ACM INSTITUTIONAL RESERVES
ANNUAL REPORT
APRIL 30, 1998
STATEMENT OF NET ASSETS
APRIL 30, 1998 ACM INSTITUTIONAL RESERVES - PRIME PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY YIELD VALUE
- -------------------------------------------------------------------------------
COMMERCIAL PAPER-60.0%
AKZO NOBEL, INC.
$ 20,000 6/15/98 5.54% $ 19,861,500
ALLIANZ OF AMERICA FINANCE CORP.
12,000 5/29/98 (a) 5.46 11,949,040
7,000 6/23/98 (a) 5.51 6,943,216
12,000 6/25/98 (a) 5.51 11,898,983
10,400 6/11/98 (a) 5.52 10,334,619
14,600 6/12/98 (a) 5.52 14,505,976
APEX FUNDING CORP.
27,000 5/26/98 (a) 5.87 26,889,938
ASSOCIATES CORP. OF NORTH AMERICA
10,000 6/25/98 5.48 9,916,278
BAA PLC
19,000 6/03/98 5.52 18,903,860
20,000 6/09/98 5.52 19,880,400
18,000 6/10/98 5.52 17,889,600
BANCA CRT FINANCIAL CORP.
6,000 5/20/98 5.52 5,982,520
BANCO DE SANTANDER
35,100 5/01/98 5.54 35,100,000
BANQUE CAISSE D' EPARGNE
10,000 6/22/98 5.50 9,920,556
5,000 6/03/98 5.53 4,974,654
BBV FINANCE DELAWARE, INC.
8,000 5/01/98 5.58 8,000,000
CAISSE CENTRALE JARDINS DU QUEBEC
10,000 9/21/98 5.46 9,783,117
2,000 5/15/98 5.60 1,995,644
CAISSE D' AMORTISSEMENT
3,000 7/10/98 5.60 2,967,333
CREGEM NORTH AMERICA, INC.
15,000 6/19/98 5.50 14,887,708
15,000 6/10/98 5.51 14,908,167
30,000 6/03/98 5.53 29,847,925
CS FIRST BOSTON, INC.
12,000 5/26/98 5.50 11,954,167
5,000 6/11/98 5.50 4,968,681
40,000 6/17/98 5.51 39,712,517
10,000 6/22/98 5.51 9,920,411
5,000 6/22/98 5.52 4,960,133
DEN DANSKE BANK
30,000 5/26/98 5.53 29,884,792
50,000 5/20/98 5.55 49,853,542
DEN NORSKE BANK
30,000 5/29/98 5.50 29,871,667
15,000 6/24/98 5.51 14,876,025
10,900 6/08/98 5.52 10,836,489
DIAGEO CAPITAL
5,000 5/29/98 5.45 4,978,806
10,000 5/29/98 5.50 9,957,222
21,500 6/17/98 5.51 21,345,337
GENERAL ELECTRIC CAPITAL CORP.
20,000 6/30/98 5.50 19,816,666
20,000 6/11/98 5.52 19,874,267
30,000 5.55%, 11/17/98 FRN 5.58 30,000,000
GENERAL MOTORS ACCEPTANCE CORP.
35,000 6/11/98 5.51 34,780,365
10,000 6/12/98 5.51 9,935,717
25,000 5/18/98 5.53 24,934,715
GENERAL RE CORP.
10,000 6/29/98 5.51 9,909,697
GENERALE BANK, INC.
5,000 5/27/98 5.50 4,980,139
GOVERNMENT DEVELOPMENT BANK
OF PUERTO RICO
35,000 7/22/98 5.52 34,559,933
IMI FUNDING CORP. (USA)
9,000 6/02/98 5.35 8,955,760
25,000 6/24/98 5.44 24,796,000
3,700 6/08/98 5.70 3,677,738
3,257 6/09/98 5.70 3,236,888
MORGAN STANLEY GROUP, INC.
30,000 6/15/98 5.50 29,793,750
RABOBANK USA
75,000 5/01/98 5.55 75,000,000
SALOMON SMITH BARNEY, INC.
10,000 6/15/98 5.51 9,931,125
25,000 6/04/98 5.52 24,869,667
35,000 6/10/98 5.52 34,785,333
SVENSKA HANDELSBANKEN
20,000 6/30/98 5.50 19,816,667
THAMES ASSET GLOBAL SECURITIZATION
20,000 6/11/98 (a) 5.55 19,873,583
UNI FUNDING, INC.
20,000 6/25/98 5.50 19,831,944
UNIBANCO
13,000 6/15/98 5.53 12,910,138
VENANTIUS AB
33,000 5/20/98 5.52 32,903,860
---------------
Total Commercial Paper
(amortized cost $1,059,634,775) 1,059,634,775
CORPORATE OBLIGATIONS-10.4%
ABBEY NATIONAL TREASURY SERVICES
15,000 5.54%, 2/17/99 FRN 5.60 14,993,058
ALLSTATE LIFE INSURANCE
FUNDING AGREEMENT
25,000 5.74%, 5/01/98 FRN (b) 5.74 25,000,000
1
STATEMENT OF NET ASSETS (CONTINUED)
ACM INSTITUTIONAL RESERVES - PRIME PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY YIELD VALUE
- -------------------------------------------------------------------------------
GENERAL AMERICAN FUNDING CORP.
$ 55,000 5.89%, 7/10/98 FRN 5.89% $ 55,000,000
MERRILL LYNCH & CO., INC.
25,000 5.61%, 1/29/99 FRN 5.61 25,000,000
15,000 5.61%, 2/16/99 FRN 5.61 15,000,000
4,000 5.88%, 8/26/98 5.88 4,000,000
TRAVELERS LIFE FUNDING AGREEMENT
20,000 5.64%, 4/14/99 FRN (b) 5.66 20,000,000
25,000 5.67%, 10/21/98 FRN (b) 5.67 25,000,000
---------------
Total Corporate Obligations
(amortized cost $183,993,058) 183,993,058
BANK OBLIGATIONS-10.0%
BAYERISCHE LANDESBANK
35,000 5.53%, 2/25/99 FRN 5.61 34,977,973
18,000 5.53%, 3/23/99 FRN 5.61 17,987,380
13,000 5.69%, 10/02/98 FRN 5.69 13,000,000
BAYERISCHE VEREINSBANK
20,000 5.53%, 6/30/98 FRN 5.59 19,998,086
DEUTSCHE BANK
10,000 5.52%, 7/01/98 FRN 5.62 9,998,378
LASALLE NATIONAL BANK
15,000 5.60%, 9/18/98 5.60 15,000,000
10,000 5.60%, 12/10/98 5.60 10,000,000
MORGAN GUARANTY TRUST CO.
5,000 5.96%, 6/22/98 5.88 4,999,762
ROYAL BANK OF CANADA
10,000 5.65%, 9/30/98 FRN 5.65 10,000,000
SMM TRUST
20,000 5.66%, 12/14/98 FRN (a) 5.66 20,000,000
20,000 5.69%, 12/16/98 FRN (a) 5.69 20,000,000
---------------
Total Bank Obligations
(amortized cost $175,961,579) 175,961,579
TIME DEPOSITS-7.5%
FIRST UNION NATIONAL BANK
52,000 5.56%, 5/01/98 5.56 52,000,000
WESTDEUTSCHE LANDESBANK
80,000 5.56%, 5/01/98 5.56 80,000,000
---------------
Total Time Deposits
(amortized cost $132,000,000) 132,000,000
CERTIFICATES OF DEPOSIT-6.3%
BAYERISCHE VEREINSBANK
30,000 5.64%, 2/25/99 5.64 30,000,000
CREDIT AGRICOLE
3,000 5.99%, 6/16/98 5.80 3,000,166
DEUTSCHE BANK
8,000 5.67%, 2/26/99 5.73 7,998,046
20,000 5.70%, 3/05/99 5.70 19,991,916
10,000 5.95%, 10/21/98 5.99 9,997,735
DRESDNER BANK
7,000 5.51%, 1/15/99 5.68 6,990,869
HESSISCHE LANDESBANK
5,000 5.94%, 6/19/98 5.81 4,999,986
NATIONAL WESTMINSTER BANK
14,000 5.65%, 3/03/99 5.71 13,994,273
SWISS BANK
14,000 5.66%, 3/04/99 5.70 13,995,485
---------------
Total Certificates of Deposit
(amortized cost $110,968,476) 110,968,476
PROMISSORY NOTES-4.5%
GOLDMAN SACHS GROUP LP
15,000 5.61%, 8/07/98 5.61 15,000,000
35,000 5.63%, 10/13/98 5.63 35,000,000
30,000 5.68%, 5/27/98 5.68 30,000,000
---------------
Total Promissory Notes
(amortized cost $80,000,000) 80,000,000
U.S. GOVERNMENT & AGENCY
OBLIGATIONS-1.0%
FEDERAL FARM CREDIT BANK
7,000 5.41%, 8/03/98 FRN 5.46 6,999,154
FEDERAL NATIONAL MORTGAGE ASSOCIATION
10,000 5.59%, 11/04/98 5.68 9,995,787
---------------
Total U.S. Government & Agency
Obligations
(amortized cost $16,994,941) 16,994,941
TOTAL INVESTMENTS-99.7%
(amortized cost $1,759,552,829) 1,759,552,829
Other assets less liabilities-0.3% 5,140,029
NET ASSETS-100%
(offering and redemption price of
$1.00 per share; 1,764,876,578
shares outstanding) $ 1,764,692,858
See Glossary of Terms on page 12.
See notes to financial statements.
2
STATEMENT OF NET ASSETS
APRIL 30, 1998 ACM INSTITUTIONAL RESERVES - GOVERNMENT PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY YIELD VALUE
- -------------------------------------------------------------------------------
U.S. GOVERNMENT & AGENCY
OBLIGATIONS-68.2%
FEDERAL NATIONAL MORTGAGE
ASSOCIATION-31.2%
$ 3,000 5.35%, 7/16/98 5.49% $ 2,998,343
7,000 5.46%, 3/03/99 FRN 5.50 6,997,946
6,000 5.54%, 10/20/98 FRN 5.67 5,998,770
7,000 5.57%, 3/05/99 5.62 6,997,046
6,000 5.57%, 4/28/99 FRN 5.62 5,997,025
6,500 5.59%, 11/04/98 FRN 5.68 6,498,868
6,500 5.59%, 11/04/98 5.79 6,497,261
10,000 5.68%, 6/19/98 5.60 10,000,955
2,000 6.41%, 7/17/98 5.67 2,002,664
5,500 8.15%, 5/11/98 5.52 5,503,573
9,375 5/26/98 5.43 9,339,718
5,000 6/17/98 5.48 4,964,685
2,000 6/12/98 5.49 1,987,377
5,000 6/30/98 5.50 4,954,792
5,000 6/26/98 5.51 4,957,767
---------------
85,696,790
FEDERAL HOME LOAN MORTGAGE
CORP.-20.4%
5,000 5/18/98 5.43 4,987,226
3,200 5/29/98 5.48 3,186,535
2,000 6/08/98 5.48 1,988,579
2,000 6/10/98 5.48 1,987,978
7,000 5/13/98 5.49 6,987,272
4,184 5/15/98 5.49 4,175,148
2,000 5/21/98 5.49 1,993,967
3,500 5/29/98 5.49 3,485,246
12,600 5/07/98 5.50 12,588,513
7,000 5/08/98 5.50 6,992,568
3,500 5/28/98 5.50 3,485,694
4,000 6/18/98 5.51 3,971,040
---------------
55,829,766
FEDERAL HOME LOAN BANK-14.3%
8,000 5.39%, 7/30/98 FRN 5.53 7,998,488
5,700 5.56%, 3/25/99 5.71 5,693,119
10,000 5.65%, 3/12/99 5.69 10,000,000
5,000 5.65%, 3/30/99 5.62 5,000,000
3,500 5.71%, 3/04/99 5.71 3,500,000
5,000 5.71%, 3/17/99 5.73 4,998,685
2,000 5.72%, 7/07/98 5.58 2,000,308
---------------
39,190,600
STUDENT LOAN MARKETING
ASSOCIATION-1.6%
4,500 5.36%, 7/12/99 FRN 6.17 4,480,141
FEDERAL FARM CREDIT BANK-0.7%
2,000 5.50%, 6/01/98 5.57 1,999,531
---------------
Total U.S. Government & Agency
Obligations
(amortized cost $187,196,828) 187,196,828
REPURCHASE AGREEMENTS-31.4%
CHASE SECURITIES, INC.
8,000 5.49%, dated 4/29/98,
due 5/11/98 in the amount
of $8,014,640 (cost $8,000,000;
collateralized by $9,515,000
FN334614, 6.50%, 12/01/23,
value $8,255,017) (c) 5.49 8,000,000
CIBC/WOOD GUNDY, INC.
7,000 5.56%, dated 4/30/98,
due 5/01/98 in the amount
of $7,001,081 (cost $7,000,000;
collateralized by $7,044,135
FN266385, 5.56%, 12/01/33,
value $7,185,052) (c) 5.56 7,000,000
NIKKO SECURITIES CO.
5,000 5.50%, dated 4/28/98,
due 5/13/98 in the amount
of $5,011,458 (cost $5,000,000;
collateralized by $5,335,000
FN419493, 6.00%, 3/01/28,
value $5,175,646) (c) 5.50 5,000,000
NIKKO SECURITIES CO.
9,000 5.51%, dated 4/02/98,
due 5/06/98 in the amount
of $9,046,835 (cost $9,000,000;
collateralized by $9,590,000
FN251802, 6.00%, 4/01/28,
value $9,312,689) (c) 5.51 9,000,000
PAINE WEBBER, INC.
7,000 5.51%, dated 4/28/98,
due 5/27/98 in the amount
of $7,031,070 (cost $7,000,000;
collateralized by $7,930,000
FN394706, 7.00%, 7/01/04,
value $7,219,778) (c) 5.51 7,000,000
PRUDENTIAL SECURITIES, INC.
6,000 5.50%, dated 4/29/98,
due 5/20/98 in the amount
of $6,019,250 (cost $6,000,000;
collateralized by $6,269,000
FH00815, 7.00%, 12/01/27,
value $6,183,341) (c) 5.50 6,000,000
PRUDENTIAL SECURITIES, INC.
8,000 5.52%, dated 4/01/98,
due 5/04/98 in the amount
of $8,040,480 (cost $8,000,000;
collateralized by $8,324,000
FH00557, 7.00%, 10/01/27,
value $8,219,337) (c) 5.52 8,000,000
3
STATEMENT OF NET ASSETS
(CONTINUED) ACM INSTITUTIONAL RESERVES - GOVERNMENT PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY YIELD VALUE
- -------------------------------------------------------------------------------
SALOMON SMITH BARNEY, INC.
$ 8,000 5.49%, dated 4/29/98,
due 5/12/98 in the amount
of $8,015,860 (cost $8,000,000;
collateralized by $8,352,000
FH00557, 7.00%, 10/01/27,
value $8,246,985) (c) 5.49% $ 8,000,000
SALOMON SMITH BARNEY, INC.
6,000 5.50%, dated 4/28/98,
due 5/19/98 in the amount
of $6,019,250 (cost $6,000,000;
collateralized by $8,398,000
FN328331, 6.50%, 8/01/10,
value $6,146,605) (c) 5.50 6,000,000
SBC WARBURG, LTD.
8,000 5.48%, dated 4/22/98,
due 5/05/98 in the amount
of $8,015,831 (cost $8,000,000;
collateralized by $14,358,000
FN190044, 6.50%, 9/01/08,
value $8,165,296) (c) 5.48 8,000,000
SBC WARBURG, LTD.
7,000 5.50%, dated 4/15/98,
due 5/20/98 in the amount
of $7,037,431 (cost $7,000,000;
collateralized by $7,203,000
FN424858, 6.50%, 4/01/28,
value $7,168,686) (c) 5.50 7,000,000
STATE STREET BANK AND TRUST CO.
7,100 5.40%, dated 4/30/98,
due 5/01/98 in the amount
of $7,101,065 (cost $7,100,000;
collateralized by $7,025,000
US T-Note, 6.25%, 5/31/99,
value $7,255,435) 5.40 7,100,000
---------------
Total Repurchase Agreements
(amortized cost $86,100,000) 86,100,000
TOTAL INVESTMENTS-99.6%
(amortized cost $273,296,828) 273,296,828
Other assets less liabilities-0.4% 1,164,547
NET ASSETS-100%
(offering and redemption
price of $1.00 per share;
274,591,724 shares
outstanding) $ 274,461,375
See Glossary of Terms on page 12.
See notes to financial statements.
4
STATEMENT OF NET ASSETS
APRIL 30, 1998 ACM INSTITUTIONAL RESERVES - TAX-FREE PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY# YIELD VALUE
- -------------------------------------------------------------------------------
MUNICIPAL BONDS-98.8%
ALABAMA-1.8%
ARAB IDB
(SCI Manufacturing Inc.)
Series '89 VRDN (d)
$ 150 8/01/00 4.40% $ 150,000
HUNTSVILLE IDA
(Seiki USA Project)
Series '88 AMT VRDN (d)
5,000 9/01/98 4.48 5,000,000
-------------
5,150,000
ALASKA-2.4%
ALASKA HOUSING FINANCE CORP.
(University of Alaska)
Series '97A VRDN (d)
4,000 12/01/27 4.10 4,000,000
ALASKA IDA
(Fairbanks Gold Mining Inc.)
Series '97 AMT VRDN (d)
2,500 5/01/09 4.20 2,500,000
ANCHORAGE GO
Series A FGIC
535 9/01/98 3.98 535,030
-------------
7,035,030
ARIZONA-3.7%
APACHE COUNTY IDA
PCR
(Tuscon Electric Power Co. Project)
Series '81B VRDN (d)
2,500 10/01/21 4.45 2,500,000
APACHE COUNTY IDR
(Tuscon Electric Power Co. Project)
Series '83C VRDN (d)
7,100 12/15/18 4.25 7,100,000
APACHE COUNTY PCR
(Tucson Electric Power Co. Project)
Series '85A VRDN (d)
1,300 12/01/20 4.20 1,300,000
-------------
10,900,000
ARKANSAS-0.4%
JONESBORO SALES AND USE
TAX REVENUE
Series '97 FSA
1,250 11/15/98 3.90 1,250,000
CALIFORNIA-1.7%
CALIFORNIA HIGHER EDUCATION
STUDENT LOAN REVENUE
Series D-2 PPB (d)
5,000 4/01/00 4.00 5,000,000
COLORADO-4.8%
DOUGLAS COUNTY
MFHR
(Parker Hilltop Apartments Project)
Series '97 AMT PPB (d)
5,935 12/01/27 4.00 5,935,000
ENGLEWOOD IDR
(Swedish Mob I Ltd. Project)
Series '85 VRDN (d)
885 12/01/10 4.40 885,000
WESTMINISTER MFHR
(Cascade Village Apartments)
Series '97 VRDN (d)
7,375 12/01/07 4.10 7,375,000
-------------
14,195,000
DELAWARE-1.8%
DELAWARE IDR
(Delmarva Power & Light)
Series '93C VRDN (d)
5,150 10/01/28 4.25 5,150,000
DISTRICT OF COLUMBIA-6.2%
DISTRICT OF COLUMBIA GO
Series '92A-3 VRDN (d)
5,000 10/01/07 4.35 5,000,000
Series '92A-4 VRDN (d)
7,700 10/01/07 4.35 7,700,000
DISTRICT OF COLUMBIA
HFA MFHR
(Tyler Housing)
AMT VRDN (d)
2,400 8/01/25 4.45 2,400,000
5
STATEMENT OF NET ASSETS
(CONTINUED) ACM INSTITUTIONAL RESERVES - TAX-FREE PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY# YIELD VALUE
- -------------------------------------------------------------------------------
DISTRICT OF COLUMBIA
HFA SFMR
Series '97C AMT PPB (d)
$ 3,000 9/01/98 4.05% $ 3,000,000
-------------
18,100,000
FLORIDA-8.6%
BROWARD COUNTY
HFA MFHR
(Jacaranda Village Apartments)
Series '97 VRDN (d)
3,500 9/01/22 4.20 3,500,000
BROWARD COUNTY
MFHR
(Harbour Town Jacaranda Project)
Series '95B VRDN (d)
3,400 12/01/25 4.20 3,400,000
BROWARD COUNTY
MFHR
(Margate Investments Project)
VRDN (d)
1,000 11/01/05 4.20 1,000,000
FLORIDA HFA MFHR
(EEE-Carlton Arms II)
VRDN (d)
1,500 12/01/08 4.10 1,500,000
FLORIDA HFA MFHR
(Oaks at Orange Park)
Series '90 VRDN (d)
5,100 7/01/07 4.15 5,100,000
HIGHLANDS COUNTY HEALTH FACILITIES
(Adventist/Sunbelt)
Series A VRDN (d)
5,600 11/15/26 4.15 5,600,000
PALM BEACH COUNTY
HFA MFHR
(Village Crossing Project)
Series '97B VRDN (d)
3,000 10/01/27 4.20 3,000,000
VOLUSIA COUNTY
HFA MFHR
(Ocean Oaks Apartments)
Series '97B VRDN (d)
2,000 10/01/27 4.20 2,000,000
-------------
25,100,000
GEORGIA-2.6%
COLLEGE PARK IDR
(Wynefield 1 Project)
AMT VRDN (d)
1,700 12/01/16 4.05 1,700,000
JACKSON COUNTY IDA
(Mitsubishi Consumer Electronic)
VRDN (d)
3,000 12/01/15 4.55 3,000,000
SAVANNAH ECONOMIC
DEVELOPMENT AUTHORITY
(Georgia Kaolin)
Series '97 AMT VRDN (d)
3,000 7/01/27 4.20 3,000,000
-------------
7,700,000
HAWAII-2.9%
HAWAII HOUSING FINANCE &
DEVELOPMENT AUTHORITY
(Kamakee Vista)
Series '90A VRDN (d)
6,500 7/01/25 4.70 6,500,000
HAWAII HOUSING FINANCE &
DEVELOPMENT AUTHORITY
(Rental Housing System)
Series '90B VRDN (d)
1,900 7/01/25 4.70 1,900,000
-------------
8,400,000
IDAHO-0.4%
CUSTER COUNTY SOLID WASTE REVENUE
(Hecla Mining Co. Project)
Series '97 AMT VRDN (d)
1,300 7/01/07 4.25 1,300,000
ILLINOIS-14.5%
CHICAGO AIRPORT
(O'Hare International Airport)
Series B AMT VRDN (d)
2,300 1/01/18 4.20 2,300,000
Series C VRDN (d)
3,400 1/01/18 4.05 3,400,000
6
ACM INSTITUTIONAL RESERVES - TAX-FREE PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY# YIELD VALUE
- -------------------------------------------------------------------------------
CHICAGO HFA MFHR
(Waveland Assoc)
Series '85D VRDN (d)
$ 6,300 11/01/10 4.15% $ 6,300,000
DES PLAINES COOK COUNTY IDR
(CP Partners LLC Project)
Series '97A VRDN (d)
6,775 11/01/15 4.20 6,775,000
ELMHURST HOSPITAL REVENUE
(Joint Comm. Health Org.)
Series '88 VRDN (d)
6,780 7/01/18 4.10 6,780,000
ILLINOIS DEVELOPMENT
FINANCE AUTHORITY
(D.E. Akin Seed Project)
AMT VRDN (d)
1,000 11/01/04 4.30 1,000,000
ILLINOIS DEVELOPMENT
FINANCE AUTHORITY
(U.G.N. Inc. Project)
Series '86 AMT VRDN (d)
3,500 9/15/11 4.95 3,500,000
ILLINOIS EDUCATIONAL
FACILITIES AUTHORITY
(Cultural Pooled Financing
Program)
Series '85 VRDN (d)
4,000 12/01/25 4.10 4,000,000
ILLINOIS HEALTH FACILITIES AUTHORITY
(Rehab Institute of Chicago)
Series '97 VRDN (d)
7,000 4/01/32 4.15 7,000,000
VERNON HILLS IDR
(Kinder Care Center)
VRDN (d)
550 2/01/01 4.35 550,000
WEST CHICAGO IDR
(Acme Printing Co.)
Series '89 AMT VRDN (d)
1,100 5/01/99 5.03 1,100,000
-------------
42,705,000
INDIANA-3.1%
CITY OF INDIANAPOLIS
(Visiting Nurse Service Foundation)
Series '98 VRDN (d)
3,100 3/01/13 4.20 3,100,000
GARY ENVIRONMENTAL IMPROVEMENT
REVENUE
(U.S. Steel Corp.)
Series '84 VRDN (d)
4,100 7/15/02 3.85 4,100,000
SEYMOUR ECONOMIC DEVELOPMENT REVENUE
(Kobelco Metal Powder Co. Project)
Series '97 AMT VRDN (d)
2,000 12/01/07 4.95 2,000,000
-------------
9,200,000
LOUISIANA-2.4%
WEST BATON ROUGE IDR
(Dow Chemical #3)
Series '94B VRDN (d)
7,100 12/01/16 4.30 7,100,000
MAINE-0.9%
MAINE FINANCE AUTHORITY
(Barber Foods Inc.)
Series '90B AMT VRDN (d)
1,675 12/01/06 4.50 1,675,000
ORRINGTON RESOURCE RECOVERY REVENUE
(Penobscot Energy Project)
Series B AMT VRDN (d)
905 5/01/03 4.65 905,000
-------------
2,580,000
MICHIGAN-3.7%
MICHIGAN HOSPITAL FINANCE AUTHORITY
(Hospital Equipment Revenue)
Series '98A VRDN (d)
10,900 12/01/23 4.15 10,900,000
MINNESOTA-0.5%
COTTAGE GROVE
(Minnesota Mining & Manufacturing
Co. Project)
VRDN (d)
1,000 8/01/12 4.73 1,000,000
7
STATEMENT OF NET ASSETS
(CONTINUED) ACM INSTITUTIONAL RESERVES - TAX-FREE PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY# YIELD VALUE
- -------------------------------------------------------------------------------
EDEN PRAIRIE IDA
(Kinder Care Project)
Series C VRDN (d)
$ 465 2/01/01 4.35% $ 465,000
-------------
1,465,000
MISSISSIPPI-0.1%
JONES COUNTY HOSPITAL REVENUE
(South Central Registered
Medical Center Project)
MBIA
420 8/01/98 3.98 422,911
MISSOURI-4.4%
BLUE SPRINGS IDA
(Kinder Care Project)
Series C VRDN (d)
540 2/01/01 4.35 540,000
BOONE COUNTY IDA
(Minnesota Mining &
Manufacturing Co. Project)
VRDN (d)
500 12/01/25 4.10 500,000
MISSOURI HEALTH &
EDUCATIONAL FACILITY
(Barnes Hospital Project)
Series '85 VRDN (d)
10,000 12/01/15 4.10 10,000,000
MISSOURI HEALTH & EDUCATIONAL FACILITY
(Stowers Institute)
Series '98 VRDN (d)
2,000 4/01/38 4.15 2,000,000
-------------
13,040,000
NEW HAMPSHIRE-0.4%
MERRIMACK COUNTY
GO BAN
Lot B
1,200 8/07/98 4.00 1,200,782
NEW JERSEY-1.6%
JERSEY CITY BAN
Renewal Notes
2,250 9/18/98 3.90 2,254,024
NEW JERSEY ECONOMIC DEVELOPMENT
AUTHORITY
(Newark Recycling Facility)
Series '97 AMT PPB (d)
2,500 12/01/22 3.96 2,500,000
-------------
4,754,024
NEW MEXICO-0.5%
NEW MEXICO HFA
SFMR
(Home Mortgage Revenue)
Series '97-1 PPB (d)
1,415 7/01/28 3.85 1,415,000
NEW YORK-1.8%
HEMPSTEAD IDA
(American Ref-Fuel)
Series '97 VRDN (d)
5,300 12/01/10 4.10 5,300,000
NORTH CAROLINA-1.0%
NORTH CAROLINA MEDICAL CARE FACILITY
(The Givens Estates Inc. Project)
Series '97 VRDN (d)
3,000 12/01/26 4.25 3,000,000
OHIO-0.9%
WARREN COUNTY IDR
(Pioneer Industrial Components
Project)
Series '85 VRDN (d)
2,500 12/01/05 4.40 2,500,000
OREGON-0.9%
BEAVERTON WATER REVENUE
FGIC
295 6/01/98 4.00 295,060
OREGON ECONOMIC DEVELOPMENT REVENUE
(Kyotaru Oregon Project)
Series '89 AMT VRDN (d)
2,400 12/01/99 4.47 2,400,000
-------------
2,695,060
PENNSYLVANIA-7.8%
ALLEGHENY COUNTY IDR
(United Jewish Federation Project)
Series '96A VRDN (d)
9,930 10/01/26 4.20 9,930,000
MONTGOMERY COUNTY HIGHER
EDUCATION & HEALTH LOAN REVENUE
Series '96A VRDN (d)
4,370 4/01/17 4.15 4,370,000
8
ACM INSTITUTIONAL RESERVES - TAX-FREE PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY# YIELD VALUE
- -------------------------------------------------------------------------------
MONTGOMERY COUNTY
IDA
(Kinder Care Project)
Series D VRDN (d)
$ 400 10/01/00 4.35% $ 400,000
PENNSYLVANIA ECONOMIC DEVELOPMENT
FINANCE AUTHORITY
(National Gypsum Co. Project)
Series '97A AMT VRDN (d)
3,400 11/01/27 4.15 3,400,000
PHILADELPHIA GO TRAN
Series '97A
4,500 6/30/98 4.50 4,503,175
VENAGO IDR
(Penzoil Co. Project)
Series '82A VRDN (d)
285 12/01/12 4.30 285,000
-------------
22,888,175
TENNESSEE-1.1%
DICKSON COUNTY IDA
(Tennessee Bun Co. Project)
Series '96 AMT VRDN (d)
2,000 7/01/06 4.35 2,000,000
VOLUNTEER STATE STUDENT LOAN REVENUE
(Student Funding Corp.)
Series '87A-3
AMT VRDN (d)
1,200 12/01/17 4.50 1,200,000
-------------
3,200,000
TEXAS-3.6%
MIDLOTHIAN IDA
(Box-Crow Cement Co.)
VRDN (d)
5,000 12/01/09 4.15 5,000,000
PORT ARTHUR NAVIGATION DISTRICT
(Texaco Inc. Project)
Series '94 VRDN (d)
5,400 10/01/24 4.25 5,400,000
TRINITY RIVER IDA
(Radiation Sterilizers)
Series A VRDN (d)
150 11/01/05 3.70 150,000
-------------
10,550,000
UTAH-1.0%
UTAH BOARD OF REGENTS STUDENT
LOAN REVENUE
Series O AMBAC
2,000 5/01/98 3.96 2,000,000
UTAH HFA SFMR
(Home Mortgage Revenue)
Series '97-3 VRDN (d)
900 7/01/16 4.15 900,000
-------------
2,900,000
VERMONT-3.4%
VERMONT HEFA
(Capital Asset Financing Program)
Series '97-1 VRDN (d)
5,000 6/01/22 4.25 5,000,000
Series '97-2 VRDN (d)
5,000 6/01/27 4.25 5,000,000
-------------
10,000,000
VIRGINIA-5.5%
CHESTERFIELD COUNTY
IDR
(Philip Morris Co.)
VRDN (d)
11,100 4/01/09 4.25 11,100,000
LOUDOUN COUNTY IDA RESIDENTIAL
CARE FACILITY
(Falcons Landing Project)
Series '98 VRDN (d)
5,000 11/01/28 4.05 5,000,000
-------------
16,100,000
WASHINGTON-0.4%
WASHINGTON STUDENT LOAN FINANCE
ASSOCIATION
Series '88A AMT VRDN (d)
1,300 1/01/04 4.20 1,300,000
WEST VIRGINIA-0.7%
KEYSER IDR
(Keyser Associates Project)
VRDN (d)
1,900 7/01/14 4.20 1,900,000
9
STATEMENT OF NET ASSETS
(CONTINUED) ACM INSTITUTIONAL RESERVES - TAX-FREE PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY# YIELD VALUE
- -------------------------------------------------------------------------------
WISCONSIN-1.3%
MANITOWOC IDR
(Jagemann Stamping Co.)
Series '98 AMT VRDN (d)
$ 1,618 4/01/11 4.40% $ 1,618,000
WAUSAU PCR
(Minnesota Mining &
Manufacturing Co. Project)
VRDN (d)
500 12/01/01 4.73 500,000
1,600 8/01/17 4.73 1,600,000
-------------
3,718,000
TOTAL INVESTMENTS-98.8%
(amortized cost $290,113,982) 290,113,982
Other assets less liabilities-1.2% 3,649,664
NET ASSETS-100%
(offering and redemption price
of $1.00 per share; 293,847,141
shares outstanding) $ 293,763,646
# All securities either mature or their interest rate changes in one year or
less.
See Glossary of Terms on page 12.
See notes to financial statements.
10
STATEMENT OF NET ASSETS
APRIL 30, 1998 ACM INSTITUTIONAL RESERVES - TRUST PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY YIELD VALUE
- -------------------------------------------------------------------------------
COMMERCIAL PAPER-55.7%
ALLIANZ OF AMERICA
FINANCE CORP.
$ 4,000 5/29/98 (a) 5.46% $ 3,983,013
3,000 6/23/98 (a) 5.51 2,975,664
APEX FUNDING CORP.
4,700 5/26/98 (a) 5.87 4,680,841
ASSOCIATES CORP. OF NORTH AMERICA
5,000 6/25/98 5.48 4,958,139
5,000 6/24/98 5.52 4,958,600
BAA PLC
10,000 6/03/98 5.52 9,949,400
5,000 6/09/98 5.52 4,970,100
BANCA CRT FINANCIAL CORP.
2,400 5/20/98 5.52 2,393,008
BANCO DE SANTANDER
18,000 5/01/98 5.54 18,000,000
BANQUE CAISSE D'EPARGNE
5,000 6/22/98 5.50 4,960,278
2,000 6/03/98 5.53 1,989,862
BBV FINANCE DELAWARE, INC.
2,000 5/01/98 5.58 2,000,000
CAISSE CENTRALE JARDINS DU QUEBEC
3,455 9/21/98 5.46 3,380,067
CAISSE D' AMORTISSEMENT
1,000 7/10/98 5.60 989,111
CITICORP
10,000 5/01/98 5.54 10,000,000
CREGEM NORTH AMERICA, INC.
5,000 6/19/98 5.50 4,962,569
10,000 6/10/98 5.51 9,938,778
4,000 6/03/98 5.53 3,979,723
CS FIRST BOSTON, INC.
5,000 6/17/98 5.51 4,964,065
5,000 6/22/98 5.52 4,960,133
5,000 7/29/98 5.54 4,931,519
DEN DANSKE BANK
10,000 5/20/98 5.55 9,970,708
DEN NORSKE BANK
5,000 5/29/98 5.50 4,978,611
GENERAL ELECTRIC CAPITAL CORP.
4,000 5.55%, 11/17/98 FRN 5.55 4,000,000
GE FINANCIAL ASSURANCE HOLDINGS
15,000 6/11/98 5.52 14,905,700
GENERAL MOTORS ACCEPTANCE CORP.
10,000 6/11/98 5.51 9,937,247
IMI FUNDING CORP.
(USA)
5,000 6/24/98 5.44 4,959,200
5,000 9/04/98 5.47 4,904,275
4,000 6/10/98 5.52 3,975,467
2,500 6/04/98 5.60 2,486,778
MORGAN STANLEY GROUP, INC.
3,000 6/15/98 5.50 2,979,375
NORWEST CORP.
13,000 5/21/98 5.52 12,960,133
SALOMON SMITH BARNEY, INC.
18,000 6/02/98 5.52 17,911,680
UNIBANCO
5,000 6/15/98 5.53 4,965,438
VENANTIUS AB
4,485 6/29/98 5.50 4,444,573
---------------
Total Commercial Paper
(amortized cost $217,304,055) 217,304,055
CERTIFICATES OF DEPOSIT-13.3%
BAYERISCHE LANDESBANK
10,000 5.53%, 2/25/99 FRN 5.61 9,993,707
BAYERISCHE VEREINSBANK
10,000 5.64%, 2/25/99 5.64 10,000,000
CANADIAN IMPERIAL BANK OF COMMERCE
13,000 5.54%, 5/28/98 5.54 13,000,000
DEUTSCHE BANK
2,000 5.67%, 2/26/99 5.73 1,999,511
5,000 5.70%, 3/05/99 5.70 4,997,979
2,000 5.95%, 10/21/98 5.99 1,999,547
DRESDNER BANK
3,000 5.51%, 1/15/99 5.68 2,996,087
HESSISCHE LANDESBANK
1,000 5.94%, 6/19/98 5.81 999,997
NATIONAL WESTMINSTER BANK
3,000 5.65%, 3/03/99 5.71 2,998,773
SWISS BANK
3,000 5.66%, 3/04/99 5.71 2,999,033
---------------
Total Certificates of Deposit
(amortized cost $51,984,634) 51,984,634
CORPORATE OBLIGATIONS-9.7%
ALLSTATE LIFE INSURANCE
FUNDING AGREEMENT
5,000 5.69%, 8/31/98 FRN (b) 5.69 5,000,000
GENERAL AMERICAN FUNDING CORP.
4,000 5.86%, 7/10/98 FRN 5.86 4,000,000
8,000 5.89%, 7/10/98 FRN 5.89 8,000,000
MERRILL LYNCH & CO., INC.
8,000 5.61%, 1/29/99 FRN 5.61 8,000,000
3,000 5.88%, 8/26/98 5.88 3,000,000
11
STATEMENT OF NET ASSETS
(CONTINUED) ACM INSTITUTIONAL RESERVES - TRUST PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY YIELD VALUE
- -------------------------------------------------------------------------------
TRAVELERS LIFE FUNDING AGREEMENT
$ 5,000 5.64%, 4/14/99 FRN (b) 5.66% $ 5,000,000
5,000 5.67%, 10/21/98 FRN (b) 5.66 5,000,000
---------------
Total Corporate Obligations
(amortized cost $38,000,000) 38,000,000
BANK OBLIGATIONS-9.7%
BAYERISCHE LANDESBANK
7,000 5.53%, 3/23/99 FRN 5.61 6,995,092
2,000 5.69%, 10/02/98 FRN 5.69 2,000,000
BAYERISCHE VEREINSBANK
5,000 5.56%, 6/30/98 FRN 5.59 4,999,521
CITIBANK
10,000 5.52%, 6/15/98 5.52 9,931,000
DEUTSCHE BANK
2,000 5.52%, 7/01/98 FRN 5.62 1,999,676
MORGAN GUARANTY TRUST CO.
1,000 5.96%, 6/22/98 5.88 999,952
ROYAL BANK OF CANADA
2,000 5.65%, 9/30/98 FRN 5.65 2,000,000
SMM TRUST
5,000 5.66%, 12/14/98 FRN (a) 5.66 5,000,000
4,000 5.69%, 12/16/98 FRN (a) 5.69 4,000,000
---------------
Total Bank Obligations
(amortized cost $37,925,241) 37,925,241
TIME DEPOSITS-6.3%
FIRST UNION NATIONAL BANK
9,500 5.56%, 5/01/98 5.56 9,500,000
WESTDEUTSCHE LANDESBANK
15,000 5.56%, 5/01/98 5.56 15,000,000
---------------
Total Time Deposits
(amortized cost $24,500,000) 24,500,000
PROMISSORY NOTES-4.6%
GOLDMAN SACHS GROUP LP
4,000 5.61%, 8/07/98 5.61 4,000,000
7,000 5.63%, 10/13/98 5.63 7,000,000
7,000 5.68%, 5/27/98 5.68 7,000,000
---------------
Total Promissory Notes
(amortized cost $18,000,000) 18,000,000
U.S. GOVERNMENT & AGENCY
OBLIGATIONS-0.5%
FEDERAL NATIONAL MORTGAGE
ASSOCIATION
2,000 5.78%, 11/04/98
(amortized cost $1,999,158) 5.79 1,999,158
TOTAL INVESTMENTS-99.8%
(amortized cost $389,713,088) 389,713,088
Other assets less liabilities-0.2% 778,945
NET ASSETS-100%
(offering and redemption price
of $1.00 per share; 390,535,793
shares outstanding) $ 390,492,033
(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, 1998, these securities amounted to $142,395,355, representing 8.1% of net
assets on the Prime Portfolio, and $20,639,518, representing 5.3% of net assets
on the Trust Portfolio.
(b) Funding agreements are illiquid securities subject to restrictions as to
resale. These securities amounted to $70,000,000, representing 4.0% of net
assets on the Prime Portfolio, and $15,000,000, representing 3.8% of net assets
on the Trust Portfolio (see Note A to the financial statements).
(c) Repurchase agreement which is terminable within 7 days.
(d) Variable Rate Demand Notes (VRDN) are instruments whose interest rates
change on a specified date (such as a coupon date or interest payment date) or
whose interest rates vary with changes in a designated base rate (such as the
prime interest rate). These instruments are payable on demand and are secured
by letters of credit or other credit support agreements from major banks.
Periodic Put Bonds (PPB) are payable on demand quarterly, semi-annually or
annually and their interest rates change less frequently than rates on Variable
Rate Demand Notes.
Glossary of Terms:
AMBAC American Municipal Bond Assurance Corporation
AMT Alternative Minimum Tax
BAN Bond Anticipation Note
FGIC Financial Guaranty Insurance Company
FRN Floating Rate Note
FSA Financial Security Assurance, Inc.
GO General Obligation
HEFA Health & Educational Facility 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
SFMR Single Family Mortgage Revenue
TRAN Tax & Revenue Anticipation Note
See notes to financial statements.
12
STATEMENT OF OPERATIONS
YEAR ENDED APRIL 30, 1998 ACM INSTITUTIONAL RESERVES
_______________________________________________________________________________
PRIME GOVERNMENT TAX-FREE TRUST
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------ ------------ ------------
INVESTMENT INCOME
Interest $ 74,337,440 $ 16,920,793 $ 9,838,311 $ 15,589,391
EXPENSES
Advisory fee
(Note B) 2,597,281 600,906 516,640 1,225,381
Registration 257,929 86,249 60,277 88,229
Custodian 212,071 96,762 93,728 91,078
Audit and legal 37,281 15,674 14,196 14,363
Transfer agency 29,327 27,888 20,351 25,814
Printing 7,980 4,006 4,142 12,358
Directors' fees 7,979 7,979 7,979 7,979
Miscellaneous 10,041 4,836 4,404 4,670
Total expenses 3,159,889 844,300 721,717 1,469,872
Less: expense
reimbursement (562,608) (243,394) (205,077) (128,100)
Net expenses 2,597,281 600,906 516,640 1,341,772
Net investment
income 71,740,159 16,319,887 9,321,671 14,247,619
REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Net realized gain
on investment
transactions 84 1,000 168 13,207
Net change in
unrealized
appreciation of
investments -0- -0- (351) -0-
Net gain (loss)
on investments 84 1,000 (183) 13,207
NET INCREASE IN NET
ASSETS FROM
OPERATIONS $ 71,740,243 $ 16,320,887 $ 9,321,488 $ 14,260,826
See notes to financial statements.
13
STATEMENT OF CHANGES IN NET ASSETS ACM INSTITUTIONAL RESERVES
_______________________________________________________________________________
PRIME PORTFOLIO
---------------------------------
YEAR ENDED YEAR ENDED
APRIL 30, 1998 APRIL 30, 1997
--------------- ---------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
Net investment income $ 71,740,159 $ 40,100,886
Net realized gain (loss) on
investment transactions 84 1,928
Net change in unrealized appreciation
of investments -0- -0-
Net increase in net assets from
operations 71,740,243 40,102,814
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income (71,740,159) (40,100,886)
CAPITAL STOCK TRANSACTIONS
Net increase (decrease) 897,353,419 374,018,204
Total increase (decrease) 897,353,503 374,020,132
NET ASSETS
Beginning of year 867,339,355 493,319,223
End of year $ 1,764,692,858 $ 867,339,355
See notes to financial statements.
14
ACM INSTITUTIONAL RESERVES
_______________________________________________________________________________
GOVERNMENT PORTFOLIO TAX-FREE PORTFOLIO
--------------------------------- ---------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
APRIL 30, 1998 APRIL 30, 1997 APRIL 30, 1998 APRIL 30, 1997
--------------- --------------- --------------- ---------------
$ 16,319,887 $ 10,174,707 $ 9,321,671 $ 7,081,373
1,000 (2,140) 168 (90)
-0- -0- (351) 229
16,320,887 10,172,567 9,321,488 7,081,512
(16,319,887) (10,174,707) (9,321,671) (7,081,373)
(52,059,333) 175,705,670 110,698,884 (546,863)
(52,058,333) 175,703,530 110,698,701 (546,724)
326,519,708 150,816,178 183,064,945 183,611,669
$ 274,461,375 $ 326,519,708 $ 293,763,646 $ 183,064,945
TRUST PORTFOLIO
---------------------------------
YEAR ENDED YEAR ENDED
APRIL 30, 1998 APRIL 30, 1997
--------------- ---------------
$ 14,247,619 $ 9,713,883
13,207 (4,087)
-0- -0-
14,260,826 9,709,796
(14,247,619) (9,713,883)
214,797,663 5,619,828
214,810,870 5,615,741
175,681,163 170,065,422
$ 390,492,033 $ 175,681,163
15
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1998 ACM INSTITUTIONAL RESERVES
_______________________________________________________________________________
NOTE A: SIGNIFICANT ACCOUNTING POLICIES
ACM Institutional Reserves, Inc. (the "Fund") is registered under the
Investment Company Act of 1940 as an open-end investment company. The Fund
operates as a series company currently consisting of four Portfolios: Prime
Portfolio, Government Portfolio, Tax-Free Portfolio and Trust Portfolio. Each
Portfolio 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 financial statements have been prepared in conformity with
generally accepted accounting principles which require management to make
certain estimates and assumptions that affect the reported amounts of assets
and liabilities in the financial statements and amounts of income and expenses
during the reporting period. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Fund.
1. 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. Certain illiquid securities containing
unconditional par puts are also valued at amortized cost. Amortization of
premium is charged to income. Accretion of market discount is credited to
unrealized gain.
2. TAXES
It is the Fund's policy to meet the requirements of the Internal Revenue Code
applicable to regulated investment companies and to distribute all of its
investment company taxable income and net realized gains, if any, to its
shareholders. Therefore, no provisions for federal income or excise taxes are
required.
3. INVESTMENT INCOME AND INVESTMENT TRANSACTIONS
Interest income is accrued daily. Investment transactions are recorded on the
date securities are purchased or sold. Investment gains and losses are
determined on the identified cost basis.
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 year
end. Dividends paid by Tax-Free Portfolio from net investment income for the
year ended April 30, 1998 are exempt from federal income taxes. However,
certain shareholders may be subject to the alternative minimum tax.
5. REPURCHASE AGREEMENTS
It is the Fund's policy to take possession of securities as collateral under
repurchase agreements and to determine on a daily basis that the value of such
securities are sufficient to cover the value of the repurchase agreements.
NOTE B: ADVISORY FEE AND TRANSACTIONS WITH AN AFFILIATE OF THE ADVISER
Under the terms of an investment advisory agreement, the Fund pays Alliance
Capital Management L.P., (the "Adviser"), an advisory fee at the annual rate of
.20% of average daily net assets for the Prime, Government and Tax-Free
Portfolios and .45% 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 their average daily net assets for any fiscal year, and with respect to the
Trust Portfolio, from May 1, 1997 to July 13, 1997 for expenses exceeding .45%
of its average daily net assets and from July 14, 1997 to April 30, 1998 for
expenses exceeding .50% of its average daily net assets. For the year ended
April 30, 1998, reimbursement was $562,608, $243,394, $205,077 and $128,100 for
the Prime, Government, Tax-Free and Trust Portfolios, respectively.
Each Portfolio compensates Alliance Fund Services, Inc., a wholly-owned
subsidiary of the Adviser, under a Transfer Agency Agreement for providing
personnel and facilities to perform transfer agency services. Such compensation
for the Prime, Government, Tax-Free and Trust Portfolios, for the year ended
April 30, 1998, was $18,000 per Portfolio.
NOTE C: INVESTMENT TRANSACTIONS
At April 30, 1998, 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 gains at April 30, 1998 of $183,720, of
which $1,293 expires in 1999, $3,535 in 2000, $6,777 in 2001, $29,045 in 2002,
16
ACM INSTITUTIONAL RESERVES
_______________________________________________________________________________
$77,316 in 2003, $40,007 in 2004 and $25,747 in the year 2005; the Government
Portfolio had a capital loss carryforward of $130,349, of which $340 expires in
2000, $9,174 in 2001, $51,091 in 2002, $23,230 in 2003, $30,512 in 2004 and
$16,002 in the year 2005; the Tax-Free Portfolio had a capital loss
carryforward of $83,495, of which $6,110 expires in 2002, $76,925 in 2004, $400
in 2005 and $60 in the year 2006; and the Trust Portfolio had a capital loss
carryforward of $43,760, of which $6,915 expires in 2003, $30,219 in 2004,
$2,251 in 2005 and $4,375 in the year 2006.
NOTE D: CAPITAL STOCK
There are 4,000,000,000 shares of $.01 par value capital stock authorized. At
April 30, 1998, capital paid-in aggregated $1,764,876,578 on Prime Portfolio,
$274,591,724 on Government Portfolio, $293,847,141 on Tax-Free Portfolio, and
$390,535,793 on Trust Portfolio. Transactions, all at $1.00 per share, were as
follows:
YEAR ENDED YEAR ENDED
APRIL 30, 1998 APRIL 30, 1997
------------------ ------------------
PRIME PORTFOLIO
Shares sold 18,859,885,064 12,695,838,675
Shares issued on reinvestments
of dividends 71,740,159 40,100,886
Shares redeemed (18,034,271,804) (12,361,921,357)
Net increase 897,353,419 374,018,204
YEAR ENDED YEAR ENDED
APRIL 30, 1998 APRIL 30, 1997
------------------ ------------------
GOVERNMENT PORTFOLIO
Shares sold 1,463,678,015 1,074,902,562
Shares issued on reinvestments
of dividends 16,319,887 10,174,707
Shares redeemed (1,532,057,235) (909,371,599)
Net increase (decrease) (52,059,333) 175,705,670
YEAR ENDED YEAR ENDED
APRIL 30, 1998 APRIL 30, 1997
------------------ ------------------
TAX-FREE PORTFOLIO
Shares sold 2,187,340,593 1,486,189,526
Shares issued on reinvestments
of dividends 9,321,671 7,081,373
Shares redeemed (2,085,963,380) (1,493,817,762)
Net increase (decrease) 110,698,884 (546,863)
YEAR ENDED YEAR ENDED
APRIL 30, 1998 APRIL 30, 1997
------------------ ------------------
TRUST PORTFOLIO
Shares sold 1,732,157,312 1,074,544,780
Shares issued on reinvestments
of dividends 14,247,619 9,713,883
Shares redeemed (1,531,607,268) (1,078,638,835)
Net increase 214,797,663 5,619,828
17
FINANCIAL HIGHLIGHTS ACM INSTITUTIONAL RESERVES
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH YEAR
<TABLE>
<CAPTION>
PRIME PORTFOLIO
---------------------------------------------------------------
YEAR ENDED APRIL 30,
1998 1997 1996 1995 1994
----------- ----------- ----------- ----------- -----------
<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 .0552 .0530 .0560 .0502 .0325
LESS: DIVIDENDS
Dividends from net investment income (.0552) (.0530) (.0560) (.0502) (.0325)
Net asset value, end of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
TOTAL RETURN
Total investment return based on
net asset value (a) 5.68% 5.44% 5.76% 5.15% 3.30%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (in millions) $1,764.7 $867.3 $493.3 $197.8 $108.1
Ratios to average net assets of:
Expenses, net of waivers
and reimbursements .20% .20% .20% .20% .20%
Expenses, before waivers
and reimbursements .24% .29% .32% .36% .42%
Net investment income (b) 5.52% 5.31% 5.54% 5.24% 3.25%
</TABLE>
<TABLE>
<CAPTION>
GOVERNMENT PORTFOLIO
---------------------------------------------------------------
YEAR ENDED APRIL 30,
1998 1997 1996 1995 1994
----------- ----------- ----------- ----------- -----------
<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 .0543 .0519 .0552 .0493 .0315
LESS: DIVIDENDS
Dividends from net investment income (.0543) (.0519) (.0552) (.0493) (.0315)
Net asset value, end of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
TOTAL RETURN
Total investment return based on
net asset value (a) 5.58% 5.33% 5.67% 5.06% 3.20%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (in millions) $274.5 $326.5 $150.8 $104.4 $76.6
Ratios to average net assets of:
Expenses, net of waivers
and reimbursements .20% .20% .20% .20% .20%
Expenses, before waivers
and reimbursements .28% .35% .36% .38% .36%
Net investment income (b) 5.43% 5.22% 5.50% 4.94% 3.15%
</TABLE>
See footnote summary on page 19.
18
ACM INSTITUTIONAL RESERVES
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH YEAR
<TABLE>
<CAPTION>
TAX-FREE PORTFOLIO
---------------------------------------------------------------
YEAR ENDED APRIL 30,
1998 1997 1996 1995 1994
----------- ----------- ----------- ----------- -----------
<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 .0363 .0347 .0372 .0326 .0240
Net unrealized loss on investments -0- -0- -0- (.0048) -0-
Net increase in net asset value
from operations .0363 .0347 .0372 .0278 .0240
LESS: DIVIDENDS
Dividends from net investment income (.0363) (.0347) (.0372) (.0326) (.0240)
ADD: CAPITAL CONTRIBUTION
Capital Contributed by the Adviser -0- -0- -0- .0048 -0-
Net asset value, end of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
TOTAL RETURN
Total investment return based on
net asset value (a) 3.70% 3.53% 3.79% 3.31%(c) 2.43%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (in millions) $293.8 $183.1 $183.6 $35.5 $35.6
Ratios to average net assets of:
Expenses, net of waivers
and reimbursements .20% .20% .20% .20% .20%
Expenses, before waivers
and reimbursements .28% .33% .48% .76% .69%
Net investment income (b) 3.61% 3.46% 3.73% 3.31% 2.40%
</TABLE>
<TABLE>
<CAPTION>
TRUST PORTFOLIO
---------------------------------------------------------------
YEAR ENDED APRIL 30,
1998 1997 1996 1995 1994
----------- ----------- ----------- ----------- -----------
<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 .0523 .0492 .0527 .0479 .0309
LESS: DIVIDENDS
Dividends from net investment income (.0523) (.0492) (.0527) (.0479) (.0309)
Net asset value, end of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
TOTAL RETURN
Total investment return based on
net asset value (a) 5.37% 5.04% 5.41% 4.91% 3.14%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (in millions) $390.5 $175.7 $170.1 $109.2 $36.8
Ratios to average net assets of:
Expenses, net of waivers
and reimbursements .49% .50% .50% .49% .14%
Expenses, before waivers
and reimbursements .54% .57% .60% .75% 1.23%
Net investment income (b) 5.23% 4.93% 5.28% 5.31% 3.15%
</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) Capital contributed by the Adviser had no material effect on net asset
value, and therefore, no effect on total return.
19
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 net assets of ACM Institutional
Reserves--Prime, Government, Tax-Free and Trust Portfolios as of April 30, 1998
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, 1998 by correspondence with the custodian. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of ACM
Institutional Reserves--Prime, Government, Tax-Free and Trust Portfolios as of
April 30, 1998, 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 22, 1998
20
ACM INSTITUTIONAL RESERVES
_______________________________________________________________________________
ACM INSTITUTIONAL RESERVES
1345 Avenue of the Americas
New York, New York 10105
Toll-free 1 (800) 237-5822
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
RAYMOND J. PAPERA, SENIOR VICE PRESIDENT
KENNETH T. CARTY, VICE PRESIDENT
JOHN F. CHIODI, JR., VICE PRESIDENT
MARIA R. CONA, VICE PRESIDENT
FRANCES M. DUNN, VICE PRESIDENT
JOSEPH R. LASPINA, 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.
21
