.17%(f)
Portfolio turnover rate 23% 64% 63% 46% 22%
</TABLE>
See footnote summary on page 13.
12
Alliance Variable Products Series Fund
_______________________________________________________________________________
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
CLASS B
----------------------------
Six Months September 22,
Ended 1999(e) to
June 30, 2000 December 31,
(unaudited) 1999
------------- ------------
Net asset value, beginning of period $33.61 $23.59
INCOME FROM INVESTMENT OPERATIONS
Net investment loss (b)(c) (.08) (.05)
Net realized and unrealized gain on
investment transactions 5.11 10.07
Net increase in net asset value from
operations 5.03 10.02
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income -0- -0-
Distributions from net realized gains (2.12) -0-
Total dividends and distributions (2.12) -0-
Net asset value, end of period $36.52 $33.61
TOTAL RETURN
Total investment return based on net
asset value (d) 14.88% 42.48%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $91,603 $10,350
Ratios to average net assets of:
Expenses, net of waivers and
reimbursements (f) 1.27% 1.20%
Expenses, before waivers and
reimbursements (f) 1.32% 1.52%
Net investment loss (b)(f) (.66)% (.64)%
Portfolio turnover rate 23% 64%
(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) Commencement of distribution.
(f) Annualized.
13
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
Andrew Aran, Senior Vice President
Kathleen A. Corbet, Senior Vice President
Gregory Dube, 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
Peter Anastos, Vice President
Bruce K. Aronow, Vice President
Edward Baker, Vice President
Thomas J. Bardong, Vice President
Matthew Bloom, Vice President
Mark H. Breedon, Vice President
Russell Brody, Vice President
Nicholas D.P. Carn, Vice President
Paul J. DeNoon, Vice President
Joseph C. Dona, Vice President
Vicki L. Fuller, Vice President
F. Jeanne Goetz, Vice President
Gerald T. Malone, Vice President
Michael Mon, Vice President
Douglas J. Peebles, Vice President
Daniel G. Pine, Vice President
Paul C. Rissman, Vice President
Tyler J. Smith, Vice President
Jean Van De Walle, Vice President
Sandra Yeager, 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.
14
