ALLIANCE
-----------------
INSTITUTIONAL
-----------------
RESERVES
-----------------
SEMI-ANNUAL REPORT
OCTOBER 31, 1999
(UNAUDITED)
<PAGE>
STATEMENT OF NET ASSETS
October 31, 1999 (unaudited) Alliance Institutional Reserves - Prime Portfolio
================================================================================
Principal
Amount
(000) Security Yield Value
- --------------------------------------------------------------------------------
COMMERCIAL PAPER-46.5%
Abbey National Treasury
Services
$ 32,000 11/29/99 .................. 5.35% $ 31,866,845
American General Corp.
42,000 11/15/99 .................. 5.31 41,913,270
Asset Backed Capital
38,000 3/15/00 (a) ............... 5.82 37,170,650
Asset Securitization
Cooperative Corp. FRN
38,000 2/15/00 (a) ............... 5.51 38,000,000
Associates Corp. of
North America
80,000 11/15/99 .................. 5.35 79,833,556
Australia New Zealand
Delaware
17,400 12/01/99 .................. 5.35 17,322,425
25,000 12/21/99 .................. 5.35 24,814,236
Bank of Scotland
26,000 11/29/99 .................. 5.35 25,891,811
Banque Caisse
d'Epargne L'etat
40,000 6/21/00. .................. 5.60 38,550,222
Bell Atlantic Network
Funding
30,000 12/08/99 .................. 5.35 29,835,042
Caisse des Depots et
Consignations
120,000 11/01/99 .................. 5.32 120,000,000
Centric Capital Corp.
11,000 11/15/99 (a) .............. 5.35 10,977,114
Chase Manhattan Bank
40,000 2/09/00 ................... 5.65 39,372,222
Corporate Asset
Securitization Australia
40,000 11/19/99 (a) .............. 5.40 39,892,000
Cregem North America,
Inc.
17,000 12/22/99 .................. 5.35 16,871,154
CS First Boston, Inc.
40,000 3/14/00 (a) ............... 5.77 39,140,911
Ford Motor Credit Co.
FRN
36,000 3/08/00 ................... 5.52 36,000,000
General Electric Capital
Corp.
40,000 3/06/00 ................... 5.98 39,162,800
General Motors
Acceptance Corp.
43,000 11/01/99 .................. 5.32 43,000,000
Gillette Co.
100,000 11/01/99 .................. 5.33 100,000,000
Golden Funding Corp.
30,000 3/24/00. .................. 5.98 29,282,400
Government Development
Bank of Puerto Rico
10,000 11/15/99 .................. 5.32 9,979,311
21,350 11/09/99 .................. 5.35 21,324,617
Halifax PLC
42,000 12/23/99 .................. 5.35 41,675,433
HVB Finance, Inc.
32,000 12/15/99 .................. 5.30 31,792,711
ING America Insurance
Holdings, Inc.
15,000 11/01/99 .................. 5.36 15,000,000
International
Securitization Corp.
20,000 11/10/99 (a) .............. 5.43 19,972,850
Koch Industries
150,000 11/01/99 (a) .............. 5.34 150,000,000
National Australia
Funding
150,000 11/01/99 .................. 5.32 150,000,000
Santander Finance
16,000 12/15/99 .................. 5.35 15,895,378
Societe Generale NA,
Inc.
43,000 12/01/99 .................. 5.36 42,807,934
Thames Global Asset
Funding
16,566 11/10/99 (a) .............. 5.37 16,543,760
10,649 11/08/99 (a) .............. 5.38 10,637,860
Vodafone Airtouch PLC
16,000 11/23/99 .................. 5.35 15,947,689
Wells Fargo & Co.
16,000 2/23/00. .................. 5.70 15,711,200
Windmill Funding Corp.
40,000 11/01/99 (a) .............. 5.40 40,000,000
--------------
Total Commercial Paper
(amortized cost
1,476,185,401) ............ 1,476,185,401
--------------
CERTIFICATES OF
DEPOSIT-20.8%
Bank of Nova Scotia
40,000 5.37%, 11/10/99 ........... 5.37 40,000,000
Barclays Bank PLC
45,000 5.41%, 6/14/00 FRN ........ 5.47 44,986,526
15,000 5.61%, 6/14/00 ............ 5.66 14,995,548
Bayerische Landesbank
FRN
60,000 5.39%, 3/30/00 ............ 5.45 59,985,462
Deutsche Bank
35,000 5.44%, 6/01/00 ............ 5.49 34,990,193
15,000 5.58%, 6/12/00 ............ 5.61 14,997,352
Landesbank-Hessen-
Thueringen
15,000 5.19%, 2/29/00 ............ 5.24 14,956,448
15,000 5.92%, 9/29/00 ............ 5.98 14,992,152
National Westminster
Bank
35,000 5.38%, 4/17/00 FRN ........ 5.44 34,990,971
25,000 5.67%, 7/05/00 ............ 5.71 24,993,519
Nordeutsche Landesbank
20,000 5.26%, 5/18/00 ............ 5.30 19,995,804
Rabobank Nederland
15,000 5.35%, 5/24/00 ............ 5.40 14,995,951
1
<PAGE>
Alliance Institutional Reserves - Prime Portfolio
================================================================================
Principal
Amount
(000) Security Yield Value
- --------------------------------------------------------------------------------
Royal Bank of Canada
$ 50,000 586%, 8/09/00 ............. 5.90% $ 49,985,220
San Paolo-IMI
27,000 610%, 3/27/00 ............. 6.09 27,001,075
Southtrust Bank NA
32,000 542%, 11/22/99 ............ 5.42 32,000,000
Toronto Dominion Bank
15,000 507%, 2/17/00 ............. 5.10 14,998,503
15,000 530%, 3/06/00 ............. 5.33 14,998,257
UBS Finance Stamford,
Inc
20,000 516%, 2/28/00 ............. 5.19 19,998,117
10,000 522%, 5/10/00 ............. 5.26 9,997,985
25,000 529%, 3/07/00 ............. 5.12 25,012,158
15,000 529%, 5/19/00 ............. 5.34 14,996,048
25,000 534%, 5/30/00 ............. 5.39 24,993,056
23,000 536%, 5/30/00 ............. 5.61 22,966,008
14,000 560%, 6/23/00 ............. 5.74 13,986,645
Unibank
42,000 5.43%, 12/22/99 ........... 5.42 42,000,581
Wachovia Bank NA
14,000 5.95%, 9/11/00. ........... 5.95 14,000,000
--------------
Total Certificates of Deposit
(amortized cost
$661,813,579) ............. 661,813,579
--------------
CORPORATE
OBLIGATIONS-15.8%
Allstate Life Insurance
Funding Agreement
FRN
25,000 5.45%, 5/01/00 (b) ........ 5.45 25,000,000
Beta Finance, Inc
FRN
38,000 610%, 9/15/00 (a) ......... 6.10 38,000,000
Centauri Corp USA,
Inc FRN
43,000 610%, 9/08/00 (a) ......... 6.10 43,000,000
Dorada Finance, Inc
MTN
38,000 602%, 9/15/00 (a) ......... 6.02 38,000,000
Hartford Life
Insurance Co FRN
40,000 540%, 3/16/00 ............. 5.40 40,000,000
Merrill Lynch & Co,
Inc MTN
10,000 509%, 2/07/00 ............. 5.09 10,000,000
Metlife Funding
Agreement FRN
50,000 539%, 6/01/00 ............. 5.39 50,000,000
Prudential Insurance
Co of America Funding
Agreement FRN
16,000 541%, 11/30/00 ............ 5.41 16,000,000
Sigma Finance, Inc
FRN
50,000 541%, 6/30/00 (a) ......... 5.41 50,000,000
55,000 553%, 6/29/00 (a) ......... 5.53 55,000,000
20,000 555%, 7/25/00 (a) ......... 5.55 20,000,000
Toyota Motor Credit
Corp FRN
34,000 603%, 9/21/00 ............. 6.03 34,000,000
Travelers Life Funding
Agreement FRN
20,000 539%, 4/14/00 ............. 5.39 20,000,000
25,000 546%, 7/21/00 (b) ......... 5.46 25,000,000
Variable Funding
Capital Corp FRN
38,000 551%, 3/15/00 (a) ......... 5.51 38,000,000
--------------
Total Corporate
Obligations
(amortized cost
$502,000,000) ............. 502,000,000
--------------
US GOVERNMENT &
AGENCY
OBLIGATIONS-79%
Federal Home Loan
Bank
21,325 500%, 2/10/00 ............. 5.00 21,325,000
43,000 538%, 10/16/00 FRN ........ 5.49 42,957,901
Federal National
Mortgage Association
MTN
25,000 585%, 10/05/00 ............ 5.90 24,988,679
Student Loan Marketing
Association FRN
15,000 582%, 11/24/99 ............ 5.85 14,999,716
40,000 585%, 2/04/00 ............. 5.87 39,997,963
80,000 585%, 10/04/00 ............ 5.90 79,963,880
25,000 590%, 11/09/99 ............ 5.95 24,999,677
--------------
Total US Government &
Agency Obligations
(amortized cost
$249,232,816) ............. 249,232,816
--------------
BANK OBLIGATIONS-47%
American Express
Centurion Bank FRN
80,000 550%, 4/14/00 ............. 5.50 80,000,000
40,000 555%, 5/04/00 ............. 5.55 40,000,000
FCC National Bank
13,000 589%, 3/15/00 ............. 5.89 13,000,000
First National Bank
10,000 560%, 6/14/00 ............. 5.65 9,997,031
First Union Bank of NC
7,000 502%, 11/18/99 ............ 5.36 6,998,537
--------------
Total Bank Obligations
(amortized cost
$149,995,568) ............. 149,995,568
--------------
PROMISSORY NOTES-25%
Goldman Sachs Group LP
50,000 537%, 2/01/00 (a) ......... 5.37 50,000,000
30,000 546%, 11/19/99 (a) ........ 5.46 30,000,000
--------------
Total Promissory Notes
(amortized cost
$80,000,000) .............. 80,000,000
--------------
2
<PAGE>
STATEMENT OF NET ASSETS
(continued) Alliance Institutional Reserves - Prime Portfolio
================================================================================
Principal
Amount
(000) Security Yield Value
- --------------------------------------------------------------------------------
TIME DEPOSIT-1.2%
Dresdner Bank
$ 39,000 5.34%, 11/01/99
(amortized cost
$39,000,000)................ 5.34% $ 39,000,000
--------------
TOTAL INVESTMENTS-99.4%
(amortized cost
$3,158,227,364)............. 3,158,227,364
Other assets less
liabilities-0.6%............ 17,767,574
--------------
NET ASSETS-100%
(offering and redemption
price of $1.00 per share;
1,883,000,316 Class A shares;
1,236,031,789 Class B shares
and 57,102,077 Class C shares
outstanding)................ $3,175,994,938
==============
- --------------------------------------------------------------------------------
See Glossary of Terms on page 17.
See notes to financial statements.
3
<PAGE>
STATEMENT OF NET ASSETS Alliance Institutional Reserves -
October 31, 1999 (unaudited) Government Portfolio
================================================================================
Principal
Amount
(000) Security Yield Value
- --------------------------------------------------------------------------------
U.S. GOVERNMENT &
AGENCY OBLIGATIONS-54.1%
FEDERAL HOME LOAN
BANK-23.7%
$ 7,000 5.30%, 12/01/99 FRN..... 5.88% $ 6,999,576
5,000 5.38%, 10/16/00 FRN..... 5.52 4,995,105
3,000 5.58%, 10/19/00 FRN..... 5.58 3,000,000
10,000 5.68%, 7/28/00 FRN...... 5.84 9,993,361
5,000 5.85%, 10/06/00 FRN..... 5.94 4,997,729
5,000 5.86%, 10/06/00 FRN..... 5.97 4,996,822
3,000 5.87%, 3/15/00 FRN...... 5.87 3,000,000
20,000 2/10/00................. 5.00 19,999,862
2,000 2/17/00................. 5.00 1,999,313
2,000 2/18/00................. 5.00 1,999,307
5,500 2/25/00................. 5.05 5,499,178
7,000 3/03/00................. 5.05 6,999,265
14,000 3/17/00................. 5.14 14,000,000
3,000 3/03/00................. 5.15 2,999,476
8,100 5/17/00................. 5.17 8,097,108
8,000 3/08/00................. 5.23 7,997,901
8,100 5/19/00................. 5.23 8,096,238
8,000 6/14/00................. 5.46 7,998,192
5,000 7/13/00................. 5.58 4,996,657
5,000 7/14/00................. 5.58 4,999,161
3,000 4/14/00................. 5.66 2,996,900
5,000 3/24/00................. 5.73 4,888,400
5,000 3/29/00................. 5.74 4,884,525
1,000 5/26/00................. 5.85 996,626
3,000 11/03/00................ 6.05 2,999,790
--------------
150,430,492
--------------
STUDENT LOAN
MARKETING
ASSOCIATION-13.0%
10,000 5.80%, 12/03/99 FRN..... 6.23 9,999,649
15,000 5.80%, 2/14/00 FRN...... 6.06 14,997,465
10,000 5.82%, 11/24/99 FRN..... 6.26 9,999,811
3,000 5.82%, 3/16/00 FRN...... 5.82 2,999,477
15,000 5.85%, 2/04/00 FRN...... 5.97 14,999,236
15,000 5.85%, 8/10/00 FRN...... 5.93 14,996,521
5,000 5.85%, 10/12/00 FRN..... 6.00 4,994,919
10,000 5.90%, 11/09/99 FRN..... 5.90 9,999,871
--------------
82,986,949
--------------
FEDERAL NATIONAL
MORTGAGE
ASSOCIATION-11.2%
9,000 5.00%, 5/05/00 MTN...... 5.23 8,994,694
3,500 5.04%, 4/06/00 MTN...... 5.20 3,498,866
5,000 5.10%, 5/19/00 MTN...... 5.71 4,982,973
2,000 5.12%, 5/12/00 MTN...... 5.71 1,992,204
25,000 5.37%, 7/17/00 FRN...... 5.48 24,991,179
4,000 11/19/99................ 4.94 3,990,360
3,000 12/08/99................ 5.21 2,984,306
5,000 12/17/99................ 5.31 4,966,458
5,000 12/10/99................ 5.33 4,971,508
3,000 3/10/00................. 5.70 2,939,983
7,000 8/16/00................. 5.76 7,032,021
--------------
71,344,552
--------------
FEDERAL HOME LOAN
MORTGAGE CORP.-6.2%
15,000 11/08/99................ 5.24 14,984,775
8,900 11/10/99................ 5.27 8,888,430
3,000 12/01/99................ 5.31 2,986,825
5,000 1/20/00................. 5.35 4,942,111
3,000 3/02/00................. 5.67 2,943,677
5,000 3/09/00................. 5.72 4,900,025
--------------
39,645,843
--------------
Total U.S. Government &
Agency Obligations
(amortized cost
$344,407,836)........... 344,407,836
--------------
REPURCHASE
AGREEMENTS-45.8%
ABN AMRO
15,000 5.29%, dated 10/29/99,
due 11/30/99 in the
amount of $15,070,533
(cost $15,000,000;
collateralized by
$14,565,000 FNMA,
8.90%, 6/12/00, value
$15,311,921) (c)........ 5.29 15,000,000
Bank of America
15,000 5.24%, dated 10/26/99,
due 11/09/99 in the
amount of $15,030,567
(cost $15,000,000;
collateralized by
$17,850,000 FNMA,
6.00%, 11/13/01, value
$15,405,605) (c)........ 5.24 15,000,000
Bank of America
10,000 5.25%, dated 10/13/99,
due 11/15/99 in the
amount of $10,048,125
(cost $10,000,000;
collateralized by
$11,725,000 FNMA 323312,
6.00%, 11/01/28, value
$10,243,182) (c)........ 5.25 10,000,000
Barclays de Zoete Wedd
Securities, Inc.
30,000 5.32%, dated 10/29/99,
due 11/01/99 in the
amount of $30,013,300
(cost $30,000,000;
collateralized by
$31,010,000 FNMA,
6.625%, 9/15/09,
value $31,176,248)...... 5.32 30,000,000
4
<PAGE>
STATEMENT OF NET ASSETS
(continued) Alliance Institutional Reserves - Government Portfolio
================================================================================
Principal
Amount
(000) Security Yield Value
- --------------------------------------------------------------------------------
Chase Securities, Inc.
$ 15,000 5.27%, dated 10/27/99,
due 11/29/99 in the
amount of $15,072,463
(cost $15,000,000;
collateralized by
$25,225,000 FNMA 160475,
7.00%, 7/01/22, value
$15,767,447) (c)............ 5.27% $ 15,000,000
Chase Securities, Inc.
15,000 5.28%, dated 10/13/99,
due 11/16/99 in the
amount of $15,074,800
(cost $15,000,000;
collateralized by
$17,615,000 FNMA 452037,
6.50%, 11/28/01, value
$15,433,888) (c)............ 5.28 15,000,000
Deutsche Bank
25,000 5.28%, dated 10/05/99,
due 11/04/99 in the
amount of $25,110,000
(cost $25,000,000;
collateralized by
$23,390,000 FNMA 313040;
7.00%, 8/01/11, value
$11,907,782 and
$16,758,000 FNMA
323473; 1.00%, 6/01/30,
value $13,881,221) (c)...... 5.28 25,000,000
Goldman Sachs & Co.
20,000 5.25%, dated 10/27/99,
due 11/18/99 in the
amount of $20,064,167
(cost $20,000,000;
collateralized by
$22,962,000 FNMA,
6.00%, 1/01/29,
value $20,491,115) (c)...... 5.25 20,000,000
Goldman Sachs & Co.
10,000 5.27%, dated 10/29/99,
due 11/05/99 in the
amount of $10,010,247
(cost $10,000,000;
collateralized by
$11,373,000 FNMA, 6.00%,
1/01/29, value
$10,269,542) (c)............ 5.27 10,000,000
Paine Webber, Inc.
15,000 5.22%, dated 10/20/99,
due 11/02/99 in the
amount of $15,028,275
(cost $15,000,000;
collateralized by
$17,312,000 FHLMC C16128
6.50%, 10/01/28, value
$15,394,532) (c)............ 5.22 15,000,000
Paine Webber, Inc.
15,000 5.26%, dated 10/15/99,
due 11/05/99 in the
amount of $15,046,025
(cost $15,000,000;
collateralized by
$16,469,000 FHLMC
C26467, 6.50%, 5/01/29,
value $15,374,025) (c)...... 5.26 15,000,000
Paribas Corp.
30,000 5.30%, dated 10/29/99,
due 11/01/99 in the
amount of $30,013,250
(cost $30,000,000;
collateralized by
$30,685,000 FHLBDN,
11/17/99, value
$30,601,596) (c)............ 5.30 30,000,000
Prudential Securities, Inc.
10,000 5.28%, dated 10/29/99,
due 11/19/99 in the
amount of $10,030,800
(cost $10,000,000;
collateralized by
$10,935,000 FNMA 459299,
6.50%, 2/01/29, value
$10,325,154) (c)............ 5.28 10,000,000
Prudential Securities, Inc.
15,000 5.29%, dated 10/28/99,
due 11/26/99 in the
amount of $15,063,921
(cost $15,000,000;
collateralized by
$46,100,000 FHLB G00694,
8.00%, 3/01/27, value
$15,444,504) (c)............ 5.29 15,000,000
Salomon Smith Barney, Inc.
15,000 5.25%, dated 10/21/99,
due 11/22/99 in the
amount of $15,070,000
(cost $15,000,000;
collateralized by
$15,421,799 FNMA,
7.00%, 9/01/14, value
$15,370,928) (c)............ 5.25 15,000,000
5
<PAGE>
Alliance Institutional Reserves - Government Portfolio
================================================================================
Principal
Amount
(000) Security Yield Value
- --------------------------------------------------------------------------------
State Street Bank and Trust Co.
$ 36,200 5.25%, dated 10/29/99,
due 11/01/99 in the
amount of $36,215,838
(cost $36,200,000;
collateralized by
$36,530,000 FHLB,
5.40%, 11/17/03, value
$36,924,524)................ 5.25% $ 36,200,000
--------------
Total Repurchase
Agreements
(amortized cost
$291,200,000)............... 291,200,000
--------------
TOTAL INVESTMENTS-99.9%
(amortized cost
$635,607,836)............... 635,607,836
Other assets less
liabilities-0.1%............ 535,409
--------------
NET ASSETS-100%
(offering and redemption
price of $1.00 per share;
461,010,848 Class A shares;
158,323,334 Class B shares
and 16,940,208 Class C
shares outstanding)......... $ 636,143,245
==============
- --------------------------------------------------------------------------------
See Glossary of Terms on page 17.
See notes to financial statements.
6
<PAGE>
STATEMENT OF NET ASSETS Alliance Institutional Reserves -
October 31, 1999 (unaudited) Tax-Free Portfolio
================================================================================
Principal
Amount
(000) Security(d) Yield Value
- --------------------------------------------------------------------------------
MUNICIPAL BONDS-101.2%
ALABAMA-0.9%
Arab IDB
$ 150 (SCI Manufacturing, Inc.)
Series 89 VRDN
8/01/00 (e) .............. 4.75% $ 150,000
Selma IDR
4,000 (Specialty Minerals Project)
Series 94 VRDN
11/01/09 (e).............. 3.55 4,000,000
--------------
4,150,000
--------------
ALASKA-3.7%
Alaska Housing Finance
Corp.
3,705 (University of Alaska)
Series 97A VRDN
12/01/27 (e).............. 3.60 3,705,000
Alaska IDA
6,495 (American President Lines)
Series 91 VRDN
11/01/09 (e).............. 3.65 6,495,000
Alaska IDA
4,400 (Fairbanks Gold Mining,
Inc.)
Series 97 AMT VRDN
5/01/09 (e) .............. 3.60 4,400,000
Anchorage
3,330 (Electric Utility Revenue)
Series D VRDN
12/01/26 (e).............. 3.45 3,330,000
--------------
17,930,000
--------------
ARIZONA-2.6%
Apache County IDR
8,900 (Tucson Electric Power
Co. Project)
Series 83-C VRDN
12/15/18 (e).............. 3.45 8,900,000
Pinal County
3,800 (Magma Copper Project)
Series 92 VRDN
12/01/11 (e).............. 3.45 3,800,000
--------------
12,700,000
--------------
ARKANSAS-2.2%
Arkansas Hospital
Equipment Finance
Authority
10,700 (AHA Pooled Financing
Program)
Series 98A VRDN
11/01/28 (e).............. 3.60 10,700,000
--------------
CALIFORNIA-0.7%
Student Education Loan
Market Corp.
3,320 (California Student Loan
Revenue)
Series 93A VRDN
11/01/02 (e).............. 3.50 3,320,000
--------------
COLORADO-3.9%
Douglas County MFHR
10,950 (Autumn Chase Project)
Series 85 VRDN
7/01/06 (e) .............. 3.50 10,950,000
University of Colorado
8,000 (Certificates of Participation)
Series A PPB
7/01/18 (e) .............. 3.50 8,000,000
--------------
18,950,000
--------------
DELAWARE-3.3%
Delaware Economic
Development Authority IDR
8,150 (Delmarva Power & Light)
Series 93C VRDN
10/01/28 (e).............. 3.57 8,150,000
Delaware Economic
Development Authority PCR
7,665 (Delmarva Power & Light)
Series 99A VRDN
7/01/24 (e) .............. 3.50 7,665,000
--------------
15,815,000
--------------
DISTRICT OF
COLUMBIA-2.5%
District of Columbia
3,000 (American Society for
Micro Biology)
Series 99A VRDN
1/01/29 (e) .............. 3.45 3,000,000
District of Columbia
7,065 (Resources for the Future, Inc.)
Series 98 VRDN
8/01/29 (e) .............. 3.65 7,065,000
District of Columbia
1,820 Series 92A-5 VRDN
10/01/07 (e).............. 3.60 1,820,000
--------------
11,885,000
--------------
FLORIDA-7.2%
Highlands County Health
Facilities
9,765 (Adventist/Sunbelt)
Series A VRDN
11/15/26 (e).............. 3.55 9,765,000
Hillsborough County
PCR
4,500 (Tampa Electric Project)
Series 93 AMT VRDN
11/01/20 (e).............. 3.60 4,500,000
Jacksonville IDR
1,930 (St. John's Medical
Investors)
Series 96 VRDN
1/01/15 (e) .............. 3.50 1,930,000
7
<PAGE>
Alliance Institutional Reserves - Tax-Free Portfolio
================================================================================
Principal
Amount
(000) Security(d) Yield Value
- --------------------------------------------------------------------------------
Palm Beach County
HFA MFHR
$ 6,350 (Cotton Bay Apartments)
Series 88D VRDN
11/01/07 (e).............. 3.45% $ 6,350,000
Pinellas County Health
Facility
5,005 (St. Marks Village
Project) VRDN
3/01/17 (e) .............. 3.50 5,005,000
Polk County IDA
7,000 (Farmland Hydro LP Project)
Series 99 AMT VRDN
2/01/29 (e) .............. 3.55 7,000,000
--------------
34,550,000
--------------
GEORGIA-4.7%
Fulton County HFA
MFHR
5,000 (Hampton Hills
Apartments Project) VRDN
6/01/23 (e) .............. 3.50 5,000,000
Marietta HFA
11,225 (Winterset Apartments
Project)
Series P VRDN
2/01/26 (e) .............. 3.55 11,225,000
Savannah Economic
Development Authority
3,000 (Georgia Kaolin)
Series 97 AMT VRDN
7/01/27 (e) .............. 3.70 3,000,000
Thomaston-Upson
County IDR
3,300 (De Ster Production Corp.)
Series A AMT VRDN
10/01/09 (e).............. 3.80 3,300,000
--------------
22,525,000
--------------
IDAHO-0.3%
Custer County Solid
Waste Revenue
1,300 (Hecla Mining Co. Project)
Series 97 AMT VRDN
7/01/07 (e) .............. 3.75 1,300,000
--------------
ILLINOIS-4.6%
Des Plaines Cook County
IDR
6,685 (CP Partners LLC Project)
Series 97A VRDN
11/01/15 (e).............. 3.65 6,685,000
DuPage County
5,000 (Benedictine University
Building Project)
Series 99 VRDN
7/01/24 (e) .............. 3.57 5,000,000
Galesburg Illinois
Revenue
1,500 (Knox College Project)
Series 99 VRDN
7/01/24 (e) .............. 3.50 1,500,000
Illinois Development
Finance Authority
1,000 (D.E. Akin Seed Project)
AMT VRDN
11/01/04 (e).............. 3.75 1,000,000
Illinois Health Facilities
Authority
7,575 (Northwest Community
Hospital)
Series 85C VRDN
10/01/15 (e).............. 3.60 7,575,000
Vernon Hills IDR
550 (Kinder Care Center)
VRDN
2/01/01 (e) .............. 3.65 550,000
--------------
22,310,000
--------------
INDIANA-3.4%
Gibson County PCR
2,500 (Toyota Motor
Manufacturing Project)
Series 98 AMT VRDN
1/01/28 (e) .............. 3.50 2,500,000
Indiana Development
Finance Authority PCR
13,905 (Alcoa, Inc. Project)
Series 99 VRDN
1/01/17 (e) .............. 3.57 13,905,000
--------------
16,405,000
--------------
KENTUCKY-0.7%
Barbourville College
Revenue
3,500 (Union College Project)
Series A VRDN
8/01/23 (e) .............. 3.60 3,500,000
--------------
LOUISIANA-4.9%
Louisiana Offshore
Deepwater Port Authority
5,605 (Loop LLC Project)
Series 99 VRDN
10/01/19 (e).............. 3.50 5,605,000
Louisiana Public
Facility Authority
18,000 (Hospital Equipment
Finance Project)
Series 85A VRDN
12/01/10 (e).............. 3.50 18,000,000
--------------
23,605,000
--------------
8
<PAGE>
STATEMENT OF NET ASSETS
(continued) Alliance Institutional Reserves - Tax-Free Portfolio
================================================================================
Principal
Amount
(000) Security(d) Yield Value
- --------------------------------------------------------------------------------
MAINE-1.9%
Biddeford Revenue
$ 5,000 (DK Associates & Volk
Packaging Project)
Series 97 AMT VRDN
7/01/17 (e) .............. 3.65% $ 5,000,000
Maine Finance Authority
1,205 (Barber Foods, Inc.)
Series 90B AMT VRDN
12/01/06 (e).............. 3.75 1,205,000
Westbrook IDA
2,690 (D & G Group Project)
AMT VRDN
5/01/17 (e) .............. 3.65 2,690,000
--------------
8,895,000
--------------
MARYLAND-1.9%
Maryland State
9,000 (Housing & Community
Development)
Series G AMT
8/30/00 .................. 3.65 9,000,000
--------------
MASSACHUSETTS-1.4%
Holden GO BAN
5,500 Series 99
3/15/00 .................. 3.75 5,504,965
Massachusetts Bay
Transport Authority
1,000 (General Transportation
System)
Series 99 VRDN
3/01/14 (e) .............. 3.60 1,000,000
--------------
6,504,965
--------------
MICHIGAN-1.6%
Michigan State Hospital
Finance Authority
7,600 (Hospital Equipment
Revenue)
Series 98A VRDN
12/01/23 (e).............. 3.52 7,600,000
--------------
MINNESOTA-1.1%
Cottage Grove
1,000 (Minnesota Mining &
Manufacturing Co.
Project) VRDN
8/01/12 (e) .............. 3.73 1,000,000
Eden Prairie IDA
465 (Kinder Care Project)
Series C VRDN
2/01/01 (e) .............. 3.65 465,000
Minneapolis St. Paul
4,000 SFMR (City Living
Home Program)
Series 99B-2
8/01/00 .................. 3.65 4,000,000
--------------
5,465,000
--------------
MISSISSIPPI-0.5%
Mississippi Business
Finance Authority
2,500 (Triton Systems, Inc.)
Series 98A AMT VRDN
12/01/13 (e).............. 3.70 2,500,000
--------------
MISSOURI-1.3%
Blue Springs IDA
540 (Kinder Care Project)
Series C VRDN
2/01/01 (e) .............. 3.65 540,000
Boone County IDA
500 (Minnesota Mining &
Manufacturing Co.
Project) VRDN
12/01/25 (e).............. 3.40 500,000
Missouri Health &
Educational Authority
5,000 (Stowers Institute)
Series 98 VRDN
4/01/38 (e) .............. 3.45 5,000,000
--------------
6,040,000
--------------
NEVADA-1.5%
Clark County Nevada
6,100 (Airport System)
Series 99B-2 PPB
3/01/00 (e) .............. 3.70 6,100,000
Washoe County IDR
1,300 (Sierra Pacific Power Co.)
Series 90 AMT VRDN
12/01/20 (e).............. 3.60 1,300,000
--------------
7,400,000
--------------
OHIO-3.6%
Ohio Water Development
Authority
15,000 (Philip Morris Co.)
Series 97 VRDN
9/01/18 (e) .............. 3.70 15,000,000
Warren County IDR
2,500 (Pioneer Industrial
Components Project)
Series 85 VRDN
12/01/05 (e).............. 4.70 2,500,000
--------------
17,500,000
--------------
OKLAHOMA-1.0%
Oklahoma Development
Finance Authority
5,000 (Oklahoma Hospital
Association)
Series 99A VRDN
6/01/29 (e) .............. 3.60 5,000,000
--------------
OREGON-3.4%
Oregon Economic
Development Revenue
3,800 (Kyotaru Oregon Project)
Series 89 AMT VRDN
12/01/99 (e).............. 3.93 3,800,000
9
<PAGE>
Alliance Institutional Reserves - Tax-Free Portfolio
================================================================================
Principal
Amount
(000) Security(d) Yield Value
- --------------------------------------------------------------------------------
Oregon Housing &
Community Services
$ 8,180 (Single Family Mortgage
Revenue) Series N
11/02/00 ................. 3.85% $ 8,180,000
Oregon State Housing &
Community Services
Deposit
4,200 (Single Family Mortgage
Revenue) Series 99G
6/29/00 .................. 3.45 4,200,000
--------------
16,180,000
--------------
PENNSYLVANIA-11.4%
Allegheny County IDR
11,225 (United Jewish Federation
Project)
Series 96A VRDN
10/01/26 (e).............. 3.60 11,225,000
Cambria County IDA
5,000 (Cambria Cogen Co. Project)
Series 98A-1 AMT VRDN
12/01/28 (e).............. 3.55 5,000,000
Montgomery County
Higher Education &
Health Loan Revenue
10,260 Series 96A VRDN
4/01/17 (e) .............. 3.60 10,260,000
14,110 Series 97A VRDN
8/01/21 (e) .............. 3.60 14,110,000
Montgomery County IDA
400 (Kinder Care Project)
Series D VRDN
10/01/00 (e).............. 3.65 400,000
Philadelphia County IDA
8,840 (Cliveden Maplewood Project)
Series 99 VRDN
1/01/24 (e) .............. 3.60 8,840,000
Pottsville Hospital Authority
4,860 (Charity Obligation Group)
Series 97F VRDN
11/01/19 (e).............. 3.60 4,860,000
Venango IDR
285 (Penzoil Co. Project)
Series 82A VRDN
12/01/12 (e).............. 3.80 285,000
--------------
54,980,000
--------------
SOUTH CAROLINA-3.3%
Berkeley County IDR
5,400 (Nucor Corp. Project)
Series 97 AMT VRDN
4/01/30 (e) .............. 3.55 5,400,000
10,700 Series 98 AMT VRDN
4/01/31 (e) .............. 3.55 10,700,000
--------------
16,100,000
--------------
TENNESSEE-1.7%
Knox Health Educational
& Housing Board
8,000 (Tha Solutions Group,
Inc. Project)
Series 99 VRDN
5/01/29 (e) .............. 3.60 8,000,000
--------------
TEXAS-6.8%
Brazos River
(Dow Chemical Co. Project)
2,000 Series 96 AMT VRDN
4/01/26 (e) .............. 3.65 2,000,000
3,200 Series 99 AMT VRDN
4/01/29 (e) .............. 3.65 3,200,000
Camp County
Environmental Facilities
3,000 (Pilgrims Pride Project)
Series 99 AMT VRDN
7/01/29 (e) .............. 3.55 3,000,000
Grayson County IDR
7,000 (Aluminum Co. of
America) VRDN
12/01/02 (e).............. 3.65 7,000,000
Metropolitan Higher
Education Authority
7,000 (University of Dallas)
Series 99 VRDN
5/01/19 (e) .............. 3.65 7,000,000
Texas State TRAN
10,400 Series 99A
8/31/00 .................. 3.71 10,465,953
--------------
32,665,953
--------------
UTAH-1.9%
Utah HFA
4,150 (Single Family Mortgage)
Series 99-1 VRDN
7/01/16 (e) .............. 3.55 4,150,000
5,100 Series 99-2 AMT VRDN
7/01/32 (e) .............. 3.65 5,100,000
--------------
9,250,000
--------------
VERMONT-3.4%
Vermont HEFA
8,217 (Capital Asset
Financing Program)
Series 97-1 VRDN
6/01/22 (e) .............. 3.50 8,217,000
7,960 Series 97-2 VRDN
6/01/27 (e) .............. 3.50 7,960,000
--------------
16,177,000
--------------
VIRGINIA-0.7%
Henry County IDA
2,000 (Amfibe, Inc. Project)
Series 98 AMT VRDN
1/01/13 (e) .............. 3.70 2,000,000
10
<PAGE>
STATEMENT OF NET ASSETS
(continued) Alliance Institutional Reserves - Tax-Free Portfolio
================================================================================
Principal
Amount
(000) Security(d) Yield Value
- --------------------------------------------------------------------------------
King George County
Electric Revenue
$ 1,300 (Birchwood Power Project)
Series 96 AMT VRDN
4/01/26 (e) .............. 3.60% $ 1,300,000
--------------
3,300,000
--------------
WASHINGTON-4.6%
Port of Port Angeles IDR
4,000 (Daishowa America Project)
Series 92B AMT VRDN
8/01/07 (e) .............. 3.65 4,000,000
Washington State Public
Power Supply
17,350 (Nuclear Project Number 3)
Series B Pre-refunded
7/01/00 .................. 3.80 18,103,961
--------------
22,103,961
--------------
WEST VIRGINIA-0.3%
Keyser IDR
1,650 (Keyser Associates
Project) VRDN
7/01/14 (e) .............. 3.60 1,650,000
--------------
WISCONSIN-2.3%
Manitowoc IDR
1,618 (Jagemann Stamping Co.)
Series 98 AMT VRDN
4/01/11 (e) .............. 3.65 1,618,000
Milwaukee IDR
7,675 (Goodwill Industries)
Series 99 VRDN
7/01/19 (e) .............. 3.55 7,675,000
Wausau
1,600 (Minnesota Mining &
Manufacturing Co.
Project) VRDN
8/01/17 (e) .............. 3.73 1,600,000
--------------
10,893,000
--------------
Total Municipal Bonds
(amortized cost
$486,849,879)............. 486,849,879
--------------
COMMERCIAL PAPER-1.9%
INDIANA-1.9%
Indiana Health Facility
Finance Authority
9,000 (Ascension Health) Series
99B 2/09/00
(amortized cost
$9,000,000) .............. 3.80 9,000,000
--------------
TOTAL INVESTMENTS-103.1%
(amortized cost
$495,849,879)............. 495,849,879
Other assets less
liabilities-(3.1%)........ (14,960,724)
--------------
NET ASSETS-100%
(offering and redemption
price of $1.00 per share;
236,966,016 Class A
shares; 225,751,587
Class B shares
and 18,255,059 Class C
shares outstanding)....... $ 480,889,155
==============
- --------------------------------------------------------------------------------
See Glossary of Terms on page 17.
See notes to financial statements.
11
<PAGE>
STATEMENT OF NET ASSETS
October 31, 1999 (unaudited) Alliance Institutional Reserves - Trust Portfolio
================================================================================
Principal
Amount
(000) Security Yield Value
- --------------------------------------------------------------------------------
COMMERCIAL PAPER-37.3%
Abbey National Treasury
Services
$ 10,000 11/29/99................ 5.35% $ 9,958,389
American General Corp.
11,000 11/15/99................ 5.31 10,977,285
Asset Securitization
Cooperative Corp. FRN
12,000 2/15/00 (a)............. 5.51 12,000,000
Associates Corp. of
North America
20,000 11/15/99................ 5.35 19,958,389
Australia New Zealand
Delaware
5,000 12/01/99................ 5.35 4,977,708
6,000 12/21/99................ 5.35 5,955,417
Bank of Scotland
9,834 11/29/99................ 5.35 9,793,080
Banque Caisse d'Epargne
L'etat
20,000 11/19/99................ 5.36 19,946,400
Caisse des Depots et
Consignations
30,000 11/01/99................ 5.32 30,000,000
Chase Manhattan Bank
10,000 2/09/00................. 5.65 9,843,055
Cregem North America,
Inc.
6,000 12/22/99................ 5.35 5,954,525
Ford Motor Credit Co.
FRN
11,000 3/08/00................. 5.52 11,000,000
General Motors
Acceptance Corp.
11,000 11/01/99................ 5.32 11,000,000
Halifax PLC
11,000 12/23/99................ 5.35 10,914,994
HVB Finance, Inc.
9,000 12/15/99................ 5.30 8,941,700
ING Insurance
Holdings, Inc.
10,872 12/16/99................ 5.39 10,798,750
Koch Industries
30,000 11/01/99................ 5.34 30,000,000
Santander Finance
5,000 12/15/99................ 5.35 4,967,306
Societe Generale NA,
Inc.
14,000 12/01/99................ 5.36 13,937,467
Vodafone AirTouch PLC
4,000 11/23/99................ 5.35 3,986,922
--------------
Total Commercial Paper
(amortized cost
$244,911,387)........... 244,911,387
--------------
CERTIFICATES OF
DEPOSIT-23.9%
Bank of Nova Scotia
15,000 5.37%, 11/10/99......... 5.37 15,000,000
Barclays Bank PLC FRN
10,000 5.41%, 6/14/00.......... 5.47 9,997,006
Bayerische Landesbank
FRN
18,000 5.39%, 3/30/00.......... 5.45 17,995,639
Deutsche Bank
10,000 5.44%, 6/01/00.......... 5.49 9,997,198
3,000 5.58%, 6/12/00.......... 5.61 2,999,470
Landesbank-Hessen-
Thueringen
5,000 5.22%, 2/29/00.......... 5.24 4,999,605
National Westminster
Bank
7,000 5.38%, 4/17/00 FRN...... 5.44 6,998,194
5,000 5.67%, 7/05/00.......... 5.71 4,998,704
Nordeutsche
Landesbank
5,000 5.26%, 5/18/00.......... 5.30 4,998,951
Royal Bank of Canada
20,000 5.86%, 8/09/00.......... 5.90 19,994,088
Southtrust Bank
National Associates
9,000 5.42%, 11/22/99......... 5.42 9,000,000
Toronto Dominion Bank
5,000 5.07%, 2/17/00.......... 5.10 4,999,501
5,000 5.30%, 3/06/00.......... 5.33 4,999,419
UBS Finance Delaware
5,000 5.16%, 2/28/00.......... 5.19 4,999,529
10,000 5.22%, 5/10/00.......... 5.26 9,997,986
5,000 5.34%, 5/30/00.......... 5.39 4,998,611
5,000 5.36%, 5/30/00.......... 5.61 4,992,610
Unibank
11,000 5.43%, 12/22/99......... 5.42 11,000,152
Wachovia Bank NA
4,500 5.95%, 9/11/00.......... 5.95 4,500,000
--------------
Total Certificates of
Deposit
(amortized cost
$157,466,663)........... 157,466,663
--------------
CORPORATE
OBLIGATIONS-18.1%
Allstate Life Insurance
Funding Agreement FRN
5,000 5.45%, 2/29/00 (b)...... 5.45 5,000,000
Beta Finance, Inc. FRN
12,000 6.10%, 9/15/00 (a)...... 6.10 12,000,000
Centauri Corp. USA
FRN
11,000 6.10%, 9/08/00 (a)...... 6.10 11,000,000
Dorada Finance, Inc.
MTN
12,000 6.02%, 9/15/00 (a)...... 6.02 12,000,000
Hartford Life Insurance
Co. FRN
10,000 5.40%, 3/16/00.......... 5.40 10,000,000
Metlife Funding
Agreement FRN
11,000 5.63%, 10/01/00......... 5.63 11,000,000
12
<PAGE>
STATEMENT OF NET ASSETS
(continued) Alliance Institutional Reserves - Trust Portfolio
================================================================================
Principal
Amount
(000) Security Yield Value
- --------------------------------------------------------------------------------
Prudential Insurance Co.
of America Funding
Agreement FRN
$ 4,000 5.41%, 11/30/00......... 5.41% $ 4,000,000
Sigma Finance, Inc. FRN
10,000 5.41%, 6/30/00 (a)...... 5.41 10,000,000
12,000 5.53%, 6/29/00 (a)...... 5.53 12,000,000
Toyota Motor Credit
Corp. FRN
10,000 6.03%, 9/21/00.......... 6.03 10,000,000
Travelers Life Funding
Agreement FRN
5,000 5.39%, 4/14/00.......... 5.39 5,000,000
5,000 5.46%, 7/21/00 (b)...... 5.46 5,000,000
Variable Funding Capital
Corp. FRN
12,000 5.51%, 3/15/00 (a)...... 5.51 12,000,000
--------------
Total Corporate
Obligations
(amortized cost
$119,000,000)........... 119,000,000
--------------
U.S. GOVERNMENT &
AGENCY
OBLIGATIONS-9.6%
Federal Home Loan
Bank FRN
10,000 5.38%, 10/16/00......... 5.49 9,990,209
Federal National
Mortgage Association
MTN
9,000 5.85%, 10/05/00......... 5.90 8,995,924
Student Loan Marketing
Association FRN
3,000 5.82%, 11/24/99......... 5.85 2,999,943
15,000 5.85%, 2/04/00.......... 5.87 14,999,236
20,000 5.85%, 10/04/00......... 5.90 19,990,970
6,000 5.90%, 11/09/99......... 5.95 5,999,923
--------------
Total U.S. Government &
Agency Obligations
(amortized cost
$62,976,205)............ 62,976,205
--------------
BANK OBLIGATIONS-6.4%
American Express
Centurion Bank FRN
20,000 5.50%, 4/14/00.......... 5.50 20,000,000
10,000 5.55%, 5/04/00.......... 5.55 10,000,000
FCC National Bank
12,000 5.89%, 3/15/00.......... 5.89 12,000,000
--------------
Total Bank Obligations
(amortized cost
$42,000,000)............ 42,000,000
--------------
PROMISSORY NOTES-3.3%
Goldman Sachs Group LP
12,000 5.37%, 2/01/00 (a)...... 5.37 12,000,000
10,000 5.46%, 11/19/99 (a)..... 5.46 10,000,000
--------------
Total Promissory Notes
(amortized cost
$22,000,000)............ 22,000,000
--------------
TIME DEPOSIT-0.8%
Dresdner Bank
5,000 5.34%, 11/01/99
(amortized cost
$5,000,000) ............ 5.34 5,000,000
--------------
TOTAL INVESTMENTS-99.4%
(amortized cost
$653,354,255)........... 653,354,255
Other assets less
liabilities-0.6%........ 4,042,523
--------------
NET ASSETS-100%
(offering and redemption
price of $1.00 per share;
657,437,403 shares
outstanding)............ $ 657,396,778
==============
- --------------------------------------------------------------------------------
See Glossary of Terms on page 17.
See notes to financial statements.
13
<PAGE>
STATEMENT OF NET ASSETS Alliance Institutional Reserves -
October 31, 1999 (unaudited) Treasury Portfolio
================================================================================
Principal
Amount
(000) Security Yield Value
- --------------------------------------------------------------------------------
U.S. GOVERNMENT
OBLIGATIONS-26.4%
U.S. TREASURY
BILLS-21.0%
$ 3,000 11/04/99.................... 4.47% $ 2,998,887
12,000 11/04/99.................... 4.52 11,995,490
8,000 11/04/99.................... 4.54 7,996,980
45,000 11/12/99.................... 4.54 44,937,926
--------------
67,929,283
--------------
U.S. TREASURY
NOTES-5.4%
5,000 11/15/99.................... 4.63 5,001,962
5,000 11/30/99.................... 4.68 5,003,064
3,000 11/30/99.................... 4.74 3,006,630
2,500 3/31/00..................... 5.20 2,502,036
1,000 5/31/00..................... 5.22 1,001,154
1,000 6/30/00..................... 5.29 1,003,381
--------------
17,518,227
--------------
Total U.S. Government
Obligations
(amortized cost
$85,447,510)................ 85,447,510
--------------
REPURCHASE
AGREEMENTS-73.3%
ABN AMRO
15,000 5.14%, dated 10/27/99,
due 11/10/99 in the
amount of $15,029,983
(cost $15,000,000;
collateralized by
$14,128,000 U.S. Treasury
Bond, 7.25%, 5/15/16,
value $15,366,503) (c)...... 5.14 15,000,000
Barclays de Zoete Wedd
Securities, Inc.
15,000 5.22%, dated 10/29/99,
due 11/01/99 in the
amount of $15,006,525
(cost $15,000,000;
collateralized by
$13,355,000 U.S. Treasury
Bond, 7.50%, 11/15/24,
value $15,506,044).......... 5.22 15,000,000
Bear Stearns Co.
15,000 5.10%, dated 10/26/99,
due 11/01/99 in the
amount of $15,012,750
(cost $15,000,000;
collateralized by
$12,300,000 U.S. Treasury
Bond, 8.875%, 2/15/19,
value $15,317,595).......... 5.10 15,000,000
Chase Securities, Inc.
15,000 5.20%, dated 10/29/99,
due 11/01/99 in the
amount of $15,006,500
(cost $15,000,000;
collateralized by
$14,135,000 U.S. Treasury
Note, 7.50%, 11/15/01,
value $15,431,300).......... 5.20 15,000,000
CS First Boston Corp.
15,000 5.10%, dated 10/26/99,
due 11/02/99 in the
amount of $15,014,875
(cost $15,000,000;
collateralized by
$10,775,000 U.S. Treasury
Bond, 11.75%, 11/15/14,
value $15,314,188) (c)...... 5.10 15,000,000
Deutsche Bank
15,000 5.16%, dated 10/29/99,
due 11/01/99 in the
amount of $15,006,450
(cost $15,000,000;
collateralized by
$15,000,000 U.S. Treasury
Note, 6.625%, 3/31/02,
value $15,331,004).......... 5.16 15,000,000
Dresdner Bank AG
15,000 5.20% dated 10/29/99,
due 11/01/99 in the
amount of $15,006,500
(cost $15,000,000;
collateralized by
$14,378,000 U.S. Treasury
Note, 7.50%, 11/15/01,
value $15,323,412).......... 5.20 15,000,000
First Chicago Corp.
15,000 5.20%, dated 10/29/99,
due 11/01/99 in the
amount of $15,006,500
(cost $15,000,000;
collateralized by
$15,158,000 U.S. Treasury
Note, 5.625%, 12/31/02,
value $15,315,192).......... 5.20 15,000,000
Goldman Sachs & Co.
15,000 5.19%, dated 10/29/99,
due 11/05/99 in the
amount of $15,015,138
(cost $15,000,000;
collateralized by
$11,905,000 U.S. Treasury
Bond, 8.75%, 5/15/20,
value $15,309,830) (c)...... 5.19 15,000,000
14
<PAGE>
STATEMENT OF NET ASSETS
(continued) Alliance Institutional Reserves - Treasury Portfolio
================================================================================
Principal
Amount
(000) Security Yield Value
- --------------------------------------------------------------------------------
Greenwich Funding Corp.
$ 15,000 5.20%, dated 10/29/99,
due 11/01/99 in the
amount of $15,006,500
(cost $15,000,000;
collateralized by
$15,268,000 U.S. Treasury
Note, 4.625%, 12/31/00,
value $15,321,262).......... 5.20% $ 15,000,000
Morgan (J.P.) & Co.
15,000 5.20%, dated 10/29/99,
due 11/01/99 in the
amount of $15,006,500
(cost $15,000,000;
collateralized by
$12,191,000 U.S. Treasury
Bond, 8.875%, 8/15/17,
value $15,346,870).......... 5.20 15,000,000
Morgan Stanley Group, Inc.
15,000 5.16%, dated 10/29/99,
due 11/01/99 in the
amount of $15,006,450
(cost $15,000,000;
collateralized by
$12,100,000
U.S. Treasury Bond,
8.75%, 8/15/20,
value $15,301,074).......... 5.16 15,000,000
Nationsbanc Montgomery
Securities
15,000 5.20%, dated 10/28/99,
due 11/05/99 in the
amount of $15,017,333
(cost $15,000,000;
collateralized by
$13,400,000 U.S. Treasury
Bond, 9.125%, 5/15/09,
value $15,381,597) (c)...... 5.20 15,000,000
Salomon Smith Barney, Inc.
15,000 5.17%, dated 10/27/99,
due 11/03/99 in the
amount of $15,015,079
(cost $15,000,000;
collateralized by
$14,085,000 U.S. Treasury
Bond, 7.25%, 5/15/16,
value $15,329,111) (c)...... 5.17 15,000,000
State Street Bank and
Trust Co.
12,600 5.16%, dated 10/29/99,
due 11/01/99 in the
amount of $12,605,418
(cost $12,600,000;
collateralized by
$10,850,000 U.S. Treasury
Bond, 8.125%, 8/15/19,
value $12,857,250).......... 5.16 12,600,000
Warburg Securities
15,000 5.21%, dated 10/29/99,
due 11/01/99 in the
amount of $15,006,513
(cost $15,000,000;
collateralized by
$10,672,000 U.S. Treasury
Bond, 11.75%, 11/15/14,
value $15,394,795).......... 5.21 15,000,000
--------------
Total Repurchase
Agreements
(amortized cost
$237,600,000)............... 237,600,000
--------------
TOTAL INVESTMENTS-99.7%
(amortized cost
$323,047,510)............... 323,047,510
Other assets less
liabilities-0.3%............ 900,633
--------------
NET ASSETS-100%
(offering and redemption
price of $1.00 per share;
4,068,063 Class A shares;
95,189,238 Class B shares
and 224,694,539 Class C
shares outstanding)......... $ 323,948,143
==============
- --------------------------------------------------------------------------------
See Glossary of Terms on page 17.
See notes to financial statements.
15
<PAGE>
Alliance Institutional Reserves
================================================================================
(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, 1999, these securities amounted to $764,335,145, representing
24.1% of net assets on the Prime Portfolio, and $103,000,000, representing
15.7% of net assets on the Trust Portfolio.
(b) Funding agreements are illiquid securities subject to restrictions as to
resale. These securities amounted to $50,000,000, representing 1.6% of net
assets on the Prime Portfolio, and $10,000,000, representing 1.5% of net
assets on the Trust Portfolio (see Note A to the financial statements).
(c) Repurchase agreement which is terminable within 7 days.
(d) All securities either mature or their interest rate changes in one year or
less.
(e) Variable Rate Demand Notes (VRDN) are instruments whose interest rates
change on a specified date (such as a coupon date or interest payment
date) or whose interest rates vary with changes in a designated base rate
(such as the prime interest rate). These instruments are payable on demand
and are secured by letters of credit or other credit support agreements
from major banks. Periodic Put Bonds (PPB) are payable on demand
quarterly, semi-annually or annually and their interest rates change less
frequently than rates on Variable Rate Demand Notes.
Glossary of Terms:
AMT Alternative Minimum Tax
BAN Bond Anticipation Note
FHLB Federal Home Loan Bank
FHLBDN Federal Home Loan Bank Discount Note
FHLMC Federal Home Loan Mortgage Corporation
FNMA Federal National Mortgage Association
FRN Floating Rate Note
GO General Obligation
HEFA Health & Educational Facility Authority
HFA Housing Finance Agency/Authority
IDA Industrial Development Authority
IDB Industrial Development Bond
IDR Industrial Development Revenue
MFHR Multi-Family Housing Revenue
MTN Medium Term Note
PCR Pollution Control Revenue
SFMR Single Family Mortgage Revenue
TRAN Tax & Revenue Anticipation Note
See notes to financial statements.
16
<PAGE>
STATEMENT OF OPERATIONS
Six Months Ended October 31, 1999 (unaudited) Alliance Institutional Reserves
================================================================================
<TABLE>
<CAPTION>
PRIME GOVERNMENT TAX-FREE TRUST TREASURY
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------- ------------- ------------- ------------- --------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Interest.......................... $ 73,932,629 $ 15,584,339 $ 8,740,826 $ 19,030,421 $ 2,632,712
------------- ------------- ------------- ------------- --------------
EXPENSES
Advisory fee (Note B)............. 2,809,048 604,502 512,907 1,625,494 104,836
Distribution fee - Class B........ 430,909 106,473 117,066 -0- 26,433
Distribution fee - Class C........ 54,813 11,370 26,854 -0- 60,237
Registration...................... 172,898 71,134 119,680 142,908 49,423
Custodian......................... 163,908 81,850 71,959 82,049 51,643
Audit and legal................... 50,994 12,638 15,173 13,560 5,338
Transfer agency................... 15,850 16,837 11,387 13,560 8,140
Printing.......................... 8,412 1,350 831 6,074 3,501
Directors' fees................... 3,671 2,331 2,391 2,235 2,547
Miscellaneous..................... 12,555 7,421 9,268 5,906 1,135
------------- ------------- ------------- ------------- --------------
Total expenses.................... 3,723,058 915,906 887,516 1,891,786 313,233
Less: expense reimbursement....... (428,288) (193,561) (230,727) (85,682) (121,722)
------------- ------------- ------------- ------------- --------------
Net expenses...................... 3,294,770 722,345 656,789 1,806,104 191,511
------------- ------------- ------------- ------------- --------------
Net investment income............. 70,637,859 14,861,994 8,084,037 17,224,317 2,441,201
------------- ------------- ------------- ------------- --------------
REALIZED LOSS ON INVESTMENTS
Net realized loss on investment
transactions................... (2,435) (985) -0- (861) (1,508)
------------- ------------- ------------- ------------- --------------
NET INCREASE IN NET ASSETS
FROM OPERATIONS................... $ 70,635,424 $ 14,861,009 $ 8,084,037 $ 17,223,456 $ 2,439,693
============= ============= ============= ============= ==============
</TABLE>
- --------------------------------------------------------------------------------
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, 1999 Year Ended October 31, 1999 Year Ended
(unaudited) April 30, 1999 (unaudited) April 30, 1999
------------------- ------------------- ------------------- -------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS FROM OPERATIONS
Net investment income................ $ 70,637,859 $ 110,356,958 $ 14,861,994 $ 21,239,747
Net realized gain (loss) on
investment transactions.............. (2,435) 46,911 (985) 189
----------------- ----------------- ----------------- -----------------
Net increase in net assets
from operations...................... 70,635,424 110,403,869 14,861,009 21,239,936
DIVIDENDS AND DISTRIBUTIONS
TO SHAREHOLDERS FROM:
Net investment income
Class A........................... (48,055,471) (99,429,944) (9,467,627) (18,006,917)
Class B........................... (21,523,539) (9,997,982) (5,178,062) (3,119,916)
Class C........................... (1,058,849) (929,032) (216,305) (112,914)
CAPITAL STOCK TRANSACTIONS
Net increase......................... 930,732,705 480,524,899 102,449,265 259,233,401
----------------- ----------------- ----------------- -----------------
Total increase....................... 930,730,270 480,571,810 102,448,280 259,233,590
NET ASSETS
Beginning of year.................... 2,245,264,668 1,764,692,858 533,694,965 274,461,375
----------------- ----------------- ----------------- -----------------
End of period........................ $ 3,175,994,938 $ 2,245,264,668 $ 636,143,245 $ 533,694,965
================= ================= ================= =================
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements.
18
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
(continued) Alliance Institutional Reserves
================================================================================
<TABLE>
<CAPTION>
TAX-FREE PORTFOLIO TRUST PORTFOLIO
----------------------------------------- -----------------------------------------
Six Months Ended Six Months Ended
October 31, 1999 Year Ended October 31, 1999 Year Ended
(unaudited) April 30, 1999 (unaudited) April 30, 1999
------------------- ------------------- ------------------- -------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS FROM OPERATIONS
Net investment income................ $ 8,084,037 $ 12,818,592 $ 17,224,317 $ 23,966,420
Net realized gain (loss) on
investment transactions.............. -0- -0- (861) 3,996
----------------- ----------------- ----------------- -----------------
Net increase in net assets
from operations...................... 8,084,037 12,818,592 17,223,456 23,970,416
DIVIDENDS AND DISTRIBUTIONS
TO SHAREHOLDERS FROM:
Net investment income
Class A........................... (4,132,405) (10,300,293) (17,224,317) (23,966,420)
Class B........................... (3,635,257) (2,487,651) -0- -0-
Class C........................... (316,375) (30,648) -0- -0-
CAPITAL STOCK TRANSACTIONS
Net increase (decrease).............. 29,919,423 157,206,086 (137,631,931) 404,533,541
----------------- ----------------- ----------------- -----------------
Total increase (decrease)............ 29,919,423 157,206,086 (137,632,792) 404,537,537
NET ASSETS
Beginning of year.................... 450,969,732 293,763,646 795,029,570 390,492,033
----------------- ----------------- ----------------- -----------------
End of period........................ $ 480,889,155 $ 450,969,732 $ 657,396,778 $ 795,029,570
================= ================= ================= =================
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements.
19
<PAGE>
Alliance Institutional Reserves
================================================================================
TREASURY PORTFOLIO
--------------------------------------
Six Months Ended
October 31, 1999 Period Ended
(unaudited) April 30, 1999 (a)
---------------- ------------------
INCREASE (DECREASE) IN
NET ASSETS FROM OPERATIONS
Net investment income ......... $ 2,441,201 $ 1,134,136
Net realized loss on
investment transactions ....... (1,508) (2,192)
------------- -------------
Net increase in net assets
from operations ............... 2,439,693 1,131,944
DIVIDENDS AND DISTRIBUTIONS
TO SHAREHOLDERS FROM:
Net investment income
Class A .................... (88,913) (333,222)
Class B .................... (1,243,186) (178,256)
Class C .................... (1,109,102) (622,809)
CAPITAL STOCK TRANSACTIONS
Net increase .................. 271,917,314 52,034,680
------------- -------------
Total increase ................ 271,915,806 52,032,337
NET ASSETS
Beginning of period ........... 52,032,337 -0-
------------- -------------
End of period ................. $ 323,948,143 $ 52,032,337
============= =============
- --------------------------------------------------------------------------------
(a) Commencement of operations, June 29, 1998.
See notes to financial statements.
20
<PAGE>
NOTES TO FINANCIAL STATEMENTS
October 31, 1999 (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. 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, 1999 are exempt from federal income taxes. However,
certain shareholders may be subject to the alternative minimum tax.
5. Repurchase Agreements
It is the Fund's policy to take possession of securities as collateral under
repurchase agreements and to determine on a daily basis that the value of such
securities are sufficient to cover the value of the repurchase agreements.
- --------------------------------------------------------------------------------
NOTE B: Advisory Fee and Transactions with an Affiliate of the Adviser
Under the terms of an investment advisory agreement, the Fund pays Alliance
Capital Management L.P., (the "Adviser"), an advisory fee at the annual rate of
.20% of average daily net assets for the Prime, Government, Tax-Free and
Treasury Portfolios and .45% of average daily net assets for the Trust
Portfolio. For the six months ended October 31, 1999, the Adviser has agreed to
reimburse each of the Portfolios to the extent necessary to limit total
operating expenses on an annual basis to a certain limit (excluding taxes,
brokerage, interest and, where permitted, extraordinary expenses). For the six
months ended October 31, 1999, reimbursement was $428,288, $193,561, $230,727,
$85,682 and $121,722 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, Trust and Treasury Portfolios was $9,000
per Portfolio, for the six months ended October 31, 1999.
For the six months ended October 31, 1999, the Fund's expenses were reduced by
$488, $147, $794 and $207 for the Prime, Government, Trust and Treasury
Portfolios, respectively under an expense offset arrangement with Alliance Fund
Services.
21
<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 distribution and servicing fees 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 are no distribution
and servicing fees on the Class A shares. Such fees are accrued daily and paid
monthly. The Agreement provides that the Distributor will use such payments in
their entirety for distribution assistance and promotional activities. The
Agreement also provides that the Adviser may use its own resources to finance
the distribution of the Fund's shares.
- --------------------------------------------------------------------------------
NOTE D: Investment Transactions
At October 31, 1999, the cost of investments for federal income tax purposes was
the same as the cost for financial reporting purposes for all Portfolios. For
federal income tax purposes, the Prime Portfolio had a capital loss carryforward
available to offset future gains at April 30, 1999 of $136,809, of which $71,055
expires in 2003, $40,007 in 2004 and $25,747 in the year 2005; the Government
Portfolio had a capital loss carryforward of $130,160, of which $151 expires in
2000, $9,174 in 2001, $51,091 in 2002, $23,230 in 2003, $30,512 in 2004 and
$16,002 in the year 2005; the Tax-Free Portfolio had a capital loss carryforward
of $83,495, of which $6,110 expires in 2002, $76,925 in 2004, $400 in 2005 and
$60 in the year 2006; the Trust Portfolio had a capital loss carryforward of
$39,764, of which $2,919 expires in 2003, $30,219 in 2004, $2,251 in 2005 and
$4,375 in the year 2006; Treasury Portfolio had a capital loss carryforward of
$2,192, which expires in the year 2007.
- --------------------------------------------------------------------------------
NOTE E: Capital Stock
There are 65,000,000,000 shares of $.01 par value capital stock authorized. At
October 31, 1999, capital paid-in aggregated $3,176,134,182 on Prime Portfolio,
$636,274,390 on Government Portfolio, $480,972,662 on Tax-Free Portfolio,
$657,437,403 on Trust Portfolio and $323,951,840 on Treasury Portfolio.
Transactions, all at $1.00 per share, were as follows:
<TABLE>
<CAPTION>
Prime Portfolio
--------------------------------------
Six Months Ended Year Ended
October 31, 1999 April 30,
(unaudited) 1999
---------------- ---------------
<S> <C> <C>
Class A
Shares sold ............................... 8,807,177,022 23,622,009,804
Shares issued on reinvestments of dividends 48,055,471 99,429,944
Shares redeemed ........................... (8,643,248,332) (23,815,300,171)
------------- --------------
Net increase (decrease) ................... 211,984,161 (93,860,423)
============= ==============
</TABLE>
22
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED) Alliance Institutional Reserves
================================================================================
<TABLE>
<CAPTION>
Prime Portfolio
--------------------------------------
Six Months Ended August 14, 1998*
October 31, 1999 to
(unaudited) April 30, 1999
---------------- ---------------
<S> <C> <C>
Class B
Shares sold................................ 3,857,989,862 2,348,283,090
Shares issued on reinvestments of dividends 21,523,539 9,997,982
Shares redeemed............................ (3,179,548,591) (1,822,214,093)
------------- -------------
Net increase............................... 699,964,810 536,066,979
============= =============
<CAPTION>
Six Months Ended July 13, 1998*
October 31, 1999 to
(unaudited) April 30, 1999
---------------- ---------------
<S> <C> <C>
Class C
Shares sold................................ 74,636,010 103,018,527
Shares issued on reinvestments of dividends 1,058,849 929,032
Shares redeemed............................ (56,911,125) (65,629,216)
------------- -------------
Net increase............................... 18,783,734 38,318,343
============= =============
<CAPTION>
Government Portfolio
--------------------------------------
Six Months Ended Year Ended
October 31, 1999 April 30,
(unaudited) 1999
---------------- ---------------
<S> <C> <C>
Class A
Shares sold................................ 1,468,458,209 2,628,953,985
Shares issued on reinvestments of dividends 9,467,627 18,006,917
Shares redeemed............................ (1,411,415,272) (2,527,052,342)
------------- -------------
Net increase............................... 66,510,564 119,908,560
============= =============
<CAPTION>
Six Months Ended August 7, 1998*
October 31, 1999 to
(unaudited) April 30, 1999
---------------- ---------------
<S> <C> <C>
Class B
Shares sold................................ 586,788,909 333,938,088
Shares issued on reinvestments of dividends 5,178,062 3,119,916
Shares redeemed............................ (569,744,984) (200,956,657)
------------- -------------
Net increase............................... 22,221,987 136,101,347
============= =============
<CAPTION>
Six Months Ended October 21, 1998*
October 31, 1999 to
(unaudited) April 30, 1999
---------------- ---------------
<S> <C> <C>
Class C
Shares sold................................ 35,203,800 17,279,127
Shares issued on reinvestments of dividends 216,305 112,914
Shares redeemed............................ (21,703,391) (14,168,547)
------------- -------------
Net increase............................... 13,716,714 3,223,494
============= =============
</TABLE>
- --------------------------------------------------------------------------------
* Commencement of distribution.
23
<PAGE>
Alliance Institutional Reserves
================================================================================
<TABLE>
<CAPTION>
Tax-Free Portfolio
-------------------------------------
Six Months Ended Year Ended
October 31, 1999 April 30,
(unaudited) 1999
---------------- --------------
<S> <C> <C>
Class A
Shares sold ............................... 694,362,588 2,015,274,013
Shares issued on reinvestments of dividends 4,132,405 10,300,293
Shares redeemed ........................... (717,625,839) (2,063,324,585)
-------------- --------------
Net decrease .............................. (19,130,846) (37,750,279)
============== ==============
<CAPTION>
Six Months Ended August 17, 1998*
October 31, 1999 to
(unaudited) April 30, 1999
---------------- ---------------
<S> <C> <C>
Class B
Shares sold ............................... 367,980,278 618,511,568
Shares issued on reinvestments of dividends 3,635,257 2,487,651
Shares redeemed ........................... (338,594,166) (428,269,001)
-------------- --------------
Net increase .............................. 33,021,369 192,730,218
============== ==============
<CAPTION>
Six Months Ended September 8, 1998*
October 31, 1999 to
(unaudited) April 30, 1999
---------------- ----------------
<S> <C> <C>
Class C
Shares sold ............................... 122,829,375 10,344,376
Shares issued on reinvestments of dividends 316,375 30,648
Shares redeemed ........................... (107,116,850) (8,148,877)
-------------- --------------
Net increase .............................. 16,028,900 2,226,147
============== ==============
<CAPTION>
Trust Portfolio
-------------------------------------
Six Months Ended Year Ended
October 31, 1999 April 30,
(unaudited) 1999
---------------- ----------------
<S> <C> <C>
Class A
Shares sold ............................... 1,329,631,799 2,122,594,704
Shares issued on reinvestments of dividends 17,224,317 23,966,420
Shares redeemed ........................... (1,484,488,047) (1,742,027,583)
-------------- --------------
Net increase (decrease) ................... (137,631,931) 404,533,541
============== ==============
<CAPTION>
Treasury Portfolio
-------------------------------------
Six Months Ended June 29, 1998*
October 31, 1999 to
(unaudited) April 30, 1999
---------------- ----------------
<S> <C> <C>
Class A
Shares sold ............................... 4,798,988 19,859,145
Shares issued on reinvestments of dividends 88,913 333,222
Shares redeemed ........................... (4,887,323) (16,124,882)
-------------- --------------
Net increase .............................. 578 4,067,485
============== ==============
</TABLE>
- --------------------------------------------------------------------------------
* Commencement of distribution.
24
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued) Alliance Institutional Reserves
================================================================================
<TABLE>
<CAPTION>
Treasury Portfolio
--------------------------------------
Six Months Ended December 31, 1998*
October 31, 1999 to
(unaudited) April 30, 1999
---------------- -----------------
<S> <C> <C>
Class B
Shares sold ............................... 92,135,534 40,092,172
Shares issued on reinvestments of dividends 1,243,186 178,256
Shares redeemed ........................... (13,075,094) (25,384,662)
-------------- --------------
Net increase .............................. 80,303,626 14,885,766
============== ==============
<CAPTION>
Six Months Ended October 15, 1998*
October 31, 1999 to
(unaudited) April 30, 1999
---------------- -----------------
<S> <C> <C>
Class C
Shares sold ............................... 316,992,769 131,076,991
Shares issued on reinvestments of dividends 1,109,102 622,809
Shares redeemed ........................... (126,488,761) (98,618,371)
-------------- --------------
Net increase .............................. 191,613,110 33,081,429
============== ==============
</TABLE>
- --------------------------------------------------------------------------------
* Commencement of distribution.
25
<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,
1999 -----------------------------------------------------------------
(unaudited) 1999 1998 1997 1996 1995
----------- ------- ------- ------- ------ -------
<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)............... .0254 .0518 .0552 .0530 .0560 .0502
------- ------- ------- ------- ------ -------
Less: Dividends
Dividends from net investment income.... (.0254) (.0518) (.0552) (.0530) (.0560) (.0502)
------- ------- ------- ------- ------ -------
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)...................... 2.57% 5.31% 5.68% 5.44% 5.76% 5.15%
Ratios/Supplemental Data
Net assets, end of period (in millions). $1,883 $1,671 $1,765 $867 $493 $198
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% .24% .29% .32% .36%
Net investment income (a)............ 5.05%(c) 5.16% 5.52% 5.31% 5.54% 5.24%
<CAPTION>
Prime Portfolio
-------------------------
CLASS B
-------------------------
Six Months August 14,
Ended 1998(d)
October 31, to
1999 April 30,
(unaudited) 1999
----------- ----------
<S> <C> <C>
Net asset value, beginning of period.............................................................. $ 1.00 $ 1.00
------ -------
Income From Investment Operations
Net investment income (a)......................................................................... .0249 .0358
------ -------
Less: Dividends
Dividends from net investment income.............................................................. (.0249) (.0358)
------ -------
Net asset value, end of period.................................................................... $ 1.00 $ 1.00
====== =======
Total Return
Total investment return based on net
asset value (b)................................................................................ 2.52% 2.59%
Ratios/Supplemental Data
Net assets, end of period (in millions)........................................................... $1,236 $536
Ratios to average net assets of:
Expenses, net of waivers and
reimbursements (c)........................................................................... .30% .30%
Expenses, before waivers and
reimbursements (c)........................................................................... .33% .36%
Net investment income (a)(c)................................................................... 4.99% 4.82%
</TABLE>
- --------------------------------------------------------------------------------
See footnote summary on page 35.
26
<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
------------------------
Six Months July 13,
Ended 1998(d)
October 31, to
1999 April 30,
(unaudited) 1999
----------- --------
<S> <C> <C>
Net asset value, beginning of period.............................................................. $ 1.00 $ 1.00
------ -------
Income From Investment Operations
Net investment income (a)......................................................................... .0242 .0392
------ -------
Less: Dividends
Dividends from net investment income.............................................................. (.0242) (.0392)
------ -------
Net asset value, end of period.................................................................... $ 1.00 $ 1.00
====== =======
Total Return
Total investment return based on net
asset value (b)................................................................................ 2.45% 3.09%
Ratios/Supplemental Data
Net assets, end of period (in millions)........................................................... $57 $38
Ratios to average net assets of:
Expenses, net of waivers and
reimbursements (c)........................................................................... .45% .45%
Expenses, before waivers and
reimbursements (c)........................................................................... .48% .51%
Net investment income (a)(c)................................................................... 4.83% 4.70%
</TABLE>
- --------------------------------------------------------------------------------
See footnote summary on page 35.
27
<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,
1999 -----------------------------------------------------------------
(unaudited) 1999 1998 1997 1996 1995
----------- ------- ------- ------- ------ -------
<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)............... .0250 .0505 .0543 .0519 .0552 .0493
------- ------- ------- ------- ------ -------
Less: Dividends
Dividends from net investment income.... (.0250) (.0505) (.0543) (.0519) (.0552) (.0493)
------- ------- ------- ------- ------ -------
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)...................... 2.53% 5.18% 5.58% 5.33% 5.67% 5.06%
Ratios/Supplemental Data
Net assets, end of period (in millions). $461 $394 $275 $327 $151 $104
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) .29% .28% .35% .36% .38%
Net investment income (a)............ 4.95%(c) 5.01% 5.43% 5.22% 5.50% 4.94%
<CAPTION>
Government Portfolio
-------------------------
CLASS B
-------------------------
Six Months August 7,
Ended 1998(d)
October 31, to
1999 April 30,
(unaudited) 1999
----------- ---------
<S> <C> <C>
Net asset value, beginning of period.............................................................. $ 1.00 $ 1.00
------ -------
Income From Investment Operations
Net investment income (a)......................................................................... .0245 .0361
------ -------
Less: Dividends
Dividends from net investment income.............................................................. (.0245) (.0361)
------ -------
Net asset value, end of period.................................................................... $ 1.00 $ 1.00
====== =======
Total Return
Total investment return based on net
asset value (b)................................................................................ 2.48% 2.69%
Ratios/Supplemental Data
Net assets, end of period (in millions)........................................................... $158 $136
Ratios to average net assets of:
Expenses, net of waivers and
reimbursements (c)........................................................................... .30% .30%
Expenses, before waivers and
reimbursements (c)........................................................................... .36% .41%
Net investment income (a)(c)................................................................... 4.86% 4.73%
</TABLE>
- --------------------------------------------------------------------------------
See footnote summary on page 35.
28
<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
-------------------------
Six Months October 21,
Ended 1998(d)
October 31, to
1999 April 30,
(unaudited) 1999
----------- ----------
<S> <C> <C>
Net asset value, beginning of period.............................................................. $ 1.00 $ 1.00
------ -------
Income From Investment Operations
Net investment income (a)......................................................................... .0237 .0243
------ -------
Less: Dividends
Dividends from net investment income.............................................................. (.0237) (.0243)
------ -------
Net asset value, end of period.................................................................... $ 1.00 $ 1.00
====== =======
Total Return
Total investment return based on net
asset value (b)................................................................................ 2.40% 1.29%
Ratios/Supplemental Data
Net assets, end of period (in millions)........................................................... $17 $3
Ratios to average net assets of:
Expenses, net of waivers and
reimbursements (c)........................................................................... .45% .45%
Expenses, before waivers and
reimbursements (c)........................................................................... .51% .56%
Net investment income (a)(c)................................................................... 4.76% 4.55%
</TABLE>
- --------------------------------------------------------------------------------
See footnote summary on page 35.
29
<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,
1999 -----------------------------------------------------------------
(unaudited) 1999 1998 1997 1996 1995
----------- ------- ------- ------- ------ -------
<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)............... .0162 .0321 .0363 .0347 .0372 .0326
Net unrealized loss on investments...... -0- -0- -0- -0- -0- (.0048)
------- ------- ------- ------- ------ -------
Net increase in net asset value from
operations........................... .0162 .0321 .0363 .0347 .0372 .0278
------- ------- ------- ------- ------ -------
Less: Dividends
Dividends from net investment income.... (.0162) (.0321) (.0363) (.0347) (.0372) (.0326)
------- ------- ------- ------- ------ -------
Add: Capital Contribution
Capital Contributed by the Adviser...... -0- -0- -0- -0- -0- .0048
------- ------- ------- ------- ------ -------
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)...................... 1.63% 3.26% 3.70% 3.53% 3.79% 3.31%(e)
Ratios/Supplemental Data
Net assets, end of period (in millions). $237 $256 $294 $183 $184 $36
Ratios to average net assets of:
Expenses, net of waivers and
reimbursements..................... .20%(c) .20% .20% .20% .20% .20%
Expenses, before waivers and
reimbursements..................... .29%(c) .28% .28% .33% .48% .76%
Net investment income (a)............ 3.21%(c) 3.22% 3.61% 3.46% 3.73% 3.31%
<CAPTION>
Tax-Free Portfolio
-------------------------
CLASS B
-------------------------
Six Months August 17,
Ended 1998(d)
October 31, to
1999 April 30,
(unaudited) 1999
---------- ----------
<S> <C> <C>
Net asset value, beginning of period.............................................................. $ 1.00 $ 1.00
------ -------
Income From Investment Operations
Net investment income (a)......................................................................... .0157 .0210
------ -------
Less: Dividends
Dividends from net investment income.............................................................. (.0157) (.0210)
------ -------
Net asset value, end of period.................................................................... $ 1.00 $ 1.00
====== =======
Total Return
Total investment return based on net
asset value (b)................................................................................ 1.58% 1.50%
Ratios/Supplemental Data
Net assets, end of period (in millions)........................................................... $226 $193
Ratios to average net assets of:
Expenses, net of waivers and
reimbursements (c)........................................................................... .30% .30%
Expenses, before waivers and
reimbursements (c)........................................................................... .39% .42%
Net investment income (a)(c)................................................................... 3.11% 2.88%
</TABLE>
- --------------------------------------------------------------------------------
See footnote summary on page 35.
30
<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
--------------------------
Six Months September 8,
Ended 1998(d)
October 31, to
1999 April 30,
(unaudited) 1999
----------- -----------
<S> <C> <C>
Net asset value, beginning of period.............................................................. $ 1.00 $ 1.00
------ -------
Income From Investment Operations
Net investment income (a)......................................................................... .0149 .0184
------ -------
Less: Dividends
Dividends from net investment income.............................................................. (.0149) (.0184)
------ -------
Net asset value, end of period.................................................................... $ 1.00 $ 1.00
====== =======
Total Return
Total investment return based on net
asset value (b)................................................................................ 1.50% 1.09%
Ratios/Supplemental Data
Net assets, end of period (in millions)........................................................... $18 $2
Ratios to average net assets of:
Expenses, net of waivers and
reimbursements (c)........................................................................... .45% .45%
Expenses, before waivers and
reimbursements (c)........................................................................... .52% .57%
Net investment income (a)(c)................................................................... 2.95% 2.69%
</TABLE>
- --------------------------------------------------------------------------------
See footnote summary on page 35.
31
<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,
1999 -----------------------------------------------------------------
(unaudited) 1999 1998 1997 1996 1995
---------- ------- ------- ------- ------ -------
<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)............... .0240 .0489 .0523 .0492 .0527 .0479
------- ------- ------- ------- ------ -------
Less: Dividends
Dividends from net investment income.... (.0240) (.0489) (.0523) (.0492) (.0527) (.0479)
------- ------- ------- ------- ------ -------
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)...................... 2.43% 5.01% 5.37% 5.04% 5.41% 4.91%
Ratios/Supplemental Data
Net assets, end of period (in millions). $657 $795 $391 $176 $170 $109
Ratios to average net assets of:
Expenses, net of waivers and
reimbursements..................... .50%(c) .50% .49% .50% .50% .49%
Expenses, before waivers and
reimbursements..................... .52%(c) .55% .54% .57% .60% .75%
Net investment income (a)............ 4.77%(c) 4.85% 5.23% 4.93% 5.28% 5.31%
</TABLE>
- --------------------------------------------------------------------------------
See footnote summary on page 35.
32
<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
-------------------------
Six Months June 29,
Ended 1998(d)
October 31, to
1999 April 30,
(unaudited) 1999
----------- ---------
<S> <C> <C>
Net asset value, beginning of period.............................................................. $ 1.00 $ 1.00
------ -------
Income From Investment Operations
Net investment income (a)......................................................................... .0236 .0401
------ -------
Less: Dividends
Dividends from net investment income.............................................................. (.0236) (.0401)
------ -------
Net asset value, end of period.................................................................... $ 1.00 $ 1.00
====== =======
Total Return
Total investment return based on net
asset value (b)................................................................................ 2.39% 3.43%
Ratios/Supplemental Data
Net assets, end of period (in millions)........................................................... $4 $4
Ratios to average net assets of:
Expenses, net of waivers and
reimbursements (c)........................................................................... .20% .20%
Expenses, before waivers and
reimbursements (c)........................................................................... .84% 1.42%
Net investment income (a)(c)................................................................... 4.70% 4.82%
<CAPTION>
Treasury Portfolio
--------------------------
CLASS B
--------------------------
Six Months December 31,
Ended 1998(d)
October 31, to
1999 April 30,
(unaudited) 1999
----------- ------------
<S> <C> <C>
Net asset value, beginning of period.............................................................. $ 1.00 $ 1.00
------ -------
Income From Investment Operations
Net investment income (a)......................................................................... .0231 .0143
------ -------
Less: Dividends
Dividends from net investment income.............................................................. (.0231) (.0143)
------ -------
Net asset value, end of period.................................................................... $ 1.00 $ 1.00
====== =======
Total Return
Total investment return based on net
asset value (b)................................................................................ 2.34% .48%
Ratios/Supplemental Data
Net assets, end of period (in millions)........................................................... $95 $15
Ratios to average net assets of:
Expenses, net of waivers and
reimbursements (c)........................................................................... .30% .30%
Expenses, before waivers and
reimbursements (c)........................................................................... .56% 1.08%
Net investment income (a)(c)................................................................... 4.70% 4.42%
</TABLE>
- --------------------------------------------------------------------------------
See footnote summary on page 35.
33
<PAGE>
Alliance Institutional Reserves
================================================================================
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
<TABLE>
<CAPTION>
Treasury Portfolio
--------------------------
CLASS C
--------------------------
Six Months October 15,
Ended 1998(d)
October 31, to
1999 April 30,
(unaudited) 1999
----------- -----------
<S> <C> <C>
Net asset value, beginning of period.............................................................. $ 1.00 $ 1.00
------ -------
Income From Investment Operations
Net investment income (a)......................................................................... .0224 .0248
------ -------
Less: Dividends
Dividends from net investment income.............................................................. (.0224) (.0248)
------ -------
Net asset value, end of period.................................................................... $ 1.00 $ 1.00
====== =======
Total Return
Total investment return based on net
asset value (b)................................................................................ 2.26% 1.36%
Ratios/Supplemental Data
Net assets, end of period (in millions)........................................................... $225 $33
Ratios to average net assets of:
Expenses, net of waivers and
reimbursements (c)........................................................................... .45% .45%
Expenses, before waivers and
reimbursements (c)........................................................................... .61% .99%
Net investment income (a)(c)................................................................... 4.60% 4.27%
</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 of the period. Total investment return calculated for a period of less
than one year is not annualized.
(c) Annualized.
(d) Commencement of distribution.
(e) Capital contributed by the Adviser had no material effect on net asset
value, and therefore, no effect on total return.
34
<PAGE>
CHANGE IN INDEPENDENT ACCOUNTANT Alliance Institutional Reserves
================================================================================
On July 13, 1999, McGladrey & Pullen, LLP ("McGladrey") notified the Fund of its
intention to resign as independent auditors of the Fund pursuant to an agreement
by PricewaterhouseCoopers LLP ("PwC") to acquire McGladrey's investment company
practice. The McGladrey partners and professionals serving the Fund at the time
of the acquisition joined PwC.
The reports of McGladrey on the financial statements of the Fund during the past
two fiscal years contained no adverse opinion or disclaimer of opinion, and were
not qualified or modified as to uncertainty, audit scope or accounting
principles.
In connection with its audits for the two most recent fiscal years and through
July 13, 1999, there were no disagreements with McGladrey on any matter of
accounting principle or practices, financial statement disclosure, or auditing
scope or procedure, which disagreements, if not resolved to the satisfaction of
McGladrey would have caused it to make reference to the subject matter of
disagreement in connection with its report.
On July 13, 1999, the Fund, with the approval of its Board of Trustees and its
Audit Committee, engaged PwC as its independent auditors.
35
<PAGE>
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<PAGE>
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