ACM INSTITUTIONAL RESERVES
ANNUAL REPORT
APRIL 30, 1997
PORTFOLIO OF INVESTMENTS
APRIL 30, 1997 ACM INSTITUTIONAL RESERVES - PRIME PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY YIELD VALUE
- --------------------------------------------------------------------------
COMMERCIAL PAPER-59.3%
ALLIANZ OF AMERICA FINANCE CORP.
$ 5,949 7/01/97 (a) 5.50% $ 5,893,559
10,000 8/18/97 (a) 5.72 9,826,811
BANCA CRT FINANCIAL CORP.
3,400 5/01/97 5.50 3,400,000
9,060 5/14/97 5.55 9,041,842
7,500 5/05/97 5.58 7,495,350
BANCO NACIONAL DE COMMON
10,000 9/17/97 5.55 9,785,708
BHF FINANCE DELAWARE, INC.
5,000 6/30/97 5.60 4,953,333
BIL NORTH AMERICA, INC.
18,500 5/16/97 5.52 18,457,450
CAISSE CENTRALE JARDINS DU QUEBEC
20,000 7/16/97 5.39 19,772,422
CAISSE D' AMORTISSEMENT
5,550 10/03/97 5.38 5,421,440
1,300 5/07/97 5.50 1,298,808
CHIAO TUNG BANK CO., LTD.
5,000 8/26/97 5.33 4,913,388
20,000 7/23/97 5.45 19,748,694
COMMONWEALTH BANK OF AUSTRALIA
16,500 10/03/97 5.72 16,093,642
COPLEY FINANCING CORP.
13,016 5/12/97 (a) 5.54 12,993,967
3,000 5/21/97 (a) 5.54 2,990,767
6,207 5/21/97 (a) 5.55 6,187,862
CREGEM NORTH AMERICA, INC.
10,000 6/18/97 5.33 9,928,933
CS FIRST BOSTON, INC.
5,000 8/19/97 5.40 4,917,500
5,000 7/01/97 5.62 4,952,386
5,000 10/08/97 5.70 4,873,333
5,000 10/08/97 5.73 4,872,667
EKSPORTFINANS
5,000 6/18/97 5.35 4,964,333
5,820 6/04/97 5.60 5,789,219
19,685 6/18/97 5.60 19,538,019
6,215 6/26/97 5.60 6,160,861
EMBARCADERO CENTER VENTURE (FOUR)
5,600 5/19/97 5.63 5,584,236
13,000 6/04/97 5.72 12,929,771
EMBARCADERO CENTER VENTURE (TWO-A)
6,250 5/19/97 5.67 6,232,281
GENERAL ELECTRIC CAPITAL CORP.
10,000 7/28/97 5.63 9,862,378
GLENCORE FINANCE LTD.
5,000 8/25/97 5.43 4,912,517
5,000 8/26/97 5.43 4,911,763
GOVERNMENT DEVELOPMENT BANK OF
PUERTO RICO
6,500 5/12/97 5.35 6,489,374
10,000 6/13/97 5.58 9,933,350
3,200 6/16/97 5.60 3,177,102
IMI FUNDING CORP. (USA)
3,080 8/05/97 5.35 3,036,059
3,260 7/23/97 5.37 3,219,639
13,430 7/15/97 5.44 13,277,793
INDUSTRIAL BANK OF KOREA
5,000 6/04/97 5.44 4,974,311
5,000 6/18/97 5.50 4,963,333
5,000 6/23/97 5.62 4,958,631
15,000 7/02/97 5.68 14,853,267
INTERNATIONAL NEDERLAND BANK
30,000 6/03/97 5.57 29,846,963
KOREAN DEVELOPMENT BANK
10,000 5/12/97 5.34 9,983,683
KREDIETBANK NORTH
AMERICA FINANCE CORP.
25,000 6/02/97 5.38 24,880,445
MITSUBISHI MOTORS CREDIT
3,000 5/23/97 5.58 2,989,770
MORGAN STANLEY GROUP, INC.
15,000 5/21/97 5.36 14,955,333
10,000 5/21/97 5.52 9,969,333
NESTLE CAPITAL CORP.
5,000 5/05/97 5.50 4,996,944
1
PORTFOLIO OF INVESTMENTS (CONTINUED)
ACM INSTITUTIONAL RESERVES - PRIME PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY YIELD VALUE
- --------------------------------------------------------------------------
PACCAR FINANCIAL CORPORATION
$ 6,380 5/05/97 5.50% $ 6,376,101
PHH CORP.
4,057 5/01/97 5.53 4,057,000
6,000 5/05/97 5.53 5,996,313
PROVINCE OF QUEBEC
6,900 6/30/97 5.60 6,835,600
SOCIETE GENERALE N.A., INC.
2,500 7/14/97 5.32 2,472,661
UNI FUNDING, INC.
5,000 5/05/97 5.33 4,997,039
10,000 6/30/97 5.62 9,906,333
VATTENFALL TREASURY, INC.
14,000 5/21/97 5.36 13,958,311
VENANTIUS
10,000 7/24/97 5.40 9,874,000
15,000 5/07/97 5.50 14,986,250
Total Commercial Paper
(amortized cost $514,670,178) 514,670,178
CERTIFICATES OF DEPOSIT-21.6%
BANK OF TOKYO
10,000 5.54%, 6/11/97 5.50 10,000,353
5,000 5.59%, 5/05/97 5.59 5,000,000
5,000 5.80%, 7/08/97 5.80 5,000,000
22,000 5.84%, 7/18/97 5.84 22,000,000
CANADIAN IMPERIAL BANK
10,000 5.60%, 6/18/97 5.60 10,000,000
CARIPLO
5,000 5.75%, 7/17/97 5.74 5,000,106
DAI ICHI KANGYO BANK LTD.
15,000 5.53%, 5/14/97 5.53 14,999,914
HESSISCHE LANDESBANK
5,000 6.13%, 4/07/98 6.25 4,994,655
KOREAN DEVELOPMENT BANK
30,000 5.78%, 6/11/97 5.76 30,000,677
NORINCHUKIN BANK
20,000 5.60%, 5/07/97 5.59 20,000,033
10,000 5.75%, 6/09/97 5.74 10,000,107
SANWA BANK
13,000 5.52%, 5/07/97 5.52 13,000,000
27,000 5.70%, 5/27/97 5.70 27,000,000
SUMITOMO BANK
10,000 5.57%, 5/14/97 5.57 10,000,000
Total Certificates of Deposit
(amortized cost $186,995,845) 186,995,845
CORPORATE OBLIGATIONS-10.4%
ABBEY NATIONAL TREASURY SERVICES
6,000 5.56%, 5/16/97 FRN 5.62 5,999,853
BETA FINANCE, INC.
5,000 5.92%, 6/06/97 (a) 6.00 4,999,619
GENERAL ELECTRIC CAPITAL CORP.
10,000 5.74%, 6/27/97 FRN 5.71 10,000,768
5,000 5.75%, 1/05/98 FRN 5.75 5,000,000
MERRILL LYNCH & CO.
5,000 5.57%, 12/24/97 FRN 5.59 4,999,370
7,000 5.60%, 1/22/98 FRN 5.63 6,998,765
5,000 5.66%, 3/16/98 5.73 4,999,584
7,000 5.78%, 1/29/98 FRN 5.80 6,998,973
SALTS II CAYMAN ISLANDS CORP.
5,000 5.61%, 6/19/97 (a) 5.61 5,000,000
SALTS III CAYMAN ISLANDS CORP.
35,000 5.79%, 7/23/97 (a) 5.79 35,000,000
Total Corporate Obligations
(amortized cost $89,996,932) 89,996,932
BANK OBLIGATIONS-3.6%
FCC NATIONAL BANK
10,000 5.63%, 6/04/97 5.63 10,000,000
FIRST CHICAGO CORP.
5,000 6.25%, 7/15/97 5.73 5,004,327
JP MORGAN & CO.
10,000 5.75%, 8/15/97 FRN 5.80 9,998,604
KOREAN DEVELOPMENT BANK
6,000 7.71%, 5/05/97 5.47 6,001,504
Total Bank Obligations
(amortized cost $31,004,435) 31,004,435
2
ACM INSTITUTIONAL RESERVES - PRIME PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY YIELD VALUE
- --------------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCY
OBLIGATIONS-2.5%
FEDERAL FARM CREDIT BANK
$ 7,000 5.66%, 8/03/98 FRN 5.71% $ 6,995,869
FEDERAL NATIONAL MORTGAGE ASSN.
10,000 5.74%, 8/25/97 FRN 5.78 9,998,772
STUDENT LOAN MARKETING ASSN.
5,000 5.71%, 1/21/98 FRN 5.74 4,998,957
Total U.S. Government and Agency
Obligations
(amortized cost $21,993,598) 21,993,598
PROMISSORY NOTE-2.3%
GOLDMAN SACHS GROUP LP
20,000 5.69%, 10/14/97 FRN 5.69%
(cost $20,000,000) $20,000,000
TOTAL INVESTMENTS-99.7%
(amortized cost$864,660,988) 864,660,988
Other assets less liabilities-0.3% 2,678,367
NET ASSETS-100%
(offering and redemption price of
$1.00 per share; 867,523,159 shares
outstanding) $867,339,355
See Glossary of Terms on page 13.
See notes to financial statements.
3
PORTFOLIO OF INVESTMENTS
APRIL 30, 1997 ACM INSTITUTIONAL RESERVES - GOVERNMENT PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY YIELD VALUE
- --------------------------------------------------------------------------
U.S. GOVERNMENT & AGENCY
OBLIGATIONS-52.8%
FEDERAL HOME LOAN BANK-18.9%
$ 20,000 5/01/97 5.25% $ 20,000,000
19,000 5/01/97 5.28 19,000,000
5,000 6/05/97 5.30 4,974,236
2,000 9/18/97 5.37 1,958,233
695 9/18/97 5.60 679,865
5,000 5.35%, 12/04/97 FRN 5.44 4,997,556
3,000 5.87%, 1/30/98 5.87 3,000,000
4,060 5.88%, 3/24/98 6.15 4,048,029
3,000 6.11%, 4/17/98 6.15 2,999,174
-------------
61,657,093
FEDERAL NATIONAL MORTGAGE
ASSOCIATION-14.7%
2,000 5/05/97 5.22 1,998,840
1,130 5/09/97 5.25 1,128,682
5,000 6/03/97 5.28 4,975,800
5,000 6/05/97 5.28 4,974,333
2,080 9/10/97 5.37 2,039,045
3,000 6/24/97 5.47 2,975,385
695 6/19/97 5.50 689,797
800 6/25/97 5.50 793,278
3,000 9/24/97 5.50 2,933,083
6,000 8/04/97 5.54 5,912,283
185 5/12/97 5.60 184,683
590 6/13/97 5.60 586,054
4,000 5.38%, 9/12/97 FRN 5.45 3,999,405
2,895 5.39%, 7/17/97 5.39 2,895,000
5,000 5.78%, 6/11/97 FRN 5.83 4,999,728
5,000 5.94%, 10/15/97 FRN 5.95 5,000,259
2,000 6.02%, 4/15/98 6.15 1,997,807
-------------
48,083,462
STUDENT LOAN MARKETING
ASSOCIATION-8.2%
15,765 5/01/97 5.28 15,765,000
4,500 5.68%, 7/12/99 FRN 6.08 4,463,554
4,000 5.71%, 1/21/98 FRN 5.74 3,999,166
2,500 5.87%, 6/30/97 FRN 5.86 2,500,236
-------------
26,727,956
FEDERAL FARM CREDIT BANK-6.1%
1,790 9/15/97 5.37 1,753,420
3,175 7/07/97 5.49 3,142,559
2,500 5.26%, 5/20/97 FRN 5.38 2,499,848
5,100 5.60%, 11/03/97 5.57 5,098,007
7,500 5.73%, 6/26/97 FRN 5.78 7,499,448
-------------
19,993,282
FEDERAL HOME LOAN MORTGAGE CORP.-4.9%
2,000 5/06/97 5.22 1,998,550
2,000 5/07/97 5.22 1,998,260
2,000 5/09/97 5.22 1,997,680
2,000 5/12/97 5.22 1,996,810
447 6/11/97 5.60 444,149
170 7/01/97 5.60 168,387
210 7/15/97 5.60 207,550
4,000 5.72%, 3/17/98 5.87 3,994,950
3,000 5.84%, 4/08/98 6.04 2,994,856
-------------
15,801,192
Total U.S. Government & Agency
Obligations
(amortized cost $172,262,985) 172,262,985
REPURCHASE AGREEMENTS-46.9%
CHASE SECURITIES, INC.
7,000 5.58%, dated 4/08/97, due
6/11/97 in the amount of
$7,069,440 (cost $7,000,000;
collateralized by $8,100,000
FN 303814, 6.50%, 4/01/16,
value $7,346,400)
(amortized cost $7,000,000) (b) 5.58 7,000,000
CHASE SECURITIES, INC.
5,000 5.63%, dated 4/01/97, due
6/30/97 in the amount of
$5,070,312 (cost $5,000,000;
collateralized by $5,580,000
FH 00604, 7.00%, 11/01/26,
value $5,373,069)
(amortized cost $5,000,000) (b) 5.63 5,000,000
FIRST BOSTON CORP.
7,000 5.50%, dated 4/09/97, due
5/08/97 in the amount of
$7,031,014 (cost $7,000,000;
collateralized by $7,472,000
FN 313472, 7.00%, 2/01/27,
value $7,251,245)
(amortized cost $7,000,000) (b) 5.50 7,000,000
4
ACM INSTITUTIONAL RESERVES - GOVERNMENT PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY YIELD VALUE
- --------------------------------------------------------------------------
FIRST BOSTON CORP.
$ 7,000 5.52%, dated 4/30/97, due
5/30/97 in the amount of
$7,032,200 (cost $7,000,000;
collateralized by $9,115,000
FN 302833, 8.00%, 10/01/24,
value $7,178,590)
(amortized cost $7,000,000) (b) 5.52% $ 7,000,000
GOLDMAN SACHS & CO.
12,000 5.50%, dated 4/09/97, due
5/14/97 in the amount of
$12,064,167 (cost $12,000,000;
collateralized by $12,992,000
FN 00618, 7.00%, 11/01/26,
value $12,456,960)
(amortized cost $12,000,000) (b) 5.50 12,000,000
LEHMAN BROTHERS, INC.
5,000 5.40%, dated 3/19/97, due
5/21/97 in the amount of
$5,047,250 (cost $5,000,000;
collateralized by $6,119,213
FGG 000474, 9.00%, 4/01/25,
value $5,196,326)
(amortized cost $5,000,000) (b) 5.40 5,000,000
LEHMAN BROTHERS, INC.
7,000 5.55%, dated 4/09/97, due
6/09/97 in the amount of
$7,065,829 (cost $7,000,000;
collateralized by $9,969,734
FN 10267, 7.00%, 10/01/09,
value $7,294,149)
(amortized cost $7,000,000) (b) 5.55 7,000,000
MORGAN STANLEY GROUP, INC.
12,000 5.44%, dated 4/18/97, due
5/02/97 in the amount of
$12,025,387 (cost $12,000,000;
collateralized by $12,976,000
GN 780452, 7.00%, 10/15/26,
value $12,425,262)
(amortized cost $12,000,000) (b) 5.44 12,000,000
NIKKO SECURITIES CO.
5,000 5.48%, dated 4/16/97, due
5/13/97 in the amount of
$5,020,550 (cost $5,000,000;
collateralized by $5,406,000
FN 377155, 7.00%, 4/01/27,
value $5,267,546)
(amortized cost $5,000,000) (b) 5.48 5,000,000
NIKKO SECURITIES CO.
9,000 5.57%, dated 4/30/97, due
7/02/97 in the amount of
$9,087,727 (cost $9,000,000;
collateralized by $9,652,000
FN 250911, 7.00%, 5/01/27,
value $9,374,639)
(amortized cost $9,000,000) (b) 5.57 9,000,000
PAINE WEBBER, INC.
7,000 5.50%, dated 4/30/97, due
5/12/97 in the amount of
$7,012,833 (cost $7,000,000;
collateralized by $7,279,000
FN 250888, 7.00%, 4/01/12,
value $7,204,383)
(amortized cost $7,000,000) (b) 5.50 7,000,000
PAINE WEBBER, INC.
7,000 5.50%, dated 4/30/97, due
5/16/97 in the amount of
$7,017,111 (cost $7,000,000;
collateralized by $7,694,000
FN 313040, 7.00%, 8/01/11,
value $7,203,855)
(amortized cost $7,000,000) (b) 5.50 7,000,000
PRUDENTIAL SECURITIES, INC.
7,000 5.46%, dated 4/23/97, due
5/15/97 in the amount of
$7,023,357 (cost $7,000,000;
collateralized by $11,330,000
FN 100042, 11.00%, 10/15/20,
value $7,097,833, and $125,000
FN 283820, 6.00%, 5/01/01,
value $102,769)
(amortized cost $7,000,000) (b) 5.46 7,000,000
5
PORTFOLIO OF INVESTMENTS
(CONTINUED) ACM INSTITUTIONAL RESERVES - GOVERNMENT PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY YIELD VALUE
- --------------------------------------------------------------------------
PRUDENTIAL SECURITIES, INC.
$ 6,000 5.47%, dated 4/16/97, due
5/07/97 in the amount of
$6,019,145 (cost $6,000,000;
collateralized by $7,225,000
GN 780197, 7.00%, 7/15/25,
value $6,232,164)
(amortized cost $6,000,000) (b) 5.47% $ 6,000,000
SBC WARBURG, LTD.
6,000 5.45%, dated 4/21/97, due
5/05/97 in the amount of
$6,012,717 (cost $6,000,000;
collateralized by $8,552,000
FN 313311, 6.246%, 12/01/26,
value $6,161,719)
(amortized cost $6,000,000) (b) 5.45 6,000,000
SBC WARBURG, LTD.
6,000 5.53%, dated 4/17/97, due
6/18/97 in the amount of
$6,057,143 (cost $6,000,000;
collateralized by $7,594,000
FN 50993, 7.00%, 2/01/24,
value $6,167,556)
(amortized cost $6,000,000) (b) 5.53 6,000,000
SMITH BARNEY, INC.
12,000 5.50%, dated 4/09/97, due
5/13/97 in the amount of
$12,062,333 (cost $12,000,000;
collateralized by $12,899,893
FN 00567, 9.50%, 4/01/25,
value $12,393,073)
(amortized cost $12,000,000) (b) 5.50 12,000,000
STATE STREET BANK AND TRUST CO.
10,200 5.27%, dated 4/30/97, due
5/01/97 in the amount of
$10,201,493 (cost $10,200,000;
collateralized by $8,730,000
US T-Note, 8.875%, 8/15/20,
value $10,469,828)
(amortized cost $10,200,000) 5.27 10,200,000
UBS SECURITIES, INC.
3,000 5.53%, dated 4/08/97, due
5/07/97 in the amount of
$3,013,364 (cost $3,000,000;
collateralized by $3,231,000
FN 361936, 7.50%, 9/01/26,
value $3,191,616)
(amortized cost $3,000,000) (b) 5.53 3,000,000
UBS SECURITIES, INC.
4,000 5.55%, dated 4/30/97, due
5/01/97 in the amount of
$4,000,617 (cost $4,000,000;
collateralized by $4,277,000
FHG 00647, 7.00%, 1/01/27,
value $4,079,275)
(amortized cost $4,000,000) 5.55 4,000,000
UBS SECURITIES, INC.
5,000 5.62%, dated 4/29/97, due
7/30/97 in the amount of
$5,071,811 (cost $5,000,000;
collateralized by $5,242,000
FN 361936, 7.50%, 9/01/26,
value $5,182,968)
(amortized cost $5,000,000) (b) 5.62 5,000,000
UBS SECURITIES, INC.
4,000 5.65%, dated 4/17/97, due
7/16/97 in the amount of
$4,056,500 (cost $4,000,000;
collateralized by $4,304,000
FHG 00647, 7.00%, 1/01/27,
value $4,145,207)
(amortized cost $4,000,000) (b) 5.65 4,000,000
Total Repurchase Agreements
(amortized cost $153,200,000) 153,200,000
TOTAL INVESTMENTS-99.7%
(amortized cost $325,462,985) 325,462,985
Other assets less liabilities-0.3% 1,056,723
NET ASSETS-100%
(offering and redemption price
of $1.00 per share; 326,651,057
shares outstanding) $326,519,708
See Glossary of Terms on page 13.
See notes to financial statements.
6
PORTFOLIO OF INVESTMENTS
APRIL 30, 1997 ACM INSTITUTIONAL RESERVES - TAX-FREE PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY# YIELD VALUE
- --------------------------------------------------------------------------
MUNICIPAL BONDS-65.3%
ALABAMA-2.8%
ARAB IDB
(SCI Manufacturing Inc.)
Series '89 VRDN (c)
$ 150 8/01/00 4.70% $ 150,000
HUNTSVILLE IDA
(Seiki USA Project)
Series '88 AMT
VRDN (c)
5,000 9/01/98 4.88 5,000,000
-------------
5,150,000
ALASKA-1.1%
ALASKA IDR
(American President Lines) Series '91
VRDN (c)
1,945 11/01/09 4.30 1,945,000
ARIZONA-0.2%
CHANDLER IDA
(Parsons Municipal Services Inc.)
Series '83
VRDN (c)
400 12/15/09 3.75 400,000
CALIFORNIA-9.2%
ALAMEDA COUNTY TRAN
BOARD OF EDUCATION
Series '96
3,640 7/01/97 4.03 3,642,721
CALIFORNIA COMMUNITY
COLLEGE TRAN FSA
Series A
2,500 7/02/97 3.90 2,502,996
CALIFORNIA HIGHER EDUCATION
STUDENT LOAN REV.
Series D-2 Putable
5,000 7/01/97 3.95 5,000,000
LOS ANGELES COUNTY TRAN
LOCAL FSA EDUCATIONAL AGENCY
1,600 6/30/97 4.05 1,601,758
SOUTH COAST TRAN
LOCAL AGENCY POOLED
Loan Series '96A
4,000 6/30/97 4.07 4,004,291
-------------
16,751,766
CONNECTICUT-1.5%
CONNECTICUT DEV. AUTH. PCR
(Connecticut Light & Power Co. Project)
Series '93A VRDN (c)
2,800 9/01/28 4.50 2,800,000
DELAWARE-1.4%
DELAWARE ECON. DEV. AUTH.
(Delmarva Power & Light) Series '93C
VRDN (c)
2,500 10/01/28 4.55 2,500,000
DISTRICT OF COLUMBIA-2.7%
DISTRICT OF COLUMBIA GO
Series B-1 AMBAC
1,030 6/01/97 3.75 1,030,378
DISTRICT OF COLUMBIA HFA MFHR
(McLean Apts.)
Series '85A VRDN (c)
2,000 12/01/05 4.70 2,000,000
DISTRICT OF COLUMBIA SFHR
Series C Putable AMT
2,000 12/01/97 3.90 2,000,000
-------------
5,030,378
GEORGIA-2.7%
CARTERSVILLE ECON. DEV.
(Sekisui Jushi America)
Series '92 VRDN (c)
300 6/01/12 4.40 300,000
COLLEGE PARK IDR
(Wynefield 1 Project)
AMT VRDN (c)
1,700 12/01/16 3.85 1,700,000
JACKSON COUNTY IDA
(Mitsubishi Consumer Electronic)
VRDN (c)
3,000 12/01/15 5.00 3,000,000
-------------
5,000,000
7
PORTFOLIO OF INVESTMENTS
(CONTINUED) ACM INSTITUTIONAL RESERVES - TAX-FREE PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY# YIELD VALUE
- --------------------------------------------------------------------------
ILLINOIS-12.3%
ELMHURST HOSPITAL REVENUE
(Joint Comm. Health Org.) Series '88
VRDN (c)
$ 16,300 7/01/18 4.75% $ 16,300,000
ILLINOIS DEV. FINANCE AUTH.
(Akin Seed Project)
AMT VRDN (c)
1,000 11/01/04 4.95 1,000,000
ILLINOIS DEV. FINANCE AUTH.
(U.G.N. Inc. Project)
Series '86 AMT
VRDN (c)
3,500 9/15/11 4.40 3,500,000
VERNON HILLS IDR
(Kinder Care Center)
VRDN (c)
550 2/01/01 4.75 550,000
WEST CHICAGO IDR
(Acme Printing Co.)
Series '89 AMT
VRDN (c)
1,100 5/01/99 4.53 1,100,000
-------------
22,450,000
INDIANA-1.4%
PORTAGE ECON. DEV. MFHR
(Pedcor Inv. Apts. Project)
Series '95A
AMT VRDN (c)
600 8/01/30 4.70 600,000
SEYMOUR ECON. DEV.
(Kobelco Metal Powder Co. Project)
Series '87 AMT
VRDN (c)
2,000 12/01/97 4.40 2,000,000
-------------
2,600,000
KANSAS-1.9%
WICHITA COUNTY
(CSJ Health Systems Project)
Series XXV '85
VRDN (c)
3,400 10/01/11 4.70 3,400,000
KENTUCKY-0.2%
BOONE COUNTY
(Cincinnati Gas & Elec. Co.)
Series '85A
VRDN (c)
295 8/01/13 3.65 295,000
MAINE-1.1%
MAINE FINANCE AUTH.
(Barber Foods Inc.)
Series '90B AMT
VRDN (c)
2,050 12/01/06 4.80 2,050,000
MICHIGAN-0.4%
MICHIGAN HDA MFHR
(Woodland Meadows Apts.)
AMT VRDN (c)
400 3/01/13 4.60 400,000
MICHIGAN JOB DEV. AUTH.
(Kentwood Residence Assoc.)
Series '84
VRDN (c)
300 11/01/14 3.60 300,000
-------------
700,000
MINNESOTA-0.3%
EDEN PRAIRIE IDA
(Kinder Care Project)
Series C VRDN (c)
465 2/01/01 4.75 465,000
MISSOURI-0.4%
BLUE SPRINGS IDA
(Kinder Care Project)
Series C VRDN (c)
540 2/01/01 4.75 540,000
MISSOURI ECON. DEV. AUTH.
(Plastic Enterprises)
Series '90A AMT
VRDN (c)
135 9/01/05 4.75 135,000
-------------
675,000
NEW HAMPSHIRE-0.4%
NEW HAMPSHIRE MUNI. BOND BANK
Series D FSA
760 1/15/98 4.04 767,090
8
ACM INSTITUTIONAL RESERVES - TAX-FREE PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY# YIELD VALUE
- --------------------------------------------------------------------------
NEW JERSEY-2.7%
JERSEY CITY BAN
$ 3,500 9/26/97 4.05% $ 3,506,134
PLEASANTVILLE SCHOOL
DISTRICT TEMPORARY NOTES
1,500 8/28/97 4.00 1,501,170
-------------
5,007,304
NORTH CAROLINA-0.8%
LENOIR COUNTY IDR PCR
(Carolina Energy Project)
AMT VRDN (c)
1,500 7/01/22 4.75 1,500,000
OREGON-1.3%
OREGON ECON. DEV.
(Kyotaru Oregon Project) Series '89
AMT VRDN (c)
2,400 12/01/99 4.88 2,400,000
PENNSYLVANIA-2.1%
EMMAUS GENERAL AUTH. REV.
Series '89F-06
VRDN (c)
1,200 3/01/24 4.60 1,200,000
MONTGOMERY COUNTY IDA
(Kinder Care Project)
Series D VRDN (c)
400 10/01/00 4.75 400,000
PHILADELPHIA GO TRAN
Series '96A
2,000 6/30/97 3.95 2,001,737
VENAGO IDR
(Penzoil Co. Project) Series '82A
VRDN (c)
285 12/01/12 4.50 285,000
-------------
3,886,737
SOUTH DAKOTA-1.1%
SOUTH DAKOTA HFA SFMR
(Homeownership Mortgage) Series F
1,000 5/01/97 3.78 1,000,000
SOUTH DAKOTA HFA SFMR
(Homeownership Mortgage) Series G
1,000 5/01/97 3.90 1,000,000
-------------
2,000,000
TENNESSEE-3.8%
DICKSON COUNTY IDA
(Tennessee Bun Co. Project)
Series '96
AMT VRDN (c)
2,000 7/01/06 4.75 2,000,000
TENNESSEE HDA SFMR
(Homeownership Program) Series
'96-5 AMT
5,000 8/21/97 4.00 5,000,397
-------------
7,000,397
TEXAS-3.1%
GREATER EAST TEXAS HIGHER EDUCATION
STUDENT LOAN REV.
Series '95A Putable AMT
1,000 5/01/98 4.10 1,000,000
TEXAS GO TRAN
Series '96
4,050 8/29/97 4.00 4,059,557
TRINITY RIVER IDA
(Radiation Sterilizers)
Series A VRDN (c)
150 11/01/05 3.75 150,000
TRINITY RIVER IDA
(Radiation Sterilizers)
Series B VRDN (c)
450 11/01/05 3.75 450,000
-------------
5,659,557
UTAH-4.7%
PROVO CITY HFA MFHR
(Branbury Project)
Series A VRDN (c)
3,000 12/15/10 4.80 3,000,000
9
PORTFOLIO OF INVESTMENTS
(CONTINUED) ACM INSTITUTIONAL RESERVES - TAX-FREE PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY# YIELD VALUE
- --------------------------------------------------------------------------
UTAH HFA SFMR
(Home Mortgage Rev.) Series '96-2
VRDN (c)
$ 3,500 7/01/16 4.60% $ 3,500,000
UTAH STUDENT LOAN REV.
Series O AMBAC
2,000 5/01/98 3.95 2,014,506
-------------
8,514,506
VERMONT-0.3%
SWANTON VILLAGE ELECTRIC SYSTEM REV.
MBIA
185 12/01/97 4.10 187,953
VERMONT STUDENT LOAN REV.
Series '85 VRDN (c)
430 1/01/04 3.65 430,000
-------------
617,953
VIRGINIA-4.1%
CHESTERFIELD COUNTY IDR
(Phillip Morris Co.) VRDN (c)
7,500 4/01/09 4.75 7,500,000
WASHINGTON-0.3%
WASHINGTON STUDENT LOAN FINANCE
(Third Program) Series B AMT
VRDN (c)
500 12/01/02 4.70 500,000
WISCONSIN-1.0%
WAUSAU PCR
(Minnesota Mining & Manufacturing)
VRDN (c)
1,600 8/01/17 4.86 1,600,000
300 12/01/01 4.86 300,000
-------------
1,900,000
Total Municipal Bonds
(amortized cost $119,465,688) 119,465,688
COMMERCIAL PAPER-11.8%
ARIZONA-1.5%
MARICOPA COUNTY PCR
(So. California Edison Project)
Series F
2,700 5/01/97 3.50 2,700,000
FLORIDA-1.2%
SUNSHINE STATE GOVERNMENT
FINANCE AGENCY
(Comm. Rev. Bonds) Series '86
2,200 8/22/97 3.80 2,200,000
ILLINOIS-1.1%
ILLINOIS EDUCATIONAL FACILITIES AUTH.
(Pooled Financing Program)
2,000 8/20/97 3.80 2,000,000
INDIANA-0.6%
MOUNT VERNON PCR
(General Electric Co. Project)
Series '89A
1,100 8/20/97 3.80 1,100,000
KANSAS-0.5%
BURLINGTON PCR
(Kansas City Power & Light Co.)
Series '87A
1,000 8/14/97 3.80 1,000,000
MICHIGAN-4.4%
DELTA COUNTY ECON. DEV. AUTH.
(Mead Paper Corp.) Series A
1,500 7/22/97 3.80 1,500,000
DELTA COUNTY ECON. DEV. AUTH.
(Mead Paper Corp.) Series B
4,040 7/22/97 3.80 4,040,000
MICHIGAN BUILDING AUTH.
2,500 5/01/97 3.50 2,500,000
-------------
8,040,000
10
ACM INSTITUTIONAL RESERVES - TAX-FREE PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY# YIELD VALUE
- --------------------------------------------------------------------------
NORTH CAROLINA-0.8%
NORTH CAROLINA MUNICIPAL POWER AGENCY
(Catawba Project #1)
$ 1,500 8/21/97 3.80% $ 1,500,000
TEXAS-1.1%
DALLAS AREA RAPID TRANSIT
Sales Series A
2,000 8/20/97 3.80 2,000,000
WYOMING-0.6%
LINCOLN COUNTY PCR
(PacifiCorp Project)
Series '91
1,100 8/14/97 3.80 1,100,000
Total Commercial Paper
(amortized cost $21,639,649) 21,640,000
TOTAL INVESTMENTS-77.1%
(amortized cost $141,105,337) $141,105,688
Other assets less liabilities-22.9% 41,959,257
NET ASSETS-100%
(offering and redemption price of
$1.00 per share; 183,148,257 shares
outstanding) $183,064,945
# All securities either mature or their interest rate changes in one year or
less.
See Glossary of Terms on page 13.
See notes to financial statements.
11
PORTFOLIO OF INVESTMENTS
APRIL 30, 1997 ACM INSTITUTIONAL RESERVES - TRUST PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY YIELD VALUE
- --------------------------------------------------------------------------
COMMERCIAL PAPER-52.2%
AGA CAPITAL, INC.
$ 4,000 5/20/97 (a) 5.55% $ 3,988,283
ALLIANZ OF AMERICA FINANCE CORP.
2,000 7/10/97 (a) 5.65 1,978,028
1,000 7/21/97 (a) 5.67 987,242
ASSOCIATES CORP. OF NORTH AMERICA
8,000 6/27/97 5.72 7,927,547
BANCA CRT FINANCIAL CORP.
4,000 5/22/97 5.53 3,987,097
BIL NORTH AMERICA, INC.
5,000 8/18/97 5.29 4,919,915
3,000 5/16/97 5.52 2,993,100
CAISSE CENTRALE JARDINS DU QUEBEC
7,379 5/08/97 5.50 7,371,109
CHIAO TUNG BANK CO., LTD.
2,000 8/26/97 5.33 1,965,355
CREGEM NORTH AMERICA, INC.
7,000 6/26/97 5.29 6,942,398
3,000 6/18/97 5.33 2,978,680
CS FIRST BOSTON, INC.
3,000 8/19/97 5.40 2,950,500
1,000 7/01/97 5.62 990,477
1,000 10/08/97 5.70 974,667
EMBARCADERO CENTER VENTURE (FOUR)
3,000 6/04/97 5.72 2,983,793
GLENCORE FINANCE LTD.
1,000 8/25/97 5.43 982,503
IMI FUNDING CORP. (USA)
5,000 5/22/97 5.52 4,983,900
INDUSTRIAL BANK OF KOREA
2,000 6/23/97 5.62 1,983,452
6,000 7/17/97 5.70 5,926,850
KOREAN DEVELOPMENT BANK
2,000 5/27/97 5.60 1,991,911
MERRILL LYNCH & CO., INC.
1,000 1/14/98 5.85 958,075
MITSUBISHI MOTORS CREDIT
7,000 5/23/97 5.58 6,976,130
PHH CORP.
4,000 5/21/97 5.52 3,987,733
UNI FUNDING, INC.
2,000 6/30/97 5.62 1,981,267
VENANTIUS AB
8,000 5/07/97 5.50 7,992,667
Total Commercial Paper
(amortized cost $91,702,679) 91,702,679
U.S. GOVERNMENT & AGENCY
OBLIGATIONS-32.6%
FEDERAL FARM CREDIT BANK
2,500 5.26%, 5/20/97 FRN 5.38 2,499,848
7,500 5.73%, 6/26/97 FRN 5.78 7,499,448
FEDERAL HOME LOAN BANK
5,000 5.35%, 12/04/97 FRN 5.44 4,997,556
3,000 5.87%, 1/30/98 5.87 3,000,000
FEDERAL NATIONAL MORTGAGE ASSN.
2,000 5.39%, 7/17/97 5.39 2,000,000
5,000 5.78%, 6/11/97 FRN 5.83 4,999,728
5,000 5.94%, 10/15/97 FRN 5.93 5,000,259
STUDENT LOAN MARKETING ASSN.
2,500 5.55%, 9/03/97 FRN 5.61 2,499,504
22,300 5.71%, 11/20/97 FRN 5.65 22,307,219
2,500 5.87%, 6/30/97 FRN 5.86 2,500,236
Total U.S. Government & Agency
Obligations
(amortized cost $57,303,798) 57,303,798
CORPORATE OBLIGATIONS-8.6%
ABBEY NATIONAL TREASURY SERVICES
3,000 5.56%, 5/16/97 FRN 5.62 2,999,927
GENERAL ELECTRIC CAPITAL CORP.
2,000 5.75%, 1/05/98 FRN 5.75 2,000,000
MERRILL LYNCH & CO.
2,000 5.66%, 3/16/98 5.73 1,999,833
12
ACM INSTITUTIONAL RESERVES - TRUST PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY YIELD VALUE
- --------------------------------------------------------------------------
SALTS II CAYMAN ISLANDS CORP. (A)
$ 8,000 5.61%, 6/19/97 5.61% $ 8,000,000
Total Corporate Obligations
(amortized cost $14,999,760) 14,999,760
CERTIFICATES OF DEPOSIT-3.4%
BANK OF TOKYO
1,000 5.80%, 7/08/97 5.80 1,000,000
CARIPLO FINANCE, INC.
1,000 5.75%, 7/17/97 5.74 1,000,021
DAI ICHI KANGYO BANK LTD.
3,000 5.53%, 5/14/97 5.53 2,999,983
HESSISCHE LANDESBANK
1,000 6.13%, 4/07/98 6.25 998,931
Total Certificates of Deposit
(amortized cost $5,998,935) 5,998,935
PROMISSORY NOTE-2.3%
GOLDMAN SACHS GROUP L.P.
4,000 5.69%, 10/14/97 FRN
(cost $4,000,000) 5.69 4,000,000
TIME DEPOSIT-1.0%
REPUBLIC NATIONAL BANK
1,800 5.63%, 5/01/97
(cost $1,800,000) 5.63 1,800,000
TOTAL INVESTMENTS-100.1%
(amortized cost $175,805,172) 175,805,172
Other assets less liabilities-(0.1%) (124,009)
NET ASSETS-100%
(offering and redemption
price of $1.00 per share;
175,738,130 shares outstanding) $175,681,163
(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 April
30, 1997, these securities amounted to $82,892,585, representing 9.6% of net
assets on the Prime Portfolio, and $14,953,553, representing 8.5% of net assets
on Trust Portfolio.
(b) Repurchase agreements which are terminable within 7 days.
(c) 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
FRN Floating Rate Note
FSA Financial Security Assurance, Inc.
GO General Obligation
HDA Housing Development Authority
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
SFHR Single Family Housing Revenue
SFMR Single Family Mortgage Revenue
TRAN Tax & Revenue Anticipation Note
See notes to financial statements.
13
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1997 ACM INSTITUTIONAL RESERVES
_______________________________________________________________________________
<TABLE>
<CAPTION>
PRIME GOVERNMENT TAX-FREE TRUST
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
ASSETS
Investments in securities, at
value (cost $864,660,988,
$325,462,985, $141,105,337,
$175,805,172, respectively) $864,660,988 $325,462,985 $141,105,688 $175,805,172
Cash -0- -0- 2,285,418 89,537
Interest receivable 2,868,492 1,108,688 1,550,683 854,771
Receivable for investments sold -0- -0- 39,354,888 -0-
Receivable for fund shares sold -0- -0- -0- 248
Receivable due from Adviser -0- 14,210 -0- -0-
Total assets 867,529,480 326,585,883 184,296,677 176,749,728
LIABILITIES
Due to custodian 3,690 11,150 -0- -0-
Payable for fund shares repurchased 3,568 -0- -0- 317
Advisory fee payable 782 -0- 3,127 62,397
Payable for investments purchased -0- -0- 1,188,463 958,075
Accrued expenses 182,085 55,025 40,142 47,776
Total liabilities 190,125 66,175 1,231,732 1,068,565
NET ASSETS $867,339,355 $326,519,708 $183,064,945 $175,681,163
COMPOSITION OF NET ASSETS
Capital shares $867,523,159 $326,651,057 $183,148,257 $175,738,130
Accumulated net realized loss on
investments (183,804) (131,349) (83,663) (56,967)
Net unrealized appreciation of
investments -0- -0- 351 -0-
$867,339,355 $326,519,708 $183,064,945 $175,681,163
</TABLE>
See notes to financial statements.
14
STATEMENT OF OPERATIONS
YEAR ENDED APRIL 30, 1997 ACM INSTITUTIONAL RESERVES
_______________________________________________________________________________
<TABLE>
<CAPTION
PRIME GOVERNMENT TAX-FREE TRUST
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Interest $41,610,016 $10,564,511 $ 7,490,721 $10,692,908
EXPENSES
Advisory fee (Note B) 1,509,130 389,803 409,348 886,804
Registration 425,097 154,933 106,408 101,201
Custodian 154,937 77,854 93,135 73,744
Audit and legal 33,353 15,798 19,037 14,988
Transfer agency 24,226 23,771 20,534 22,867
Printing 5,788 4,056 3,634 8,703
Directors' fees 5,525 5,525 5,525 5,525
Amortization of organization
expenses -0- 2,076 2,076 -0-
Miscellaneous 12,866 5,884 7,527 9,765
Total expenses 2,170,922 679,700 667,224 1,123,597
Less: expense reimbursement (661,792) (289,896) (257,876) (144,572)
Net expenses 1,509,130 389,804 409,348 979,025
Net investment income 40,100,886 10,174,707 7,081,373 9,713,883
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) on
investment transactions 1,928 (2,140) (90) (4,087)
Net change in unrealized
appreciation of investments -0- -0- 229 -0-
Net gain (loss) on investments 1,928 (2,140) 139 (4,087)
NET INCREASE IN NET ASSETS FROM
OPERATIONS $40,102,814 $10,172,567 $7,081,512 $9,709,796
</TABLE>
See notes to financial statements.
15
STATEMENT OF CHANGES IN NET ASSETS ACM INSTITUTIONAL RESERVES
_______________________________________________________________________________
<TABLE>
<CAPTION>
PRIME PORTFOLIO GOVERNMENT PORTFOLIO
---------------------------- ----------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
APRIL 30,1997 APRIL 30,1996 APRIL 30,1997 APRIL 30,1996
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income $ 40,100,886 $ 18,016,970 $ 10,174,707 $ 8,116,764
Net realized gain (loss) on investment transactions 1,928 (67,682) (2,140) (44,374)
Net change in unrealized appreciation of investments -0- -0- -0- -0-
Net increase in net assets from operations 40,102,814 17,949,288 10,172,567 8,072,390
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income (40,100,886) (18,016,970) (10,174,707) (8,116,764)
CAPITAL STOCK TRANSACTIONS
Net increase (decrease) 374,018,204 295,597,513 175,705,670 46,450,680
Total increase (decrease) 374,020,132 295,529,831 175,703,530 46,406,306
NET ASSETS
Beginning of year 493,319,223 197,789,392 150,816,178 104,409,872
End of year $867,339,355 $493,319,223 $326,519,708 $150,816,178
</TABLE>
See notes to financial statements.
16
ACM INSTITUTIONAL RESERVES
_______________________________________________________________________________
<TABLE>
<CAPTION>
TAX-FREE PORTFOLIO TRUST PORTFOLIO
---------------------------- ----------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
APRIL 30,1997 APRIL 30,1996 APRIL 30,1997 APRIL 30,1996
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income $ 7,081,373 $ 3,429,135 $ 9,713,883 $ 8,045,961
Net realized gain (loss) on investment transactions (90) (66,276) (4,087) (32,758)
Net change in unrealized appreciation of investments 229 (44) -0- -0-
Net increase in net assets from operations 7,081,512 3,362,815 9,709,796 8,013,203
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income (7,081,373) (3,429,135) (9,713,883) (8,045,961)
CAPITAL STOCK TRANSACTIONS
Net increase (decrease) (546,863) 148,180,832 5,619,828 60,921,819
Total increase (decrease) (546,724) 148,114,512 5,615,741 60,889,061
NET ASSETS
Beginning of year 183,611,669 35,497,157 170,065,422 109,176,361
End of year 183,064,945 $183,611,669 $175,681,163 $170,065,422
</TABLE>
17
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1997 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.
2. ORGANIZATION EXPENSES
The organization expenses of the Fund were being amortized against income on a
straight-line basis through August 1996 on the Government and Tax-Free
Portfolios.
3. 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 Tax-Free Portfolio from net investment
income for the year ended April 30, 1997 are exempt from federal income taxes.
However, certain shareholders may be subject to the alternative minimum tax
(AMT).
5. 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.
6. 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, 1996 to
April 6, 1997 for expenses exceeding .50 of 1% of its average daily net assets
and from April 7, 1997 to April 30, 1997 for expenses exceeding .45 of 1% of
its average daily net assets. For the year ended April 30, 1997, reimbursement
was $661,792, $289,896, $257,876 and $144,572 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, 1997, was approximately
$18,000 per Portfolio.
18
ACM INSTITUTIONAL RESERVES
_______________________________________________________________________________
NOTE C: INVESTMENT TRANSACTIONS
At April 30, 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 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
April 30, 1997, capital paid-in aggregated $867,523,159 on Prime Portfolio,
$326,651,057 on Government Portfolio, $183,148,257 on Tax-Free Portfolio, and
$175,738,130 on Trust Portfolio. Transactions, all at $1.00 per share, were as
follows:
YEAR ENDED YEAR ENDED
APRIL 30, 1997 APRIL 30, 1996
---------------- ---------------
PRIME PORTFOLIO
Shares sold 12,695,838,675 4,839,076,341
Shares issued on reinvestments of dividends 40,100,886 18,016,970
Shares redeemed (12,361,921,357) (4,561,495,798)
Net increase 374,018,204 295,597,513
YEAR ENDED YEAR ENDED
APRIL 30, 1997 APRIL 30, 1996
---------------- ---------------
GOVERNMENT PORTFOLIO
Shares sold 1,074,902,562 1,212,530,228
Shares issued on reinvestments of dividends 10,174,707 8,116,764
Shares redeemed (909,371,599) (1,174,196,312)
Net increase 175,705,670 46,450,680
YEAR ENDED YEAR ENDED
APRIL 30, 1997 APRIL 30, 1996
---------------- ---------------
TAX-FREE PORTFOLIO
Shares sold 1,486,189,526 1,044,165,922
Shares issued on reinvestments of dividends 7,081,373 3,429,135
Shares redeemed (1,493,817,762) (899,414,225)
Net increase (decrease) (546,863) 148,180,832
19
NOTES TO FINANCIAL STATEMENTS (CONTINUED) ACM INSTITUTIONAL RESERVES
_______________________________________________________________________________
YEAR ENDED YEAR ENDED
APRIL 30, 1997 APRIL 30, 1996
---------------- ---------------
TRUST PORTFOLIO
Shares sold 1,074,544,780 989,948,926
Shares issued on reinvestments of dividends 9,713,883 8,045,961
Shares redeemed (1,078,638,835) (937,073,068)
Net increase 5,619,828 60,921,819
20
FINANCIAL HIGHLIGHTS ACM INSTITUTIONAL RESERVES
_______________________________________________________________________________
PER SHARE OPERATING PERFORMANCE FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR.
<TABLE>
<CAPTION>
PRIME PORTFOLIO
------------------------------------------------
YEAR ENDED APRIL 30,
------------------------------------------------
1997 1996 1995 1994 1993
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income .0530 .0560 .0502 .0325 .0353
LESS: DISTRIBUTIONS
Dividends from net investment income (.0530) (.0560) (.0502) (.0325) (.0353)
Net asset value, end of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
TOTAL RETURNS
Total investment return based on
net asset value (a) 5.44% 5.76% 5.15% 3.30% 3.59%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (in millions) $867.3 $493.3 $197.8 $108.1 $64.3
Ratio to average net assets of:
Expenses, net of waivers and reimbursements .20% .20% .20% .20% .18%
Expenses, before waivers and reimbursements .29% .32% .36% .42% .54%
Net investment income (b) 5.31% 5.54% 5.24% 3.25% 3.42%
</TABLE>
<TABLE>
<CAPTION>
GOVERNMENT PORTFOLIO
------------------------------------------------
YEAR ENDED APRIL 30,
------------------------------------------------
1997 1996 1995 1994 1993
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income .0519 .0552 .0493 .0315 .0339
LESS: DISTRIBUTIONS
Dividends from net investment income (.0519) (.0552) (.0493) (.0315) (.0339)
Net asset value, end of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
TOTAL RETURNS
Total investment return based on net
asset value (a) 5.33% 5.67% 5.06% 3.20% 3.45%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (in millions) $326.5 $150.8 $104.4 $76.6 $73.2
Ratio to average net assets of:
Expenses, net of waivers and reimbursements .20% .20% .20% .20% .18%
Expenses, before waivers and reimbursements .35% .36% .38% .36% .49%
Net investment income (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 year, reinvestment of all
dividends at net asset value during the year and redemption on the last day of
the year.
(b) Net of expenses reimbursed or waived by the Adviser.
21
FINANCIAL HIGHLIGHTS (CONTINUED) ACM INSTITUTIONAL RESERVES
_______________________________________________________________________________
PER SHARE OPERATING PERFORMANCE FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<TABLE>
<CAPTION>
TAX-FREE PORTFOLIO
------------------------------------------------
YEAR ENDED APRIL 30,
------------------------------------------------
1997 1996 1995 1994 1993
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income .0347 .0372 .0326 .0240 .0287
Net unrealized loss on investments -0- -0- (0.0048) -0- -0-
Net increase in net asset value from
operations .0347 .0372 .0278 .0240 .0287
LESS: DISTRIBUTIONS
Dividends from net investment income (.0347) (.0372) (.0326) (.0240) (.0287)
ADD: CAPITAL CONTRIBUTION
Capital Contributed by the Adviser -0- -0- 0.0048 -0- -0-
Net asset value, end of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
TOTAL RETURNS
Total investment return based on net
asset value (a) 3.53% 3.79% 3.31%(b) 2.43% 2.92%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (in millions) $183.1 $183.6 $35.5 $35.6 $40.9
Ratio to average net assets of:
Expenses, net of waivers and reimbursements .20% .20% .20% .20% .18%
Expenses, before waivers and reimbursements .33% .48% .76% .69% .95%
Net investment income (c) 3.46% 3.73% 3.31% 2.40% 2.73%
</TABLE>
<TABLE>
<CAPTION>
TRUST PORTFOLIO
---------------------------------------------------
NOVEMBER 16,
1992 (D)
YEAR ENDED APRIL 30, THROUGH
-------------------------------------- APRIL 30,
1997 1996 1995 1994 1993
-------- -------- -------- -------- -----------
<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 .0492 .0527 .0479 .0309 .0144
LESS: DISTRIBUTIONS
Dividends from net investment income (.0492) (.0527) (.0479) (.0309) (.0144)
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 (a) 5.04% 5.41% 4.91% 3.14% 3.21%(e)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $175.7 $170.1 $109.2 $36.8 $5.3
Ratio to average net assets of:
Expenses, net of waivers and reimbursements .50% .50% .49% .14% -0-
Expenses, before waivers and reimbursements .57% .60% .75% 1.23% .45%(e)
Net investment income (c) 4.93% 5.28% 5.31% 3.15% 3.17%(e)
</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) Capital contributed by the Adviser had no material effect on net asset
value, and therefore, no effect on total return.
(c) Net of expenses reimbursed or waived by the Adviser.
(d) Commencement of operations.
(e) Annualized.
22
INDEPENDENT AUDITOR'S REPORT ACM INSTITUTIONAL RESERVES
_______________________________________________________________________________
TO THE BOARD OF DIRECTORS AND SHAREHOLDERS ACM INSTITUTIONAL RESERVES, INC.
We have audited the accompanying statements of assets and liabilities,
including the portfolio of investments of ACM Institutional Reserves--Prime,
Government, Tax-Free and Trust Portfolios as of April 30, 1997 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, 1997 by correspondence with the custodian. An audit also includes
assessing the account
ing 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--Prime, Government, Tax-Free and Trust Portfolios as of
April 30, 1997, 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
May 30, 1997
23
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.
24
