ALLIANCE
-----------------
INSTITUTIONAL
-----------------
RESERVES
-----------------
SEMI-ANNUAL REPORT
OCTOBER 31, 1998
(UNAUDITED)
<PAGE>
PORTFOLIO OF INVESTMENTS
October 31, 1998 (unaudited) Alliance Institutional Reserves - Prime Portfolio
================================================================================
Principal
Amount
(000) Security Yield Value
- --------------------------------------------------------------------------------
COMMERCIAL PAPER-50.1%
Abbey National
Treasury Services
$ 20,000 3/22/99 ................ 4.80% $ 19,626,667
AKZO Nobel, Inc.
11,000 11/02/98 ............... 5.68 11,000,000
Allianz of America
Finance Corp.
9,000 3/19/99 (a)............. 5.12 8,824,640
13,655 11/19/98 (a)............ 5.20 13,621,469
15,000 11/18/98 (a)............ 5.43 14,963,800
13,500 11/06/98 (a)............ 5.52 13,491,720
Associates Corp. of
North America
35,000 2/11/99 ................ 5.03 34,506,082
40,000 11/30/98 ............... 5.21 39,837,911
BAA Plc
30,157 11/10/98 ............... 5.30 30,121,482
Bank of America
40,000 3/24/99 ................ 4.86 39,233,200
Bankers Trust Alex
Brown, Inc. FRN
30,000 2/16/99 (b)............. 4.81 30,000,000
Banque Caisse
d'Epargne
55,000 12/07/98 ............... 5.22 54,720,875
35,000 11/30/98 ............... 5.52 34,849,733
Bil North America, Inc.
15,000 11/04/98 ............... 5.32 14,995,567
Caisse Centrale Jardins
du Quebec
5,000 4/26/99 ................ 4.82 4,882,847
7,000 11/02/98 ............... 5.30 7,000,000
Chase Manhattan Bank
20,000 12/21/98 ............... 5.20 19,858,444
20,000 12/15/98 ............... 5.22 19,875,300
Commonwealth Bank
of Australia
20,000 12/28/98 ............... 5.08 19,841,955
CS First Boston,
Guernsey
30,000 12/14/98 ............... 5.41 29,810,650
25,000 12/02/98 ............... 5.46 24,886,250
CS First Boston, Inc.
25,000 3/24/99 ................ 5.28 25,000,000
6,000 11/04/98 ............... 5.55 5,998,150
Dresdner Bank
4,000 11/06/98 ............... 5.44 3,997,582
Eastman Kodak Co.
10,000 11/19/98 ............... 5.42 9,974,406
First Chicago Financial
Corp.
25,000 11/10/98 ............... 5.28 24,970,667
General Electric
Capital Corp.
9,500 11/20/98 ............... 5.28 9,474,920
30,000 11/17/98 FRN............ 5.61 30,000,000
General Electric
Financial Assurance
50,000 12/22/98 ............... 5.29 49,632,639
Henkel Corp.
6,960 11/09/98 ............... 5.30 6,952,827
IMI Funding Corp.
(USA)
8,265 12/18/98 ............... 5.38 8,208,183
International
Nederland Bank
10,000 12/21/98 ............... 5.52 9,924,867
Kredietbank North
America Finance Corp.
25,000 12/24/98 ............... 5.02 24,818,722
Morgan Stanley
Group, Inc.
30,000 3/24/99 ................ 5.20 29,384,667
60,000 11/16/98 ............... 5.47 59,872,367
Norwest Corp.
15,000 2/05/99 ................ 4.95 14,804,062
20,000 11/30/98 ............... 5.42 19,915,689
Republic of New York
Corp.
40,000 11/02/98 ............... 5.68 40,000,000
Salomon Smith Barney,
Inc.
10,000 11/09/98 ............... 5.30 9,989,694
20,000 12/01/98 ............... 5.46 19,912,033
Scotia Bank
25,000 11/16/98 ............... 5.40 24,947,500
Special Purpose Accounts
Receivable Corp.
20,000 11/16/98 (a)............ 5.30 19,958,778
UBS Finance Delaware,
Inc.
47,775 11/13/98 ............... 5.28 47,697,923
Vattenfall Treasury
30,000 1/08/99 ................ 5.05 29,718,042
--------------
Total Commercial Paper
(amortized cost $1,011,102,310) 1,011,102,310
--------------
CORPORATE
OBLIGATIONS-20.6%
Allstate Life Insurance
Funding Agreement FRN
25,000 5.39%, 5/01/99 (b)...... 5.39 25,000,000
American General Life
Insurance Co.
20,000 5.34%, 9/01/99 ......... 5.34 20,000,000
Combined Insurance
Co. of America
20,000 5.20%, 7/27/99 ......... 5.20 20,000,000
General American
Funding Corp. FRN
85,000 5.79%, 7/09/99 ......... 5.79 85,000,000
1
<PAGE>
PORTFOLIO OF INVESTMENTS
(continued) Alliance Institutional Reserves - Prime Portfolio
================================================================================
Principal
Amount
(000) Security Yield Value
- --------------------------------------------------------------------------------
Lasalle National Bank
$ 5,000 4.90%, 3/17/99 ......... 4.90% $ 5,000,000
Merrill Lynch & Co.,
Inc. FRN
25,000 5.31%, 9/30/99 ......... 5.31 25,000,000
15,000 5.36%, 2/16/99 ......... 5.36 15,000,000
35,000 5.62%, 6/01/99 ......... 5.62 35,000,000
Security Benefit Life
Insurance Co.
30,000 5.32%, 9/14/99 ......... 5.32 30,000,000
Security Life of Denver
Insurance Co.
25,000 5.24%, 11/23/99 ........ 5.24 25,000,000
Sigma Finance FRN
25,000 5.24%, 9/15/99 (a)...... 5.24 25,000,000
20,000 5.50%, 9/15/99 (a)...... 5.50 20,000,000
SMM Trust FRN
20,000 5.41%, 12/14/98 (a)..... 5.41 20,000,000
20,000 5.50%, 12/16/98 (a)..... 5.50 20,000,000
Travelers Life Funding
Agreement FRN
25,000 5.24%, 10/21/99 (b)..... 5.24 25,000,000
20,000 5.64%, 4/14/99 (b)...... 5.64 20,000,000
--------------
Total Corporate Obligations
(amortized cost $415,000,000) 415,000,000
--------------
CERTIFICATES OF
DEPOSIT-16.2%
American Express
Centurion Bank
15,000 5.47%, 11/16/98 ........ 5.47 15,000,000
Bayerische Landesbank
FRN
35,000 5.09%, 2/25/99 ......... 5.17 34,991,556
Bayerische Vereinsbank
50,000 5.49%, 9/16/99 ......... 5.49 50,000,000
30,000 5.64%, 2/25/99 ......... 5.64 30,000,000
Canadian Imperial
30,000 4.87%, 4/15/99 ......... 4.87 30,000,000
25,000 4.96%, 3/15/99 ......... 4.96 25,000,000
Chase Manhattan Bank
45,000 4.90%, 3/15/99 ......... 4.90 45,000,000
Deutsche Bank
8,000 5.67%, 2/26/99 ......... 5.73 7,999,247
20,000 5.70%, 3/05/99 ......... 5.70 19,996,772
Dresdner Bank
7,000 5.51%, 1/15/99 ......... 5.68 6,997,391
National Westminster
Bank
14,000 5.65%, 3/03/99 ......... 5.71 13,997,735
Nordeutsche
Landesbank
10,000 5.66%, 7/27/99 ......... 5.71 9,996,495
Rabobank Nederland
10,000 5.65%, 7/26/99 ......... 5.70 9,996,508
Royal Bank of Canada
14,500 5.53%, 2/04/99 ......... 5.04 14,510,937
Swiss Bank
14,000 5.66%, 3/04/99 ......... 5.70 13,998,206
--------------
Total Certificates of Deposit
(amortized cost $327,484,847) 327,484,847
--------------
BANK OBLIGATIONS-6.8%
Abbey National
Treasury Services FRN
35,000 5.05%, 7/15/99 ......... 5.12 34,984,488
15,000 5.12%, 2/17/99 ......... 5.18 14,997,456
Bayerische
Landesbank FRN
18,000 5.34%, 3/23/99 ......... 5.42 17,994,542
Lasalle National Bank
15,000 5.27%, 11/24/98 ........ 5.27 15,000,000
10,000 5.60%, 12/10/98 ........ 5.60 10,000,000
Royal Bank of
Canada FRN
45,000 4.72%, 8/25/99 ......... 4.80 44,971,462
--------------
Total Bank Obligations
(amortized cost $137,947,948) 137,947,948
--------------
PROMISSORY NOTES-3.5%
Goldman Sachs
Group LP
25,000 5.31%, 4/12/99 (a)...... 5.31 25,000,000
30,000 5.66%, 11/24/98 (a)..... 5.66 30,000,000
15,000 5.67%, 2/03/99 (a)...... 5.67 15,000,000
--------------
Total Promissory Notes
(amortized cost $70,000,000) 70,000,000
--------------
U.S. GOVERNMENT &
AGENCY OBLIGATIONS-2.2%
Federal National
Mortgage Association
FRN
35,000 4.58%, 5/21/99 ......... 4.66 34,985,118
10,000 4.69%, 11/04/98 ........ 4.78 9,999,955
--------------
Total U.S. Government &
Agency Obligations
(amortized cost $44,985,073) 44,985,073
--------------
TOTAL INVESTMENTS-99.4%
(amortized
cost $2,006,520,178).... 2,006,520,178
Other assets less
liabilities-0.6%........ 11,832,862
--------------
NET ASSETS-100%......... $2,018,353,040
==============
- --------------------------------------------------------------------------------
See Glossary of Terms on page 15.
See notes to financial statements.
2
<PAGE>
PORTFOLIO OF INVESTMENTS Alliance Institutional Reserves -
October 31, 1998 (unaudited) Government Portfolio
================================================================================
Principal
Amount
(000) Security Yield Value
- --------------------------------------------------------------------------------
U.S. GOVERNMENT &
AGENCY OBLIGATIONS-62.8%
FEDERAL HOME LOAN
MORTGAGE CORP.-28.3%
$ 8,000 11/23/98 ............... 4.79% $ 7,977,740
2,500 12/15/98 ............... 5.09 2,484,950
4,000 12/23/98 ............... 5.09 3,971,440
4,800 1/22/99 ................ 5.09 4,745,784
3,000 12/30/98 ............... 5.10 2,975,640
10,000 11/30/98 ............... 5.13 9,960,333
10,000 11/12/98 ............... 5.24 9,985,556
7,000 11/12/98 ............... 5.34 6,989,694
3,000 11/24/98 ............... 5.36 2,990,265
5,000 12/03/98 ............... 5.36 4,977,181
9,000 12/04/98 ............... 5.36 8,957,600
3,000 11/19/98 ............... 5.37 2,992,463
5,000 11/20/98 ............... 5.37 4,986,700
4,000 12/11/98 ............... 5.37 3,977,033
9,000 11/16/98 ............... 5.39 8,981,290
5,000 11/25/98 ............... 5.39 4,982,942
5,000 11/17/98 ............... 5.40 4,988,854
10,038 11/09/98 ............... 5.46 10,027,441
--------------
106,952,906
--------------
FEDERAL NATIONAL
MORTGAGE ASSOCIATION-19.0%
2,000 4.30%, 9/22/99 FRN...... 5.15 1,985,513
7,000 4.56%, 3/03/99 FRN...... 4.60 6,999,188
10,500 4.58%, 5/21/99 FRN...... 4.66 10,495,535
6,000 4.67%, 4/28/99 FRN...... 4.67 5,998,545
13,000 4.69%, 11/04/98 FRN..... 4.78 12,999,959
7,000 5.57%, 3/05/99 ......... 5.62 6,998,821
2,500 5.84%, 3/29/99 ......... 5.69 2,501,337
5,000 1/25/99 ................ 4.83 4,944,350
4,000 11/25/98 ............... 5.34 3,986,481
2,000 12/15/98 ............... 5.35 1,987,387
5,000 12/18/98 ............... 5.37 4,966,139
5,000 12/21/98 ............... 5.37 4,963,931
3,000 12/15/98 ............... 5.38 2,981,008
--------------
71,808,194
--------------
FEDERAL HOME
LOAN BANK-11.2%
2,000 4.38%, 8/12/99 FRN...... 4.98 1,992,153
5,000 4.64%, 8/18/99 FRN...... 4.69 4,998,021
5,700 5.56%, 3/25/99 ......... 5.84 5,697,000
8,000 11/24/98 ............... 4.79 7,976,680
9,000 10/27/99 ............... 5.00 9,000,000
4,800 12/11/98 ............... 5.10 4,773,740
3,000 11/27/98 ............... 5.35 2,988,958
5,000 11/25/98 ............... 5.40 4,982,926
--------------
42,409,478
--------------
STUDENT LOAN
MARKETING ASSOCIATION-4.3%
4,500 4.30%, 7/12/99 FRN...... 4.70 4,488,548
12,000 11/04/99 ............... 5.00 12,000,000
--------------
16,488,548
--------------
Total U.S. Government &
Agency Obligations
(amortized cost $237,659,126) 237,659,126
--------------
REPURCHASE
AGREEMENTS-40.1%
Barclays de Zeote
Wedd Securities, Inc.
8,000 5.60%, dated 10/30/98,
due 11/02/98 in the amount
of $8,003,733 (cost $8,000,000;
collateralized by $7,810,000
FHLB, 5.627%, 9/02/03,
value $8,163,783) (c)... 5.60 8,000,000
Chase Securities, Inc.
16,000 4.90%, dated 10/20/98,
due 11/02/98 in the amount
of $16,028,311 (cost $16,000,000;
collateralized by $16,340,000
FN 323296, 7.50%, 7/01/25,
value $16,404,297) (c).. 4.90 16,000,000
Dresdner Bank
16,000 4.88%, dated 10/20/98,
due 11/06/98 in the amount
of $16,036,833 (cost $16,000,000;
collateralized by $16,632,000
FN251709, 6.00%, 3/01/18,
value $16,602,561) (c).. 4.88 16,000,000
First Boston Corp.
15,000 4.87%, dated 10/16/98,
due 12/16/98 in the amount
of $15,123,779 (cost $15,000,000;
collateralized by $13,595,395
FH0051, 8.50%, 2/01/27,
value $7,971,200, $12,991,000
FH00657,8.50%, 1/01/27
value $7,457,478) (c)... 4.87 15,000,000
Goldman Sachs & Co.
7,000 5.52%, dated 8/31/98,
due 11/18/98 in the amount
of $7,084,793 (cost $7,000,000;
collateralized by $7,879,000
FMAC, 7.00%, 9/01/27,
value $7,260,175) (c)... 5.52 7,000,000
Lehman Brothers, Inc.
5,000 5.50%, dated 9/01/98,
due 11/04/98 in the amount
of $5,048,889 (cost $5,000,000;
collateralized by $4,980,356
FNMA, 8.00%, 6/01/07,
value $5,132,880) (c)... 5.50 5,000,000
3
<PAGE>
PORTFOLIO OF INVESTMENTS Alliance Institutional Reserves -
(continued) Government Portfolio
================================================================================
Principal
Amount
(000) Security Yield Value
- --------------------------------------------------------------------------------
Merrill Lynch & Co., Inc.
$ 15,000 4.90%, dated 10/26/98,
due 11/17/98 in the amount
of $15,044,917 (cost $15,000,000;
collateralized by $17,168,000
FNMA ARM, 6.425%, 10/01/27,
value $15,803,008) (b).. 4.90% $ 15,000,000
Morgan (J.P.) & Co.
6,000 5.19%, dated 10/07/98,
due 11/09/98 in the amount
of $6,028,545 (cost $6,000,000;
collateralized by $4,132,000
U.S. Treasury Bond,
12.00%, 5/15/05,
value $6,058,292, $97,000
U.S. Treasury Note, 5.875%,11/15/99,
value $101,057) (c)..... 5.19 6,000,000
Morgan Stanley Group, Inc.
12,000 4.92%, dated 10/20/98,
due 11/05/98 in the amount
of $12,026,240 (cost 12,000,000;
collateralized by $12,158,587
FNMA, 6.161%, 4/01/34,
value $12,283,739) (c).. 4.92 12,000,000
Paine Webber, Inc.
10,000 4.95%, dated 10/19/98,
due 12/22/98 in the amount
of $10,088,000 (cost $10,000,000;
collateralized by $13,720,000
FN 313224,
value $10,245,260) (c).. 4.95 10,000,000
Paine Webber, Inc.
6,000 5.24%, dated 10/07/98,
due 11/13/98 in the amount
of $6,032,313 (cost $6,000,000;
collateralized by $8,210,000
FN313224,
value $6,129,858) (c)... 5.24 6,000,000
Prudential Securities, Inc.
15,000 5.55%, dated 10/30/98,
due 11/02/98 in the amount
of $15,006,938 (cost $15,000,000;
collateralized by $15,440,000
AU GU C17000, 6.00%, 11/01/28,
value $15,394,002) (c) . 5.55% 15,000,000
Salomon Smith Barney, Inc.
10,000 4.85%, dated 10/21/98,
due 11/10/98 in the amount
of $10,026,944 (cost $10,000,000;
collateralized by $9,699,964
FNMA, 9.00%, 1/01/25,
value $10,275,897) (b).. 4.85 10,000,000
Salomon Smith Barney, Inc.
6,000 5.48%, dated 9/08/98,
due 11/19/98 in the amount
of $6,065,760 (cost $6,000,000;
collateralized by $5,959,143
FHLC, 7.50%, 9/01/17,
value $6,137,295) (b)... 5.48 6,000,000
State Street Bank and Trust Co.
4,500 5.10%, dated 10/30/98,
due 11/02/98 in the amount
of $4,501,913 (cost 4,500,000;
collateralized by $3,200,000
U.S. Treasury Bond,
8.875%, 8/15/17,
value $4,596,000) (c)... 5.10 4,500,000
--------------
Total Repurchase
Agreements
(amortized cost $151,500,000) 151,500,000
--------------
TOTAL INVESTMENTS-102.9%
(amortized cost $389,159,126) 389,159,126
Other assets less
liabilities-(2.9%)...... (10,847,037)
--------------
NET ASSETS-100%......... $ 378,312,089
==============
- --------------------------------------------------------------------------------
See Glossary of Terms on page 15.
See notes to financial statements.
4
<PAGE>
PORTFOLIO OF INVESTMENTS Alliance Institutional Reserves -
October 31, 1998 (unaudited) Tax-Free Portfolio
================================================================================
Principal
Amount
(000) Security(d) Yield Value
- --------------------------------------------------------------------------------
MUNICIPAL BONDS-85.0%
ALABAMA-1.4%
Arab IDB
(SCI Manufacturing, Inc.)
Series '89 VRDN
$ 150 8/01/00 (e) ............ 4.00% $ 150,000
Birmingham Finance
Authority
(Carraway Methodist
Health System)
Series '98 VRDN
2,000 8/15/28 (e) ............ 3.15 2,000,000
Selma IDR
(Specialty Minerals
Project)
Series '94 VRDN
4,000 11/01/09 (e) ........... 3.25 4,000,000
--------------
6,150,000
--------------
ALASKA-1.6%
Alaska Housing
Finance Corp.
(University of Alaska)
Series '97A VRDN
4,000 12/01/27 (e) ........... 3.20 4,000,000
Anchorage
Electric Utility Revenue
Series D VRDN
3,330 12/01/26 (e) ........... 3.10 3,330,000
--------------
7,330,000
--------------
ARIZONA-2.9%
Apache County IDR
(Tucson Electric Power
Co. Project)
Series '83C VRDN
8,900 12/15/18 (e) ........... 3.20 8,900,000
Pinal County
(Magma Copper Project)
Series '92 VRDN
4,000 12/01/11 (e) ........... 3.10 4,000,000
--------------
12,900,000
--------------
ARKANSAS-0.3%
Jonesboro Sales and
Use Tax Revenue
Series '97 FSA
1,250 11/15/98 ............... 3.90 1,250,000
--------------
CALIFORNIA-2.9%
San Diego MFHR
(Paseo Point Apartments)
Series A VRDN
6,750 8/01/15 (e) ............ 3.00 6,750,000
Student Education Loan
Marketing Corp.
California Student Loan
Revenue
Series '93A VRDN
6,500 11/01/02 (e) ........... 3.35 6,500,000
--------------
13,250,000
--------------
DELAWARE-4.1%
Delaware Economic
Development Authority
(Delmarva Power & Light)
Series '87A AMT VRDN
2,700 10/01/17 (e) ........... 3.85 2,700,000
Series '88 AMT VRDN
5,700 10/01/17 (e) ........... 3.85 5,700,000
Series '93C VRDN
8,150 10/01/28 (e) ........... 3.30 8,150,000
Series '94 AMT VRDN
2,000 10/01/29 (e) ........... 3.85 2,000,000
--------------
18,550,000
--------------
DISTRICT OF COLUMBIA-2.8%
District of Columbia
(Resources For The
Future, Inc.)
Series '98 VRDN
4,200 8/01/29 (e) ............ 3.20 4,200,000
District of Columbia GO
Series '92A-1 VRDN
2,500 10/01/07 (e) ........... 3.80 2,500,000
Series '92A-4 VRDN
2,300 10/01/07 (e) ........... 3.80 2,300,000
Series '92A-6 VRDN
1,100 10/01/07 (e) ........... 3.80 1,100,000
District of Columbia
HFA MFHR
(Tyler Housing)
AMT VRDN
2,400 8/01/25 (e) ............ 3.40 2,400,000
--------------
12,500,000
--------------
FLORIDA-12.7%
Broward County
HFA MFHR
(Jacaranda Village
Apartments)
Series '97 VRDN
3,450 9/01/22 (e) ............ 3.20 3,450,000
Florida HFA MFHR
(EEE-Carlton Arms II)
VRDN
1,500 12/01/08 (e) ........... 3.20 1,500,000
Florida HFA MFHR
(Oaks at Orange Park)
Series '90 VRDN
5,100 7/01/07 (e) ............ 3.20 5,100,000
Highlands County
Health Facilities
(Adventist/Sunbelt)
Series A VRDN
2,600 11/15/26 (e) ........... 3.13 2,600,000
Hillsborough County
PCR
(Tampa Electric Project)
Series '93 AMT VRDN
3,500 11/01/20 (e) ........... 3.85 3,500,000
5
<PAGE>
PORTFOLIO OF INVESTMENTS Alliance Institutional Reserves -
(continued) Tax-Free Portfolio
================================================================================
Principal
Amount
(000) Security(d) Yield Value
- --------------------------------------------------------------------------------
Jacksonville PCR
(Florida Power & Light)
Series '95
$ 1,200 5/01/29 ................ 3.70% $ 1,200,000
Lee County Healthcare
Facilities
(Cypress Cove
Healthpark)
Series '97C VRDN
4,000 10/01/04 (e) ........... 3.10 4,000,000
Lee County Healthcare
Facilities
(Hope Hospice)
Series '96 VRDN
4,490 6/01/16 (e) ............ 3.20 4,490,000
Marion County
HFA MFHR
(Summer Trace Project)
Series '85D VRDN
2,300 12/01/07 (e) ........... 3.20 2,300,000
Palm Beach County
Water & Sewer Revenue
VRDN
8,150 10/01/11 (e) ........... 4.45 8,150,000
Palm Beach County
HFA MFHR
(Haverhill Project)
Series '97A VRDN
5,000 10/01/27 (e) ........... 3.20 5,000,000
Palm Beach County
HFA MFHR
(Village Crossing
Project)
Series '97B VRDN
7,000 10/01/27 (e) ........... 3.20 7,000,000
St. Lucie County PCR
(Florida Power & Light)
Series '93 AMT VRDN
900 1/01/27 (e) ............ 3.85 900,000
Tampa Bay Water
(Utility System Revenue)
Series '98B FGIC
3,725 10/01/99 ............... 4.00 3,743,860
Volusia County
HFA MFHR
(Arbors Apartments)
Series A VRDN
2,500 10/01/27 (e) ........... 3.20 2,500,000
Volusia County
HFA MFHR
(Ocean Oaks Apartments)
Series '97B VRDN
2,000 10/01/27 (e) ........... 3.20 2,000,000
--------------
57,433,860
--------------
GEORGIA-2.2%
College Park IDR
(Wynefield 1 Project)
AMT VRDN
1,700 12/01/16 (e) ........... 4.60 1,700,000
Georgia HFA
(Single Family
Mortgage)
Series '98C PPB
2,000 10/01/99 (e)............ 3.20 2,000,000
Savannah Economic
Development Authority
(Georgia Kaolin)
Series '97 AMT VRDN
3,000 7/01/27 (e) ............ 3.25 3,000,000
Thomaston-Upson
County IDR
(De Ster Production
Corp.)
Series A AMT VRDN
3,300 10/01/09 (e) ........... 3.60 3,300,000
--------------
10,000,000
--------------
IDAHO-0.3%
Custer County Solid
Waste Revenue
(Hecla Mining Co.
Project)
Series '97 AMT VRDN
1,300 7/01/07 (e) ............ 3.30 1,300,000
--------------
ILLINOIS-7.5%
Chicago Airport
(O'Hare International
Airport)
Series '84B VRDN
4,000 1/01/15 (e) ............ 3.15 4,000,000
Chicago Airport
(O'Hare International
Airport)
Series C VRDN
3,400 1/01/18 (e) ............ 3.15 3,400,000
Des Plaines Cook
County IDR
(CP Partners LLC
Project)
Series '97A VRDN
6,730 11/01/15 (e) ........... 3.25 6,730,000
6
<PAGE>
Alliance Institutional Reserves - Tax-Free Portfolio
================================================================================
Principal
Amount
(000) Security(d) Yield Value
- --------------------------------------------------------------------------------
Elmhurst Hospital
Revenue
(Joint Comm. Health Org.)
Series '88 VRDN
$ 5,765 7/01/18 (e) ............ 3.10% $ 5,765,000
Illinois Development
Finance Authority
(D.E. Akin Seed Project)
AMT VRDN
1,000 11/01/04 (e) ........... 3.30 1,000,000
Illinois Health
Facilities Authority
(Northwest Community
Hospital)
Series '85C VRDN
7,700 10/01/15 (e) ........... 3.15 7,700,000
Illinois Housing
Development Authority
(Homeowner Mortgage
Revenue)
Series '98D-1 PPB
3,600 6/29/99 (e)............. 3.65 3,600,000
Vernon Hills IDR
(Kinder Care Center)
VRDN
550 2/01/01 (e) ............ 3.35 550,000
West Chicago IDR
(Acme Printing Co.)
Series '89 AMT VRDN
1,100 5/01/99 (e) ............ 3.98 1,100,000
--------------
33,845,000
--------------
INDIANA-5.1%
Gary Environmental
Improvement Revenue
(U.S. Steel Corp.)
Series '84 VRDN
4,100 7/15/02 (e) ............ 3.45 4,100,000
Indiana Development
Finance Authority
(Mid-America Energy
Resources)
Series '95 AMT VRDN
4,600 9/01/30 (e) ............ 3.35 4,600,000
Indiana Development
Finance Authority
(PSI Energy, Inc.)
AMT VRDN
4,700 8/01/28 (e) ............ 3.80 4,700,000
Indiana Development
Finance Authority IDR
(CC Cook & Son
Lumber Project)
Series '98 AMT VRDN
1,500 4/01/11 (e) ............ 3.35 1,500,000
Indiana Housing
Finance Authority
MFHR
(Pedcor Investments)
Series '97M-A
AMT VRDN
3,000 1/01/29 (e) ............ 3.25 3,000,000
Indianapolis Bond
Bank Note
(Local Public
Improvement) Series A
5,000 1/11/99 ................ 3.65 5,005,630
--------------
22,905,630
--------------
KENTUCKY-0.2%
Barbourville College
Revenue
(Union College Project)
Series A VRDN
1,000 8/01/23 (e) ............ 3.15 1,000,000
--------------
MAINE-0.3%
Maine Finance
Authority
(Barber Foods, Inc.)
Series '90B
AMT VRDN
1,475 12/01/06 (e) ........... 3.60 1,475,000
--------------
MICHIGAN-2.7%
Michigan Hospital
Finance Authority
(Hospital Equipment
Revenue)
Series '98A VRDN
12,200 12/01/23 (e) ........... 3.20 12,200,000
--------------
MINNESOTA-0.3%
Cottage Grove
(Minnesota Mining &
Manufacturing Co.
Project) VRDN
1,000 8/01/12 (e) ............ 3.40 1,000,000
Eden Prairie IDA
(Kinder Care Project)
Series C VRDN
465 2/01/01 (e) ............ 3.35 465,000
--------------
1,465,000
--------------
MISSOURI-2.7%
Blue Springs IDA
(Kinder Care Project)
Series C VRDN
540 2/01/01 (e) ............ 3.35 540,000
7
<PAGE>
PORTFOLIO OF INVESTMENTS Alliance Institutional Reserves -
(continued) Tax-Free Portfolio
================================================================================
Principal
Amount
(000) Security(d) Yield Value
- --------------------------------------------------------------------------------
Boone County IDA
(Minnesota Mining &
Manufacturing Co.
Project) VRDN
$ 500 12/01/25 (e) ........... 3.15% $ 500,000
Missouri Health &
Educational Facility
(Stowers Institute)
Series '98 VRDN
9,200 4/01/38 (e) ............ 3.15 9,200,000
St. Louis General Fund
Revenue
TRAN
Series '98
2,000 6/30/99 ................ 3.65 2,010,905
--------------
12,250,905
--------------
NEVADA-0.3%
Washoe County IDR
(Sierra Pacific
Power Co.)
Series '90 AMT VRDN
1,500 12/01/20 (e) ........... 3.85 1,500,000
--------------
NEW JERSEY-1.3%
Jersey City BAN
(Water Notes)
Series '98
3,500 9/17/99 ................ 3.44 3,516,840
New Jersey Economic
Development Authority
(Newark Recycling
Facility)
Series '97 AMT PPB
2,500 12/15/98 (e)............ 3.95 2,500,000
--------------
6,016,840
--------------
NEW YORK-1.0%
New York City IDA
(Nippon Cargo Air
Project)
Series '92 AMT VRDN
2,700 11/01/15 (e) ........... 4.25 2,700,000
Suffolk County IDA
(ADP, Inc. Project)
Series '97 VRDN
2,000 4/01/18 (e) ............ 3.95 2,000,000
--------------
4,700,000
--------------
NORTH CAROLINA-0.6%
North Carolina Medical
Care Facility
(Lexington Memorial
Hospital Project)
Series '97 VRDN
1,500 4/01/10 (e) ............ 3.70 1,500,000
North Carolina Medical
Care Facility
(The Givens Estates,
Inc. Project)
Series '97 VRDN
1,100 12/01/26 (e) ........... 3.70 1,100,000
--------------
2,600,000
--------------
OHIO-1.2%
Ohio Air Authority
PCR
(JMG Funding
Partnership)
Series '94B
AMT VRDN
3,000 4/01/28 (e) ............ 3.10 3,000,000
Warren County IDR
(Pioneer Industrial
Components Project)
Series '85 VRDN
2,500 12/01/05 (e) ........... 4.40 2,500,000
--------------
5,500,000
--------------
OREGON-1.2%
Oregon Economic
Development
Commision IDR
(Eagle-Picher Industries
Project)
Series '84 VRDN
1,000 12/01/04 (e) ........... 3.20 1,000,000
Oregon Economic
Development Revenue
(Kyotaru Oregon
Project)
Series '89 AMT VRDN
3,800 12/01/99 (e) ........... 3.48 3,800,000
--------------
4,800,000
--------------
PENNSYLVANIA-10.2%
Allegheny County
Hospital Revenue
(St. Francis Systems)
Series '97 VRDN
6,000 11/01/27 (e) ........... 3.10 6,000,000
Allegheny County IDR
(United Jewish
Federation Project)
Series '96A VRDN
11,440 10/01/26 (e) ........... 3.15 11,440,000
Indiana County IDR
(Conemaugh Project)
Series '97A
AMT VRDN
10,000 6/01/27 (e) ............ 3.10 10,000,000
8
<PAGE>
Alliance Institutional Reserves - Tax-Free Portfolio
================================================================================
Principal
Amount
(000) Security(d) Yield Value
- --------------------------------------------------------------------------------
Montgomery County
Higher Education &
Health Loan Revenue
Series '96A VRDN
$ 6,870 4/01/17 (e) ............ 3.15% $ 6,870,000
Montgomery County
IDA
(Kinder Care Project)
Series D VRDN
400 10/01/00 (e) ........... 3.35 400,000
Philadelphia School
District TRAN
Series A
6,000 6/30/99 ................ 3.63 6,023,603
Philadelphia TRAN
5,000 6/30/99 ................ 3.64 5,019,484
Venango IDR
(Penzoil Co. Project)
Series '82A VRDN
285 12/01/12 (e) ........... 3.25 285,000
--------------
46,038,087
--------------
SOUTH CAROLINA-1.5%
Berkeley County IDR
(Nucor Corp. Project)
Series '95 AMT VRDN
3,600 9/01/28 (e) ............ 3.25 3,600,000
Berkeley County IDR
(Nucor Corp. Project)
Series '97 AMT VRDN
2,000 4/01/30 (e) ............ 3.25 2,000,000
Florence County PCR
(Roche Carolina, Inc.
Project)
Series '98 AMT VRDN
1,300 4/01/28 (e) ............ 3.85 1,300,000
--------------
6,900,000
--------------
TENNESSEE-0.3%
Volunteer State Student
Loan Revenue
(Student Funding Corp.)
Series '87A-3
AMT VRDN
1,200 12/01/17 (e) ........... 4.00 1,200,000
--------------
TEXAS-6.7%
Gulf Coast IDA
Solid Waste (Citgo
Petroleum Corp.)
Series '94 AMT VRDN
2,000 4/01/26 (e) ............ 3.85 2,000,000
Midlothian IDR
(Box-Crow Cement Co.)
VRDN
10,000 12/01/09 (e) ........... 3.10 10,000,000
Port Corpus Christi
(Reynolds Metals Co.)
VRDN
8,800 9/01/14 (e) ............ 3.15 8,800,000
Port Development Corp.
(Stolt Terminals)
Series '89 VRDN
2,165 1/15/14 (e) ............ 3.10 2,165,000
Texas Municipal Gas
(Gas Reserve Bonds)
Series '98 FSA VRDN
7,000 1/15/23 (e) ............ 3.05 7,000,000
Trinity River IDA
(Radiation Sterilizers)
Series A VRDN
150 11/01/05 (e) ........... 3.60 150,000
--------------
30,115,000
--------------
VERMONT-3.8%
Vermont HEFA
(Capital Asset Financing
Program)
Series '97-1 VRDN
8,377 6/01/22 (e) ............ 3.15 8,377,000
Series '97-2 VRDN
8,955 6/01/27 (e) ............ 3.15 8,955,000
--------------
17,332,000
--------------
VIRGINIA-4.7%
Chesterfield County
IDR
(Philip Morris Co.)
VRDN
15,100 4/01/09 (e) ............ 3.20 15,100,000
Loudoun County IDA
Residential Care Facility
(Falcons Landing Project)
Series '98 VRDN
4,000 11/01/28 (e) ........... 3.05 4,000,000
Peninsula Ports
Authority IDR
(Ziegler Coal Project)
Series '97 AMT VRDN
2,100 5/01/22 (e) ............ 3.85 2,100,000
--------------
21,200,000
--------------
WEST VIRGINIA-0.4%
Keyser IDR
(Keyser Associates
Project)
VRDN
1,800 7/01/14 (e) ............ 3.15 1,800,000
--------------
WISCONSIN-0.7%
Manitowoc IDR
(Jagemann Stamping
Co.)
Series '98 AMT VRDN
1,618 4/01/11 (e) ............ 3.30 1,618,000
9
<PAGE>
PORTFOLIO OF INVESTMENTS Alliance Institutional Reserves -
(continued) Tax-Free Portfolio
================================================================================
Principal
Amount
(000) Security(d) Yield Value
- --------------------------------------------------------------------------------
Wausau
(Minnesota Mining &
Manufacturing Co.
Project)
VRDN
$ 1,600 8/01/17 (e) ............ 3.40% $ 1,600,000
--------------
3,218,000
--------------
WYOMING-1.1%
Lincoln PCR
(Exxon Corp.)
VRDN
4,900 11/01/14 (e) ........... 3.70 4,900,000
--------------
Total Municipal Bonds
(amortized cost $383,625,322) 383,625,322
--------------
COMMERCIAL PAPER-10.4%
ARIZONA-1.1%
Maricopa County PCR
(Southern California
Edison Project)
Series F
5,000 1/13/99 ................ 3.60 4,998,462
--------------
FLORIDA-4.0%
City of Jacksonville
5,500 12/07/98 ............... 3.40 5,500,000
3,000 12/11/98 ............... 3.60 3,000,000
Florida Local
Government Finance
Committee
Series B AMT
3,390 12/10/98 ............... 3.60 3,390,000
Florida Municipal
Power Agency
(Initial Pooled Loan
Project)
Series A
5,955 12/17/98 ............... 3.45 5,955,000
--------------
17,845,000
--------------
GEORGIA-0.3%
Municipal Electric
Authority
(Project 1)
Series '85A
1,500 1/22/99 ................ 3.45 1,500,000
--------------
ILLINOIS-2.2%
Illinois Educational
Facilities Authority
(Pooled Financing
Program)
7,000 12/11/98 ............... 3.50 7,000,000
Illinois Health Facilities
Authority
(Victory Health)
Series '97
3,000 1/11/99 ................ 3.50 3,000,000
--------------
10,000,000
--------------
TEXAS-2.8%
City of Austin
Series A
3,955 2/01/99 ................ 3.65 3,955,000
City of Austin Travis &
Williams Cnty
Combined Utility Systems
Series A
1,000 1/22/99 ................ 3.45 1,000,000
3,747 12/18/98 ............... 3.60 3,747,000
University of Texas
Board of Regents
Series A
4,000 12/08/98 ............... 3.60 4,000,000
--------------
12,702,000
--------------
Total Commercial Paper
(amortized cost $47,045,462) 47,045,462
--------------
TOTAL INVESTMENTS-95.4%
(amortized cost $430,670,784) 430,670,784
Other assets less
liabilities-4.6%........ 20,841,653
--------------
NET ASSETS-100%......... $ 451,512,437
==============
- --------------------------------------------------------------------------------
See Glossary of Terms on page 15.
See notes to financial statements.
10
<PAGE>
PORTFOLIO OF INVESTMENTS
October 31, 1998 (unaudited) Alliance Institutional Reserves - Trust Portfolio
================================================================================
Principal
Amount
(000) Security Yield Value
- --------------------------------------------------------------------------------
COMMERCIAL PAPER-44.7%
AKZO Nobel, Inc.
$ 10,000 11/02/98 ............... 5.51% $ 10,000,000
Allianz of America
Finance Corp.
21,000 12/09/98 (a)............ 5.28 20,886,040
Associates Corp. of
North America
10,000 11/30/98 ............... 5.21 9,959,478
Bankers Trust Alex
Brown, Inc. FRN
5,000 4.81%, 2/16/99 (b)...... 4.81 5,000,000
Banque Caisse d'Epargne
8,000 12/07/98 ............... 5.22 7,959,400
1,754 12/21/98 ............... 5.50 1,740,869
Cregem North
America, Inc.
4,000 11/25/98 ............... 5.45 3,986,072
CS First Boston,
Guernsey
12,000 12/14/98 ............... 5.41 11,924,260
6,000 12/02/98 ............... 5.46 5,972,700
1,000 11/16/98 ............... 5.55 997,842
1,000 11/20/98 ............... 5.55 997,225
Eastman Kodak Co.
5,000 11/19/98 ............... 5.42 4,987,203
First Chicago Financial
Corp.
5,000 11/13/98 ............... 5.25 4,991,979
General Electric
Capital Corp.
3,500 11/20/98 ............... 5.20 3,490,760
4,000 5.61%, 11/17/98 FRN..... 5.61 4,000,000
General Electric
Financial Assurance
15,000 12/22/98 ............... 5.29 14,889,791
Henkel Corp.
13,000 11/13/98 ............... 5.36 12,978,709
IMI Funding Corp.
(USA)
12,000 11/06/98 ............... 5.44 11,992,747
International
Nederland Bank
3,000 12/21/98 ............... 5.52 2,977,460
Koch Industries
20,000 11/02/98 (a)............ 5.71 20,000,000
Morgan Stanley
Group, Inc.
20,000 11/16/98 ............... 5.47 19,957,455
Norwest Corp.
10,000 11/30/98 ............... 5.42 9,957,844
Salomon Smith Barney,
Inc.
10,000 12/01/98 ............... 5.46 9,956,017
Special Purpose
Accounts Receivable
Corp.
2,000 11/16/98 (a) ........... 5.30 1,995,878
Vattenfall Treasury, Inc.
2,000 11/13/98 ............... 5.15 1,996,853
--------------
Total Commercial Paper
(amortized cost $203,596,582) 203,596,582
--------------
CORPORATE
OBLIGATIONS-23.3%
Allstate Life Insurance
Funding Agreement FRN
5,000 5.37%, 9/01/99 (b)...... 5.37 5,000,000
American General Life
Insurance Co.
5,000 5.34%, 9/01/99 ......... 5.34 5,000,000
Combined Insurance
Co. of America
5,000 5.20%, 7/27/99 ......... 5.20 5,000,000
General American
Funding Corp. FRN
20,000 5.79%, 7/09/99 ......... 5.79 20,000,000
Merrill Lynch & Co.,
Inc. FRN
5,000 5.29%, 6/01/99 ......... 5.29 5,000,000
8,000 5.31%, 9/30/99 ......... 5.31 8,000,000
Security Benefit Life
Insurance Co.
20,000 5.32%, 9/14/99 ......... 5.32 20,000,000
Security Life of Denver
Insurance Co.
7,000 5.24%, 11/23/99 ........ 5.24 7,000,000
Sigma Finance FRN
12,000 5.24%, 9/15/99 (a)...... 5.24 12,000,000
SMM Trust FRN
5,000 5.41%, 12/14/98 (a)..... 5.41 5,000,000
4,000 5.50%, 12/16/98 (a)..... 5.50 4,000,000
Travelers Life Funding
Agreement FRN
5,000 5.24%, 10/21/99 (b)..... 5.24 5,000,000
5,000 5.39%, 4/14/99 (b)...... 5.39 5,000,000
--------------
Total Corporate Obligations
(amortized cost $106,000,000) 106,000,000
--------------
CERTIFICATES OF
DEPOSIT-15.1%
American Express
Centurion Bank
5,000 5.47%, 11/16/98 ........ 5.47 5,000,000
Bayerische
Landesbank FRN
10,000 5.09%, 2/25/99 ......... 5.17 9,997,587
Bayerische Vereinsbank
10,000 5.49%, 9/16/99 ......... 5.49 10,000,000
10,000 5.64%, 2/25/99 ......... 5.64 10,000,000
11
<PAGE>
PORTFOLIO OF INVESTMENTS
(continued) Alliance Institutional Reserves - Trust Portfolio
================================================================================
Principal
Amount
(000) Security Yield Value
- --------------------------------------------------------------------------------
Canadian Imperial
Bank of Commerce
$ 8,000 4.87%, 4/15/99 ......... 4.87% $ 8,000,000
5,000 4.96%, 3/15/99 ......... 4.96 5,000,000
Chase Manhattan Bank
5,000 4.90%, 3/15/99 ......... 4.90 5,000,000
Deutsche Bank
2,000 5.67%, 2/26/99 ......... 5.73 1,999,812
5,000 5.70%, 3/05/99 ......... 5.77 4,999,193
Dresdner Bank
3,000 5.51%, 1/15/99 ......... 5.68 2,998,882
National Westminster
Bank
3,000 5.65%, 3/03/99 ......... 5.71 2,999,515
Swiss Bank
3,000 5.66%, 3/04/99 ......... 5.71 2,999,615
--------------
Total Certificates of Deposit
(amortized cost $68,994,604) 68,994,604
--------------
BANK OBLIGATIONS-5.9%
Abbey National Treasury
Services FRN
10,000 5.05%, 7/15/99 ......... 5.12 9,995,568
Bayerische
Landesbank FRN
7,000 5.34%, 3/23/99 ......... 5.61 6,997,877
Royal Bank of
Canada FRN
10,000 4.72%, 8/25/99 ......... 4.80 9,993,659
--------------
Total Bank Obligations
(amortized cost $26,987,104) 26,987,104
--------------
TIME DEPOSIT-4.4%
Societe Generale
Cayman
20,000 11/02/98 ............... 5.75 20,000,000
--------------
PROMISSORY NOTES-4.2%
Goldman Sachs Group LP
7,000 5.31%, 4/12/99 (a) ..... 5.31 7,000,000
7,000 5.66%, 11/24/98 (a)..... 5.66 7,000,000
5,000 5.67%, 2/03/99 (a)...... 5.67 5,000,000
--------------
Total Promissory Notes
(amortized cost $19,000,000) 19,000,000
--------------
U.S. GOVERNMENT &
AGENCY OBLIGATIONS-2.0%
Federal National
Mortgage Association
7,000 4.58%, 5/21/99 FRN...... 4.66 6,997,024
2,000 4.69%, 11/04/98 ........ 4.78 1,999,991
--------------
Total U.S. Government &
Agency Obligations
(amortized cost $8,997,015) 8,997,015
--------------
TOTAL INVESTMENTS-99.6%
(amortized cost $453,575,305) 453,575,305
Other assets less
liabilities-0.4%........ 1,839,659
--------------
NET ASSETS-100%......... $ 455,414,964
==============
- --------------------------------------------------------------------------------
See Glossary of Terms on page 15.
See notes to financial statements.
12
<PAGE>
PORTFOLIO OF INVESTMENTS Alliance Institutional Reserves -
October 31, 1998 (unaudited) Treasury Portfolio
================================================================================
Principal
Amount
(000) Security Yield Value
- --------------------------------------------------------------------------------
U.S. GOVERNMENT
OBLIGATIONS-12.5%
U.S. TREASURY NOTES-12.5%
$ 1,200 11/30/98 ............... 5.13% $ 1,200,118
400 11/15/98 ............... 8.88 400,474
--------------
Total U.S. Government
Obligations
(amortized cost $1,600,592) 1,600,592
--------------
REPURCHASE
AGREEMENTS-82.4%
ABN Amro
600 5.38%, dated 10/30/98,
due 11/02/98 in the amount
of $600,269 (cost $600,000;
collateralized by $588,000
U.S. Treasury Note,
5.87%, 11/15/99,
value $612,499) (c) .... 5.38 600,000
Barclays de Zoete Wedd
Securities, Inc.
600 4.78%, dated 10/20/98,
due 12/21/98 in the amount
of $604,939 (cost $600,000;
collateralized by $600,000
U.S. Treasury Note,
5.875%, 8/31/99,
value $612,837) (c) .... 4.78 600,000
Bear Stearns & Co.
620 4.625%, dated 10/27/98,
due 11/04/98 in the amount
of $620,637 (cost $620,000;
collateralized by $585,000
U.S. Treasury Note,
5.75%, 4/30/03,
value $634,085) (c) .... 4.63 620,000
Chase Securities, Inc.
260 5.30%, dated 10/30/98,
due 11/02/98 in the amount
of $260,115 (cost $260,000;
collateralized by $255,000
U.S. Treasury Note,
5.50%, 12/31/00,
value $265,905) (c) .... 5.30 260,000
Chase Securities, Inc.
340 5.35%, dated 9/14/98,
due 11/18/98 in the amount
of $343,284 (cost $340,000;
collateralized by $220,000
U.S. Treasury Bond,
10.625%, 8/15/15,
value $351,877) (c) .... 5.35 340,000
Cibc/Wood Gundy, Inc.
600 5.25%, dated 10/30/98,
due 11/02/98 in the amount
of $600,263 (cost $600,000;
collateralized by $475,000
U.S. Treasury Bond,
7.50%, 11/15/16,
value $610,458) (c) .... 5.25 600,000
Deutsche Bank
620 4.63%, dated 10/26/98,
due 11/10/98 in the amount
of $621,196 (cost $620,000;
collateralized by $603,000
U.S. Treasury Bond,
6.375%, 3/31/01,
value $632,410) (c) .... 4.63 620,000
Dresdner Bank AG
270 5.30%, dated 10/30/98,
due 11/02/98 in the amount
of $270,119 (cost $270,000;
collateralized by $217,000
U.S. Treasury Bond,
7.25%, 8/15/22,
value $273,482) (c) .... 5.30 270,000
Dresdner Bank AG
330 5.375%, dated 9/23/98,
due 11/23/98 in the amount
of $333,006 (cost $330,000;
collateralized by $313,000
U.S. Treasury Note,
6.375%, 9/30/01,
value $336,875) (c) .... 5.38 330,000
First Boston Corp.
630 4.75%, dated 10/20/98,
due 11/19/98 in the amount
of $632,494 (cost $630,000;
collateralized by $590,000
U.S. Treasury Bond,
8.25%, 5/15/05,
value $643,164) (c) .... 4.75 630,000
Goldman Sachs & Co.
335 4.64%, dated 10/21/98,
due 11/12/98 in the amount
of $335,950 (cost $335,000;
collateralized by $330,000
U.S. Treasury Bond,
7.125%, 2/29/00,
value $345,532) (c) .... 4.64 335,000
Goldman Sachs & Co.
300 5.20%, dated 9/24/98,
due 11/23/98 in the amount
of $302,600 (cost $300,000;
collateralized by $210,000
U.S. Treasury Bond,
9.125%, 5/15/18,
value $313,703) (c) .... 5.20 300,000
13
<PAGE>
PORTFOLIO OF INVESTMENTS Alliance Institutional Reserves -
(continued) Treasury Portfolio
================================================================================
Principal
Amount
(000) Security Yield Value
- --------------------------------------------------------------------------------
Greenwich Funding Corp.
$ 600 5.35%, dated 10/30/98,
due 11/02/98 in the amount
of $600,268 (cost $600,000;
collateralized by $567,000
U.S. Treasury Bond,
5.75%, 10/31/02,
value $610,942) (b) .... 5.35% $ 600,000
Merrill Lynch & Co., Inc.
625 4.70%, dated 10/20/98,
due 11/09/98 in the amount
of $626,632 (cost $600,000;
collateralized by $620,000
U.S. Treasury Bond,
5.875%, 2/15/00,
value $639,417) (b) .... 4.70 625,000
Morgan (J.P.) & Co.
650 5.19%, dated 10/07/98,
due 11/09/98 in the amount
of $653,092 (cost $650,000;
collateralized by $624,000
U.S. Treasury Bond,
6.75%, 4/30/00,
value $664,348) (c) .... 5.19 650,000
Morgan Stanley Group,
Inc.
600 5.33%, dated 10/30/98,
due 11/02/98 in the amount
of $600,267 (cost $600,000;
collateralized by $400,000
U.S. Treasury Bond,
12.75%, 11/15/10,
value $612,720) (c) .... 5.33 600,000
Nationsbanc Montgomery
Securities
600 5.38%, dated 10/30/98,
due 11/02/98 in the amount
of $600,269 (cost $600,000;
collateralized by $630,000
U.S. Treasury Bill,
5.38%, 4/22/99,
value $617,150) (c) .... 5.38 600,000
Paribas Corp.
300 4.70%, dated 10/21/98,
due 12/22/98 in the amount
of $302,428 (cost $300,000;
collateralized by $298,000
U.S. Treasury Note,
6.00%, 6/30/99,
value $306,936) (c) .... 4.70 300,000
Paribas Corp.
330 5.40%, dated 9/23/98,
due 11/24/98 in the amount
of $333,069 (cost $330,000;
collateralized by $280,000
U.S. Treasury Bond,
6.75%, 8/15/26,
value $336,209) (c) .... 5.40 330,000
Salomon Smith Barney,
Inc.
320 4.65%, dated 10/26/98,
due 11/18/98 in the amount
of $320,951 (cost $320,000;
collateralized by $315,000
U.S. Treasury Note,
6.50%, 4/30/99,
value $330,412) (b) .... 4.65 320,000
Salomon Smith Barney,
Inc.
300 5.35%, dated 9/23/98,
due 11/18/98 in the amount
of $302,497 (cost 300,000;
collateralized by $305,000
U.S. Treasury Note,
5.875%, 8/31/99,
value $308,807) (b) .... 5.35 300,000
State Street Bank and
Trust Co.
125 5.10%, dated 10/30/98,
due 11/02/98 in the amount
of $125,053 (cost $125,000;
collateralized by $80,000
U.S.Treasury Bond,
11.25%, 2/15/15,
value $135,884) (c) .... 5.10 125,000
Warburg Securities
335 4.65%, dated 10/21/98,
due 11/16/98 in the amount
of $336,125 (cost $335,000;
collateralized by $249,000
U.S. Treasury Bond,
8.00%, 11/15/21,
value $342,072) (c) .... 4.65 335,000
Warburg Securities
300 5.16%, dated 10/07/98,
due 11/16/98 in the amount
of $301,720 (cost $300,000;
collateralized by $176,000
U.S. Treasury Bond,
11.25%, 2/15/15,
value $305,544) (c) .... 5.16 300,000
--------------
Total Repurchase Agreements
(amortized cost $10,590,000) 10,590,000
--------------
14
<PAGE>
Alliance Institutional Reserves - Treasury Portfolio
================================================================================
Value
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS-94.9%
(amortized cost $12,190,592) $ 12,190,592
Other assets less
liabilities-5.1%........ 655,888
--------------
NET ASSETS-100%......... $ 12,846,480
==============
- --------------------------------------------------------------------------------
(a) Securities issued in reliance on Section (4) 2 or Rule 144A of the
Securities Act of 1933. Rule 144A securities may be resold in transactions
exempt from registration, normally to qualified institutional buyers. At
October 31, 1998, these securities amounted to $225,860,407, representing
11.2% of net assets on the Prime Portfolio,and $82,881,918, representing
18.2% of net assets on the Trust Portfolio.
(b) Funding agreements are illiquid securities subject to restrictions as to
resale. These securities amounted to $100,000,000, representing 5.0% of
net assets on the Prime Portfolio, $31,000,000, representing 8.2% of net
assets on the Government Portfolio, 20,000,000 representing 4.4% of net
assets on the Trust Portfolio and $1,845,000, representing 14.4% of net
assets on the Treasury 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
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
PCR Pollution Control Revenue
TRAN Tax & Revenue Anticipation Note
See notes to financial statements.
15
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
October 31, 1998 (unaudited) Alliance Institutional Reserves
================================================================================
<TABLE>
<CAPTION>
PRIME GOVERNMENT TAX-FREE TRUST TREASURY
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
-------------- ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments in securities, at value
(cost $2,006,520,178, $389,159,126,
$430,670,784, $453,575,305, $12,190,592,
respectively) ............................. $2,006,520,178 $389,159,126 $430,670,784 $453,575,305 $ 12,190,592
Cash ......................................... 1,580,835 124,111 857,853 227,685 624,318
Interest receivable .......................... 10,780,205 1,135,774 1,841,279 2,341,059 80,861
Receivable for investment securities sold .... -0- -0- 24,810,000 -0- -0-
Receivable due from Adviser .................. -0- -0- -0- -0- 2,229
Other assets ................................. -0- 47 -0- -0- -0-
-------------- ------------ ------------ ------------ ------------
Total assets ................................. 2,018,881,218 390,419,058 458,179,916 456,144,049 12,898,000
-------------- ------------ ------------ ------------ ------------
LIABILITIES
Advisory fee payable ......................... 237,778 43,862 46,665 171,440 -0-
Dividends payable ............................ 284,428 51,174 116,980 61,678 1,670
Payable for investment securities purchased .. -0- 12,000,000 6,500,597 -0- -0-
Payable for fund shares repurchased .......... -0- -0- -0- 486,904 -0-
Accrued expenses ............................. 5,972 11,933 3,237 9,063 49,850
-------------- ------------ ------------ ------------ ------------
Total liabilities ............................ 528,178 12,106,969 6,667,479 729,085 51,520
-------------- ------------ ------------ ------------ ------------
NET ASSETS ...................................... $2,018,353,040 $378,312,089 $451,512,437 $455,414,964 $ 12,846,480
============== ============ ============ ============ ============
COMPOSITION OF NET ASSETS
Paid-in-Capital .............................. $2,018,535,318 $378,441,465 $451,595,932 $455,458,195 $ 12,846,325
Accumulated net realized gain (loss)
on investments ............................ (182,278) (129,376) (83,495) (43,231) 155
-------------- ------------ ------------ ------------ ------------
$2,018,353,040 $378,312,089 $451,512,437 $455,414,964 $ 12,846,480
============== ============ ============ ============ ============
CALCULATION OF MAXIMUM
OFFERING PRICE
Class A Shares
Net asset value and offering price per share
($1,873,667,970 / 1,873,850,255,
$331,730,866 / 331,860,351,
$356,115,477 / 356,198,972,
$455,414,964 / 455,458,195 and
$12,680,674 / 12,680,519
Net assets and shares of capital stock
issued and outstanding, respectively) ..... $1.00 $1.00 $1.00 $1.00 $1.00
===== ===== ===== ===== =====
Class B Shares
Net asset value and offering price per share
($132,387,716 / 132,387,709,
$46,401,841 / 46,401,732,
$94,189,849 / 94,189,849, $0 and $0
Net assets and shares of capital stock
issued and outstanding, respectively) ..... $1.00 $1.00 $1.00 N/A N/A
===== ===== =====
Class C Shares
Net asset value and offering price per share
($12,297,354 / 12,297,354,
$179,382 / 179,382,
$1,207,111 / 1,207,111, $0 and
$165,806 / 165,806
Net assets and shares of capital stock
issued and outstanding, respectively) ..... $1.00 $1.00 $1.00 N/A $1.00
===== ===== ===== =====
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements.
16
<PAGE>
STATEMENT OF OPERATIONS
Six Months Ended October 31, 1998 (unaudited) 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 ...................... $ 51,705,277 $ 8,788,787 $ 6,667,302 $ 12,061,445 $ 172,818
------------ ------------ ------------ ------------ ------------
EXPENSES
Advisory fee (Note B) ......... 1,841,863 320,467 367,802 964,685 6,531
Distribution fee - Class B .... 13,892 6,729 9,314 0 0
Distribution fee - Class C .... 3,360 13 210 0 20
Registration .................. 128,772 28,155 41,766 58,596 9,770
Custodian ..................... 120,256 51,952 43,663 53,989 28,975
Audit and legal ............... 19,652 6,190 7,310 8,301 5,973
Transfer agency ............... 17,204 14,495 12,571 13,873 9,666
Printing ...................... 6,999 957 1,387 6,567 2,366
Directors' fees ............... 3,331 3,236 3,262 6,329 2,140
Miscellaneous ................. 2,808 987 684 801 816
------------ ------------ ------------ ------------ ------------
Total expenses ................ 2,158,137 433,181 487,969 1,113,141 66,257
Less: expense reimbursement ... (299,022) (105,972) (110,643) (41,268) (59,705)
------------ ------------ ------------ ------------ ------------
Net expenses .................. 1,859,115 327,209 377,326 1,071,873 6,552
------------ ------------ ------------ ------------ ------------
Net investment income ......... 49,846,162 8,461,578 6,289,976 10,989,572 166,266
------------ ------------ ------------ ------------ ------------
REALIZED GAIN ON INVESTMENTS
Net realized gain on investment
transactions ............... 1,442 973 -0- 529 155
------------ ------------ ------------ ------------ ------------
NET INCREASE IN NET
ASSETS FROM OPERATIONS ........... $ 49,847,604 $ 8,462,551 $ 6,289,976 $ 10,990,101 $ 166,421
============ ============ ============ ============ ============
</TABLE>
- --------------------------------------------------------------------------------
(a) Commencement of operations, June 29, 1998.
See notes to financial statements.
17
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS Alliance Institutional Reserves
================================================================================
<TABLE>
<CAPTION>
PRIME PORTFOLIO GOVERNMENT PORTFOLIO
--------------------------------- ---------------------------------
Six Months Ended Six Months Ended
October 31, 1998 Year Ended October 31, 1998 Year Ended
(unaudited) April 30, 1998 (unaudited) April 30, 1998
---------------- -------------- ---------------- --------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income ................................. $ 49,846,162 $ 71,740,159 $ 8,461,578 $ 16,319,887
Net realized gain on investment transactions .......... 1,442 84 973 1,000
Net change in unrealized appreciation of investments .. -0- -0- -0- -0-
---------------- -------------- ---------------- --------------
Net increase in net assets from operations ............ 49,847,604 71,740,243 8,462,551 16,320,887
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income
Class A ............................................. (49,053,757) (71,740,159) (8,121,533) (16,319,887)
Class B ............................................. (724,082) -0- (339,792) -0-
Class C ............................................. (68,323) -0- (253) -0-
CAPITAL STOCK TRANSACTIONS
Net increase (decrease) ............................... 253,658,740 897,353,419 103,849,741 (52,059,333)
---------------- -------------- ---------------- --------------
Total increase (decrease) ............................. 253,660,182 897,353,503 103,850,714 (52,058,333)
NET ASSETS
Beginning of period ................................... 1,764,692,858 867,339,355 274,461,375 326,519,708
---------------- -------------- ---------------- --------------
End of period ......................................... $ 2,018,353,040 $1,764,692,858 $ 378,312,089 $ 274,461,375
================ ============== ================ ==============
<CAPTION>
TAX-FREE PORTFOLIO TRUST PORTFOLIO
--------------------------------- ---------------------------------
Six Months Ended Six Months Ended
October 31, 1998 Year Ended October 31, 1998 Year Ended
(unaudited) April 30, 1998 (unaudited) April 30, 1998
---------------- -------------- ---------------- --------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income ................................. $ 6,289,976 $ 9,321,671 $ 10,989,572 $ 14,247,619
Net realized gain on investment transactions .......... -0- 168 529 13,207
Net change in unrealized appreciation of investments .. -0- (351) -0- -0-
---------------- -------------- ---------------- --------------
Net increase in net assets from operations ............ 6,289,976 9,321,488 10,990,101 14,260,826
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income
Class A ............................................. (5,990,310) (9,321,671) (10,989,572) (14,247,619)
Class B ............................................. (296,817) -0- -0- -0-
Class C ............................................. (2,849) -0- -0- -0-
CAPITAL STOCK TRANSACTIONS
Net increase (decrease) ............................... 157,748,791 110,698,884 64,922,402 214,797,663
---------------- -------------- ---------------- --------------
Total increase (decrease) ............................. 157,748,791 110,698,701 64,922,931 214,810,870
NET ASSETS
Beginning of period ................................... 293,763,646 183,064,945 390,492,033 175,681,163
---------------- -------------- ---------------- --------------
End of period ......................................... $ 451,512,437 $ 293,763,646 $ 455,414,964 $ 390,492,033
================ ============== ================ ==============
<CAPTION>
TREASURY
PORTFOLIO
----------------
Period Ended
October 31, 1998
(unaudited)(a)
----------------
<S> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income ................................. $ 166,266
Net realized gain on investment transactions .......... 155
Net change in unrealized appreciation of investments .. -0-
----------------
Net increase in net assets from operations ............ 166,421
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income
Class A ............................................. (165,894)
Class B ............................................. -0-
Class C ............................................. (372)
CAPITAL STOCK TRANSACTIONS
Net increase (decrease) ............................... 12,846,325
----------------
Total increase (decrease) ............................. 12,846,480
NET ASSETS
Beginning of period ................................... -0-
----------------
End of period ......................................... $ 12,846,480
================
</TABLE>
- --------------------------------------------------------------------------------
(a) Commencement of operations, June 29, 1998.
See notes to financial statements.
18 & 19
<PAGE>
NOTES TO FINANCIAL STATEMENTS
October 31, 1998 (unaudited) 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 six
months ended October 31, 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, Tax-Free and
Treasury Portfolios and .45% of average daily net assets for the Trust
Portfolio. For the six months ended October 31,1998, the Adviser voluntarily
agreed to reimburse each of the Portfolios to the extent that their annual
aggregate operating expenses (excluding taxes, brokerage, interest and, where
permitted, extraordinary expenses) exceed a certain percentage of their average
daily net assets for any fiscal year. For the period ended October 31, 1998,
reimbursement was $299,022, $105,972, $110,643, $41,268 and $59,705 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 $9,000 per
Portfolio; for the Treasury Portfolio was $6,000, for the period ended October
31, 1998
20
<PAGE>
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. Since the commencement of
operations of each portfolio the Distributor has incurred expenses in excess of
the distribution costs reimbursed by each Portfolio as follows:
Portfolio Class B Class C
- --------- ----------- -----------
Prime..................... $13,892 $ 3,360
Government................ $ 6,729 $ 13
Tax-Free.................. $ 9,314 $ 210
Treasury.................. $ * $ 20
Such costs may be recovered from the Fund in future periods so long as the
Agreement is in effect. 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 October 31, 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, $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 E: Capital Stock
There are 15,000,000,000 shares of $.01 par value capital stock authorized. At
October 31, 1998, capital paid-in aggregated $2,018,535,318 on Prime Portfolio,
$378,441,465 on Government Portfolio, $451,595,932 on Tax-Free Portfolio,
$455,458,195 on Trust Portfolio and $12,846,325 on Treasury Portfolio.
Transactions, all at $1.00 per share, were as follows:
Prime Portfolio
---------------------------------
Six Months Ended Year Ended
October 31, 1998 April 30,
(unaudited) 1998
---------------- ---------------
Class A
Shares sold.................................. 8,969,193,126 18,859,885,064
Shares issued on reinvestments of dividends.. 49,053,757 71,740,159
Shares redeemed.............................. (8,909,273,205) (18,034,271,804)
---------------- ---------------
Net increase................................. 108,973,678 897,353,419
================ ===============
- --------------------------------------------------------------------------------
* Has not yet commenced operations.
21
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued) Alliance Institutional Reserves
================================================================================
<TABLE>
<CAPTION>
Prime Portfolio
-----------------------------------------
August 14, 1998*
to October 31, 1998
(unaudited)
-------------------
<S> <C>
Class B
Shares sold................................................ 315,490,934
Shares issued on reinvestments of dividends................ 724,082
Shares redeemed............................................ (183,827,307)
-------------------
Net increase............................................... 132,387,709
===================
<CAPTION>
July 13, 1998*
to October 31, 1998
(unaudited)
-------------------
<S> <C>
Class C
Shares sold................................................ 13,283,215
Shares issued on reinvestments of dividends................ 68,323
Shares redeemed............................................ (1,054,185)
-------------------
Net increase............................................... 12,297,353
===================
<CAPTION>
Government Portfolio
-----------------------------------------
Six Months Ended Year Ended
October 31, 1998 April 30,
(unaudited) 1998
------------------- ------------------
<S> <C> <C>
Class A
Shares sold................................................ 1,055,782,811 1,463,678,015
Shares issued on reinvestments of dividends................ 8,121,533 16,319,887
Shares redeemed............................................ (1,006,635,717) (1,532,057,235)
------------------- ------------------
Net increase (decrease).................................... 57,268,627 (52,059,333)
=================== ==================
<CAPTION>
August 7, 1998*
to October 31, 1998
(unaudited)
-------------------
<S> <C>
Class B
Shares sold................................................ 104,679,951
Shares issued on reinvestments of dividends................ 339,792
Shares redeemed............................................ (58,618,011)
-------------------
Net increase............................................... 46,401,732
===================
<CAPTION>
October 21, 1998*
to October 31, 1998
(unaudited)
-------------------
<S> <C>
Class C
Shares sold................................................ 179,253
Shares issued on reinvestments of dividends................ 253
Shares redeemed............................................ (124)
-------------------
Net increase............................................... 179,382
===================
</TABLE>
- --------------------------------------------------------------------------------
* Commencement of distribution.
22
<PAGE>
Alliance Institutional Reserves
================================================================================
<TABLE>
<CAPTION>
Tax-Free Portfolio
-----------------------------------------
Six Months Ended Year Ended
October 31, 1998 April 30,
(unaudited) 1998
------------------- ------------------
<S> <C> <C>
Class A
Shares sold................................................ 1,228,035,893 2,187,340,593
Shares issued on reinvestments of dividends................ 5,990,310 9,321,671
Shares redeemed............................................ (1,171,674,371) (2,085,963,380)
------------------- ------------------
Net increase............................................... 62,351,832 110,698,884
=================== ==================
<CAPTION>
August 17, 1998*
to October 31, 1998
(unaudited)
-------------------
<S> <C>
Class B
Shares sold................................................ 157,423,821
Shares issued on reinvestments of dividends................ 296,817
Shares redeemed............................................ (63,530,789)
-------------------
Net increase............................................... 94,189,849
===================
<CAPTION>
September 8, 1998*
to October 31, 1998
(unaudited)
-------------------
<S> <C>
Class C
Shares sold................................................ 1,204,577
Shares issued on reinvestments of dividends................ 2,849
Shares redeemed............................................ (316)
-------------------
Net increase............................................... 1,207,110
===================
<CAPTION>
Trust Portfolio
-----------------------------------------
Six Months Ended Year Ended
October 31, 1998 April 30,
(unaudited) 1998
------------------- ------------------
<S> <C>
Class A
Shares sold................................................ 722,285,781 1,732,157,312
Shares issued on reinvestments of dividends................ 10,989,572 14,247,619
Shares redeemed............................................ (668,352,951) (1,531,607,268)
------------------- ------------------
Net increase............................................... 64,922,402 214,797,663
=================== ==================
<CAPTION>
Treasury Portfolio
-----------------------------------------
June 29, 1998*
to October 31, 1998
(unaudited)
-------------------
<S> <C>
Class A
Shares sold................................................ 14,887,040
Shares issued on reinvestments of dividends................ 165,894
Shares redeemed............................................ (2,372,415)
-------------------
Net increase............................................... 12,680,519
===================
</TABLE>
- --------------------------------------------------------------------------------
* Commencement of distribution.
23
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued) Alliance Institutional Reserves
================================================================================
<TABLE>
<CAPTION>
Treasury Portfolio
-----------------------------------------
October 15, 1998*
to October 31, 1998
(unaudited)
-------------------
<S> <C>
Class C
Shares sold................................................ 165,534
Shares issued on reinvestments of dividends................ 372
Shares redeemed............................................ (100)
-------------------
Net increase............................................... 165,806
===================
</TABLE>
- --------------------------------------------------------------------------------
* Commencement of distribution.
24
<PAGE>
FINANCIAL HIGHLIGHTS Alliance Institutional Reserves
================================================================================
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
<TABLE>
<CAPTION>
Prime Portfolio
------------------------------------------------------------------------------------
CLASS A
------------------------------------------------------------------------------------
Six Months
Ended
October 31, Year Ended April 30,
1998 ------------------------------------------------------------------
(unaudited) 1998 1997 1996 1995 1994
----------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year ....... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- -------- --------
Income From Investment Operations
Net investment income (a) ................ .0273 .0552 .0530 .0560 .0502 .0325
-------- -------- -------- -------- -------- --------
Less: Dividends
Dividends from net investment income ..... (.0273) (.0552) (.0530) (.0560) (.0502) (.0325)
-------- -------- -------- -------- -------- --------
Net asset value, end of period ........... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ======== ========
Total Return
Total investment return based on net
asset value (b) ....................... 5.49%(c) 5.68% 5.44% 5.76% 5.15% 3.30%
Ratios/Supplemental Data
Net assets, end of period (in millions) .. $1,873.7 $1,764.7 $ 867.3 $ 493.3 $ 197.8 $ 108.1
Ratios to average net assets of:
Expenses, net of waivers and
reimbursements ...................... .20%(c) .20% .20% .20% .20% .20%
Expenses, before waivers and
reimbursements ...................... .23%(c) .24% .29% .32% .36% .42%
Net investment income (a) ............. 5.45%(c) 5.52% 5.31% 5.54% 5.24% 3.25%
<CAPTION>
Prime Portfolio
-----------
CLASS B
-----------
August 14,
1998(d)
to October 31,
1998
(unaudited)
-----------
<S> <C>
Net asset value, beginning of period ............................................................................ $ 1.00
--------
Income From Investment Operations
Net investment income (a) ....................................................................................... .0118
--------
Less: Dividends
Dividends from net investment income ............................................................................ (.0118)
--------
Net asset value, end of period .................................................................................. $ 1.00
========
Total Return
Total investment return based on net
asset value (b)(c) ........................................................................................... 5.30%
Ratios/Supplemental Data
Net assets, end of period (in millions) ......................................................................... $ 132.4
Ratios to average net assets of:
Expenses, net of waivers and
reimbursements (c) ......................................................................................... .30%
Expenses, before waivers and
reimbursements (c) ......................................................................................... .34%
Net investment income (a)(c) ................................................................................. 5.35%
</TABLE>
- --------------------------------------------------------------------------------
See footnote summary on page 32.
25
<PAGE>
FINANCIAL HIGHLIGHTS (continued) Alliance Institutional Reserves
================================================================================
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
<TABLE>
<CAPTION>
Prime Portfolio
-----------
CLASS C
-----------
July 13,
1998(d)
to October 31,
1998
(unaudited)
-----------
<S> <C>
Net asset value, beginning of period ............................................................................ $ 1.00
--------
Income From Investment Operations
Net investment income (a) ....................................................................................... .0159
--------
Less: Dividends
Dividends from net investment income ............................................................................ (.0159)
--------
Net asset value, end of period .................................................................................. $ 1.00
========
Total Return
Total investment return based on net
asset value (b)(c) ........................................................................................... 5.18%
Ratios/Supplemental Data
Net assets, end of period (in millions) ......................................................................... $ 12.3
Ratios to average net assets of:
Expenses, net of waivers and
reimbursements (c) ......................................................................................... .45%
Expenses, before waivers and
reimbursements (c) ......................................................................................... .50%
Net investment income (a)(c) ................................................................................. 5.21%
</TABLE>
- --------------------------------------------------------------------------------
See footnote summary on page 32.
26
<PAGE>
Alliance Institutional Reserves
================================================================================
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
<TABLE>
<CAPTION>
Government Portfolio
------------------------------------------------------------------------------------
CLASS A
------------------------------------------------------------------------------------
Six Months
Ended
October 31, Year Ended April 30,
1998 ------------------------------------------------------------------
(unaudited) 1998 1997 1996 1995 1994
----------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year ....... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- -------- --------
Income From Investment Operations
Net investment income (a) ................ .0267 .0543 .0519 .0552 .0493 .0315
-------- -------- -------- -------- -------- --------
Less: Dividends
Dividends from net investment income ..... (.0267) (.0543) (.0519) (.0552) (.0493) (.0315)
-------- -------- -------- -------- -------- --------
Net asset value, end of period ........... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ======== ========
Total Return
Total investment return based on net
asset value (b) ....................... 5.37%(c) 5.58% 5.33% 5.67% 5.06% 3.20%
Ratios/Supplemental Data
Net assets, end of period (in millions) .. $ 331.7 $ 274.5 $ 326.5 $ 150.8 $ 104.4 $ 76.6
Ratios to average net assets of:
Expenses, net of waivers and
reimbursements ...................... .20%(c) .20% .20% .20% .20% .20%
Expenses, before waivers and
reimbursements ...................... .27%(c) .28% .35% .36% .38% .36%
Net investment income (a) ............. 5.29%(c) 5.43% 5.22% 5.50% 4.94% 3.15%
<CAPTION>
Government
Portfolio
-----------
CLASS B
-----------
August 7,
1998(d)
to October 31,
1998
(unaudited)
-----------
<S> <C>
Net asset value, beginning of period ............................................................................ $ 1.00
--------
Income From Investment Operations
Net investment income (a) ....................................................................................... .0128
--------
Less: Dividends
Dividends from net investment income ............................................................................ (.0128)
--------
Net asset value, end of period .................................................................................. $ 1.00
========
Total Return
Total investment return based on net
asset value (b)(c) ........................................................................................... 5.14%
Ratios/Supplemental Data
Net assets, end of period (in millions) ......................................................................... $ 46.4
Ratios to average net assets of:
Expenses, net of waivers and
reimbursements (c) ......................................................................................... .30%
Expenses, before waivers and
reimbursements (c) ......................................................................................... .37%
Net investment income (a)(c) ................................................................................. 5.13%
</TABLE>
- --------------------------------------------------------------------------------
See footnote summary on page 32.
27
<PAGE>
FINANCIAL HIGHLIGHTS (continued) Alliance Institutional Reserves
================================================================================
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
<TABLE>
<CAPTION>
Government
Portfolio
-----------
CLASS C
-----------
October 21,
1998(d)
to October 31,
1998
(unaudited)
-----------
<S> <C>
Net asset value, beginning of period ............................................................................ $ 1.00
--------
Income From Investment Operations
Net investment income (a) ....................................................................................... .0014
--------
Less: Dividends
Dividends from net investment income ............................................................................ (.0014)
--------
Net asset value, end of period .................................................................................. $ 1.00
========
Total Return
Total investment return based on net
asset value (b)(c) ........................................................................................... 4.67%
Ratios/Supplemental Data
Net assets, end of period (in thousands) ........................................................................ $ 179.4
Ratios to average net assets of:
Expenses, net of waivers and
reimbursements (c) ......................................................................................... .45%
Expenses, before waivers and
reimbursements (c) ......................................................................................... .52%
Net investment income (a)(c) ................................................................................. 4.69%
</TABLE>
- --------------------------------------------------------------------------------
See footnote summary on page 32.
28
<PAGE>
Alliance Institutional Reserves
================================================================================
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
<TABLE>
<CAPTION>
Tax-Free Portfolio
------------------------------------------------------------------------------------
CLASS A
------------------------------------------------------------------------------------
Six Months
Ended
October 31, Year Ended April 30,
1998 ------------------------------------------------------------------
(unaudited) 1998 1997 1996 1995 1994
----------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year ....... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- -------- --------
Income From Investment Operations
Net investment income (a) ................ .0173 .0363 .0347 .0372 .0326 .0240
Net unrealized loss on investments ....... -0- -0- -0- -0- (.0048) -0-
-------- -------- -------- -------- -------- --------
Net increase in net asset value from
operations ............................ .0173 .0363 .0347 .0372 .0278 .0240
-------- -------- -------- -------- -------- --------
Less: Dividends
Dividends from net investment income ..... (.0173) (.0363) (.0347) (.0372) (.0326) (.0240)
-------- -------- -------- -------- -------- --------
Add: Capital Contribution
Capital Contributed by the Adviser ....... -0- -0- -0- -0- .0048 -0-
-------- -------- -------- -------- -------- --------
Net asset value, end of period ........... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ======== ========
Total Return
Total investment return based on net
asset value (b) ....................... 3.46%(c) 3.70% 3.53% 3.79% 3.31%(e) 2.43%
Ratios/Supplemental Data
Net assets, end of period (in millions) .. $ 356.1 $ 293.8 $ 183.1 $ 183.6 $ 35.5 $ 35.6
Ratios to average net assets of:
Expenses, net of waivers and
reimbursements ...................... .20%(c) .20% .20% .20% .20% .20%
Expenses, before waivers and
reimbursements ...................... .26%(c) .28% .33% .48% .76% .69%
Net investment income (a) ............. 3.45%(c) 3.61% 3.46% 3.73% 3.31% 2.40%
<CAPTION>
Tax-Free
Portfolio
-----------
CLASS B
-----------
August 17,
1998(d)
to October 31,
1998
(unaudited)
-----------
<S> <C>
Net asset value, beginning of period ............................................................................ $ 1.00
--------
Income From Investment Operations
Net investment income (a) ....................................................................................... .0067
--------
Less: Dividends
Dividends from net investment income ............................................................................ (.0067)
--------
Net asset value, end of period .................................................................................. $ 1.00
========
Total Return
Total investment return based on net
asset value (b)(c) ........................................................................................... 3.25%
Ratios/Supplemental Data
Net assets, end of period (in millions) ......................................................................... $ 94.2
Ratios to average net assets of:
Expenses, net of waivers and
reimbursements (c) ......................................................................................... .30%
Expenses, before waivers and
reimbursements (c) ......................................................................................... .36%
Net investment income (a)(c) ................................................................................. 3.20%
</TABLE>
- --------------------------------------------------------------------------------
See footnote summary on page 32.
29
<PAGE>
FINANCIAL HIGHLIGHTS (continued) Alliance Institutional Reserves
================================================================================
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
<TABLE>
<CAPTION>
Tax-Free
Portfolio
-----------
CLASS C
-----------
September 8,
1998(d)
to October 31,
1998
(unaudited)
-----------
<S> <C>
Net asset value, beginning of period ............................................................................ $ 1.00
Income From Investment Operations
Net investment income (a) ....................................................................................... .0047
--------
Less: Dividends
Dividends from net investment income ............................................................................ (.0047)
--------
Net asset value, end of period .................................................................................. $ 1.00
========
Total Return
Total investment return based on net
asset value (b)(c) ........................................................................................... 3.16%
Ratios/Supplemental Data
Net assets, end of period (in millions) ......................................................................... $ 1.2
Ratios to average net assets of:
Expenses, net of waivers and
reimbursements (c) ......................................................................................... .45%
Expenses, before waivers and
reimbursements (c) ......................................................................................... .49%
Net investment income (a)(c) ................................................................................. 3.02%
</TABLE>
- --------------------------------------------------------------------------------
See footnote summary on page 32.
30
<PAGE>
Alliance Institutional Reserves
================================================================================
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
<TABLE>
<CAPTION>
Trust Portfolio
------------------------------------------------------------------------------------
CLASS A
------------------------------------------------------------------------------------
Six Months
Ended
October 31, Year Ended April 30,
1998 ------------------------------------------------------------------
(unaudited) 1998 1997 1996 1995 1994
----------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year ....... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- -------- --------
Income From Investment Operations
Net investment income (a) ................ .0259 .0523 .0492 .0527 .0479 .0309
-------- -------- -------- -------- -------- --------
Less: Dividends
Dividends from net investment income ..... (.0259) (.0523) (.0492) (.0527) (.0479) (.0309)
-------- -------- -------- -------- -------- --------
Net asset value, end of period ........... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ======== ========
Total Return
Total investment return based on net
asset value (b) ....................... 5.20%(c) 5.37% 5.04% 5.41% 4.91% 3.14%
Ratios/Supplemental Data
Net assets, end of period (in millions) .. $ 455.4 $ 390.5 $ 175.7 $ 170.1 $ 109.2 $ 36.8
Ratios to average net assets of:
Expenses, net of waivers and
reimbursements ...................... .50%(c) .49% .50% .50% .49% .14%
Expenses, before waivers and
reimbursements ...................... .52%(c) .54% .57% .60% .75% 1.23%
Net investment income (a) ............. 5.16%(c) 5.23% 4.93% 5.28% 5.31% 3.15%
</TABLE>
- --------------------------------------------------------------------------------
See footnote summary on page 32.
31
<PAGE>
FINANCIAL HIGHLIGHTS (continued) Alliance Institutional Reserves
================================================================================
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
<TABLE>
<CAPTION>
Treasury
Portfolio
-----------
CLASS A
-----------
June 29,
1998(d)
to October 31,
1998
(unaudited)
-----------
<S> <C>
Net asset value, beginning of period ............................................................................ $ 1.00
--------
Income From Investment Operations
Net investment income (a) ....................................................................................... .0175
--------
Less: Dividends
Dividends from net investment income ............................................................................ (.0175)
--------
Net asset value, end of period .................................................................................. $ 1.00
========
Total Return
Total investment return based on net asset value (b)(c) ......................................................... 5.17%
Ratios/Supplemental Data
Net assets, end of period (in millions)) ........................................................................ $ 12.7
Ratios to average net assets of:
Expenses, net of waivers and reimbursements (c) .............................................................. .20%
Expenses, before waivers and reimbursements (c) .............................................................. 2.07%
Net investment income (a)(c) ................................................................................. 5.18%
<CAPTION>
Treasury
Portfolio
-----------
CLASS C
-----------
October 15,
1998(d)
to October 31,
1998
(unaudited)
-----------
<S> <C>
Net asset value, beginning of period ............................................................................ $ 1.00
--------
Income From Investment Operations
Net investment income (a) ....................................................................................... .0021
--------
Less: Dividends
Dividends from net investment income ............................................................................ (.0021)
--------
Net asset value, end of period .................................................................................. $ 1.00
========
Total Return
Total investment return based on net asset value (b)(c) ......................................................... 4.57%
Ratios/Supplemental Data
Net assets, end of period (in thousands) ........................................................................ $ 165.8
Ratios to average net assets of:
Expenses, net of waivers and reimbursements (c) .............................................................. .45%
Expenses, before waivers and reimbursements (c) .............................................................. 1.54%
Net investment income (a)(c) ................................................................................. 4.57%
</TABLE>
- --------------------------------------------------------------------------------
(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.
(c) Annualized.
(d) Commencement of operations.
(e) Capital contributed by the Adviser had no material effect on net asset
value, and therefore, no effect on total return.
32
<PAGE>
Alliance 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.
33