ALLIANCE INSTITUTIONAL RESERVES
ANNUAL REPORT
APRIL 30, 1999
LETTER TO SHAREHOLDERS ALLIANCE INSTITUTIONAL RESERVES
_______________________________________________________________________________
June 28, 1999
Dear Shareholder:
We are pleased to provide an overview of the economic conditions during
Alliance Institutional Reserves' annual reporting period ended April 30, 1999.
Alliance Institutional Reserves consists of five portfolios--Prime, Government,
Tax Free, Trust, and Treasury. Each Portfolio's investment objectives are--in
the following order of priority--safety of principal, excellent liquidity, and
maximum current income to the extent consistent with the first two objectives.
ECONOMIC COMMENTARY
The past year and a half has seen the U.S. economy weather through many
significant world market crises (such as those in Asia and Brazil) relatively
unscathed. Modest productivity growth, subdued inflation, low unemployment,
stable interest rates, and a still-rising stock market have all contributed to
maintaining the current robust U.S. economy through those crises and into 1999.
Furthermore, we believe that many indicators point towards a moderate
continuation of these beneficial economic and inflationary trends as 1999
continues. Although we believe there is a possibility for a slight decrease in
economic growth and consumer purchases in the latter part of 1999, we still
expect that the U.S. economy will remain sound for the immediate, foreseeable
future.
In the first quarter of 1999, the U.S. gross domestic product (GDP) growth rate
came down to 4.5%--a beneficial slowdown of 1.5% from the fourth quarter of
1998's exceptional 6% growth rate. Conversely, consumer spending in the U.S.
rose during the same period. For example, physical merchandise purchases were
up 12% in the first quarter of 1999, while purchases of information processing
and related equipment were up 20%. Housing markets and both state and local
government spending were also up during the period under review, contributing
to the U.S. economy's current trend towards growth. These growth areas were
offset, however, by a general weakness in foreign trade, with exports dropping
nearly 8% in the first quarter of 1999. In fact, by our estimates, the U.S.
current account deficit could potentially increase to around $300 billion
dollars in 1999, up from $233 billion in 1998. This could contribute to a
possible modest slowdown in economic growth in the second half of 1999.
Throughout the period under review, consumer price index (CPI) inflation
remained low at only 1.7% year-on-year, while the core CPI inflation rate
(which excludes food and energy) remained at 2.1%--a record low, in fact.
Nevertheless, we believe that the possibility of further CPI inflation remains,
particularly in light of the recent price hike in oil prices from a 12-year low
of $9.55 a barrel to at times more than $18.00 a barrel. Mitigating these
inflationary factors somewhat are employment costs that have risen by only 3.0%
between March of 1998 and March of 1999, and unit labor costs which rose by
only 1.2% over the same period.
Interest rates remain low and, despite a trend toward global economic
stabilization, we anticipate that the Federal Reserve will resist raising rates
significantly in the immediate future. In our view, this is partially due to
the remaining risk of financial disorder in emerging markets, as well as the
Federal Reserve retaining a relaxed perspective on the current U.S. economy.
Altogether, we believe that these indicators point toward continued robustness
and moderate growth for the U.S. economy, and an excellent environment for
investors throughout the remainder of 1999.
Thank you for your continued interest in Alliance Institutional Reserves. We
look forward to reporting to you in the future.
Sincerely,
Ronald M. Whitehill
President
1
STATEMENT OF NET ASSETS
APRIL 30, 1999 ALLIANCE INSTITUTIONAL RESERVES - PRIME PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY YIELD VALUE
- -------------------------------------------------------------------------------
COMMERCIAL PAPER-48.6%
ASSOCIATES CORP. OF
NORTH AMERICA
$ 36,000 5/27/99 4.88% $ 35,873,120
AUSTRALIA NEW ZEALAND
DELAWARE
25,000 6/28/99 4.80 24,806,667
BANCO SANTANDER PR
25,000 7/13/99 4.82 24,755,653
13,787 5/11/99 4.88 13,768,311
BANK OF AMERICA
55,000 6/08/99 4.88 54,716,689
25,000 5/11/99 4.93 24,965,764
BANK OF NOVA SCOTIA
25,000 5/24/99 4.84 24,922,694
BANQUE CAISSE
D'EPARGNE L'ETAT
48,500 7/08/99 4.81 48,059,351
20,000 8/12/99 4.82 19,724,189
BANQUE GENERALE DU
LUXEMBOURG
10,000 6/14/99 4.81 9,941,211
80,000 9/15/99 4.86 78,520,400
BIL NORTH AMERICA, INC.
25,000 9/15/99 4.82 24,541,430
16,500 7/15/99 4.83 16,333,969
CAISSE CENTRALE JARDINS
DU QUEBEC
23,000 6/07/99 4.83 22,885,824
CS FIRST BOSTON,
GUERNSEY
35,000 6/15/99 (a) 4.85 34,787,813
20,000 9/09/99 (a) 4.87 19,645,572
CS FIRST BOSTON, INC.
15,000 6/14/99 (a) 4.85 14,911,083
DEN DANSKE CORP.
30,000 6/29/99 4.84 29,762,279
FIRST CHICAGO FINANCIAL
CORP.
10,000 6/28/99 4.84 9,922,022
10,250 6/29/99 4.85 10,168,527
15,000 9/16/99 4.85 14,721,125
FORD MOTOR CREDIT
CORP.
30,000 6/09/99 4.86 29,842,050
GENERAL ELECTRIC
FINANCIAL ASSURANCE
15,000 6/11/99 4.85 14,917,146
GENERALE BANK
14,688 6/16/99 4.84 14,597,163
GOVERNMENT
DEVELOPMENT BANK OF
PUERTO RICO
20,000 7/13/99 4.82 19,804,522
20,000 6/21/99 4.87 19,862,017
J.P. MORGAN & CO.
50,000 7/07/99 4.81 49,552,403
40,000 9/27/99 4.83 39,200,366
MORGAN STANLEY
GROUP, INC.
75,000 6/15/99 4.84 74,546,250
NATIONAL CITY CORP.
20,000 5/10/99 4.95 19,975,250
SHEFFIELD RECEIVABLES
CORP.
10,000 5/20/99 (a) 4.87 9,974,297
SOCIETE GENERALE N.A.,
INC.
35,000 6/23/99 4.84 34,750,863
UBS FINANCE DELAWARE,
INC.
50,000 6/10/99 4.85 49,730,333
UNI FUNDING, INC.
45,000 7/15/99 4.82 44,548,125
VATTENFALL TREASURY
35,000 6/16/99 4.80 34,785,333
25,000 9/15/99 4.82 24,541,430
10,000 6/16/99 4.84 9,938,156
15,000 6/16/99 4.85 14,907,042
WELLS FARGO CORP.
30,000 6/15/99 4.80 29,820,000
Total Commercial Paper
(amortized cost $1,093,026,439) 1,093,026,439
CORPORATE
OBLIGATIONS-20.2%
ALLMERICA FINANCIAL
LIFE INSURANCE CO. FRN
20,000 4.94%, 2/05/00 4.94 20,000,000
ALLSTATE LIFE INSURANCE
FUNDING AGREEMENT FRN
25,000 4.95%, 5/01/00 (b) 4.95 25,000,000
25,000 4.99%, 5/01/99 (b) 4.99 25,000,000
AMERICAN GENERAL LIFE
INSURANCE CO.
20,000 4.94%, 9/01/99 4.94 20,000,000
COMBINED INSURANCE
CO. OF AMERICA
20,000 4.98%, 7/27/99 4.98 20,000,000
2
ALLIANCE INSTITUTIONAL RESERVES - PRIME PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY YIELD VALUE
- -------------------------------------------------------------------------------
CS FIRST BOSTON, INC.
$ 12,000 4.87%, 6/08/99 FRN (a) 4.91% $ 11,999,497
GENERAL AMERICAN
FUNDING CORP. FRN
85,000 5.14%, 7/09/99 5.14 85,000,000
HARTFORD LIFE, INC.
40,000 4.94%, 3/16/00 (b) 4.94 40,000,000
MERRILL LYNCH & CO.,
INC.
35,000 4.89%, 6/01/99 FRN 4.89 35,000,000
25,000 5.00%, 9/30/99 FRN 5.00 25,000,000
10,000 5.09%, 2/07/00 MTN 5.09 10,000,000
PRUDENTIAL INSURANCE
CO. OF AMERICA FUNDING
AGREEMENT
16,000 4.95%, 11/30/00 FRN 4.95 16,000,000
SECURITY BENEFIT LIFE
INSURANCE CO.
30,000 5.09%, 9/14/99 5.09 30,000,000
SIGMA FINANCE FRN
25,000 4.94%, 9/15/99 (a) 4.94 25,000,000
20,000 5.00%, 9/15/99 (a) 5.00 20,000,000
TRAVELERS LIFE FUNDING
AGREEMENT FRN
20,000 4.91%, 4/14/00 4.91 20,000,000
25,000 4.95%, 10/21/99 (b) 4.95 25,000,000
Total Corporate Obligations
(amortized cost $452,999,497) 452,999,497
CERTIFICATES OF
DEPOSIT-11.6%
BAYERISCHE LANDESBANK
FRN
60,000 4.89%, 3/30/00 4.95 59,967,629
CREDIT COMMUNAL DE
BELGIQUE
50,000 4.90%, 6/15/99 4.90 50,000,000
NATIONAL WESTMINSTER
BANK FRN
35,000 4.88%, 4/17/00 4.94 34,981,082
NORDEUTSCHE LANDESBANK
10,000 5.66%, 7/27/99 5.71 9,998,858
RABOBANK NEDERLAND
10,000 5.65%, 7/26/99 5.70 9,998,871
STATE STREET BANK &
TRUST CO.
20,000 4.95%, 9/13/99 4.95 20,000,000
TORONTO DOMINION BANK
15,000 5.07%, 2/17/00 5.10 14,995,951
15,000 5.30%, 3/06/00 5.34 14,995,713
UBS FINANCE STAMFORD,
INC.
20,000 5.16%, 2/28/00 5.19 19,995,205
25,000 5.29%, 3/07/00 5.12 25,029,772
Total Certificates of Deposit
(amortized cost $259,963,081) 259,963,081
U.S. GOVERNMENT &
AGENCY OBLIGATIONS-6.1%
FEDERAL HOME LOAN
BANK
21,325 5.00%, 2/10/00 5.00 21,325,000
FEDERAL NATIONAL
MORTGAGE ASSOCIATION
FRN
35,000 4.87%, 5/21/99 4.95 34,998,512
STUDENT LOAN MARKETING
ASSOCIATION FRN
15,000 5.13%, 11/24/99 5.16 14,997,448
40,000 5.16%, 2/04/00 5.18 39,994,016
25,000 5.21%, 11/09/99 5.27 24,992,241
Total U.S. Government &
Agency Obligations
(amortized cost $136,307,217) 136,307,217
BANK OBLIGATIONS-5.3%
ABBEY NATIONAL
TREASURY SERVICES FRN
35,000 4.80%, 7/15/99 4.87 34,995,438
LASALLE NATIONAL BANK
25,000 4.90%, 6/15/99 4.90 25,000,000
15,000 4.90%, 6/22/99 4.90 15,000,000
ROYAL BANK OF CANADA
FRN
45,000 5.01%, 8/25/99 5.09 44,988,816
Total Bank Obligations
(amortized cost $119,984,254) 119,984,254
PROMISSORY NOTES-4.5%
GOLDMAN SACHS
GROUP LP
30,000 4.95%, 8/02/99 (a) 4.95 30,000,000
30,000 4.98%, 5/24/99 (a) 4.98 30,000,000
40,000 4.98%, 10/12/99 (a) 4.98 40,000,000
Total Promissory Notes
(amortized cost $100,000,000) 100,000,000
3
STATEMENT OF NET ASSETS
(CONTINUED) ALLIANCE INSTITUTIONAL RESERVES - PRIME PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY YIELD VALUE
- -------------------------------------------------------------------------------
TIME DEPOSIT-3.9%
BANK OF MONTREAL
$ 86,700 5.00%, 5/03/99
(amortized
cost $86,700,000) 5.00% $ 86,700,000
TOTAL INVESTMENTS-100.2%
(amortized
cost $2,248,980,488) 2,248,980,488
Other assets less
liabilities-(0.2%) (3,715,820)
NET ASSETS-100%
(offering and redemption
price of $1.00 per share;
1,671,016,155 Class A shares;
536,066,979 Class B shares
and 38,318,343 Class C
shares outstanding) $ 2,245,264,668
See Glossary of Terms on page 16.
See notes to financial statements.
4
STATEMENT OF NET ASSETS
APRIL 30, 1999 ALLIANCE INSTITUTIONAL RESERVES - GOVERNMENT PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY YIELD VALUE
- -------------------------------------------------------------------------------
U.S. GOVERNMENT &
AGENCY OBLIGATIONS-80.5%
FEDERAL HOME LOAN
MORTGAGE CORP.-24.1%
$ 5,300 5/25/99 4.75% $ 5,283,323
7,000 7/13/99 4.78 6,933,002
2,000 5/18/99 4.79 1,995,504
2,000 5/20/99 4.79 1,994,976
3,000 5/24/99 4.79 2,990,896
5,000 5/28/99 4.79 4,982,188
5,300 8/23/99 4.79 5,220,951
5,500 8/10/99 4.80 5,427,168
5,300 8/13/99 4.80 5,227,732
6,000 8/20/99 4.80 5,912,680
3,000 5/18/99 4.81 2,993,228
5,000 6/23/99 4.81 4,965,035
10,000 6/25/99 4.81 9,927,736
5,000 7/06/99 4.81 4,956,458
5,300 9/13/99 4.81 5,206,389
5,000 5/14/99 4.82 4,991,351
6,000 6/11/99 4.82 5,967,405
7,500 7/09/99 4.83 7,431,642
2,000 7/16/99 4.83 1,979,902
2,200 5/26/99 4.84 2,192,667
3,390 7/14/99 4.85 3,356,691
4,000 8/06/99 4.85 3,948,752
5,000 10/01/99 4.86 4,899,275
9,517 5/14/99 4.87 9,500,676
5,000 6/04/99 4.88 4,977,428
5,400 5/06/99 4.93 5,396,377
128,659,432
STUDENT LOAN
MARKETING
ASSOCIATION-22.9%
4,500 4.59%, 7/12/99 FRN 4.95 4,496,728
24,000 5.04%, 7/15/99 FRN 5.04 24,000,000
15,000 5.10%, 6/30/99 FRN 5.11 14,999,757
4,000 5.11%, 6/17/99 FRN 5.11 4,000,000
10,000 5.11%, 12/03/99 FRN 5.15 9,997,633
15,000 5.11%, 2/14/00 FRN 5.17 14,993,024
10,000 5.13%, 11/24/99 FRN 5.16 9,998,299
15,000 5.14%, 9/30/99 FRN 5.14 15,000,000
15,000 5.16%, 2/04/00 FRN 5.18 14,997,756
10,000 5.21%, 11/09/99 FRN 5.27 9,996,896
122,480,093
FEDERAL NATIONAL
MORTGAGE
ASSOCIATION-15.7%
2,000 4.59%, 9/22/99 FRN 5.40 1,993,561
10,500 4.87%, 5/21/99 FRN 4.95 10,499,554
9,000 5.00%, 5/05/00 MTN 5.10 8,989,560
3,500 5.04%, 4/06/00 MTN 5.10 3,497,538
6,665 5/10/99 4.69 6,657,202
9,000 6/18/99 4.81 8,943,240
5,000 6/22/99 4.82 4,965,550
3,000 7/30/99 4.84 2,964,300
13,000 6/10/99 4.85 12,931,333
3,000 7/22/99 4.87 2,967,542
7,500 9/17/99 4.88 7,362,158
8,000 5/17/99 4.90 7,982,933
4,000 5/05/99 4.93 3,997,853
83,752,324
FEDERAL HOME
LOAN BANK-15.1%
2,000 4.90%, 8/12/99 FRN 5.41 1,997,144
5,000 4.92%, 8/18/99 FRN 4.97 4,999,253
7,000 5.06%, 12/01/99 FRN 5.14 6,996,979
5,000 6/30/99 4.87 4,960,417
20,000 2/10/00 5.00 19,999,610
5,500 2/25/00 5.00 5,497,875
7,000 3/03/00 5.03 6,998,165
2,000 2/17/00 5.07 1,998,144
2,000 2/18/00 5.07 1,998,138
14,000 3/17/00 5.12 14,000,000
3,000 3/03/00 5.15 2,998,692
8,000 3/08/00 5.23 7,994,885
80,439,302
FEDERAL FARM
CREDIT BANK-2.7%
2,000 5.43%, 8/02/99 MTN 4.96 2,001,732
3,200 6/30/99 4.87 3,174,667
9,000 9/01/99 4.87 8,995,979
14,172,378
Total U.S. Government &
Agency Obligations
(amortized cost $429,503,529) 429,503,529
REPURCHASE
AGREEMENTS-19.1%
ABN AMRO
25,000 4.92%, dated 4/30/99,
due 5/03/99 in the amount
of $25,010,250 (cost $25,000,000;
collateralized by $25,702,000
FNMA, 5.94%, 10/15/01,
value $25,430,873) (c) 4.92 25,000,000
PAINE WEBBER, INC.
25,000 4.93%, dated 4/30/99,
due 5/03/99 in the amount
of $25,010,271 (cost $25,000,000;
collateralized by $25,576,000
FNMA, 6.50%, 5/01/29,
value $25,645,978) (c) 4.93 25,000,000
PARIBAS CORP.
25,000 4.92%, dated 4/30/99,
due 5/03/99 in the amount
of $25,010,250 (cost $25,000,000;
collateralized by $24,786,000
FNMA, 7.06%, 8/14/07,
value $25,405,828) (c) 4.92 25,000,000
5
STATEMENT OF NET ASSETS
(CONTINUED) ALLIANCE INSTITUTIONAL RESERVES - GOVERNMENT PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY YIELD VALUE
- -------------------------------------------------------------------------------
PRUDENTIAL SECURITIES, INC.
$ 25,000 4.91%, dated 4/30/99,
due 5/03/99 in the amount
of $25,010,229 (cost $25,000,000;
collateralized by $27,335,000
FNMA, 6.00%, 9/01/13,
value $25,600,964) (c) 4.91% $ 25,000,000
STATE STREET BANK AND TRUST CO.
2,100 4.75%, dated 4/30/99,
due 5/03/99 in the amount
of $2,100,831 (cost $2,100,000;
collateralized by $2,090,000
U.S. Treasury Note,
5.50%, 12/31/00,
value $2,143,776)(c) 4.75 2,100,000
Total Repurchase
Agreements
(amortized cost $102,100,000) 102,100,000
TOTAL INVESTMENTS-99.6%
(amortized cost $531,603,529) 531,603,529
Other assets less
liabilities-0.4% 2,091,436
NET ASSETS-100%
(offering and redemption
price of $1.00 per share;
394,500,284 Class A shares;
136,101,347 Class B shares
and 3,223,494 Class C
shares outstanding) $ 533,694,965
See Glossary of Terms on page 16.
See notes to financial statements.
6
STATEMENT OF NET ASSETS
APRIL 30, 1999 ALLIANCE INSTITUTIONAL RESERVES - TAX-FREE PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY(D) YIELD VALUE
- -------------------------------------------------------------------------------
MUNICIPAL BONDS-91.1%
ALABAMA-2.0%
ARAB IDB
(SCI Manufacturing, Inc.)
Series '89 VRDN
$ 150 8/01/00 (e) 5.25% $150,000
DECATUR IDA
PCR: (Amoco Chemical
Project)
Series '95 AMT VRDN
5,000 5/01/25 (e) 4.30 5,000,000
SELMA IDR
(Specialty Minerals
Project)
Series '94 VRDN
4,000 11/01/09 (e) 4.05 4,000,000
9,150,000
ALASKA-3.3%
ALASKA HOUSING
FINANCE CORP.
(University of Alaska)
Series '97A VRDN
7,205 12/01/27 (e) 4.05 7,205,000
ANCHORAGE
Electric Utility Revenue
Series D VRDN
3,330 12/01/26 (e) 4.05 3,330,000
NORTH SLOPE ALASKA BOND
Series B FSA
4,350 6/30/99 3.00 4,371,871
14,906,871
ARIZONA-2.0%
APACHE COUNTY IDR
(Tucson Electric Power
Co. Project)
Series '83C VRDN
8,900 12/15/18 (e) 4.00 8,900,000
ARKANSAS-1.5%
ARKANSAS HOSPITAL
EQUIPMENT FINANCE
AUTHORITY
(AHA Pooled Financing
Program)
Series '98A VRDN
6,700 11/01/28 (e) 4.05 6,700,000
CALIFORNIA-2.6%
SAN DIEGO MFHR
(Paseo Point Apartments)
Series A VRDN
5,250 8/01/15 (e) 3.85 5,250,000
STUDENT EDUCATION
LOAN MARKET CORP.
California Student Loan
Revenue
Series '93A VRDN
6,500 11/01/02 (e) 4.05 6,500,000
11,750,000
COLORADO-2.4%
DOUGLAS COUNTY MFHR
(Autumn Chase Project)
Series '85 VRDN
10,950 7/01/06 (e) 3.90 10,950,000
DELAWARE-2.8%
DELAWARE ECONOMIC
DEVELOPMENT AUTHORITY
(Delmarva Power & Light)
Series '93C VRDN
8,150 10/01/28 (e) 4.20 8,150,000
DELAWARE IDR
(Delmarva Power & Light)
Series '88 AMT VRDN
4,500 10/01/17 (e) 4.40 4,500,000
12,650,000
DISTRICT OF COLUMBIA-6.6%
DISTRICT OF COLUMBIA
(American Society for
Micro Biology)
Series '99A VRDN
3,000 1/01/29 (e) 3.95 3,000,000
DISTRICT OF COLUMBIA
(Resources For The
Future, Inc.)
Series '98 VRDN
4,200 8/01/29 (e) 4.05 4,200,000
DISTRICT OF COLUMBIA GO
Series '92A-1 VRDN
4,300 10/01/07 (e) 4.30 4,300,000
Series '92A-4 VRDN
2,600 10/01/07 (e) 4.30 2,600,000
Series '92A-5 VRDN
4,000 10/01/07 (e) 4.30 4,000,000
Series '92A-6 VRDN
11,900 10/01/07 (e) 4.30 11,900,000
30,000,000
FLORIDA-8.1%
BROWARD COUNTY
HOUSING REVENUE
MFHR
(Margate Investments
Project) VRDN
4,000 11/01/05 (e) 4.05 4,000,000
HIGHLANDS COUNTY
HEALTH FACILITIES
(Adventist/Sunbelt)
Series A VRDN
4,000 11/15/26 (e) 4.05 4,000,000
JACKSONVILLE IDR
(St. John's Medical
Investors)
Series '96 VRDN
1,930 1/01/15 (e) 4.05 1,930,000
7
STATEMENT OF NET ASSETS
(CONTINUED) ALLIANCE INSTITUTIONAL RESERVES - TAX-FREE PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY(D) YIELD VALUE
- -------------------------------------------------------------------------------
MARION COUNTY
HFA MFHR
(Summer Trace Project)
Series '85D VRDN
$ 2,300 12/01/07 (e) 4.05% $ 2,300,000
PALM BEACH COUNTY
(Water & Sewer Revenue)
VRDN
6,300 10/01/11 (e) 5.35 6,300,000
PALM BEACH COUNTY
HFA MFHR
(Village Crossing Project)
Series '97B VRDN
3,300 10/01/27 (e) 4.05 3,300,000
TAMPA BAY WATER
(Utility System Revenue)
Series '98B FGIC
3,725 10/01/99 3.44 3,733,665
UNIVERSITY ATHLETIC
ASSOCIATION, INC. CAPITAL
IMPROVEMENT REVENUE
(University of Florida
Stadium Project)
Series '90 VRDN
5,000 2/01/20 (e) 4.30 5,000,000
VOLUSIA COUNTY
HFA MFHR
(Ocean Oaks Apartments)
Series '97B VRDN
5,795 10/01/27 (e) 4.05 5,795,000
36,358,665
GEORGIA-2.8%
GEORGIA HFA
(Single Family Mortgage)
Series '98C PPB
2,000 12/01/17 (e) 3.20 2,000,000
PUTNAM COUNTY IDA
(Georgia Power Co.
Plant Project 2nd)
Series '97 VRDN
4,200 9/01/29 (e) 4.30 4,200,000
SAVANNAH ECONOMIC
DEVELOPMENT AUTHORITY
(Georgia Kaolin)
Series '97 AMT VRDN
3,000 7/01/27 (e) 4.10 3,000,000
THOMASTON-UPSON
COUNTY IDR
(De Ster Production Corp.)
Series A AMT VRDN
3,300 10/01/09 (e) 4.30 3,300,000
12,500,000
IDAHO-0.3%
CUSTER COUNTY SOLID
WASTE REVENUE
(Hecla Mining Co. Project)
Series '97 AMT VRDN
1,300 7/01/07 (e) 4.15 1,300,000
ILLINOIS-6.9%
CHICAGO SCHOOL FINANCE
AUTHORITY
Series A FGIC
5,000 6/01/99 2.98 5,006,200
DES PLAINES COOK
COUNTY IDR
(CP Partners LLC Project)
Series '97A VRDN
6,730 11/01/15 (e) 4.05 6,730,000
ELMHURST HOSPITAL
REVENUE
(Joint Comm. Health Org.)
Series '88 VRDN
8,940 7/01/18 (e) 4.00 8,940,000
ILLINOIS DEVELOPMENT
FINANCE AUTHORITY
(D.E. Akin Seed Project)
AMT VRDN
1,000 11/01/04 (e) 4.20 1,000,000
ILLINOIS HEALTH FACILITIES
AUTHORITY
(Northwest Community
Hospital)
Series '85C VRDN
7,700 10/01/15 (e) 4.05 7,700,000
VERNON HILLS IDR
(Kinder Care Center)
VRDN
550 2/01/01 (e) 4.05 550,000
WEST CHICAGO IDR
(Acme Printing Co.)
Series '89 AMT VRDN
1,100 5/01/99 (e) 5.10 1,100,000
31,026,200
INDIANA-4.3%
GIBSON COUNTY IDR
(Toyota Motor
Manufacturing Project)
Series '98 AMT VRDN
2,500 1/01/28 (e) 4.05 2,500,000
INDIANA DEVELOPMENT
FINANCE AUTHORITY
Environmental
Improvement Bond
(USX Corp. Project)
PPB
3,000 12/01/22 (e) 3.00 3,000,000
INDIANA DEVELOPMENT
FINANCE AUTHORITY
REVENUE
(Alcoa Inc. Project)
Series '99 VRDN
13,905 1/01/17 (e) 4.20 13,905,000
19,405,000
8
ALLIANCE INSTITUTIONAL RESERVES - TAX-FREE PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY(D) YIELD VALUE
- -------------------------------------------------------------------------------
KENTUCKY-0.4%
BARBOURVILLE COLLEGE
REVENUE
(Union College Project)
Series A VRDN
$ 2,000 8/01/23 (e) 4.05% $ 2,000,000
LOUISIANA-7.9%
LAKE CHARLES PORT FACILITY
(Conoco Project)
Series '84 VRDN
5,800 11/01/11 (e) 4.25 5,800,000
LOUISIANA PUBLIC
FACILITY AUTHORITY
(Hospital Equipment
Finance Project)
Series '85A VRDN
18,000 12/01/10 (e) 4.00 18,000,000
SAINT CHARLES PARISH
POLLUTION CONTROL
REVENUE
(Shell Oil Co. Project)
Series '92B VRDN
4,700 10/01/22 (e) 4.20 4,700,000
WEST BATON ROUGE IDR
(Dow Chemical #3)
Series '94B VRDN
7,100 12/01/16 (e) 4.30 7,100,000
35,600,000
MAINE-2.0%
BIDDEFORD REVENUE
(DK Associates & Volk
Packaging Project)
Series '97 AMT VRDN
5,305 7/01/17 (e) 4.15 5,305,000
MAINE FINANCE AUTHORITY
(Barber Foods, Inc.)
Series '90B AMT VRDN
1,265 12/01/06 (e) 4.25 1,265,000
WESTBROOK IDA
(D & G Group Project)
AMT VRDN
2,690 5/01/17 (e) 4.15 2,690,000
9,260,000
MINNESOTA-0.3%
COTTAGE GROVE
(Minnesota Mining &
Manufacturing Co.
Project) VRDN
1,000 8/01/12 (e) 3.76 1,000,000
EDEN PRAIRIE IDA
(Kinder Care Project)
Series C VRDN
465 2/01/01 (e) 4.05 465,000
1,465,000
MISSISSIPPI-0.5%
MISSISSIPPI BUSINESS
AUTHORITY
(Triton Systems, Inc.)
Series '98A AMT VRDN
2,500 12/01/13 (e) 4.20 2,500,000
MISSOURI-0.7%
BLUE SPRINGS IDA
(Kinder Care Project)
Series C VRDN
540 2/01/01 (e) 4.05 540,000
BOONE COUNTY IDA
(Minnesota Mining &
Manufacturing Co.
Project)
VRDN
500 12/01/25 (e) 3.45 500,000
ST. LOUIS GENERAL
FUND REVENUE TRAN
Series '98
2,000 6/30/99 3.65 2,002,726
3,042,726
NEVADA-2.4%
WASHOE COUNTY IDR
(Sierra Pacific Power Co.)
Series '90 AMT VRDN
10,800 12/01/20 (e) 4.30 10,800,000
NEW JERSEY-0.8%
JERSEY CITY BAN
(Water Notes)
Series '98
3,500 9/17/99 3.44 3,507,338
NEW MEXICO-0.9%
NEW MEXICO MORTGAGE
FINANCE AUTHORITY SFMR
Series '99 PPB
4,000 8/03/99 (e) 3.05 4,000,000
OHIO-1.3%
BUTLER COUNTY
HEALTHCARE FACILITIES
(Knolls of Oxford)
Series '99 VRDN
3,265 3/01/29 (e) 4.10 3,265,000
WARREN COUNTY IDR
(Pioneer Industrial
Components Project)
Series '85 VRDN
2,500 12/01/05 (e) 5.45 2,500,000
5,765,000
OREGON-0.8%
OREGON ECONOMIC
DEVELOPMENT REVENUE
(Kyotaru Oregon Project)
Series '89 AMT VRDN
3,800 12/01/99 (e) 4.38 3,800,000
9
STATEMENT OF NET ASSETS
(CONTINUED) ALLIANCE INSTITUTIONAL RESERVES - TAX-FREE PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY(D) YIELD VALUE
- -------------------------------------------------------------------------------
PENNSYLVANIA-5.5%
ALLEGHENY COUNTY IDR
(United Jewish
Federation Project)
Series '96A VRDN
$ 11,320 10/01/26 (e) 4.05% $ 11,320,000
MONTGOMERY COUNTY
HIGHER EDUCATION &
HEALTH LOAN REVENUE
Series '96A VRDN
2,000 4/01/17 (e) 4.05 2,000,000
MONTGOMERY COUNTY IDA
(Kinder Care Project)
Series D VRDN
400 10/01/00 (e) 4.05 400,000
PHILADELPHIA SCHOOL
DISTRICT TRAN
Series A
6,000 6/30/99 3.63 6,005,901
PHILADELPHIA TRAN
5,000 6/30/99 3.64 5,004,871
VENANGO IDR
(Penzoil Co. Project)
Series '82A VRDN
285 12/01/12 (e) 4.10 285,000
25,015,772
RHODE ISLAND-0.7%
RHODE ISLAND HEALTH &
EDUCATION
(St. Andrews School)
Series '99 VRDN
3,000 12/01/29 (e) 4.30 3,000,000
SOUTH CAROLINA-4.5%
BERKELEY COUNTY IDR
(Nucor Corp. Project)
Series '97 AMT VRDN
5,400 4/01/30 (e) 4.05 5,400,000
Series '98 AMT VRDN
10,700 4/01/31 (e) 4.05 10,700,000
HILTON HEAD ISLAND BAN
4,000 9/14/99 3.10 4,005,818
20,105,818
TENNESSEE-0.7%
VOLUNTEER STATE STUDENT
LOAN REVENUE
(Student Funding Corp.)
Series '87A-2 AMT VRDN
3,000 12/01/17 (e) 4.00 3,000,000
TEXAS-6.5%
BRAZOS RIVER TEXAS
HARBOR NAVIGATION
DISTRICT
(Merey Sweeny Project)
Series '98 AMT VRDN
8,700 9/01/18 (e) 4.30 8,700,000
GULF COAST WASTE
DISPOSAL AUTHORITY
(Exxon Project)
VRDN
5,750 6/01/20 (e) 4.20 5,750,000
PORT ARTHUR NAVIGATION
DISTRICT
(Texaco Inc. Project)
Series '94 VRDN
2,000 10/01/24 (e) 4.25 2,000,000
PORT DEVELOPMENT CORP.
(Stolt Terminals)
Series '89 VRDN
2,165 1/15/14 (e) 3.90 2,165,000
SOUTHWEST HIGHER
EDUCATION AUTHORITY
(Southern Methodist
University)
VRDN
3,900 7/01/15 (e) 4.25 3,900,000
TEXAS TRAN
6,700 8/31/99 2.98 6,732,629
29,247,629
VERMONT-3.8%
VERMONT HEFA
(Capital Asset Financing
Program)
Series '97-1 VRDN
8,217 6/01/22 (e) 4.00 8,217,000
Series '97-2 VRDN
8,895 6/01/27 (e) 4.00 8,895,000
17,112,000
VIRGINIA-3.8%
CHESTERFIELD COUNTY IDR
(Philip Morris Co.)
VRDN
15,000 4/01/09 (e) 4.10 15,000,000
DINWIDDIE COUNTY IDA
(Chaparral Steel Project)
Series '98A AMT VRDN
1,000 9/01/28 (e) 4.30 1,000,000
KING GEORGE COUNTY IDA
(Birchwood Power Project)
Series '96 AMT VRDN
1,200 4/01/26 (e) 4.30 1,200,000
17,200,000
WASHINGTON-0.9%
PORT OF PORT ANGELES IDR
(Daishowa America Project)
Series '92B AMT VRDN
4,000 8/01/07 (e) 4.10 4,000,000
WEST VIRGINIA-0.4%
KEYSER IDR
(Keyser Associates
Project)
VRDN
1,800 7/01/14 (e) 4.05 1,800,000
10
ALLIANCE INSTITUTIONAL RESERVES - TAX-FREE PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY(D) YIELD VALUE
- -------------------------------------------------------------------------------
WISCONSIN-0.7%
MANITOWOC IDR
(Jagemann Stamping Co.)
Series '98 AMT VRDN
$ 1,618 4/01/11 (e) 4.15% $ 1,618,000
WAUSAU
(Minnesota Mining &
Manufacturing Co.
Project)
VRDN
1,600 8/01/17 (e) 3.76 1,600,000
3,218,000
Total Municipal Bonds
(amortized cost $411,036,019) 411,036,019
COMMERCIAL PAPER-8.7%
GEORGIA-1.6%
MUNICIPAL ELECTRIC
AUTHORITY
(Project One Ban)
Series B
7,100 5/06/99 2.90 7,100,000
ILLINOIS-1.8%
ILLINOIS EDUCATIONAL
FACILITIES AUTHORITY
(Pooled Financing
Program)
5,000 7/29/99 3.10 5,000,000
3,310 8/11/99 3.10 3,310,000
8,310,000
NEVADA-2.0%
LAS VEGAS VALLEY WATER
SNWA Revenue
Supported
Series A
5,000 5/07/99 2.85 5,000,000
4,000 5/12/99 2.85 4,000,000
9,000,000
NORTH CAROLINA-1.4%
NORTH CAROLINA
MUNICIPAL POWER CORP.
(Catawba Project #1)
6,110 5/07/99 3.05 6,110,000
TEXAS-1.9%
UNIVERSITY OF TEXAS
BOARD OF REGENTS
Series A
8,500 8/25/99 3.15 8,500,000
Total Commercial Paper
(amortized cost $39,020,000) 39,020,000
TOTAL INVESTMENTS-99.8%
(amortized cost $450,056,019) 450,056,019
Other assets less
liabilities-0.2% 913,713
NET ASSETS-100%
(offering and redemption
price of $1.00 per share;
256,096,862 Class A shares;
192,730,218 Class B shares
and 2,226,147 Class C
shares outstanding) $ 450,969,732
See Glossary of Terms on page 16.
See notes to financial statements.
11
STATEMENT OF NET ASSETS
APRIL 30, 1999 ALLIANCE INSTITUTIONAL RESERVES - TRUST PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY YIELD VALUE
- -------------------------------------------------------------------------------
COMMERCIAL PAPER-44.0%
ALLIANZ OF AMERICA
FINANCE CORP.
$ 10,000 6/11/99 (a) 4.84% $ 9,944,878
ASSOCIATES CORP. OF
NORTH AMERICA
15,000 5/24/99 4.86 14,953,425
10,000 5/26/99 4.88 9,966,111
AUSTRALIA NEW ZEALAND
DELAWARE
10,000 6/21/99 4.80 9,932,000
BANCA CRT FINANCIAL
CORP.
18,000 6/30/99 4.86 17,854,200
4,450 5/12/99 4.87 4,443,378
BANK OF AMERICA
5,000 6/08/99 4.88 4,974,244
10,000 5/11/99 4.93 9,986,306
BANK OF NOVA SCOTIA
10,000 5/24/99 4.84 9,969,078
BANQUE GENERALE DU
LUXEMBOURG
20,000 9/15/99 4.86 19,630,100
CBA FINANCE, INC.
DELAWARE
5,000 9/15/99 4.84 4,907,906
CS FIRST BOSTON, INC.
10,000 5/28/99 (a) 4.85 9,963,625
15,000 6/10/99 (a) 4.85 14,919,167
DEN DANSKE
7,000 6/29/99 4.84 6,944,532
EKSPORTFINANS
20,000 5/12/99 4.84 19,970,422
FIRST CHICAGO FINANCIAL
CORP.
10,000 6/29/99 4.85 9,920,514
FORD MOTOR CREDIT
CORP.
10,000 6/09/99 4.86 9,947,350
GENERAL ELECTRIC
FINANCIAL ASSURANCE
8,000 6/11/99 4.85 7,955,811
5,000 6/14/99 4.86 4,970,300
GENERALE BANK
8,000 6/29/99 4.84 7,936,542
GOVERNMENT
DEVELOPMENT BANK OF
PUERTO RICO
5,000 7/13/99 4.82 4,951,131
5,000 6/21/99 4.87 4,965,504
MORGAN STANLEY GROUP,
INC.
25,000 6/15/99 4.84 24,848,750
5,000 5/28/99 4.85 4,981,812
NATIONAL CITY CORP.
4,500 5/10/99 4.95 4,494,431
SALOMON SMITH BARNEY,
INC.
5,000 6/10/99 4.84 4,973,111
SHEFFIELD RECEIVABLES
CORP.
10,000 5/20/99 (a) 4.87 9,974,297
SHELL FINANCE
NETHERLANDS
20,000 8/02/99 4.82 19,750,967
SOCIETE GENERALE N.A.,
INC.
10,000 6/23/99 4.84 9,928,818
UNI FUNDING, INC.
10,000 7/15/99 4.82 9,899,583
VATTENFALL TREASURY, INC.
10,000 6/23/99 4.84 9,928,744
10,000 6/16/99 4.85 9,938,028
WELLS FARGO CORP.
22,000 6/15/99 4.80 21,868,000
Total Commercial Paper
(amortized cost $349,593,065) 349,593,065
U.S. GOVERNMENT &
AGENCY OBLIGATIONS-23.4%
FEDERAL HOME LOAN
BANK
154,816 4.90%, 5/03/99 4.90 154,773,856
FEDERAL NATIONAL
MORTGAGE ASSOCIATION
FRN
7,000 4.87%, 5/21/99 4.95 6,999,702
STUDENT LOAN MARKETING
ASSOCIATION FRN
3,000 5.13%, 11/24/99 5.16 2,999,490
15,000 5.16%, 2/04/00 5.18 14,997,756
6,000 5.21%, 11/09/99 5.27 5,998,138
Total U.S. Government &
Agency Obligations
(amortized cost $185,768,942) 185,768,942
CORPORATE
OBLIGATIONS-13.7%
ALLMERICA FINANCIAL
LIFE INSURANCE FRN
5,000 4.94%, 2/05/00 4.94 5,000,000
ALLSTATE LIFE INSURANCE
FUNDING AGREEMENT FRN
5,000 4.97%, 9/01/99 (b) 4.97 5,000,000
AMERICAN GENERAL LIFE
INSURANCE CO.
5,000 4.94%, 9/01/99 4.94 5,000,000
COMBINED INSURANCE
CO. OF AMERICA
5,000 4.98%, 7/27/99 4.98 5,000,000
GENERAL AMERICAN
FUNDING CORP. FRN
20,000 5.14%, 7/09/99 5.14 20,000,000
HARTFORD LIFE
INSURANCE CO.
10,000 4.94%, 3/16/00 4.94 10,000,000
12
ALLIANCE INSTITUTIONAL RESERVES - TRUST PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY YIELD VALUE
- -------------------------------------------------------------------------------
MERRILL LYNCH & CO.,
INC. FRN
$ 5,000 4.89%, 6/01/99 4.89% $ 5,000,000
8,000 5.00%, 9/30/99 5.00 8,000,000
PRUDENTIAL INSURANCE
CO. OF AMERICA PPB
4,000 4.95%, 11/30/00 (e) 4.95 4,000,000
SECURITY BENEFIT LIFE
INSURANCE CO.
20,000 5.09%, 9/14/99 5.09 20,000,000
SIGMA FINANCE FRN
12,000 4.94%, 9/15/99 (a) 4.94 12,000,000
TRAVELERS LIFE FUNDING
AGREEMENT FRN
5,000 4.91%, 4/14/00 4.91 5,000,000
5,000 4.95%, 10/21/99 (b) 4.95 5,000,000
Total Corporate Obligations
(amortized cost $109,000,000) 109,000,000
BANK OBLIGATIONS-6.6%
ABBEY NATIONAL TREASURY
SERVICES FRN
10,000 4.80%, 7/15/99 4.87 9,998,696
BAYERISCHE
LANDESBANK FRN
18,000 4.89%, 3/30/00 4.99 17,990,289
LASALLE NATIONAL BANK
10,000 4.90%, 6/15/99 4.90 10,000,000
5,000 4.90%, 6/22/99 4.90 5,000,000
ROYAL BANK OF
CANADA FRN
10,000 5.01%, 8/25/99 5.09 9,997,515
Total Bank Obligations
(amortized cost $52,986,500) 52,986,500
TIME DEPOSITS-4.5%
BANK OF MONTREAL
20,000 5.00%, 5/03/99 5.00 20,000,000
WESTDEUTSCHE
LANDESBANK
15,500 4.94%, 5/03/99 4.94 15,500,000
Total Time Deposits
(amortized cost $35,500,000) 35,500,000
CERTIFICATES OF
DEPOSIT-4.0%
HESSISCHE LANDESBANK
5,000 5.22%, 2/29/00 5.24 4,998,998
NATIONAL WESTMINSTER
BANK FRN
7,000 4.88%, 4/17/00 4.94 6,996,216
STATE STREET BANK AND
TRUST CO.
5,000 4.95%, 9/13/99 4.95 5,000,000
TORONTO DOMINION BANK
5,000 5.07%, 2/17/00 5.10 4,998,651
5,000 5.30%, 3/06/00 5.34 4,998,571
UBS FINANCE DELAWARE
5,000 5.16%, 2/28/00 5.19 4,998,801
Total Certificates of Deposit
(amortized cost $31,991,237) 31,991,237
PROMISSORY NOTES-3.5%
GOLDMAN SACHS GROUP LP
10,000 4.95%, 8/02/99 (a) 4.95 10,000,000
7,000 4.98%, 5/24/99 (a) 4.98 7,000,000
11,000 4.98%, 10/12/99 (a) 4.98 11,000,000
Total Promissory Notes
(amortized cost $28,000,000) 28,000,000
TOTAL INVESTMENTS-99.7%
(amortized cost $792,839,744) 792,839,744
Other assets less
liabilities-0.3% 2,189,826
NET ASSETS-100%
(offering and redemption
price of $1.00 per share;
795,069,334 shares
outstanding) $795,029,570
See Glossary of Terms on page 16.
See notes to financial statements.
13
STATEMENT OF NET ASSETS
APRIL 30, 1999 ALLIANCE INSTITUTIONAL RESERVES - TREASURY PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY YIELD VALUE
- -------------------------------------------------------------------------------
U.S. GOVERNMENT
OBLIGATIONS-30.7%
U.S. TREASURY BILLS-16.2%
$ 5,000 6/17/99 4.42% $ 4,971,343
1,500 5/27/99 4.50 1,495,168
500 5/13/99 4.53 499,252
500 9/16/99 4.53 491,471
1,000 5/27/99 4.57 996,735
8,453,969
U.S. TREASURY NOTES-14.5%
1,000 7/15/99 4.46 1,003,701
2,000 8/31/99 4.55 2,007,671
3,500 9/30/99 4.55 3,515,234
1,000 5/31/99 4.68 1,001,132
7,527,738
Total U.S. Government
Obligations
(amortized cost $15,981,707) 15,981,707
REPURCHASE
AGREEMENTS-69.0%
ABN AMRO
2,000 4.87%, dated 4/30/99,
due 5/03/99 in the amount
of $2,000,812 (cost $2,000,000;
collateralized by $2,020,000
U.S. Treasury Note,
5.125%, 8/31/00,
value $2,040,947) (c) 4.87 2,000,000
BARCLAYS DE ZOETE WEDD
SECURITIES, INC.
1,000 4.72%, dated 3/29/99,
due 5/27/99 in the amount
of $1,007,736 (cost $1,000,000;
collateralized by $1,010,000
U.S. Treasury Note,
7.50%, 10/31/99,
value $1,060,759) (c) 4.72 1,000,000
BEAR STEARNS CO.
2,000 4.85%, dated 4/30/99,
due 5/03/99 in the amount
of $2,000,808 (cost $2,000,000;
collateralized by $2,085,000
U.S. Treasury Bond,
5.50%, 8/15/28,
value $2,046,337) (c) 4.85 2,000,000
CHASE SECURITIES, INC.
1,000 4.70%, dated 3/30/99,
due 5/28/99 in the amount
of $1,007,703 (cost $1,000,000;
collateralized by $945,000
U.S. Treasury Note,
7.50%, 11/15/01,
value $1,026,211) (c) 4.70 1,000,000
CIBC/WOOD GUNDY, INC.
2,000 4.75%, dated 4/30/99,
due 5/03/99 in the amount
of $2,000,792 (cost $2,000,000;
collateralized by $1,287,000
U.S. Treasury Bond,
14.00%, 11/15/11,
value $2,036,048) (c) 4.75 2,000,000
DEUTSCHE BANK
1,000 4.70%, dated 3/30/99,
due 5/28/99 in the amount
of $1,007,703 (cost $1,000,000;
collateralized by $996,000
U.S. Treasury Note,
6.125%, 7/31/00,
value $1,020,403) (c) 4.70 1,000,000
DEUTSCHE BANK
1,000 4.80%, dated 4/30/99,
due 5/03/99 in the amount
of $1,000,400 (cost $1,000,000;
collateralized by $1,015,000
U.S. Treasury Note,
4.00%, 10/31/00,
value $1,018,527) (c) 4.80 1,000,000
DRESDNER BANK AG
2,000 4.71%, dated 3/30/99,
due 5/28/99 in the amount
of $2,015,438 (cost $2,000,000;
collateralized by $1,949,000
U.S. Treasury Note,
6.75%, 4/30/00,
value $2,049,588) (c) 4.71 2,000,000
FIRST BOSTON CORP.
1,000 4.72%, dated 3/29/99,
due 5/28/99 in the amount
of $1,007,867 (cost $1,000,000;
collateralized by $893,000
U.S. Treasury Bond,
6.75%, 8/15/26,
value $1,028,294) (c) 4.72 1,000,000
FIRST BOSTON CORP.
1,000 4.80%, dated 4/30/99,
due 5/03/99 in the amount
of $1,000,400 (cost $1,000,000;
collateralized by $1,031,000
U.S. Treasury Bill,
7/29/99,
value $1,019,607) (c) 4.80 1,000,000
FIRST CHICAGO CORP.
1,000 4.70%, dated 3/31/99,
due 6/29/99 in the amount
of $1,011,750 (cost $1,000,000;
collateralized by $965,000
U.S. Treasury Note,
6.25%, 2/15/07,
value $1,022,088) (c) 4.70 1,000,000
14
ALLIANCE INSTITUTIONAL RESERVES - TREASURY PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY YIELD VALUE
- -------------------------------------------------------------------------------
FIRST CHICAGO CORP.
$ 1,000 4.80%, dated 4/30/99,
due 5/03/99 in the amount
of $1,000,400 (cost $1,000,000;
collateralized by $950,000
U.S. Treasury Note,
6.50%, 8/15/05,
value $1,022,740) (c) 4.80% $ 1,000,000
GOLDMAN SACHS & CO.
2,000 4.73%, dated 3/31/99,
due 5/05/99 in the amount of
$2,009,197 (cost $2,000,000;
collateralized by $1,465,000
U.S. Treasury Note,
9.125%, 5/15/18,
value $2,047,658) (c) 4.73 2,000,000
GREENWICH FUNDING CORP.
2,000 4.80%, dated 4/30/99,
due 5/03/99 in the amount
of $2,000,800 (cost $2,000,000;
collateralized by $2,000,000
U.S. Treasury Note,
5.625%, 2/15/06,
value $2,050,000) (c) 4.80 2,000,000
MERRILL LYNCH & CO., INC.
2,000 4.75%, dated 4/30/99,
due 5/03/99 in the amount
of $2,000,792 (cost $2,000,000;
collateralized by $1,855,000
U.S. Treasury Note,
7.50%, 5/15/02,
value $2,038,343) (c) 4.75 2,000,000
MORGAN (J.P.) & CO.
2,000 4.83%, dated 4/30/99,
due 5/03/99 in the amount
of $2,000,805 (cost $2,000,000;
collateralized by $1,976,000
U.S. Treasury Note,
5.625%, 11/30/00,
value $2,040,633) (c) 4.83 2,000,000
MORGAN STANLEY GROUP,
INC.
2,000 4.82%, dated 4/30/99,
due 5/03/99 in the amount
of $2,000,803 (cost $2,000,000;
collateralized by $1,815,000
U.S. Treasury Bond,
8.375%, 8/15/08,
value $2,046,859) (c) 4.82 2,000,000
NATIONSBANC MONTGOMERY
SECURITIES
2,000 4.75%, dated 4/30/99,
due 5/03/99 in the amount
of $2,000,792 (cost $2,000,000;
collateralized by $1,990,000
U.S. Treasury Note,
6.25%, 8/31/00,
value $2,042,021) (c) 4.75 2,000,000
PARIBAS CORP.
1,000 4.70%, dated 3/29/99,
due 5/26/99 in the amount
of $1,007,572 (cost $1,000,000;
collateralized by $791,000
U.S. Treasury Bond,
8.00%, 11/15/21,
value $1,017,241) (c) 4.70 1,000,000
PARIBAS CORP.
1,000 4.85%, dated 4/30/99,
due 5/03/99 in the amount
of $1,000,404 (cost $1,000,000;
collateralized by $999,000
U.S. Treasury Note,
6.375%, 7/15/99,
value $1,021,218) (c) 4.85 1,000,000
SALOMON SMITH BARNEY,
INC.
2,000 4.75%, dated 4/30/99,
due 5/03/99 in the amount
of $2,000,792 (cost $2,000,000;
collateralized by $1,820,000
U.S. Treasury Note,
7.50%, 2/15/05,
value $2,041,272) (c) 4.75 2,000,000
STATE STREET BANK AND
TRUST CO.
1,900 4.75%, dated 4/30/99,
due 5/03/99 in the amount
of $1,900,752 (cost $1,900,000;
collateralized by $1,890,000
U.S. Treasury Note,
5.50%, 12/31/00,
value $1,938,630) (c) 4.75 1,900,000
WARBURG SECURITIES
2,000 4.80%, dated 4/30/99,
due 5/03/99 in the amount
of $2,000,800 (cost $2,000,000;
collateralized by $1,767,000
U.S. Treasury Bond,
6.875%, 8/15/25,
value $2,043,509) (c) 4.80 2,000,000
Total Repurchase Agreements
(amortized cost $35,900,000) 35,900,000
15
STATEMENT OF NET ASSETS
(CONTINUED) ALLIANCE INSTITUTIONAL RESERVES - TREASURY PORTFOLIO
_______________________________________________________________________________
VALUE
- -------------------------------------------------------------------------------
TOTAL INVESTMENTS-99.7%
(amortized cost $51,881,707) $ 51,881,707
Other assets less
liabilities-0.3% 150,630
NET ASSETS-100%
(offering and redemption
price of $1.00 per share;
4,067,485 Class A shares,
14,885,766 Class B shares
and 33,081,429 Class C
shares outstanding) $ 52,032,337
(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, 1999, these securities amounted to $236,318,262, representing 10.5% of net
assets on the Prime Portfolio, and $84,801,967, representing 10.7% of net
assets on the Trust Portfolio.
(b) Funding agreements are illiquid securities subject to restrictions as to
resale. These securities amounted to $115,000,000, representing 5.1% of net
assets on the Prime Portfolio, and $10,000,000, representing 1.3% of net assets
on the Trust Portfolio (see Note A to the financial statements).
(c) Repurchase agreement which is terminable within 7 days.
(d) All securities either mature or their interest rate changes in one year or
less.
(e) 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:
AMT Alternative Minimum Tax
BAN Bond Anticipation Note
FGIC Financial Guarantee Insurance Company
FNMA Federal National Mortgage Association
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
MFHR Multi-Family Housing Revenue
MTN Medium Term Note
PCR Pollution Control Revenue
SFMR Single Family Mortgage Revenue
TRAN Tax & Revenue Anticipation Note
See notes to financial statements.
16
STATEMENT OF OPERATIONS
YEAR ENDED APRIL 30, 1999 ALLIANCE INSTITUTIONAL RESERVES
_______________________________________________________________________________
<TABLE>
<CAPTION>
PRIME GOVERNMENT TAX-FREE TRUST TREASURY
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO(A)
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Interest $ 114,920,128 $ 22,167,100 $ 13,721,615 $ 26,438,960 $ 1,225,724
EXPENSES
Advisory fee (Note B) 4,306,084 855,152 813,820 2,225,285 51,075
Distribution fee - Class B 207,634 65,988 86,382 -0- 4,030
Distribution fee - Class C 49,452 6,209 2,821 -0- 36,483
Registration 517,311 183,793 177,828 305,174 88,057
Custodian 281,255 134,113 118,321 117,234 63,596
Audit and legal 95,260 21,426 25,969 22,062 13,534
Transfer agency 32,174 29,146 22,506 25,836 14,186
Printing 17,792 3,518 3,837 7,926 8,306
Directors' fees 5,298 5,298 5,298 5,298 5,298
Miscellaneous 37,338 15,285 15,299 12,572 1,917
Total expenses 5,549,598 1,319,928 1,272,081 2,721,387 286,482
Less: expense reimbursement (986,428) (392,575) (369,058) (248,847) (194,894)
Net expenses 4,563,170 927,353 903,023 2,472,540 91,588
Net investment income 110,356,958 21,239,747 12,818,592 23,966,420 1,134,136
REALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) on
investment transactions 46,911 189 -0- 3,996 (2,192)
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 110,403,869 $ 21,239,936 $ 12,818,592 $ 23,970,416 $ 1,131,944
</TABLE>
(a) Commencement of operations, June 29, 1998.
See notes to financial statements.
17
STATEMENT OF CHANGES IN NET ASSETS ALLIANCE INSTITUTIONAL RESERVES
_______________________________________________________________________________
<TABLE>
<CAPTION>
PRIME PORTFOLIO GOVERNMENT PORTFOLIO
--------------------------------- ---------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
APRIL 30, 1999 APRIL 30, 1998 APRIL 30, 1999 APRIL 30, 1998
--------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS
Net investment income $ 110,356,958 $ 71,740,159 $ 21,239,747 $ 16,319,887
Net realized gain on
investment transactions 46,911 84 189 1,000
Net change in unrealized
appreciation of
investments -0- -0- -0- -0-
Net increase in net assets
from operations 110,403,869 71,740,243 21,239,936 16,320,887
DIVIDENDS AND DISTRIBUTIONS
TO SHAREHOLDERS FROM:
Net investment income
Class A (99,429,944) (71,740,159) (18,006,917) (16,319,887)
Class B (9,997,982) -0- (3,119,916) -0-
Class C (929,032) -0- (112,914) -0-
CAPITAL STOCK TRANSACTIONS
Net increase (decrease) 480,524,899 897,353,419 259,233,401 (52,059,333)
Total increase (decrease) 480,571,810 897,353,503 259,233,590 (52,058,333)
NET ASSETS
Beginning of year 1,764,692,858 867,339,355 274,461,375 326,519,708
End of year $ 2,245,264,668 $ 1,764,692,858 $ 533,694,965 $ 274,461,375
TREASURY
TAX-FREE PORTFOLIO TRUST PORTFOLIO PORTFOLIO
--------------------------------- --------------------------------- ---------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED PERIOD ENDED
APRIL 30, 1999 APRIL 30, 1998 APRIL 30, 1999 APRIL 30, 1998 APRIL 30, 1999(A)
--------------- --------------- --------------- --------------- ---------------
<C> <C> <C> <C> <C>
$ 12,818,592 $ 9,321,671 $ 23,966,420 $ 14,247,619 $ 1,134,136
-0- 168 3,996 13,207 (2,192)
-0- (351) -0- -0- -0-
12,818,592 9,321,488 23,970,416 14,260,826 1,131,944
(10,300,293) (9,321,671) (23,966,420) (14,247,619) (333,222)
(2,487,651) -0- -0- -0- (178,256)
(30,648) -0- -0- -0- (622,809)
157,206,086 110,698,884 404,533,541 214,797,663 52,034,680
157,206,086 110,698,701 404,537,537 214,810,870 52,032,337
293,763,646 183,064,945 390,492,033 175,681,163 -0-
$ 450,969,732 $ 293,763,646 $ 795,029,570 $ 390,492,033 $ 52,032,337
</TABLE>
(a) Commencement of operations, June 29, 1998.
See notes to financial statements.
18
ALLIANCE INSTITUTIONAL RESERVES
_______________________________________________________________________________
19
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1999 ALLIANCE INSTITUTIONAL RESERVES
_______________________________________________________________________________
NOTE A: SIGNIFICANT ACCOUNTING POLICIES
Alliance Institutional Reserves, Inc. (the "Fund") formerly ACM Institutional
Reserves, Inc., is registered under the Investment Company Act of 1940 as an
open-end investment company. On June 22, 1998 the creation of a second and
third class of shares, Class B and Class C shares, was approved by the Board of
Directors (with respect to the Prime, Government, Tax-Free and Treasury
Portfolios). The Fund operates as a series company currently consisting of five
Portfolios: Prime Portfolio, Government Portfolio, Tax-Free Portfolio, Trust
Portfolio and Treasury Portfolio. Each Portfolio is considered to be a separate
entity for financial reporting and tax purposes. The Prime, Government,
Treasury and Tax-Free Portfolios offer all three classes of shares. The Trust
Portfolio offers Class A shares. 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
period ended April 30, 1999 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, Tax-Free and
Treasury Portfolios and .45% of average daily net assets for the Trust
Portfolio. For the period ended April 30, 1999, the Adviser has agreed to
reimburse each of the Portfolios to the extent necessary to limit total
operating expenses on an annual basis to a certain limit (excluding taxes,
brokerage, interest and, where permitted, extraordinary expenses). For the
period ended April 30, 1999, reimbursement was $986,428, $392,575, $369,058,
$248,847 and $194,894 for the Prime, Government, Tax-Free, Trust and Treasury
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 was $18,000 per
Portfolio, and for the Treasury Portfolio, $6,000, for the period ended April
30, 1999.
For the period ended April 30, 1999, the Fund's expenses were reduced by $519,
$108 and $266 for the Prime, Government and Trust Portfolios, respectively
under an expense offset arrangement with Alliance Fund Services.
20
ALLIANCE INSTITUTIONAL RESERVES
_______________________________________________________________________________
NOTE C: DISTRIBUTION AGREEMENT
The Fund has adopted a Distribution Agreement (the "Agreement") which includes
for each Portfolio except the Trust Portfolio, a distribution plan pursuant to
Rule 12b-1 under the Investment Company Act of 1940. Under the Agreement, the
Fund pays a distribution fee to the Distributor at an annual rate of .10 of 1%
of the aggregate average daily net assets attributable to Class B shares of the
Prime, Government, Treasury and Tax-Free Portfolios and .25 of 1% of the
aggregate average daily net assets attributable to Class C shares of the Prime,
Government, Treasury and Tax-Free Portfolios. There is no distribution fee on
the Class A shares. Such fees are accrued daily and paid monthly. The Agreement
provides that the Distributor will use such payments in their entirety for
distribution assistance and promotional activities. The Agreement also provides
that the Adviser may use its own resources to finance the distribution of the
Fund's shares.
NOTE D: INVESTMENT TRANSACTIONS
At April 30, 1999, 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, 1999 of $136,809, of
which $71,055 expires in 2003, $40,007 in 2004 and $25,747 in the year 2005;
the Government Portfolio had a capital loss carryforward of $130,160, of which
$151 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; the Trust Portfolio had a capital loss
carryforward of $39,764, of which $2,919 expires in 2003, $30,219 in 2004,
$2,251 in 2005 and $4,375 in the year 2006; Treasury Portfolio had a capital
loss carryforward of $2,192, which expires in the year 2007.
NOTE E: CAPITAL STOCK
There are 65,000,000,000 shares of $.01 par value capital stock authorized. At
April 30, 1999, capital paid-in aggregated $2,245,401,477 on Prime Portfolio,
$533,825,125 on Government Portfolio, $451,053,227 on Tax-Free Portfolio,
$795,069,334 on Trust Portfolio and $52,034,680 on Treasury Portfolio.
Transactions, all at $1.00 per share, were as follows:
PRIME PORTFOLIO
------------------------------------------
YEAR ENDED YEAR ENDED
APRIL 30, APRIL 30,
1999 1998
------------------ ------------------
CLASS A
Shares sold 23,622,009,804 18,859,885,064
Shares issued on reinvestments
of dividends 99,429,944 71,740,159
Shares redeemed (23,815,300,171) (18,034,271,804)
Net increase (decrease) (93,860,423) 897,353,419
21
NOTES TO FINANCIAL STATEMENTS (CONTINUED) ALLIANCE INSTITUTIONAL RESERVES
_______________________________________________________________________________
PRIME PORTFOLIO
------------------------------------------
AUGUST 14, 1998*
TO
APRIL 30, 1999
------------------
CLASS B
Shares sold 2,348,283,090
Shares issued on reinvestments
of dividends 9,997,982
Shares redeemed (1,822,214,093)
Net increase 536,066,979
JULY 13, 1998*
TO
APRIL 30, 1999
------------------
CLASS C
Shares sold 103,018,527
Shares issued on reinvestments
of dividends 929,032
Shares redeemed (65,629,216)
Net increase 38,318,343
GOVERNMENT PORTFOLIO
------------------------------------------
YEAR ENDED YEAR ENDED
APRIL 30, APRIL 30,
1999 1998
------------------ ------------------
CLASS A
Shares sold 2,628,953,985 1,463,678,015
Shares issued on reinvestments
of dividends 18,006,917 16,319,887
Shares redeemed (2,527,052,342) (1,532,057,235)
Net increase (decrease) 119,908,560 (52,059,333)
AUGUST 7, 1998*
TO
APRIL 30, 1999
------------------
CLASS B
Shares sold 333,938,088
Shares issued on reinvestments
of dividends 3,119,916
Shares redeemed (200,956,657)
Net increase 136,101,347
OCTOBER 21, 1998*
TO
APRIL 30, 1999
------------------
CLASS C
Shares sold 17,279,127
Shares issued on reinvestments
of dividends 112,914
Shares redeemed (14,168,547)
Net increase 3,223,494
* Commencement of distribution.
22
ALLIANCE INSTITUTIONAL RESERVES
_______________________________________________________________________________
TAX-FREE PORTFOLIO
------------------------------------------
YEAR ENDED YEAR ENDED
APRIL 30, APRIL 30,
1999 1998
------------------ ------------------
CLASS A
Shares sold 2,015,274,013 2,187,340,593
Shares issued on reinvestments
of dividends 10,300,293 9,321,671
Shares redeemed (2,063,324,585) (2,085,963,380)
Net increase (decrease) (37,750,279) 110,698,884
AUGUST 17, 1998*
TO
APRIL 30, 1999
------------------
CLASS B
Shares sold 618,511,568
Shares issued on reinvestments
of dividends 2,487,651
Shares redeemed (428,269,001)
Net increase 192,730,218
SEPTEMBER 8, 1998*
TO
APRIL 30, 1999
------------------
CLASS C
Shares sold 10,344,376
Shares issued on reinvestments
of dividends 30,648
Shares redeemed (8,148,877)
Net increase 2,226,147
TRUST PORTFOLIO
------------------------------------------
YEAR ENDED YEAR ENDED
APRIL 30, APRIL 30,
1999 1998
------------------ ------------------
CLASS A
Shares sold 2,122,594,704 1,732,157,312
Shares issued on reinvestments
of dividends 23,966,420 14,247,619
Shares redeemed (1,742,027,583) (1,531,607,268)
Net increase 404,533,541 214,797,663
TREASURY PORTFOLIO
------------------------------------------
JUNE 29, 1998*
TO
APRIL 30, 1999
------------------
CLASS A
Shares sold 19,859,145
Shares issued on reinvestments
of dividends 333,222
Shares redeemed (16,124,882)
Net increase 4,067,485
* Commencement of distribution.
23
NOTES TO FINANCIAL STATEMENTS (CONTINUED) ALLIANCE INSTITUTIONAL RESERVES
_______________________________________________________________________________
TREASURY PORTFOLIO
------------------------------------------
DECEMBER 31, 1998*
TO
APRIL 30, 1999
------------------
CLASS B
Shares sold 40,092,172
Shares issued on reinvestments
of dividends 178,256
Shares redeemed (25,384,662)
Net increase 14,885,766
OCTOBER 15, 1998*
TO
APRIL 30, 1999
------------------
CLASS C
Shares sold 131,076,991
Shares issued on reinvestments
of dividends 622,809
Shares redeemed (98,618,371)
Net increase 33,081,429
* Commencement of distribution.
24
FINANCIAL HIGHLIGHTS ALLIANCE INSTITUTIONAL RESERVES
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
PRIME PORTFOLIO
-----------------------------------------------------------------
CLASS A
-----------------------------------------------------------------
YEAR ENDED APRIL 30,
-----------------------------------------------------------------
1999 1998 1997 1996 1995
----------- ----------- ----------- ----------- -----------
<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 (a) .0518 .0552 .0530 .0560 .0502
LESS: DIVIDENDS
Dividends from net investment income (.0518) (.0552) (.0530) (.0560) (.0502)
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 (b) 5.31% 5.68% 5.44% 5.76% 5.15%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (in millions) $1,671 $1,765 $867 $493 $198
Ratios to average net assets of:
Expenses, net of waivers and
reimbursements .20% .20% .20% .20% .20%
Expenses, before waivers and
reimbursements .24% .24% .29% .32% .36%
Net investment income (a) 5.16% 5.52% 5.31% 5.54% 5.24%
</TABLE>
PRIME PORTFOLIO
------------------
CLASS B
------------------
AUGUST 14, 1998(C)
TO
APRIL 30, 1999
------------------
Net asset value, beginning of period $ 1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (a) .0358
LESS: DIVIDENDS
Dividends from net investment income (.0358)
Net asset value, end of period $ 1.00
TOTAL RETURN
Total investment return based on net
asset value (b) 3.65%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $536
Ratios to average net assets of:
Expenses, net of waivers and
reimbursements (d) .30%
Expenses, before waivers and
reimbursements (d) .36%
Net investment income (a)(d) 4.82%
See footnote summary on page 33.
25
FINANCIAL HIGHLIGHTS (CONTINUED) ALLIANCE INSTITUTIONAL RESERVES
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
PRIME PORTFOLIO
------------------
CLASS C
------------------
JULY 13, 1998(C)
TO
APRIL 30, 1999
------------------
Net asset value, beginning of period $ 1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (a) .0392
LESS: DIVIDENDS
Dividends from net investment income (.0392)
Net asset value, end of period $ 1.00
TOTAL RETURN
Total investment return based on net
asset value (b) 3.86%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $38
Ratios to average net assets of:
Expenses, net of waivers and
reimbursements (d) .45%
Expenses, before waivers and
reimbursements (d) .51%
Net investment income (a)(d) 4.70%
See footnote summary on page 33.
26
ALLIANCE INSTITUTIONAL RESERVES
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
GOVERNMENT PORTFOLIO
-----------------------------------------------------------------
CLASS A
-----------------------------------------------------------------
YEAR ENDED APRIL 30,
-----------------------------------------------------------------
1999 1998 1997 1996 1995
----------- ----------- ----------- ----------- -----------
<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 (a) .0505 .0543 .0519 .0552 .0493
LESS: DIVIDENDS
Dividends from net investment income (.0505) (.0543) (.0519) (.0552) (.0493)
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 (b) 5.18% 5.58% 5.33% 5.67% 5.06%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (in millions) $394 $275 $327 $151 $104
Ratios to average net assets of:
Expenses, net of waivers and
reimbursements .20% .20% .20% .20% .20%
Expenses, before waivers and
reimbursements .29% .28% .35% .36% .38%
Net investment income (a) 5.01% 5.43% 5.22% 5.50% 4.94%
</TABLE>
GOVERNMENT PORTFOLIO
------------------
CLASS B
------------------
AUGUST 7, 1998(C)
TO
APRIL 30, 1999
------------------
Net asset value, beginning of period $ 1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (a) .0361
LESS: DIVIDENDS
Dividends from net investment income (.0361)
Net asset value, end of period $ 1.00
TOTAL RETURN
Total investment return based on net
asset value (b) 3.68%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $136
Ratios to average net assets of:
Expenses, net of waivers and
reimbursements (d) .30%
Expenses, before waivers and
reimbursements (d) .41%
Net investment income (a)(d) 4.73%
See footnote summary on page 33.
27
FINANCIAL HIGHLIGHTS (CONTINUED) ALLIANCE INSTITUTIONAL RESERVES
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
GOVERNMENT PORTFOLIO
------------------
CLASS C
------------------
OCTOBER 21, 1998(C)
TO
APRIL 30, 1999
------------------
Net asset value, beginning of period $ 1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (a) .0243
LESS: DIVIDENDS
Dividends from net investment income (.0243)
Net asset value, end of period $ 1.00
TOTAL RETURN
Total investment return based on
net asset value (b) 2.46%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $3
Ratios to average net assets of:
Expenses, net of waivers and
reimbursements (d) .45%
Expenses, before waivers and
reimbursements (d) .56%
Net investment income (a)(d) 4.55%
See footnote summary on page 33.
28
ALLIANCE INSTITUTIONAL RESERVES
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
TAX-FREE PORTFOLIO
-----------------------------------------------------------------
CLASS A
-----------------------------------------------------------------
YEAR ENDED APRIL 30,
-----------------------------------------------------------------
1999 1998 1997 1996 1995
----------- ----------- ----------- ----------- -----------
<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 (a) .0321 .0363 .0347 .0372 .0326
Net unrealized loss on investments -0- -0- -0- -0- (.0048)
Net increase in net asset value from
operations .0321 .0363 .0347 .0372 .0278
LESS: DIVIDENDS
Dividends from net investment income (.0321) (.0363) (.0347) (.0372) (.0326)
ADD: CAPITAL CONTRIBUTION
Capital Contributed by the Adviser -0- -0- -0- -0- .0048
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 (b) 3.26% 3.70% 3.53% 3.79% 3.31%(e)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (in millions) $256 $294 $183 $184 $36
Ratios to average net assets of:
Expenses, net of waivers and
reimbursements .20% .20% .20% .20% .20%
Expenses, before waivers and
reimbursements .28% .28% .33% .48% .76%
Net investment income (a) 3.22% 3.61% 3.46% 3.73% 3.31%
</TABLE>
TAX-FREE PORTFOLIO
------------------
CLASS B
------------------
AUGUST 17, 1998(C)
TO
APRIL 30, 1999
------------------
Net asset value, beginning of period $ 1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (a) .0210
LESS: DIVIDENDS
Dividends from net investment income (.0210)
Net asset value, end of period $ 1.00
TOTAL RETURN
Total investment return based on net
asset value (b) 2.13%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $193
Ratios to average net assets of:
Expenses, net of waivers and
reimbursements (d) .30%
Expenses, before waivers and
reimbursements (d) .42%
Net investment income (a)(d) 2.88%
See footnote summary on page 33.
29
FINANCIAL HIGHLIGHTS (CONTINUED) ALLIANCE INSTITUTIONAL RESERVES
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
TAX-FREE PORTFOLIO
------------------
CLASS C
------------------
SEPTEMBER 8, 1998(C)
TO
APRIL 30, 1999
------------------
Net asset value, beginning of period $ 1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (a) .0184
LESS: DIVIDENDS
Dividends from net investment income (.0184)
Net asset value, end of period $ 1.00
TOTAL RETURN
Total investment return based on net
asset value (b) 1.70%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $2
Ratios to average net assets of:
Expenses, net of waivers and
reimbursements (d) .45%
Expenses, before waivers and
reimbursements (d) .57%
Net investment income (a)(d) 2.69%
See footnote summary on page 33.
30
ALLIANCE INSTITUTIONAL RESERVES
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
TRUST PORTFOLIO
-----------------------------------------------------------------
CLASS A
-----------------------------------------------------------------
YEAR ENDED APRIL 30,
-----------------------------------------------------------------
1999 1998 1997 1996 1995
----------- ----------- ----------- ----------- -----------
<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 (a) .0489 .0523 .0492 .0527 .0479
LESS: DIVIDENDS
Dividends from net investment income (.0489) (.0523) (.0492) (.0527) (.0479)
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 (b) 5.01% 5.37% 5.04% 5.41% 4.91%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (in millions) $795 $391 $176 $170 $109
Ratios to average net assets of:
Expenses, net of waivers and
reimbursements .50% .49% .50% .50% .49%
Expenses, before waivers and
reimbursements .55% .54% .57% .60% .75%
Net investment income (a) 4.85% 5.23% 4.93% 5.28% 5.31%
</TABLE>
See footnote summary on page 33.
31
FINANCIAL HIGHLIGHTS (CONTINUED) ALLIANCE INSTITUTIONAL RESERVES
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
TREASURY PORTFOLIO
------------------
CLASS A
------------------
JUNE 29, 1998(C)
TO
APRIL 30, 1999
------------------
Net asset value, beginning of period $ 1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (a) .0401
LESS: DIVIDENDS
Dividends from net investment income (.0401)
Net asset value, end of period $ 1.00
TOTAL RETURN
Total investment return based on net
asset value (b) 4.09%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $4
Ratios to average net assets of:
Expenses, net of waivers and
reimbursements (d) .20%
Expenses, before waivers and
reimbursements (d) 1.42%
Net investment income (a)(d) 4.82%
TREASURY PORTFOLIO
------------------
CLASS B
------------------
DECEMBER 31, 1998(C)
TO
APRIL 30, 1999
------------------
Net asset value, beginning of period $ 1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (a) .0143
LESS: DIVIDENDS
Dividends from net investment income (.0143)
Net asset value, end of period $ 1.00
TOTAL RETURN
Total investment return based on net
asset value (b) 1.44%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $15
Ratios to average net assets of:
Expenses, net of waivers and
reimbursements (d) .30%
Expenses, before waivers and
reimbursements (d) 1.08%
Net investment income (a)(d) 4.42%
See footnote summary on page 33.
32
ALLIANCE INSTITUTIONAL RESERVES
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
TREASURY PORTFOLIO
------------------
CLASS C
------------------
OCTOBER 15, 1998(C)
TO
APRIL 30, 1999
------------------
Net asset value, beginning of period $ 1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (a) .0248
LESS: DIVIDENDS
Dividends from net investment income (.0248)
Net asset value, end of period $ 1.00
TOTAL RETURN
Total investment return based on net
asset value (b) 2.51%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $33
Ratios to average net assets of:
Expenses, net of waivers and
reimbursements (d) .45%
Expenses, before waivers and
reimbursements (d) .99%
Net investment income (a)(d) 4.27%
(a) Net of expenses reimbursed or waived by the Adviser.
(b) Total investment return is calculated assuming an initial investment made
at the net asset value at the beginning of the period, reinvestment of all
dividends at net asset value during the period, and redemption on the last day
if the period. Total investment return calculated for a period of less than one
year is not annualized.
(c) Commencement of distribution.
(d) Annualized.
(e) Capital contributed by the Adviser had no material effect on net asset
value, and therefore, no effect on total return.
33
INDEPENDENT AUDITOR'S REPORT ALLIANCE INSTITUTIONAL RESERVES
_______________________________________________________________________________
TO THE BOARD OF DIRECTORS AND SHAREHOLDERS ALLIANCE INSTITUTIONAL RESERVES, INC.
We have audited the accompanying statements of net assets of Alliance
Institutional Reserves (formerly ACMInstitutional Reserves)--Prime, Government,
Tax-Free, Trust and Treasury Portfolios as of April 30, 1999 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, 1999 by correspondence with the custodian and brokers. 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
Alliance Institutional Reserves--Prime, Government, Tax-Free, Trust and
Treasury Portfolios as of April 30, 1999, 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 27, 1999
34
ALLIANCE INSTITUTIONAL RESERVES
_______________________________________________________________________________
ALLIANCE INSTITUTIONAL RESERVES, INC.
1345 Avenue of the Americas
New York, NY 10105
Toll-free 1(800) 221-5672
TRUSTEES
JOHN D. CARIFA, CHAIRMAN
RUTH BLOCK (1)
DAVID H. DIEVLER (1)
JOHN H. DOBKIN (1)
WILLIAM H. FOULK, JR. (1)
JAMES M. HESTER (1)
CLIFFORD L. MICHEL (1)
DONALD J. ROBINSON (1)
OFFICERS
RONALD M. WHITEHILL, PRESIDENT
KATHLEEN A. CORBET, SENIOR VICE PRESIDENT
DREW A. 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. LA SPINA, 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 LLP
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
(1) Member of the audit committee.
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.
R THESE REGISTERED SERVICE MARKS USED UNDER LICENSE FROM THE OWNER, ALLIANCE
CAPITAL MANAGEMENT L.P.
35
