ALLIANCE VARIABLE PRODUCTS SERIES FUND PREMIER GROWTH PORTFOLIO
SEMI-ANNUAL REPORT
JUNE 30, 2000
(UNAUDITED)
Investment Products Offered
> Are Not FDIC Insured
> May Lose Value
> Are Not Bank Guaranteed
PREMIER GROWTH PORTFOLIO
TEN LARGEST HOLDINGS
June 30, 2000 (unaudited) Alliance Variable Products Series Fund
_______________________________________________________________________________
PERCENT OF
COMPANY U.S. $ VALUE NET ASSETS
-------------------------------------------------------------------------------
Pfizer, Inc. $ 160,428,000 5.8%
Nokia Corp. (ADR) 141,003,525 5.1
Intel Corp. 139,115,212 5.0
Cisco Systems, Inc. 123,260,400 4.5
Dell Computer Corp. 101,144,869 3.7
Tyco International, Ltd. 99,190,174 3.6
Citigroup, Inc. 92,536,469 3.3
Home Depot, Inc. 89,914,816 3.2
Morgan Stanley Dean Witter & Co. 88,362,382 3.2
Applied Materials, Inc. 84,263,125 3.0
$1,119,218,972 40.4%
1
PREMIER GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 2000 (unaudited) Alliance Variable Products Series Fund
_______________________________________________________________________________
Company Shares U.S. $ Value
-------------------------------------------------------------------------------
COMMON STOCKS-98.4%
TECHNOLOGY-38.3%
COMMUNICATIONS EQUIPMENT-13.0%
Corning, Inc. 198,100 $ 53,462,238
EMC Corp. (a) 930,200 71,567,262
Lucent Technologies, Inc. 215,284 12,755,577
Nokia Corp. (ADR) (Finland) 2,823,600 141,003,525
Nortel Networks Corp. 1,187,000 81,012,750
------------
359,801,352
COMPUTER HARDWARE-5.3%
Dell Computer Corp. (a) 2,051,100 101,144,869
International Business Machines Corp. 51,600 5,653,425
Sun Microsystems, Inc. (a) 443,000 40,285,312
------------
147,083,606
COMPUTER SOFTWARE-3.6%
Amdocs, Ltd. (a) 175,750 13,488,812
Microsoft Corp. (a) 614,500 49,160,000
Oracle Corp. (a) 446,000 37,491,875
------------
100,140,687
CONTRACT MANUFACTURING-0.5%
Solectron Corp. (a) 323,200 13,534,000
INTERNET-0.6%
America Online, Inc. (a) 176,900 9,331,475
eBay, Inc. (a) 68,800 3,736,700
Yahoo!, Inc. (a) 34,200 4,236,525
------------
17,304,700
NETWORKING SOFTWARE-4.8%
3Com Corp. (a) 144,200 8,309,525
Cisco Systems, Inc. (a) 1,939,200 123,260,400
------------
131,569,925
SEMI-CONDUCTOR CAPITAL EQUIPMENT-3.0%
Applied Materials, Inc. (a) 929,800 84,263,125
SEMI-CONDUCTOR COMPONENTS-7.5%
Intel Corp. 1,040,600 139,115,212
Micron Technology, Inc. (a) 292,600 25,767,088
PMC-Sierra, Inc. (a) 107,300 19,065,869
Texas Instruments, Inc. 326,400 22,419,600
------------
206,367,769
------------
1,060,065,164
CONSUMER SERVICES-21.2%
AIRLINES-1.5%
Continental Airlines, Inc. Cl.B (a) 331,500 15,580,500
Delta Air Lines, Inc. 58,000 2,932,625
KLM Royal Dutch Air (Netherlands) 141,063 3,746,986
Northwest Airlines Corp. Cl.A (a) 251,260 7,647,726
UAL Corp. (a) 188,000 10,939,250
------------
40,847,087
BROADCASTING & CABLE-4.8%
AMFM, Inc. (a) 414,100 28,572,900
AT&T Corp.-Liberty Media Cl.A (a) 2,265,220 54,931,585
Clear Channel Communications (a) 175,400 13,155,000
Viacom, Inc. (a) 535,745 36,531,112
------------
133,190,597
CELLULAR COMMUNICATIONS-4.6%
AT&T Wireless Group (a) 1,921,000 53,547,875
Vodafone AirTouch Plc (ADR)
(United Kingdom) 1,785,800 73,999,087
------------
127,546,962
ENTERTAINMENT & LEISURE-2.2%
Time Warner, Inc. 514,300 39,086,800
Walt Disney Co. 532,700 20,675,419
------------
59,762,219
RETAIL- GENERAL MERCHANDISE-8.1%
Costco Wholesale Corp. (a) 221,600 7,312,800
Gap, Inc. 914,550 28,579,687
Home Depot, Inc. 1,800,547 89,914,816
Kohl's Corp. (a) 549,800 30,582,625
Lowes Cos., Inc. 695,400 28,554,863
Target Corp. 178,800 10,370,400
Tommy Hilfiger Corp. (a) 403,200 3,024,000
Wal-Mart Stores, Inc. 464,600 26,772,575
------------
225,111,766
------------
586,458,631
FINANCE-15.3%
BANKING-MONEY CENTERS-4.0%
Chase Manhattan Corp. 367,700 16,937,181
Citigroup, Inc. 1,535,875 92,536,469
------------
109,473,650
BANKING- REGIONAL-0.5%
Bank of America Corp. 193,896 8,337,528
Fifth Third Bancorp 84,200 5,325,650
------------
13,663,178
BROKERAGE & MONEY MANAGEMENT-4.7%
Goldman Sachs Group, Inc. 193,600 18,367,800
Merrill Lynch & Co., Inc. 199,900 22,988,500
Morgan Stanley Dean Witter & Co. 1,061,410 88,362,382
------------
129,718,682
2
Alliance Variable Products Series Fund
_______________________________________________________________________________
Shares or
Principal
Amount
Company (000) U.S. $ Value
-------------------------------------------------------------------------------
INSURANCE-0.6%
American International Group, Inc. 150,855 $ 17,725,463
MORTGAGE BANKING-1.9%
Federal Home Loan Mortgage Corp. 986,800 39,965,400
Federal National Mortgage Assn. 226,000 11,794,375
------------
51,759,775
MISCELLANEOUS-3.6%
Associates First Capital Corp. Cl.A 1,166,556 26,028,781
MBNA Corp. 2,346,062 63,636,932
The CIT Group, Inc. Cl.A 681,840 11,079,900
------------
100,745,613
------------
423,086,361
HEALTH CARE-10.9%
DRUGS-10.3%
Merck & Co., Inc. 175,500 13,447,687
Pfizer, Inc. 3,342,250 160,428,000
Pharmacia Corp. 576,704 29,808,388
Schering-Plough Corp. 1,634,200 82,527,100
------------
286,211,175
MEDICAL PRODUCTS-0.3%
Medtronic, Inc. 155,000 7,720,938
MEDICAL SERVICES-0.3%
IMS Health, Inc. 432,400 7,783,200
------------
301,715,313
MULTI-INDUSTRY COMPANIES-4.1%
Honeywell International, Inc. 402,237 13,550,359
Tyco International, Ltd. 2,093,724 99,190,174
------------
112,740,533
UTILITIES-3.6%
TELEPHONE UTILITIES-3.6%
MediaOne Group, Inc. (a) 1,029,400 68,263,374
Sprint Corp. 250,000 12,750,000
WorldCom, Inc. (a) 383,978 17,614,991
------------
98,628,365
CONSUMER STAPLES-1.6%
HOUSEHOLD PRODUCTS-0.6%
Colgate-Palmolive Co. 257,300 15,405,837
RETAIL - FOOD & DRUGS-0.7%
Kroger Co. (a) 620,300 13,685,369
Walgreen Co. 200,000 6,437,500
------------
20,122,869
TOBACCO-0.3%
Philip Morris Cos., Inc. 366,473 9,734,439
------------
45,263,145
ENERGY-1.6%
INTERNATIONAL-1.6%
BP Amoco Plc (ADR) (United Kingdom) 765,088 43,275,290
CAPITAL GOODS-1.4%
ELECTRICAL EQUIPMENT-0.7%
General Electric Co. 334,500 17,728,500
MISCELLANEOUS-0.7%
United Technologies Corp. 346,500 20,400,188
------------
38,128,688
AEROSPACE & DEFENSE-0.3%
AEROSPACE-0.3%
General Motors Corp. Cl.H (a) 109,200 9,582,300
BASIC INDUSTRY-0.1%
PAPER & FOREST PRODUCTS-0.1%
International Paper Co. 103,200 3,076,650
Total Common Stocks
(cost $1,964,279,375) 2,722,020,440
SHORT-TERM INVESTMENTS-1.5%
COMMERCIAL PAPER-1.4%
General Electric Capital Corp.
6.80%, 7/03/00 $38,883 38,868,311
TIME DEPOSIT-0.1%
State Street Cayman Islands
6.00%, 7/03/00 3,528 3,528,000
Total Short-Term Investments
(amortized cost $42,396,311) 42,396,311
TOTAL INVESTMENTS-99.9%
(cost $2,006,675,686) 2,764,416,751
Other assets less liabilities-0.1% 3,171,088
NET ASSETS-100% $2,767,587,839
(a) Non-income producing security.
Glossary:
ADR - American Depositary Receipt
See Notes to Financial Statements.
3
PREMIER GROWTH PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2000 (unaudited) Alliance Variable Products Series Fund
_______________________________________________________________________________
ASSETS
Investments in securities, at value (cost $2,006,675,686) $2,764,416,751
Cash 479
Receivable for investment securities sold 4,893,487
Dividends and interest receivable 777,355
Total assets 2,770,088,072
LIABILITIES
Advisory fee payable 2,234,783
Accrued expenses 265,450
Total liabilities 2,500,233
NET ASSETS $2,767,587,839
COMPOSITION OF NET ASSETS
Capital stock, at par $ 69,903
Additional paid-in capital 1,921,235,717
Accumulated net investment loss (4,132,736)
Accumulated net realized gain on investments and foreign
currency transactions 92,673,890
Net unrealized appreciation of investments 757,741,065
$2,767,587,839
Class A Shares
Net assets $2,618,007,905
Shares of capital stock outstanding 66,116,169
Net asset value per share $ 39.60
Class B Shares
Net assets $ 149,579,934
Shares of capital stock outstanding 3,787,312
Net asset value per share $ 39.50
See Notes to Financial Statements.
4
PREMIER GROWTH PORTFOLIO
STATEMENT OF OPERATIONS
Six Months Ended June 30, 2000 (unaudited)
Alliance Variable Products Series Fund
_______________________________________________________________________________
INVESTMENT INCOME
Dividends (net of foreign tax withheld of $115,101) $ 7,349,327
Interest 1,555,119
Total investment income 8,904,446
EXPENSES
Advisory fee 12,527,000
Distribution fee - Class B 83,611
Printing 137,066
Custodian 125,210
Audit and legal 116,397
Administrative 31,500
Directors' fees 679
Transfer agency 488
Miscellaneous 15,231
Total expenses 13,037,182
Net investment loss (4,132,736)
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on investment transactions 93,157,880
Net change in unrealized appreciation/depreciation of
investments (5,535,926)
Net gain on investments 87,621,954
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 83,489,218
See Notes to Financial Statements.
5
PREMIER GROWTH 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 $ (4,132,736) $ (4,671,127)
Net realized gain on investments and
foreign currency transactions 93,157,880 136,966,342
Net change in unrealized
appreciation/depreciation of
investments (5,535,926) 381,569,586
Net increase in net assets from
operations 83,489,218 513,864,801
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net realized gain on investments
Class A (131,184,766) (23,280,324)
Class B (5,912,426) -0-
CAPITAL STOCK TRANSACTIONS
Net increase 448,508,832 634,848,234
Total increase 394,900,858 1,125,432,711
NET ASSETS
Beginning of period 2,372,686,981 1,247,254,270
End of period $2,767,587,839 $2,372,686,981
See Notes to Financial Statements.
6
PREMIER GROWTH PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
June 30, 2000 (unaudited) Alliance Variable Products Series Fund
_______________________________________________________________________________
NOTE A: Significant Accounting Policies
The Premier Growth 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 by pursuing aggressive investment policies. 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 settlement dates on investment
transactions, and the difference between the amounts of interest, dividends and
foreign witholding tax reclaims recorded on the Port-
7
PREMIER GROWTH PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
(continued) Alliance Variable Products Series Fund
_______________________________________________________________________________
folio'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 1% of the Portfolio's average daily net assets.
Pursuant to the advisory agreement, the Portfolio paid $31,500 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.
Brokerage commissions paid by the Portfolio on investment transactions for the
six months ended June 30, 2000, amounted to $897,843, 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 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
8
Alliance Variable Products Series Fund
_______________________________________________________________________________
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 $ 785,955,412
U.S. government and agencies -0-
Sales:
Stocks and debt obligations $ 447,328,194
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 $ 888,415,830
Gross unrealized depreciation (130,674,765)
Net unrealized appreciation $ 757,741,065
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.
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
9
PREMIER GROWTH PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
(continued) Alliance Variable Products Series Fund
_______________________________________________________________________________
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.
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 Ended Year Ended Six Months Ended Year Ended
June 30, 2000 December 31, June 30, 2000 December 31,
(unaudited) 1999 (unaudited) 1999
------------ ------------ -------------- --------------
CLASS A
Shares sold 7,473,200 22,731,430 $299,506,927 $777,611,880
Shares issued in
reinvestment of
dividends and
distributions 3,294,444 743,305 131,184,767 23,280,324
Shares redeemed (2,643,766) (5,672,425) (106,962,516) (190,852,826)
Net increase 8,123,878 17,802,310 $323,729,178 $610,039,378
Six Months July 14, Six Months July 14,
Ended 1999* to Ended 1999* to
June 30, 2000 December 31, June 30, 2000 December 31,
(unaudited) 1999 (unaudited) 1999
------------ ------------ -------------- --------------
CLASS B
Shares sold 2,992,679 678,946 $119,869,345 $25,084,578
Shares issued in
reinvestment of
dividends and
distributions 148,815 -0- 5,912,426 -0-
Shares redeemed (25,640) (7,488) (1,002,117) (275,722)
Net increase 3,115,854 671,458 $124,779,654 $24,808,856
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.
10
PREMIER GROWTH 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 $40.45 $31.03 $20.99 $15.70 $17.80 $12.37
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) (a) (.06) (.09) (.01)(b) .04(b) .08(b) .09(b)
Net realized and unrealized gain on
investment transactions 1.32 9.98 10.08 5.27 3.29 5.44
Net increase in net asset value from
operations 1.26 9.89 10.07 5.31 3.37 5.53
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income -0- -0- (.03) (.02) (.10) (.03)
Distributions from net realized gains (2.11) (.47) -0- -0- (5.37) (.07)
Total dividends and distributions (2.11) (.47) (.03) (.02) (5.47) (.10)
Net asset value, end of period $39.60 $40.45 $31.03 $20.99 $15.70 $17.80
TOTAL RETURN
Total investment return based on net
asset value (c) 3.08% 32.32% 47.97% 33.86% 22.70% 44.85%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(000's omitted) $2,618,008 $2,345,563 $1,247,254 $472,326 $96,434 $29,278
Ratios to average net assets of:
Expenses, net of waivers and
reimbursements 1.03%(d) 1.05% 1.06% .95% .95% .95%
Expenses, before waivers and
reimbursements 1.03%(d) 1.05% 1.09% 1.10% 1.23% 1.19%
Net investment income (loss) (.32)%(d) (.27)% (.04)%(b) .21%(b) .52%(b) .55%(b)
Portfolio turnover rate 18% 26% 31% 27% 32% 97%
</TABLE>
See footnote summary on page 12.
11
Alliance Variable Products Series Fund
_______________________________________________________________________________
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
CLASS B
-----------------------
Six Months July 14, 1999(e)
Ended to
June 30, 2000 December 31,
(unaudited) 1999
---------- ----------
Net asset value, beginning of period $40.40 $35.72
INCOME FROM INVESTMENT OPERATIONS
Net investment loss (a) (.12) (.07)
Net realized and unrealized gain on
investment transactions 1.33 4.75
Net increase in net asset value from
operations 1.21 4.68
LESS: DISTRIBUTIONS
Distributions from net realized gains (2.11) -0-
Net asset value, end of period $39.50 $40.40
TOTAL RETURN
Total investment return based
on net asset value (c) 2.95% 13.10%
Ratios/Supplemental Data
Net assets, end of period (000's omitted) $149,580 $27,124
Ratios to average net assets of:
Expenses (d) 1.30% 1.29%
Net investment loss (d) (.62)% (.53)%
Portfolio turnover rate 18% 26%
(a) Based on average shares outstanding.
(b) Net of expenses reimbursed or waived by the Adviser.
(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.
(e) Commencement of distribution.
12
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.
13
