ACM INSTITUTIONAL RESERVES, INC.
ANNUAL REPORT
APRIL 30, 1995
STATEMENT OF NET ASSETS
April 30, 1995 ACM Institutional Reserves - Prime Portfolio
-------------------------------------------------------------------------------
Principal
Amount
(000) Security Yield Value
---------------------------------------------------------------------
COMMERCIAL PAPER-58.7%
AES Barbers Point, Inc.
$ 5,000 7/07/95 6.06% $4,943,608
Bausch & Lomb, Inc.
5,000 6/19/95 6.07 4,958,690
Casco Co. Ltd.
5,000 5/30/95 5.99 4,975,874
Copley Financing Corp.
4,000 6/08/95 6.00 3,974,667
Dupont E I De Nemours & Co.
3,000 10/24/95 6.04 2,911,413
Finance One Funding Corp.
5,000 6/30/95 6.05 4,949,583
General Electric Capital Corp.
5,000 7/26/95 6.00 4,928,333
International Nederlanden Group
5,000 5/19/95 5.97 4,985,075
Kamehameha Schools Bishop Estate
5,000 6/08/95 6.10 4,967,806
Kubota Finance (USA), Inc.
5,000 5/16/95 6.06 4,987,375
8,000 5/16/95 6.07 7,979,767
Mitsubishi Motors Credit of America
5,000 7/25/95 6.02 4,928,931
Mitsui and Co. USA, Inc.
6,000 6/21/95 6.10 5,948,150
New Zealand, Government of
5,000 7/18/95. 6.00 4,935,000
Pacific Dunlop Holdings, Inc.
3,000 5/22/95 6.03 2,989,447
Petroleo Brasileiro SA
5,000 6/19/95 6.10 4,958,486
Premium Funding, Inc.
(Series A)
8,000 6/02/95 6.08 7,956,764
Province of Quebec
3,000 12/06/95 6.10 2,888,675
Santander Finance Delaware, Inc.
5,000 5/25/95 6.52 4,978,267
Sierra Funding Corp.
3,000 5/15/95 6.13 2,992,848
Sumitomo Corp. of America
3,000 10/06/95 6.08 2,919,947
U.B.F.C., Inc.
4,000 5/02/95 6.05 3,999,328
WMC Finance
$7,000 5/22/95 6.05% $6,975,296
Younkers Funding Corp.
5,000 5/01/95 6.00 5,000,000
Total Commercial Paper
(amortized cost $116,033,330) 116,033,330
CORPORATE OBLIGATIONS-30.0%
Abbey National Treasury Service
5,000 7.40%, 12/15/95 6.60 5,021,074
Bankers Trust Corp.
5,000 6.22%, 6/20/95 FRN. 6.29 4,999,520
Bear Stearns Cos., Inc.
3,000 6.23%, 10/20/95 FRN 6.23 3,000,000
Boatmens First National Bank
of Kansas City
4,000 6.19%, 8/18/95 FRN 6.25 3,999,292
Comerica Bank
2,000 5.95%, 11/22/95 FRN 6.11 1,998,192
Comerica Bank Illinois
3,000 5.97%, 9/29/95 FRN 6.04 2,999,159
CS First Boston Group, Inc.
2,000 6.19%, 6/16/95 FRN 6.19 2,000,000
FCC National Bank Wilmington Del.
5,000 6.09%, 2/16/96 FRN 6.05 5,001,510
First Bank N A Milwaukee WI
8,000 6.01%, 5/04/95 FRN 6.08 7,999,989
Goldman Sachs Group
3,000 5.97%, 11/02/95 FRN 5.97 3,000,000
Merrill Lynch & Co., Inc.
2,000 5.99%, 6/20/95 FRN 5.99 2,000,000
4,000 6.06%, 3/25/96 FRN 6.06 4,000,000
Nationsbank North Carolina
3,000 5.75%, 7/21/95 5.77 2,999,493
Ontario Hydro
350 9.25%, 5/01/95 5.21 350,000
PNC Bank Ohio
2,000 5.94%, 6/15/95 FRN. 6.01 1,999,832
Wachovia Bank
8,000 6.02%, 6/13/95 6.04 7,999,753
Total Corporate Obligations
(amortized cost $59,367,814) 59,367,814
U.S. GOVERNMENT & AGENCY OBLIGATIONS-3.7%
Student Loan Marketing Association
$ 3,000 6.27%, 2/14/97 5.99% $3,011,445
Student Loan Marketing
Association FRN
4,200 6.22%, 11/27/96 5.98 4,212,262
Total U.S. Government & Agency Obligations
(amortized cost $7,223,707) 7,223,707
CERTIFICATE OF DEPOSIT-2.5%
American Express Centurion Bank
5,000 6.05%, 6/28/95 6.05 5,000,000
BANKER'S ACCEPTANCE-2.0%
Daiichi Kangyo Bank Ltd.
4,000 8/28/95 6.20 3,918,022
SHORT TERM INVESTMENTS-2.5%
State Street Bank and Trust Euro
5,000 5.88%, 5/01/95 5.88% $5,000,000
TOTAL INVESTMENTS-99.4%
(amortized cost $196,542,873) 196,542,873
Other assets less liabilities-0.6% 1,246,519
NET ASSETS-100% (offering and
redemption price of $1.00 per share;
197,907,442 shares outstanding) $197,789,392
Glossary of Terms:
FRN Floating Rate Note
See notes to financial statements.
3
STATEMENT OF NET ASSETs
April 30, 1995 ACM Institutional Reserves - Government Portfolio
-------------------------------------------------------------------------------
Principal
Amount
(000) Security Yield Value
-------------------------------------------------------------------
U.S. GOVERNMENT & AGENCY
OBLIGATIONS-89.5%
Federal Home Loan
Mortgage Corp.-29.9%
$ 3,000 5/25/95 5.88% $ 2,988,240
750 7/12/95 5.91 741,135
6,000 6/26/95 5.93 5,944,653
9,000 6/02/95 5.95 8,952,400
1,000 5/02/95 5.96 999,835
1,000 3/29/96 5.97 944,778
7,000 5/05/95 5.98 6,995,349
2,000 6/02/95 6.00 1,989,333
1,000 4/01/96 6.20 942,133
750 6.45%, 4/08/96 6.50 749,523
31,247,379
Federal National Mortgage
Association-21.0%
2,000 5.25%, 6/30/95 5.41 1,999,486
5,000 5/30/95 5.97 4,975,954
7,000 5.97%, 4/04/97 6.07 6,993,682
5,000 6/30/95 5.99 4,950,083
3,000 6.11%, 7/19/95 6.14 2,999,806
21,919,011
Federal Farm Credit Bank-16.4%
10,000 5/08/95 5.86 9,988,605
5,170 5/02/95 5.96 5,169,144
2,000 6.76%, 2/28/96 6.71 2,000,467
17,158,216
Student Loan Marketing
Association-10.8%
1,715 5.99%, 7/19/96 5.96 1,715,556
500 6.14%, 6/02/95 6.00 500,063
4,000 6.24%, 1/23/97 6.02 4,015,227
5,000 6.27%, 2/14/97 6.02 5,019,832
11,250,678
Federal Home Loan Bank-9.5%
2,500 5.94%, 8/05/96 6.09% $2,495,557
4,000 9/27/95 6.00 3,900,667
3,500 6.06%, 10/20/95 6.27 3,498,679
9,894,903
U.S. Treasury Notes-1.9%
2,000 3.88%, 8/31/95 5.67 1,988,543
Total U.S. Government & Agency
Obligations
(amortized cost $93,458,730) 93,458,730
REPURCHASE AGREEMENT-7.7%
State Street Repo
8,000 5.50%, dated 4/28/95,
due 5/01/95 in the amount of
$8,003,667 (cost $8,000,000;
collateralized by $7,380,000 U.S.
Treasury Note, 8.875%, 11/15/98
value-$8,163,347 5.50 8,000,000
TOTAL INVESTMENTS-97.2%
(amortized cost $101,458,730) 101,458,730
Other assets less liabilities-2.8% 2,951,142
NET ASSETS-100% (offering and redemption
price of $1.00 per share; 104,494,707
shares outstanding) $104,409,872
See notes to financial statements.
4
STATEMENT OF NET ASSETS
April 30, 1995 ACM Institutional Reserves - Tax-Free Portfolio
-------------------------------------------------------------------------------
Principal
Amount
(000) Security Yield Value
--------------------------------------------------------------------
ALABAMA-4.4%
Alabama HFA Series '89A MFHR
(Northbrook Project) VRDN*
560 4/01/14 5.15% $560,000
Phenix City CP Series '88 AMT
1,000 5/01/95 4.10 1,000,000
1,560,000
CALIFORNIA-13.0%
California GO RAN Series A
1,100 6/28/95 4.37 1,101,054
Kern County California
Community College TRAN
2,500 7/20/95 4.45 2,503,340
Orange County GO TRAN
1,000 7/19/95 3.78 866,666
Irrevocable standby letter of credit
dated December 8, 1994 with Chase
Manhattan Bank, of which the Portfolio
is the beneficiary, for account of
Alliance Capital Management, L.P.,
securing, under certain circumstances.
Orange County GO TRAN 7/19/95** 134,895
1,001,561
4,605,955
FLORIDA-1.1%
Sunshine State Government
Finance Commission CP Series '86
400 5/02/95 4.10 399,998
GEORGIA-1.1%
Macon-Bibb County Hospital Rev.
(Charter Med/Macon)Series '86 VRDN*
400 3/01/05 4.65 400,000
ILLINOIS-7.0%
Decatur Illinois Water Revenue CP
(New South Water Treatment)
Series '85
1,000 5/01/95 4.25 1,000,000
Illinois GO Certificates
1,500 6/15/95 4.20 1,500,684
2,500,684
INDIANA-4.8%
Indiana Dev. Fin. Auth.
Solid Waste Series '91A
$1,000 5/08/95 4.15% $1,000,000
Indiana Emp. Dev. Comm. IDR
(O'Neal Metals) AMT VRDN*
700 4/01/10 4.90 700,000
1,700,000
LOUISIANA-2.8%
Calcasieu Parish IDR
(Citgo Petroleum Corporation)
Series '94 AMT VRDN*
1,000 12/01/24 5.10 1,000,000
MASSACHUSETTS-2.8%
Massachusetts GO Series '93A
VRDN*AMBAC
1,000 2/01/06 4.74 1,000,000
MISSOURI-9.4%
Missouri Health & Educational
Facilities Authority (School District
Advance Funding Project) Series B
1,330 9/19/95 4.41 1,331,400
St Louis Industrial Dev. Auth.
(United Industries Corp./
Rex Realty Co.) Series A
1,000 1/01/01 5.00 1,000,000
St. Louis County IDR
(Schnuck Mkts.) VRDN*
1,000 12/01/15 5.20 1,000,000
3,331,400
NEW YORK-5.6%
New York State ERDA PCR
(Niagra Mohawk) Series '86A
AMT VRDN*
1,500 12/01/26 5.05 1,500,000
New York State Thruway Auth.
(General Revenue Project)
Series B FGIC VRDN*
500 1/01/24 4.90 500,000
2,000,000
OHIO-3.6%
Toledo Ohio Special Assessment Note
1,260 12/01/95 4.57 1,261,168
OKLAHOMA-0.6%
Bartlesville Health Fac.Auth.
(Heritage Villa Nursing Center)
Series '85 VRDN*
200 1/01/09 5.20% $200,000
OREGON-1.4%
Port Morrow Oregon
(Portland General Electric) VRDN*
500 10/01/13 5.00 500,000
PENNSYLVANIA-3.7%
Philadelphia CP Gas Work Revenue Notes
Series B
1,300 8/15/95 4.20 1,300,000
SOUTH CAROLINA-2.8%
Laurens County IDR (Nicca USA Project)
AMT VRDN*
1,000 4/01/09 4.80 1,000,000
TENNESSEE-4.2%
Sullivan County IDR
(Modern Forge Co. Project) VRDN*
1,500 7/01/10 4.80 1,500,000
TEXAS-15.2%
Austin Texas CP
(Travis & Williamson Utility System)
Series A
2,000 5/03/95 4.05 2,000,000
Dallas County IDR
(Crane CR/PL, Inc.) Series '85 VRDN*
700 5/01/10 4.60 700,000
Midlothian Texas Industrial
Development Corporation
(Box-Crow Cement Co.)
600 12/01/09 4.85 600,000
San Antonio Texas Industrial
Development Auth.
(Grima Corporation) AMT VRDN*
1,500 11/01/09 4.85 1,500,000
Texas GO TRAN
$600 8/31/95 4.21% $ 601,555
5,401,555
UTAH-4.3%
Emery County PCR(Pacificorp Project)
Series '91
1,000 5/31/95 4.20 1,000,000
Intermountain Power Agency
Utah Power Supply Revenue
Pre-Refunded
500 7/01/95 4.69 509,784
1,509,784
VIRGINIA-3.7%
Chesterfield County Industrial
Development Auth. PCR CP
(Virginia Electric & Power Co.
Project) Series '87B
1,300 5/05/95 4.00 1,300,000
WASHINGTON-3.7%
Pilchuck IDR
(Crystal Creek Association)
Series III '89 VRDN*
436 8/01/10 4.90 436,000
Pilchuck IDR
(Trinity at Canyon Park)
Series III '89 VRDN*
884 8/01/10 4.90 884,000
1,320,000
WISCONSIN-3.1%
Wisconsin Health & Educational
Fac. Auth. CP
(Alexian Village of Milwaukee)
Series '88A
1,100 5/24/95 4.25 1,100,000
TOTAL INVESTMENTS-98.3%
(amortized cost $34,890,378) 34,890,544
Other assets less liabilities-1.7% 606,613
NET ASSETS-100% (offering
and redemption price of $1.00
per share; 35,514,288 shares
outstanding) $35,497,157
+ All securities either mature or their interest rate changes in one year or
less.
* Variable Rate Demand Notes (VRDN) are instruments whose interest rates
change on a specified date (such as a coupon date or interest payment date) or
whose interest rates vary with changes in a designated base rate (such as the
prime interest rate). These instruments are payable on demand and are secured
by letters of credit or other credit support agreements from major banks.
Periodic Put Bonds (PPB) are payable on demand quarterly, semi-annually or
annually and their interest rates change less frequently than rates on Variable
Rate Demand Notes.
** See Note B to financial statements.
Glossary of terms:
AMBAC American Municipal Bond Assurance Corporation
AMT Alternative Minimum Tax
CP Commercial Paper
ERDA Energy Research & Development Authority
FGIC Financial Guaranty Insurance Company
GO General Obligation
HFA Housing Finance Agency/Authority
IDR Industrial Development Revenue
MFHR Multi-Family Housing Revenue
PCR Pollution Control Revenue
RAN Revenue Anticipation Note
TRAN Tax & Revenue Anticipation Note
VRDN Variable Rate Demand Note
See notes to financial statements.
7
STATEMENT OF NET ASSETS
April 30, 1995 ACM Institutional Reserves - Trust Portfolio
-------------------------------------------------------------------------------
Principal
Amount
(000) Security Yield Value
--------------------------------------------------------------------
U.S. GOVERNMENT & AGENCY
OBLIGATIONS-98.6%
Student Loan Marketing
Association-47.2%
$5,000 5.96%, 12/01/95 6.08% $ 4,996,310
1,680 5.99%, 7/19/96 6.04 1,679,107
22,300 6.19%, 11/20/97 6.14 22,333,212
2,000 6.22%, 11/27/96 6.05 2,005,485
2,960 6.24%, 11/01/96 6.04 2,968,390
17,500 6.27%, 2/14/97 6.09 17,554,304
51,536,808
Federal Home Loan Mortgage Corp.-17.7%
1,000 8/18/95 5.90 982,136
1,000 6/02/95 5.91 994,747
10,000 6/02/95 5.95 9,947,111
500 5/02/95 5.97 499,917
1,000 3/29/96 5.97 944,778
500 5/05/95 5.98 499,668
700 6/02/95 6.00 696,267
4,000 4/01/96 6.20 3,768,533
1,000 6.45%, 4/08/96 6.52 999,364
19,332,521
Federal National Mortgage
Association-13.7%
4,000 5.82%, 6/01/95 5.94 3,999,551
5,000 5.91%, 10/30/95 5.96 4,998,164
1,000 6/19/95 5.97 991,874
5,000 6/30/95 5.99 4,950,083
14,939,672
Federal Farm Credit Bank-11.0%
$10,000 6.20%, 5/01/95 6.20% $10,000,000
2,000 6.76%, 2/28/96 6.71 2,000,467
12,000,467
Federal Home Loan Bank-9.0%
3,000 9/27/95 6.00 2,925,500
5,000 6.06%, 10/20/95 6.14 4,998,113
2,000 2/14/96 6.20 1,900,456
9,824,069
TOTAL INVESTMENTS---98.6%
(amortized cost $107,633,537) 107,633,537
Other assets less liabilities-1.4% 1,542,824
NET ASSETS--100%
(offering and redemption price
of $1.00 per share; 109,196,483
shares outstanding) $109,176,361
See notes to financial statements.
8
STATEMENT OF OPERATIONS
Year Ended April 30, 1995 ACM Institutional Reserves - Prime Portfolio
-------------------------------------------------------------------------------
INVESTMENT INCOME
Interest $8,393,029
EXPENSES
Advisory fee (Note B) $ 308,476
Registration fees 124,344
Custodian fees 63,153
Transfer agency 24,898
Audit and legal fees 7,532
Amortization of organization expenses 7,300
Directors' fees 5,250
Printing 1,224
Miscellaneous 5,901
Total expenses 548,078
Less: expense reimbursement (239,602) 308,476
Net investment income 8,084,553
REALIZED LOSS ON INVESTMENTS
Net realized loss on investments (77,316)
NET INCREASE IN NET ASSETS FROM OPERATIONS $8,007,237
STATEMENTS OF CHANGES IN NET ASSETS
-------------------------------------------------------------------------------
Year Ended Year Ended
April 30,1995 April 30,1994
-------------- -------------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income $ 8,084,553 $ 3,017,781
Net realized loss on investments (77,316) (29,045)
Net increase in net assets from operations 8,007,237 2,988,736
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income (8,084,553) (3,017,781)
CAPITAL SHARE TRANSACTIONS
Net increase 89,756,927 43,836,689
Total increase 89,679,611 43,807,644
NET ASSETS
Beginning of year 108,109,781 64,302,137
End of year $197,789,392 $108,109,781
See notes to financial statements.
9
STATEMENT OF OPERATIONS
Year Ended April 30, 1995 ACM Institutional Reserves - Government Portfolio
-------------------------------------------------------------------------------
INVESTMENT INCOME
Interest $4,716,390
EXPENSES
Advisory fee (Note B) $ 183,563
Registration fees 65,261
Custodian fees 53,842
Transfer agency 23,537
Amortization of organization expenses 7,300
Audit and legal fees 6,575
Directors' fees 5,250
Printing 1,716
Miscellaneous 4,830
Total expenses 351,874
Less: expense reimbursement (168,311) 183,563
Net investment income 4,532,827
REALIZED LOSS ON INVESTMENTS
Net realized loss on investments (23,230)
NET INCREASE IN NET ASSETS FROM OPERATIONS $4,509,597
STATEMENTS OF CHANGES IN NET ASSETS
-------------------------------------------------------------------------------
Year Ended Year Ended
April 30,1995 April 30,1994
-------------- -------------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income $ 4,532,827 $ 2,518,517
Net realized loss on investments (23,230) (51,091)
Net increase in net assets from operations 4,509,597 2,467,426
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income (4,532,827) (2,518,517)
CAPITAL SHARE TRANSACTIONS
Net increase 27,878,851 3,356,435
Total increase 27,855,621 3,305,344
NET ASSETS
Beginning of year 76,554,251 73,248,907
End of year $104,409,872 $76,554,251
See notes to financial statements.
10
STATEMENT OF OPERATIONS
Year Ended April 30, 1995 ACM Institutional Reserves - Tax-Free Portfolio
-------------------------------------------------------------------------------
INVESTMENT INCOME
Interest $1,134,140
EXPENSES
Advisory fee (Note B) $64,550
Registration fees 77,194
Custodian fees 52,121
Transfer agency 20,982
Directors' fees 10,967
Audit and legal fees 7,887
Amortization of organization expenses 7,300
Printing 1,583
Miscellaneous 3,916
Total expenses 246,500
Less: expense reimbursement (181,950) 64,550
Net investment income 1,069,590
REALIZED AND UNREALIZED GAIN LOSS ON INVESTMENTS
Net realized loss on investments (11,019)
Net change in unrealized appreciation of investments (154,369)
Net loss on investments (165,388)
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 904,202
STATEMENTS OF CHANGES IN NET ASSETS
-------------------------------------------------------------------------------
Year Ended Year Ended
April 30,1995 April 30,1994
-------------- -------------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income $ 1,069,590 $ 755,018
Net realized loss on investments (11,019) (6,191)
Net change in unrealized appreciation of investments (154,369) 148
Net increase in net assets from operations 904,202 748,975
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income (1,069,590) (755,018)
CAPITAL SHARE TRANSACTIONS
Net decrease (133,564) (5,210,690)
OTHER CAPITAL CONTRIBUTIONS 154,387 -0-
Total decrease (144,565) (5,216,733)
NET ASSETS
Beginning of year 35,641,722 40,858,455
End of year $35,497,157 $35,641,722
See notes to financial statements.
11
STATEMENT OF OPERATIONS
Year Ended April 30, 1995 ACM Institutional Reserves - Trust Portfolio
-------------------------------------------------------------------------------
INVESTMENT INCOME
Interest $4,005,071
EXPENSES
Advisory fee (Note B $ 311,103
Registration fees 108,322
Custodian fees 55,471
Transfer agency 21,496
Audit and legal fees 11,367
Directors' fees 5,250
Printing 1,574
Miscellaneous 5,045
Total expenses 519,628
Less: expense reimbursement (182,478) 337,150
Net investment income 3,667,921
REALIZED LOSS ON INVESTMENTS
Net realized loss on investments (16,775)
NET INCREASE IN NET ASSETS FROM OPERATIONS $3,651,146
STATEMENTS OF CHANGES IN NET ASSETS
-------------------------------------------------------------------------------
Year Ended Year Ended
April 30,1995 April 30,1994
-------------- -------------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income $ 3,667,921 $ 570,971
Net realized loss on investments (16,775) (3,347)
Net increase in net assets from operations 3,651,146 567,624
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (3,667,921) (570,971)
Net realized gain on investments 0 (24)
CAPITAL SHARE TRANSACTIONS
Net increase 72,386,158 31,473,164
Total increase 72,369,383 31,469,793
NET ASSETS
Beginning of year 36,806,978 5,337,185
End of year $109,176,361 $36,806,978
See notes to financial statements.
12
NOTES TO FINANCIAL STATEMENTS
April 30, 1995 ACM Institutional Reserves, Inc.
-------------------------------------------------------------------------------
NOTE A: SIGNIFICANT ACCOUNTING POLICIES
ACM Institutional Reserves, Inc. (the "Fund") is an open-end investment company
registered under the Investment Company Act of 1940. The Fund operates as a
series company currently issuing four classes of capital stock: Prime
Portfolio, Government Portfolio, Tax-Free Portfolio and Trust Portfolio. Each
series is considered to be a separate entity for financial reporting and tax
purposes. The following is a summary of significant accounting policies
followed by the Fund.
1. VALUATION OF SECURITIES
Securities in which the Fund invests are traded primarily in the
over-the-counter market and are valued at amortized cost, under which method a
portfolio instrument is valued at cost and any premium or discount is amortized
on a constant basis to maturity. Amortization of premium is charged to income.
Accretion of market discount is credited to unrealized gain.
2. ORGANIZATION EXPENSES
The organization expenses of the Fund are being amortized against income on a
straight-line basis through August 1995 on Prime Portfolio and through July
1996 on Government and Tax-Free Portfolios, respectively.
3. FEDERAL INCOME TAXES
It is the Fund's policy to comply with the requirements of the Internal Revenue
Code applicable to regulated investment companies and to distribute all of its
investment company taxable income and net realized gains, if applicable, to its
shareholders. Therefore, no provisions for federal income or excise taxes are
required.
4. DIVIDENDS
The Fund declares dividends daily from net investment income and automatically
reinvests such dividends in additional shares at net asset value. Net realized
capital gains on investments, if any, are expected to be distributed near
calendar year end. Dividends paid by TaxFree Portfolio from net investment
income for the year ended April 30, 1995 are exempt from federal income taxes.
However, certain shareholders may be subject to the alternative minimum tax
(AMT).
5. GENERAL
Interest income is accrued daily. Security transactions are recorded on the
date securities are purchased or sold. Realized gain (loss) from security
transactions is recorded on the identified cost basis.
NOTE B: Advisory Fee and Transactions with an Affiliate of the Adviser
The Fund pays its Adviser, Alliance Capital Management L.P., an advisory fee at
the annual rate of .20 of 1% of average daily net assets for the Prime,
Government and Tax-Free Portfolios and .45 of 1% of average daily net assets
for the Trust Portfolio. The Adviser has agreed to reimburse the Prime,
Government and TaxFree Portfolios to the extent that their annual aggregate
operating expenses (excluding taxes, brokerage, interest and, where permitted,
extraordinary expenses) exceed .20 of 1% of their average daily net assets for
any fiscal year, and in regard to the Trust Portfolio exceed .50 of 1% of its
average daily net assets. The Adviser voluntarily agreed to reimburse the
Trust Portfolio from May 1, 1994, to October 9, 1994, for expenses exceeding
.45 of 1% of its average daily net assets. For the year ended April 30, 1995,
reimbursement was $239,602, $168,311, $181,950, and $182,478 for the Prime,
Government, Tax-Free and Trust Portfolios, respectively. The Prime,
Government, Tax-Free and Trust Portfolios compensate Alliance Fund Services,
Inc. (a wholly-owned subsidiary of the Adviser) for providing personnel and
facilities to perform transfer agency services. Such compensation for the
Prime, Government, Tax-Free and Trust Portfolios, for the year ended April 30,
1995, amounted to $18,000 per portfolio.
The Adviser established an irrevocable standby letter of credit with a
commercial bank, for the benefit of the Tax-Free Portfolio, which allows the
Portfolio to draw down up to $1,046,750 if Orange County, California, fails to
pay all principal and interest due at maturity on certain Orange County
securities owned by the Portfolio. The letter of credit will be reduced
prorata for any subsequent sales of these debt obligations, and the Adviser has
undertaken in certain circumstances to reimburse the Tax-Free Portfolio for an
amount up to the realized losses it may incur.
NOTE C: INVESTMENT TRANSACTIONS
At April 30, 1995, the cost of securities for federal income tax purposes was
the same as the cost for financial reporting purposes for all portfolios. For
federal income tax purposes, the Prime Portfolio had a capital loss
carryforward at April 30, 1995 of $118,050, of which $1,377 expires in 1999,
$3,535 in 2000, $6,777 in 2001, $29,045 in 2002 and $77,316 in 2003; the
Government Portfolio had a capital loss carryforward of $84,835, of which
$1,340 expires in 2000, $9,174 in 2001, $51,091 in 2002 and $23,230 in 2003;
the Tax-Free Portfolio had a capital loss carryforward of $17,297, of which $87
expires in 2000, $6,191 in 2002 and 11,019 in 2003; and the Trust Portfolio had
a capital loss carryforward of $20,122, of which $3,347 expires in 2002 and
$16,775 in 2003.
NOTE D: CAPITAL STOCK
There are 1,000,000,000 shares of $.Ol par value capital stock authorized. At
April 30, 1995, capital paid-in aggregated $197,907,442 on Prime Portfolio,
$104,494,707 on Government Portfolio, $35,514,288 on Tax-Free Portfolio, and
$109,196,483 on Trust Portfolio. Transactions, all at $1.00 per share, were as
follows:
Year Ended Year Ended
PRIME PORTFOLIO April 30,1995 April 30,1994
--------------- ------------- -------------
Shares sold 1,407,213,884 624,694,567
Shares issued on reinvestments of dividends 8,106,776 3,003,812
Shares redeemed (1,325,563,733) (583,861,690)
Net increase 89,756,927 43,836,689
Year Ended Year Ended
GOVERNMENT PORTFOLIO April 30,1995 April 30,1994
-------------------- ------------- -------------
Shares sold 608,886,851 353,347,971
Shares issued on reinvestments of dividends 4,548,358 2,507,438
Shares redeemed (585,556,358) (352,498,974)
Net increase 27,878,851 3,356,435
Year Ended Year Ended
TAX-FREE PORTFOLIO April 30,1995 April 30,1994
------------------ ------------- -------------
Shares sold 295,718,756 581,733,361
Shares issued on reinvestments of dividends 1,075,771 751,896
Shares redeemed (296,928,091) (587,695,947)
Net decrease (133,564) (5,210,690)
Year Ended Year Ended
TRUST PORTFOLIO April 30,1995 April 30,1994
---------------- ------------- -------------
Shares sold 415,936,022 176,630,000
Shares issued on reinvestments of dividends 3,675,366 563,938
Shares redeemed (347,225,230) (145,720,774)
Net increase 72,386,158 31,473,164
14
NOTE E: FINANCIAL HIGHLIGHTS.
Per share operating performance for a share outstanding throughout each period.
<TABLE>
<CAPTION>
Year Ended April 30, August 20,1990(a)
--------------------------------------------------------- Through
PRIME PORTFOLIO 1995 1994 1993 1992 April 30, 1991
--------------- ------------ ------------- ------------- ------------- ---------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.0502 0.0325 0.0353 0.0535 0.0506
LESS: DISTRIBUTIONS
Dividends from net investment income (0.0502) (0.0325) (0.0353) (0.0535) (0.0506)
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 1.00 1.00
TOTAL RETURNS
Total investment return based on net
asset value (b) 5.15% 3.30% 3.59% 5.50% 7.54%(c)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $197.8 $108.1 $64.3 $25.0 $27.2
Ratio of expenses to average net assets (d) 0.20% 0.20% 0.18%(e) 0.02%(f) -0-(g)
Ratio of net investment income to average
net assets (d) 5.24% 3.25% 3.42%(e) 5.30%(f) 6.84%(c)(g)
</TABLE>
<TABLE>
<CAPTION>
Year Ended April 30, July 22,1991(a)
------------------------------------------- Through
GOVERNMENT PORTFOLIO 1995 1994 1993 April 30, 1992
-------------------- ------------- ------------- ------------- ---------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.0493 0.0315 0.0339 0.0377
LESS: DISTRIBUTIONS
Dividends from net investment income (0.0493) (0.0315) (0.0339) (0.0377)
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
TOTAL RETURNS
Total investment return based on net
asset value (b) 5.06% 3.20% 3.45% 4.98%(c)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $104.4 $76.6 $73.2 $ 24.7
Ratio of expenses to average net assets (d) 0.20% 0.20% 0.18%(e) 0.10%(c)(h)
Ratio of net investment income to average
net assets (d) 4.94% 3.15% 3.30%(e) 4.86%(c)(h)
</TABLE>
(a) Commencement of operations.
(b) 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 at net asset value during the period and redemption on the last
day of the period.
(c) Annualized.
(d) Net of expense reimbursement.
(e) Net of voluntary expense reimbursement equivalent to .02% of average daily
net assets.
(f) Net of voluntary expense reimbursement equivalent to .18% of average daily
net assets.
(g) Net of voluntary expense reimbursement equivalent to .20% of average daily
net assets.
(h) Net of voluntary expense reimbursement equivalent to .10% of average daily
net assets.
15
<TABLE>
<CAPTION>
Year Ended April 30, July 22, 1991(a)
-------------------------------------------- Through
TAX-FREE PORTFOLIO 1995 1994 1993 April 30, 1992
------------------ ------------- ------------- ------------- ----------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.0326 0.0240 0.0287 0.0334
Net unrealized loss on investments (0.0048) -0- -0- -0-
Net increase in net asset value
from operations 0.0278 0.0240 0.0287 0.0334
LESS: DISTRIBUTIONS
Dividends from net investment income (0.0326) (0.0240) (0.0287) (0.0334)
Add: Capital Contribution (See Note B)
Capital Contributed by the Adviser 0.0048 -0- -0- -0-
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
TOTAL RETURNS
Total investment return based on net
asset value (b) 3.31%(j) 2.43% 2.92% 4.40%(c)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $35.0 $35.6 $40.9 $8.5
Ratio of expenses to average net assets (d) 0.20% 0.20% 0. 18%(e) 0.10%(c)(f)
Ratio of net investment income to average
net assets (d) 3.31% 2.40% 2.73%(e) 4.01%(c)(f)
</TABLE>
November 16,
Year Ended April 30, 1992(a)
----------------------- Through
TRUST PORTFOLIO 1995 1994 Apr.30,1993
--------------- ----------- ---------- -------------
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.0479 0.0309 0.0144
LESS: DISTRIBUTIONS
Dividends from net investment income (0.0479) (0.0309) (0.0144)
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00
TOTAL RETURNS
Total investment return based
on net asset value (b) 4.91% 3.14% 3.21 %(c)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $109.2 $36.8 $5.3
Ratio of expenses to average
net assets (d) 0.49%(g) 0.14%(h) -0-(i)
Ratio of net investment income to
average net assets (d) 5.31%(g) 3.15%(h) 3.17%(c)(i)
(a) Commencement of operations.
(b) 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 at net asset value during the period and redemption on the last
day of the period.
(c) Annualized.
(d) Net of expense reimbursement.
(e) Net of voluntary expense reimbursement equivalent to .02% of average daily
net assets.
(f) Net of voluntary expense reimbursement equivalent to .10% of average daily
net assets.
(g) Net of voluntary expense reimbursement equivalent to .01% of average daily
net assets.
(h) Net of voluntary expense reimbursement equivalent to .31% of average daily
net assets.
(I) Net of voluntary expense reimbursement equivalent to .45% of average daily
net assets.
(J) Capital contributed by the Adviser had no material effect on net asset
value, and therefore, effect on total return.
16
INDEPENDENT AUDITOR'S REPORT ACM Institutional Reserves, Inc.
-------------------------------------------------------------------------------
TO THE BOARD OF TRUSTEES AND SHAREHOLDERS ACM INSTITUTIONAL RESERVES, INC.
We have audited the accompanying statements of net assets of ACM Institutional
Reserves, Inc. - Prime, Government, Tax-Free and Trust Portfolios as of April
30, 1995 and the related statements of operations, changes in net assets, and
financial highlights for the periods indicated in the accompanying financial
statements. These financial statements and financial highlights are the
responsibility of the Portfolios' management. Our responsibility is to express
an opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of securities
owned as of April 30, 1995 by correspondence with the custodian. An audit also
includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of ACM
Institutional Reserves, Inc. - Prime, Government, Tax-Free and Trust Portfolios
as of April 30, 1995, and the results of their operations, changes in their net
assets, and financial highlights for the periods indicated, in conformity with
generally accepted accounting principles.
McGladrey & Pullen, LLP
New York, New York
June 1, 1995
17
ACM Institutional Reserves, Inc.
-------------------------------------------------------------------------------
ACM INSTITUTIONAL RESERVES, INC.
1345 Avenue of the Americas
New York, New York 10105
Toll-free 1 (800) 237-5822
YIELDS. For current recorded yield information on the Fund, call on a
touch-tone telephone toll-free 1 (800) 251-0539 and press the following
sequence of keys: 1 * 16 # for the Prime Portfolio, 1 * 27 # for the Government
Portfolio, 1 * 38 # for the Tax-Free Portfolio and 1 * 0 # for the Trust
Portfolio.
For non-touch-tone telephones, call toll-free 1 (800) 221-9513
BOARD OF DIRECTORS
John D. Carifa, Chairman
Ruth Block
David H. Dievler
John H. Dobkin
William H. Foulk, Jr.
James M. Hester
Clifford L. Michel
Robert C. White
OFFICERS
Ronald M. Whitehill, President
Kathleen A. Corbet, Senior Vice President
Drew Biegel, Vice President
John F. Chiodi, Jr., Vice President
Raymond J. Papera, Vice President
Pamela F. Richardson, Vice President
Edmund P. Bergan, Jr., Secretary
Mark D. Gersten, Treasurer & Chief Financial Officer
Joseph J. Mantineo, Controller
CUSTODIAN
State Street Bank and Trust Company
P.O. Box 1912
Boston, MA 02105
LEGAL COUNSEL
Seward & Kissel
One Battery Park Plaza
New York, NY 10004
AUDITORS
McGladrey & Pullen, LLP 555 Fifth Avenue
New York, NY 10017
TRANSFER AGENT
Alliance Fund Services, Inc.
P.O. Box 1520
Secaucus, NJ 07096-1520
DISTRIBUTOR
Alliance Fund Distributors, Inc.
1345 Avenue of the Americas New York, NY 10105
Distribution of this report other than to shareholders must be preceded or
accompanied by the Fund's current prospectus, which contains further
information about the Fund.
