ALLIANCE WORLD INCOME TRUST, INC.
SEMI-ANNUAL REPORT
APRIL 30, 1995
(COVER)
LETTER TO SHAREHOLDERS ALLIANCE WORLD INCOME TRUST, INC.
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June 2, 1995
Dear Shareholder:
In November and December of last year, U.S. bond markets continued to be
negatively affected by higher interest rates. Since January, however, the
market has rebounded, staging an impressive rally across nearly all fixed
income sectors. This rally was sparked, in part, by the belief of many market
participants that the Federal Reserve may be at or near the end of its
tightening cycle. Unfortunately, gains from the domestic bond market rally were
offset by sharp price declines in emerging markets as a result of the economic
crisis in Mexico.
U.S. ECONOMY
Evidence of a substantial slowing in U.S. economic activity has emerged over
the last few months as a result of restrictive Federal Reserve policy and a
slowdown in trade. In the months immediately ahead, the slowdown is expected to
continue as businesses attempt to reduce unwanted inventories by trimming
production schedules and employment.
We have reduced our domestic growth expectations to reflect these trends and
now look for little or no growth in the second and third quarters of 1995. We
do not, however, believe that the economy is headed into recession. The trade
picture seems to be stabilizing, domestic consumers seem able and willing to
spend and, if necessary, the Federal Reserve will lower short-term interest
rates, particularly if inflation fears abate further. The budget debate, which
won't be resolved until September or October, is important in this regard; and
for now we're optimistic that real progress toward deficit reduction will be
made.
UPDATE ON MEXICO
In December, the Mexican government's decision to float the peso led to a
significant devaluation in its currency versus the U.S. dollar and sparked an
economic crisis. Mexico's problems spilled over to other emerging markets as
the prices for all emerging market debt consequently fell with Mexican bond
markets. To halt the devaluation of its currency, the Mexican government
implemented an economic recovery plan designed to rein in the current account
deficit and combat inflation. While the Mexican economic recovery plan is
bitter medicine for the country's economic ills, preliminary results have been
encouraging. From March 9 to May 31, 1995, the Mexican peso gained 21% versus
the U.S. dollar and volatility declined.
INVESTMENT RESULTS
Listed below is Alliance World Income Trust's performance through its fiscal
semi-annual reporting period ended April 30, 1995. The table shows your Fund's
total returns compared with the short maturity U.S. government bond market,
represented by the unmanaged Merrill Lynch (ML) 1-3 Year Government Bond Index,
and the Lipper Short World Multi-Market Income Funds Average, which reflects
performance of 44 funds. These funds have generally similar investment
objectives to your Fund, although some funds included in the Lipper average may
have somewhat different investment policies.
Six Months Ended April 30, 1995
Total Return Ending NAV
------------ ----------
ALLIANCE WORLD INCOME TRUST -8.60% $1.668
ML 1-3 Year Index 0.76%
Lipper Short World MM
Income Funds Avg. -1.28%
The Fund's total returns are based on the net asset values of each class of
shares as of April 30; additional investment results appear on page 4. As of
April 30, the Fund's assets were distributed as follows:
PORTFOLIO DISTRIBUTION BY COUNTRY:
Canada - 4.5%
Mexico - 7.7%
New Zealand - 6.3%
U.S. - 82.0%
1
ALLIANCE WORLD INCOME TRUST, INC.
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On the following page is a discussion with Douglas Peebles, your Fund's
portfolio manager. Mr. Peebles provides his views on the current political and
economic situation in Mexico and on the areas that he expects will provide
future investment opportunities for your Fund. We appreciate your investment in
the Fund and will look forward to updating you on its progress later in the
year.
Sincerely,
John D. Carifa
Chairman and President
2
INTERVIEW WITH PORTFOLIO MANAGER
DOUGLAS J. PEEBLES, VICE PRESIDENT ALLIANCE WORLD INCOME TRUST, INC.
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Q: WHAT EXACTLY HAPPENED IN MEXICO?
MR. PEEBLES: On December 20, 1994, the newly elected Zedillo government
announced a change in Mexico's monetary policy that would allow the Mexican
peso to depreciate up to 12% versus the U.S. dollar. This change in policy came
as quite a shock to both the Mexican domestic marketplace as well as the
international financial community since this Administration had repeatedly
stated that there would be no change in the exchange rate policy which had been
in place since 1987. The devaluation caused a severe loss of confidence in the
Zedillo Administration among market participants, and the peso fell drastically
lower than the planned 12% devaluation. The peso finally found a bottom on
March 9, 1995-approximately 50% weaker than it was on December 19, 1994.
Q: WAS THE DROP IN THE PESO-TO-DOLLAR EXCHANGE RATE THE ONLY WAY THE FUND WAS
AFFECTED BY THE MEXICAN CRISIS?
MR. PEEBLES: No. Yields increased substantially and since price has an inverse
relationship to yield, the prices of the Fund's Mexican securities fell. In
fact, the yield on the benchmark two-day Mexican cetes increased from 13.75% on
December 19, 1994, to a peak of 82.65% on March 22, 1995. Yields on
dollar-denominated Tesobonos also increased but to a lesser degree.
Q: WHAT IS THE CURRENT OUTLOOK FOR THE FUND'S MEXICAN EXPOSURE?
MR. PEEBLES: With the help of the Clinton Administration's economic aid
package, the short-term liquidity crisis in Mexico has been alleviated. Prudent
measures have also been adopted within Mexico to assure that previously
implemented policy initiatives will continue to keep it on a path toward a
tier-one industrialized economy. The trade balance in Mexico has already turned
into a surplus; now the investment community will look for a peak in inflation
and signs that the already-wounded banking sector will survive without causing
any further distress to the Mexican economy. If these key factors materialize,
the Mexican peso should continue to strengthen as it has done since its trough
on March 9, 1995.
Q: DO YOU SEE OPPORTUNITIES IN OTHER AREAS OF THE U.S. DOLLAR BLOC?
MR. PEEBLES: We continue to look favorably on prospects within Canada and New
Zealand. In Canada, the economy continues to grow at a healthy pace and
inflation is below the Bank of Canada's 1-3% target range. Therefore, higher
real interest rates should allow the Canadian dollar to appreciate against the
U.S. dollar. While a long-standing negative for Canada is its large budget
deficit, substantial government spending cuts were announced in the most recent
Budget Statement.
New Zealand continues to have among the best investment potential within the
international arena. Of all countries included in the Organization for Economic
Cooperation and Development (OECD), New Zealand has the largest budget surplus
as a percentage of gross domestic product. We believe this surplus, combined
with the rigorous anti-inflation mandate of the Reserve Bank of New Zealand,
should lead to currency appreciation
3
INVESTMENT RESULTS ALLIANCE WORLD INCOME TRUST, INC.
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AVERAGE ANNUAL TOTAL RETURN AS OF APRIL 30, 1995
. One Year -6.11%
. Since Inception* +1.56
SEC Yield 8.69%
The average annual total returns reflect investment of dividends and/or capital
gains distributions in additional shares. Past performance does not guarantee
future results. Investment return and principal value will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than their original
cost.
* Inception: 12/90.
4
PORTFOLIO OF INVESTMENTS
APRIL 30, 1995 (UNAUDITED) ALLIANCE WORLD INCOME TRUST, INC.
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PRINCIPAL
AMOUNT
(000) U.S. $VALUE
- -------------------------------------------------------------------------------
CANADA-4.5%
GOVERNMENT OBLIGATIONS-4.5%
Canadian Treasury Bills
Zero coupon, 6/29/95 CA$ 1,695(a) $1,231,072
Zero coupon, 7/06/95 2,400 1,740,640
(cost $2,893,512) 2,971,712
MEXICO-7.7%
BANKING-4.5%
Mexican Nafinsa Pagare
Zero coupon, 5/04/95 MXP 17,957 3,000,284
GOVERNMENT OBLIGATIONS-3.2%
Mexican Treasury Bill
Zero coupon, 11/30/95 16,638(a) 2,105,364
Total Mexican Securities
(cost $7,230,788) 5,105,648
NEW ZEALAND-6.3%
GOVERNMENT OBLIGATION-6.3%
Government of New Zealand
8.00%, 11/15/95
(cost $3,865,040) NZ$ 6,200(a) 4,145,243
UNITED STATES-82.0%
DEBT OBLIGATIONS-30.1%
Banque Nationale De Paris
6.13%, 5/08/95 US$ 3,000 3,000,078
Canadian Imperial Bank of Commerce
6.02%, 5/11/95 3,000 3,000,009
Commerzbank US Finance
Zero coupon, 5/22/95 3,000 2,990,778
Dai Ichi Kangyo Bank B/A
5.98%, 5/10/95 2,500 2,495,018
Industrial Bank of Japan B/A
5.99%, 6/09/95 US$ 2,500 $2,482,530
Republic New York B/A
5.97%, 7/10/95 3,000 2,963,682
Union Bank of Switzerland
ZERO COUPON, 5/10/95 3,000 2,994,030
19,926,125
GOVERNMENT OBLIGATIONS-14.5%
Mexican Tesobonos
Zero coupon, 5/04/95 5,473(a) 5,459,865
Zero coupon, 6/01/95 4,178(a) 4,123,268
9,583,133
TIME DEPOSIT-37.4%
Dresdner Bank
5.9375%, 5/01/95 24,800 24,800,000
Total United States Securities
(cost $54,350,288) 54,309,258
TOTAL INVESTMENTS-100.5%
(cost $68,339,628) 66,531,861
OUTSTANDING PUT OPTION WRITTEN-0.0%
JPY
expiring May 1995
@ 84.55
(premiums received $2,310) JPY 55,000 (2,310)
TOTAL INVESTMENTS NET OF OUTSTANDING
OPTION WRITTEN-100.5% 66,529,551
Other assets less liabilities-(0.5%) (349,722)
NET ASSETS-100% $66,179,829
(a) Securities segregated to collateralize forward exchange currency contracts
with an aggregate market value of approximately $17,064,812.
See notes to financial statements.
5
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1995 (UNAUDITED) ALLIANCE WORLD INCOME TRUST, INC.
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ASSETS
Investments in securities, at value (cost $68,339,628) $66,531,861
Cash (cost $27,020) 27,090
Receivable for capital stock sold 24,902,310
Unrealized appreciation of forward exchange currency contracts 232,694
Interest receivable 201,708
Deferred organization expense and other assets 94,929
Total assets 91,990,592
LIABILITIES
Outstanding option written, at value (premium received $2,310) 2,310
Payable for investment securities purchased 24,800,000
Payable for capital stock redeemed 347,836
Dividend payable 334,753
Distribution fee payable 29,842
Advisory fee payable 26,772
Accrued expenses and other liabilities 269,250
Total liabilities 25,810,763
NET ASSETS (equivalent to $1.67 per share, based on 39,678,205
shares outstanding) $66,179,829
COMPOSITION OF NET ASSETS
Capital stock, at par $79,356
Additional paid-in capital 79,719,421
Undistributed net investment income 201,995
Accumulated net realized loss on investments, options and
foreign currency.transactions (12,252,444)
Net unrealized depreciation of investments and foreign currency
denominated assets and liabilities (1,568,499)
$66,179,829
NET ASSET VALUE PER SHARE $1.67
See notes to financial statements.
6
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 1995 (UNAUDITED) ALLIANCE WORLD INCOME TRUST, INC.
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INVESTMENT INCOME
Interest $3,269,958
EXPENSES
Advisory fee $193,143
Distribution fee 268,036
Audit and legal 63,295
Administrative 56,003
Custodian 54,999
Transfer agency 48,055
Registration 18,973
Amortization of organization expenses 15,327
Printing 9,177
Directors' fees 7,710
Miscellaneous 15,281
Total expenses 749,999
Net investment income 2,519,959
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY
Net realized loss on investment transactions (2,361,726)
Net realized loss on options and foreign currency transactions (6,932,201)
Net change in unrealized depreciation of:
Investments (1,254,287)
Options and foreign currency denominated assets and liabilities 121,340
Net loss on investments (10,426,874)
NET DECREASE IN NET ASSETS FROM OPERATIONS $(7,906,915)
See notes to financial statements.
7
STATEMENT OF CHANGES IN NET ASSETS ALLIANCE WORLD INCOME TRUST, INC.
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SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1995 OCT. 31,
(UNAUDITED) 1994
--------------- -----------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income $2,519,959 $4,704,704
Net realized loss on investments, options and
foreign currency transactions (9,293,927) (1,871,590)
Net change in unrealized depreciation of
investments, options and foreign currency
denominated assets and liabilities (1,132,947) 567,711
Net increase (decrease) in net assets
from operations (7,906,915) 3,400,825
DIVIDENDS TO SHAREHOLDERS
Net investment income and other sources (2,317,964) (3,536,509)
Return of capital -0- (1,463,462)
CAPITAL STOCK TRANSACTIONS
Net decrease (26,905,188) (44,713,749)
Total decrease (37,130,067) (46,312,895)
NET ASSETS
Beginning of year 103,309,896 149,622,791
End of period (including undistributed net investment
income of $201,995 at April 30, 1995) $66,179,829 $103,309,896
See notes to financial statements.
8
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1995 (UNAUDITED) ALLIANCE WORLD INCOME TRUST, INC.
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NOTE A: SIGNIFICANT ACCOUNTING POLICIES
Alliance World Income Trust, Inc. (the 'Fund'), was incorporated in the State
of Maryland on October 29, 1990 as a non-diversified, open-end investment
company. The following is a summary of significant accounting policies followed
by the Fund.
1. SECURITY VALUATION
Investments are stated at value. Investments for which market quotations are
readily available are valued at the closing price on day of valuation.
Securities for which market quotations are not readily available are valued in
good faith at fair value using methods determined by the Board of Directors.
Securities which mature in 60 days or less are valued at amortized cost, which
approximates market value, unless this method does not represent fair value.
Restricted securities are valued at fair value as determined by the Board of
Directors. In determining fair value, consideration is given to cost, operating
and other financial data.
2. OPTION WRITING
When the Fund writes an option, an amount equal to the premium received by the
Fund is recorded as a liability and is subsequently adjusted to the current
market value of the option written. Premiums received from writing options
which expire unexercised are recorded by the Fund on the expiration date as
realized gains. The difference between the premium and the amount paid on
effecting a closing purchase transaction, including brokerage commissions, is
also recorded as a realized gain, or if the premium is less than the amount
paid for the closing purchase transaction, as a realized loss. If a call option
is exercised, the premium is added to the proceeds from the sale of the
underlying security or currency in determining whether the Fund has realized a
gain or loss. If a put option is exercised, the premium reduces the cost basis
of the security or currency purchased by the Fund. In writing an option, the
Fund bears the market risk of unfavorable changes in the price of the security
or currency underlying the written option.
Exercise of an option written by the Fund could result in the Fund selling or
buying a security or currency at a price different from the current market
value.
3. CURRENCY TRANSLATION
Assets and liabilities denominated in foreign currencies and commitments under
forward exchange currency contracts are translated into U.S. dollars at the
mean of the quoted bid and asked price of such currencies against the U.S.
dollar. Purchases and sales of portfolio securities are translated at the rates
of exchange prevailing when such securities were acquired or sold. Income and
expenses are translated at rates of exchange prevailing when accrued.
Net foreign exchange losses of $6,932,201 represent foreign exchange gains and
losses from sales and maturities of securities, holdings of foreign currencies,
options on foreign currencies, exchange gains and losses realized between the
trade and settlement dates on security transactions, and the difference between
the amounts of interest recorded on the Fund's books and the U.S. dollar
equivalent of the amounts actually received or paid. Net currency gains and
losses from valuing foreign currency denominated assets and liabilities at
period end exchange rates are reflected as a component of unrealized
depreciation of investments and foreign currency denominated assets and
liabilities.
4. ORGANIZATION EXPENSES
Organization expenses of approximately $153,000 have been deferred and are
being amortized on a straight-line basis through December 1995.
5. 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 applicable, to
shareholders. Therefore, no provisions for federal income or excise taxes are
required.
9
NOTES TO FINANCIAL STATEMENTS (CONTINUED) ALLIANCE WORLD INCOME TRUST, INC.
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6. INVESTMENT INCOME AND SECURITY TRANSACTIONS
Interest income is accrued daily. Security transactions are accounted for on
the date securities are purchased or sold. Security gains and losses are
determined on the identified cost basis. The Fund accretes discounts as
adjustments to interest income.
7. DIVIDENDS AND DISTRIBUTIONS
Dividends and distributions to shareholders are recorded on the ex-dividend
date. Income dividends and capital gain distributions are determined in
accordance with income tax regulations, which may differ from generally
accepted accounting principles.
NOTE B: ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under the terms of an investment advisory agreement, the Fund pays Alliance
Capital Management, L.P. (the 'Adviser'), an advisory fee at an annual rate of
0.65 of 1% of the average daily net assets of the Fund. Such fee is accrued
daily and paid monthly. For the six months ended April 30, 1995, the Adviser
agreed to waive a portion of its advisory fee. The amount of such fee waiver
was $63,067.
The Adviser has agreed under the terms of the advisory agreement, to reimburse
the Fund to the extent that its aggregate expenses (exclusive of interest,
taxes, brokerage, distribution fee, and extraordinary expenses) exceed the
limits prescribed by any state in which the Fund's shares are qualified for
sale. The Fund believes that the most restrictive expense ratio limitation
currently imposed by any state is 2 1/2% of the first $30 million of the Fund's
average daily net assets, 2% of the next $70 million of its average daily net
assets and 1 1/2% of its average daily net assets in excess of $100 million. No
reimbursement was required by the Adviser for
the six months ended April 30, 1995. Pursuant to the advisory agreement, the
Fund also paid $56,003 to the Adviser representing the cost of certain legal
and accounting services provided to the Fund by the Adviser for the six months
ended April 30, 1995.
The Fund 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 for the Fund. Such compensation
amounted to $39,194 for the six months ended April 30, 1995.
NOTE C: DISTRIBUTION SERVICES AGREEMENT
The Fund has adopted a Distribution Services Agreement (the 'Agreement')
pursuant to Rule 12b-1 under the Investment Company Act of 1940. Under the
Agreement the Fund pays a distribution fee to the Distributor at an annual rate
of up to 0.90 of 1% of the average daily net assets. Such fee is accrued daily
and paid monthly.
For the six months ended April 30, 1995, the Distributor agreed to waive a
portion of its distribution fee. The amount of such fee waiver was $86,718. The
Agreement provides that the Distributor will use such payments in their
entirety for distribution assistance and promotional activities. The Agreement
also provides that the Adviser may use its own resources to finance the
distribution of the Fund's shares.
10
ALLIANCE WORLD INCOME TRUST, INC.
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NOTE D: INVESTMENT TRANSACTIONS
The Fund enters into forward exchange currency contracts in order to hedge its
exposure to changes in foreign currency exchange rates on its foreign portfolio
holdings. A forward exchange currency contract is a commitment to purchase or
sell a foreign currency at a future date at a negotiated forward rate. The gain
or loss arising from the difference between the original contracts and the
closing of such contracts is included in realized gains or losses from foreign
currency transactions. Fluctuations in the value of forward exchange currency
contracts are recorded for financial reporting purposes as unrealized gains or
losses by the Fund. Risks may arise from the potential inability of a
counterparty to meet the terms of a contract and from unanticipated movements
in the value of a foreign currency relative to the U.S. dollar.
At April 30, 1995, the Fund had outstanding forward exchange currency contracts
as follows:
CONTRACT COST ONU.S.$ UNREALIZED
AMOUNT ORIGINATION CURRENT APPRECIATION
FOREIGN CURRENCY BUY CONTRACTS (000) DATE VALUE (DEPRECIATION)
- --------------------------------- ------- ---------- ---------- -----------
Belgian Francs, expiring 5/30/95 50,000 $1,787,374 $1,753,936 $(33,438)
British Pounds, expiring 8/23/95 1,990 3,134,296 3,195,670 61,374
Canadian Dollars, expiring 6/19/95 1,097 795,206 805,327 10,121
Deutsche Marks,
expiring 5/10/95-6/20/95 6,676 4,611,272 4,821,442 210,170
Japanese Yen, expiring 5/10/95 441,996 4,978,407 5,266,159 287,752
New Zealand Dollars,
expiring 8/4/95 3,807 2,394,708 2,540,758 146,050
FOREIGN CURRENCY SALE CONTRACTS
- ---------------------------------
Australian Dollars,
expiring 5/22/95 1,800 1,315,800 1,308,030 7,770
Belgian Francs, expiring 5/30/95 115,086 4,088,167 4,036,093 52,074
Deutsche Marks,
expiring 5/10/95-6/20/95 4,381 2,970,756 3,162,763 (192,007)
Japanese Yen,
expiring 5/10/95-5/19/95 384,504 4,257,424 4,581,181 (323,757)
New Zealand Dollars,
expiring 8/04/95 3,100 2,086,300 2,079,715 6,585
$232,694
11
NOTES TO FINANCIAL STATEMENTS (CONTINUED) ALLIANCE WORLD INCOME TRUST, INC.
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Transactions in currency call and put options written for the six months ended
April 30, 1995 were as follows:
NUMBER OF
CONTRACTS PREMIUMS
--------- ---------
Options outstanding at beginning of year -0- $ -0-
Options written 2 10,533
Options expired (1) (8,223)
Options outstanding at April 30, 1995 1 $ 2,310
At April 30, 1995, the cost of investments for federal income tax purposes was
the same as the cost for financial reporting purposes. Accordingly, gross
unrealized appreciation of investments was $512,011 and gross unrealized
depreciation of investments was $2,319,778, resulting in net unrealized
depreciation of $1,807,767 (excluding foreign currency transactions).
For federal income tax purposes, the Fund had a capital loss carryforward at
October 31, 1994 of $1,495,055 of which $23,238 expires in 1998, $293,011 in
1999, $104,550 in 2000, $833,703 in 2001 and $240,553 in the year 2002.
NOTE E: CAPITAL STOCK
There are 3,000,000,000 shares of $.002 par value capital stock authorized.
Transactions in capital stock were as follows:
SHARES AMOUNT
----------------------------- -----------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
APRIL 30,1995 OCT. 31, APRIL 30,1995 OCT. 31,
(UNAUDITED) 1994 (UNAUDITED) 1994
------------- ------------ ------------- -------------
Shares sold 571,861 2,858,942 $ 1,009,830 $ 5,387,971
Shares issued in
reinvestment of
dividends and
distributions 703,272 1,480,493 1,234,005 2,789,287
Shares issued in connection
with the acquisition of
Alliance Multi-Market
Income Trust, Inc. -0- 6,394,561 -0- 12,128,360
Shares redeemed (16,556,416) (34,551,165) (29,149,023) (65,019,367)
Net decrease (15,281,283) (23,817,169) $(26,905,188) $(44,713,749)
12
FINANCIAL HIGHLIGHTS ALLIANCE WORLD INCOME TRUST, INC.
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SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDINGTHROUGHOUT EACH
PERIOD
<TABLE>
<CAPTION>
SIX MONTHS DECEMBER 3,
ENDED 1990 (A)
APRIL 30, YEAR ENDED OCTOBER 31, TO
1995 -------------------------------- OCTOBER 31,
(UNAUDITED) 1994 1993 1992 1991
---------- --------- ---------- ---------- -------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 1.88 $ 1.90 $ 1.91 $ 1.98 $ 2.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income .06 .18 .22 .19 .14
Net realized an unrealized loss on investments
and foreign currencytransactions (.22) (.12) (.16) (.17) (.03)
Net increase (decrease) in net asset value
from operations (.16) .06 .06 .02 .11
LESS:DISTRIBUTIONS
Dividends from net investment
income and other sources (.05) (.05) (.07) (.09) (.13)
Return of capital -0- (.03) -0- -0- -0-
Total dividends and distributions (.05) (.08) (.07) (.09) (.13)
Net asset value, end of period $ 1.67 $ 1.88 $ 1.90 $ 1.91 $ 1.98
TOTAL RETURN:
Total investment return based on
net asset value (b) (8.60)% 3.27% 3.51% 1.26% 6.08%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $66,180 $103,310 $149,623 $318,716 $1,059,222
Ratio to average net assets of:
Expenses, net of waivers/reimbursements 1.90%(c) 1.70% 1.54% 1.59% 1.85%(c)
Expenses, before waivers/reimbursements 3.36%(c) 2.08% 1.92% 1.87% 1.85%(c)
Net investment income 6.39%(c) 3.96% 5.14% 7.21% 7.29%(c)
</TABLE>
(a) Commencement of operations.
(b) Total investment reutrn is calculated assuming an initial investment made
at the net asset value at the beginning of the period, reinvestment of all
dividends and dsitrubtions at net asset value during the period, and redemption
on the last day of the period. Total investment reutrn calculated for a period
of less than one year is not annualized.
(c) Annualized.
13
ALLIANCE WORLD INCOME TRUST, INC.
- -------------------------------------------------------------------------------
BOARD OF DIRECTORS
JOHN D. CARIFA, CHAIRMAN AND PRESIDENT
RUTH BLOCK (1)
DAVID H. DIEVLER (1)
JOHN H. DOBKIN(1)
WILLIAM H. FOULK, JR. (1)
DR. JAMES M. HESTER (1)
CLIFFORD L. MICHEL (1)
ROBERT C. WHITE (1)
OFFICERS
ROBERT M. SINCHE, SENIOR VICE PRESIDENT
DOUGLAS J. PEEBLES, VICE PRESIDENT
EDMUND P. BERGAN, JR., SECRETARY
MARK D. GERSTEN, TREASURER AND CHIEF FINANCIAL OFFICER
PATRICK J. FARRELL, CONTROLLER
CUSTODIAN
BROWN BROTHERS HARRIMAN & CO.
40 Water Street
Boston, MA 02109
PRINCIPAL UNDERWRITERS
ALLIANCE FUND DISTRIBUTORS, INC.
1345 Avenue of the Americas
New York, NY 10105
LEGAL COUNSEL
SEWARD & KISSEL
One Battery Park Plaza
New York, NY 10004
TRANSFER AGENT
ALLIANCE FUND SERVICES, INC.
P.O. Box 1520
Secaucus, NJ 07096-1520
Toll-free 1-(800)-221-5692
INDEPENDENT AUDITORS
ERNST & YOUNG LLP
787 Seventh Avenue
New York, NY 10019
(1) Member of the Audit Committee.
14
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U.S. POSTAGE
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ALLIANCE WORLD INCOME TRUST, INC.
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