<PAGE>
ACM INSTITUTIONAL RESERVES, INC.
SEMI-ANNUAL REPORT
OCTOBER 31, 1996
<PAGE>
STATEMENT OF NET ASSETS
OCTOBER 31, 1996(UNAUDITED) ACM INSTITUTIONAL RESERVES - PRIME PORTFOLIO
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) SECURITY YIELD VALUE
- --------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMERCIAL PAPER--43.9%
Abbey National North America
$ 7,000 11/27/96 . . . . . . . . . . . . . . . 5.35% $ 6,972,953
AGA Capital, Inc.
10,000 11/25/96 * . . . . . . . . . . . . . . 5.29 9,964,733
18,700 11/04/96 * . . . . . . . . . . . . . . 5.32 18,691,710
Allianz of America Finance Corp.
4,500 12/05/96 * . . . . . . . . . . . . . . 5.28 4,477,560
12,700 11/20/96 * . . . . . . . . . . . . . . 5.30 12,664,475
Banca CRT Financial Corp.
5,000 11/01/96 . . . . . . . . . . . . . . . 5.32 5,000,000
BHF Finance Delaware, Inc.
3,000 12/19/96 . . . . . . . . . . . . . . . 5.48 2,978,080
BT Securities Inc.
2,000 11/18/96 . . . . . . . . . . . . . . . 5.43 1,994,872
Caisse d'Amortissement
10,300 12/13/96 . . . . . . . . . . . . . . . 5.33 10,235,951
Chase Manhattan Corp.
15,000 12/19/96 . . . . . . . . . . . . . . . 5.35 14,893,000
Chiao Tung Bank Co., Ltd.
5,000 2/24/97. . . . . . . . . . . . . . . . 5.42 4,913,431
2,500 1/08/97. . . . . . . . . . . . . . . . 5.47 2,474,169
Commonwealth Bank of Australia
15,000 12/02/96 . . . . . . . . . . . . . . . 5.33 14,931,154
Electricity Corp. of New Zealand Ltd.
5,000 1/30/97. . . . . . . . . . . . . . . . 5.35 4,933,125
Embarcadero Center Venture
1,500 12/02/96 (Two-A) . . . . . . . . . . . 5.33 1,493,115
16,250 11/07/96 (Two-B) . . . . . . . . . . . 5.40 16,235,375
Embarcadero Center Venture (Four)
10,000 11/19/96 . . . . . . . . . . . . . . . 5.32 9,973,400
Generale Bank, Inc.
25,000 12/30/96 . . . . . . . . . . . . . . . 5.35 24,780,799
Government Development Bank of Puerto Rico
3,000 11/25/96 . . . . . . . . . . . . . . . 5.27 2,989,460
10,000 12/12/96 . . . . . . . . . . . . . . . 5.29 9,939,753
8,785 11/18/96 . . . . . . . . . . . . . . . 5.30 8,763,013
IMI Funding Corp. (USA)
3,866 12/18/96 . . . . . . . . . . . . . . . 5.27 3,839,401
13,819 11/07/96 . . . . . . . . . . . . . . . 5.30 13,806,793
International Nederland Bank
3,100 12/16/96 . . . . . . . . . . . . . . . 5.35 3,079,269
International Securitization Corp.
3,965 12/20/96 * . . . . . . . . . . . . . . 5.60 3,934,778
Korean Development Bank
3,000 11/12/96 . . . . . . . . . . . . . . . 5.27 2,995,169
10,000 12/05/96 . . . . . . . . . . . . . . . 5.47 9,948,339
4,750 12/05/96 . . . . . . . . . . . . . . . 5.48 4,725,416
Kreditbank North America Finance Corp.
3,000 2/28/97. . . . . . . . . . . . . . . . 5.60 2,944,467
Merrill Lynch & Co.
7,130 11/04/96 . . . . . . . . . . . . . . . 5.27 7,126,869
10,000 11/07/96 . . . . . . . . . . . . . . . 5.30 9,991,167
Tasmanian Public Finance Corp.
4,621 12/16/96 . . . . . . . . . . . . . . . 5.36 4,590,039
20,000 12/12/96 . . . . . . . . . . . . . . . 5.51 19,874,494
------------
Total Commercial Paper
(amortized cost $276,156,329). . . . . 276,156,329
------------
CERTIFICATES OF DEPOSIT--29.5%
Abn Amro North America Finance
2,000 5.48%, 11/08/96. . . . . . . . . . . . 5.49 1,999,998
American Express Centurion Bank
10,000 5.33%, 11/05/96. . . . . . . . . . . . 5.33 10,000,000
Bank of Tokyo
15,000 5.60%, 12/13/96. . . . . . . . . . . . 5.60 15,000,000
18,000 5.66%, 12/27/96. . . . . . . . . . . . 5.66 18,000,000
Banque Nationale de Paris
5,000 5.33%, 12/09/96. . . . . . . . . . . . 5.31 5,000,072
5,000 5.31%, 12/06/96. . . . . . . . . . . . 5.30 5,000,048
Dai Ichi Kangyo Bank Ltd.
5,000 5.35%, 11/20/96. . . . . . . . . . . . 5.33 5,000,052
Den Danske Bank
10,000 5.29%, 11/04/96. . . . . . . . . . . . 5.30 9,999,979
Deutsche Bank
5,000 5.48%, 1/03/97 . . . . . . . . . . . . 5.65 4,997,819
5,000 5.53%, 4/02/97 . . . . . . . . . . . . 5.80 4,994,430
Hessische Landesbank
7,000 5.70%, 4/29/97 . . . . . . . . . . . . 5.15 6,996,621
Industrial Bank of Japan Ltd.
20,000 5.43%, 11/04/96. . . . . . . . . . . . 5.39 20,000,065
National Bank of Detroit
3,000 5.37%, 11/04/96. . . . . . . . . . . . 5.44 2,999,982
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) SECURITY YIELD VALUE
- --------------------------------------------------------------------------------------
<S> <C> <C> <C>
Norinchukin Bank
$ 10,000 5.55%, 1/15/97 . . . . . . . . . . . . 5.51% $ 10,000,718
Sanwa Bank
35,000 5.35%, 11/08/96. . . . . . . . . . . . 5.34 35,000,068
Societe Generale N.A., Inc.
5,000 5.45%, 2/07/97 . . . . . . . . . . . . 5.43 5,000,158
5,000 5.45%, 2/10/97 . . . . . . . . . . . . 5.46 4,999,966
Sumitomo Bank
9,000 5.35%, 11/18/96. . . . . . . . . . . . 5.35 9,000,000
12,000 5.45%, 11/04/96. . . . . . . . . . . . 5.34 12,000,105
------------
Total Certificates of Deposit
(amortized cost $185,990,081). . . . . 185,990,081
------------
CORPORATE OBLIGATIONS--10.5%
Abbey National Treasury Services
1,400 7.80%, 12/16/96. . . . . . . . . . . . 5.65 1,403,344
Beta Finance, Inc.
5,000 5.92%, 6/06/97 * . . . . . . . . . . . 6.00 4,997,705
Eksportfinans
5,000 5.50%, 2/17/97 . . . . . . . . . . . . 5.25 5,003,072
General Electric Capital Corp.
10,000 5.53%, 6/27/97 FRN . . . . . . . . . . 5.50 10,003,208
Goldman Sachs Group LP
10,000 5.54%, 1/15/97 FRN . . . . . . . . . . 5.54 10,000,000
Salts III Cayman Island Corp.
30,000 5.68%, 1/23/97 * . . . . . . . . . . . 5.68 30,000,000
Toyota Motor Credit Corp.
5,000 5.00%, 2/26/97 . . . . . . . . . . . . 5.10 4,998,162
------------
Total Corporate Obligations
(amortized cost $66,405,491) . . . . . 66,405,491
------------
U.S. GOVERNMENT AND AGENCY OBLIGATIONS--9.7%
Federal Farm Credit Bank
7,000 5.57%, 8/03/98 FRN . . . . . . . . . . 5.62 6,994,239
Federal Home Loan Bank
5,000 5.31%, 11/13/96 FRN. . . . . . . . . . 5.38 4,999,889
Federal National Mortgage Association
5,000 5.17%, 1/27/97 FRN . . . . . . . . . . 5.29 4,998,617
10,000 5.42%, 8/25/97 FRN . . . . . . . . . . 5.46 9,996,857
18,850 5.47%, 11/01/96. . . . . . . . . . . . 5.65 18,850,000
Student Loan Marketing Association
5,000 5.53%, 1/21/98 FRN . . . . . . . . . . 5.58 4,998,245
U.S. Treasury Note
10,000 6.63%, 3/31/97 . . . . . . . . . . . . 5.15 10,055,106
------------
Total U.S. Government and Agency Obligations
(amortized cost $60,892,953) . . . . . 60,892,953
------------
BANK OBLIGATIONS--4.3%
Bank of New York
7,000 5.60%, 3/24/97 . . . . . . . . . . . . 5.79 6,990,829
JP Morgan & Co.
10,000 5.43%, 8/15/97 . . . . . . . . . . . . 5.48 9,996,220
Morgan Guaranty Trust Co.
5,000 5.50%, 1/08/97 . . . . . . . . . . . . 5.50 5,000,000
Wachovia Bank
5,000 5.30%, 1/03/97 FRN . . . . . . . . . . 5.40 4,999,204
------------
Total Bank Obligations
(amortized cost $26,986,253) . . . . . 26,986,253
------------
PROMISSORY NOTES--2.7%
Goldman Sachs Group LP
10,000 5.63%, 3/13/97 FRN . . . . . . . . . . 5.63 10,000,000
7,000 5.38%, 2/14/97 FRN . . . . . . . . . . 5.38 7,000,000
------------
Total Promissory Notes
(amortized cost $17,000,000) . . . . . 17,000,000
------------
TOTAL INVESTMENTS--100.6%
(amortized cost $633,431,107). . . . . 633,431,107
Other assets less liabilities--(0.6%). . (3,812,868)
------------
NET ASSETS--100%
(offering and redemption price of
$1.00 per share; 629,808,425 shares
outstanding) . . . . . . . . . . . . . $629,618,239
------------
------------
- -------------------------------------------------------------------------------------
</TABLE>
* Restricted security
Glossary
FRN Floating Rate Note
See notes to financial statements.
<PAGE>
STATEMENT OF NET ASSETS
October 31, 1996 (unaudited) ACM Institutional Reserves - Government Portfolio
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) SECURITY YIELD VALUE
- --------------------------------------------------------------------------------------
<S> <C> <C> <C>
U.S. GOVERNMENT &
AGENCY OBLIGATIONS--72.1%
FEDERAL HOME LOAN
MORTGAGE CORP.--22.3%
$ 10,000 11/19/96 . . . . . . . . . . . . . . . 5.18% $ 9,974,100
2,000 12/24/96 . . . . . . . . . . . . . . . 5.18 1,984,748
5,000 11/21/96 . . . . . . . . . . . . . . . 5.20 4,985,556
2,000 11/13/96 . . . . . . . . . . . . . . . 5.21 1,996,527
5,000 12/03/96 . . . . . . . . . . . . . . . 5.21 4,976,844
5,000 12/04/96 . . . . . . . . . . . . . . . 5.21 4,976,121
5,000 12/16/96 . . . . . . . . . . . . . . . 5.21 4,967,437
3,000 12/06/96 . . . . . . . . . . . . . . . 5.44 2,984,133
------------
36,845,466
------------
FEDERAL FARM CREDIT BANK--13.6%
7,500 4.55%, 12/06/96 . . . . . . . . . . . 5.65 7,491,552
5,000 4.95%, 3/03/97 . . . . . . . . . . . . 5.00 4,999,028
2,500 5.28%, 5/20/97 FRN . . . . . . . . . . 5.40 2,498,401
7,500 5.41%, 6/26/97 FRN . . . . . . . . . . 5.46 7,497,663
------------
22,486,644
------------
FEDERAL NATIONAL MORTGAGE
ASSOCIATION--11.5%
2,100 1/07/97. . . . . . . . . . . . . . . . 5.23 2,079,560
2,950 1/07/97. . . . . . . . . . . . . . . . 5.28 2,921,011
4,000 5.45%, 9/12/97 FRN . . . . . . . . . . 5.52 3,998,601
5,000 5.46%, 6/11/97 FRN . . . . . . . . . . 5.51 4,998,527
5,000 5.61%, 10/15/97 FRN. . . . . . . . . . 5.61 5,000,540
------------
18,998,239
------------
STUDENT LOAN MARKETING
ASSOCIATION--10.2%
2,000 12/18/96 . . . . . . . . . . . . . . . 5.34 1,986,057
4,500 5.36%, 7/12/99 FRN . . . . . . . . . . 5.76 4,455,328
4,000 5.53%, 1/21/98 FRN . . . . . . . . . . 5.56 3,998,596
4,000 5.58%, 1/23/97 FRN . . . . . . . . . . 5.53 4,001,997
2,500 5.87%, 6/30/97 FRN . . . . . . . . . . 5.87 2,500,948
------------
16,942,926
------------
U.S. TREASURY NOTES--7.3%
5,000 6.88%, 2/28/97 . . . . . . . . . . . . 5.33 5,023,242
7,000 7.50%, 1/31/97 . . . . . . . . . . . . 5.12 7,039,340
------------
12,062,582
------------
FEDERAL HOME LOAN BANK--7.2%
1,500 1/23/97. . . . . . . . . . . . . . . . 5.28 1,481,740
2,505 11/20/96 . . . . . . . . . . . . . . . 5.38 2,497,894
1,500 5.29%, 2/06/97 . . . . . . . . . . . . 5.30 1,499,940
3,000 5.30%, 3/05/97 . . . . . . . . . . . . 5.42 2,996,894
2,500 5.31%, 11/13/96 FRN. . . . . . . . . . 5.38 2,499,944
1,000 5.38%, 3/14/97 . . . . . . . . . . . . 5.63 998,688
------------
11,975,100
------------
Total U.S. Government &
Agency Obligations
(amortized cost $119,310,957). . . . . 119,310,957
------------
REPURCHASE AGREEMENT--27.3%
First Boston Corp.
8,000 5.23%, dated 10/17/96, due
11/07/96 in the amount of
$8,024,407 (cost $8,000,000;
collateralized by $9,342,000
FNMA, 6.00%, 7/01/24,
value $8,365,168). . . . . . . . . . . 5.23 8,000,000
Goldman Sachs & Co.
7,000 5.29%, dated 10/21/96, due
12/20/96 in the amount of
$7,061,717 (cost $7,000,000;
collateralized by $8,291,000
FHLMC, 6.09%, 12/01/34,
value $7,302,163). . . . . . . . . . . 5.29 7,000,000
Lehman Brothers
7,000 5.25%, dated 10/24/96, due
11/25/96 in the amount of
$7,032,667 (cost $7,000,000;
collateralized by $7,107,000
FNMA, 8.00%, 7/01/26,
value $7,184,430). . . . . . . . . . . 5.25 7,000,000
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) SECURITY YIELD VALUE
- --------------------------------------------------------------------------------------
<S> <C> <C> <C>
Merrill Lynch
$ 7,000 5.27%, dated 10/10/96,
due 11/13/96 in the amount
of $7,034,841 (cost $7,000,000;
collateralized by $7,318,000
FNMA, 8.00%, 7/01/26, value
$7,332,326). . . . . . . . . . . . . . 5.27% $ 7,000,000
Morgan Stanley Group, Inc.
8,000 5.26%, dated 10/17/96, due
11/18/96 in the amount of
$8,037,404 (cost $8,000,000;
collateralized by $11,195,000
FHLMC, 5.50%, 6/01/99, value
$8,138,767). . . . . . . . . . . . . . 5.26 8,000,000
Prudential Securities, Inc.
8,000 5.25%, dated 10/28/96, due
11/21/96 in the amount of
$8,028,000 (cost $8,000,000;
collateralized by $11,345,000
GNMA, 8.00%, 6/01/23, value
$8,211,759). . . . . . . . . . . . . . 5.25 8,000,000
State Street Bank and Trust Co.
200 5.45%, dated 10/31/96, due
11/01/96 in the amount of
$200,030 (cost $200,000;
collateralized by $205,000
USTN, 6.375%, 3/31/01, value
$208,707). . . . . . . . . . . . . . . 5.45 200,000
------------
Total Repurchase Agreement
(amortized cost $45,200,000) . . . . . 45,200,000
------------
TOTAL INVESTMENTS--99.4%
(amortized cost $164,510,957). . . . . 164,510,957
Other assets less liabilities--0.6%. . . 1,051,151
------------
NET ASSETS--100%
(offering and redemption price of
$1.00 per share; 165,510,957 shares
outstanding) . . . . . . . . . . . . . $165,562,108
------------
------------
- -------------------------------------------------------------------------------------
</TABLE>
Glossary
FRN Floating Rate Note
See notes to financial statements.
<PAGE>
STATEMENT OF NET ASSETS
OCTOBER 31, 1996(UNAUDITED) ACM INSTITUTIONAL RESERVES - TAX-FREE PORTFOLIO
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) SECURITY YIELD VALUE
- --------------------------------------------------------------------------------------
<S> <C> <C> <C>
MUNICIPAL BONDS--61.6%
ARIZONA--1.6%
Pinal County
(Magma Copper Project)
Series '92 VRDN*
$ 2,800 12/01/11 . . . . . . . . . . . . . . . 3.55% $ 2,800,000
------------
CALIFORNIA--8.2%
Alameda County TRAN
Board of Education Series '96
3,640 7/01/97 . . . . . . . . . . . . . . . 4.03 3,650,794
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 1,607,062
South Coast TRAN
Local Agency Pooled Loan Series '96A
4,000 6/30/97 . . . . . . . . . . . . . . . 4.07 4,017,235
------------
14,275,091
------------
COLORADO--0.3%
Arapahoe County COP
AMBAC
610 12/01/96 . . . . . . . . . . . . . . . 3.80 610,778
DISTRICT OF COLUMBIA--3.2%
District of Columbia GO
Series '92 A-4 VRDN*
2,300 10/01/07 . . . . . . . . . . . . . . . 3.70 2,300,000
District of Columbia GO
Series '92 A-5 VRDN*
1,300 10/01/07 . . . . . . . . . . . . . . . 3.70 1,300,000
District of Columbia HFA MFHR
(McLean Apts.) Series '85A VRDN*
2,000 12/01/05 . . . . . . . . . . . . . . . 3.65 2,000,000
------------
5,600,000
------------
GEORGIA--3.8%
Bartow County TAN
(School District) Series '96
4,995 12/31/96 . . . . . . . . . . . . . . . 3.75 4,994,488
College Park IDR
(Wynefield I Project) AMT VRDN*
1,700 12/01/16 . . . . . . . . . . . . . . . 3.70 1,700,000
------------
6,694,488
------------
HAWAII--3.7%
Hawaii State Housing Finance & Dev. Corp.
(Kamakee Vista) Series '90A VRDN*
4,600 7/01/25. . . . . . . . . . . . . . . . 3.60 4,600,000
Hawaii State Housing Finance
& Dev. Corp.
(Rental Housing System)
Series '90B VRDN*
1,900 7/01/25 . . . . . . . . . . . . . . . 3.60 1,900,000
------------
6,500,000
------------
ILLINOIS--6.0%
Elmhurst Hospital Revenue
(Joint Comm. Health Org.)
Series '88 VRDN*
1,000 7/01/18. . . . . . . . . . . . . . . . 3.75 1,000,000
Illinois Dev. Finance Auth.
(Bridgestone Inc. Project) VRDN*
3,800 7/01/00 . . . . . . . . . . . . . . . 3.75 3,800,000
Vernon Hills IDR
(Kinder Care Center) VRDN*
550 2/01/01 . . . . . . . . . . . . . . . 3.75 550,000
Village of Lisle HFA MFHR
Series '85A VRDN*
3,970 4/01/19. . . . . . . . . . . . . . . . 3.60 3,970,000
West Chicago IDR
(Acme Printing Co.)
Series '89 AMT VRDN*
1,100 5/01/99. . . . . . . . . . . . . . . . 4.13 1,100,000
------------
10,420,000
------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) SECURITY YIELD VALUE
- --------------------------------------------------------------------------------------
<S> <C> <C> <C>
INDIANA--2.3%
Indiana Health Facility Auth.
Capital Access Designated Pool
Series '91 VRDN*
$ 2,025 8/01/06 . . . . . . . . . . . . . . . 3.55% $ 2,025,000
Seymour Econ. Dev.
(Kobelco Metal Powder Co.)
Series '87 AMT VRDN*
2,000 12/01/97 . . . . . . . . . . . . . . . 4.05 2,000,000
------------
4,025,000
------------
MAINE--1.3%
Maine Finance Auth.
Economic Dev. Rev.
Series B AMT VRDN*
2,225 12/01/06 . . . . . . . . . . . . . . . 3.80 2,225,000
------------
MARYLAND--1.3%
Maryland Health &
Education Facilities
(Loyola College Issue)
Series '85 VRDN*
2,200 10/01/10 . . . . . . . . . . . . . . . 3.60 2,200,000
------------
MINNESOTA--0.3%
Eden Prairie IDA
(Kinder Care Project)
Series C VRDN*
465 2/01/01. . . . . . . . . . . . . . . . 3.75 465,000
------------
MISSOURI--0.3%
Blue Springs IDA
(Kinder Care Project)
Series C VRDN*
540 2/01/01. . . . . . . . . . . . . . . . 3.75 540,000
------------
MONTANA--1.0%
Forsyth Electric Rev.
(Portland General Electric)
Series C VRDN*
1,700 6/01/13. . . . . . . . . . . . . . . . 3.55 1,700,000
------------
NEW HAMPSHIRE--3.3%
Nashua Housing Auth. MFHR
(Clocktower Project) AMT VRDN*
176 10/20/99 . . . . . . . . . . . . . . . 3.65 176,000
Nashua Housing Auth. MFHR
(Clocktower Project) AMT VRDN*
626 10/20/06 . . . . . . . . . . . . . . . 3.65 626,000
Nashua Housing Auth. MFHR
(Clocktower Project) AMT VRDN*
4,000 10/20/28 . . . . . . . . . . . . . . . 3.65 4,000,000
New Hampshire IDA
(Connecticut Light & Power Co.)
Series '86 AMT VRDN*
1,000 11/01/16 . . . . . . . . . . . . . . . 3.65 1,000,000
------------
5,802,000
------------
NEW JERSEY--5.4%
Jersey City
School Promissory Note
1,000 3/07/97. . . . . . . . . . . . . . . . 3.60 1,000,657
Jersey City BAN
3,500 3/27/97. . . . . . . . . . . . . . . . 3.80 3,509,684
Jersey City BAN
3,500 9/26/97. . . . . . . . . . . . . . . . 4.05 3,513,634
Pleasantville School District
Temporary Notes
1,500 8/28/97. . . . . . . . . . . . . . . . 4.00 1,502,950
------------
9,526,925
------------
NEW MEXICO--2.0%
New Mexico HFA SFMR
Series '96 F-1 Putable
3,445 8/28/97. . . . . . . . . . . . . . . . 4.00 3,445,000
------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) SECURITY YIELD VALUE
- --------------------------------------------------------------------------------------
<S> <C> <C> <C>
NEW YORK--3.0%
New York IDA Airport Revenue
(Nippon Cargo Airlines Co.)
Series '92 AMT VRDN*
$ 2,800 11/01/15 . . . . . . . . . . . . . . . 4.15% $ 2,800,000
New York RAN
Series A
2,500 4/15/97. . . . . . . . . . . . . . . . 3.70 2,508,866
------------
5,308,866
------------
NORTH CAROLINA--0.9%
Lenoir County IDR PCR
(Carolina Energy Project) AMT VRDN*
1,500 7/01/22. . . . . . . . . . . . . . . . 3.70 1,500,000
------------
PENNSYLVANIA--1.4%
Montgomery County IDA
(Kinder Care Project) Series D VRDN*
400 10/01/00 . . . . . . . . . . . . . . . 3.75 400,000
Philadelphia GO TRAN
Series '96A
2,000 6/30/97. . . . . . . . . . . . . . . . 3.95 2,006,977
------------
2,406,977
------------
RHODE ISLAND--0.7%
Rhode Island Housing &
Mortgage Finance Corp.
(Homeownership Opportunity)
Series 19C Putable
1,255 1/30/97. . . . . . . . . . . . . . . . 3.45 1,255,000
------------
SOUTH DAKOTA--1.1%
South Dakota HFA SFMR
(Homeownership Mortgage) Series F
1,000 5/01/97. . . . . . . . . . . . . . . . 3.78 1,002,250
South Dakota HFA SFMR
(Homeownership Mortgage) Series G
1,000 5/01/97. . . . . . . . . . . . . . . . 3.90 1,001,677
------------
2,003,927
------------
TEXAS--4.5%
Harris County IDR
(Nippon Pigment USA Project)
Series '87 AMT VRDN*
1,500 7/01/02 . . . . . . . . . . . . . . . 4.00 1,500,000
Midlothian Industrial Dev. Corp.
(Box-Crow Cement Co.) VRDN*
2,300 12/01/09 . . . . . . . . . . . . . . . 3.75 2,300,000
Texas GO TRAN
Series '96
4,050 8/29/97. . . . . . . . . . . . . . . . 4.00 4,073,971
------------
7,873,971
------------
WASHINGTON--5.1%
Washington Public Power Supply
(Nuclear Project #1)
Series '93 1A1 VRDN*
9,000 7/01/17. . . . . . . . . . . . . . . . 3.55 9,000,000
------------
WISCONSIN--0.9%
Wausau PCR
(Minnesota Mining &
Manufacturing) VRDN*
1,600 8/01/17. . . . . . . . . . . . . . . . 3.82 1,600,000
------------
Total Municipal Bonds
(amortized cost $107,777,486). . . . . 107,778,023
------------
COMMERCIAL PAPER--38.4%
ALABAMA--2.9%
Mobile Infirmary Assoc.
Series '92A
5,000 11/07/96 . . . . . . . . . . . . . . . 3.55 5,000,000
------------
ARIZONA--1.7%
Salt River Project
Agricultural Imp. & Power District
3,000 11/12/96 . . . . . . . . . . . . . . . 3.55 3,000,000
------------
FLORIDA--1.4%
Sarasota Public Hospital
District Hospital Revenue
(Sarasota Memorial Hospital)
Series A
2,450 11/14/96 . . . . . . . . . . . . . . . 3.55 2,450,000
------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) SECURITY YIELD VALUE
- --------------------------------------------------------------------------------------
<S> <C> <C> <C>
INDIANA--5.7%
Jasper County
(N. Indiana Public Service
Project) Series '88A
$ 1,000 12/06/96 . . . . . . . . . . . . . . . 3.55% $ 1,000,000
Jasper County
(N. Indiana Public Service
Project) Series '88C
4,500 12/09/96 . . . . . . . . . . . . . . . 3.75 4,500,000
Jasper County
(N. Indiana Public Service
Project) Series '88C
4,500 12/10/96 . . . . . . . . . . . . . . . 3.75 4,500,000
------------
10,000,000
------------
MASSACHUSETTS--5.1%
Massachusetts Bay Trans. Auth.
Series C
6,000 11/05/96 . . . . . . . . . . . . . . . 3.60 6,000,000
Massachusetts Water Res. Auth.
3,000 11/06/96 . . . . . . . . . . . . . . . 3.55 3,000,000
------------
9,000,000
------------
NORTH CAROLINA--4.9%
North Carolina Power Agency
(Catawba Project #1)
3,000 11/22/96 . . . . . . . . . . . . . . . 3.60 2,999,615
North Carolina Power Agency
(Catawba Project #1)
1,500 12/11/96 . . . . . . . . . . . . . . . 3.70 1,500,000
North Carolina Power Agency
(Eastern Muni Power)
4,000 11/05/96 . . . . . . . . . . . . . . . 3.60 4,000,000
------------
8,499,615
------------
SOUTH CAROLINA--3.4%
South Carolina Public Service Auth.
3,000 11/13/96 . . . . . . . . . . . . . . . 3.55 3,000,000
South Carolina Public Service Auth.
3,000 11/18/96 . . . . . . . . . . . . . . . 3.55 3,000,000
------------
6,000,000
------------
TEXAS--6.5%
Dallas Area Rapid Transit
Sales Series A
7,000 11/08/96 . . . . . . . . . . . . . . . 3.55 7,000,000
Dallas Area Rapid Transit
Sales Series A
1,000 12/11/96 . . . . . . . . . . . . . . . 3.70 1,000,000
Port of Corpus Christi PCR
(Koch Refining Co.) Series '95
3,410 12/09/96 . . . . . . . . . . . . . . . 3.70 3,410,000
------------
11,410,000
------------
VIRGINIA--0.6%
Peninsula Port Authority
(Dominion Terminal Project)
Series '87A
1,000 11/08/96 . . . . . . . . . . . . . . . 3.65 1,000,000
------------
WISCONSIN--1.6%
Wisconsin Health & Education Auth.
(Alexian Village of Milwaukee)
Series '88
2,800 11/21/96 . . . . . . . . . . . . . . . 3.65 2,800,000
------------
PUERTO RICO--4.6%
Puerto Rico Govt. Dev. Bank
Series '96
3,000 11/15/96 . . . . . . . . . . . . . . . 3.55 3,000,000
Puerto Rico Govt. Dev. Bank
Series '96
2,000 12/12/96 . . . . . . . . . . . . . . . 3.60 2,000,000
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) SECURITY YIELD VALUE
- --------------------------------------------------------------------------------------
<S> <C> <C> <C>
Puerto Rico Govt. Dev. Bank
Series '96
$ 3,000 2/14/97. . . . . . . . . . . . . . . . 3.65% $ 3,000,000
------------
8,000,000
------------
Total Commercial Paper
(amortized cost $67,158,680) . . . . . 67,159,615
------------
TOTAL INVESTMENTS--100.0%
(amortized cost $174,936,166). . . . . 174,937,638
Other assets less liabilities--0.0%. . . (38,632)
------------
NET ASSETS--100%
(offering and redemption price of
$1.00 per share; 174,977,217
shares outstanding). . . . . . . . . . $174,899,006
------------
------------
- -------------------------------------------------------------------------------------
</TABLE>
+ All securities either mature or their interest rate changes in one year or
less.
* Variable Rate Demand Notes (VRDN) are instruments whose interest rates
change on a specified date (such as a coupon date or interest payment date)
or whose interest rates vary with changes in a designated base rate (such
as the prime interest rate). These instruments are payable on demand and
are secured by letters of credit or other credit support agreements from
major banks. Periodic Put Bonds (PPB) are payable on demand quarterly,
semi-annually or annually and their interest rates change less frequently
than rates on Variable Rate Demand Notes.
Glossary of Terms:
AMBAC American Municipal Bond Assurance Corporation
AMT Alternative Minimum Tax
BAN Bond Anticipation Note
COP Certificate of Participation
FSA Financial Security Assurance, Inc.
GO General Obligation
HFA Housing Finance Agency/Authority
IDA Industrial Development Authority
IDR Industrial Development Revenue
MFHR Multi-Family Housing Revenue
PCR Pollution Control Revenue
RAN Revenue Anticipation Note
SFMR Single Family Mortgage Revenue
TAN Tax Anticipation Note
TRAN Tax & Revenue Anticipation Note
VRDN Variable Rate Demand Note
See notes to financial statements.
<PAGE>
STATEMENT OF NET ASSETS
October 31, 1996 (unaudited) ACM Institutional Reserves - Trust Portfolio
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT
(000) SECURITY YIELD VALUE
- --------------------------------------------------------------------------------
U.S. GOVERNMENT & AGENCY OBLIGATIONS--74.3%
STUDENT LOAN MARKETING ASSOCIATION--17.1%
$ 2,500 5.37%, 9/03/97 FRN . . . . . . . . . . . . . 5.43% $ 2,498,786
22,300 5.53%, 11/20/97 FRN. . . . . . . . . . . . . 5.48 22,313,655
2,960 5.58%, 11/01/96 FRN. . . . . . . . . . . . . 5.38 2,960,000
2,500 5.87%, 6/30/97 FRN . . . . . . . . . . . . . 5.87 2,500,948
3,000 12/18/96 . . . . . . . . . . . . . . . . . . 5.34 2,979,085
------------
33,252,474
------------
FEDERAL HOME LOAN MORTGAGE CORP.--16.1%
4,000 11/19/96 . . . . . . . . . . . . . . . . . . 5.17 3,989,660
500 11/21/96 . . . . . . . . . . . . . . . . . . 5.18 2,492,806
5,000 11/21/96 . . . . . . . . . . . . . . . . . . 5.20 2,991,333
5,000 12/03/96 . . . . . . . . . . . . . . . . . . 5.21 4,976,844
3,000 12/04/96 . . . . . . . . . . . . . . . . . . 5.21 2,985,673
5,000 11/01/96 . . . . . . . . . . . . . . . . . . 5.36 5,000,000
5,000 12/04/96 . . . . . . . . . . . . . . . . . . 5.41 4,975,204
4,000 11/01/96 . . . . . . . . . . . . . . . . . . 5.53 4,000,000
------------
31,411,520
------------
FEDERAL HOME LOAN BANK--12.3%
1,500 5.29%, 2/06/97 . . . . . . . . . . . . . . . 5.30 1,499,940
3,000 5.30%, 3/05/97 . . . . . . . . . . . . . . . 5.42 2,996,894
2,500 5.31%, 11/13/96 FRN. . . . . . . . . . . . . 5.38 2,499,944
1,000 5.38%, 3/14/97 . . . . . . . . . . . . . . . 5.63 998,688
3,650 1/21/97 . . . . . . . . . . . . . . . . . . 5.28 3,606,638
7,500 11/12/96 . . . . . . . . . . . . . . . . . . 5.33 7,487,786
5,000 11/20/96 . . . . . . . . . . . . . . . . . . 5.38 4,985,816
------------
24,075,706
------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION--12.3%
5,000 5.46%, 6/11/97 FRN . . . . . . . . . . . . . 5.51 4,998,527
5,000 5.61%, 10/15/97 FRN. . . . . . . . . . . . . 5.61 5,000,540
2,000 1/07/97 . . . . . . . . . . . . . . . . . . 5.23 1,980,533
5,000 1/13/97 . . . . . . . . . . . . . . . . . . 5.24 4,946,872
5,000 2/19/97 . . . . . . . . . . . . . . . . . . 5.29 4,919,181
2,215 12/11/96 . . . . . . . . . . . . . . . . . . 5.37 2,201,784
------------
24,047,437
------------
FEDERAL FARM CREDIT BANK--10.3%
7,500 4.55%, 12/06/96 . . . . . . . . . . . . . . 5.65 7,491,551
2,500 5.28%, 5/20/97 FRN . . . . . . . . . . . . . 5.40 2,498,401
7,500 5.41%, 6/26/97 FRN . . . . . . . . . . . . . 5.46 7,497,663
2,700 12/03/96 . . . . . . . . . . . . . . . . . . 5.37 2,687,112
------------
20,174,727
------------
U.S. TREASURY NOTES--6.2%
5,000 6.88%, 2/28/97 . . . . . . . . . . . . . . . 5.38 5,023,242
7,000 7.50%, 1/31/97 . . . . . . . . . . . . . . . 5.12 7,039,340
------------
12,062,582
------------
Total U.S. Government & Agency Obligations
(amortized cost $145,024,446). . . . . . . . . . 145,024,446
------------
REPURCHASE AGREEMENT--25.0%
FIRST BOSTON CORP.
8,000 5.23%, dated 10/17/96, due 11/07/96 in the
amount of $8,024,407 (cost $8,000,000;
collateralized by $9,342,000 FNMA, 6.00%,
7/01/24, value $8,365,168) . . . . . . . . . 5.23 8,000,000
GOLDMAN SACHS & CO.
8,000 5.29%, dated 10/21/96, due 12/20/96 in the
amount of $8,070,533 (cost $8,000,000;
collateralized by $9,475,000 FHLMC, 6.09%,
12/01/34, value $8,344,952) . . . . . . . . 5.29 8,000,000
LEHMAN BROTHERS
8,000 5.25%, dated 10/24/96, due 11/25/96 in the
amount of $8,037,333 (cost $8,000,000;
collateralized by $8,013,000 FNMA, 8.00%,
10/01/11, value $8,165,907) . . . . . . . . 5.25 8,000,000
MERRILL LYNCH
8,000 5.27%, dated 10/10/96, due 11/13/96 in the
amount of $8,039,818 (cost $8,000,000;
collateralized by $8,363,000 FNMA, 8.00%,
7/01/26, value $8,379,371) . . . . . . . . . 5.27 8,000,000
<PAGE>
PRINCIPAL
AMOUNT
(000) SECURITY YIELD VALUE
- --------------------------------------------------------------------------------
MORGAN STANLEY GROUP, INC.
$ 8,000 5.26%, dated 10/17/96, due 11/18/96 in the
amount of $8,037,404 (cost $8,000,000;
collateralized by $11,195,000 FHLMC, 5.50%,
6/01/99, value $8,138,767) . . . . . . . . . 5.26% $ 8,000,000
PRUDENTIAL SECURITIES, INC.
8,000 5.25%, dated 10/28/96, due 11/21/96 in the
amount of $8,028,000 (cost $8,000,000;
collateralized by $11,345,000 GNMA, 8.00%,
6/01/23, value $8,211,754) . . . . . . . . . 5.25 8,000,000
STATE STREET BANK AND TRUST CO.
700 5.45%, dated 10/31/96, due 11/01/96 in the
amount of $700,106 (cost $700,000;
collateralized by $705,000 USTN, 6.375%,
3/31/01, value $717,750) . . . . . . . . . . 5.45 700,000
------------
Total Repurchase Agreement
(amortized cost $48,700,000) . . . . . . . . . . 48,700,000
------------
TOTAL INVESTMENTS--99.3%
(amortized cost $193,724,446). . . . . . . . . . 193,724,446
Other assets less liabilities--0.7%. . . . . . . 1,280,336
------------
NET ASSETS--100%
(offering and redemption price of
$1.00 per share; 195,057,375 shares
outstanding) . . . . . . . . . . . . . . . . . . $195,004,782
------------
------------
- --------------------------------------------------------------------------------
Glossary
FRN Floating Rate Note.
See notes to financial statements.
<PAGE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED OCTOBER 31, 1996 (UNAUDITED)
ACM INSTITUTIONAL RESERVES - PRIME PORTFOLIO
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
INVESTMENT INCOME
Interest . . . . . . . . . . . . . . . . . $ 16,862,626
EXPENSES
Advisory fee (Note B). . . . . . . . . . . $ 616,027
Registration fees. . . . . . . . . . . . . 99,046
Custodian fees . . . . . . . . . . . . . . 63,437
Transfer agency. . . . . . . . . . . . . . 12,580
Audit and legal fees . . . . . . . . . . . 8,004
Directors` fees. . . . . . . . . . . . . . 2,576
Printing . . . . . . . . . . . . . . . . . 1,992
Miscellaneous. . . . . . . . . . . . . . . 6,653
-------------
Total expenses . . . . . . . . . . . . . . 810,315
Less: expense reimbursement. . . . . . . . (194,288) 616,027
------------- ------------
Net investment income. . . . . . . . . . . 16,246,599
REALIZED LOSS ON INVESTMENTS
Net realized loss on investments . . . . .
. . . . . . . . . . . . . . . . . . . . . (4,454)
------------
NET INCREASE IN NET ASSETS FROM OPERATIONS . $ 16,242,145
------------
------------
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SIX MONTHS ENDED
OCTOBER 31, 1996 YEAR ENDED
(UNAUDITED) APRIL 30, 1996
----------- --------------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income. . . . . . . . . . . $ 16,246,599 $ 18,016,970
Net realized loss on investments . . . . . (4,454) (67,682)
------------- -------------
Net increase in net assets from operations 16,242,145 17,949,288
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income. . . . . . . . . . . (16,246,599) (18,016,970)
CAPITAL STOCK TRANSACTIONS
Net increase . . . . . . . . . . . . . . . 136,303,470 295,597,513
------------- -------------
Total increase . . . . . . . . . . . . . . 136,299,016 295,529,831
NET ASSETS
Beginning of period. . . . . . . . . . . . 493,319,223 197,789,392
------------- -------------
End of period. . . . . . . . . . . . . . . $ 629,618,239 $ 493,319,223
------------- -------------
------------- -------------
- --------------------------------------------------------------------------------
See notes to financial statements.
<PAGE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED OCOTBER 31, 1996 (UNAUDITED)
ACM INSTITUTIONAL RESERVES - GOVERNMENT PORTFOLIO
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
INVESTMENT INCOME
Interest . . . . . . . . . . . . . . . . . $ 4,636,128
EXPENSES
Advisory fee (Note B). . . . . . . . . . . $ 171,759
Registration fees. . . . . . . . . . . . . 41,366
Custodian fees . . . . . . . . . . . . . . 36,030
Transfer agency. . . . . . . . . . . . . . 11,620
Audit and legal fees . . . . . . . . . . . 6,685
Directors' fees. . . . . . . . . . . . . . 2,576
Amortization of organization expenses. . . 2,075
Printing . . . . . . . . . . . . . . . . . 366
Miscellaneous. . . . . . . . . . . . . . . 4,785
------------
Total expenses . . . . . . . . . . . . . . 277,262
Less: expense reimbursement. . . . . . . . (105,503) 171,759
------------ -------------
Net investment income. . . . . . . . . . . 4,464,369
REALIZED LOSS ON INVESTMENTS
Net realized loss on investments . . . . . (2,347)
-------------
NET INCREASE IN NET ASSETS FROM OPERATIONS . $ 4,462,022
-------------
-------------
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SIX MONTHS ENDED
OCTOBER 31, 1996 YEAR ENDED
(UNAUDITED) APRIL 30, 1996
---------- --------------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income. . . . . . . . . . . $ 4,464,369 $ 8,116,764
Net realized loss on investments . . . . . (2,347) (44,374)
------------- -------------
Net increase in net assets from operations 4,462,022 8,072,390
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income. . . . . . . . . . . (4,464,369) (8,116,764)
CAPITAL STOCK TRANSACTIONS
Net increase . . . . . . . . . . . . . . . 14,748,277 46,450,680
------------- -------------
Total increase . . . . . . . . . . . . . . 14,745,930 46,406,306
NET ASSETS
Beginning of period. . . . . . . . . . . . 150,816,178 104,409,872
------------- -------------
End of period. . . . . . . . . . . . . . . $ 165,562,108 $ 150,816,178
------------- -------------
------------- -------------
- --------------------------------------------------------------------------------
See notes to financial statements.
<PAGE>
STATEMENT OF OPERATIONS
ACM INSTITUTIONAL RESERVES - TAX-FREE PORTFOLIO
SIX MONTHS ENDED OCTOBER 31, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
INVESTMENT INCOME
Interest . . . . . . . . . . . . . . . . . $ 3,829,282
EXPENSES
Advisory fee (Note B). . . . . . . . . . . $ 208,240
Registration fees. . . . . . . . . . . . . 56,775
Custodian fees . . . . . . . . . . . . . . 41,000
Transfer agency. . . . . . . . . . . . . . 10,395
Audit and legal fees . . . . . . . . . . . 7,481
Directors' fees. . . . . . . . . . . . . . 2,576
Amortization of organization expenses. . . 2,075
Printing . . . . . . . . . . . . . . . . . 1,012
Miscellaneous. . . . . . . . . . . . . . . 3,312
-------------
Total expenses . . . . . . . . . . . . . . 332,866
Less: expense reimbursement. . . . . . . . (124,626) 208,240
------------- -------------
Net investment income. . . . . . . . . . . 3,621,042
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on investments . . . . . 3,890
Net change in unrealized appreciation of investments 1,350
-------------
Net gain on investments. . . . . . . . . . 5,240
-------------
NET INCREASE IN NET ASSETS FROM OPERATIONS . $ 3,626,282
-------------
-------------
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SIX MONTHS ENDED
OCTOBER 31, 1996 YEAR ENDED
(UNAUDITED) APRIL 30, 1996
---------- --------------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income. . . . . . . . . . . $ 3,621,042 $ 3,429,135
Net realized gain (loss) on investments. . 3,890 (66,276)
Net change in unrealized appreciation
of investments . . . . . . . . . . . . . 1,350 (44)
------------- -------------
Net increase in net assets from operations 3,626,282 3,362,815
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income. . . . . . . . . . . (3,621,042) (3,429,135)
CAPITAL STOCK TRANSACTIONS
Net increase (decrease). . . . . . . . . . (8,717,903) 148,180,832
------------- -------------
Total increase (decrease). . . . . . . . . (8,712,663) 148,114,512
NET ASSETS
Beginning of period. . . . . . . . . . . . 183,611,669 35,497,157
------------- -------------
End of period. . . . . . . . . . . . . . . $ 174,899,006 $ 183,611,669
------------- -------------
------------- -------------
- --------------------------------------------------------------------------------
See notes to financial statements.
<PAGE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED OCTOBER 31, 1996 (UNAUDITED)
ACM INSTITUTIONAL RESERVES - TRUST PORTFOLIO
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
INVESTMENT INCOME
Interest . . . . . . . . . . . . . . . . . $ 5,256,353
EXPENSES
Advisory fee (Note B). . . . . . . . . . . $ 438,130
Registration fees. . . . . . . . . . . . . 54,717
Custodian fees . . . . . . . . . . . . . . 33,702
Transfer agency. . . . . . . . . . . . . . 11,318
Audit and legal fees . . . . . . . . . . . 7,577
Printing . . . . . . . . . . . . . . . . . 2,550
Directors' fees. . . . . . . . . . . . . . 2,544
Miscellaneous. . . . . . . . . . . . . . . 4,846
-------------
Total expenses . . . . . . . . . . . . . . 555,384
Less: expense reimbursement. . . . . . . . (68,573) 486,811
------------- -------------
Net investment income. . . . . . . . . . . 4,769,542
REALIZED GAIN ON INVESTMENTS
Net realized gain on investments . . . . . 287
-------------
NET INCREASE IN NET ASSETS FROM OPERATIONS . $ 4,769,829
-------------
-------------
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SIX MONTHS ENDED
OCTOBER 31, 1996 YEAR ENDED
(UNAUDITED) APRIL 30,1996
----------- --------------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income. . . . . . . . . . . $ 4,769,542 $ 8,045,961
Net realized gain (loss) on investments. . 287 (32,758)
------------- -------------
Net increase in net assets from operations 4,769,829 8,013,203
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income. . . . . . . . . . . (4,769,542) (8,045,961)
CAPITAL STOCK TRANSACTIONS
Net increase . . . . . . . . . . . . . . . 24,939,073 60,921,819
------------- -------------
Total increase . . . . . . . . . . . . . . 24,939,360 60,889,061
NET ASSETS
Beginning of period. . . . . . . . . . . . 170,065,422 109,176,361
------------- -------------
End of period. . . . . . . . . . . . . . . $ 195,004,782 $ 170,065,422
------------- -------------
------------- -------------
- --------------------------------------------------------------------------------
See notes to financial statements.
<PAGE>
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 1996 (UNAUDITED) ACM INSTITUTIONAL RESERVES, INC.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NOTE A: SIGNIFICANT ACCOUNTING POLICIES
ACM Institutional Reserves, Inc. (the "Fund") is an open-end investment company
registered under the Investment Company Act of 1940. The Fund operates as a
series company currently 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. FEDERAL INCOME TAXES
It is the Fund's policy to comply with the require-ments 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, 1996 are exempt from federal income
taxes. However, certain shareholders may be subject to the alternative minimum
tax (AMT).
4. ACCOUNTING ESTIMATES
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the amounts of income and expense during the reporting
period. Actual results could differ from those estimates.
5. GENERAL
Interest income is accrued daily. Security transactions are recorded on the date
securities are purchased or sold. Realized gain (loss) from security
transactions is recorded on the identified cost basis.
- --------------------------------------------------------------------------------
NOTE B: ADVISORY FEE AND TRANSACTIONS WITH AN AFFILIATE OF THE ADVISER
The Fund pays its Adviser, Alliance Capital Management L.P., an advisory fee at
the annual rate of .20 of 1% of average daily net assets for the Prime,
Government and Tax-Free Portfolios and .45 of 1% of average daily net assets for
the Trust Portfolio. The Adviser has agreed to reimburse the Prime, Government
and 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 in regard to the Trust Portfolio, exceed .50 of 1% of its
average daily net assets. For the six months ended October 31, 1996,
reimbursement was $194,288 $105,503 $124,626 and $68,573 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 six months ended October 31,
1996 amounted to $9,000 per portfolio.
<PAGE>
ACM INSTITUTIONAL RESERVES, INC.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NOTE C: INVESTMENT TRANSACTIONS
At October 31, 1996 cost of securities for federal income tax purposes was the
same as the cost for financial reporting purposes for all portfolios. For
federal income tax purposes, the Prime Portfolio had a capital loss carryforward
at April 30, 1996 of $185,732, of which $1,377 expires in 1999, $3,535 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 carry-forward of $129,209 of which
$1,340 expires in 2000, $9,174 in 2001, $51,091 in 2002, $23,230 in 2003 and
$44,374 in the year 2004; the Tax-Free Portfolio had a capital loss carryforward
of $83,573 of which $87 expires in 2000, $6,191 in 2002, $11,019 in 2003 and
$66,276 in the year 2004; and the Trust Portfolio had a capital loss
carryforward of $52,880, of which $3,347 expires in 2002, $16,775 in 2003 and
$32,758 in the year 2004.
- --------------------------------------------------------------------------------
NOTE D: CAPITAL STOCK
There are 1,000,000,000 shares of $.01 par value capital stock authorized. At
October 31, 1996, capital paid-in aggregated $629,808,425 on Prime Portfolio,
$165,693,664 on Government Portfolio, $174,977,217 on Tax-Free Portfolio, and
$195,057,375 on Trust Portfolio. Transactions, all at $1.00 per share, were as
follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED
OCTOBER 31, 1996 YEAR ENDED
PRIME PORTFOLIO (UNAUDITED) APRIL 30, 1996
----------- --------------
<S> <C> <C>
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . 5,295,342,088 4,839,076,341
Shares issued on reinvestments of dividends . . . . . . . . 16,246,599 18,016,970
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . (5,175,285,217) (4,561,495,798)
---------------- ----------------
Net increase. . . . . . . . . . . . . . . . . . . . . . . . 136,303,470 295,597,513
---------------- ----------------
---------------- ----------------
SIX MONTHS ENDED
OCTOBER 31, 1996 YEAR ENDED
GOVERNMENT PORTFOLIO (UNAUDITED) APRIL 30, 1996
----------- --------------
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . 476,595,643 1,212,530,228
Shares issued on reinvestments of dividends . . . . . . . . 4,464,369 8,116,764
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . (466,311,735) (1,174,196,312)
---------------- ----------------
Net increase. . . . . . . . . . . . . . . . . . . . . . . . 14,748,277 46,450,680
---------------- ----------------
---------------- ----------------
SIX MONTHS ENDED
OCTOBER 31, 1996 YEAR ENDED
TAX-FREE PORTFOLIO (UNAUDITED) APRIL 30, 1996
----------- --------------
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . 834,125,594 1,044,165,922
Shares issued on reinvestments of dividends . . . . . . . . 3,621,042 3,429,135
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . (846,464,539) (899,414,225)
---------------- ----------------
Net increase (decrease) . . . . . . . . . . . . . . . . . . (8,717,903) 148,180,832
---------------- ----------------
---------------- ----------------
SIX MONTHS ENDED
OCTOBER 31, 1996 YEAR ENDED
TRUST PORTFOLIO (UNAUDITED) APRIL 30, 1996
----------- --------------
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . 406,645,991 989,948,926
Shares issued on reinvestments of dividends . . . . . . . . 4,769,542 8,045,961
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . (386,476,460) (937,073,068)
---------------- ----------------
Net increase. . . . . . . . . . . . . . . . . . . . . . . . 24,939,073 60,921,819
---------------- ----------------
---------------- ----------------
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED) ACM INSTITUTIONAL RESERVES, INC.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NOTE E: FINANCIAL HIGHLIGHTS
Per share operating performance for a share outstanding throughout each period.
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED APRIL 30,
OCTOBER 31, 1996 -------------------------------------------------
PRIME PORTFOLIO (UNAUDITED) 1996 1995 1994 1993 1992
----------- ------ ------ ------ ------ ------
<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. . . . . . . . . . . . . . 0.0266 0.0560 0.0502 0.0325 0.0353 0.0535
------- ------- ------- ------- ------- -------
LESS: DISTRIBUTIONS
Dividends from net investment income . . . . . . (0.0266) (0.0560) (0.0502) (0.0325) (0.0353) (0.0535)
------- ------- ------- ------- ------- -------
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). . . . . . . . . . . . . . 5.34% (c) 5.76% 5.15% 3.30% 3.59% 5.50%
------- ------- ------- ------- ------- -------
------- ------- ------- ------- ------- -------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions). . . . . $629.6 $493.3 $197.8 $108.1 $64.3 $25.0
Ratio to average net assets of:
Expenses, net of waivers
and reimbursements. . . . . . . . . . . . . 0.20% (c) 0.20% 0.20% 0.20% 0.18% 0.02%
Expenses, before waivers
and reimbursements. . . . . . . . . . . . . 0.26% (c) 0.32% 0.36% 0.42% 0.54% 0.81%
Net investment income (b). . . . . . . . . . . 5.27% (c) 5.54% 5.24% 3.25% 3.42% 5.30%
<CAPTION>
SIX MONTHS ENDED YEAR ENDED APRIL 30, JULY 22, 1991 (d)
OCTOBER 31, 1996 -------------------------------------- THROUGH
GOVERNMENT PORTFOLIO (UNAUDITED) 1996 1995 1994 1993 APRIL 30,1992
----------- ------ ------ ------ ------ -------------
<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. . . . . . . . . . . . . . 0.0260 0.0552 0.0493 0.0315 0.0339 0.0377
------- ------- ------- ------- ------- -------
LESS: DISTRIBUTIONS
Dividends from net investment income . . . . . . (0.0260) (0.0552) (0.0493) (0.0315) (0.0339) (0.0377)
------- ------- ------- ------- ------- -------
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). . . . . . . . . . . . . . 5.23% (c) 5.67% 5.06% 3.20% 3.45% 4.98% (c)
------- ------- ------- ------- ------- -------
------- ------- ------- ------- ------- -------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions). . . . . $165.6 $150.8 $104.4 $76.6 $73.2 $24.7
Ratio to average net assets of:
Expenses, net of waivers
and reimbursements. . . . . . . . . . . . . 0.20% (c) 0.20% 0.20% 0.20% 0.18% 0.10% (c)
Expenses, before waivers
and reimbursements. . . . . . . . . . . . . 0.32% (c) 0.36% 0.38% 0.36% 0.49% 0.86% (c)
Net investment income (b). . . . . . . . . . . 5.20% (c) 5.50% 4.94% 3.15% 3.30% 4.86% (c)
</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) Net of expenses reimbursed or waived by the Adviser.
(c) Annualized.
(d) Commencement of operations.
<PAGE>
ACM INSTITUTIONAL RESERVES, INC.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED APRIL 30, JULY 22, 1996 (d)
OCTOBER 31, 1996 ------------------------------------- THROUGH
TAX-FREE PORTFOLIO (UNAUDITED) 1996 1995 1994 1993 APRIL 30, 1992
----------- ------ ------ ------ ------ --------------
<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. . . . . . . . . . . . . . 0.0176 0.0372 0.0326 0.0240 0.0287 0.0334
Net unrealized loss on investments . . . . . . . -0- -0- (0.0048) -0- -0- -0-
------- ------- ------- ------- ------- -------
Net increase in net asset value
from operations. . . . . . . . . . . . . . . . 0.0176 0.0372 0.0278 0.0240 0.0287 0.0334
------- ------- ------- ------- ------- -------
LESS: DISTRIBUTIONS
Dividends from net investment income . . . . . . (0.0176) (0.0372) (0.0326) (0.0240) (0.0287) (0.0334)
------- ------- ------- ------- ------- -------
ADD: CAPITAL CONTRIBUTION
Capital Contributed by the Adviser . . . . . . . -0- -0- 0.0048 -0- -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). . . . . . . . . . . . . . 3.51% (c) 3.79% 3.31%(e) 2.43% 2.92% 4.40% (c)
------- ------- ------- ------- ------- -------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions). . . . . $174.9 $183.6 $35.5 $35.6 $40.9 $8.5
Ratio to average net assets of:
Expenses, net of waivers
and reimbursements. . . . . . . . . . . . . 0.20% (c) 0.20% 0.20% 0.20% 0.18% 0.10% (c)
Expenses, before waivers
and reimbursements. . . . . . . . . . . . . 0.32% (c) 0.48% 0.76% 0.69% 0.95% 2.08% (c)
Net investment income (b). . . . . . . . . . . 3.48% (c) 3.73% 3.31% 2.40% 2.73% 4.01% (c)
<CAPTION>
SIX MONTHS ENDED YEAR ENDED APRIL 30, NOVEMBER 16, 1992(d)
OCTOBER 31, 1996 ---------------------------- THROUGH
TRUST PORTFOLIO (UNAUDITED) 1996 1995 1994 APRIL 30, 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. . . . . . . . . . . . . . 0.0246 0.0527 0.0479 0.0309 0.0144
------- ------- ------- ------- -------
LESS: DISTRIBUTIONS
Dividends from net investment income . . . . . . (0.0246) (0.0527) (0.0479) (0.0309) (0.0144)
------- ------- ------- ------- -------
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). . . . . . . . . . . . . . 4.93% (c) 5.41% 4.91% 3.14% 3.21% (c)
------- ------- ------- ------- -------
------- ------- ------- ------- -------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions). . . . . $195.0 $170.1 $109.2 $36.8 $5.3
Ratio to average net assets of:
Expenses, net of waivers
and reimbursements. . . . . . . . . . . . . 0.50% (c) 0.50% 0.49% 0.14% -0-
Expenses, before waivers
and reimbursements. . . . . . . . . . . . . 0.57% (c) 0.60% 0.75% 1.23% 0.45% (c)
Net investment income (b). . . . . . . . . . . 4.90% (c) 5.28% 5.31% 3.15% 3.17% (c)
</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) Net of expenses reimbursed or waived by the Adviser.
(c) Annualized.
(d) Commencement of operations.
(e) Capital contributed by the Adviser had no material effect on net asset
value, and therefore, no effect on total return.
<PAGE>
ACM INSTITUTIONAL RESERVES, INC.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
ACM INSTITUTIONAL RESERVES, INC.
1345 Avenue of the Americas
New York, New York 10105
Toll-free 1 (800) 237-5822
YIELDS. For current recorded yield information on the Fund, call on a
touch-tone telephone toll-free 1 (800) 251-0539 and press the following sequence
of keys: 1 * 16 # for the Prime Portfolio, 1 * 27 # for the Government
Portfolio, 1 * 38 # for the Tax-Free Portfolio and 1 * 0 # for the Trust
Portfolio.
FOR NON-TOUCH-TONE TELEPHONES, CALL TOLL-FREE 1 (800) 221-9513
BOARD OF DIRECTORS
JOHN D. CARIFA, CHAIRMAN
RUTH BLOCK
DAVID H. DIEVLER
JOHN H. DOBKIN WILLIAM H. FOULK, JR.
JAMES M. HESTER
CLIFFORD L. MICHEL
ROBERT C. WHITE
OFFICERS
RONALD M. WHITEHILL, PRESIDENT
KATHLEEN A. CORBET, SENIOR VICE PRESIDENT
DREW BIEGEL, VICE PRESIDENT
JOHN F. CHIODI, JR., VICE PRESIDENT
RAYMOND J. PAPERA, VICE PRESIDENT PAMELA F. RICHARDSON, VICE PRESIDENT
EDMUND P. BERGAN, JR., SECRETARY
MARK D. GERSTEN, TREASURER & CHIEF FINANCIAL OFFICER
JOSEPH J. MANTINEO, CONTROLLER
CUSTODIAN
STATE STREET BANK AND TRUST COMPANY
P.O. Box 1912
Boston, MA 02105
LEGAL COUNSEL
SEWARD & KISSEL
One Battery Park Plaza
New York, NY 10004
AUDITORS
MCGLADREY & PULLEN, LLP
555 Fifth Avenue
New York, NY 10017
TRANSFER AGENT
ALLIANCE FUND SERVICES, INC.
P.O. Box 1520
Secaucus, NJ 07096-1520
DISTRIBUTOR
ALLIANCE FUND DISTRIBUTORS, INC.
1345 Avenue of the Americas
New York, NY 10105
Distribution of this report other than to shareholders must be preceded or
accompanied by the Fund's current prospectus, which contains further information
about the Fund.
