ALLIANCE VARIABLE PRODUCTS SERIES FUND GROWTH INVESTORS PORTFOLIO
SEMI-ANNUAL REPORT
JUNE 30, 2000
(UNAUDITED)
Investment Products Offered
o Are Not FDIC Insured
o May Lose Value
o Are Not Bank Guaranteed
GROWTH INVESTORS PORTFOLIO
TEN LARGEST HOLDINGS
June 30, 2000 (unaudited) Alliance Variable Products Series Fund
_______________________________________________________________________________
PERCENT OF
COMPANY U.S. $ VALUE NET ASSETS
-------------------------------------------------------------------------------
U.S. Treasury Notes $5,741,435 34.0%
U.S. Treasury Bond, 5.50%, 8/15/28 1,192,347 7.1
BP Amoco Plc 334,797 2.0
American International Group, Inc. 320,187 1.9
Citigroup, Inc. 307,275 1.8
Pfizer, Inc. 290,400 1.7
Intel Corp. 280,744 1.7
Cisco Systems, Inc. 260,606 1.5
Nortel Networks Corp. 259,350 1.5
Home Depot, Inc. 237,203 1.4
$9,224,344 54.6%
1
GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 2000 (unaudited) Alliance Variable Products Series Fund
_______________________________________________________________________________
Company Shares U.S. $ Value
-------------------------------------------------------------------------------
COMMON STOCKS-57.2%
UNITED STATES INVESTMENTS-37.5%
TECHNOLOGY-8.2%
COMMUNICATION EQUIPMENT-0.7%
Lucent Technologies, Inc. 2,000 $ 118,500
COMPUTER HARDWARE-2.5%
Dell Computer Corp. (a) 4,200 207,113
Hewlett-Packard Co. 1,700 212,287
------------
419,400
COMPUTER SOFTWARE-0.8%
Microsoft Corp. (a) 1,700 136,000
NETWORKING SOFTWARE-1.5%
Cisco Systems, Inc. (a) 4,100 260,606
SEMI-CONDUCTOR COMPONENTS-2.4%
Applied Materials, Inc. (a) 1,400 126,875
Intel Corp. 2,100 280,744
------------
407,619
MISCELLANEOUS-0.3%
Agilent Technologies, Inc. (a) 648 47,790
------------
1,389,915
FINANCE-5.5%
BANKING - REGIONAL-0.9%
BankAmerica Corp. 3,600 154,800
INSURANCE-1.9%
American International Group, Inc. 2,725 320,187
MISCELLANEOUS-2.7%
Citigroup, Inc. 5,100 307,275
MBNA Corp. 5,200 141,050
------------
448,325
------------
923,312
CONSUMER SERVICES-5.2%
BROADCASTING & CABLE-0.8%
AT&T Corp. - Liberty Media Group
Series A (a) 5,600 135,800
RETAIL - GENERAL MERCHANDISE-4.4%
Circuit City Stores-Circuit City Group 4,500 149,344
Home Depot, Inc. 4,750 237,203
Target Corp. 2,700 156,600
Wal-Mart Stores, Inc. 3,400 195,925
------------
739,072
------------
874,872
ENERGY-4.7%
DOMESTIC INTEGRATED-0.7%
Kerr-McGee Corp. 2,100 123,769
INTERNATIONAL-1.7%
Chevron Corp. 1,600 135,700
Exxon Mobil Corp. 1,800 141,300
------------
277,000
OIL SERVICE-2.3%
Halliburton Co. 4,000 188,750
Noble Drilling Corp. (a) 4,800 197,700
------------
386,450
------------
787,219
HEALTH CARE-3.0%
DRUGS-3.0%
Pfizer, Inc. 6,050 290,400
Schering-Plough Corp. 4,300 217,150
------------
507,550
BASIC INDUSTRY-2.4%
CHEMICALS-0.9%
Union Carbide Corp. 3,100 153,450
MINING & METALS-1.0%
Alcoa, Inc. 5,400 156,600
PAPER & FOREST PRODUCTS-0.5%
International Paper Co. 2,900 86,456
------------
396,506
MULTI INDUSTRY COMPANY-2.1%
Honeywell International, Inc. 4,100 138,119
Minnesota Mining & Manufacturing Co. 2,700 222,750
------------
360,869
CONSUMER STAPLES-1.9%
RETAIL - FOOD & DRUG-0.9%
Kroger Co. (a) 7,000 154,438
TOBACCO-1.0%
Philip Morris Companies, Inc. 6,500 172,656
------------
327,094
UTILITIES-1.5%
TELEPHONE-1.5%
AT&T Corp. 1,900 60,088
WorldCom, Inc. (a) 4,350 199,556
------------
259,644
AEROSPACE & DEFENSE-1.2%
AEROSPACE-1.2%
United Technologies Corp. 3,400 200,175
2
Alliance Variable Products Series Fund
_______________________________________________________________________________
Company Shares U.S. $ Value
-------------------------------------------------------------------------------
CONSUMER MANUFACTURING-1.0%
AUTO & RELATED-1.0%
Harley-Davidson, Inc. 4,500 $ 173,250
CAPITAL GOODS-0.8%
MACHINERY-0.8%
Caterpillar, Inc. 3,900 132,112
Total United States Investments
(cost $6,044,097) 6,332,518
FOREIGN INVESTMENTS-19.7%
CANADA-1.5%
Nortel Networks Corp. 3,800 259,350
CHINA-0.4%
China Mobile (Hong Kong), Ltd. (a) 8,700 76,727
FINLAND-0.7%
Nokia AB Corp. (b) 2,400 122,469
FRANCE-3.0%
Alcatel (a)(b) 700 45,912
Banque Nationale de Paris (b) 1,320 127,029
Carrefour, SA (b) 480 32,811
Castorama Dubois Investissement, SA (b) 200 49,454
France Telecom, SA (b) 270 37,737
Sanofi-Synthelabo, SA (b) 940 44,781
STMicroelectronics NV (b) 1,790 112,788
Total Fina, Elf (b) 380 58,263
------------
508,775
HONG KONG-0.1%
Culturecom Holdings, Ltd. (a) 98,000 14,206
Sunevision Holdings, Ltd. (a) 2,000 1,629
------------
15,835
IRELAND-0.3%
CRH Plc (b) 2,900 52,466
JAPAN-4.2%
Advantest Corp. (b) 200 44,579
Banyu Pharmaceutical Co., Ltd. (b) 2,000 48,914
Canon, Inc. (b) 1,000 49,762
Fast Retailing Co., Ltd. (b) 100 41,845
Hoya Corp. (b) 1,000 89,534
Kao Corp. (b) 3,000 91,607
Kawasaki Steel Corp. (b) 26,000 37,246
NTT Docomo, Inc. (b) 2 54,098
Omron Corp. (b) 2,000 54,286
Sankyo Co., Ltd (b) 500 21,912
Santen Pharmaceutical Co., Ltd. (b) 1,000 24,127
Sumitomo Trust & Banking Co., Ltd. (b) 8,000 56,925
The Bank of Fukuoka, Ltd. (b) 5,000 34,023
Yamanouchi Pharmaceutical Co., Ltd. (b) 1,000 54,568
------------
703,426
NETHERLANDS-1.4%
Akzo Nobel NV (b) 900 38,236
Completel Europe NV (a)(b) 800 9,929
ING Groep NV (b) 1,500 101,389
Koninklijke (Royal) Philips
Electronics NV (b) 1,600 75,459
Libertel NV (a)(b) 800 12,182
------------
237,195
SOUTH KOREA-0.9%
Samsung Electronics Co., Ltd. (GDR) (c) 780 152,880
SPAIN-0.4%
Repsol, SA (b) 1,500 29,859
Telefonica, SA (a)(b) 1,600 34,369
------------
64,228
SWEDEN-0.8%
Securitas AB Series B 2,200 46,644
Telefonaktiebolaget LM Ericsson AB
Series B (a) 4,200 83,095
------------
129,739
SWITZERLAND-0.5%
ABB, Ltd. 644 77,080
UNITED KINGDOM-5.5%
BAE Systems Plc (b) 11,739 73,181
Bank of Scotland (b) 7,013 66,692
Billiton Plc (b) 6,500 26,457
BP Amoco Plc (b) 34,900 334,797
British Sky Broadcasting Group Plc (b) 750 14,662
CGNU Plc (b) 7,700 128,160
HSBC Holdings Plc (b) 66 754
Invensys Plc (b) 32 120
Reuters Group Plc (b) 2,150 36,663
Rio Tinto Plc (b) 1,400 22,878
Royal Bank of Scotland Group (b) 1,718 28,751
Slough Estates Plc (b) 7,300 40,345
SmithKline Beecham Plc (b) 4,400 57,588
Standard Chartered Plc (b) 70 872
Vodafone AirTouch Plc (b) 23,727 95,857
------------
927,777
Total Foreign Investments
(cost $2,885,863) 3,327,947
Total Common Stocks
(cost $8,929,960) 9,660,465
3
GROWTH INVESTORS PORTFOLIO
PORTFOLIO OF INVESTMENTS
(continued) Alliance Variable Products Series Fund
_______________________________________________________________________________
Principal
Amount
(000) U.S. $ Value
-------------------------------------------------------------------------------
DEBT OBLIGATIONS-41.0%
U.S. GOVERNMENT OBLIGATIONS-41.0%
U.S. Treasury Bond
5.50%, 8/15/28 $1,300 $ 1,192,347
U.S. Treasury Notes
3.875%, 1/15/09 (d) 1,983 1,953,044
4.75%, 2/15/04 1,100 1,045,858
4.75%, 11/15/08 400 363,248
6.50%, 8/31/01 1,700 1,700,000
6.875%, 5/15/06 660 679,285
Total Debt Obligations
(cost $7,005,977) 6,933,782
TOTAL INVESTMENTS-98.2%
(cost $15,935,937) $16,594,247
Other assets less liabilities-1.8% 308,979
NET ASSETS-100% $16,903,226
(a) Non-income producing security.
(b) Securities, or portion thereof, with an aggregate market value of
$2,616,336 have been segregated to collateralize forward exchange currency
contracts.
(c) Security exempt from registration under Rule 144A of the Securities Act of
1933. This security may be resold in transactions exempt from registration
normally applied to qualified buyers. At June 30, 2000, the aggregate market
value of this security amounted to $152, 880 or 0.9% of net assets.
(d) Treasury Inflation Protection Securities.
Glossary:
GDR - Global Depositary Receipt
See Notes to Financial Statements.
4
GROWTH INVESTORS PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2000 (unaudited) Alliance Variable Products Series Fund
_______________________________________________________________________________
ASSETS
Investment in securities, at value (cost $15,935,937) $16,594,247
Foreign cash, at value (cost $182,576) 180,789
Dividends and interest receivable 146,228
Total assets 16,921,264
LIABILITIES
Due to custodian 7,480
Unrealized depreciation of forward exchange currency
contracts 5,776
Advisory fee payable 282
Accrued expenses 4,500
Total liabilities 18,038
NET ASSETS $16,903,226
COMPOSITION OF NET ASSETS
Capital stock, at par $1,289
Additional paid-in capital 14,951,374
Undistributed net investment income 213,645
Accumulated net realized gain on investments and
foreign currency transactions 1,086,474
Net unrealized appreciation of investments and foreign
currency denominated assets and liabilities 650,444
$16,903,226
Class A Shares
Net assets $16,903,226
Shares of capital stock outstanding 1,289,066
Net asset value per share $ 13.11
See Notes to Financial Statements.
5
GROWTH INVESTORS PORTFOLIO
STATEMENT OF OPERATIONS
Six Months Ended June 30, 2000 (unaudited)
Alliance Variable Products Series Fund
_______________________________________________________________________________
INVESTMENT INCOME
Interest $ 244,803
Dividends (net of foreign tax withheld of $4,478) 54,854
Total investment income 299,657
EXPENSES
Advisory fee 66,375
Custodian 42,166
Administrative 31,500
Audit and legal 1,652
Directors' fees 760
Printing 647
Transfer agency 512
Miscellaneous 1,553
Total expenses 145,165
Less: expenses waived and reimbursed (61,090)
Net expenses 84,075
Net investment income 215,582
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND
FOREIGN CURRENCY TRANSACTIONS
Net realized gain on investment transactions 1,189,102
Net realized loss on foreign currency transactions (21,821)
Net change in unrealized appreciation/depreciation of:
Investments (1,463,980)
Foreign currency denominated assets and liabilities (3,950)
Net loss on investments and foreign currency transactions (300,649)
NET DECREASE IN NET ASSETS FROM OPERATIONS $ (85,067)
See Notes to Financial Statements.
6
GROWTH INVESTORS 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 (DECREASE) IN NET ASSETS
FROM OPERATIONS
Net investment income $ 215,582 $ 424,306
Net realized gain on investments and
foreign currency transactions 1,167,281 3,490,765
Net change in unrealized appreciation/
depreciation of investments and
foreign currency denominated assets
and liabilities (1,467,930) (1,001,854)
Net increase (decrease) in net assets
from operations (85,067) 2,913,217
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income
Class A (373,465) (322,580)
Net realized gain on investments
Class A (3,603,485) (1,494,582)
CAPITAL STOCK TRANSACTIONS
Net increase (decrease) 2,036,217 (3,195,501)
Total decrease (2,025,800) (2,099,446)
NET ASSETS
Beginning of period 18,929,026 21,028,472
End of period (including undistributed
net investment income of
$213,645 and $371,528, respectively) $16,903,226 $18,929,026
See Notes to Financial Statements.
7
GROWTH INVESTORS PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
June 30, 2000 (unaudited) Alliance Variable Products Series Fund
_______________________________________________________________________________
NOTE A: Significant Accounting Policies
The Growth Investors Portfolio (the "Portfolio") is a series of Alliance
Variable Products Series Fund, Inc. (the "Fund"). The Portfolio's investment
objective is to seek to achieve the highest total return consistent with what
Alliance considers to be reasonable risk. 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
8
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. 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.
4. 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.
5. 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 .75% of the Portfolio's average daily net assets.
During the six months ended June 30, 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. Expense
waivers/reimbursements, if any, are accrued daily and paid monthly. For the six
months ended June 30, 2000, such waivers/reimbursements amounted to $61,090.
Brokerage commissions paid on investment transactions for the six months ended
June 30, 2000, amounted to $14,071, 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, nor 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
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 Distribu-
9
GROWTH INVESTORS PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
(continued) Alliance Variable Products Series Fund
_______________________________________________________________________________
tor 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 $5,037,390
U.S. government and agencies 87,891
Sales:
Stocks and debt obligations $5,640,977
U.S. government and agencies 186,781
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
(excluding foreign currency transactions) are as follows:
Gross unrealized appreciation $1,524,082
Gross unrealized depreciation (865,772)
Net unrealized appreciation $ 658,310
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.
10
Alliance Variable Products Series Fund
_______________________________________________________________________________
At June 30, 2000, the Portfolio had outstanding forward exchange currency
contracts as follows:
Contract U.S. $ Value on U.S. $ Unrealized
Amount Origination Current Appreciation
(000) Date Value (Depreciation)
------------ ------------- -------------- --------------
FORWARD EXCHANGE CURRENCY
SALE CONTRACTS
Euro, settling
9/18/00 935 $901,915 $896,997 $ 4,918
Pound Sterling,
settling 8/16/00 537 813,383 812,757 626
Japanese Yen,
settling 8/16/00 82,517 773,062 784,382 (11,320)
$ (5,776)
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. If a
put option is exercised, the premium received 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.
The Portfolio had no transactions in options written for the six months ended
June 30, 2000.
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 Six Months
Ended Year Ended Ended Year Ended
June 30, 2000 December 31, June 30, 2000 December 31,
(unaudited) 1999 (unaudited) 1999
------------ ------------- -------------- --------------
Class A
Shares sold 10,793 55,821 $ 185,170 $ 920,155
Shares issued in
reinvestment of
dividends and
distributions 301,284 121,063 3,976,951 1,817,162
Shares redeemed (127,801) (360,186) (2,125,904) (5,932,818)
Net increase
(decrease) 184,276 (183,302) $ 2,036,217 $(3,195,501)
11
GROWTH INVESTORS PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
(continued) 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, 2000.
12
GROWTH INVESTORS 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
Ended Year Ended December 31,
June 30, 2000 ---------------------------------------------------------------
(unaudited) 1999 1998 1997 1996 1995
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $17.13 $16.33 $14.38 $12.74 $11.87 $9.86
Income From Investment Operations
Net investment income (a)(b) .20 .35 .26 .23 .24 .35
Net realized and unrealized gain (loss)
on investments and foreign currency
transactions (.25) 2.08 3.03 1.83 .72 1.67
Net increase (decrease) in net asset
value from operations (.05) 2.43 3.29 2.06 .96 2.02
Less: Dividends and Distributions
Dividends from net investment income (.37) (.29) (.18) (.20) (.07) (.01)
Distributions from net realized gains (3.60) (1.34) (1.16) (.22) (.02) -0-
Total dividends and distributions (3.97) (1.63) (1.34) (.42) (.09) (.01)
Net asset value, end of period $13.11 $17.13 $16.33 $14.38 $12.74 $11.87
Total Return
Total investment return based on
net asset value (c) (.44)% 16.28% 23.68% 16.34% 8.18% 20.48%
Ratios/Supplemental Data
Net assets, end of period (000's omitted) $16,903 $18,929 $21,028 $16,600 $10,709 $4,978
Ratios to average net assets of:
Expenses, net of waivers and
reimbursements .95%(d) .95% .94% .95% .95% .95%
Expenses, before waivers and
reimbursements 1.64%(d) 1.47% 1.68% 1.70% 1.85% 6.17%
Net investment income (a) 2.44%(d) 2.19% 1.71% 1.72% 2.01% 3.21%
Portfolio turnover rate 30% 110% 100% 164% 160% 50%
</TABLE>
(a) Net of expenses reimbursed or waived by the Adviser.
(b) Based on average shares outstanding.
(c) 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.
(d) 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
