ALLIANCE INSTITUTIONAL RESERVES
ANNUAL REPORT
APRIL 30, 2000
LETTER TO SHAREHOLDERS ALLIANCE INSTITUTIONAL RESERVES
_______________________________________________________________________________
June 4, 2000
Dear Shareholder:
This report provides you with an overview of the economic conditions during
Alliance Institutional Reserves' annual reporting period ended April 30, 2000.
Alliance Institutional Reserves consists of five portfolios--Prime, Government,
Tax-Free, Trust, and Treasury.
INVESTMENT OBJECTIVE AND POLICIES
Each Portfolio's investment objectives are--in the following order of
priority--safety of principal, excellent liquidity, and maximum current income
(exempt from federal income taxes in the case of the Tax-Free Portfolio) to the
extent consistent with the first two objectives.
ECONOMIC COMMENTARY
The past year for the U.S. economy has been remarkable. As we began the new
millennium, worldwide economies enjoyed renewed and continued prosperity.
Recently, however, economic winds have shifted. U.S. data has pushed
expectations in the direction of an economic slowdown.Weakness in auto and
chain-store sales, declines in purchases of new and existing homes, a drop in
factory orders, a fall-off in construction spending, further softening in
manufacturing, and a favorable inflation survey have painted a clear picture of
a downshifting economy. The unemployment report showed further economic
slowdown with an unexpected decline in private-sector payrolls in May, a
two-tenths of 1% increase in the unemployment rate to 4.1%, a decrease in
hours-worked, and a tiny 1[cent] month-on-month increase in hourly earnings.
There can be little doubt that the U.S. economy has slowed during the second
quarter from its first quarter growth pace of 5.4%.
The U.S. economy, we believe, has stepped back a bit and slowed down but not to
the degree necessary to eliminate existing inflationary imbalances. During the
second and third quarters, we do expect final demand growth to fall toward 4%
while production gains move toward 3% . . . but two quarters of below-potential
growth will not relieve labor market pressures, and it certainly will not solve
the massive U.S. trade problem. To the contrary, four-to-six quarters of growth
between 2% and 4% appear to be required. This latter possibility describes the
desirable "soft" landing; the alternative "hard" landing implies an even
sharper deceleration, albeit more compressed, including the chance of negative
growth.
So far, activity in the market with the recent rebound in stock prices and fall
in interest rates, are based on the hope that the Federal Reserve has done
enough to achieve a soft landing. Indeed, a pause in the Fed's tightening
program is possible and perhaps even prudent. But these asset price movements
are actually self-defeating, since they will stimulate spending and cause the
economy to reaccelerate later this year. Eventually, the Fed will need to
tighten further--we estimate by as much as 100 basis points by year-end. Asset
prices will subsequently retreat, borrowing costs will rise, consumer
confidence will finally fall from its lofty perch, and with a little luck, the
U.S. economy will make a soft landing during 2001.
Our longer-term optimism is very much intact, and a calm, deliberate approach
now will leave investors well-positioned for the next leg up in this
unprecedented bull market.
Thank you for your continued interest in Alliance Institutional Reserves. We
look forward to reporting to you in the future.
Sincerely,
Ronald M. Whitehill
President
1
STATEMENT OF NET ASSETS
APRIL 30, 2000 ALLIANCE INSTITUTIONAL RESERVES - PRIME PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY YIELD VALUE
-------------------------------------------------------------------------------
COMMERCIAL PAPER-56.6%
ABBEY NATIONAL NA
$ 39,000 6/27/00 6.11% $ 38,622,707
30,000 9/28/00 6.24 29,220,000
AEGON FUNDING CORP. N.V.
33,000 6/27/00 6.12 32,680,230
22,000 9/26/00 6.23 21,436,531
AMERICAN GENERAL CORP.
16,000 5/19/00 6.07 15,951,440
AMERICAN GENERAL FINANCE
11,000 5/15/00 6.05 10,974,119
22,000 6/29/00 6.09 21,780,422
ASSET BACKED CAPITAL FINANCE
33,000 6/26/00 (a) 6.10 32,686,867
ASSET SECURITIZATION CORP.
40,000 5/15/00 (a) 6.07 39,905,578
24,000 6/15/00 (a) 6.08 23,817,600
ASSOCIATES CORP. B.V.
49,000 5/15/00 5.91 48,887,382
ASSOCIATES CORP. OF NORTH AMERICA
15,000 5/18/00 6.07 14,957,004
BAA PLC
40,000 5/17/00 6.05 39,892,444
BANQUE CAISSE D'EPARGNE L'ETAT
40,000 6/21/00 5.60 39,682,667
25,000 5/15/00 5.90 24,942,639
BANQUE GENERALE DU LUXEMBOURG
30,000 5/12/00 6.03 29,944,725
BARTON CAPITAL CORP.
25,000 5/22/00 (a) 6.08 24,911,333
26,493 5/26/00 (a) 6.09 26,380,957
CBA (FINANCE) DELAWARE, INC.
54,000 5/01/00 6.08 54,000,000
CENTRIC CAPITAL CORP.
28,165 5/30/00 (a) 6.10 28,026,600
CIT GROUP, INC.
22,000 6/26/00 6.08 21,791,929
22,000 6/27/00 6.08 21,788,213
22,000 6/27/00 6.10 21,787,517
CONCORD MINUTE-A
22,000 7/10/00 (a) 6.15 21,736,917
CORPORATE ASSET FUNDING CORP.
16,000 6/22/00 (a) 6.08 15,859,484
CORPORATE RECEIVABLES CORP.
22,000 5/22/00 (a) 6.03 21,922,615
CS FIRST BOSTON, INC.
33,000 6/13/00 (a) 6.07 32,760,741
CXC, INC.
22,000 5/22/00 (a) 6.03 21,922,615
DAIMLERCHRYSLER CORP.
33,500 5/22/00 6.05 33,381,773
33,500 6/28/00 6.08 33,171,849
DEN DANSKE CORP.
32,000 5/15/00 6.02 31,925,084
EXXON PROJECT
160,000 5/15/00 6.05 159,623,556
FORTIS FUNDING
25,000 6/23/00 6.11 24,775,118
2,000 6/27/00 6.11 1,980,652
FOUR WINDS FUNDING CORP.
30,000 6/21/00 (a) 6.15 29,738,625
GALAXY FUNDING, INC.
50,000 5/08/00 (a) 6.10 49,940,695
7,000 5/25/00 (a) 6.25 6,970,833
GENERAL MOTORS ACCEPTANCE CORP.
67,000 6/28/00 6.09 66,342,618
GOLDEN FUNDING CORP.
15,742 5/11/00 6.06 15,715,501
12,000 5/16/00 6.08 11,969,600
11,000 5/15/00 6.09 10,973,948
GOLDMAN SACHS GROUP L.P.
70,000 5/22/00 6.05 69,752,958
GOTHAM FUNDING
29,854 5/12/00 (a) 6.10 29,798,356
14,000 5/02/00 (a) 6.13 13,997,616
GOVERNMENT DEVELOPMENT BANK OF
PUERTO RICO
36,500 5/05/00 6.04 36,475,504
GREENWICH FUNDING CORP.
51,279 5/15/00 (a) 6.04 51,158,551
ING INSURANCE HOLDINGS, INC.
35,000 5/10/00 5.91 34,948,287
11,000 5/19/00 6.03 10,966,835
3,000 6/08/00 6.10 2,980,652
18,000 6/28/00 6.15 17,821,795
LEXINGTON PARKER CAPITAL CORP.
22,000 5/15/00 (a) 6.07 21,948,068
MARKET STREET FUNDING CORP.
26,000 5/17/00 (a) 6.05 25,930,089
MORGAN STANLEY DEAN WITTER
45,000 6/15/00 6.07 44,658,562
NATIONAL CITY CORP.
67,000 5/15/00 6.04 66,842,624
NATIONAL RURAL UTILITY CORP.
42,000 6/15/00 6.10 41,679,750
2
ALLIANCE INSTITUTIONAL RESERVES - PRIME PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY YIELD VALUE
-------------------------------------------------------------------------------
OLD LINE FUNDING
$ 19,000 5/22/00 (a) 6.06% $ 18,932,835
5,000 5/03/00 (a) 6.08 4,998,311
PREFERRED RECEIVABLES FUNDING
40,000 5/15/00 (a) 6.08 39,905,422
34,000 5/23/00 (a) 6.09 33,873,464
ROYAL BANK OF SCOTLAND
47,000 5/15/00 6.03 46,889,785
SAN PAOLO-IMI
13,000 5/31/00 5.80 12,937,167
SANTANDER FINANCE
30,000 5/15/00 5.90 29,931,167
22,000 6/28/00 6.12 21,783,080
SVENSKA HANDELSBANKEN
15,000 6/28/00 6.11 14,852,342
SWEETWATER FUNDING
28,682 5/26/00 (a) 6.09 28,560,699
TASMANIAN PUBLIC FINANCE CORP.
20,000 6/28/00 6.13 19,802,478
THAMES ASSET GLOBAL SECURITIZATION
19,176 5/15/00 (a) 5.92 19,131,853
34,000 6/30/00 (a) 6.15 33,651,500
WESTWAYS FUNDING IV
35,500 5/22/00 (a) 6.10 35,373,679
WESTWAYS FUNDING V, LTD.
33,000 5/09/00 (a) 6.09 32,955,340
WINDMILL FUNDING CORP.
44,000 6/26/00 (a) 6.15 43,579,067
Total Commercial Paper
(amortized cost $2,160,898,964) 2,160,898,964
CERTIFICATES OF DEPOSIT-20.6%
BARCLAYS BANK PLC
15,000 5.61%, 6/14/00 5.66 14,999,133
45,000 6.16%, 6/14/00 FRN 6.21 44,997,377
DEUTSCHE BANK
35,000 5.44%, 6/01/00 5.49 34,998,573
49,000 6.03%, 3/13/01 FRN 6.07 48,983,303
DRESDNER BANK AG
83,000 6.46%, 12/11/00 6.46 83,000,000
FIRST UNION NATIONAL BANK FRN
41,000 6.16%, 8/29/00 6.05 41,012,218
LANDESBANK-HESSEN-THUERINGEN
15,000 5.92%, 9/29/00 5.98 14,996,441
LLOYDS BANK PLC
22,000 6.20%, 6/29/00 6.20 22,000,000
MERITA-NORDBANKEN PLC
29,000 6.08%, 5/01/00 6.08 29,000,000
NATIONAL WESTMINSTER BANK
25,000 5.67%, 7/05/00 5.71 24,998,295
NORDEUTSCHE LANDESBANK
20,000 5.26%, 5/18/00 5.30 19,999,641
30,000 6.20%, 12/01/00 6.27 29,988,265
RABOBANK NEDERLAND
15,000 5.35%, 5/24/00 5.40 14,999,546
20,000 6.68%, 2/12/01 6.71 19,994,777
ROYAL BANK OF CANADA
50,000 5.86%, 8/09/00 5.90 49,994,759
SAN PAOLO-IMI
10,000 6.02%, 6/07/00 6.02 10,000,000
50,000 6.21%, 6/30/00 6.21 50,000,000
SOUTHTRUST BANK
25,000 5.98%, 5/16/00 5.98 25,000,000
40,000 6.20%, 6/15/00 6.20 40,000,000
SVENSKA HANDELSBANKEN
50,000 6.01%, 5/08/00 6.01 50,000,000
U.S. BANK NA FRN
15,000 6.17%, 8/28/00 6.17 15,000,000
UBS FINANCE DELAWARE
10,000 5.22%, 5/10/00 5.27 9,999,905
15,000 5.29%, 5/19/00 5.34 14,999,644
25,000 5.34%, 5/30/00 5.39 24,999,046
23,000 5.36%, 5/30/00 5.61 22,995,328
14,000 5.60%, 6/23/00 5.74 13,996,988
WACHOVIA BANK NA
14,000 5.95%, 9/11/00 5.95 14,000,000
Total Certificates of Deposit
(amortized cost $784,953,239) 784,953,239
CORPORATE OBLIGATIONS-15.4%
ALLSTATE LIFE INSURANCE FUNDING
AGREEMENT FRN
25,000 6.18%, 5/01/00 (b) 6.18 25,000,000
25,000 6.25%, 11/01/00 (b) 6.25 25,000,000
ASSET BACKED CAPITAL
10,000 6.17%, 11/15/00 FRN (a) 6.17 10,000,000
22,000 6.80%, 2/07/01 MTN (a) 6.80 22,000,000
BETA FINANCE, INC. FRN
38,000 6.73%, 9/15/00 (a) 6.73 38,000,000
CENTAURI CORP. USA, INC. FRN
43,000 6.74%, 9/08/00 (a) 6.74 43,000,000
DORADA FINANCE, INC. MTN
38,000 6.02%, 9/15/00 (a) 6.02 38,000,000
HARTFORD LIFE INSURANCE CO.
FUNDING AGREEMENT FRN
40,000 6.13%, 6/01/00 6.13 40,000,000
MERRILL LYNCH & CO., INC. MTN
77,000 6.11%, 4/12/01 6.12 76,992,661
METLIFE FUNDING AGREEMENT FRN
50,000 6.12%, 6/01/00 6.12 50,000,000
PRUDENTIAL INSURANCE CO. OF
AMERICA FRN
16,000 6.14%, 11/30/00 6.14 16,000,000
3
STATEMENT OF NET ASSETS
(CONTINUED) ALLIANCE INSTITUTIONAL RESERVES - PRIME PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY YIELD VALUE
-------------------------------------------------------------------------------
SIGMA FINANCE, INC.
$ 50,000 6.16%, 6/30/00 FRN (a) 6.16% $ 50,000,000
55,000 6.26%, 6/29/00 FRN (a) 6.26 55,000,000
20,000 6.30%, 7/25/00 MTN (a) 6.30 20,000,000
TOYOTA MOTOR CREDIT CORP. FRN
34,000 6.66%, 9/21/00 6.66 34,000,000
TRAVELERS LIFE FUNDING
AGREEMENT FRN
20,000 6.11%, 1/15/01 6.11 20,000,000
25,000 6.22%, 7/21/00 (b) 6.22 25,000,000
Total Corporate Obligations
(amortized cost $587,992,661) 587,992,661
U.S. GOVERNMENT & AGENCY
OBLIGATIONS-3.9%
FEDERAL HOME LOAN BANK
43,000 6.13%, 10/16/00 FRN 6.23 42,979,793
40,000 6.40%, 2/09/01 MTN 6.42 39,992,892
FEDERAL NATIONAL MORTGAGE
ASSOCIATION MTN
25,000 6.48%, 10/05/00 6.53 24,994,757
STUDENT LOAN MARKETING
ASSOCIATION FRN
40,000 6.48%, 10/04/00 6.53 39,991,664
Total U.S. Government & Agency
Obligations
(amortized cost $147,959,106) 147,959,106
TIME DEPOSITS-2.9%
STATE STREET BANK AND TRUST CO.
58,900 5.88%, 5/01/00 5.88 58,900,000
SUNTRUST BANK
50,000 6.03%, 5/01/00 6.03 50,000,000
Total Time Deposits
(amortized cost $108,900,000) 108,900,000
BANK OBLIGATIONS-1.8%
AMERICAN EXPRESS CENTURION BANK FRN
40,000 6.30%, 5/04/00 6.30 40,000,000
FIRST NATIONAL BANK
10,000 5.60%, 6/14/00 5.65 9,999,422
LASALLE NATIONAL BANK NA
20,000 6.50%, 10/30/00 6.50 20,000,000
Total Bank Obligations
(amortized cost $69,999,422) 69,999,422
TOTAL INVESTMENTS-101.2%
(amortized cost $3,860,703,392) 3,860,703,392
Other assets less liabilities-(1.2%) (45,762,232)
NET ASSETS-100%
(offering and redemption
price of $1.00 per share;
1,788,445,395 Class A shares,
1,871,289,692 Class B shares
and 155,313,232 Class C
shares outstanding) $ 3,814,941,160
See Glossary of Terms on page 18.
See notes to financial statements.
4
STATEMENT OF NET ASSETS
APRIL 30, 2000 ALLIANCE INSTITUTIONAL RESERVES - GOVERNMENT PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY YIELD VALUE
-------------------------------------------------------------------------------
U.S. GOVERNMENT & AGENCY
OBLIGATIONS-56.6%
FEDERAL HOME LOAN BANK-22.0%
$ 5,000 6.13%, 10/16/00 FRN 6.13% $ 4,997,650
10,000 6.37%, 7/28/00 FRN 6.37 9,997,836
5,000 6.40%, 2/09/01 MTN 6.41 4,999,112
5,000 6.49%, 10/06/00 FRN 6.49 4,998,523
14,000 6.50%, 2/15/01 MTN 6.59 13,990,072
8,100 5.10%, 5/17/00 5.17 8,099,766
8,100 5.15%, 5/19/00 5.23 8,099,661
8,000 5.415%, 6/14/00 5.46 7,999,648
5,000 5.48%, 7/13/00 5.58 4,999,043
5,000 5.56%, 7/14/00 5.58 4,999,757
2,040 5.625%, 6/02/00 5.74 2,039,513
1,500 6.45%, 5/22/00 5.80 1,500,473
3,500 5/31/00 5.80 3,483,579
1,000 5.26%, 5/26/00 5.85 999,592
1,000 5.47%, 8/17/00 5.85 998,702
55,000 5/01/00 5.90 55,000,000
3,000 6.05%, 11/03/00 6.05 2,999,893
4,000 9/15/00 6.30 3,906,688
----------------
144,109,508
FEDERAL HOME LOAN MORTGAGE
CORP.-14.9%
4,500 5.99%, 12/06/00 MTN 6.15 4,495,719
40,300 5/02/00 5.93 40,293,395
10,000 5/16/00 5.96 9,975,375
5,000 5/11/00 5.99 4,991,736
10,000 5/12/00 6.00 9,981,819
15,000 6/08/00 6.05 14,905,475
10,000 6/22/00 6.07 9,913,622
3,000 6/15/00 6.11 2,977,388
----------------
97,534,529
FEDERAL NATIONAL MORTGAGE
ASSOCIATION-12.9%
14,000 5.00%, 5/05/00 MTN 5.23 13,999,400
5,000 5.10%, 5/19/00 MTN 5.71 4,998,468
2,000 5.12%, 5/12/00 MTN 5.71 1,999,556
4,200 5.89%, 12/22/00 MTN 6.35 4,187,678
2,800 5.90%, 12/01/00 MTN 6.15 2,795,984
4,500 5.92%, 12/07/00 MTN 6.11 4,494,915
10,000 6.06%, 7/17/00 FRN 6.06 9,998,951
7,000 6.36%, 8/16/00 5.76 7,011,855
2,000 6.20%, 6/26/00 5.80 2,000,931
2,000 5.56%, 7/24/00 5.85 1,998,401
3,000 6/15/00 5.95 2,978,325
5,000 6/22/00 6.04 4,957,678
2,000 6/15/00 6.11 1,984,925
8,000 6/29/00 6.14 7,920,678
3,500 9/21/00 6.30 3,414,776
5,000 9/28/00 6.37 4,871,458
5,000 9/28/00 6.38 4,871,354
----------------
84,485,333
STUDENT LOAN MARKETING
ASSOCIATION-6.7%
10,000 6.46%, 11/17/00 FRN 6.50 9,996,175
15,000 6.48%, 8/10/00 FRN 6.49 14,998,758
5,000 6.48%, 10/12/00 FRN 6.53 4,997,592
10,000 6.48%, 11/15/00 FRN 6.51 9,997,349
4,000 6.05%, 9/14/00 5.96 4,000,214
----------------
43,990,088
FEDERAL FARM CREDIT BANK-0.1%
1,000 7/24/00 5.85 1,000,400
Total U.S. Government & Agency
Obligations
(amortized cost $371,119,858) 371,119,858
REPURCHASE AGREEMENTS-42.8%
DEUTSCHE BANK
20,000 5.98%, dated 4/11/00, due
05/15/00 in the amount of
$20,112,956 (cost $20,000,000;
collateralized by $20,700,000
FHLMDN, 7/03/00,
value $20,461,319) (c) 5.98 20,000,000
FUJI
25,000 5.85%, dated 4/28/00, due
5/01/00 in the amount of
$25,012,188 (cost $25,000,000;
collateralized by $25,570,000
FHLMDN, 5/11/00,
value $25,511,000) 5.85 25,000,000
GOLDMAN SACHS & CO.
30,000 5.85%, dated 4/28/00, due
5/01/00 in the amount of
$30,014,625 (cost $30,000,000;
collateralized by $36,052,000
FNMA, 6.00%, 1/01/29,
value $30,844,000) 5.85 30,000,000
GREENWICH FUNDING CORP.
20,000 5.97%, dated 4/12/00, due
5/12/00 in the amount of
$20,099,500 (cost $20,000,000;
collateralized by $21,600,000
FHLMC, 5.00%, 1/15/04,
value $20,366,625) (f) 5.97 20,000,000
MERRILL LYNCH & CO., INC.
25,000 5.80%, dated 4/28/00, due
5/01/00 in the amount of
$25,012,083 (cost $25,000,000;
collateralized by $30,443,000
FNMA pool #460013, 6.82%, 7/01/28,
value $25,642,000) 5.80 25,000,000
5
STATEMENT OF NET ASSETS
(CONTINUED) ALLIANCE INSTITUTIONAL RESERVES - GOVERNMENT PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY YIELD VALUE
-------------------------------------------------------------------------------
MORGAN (J.P.) & CO.
$ 33,000 5.80%, dated 4/28/00, due
5/01/00 in the amount of
$33,015,950 (cost $33,000,000;
collateralized by $39,521,000
FHLMC, 6.00%, 1/01/29,
value $33,827,000) 5.80% $ 33,000,000
MORGAN STANLEY DEAN WITTER
30,000 5.98%, dated 4/11/00, due
5/11/00 in the amount of
$30,149,500 (cost $30,000,000;
collateralized by $31,400,000
FNMA, 5.625%, 5/15/04,
value $30,462,906) (c) 5.98 30,000,000
PAINE WEBBER, INC.
15,000 5.97%, dated 4/14/00, due
5/16/00 in the amount of
$15,079,600 (cost $15,000,000;
collateralized by $16,270,000
FNMA pool #522157,
1.00%, 2/01/30, value
$16,322,751) (c) 5.97 15,000,000
PAINE WEBBER, INC.
20,000 6.00%, dated 4/10/00, due
5/10/00 in the amount of
$20,100,000 (cost $20,000,000;
collateralized by $22,800,000
GNMA, 7.50%, 3/15/28,
value $20,143,807) (c) 6.00 20,000,000
PRUDENTIAL SECURITIES, INC.
18,000 6.03%, dated 3/31/00, due
5/01/00 in the amount of
$18,093,465 (cost $18,000,000;
collateralized by $19,420,000
FHLMC pool # C30263, 7.00%,
8/01/29, value
$18,431,943) (c) 6.03 18,000,000
STATE STREET BANK AND TRUST CO.
9,300 5.78%, dated 4/28/00, due
5/01/00 in the amount of
$9,304,480 (cost $9,300,000;
collateralized by $9,405,000
USTN, 6.375%, 1/31/02,
value $9,487,294) 5.78 9,300,000
UBS FINANCE, INC.
20,000 5.97%, dated 4/14/00, due
5/15/00 in the amount of
$20,102,817 (cost $20,000,000;
collateralized by $20,230,000
FHLMC, 6.40%, 2/08/01,
value $20,502,843) (c) 5.97 20,000,000
UBS FINANCE, INC.
15,000 6.00%, dated 4/11/00, due
5/11/00 in the amount of
$15,075,000 (cost $15,000,000;
collateralized by $15,310,000
FHLB, 6.66%, 4/06/01,
value $15,370,765) (c) 6.00 15,000,000
Total Repurchase Agreements
(amortized cost $280,300,000) 280,300,000
TOTAL INVESTMENTS-99.4%
(amortized cost $651,419,858) 651,419,858
Other assets less liabilities-0.6% 4,037,366
NET ASSETS-100%
(offering and redemption
price of $1.00 per share;
442,366,845 Class A shares,
197,691,304 Class B shares
and 15,535,863 Class C shares
outstanding) $ 655,457,224
See Glossary of Terms on page 18.
See notes to financial statements.
6
STATEMENT OF NET ASSETS
APRIL 30, 2000 ALLIANCE INSTITUTIONAL RESERVES - TAX-FREE PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY(D) YIELD VALUE
-------------------------------------------------------------------------------
MUNICIPAL BONDS-94.4%
ALABAMA-1.7%
ALABAMA SPECIAL CARE
FACILITIES AUTHORITY
(Ascension Health)
Series 99B
$ 10,000 11/15/39 (e) 5.05% $ 10,000,000
ARAB IDB
(SCI Manufacturing, Inc.)
Series 89
150 8/01/00 (e) 6.35 150,000
SELMA IDA
(Specialty Minerals Project)
Series 94
4,000 11/01/09 (e) 5.15 4,000,000
----------------
14,150,000
ALASKA-6.2%
ALASKA HOUSING FINANCE CORP.
(University of Alaska)
Series 97A
16,205 12/01/27 (e) 5.15 16,205,000
ALASKA IDA
(American President Lines)
Series 91
6,495 11/01/09 (e) 5.20 6,495,000
ALASKA IDA
(Fairbanks Gold Mining, Inc.)
Series 97 AMT
4,400 5/01/09 (e) 5.05 4,400,000
ANCHORAGE
(Electric Utility Revenue)
Series D
3,200 12/01/26 (e) 5.05 3,200,000
VALDEZ MARINE IDA
(Exxon Pipeline Co. Project)
Series 85
21,600 10/01/25 (e) 6.05 21,600,000
----------------
51,900,000
ARIZONA-4.0%
MARICOPA IDA MFHR
(Gran Victoria Housing)
Series 00A
4,500 4/15/30 (e) 5.90 4,500,000
MARICOPA PCR
(Arizona Public Service-
Palo Verde Project)
Series 94E
12,100 5/01/29 (e) 6.05 12,100,000
PIMA COUNTY IDA
(Tuscon Electric Co. Project)
Series 82A
4,900 12/01/22 (e) 5.05 4,900,000
PINAL IDA
(Newmont)
12,100 12/01/09 (e) 5.95 12,100,000
----------------
33,600,000
ARKANSAS-1.3%
ARKANSAS HOSPITAL EQUIPMENT
FINANCE AUTHORITY
(AHA Pooled Financing Program)
Series 98A
10,700 11/01/28 (e) 5.10 10,700,000
CALIFORNIA-0.5%
STUDENT EDUCATION LOAN
MARKETING CORP.
(California Student Revenue)
Series 93A
4,000 11/01/02 (e) 5.05 4,000,000
COLORADO-2.6%
CASTLE PINES METROPOLITAN
DISTRICT LIMITED GO
Series 99
14,000 12/01/28 (e) 5.10 14,000,000
UNIVERSITY OF COLORADO
(Certificates of Participation)
Series A
8,000 7/01/18 (e) 3.50 8,000,000
----------------
22,000,000
DELAWARE-1.8%
DELAWARE ECONOMIC
DEVELOPMENT AUTHORITY
(Delmarva Power & Light)
Series 93C
9,200 10/01/28 (e) 5.10 9,200,000
DELAWARE ECONOMIC
DEVELOPMENT AUTHORITY
(Delmarva Power & Light)
Series 99A
6,065 7/01/24 (e) 5.00 6,065,000
----------------
15,265,000
DISTRICT OF COLUMBIA-2.5%
DISTRICT OF COLUMBIA
(American Society for
Micro Biology)
Series 99A
3,000 1/01/29 (e) 5.05 3,000,000
DISTRICT OF COLUMBIA GO
Series 91B-3
4,500 6/01/03 (e) 6.10 4,500,000
DISTRICT OF COLUMBIA GO
Series 92A-1
4,700 10/01/07 (e) 6.15 4,700,000
DISTRICT OF COLUMBIA GO
Series 92A-2
3,000 10/01/07 (e) 6.15 3,000,000
7
STATEMENT OF NET ASSETS
(CONTINUED) ALLIANCE INSTITUTIONAL RESERVES - TAX-FREE PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY(D) YIELD VALUE
-------------------------------------------------------------------------------
DISTRICT OF COLUMBIA GO
Series 92A-3
$ 5,900 10/01/07 (e) 6.15% $ 5,900,000
----------------
21,100,000
FLORIDA-4.2%
BROWARD COUNTY HFA MFHR
(Fishermens Landing)
Series 99
6,700 11/01/07 (e) 5.05 6,700,000
BROWARD COUNTY HFA MFHR
(Reflections Apartments)
Series 99
5,000 12/01/29 (e) 5.05 5,000,000
DADE COUNTY
(Capital Asset)
Series 90
4,575 10/01/10 (e) 5.15 4,575,000
DADE COUNTY IDA
(Florida Light & Power)
Series 93
13,400 6/01/21 (e) 6.05 13,400,000
GULF BREEZE
(Florida Muni Bond Fund)
Series A
5,300 3/31/21 (e) 5.10 5,300,000
----------------
34,975,000
GEORGIA-5.7%
BIBB COUNTY DEVELOPMENT AUTHORITY
(Trustee of Mount De Sales Academy)
Series 00
6,000 3/01/20 (e) 5.10 6,000,000
COLUMBIA ELDERLY AUTHORITY
RESIDENTIAL CARE FACILITIES
(Augusta Residential Center
on Aging)
3,255 1/01/21 (e) 5.10 3,255,000
FLOYD COUNTY DEVELOPMENT AUTHORITY
(Darlington School Project)
Series 00
19,500 3/01/20 (e) 5.05 19,500,000
FULTON COUNTY
(Spelman College Project)
Series 99
8,000 11/01/20 (e) 5.10 8,000,000
FULTON COUNTY HFA MFHR
(Hampton Hills Apts. Project)
5,000 6/01/23 (e) 5.10 5,000,000
GAINESVILLE & HALL COUNTY
(Senior Living Facility
Lanier Village)
Series 99A
5,500 11/15/10 (e) 5.20 5,500,000
----------------
47,255,000
ILLINOIS-10.3%
AURORA KANE & DUPAGE IDA
(Jania Family LLC Project)
Series 99 AMT
6,500 12/01/29 (e) 5.20 6,500,000
CHICAGO GAS SUPPLY REVENUE
(Peoples Gas Light & Coke)
Series 00A
3,000 3/01/30 (e) 5.03 3,000,000
CHICAGO GAS SUPPLY REVENUE
(Peoples Gas Light & Coke)
Series 00B
8,000 3/01/30 (e) 5.15 8,000,000
DES PLAINES COOK COUNTY IDA
(CP Partners LLC Project)
Series 97A
6,685 11/01/15 (e) 5.20 6,685,000
ELMHURST
(Joint Comm. Health Organization)
Series 88
3,100 7/01/18 (e) 5.15 3,100,000
ILLINOIS DEVELOPMENT FINANCE
AUTHORITY
(Amerencips Project)
Series 00
25,000 3/01/14 (e) 5.05 25,000,000
ILLINOIS DEVELOPMENT FINANCE
AUTHORITY
(AMR Pooled Financing Program)
Series 99A
10,000 10/01/29 (e) 5.10 10,000,000
ILLINOIS DEVELOPMENT FINANCE
AUTHORITY
(D.E. Akin Seed Project)
AMT
1,000 11/01/04 (e) 5.20 1,000,000
ILLINOIS HEALTH FACILITIES
AUTHORITY
(Lifelink Corp.)
Series A
10,000 2/15/16 (e) 5.20 10,000,000
8
ALLIANCE INSTITUTIONAL RESERVES - TAX-FREE PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY(D) YIELD VALUE
-------------------------------------------------------------------------------
ILLINOIS HOUSING
DEVELOPMENT AUTHORITY
(Single Family Housing Revenue)
Series B-1
$ 4,385 12/22/00 (e) 4.21% $ 4,385,000
TINLEY PARK SPECIAL
ASSESSMENT DISTRICT
(Millennium Lakes Development)
7,335 2/01/08 (e) 5.10 7,335,000
VERNON HILLS IDA
(Kinder Care Center)
Series C
550 2/01/01 (e) 5.60 550,000
----------------
85,555,000
INDIANA-3.5%
INDIANA DEVELOPMENT
FINANCE AUTHORITY
(Alcoa, Inc. Project)
Series 99
13,905 1/01/17 (e) 5.10 13,905,000
INDIANA HEALTH FACILITY
AUTHORITY
(Hartsfield Village)
Series 97B
4,000 8/15/27 (e) 5.20 4,000,000
INDIANAPOLIS
(Local Public Improvement
Bond Bank)
Series F
11,000 7/10/00 3.90 11,012,350
----------------
28,917,350
KANSAS-1.1%
LENEXA HEALTH CARE FACILITY
(Lakeview Village)
Series A
9,160 5/15/26 (e) 5.20 9,160,000
KENTUCKY-0.8%
BARBOURVILLE COLLEGE REVENUE
(Union College Project)
Series A
3,500 8/01/23 (e) 5.10 3,500,000
JEFFERSONTOWN
(League of Cities Fund Trust)
Series 00
3,000 3/01/30 (e) 5.05 3,000,000
----------------
6,500,000
LOUISIANA-2.3%
LOUISIANA PUBLIC FACILITY
AUTHORITY
(Hospital Equipment Finance Project)
Series 85A
18,700 12/01/10 (e) 5.05 18,700,000
MAINE-0.4%
MAINE FINANCE AUTHORITY
(Barber Foods, Inc.)
Series 90B AMT
1,145 12/01/06 (e) 5.35 1,145,000
WESTBROOK IDA
(D & G Group Project)
AMT
2,465 5/01/17 (e) 5.20 2,465,000
----------------
3,610,000
MARYLAND-1.1%
MARYLAND COMMUNITY
DEVELOPMENT DEPT.
(Housing & Community Development)
Series G AMT
9,000 8/30/00 3.65 9,000,000
MASSACHUSETTS-0.2%
MASSACHUSETTS STATE
HEALTH & EDUCATION FACILITY
(Capital Asset Program)
Series 85A
1,915 1/01/35 (e) 5.85 1,915,000
MICHIGAN-0.9%
MICHIGAN STATE HOSPITAL
FINANCE AUTHORITY
(Mt. Clemens General Hospital)
Series 00
7,200 3/01/15 (e) 5.25 7,200,000
MINNESOTA-1.9%
BECKER IDA
(Northern States Power)
Series 00A
10,000 4/01/30 (e) 5.05 10,000,000
COTTAGE GROVE
(Minnesota Mining &
Manufacturing Co. Project)
1,000 8/01/12 (e) 4.75 1,000,000
EDEN PRAIRIE IDA
(Kinder Care Project)
Series C
465 2/01/01 (e) 5.60 465,000
MINNEAPOLIS ST. PAUL
HFA SFMR
(City Living Home Program)
Series 99B-2
4,000 8/01/00 3.65 4,000,000
----------------
15,465,000
MISSISSIPPI-0.3%
MISSISSIPPI BUSINESS
FINANCE AUTHORITY
(Triton Systems, Inc.)
Series 98A AMT
2,500 12/01/13 (e) 5.30 2,500,000
9
STATEMENT OF NET ASSETS
(CONTINUED) ALLIANCE INSTITUTIONAL RESERVES - TAX-FREE PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY(D) YIELD VALUE
-------------------------------------------------------------------------------
MISSOURI-1.4%
BLUE SPRINGS IDA
(Kinder Care Project)
Series C
$ 540 2/01/01 (e) 5.60% $ 540,000
BOONE COUNTY IDA
(Minnesota Mining &
Manufacturing Co. Project)
500 12/01/25 (e) 4.70 500,000
MISSOURI HEALTH &
EDUCATIONAL FACILITY
(Deaconess Long Term Care)
Series 96A
10,690 12/01/16 (e) 5.15 10,690,000
----------------
11,730,000
NEW HAMPSHIRE-1.2%
NEW HAMPSHIRE EDUCATIONAL
& HEALTH FACILITY
(Hunt Community Issue)
Series 96
7,620 5/01/26 (e) 5.10 7,620,000
NEW HAMPSHIRE HOUSING
DEVELOPMENT AUTHORITY
(Single Family Mortgage Revenue)
Series 99C
2,000 12/01/00 3.96 2,000,000
----------------
9,620,000
NEW MEXICO-0.6%
NEW MEXICO MORTGAGE
FINANCE AUTHORITY
(Single Family Mortgage Revenue)
Series 99-6
5,000 6/15/00 3.96 5,000,000
NEW YORK-3.4%
NEW YORK STATE
DORMITORY AUTHORITY
(Memorial Sloan-Kettering)
Series 89B
24,600 7/01/19 (e) 6.05 24,600,000
NEW YORK/NEW JERSEY PORT AUTHORITY
(Versatile Structure)
Series 96-5
3,800 8/01/24 (e) 6.00 3,800,000
----------------
28,400,000
NORTH CAROLINA-0.5%
NORTH CAROLINA MEDICAL CARE FACILITY
(Pooled Finance Project)
Series 96A
4,400 10/01/16 (e) 6.00 4,400,000
OHIO-4.6%
CLINTON COUNTY HOSPITAL AUTHORITY
(Ohio Hospital Capital, Inc.)
Series 99
7,845 7/01/29 (e) 5.10 7,845,000
OHIO WATER DEVELOPMENT AUTHORITY
(Philip Morris Co.)
Series 97
27,500 9/01/18 (e) 5.20 27,500,000
WARREN COUNTY IDA
(Pioneer Industrial Components
Project)
Series 85
2,500 12/01/05 (e) 5.75 2,500,000
----------------
37,845,000
OKLAHOMA-0.6%
OKLAHOMA DEVELOPMENT
FINANCE AUTHORITY
(Oklahoma Hospital Pooled Loan
Program)
Series 99A
5,000 6/01/29 (e) 5.10 5,000,000
OREGON-1.5%
OREGON STATE HOUSING & COMMUNITY
SERVICES AUTHORITY
(Single Family Mortgage Revenue)
Series 99G
4,200 6/29/00 3.46 4,200,000
OREGON STATE HOUSING & COMMUNITY
SERVICES AUTHORITY
(Single Family Mortgage Revenue)
Series N
8,180 11/02/00 3.85 8,180,000
----------------
12,380,000
PENNSYLVANIA-5.5%
ALLEGHENY COUNTY IDA
(United Jewish Federation Project)
Series 96A
11,350 10/01/26 (e) 5.10 11,350,000
MONTGOMERY COUNTY HIGHER
EDUCATION & HEALTH AGENCY
Series 97A
9,960 4/01/17 (e) 5.15 9,960,000
MONTGOMERY COUNTY HIGHER
EDUCATION & HEALTH AGENCY
Series 97A
14,050 8/01/21 (e) 5.15 14,050,000
10
ALLIANCE INSTITUTIONAL RESERVES - TAX-FREE PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY(D) YIELD VALUE
-------------------------------------------------------------------------------
MONTGOMERY COUNTY IDA
(Kinder Care Project)
Series D
$ 400 10/01/00 (e) 5.60% $ 400,000
PHILADELPHIA COUNTY IDA
(Cliveden Maplewood Project)
Series 99
8,840 1/01/24 (e) 5.10 8,840,000
VENANGO IDA
(Penzoil Co. Project)
Series 82A
285 12/01/12 (e) 4.85 285,000
YORK COUNTY GENERAL AUTHORITY
(Pooled Finance Revenue)
Series 96
655 9/01/26 (e) 5.10 655,000
----------------
45,540,000
SOUTH CAROLINA-1.1%
BERKELEY COUNTY IDA
(Amoco Chemical Co. Project)
Series 94
2,500 7/01/12 (e) 6.05 2,500,000
BERKELEY COUNTY IDA
(Nucor Corp. Project)
Series 97 AMT
3,900 4/01/30 (e) 5.15 3,900,000
SOUTH CAROLINA JOB
DEVELOPMENT AUTHORITY
(Baptist Healthcare)
Series 95
3,000 8/01/17 (e) 5.05 3,000,000
----------------
9,400,000
TENNESSEE-3.3%
CLARKSVILLE PUBLIC
BUILDING AUTHORITY
Series 97
10,600 11/01/27 (e) 5.10 10,600,000
KNOX HEALTH EDUCATIONAL
& HOUSING BOARD AUTHORITY
(The Solutions Group, Inc. Project)
Series 99
8,000 5/01/29 (e) 5.10 8,000,000
METRO NASHVILLE AIRPORT AUTHORITY
(American Airlines)
Series A
8,600 10/01/12 (e) 6.00 8,600,000
----------------
27,200,000
TEXAS-9.1%
DALLAS AREA RAPID TRANSIT AUTHORITY
(North Central Light Rail Project)
Series 00
25,600 1/05/05 (e) 5.05% 25,600,000
GRAYSON COUNTY IDA
(Aluminum Co. of America)
7,000 12/01/02 (e) 5.30 7,000,000
GULF COAST WASTE
DISPOSAL AUTHORITY
(Exxon Corp. Project)
4,500 6/01/20 (e) 6.05 4,500,000
METROPOLITAN HIGHER
EDUCATION AUTHORITY
(University of Dallas)
Series 99
7,000 5/01/19 (e) 5.15 7,000,000
NORTH CENTRAL HEALTH
FACILITY DEVELOPMENT
(Northwest Senior Housing Corp.)
Series C
7,500 11/15/29 (e) 5.20 7,500,000
NORTH HIGHER EDUCATION AUTHORITY
(Student Loan Revenue)
Series 00A
6,500 9/01/02 (e) 5.15 6,500,000
PORT OF PORT ARTHUR
NAVIGATION DISTRICT OF JEFFERSON
(Texaco, Inc. Project)
Series 94
3,000 10/01/24 (e) 6.10 3,000,000
SOUTHWEST HIGHER EDUCATION
AUTHORITY
(Southern Methodist University)
3,900 7/01/15 (e) 6.10 3,900,000
TEXAS STATE TRAN
Series 99A
10,400 8/31/00 4.50 10,426,468
----------------
75,426,468
VERMONT-2.8%
VERMONT HEFA
(Capital Asset Financing Program)
Series 97-1
9,530 6/01/22 (e) 5.05 9,530,000
VERMONT HEFA
(Capital Asset Financing Program)
Series 97-2
14,015 6/01/27 (e) 5.05 14,015,000
----------------
23,545,000
11
STATEMENT OF NET ASSETS
(CONTINUED) ALLIANCE INSTITUTIONAL RESERVES - TAX-FREE PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY(D) YIELD VALUE
-------------------------------------------------------------------------------
WASHINGTON-2.1%
WASHINGTON STATE PUBLIC
POWER SUPPLY
(Nuclear Project Number 3)
Series B Pre-refunded
$ 17,350 7/01/00 3.80% $ 17,799,159
WEST VIRGINIA-0.2%
KEYSER IDR
(Keyser Associates Project)
1,650 7/01/14 (e) 5.10 1,650,000
WISCONSIN-2.1%
MANITOWOC IDA
(Jagemann Stamping Co.)
Series 98 AMT
1,618 4/01/11 (e) 5.25 1,618,000
MILWAUKEE IDA
(Goodwill Industries)
Series 99
7,675 7/01/19 (e) 5.15 7,675,000
WAUSAU PCR
(Minnesota Mining &
Manufacturing Co. Project)
1,600 8/01/17 (e) 4.75 1,600,000
WISCONSIN STATE HEALTH
& EDUCATIONAL FACILITIES
(Aurora Health Care)
Series 99C
6,630 2/15/29 (e) 5.10 6,630,000
----------------
17,523,000
WYOMING-1.1%
LINCOLN PCR
(Exxon Corp.)
8,700 11/01/14 (e) 5.95 8,700,000
Total Municipal Bonds
(amortized cost $784,625,977) 784,625,977
COMMERCIAL PAPER-5.2%
ARIZONA-1.1%
SALT RIVER AGRICULTURAL AUTHORITY
(Improvement & Power District)
9,200 5/03/00 3.85 9,200,000
NEVADA-1.3%
LAS VEGAS VALLEY WATER AUTHORITY
(SNWA Revenue)
Series A
11,000 5/02/00 3.80 11,000,000
TEXAS-1.8%
DALLAS RAPID TRANSIT AUTHORITY
(Sales Tax Revenue)
Series '98B
10,000 5/05/00 3.80 10,000,000
UNIVERSITY OF TEXAS
(Board of Regents Revenue)
Series A
5,000 5/10/00 3.96 5,000,000
----------------
15,000,000
VIRGINIA-1.0%
NORFOLK IDA
(Sentara Hospital)
8,000 5/05/00 3.90 8,000,000
Total Commercial Paper
(amortized cost $43,200,000) 43,200,000
TOTAL INVESTMENTS-99.6%
(amortized cost $827,825,977) 827,825,977
Other assets less liabilities-0.4% 3,452,688
NET ASSETS-100%
(offering and redemption
price of $1.00 per share;
406,945,000 Class A shares,
375,323,930 Class B shares
and 49,093,230 Class C
shares outstanding) $ 831,278,665
See Glossary of Terms on page 18.
See notes to financial statements.
12
STATEMENT OF NET ASSETS
APRIL 30, 2000 ALLIANCE INSTITUTIONAL RESERVES - TRUST PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY YIELD VALUE
-------------------------------------------------------------------------------
COMMERCIAL PAPER-52.6%
ABBEY NATIONAL NA
$ 7,000 6/27/00 6.11% $ 6,932,281
6,000 9/28/00 6.24 5,844,000
AEGON FUNDING CORP. N.V.
7,000 6/27/00 6.12 6,932,170
4,000 9/26/00 6.23 3,897,551
AMERICAN GENERAL CORP.
3,000 5/19/00 6.07 2,990,895
AMERICAN GENERAL FINANCE
2,000 5/15/00 6.05 1,995,294
4,000 6/29/00 6.09 3,960,077
ASSET BACKED CAPITAL FINANCE
6,000 6/26/00 (a) 6.10 5,943,067
ASSET SECURITIZATION CORP.
10,000 5/15/00 (a) 6.07 9,976,394
1,500 6/15/00 (a) 6.08 1,488,600
ASSOCIATES CORP. B.V.
11,000 5/15/00 5.91 10,974,718
ASSOCIATES CORP. OF NORTH AMERICA
2,000 5/18/00 6.07 1,994,267
BAA PLC
6,635 5/17/00 6.05 6,617,159
BANQUE CAISSE D'EPARGNE L'ETAT
35,000 5/15/00 5.90 34,919,694
BARTON CAPITAL CORP.
5,000 5/22/00 (a) 6.08 4,982,267
CBA (FINANCE) DELAWARE, INC.
10,000 5/01/00 6.08 10,000,000
CENTRIC CAPITAL CORP.
10,000 5/15/00 (a) 6.05 9,976,472
CIT GROUP, INC.
4,000 6/26/00 6.08 3,962,169
4,000 6/27/00 6.08 3,961,493
4,000 6/27/00 6.10 3,961,367
CLIPPER RECEIVABLES CORP.
10,000 5/23/00 (a) 6.09 9,962,783
CONCORD MINUTE-A
4,000 7/10/00 (a) 6.15 3,952,167
CORPORATE ASSET FUNDING CORP.
3,000 6/22/00 (a) 6.08 2,973,653
CORPORATE RECEIVABLES CORP.
4,000 5/22/00 (a) 6.03 3,985,930
CS FIRST BOSTON, INC.
6,800 6/13/00 (a) 6.07 6,750,698
CXC, INC.
4,000 5/22/00 (a) 6.03 3,985,930
DAIMLERCHRYSLER CORP.
6,000 5/22/00 6.05 5,978,825
6,000 6/28/00 6.08 5,941,227
DEN DANSKE BANK
5,000 5/18/00 5.90 4,986,069
5,000 5/15/00 6.02 4,988,295
EXXON PROJECT
30,000 5/15/00 6.05 29,929,417
FOUR WINDS FUNDING CORP.
4,000 6/21/00 (a) 6.15 3,965,150
GALAXY FUNDING, INC.
8,000 5/08/00 (a) 6.10 7,990,511
4,000 5/25/00 (a) 6.25 3,983,333
GENERAL MOTORS ACCEPTANCE CORP.
12,000 6/28/00 6.09 11,882,260
GOLDEN FUNDING CORP.
2,765 5/16/00 6.08 2,757,996
2,000 5/15/00 6.09 1,995,263
GOLDMAN SACHS GROUP L.P.
12,000 5/22/00 6.05 11,957,650
GOTHAM FUNDING
6,000 5/02/00 (a) 6.13 5,998,978
GOVERNMENT DEVELOPMENT
BANK OF PUERTO RICO
10,000 5/05/00 6.04 9,993,289
GREENWICH FUNDING CORP.
9,999 5/15/00 (a) 6.04 9,975,514
ING INSURANCE HOLDINGS, INC.
10,000 5/10/00 5.91 9,985,225
3,000 5/19/00 6.03 2,990,955
LEXINGTON PARKER CAPITAL CORP.
4,000 5/15/00 (a) 6.07 3,990,558
MARKET STREET FUNDING CORP.
5,000 5/17/00 (a) 6.05 4,986,556
MARSH USA, INC.
10,000 5/15/00 5.90 9,977,056
MORGAN STANLEY DEAN WITTER
4,500 6/15/00 6.07 4,465,856
NATIONAL CITY CORP.
12,000 5/15/00 6.04 11,971,813
NATIONAL RURAL UTILITY CORP.
8,000 6/15/00 6.10 7,939,000
PREFERRED RECEIVABLES FUNDING
7,630 5/15/00 (a) 6.08 7,611,959
6,000 5/22/00 (a) 6.09 5,978,685
PRIVATE EXPORT FUNDING CORP.
25,000 6/30/00 6.10 24,745,833
13
STATEMENT OF NET ASSETS
(CONTINUED) ALLIANCE INSTITUTIONAL RESERVES - TRUST PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY YIELD VALUE
-------------------------------------------------------------------------------
ROYAL BANK OF SCOTLAND
$ 9,000 5/15/00 6.03% $ 8,978,895
SANTANDER FINANCE
11,000 5/15/00 5.90 10,974,761
2,000 6/28/00 6.12 1,980,280
THAMES ASSET GLOBAL
SECURITIZATION
10,000 5/15/00 (a) 5.91 9,977,017
WAL-MART STORES, INC.
9,494 5/16/00 6.03 9,470,146
WESTWAYS FUNDING V, LTD.
7,000 5/09/00 (a) 6.09 6,990,527
WINDMILL FUNDING CORP.
3,000 6/26/00 (a) 6.15 2,971,300
Total Commercial Paper
(amortized cost $441,231,295) 441,231,295
CERTIFICATES OF DEPOSIT-19.5%
BARCLAYS BANK PLC FRN
10,000 6.16%, 6/14/00 6.21 9,999,417
DEUTSCHE BANK
10,000 5.44%, 6/01/00 5.49 9,999,592
6,000 6.03%, 3/13/01 FRN 6.07 5,997,956
DRESDNER BANK AG
16,000 6.46%, 12/11/00 6.46 16,000,000
FIRST UNION NATIONAL BANK FRN
9,000 6.16%, 8/29/00 6.05 9,002,682
LLOYDS BANK PLC
4,000 6.20%, 6/29/00 6.20 4,000,000
NATIONAL WESTMINSTER BANK
5,000 5.67%, 7/05/00 5.71 4,999,659
NORDEUTSCHE LANDESBANK
5,000 5.26%, 5/18/00 5.30 4,999,910
5,000 6.20%, 12/01/00 6.27 4,998,044
RABOBANK NEDERLAND
5,000 6.68%, 2/12/01 6.71 4,998,694
ROYAL BANK OF CANADA
20,000 5.86%, 8/09/00 5.90 19,997,904
SAN PAOLO-IMI
5,000 6.02%, 6/07/00 6.02 5,000,000
7,000 6.21%, 6/30/00 6.21 7,000,000
SOUTHTRUST BANK
4,000 5.98%, 5/16/00 5.98 4,000,000
8,000 6.20%, 6/15/00 6.20 8,000,000
SVENSKA HANDELSBANKEN
10,000 6.01%, 5/08/00 6.01 10,000,000
UBS FINANCE DELAWARE
10,000 5.22%, 5/10/00 5.27 9,999,905
5,000 5.34%, 5/30/00 5.39 4,999,809
5,000 5.36%, 5/30/00 5.61 4,998,985
U.S. BANK NA FRN
10,000 6.17%, 8/28/00 6.17 10,000,000
WACHOVIA BANK NA
4,500 5.95%, 9/11/00 5.95 4,500,000
Total Certificates of Deposit
(amortized cost $163,492,557) 163,492,557
CORPORATE OBLIGATIONS-15.8%
ALLSTATE LIFE INSURANCE
FUNDING AGREEMENT FRN
5,000 6.18%, 8/31/00 (b) 6.18 5,000,000
ASSET BACKED CAPITAL
6,000 6.17%, 11/15/00 FRN (a) 6.17 6,000,000
4,000 6.80%, 2/07/01 MTN (a) 6.80 4,000,000
BETA FINANCE, INC. FRN
12,000 6.73%, 9/15/00 (a) 6.73 12,000,000
CENTAURI CORP. USA, INC. FRN
11,000 6.74%, 9/08/00 (a) 6.74 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 6.13%, 6/01/00 6.13 10,000,000
MERRILL LYNCH & CO., INC. MTN
16,000 6.11%, 4/12/01 6.13 15,998,475
METLIFE FUNDING AGREEMENT FRN
11,000 6.37%, 10/01/00 6.37 11,000,000
PRUDENTIAL INSURANCE CO. OF
AMERICA FRN
4,000 6.14%, 11/30/00 6.14 4,000,000
SIGMA FINANCE, INC. FRN
10,000 6.16%, 6/30/00 (a) 6.16 10,000,000
12,000 6.26%, 6/29/00 (a) 6.26 12,000,000
TOYOTA MOTOR CREDIT CORP. FRN
10,000 6.66%, 9/21/00 6.66 10,000,000
TRAVELERS LIFE FUNDING
AGREEMENT FRN
5,000 6.11%, 1/15/01 (b) 6.11 5,000,000
5,000 6.20%, 7/21/00 (b) 6.20 5,000,000
Total Corporate Obligations
(amortized cost $132,998,475) 132,998,475
TIME DEPOSITS-5.6%
STATE STREET BANK AND TRUST CO.
26,800 5.88%, 5/01/00 5.88 26,800,000
SUNTRUST BANK
20,000 6.03%, 5/01/00 6.03 20,000,000
Total Time Deposits
(amortized cost $46,800,000) 46,800,000
14
ALLIANCE INSTITUTIONAL RESERVES - TRUST PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY YIELD VALUE
-------------------------------------------------------------------------------
U.S. GOVERNMENT & AGENCY
OBLIGATIONS-4.6%
FEDERAL HOME LOAN BANK
$ 10,000 6.13%, 10/16/00 FRN 6.23% $ 9,995,301
10,000 6.40%, 2/09/01 MTN 6.42 9,998,223
FEDERAL NATIONAL MORTGAGE
ASSOCIATION FRN MTN
9,000 6.48%, 10/05/00 6.53 8,998,112
STUDENT LOAN MARKETING
ASSOCIATION FRN
10,000 6.48%, 10/04/00 6.53 9,997,916
Total U.S. Government &
Agency Obligations
(amortized cost $38,989,552) 38,989,552
BANK OBLIGATIONS-2.4%
AMERICAN EXPRESS CENTURION
BANK FRN
10,000 6.30%, 5/04/00 6.30 10,000,000
LASALLE NATIONAL BANK NA
10,000 6.50%, 10/30/00 6.50 10,000,000
Total Bank Obligations
(amortized cost $20,000,000) 20,000,000
TOTAL INVESTMENTS-100.5%
(amortized cost $843,511,879) 843,511,879
Other assets less liabilities-(0.5%) (4,218,069)
NET ASSETS-100%
(offering and redemption
price of $1.00 per share;
839,325,179 Class A shares
outstanding) $ 839,293,810
See Glossary of Terms on page 18.
See notes to financial statements.
15
STATEMENT OF NET ASSETS
APRIL 30, 2000 ALLIANCE INSTITUTIONAL RESERVES - TREASURY PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY YIELD VALUE
-------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS-29.6%
U.S. TREASURY NOTES-22.0%
$ 1,500 5.875%, 6/30/00 5.39% $ 1,501,006
4,000 5.50%, 5/31/00 5.52 3,999,596
65,000 6.375%, 5/15/00 5.77 65,016,486
18,000 5.375%, 6/30/00 5.80 17,983,421
5,000 5.125%, 8/31/00 5.91 4,985,470
1,000 4.50%, 9/30/00 5.99 993,527
1,000 4.00%, 10/31/00 6.07 989,677
1,000 4.625%, 11/30/00 6.23 990,693
----------------
96,459,876
U.S. TREASURY BILLS-7.6%
500 5/11/00 5.37 499,274
500 5/04/00 5.56 499,773
500 5/04/00 5.59 499,772
500 5/11/00 5.59 499,239
5,000 5/11/00 5.65 4,992,264
500 5/25/00 5.70 498,145
5,000 6/08/00 5.75 4,969,943
5,000 6/15/00 5.75 4,964,500
15,000 6/29/00 5.80 14,859,383
1,000 8/10/00 5.94 983,828
----------------
33,266,121
Total U.S. Government Obligations
(amortized cost $129,725,997) 129,725,997
REPURCHASE AGREEMENTS-69.8%
ABN AMRO
17,000 5.88%, dated 4/14/00, due
5/15/00 in the amount of
$17,086,077 (cost $17,000,000;
collateralized by $11,729,000
U.S. Treasury Bond,
11.25%, 2/15/15,
value $17,426,410) (c) 5.88 17,000,000
BARCLAYS DE ZOETE
WEDD SECURITIES, INC.
21,000 5.72%, dated 4/28/00, due
5/01/00 in the amount of
$21,010,010 (cost $21,000,000;
collateralized by $18,055,000
U.S. Treasury Bond,
10.375%, 11/15/09,
value $21,426,000) (c) 5.72 21,000,000
BEAR STEARNS & CO.
16,000 5.92%, dated 4/11/00, due
5/02/00 in the amount of
$16,055,253 (cost $16,000,000;
collateralized by $11,300,000
U.S. Treasury Bond,
10.625%, 8/15/15
value $16,211,777 and
$195,000 U.S. Treasury Note,
8.00%, 5/15/01,
value $279,761) (c) 5.92 16,000,000
CHASE SECURITIES, INC.
21,000 5.65%, dated 4/28/00, due
5/01/00 in the amount of
$21,009,888 (cost $21,000,000;
collateralized by $22,580,000
U.S. Treasury Note,
4.75%, 2/15/04,
value $21,444,000) 5.65 21,000,000
CS FIRST BOSTON CORP.
17,000 5.88%, dated 4/14/00, due
5/15/00 in the amount of
$17,086,077 (cost $17,000,000;
collateralized by $13,845,000
U.S. Treasury Bond,
8.00%, 11/15/21,
value $17,149,553 and
$165,000 U.S. Treasury Note
6.875%, 8/15/25,
value $180,734) (c) 5.88 17,000,000
DEUTSCHE BANK
21,000 5.69%, dated 4/28/00, due
5/01/00 in the amount of
$21,009,958 (cost $21,000,000;
collateralized by $15,000,000
U.S. Treasury Note,
10.625%, 8/15/15,
value $21,500,000) 5.69 21,000,000
DRESDNER BANK AG
21,000 5.50%, dated 4/28/00, due
5/01/00 in the amount of
$21,009,625 (cost $21,000,000;
collateralized by $21,881,000
U.S. Treasury Bills,
1.00%, 9/07/00,
value $21,416,000) 5.50 21,000,000
FIRST CHICAGO CORP.
21,000 5.70%, dated 4/28/00, due
5/01/00 in the amount of
$21,009,975 (cost $21,000,000;
collateralized by $16,116,000
U.S Treasury Note, 5.125%,
8/31/00, value $16,193,000
and $5,413,000,
U.S. Treasury Note,
5.625%, 2/15/06,
value $5,252,000) 5.70 21,000,000
16
STATEMENT OF NET ASSETS
(CONTINUED) ALLIANCE INSTITUTIONAL RESERVES - TREASURY PORTFOLIO
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY YIELD VALUE
-------------------------------------------------------------------------------
GOLDMAN SACHS & CO.
$ 21,000 5.66%, dated 4/28/00, due
5/01/00 in the amount of
$21,009,905 (cost $21,000,000;
collateralized by $14,825,000
U.S. Treasury Bond,
14.00%, 11/15/11,
value $21,448,000) 5.66% $ 21,000,000
GREENWICH FUNDING CORP.
21,000 5.70%, dated 4/28/00, due
5/01/00 in the amount of
$21,009,975 (cost $21,000,000;
collateralized by $21,270,000
U.S. Treasury Note,
5.25%, 5/31/01,
value $21,448,000) 5.70 21,000,000
MORGAN STANLEY DEAN WITTER
17,000 5.90%, dated 4/11/00, due
5/11/00 in the amount of
$17,083,583 (cost $17,000,000;
collateralized by $13,320,000
U.S Treasury Bond,
8.875%, 8/15/17,
value $17,090,546 and
$140,000 U.S. Treasury Note,
8.00%, 5/15/01,
value $147,034 and
$200,000 U.S. Treasury Note,
7.50%, 11/15/01,
value $209,038) (c) 5.90 17,000,000
NATIONSBANC MONTGOMERY SECURITIES
21,000 5.68%, dated 4/28/00, due
5/01/00 in the amount of
$21,009,940 (cost $21,000,000;
collateralized by $21,200,000
U.S. Treasury Bond,
6.00%, 8/15/00,
value $21,452,000) 5.68 21,000,000
PARIBAS CORP.
17,000 5.91%, dated 4/12/00, due
5/12/00 in the amount of
$17,083,725 (cost $17,000,000;
collateralized by $13,263,000
U.S. Treasury Bond,
8.75%, 5/15/17,
value $17,099,088 and
$200,000 U.S. Treasury Note,
8.125%, 5/15/21,
value $249,911 and
$200,000 U.S. Treasury Note,
5.50%, 8/15/28,
value $183,963) (c) 5.91 17,000,000
SALOMON SMITH BARNEY, INC.
20,000 5.75%, dated 4/27/00, due
5/01/00 in the amount of
$20,012,778 (cost $20,000,000;
collateralized by $14,385,000
U.S. Treasury Bond,
13.875%, 5/15/11,
value $20,410,685) 5.75% $20,000,000
STATE STREET BANK AND TRUST CO.
18,700 5.63%, dated 4/28/00, due
5/01/00 in the amount of
$18,708,773 (cost $18,700,000;
collateralized by $18,910,000
U.S. Treasury Note,
6.375%, 1/31/02,
value $19,075,463) 5.63 18,700,000
WARBURG SECURITIES
16,000 5.90%, dated 4/13/00, due
5/15/00 in the amount of
$16,083,911 (cost $16,000,000;
collateralized by $13,502,000
U.S. Treasury Bond,
7.875%, 2/15/21,
value $16,183,367 and
$190,000 U.S. Treasury Note,
9.25%, 2/15/16,
value $248,082) (c) 5.90 16,000,000
Total Repurchase Agreements
(amortized cost $306,700,000) 306,700,000
TOTAL INVESTMENTS-99.4%
(amortized cost $436,425,997) 436,425,997
Other assets less liabilities-0.6% 2,747,634
NET ASSETS-100%
(offering and redemption
price of $1.00 per share;
3,893,994 Class A shares,
85,363,948 Class B shares
and 349,911,383 Class C
shares outstanding) $ 439,173,631
See Glossary of Terms on page 18.
See notes to financial statements.
17
STATEMENT OF NET ASSETS
(CONTINUED) 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 April
30, 2000, these securities amounted to $1,086,376,310, representing 28.5% of
net assets on the Prime Portfolio, and $205,398,049, representing 24.5% of net
assets on the Trust Portfolio.
(b) Funding agreements are illiquid securities subject to restrictions as to
resale. These securities amounted to $75,000,000, representing 2.0% of net
assets on the Prime Portfolio, and $15,000,000, representing 1.8% of net assets
on the Trust Portfolio (see Note A to the financial statements).
(c) Repurchase agreement which is terminable within 7 days.
(d) 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.
(f) Illiquid security amounted to $20,000,000 representing 3.1% of net assets
on the Government Portfolio.
Glossary of Terms:
AMT - Alternative Minimum Tax
FHLB - Federal Home Loan Bank
FHLMC - Federal Home Loan Mortgage Corporation
FHLMDN - Federal Home Loan Mortgage Discount Note
FNMA - Federal National Mortgage Association
FRN - Floating Rate Note
GNMA - Government National Mortgage Association
GO - General Obligation
HEFA - Health & Educational Facility Authority
HFA - Housing Finance Agency/Authority
IDA - Industrial Development Authority
IDB - Industrial Development Board
IDR - Industrial Development Revenue
MFHR - Multi-Family Housing Revenue
MTN - Medium Term Note
PCR - Pollution Control Revenue
SFMR - Single Family Mortgage Revenue
TRAN - Tax & Revenue Anticipation Note
USTN - United States Treasury Notes
See notes to financial statements.
18
STATEMENT OF OPERATIONS
YEAR ENDED APRIL 30, 2000 ALLIANCE INSTITUTIONAL RESERVES
_______________________________________________________________________________
PRIME GOVERNMENT TAX-FREE
PORTFOLIO PORTFOLIO PORTFOLIO
--------------- ------------- -------------
INVESTMENT INCOME
Interest $ 186,050,063 $ 37,239,126 $ 21,376,865
EXPENSES
Advisory fee (Note B) 6,579,298 1,354,952 1,167,284
Distribution fee - Class B 1,344,851 220,995 290,124
Distribution fee - Class C 156,865 32,194 74,026
Registration 809,400 192,920 207,773
Custodian 368,115 181,766 148,935
Audit and legal 94,711 23,135 22,668
Printing 69,253 14,116 13,108
Transfer agency 37,350 31,958 23,986
Directors' fees 12,500 5,400 5,400
Miscellaneous 15,856 3,887 2,709
Total expenses 9,488,199 2,061,323 1,956,013
Less: expense reimbursement (1,407,184) (453,182) (424,617)
Net expenses 8,081,015 1,608,141 1,531,396
Net investment income 177,969,048 35,630,985 19,845,469
REALIZED GAIN (LOSS) ON
INVESTMENTS
Net realized gain (loss) on
investment transactions 29,650 (6,628) -0-
NET INCREASE IN NET ASSETS
FROM OPERATIONS $ 177,998,698 $ 35,624,357 $ 19,845,469
See notes to financial statements.
19
STATEMENT OF OPERATIONS
(CONTINUED) ALLIANCE INSTITUTIONAL RESERVES
_______________________________________________________________________________
TRUST TREASURY
PORTFOLIO PORTFOLIO
------------- -------------
INVESTMENT INCOME
Interest $ 42,380,394 $ 13,352,577
EXPENSES
Advisory fee (Note B) 3,385,399 488,765
Distribution fee - Class B -0- 65,929
Distribution fee - Class C -0- 437,214
Registration 216,064 123,934
Custodian 198,259 152,943
Audit and legal 28,216 14,130
Transfer agency 23,976 19,455
Printing 18,667 7,876
Directors' fees 12,500 5,400
Miscellaneous 4,485 1,891
Total expenses 3,887,566 1,317,537
Less: expense reimbursement (126,012) (325,623)
Net expenses 3,761,554 991,914
Net investment income 38,618,840 12,360,663
REALIZED GAIN ON INVESTMENTS
Net realized gain on
investment transactions 8,395 6,649
NET INCREASE IN NET ASSETS
FROM OPERATIONS $ 38,627,235 $ 12,367,312
See notes to financial statements.
20
STATEMENT OF CHANGES IN NET ASSETS ALLIANCE INSTITUTIONAL RESERVES
_______________________________________________________________________________
<TABLE>
<CAPTION>
PRIME PORTFOLIO GOVERNMENT PORTFOLIO
------------------------------ -----------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
APRIL 30, 2000 APRIL 30, 1999 APRIL 30, 2000 APRIL 30, 1999
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS FROM OPERATIONS
Net investment income $ 177,969,048 $ 110,356,958 $ 35,630,985 $ 21,239,747
Net realized gain (loss)
on investment transactions 29,650 46,911 (6,628) 189
Net increase in net assets
from operations 177,998,698 110,403,869 35,624,357 21,239,936
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income
Class A (101,483,436) (99,429,944) (23,500,642) (18,006,917)
Class B (73,168,580) (9,997,982) (11,472,793) (3,119,916)
Class C (3,317,032) (929,032) (657,550) (112,914)
CAPITAL STOCK TRANSACTIONS
Net increase 1,569,646,842 480,524,899 121,768,887 259,233,401
Total increase 1,569,676,492 480,571,810 121,762,259 259,233,590
NET ASSETS
Beginning of year 2,245,264,668 1,764,692,858 533,694,965 274,461,375
End of year $ 3,814,941,160 $2,245,264,668 $655,457,224 $533,694,965
</TABLE>
See notes to financial statements.
21
STATEMENT OF CHANGES IN NET ASSETS
(CONTINUED) ALLIANCE INSTITUTIONAL RESERVES
_______________________________________________________________________________
<TABLE>
<CAPTION>
TAX-FREE PORTFOLIO TRUST PORTFOLIO
------------------------------ -----------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
APRIL 30, 2000 APRIL 30, 1999 APRIL 30, 2000 APRIL 30, 1999
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS FROM OPERATIONS
Net investment income $ 19,845,469 $ 12,818,592 $ 38,618,840 $ 23,966,420
Net realized gain on
investment transactions -0- -0- 8,395 3,996
Net increase in net assets
from operations 19,845,469 12,818,592 38,627,235 23,970,416
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income
Class A (9,112,022) (10,300,293) (38,618,840) (23,966,420)
Class B (9,775,850) (2,487,651) -0- -0-
Class C (957,597) (30,648) -0- -0-
CAPITAL STOCK TRANSACTIONS
Net increase 380,308,933 157,206,086 44,255,845 404,533,541
Total increase 380,308,933 157,206,086 44,264,240 404,537,537
NET ASSETS
Beginning of year 450,969,732 293,763,646 795,029,570 390,492,033
End of year $ 831,278,665 $ 450,969,732 $ 839,293,810 $ 795,029,570
</TABLE>
See notes to financial statements.
22
ALLIANCE INSTITUTIONAL RESERVES
_______________________________________________________________________________
TREASURY PORTFOLIO
----------------------------------
YEAR ENDED PERIOD ENDED
APRIL 30, 2000 APRIL 30, 1999(A)
-------------- -----------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
Net investment income $ 12,360,663 $ 1,134,136
Net realized gain (loss)
on investment transactions 6,649 (2,192)
Net increase in net assets
from operations 12,367,312 1,131,944
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income
Class A (179,288) (333,222)
Class B (3,325,008) (178,256)
Class C (8,856,367) (622,809)
CAPITAL STOCK TRANSACTIONS
Net increase 387,134,645 52,034,680
Total increase 387,141,294 52,032,337
NET ASSETS
Beginning of period 52,032,337 -0-
End of period $ 439,173,631 $ 52,032,337
(a) Commencement of operations, June 29, 1998.
See notes to financial statements.
23
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 2000 ALLIANCE INSTITUTIONAL RESERVES
_______________________________________________________________________________
NOTE A: SIGNIFICANT ACCOUNTING POLICIES
Alliance Institutional Reserves, Inc. (the "Fund") is registered under the
Investment Company Act of 1940 as an open-end investment company. The Fund
operates as a series company currently consisting of 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 on tax-exempt
securities is credited to unrealized gain.
2. TAXES
It is the Fund's policy to meet the requirements of the Internal Revenue Code
applicable to regulated investment companies and to distribute all of its
investment company taxable income and net realized gains, if any, to its
shareholders. Therefore, no provisions for federal income or excise taxes are
required.
3. INVESTMENT INCOME AND INVESTMENT TRANSACTIONS
Interest income is accrued daily. Investment transactions are recorded on the
date securities are purchased or sold. Investment gains and losses are
determined on the identified cost basis.
4. DIVIDENDS
The Fund declares dividends daily from net investment income and automatically
reinvests such dividends in additional shares at net asset value. Net realized
capital gains on investments, if any, are expected to be distributed near year
end. Dividends paid by Tax-Free Portfolio from net investment income for the
year ended April 30, 2000 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 year ended April 30, 2000, 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 year
ended April 30, 2000, reimbursement was $1,407,184, $453,182, $424,617,
$126,012 and $325,623 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 $18,000
per Portfolio, for the year ended April 30, 2000.
For the year ended April 30, 2000, the Fund's expenses were reduced by $1,196,
$454, $213, $526 and $305 for the Prime, Government, Tax-Free, Trust and
Treasury Portfolios, respectively under an expense offset arrangement with
Alliance Fund Services, Inc.
24
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. Alliance Fund
Distributors, Inc. (the "Distributor"), a wholly-owned subsidiary of the
Adviser, serves as the Distributor of the Fund's shares. 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, Tax-Free and Treasury Portfolios and
.25 of 1% of the aggregate average daily net assets attributable to Class C
shares of the Prime, Government, Tax-Free and Treasury 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 April 30, 2000, the cost of investments for federal income tax purposes was
the same as the cost for financial reporting purposes for all Portfolios. At
April 30, 2000 the Treasury Portfolio had accumulated undistributed net
realized gains of $4,306. For federal income tax purposes, the Prime Portfolio
had a capital loss carryforward available to offset future gains at April 30,
2000 of $107,159, of which $41,405 expires in 2003, $40,007 in 2004 and $25,747
in the year 2005; the Government Portfolio had a capital loss carryforward of
$131,144, of which $8,540 expires in 2001, $51,091 in 2002, $23,230 in 2003,
$30,512 in 2004, $16,002 in the year 2005 and $1,769 in the year 2008; the
Tax-Free Portfolio had a capital loss carryforward of $83,495, of which $6,170
expires in 2002, $76,925 in 2004, and $400 in 2005; the Trust Portfolio had a
capital loss carryforward of $31,369, of which $29,118 expires in 2004, and
$2,251 in the year 2005. At April 30, 2000 the Government Portfolio had
deferred capital losses occurring subsequent to October 31, 1999 of $5,644. For
tax purposes, such losses will be reflected in the year ending April 30, 2001.
NOTE E: CAPITAL STOCK
There are 75,000,000,000 shares authorized. The Board of Directors on December
6, 1999 approved the reduction of the par value of each share of common stock
from $.01 to $.0005. At April 30, 2000, capital paid-in aggregated
$3,815,048,319 on Prime Portfolio, $655,594,012 on Government Portfolio,
$831,362,160 on Tax-Free Portfolio, $839,325,179 on Trust Portfolio and
$439,169,325 on Treasury Portfolio. Transactions, all at $1.00 per share, were
as follows:
PRIME PORTFOLIO
---------------------------------
YEAR ENDED YEAR ENDED
APRIL 30, APRIL 30,
2000 1999
-------------- ---------------
CLASS A
Shares sold 17,432,935,021 23,622,009,804
Shares issued on reinvestments
of dividends 101,483,436 99,429,944
Shares redeemed (17,416,989,217) (23,815,300,171)
Net increase (decrease) 117,429,240 (93,860,423)
25
NOTES TO FINANCIAL STATEMENTS (CONTINUED) ALLIANCE INSTITUTIONAL RESERVES
_______________________________________________________________________________
PRIME PORTFOLIO
---------------------------------
YEAR ENDED AUGUST 14, 1998*
APRIL 30, TO
2000 APRIL 30, 1999
-------------- ---------------
CLASS B
Shares sold 11,185,317,273 2,348,283,090
Shares issued on reinvestments
of dividends 73,168,580 9,997,982
Shares redeemed (9,923,263,140) (1,822,214,093)
Net increase 1,335,222,713 536,066,979
YEAR ENDED JULY 13, 1998*
APRIL 30, TO
2000 APRIL 30, 1999
-------------- ---------------
CLASS C
Shares sold 342,712,572 103,018,527
Shares issued on reinvestments
of dividends 3,317,032 929,032
Shares redeemed (229,034,715) (65,629,216)
Net increase 116,994,889 38,318,343
GOVERNMENT PORTFOLIO
--------------------------------
YEAR ENDED YEAR ENDED
APRIL 30, APRIL 30,
2000 1999
-------------- ---------------
CLASS A
Shares sold 3,762,833,361 2,628,953,985
Shares issued on reinvestments
of dividends 23,500,642 18,006,917
Shares redeemed (3,738,467,442) (2,527,052,342)
Net increase 47,866,561 119,908,560
YEAR ENDED AUGUST 7, 1998*
APRIL 30, TO
2000 APRIL 30, 1999
-------------- ---------------
CLASS B
Shares sold 1,412,214,581 333,938,088
Shares issued on reinvestments
of dividends 11,472,793 3,119,916
Shares redeemed (1,362,097,417) (200,956,657)
Net increase 61,589,957 136,101,347
YEAR ENDED OCTOBER 21, 1998*
APRIL 30, TO
2000 APRIL 30, 1999
-------------- ---------------
CLASS C
Shares sold 63,951,836 17,279,127
Shares issued on reinvestments
of dividends 657,550 112,914
Shares redeemed (52,297,017) (14,168,547)
Net increase 12,312,369 3,223,494
* Commencement of distribution.
26
ALLIANCE INSTITUTIONAL RESERVES
_______________________________________________________________________________
TAX-FREE PORTFOLIO
--------------------------------
YEAR ENDED YEAR ENDED
APRIL 30, APRIL 30,
2000 1999
-------------- ---------------
CLASS A
Shares sold 1,542,876,825 2,015,274,013
Shares issued on reinvestments
of dividends 9,112,022 10,300,293
Shares redeemed (1,401,140,709) (2,063,324,585)
Net increase (decrease) 150,848,138 (37,750,279)
YEAR ENDED AUGUST 17, 1998*
APRIL 30, TO
2000 APRIL 30, 1999
-------------- ---------------
CLASS B
Shares sold 966,284,862 618,511,568
Shares issued on reinvestments
of dividends 9,775,850 2,487,651
Shares redeemed (793,467,000) (428,269,001)
Net increase 182,593,712 192,730,218
YEAR ENDED SEPTEMBER 8, 1998*
APRIL 30, TO
2000 APRIL 30, 1999
-------------- ---------------
CLASS C
Shares sold 206,824,311 10,344,376
Shares issued on reinvestments
of dividends 957,597 30,648
Shares redeemed (160,914,825) (8,148,877)
Net increase 46,867,083 2,226,147
TRUST PORTFOLIO
--------------------------------
YEAR ENDED YEAR ENDED
APRIL 30, APRIL 30,
2000 1999
-------------- ---------------
CLASS A
Shares sold 3,025,202,725 2,122,594,704
Shares issued on reinvestments
of dividends 38,618,840 23,966,420
Shares redeemed (3,019,565,720) (1,742,027,583)
Net increase 44,255,845 404,533,541
TREASURY PORTFOLIO
--------------------------------
YEAR ENDED JUNE 29, 1998*
APRIL 30, TO
2000 APRIL 30, 1999
-------------- ---------------
CLASS A
Shares sold 7,883,277 19,859,145
Shares issued on reinvestments
of dividends 179,288 333,222
Shares redeemed (8,236,056) (16,124,882)
Net increase (decrease) (173,491) 4,067,485
* Commencement of distribution.
27
NOTES TO FINANCIAL STATEMENTS (CONTINUED) ALLIANCE INSTITUTIONAL RESERVES
_______________________________________________________________________________
TREASURY PORTFOLIO
--------------------------------
YEAR ENDED DECEMBER 31, 1998*
APRIL 30, TO
2000 APRIL 30, 1999
-------------- ---------------
CLASS B
Shares sold 134,376,295 40,092,172
Shares issued on reinvestments
of dividends 3,325,008 178,256
Shares redeemed (67,223,121) (25,384,662)
Net increase 70,478,182 14,885,766
YEAR ENDED OCTOBER 15, 1998*
APRIL 30, TO
2000 APRIL 30, 1999
-------------- ---------------
CLASS C
Shares sold 1,668,329,779 131,076,991
Shares issued on reinvestments
of dividends 8,856,367 622,809
Shares redeemed (1,360,356,192) (98,618,371)
Net increase 316,829,954 33,081,429
* Commencement of distribution.
28
FINANCIAL HIGHLIGHTS ALLIANCE INSTITUTIONAL RESERVES
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
PRIME PORTFOLIO
-----------------------------------------------------------------
CLASS A
-----------------------------------------------------------------
YEAR ENDED APRIL 30,
2000 1999 1998 1997 1996
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (a) .0540 .0518 .0552 .0530 .0560
LESS: DIVIDENDS
Dividends from net investment income (.0540) (.0518) (.0552) (.0530) (.0560)
Net asset value, end of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
TOTAL RETURN
Total investment return based on
net asset value (b) 5.54% 5.31% 5.68% 5.44% 5.76%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (in millions) $1,788 $1,671 $1,765 $867 $493
Ratios to average net assets of:
Expenses, net of waivers and
reimbursements .20% .20% .20% .20% .20%
Expenses, before waivers and
reimbursements .24% .24% .24% .29% .32%
Net investment income (a) 5.39% 5.16% 5.52% 5.31% 5.54%
</TABLE>
PRIME PORTFOLIO
-------------------------
CLASS B
-------------------------
AUGUST 14,
YEAR 1998(c)
ENDED TO
APRIL 30, APRIL 30,
2000 1999
---------- ----------
Net asset value, beginning of period $ 1.00 $ 1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (a) .0530 .0358
LESS: DIVIDENDS
Dividends from net investment income (.0530) (.0358)
Net asset value, end of period $ 1.00 $ 1.00
TOTAL RETURN
Total investment return based on
net asset value (b) 5.44% 3.65%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $1,871 $536
Ratios to average net assets of:
Expenses, net of waivers and
reimbursements .30% .30%(d)
Expenses, before waivers and
reimbursements .34% .36%(d)
Net investment income (a) 5.44% 4.82%(d)
See footnote summary on page 37.
29
FINANCIAL HIGHLIGHTS (CONTINUED) ALLIANCE INSTITUTIONAL RESERVES
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
PRIME PORTFOLIO
-------------------------
CLASS C
-------------------------
JULY 13,
YEAR 1998(c)
ENDED TO
APRIL 30, APRIL 30,
2000) 1999
---------- ----------
Net asset value, beginning of period $ 1.00 $ 1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (a) .0515 .0392
LESS: DIVIDENDS
Dividends from net investment income (0515) (.0392)
Net asset value, end of period $ 1.00 $ 1.00
TOTAL RETURN
Total investment return based on
net asset value (b) 5.28% 3.86%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $155 $38
Ratios to average net assets of:
Expenses, net of waivers and
reimbursements .45% .45%(d)
Expenses, before waivers and
reimbursements .50% .51%(d)
Net investment income (a) 5.29% 4.70%(d)
See footnote summary on page 37.
30
ALLIANCE INSTITUTIONAL RESERVES
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
GOVERNMENT PORTFOLIO
-----------------------------------------------------------------
CLASS A
-----------------------------------------------------------------
YEAR ENDED APRIL 30,
2000 1999 1998 1997 1996
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (a) .0527 .0505 .0543 .0519 .0552
LESS: DIVIDENDS
Dividends from net investment income (.0527) (.0505) (.0543) (.0519) (.0552)
Net asset value, end of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
TOTAL RETURN
Total investment return based on
net asset value (b) 5.40% 5.18% 5.58% 5.33% 5.67%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (in millions) $442 $394 $275 $327 $151
Ratios to average net assets of:
Expenses, net of waivers and
reimbursements .20% .20% .20% .20% .20%
Expenses, before waivers and
reimbursements .27% .29% .28% .35% .36%
Net investment income (a) 5.30% 5.01% 5.43% 5.22% 5.50%
</TABLE>
GOVERNMENT PORTFOLIO
----------------------
CLASS B
----------------------
AUGUST 7,
YEAR 1998(c)
ENDED TO
APRIL 30, APRIL 30,
2000 1999
--------- -----------
Net asset value, beginning of period $ 1.00 $ 1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (a) .0516 .0361
LESS: DIVIDENDS
Dividends from net investment income (.0516) (.0361)
Net asset value, end of period $ 1.00 $ 1.00
TOTAL RETURN
Total investment return based on
net asset value (b) 5.29% 3.68%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $198 $136
Ratios to average net assets of:
Expenses, net of waivers and
reimbursements .30% .30%(d)
Expenses, before waivers and
reimbursements .37% .41%(d)
Net investment income (a) 5.19% 4.73%(d)
See footnote summary on page 37.
31
FINANCIAL HIGHLIGHTS (CONTINUED) ALLIANCE INSTITUTIONAL RESERVES
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
GOVERNMENT PORTFOLIO
----------------------
CLASS C
----------------------
OCTOBER 21,
YEAR 1998(c)
ENDED TO
APRIL 30, APRIL 30,
2000 1999
-------- --------
Net asset value, beginning of period $ 1.00 $ 1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (a) .0502 .0243
LESS: DIVIDENDS
Dividends from net investment income (.0502) (.0243)
Net asset value, end of period $ 1.00 $ 1.00
TOTAL RETURN
Total investment return based on
net asset value (b) 5.14% 2.46%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $16 $3
Ratios to average net assets of:
Expenses, net of waivers and
reimbursements .45% .45%(d)
Expenses, before waivers and
reimbursements .52% .56%(d)
Net investment income (a) 5.11% 4.55%(d)
See footnote summary on page 37.
32
ALLIANCE INSTITUTIONAL RESERVES
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
TAX-FREE PORTFOLIO
-----------------------------------------------------------------
CLASS A
-----------------------------------------------------------------
YEAR ENDED APRIL 30,
2000 1999 1998 1997 1996
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (a) .0342 .0321 .0363 .0347 .0372
LESS: DIVIDENDS
Dividends from net investment income (.0342) (.0321) (.0363) (.0347) (.0372)
Net asset value, end of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
TOTAL RETURN
Total investment return based on
net asset value (b) 3.47% 3.26% 3.70% 3.53% 3.79%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (in millions) $407 $256 $294 $183 $184
Ratios to average net assets of:
Expenses, net of waivers and
reimbursements .20% .20% .20% .20% .20%
Expenses, before waivers and
reimbursements .28% .28% .28% .33% .48%
Net investment income (a) 3.45% 3.22% 3.61% 3.46% 3.73%
</TABLE>
TAX-FREE PORTFOLIO
----------------------
CLASS B
----------------------
AUGUST 17,
YEAR 1998(c)
ENDED TO
APRIL 30, APRIL 30,
2000 1999
-------- ---------
Net asset value, beginning of period $ 1.00 $ 1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (a) .0333 .0210
LESS: DIVIDENDS
Dividends from net investment income (.0333) (.0210)
Net asset value, end of period $ 1.00 $ 1.00
TOTAL RETURN
Total investment return based on
net asset value (b) 3.37% 2.13%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $375 $193
Ratios to average net assets of:
Expenses, net of waivers and
reimbursements .30% .30%(d)
Expenses, before waivers and
reimbursements .37% .42%(d)
Net investment income (a) 3.37% 2.88%(d)
See footnote summary on page 37.
33
FINANCIAL HIGHLIGHTS (CONTINUED) ALLIANCE INSTITUTIONAL RESERVES
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
TAX-FREE PORTFOLIO
----------------------
CLASS C
----------------------
SEPTEMBER 8,
YEAR 1998(c)
ENDED TO
APRIL 30, APRIL 30,
2000 1999
-------- ---------
Net asset value, beginning of period $ 1.00 $ 1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (a) .0318 .0184
LESS: DIVIDENDS
Dividends from net investment income (.0318) (.0184)
Net asset value, end of period $ 1.00 $ 1.00
TOTAL RETURN
Total investment return based on
net asset value (b) 3.22% 1.70%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $49 $2
Ratios to average net assets of:
Expenses, net of waivers and
reimbursements .45% .45%(d)
Expenses, before waivers and
reimbursements .51% .57%(d)
Net investment income (a) 3.23% 2.69%(d)
See footnote summary on page 37.
34
ALLIANCE INSTITUTIONAL RESERVES
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH YEAR
<TABLE>
<CAPTION>
TRUST PORTFOLIO
-----------------------------------------------------------------
CLASS A
-----------------------------------------------------------------
YEAR ENDED APRIL 30,
2000 1999 1998 1997 1996
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (a) .0511 .0489 .0523 .0492 .0527
LESS: DIVIDENDS
Dividends from net investment income (.0511) (.0489) (.0523) (.0492) (.0527)
Net asset value, end of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
TOTAL RETURN
Total investment return based on
net asset value (b) 5.23% 5.01% 5.37% 5.04% 5.41%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (in millions) $839 $795 $391 $176 $170
Ratios to average net assets of:
Expenses, net of waivers and
reimbursements .50% .50% .49% .50% .50%
Expenses, before waivers and
reimbursements .52% .55% .54% .57% .60%
Net investment income (a) 5.13% 4.85% 5.23% 4.93% 5.28%
</TABLE>
See footnote summary on page 37.
35
FINANCIAL HIGHLIGHTS (CONTINUED) ALLIANCE INSTITUTIONAL RESERVES
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
TREASURY PORTFOLIO
----------------------
CLASS A
----------------------
JUNE 29,
YEAR 1998(c)
ENDED TO
APRIL 30, APRIL 30,
2000 1999
-------- ---------
Net asset value, beginning of period $ 1.00 $ 1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (a) .0504 .0401
LESS: DIVIDENDS
Dividends from net investment income (.0504) (.0401)
Net asset value, end of period $ 1.00 $ 1.00
TOTAL RETURN
Total investment return based on
net asset value (b) 5.15% 4.09%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $4 $4
Ratios to average net assets of:
Expenses, net of waivers and
reimbursements .20% .20%(d)
Expenses, before waivers and
reimbursements .59% 1.42%(d)
Net investment income (a) 5.03% 4.82%(d)
TREASURY PORTFOLIO
----------------------
CLASS B
----------------------
DECEMBER 31,
YEAR 1998(c)
ENDED TO
APRIL 30, APRIL 30,
2000 1999
-------- ---------
Net asset value, beginning of period $ 1.00 $ 1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (a) .0494 .0143
LESS: DIVIDENDS
Dividends from net investment income (.0494) (.0143)
Net asset value, end of period $ 1.00 $ 1.00
TOTAL RETURN
Total investment return based on
net asset value (b) 5.05% 1.44%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $85 $15
Ratios to average net assets of:
Expenses, net of waivers and
reimbursements .30% .30%(d)
Expenses, before waivers and
reimbursements .47% 1.08%(d)
Net investment income (a) 5.04% 4.42%(d)
See footnote summary on page 37.
36
ALLIANCE INSTITUTIONAL RESERVES
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
TREASURY PORTFOLIO
----------------------
CLASS C
----------------------
OCTOBER 15,
YEAR 1998(c)
ENDED TO
APRIL 30, APRIL 30,
2000 1999
-------- --------
Net asset value, beginning of period $ 1.00 $ 1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (a) .0479 .0248
LESS: DIVIDENDS
Dividends from net investment income (.0479) (.0248)
Net asset value, end of period $ 1.00 $ 1.00
TOTAL RETURN
Total investment return based on
net asset value (b) 4.89% 2.51%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $350 $33
Ratios to average net assets of:
Expenses, net of waivers and
reimbursements .45% .45%(d)
Expenses, before waivers and
reimbursements .56% .99%(d)
Net investment income (a) 5.06% 4.27%(d)
(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) Commencement of distribution.
(d) Annualized.
37
REPORT OF INDEPENDENT ACCOUNTANTS ALLIANCE INSTITUTIONAL RESERVES
_______________________________________________________________________________
TO THE BOARD OF DIRECTORS AND SHAREHOLDERS OF
ALLIANCE INSTITUTIONAL RESERVES, INC.
In our opinion, the accompanying statements of net assets and the related
statements of operations and of changes in net assets and the financial
highlights present fairly, in all material respects, the financial position of
Alliance Institutional Reserves--Prime, Government, Tax-Free, Trust and
Treasury Portfolios (the "Fund") at April 30, 2000, and the results of each of
their operations, the changes in each of their net assets and the financial
highlights for the year then ended, in conformity with accounting principles
generally accepted in the United States. These financial statements and
financial highlights (hereafter referred to as "financial statements") are the
responsibility of the Fund's management; our responsibility is to express an
opinion on these financial statements based on our audit. We conducted our
audit of these financial statements in accordance with auditing standards
generally accepted in the United States, which require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement
presentation. We believe that our audit, which included confirmation of
securities at April 30, 2000, by correspondence with the custodian and brokers,
provides a reasonable basis for the opinion expressed above. The financial
statements for the year ended April 30, 1999, including the financial
highlights for each of the periods ended prior to May 1, 1999, were audited by
other independent accountants whose report dated May 27, 1999, expressed an
unqualified opinion on those financial statements.
PricewaterhouseCoopers LLP
New York, New York
May 26, 2000
38
ALLIANCE INSTITUTIONAL RESERVES
_______________________________________________________________________________
ALLIANCE INSTITUTIONAL RESERVES, INC.
1345 Avenue of the Americas
New York, NY 10105
Toll-free 1(800) 221-5672
BOARD OF DIRECTORS
JOHN D. CARIFA, CHAIRMAN
RUTH BLOCK (1)
DAVID H. DIEVLER (1)
JOHN H. DOBKIN (1)
WILLIAM H. FOULK, JR. (1)
JAMES M. HESTER (1)
CLIFFORD L. MICHEL (1)
DONALD J. ROBINSON (1)
OFFICERS
RONALD M. WHITEHILL, PRESIDENT
ANDREW M. ARAN, SENIOR VICE PRESIDENT
KATHLEEN A. CORBET, SENIOR VICE PRESIDENT
DREW A. BIEGEL, SENIOR VICE PRESIDENT
RAYMOND J. PAPERA, SENIOR VICE PRESIDENT
KENNETH T. CARTY, VICE PRESIDENT
JOHN F. CHIODI, JR., VICE PRESIDENT
MARIA R. CONA, VICE PRESIDENT
JOSEPH DONA, VICE PRESIDENT
FRANCES M. DUNN, VICE PRESIDENT
JOSEPH R. LA SPINA, VICE PRESIDENT
EILEEN M. MURPHY, VICE PRESIDENT
MARIA C. SAZON, VICE PRESIDENT
EDMUND P. BERGAN, JR., SECRETARY
MARK D. GERSTEN, TREASURER & CHIEF FINANCIAL OFFICER
VINCENT S. NOTO, CONTROLLER
CUSTODIAN
STATE STREET BANK AND TRUST COMPANY
P.O. Box 1912
Boston, MA 02105
LEGAL COUNSEL
SEWARD & KISSEL LLP
One Battery Park Plaza
New York, NY 10004
AUDITORS
PRICEWATERHOUSECOOPERS LLP
1177 Avenue of the Americas
New York, NY 10036
TRANSFER AGENT
ALLIANCE FUND SERVICES, INC.
P.O. Box 1520
Secaucus, NJ 07096-1520
DISTRIBUTOR
ALLIANCE FUND DISTRIBUTORS, INC.
1345 Avenue of the Americas
New York, NY 10105
(1) Member of the audit committee.
DISTRIBUTION OF THIS REPORT OTHER THAN TO SHAREHOLDERS MUST BE PRECEDED OR
ACCOMPANIED BY THE FUND'S CURRENT PROSPECTUS, WHICH CONTAINS FURTHER
INFORMATION ABOUT THE FUND.
R THESE REGISTERED SERVICE MARKS USED UNDER LICENSE FROM THE OWNER, ALLIANCE
CAPITAL MANAGEMENT L.P.
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