ACM INSTITUTIONAL RESERVES
SEMI-ANNUAL REPORT
OCTOBER 31, 1997
(UNAUDITED)
STATEMENT OF NET ASSETS
OCTOBER 31, 1997 (UNAUDITED) ACM INSTITUTIONAL RESERVES - PRIME PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY YIELD VALUE
- -------------------------------------------------------------------------------
COMMERCIAL PAPER-48.0%
AGA CAPITAL, INC.
$ 28,000 11/19/97 (a) 5.55% $ 27,922,300
ALLIANZ OF AMERICA FINANCE CORP.
5,000 12/08/97 (a) 5.53 4,971,633
21,500 11/19/97 (a) 5.54 21,440,445
BAA PLC
5,000 12/08/97 5.53 4,971,582
20,000 2/04/98 5.57 19,706,028
BANCA CRT FINANCIAL CORP.
17,000 11/10/97 5.52 16,976,540
12,000 11/06/97 5.53 11,990,783
14,000 11/06/97 5.63 13,989,111
BANCO NACIONAL DE COMERCIO
5,000 12/02/97 5.60 4,975,889
BBV FINANCE DELAWARE, INC.
10,000 3/20/98 5.57 9,784,936
8,000 5/01/98 5.58 7,775,560
BHF FINANCE DELAWARE, INC.
5,000 12/23/97 5.52 4,960,133
5,000 1/15/98 5.54 4,942,292
BIL NORTH AMERICA, INC.
23,000 11/18/97 5.52 22,940,047
CAISSE CENTRALE JARDINS DU QUEBEC
2,050 3/10/98 5.58 2,009,010
2,000 5/15/98 5.60 1,939,333
CAISSE D' AMORTISSEMENT
3,000 7/10/98 5.60 2,882,867
CARIPLO FINANCE, INC.
10,000 12/05/97 5.53 9,947,772
12,000 12/23/97 5.54 11,903,973
CEMEX
17,121 11/12/97 5.54 17,092,018
CHIAO TUNG BANK CO., LTD.
5,000 1/16/98 5.60 4,940,889
25,000 2/25/98 5.63 24,546,472
COMMONWEALTH BANK OF AUSTRALIA
10,000 12/23/97 5.53 9,920,122
CS FIRST BOSTON, INC.
10,000 12/10/97 5.54 9,939,983
CXC, INC.
5,000 12/03/97 (a) 5.56 4,975,289
EKSPORTFINANS
20,085 12/17/97 5.53 19,943,077
GENERAL ELECTRIC CAPITAL CORP.
10,000 2/09/98 5.56 9,845,556
GENERALE BANK, INC.
20,000 12/08/97 5.50 19,886,945
GOVERNMENT DEVELOPMENT BANK
OF PUERTO RICO
15,000 11/10/97 5.54 14,979,225
IMI FUNDING CORP. (USA)
2,072 11/18/97 5.53 2,066,589
5,000 12/16/97 5.53 4,965,438
10,143 12/29/97 5.54 10,052,468
2,435 12/17/97 5.56 2,417,701
5,000 3/31/98 5.57 4,883,958
10,000 3/16/98 5.61 9,789,625
4,310 11/03/97 5.65 4,308,647
INTERNATIONAL NEDERLAND BANK
21,200 11/03/97 5.52 21,193,499
31,000 12/22/97 5.55 30,756,263
MERRILL LYNCH & CO., INC.
5,000 12/15/97 5.77 4,964,739
NATIONAL CITY CORP.
10,000 12/22/97 5.53 9,921,658
ROSE FUNDING
20,000 11/03/97 (a) 5.57 19,993,811
SANTANDER FINANCE DELAWARE, INC.
5,000 12/03/97 5.53 4,975,422
SIGMA FINANCE, INC.
4,000 11/21/97 (a) 5.57 3,987,622
SOCIETE GENERALE N.A., INC.
10,000 12/17/97 5.50 9,929,722
SVENSKA HANDELSBANKEN
5,000 12/23/97 5.52 4,960,133
13,220 12/19/97 5.54 13,122,348
THAMES ASSET GLOBAL SECURITIZATION
20,000 11/12/97 (a) 5.58 19,965,900
9,113 11/19/97 (a) 5.58 9,087,575
TORONTO DOMINION HOLDINGS, INC.
5,000 4/06/98 5.56 4,879,533
UNI FUNDING, INC.
5,000 12/12/97 5.53 4,968,510
UNIBANCO
15,000 12/17/97 5.53 14,894,008
WESTDEUTSCHE LANDESBANK
20,000 12/08/97 5.50 19,886,945
Total Commercial Paper
(amortized cost $578,071,924) 578,071,924
CERTIFICATES OF DEPOSIT-22.5%
BANK OF TOKYO
13,000 5.66%, 12/31/97 5.66 13,000,000
23,000 5.67%, 11/04/97 5.69 22,999,987
13,000 5.67%, 12/10/97 5.67 13,000,000
6,000 5.69%, 12/19/97 5.65 5,999,829
1
STATEMENT OF NET ASSETS (CONTINUED)
ACM INSTITUTIONAL RESERVES - PRIME PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY YIELD VALUE
- -------------------------------------------------------------------------------
CREDIT AGRICOLE
$ 3,000 5.99%, 6/16/98 5.80% $ 3,000,818
DAI ICHI KANGYO BANK, LTD.
10,000 5.69%, 11/26/97 5.68 10,000,046
DEUTSCHE BANK
28,000 5.60%, 11/04/97 5.99 27,999,027
10,000 5.95%, 10/21/98 5.99 9,995,365
HESSISCHE LANDESBANK
5,000 5.94%, 6/19/98 5.81 4,999,933
5,000 6.13%, 4/07/98 6.18 4,997,539
NORINCHUKIN BANK
20,000 5.75%, 1/20/98 5.73 20,000,438
SANWA BANK
50,000 5.65%, 12/29/97 5.65 50,000,000
SOCIETE GENERALE N.A., INC.
10,000 5.69%, 3/19/98 5.68 9,998,274
STANDARD CHARTERED BANK
20,000 5.59%, 11/10/97 5.86 19,999,610
SUMITOMO BANK
25,000 5.59%, 11/18/97 5.59 25,000,000
30,000 5.70%, 12/29/97 5.70 30,000,000
Total Certificates of Deposit
(amortized cost $270,990,866) 270,990,866
CORPORATE OBLIGATIONS-11.0%
ALLSTATE LIFE INSURANCE FUNDING AGREEMENT
25,000 5.71%, 5/01/98 FRN (b) 5.71 25,000,000
GENERAL AMERICAN FUNDING CORP.
50,000 5.86%, 7/10/98 FRN 5.86 50,000,000
GENERAL ELECTRIC CAPITAL CORP.
5,000 5.65%, 1/05/98 FRN 5.65 5,000,000
MERRILL LYNCH & CO., INC.
5,000 5.65%, 12/24/97 FRN 5.79 4,999,859
5,000 5.66%, 3/16/98 5.67 4,999,824
7,000 5.71%, 1/29/98 FRN 5.83 6,999,665
7,000 5.76%, 1/22/98 FRN 5.78 6,999,619
4,000 5.88%, 8/26/98 5.88 4,000,000
TRAVELERS LIFE FUNDING AGREEMENT
25,000 5.66%, 10/21/98 FRN (b) 5.66 25,000,000
Total Corporate Obligations
(amortized cost $132,998,967) 132,998,967
TIME DEPOSITS-7.9%
BANK OF MONTREAL
30,000 5.69%, 11/03/97 5.69 30,000,000
NORINCHUKIN BANK
10,000 5.70%, 12/08/97 5.63 10,000,101
WESTDEUTSCHE LANDESBANK
55,000 5.63%, 11/03/97 5.63 55,000,000
Total Time Deposits
(amortized cost $95,000,101) 95,000,101
BANK OBLIGATIONS-4.8%
BAYERISCHE LANDESBANK
13,000 5.73%, 10/02/98 FRN 5.73 13,000,000
BAYERISCHE VEREINSBANK
20,000 5.50%, 6/30/98 FRN 5.59 19,992,313
DEUTSCHE BANK
10,000 5.61%, 7/01/98 FRN 5.79 9,993,566
MORGAN GUARANTY TRUST CO.
5,000 5.96%, 6/22/98 5.88 4,998,933
ROYAL BANK OF CANADA
10,000 5.67%, 9/30/98 FRN 5.67 10,000,000
Total Bank Obligations
(amortized cost $57,984,812) 57,984,812
PROMISSORY NOTES-4.2%
GOLDMAN SACHS GROUP LP
6,000 5.70%, 2/09/98 FRN 5.70 6,000,000
24,000 5.72%, 11/26/97 FRN 5.72 24,000,000
20,000 5.75%, 4/13/98 FRN 5.75 20,000,000
Total Promissory Notes
(amortized cost $50,000,000) 50,000,000
U.S. GOVERNMENT & AGENCY OBLIGATIONS-1.0%
FEDERAL FARM CREDIT BANK
7,000 5.28%, 8/03/98 FRN 5.33 6,997,525
STUDENT LOAN MARKETING ASSOCIATION
5,000 5.45%, 1/21/98 FRN 5.48 4,999,681
Total U.S. Government & Agency Obligations
(amortized cost $11,997,206) 11,997,206
TOTAL INVESTMENTS-99.4%
(amortized cost $1,197,043,876) 1,197,043,876
Other assets less liabilities-0.6% 7,593,808
NET ASSETS-100%
(offering and redemption price of $1.00
per share; 1,204,821,916 shares outstanding) $ 1,204,637,684
See Glossary of Terms on page 12.
See notes to financial statements.
2
STATEMENT OF NET ASSETS
OCTOBER 31, 1997 (UNAUDITED)
ACM INSTITUTIONAL RESERVES - GOVERNMENT PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY YIELD VALUE
- -------------------------------------------------------------------------------
U.S. GOVERNMENT & AGENCY
OBLIGATIONS-39.3%
FEDERAL NATIONAL MORTGAGE
ASSOCIATION-17.0%
$ 3,980 5.38%, 12/09/97 5.57% $ 3,978,556
2,000 5.42%, 11/24/97 5.47 1,993,074
1,608 5.42%, 12/15/97 5.49 1,597,387
2,500 5.43%, 12/08/97 5.49 2,486,048
2,500 5.43%, 12/23/97 5.50 2,480,410
2,500 5.43%, 12/29/97 5.50 2,478,149
2,500 5.43%, 12/30/97 5.51 2,477,773
1,666 5.44%, 12/11/97 5.50 1,655,930
5,000 5.45%, 11/14/97 5.49 4,990,160
5,644 5.45%, 11/24/97 5.52 5,624,348
2,500 5.45%, 12/15/97 5.51 2,483,347
5,000 5.48%, 11/24/97 5.50 4,982,495
6,000 5.56%, 10/20/98 FRN 5.64 5,997,476
2,000 5.59%, 12/18/97 6.00 1,999,594
2,000 6.02%, 4/15/98 6.15 1,998,963
2,000 6.41%, 7/17/98 FRN 5.75 2,008,925
49,232,635
FEDERAL HOME LOAN MORTGAGE CORP.-11.1%
5,000 5.47%, 12/03/97 5.51 4,975,711
5,000 5.47%, 12/05/97 5.51 4,974,169
5,000 5.48%, 11/28/97 5.51 4,979,450
5,000 5.50%, 11/07/97 5.51 4,995,417
5,163 5.50%, 11/13/97 5.51 5,153,535
4,000 5.72%, 3/17/98 5.87 3,997,854
3,000 5.84%, 4/08/98 6.25 2,997,624
32,073,760
FEDERAL HOME LOAN BANK-5.5%
5,000 5.42%, 11/19/97 5.46 4,986,450
5,000 5.53%, 12/04/97 FRN 5.38 4,999,628
3,000 5.87%, 1/30/98 5.87 3,000,000
3,000 6.11%, 4/17/98 FRN 6.16 2,999,607
15,985,685
STUDENT LOAN MARKETING ASSOCIATION-2.9%
4,500 5.36%, 7/12/99 FRN 6.17 4,471,915
4,000 5.44%, 1/21/98 FRN 5.77 3,999,745
8,471,660
FEDERAL FARM CREDIT BANK-2.8%
5,100 5.60%, 11/03/97 5.57 5,099,979
2,990 5.62%, 12/01/97 5.70 2,989,571
8,089,550
Total U.S. Government & Agency Obligations
(amortized cost $113,853,290) 113,853,290
REPURCHASE AGREEMENTS-60.1%
CHASE SECURITIES, INC.
7,300 5.53%, dated 9/16/97, due 11/17/97 in
the amount of $7,369,524 (cost $7,300,000;
collateralized by $8,190,000 FN 80455,
8.50%, 12/01/26, value $7,544,053)
(amortized cost $7,300,000) 5.53 7,300,000
CHASE SECURITIES, INC.
2,400 5.53%, dated 10/16/97, due 12/19/97 in
the amount of $2,423,595 (cost $2,400,000;
collateralized by $3,210,000 FN 313002,
9.00%, 6/01/26, value $2,521,465)
(amortized cost $2,400,000) 5.53 2,400,000
CHASE SECURITIES, INC.
5,200 5.56%, dated 8/14/97, due 11/13/97 in
the amount of $5,273,083 (cost $5,200,000;
collateralized by $6,320,000 FN 308212,
6.50%, 9/01/24, value $5,516,773)
(amortized cost $5,200,000) 5.56 5,200,000
DRESDNER BANK AG
14,600 5.71%, dated 10/31/97, due 11/03/97 in
the amount of $14,606,947 (cost $14,600,000;
collateralized by $18,195,167 FN 351096,
6.92%, 5/01/35, value $14,873,441)
(amortized cost $14,600,000) (c) 5.71 14,600,000
GOLDMAN SACHS & CO.
7,500 5.50%, dated 10/16/97, due 11/21/97 in
the amount of $7,541,250 ($7,500,000;
collateralized by $7,705,000 FM 00748,
7.00%, 8/01/27, value $7,738,319)
(amortized cost $7,500,000) 5.50 7,500,000
GOLDMAN SACHS & CO.
7,000 5.52%, dated 10/16/97, due 12/17/97 in
the amount of $7,066,547 (cost $7,000,000;
collateralized by $7,191,000 FM 00748,
7.00%, 8/01/27, value $7,222,097)
(amortized cost $7,000,000) 5.52 7,000,000
3
STATEMENT OF NET ASSETS
(CONTINUED) ACM INSTITUTIONAL RESERVES - GOVERNMENT PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY YIELD VALUE
- -------------------------------------------------------------------------------
LEHMAN BROTHERS, INC.
$ 7,500 5.52%, dated 10/21/97, due
11/20/97 in the amount of $7,534,500
(cost $7,500,000; collateralized by
$30,687,789 FN 50579, 8.00%, 5/01/07,
value $7,862,266)
(amortized cost $7,500,000) 5.52% $ 7,500,000
LEHMAN BROTHERS, INC.
7,000 5.54%, dated 10/21/97, due 12/24/97
in the amount of $7,068,942 (cost
$7,000,000; collateralized by
$15,172,080 FH G10118, 7.50%,
9/01/08, value $7,424,078)
(amortized cost $7,000,000) 5.54 7,000,000
MERRILL LYNCH &CO., INC.
13,600 5.50%, dated 10/06/97, due 11/03/97
in the amount of $13,658,178
(cost $13,600,000; collateralized by
$14,456,000 FH 390381, 6.141%,
2/01/37, value $14,065,438)
(amortized cost $13,600,000) 5.50 13,600,000
MORGAN STANLEY GROUP, INC.
7,000 5.53%, dated 10/21/97, due 12/22/97
in the amount of $7,066,667 (cost
$7,000,000; collateralized by $7,784,000
FN 378237, 7.50%, 7/01/27,
value $7,229,397)
(amortized cost $7,000,000) 5.53 7,000,000
MORGAN STANLEY GROUP, INC.
7,500 5.55%, dated 10/27/97, due 12/29/97
in the amount of $7,572,844 (cost
$7,500,000; collateralized by
$16,773,000 FN 303212, 8.096%,
2/01/25, value $7,557,227)
(amortized cost $7,500,000) 5.55 7,500,000
NIKKO SECURITIES CO.
9,000 5.52%, dated 10/03/97, due 11/05/97
in the amount of $9,045,540 (cost
$9,000,000; collateralized by $9,170,000
GN 780613, 7.00%, 8/15/27, value
$9,198,178 and $221,000 FN 241824,
5.50%, 12/01/00, value $111,317)
(amortized cost $9,000,000) 5.52 9,000,000
NIKKO SECURITIES CO.
5,500 5.52%, dated 10/28/97, due 12/01/97
in the amount of $5,528,673 (cost
$5,500,000; collateralized by
$5,761,000 GN 423836, 8.00%,
8/15/26, value $5,688,126)
(amortized cost $5,500,000) 5.52 5,500,000
PAINE WEBBER, INC.
7,800 5.51%, dated 10/16/97, due 11/25/97
in the amount of $7,847,753 (cost
$7,800,000; collateralized by
$16,479,000 FN 190073, 7.50%, 10/01/08,
value $8,111,717)
(amortized cost $7,800,000) 5.51 7,800,000
PAINE WEBBER, INC.
6,700 5.53%, dated 10/17/97, due 12/12/97
in the amount of $6,757,635 (cost
$6,700,000; collateralized by $9,924,000
FN 190830, 6.50%, 4/01/09, value $6,980,621)
(amortized cost $6,700,000) 5.53 6,700,000
PRUDENTIAL SECURITIES, INC.
4,900 5.50%, dated 10/09/97, due 11/10/97
in the amount of $4,923,956 (cost
$4,900,000; collateralized by $7,082,000
FG 00269, 7.00%, 11/01/23, value $5,085,398)
(amortized cost $4,900,000) 5.50 4,900,000
PRUDENTIAL SECURITIES, INC.
4,000 5.50%, dated 10/07/97, due 11/07/97
in the amount of $4,018,944 (cost
$4,000,000; collateralized by $5,000,000
FG 00357, 7.50%, 8/01/24, value $4,112,273)
(amortized cost $4,000,000) 5.50 4,000,000
PRUDENTIAL SECURITIES, INC.
6,000 5.52%, dated 10/03/97, due 11/06/97
in the amount of $6,031,280 (cost
$6,000,000; collateralized by $6,142,000
FG 00557, 7.00%, 10/01/27, value $6,204,700)
(amortized cost $6,000,000) 5.52 6,000,000
4
ACM INSTITUTIONAL RESERVES - GOVERNMENT PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY YIELD VALUE
- -------------------------------------------------------------------------------
SBC WARBURG, LTD.
$ 3,700 5.52%, dated 10/01/97, due 11/04/97 in
the amount of $3,719,289 (cost
$3,700,000; collateralized by
$4,968,000 FN 332812, 6.50%, 6/01/09,
value $3,774,525 and $130,000
US T-Bond, 11.25%, 2/15/15,
value $198,461)
(amortized cost $3,700,000) 5.52% $3,700,000
SBC WARBURG, LTD.
4,100 5.52%, dated 10/09/97, due 11/20/97 in
the amount of $4,126,404 (cost
$4,100,000; collateralized by
$5,128,000 FN 302830, 6.50%, 6/01/24,
value $4,254,428)
(amortized cost $4,100,000) 5.52 4,100,000
SBC WARBURG, LTD.
6,700 5.55%, dated 10/24/97, due 12/02/97
in the amount of $6,740,284 (cost
$6,700,000; collateralized by
$12,746,000 FN 124877, 7.00%, 5/01/08,
value $6,936,971)
(amortized cost $6,700,000) 5.55 6,700,000
SMITH BARNEY, INC.
4,500 5.50%, dated 10/09/97, due 11/12/97
in the amount of $4,523,375
(cost $4,500,000; collateralized
by $5,675,000 FN 250029, 6.50%,
5/01/24, value $4,654,268)
(amortized cost $4,500,000) 5.50 4,500,000
SMITH BARNEY, INC.
5,000 5.50%, dated 10/07/97, due 11/12/97
in the amount of $5,027,500 (cost
$5,000,000; collateralized by
$45,870,000 FH 360106, 10.00%, 5/01/20,
value $5,202,265)
(amortized cost $5,000,000) 5.50 5,000,000
SMITH BARNEY, INC.
5,400 5.53%, dated 10/01/97, due 11/06/97
in the amount of $5,429,862 (cost
$5,400,000; collateralized by
$6,680,000 FN 049887, 6.50%, 11/01/23,
value $5,431,259 and $114,801 FN 361063,
8.00%, 11/01/16, value $107,411)
(amortized cost $5,400,000) 5.53 5,400,000
UBS SECURITIES, INC.
6,000 5.50%, dated 10/10/97, due 11/18/97
in the amount of $6,035,750 (cost
$6,000,000; collateralized by
$8,292,000 FN 303629, 6.00%, 8/01/01,
value $6,238,836)
(amortized cost $6,000,000) 5.50 6,000,000
UBS SECURITIES, INC.
8,000 5.55%, dated 10/27/97, due 12/26/97
in the amount of $8,074,000 (cost
$8,000,000; collateralized by
$8,346,000 FH 00762, 7.00%, 9/01/27,
value $8,402,795)
(amortized cost $8,000,000) 5.55 8,000,000
Total Repurchase Agreements
(amortized cost $173,900,000) 173,900,000
TOTAL INVESTMENTS-99.4%
(amortized cost $287,753,290) 287,753,290
Other assets less liabilities-0.6% 1,635,169
NET ASSETS-100%
(offering and redemption price of
$1.00 per share; 289,518,923 shares
outstanding) $ 289,388,459
See Glossary of Terms on page 12.
See notes to financial statements.
5
STATEMENT OF NET ASSETS
OCTOBER 31, 1997 (UNAUDITED)
ACM INSTITUTIONAL RESERVES - TAX-FREE PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY# YIELD VALUE
- -------------------------------------------------------------------------------
MUNICIPAL BONDS-58.6%
ALABAMA-2.2%
ARAB IDB
(SCI Manufacturing Inc.)
Series '89 VRDN (d)
$ 150 8/01/00 4.10% $ 150,000
HUNTSVILLE IDA
(Seiki USA Project)
Series '88 AMT VRDN (d)
5,000 9/01/98 4.03 5,000,000
5,150,000
ALASKA-1.1%
ALASKA IDR
(American President Lines)
Series '91 VRDN (d)
1,945 11/01/09 3.95 1,945,000
ANCHORAGE GO
Series A FGIC
535 9/01/98 3.98 535,075
2,480,075
ARIZONA-1.2%
APACHE COUNTY IDA PCR
(Tuscon Electric Power Co. Project)
Series '81B VRDN (d)
2,500 10/01/21 3.75 2,500,000
CHANDLER IDA
(Parsons Municipal Services Inc.)
Series '83 VRDN (d)
400 12/15/09 3.70 400,000
2,900,000
CALIFORNIA-2.9%
CALIFORNIA HIGHER EDUCATION
STUDENT LOAN REVENUE
Series D-2 PPB (d)
5,000 4/01/00 4.00 5,000,000
CALIFORNIA PCR
(Pacific Gas & Electric Co. Project)
Series '97C AMT VRDN (d)
1,800 11/01/26 4.00 1,800,000
6,800,000
COLORADO-0.4%
ENGLEWOOD IDR
(Swedish Mob I Ltd. Project)
Series '85 VRDN (d)
935 12/01/10 3.85 935,000
DISTRICT OF COLUMBIA-7.6%
DISTRICT OF COLUMBIA GO
Series '92A-1 VRDN (d)
4,300 10/01/07 4.25 4,300,000
DISTRICT OF COLUMBIA GO
Series '92A-2 VRDN (d)
1,100 10/01/07 4.25 1,100,000
DISTRICT OF COLUMBIA GO
Series '92A-4 VRDN (d)
2,700 10/01/07 4.25 2,700,000
DISTRICT OF COLUMBIA HFA MFHR
(McLean Apts.)
Series '85A VRDN (d)
2,000 12/01/05 3.85 2,000,000
DISTRICT OF COLUMBIA HFA MFHR
(Tyler Housing)
AMT VRDN (d)
2,400 8/01/25 3.90 2,400,000
DISTRICT OF COLUMBIA HFA SFMR
Series '97C AMT PPB (d)
3,000 9/01/98 4.05 3,000,000
DISTRICT OF COLUMBIA HFA SFMR
Series C AMT PPB (d)
2,000 12/01/25 3.90 2,000,000
17,500,000
FLORIDA-1.9%
JACKSONVILLE HOSPITAL REVENUE
(University Medical Center Project)
Series '88 VRDN (d)
1,500 2/01/18 3.90 1,500,000
LEE COUNTY IDA
(Cypress Cove Healthpark)
Series '97C VRDN (d)
3,000 10/01/02 3.85 3,000,000
4,500,000
GEORGIA-3.5%
CARTERSVILLE ECONOMIC DEVELOPMENT
AUTHORITY
(Sekisui Jushi America)
Series '92 VRDN (d)
300 6/01/12 4.05 300,000
COLLEGE PARK IDR
(Wynefield 1 Project)
AMT VRDN (d)
1,700 12/01/16 4.20 1,700,000
JACKSON COUNTY IDA
(Mitsubishi Consumer Electronic)
VRDN (d)
3,000 12/01/15 3.90 3,000,000
6
ACM INSTITUTIONAL RESERVES - TAX-FREE PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY# YIELD VALUE
- -------------------------------------------------------------------------------
SAVANNAH ECONOMIC DEVELOPMENT AUTHORITY
(Georgia Kaolin)
Series '97 AMT VRDN (d)
$ 3,000 7/01/27 3.85% $ 3,000,000
8,000,000
HAWAII-1.9%
HAWAII HOUSING FINANCE &
DEVELOPMENT AUTHORITY
(Kamakee Vista)
Series '90A VRDN (d)
2,500 7/01/25 3.80 2,500,000
HAWAII HOUSING FINANCE &
DEVELOPMENT AUTHORITY
(Rental Housing System)
Series '90B VRDN (d)
1,900 7/01/25 3.80 1,900,000
4,400,000
IDAHO-0.6%
CUSTER COUNTY SOLID WASTE REVENUE
(Hecla Mining Co. Project)
Series '97 AMT VRDN (d)
1,300 7/01/07 3.85 1,300,000
ILLINOIS-5.2%
ELMHURST HOSPITAL REVENUE
(Joint Comm. Health Org.)
Series '88 VRDN (d)
5,800 7/01/18 3.70 5,800,000
ILLINOIS DEVELOPMENT FINANCE AUTHORITY
(D.E. Akin Seed Project)
AMT VRDN (d)
1,000 11/01/04 3.90 1,000,000
ILLINOIS DEVELOPMENT FINANCE AUTHORITY
(U.G.N. Inc. Project)
Series '86 AMT VRDN (d)
3,500 9/15/11 4.05 3,500,000
VERNON HILLS IDR
(Kinder Care Center)
VRDN (d)
550 2/01/01 3.80 550,000
WEST CHICAGO IDR
(Acme Printing Co.)
Series '89 AMT VRDN (d)
1,100 5/01/99 4.33 1,100,000
11,950,000
INDIANA-3.3%
GARY ENVIRONMENTAL IMPROVEMENT REVENUE
(U.S. Steel Corp.)
Series '84 VRDN (d)
4,100 7/15/02 3.70 4,100,000
INDIANA HFA MFHR
(Pedcor Investments)
Series '97M-A
AMT VRDN (d)
1,560 1/01/29 3.75 1,560,000
SEYMOUR ECONOMIC DEVELOPMENT REVENUE
(Kobelco Metal Powder Co. Project)
Series '87 AMT VRDN (d)
2,000 12/01/97 4.05 2,000,000
7,660,000
LOUISIANA-0.9%
PARISH OF IBERVILLE
(Dow Chemical Project)
AMT VRDN (d)
1,000 8/01/01 3.75 1,000,000
WEST BATON ROUGE IDR
(Dow Chemical #3)
Series '94B VRDN (d)
1,200 12/01/16 4.25 1,200,000
2,200,000
MAINE-1.2%
MAINE FINANCE AUTHORITY
(Barber Foods Inc.)
Series '90B
AMT VRDN (d)
1,865 12/01/06 3.95 1,865,000
ORRINGTON RESOURCE
RECOVERY REVENUE
(Penobscot Energy Project)
Series B AMT VRDN (d)
975 5/01/03 3.95 975,000
2,840,000
MICHIGAN-2.7%
DETROIT IDA
(Millender Center Project)
Series '88 VRDN (d)
4,000 12/01/10 3.95 4,000,000
MICHIGAN HOSPITAL FINANCE AUTHORITY
(Equipment Loan Program)
Series '96A VRDN (d)
2,200 12/01/23 3.75 2,200,000
6,200,000
7
STATEMENT OF NET ASSETS
(CONTINUED) ACM INSTITUTIONAL RESERVES - TAX-FREE PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY# YIELD VALUE
- -------------------------------------------------------------------------------
MINNESOTA-0.6%
COTTAGE GROVE
(Minnesota Mining & Manufacturing Co.
Project) VRDN (d)
$ 1,000 8/01/12 4.00% $ 1,000,000
EDEN PRAIRIE IDA
(Kinder Care Project)
Series C VRDN (d)
465 2/01/01 3.80 465,000
1,465,000
MISSISSIPI-0.2%
JONES COUNTY HOSPITAL REVENUE
(South Central Registered
Medical Center Project)
MBIA
420 8/01/98 3.98 428,636
MISSOURI-0.5%
BLUE SPRINGS IDA
(Kinder Care Project)
Series C VRDN (d)
540 2/01/01 3.80 540,000
BOONE COUNTY IDA
(Minnesota Mining & Manufacturing Co.
Project) VRDN (d)
500 12/01/25 3.65 500,000
MISSOURI ECONOMIC DEVELOPMENT AUTHORITY
(Plastic Enterprises)
Series '90A
AMT VRDN (d)
120 9/01/05 3.90 120,000
1,160,000
NEW HAMPSHIRE-0.8%
MERRIMACK COUNTY
GO BAN
1,200 8/07/98 4.00 1,202,226
NEW HAMPSHIRE MUNICIPAL BOND BANK
Series D FSA
760 1/15/98 4.04 762,053
1,964,279
NEW JERSEY-1.0%
JERSEY CITY BAN
2,250 9/18/98 3.90 2,259,225
OHIO-1.1%
WARREN COUNTY IDR
(Pioneer Industrial Components Project)
Series '85 VRDN (d)
2,500 12/01/05 3.70 2,500,000
OREGON-1.2%
BEAVERTON WATER REVENUE
FGIC
295 6/01/98 4.00% $295,413
OREGON ECONOMIC DEVELOPMENT REVENUE
(Kyotaru Oregon Project)
Series '89 AMT VRDN (d)
2,400 12/01/99 4.03 2,400,000
2,695,413
PENNSYLVANIA-1.4%
MONTGOMERY COUNTY IDA
(Kinder Care Project)
Series D VRDN (d)
400 10/01/00 3.80 400,000
PHILADELPHIA GO TRAN
Series '97A
2,500 6/30/98 4.00 2,507,934
VENAGO IDR
(Penzoil Co. Project)
Series '82A VRDN (d)
285 12/01/12 4.00 285,000
3,192,934
TENNESSEE-3.2%
DICKSON COUNTY IDA
(Tennessee Bun Co. Project)
Series '96 AMT VRDN (d)
2,000 7/01/06 3.80 2,000,000
HAMILTON COUNTY IDA
(Komatsu American Manufacturing Co.
Project)
Series '85 VRDN (d)
5,400 11/01/05 3.85 5,400,000
7,400,000
TEXAS-1.7%
GREATER EAST TEXAS HIGHER EDUCATION
STUDENT LOAN REVENUE
Series '95A AMT PPB (d)
1,000 5/01/11 4.10 1,000,000
GULF COAST IDA
Solid Waste (Amoco Project)
AMT PPB (d)
2,300 4/01/15 3.80 2,300,000
GULF COAST IDA
Solid Waste (Citgo Petroleum Corp)
Series '94 AMT VRDN (d)
600 4/01/26 4.30 $ 600,000
8
ACM INSTITUTIONAL RESERVES - TAX-FREE PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY# YIELD VALUE
- -------------------------------------------------------------------------------
TRINITY RIVER IDA
(Radiation Sterilizers)
Series A VRDN (d)
$ 150 11/01/05 3.75% $ 150,000
4,050,000
UTAH-0.9%
UTAH BOARD OF REGENTS
Student Loan Revenue
Series O AMBAC
2,000 5/01/98 3.96 2,007,193
VERMONT-0.1%
SWANTON VILLAGE
Electric System Revenue
MBIA
185 12/01/97 4.10 185,443
VIRGINIA-4.9%
CHESTERFIELD COUNTY IDR
(Phillip Morris Co.)
VRDN (d)
10,100 4/01/09 3.80 10,100,000
KING GEORGE COUNTY
(Birchwood Power Project) AMT VRDN (d)
1,300 11/01/25 4.25 1,300,000
11,400,000
WASHINGTON-2.7%
PORT OF VANCOUVER
(United Grain Corp) Series '84A VRDN (d)
6,300 12/01/09 3.75 6,300,000
WEST VIRGINIA-0.8%
KEYSER IDR
(Keyser Associates Project) VRDN (d)
1,900 7/01/14 3.65 1,900,000
WISCONSIN-0.9%
WAUSAU PCR
(Minnesota Mining & Manufacturing Co.
Project) VRDN (d)
1,600 8/01/17 4.00 1,600,000
500 12/01/01 4.00 500,000
2,100,000
Total Municipal Bonds
(amortized cost $135,823,198) 135,823,198
COMMERCIAL PAPER-40.0%
ALABAMA-3.3%
MOBILE MEDICAL CLINIC
(Mobile Infirmary Assoc.) Series '92A
5,000 12/11/97 3.85 5,000,000
MONTGOMERY PCR
(General Electric Co. Project)
Series '90
2,770 12/08/97 3.80 2,770,000
7,770,000
ARIZONA-1.8%
SALT RIVER PROJECT
Agricultural Improvement & Power District
4,131 12/09/97 3.80 4,131,000
COLORADO-1.7%
DENVER SYSTEM SUBORDINATE REVENUE
AIRPORT
Series A AMT
4,000 12/17/97 3.85 4,000,000
FLORIDA-11.0%
CITY OF JACKSONVILLE
6,300 12/05/97 3.80 6,300,000
4,400 12/12/97 3.85 4,400,000
FLORIDA LOCAL GOVERNMENT COMMISSION
(Assoc. of Counties)
1,800 2/12/98 3.85 1,800,000
JACKSONVILLE ELECTRIC AUTHORITY
Electric System Series D-3
2,000 12/09/97 3.85 2,000,000
JACKSONVILLE PCR
(Florida Power & Light Co.) Series '92
1,300 12/11/97 3.85 1,300,000
SARASOTA PUBLIC HOSPITAL DISTRICT
HOSPITAL REVENUE
(Sarasota Memorial Hospital) Series B
1,000 12/09/97 3.85 1,000,000
SARASOTA PUBLIC HOSPITAL DISTRICT
HOSPITAL REVENUE
(Sarasota Memorial Hospital) Series C
3,400 12/10/97 3.85 3,400,000
9
STATEMENT OF NET ASSETS
(CONTINUED) ACM INSTITUTIONAL RESERVES - TAX-FREE PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY# YIELD VALUE
- -------------------------------------------------------------------------------
ST. LUCIE PCR
(Florida Power & Light Co.) Series '94A
$ 5,200 12/10/97 3.80% $ 5,200,000
25,400,000
INDIANA-1.7%
JASPER COUNTY
(N. Indiana Public Service Project)
Series '88C
2,000 12/11/97 3.85 2,000,000
MOUNT VERNON PCR
(General Electric Co. Project)
Series '89A
1,900 12/16/97 3.85 1,900,000
3,900,000
KENTUCKY-0.4%
TRIMBLE COUNTY PCR
(Louisville Gas & Electric Co. Project)
Series '92A
1,000 12/16/97 3.85 1,000,000
MISSOURI-2.2%
INDEPENDENCE MUNICIPAL WATER
UTILITY REVENUE
Series '86
5,000 11/10/97 3.85 5,000,000
NEBRASKA-3.3%
NEBRASKA PUBLIC POWER DISTRICT REVENUE
Series B
7,615 12/19/97 3.80 7,615,000
OHIO-1.7%
MONTGOMERY COUNTY HOSPITAL REVENUE
(Miami Valley Hospital) Series C
4,000 12/08/97 3.80 4,000,000
TEXAS-7.9%
CITY OF AUSTIN
Series A
8,050 12/08/97 3.80 8,050,000
SAN ANTONIO WATER SYSTEMS
Series '95
3,000 12/09/97 3.80 3,000,000
2,000 12/17/97 3.85 2,000,000
UNIVERSITY OF TEXAS BOARD OF REGENTS
Series A
2,000 12/08/97 3.80 2,000,000
3,300 12/10/97 3.80 3,300,000
18,350,000
UTAH-1.9%
INTERMOUNTAIN POWER SUPPLY REVENUE
Series '85F
4,400 12/09/97 3.80 4,400,000
VIRGINIA-0.9%
HAMPTON HOSPITAL REVENUE
(Sentara Health System) Series '97B
2,000 12/09/97 3.80 2,000,000
PUERTO RICO-2.2%
PUERTO RICO GOVERNMENT DEVELOPMENT BANK
Series '96
5,000 2/12/98 3.75 5,000,000
Total Commercial Paper
(amortized cost $92,566,000) 92,566,000
TOTAL INVESTMENTS-98.6%
(amortized cost $228,389,198) 228,389,198
Other assets less liabilities-1.4% 3,284,563
NET ASSETS-100%
(offering and redemption price of $1.00
per share; 231,757,256 shares
outstanding) $ 231,673,761
# All securities either mature or their interest rate changes in one year or
less.
See Glossary of Terms on page 12.
See notes to financial statements.
10
STATEMENT OF NET ASSETS
OCTOBER 31, 1997 (UNAUDITED) ACM INSTITUTIONAL RESERVES - TRUST PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY YIELD VALUE
- -------------------------------------------------------------------------------
COMMERCIAL PAPER-52.7%
AGA CAPITAL, INC.
$ 10,000 11/19/97 (a) 5.55% $ 9,972,250
ALLIANZ OF AMERICA FINANCE CORP.
4,535 12/04/97 (a) 5.52 4,512,053
4,616 11/19/97 (a) 5.54 4,603,214
BAA PLC
4,000 2/04/98 5.57 3,941,205
BANCA CRT FINANCIAL CORP.
3,000 11/10/97 5.52 2,995,860
5,000 11/06/97 5.53 4,996,160
BANCO NACIONAL DE COMERCIO
1,000 12/02/97 5.60 995,178
BBV FINANCE DELAWARE, INC.
2,000 3/20/98 5.57 1,956,987
2,000 5/01/98 5.58 1,943,890
BIL NORTH AMERICA, INC.
2,000 11/18/97 5.52 1,994,787
3,000 12/08/97 5.53 2,982,949
CAISSE CENTRALE JARDINS DU QUEBEC
3,000 11/24/97 5.56 2,989,343
1,000 4/23/98 5.58 973,185
CAISSE D' AMORTISSEMENT
1,000 7/10/98 5.60 960,955
CARIPLO FINANCE, INC.
6,000 12/23/97 5.54 5,951,987
CEMEX
3,000 11/12/97 5.54 2,994,922
CHIAO TUNG BANK CO., LTD.
4,000 1/16/98 5.60 3,952,711
3,000 2/25/98 5.63 2,945,577
COMMONWEALTH BANK OF AUSTRALIA
2,000 12/23/97 5.53 1,984,024
CS FIRST BOSTON, INC.
5,000 12/10/97 5.54 4,969,992
CXC, INC.
2,000 12/03/97 (a) 5.56 1,990,116
EKSPORTFINANS
2,360 12/17/97 5.53 2,343,324
GENERALE BANK, INC.
5,000 12/08/97 5.50 4,971,736
GOVERNMENT DEVELOPMENT BANK
OF PUERTO RICO
2,700 11/10/97 5.54 2,696,260
IMI FUNDING CORP. (USA)
3,000 11/18/97 5.53 2,992,166
1,000 3/31/98 5.57 976,792
3,000 2/05/98 5.58 2,955,360
1,000 3/16/98 5.61 978,962
2,000 1/02/98 5.63 1,980,608
JOSEPH E. SEAGRAM & SONS, INC.
5,000 11/12/97 5.60 4,991,444
MERRILL LYNCH & CO., INC.
1,000 12/15/97 5.77 992,948
1,000 1/14/98 5.85 987,975
NATIONAL CITY CORP.
5,000 12/22/97 5.53 4,960,829
OLD LINE FUNDING CORP.
5,144 11/18/97 (a) 5.57 5,130,470
SANTANDER FINANCE DELAWARE, INC.
5,000 12/03/97 5.53 4,975,422
SIGMA FINANCE, INC.
1,000 11/21/97 (a) 5.57 996,906
SOCIETE GENERALE N.A., INC.
4,000 12/17/97 5.50 3,971,889
5,000 12/02/97 5.52 4,976,233
SVENSKA HANDELSBANKEN
4,000 12/19/97 5.54 3,970,453
TORONTO DOMINION HOLDINGS, INC.
1,000 4/06/98 5.56 975,907
UNI FUNDING, INC.
1,000 12/12/97 5.53 993,702
UNIBANCO
2,000 12/17/97 5.53 1,985,868
Total Commercial Paper
(amortized cost $130,412,599) 130,412,599
CERTIFICATES OF DEPOSIT-23.4%
BANK OF TOKYO
2,000 5.66%, 12/31/97 5.66 2,000,000
3,000 5.67%, 11/04/97 5.69 2,999,998
4,000 5.67%, 12/10/97 5.67 4,000,000
3,000 5.69%, 12/19/97 5.65 2,999,914
DAI ICHI KANGYO BANK, LTD.
5,000 5.69%, 11/26/97 5.68 5,000,023
DEUTSCHE BANK
7,000 5.60%, 11/04/97 5.99 6,999,757
2,000 5.95%, 10/21/98 5.99 1,999,073
HESSISCHE LANDESBANK
1,000 5.94%, 6/19/98 5.81 999,987
1,000 6.13%, 4/07/98 6.18 999,508
NORINCHUKIN BANK
4,000 5.69%, 11/05/97 5.38 4,000,005
5,000 5.75%, 1/20/98 5.73 5,000,109
SANWA BANK
10,000 5.65%, 12/29/97 5.65 10,000,000
SUMITOMO BANK
8,000 5.59%, 11/18/97 5.59 8,000,000
3,000 5.70%, 12/29/97 5.70 3,000,000
Total Certificates of Deposit
(amortized cost $57,998,374) $ 57,998,374
11
STATEMENT OF NET ASSETS
(CONTINUED) ACM INSTITUTIONAL RESERVES - TRUST PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY YIELD VALUE
- -------------------------------------------------------------------------------
CORPORATE OBLIGATIONS-10.9%
ALLSTATE LIFE INSURANCE FUNDING AGREEMENT
$ 5,000 5.69%, 8/31/98 FRN (b) 5.69% $ 5,000,000
GENERAL AMERICAN FUNDING CORP.
10,000 5.86%, 7/10/98 FRN 5.86 10,000,000
GENERAL ELECTRIC CAPITAL CORP.
2,000 5.65%, 1/05/98 FRN 5.65 2,000,000
MERRILL LYNCH & CO., INC.
2,000 5.66%, 3/16/98 5.67 1,999,930
3,000 5.88%, 8/26/98 5.88 3,000,000
TRAVELERS LIFE FUNDING AGREEMENT
5,000 5.66%, 10/21/98 FRN (b) 5.66 5,000,000
Total Corporate Obligations
(amortized cost $26,999,930) 26,999,930
BANK OBLIGATIONS-4.9%
BAYERISCHE LANDESBANK
2,000 5.73%, 10/02/98 FRN 5.73 2,000,000
BAYERISCHE VEREINSBANK
5,000 5.50%, 6/30/98 FRN 5.50 4,998,078
DEUTSCHE BANK
2,000 5.61%, 7/01/98 FRN 5.61 1,998,713
MORGAN GUARANTY TRUST CO.
1,000 5.96%, 6/22/98 5.88 999,787
ROYAL BANK OF CANADA
2,000 5.67%, 9/30/98 FRN 5.67 2,000,000
Total Bank Obligations
(amortized cost $11,996,578) 11,996,578
PROMISSORY NOTES-4.0%
GOLDMAN SACHS GROUP LP
2,000 5.70%, 2/09/98 FRN 5.69 2,000,000
4,000 5.72%, 11/26/97 FRN 5.72 4,000,000
4,000 5.75%, 4/13/98 FRN 5.75 4,000,000
Total Promissory Notes
(amortized cost $10,000,000) 10,000,000
U.S. GOVERNMENT & AGENCY OBLIGATIONS-3.2%
FEDERAL HOME LOAN BANK
5,000 5.53%, 12/04/97 FRN 5.60 4,999,628
3,000 5.87%, 1/30/98 5.87 3,000,000
Total U.S. Government & Agency Obligations
(amortized cost $7,999,628) 7,999,628
TOTAL INVESTMENTS-99.1%
(amortized cost $245,407,109) 245,407,109
Other assets less liabilities-0.9% 2,166,844
NET ASSETS-100%
(offering and redemption price of $1.00
per share; 247,620,836 shares
outstanding) $ 247,573,953
(a) Securities issued in reliance on Section (4) 2 or Rule 144A of the
Securities Act of 1933. Rule 144A securities may be resold in transactions
exempt from registration, normally to qualified institutional buyers. At
October 31, 1997, these securities amounted to $112,344,575, representing 9.3%
of net assets on the Prime Portfolio, and $27,205,009, representing 11.0% of
net assets on the Trust Portfolio.
(b) Illiquid securities, valued at fair market value (see Note A).
(c) Repurchase agreement which is terminable within 7 days.
(d) 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.
Glossary of Terms:
AMBAC American Municipal Bond Assurance Corporation
AMT Alternative Minimum Tax
BAN Bond Anticipation Note
FGIC Financial Guarantee Insurance Company
FRN Floating Rate Note
FSA Financial Security Assurance, Inc.
GO General Obligation
HFA Housing Finance Agency/Authority
IDA Industrial Development Authority
IDB Industrial Development Board
IDR Industrial Development Revenue
MBIA Municipal Bond Investors Assurance
MFHR Multi-Family Housing Revenue
PCR Pollution Control Revenue
SFMR Single Family Mortgage Revenue
TRAN Tax & Revenue Anticipation Note
See notes to financial statements.
12
STATEMENT OF OPERATIONS
SIX MONTHS ENDED OCTOBER 31, 1997 (UNAUDITED) ACM INSTITUTIONAL RESERVES
_______________________________________________________________________________
PRIME GOVERNMENT TAX-FREE TRUST
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------ ------------ ------------
INVESTMENT INCOME
Interest $ 33,020,963 $ 8,062,012 $ 4,267,441 $ 6,380,944
EXPENSES
Advisory fee
(Note B) 1,156,645 287,517 220,152 503,069
Registration 170,821 77,127 42,738 41,066
Custodian 99,762 46,412 46,624 41,837
Transfer agency 12,388 12,237 11,560 11,623
Audit and legal 11,529 7,146 8,961 7,051
Printing 4,907 3,745 4,643 3,658
Directors' fees 2,607 2,699 2,916 2,761
Miscellaneous 3,894 3,680 3,745 2,819
Total expenses 1,462,553 440,563 341,339 613,884
Less: expense
reimbursement (305,907) (153,046) (121,188) (74,680)
Net expenses 1,156,646 287,517 220,151 539,204
Net investment
income 31,864,317 7,774,495 4,047,290 5,841,740
REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Net realized gain
(loss) on
investment
transactions (428) 885 168 10,084
Net change in
unrealized
appreciation
of investments -0- -0- (351) -0-
Net gain (loss)
on investments (428) 885 (183) 10,084
NET INCREASE IN
NET ASSETS FROM
OPERATIONS $ 31,863,889 $ 7,775,380 $ 4,047,107 $ 5,851,824
See notes to financial statements.
13
STATEMENT OF CHANGES IN NET ASSETS ACM INSTITUTIONAL RESERVES
_______________________________________________________________________________
<TABLE>
<CAPTION>
PRIME PORTFOLIO
---------------------------------
SIX MONTHS ENDED
OCT. 31, 1997 YEAR ENDED
(UNAUDITED) APR. 30, 1997
--------------- ---------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income $ 31,864,317 $ 40,100,886
Net realized gain (loss) on investment transactions (428) 1,928
Net change in unrealized appreciation of investments -0- -0-
Net increase in net assets from operations 31,863,889 40,102,814
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income (31,864,317) (40,100,886)
CAPITAL STOCK TRANSACTIONS
Net increase (decrease) 337,298,757 374,018,204
Total increase (decrease) 337,298,329 374,020,132
NET ASSETS
Beginning of period 867,339,355 493,319,223
End of period $ 1,204,637,684 $ 867,339,355
</TABLE>
See notes to financial statements.
14
ACM INSTITUTIONAL RESERVES
_______________________________________________________________________________
<TABLE>
<CAPTION>
GOVERNMENT PORTFOLIO TAX-FREE PORTFOLIO TRUST PORTFOLIO
- --------------------------------- --------------------------------- ---------------------------------
SIX MONTHS ENDED SIX MONTHS ENDED SIX MONTHS ENDED
OCT. 31, 1997 YEAR ENDED OCT. 31, 1997 YEAR ENDED OCT. 31, 1997 YEAR ENDED
(UNAUDITED) APR. 30, 1997 (UNAUDITED) APR. 30, 1997 (UNAUDITED) APR. 30, 1997
- --------------- --------------- --------------- --------------- --------------- ---------------
<C> <C> <C> <C> <C> <C>
$ 7,774,495 $ 10,174,707 $ 4,047,290 $ 7,081,373 $ 5,841,740 $ 9,713,883
885 (2,140) 168 (90) 10,084 (4,087)
-0- -0- (351) 229 -0- -0-
7,775,380 10,172,567 4,047,107 7,081,512 5,851,824 9,709,796
(7,774,495) (10,174,707) (4,047,290) (7,081,373) (5,841,740) (9,713,883)
(37,132,134) 175,705,670 48,608,999 (546,863) 71,882,706 5,619,828
(37,131,249) 175,703,530 48,608,816 (546,724) 71,892,790 5,615,741
326,519,708 150,816,178 183,064,945 183,611,669 175,681,163 170,065,422
$ 289,388,459 $ 326,519,708 $ 231,673,761 $ 183,064,945 $ 247,573,953 $ 175,681,163
</TABLE>
15
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 1997 (UNAUDITED) ACM INSTITUTIONAL RESERVES
_______________________________________________________________________________
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 consisting of four Portfolios: 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. As
a matter of fundamental policy, each Portfolio pursues its objectives by
maintaining a portfolio of high-quality money market securities all of which,
at the time of investment, have remaining maturities of 397 days or less. 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. Illiquid
securities containing unconditional par puts are valued at par.
2. 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.
3. 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 Tax-Free Portfolio from net investment
income for the six months ended October 31, 1997 are exempt from federal income
taxes. However, certain shareholders may be subject to the alternative minimum
tax (AMT).
4. INVESTMENT INCOME AND INVESTMENT TRANSACTIONS
Interest income is accrued daily. Investment transactions are recorded on the
date securities are purchased or sold. Realized gain (loss) from investment
transactions is recorded on the identified cost basis.
5. REPURCHASE AGREEMENTS
It is the Fund's policy to take possession of securities as collateral under
repurchase agreements and to determine on a daily basis that the value of such
securities are sufficient to cover the value of the repurchase agreements.
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 Tax-Free 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 with respect to the Trust Portfolio, from May 1, 1997 to
July 13, 1997 for expenses exceeding .45 of 1% of its average daily net assets
and from July 14, 1997 to October 31, 1997 for expenses exceeding .50 of 1% of
its average daily net assets. For the six months ended October 31, 1997,
reimbursement was $305,907, $153,046, $121,188 and $74,680 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, under a Transfer
Agency Agreement for providing personnel and facilities to perform transfer
agency services. Such compensation for the Prime, Government, Tax-Free and
Trust Portfolios, for the six months ended October 31, 1997, was approximately
$9,000 per Portfolio.
NOTE C: INVESTMENT TRANSACTIONS
At October 31, 1997, the cost of investments 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 available to offset future capital gains at April 30, 1997 of
$183,804, of which $2,984 expires in 2000, $6,777 in 2001, $29,045 in 2002,
$77,316 in 2003 and $67,682 in the year 2004; the Government Portfolio had a
capital loss carryforward of $131,349, of which $1,340 expires in 2000, $9,174
in 2001, $51,091 in 2002, $23,230 in 2003, $44,374 in 2004 and $2,140 in the
year 2005; the Tax-Free Portfolio had a capital loss carryforward of $83,663,
of which $87 expires in 2000, $6,191 in 2002, $11,019 in 2003 and $66,276 in
2004 and $90 in the year 2005; and the Trust Portfolio had a
16
ACM INSTITUTIONAL RESERVES
_______________________________________________________________________________
capital loss carryforward of $56,967, of which $3,347 expires in 2002, $16,775
in 2003, $32,758 in 2004 and $4,087 in the year 2005.
NOTE D: CAPITAL STOCK
There are 1,000,000,000 shares of $.01 par value capital stock authorized. At
October 31, 1997, capital paid-in aggregated $1,204,821,916 on Prime Portfolio,
$289,518,923 on Government Portfolio, $231,757,256 on Tax-Free Portfolio, and
$247,620,836 on Trust Portfolio. Transactions, all at $1.00 per share, were as
follows:
SIX MONTHS ENDED YEAR ENDED
OCT. 31, 1997 APR. 30,
(UNAUDITED) 1997
-------------- ---------------
PRIME PORTFOLIO
Shares sold 8,261,186,294 12,695,838,675
Shares issued on reinvestments of dividends 31,864,317 40,100,886
Shares redeemed (7,955,751,854) (12,361,921,357)
Net increase 337,298,757 374,018,204
SIX MONTHS ENDED YEAR ENDED
OCT. 31, 1997 APR. 30,
(UNAUDITED) 1997
-------------- ---------------
GOVERNMENT PORTFOLIO
Shares sold 802,850,849 1,074,902,562
Shares issued on reinvestments of dividends 7,774,495 10,174,707
Shares redeemed (847,757,478) (909,371,599)
Net increase (decrease) (37,132,134) 175,705,670
SIX MONTHS ENDED YEAR ENDED
OCT. 31, 1997 APR. 30,
(UNAUDITED) 1997
-------------- ---------------
TAX-FREE PORTFOLIO
Shares sold 963,602,970 1,486,189,526
Shares issued on reinvestments of dividends 4,047,290 7,081,373
Shares redeemed (919,041,261) (1,493,817,762)
Net increase (decrease) 48,608,999 (546,863)
SIX MONTHS ENDED YEAR ENDED
OCT. 31, 1997 APR. 30,
(UNAUDITED) 1997
-------------- ---------------
TRUST PORTFOLIO
Shares sold 800,939,913 1,074,544,780
Shares issued on reinvestments of dividends 5,841,740 9,713,883
Shares redeemed (734,898,947) (1,078,638,835)
Net increase 71,882,706 5,619,828
17
FINANCIAL HIGHLIGHTS ACM INSTITUTIONAL RESERVES
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
PRIME PORTFOLIO
----------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED APRIL 30,
OCT. 31, 1997 --------------------------------------------------------------
(UNAUDITED) 1997 1996 1995 1994 1993
----------- ----------- ----------- ----------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income .0278 .0530 .0560 .0502 .0325 .0353
LESS: DIVIDENDS
Dividends from net investment income (.0278) (.0530) (.0560) (.0502) (.0325) (.0353)
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
TOTAL RETURNS
Total investment return based on net
asset value (a) 5.59%(b) 5.44% 5.76% 5.15% 3.30% 3.59%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $1,204.6 $867.3 $493.3 $197.8 $108.1 $64.3
Ratio to average net assets of:
Expenses, net of waivers and
reimbursements .20%(b) .20% .20% .20% .20% .18%
Expenses, before waivers and
reimbursements .25%(b) .29% .32% .36% .42% .54%
Net investment income (c) 5.51%(b) 5.31% 5.54% 5.24% 3.25% 3.42%
</TABLE>
<TABLE>
<CAPTION>
GOVERNMENT PORTFOLIO
----------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED APRIL 30,
OCT. 31, 1997 --------------------------------------------------------------
(UNAUDITED) 1997 1996 1995 1994 1993
----------- ----------- ----------- ----------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income .0273 .0519 .0552 .0493 .0315 .0339
LESS: DIVIDENDS
Dividends from net investment income (.0273) (.0519) (.0552) (.0493) (.0315) (.0339)
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
TOTAL RETURNS
Total investment return based on net
asset value (a) 5.49%(b) 5.33% 5.67% 5.06% 3.20% 3.45%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $289.4 $326.5 $150.8 $104.4 $76.6 $73.2
Ratio to average net assets of:
Expenses, net of waivers and
reimbursements .20%(b) .20% .20% .20% .20% .18%
Expenses, before waivers and
reimbursements .31%(b) .35% .36% .38% .36% .49%
Net investment income (c) 5.41%(b) 5.22% 5.50% 4.94% 3.15% 3.30%
</TABLE>
(a) 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 year and redemption on the last day of
the period.
(b) Annualized.
(c) Net of expenses reimbursed or waived by the Adviser.
18
ACM INSTITUTIONAL RESERVES
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
TAX-FREE PORTFOLIO
----------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED APRIL 30,
OCT. 31, 1997 --------------------------------------------------------------
(UNAUDITED) 1997 1996 1995 1994 1993
----------- ----------- ----------- ----------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income .0186 .0347 .0372 .0326 .0240 .0287
Net unrealized loss on investments -0- -0- -0- (0.0048) -0- -0-
Net increase in net asset value from
operations .0186 .0347 .0372 .0278 .0240 .0287
LESS: DIVIDENDS
Dividends from net investment income (.0186) (.0347) (.0372) (.0326) (.0240) (.0287)
ADD: CAPITAL CONTRIBUTION
Capital Contributed by the Adviser -0- -0- -0- 0.0048 -0- -0-
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
TOTAL RETURNS
Total investment return based on net
asset value (a) 3.73%(b) 3.53% 3.79% 3.31%(d) 2.43% 2.92%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $231.7 $183.1 $183.6 $35.5 $35.6 $40.9
Ratio to average net assets of:
Expenses, net of waivers and
reimbursements .20%(b) .20% .20% .20% .20% .18%
Expenses, before waivers and
reimbursements .31%(b) .33% .48% .76% .69% .95%
Net investment income (c) 3.68%(b) 3.46% 3.73% 3.31% 2.40% 2.73%
</TABLE>
<TABLE>
<CAPTION>
TRUST PORTFOLIO
----------------------------------------------------------------------------
SIX MONTHS NOV. 16, 1992 (E)
ENDED YEAR ENDED APRIL 30, THROUGH
OCT. 31, 1997 -------------------------------------------------- APRIL 30,
(UNAUDITED) 1997 1996 1995 1994 1993
----------- ----------- ----------- ----------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income .0263 .0492 .0527 .0479 .0309 .0144
LESS: DIVIDENDS
Dividends from net investment income (.0263) (.0492) (.0527) (.0479) (.0309) (.0144)
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
TOTAL RETURNS
Total investment return based on net
asset value (a) 5.30%(b) 5.04% 5.41% 4.91% 3.14% 3.21%(b)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $247.6 $175.7 $170.1 $109.2 $36.8 $5.3
Ratio to average net assets of:
Expenses, net of waivers and
reimbursements .48%(b) .50% .50% .49% .14% -0-
Expenses, before waivers and
reimbursements .55%(b) .57% .60% .75% 1.23% .45%(b)
Net investment income (c) 5.23%(b) 4.93% 5.28% 5.31% 3.15% 3.17%(b)
</TABLE>
(a) 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.
(b) Annualized.
(c) Net of expenses reimbursed or waived by the Adviser.
(d) Capital contributed by the Adviser had no material effect on net asset
value, and therefore, no effect on total return.
(e) Commencement of operations.
19
ACM INSTITUTIONAL RESERVES
_______________________________________________________________________________
ACM INSTITUTIONAL RESERVES
ACM Institutional Reserves
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
DONALD J. ROBINSON
OFFICERS
RONALD M. WHITEHILL, PRESIDENT
KATHLEEN A. CORBET, SENIOR VICE PRESIDENT
DREW BIEGEL, SENIOR VICE PRESIDENT
JOHN F. CHIODI, JR., VICE PRESIDENT
JOSEPH R. LASPINA, VICE PRESIDENT
RAYMOND J. PAPERA, VICE PRESIDENT
EDMUND P. BERGAN, JR., SECRETARY
MARK D. GERSTEN, TREASURER & CHIEF FINANCIAL OFFICER
VINCENT S. NOTO, 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.
20
