ALLIANCE
-----------------
INSTITUTIONAL
-----------------
RESERVES
-----------------
SEMI-ANNUAL REPORT
OCTOBER 31, 2000
(UNAUDITED)
<PAGE>
STATEMENT OF NET ASSETS
October 31, 2000 (unaudited) Alliance Institutional Reserves - Prime Portfolio
================================================================================
Principal
Amount
(000) Security Yield Value
--------------------------------------------------------------------------------
COMMERCIAL PAPER - 64.7%
Abbey National NA
$ 35,000 3/15/01..................... 6.44% $ 34,161,532
Aluminum Co. of America
30,000 11/20/00.................... 6.48 29,897,400
American General Finance
50,000 12/06/00.................... 6.49 49,684,514
AT&T Corp.
50,000 11/27/00.................... 6.48 49,766,000
BAA PLC
18,904 11/07/00.................... 6.50 18,883,521
Banco Santander P.R.
31,300 11/13/00.................... 6.53 31,231,870
Bank of America Corp.
43,000 11/06/00.................... 6.61 42,960,524
Bank of Scotland
Treasury Services PLC
45,000 11/21/00.................... 6.48 44,838,000
Banque Caisse
d'Epargne L'etat
58,000 12/27/00.................... 6.50 57,413,556
BASF AG
17,243 3/22/01..................... 6.47 16,806,048
BellSouth Capital Funding
30,000 12/01/00.................... 6.47 29,838,250
BMW US Capital Corp.
43,000 11/06/00.................... 6.50 42,961,181
CBA (Finance) Delaware, Inc.
50,000 11/27/00.................... 6.50 49,765,278
Centric Capital Corp.
30,000 12/15/00 (a)................ 6.49 29,762,033
30,000 11/22/00 (a)................ 6.50 29,886,250
CIT Group Holdings, Inc.
15,000 11/30/00.................... 6.49 14,921,579
50,000 11/27/00.................... 6.50 49,765,458
Clipper Receivables Corp.
50,000 11/07/00 (a)................ 6.53 49,945,583
Concord Minute-A
20,000 11/10/00 (a)................ 6.52 19,967,400
35,204 11/17/00 (a)................ 6.52 35,101,987
Corporate Asset
Funding Corp.
45,000 11/09/00 (a)................ 6.51 44,934,900
CXC, Inc.
50,000 11/22/00 (a)................ 6.50 49,810,417
40,000 11/28/00 (a)................ 6.51 39,804,700
DaimlerChrysler Corp.
65,000 11/15/00.................... 6.49 64,835,947
Den Danske Bank
15,000 6.49%, 11/29/00............. 5.08 14,924,283
50,000 6.50%, 12/01/00............. 5.08 49,729,167
Dexia CLF Finance Co.
20,000 12/26/00.................... 6.47 19,802,306
23,000 11/13/00.................... 6.48 22,950,320
Exxon Project
Investment Corp.
100,000 11/14/00.................... 6.49% 99,765,639
Ford Motor Credit Corp.
55,000 11/02/00.................... 6.49 54,990,085
Fortis Funding
8,000 4/12/01..................... 6.41 7,769,240
50,000 11/28/00.................... 6.47 49,757,375
Four Winds Funding Corp.
50,000 12/19/00 (a)................ 6.50 49,566,667
Galaxy Funding, Inc.
66,000 12/15/00 (a)................ 6.52 65,474,053
GE Financial
Assurance Holdings
50,000 12/11/00 (a)................ 6.50 49,638,889
General Motors
Acceptance Corp.
64,000 12/01/00.................... 6.48 63,654,400
Golden Funding Corp.
22,712 11/07/00 (a)................ 6.54 22,687,244
Goldman Sachs Group L.P.
20,000 11/15/00 (a)................ 6.50 19,949,444
Grand Funding Corp.
20,000 11/03/00 (a)................ 6.50 19,992,778
23,000 12/06/00 (a)................ 6.50 22,854,653
Greenwich Funding Corp.
25,000 11/15/00 (a)................ 6.50 24,936,805
70,000 11/01/00 (a)................ 6.52 70,000,000
Halifax PLC
20,500 3/14/01..................... 6.44 20,012,638
30,000 3/15/01..................... 6.44 29,281,425
Home Depot Real
Estate Funding
25,000 11/06/00.................... 6.77 24,976,493
Household Finance Corp.
65,000 11/10/00.................... 6.49 64,894,537
ING Insurance Holdings, Inc.
15,000 12/11/00.................... 6.50 14,891,667
International
Securitization Corp.
3,208 12/11/00 (a)................ 6.71 3,184,083
20,088 12/20/00 (a)................ 6.71 19,904,535
Jupiter Securitization Corp.
20,237 11/10/00.................... 6.52 20,204,014
Lexington Parker
Capital Corp.
20,288 12/01/00 (a)................ 6.50 20,178,107
Merck & Co., Inc.
50,000 11/27/00.................... 6.47 49,766,361
National City Corp.
60,000 11/27/00.................... 6.49 59,718,767
1
<PAGE>
STATEMENT OF NET ASSETS
(continued) Alliance Institutional Reserves - Prime Portfolio
================================================================================
Principal
Amount
(000) Security Yield Value
--------------------------------------------------------------------------------
Old Line Funding Corp.
$ 40,000 11/09/00 (a)................ 6.50% $ 39,942,222
32,000 11/20/00 (a)................ 6.50 31,890,222
Peoples Energy Corp.
27,840 11/20/00.................... 6.50 27,744,493
Peoples Gas Light & Coke Co.
31,916 11/21/00.................... 6.50 31,800,748
Prudential Funding Corp.
50,000 11/24/00.................... 6.48 49,793,000
Receivables Capital Corp.
30,000 11/09/00 (a)................ 6.52 29,956,533
Sara Lee Corp.
60,000 11/02/00.................... 6.58 59,989,033
SBC Communications, Inc.
34,650 11/20/00.................... 6.49 34,531,314
Sheffield Receivables Corp.
10,300 11/27/00 (a)................ 6.51 10,251,573
39,500 11/01/00 (a)................ 6.52 39,500,000
Sigma Finance, Inc. FRN
50,000 1/23/01 (a)................. 6.67 49,998,009
Tasmanian Public
Finance Corp.
25,000 11/30/00.................... 6.50 24,869,097
Thames Asset Global
Securitization
60,000 12/15/00 (a)................ 6.50 59,523,333
Triple-A-One Funding Corp.
35,270 11/07/00 (a)................ 6.52 35,231,673
UBS Finance, Inc.
200,000 11/01/00.................... 6.65 200,000,000
Unilever Capital Corp.
65,000 11/01/00 (a)................ 6.51 65,000,000
Vattenfall Treasury
50,000 11/30/00.................... 6.51 49,737,792
Verizon Network Funding
29,000 11/15/00.................... 6.50 28,926,695
30,000 12/14/00.................... 6.50 29,767,083
Wal-Mart Stores, Inc.
7,000 11/27/00.................... 6.48 6,967,240
51,675 11/28/00.................... 6.48 51,423,859
Wells Fargo Corp.
50,000 11/24/00.................... 6.48 49,793,000
Westpac Capital Corp.
15,000 11/01/00.................... 6.64 15,000,000
--------------
Total Commercial Paper
(amortized cost
$3,004,036,822)............. 3,004,036,822
--------------
CERTIFICATES OF
DEPOSIT - 16.5%
Banco Bilbao Vizcaya
55,000 6.56%, 11/28/00............. 6.56% 55,000,000
Bank of Austria
50,000 6.65%, 11/03/00............. 6.65 50,000,059
Bank of Tokyo
Mitsubishi LTD
60,000 6.56%, 11/20/00............. 6.56 60,000,000
Canadian Imperial Bank
25,000 6.53%, 11/27/00............. 6.53 25,000,000
35,000 6.73%, 11/22/00............. 6.54 35,001,328
Credit Agricole Indosuez
10,000 6.54%, 12/07/00............. 6.54 9,999,929
56,000 7.21%, 3/08/01.............. 7.20 56,001,869
Deutsche Bank FRN
49,000 6.52%, 3/13/01.............. 6.56 48,993,025
Dresdner Bank AG
83,000 6.46%, 12/11/00............. 6.46 83,000,000
Landesbank Baden-
Wurttemberg
15,000 7.37%, 5/30/01.............. 7.37 15,000,000
Landesbank-Hessen-
Thueringen
47,000 7.14%, 5/08/01.............. 7.16 46,998,285
Lloyds Bank PLC
21,000 7.29%, 5/16/01.............. 7.30 20,998,935
Nordeutsche Landesbank
30,000 6.20%, 12/01/00............. 6.22 29,998,355
Norinchukin Bank
60,000 6.58%, 11/30/00............. 6.58 60,000,000
Rabobank Nederland
20,000 6.68%, 2/12/01.............. 6.71 19,998,126
28,000 7.29%, 5/16/01.............. 7.30 27,998,580
Royal Bank of Scotland
60,000 6.56%, 11/27/00............. 6.56 60,000,000
Southtrust Bank NA
20,000 6.56%, 11/07/00............. 6.56 20,000,000
40,000 6.58%, 12/12/00............. 6.58 40,000,000
--------------
Total Certificates of
Deposit (amortized cost
$763,988,491)............... 763,988,491
--------------
CORPORATE
OBLIGATIONS - 14.0%
Allstate Life Insurance
Funding Agreement FRN
25,000 6.67%, 11/01/00 (b)......... 6.67 25,000,000
25,000 6.67%, 5/01/01 (b).......... 6.67 25,000,000
American Express
Centurion Bank MTN
32,000 6.66%, 3/07/01.............. 6.66 32,000,000
20,000 6.67%, 4/26/01.............. 6.67 20,000,000
2
<PAGE>
Alliance Institutional Reserves - Prime Portfolio
================================================================================
Principal
Amount
(000) Security Yield Value
--------------------------------------------------------------------------------
Asset Backed Capital
$ 20,000 6.61%, 9/17/01 FRN (a)...... 6.61% $ 20,000,000
34,000 6.63%, 5/25/01 MTN (a)...... 6.63 33,998,136
10,000 6.75%, 11/15/00 FRN (a)..... 6.75 10,000,000
22,000 6.80%, 2/07/01 MTN (a)...... 6.80 22,000,000
Beta Finance Corp. MTN
45,000 7.30%, 5/15/01 (a).......... 7.30 45,000,000
Dorada Finance, Inc. MTN
73,000 7.44%, 6/08/01 (a).......... 7.44 73,000,000
Goldman Sachs Group
L.P. MTN
31,000 6.85%, 11/28/00 (a)......... 6.56 31,005,559
Hartford Life
Insurance Co. FRN
40,000 6.62%, 12/01/00............. 6.62 40,000,000
Merrill Lynch & Co., Inc.
MTN
77,000 6.60%, 4/12/01.............. 6.61 76,996,564
Metlife Funding
Agreement FRN
63,000 6.62%, 4/02/01.............. 6.62 63,000,000
Morgan Guaranty
Trust FRN
20,000 6.87%, 1/12/01.............. 6.64 20,005,012
Prudential Insurance Co.
of America FRN
16,000 6.63%, 11/30/00............. 6.63 16,000,000
Sigma Finance, Inc.
FRN MTN
30,000 6.61%, 11/01/01 (a)......... 6.61 30,000,000
20,000 6.62%, 8/06/01 (a).......... 6.62 20,000,000
25,000 6.65%, 9/25/01 FRN (a)...... 6.65 25,000,000
Travelers Life Funding
Agreement FRN
20,000 6.60%, 1/15/01.............. 6.60 20,000,000
--------------
Total Corporate Obligations
(amortized cost
$648,005,271)............... 648,005,271
--------------
REPURCHASE AGREEMENT - 3.0%
Paribas Corp.
140,000 6.62%, dated 10/31/00,
due 11/01/00 in the
amount of $140,025,744
(cost $140,000,000;
collateralized by
$38,348,000 FNMA,
6.75%, 8/15/02,
value $39,093,859 and
$100,000,000 FHLB,
7.125%, 2/15/05,
value $103,706,829.......... 6.62% 140,000,000
--------------
BANK OBLIGATIONS - 1.4%
LaSalle National Bank NA
47,000 6.53%, 11/29/00............. 6.53 47,000,000
20,000 6.65%, 3/30/01.............. 6.65 20,000,000
--------------
Total Bank Obligations
(amortized cost
$67,000,000)................ 67,000,000
TIME DEPOSIT - 1.2%
Toronto Dominion
56,700 6.56%, 11/01/00
(amortized cost
$56,700,000)................ 6.56 56,700,000
--------------
U.S. GOVERNMENT &
AGENCY OBLIGATION - 0.9%
Federal Home Loan
Bank MTN
40,000 6.40%, 2/09/01
(amortized cost
$39,997,497)................ 6.42 39,997,497
--------------
TOTAL INVESTMENTS - 101.7%
(amortized cost
$4,719,728,081)............. 4,719,728,081
Other assets less
liabilities - (1.7%)........ (78,577,340)
--------------
NET ASSETS - 100%
(offering and redemption
price of $1.00 per share;
2,416,922,715 Class A shares,
2,032,879,441 Class B shares
and 191,442,830 Class C
shares outstanding)......... $4,641,150,741
==============
--------------------------------------------------------------------------------
See Glossary of Terms on page 20.
See notes to financial statements.
3
<PAGE>
STATEMENT OF NET ASSETS Alliance Institutional Reserves -
October 31, 2000 (unaudited) Government Portfolio
================================================================================
Principal
Amount
(000) Security Yield Value
--------------------------------------------------------------------------------
U.S. GOVERNMENT & AGENCY
OBLIGATIONS - 63.5%
FEDERAL HOME
LOAN MORTGAGE
CORP. - 26.0%
$ 4,500 5.99%, 12/06/00 MTN......... 6.15% $ 4,499,316
15,000 11/07/00.................... 6.47 14,984,000
16,000 11/21/00.................... 6.47 15,943,067
8,000 11/09/00.................... 6.48 7,988,622
25,000 11/14/00.................... 6.48 24,942,222
22,000 11/16/00.................... 6.48 21,941,333
14,000 11/21/00.................... 6.48 13,950,067
15,000 11/22/00.................... 6.48 14,944,000
42,000 12/07/00.................... 6.48 41,731,200
10,000 12/21/00.................... 6.48 9,911,528
10,000 11/22/00.................... 6.50 9,962,608
18,000 11/30/00.................... 6.50 17,907,200
10,000 12/28/00.................... 6.50 9,898,825
13,000 12/28/00.................... 6.51 12,868,267
5,000 3/01/01..................... 6.52 4,894,000
--------------
226,366,255
--------------
FEDERAL NATIONAL MORTGAGE
ASSOCIATION - 21.5%
4,200 5.89%, 12/22/00 MTN......... 6.35 4,197,326
2,800 5.90%, 12/01/00 MTN......... 6.15 2,799,437
4,500 5.92%, 12/07/00 MTN......... 6.11 4,499,168
5,000 7.25%, 5/25/01 MTN.......... 7.28 5,000,000
35,000 12/14/00.................... 6.48 34,733,698
28,000 12/21/00.................... 6.49 27,751,500
11,000 12/28/00.................... 6.50 10,888,655
10,000 2/22/01..................... 6.50 9,800,681
5,000 3/01/01..................... 6.51 4,894,167
6,000 3/08/01..................... 6.51 5,865,380
10,000 11/30/00.................... 6.52 9,948,283
14,000 3/15/01..................... 6.52 13,668,574
14,000 3/29/01..................... 6.52 13,634,522
5,000 3/15/01..................... 6.53 4,881,819
5,000 11/02/00.................... 6.71 4,999,099
15,000 12/28/00.................... 6.73 14,845,387
15,000 5/17/01..................... 6.98 15,001,959
--------------
187,409,655
--------------
STUDENT LOAN MARKETING
ASSOCIATION - 7.7%
8,000 6.79%, 12/29/00 FRN......... 6.79 8,000,420
10,000 6.80%, 9/17/01
FRN MTN..................... 6.80 9,993,110
8,000 6.82%, 11/13/00 FRN......... 6.82 8,000,134
11,000 6.82%, 9/28/01 FRN.......... 6.82 10,996,477
10,000 6.87%, 10/24/01 FRN......... 6.87 10,000,000
10,000 7.05%, 11/17/00 FRN......... 7.25 9,999,694
10,000 7.07%, 11/15/00 FRN......... 7.07 9,999,813
--------------
66,989,648
--------------
FEDERAL HOME
LOAN BANK - 7.3%
5,000 6.40%, 2/09/01 MTN.......... 6.42% 4,999,687
14,000 6.50%, 2/15/01 MTN.......... 6.59 13,996,371
3,000 11/03/00.................... 6.05 2,999,999
10,000 11/29/00.................... 6.47 9,950,222
25,000 12/27/00.................... 6.49 24,751,578
7,000 5/04/01..................... 7.13 6,987,011
--------------
63,684,868
--------------
FEDERAL FARM
CREDIT BANKS - 1.0%
9,216 12/01/00.................... 6.57 9,214,519
--------------
Total U.S. Government &
Agency Obligations
(amortized cost
$553,664,945)............... 553,664,945
--------------
REPURCHASE AGREEMENTS -
36.0% CS First Boston Corp.
15,000 6.50%, dated 10/17/00,
due 11/08/00 in the
amount of $15,059,583
(cost $15,000,000;
collateralized by
$34,593,851 FNMA,
6.50%, 5/01/14,
value $16,034,700) (c)...... 6.50 15,000,000
CS First Boston Corp.
20,000 6.50%, dated 10/17/00,
due 11/20/00 in the
amount of $20,122,778
(cost $20,000,000;
collateralized by
$24,240,000 FHLMC,
6.50%, 12/01/18,
value $21,084,897) (c)...... 6.50 20,000,000
Goldman Sachs & Co.
35,000 6.51%, dated 09/28/00,
due 11/24/00 in the
amount of $35,360,763
(cost $35,000,000;
collateralized by
$21,896,083 FHLMC,
8.50%, 7/01/30,
value $22,334,005
and $13,103,918 FHLMC,
7.00%, 12/01/29,
value $13,365,996) (c)...... 6.51 35,000,000
Lehman Brothers, Inc.
20,000 6.45%, dated 10/31/00,
due 11/01/00 in the
amount of $20,003,583
(cost $20,000,000;
collateralized by
$31,945,000
GNMA, 12/16/27,
value $20,402,453).......... 6.45 20,000,000
4
<PAGE>
Alliance Institutional Reserves - Government Portfolio
================================================================================
Principal
Amount
(000) Security Yield Value
--------------------------------------------------------------------------------
Lehman Brothers, Inc.
$ 20,000 6.50%, dated 09/27/00,
due 11/27/00 in the
amount of $20,220,278
(cost $20,000,000;
collateralized by
$1,329,000 FNMA, 6.50%,
10/01/36, value
$1,343,558, $270,000
FHLMC 000PU2, 0.00%,
3/15/22, value $4,134,623,
$287,154 FHLMC 01096H,
31.00%, 6/15/21, value
$763,178, $5,000 FHLMC
01198K, 64.50%, 2/15/07,
value $60,275, $250,000
FHLMC 0121QU, 7.50%,
1/15/22, value $794,567,
$180,000 FHLMC 01226M,
95.31%, 3/15/22, value
$194,131, $200,000 FHLMC
012260, 8.00%, 3/15/22,
value $483,771, $10,000
FHLMC 01300L, 43.90%,
6/15/07, value $279,683,
$1,183,660 FHLMC 01394J,
30.76%, 1/15/22, value
$3,502,579, $25,000 FHLMC
0142BN, 12.22%, 11/15/07,
value $774,556, $254,000
FHLMC 01443J, 12.05%,
12/15/22, value $2,675,949,
$8,000 FHLMC 1543P0, 0.00%,
1/15/19, value $108,
$416,000 FNMA CL98K,
8/25/20, value $248,356,
$370,000 FNMA CL124PL,
7/25/22, value $349,167,
$18,200 FNMA CL49K, 3/25/12,
value $19,500, $95,000
FNMA CL022P, 6/25/23, value
$2,432,420, $2,300 FNMA
CL134EA, 11/25/05, value
$38, $203,040 FNMA CL1585,
12/25/21, value $523,006,
$31,789 FNMA CL63J,
6/25/06, value $37,878,
$175,000 FNMA CL66K,
6/25/21, value $340,672,
$240,000 FNMA CL169M,
9/25/22, value $907,472
and $132,385, FNMA
CL145B, 12/25/20,
value $586,521) (c)......... 6.50% $ 20,000,000
Merrill Lynch & Co.,
Inc.
35,000 6.48%, dated 10/06/00,
due 11/06/00 in the
amount of $35,195,300
(cost $35,000,000;
collateralized by
$49,177,450 FNMA,
6.561%, 8/01/22,
value $26,260,305
and $13,964,000 FNMA,
5.758%, 8/01/08,
value $9,470,657)........... 6.48 35,000,000
Morgan Stanley
Dean Witter
15,000 6.49%, dated 10/10/00,
due 11/10/00 in the
amount of $15,083,829
(cost $15,000,000;
collateralized by
$897,861 FHLMC, 8.00% ,
value $893,282, $891,328
FHLMC, 8.00%, 7/01/30
value $893,869, $1,060,536
FHLMC, 5.00%, 4/01/14,
value $884,655, $1,098,647
FHLMC, 6.50%, 1/01/14,
value $894,729, $1,082,665
FHLMC, 6.00%, 12/01/13,
value $875,853, $878,638
FHLMC, 8.00%, 5/01/30,
value $892,065, $935,139
FHLMC, 6.50%, 10/01/29,
value $892,763, $918,894
FHLMC, 6.50%, 8/01/29,
value $880,218, $933,052
FHLMC, 6.50%, 7/01/29,
value $879,833, $1,000,000
FHLMC, 6.00%, 12/01/28,
value $885,915, $885,322
FHLMC, 7.50%, 10/01/15,
value $894,449, $1,036,654
FHLMC, 6.00%, 7/01/14,
value $881,751, $311,000
FHLMC, 6.00%, 5/01/14,
value $266,814, $1,066,969
FHLMC, 6.00%, 4/01/14,
value $887,567, $1,010,989
FHLMC, 6.00%, 4/01/14,
value $875,349, $1,455,369
5
<PAGE>
STATEMENT OF NET ASSETS
(continued) Alliance Institutional Reserves - Government Portfolio
================================================================================
Principal
Amount
(000) Security Yield Value
--------------------------------------------------------------------------------
FHLMC, 8.00%, 5/01/14,
value $881,413,
$2,065,425 FHLMC,
7.00%, 9/01/11, value
$889,464, $1,169,401
FHLMC, 6.00%, 11/01/26,
value $880,408) (c)......... 6.49% $ 15,000,000
Paine Webber, Inc.
$ 20,000 6.50%, dated 9/29/00,
due 11/01/00 in the
amount of $20,119,167
(cost $20,000,000;
collateralized by
$21,855,000
GNMA I 487628,
6.50%, 7/15/29,
value $21,221,847).......... 6.50 20,000,000
Paine Webber, Inc.
15,000 6.50%, dated 9/29/00,
due 11/28/00 in the
amount of $15,162,500
(cost $15,000,000;
collateralized by
$15,000,000
FNMA 535525,
6.50%, 12/01/25,
value $15,205,634) (c)...... 6.50 15,000,000
Paribas Corp.
35,000 6.50%, dated 10/25/00,
due 11/29/00 in the
amount of $35,221,181
(cost $35,000,000;
collateralized by
$35,057,711
FNMA, 6.625%, 9/15/09,
value $35,758,865) (c)...... 6.50 35,000,000
Prudential Securities,
Inc.
40,000 6.62%, dated 10/31/00,
due 11/01/00 in the
amount of $40,007,356
(cost $40,000,000;
collateralized by
$9,629,712 GNMA,
6.50%, 12/20/28,
value $9,822,306,
$30,370,288 FNMA,
6.70%, 11/01/35,
value $30,977,694).......... 6.62 40,000,000
State Street Bank and
Trust Co.
44,400 6.56%, dated 10/31/00,
due 11/01/00 in the
amount of $44,408,091
(cost $44,400,000;
collateralized by
$45,490,000
U.S. Treasury Note,
6.375%, 9/30/01,
value $45,736,965).......... 6.56 44,400,000
--------------
Total Repurchase
Agreements
(amortized cost
$314,400,000)............... 314,400,000
--------------
TOTAL INVESTMENTS - 99.5%
(amortized cost
$868,064,945)............... $ 868,064,945
Other assets less
liabilities - 0.5%.......... 4,062,479
--------------
NET ASSETS - 100% (offering
and redemption price of
$1.00 per share; 434,255,340
Class A shares, 400,068,820
Class B shares and
37,939,086 Class C
shares outstanding)......... $ 872,127,424
==============
--------------------------------------------------------------------------------
See Glossary of Terms on page 20.
See notes to financial statements.
6
<PAGE>
STATEMENT OF NET ASSETS Alliance Institutional Reserves -
October 31, 2000 (unaudited) Tax-Free Portfolio
================================================================================
Principal
Amount
(000) Security(d) Yield Value
--------------------------------------------------------------------------------
MUNICIPAL BONDS - 86.7%
ALABAMA - 1.9%
Alabama Special Care
Facilities Authority
(Ascension Health
Birmingham Revenue)
Series 99B
$ 10,000 11/15/39 (e)................ 4.60% $ 10,000,000
(Ascension Health
Mobile Revenue)
Series 99B
10,000 11/15/39 (e)................ 4.60 10,000,000
--------------
20,000,000
--------------
ARIZONA - 0.9%
Maricopa County PCR
(Southern California
Education Co.)
Series 00B
9,300 6/01/35 (e)................. 4.65 9,300,000
--------------
ARKANSAS - 1.7%
Blytheville IDR
(Nucor Project)
Series 98 AMT
13,300 6/01/28 (e)................. 4.40 13,300,000
Warren SWDR
(Potlatch Corp. Project)
5,150 4/01/12..................... 4.50 5,150,000
--------------
18,450,000
--------------
CALIFORNIA - 2.9%
California Higher
Education Loan
Authority
(Student Loan Revenue)
Series A
31,300 6/01/01 (e)................. 4.30 31,300,000
--------------
COLORADO - 0.3%
University of Colorado
(Certificates of
Participation)
Series A PPB
3,500 7/01/01 (e)................. 4.45 3,500,000
--------------
DELAWARE - 2.6%
Delaware Economic
Development Authority IDR
(Delaware Clean Power
Project Motiva Enterprises)
Series 97A AMT
19,000 8/01/29 (e)................. 4.55 19,000,000
(Delmarva Power & Light)
Series 93C
9,200 10/01/28 (e)................ 4.60 9,200,000
--------------
28,200,000
--------------
DISTRICT OF COLUMBIA - 6.0%
District of Columbia GO
Series 91B-1
4,000 6/01/03 (e)................. 4.85 4,000,000
Series 92A-1
4,800 10/01/07 (e)................ 4.70 4,800,000
Series 92A-2
8,500 10/01/07 (e)................ 4.70 8,500,000
Series 92A-3
7,400 10/01/07 (e)................ 4.70 7,400,000
Series 92A-6
6,450 10/01/07 (e)................ 4.70 6,450,000
District of Columbia GO FSA
Series 00A
9,000 6/01/30 (e)................. 4.65 9,000,000
Series 00B
24,000 6/01/30 (e)................. 4.65 24,000,000
--------------
64,150,000
--------------
FLORIDA - 6.7%
Highlands County Health
Facility Authority
(Adventist Health System)
Series A
14,785 11/15/27 (e)................ 4.38 14,785,000
Martin County PCR
(Florida Power & Light
Co. Project)
Series 00
2,000 7/15/22 (e)................. 4.70 2,000,000
Orlando Special
Assessment Revenue
(Republic Drive Project)
Series 97A
15,000 10/01/21 (e)................ 4.25 15,000,000
Palm Beach County
Education Facility
Authority Revenue
(Lynn University Project)
Series 98
6,875 11/01/18 (e)................ 4.35 6,875,000
Palm Beach County
Housing Finance Authority
MFHR (Mahogny Bay
Multifamily Project)
Series 88C
5,100 11/01/07 (e)................ 4.30 5,100,000
St. Lucie County
(Florida Power & Light
Co. Project) Series 00
28,610 9/01/28 (e)................. 4.70 28,610,000
--------------
72,370,000
--------------
7
<PAGE>
STATEMENT OF NET ASSETS Alliance Institutional Reserves -
(continued) Tax-Free Portfolio
================================================================================
Principal
Amount
(000) Security(d) Yield Value
--------------------------------------------------------------------------------
GEORGIA - 5.2%
Bibb County
Development Authority
(Trustee of Mount De
Sales Academy)
Series 00
$ 6,000 3/01/20 (e)................. 4.40% $ 6,000,000
Columbia Elderly
Authority Residential
Care Facilities
(Augusta Residential
Center on Aging)
3,255 1/01/21 (e)................. 4.40 3,255,000
Fulton County
(Spelman College Project)
Series 99
8,000 11/01/20 (e)................ 4.40 8,000,000
Fulton County Housing
Authority MFHR
(Champion Green Apts.)
10,140 10/01/25 (e)................ 4.30 10,140,000
(Hampton Hills Apts.
Project)
5,000 6/01/23 (e)................. 4.40 5,000,000
(Spring Creek Crossing)
Series 94
13,600 10/01/24 (e)................ 4.39 13,600,000
Gainesville & Hall County
(Senior Living Facility
Lanier Village)
Series 99A
5,500 11/15/10 (e)................ 4.45 5,500,000
Metropolitan Atlanta
Rapid Transit Authority
(Sales Tax Revenue)
Series 00A
5,000 7/01/25..................... 4.45 5,000,000
--------------
56,495,000
--------------
ILLINOIS - 10.8%
Aurora Kane & DuPage IDR
(Jania Family LLC Project)
Series 99 AMT
6,500 12/01/29 (e)................ 4.60 6,500,000
Chicago Board of
Education FSA
(Unlimited Tax GO Bonds)
Series 00B
8,000 3/01/32 (e)................. 4.35 8,000,000
Chicago Gas Supply Revenue
(Peoples Gas Light & Coke)
Series 00A
15,000 3/01/30 (e)................. 4.32 15,000,000
Chicago Illinois
(Homestart Program)
Series A
10,000 6/01/05 (e)................. 4.45 10,000,000
Des Plaines Cook County IDR
(CP Partners LLC Project)
Series 97A
6,450 11/01/15 (e)................ 4.60 6,450,000
Elmhurst Hospital Revenue
(Joint Commission
Health Organization)
Series 88
6,660 7/01/18 (e)................. 4.35 6,660,000
Illinois Development
Finance Authority
(D.E. Akin Seed Project) AMT
1,000 11/01/04 (e)................ 4.55 1,000,000
Illinois Development
Finance Authority PCR
(Amerencips Project)
Series 00
12,000 3/01/14 (e)................. 4.35 12,000,000
Illinois Health Facilities
Authority
(Franciscan Eldercare)
Series 96E
4,800 5/15/27 (e)................. 4.40 4,800,000
Illinois Health Facilities
Authority FSA
(Resurrection Health
Project) Series 99A
13,200 5/15/29 (e)................. 4.70 13,200,000
(Resurrection Health
Project) Series 99B
17,550 5/15/29 (e)................. 4.35 17,550,000
Illinois Housing
Development Authority
(Single Family Housing
Revenue) Series B-1
4,385 12/22/00 (e)................ 4.20 4,385,000
Madison County PCR
(Shell Oil/Wood River
Project) Series 97 AMT
2,800 4/01/32 (e)................. 4.75 2,800,000
Tinley Park Special
Assessment District
(Millennium Lakes
Development)
7,335 2/01/08 (e)................. 4.45 7,335,000
Vernon Hills IDA
(Kinder Care Center)
Series C
550 2/01/01 (e)................. 4.55 550,000
--------------
116,230,000
--------------
8
<PAGE>
Alliance Institutional Reserves -
Tax-Free Portfolio
================================================================================
Principal
Amount
(000) Security(d) Yield Value
--------------------------------------------------------------------------------
INDIANA - 3.9%
Gibson County PCR
(Toyota Motor
Manufacturing Project)
Series 97 AMT
$ 7,500 10/01/27 (e)................ 4.40% $ 7,500,000
(Toyota Motor
Manufacturing Project)
Series 99A AMT
2,000 1/01/29 (e)................. 4.40 2,000,000
Indiana Development
Finance Authority PCR
(Alcoa, Inc. Project)
Series 99
13,905 1/01/17 (e)................. 4.60 13,905,000
Indiana Health Facility
Finance Authority
(Ascension Health)
Series 99B
16,000 11/15/39 (e)................ 4.60 16,000,000
Whiting SWDR
(Amoco Oil Co. Project)
Series 96 AMT
3,000 1/01/26 (e)................. 4.75 3,000,000
--------------
42,405,000
--------------
KANSAS - 0.8%
Lenexa Health Care Facility
(Lakeview Village)
Series A
9,160 5/15/26 (e)................. 4.40 9,160,000
--------------
KENTUCKY - 2.1%
Barbourville College
Revenue
(Union College Project)
Series A
3,410 8/01/23 (e)................. 4.40 3,410,000
Jeffersontown
(League of Cities Fund Trust)
Series 00
19,000 3/01/30 (e)................. 4.40 19,000,000
--------------
22,410,000
--------------
LOUISIANA - 0.6%
Ascension Parish PCR
(Borden Project)
Series 92
4,600 12/01/09 (e)................ 4.40 4,600,000
West Baton Rouge IDR
(Dow Chemical 3)
Series 94B
2,200 12/01/16 (e)................ 4.70 2,200,000
--------------
6,800,000
--------------
MAINE - 0.7%
Maine Finance Authority
(Barber Foods, Inc.)
Series 90B AMT
1,080 12/01/06 (e)................ 4.70 1,080,000
South Berwick Education
Revenue
(Berwick Academy Issue)
Series 00
6,000 8/01/24 (e)................. 4.50 6,000,000
--------------
7,080,000
--------------
MARYLAND - 0.4%
Maryland Energy
Financing Administration
(Cimenteries Project)
Series 00 AMT
4,100 5/01/35..................... 4.80 4,100,000
--------------
MICHIGAN - 1.9%
Michigan State Hospital
Finance Authority
(Mt. Clemens General
Hospital) Series 00
7,200 3/01/15 (e)................. 4.45 7,200,000
(Mt. Clemens General
Hospital) Series 94
13,860 8/15/15 (e)................. 4.40 13,860,000
--------------
21,060,000
--------------
MINNESOTA - 1.6%
Cloquet
(Potlatch Corp. Project)
Series 96A AMT
5,000 4/01/26 (e)................. 4.50 5,000,000
(Potlatch Corp. Project)
Series 99C AMT
6,900 4/01/29 (e)................. 4.50 6,900,000
Coon Rapids
(Health Central System
Project)
4,000 8/01/15 (e)................. 4.35 4,000,000
Cottage Grove
(Minnesota Mining &
Manufacturing Co.
Project)
1,000 8/01/12 (e)................. 4.59 1,000,000
Eden Prairie IDA
(Kinder Care Project)
Series C
465 2/01/01 (e)................. 4.55 465,000
--------------
17,365,000
--------------
9
<PAGE>
STATEMENT OF NET ASSETS Alliance Institutional Reserves -
(continued) Tax-Free Portfolio
================================================================================
Principal
Amount
(000) Security(d) Yield Value
--------------------------------------------------------------------------------
MISSOURI - 0.1%
Blue Springs IDA
(Kinder Care Project)
Series C
$ 540 2/01/01 (e)................. 4.55% $ 540,000
Boone County IDA
(Minnesota Mining &
Manufacturing Co. Project)
500 12/01/25 (e)................ 4.35 500,000
--------------
1,040,000
--------------
NEVADA - 0.4%
Henderson Public
Improvement Trust MFHR
(Pueblo Verde 1 Apts.)
Series 95A
4,150 8/01/26 (e)................. 4.60 4,150,000
--------------
NEW HAMPSHIRE - 0.2%
New Hampshire Housing
Development Authority
(Single Family Mortgage
Revenue) Series 99C
2,000 12/01/00.................... 3.95 2,000,000
--------------
NEW YORK - 1.1%
New York State HFA
(150 East 44th Street
Project)
Series 00A AMT
11,500 11/01/32 (e)................ 4.20 11,500,000
--------------
NORTH CAROLINA - 1.0%
North Carolina Medical
Care Commision
Healthcare Facility
(Givens Estate Project)
Series 97
2,000 12/01/26 (e)................ 4.65 2,000,000
North Carolina Medical
Care Commission
Hospital Revenue
(Pooled Finance Project)
Series 96A
8,685 10/01/16 (e)................ 4.65 8,685,000
--------------
10,685,000
--------------
OHIO - 3.7%
Butler County Health
Care Facilities
(Knolls of Oxford)
Series 99
500 3/01/29 (e)................. 4.45 500,000
Cuyahoga County
Health Care Facilities
(Judson Retirement
Community)
Series 00
4,900 11/15/19 (e)................ 4.40 4,900,000
Hamilton County
Hospital Facilities
Revenue
(Bethesda Hospital, Inc.)
Series 95
2,000 2/15/24 (e)................. 4.25 2,000,000
Ohio Air Quality
Development Authority
(Cincinnati Gas & Electric)
Series 95B
2,000 9/01/30 (e)................. 4.60 2,000,000
Ohio Water Development
Authority
(Philip Morris Co.)
Series 97
27,500 9/01/18 (e)................. 4.50 27,500,000
Warren County IDA
(Pioneer Industrial
Components Project)
Series 85
2,500 12/01/05 (e)................ 4.55 2,500,000
--------------
39,400,000
--------------
OKLAHOMA - 0.7%
Rural Enterprises
(Governmental
Financing Program)
Series 00A
8,000 10/01/30 (e)................ 4.45 8,000,000
--------------
OREGON - 0.8%
Oregon State Housing &
Community Services SFMR
Series N
8,180 11/02/00.................... 3.85 8,180,000
--------------
PENNSYLVANIA - 5.6%
Allegheny County IDR
(United Jewish Federation
Project) Series 96A
8,060 10/01/26 (e)................ 4.40 8,060,000
Emmaus Local
Government General
Authority Revenue
Series 89B-18
1,000 3/01/24 (e)................. 4.35 1,000,000
Series B-21
6,400 3/01/24 (e)................. 4.35 6,400,000
Series F-15
6,000 3/01/24 (e)................. 4.35 6,000,000
Montgomery County
Higher Education &
Health Loan Revenue
Series 97A
6,960 4/01/17 (e)................. 4.45 6,960,000
10
<PAGE>
Alliance Institutional Reserves -
Tax-Free Portfolio
================================================================================
Principal
Amount
(000) Security(d) Yield Value
--------------------------------------------------------------------------------
Pennsylvania Higher
Educational Facility
Revenue
(University of
Pennsylvania Hospital)
Series 96C
$ 22,800 1/01/26 (e)................. 4.40% $ 22,800,000
Philadelphia County IDA
(Cliveden Maplewood
Project) Series 99
8,840 1/01/24 (e)................. 4.40 8,840,000
Venango IDR
(Penzoil Co. Project)
Series 82A
285 12/01/12 (e)................ 4.65 285,000
--------------
60,345,000
--------------
SOUTH CAROLINA - 0.8%
Berkeley County IDR
(Nucor Corp. Project)
Series 97 AMT
3,900 4/01/30 (e)................. 4.40 3,900,000
(Nucor Corp. Project)
Series 98 AMT
4,700 4/01/31 (e)................. 4.40 4,700,000
--------------
8,600,000
--------------
SOUTH DAKOTA - 0.6%
Lawrence PCR
(Homestake Mining)
Series B
6,000 7/01/32 (e)................. 4.60 6,000,000
--------------
TENNESSEE - 1.8%
Education Funding of
the South
(Student Funding Corp.)
Series 87A-3 AMT
9,900 12/01/17.................... 4.35 9,900,000
Stewart County IDR
(Standard Gypsum Project)
Series 99B AMT
10,000 5/01/34 (e)................. 4.40 10,000,000
--------------
19,900,000
--------------
TEXAS - 7.3%
Bexar Health Facility
Development Corp.
(Air Force Village)
14,300 8/15/30 (e)................. 4.40 14,300,000
Brazos River
(Dow Chemical Project)
Series 96 AMT
5,400 4/01/26 (e)................. 4.80 5,400,000
Grayson County IDR
(Aluminum Co. of America)
7,000 12/01/02 (e)................ 4.50 7,000,000
Gulf Coast PCR
(Amoco Oil Co.)
Series 93 AMT
2,950 5/01/23 (e)................. 4.75 2,950,000
Gulf Coast SWDR
(Air Products Project)
Series 99 AMT
1,300 6/01/34 (e)................. 4.40 1,300,000
(Amoco Oil Co.)
Series 96 AMT
1,300 5/01/24 (e)................. 4.75 1,300,000
(Citgo Petroleum Corp.
Project)
Series 95 AMT
10,200 5/01/25 (e)................. 4.80 10,200,000
Metropolitan Higher
Education Authority
(University of Dallas)
Series 99
6,900 5/01/19 (e)................. 4.40 6,900,000
Midlothian IDR
(Texas Industries)
Series 99 AMT
5,000 5/01/29 (e)................. 4.80 5,000,000
North Central Health
Facility Development
(Northwest Senior
Housing Corp.) Series C
17,500 11/15/29 (e)................ 4.40 17,500,000
Texas TRAN Series 00
7,000 8/31/01..................... 6.29 7,053,461
--------------
78,903,461
--------------
VIRGINIA - 3.8%
Alexandria Hospital
Revenue
(Goodwin House)
Series 96B
1,825 10/01/06 (e)................ 4.65 1,825,000
Fairfax County
Virginia IDA
(Inova Health System
Project)
Series 00
19,300 1/01/30 (e)................. 4.35 19,300,000
Harrisonburg IDA
(Wachovia Pooled Loan
Program) Series 00
20,000 8/01/23 (e)................. 4.35 20,000,000
--------------
41,125,000
--------------
11
<PAGE>
STATEMENT OF NET ASSETS Alliance Institutional Reserves -
(continued) Tax-Free Portfolio
================================================================================
Principal
Amount
(000) Security(d) Yield Value
--------------------------------------------------------------------------------
WASHINGTON - 1.9%
Port of Port Angeles IDR
(Daishowa America
Project)
Series 92B AMT
$ 3,000 8/01/07 (e)................. 4.55% $ 3,000,000
Washington Health Care
Facility Authority
(Fred Hutchinson Center)
Series 96
10,000 1/01/23 (e)................. 4.75 10,000,000
Washington Housing
Finance Commision
(Living Care Centers
Project)
Series 00
7,950 10/01/30 (e)................ 4.45 7,950,000
--------------
20,950,000
--------------
WEST VIRGINIA - 1.1%
Keyser IDR
(Keyser Associates
Project)
1,550 7/01/14 (e)................. 4.40 1,550,000
West Virginia Hospital
Finance Authority
(WVHA Pooled
Financing Project)
Series 00A
10,000 8/01/30 (e)................. 4.50 10,000,000
--------------
11,550,000
--------------
WISCONSIN - 4.8%
Manitowoc IDR
(Jagemann Stamping Co.)
Series 98 AMT
1,618 4/01/11 (e)................. 4.60 1,618,000
Milwaukee County
(Milwaukee Public Museum)
4,200 4/01/35 (e)................. 4.40 4,200,000
Wausau
(Minnesota Mining &
Manufacturing Co. Project)
1,600 8/01/17 (e)................. 4.59 1,600,000
Wisconsin HEFA
(Aurora Health Care)
Series 99C
15,000 2/15/29 (e)................. 4.35 15,000,000
Wisconsin HEFA
(University of Wisconsin
Medical Project)
Series 00
28,900 5/01/30 (e)................. 4.40 28,900,000
--------------
51,318,000
--------------
Total Municipal Bonds
(amortized cost
$934,021,461)............... 934,021,461
--------------
COMMERCIAL PAPER - 12.4%
ARIZONA - 0.8%
Salt River Agricultural
Authority
(Improvement & Power
District)
8,000 11/06/00.................... 4.35 8,000,000
--------------
GEORGIA - 2.2%
Municipal Electric
Authority
(Project One)
Series 85B
14,500 11/10/00.................... 4.35 14,500,000
Municipal Electric
Authority BAN
(Project One)
Series B
8,860 12/08/00.................... 4.30 8,860,000
--------------
23,360,000
--------------
INDIANA - 0.8%
Petersburg PCR
(Indianapolis Power &
Light Co.) Series 91
4,000 12/07/00.................... 4.35 4,000,000
Sullivan Cooperative
Finance Corp.
(Hoosier Energy Rural
Electric) Series 85L-4
5,000 12/13/00.................... 4.30 5,000,000
--------------
9,000,000
--------------
KENTUCKY - 2.7%
Kentucky Asset/Liability
Commission
(Road Fund Second
Series)
Series 99
12,500 3/01/01..................... 4.35 12,500,000
Pendleton County
(Kentucky Assoc. of
County Leasing)
16,000 11/09/00.................... 4.25 16,000,000
--------------
28,500,000
--------------
OREGON - 0.5%
Oregon Health &
Higher Education
Authority
(Lewis and Clark
College Product)
5,500 12/06/00.................... 4.30 5,500,000
--------------
PENNSYLVANIA - 1.1%
Philadelphia
(Gas Works Revenue Notes)
Series C
12,000 12/07/00.................... 4.30 12,000,000
--------------
12
<PAGE>
Alliance Institutional Reserves -
Tax-Free Portfolio
================================================================================
Principal
Amount
(000) Security(d) Yield Value
--------------------------------------------------------------------------------
TEXAS - 0.8%
Texas Public Finance
Authority
Series B
$ 9,000 11/13/00.................... 4.30% $ 9,000,000
--------------
UTAH - 1.4%
Intermountain Power
Agency
(Power Supply)
Series B
15,000 12/13/00.................... 4.35 15,000,000
--------------
VIRGINIA - 2.1%
Norfolk IDA
(Sentara Hospital)
4,900 11/09/00.................... 4.30 4,900,000
(Sentara Hospital)
18,000 12/15/00.................... 4.30 18,000,000
--------------
22,900,000
--------------
Total Commercial Paper
(amortized cost
$133,260,000)............... 133,260,000
--------------
TOTAL INVESTMENTS - 99.1%
(amortized cost
$1,067,281,461)............. 1,067,281,461
Other assets less
liabilities - 0.9%.......... 9,333,130
--------------
NET ASSETS - 100%
(offering and redemption
price of $1.00 per share;
277,466,954 Class A shares,
563,457,340 Class B shares
and 235,773,795 Class C
shares outstanding)......... $1,076,614,591
==============
--------------------------------------------------------------------------------
See Glossary of Terms on page 20.
See notes to financial statements.
13
<PAGE>
STATEMENT OF NET ASSETS
October 31, 2000 (unaudited) Alliance Institutional Reserves - Trust Portfolio
================================================================================
Principal
Amount
(000) Security Yield Value
--------------------------------------------------------------------------------
COMMERCIAL PAPER - 73.4%
American General Finance
$ 11,000 12/07/00.................... 6.49% $ 10,928,610
Associates Corp. B.V.
9,000 11/29/00.................... 6.49 8,954,570
AT&T Corp.
10,000 11/27/00.................... 6.48 9,953,200
Australia New Zealand
(Delaware)
5,100 11/08/00.................... 6.53 5,093,524
Bank of America Corp.
10,000 11/06/00.................... 6.61 9,990,819
Bank of Scotland
Treasury Services PLC
10,000 11/21/00.................... 6.48 9,964,000
Banque Caisse
d'Epargne L'etat
15,000 12/27/00.................... 6.50 14,848,333
BellSouth Capital Funding
10,000 12/01/00.................... 6.47 9,946,083
BMW US Capital Corp.
10,000 11/06/00.................... 6.50 9,990,972
CDC Commercial Paper
30,000 11/01/00.................... 6.63 30,000,000
Centric Capital Corp.
14,100 11/09/00 (a)................ 6.51 14,079,602
CIT Group, Inc.
14,000 11/30/00.................... 6.49 13,926,807
Clipper Receivables Corp.
12,000 11/07/00 (a)................ 6.53 11,986,940
Corporate Asset
Funding Corp.
7,600 11/09/00 (a)................ 6.51 7,589,005
CXC, Inc.
20,000 11/22/00 (a)................ 6.50 19,924,167
7,000 11/28/00 (a)................ 6.51 6,965,822
DaimlerChrysler Corp.
15,000 11/15/00.................... 6.49 14,962,142
Den Danske Bank
4,000 11/29/00.................... 6.49 3,979,809
10,000 12/01/00.................... 6.50 9,945,833
Dexia CLF Finance Co.
14,000 12/26/00.................... 6.47 13,861,614
Equilon Enterprises LLC
16,000 12/06/00.................... 6.47 15,899,356
Exxon Project
Investment Corp.
40,000 11/14/00.................... 6.49 39,906,256
Ford Motor Credit Corp.
13,000 11/02/00.................... 6.49 12,997,656
Fortis Funding
10,000 11/28/00.................... 6.47 9,951,475
Four Winds Funding Corp.
13,000 12/20/00 (a)................ 6.50 12,884,986
Galaxy Funding, Inc.
14,000 12/15/00 (a)................ 6.52 13,888,436
GE Financial Assurance
Holdings
10,000 12/11/00.................... 6.50 9,927,778
General Electric Capital
Corp.
20,000 11/22/00.................... 6.53 19,923,817
General Motors
Acceptance Corp.
15,000 12/01/00.................... 6.48 14,919,000
Golden Funding Corp.
14,478 11/07/00 (a)................ 6.54 14,462,219
Goldman Sachs Group L.P.
5,000 11/15/00 (a)................ 6.50 4,987,361
Grand Funding Corp.
5,000 12/06/00 (a)................ 6.50 4,968,403
8,131 11/06/00 (a)................ 6.54 8,123,614
Greenwich Funding Corp.
10,000 11/15/00 (a)................ 6.50 9,974,722
9,938 11/01/00 (a)................ 6.52 9,938,000
Halifax PLC
12,000 3/14/01..................... 6.44 11,714,715
Henkel Corp.
10,000 11/27/00.................... 6.50 9,953,056
Home Depot Real Estate
Funding
5,000 11/06/00.................... 6.77 4,995,299
Household Finance Corp.
15,000 11/10/00.................... 6.49 14,975,663
ING Insurance Holdings, Inc.
10,000 12/11/00.................... 6.50 9,927,778
Jupiter Securization Corp.
5,000 11/10/00.................... 6.52 4,991,850
Koch Industries
30,000 11/01/00 (a)................ 6.62 30,000,000
Merck & Co., Inc
15,000 11/27/00.................... 6.47 14,929,908
National City Corp.
14,000 11/27/00.................... 6.49 13,934,379
Old Line Funding
10,000 11/09/00 (a)................ 6.50 9,985,555
5,921 11/20/00 (a)................ 6.50 5,900,688
Preferred Receivables
Funding Corp.
10,000 11/21/00 (a)................ 6.51 9,963,833
Prudential Funding Corp.
10,000 11/24/00.................... 6.48 9,958,600
14
<PAGE>
Alliance Institutional Reserves - Trust Portfolio
================================================================================
Principal
Amount
(000) Security Yield Value
--------------------------------------------------------------------------------
Receivables Capital
Corp.
$ 6,186 11/09/00 (a)................ 6.52% $ 6,177,037
Sara Lee Corp.
14,625 11/02/00.................... 6.58 14,622,327
SBC Communications,
Inc.
10,000 11/20/00.................... 6.49 9,965,747
Sheffield Receivables
Corp.
10,000 11/27/00 (a)................ 6.51 9,952,983
10,000 11/01/00 (a)................ 6.52 10,000,000
Teacher's Insurance
15,025 11/27/00.................... 6.50 14,954,466
Thames Asset Global
Securitization
10,000 12/15/00 (a)................ 6.50 9,920,556
UBS Finance, Inc.
40,000 11/01/00.................... 6.65 40,000,000
Unilever Capital Corp.
15,000 11/01/00 (a)................ 6.51 15,000,000
Vattenfall Treasury
10,000 12/11/00.................... 6.49 9,927,889
Verizon Network
Funding
10,000 11/15/00.................... 6.50 9,974,722
5,000 12/14/00.................... 6.50 4,961,181
Wal-Mart Stores, Inc.
14,000 11/28/00.................... 6.48 13,931,960
Wells Fargo Corp.
10,000 11/24/00.................... 6.48 9,958,600
Westpac Capital Corp.
10,000 11/01/00.................... 6.64 10,000,000
--------------
Total Commercial Paper
(amortized cost
$780,223,723)............... 780,223,723
--------------
CERTIFICATES OF
DEPOSIT - 13.9%
Banco Bilbao Vizcaya
10,000 6.56%, 11/28/00............. 6.56 10,000,000
Bank of Austria
10,000 6.60%, 11/10/00............. 6.60 10,000,018
Canadian Imperial Bank
5,000 6.53%, 11/27/00............. 6.53 5,000,000
Credit Agricole
Indosuez
14,000 7.21%, 3/08/01.............. 7.20 14,000,467
Deutsche Bank FRN
6,000 6.52%, 3/13/01 FRN.......... 6.56 5,999,146
Dresdner Bank AG
16,000 6.46%, 12/11/00............. 6.46 16,000,000
Landesbank Baden-
Wurttemberg
5,000 7.37%, 5/30/01.............. 7.37 5,000,000
Landesbank-Hessen-
Thueringen
11,000 7.14%, 5/08/01.............. 7.16 10,999,598
Lloyds Bank PLC
5,000 7.29%, 5/16/01.............. 7.30 4,999,747
Nordeutsche
Landesbank
5,000 6.20%, 12/01/00............. 6.22 4,999,726
Norinchukin Bank
10,000 6.58%, 11/30/00............. 6.58 10,000,000
Rabobank Nederland
5,000 6.68%, 2/12/01.............. 6.71 4,999,531
5,000 7.29%, 5/16/01.............. 7.30 4,999,747
Royal Bank of Scotland
12,000 6.56%, 11/27/00............. 6.56 12,000,000
Southtrust Bank NA
6,000 6.56%, 11/07/00............. 6.56 6,000,000
8,000 6.58%, 12/12/00............. 6.58 8,000,000
Toronto Dominion Bank
15,000 6.63%, 4/16/01.............. 6.63 15,000,000
--------------
Total Certificates of Deposit
(amortized cost
$147,997,980)............... 147,997,980
--------------
CORPORATE
OBLIGATIONS - 10.0%
Allstate Life Insurance
Funding Agreement FRN
5,000 6.67%, 3/01/01 (b).......... 6.67 5,000,000
American Express
Centurion Bank
FRN MTN
5,000 6.67%, 4/26/01.............. 6.67 5,000,000
Asset Backed Capital,
Ltd. FRN
5,000 6.61%, 9/17/01 MTN (a)...... 6.61 5,000,000
8,000 6.63%, 5/25/01 MTN (a)...... 6.64 7,999,562
6,000 6.75%, 11/15/00 MTN (a)..... 6.75 6,000,000
4,000 6.80%, 2/07/01 MTN (a)...... 6.80 4,000,000
Beta Finance Corp.
MTN
9,000 7.30%, 5/15/01 (a).......... 7.30 9,000,000
Hartford Life Insurance
Co. FRN
10,000 6.62%, 12/01/00............. 6.62 10,000,000
Merrill Lynch & Co.,
Inc. FRN
16,000 6.60%, 4/12/01.............. 6.61 15,999,286
Metlife Funding
Agreement FRN
14,000 6.62%, 4/02/01.............. 6.62 14,000,000
Prudential Insurance
Co. of America FRN
4,000 6.63%, 11/30/00............. 6.63 4,000,000
15
<PAGE>
STATEMENT OF NET ASSETS
(continued) Alliance Institutional Reserves - Trust Portfolio
================================================================================
Principal
Amount
(000) Security Yield Value
--------------------------------------------------------------------------------
Sigma Finance, Inc.
FRN MTN
$ 5,000 6.61%, 11/01/01 (a)......... 6.61% $ 5,000,000
5,000 6.62%, 8/06/01 (a).......... 6.62 5,000,000
5,000 6.65%, 9/25/01 (a).......... 6.65 5,000,000
Travelers Life Funding
Agreement FRN
5,000 6.60%, 1/15/01 (b).......... 6.60 5,000,000
--------------
Total Corporate Obligations
(amortized cost
$105,998,848)............... 105,998,848
--------------
BANK OBLIGATIONS - 1.5%
LaSalle National Bank NA
11,000 6.53%, 11/29/00............. 6.53 11,000,000
5,000 6.65%, 3/30/01.............. 6.65 5,000,000
--------------
Total Bank Obligations
(amortized cost
$16,000,000)................ 16,000,000
--------------
TIME DEPOSIT - 1.3%
Toronto Dominion
14,200 6.56%, 11/01/00
(amortized cost
$14,200,000)................ 6.56 14,200,000
--------------
U.S. GOVERNMENT &
AGENCY OBLIGATION - 0.9%
Federal Home Loan
Bank MTN
10,000 6.40%, 2/09/01 MTN
(amortized cost
$9,999,374)................. 6.42 9,999,374
--------------
TOTAL INVESTMENTS - 101.0%
(amortized cost
$1,074,419,925)............. 1,074,419,925
Other assets less
liabilities - (1.0%)........ (10,732,982)
--------------
NET ASSETS - 100% (offering
and redemption price of
$1.00 per share;
1,063,718,304 Class A
shares outstanding)......... $1,063,686,943
==============
--------------------------------------------------------------------------------
See Glossary of Terms on page 20.
See notes to financial statements.
16
<PAGE>
STATEMENT OF NET ASSETS Alliance Institutional Reserves -
October 31, 2000 (unaudited) Treasury Portfolio
================================================================================
Principal
Amount
(000) Security Yield Value
--------------------------------------------------------------------------------
REPURCHASE
AGREEMENTS - 78.3%
ABN AMRO
$ 14,000 6.52%, dated 10/31/00,
due 11/01/00 in the
amount of $14,002,536
(cost $14,000,000;
collateralized by
$10,943,000 U.S.
Treasury Bond,
8.50%, 2/15/20,
value $14,230,000).......... 6.52% $ 14,000,000
Bank of America Corp.
13,000 6.43%, dated 10/31/00,
due 11/14/00
in the amount of
$13,032,507 (cost
$13,000,000; collateralized
by $9,920,000
U.S. Treasury Note,
8.75%, 8/15/20,
value $13,231,000) (c)...... 6.43 13,000,000
Barclays de Zoete
Wedd Securities, Inc.
5,000 6.37%, dated 10/16/00,
due 11/27/00 in the amount
of $5,037,158 (cost
$5,000,000; collateralized
by $4,955,000 U.S.
Treasury Note, 6.25%,
10/31/01, value
$5,101,000) (c)............. 6.37 5,000,000
Barclays de Zoete
Wedd Securities, Inc.
8,000 6.38%, dated 9/28/00,
due 11/27/00 in the amount
of $8,085,067 (cost
$8,000,000; collateralized
by $6,580,000 U.S.
Treasury Bond, 8.125%,
8/15/21, value $8,177,000)
(c)........................ 6.38 8,000,000
Bear Stearns & Co.
8,000 6.40%, dated 9/28/00,
due 11/27/00 in the amount
of $8,085,333 (cost
$8,000,000; collateralized
by $8,265,000 U.S.
Treasury Note, 5.25%,
8/15/03, value
$8,163,000)(c).............. 6.40 8,000,000
Chase Securities, Inc.
14,000 6.52%, dated 10/31/00,
due 11/01/00 in the
amount of $14,002,536
(cost $14,000,000;
collateralized by
$14,630,000 U.S.
Treasury Bond,
5.75%, 2/15/04,
value $14,290,000).......... 6.52 14,000,000
CS First Boston Corp.
13,000 6.45%, dated 10/30/00,
due 11/27/00 in the
amount of $13,065,217
(cost $13,000,000;
collateralized by
$10,160,000 U.S.
Treasury Bond,
8.50%, 2/15/20,
value $13,260,000) (c)...... 6.45 13,000,000
Deutsche Bank
13,000 6.35%, dated 10/31/00,
due 11/01/00 in the
amount of $13,002,293
(cost $13,000,000;
collateralized by
$9,046,000 U.S.
Treasury Bond,
14.00%, 11/15/11,
value $13,260,000).......... 6.35 13,000,000
Dresdner Bank AG
14,000 6.54%, dated 10/31/00,
due 11/01/00 in the
amount of $14,002,543
(cost $14,000,000;
collateralized by
$13,601,000 U.S.
Treasury Bond,
6.25%, 8/15/23,
value $14,223,000).......... 6.54 14,000,000
First Chicago Corp.
8,000 6.35%, dated 9/28/00,
due 11/22/00 in the
amount of $8,077,611
(cost $8,000,000;
collateralized by
$7,844,000 U.S.
Treasury Note,
7.50%, 11/15/01,
value $8,207,000) (c)....... 6.35 8,000,000
17
<PAGE>
STATEMENT OF NET ASSETS
(continued) Alliance Institutional Reserves - Treasury Portfolio
================================================================================
Principal
Amount
(000) Security Yield Value
--------------------------------------------------------------------------------
First Chicago Corp.
$ 6,000 6.36%, dated 10/12/00,
due 11/22/00 in the
amount of $6,043,360
(cost $6,000,000;
collateralized by
$5,863,000 U.S.
Treasury Note,
7.50%, 11/15/01,
value $6,121,000) (c)....... 6.36% 6,000,000
Goldman Sachs & Co.
14,000 6.50%, dated 10/31/00,
due 11/01/00 in the
amount of 14,002,528
(cost $14,000,000;
collateralized by
$14,000,824 U.S. Treasury,
6.375%, 6/30/02,
value $14,281,000).......... 6.50 14,000,000
Greenwich Funding
Corp.
14,000 6.55%, dated 10/31/00,
due 11/01/00 in the amount
of $14,002,547
(cost $14,000,000;
collateralized by
$12,900,000 U.S.
Treasury Note,
7.875%, 11/15/04,
value $14,287,000).......... 6.55 14,000,000
Morgan (J.P.) & Co.
14,000 6.45%, dated 10/31/00,
due 11/01/00 in the
amount of $14,002,508
(cost $14,000,000;
collateralized by
$15,232,000 U.S.
Treasury Bond,
5.25%, 11/15/28,
value $14,235,000).......... 6.45 14,000,000
Morgan Stanley Dean
Witter
14,000 6.42%, dated 9/29/00 &
10/12/00, due 11/29/00 in
the amount of $8,087,027
& $6,051,360 (cost
$8,000,000 & $6,000,000;
collateralized by
$8,047,099 U.S. Treasury
Note, 0.00%, 2/22/01 &
$6,036,887 U.S. Treasury
Note, 0.00%, 1/25/01,
value $14,366,000) (c)...... 6.42 14,000,000
Paribas Corp.
6,000 6.35%, dated 10/12/00,
due 11/29/00 in the
amount of $6,050,800
(cost $6,000,000;
collateralized by
$5,547,000 U.S.
Treasury Note,
7.875%, 11/15/04,
value $6,121,000) (c)....... 6.35 6,000,000
Paribas Corp.
8,000 6.40%, dated 9/28/00,
due 11/29/00 in the
amount of $8,088,178 (cost
$8,000,000; collateralized
by $6,279,000 U.S.
Treasury Bond,
8.75%, 5/15/17,
value $8,177,000) (c)....... 6.40 8,000,000
Salomon Smith Barney,
Inc.
13,000 6.43%, dated 10/30/00,
due 11/29/00 in the
amount of $13,069,658
(cost $13,000,000;
collateralized by
$12,007,349 U.S.
Treasury Bond,
5.375%, 6/30/03,
value $13,267,000) (c)...... 6.43 13,000,000
State Street Bank and
Trust Co.
10,900 6.52%, dated 10/31/00,
due 11/01/00 in the
amount of $10,901,974
(cost $10,900,000;
collateralized by
$11,170,000 U.S.
Treasury Note,
6.375%, 9/30/01,
value $11,231,000).......... 6.52 10,900,000
UBS Finance, Inc.
6,000 6.36%, dated 10/16/00,
due 11/28/00 in the
amount of $6,045,580
(cost $6,000,000;
collateralized by
$3,991,000 U.S.
Treasury Bond,
13.25%, 5/15/14,
value $6,120,000) (c)....... 6.36 6,000,000
18
<PAGE>
Alliance Institutional Reserves - Treasury Portfolio
================================================================================
Principal
Amount
(000) Security Yield Value
--------------------------------------------------------------------------------
UBS Finance, Inc.
8,000 6.40%, dated 9/28/00,
due 11/28/00 in the
amount of $8,086,756
(cost $8,000,000;
collateralized by
$6,271,000 U.S.
Treasury Bond,
8.75%, 5/15/17,
value $8,174,000) (c)....... 6.40% $ 8,000,000
------------
Total Repurchase
Agreements
(amortized cost
$223,900,000)............... 223,900,000
------------
U.S. GOVERNMENT
OBLIGATIONS - 21.5%
U.S. TREASURY BILLS - 17.0%
3,000 11/09/00.................... 5.99 2,996,037
2,000 11/16/00.................... 6.00 1,995,042
5,000 11/30/00.................... 6.02 4,976,014
2,000 11/24/00.................... 6.03 1,992,372
7,000 11/24/00.................... 6.07 6,973,122
5,000 12/07/00.................... 6.11 4,969,725
18,000 12/28/00.................... 6.12 17,828,208
1,000 3/29/01..................... 6.16 975,374
1,000 3/22/01..................... 6.18 976,422
2,000 3/15/01..................... 6.20 1,954,887
3,000 3/29/01..................... 6.21 2,925,321
------------
48,562,524
------------
U.S. TREASURY NOTES - 4.5%
8,000 4.63%, 11/30/00............. 6.21 7,989,016
3,000 5.63%, 2/28/01.............. 6.26 2,993,080
2,000 5.75%, 11/15/00............. 6.25 1,999,439
------------
12,981,535
------------
Total U.S. Government
Obligations
(amortized cost
$61,544,059)................ 61,544,059
------------
TOTAL INVESTMENTS - 99.8%
(amortized cost
$285,444,059)............... 285,444,059
Other assets less
liabilities - 0.2%.......... 440,484
------------
NET ASSETS - 100%
(offering and redemption
price of $1.00 per
share; 5,363,618
Class A shares, 9,284,067
Class B shares and
271,231,466 Class C
shares outstanding)......... $285,884,543
============
--------------------------------------------------------------------------------
See Glossary of Terms on page 20.
See notes to financial statements.
19
<PAGE>
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
October 31, 2000, these securities amounted to $1,358,877,788,
representing 29.3% of net assets on the Prime Portfolio, and $293,673,491
representing 27.6% 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 1.1% of net
assets on the Prime Portfolio, and $10,000,000, representing 0.9% 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
FHLMC Federal Home Loan Mortgage Corporation
FNMA Federal National Mortgage Association
FRN Floating Rate Note
FSA Financial Security Assurance, Inc.
GNMA Government National Mortgage Association
GO General Obligation
HEFA Health & Educational Facility Authority
HFA Housing Finance Agency/Authority
IDA Industrial Development Authority
IDR Industrial Development Revenue
MFHR Multi-Family Housing Revenue
MTN Medium Term Note
PCR Pollution Control Revenue
SWDR Solid Waste Disposal Revenue
SFMR Single Family Mortgage Revenue
TRAN Tax & Revenue Anticipation Note
See notes to financial statements.
20
<PAGE>
STATEMENT OF OPERATIONS
Six Months Ended October 31, 2000 (unaudited) Alliance Institutional Reserves
================================================================================
<TABLE>
<CAPTION>
PRIME GOVERNMENT TAX-FREE
PORTFOLIO PORTFOLIO PORTFOLIO
============= ============= =============
<S> <C> <C> <C>
INVESTMENT INCOME
Interest .................................................. $ 134,523,350 $ 26,051,394 $ 19,402,941
------------- ------------- -------------
EXPENSES
Advisory fee (Note B) ..................................... 4,070,119 801,030 876,572
Distribution fee - Class B ................................ 873,965 162,448 228,441
Distribution fee - Class C ................................ 194,890 33,449 113,610
Custodian ................................................. 221,088 105,103 102,245
Registration .............................................. 176,681 92,431 96,887
Audit and legal ........................................... 32,975 10,585 5,961
Printing .................................................. 31,344 8,686 5,585
Transfer agency ........................................... 17,086 15,996 11,926
Directors' fees ........................................... 2,600 2,600 2,600
Miscellaneous ............................................. 10,496 2,997 1,698
------------- ------------- -------------
Total expenses ............................................ 5,631,244 1,235,325 1,445,525
Less: expense reimbursement ............................... (492,270) (238,398) (226,902)
------------- ------------- -------------
Net expenses .............................................. 5,138,974 996,927 1,218,623
------------- ------------- -------------
Net investment income ..................................... 129,384,376 25,054,467 18,184,318
REALIZED GAIN ON INVESTMENTS
Net realized gain on investment transactions .............. 12,914 967 -0-
------------- ------------- -------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS .................................................... $ 129,397,290 $ 25,055,434 $ 18,184,318
============= ============= =============
</TABLE>
--------------------------------------------------------------------------------
See notes to financial statements.
21
<PAGE>
STATEMENT OF OPERATIONS
(continued) Alliance Institutional Reserves
================================================================================
TRUST TREASURY
PORTFOLIO PORTFOLIO
=========== ===========
INVESTMENT INCOME
Interest ...................................... $30,781,692 $ 8,720,856
----------- -----------
EXPENSES
Advisory fee (Note B) ......................... 2,096,914 279,720
Distribution fee - Class B .................... -0- 9,286
Distribution fee - Class C .................... -0- 318,331
Custodian ..................................... 103,318 83,927
Registration .................................. 86,658 35,649
Audit and legal ............................... 13,031 3,185
Printing ...................................... 13,263 854
Transfer agency ............................... 11,471 11,163
Directors' fees ............................... 2,600 2,600
Miscellaneous ................................. 2,651 1,984
----------- -----------
Total expenses ................................ 2,329,906 746,699
Less: expense reimbursement ................... -0- (139,362)
----------- -----------
Net expenses .................................. 2,329,906 607,337
----------- -----------
Net investment income ......................... 28,451,786 8,113,519
REALIZED GAIN ON INVESTMENTS
Net realized gain on investment transactions .. 8 1,087
----------- -----------
NET INCREASE IN NET ASSETS FROM
OPERATIONS ........................................ $28,451,794 $ 8,114,606
=========== ===========
--------------------------------------------------------------------------------
See notes to financial statements.
22
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS Alliance Institutional Reserves
================================================================================
<TABLE>
<CAPTION>
PRIME PORTFOLIO GOVERNMENT PORTFOLIO
===================================== ======================================
Six Months Ended Six Months Ended
October 31, 2000 Year Ended October 31, 2000 Year Ended
(unaudited) April 30, 2000 (unaudited) April 30, 2000
================ =============== ================ ===============
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS FROM OPERATIONS
Net investment income .................. $ 129,384,376 $ 177,969,048 $ 25,054,467 $ 35,630,985
Net realized gain (loss) on
investment transactions ............. 12,914 29,650 967 (6,628)
--------------- --------------- --------------- ---------------
Net increase in net assets from
operations .......................... 129,397,290 177,998,698 25,055,434 35,624,357
DIVIDENDS TO SHAREHOLDERS
FROM:
Net investment income
Class A ............................. (69,478,114) (101,483,436) (14,140,080) (23,500,642)
Class B ............................. (55,101,791) (73,168,580) (10,101,553) (11,472,793)
Class C ............................. (4,804,471) (3,317,032) (812,835) (657,550)
CAPITAL STOCK TRANSACTIONS
Net increase ........................... 826,196,667 1,569,646,842 216,669,234 121,768,887
--------------- --------------- --------------- ---------------
Total increase ......................... 826,209,581 1,569,676,492 216,670,200 121,762,259
NET ASSETS
Beginning of period .................... 3,814,941,160 2,245,264,668 655,457,224 533,694,965
--------------- --------------- --------------- ---------------
End of period .......................... $ 4,641,150,741 $ 3,814,941,160 $ 872,127,424 $ 655,457,224
=============== =============== =============== ===============
</TABLE>
--------------------------------------------------------------------------------
See notes to financial statements.
23
<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, 2000 Year Ended October 31, 2000 Year Ended
(unaudited) April 30, 2000 (unaudited) April 30, 2000
================ =============== ================ ===============
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS FROM OPERATIONS
Net investment income .................. $ 18,184,318 $ 19,845,469 $ 28,451,786 $ 38,618,840
Net realized gain on
investment transactions ............. -0- -0- 8 8,395
--------------- --------------- --------------- ---------------
Net increase in net assets from
operations .......................... 18,184,318 19,845,469 28,451,794 38,627,235
DIVIDENDS TO SHAREHOLDERS
FROM:
Net investment income
Class A ............................. (7,017,496) (9,112,022) (28,451,786) (38,618,840)
Class B ............................. (9,380,585) (9,775,850) -0- -0-
Class C ............................. (1,786,237) (957,597) -0- -0-
CAPITAL STOCK TRANSACTIONS
Net increase ........................... 245,335,926 380,308,933 224,393,125 44,255,845
--------------- --------------- --------------- ---------------
Total increase ......................... 245,335,926 380,308,933 224,393,133 44,264,240
NET ASSETS
Beginning of period .................... 831,278,665 450,969,732 839,293,810 795,029,570
--------------- --------------- --------------- ---------------
End of period .......................... $ 1,076,614,591 $ 831,278,665 $ 1,063,686,943 $ 839,293,810
=============== =============== =============== ===============
</TABLE>
--------------------------------------------------------------------------------
See notes to financial statements.
24
<PAGE>
Alliance Institutional Reserves
================================================================================
<TABLE>
<CAPTION>
TREASURY PORTFOLIO
==========================================
Six Months Ended
October 31, 2000 Year Ended
(unaudited) April 30, 2000
================ ==============
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income .................................................... $ 8,113,519 $ 12,360,663
Net realized gain on investment transactions ............................. 1,087 6,649
------------- -------------
Net increase in net assets from operations ............................... 8,114,606 12,367,312
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income
Class A ............................................................... (198,628) (179,288)
Class B ............................................................... (544,895) (3,325,008)
Class C ............................................................... (7,369,996) (8,856,367)
CAPITAL STOCK TRANSACTIONS
Net increase (decrease) .................................................. (153,290,175) 387,134,645
------------- -------------
Total increase (decrease) ................................................ (153,289,088) 387,141,294
NET ASSETS
Beginning of period ...................................................... 439,173,631 52,032,337
------------- -------------
End of period ............................................................ $ 285,884,543 $ 439,173,631
============= =============
</TABLE>
--------------------------------------------------------------------------------
See notes to financial statements.
25
<PAGE>
NOTES TO FINANCIAL STATEMENTS
October 31, 2000 (unaudited) 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
accounting principles generally accepted in the United States, 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 six
months ended October 31, 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 six months ended October 31, 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 six
months ended October 31, 2000, reimbursement was $492,270, $238,398, $226,902
and $139,362 for the Prime, Government, Tax-Free 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, 2000.
For the six months ended October 31, 2000, the Fund's expenses were reduced by
$1,873, $710, $301, $576 and $579 for the Prime, Government, Tax-Free, Trust and
Treasury Portfolios, respectively, under an expense offset arrangement with
Alliance Fund Services, Inc.
26
<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. 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 October 31, 2000, the cost of investments for federal income tax purposes was
the same as the cost for financial reporting purposes for all Portfolios. At
October 31, 2000, the Treasury Portfolio had accumulated undistributed net
realized gains of $5,393. 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 80,000,000,000 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 October 31, 2000, capital paid-in aggregated
$4,641,244,986 on Prime Portfolio, $872,263,246 on Government Portfolio,
$1,076,698,086 on Tax-Free Portfolio, $1,063,718,304 on Trust Portfolio and
$285,879,151 on Treasury Portfolio. Transactions, all at $1.00 per share, were
as follows:
<TABLE>
<CAPTION>
Prime Portfolio
==============================================
Six Months Ended Year Ended
October 31, 2000 April 30,
(unaudited) 2000
================ ===============
<S> <C> <C>
Class A
Shares sold ............................................................ 8,841,243,801 17,432,935,021
Shares issued on reinvestments of dividends ............................ 69,478,114 101,483,436
Shares redeemed ........................................................ (8,282,244,595) (17,416,989,217)
--------------- ---------------
Net increase ........................................................... 628,477,320 117,429,240
=============== ===============
</TABLE>
27
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued) Alliance Institutional Reserves
================================================================================
<TABLE>
<CAPTION>
Prime Portfolio
==============================================
Six Months Ended Year Ended
October 31, 2000 April 30,
(unaudited) 2000
================ ===============
<S> <C> <C>
Class B
Shares sold ............................................................ 4,626,268,556 11,185,317,273
Shares issued on reinvestments of dividends ............................ 55,101,791 73,168,580
Shares redeemed ........................................................ (4,519,780,598) (9,923,263,140)
--------------- ---------------
Net increase ........................................................... 161,589,749 1,335,222,713
=============== ===============
<CAPTION>
Six Months Ended Year Ended
October 31, 2000 April 30,
(unaudited) 2000
================ ===============
<S> <C> <C>
Class C
Shares sold ............................................................ 204,163,600 342,712,572
Shares issued on reinvestments of dividends ............................ 4,804,471 3,317,032
Shares redeemed ........................................................ (172,838,473) (229,034,715)
--------------- ---------------
Net increase ........................................................... 36,129,598 116,994,889
=============== ===============
<CAPTION>
Government Portfolio
==============================================
Six Months Ended Year Ended
October 31, 2000 April 30,
(unaudited) 2000
================ ===============
<S> <C> <C>
Class A
Shares sold ............................................................ 1,964,266,672 3,762,833,361
Shares issued on reinvestments of dividends ............................ 14,140,080 23,500,642
Shares redeemed ........................................................ (1,986,518,257) (3,738,467,442)
--------------- ---------------
Net increase (decrease) ................................................ (8,111,505) 47,866,561
=============== ===============
<CAPTION>
Six Months Ended Year Ended
October 31, 2000 April 30,
(unaudited) 2000
================ ===============
<S> <C> <C>
Class B
Shares sold ............................................................ 1,022,582,791 1,412,214,581
Shares issued on reinvestments of dividends ............................ 10,101,553 11,472,793
Shares redeemed ........................................................ (830,306,828) (1,362,097,417)
--------------- ---------------
Net increase ........................................................... 202,377,516 61,589,957
=============== ===============
<CAPTION>
Six Months Ended Year Ended
October 31, 2000 April 30,
(unaudited) 2000
================ ===============
<S> <C> <C>
Class C
Shares sold ............................................................ 87,783,491 63,951,836
Shares issued on reinvestments of dividends ............................ 812,835 657,550
Shares redeemed ........................................................ (66,193,103) (52,297,017)
--------------- ---------------
Net increase ........................................................... 22,403,223 12,312,369
=============== ===============
</TABLE>
28
<PAGE>
Alliance Institutional Reserves
================================================================================
<TABLE>
<CAPTION>
Tax-Free Portfolio
=============================================
Six Months Ended Year Ended
October 31, 2000 April 30,
(unaudited) 2000
================ ==============
<S> <C> <C>
Class A
Shares sold .............................................................. 736,368,332 1,542,876,825
Shares issued on reinvestments of dividends .............................. 7,017,496 9,112,022
Shares redeemed .......................................................... (872,863,876) (1,401,140,709)
-------------- --------------
Net increase (decrease) .................................................. (129,478,048) 150,848,138
============== ==============
<CAPTION>
Six Months Ended Year Ended
October 31, 2000 April 30,
(unaudited) 2000
================ ==============
<S> <C> <C>
Class B
Shares sold .............................................................. 673,927,318 966,284,862
Shares issued on reinvestments of dividends .............................. 9,380,585 9,775,850
Shares redeemed .......................................................... (495,174,493) (793,467,000)
-------------- --------------
Net increase ............................................................. 188,133,410 182,593,712
============== ==============
<CAPTION>
Six Months Ended Year Ended
October 31, 2000 April 30,
(unaudited) 2000
================ ==============
<S> <C> <C>
Class C
Shares sold .............................................................. 312,735,064 206,824,311
Shares issued on reinvestments of dividends .............................. 1,786,237 957,597
Shares redeemed .......................................................... (127,840,737) (160,914,825)
-------------- --------------
Net increase ............................................................. 186,680,564 46,867,083
============== ==============
<CAPTION>
Trust Portfolio
=============================================
Six Months Ended Year Ended
October 31, 2000 April 30,
(unaudited) 2000
================ ==============
<S> <C> <C>
Class A
Shares sold .............................................................. 1,485,986,992 3,025,202,725
Shares issued on reinvestments of dividends .............................. 28,451,786 38,618,840
Shares redeemed .......................................................... (1,290,045,653) (3,019,565,720)
-------------- --------------
Net increase ............................................................. 224,393,125 44,255,845
============== ==============
<CAPTION>
Treasury Portfolio
=============================================
Six Months Ended Year Ended
October 31, 2000 April 30,
(unaudited) 2000
================ ==============
<S> <C> <C>
Class A
Shares sold .............................................................. 14,611,300 7,883,277
Shares issued on reinvestments of dividends .............................. 198,628 179,288
Shares redeemed .......................................................... (13,340,304) (8,236,056)
-------------- --------------
Net increase (decrease) .................................................. 1,469,624 (173,491)
============== ==============
</TABLE>
29
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued) Alliance Institutional Reserves
================================================================================
<TABLE>
<CAPTION>
Treasury Portfolio
=============================================
Six Months Ended Year Ended
October 31, 2000 April 30,
(unaudited) 2000
================ ==============
<S> <C> <C>
Class B
Shares sold .............................................................. 104,694,098 134,376,295
Shares issued on reinvestments of dividends .............................. 544,895 3,325,008
Shares redeemed .......................................................... (181,318,875) (67,223,121)
-------------- --------------
Net increase (decrease) .................................................. (76,079,882) 70,478,182
============== ==============
<CAPTION>
Six Months Ended Year Ended
October 31, 2000 April 30,
(unaudited) 2000
================ ==============
<S> <C> <C>
Class C
Shares sold .............................................................. 583,782,556 1,668,329,779
Shares issued on reinvestments of dividends .............................. 7,369,996 8,856,367
Shares redeemed .......................................................... (669,832,469) (1,360,356,192)
-------------- --------------
Net increase (decrease) .................................................. (78,679,917) 316,829,954
============== ==============
</TABLE>
30
<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,
2000 =======================================================================
(unaudited) 2000 1999 1998 1997 1996
=========== =========== =========== =========== =========== ===========
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period .. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
----------- ----------- ----------- ----------- ----------- -----------
Income From Investment Operations
Net investment income (a) ............. .0323 .0540 .0518 .0552 .0530 .0560
----------- ----------- ----------- ----------- ----------- -----------
Less: Dividends
Dividends from net investment income .. (.0323) (.0540) (.0518) (.0552) (.0530) (.0560)
----------- ----------- ----------- ----------- ----------- -----------
Net asset value, end of period ........ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
=========== =========== =========== =========== =========== ===========
Total Return
Total investment return based on net
asset value (b) ................... 3.23% 5.54% 5.31% 5.68% 5.44% 5.76%
Ratios/Supplemental Data
Net assets, end of period (in millions) $ 2,417 $ 1,788 $ 1,671 $ 1,765 $ 867 $ 493
Ratios to average net assets of:
Expenses, net of waivers and
reimbursements .................. .20%(c) .20% .20% .20% .20% .20%
Expenses, before waivers and
reimbursements .................. .22%(c) .24% .24% .24% .29% .32%
Net investment income (a) ......... 6.41%(c) 5.39% 5.16% 5.52% 5.31% 5.54%
</TABLE>
<TABLE>
<CAPTION>
Prime Portfolio
==================================================
CLASS B
==================================================
Six Months August 14,
Ended Year 1998(d)
October 31, Ended to
2000 April 30, April 30,
(unaudited) 2000 1999
=========== =========== ===========
<S> <C> <C> <C>
Net asset value, beginning of period ................................... $ 1.00 $ 1.00 $ 1.00
----------- ----------- -----------
Income From Investment Operations
Net investment income (a) .............................................. .0318 .0530 .0358
----------- ----------- -----------
Less: Dividends
Dividends from net investment income ................................... (.0318) (.0530) (.0358)
----------- ----------- -----------
Net asset value, end of period ......................................... $ 1.00 $ 1.00 $ 1.00
=========== =========== ===========
Total Return
Total investment return based on net asset value (b) ................... 3.18% 5.44% 3.65%
Ratios/Supplemental Data
Net assets, end of period (in millions) ................................ $ 2,033 $ 1,871 $ 536
Ratios to average net assets of:
Expenses, net of waivers and reimbursements ........................ .30%(c) .30% .30%(c)
Expenses, before waivers and reimbursements ........................ .32%(c) .34% .36%(c)
Net investment income (a) .......................................... 6.30%(c) 5.44% 4.82%(c)
</TABLE>
--------------------------------------------------------------------------------
See footnote summary on page 39.
31
<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 August 14,
Ended Year 1998(d)
October 31, Ended to
2000 April 30, April 30,
(unaudited) 2000 1999
=========== =========== ===========
<S> <C> <C> <C>
Net asset value, beginning of period ...................................... $ 1.00 $ 1.00 $ 1.00
--------- --------- ---------
Income From Investment Operations
Net investment income (a) ................................................. .0310 .0515 .0392
--------- --------- ---------
Less: Dividends
Dividends from net investment income ...................................... (.0310) (.0515) (.0392)
--------- --------- ---------
Net asset value, end of period ............................................ $ 1.00 $ 1.00 $ 1.00
========= ========= =========
Total Return
Total investment return based on net asset value (b) ...................... 3.10% 5.28% 3.86%
Ratios/Supplemental Data
Net assets, end of period (in millions) ................................... $ 191 $ 155 $ 38
Ratios to average net assets of:
Expenses, net of waivers and reimbursements ........................... .45%(c) .45% .45%(c)
Expenses, before waivers and reimbursements ........................... .47%(c) .50% .51%(c)
Net investment income (a) ............................................. 6.16%(c) 5.29% 4.70%(c)
</TABLE>
--------------------------------------------------------------------------------
See footnote summary on page 39.
32
<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,
2000 ==================================================================
(unaudited) 2000 1999 1998 1997 1996
=========== ========= ========= ========= ========= =========
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ........ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------- --------- --------- --------- --------- ---------
Income From Investment Operations
Net investment income (a) ................... .0317 .0527 .0505 .0543 .0519 .0552
--------- --------- --------- --------- --------- ---------
Less: Dividends
Dividends from net investment income ........ (.0317) (.0527) (.0505) (.0543) (.0519) (.0552)
--------- --------- --------- --------- --------- ---------
Net asset value, end of period .............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ========= ========= ========= =========
Total Return
Total investment return based on net
asset value (b) ......................... 3.17% 5.40% 5.18% 5.58% 5.33% 5.67%
Ratios/Supplemental Data
Net assets, end of period (in millions) ..... $ 434 $ 442 $ 394 $ 275 $ 327 $ 151
Ratios to average net assets of:
Expenses, net of waivers and
reimbursements ........................ .20%(c) .20% .20% .20% .20% .20%
Expenses, before waivers and
reimbursements ........................ .26%(c) .27% .29% .28% .35% .36%
Net investment income (a) ............... 6.29%(c) 5.30% 5.01% 5.43% 5.22% 5.50%
</TABLE>
<TABLE>
<CAPTION>
Government Portfolio
==================================================
CLASS B
==================================================
Six Months August 14,
Ended Year 1998(d)
October 31, Ended to
2000 April 30, April 30,
(unaudited) 2000 1999
=========== =========== ===========
<S> <C> <C> <C>
Net asset value, beginning of period ...................................... $ 1.00 $ 1.00 $ 1.00
--------- --------- ---------
Income From Investment Operations
Net investment income (a) ................................................. .0313 .0516 .0361
--------- --------- ---------
Less: Dividends
Dividends from net investment income ...................................... (.0313) (.0516) (.0361)
--------- --------- ---------
Net asset value, end of period ............................................ $ 1.00 $ 1.00 $ 1.00
========= ========= =========
Total Return
Total investment return based on net asset value (b) ...................... 3.13% 5.29% 3.68%
Ratios/Supplemental Data
Net assets, end of period (in millions) ................................... $ 400 $ 198 $ 136
Ratios to average net assets of:
Expenses, net of waivers and reimbursements ........................... .30%(c) .30% .30%(c)
Expenses, before waivers and reimbursements ........................... .36%(c) .37% .41%(c)
Net investment income (a) ............................................. 6.22%(c) 5.19% 4.73%(c)
</TABLE>
--------------------------------------------------------------------------------
See footnote summary on page 39.
33
<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 August 14,
Ended Year 1998(d)
October 31, Ended to
2000 April 30, April 30,
(unaudited) 2000 1999
=========== =========== ===========
<S> <C> <C> <C>
Net asset value, beginning of period .................................... $ 1.00 $ 1.00 $ 1.00
-------- -------- --------
Income From Investment Operations
Net investment income (a) ............................................... .0306 .0502 .0243
-------- -------- --------
Less: Dividends
Dividends from net investment income .................................... (.0306) (.0502) (.0243)
-------- -------- --------
Net asset value, end of period .......................................... $ 1.00 $ 1.00 $ 1.00
======== ======== ========
Total Return
Total investment return based on net asset value (b) .................... 3.06% 5.14% 2.46%
Ratios/Supplemental Data
Net assets, end of period (in millions) ................................. $ 38 $ 16 $ 3
Ratios to average net assets of:
Expenses, net of waivers and reimbursements ......................... .45%(c) .45% .45%(c)
Expenses, before waivers and reimbursements ......................... .51%(c) .52% .56%(c)
Net investment income (a) ........................................... 6.08%(c) 5.11% 4.55%(c)
</TABLE>
--------------------------------------------------------------------------------
See footnote summary on page 39.
34
<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,
2000 ==================================================================
(unaudited) 2000 1999 1998 1997 1996
=========== ========= ========= ========= ========= =========
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ........ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------- --------- --------- --------- --------- ---------
Income From Investment Operations
Net investment income (a) ................... .0215 .0342 .0321 .0363 .0347 .0372
--------- --------- --------- --------- --------- ---------
Less: Dividends
Dividends from net investment income ........ (.0215) (.0342) (.0321) (.0363) (.0347) (.0372)
--------- --------- --------- --------- --------- ---------
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) ..................... 2.15% 3.47% 3.26% 3.70% 3.53% 3.79%
Ratios/Supplemental Data
Net assets, end of period (in millions) ..... $ 277 $ 407 $ 256 $ 294 $ 183 $ 184
Ratios to average net assets of:
Expenses, net of waivers and
reimbursements ........................ .20%(c) .20% .20% .20% .20% .20%
Expenses, before waivers and
reimbursements ........................ .25%(c) .28% .28% .28% .33% .48%
Net investment income (a) ............... 4.27%(c) 3.45% 3.22% 3.61% 3.46% 3.73%
</TABLE>
<TABLE>
<CAPTION>
Tax-Free Portfolio
==================================================
CLASS B
==================================================
Six Months August 14,
Ended Year 1998(d)
October 31, Ended to
2000 April 30, April 30,
(unaudited) 2000 1999
=========== =========== ===========
<S> <C> <C> <C>
Net asset value, beginning of period .................................... $ 1.00 $ 1.00 $ 1.00
--------- --------- ---------
Income From Investment Operations
Net investment income (a) ............................................... .0207 .0333 .0210
--------- --------- ---------
Less: Dividends
Dividends from net investment income .................................... (.0207) (.0333) (.0210)
--------- --------- ---------
Net asset value, end of period .......................................... $ 1.00 $ 1.00 $ 1.00
========= ========= =========
Total Return
Total investment return based on net asset value (b) .................... 2.07% 3.37% 2.13%
Ratios/Supplemental Data
Net assets, end of period (in millions) ................................. $ 563 $ 375 $ 193
Ratios to average net assets of:
Expenses, net of waivers and reimbursements ......................... .30%(c) .30% .30%(c)
Expenses, before waivers and reimbursements ......................... .35%(c) .37% .42%(c)
Net investment income (a) ........................................... 4.11%(c) 3.37% 2.88%(c)
</TABLE>
--------------------------------------------------------------------------------
See footnote summary on page 39.
35
<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 August 14,
Ended Year 1998(d)
October 31, Ended to
2000 April 30, April 30,
(unaudited) 2000 1999
=========== =========== ===========
<S> <C> <C> <C>
Net asset value, beginning of period ..................................... $ 1.00 $ 1.00 $ 1.00
--------- --------- ---------
Income From Investment Operations
Net investment income (a) ................................................ .0198 .0318 .0184
--------- --------- ---------
Less: Dividends
Dividends from net investment income ..................................... (.0198) (.0318) (.0184)
--------- --------- ---------
Net asset value, end of period ........................................... $ 1.00 $ 1.00 $ 1.00
========= ========= =========
Total Return
Total investment return based on net asset value (b) ..................... 1.98% 3.22% 1.70%
Ratios/Supplemental Data
Net assets, end of period (in millions) .................................. $ 236 $ 49 $ 2
Ratios to average net assets of:
Expenses, net of waivers and reimbursements .......................... .45%(c) .45% .45%(c)
Expenses, before waivers and reimbursements .......................... .50%(c) .51% .57%(c)
Net investment income (a) ............................................ 3.93%(c) 3.23% 2.69%(c)
</TABLE>
--------------------------------------------------------------------------------
See footnote summary on page 39.
36
<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,
2000 =======================================================================
(unaudited) 2000 1999 1998 1997 1996
=========== ========= ========= ========= ========= =========
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period .. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------- --------- --------- --------- --------- ---------
Income From Investment Operations
Net investment income ................. .0308 .0511(a) .0489(a) .0523(a) .0492(a) .0527(a)
--------- --------- --------- --------- --------- ---------
Less: Dividends
Dividends from net investment income .. (.0308) (.0511) (.0489) (.0523) (.0492) (.0527)
--------- --------- --------- --------- --------- ---------
Net asset value, end of period ........ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ========= ========= ========= =========
Total Return
Total investment return based on net
asset value (b) ................... 3.08% 5.23% 5.01% 5.37% 5.04% 5.41%
Ratios/Supplemental Data
Net assets, end of period (in millions) $ 1,063 $ 839 $ 795 $ 391 $ 176 $ 170
Ratios to average net assets of:
Expenses, net of waivers and
reimbursements .................. .50%(c) .50% .50% .49% .50% .50%
Expenses, before waivers and
reimbursements .................. .50%(c) .52% .55% .54% .57% .60%
Net investment income ............. 6.11%(c) 5.13%(a) 4.85%(a) 5.23%(a) 4.93%(a) 5.28%(a)
</TABLE>
--------------------------------------------------------------------------------
See footnote summary on page 39.
37
<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 August 14,
Ended Year 1998(d)
October 31, Ended to
2000 April 30, April 30,
(unaudited) 2000 1999
========== ======== ==========
<S> <C> <C> <C>
Net asset value, beginning of period ......................................... $ 1.00 $ 1.00 $ 1.00
-------- -------- --------
Income From Investment Operations
Net investment income (a) .................................................... .0309 .0504 .0401
-------- -------- --------
Less: Dividends
Dividends from net investment income ......................................... (.0309) (.0504) (.0401)
-------- -------- --------
Net asset value, end of period ............................................... $ 1.00 $ 1.00 $ 1.00
======== ======== ========
Total Return
Total investment return based on net asset value (b) ......................... 3.09% 5.15% 4.09%
Net assets, end of period (in millions) ...................................... $ 5 $ 4 $ 4
Ratios to average net assets of:
Expenses, net of waivers and reimbursements .............................. .20%(c) .20% .20%(c)
Expenses, before waivers and reimbursements .............................. .31%(c) .59% 1.42%(c)
Net investment income (a) ................................................ 6.13%(c) 5.03% 4.82%(c)
<CAPTION>
Treasury Portfolio
==============================================
CLASS B
==============================================
Six Months August 14,
Ended Year 1998(d)
October 31, Ended to
2000 April 30, April 30,
(unaudited) 2000 1999
========== ======== ==========
<S> <C> <C> <C>
Net asset value, beginning of period ......................................... $ 1.00 $ 1.00 $ 1.00
-------- -------- --------
Income From Investment Operations
Net investment income (a) .................................................... .0296 .0494 .0143
-------- -------- --------
Less: Dividends
Dividends from net investment income ......................................... (.0296) (.0494) (.0143)
-------- -------- --------
Net asset value, end of period ............................................... $ 1.00 $ 1.00 $ 1.00
======== ======== ========
Total Return
Total investment return based on net asset value (b) ......................... 2.96% 5.05% 1.44%
Ratios/Supplemental Data
Net assets, end of period (in millions) ...................................... $ 9 $ 85 $ 15
Ratios to average net assets of:
Expenses, net of waivers and reimbursements .............................. .30%(c) .30% .30%(c)
Expenses, before waivers and reimbursements .............................. .40%(c) .47% 1.08%(c)
Net investment income (a) ................................................ 5.87%(c) 5.04% 4.42%(c)
</TABLE>
--------------------------------------------------------------------------------
See footnote summary on page 39.
38
<PAGE>
Alliance Institutional Reserves
================================================================================
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
<TABLE>
<CAPTION>
Treasury Portfolio
==============================================
CLASS C
==============================================
Six Months August 14,
Ended Year 1998(d)
October 31, Ended to
2000 April 30, April 30,
(unaudited) 2000 1999
========== ========= ==========
<S> <C> <C> <C>
Net asset value, beginning of period ...................................... $ 1.00 $ 1.00 $ 1.00
--------- --------- ---------
Income From Investment Operations
Net investment income (a) ................................................. .0292 .0479 .0248
--------- --------- ---------
Less: Dividends
Dividends from net investment income ...................................... (.0292) (.0479) (.0248)
--------- --------- ---------
Net asset value, end of period ............................................ $ 1.00 $ 1.00 $ 1.00
========= ========= =========
Total Return
Total investment return based on net asset value (b) ...................... 2.92% 4.89% 2.51%
Ratios/Supplemental Data
Net assets, end of period (in millions) ................................... $ 271 $ 350 $ 33
Ratios to average net assets of:
Expenses, net of waivers and reimbursements ........................... .45%(c) .45% .45%(c)
Expenses, before waivers and reimbursements ........................... .55%(c) .56% .99%(c)
Net investment income (a) ............................................. 5.79%(c) 5.06% 4.27%(c)
</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.
39
<PAGE>
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
Drew A. Biegel, Senior Vice President
Kathleen A. Corbet, Senior Vice President
Raymond J. Papera, Senior Vice President
William E. Oliver, 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.
40
<PAGE>
INTRESSR1000
