ALLIANCE WORLD INCOME TRUST, INC.
SEMI-ANNUAL REPORT
APRIL 30, 1996
LETTER TO SHAREHOLDERS ALLIANCE WORLD INCOME TRUST, INC.
_______________________________________________________________________________
June 13, 1996
Dear Shareholder:
We're pleased to provide you with an update on fixed income market activity and
the investment results for Alliance World Income Trust. The following pages
include information that covers the six-month period from November 1, 1995, the
beginning of the fiscal year, through April 30, 1996.
MARKET OVERVIEW
The U.S. bond market enjoyed a sustained broad-based rally throughout most of
1995 and into early 1996, though economic news led to a setback in February.
The market reacted negatively to the stronger-than-expected job growth in the
U.S. and doubts about whether the Federal Reserve would lower interest rates
again. Outside the U.S., emerging market and other foreign debt prices rose
sharply as positive developments in Latin America and Central Europe encouraged
foreign investors.
INVESTMENT RESULTS
TOTAL RETURN AS OF APRIL 30, 1996
12 MONTHS 6 MONTHS
--------- --------
ALLIANCE WORLD INCOME TRUST +6.59% +4.02%
ML 1-3 Year Index +6.89% +2.08%
Lipper Short World MM Income Funds Avg. +8.98% +3.92%
The Fund's total returns are based on the net asset values as of April 30,
1996; additional investment results appear on page 4. As of April 30, 1996, the
Fund's holdings based on market value were distributed as follows:
PORTFOLIO DISTRIBUTION BY COUNTRY:
U.S. - 79.9%
Mexico - 7.9%
Australia - 7.7%
New Zealand - 4.5 %
INVESTMENT OUTLOOK
The U.S. economy appears to be healthy, with modest growth expected in the
period ahead and falling into the 2%-2.5% range by year-end. With a gradually
strengthening economy and steady inflation, we expect no Federal Reserve action
on interest rates over the medium term. If our forecast proves correct, the
result should be steady U.S. bond prices.
We continue to have a favorable outlook for emerging market debt securities.
Moderate growth in the U.S., stable inflation and steady bond prices provide a
strong positive environment for this area of fixed income investing. One of the
significant factors that could affect emerging market bond prices in the coming
months is ongoing resolution of the banking system problems in Mexico.
The U.S. economy survived an inventory scare in 1995 and entered 1996 in a
relatively balanced and healthy condition. The latest economic data show the
U.S. economy's 'soft landing' is still intact. February's shocking payroll gain
grabbed headlines, but the 12-month comparisons were all numbers that support a
soft landing. Consumer confidence has bounced back, debt service burdens are
still manageable, and February retail sales had their best showing since last
summer, climbing 5% on a year-on-year basis. Manufacturing is likely to remain
a soft spot, although new orders for durable goods are showing hidden strength
and unfilled orders continue to rise. Revised data show the much-feared
slowdown in capital spending has already occurred. We expect a gradual
re-strengthening in the U.S. economy over the next six to twelve months.
Measured inflation at the consumer and producer levels remains well behaved and
the U.S. economy continues to operate in the inflation 'safe zone.' However,
recent increases in unit labor costs and commodity prices warn against
complacency. Federal Reserve policy has moved into a holding pattern, and
chances for a meaningful deficit reduction plan have receded as politicians
increasingly turn their attention to the 1996 election campaign.
1
ALLIANCE WORLD INCOME TRUST, INC.
_______________________________________________________________________________
In the following pages is a discussion with Douglas Peebles, your Fund's
portfolio manager. Mr. Peebles provides an update on the Fund's current
investments. Thank you for your investment in Alliance World Income Trust. We
look forward to reporting to you again on market activity and the Fund's
investment results 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.
_______________________________________________________________________________
Q: THE TRUST WAS ABLE TO PRODUCE RELATIVELY STRONG PERFORMANCE RESULTS OVER THE
LAST REPORTING PERIOD. WHAT AREAS OF INVESTMENT MOST BENEFITED THE TRUST'S
PERFORMANCE?
MR. PEEBLES: The Trust's performance benefited most strongly from its shorter
maturity profile in a bear market environment for U.S. fixed income assets
during the last six months. Sluggish gross domestic product growth combined
with benign inflation levels, allowed for higher fixed income prices and thus a
higher net asset value for the Trust.
Q: WHAT IS YOUR CURRENT OUTLOOK FOR GLOBAL FIXED INCOME MARKETS?
MR. PEEBLES: Our long-term outlook for fixed income markets is quite
optimistic. We believe world gross domestic product growth will be positive but
sluggish and inflation will remain subdued. A reversal of the long-term trend
of increased government spending should keep total gross domestic product
growth under control. The latter, along with increasing competition from the
emerging markets' economies, should hold down the wage increases that directly
affect the inflation outlook. This combination of low growth and low inflation
provide an excellent environment for global bond investing. This long-term
favorable outlook, however, does not preclude shorter term market sell-offs
resulting from the normal shifts and adjustments in the business cycle.
Q: IN THE LAST REPORT YOU INDICATED THAT YOU WERE LOOKING FOR FURTHER EASING BY
THE WORLD'S MAJOR CENTRAL BANKS, THE U.S. FEDERAL RESERVE, THE BANK OF JAPAN
AND THE GERMAN BUNDESBANK. ARE YOU STILL EXPECTING THIS TO CONTINUE?
MR. PEEBLES: No. The Federal Reserve and the Bank of Japan are probably
finished lowering interest rates. Even though we are not expecting any
near-term increase, the likelihood of any additional decrease is small. The
German Bundesbank, however, is very likely to decrease rates in view of the
strong possibility of recession looming over the German economy.
Q: IF GERMANY IS ABLE TO GET ITS ECONOMY BACK ON TRACK AND THE U.S. AND JAPAN
CONTINUE TO PRODUCE REASONABLE GROWTH, WILL THE TRUST BE ABLE TO BENEFIT IN ANY
SPECIFIC AREAS GIVEN STRONGER WORLD GROSS DOMESTIC PRODUCT GROWTH?
MR. PEEBLES: For the second half of 1996 the three major economic regions of
the developed world are likely to be in a synchronized growth pattern for the
first time in many years. This growth, however, is likely to be low compared to
historical standards. One area which is likely to be on an upswing in this
environment is the commodity sector. Increased world gross domestic product
growth often leads to a greater demand for commodities and natural resources.
If this scenario develops, the natural resource producing countries of
Australia and New Zealand are likely to benefit. This is why the portfolio has
the exposure it does to both the Australian and New Zealand markets.
3
ALLIANCE WORLD INCOME TRUST, INC.
_______________________________________________________________________________
POLICIES AND OBJECTIVES
Alliance World Income Trust seeks the highest level of current income through
investment in a portfolio of high-quality debt securities having remaining
maturities of not more than one year. It invests primarily in a non-diversified
portfolio of debt securities denominated in the U.S. dollar and selected
foreign currencies. While the Fund normally will maintain a substantial portion
of its assets in debt securities denominated in foreign currencies, the Fund
will invest at least 35% of its net assets in U.S. dollar-denominated
securities.
INVESTMENT RESULTS
_______________________________________________________________________________
AVERAGE ANNUAL TOTAL RETURN AS OF APRIL 30, 1996
. One Year 6.59%
. Five Year 2.18%
. Since Inception* 2.47%
. SEC Yield 6.79%
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. Yield is for the 30 days ended April 30, 1996.
* Inception: 12/90.
4
PORTFOLIO OF INVESTMENTS
APRIL 30, 1996 (UNAUDITED) ALLIANCE WORLD INCOME TRUST, INC.
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) U.S. $VALUE
- -------------------------------------------------------------------------
AUSTRALIA7.7%
GOVERNMENT OBLIGATION7.7%
Australian Treasury Bill
7.33%, 7/18/96 (a) (b)
(cost $3,502,037) AU$ 4,770 $ 3,691,242
MEXICO4.6%
GOVERNMENT OBLIGATION4.6%
Mexican Treasury Bill
37.75%, 7/11/96 (a) (b)
(cost $2,172,044) MXP 17,422 2,196,495
NEW ZEALAND4.5%
GOVERNMENT OBLIGATION4.5%
Government of New Zealand
9.00%, 11/15/96 (b)
(cost $2,017,222) NZ$ 3,100 2,119,998
UNITED STATES83.2%
CERTIFICATES OF DEPOSIT26.1%
ABN-AMRO
5.27%, 6/12/96 (a)(b) US$ 2,000 1,987,945
Australia & New Zealand Banking Group Ltd.
5.27%, 5/23/96 (a)(b) 2,500 2,491,854
Banco Bilbao Vizcaya
5.26%, 5/23/96 (a)(b) 2,500 2,491,870
Bank of Nova Scotia
5.25%, 7/22/96 (a)(b) 2,500 2,470,072
Commerzbank AG
5.31%, 5/23/96 (b) US$ 2,500 2,500,000
Deutsche Bank AG
5.04%, 7/09/96 (b) 2,500 2,500,000
------------
14,441,741
DEBT OBLIGATIONS14.8%
SMM Trust Co., Ltd.
5.375%, 11/22/96
FRN (a) (b) (c) 3,500 3,500,000
United Mexican States
30.16%, 11/27/96 (c) (d) 1,600 1,576,453
------------
5,076,453
COMMERCIAL PAPER5.2%
Unifunding Inc.
5.30%, 7/10/96 (a) (b) 2,500 2,474,199
TIME DEPOSIT37.1%
Credit Agricole
5.3125%, 5/01/96 17,700 17,700,000
Total United States Securities
(cost $39,705,245) 39,692,393
TOTAL INVESTMENTS100.0%
(cost $47,396,548) 47,700,128
Other assets less liabilities0.0% (7,701)
NET ASSETS100% $47,692,427
(a) Annualized yield to maturity at purchase date.
(b) Security, or portion thereof, has been segregated to collateralize forward
exchange currency contracts. This collateral has a total market value of
approximately $28,423,675.
(c) Stated interest rate in effect at April 30, 1996.
(d) Restricted security, valued at fair value.
See notes to financials.
5
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1996 (UNAUDITED) ALLIANCE WORLD INCOME TRUST, INC.
_______________________________________________________________________________
ASSETS
Investments in securities, at value (cost $47,396,548) $47,700,128
Cash 47,596
Receivable for investment securities sold 17,802,550
Interest receivable 408,316
Unrealized appreciation of forward exchange currency contracts 143,658
Receivable for capital stock sold 6,895
Total assets 66,109,143
LIABILITIES
Payable for investment securities purchased 17,700,000
Payable for capital stock redeemed 372,004
Dividend payable 82,760
Distribution fee payable 27,007
Advisory fee payable 19,440
Accrued expenses and other liabilities 215,505
Total liabilities 18,416,716
NET ASSETS $47,692,427
COMPOSITION OF NET ASSETS
Capital stock, at par $ 57,074
Additional paid-in capital 51,113,635
Undistributed net investment income 169,456
Accumulated net realized loss on investments, options and
foreign currency transactions (4,097,418)
Net unrealized appreciation of investments and foreign
currency denominated assets
and liabilities 449,680
$47,692,427
NET ASSET VALUE PER SHARE
(based on 28,536,759 shares outstanding) $1.67
See notes to financial statements.
6
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 1996 (UNAUDITED) ALLIANCE WORLD INCOME TRUST, INC.
_______________________________________________________________________________
INVESTMENT INCOME
Interest $1,941,237
EXPENSES
Advisory fee $164,438
Distribution fee 227,684
Administrative 75,474
Audit and legal 51,953
Custodian 47,742
Transfer agency 32,547
Registration 14,064
Directors' fees 10,473
Printing 3,722
Amortization of organization expenses 2,103
Miscellaneous 1,317
Total expenses 631,517
Less: Fees waived by Adviser and Distributor (96,132)
Net expenses 535,385
Net investment income 1,405,852
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS
Net realized loss on investment transactions (51,871)
Net realized gain on foreign currency transactions 90,116
Net change in unrealized appreciation (depreciation) of:
Investments 590,958
Foreign currency denominated assets and liabilities (53,498)
Net gain on investments and foreign currency transactions 575,705
NET INCREASE IN NET ASSETS FROM OPERATIONS $1,981,557
See notes to financial statements.
7
STATEMENT OF CHANGES IN NET ASSETS ALLIANCE WORLD INCOME TRUST, INC.
_______________________________________________________________________________
SIX MONTHS ENDED YEAR ENDED
APRIL 30,1996 OCTOBER 31,
(UNAUDITED) 1995
------------- -------------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income $ 1,405,852 $ 4,487,361
Net realized gain (loss) on investments,
options and foreign currency transactions 38,245 (11,249,384)
Net change in unrealized appreciation
(depreciation) of investments, options and
foreign currency denominated assets and
liabilities 537,460 347,772
Net increase (decrease) in net assets from
operations 1,981,557 (6,414,251)
DIVIDENDS TO SHAREHOLDERS
Net investment income (1,581,998) -0-
Tax return of capital -0- (4,174,324)
CAPITAL STOCK TRANSACTIONS
Net decrease (8,485,073) (36,943,380)
Total decrease (8,085,514) (47,531,955)
NET ASSETS
Beginning of period 55,777,941 103,309,896
End of period (including undistributed net
investment income of $169,456 and $345,602,
respectively) $47,692,427 $ 55,777,941
See notes to financial statements.
8
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1996 (UNAUDITED) ALLIANCE WORLD INCOME TRUST, INC.
_______________________________________________________________________________
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 the day of valuation or if
no such closing price is available, at the mean of the last bid and ask price
quoted on such day. Options are valued at market value or fair value using
methods determined by the Board of Directors. 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. CURRENCY TRANSLATION
Assets and liabilities denominated in foreign currencies and commitments under
forward foreign 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 realized gain on foreign currency transactions represents 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 amounts actually received or paid. Net change in
unrealized appreciation (depreciation) of foreign currency denominated assets
and liabilities represents net currency gains and losses from valuing foreign
currency denominated assets and liabilities at period end exchange rates.
3. ORGANIZATION EXPENSES
Organization expenses of approximately $153,000 have been deferred and were
amortized on a straight-line basis through December 1995.
4. 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.
5. 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.
6. DIVIDENDS AND DISTRIBUTIONS
Dividends and distributions to shareholders are recorded on the ex-dividend
date and are determined in accordance with income tax regulations.
9
NOTES TO FINANCIAL STATEMENTS (CONTINUED) ALLIANCE WORLD INCOME TRUST, INC.
_______________________________________________________________________________
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
.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, 1996, the Adviser
agreed to waive a portion of its advisory fee. The amount of such fee waiver
was $40,476.
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 fees, 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 the Fund's 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, 1996. Pursuant to the advisory agreement, the Fund also paid $75,474
to the Adviser representing the costs of certain legal and accounting services
provided to the Fund by the Adviser for the six months ended April 30, 1996.
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 $26,132 for the six months ended April 30, 1996.
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 .90 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, 1996, the
Distributor agreed to waive a portion of its distribution fee. The amount of
such fee waiver was $55,656. 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
The Fund enters into forward exchange currency contracts for investment
purposes and to hedge its exposure to changes in foreign currency exchange
rates on its foreign portfolio holdings and to hedge certain firm purchase and
sale commitments denominated in foreign currencies. 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.
The Fund's custodian will place and maintain cash not available for investment
or other liquid high quality debt securities in a separate account of the Fund
having a value equal to the aggregate amount of the Fund's commitments under
forward exchange currency contracts entered into with respect to position
hedges.
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.
10
ALLIANCE WORLD INCOME TRUST, INC.
_______________________________________________________________________________
At April 30, 1996, the Fund had outstanding forward exchange currency
contracts, as follows:
<TABLE>
<CAPTION>
CONTRACT VALUE ON U.S. $ UNREALIZED
AMOUNT ORIGINATION CURRENT APPRECIATION
(000) DATE VALUE (DEPRECIATION)
--------- ---------- ---------- -----------
<S> <C> <C> <C> <C>
FOREIGN CURRENCY BUY CONTRACTS
Deutsche Marks, expiring 6/20/96 1,500 $1,022,181 $ 983,276 $(38,905)
Italian Lira, expiring 8/16/96 2,300,000 1,419,122 1,458,471 39,349
Japanese Yen, expiring 5/07/96-6/11/96 105,000 977,607 1,004,462 26,855
Spanish Pesetas, expiring 7/25/96 121,000 954,838 946,844 (7,994)
Thailand Baht, expiring 9/28/96 30,000 1,171,646 1,174,692 3,046
FOREIGN CURRENCY SALE CONTRACTS
Japanese Yen, expiring 5/07/96 290,000 2,748,815 2,774,228 (25,413)
Swedish Krona, expiring 7/25/96 6,440 957,639 947,877 9,762
Swiss Francs, expiring 6/04/96-7/18/96 6,339 5,275,809 5,132,098 143,711
Thailand Baht, expiring 6/28/96 30,000 1,177,024 1,183,777 (6,753)
---------
$143,658
</TABLE>
At April 30, 1996, 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 $318,048 and gross unrealized
depreciation of investments was $14,468, resulting in net unrealized
appreciation of $303,580 (excluding foreign currency transactions).
For federal income tax purposes, the Fund had a capital loss carryforward at
October 31, 1995 of $4,135,663 of which $23,238 expires in 1997, $293,011 in
1998, $104,550 in 1999, $833,703 in 2000, $240,553 in the year 2002, and
$2,640,608 in 2003.
11
NOTES TO FINANCIAL STATEMENTS (CONTINUED) ALLIANCE WORLD INCOME TRUST, INC.
_______________________________________________________________________________
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, 1996 OCTOBER 31, APRIL 30, 1996 OCTOBER 31,
(UNAUDITED) 1995 (UNAUDITED) 1995
------------ ------------ -------------- --------------
Shares sold 245,703 1,085,952 $ 406,924 $ 1,896,175
Shares issued in
reinvestment of
dividends and
distributions 437,135 1,306,475 723,114 2,239,687
Shares redeemed (5,813,946) (23,684,048) (9,615,111) (41,079,242)
Net decrease (5,131,108) (21,291,621) $(8,485,073) $(36,943,380)
12
FINANCIAL HIGHLIGHTS ALLIANCE WORLD INCOME TRUST, INC.
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
SIX MONTHS DECEMBER 3,(D)
ENDED 1990
APRIL 30, YEAR ENDED OCTOBER 31, TO
1996 ------------------------------------------------ OCTOBER 31,
(UNAUDITED) 1995 1994 1993 1992 1991
------------- ----------- ----------- ----------- --------- --------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $1.66 $1.88 $1.90 $1.91 $1.98 $2.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income .04(b) .11(b) .18 .22 .19 .14
Net realized and unrealized gain (loss)
on investments and foreign currency
transactions .02 (.23) (.12) (.16) (.17) (.03)
Net increase (decrease) in net asset
value from operations .06 (.12) .06 .06 .02 .11
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income
and other sources (.05) -0- (.05) (.07) (.09) (.13)
Tax return of capital -0- (.10) (.03) -0- -0- -0-
Total dividends and distributions (.05) (.10) (.08) (.07) (.09) (.13)
Net asset value, end of period $1.67 $1.66 $1.88 $1.90 $1.91 $1.98
TOTAL RETURN:
Total investment return based on net
asset value(a) 4.02% (6.35)% 3.27% 3.51% 1.26% 6.08%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $47,692 $55,778 $103,310 $149,623 $318,716 $1,059,222
Ratio to average net assets of:
Expenses, net of waivers/reimbursements 2.12%(c) 1.97% 1.70% 1.54% 1.59% 1.85%(c)
Expenses, before waivers/reimbursements 2.50%(c) 2.35% 2.08% 1.92% 1.87% 1.85%(c)
Net investment income 5.56%(c) 6.46% 3.96% 5.14% 7.21% 7.29%(c)
</TABLE>
(a) 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 and distributions 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.
(b) Based on average shares outstanding.
(c) Annualized.
(d) Commencement of operations.
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
KATHLEEN A. CORBET, SENIOR VICE PRESIDENT
WAYNE D. LYSKI, SENIOR VICE PRESIDENT
DOUGLAS J. PEEBLES, VICE PRESIDENT
EDMUND P. BERGAN, JR., SECRETARY
MARK D. GERSTEN, TREASURER AND CHIEF FINANCIAL OFFICER
JUAN J. RODRIGUEZ, 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
THE ALLIANCE FAMILY OF MUTUAL FUNDS
_______________________________________________________________________________
FIXED INCOME
Alliance Bond Fund
U.S. Government Portfolio
Corporate Bond Portfolio
Alliance Global Dollar Government Fund
Alliance Global Strategic Income Trust
Alliance Mortgage Securities Income Fund
Alliance Limited Maturity Government Fund
Alliance Multi-Market Strategy Trust
Alliance North American Government Income Trust
Alliance Short-Term Multi-Market Trust
Alliance Short-Term U.S. Government Fund
Alliance World Income Trust
TAX-FREE INCOME
Alliance Municipal Income Fund
California Portfolio
Insured California Portfolio
Insured National Portfolio
National Portfolio
New York Portfolio
Alliance Municipal Income Fund II
Arizona Portfolio
Florida Portfolio
Massachusetts Portfolio
Michigan Portfolio
Minnesota Portfolio
New Jersey Portfolio
Ohio Portfolio
Pennsylvania Portfolio
Virginia Portfolio
MONEY MARKET
AFD Exchange Reserves
GROWTH
The Alliance Fund
Alliance Global Small Cap Fund
Alliance Growth Fund
Alliance Premier Growth Fund
GROWTH & INCOME
Alliance Strategic Balanced Fund
Alliance Balanced Shares
Alliance Conservative Investors Fund
Alliance Growth & Income Fund
Alliance Growth Investors Fund
Alliance Income Builder Fund
Alliance Utility Income Fund
AGGRESSIVE GROWTH
Alliance Quasar Fund
Alliance Technology Fund
INTERNATIONAL
Alliance All-Asia Investment Fund
Alliance International Fund
Alliance New Europe Fund
Alliance Worldwide Privatization Fund
CLOSED-END FUNDS
Alliance All-Market Advantage Fund
Alliance Global Environment Fund
ACM Government Income Fund
ACM Government Opportunity Fund
ACM Government Securities Fund
ACM Government Spectrum Fund
ACM Managed Dollar Income Fund
ACM Managed Income Fund
ACM Municipal Securities Income Fund
Alliance World Dollar Government Fund
Alliance World Dollar Government Fund II
The Austria Fund
The Korean Investment Fund
The Spain Fund
The Southern Africa Fund
CASH MANAGEMENT SERVICES
ACM Institutional Reserves
Government Portfolio
Prime Portfolio
Tax-Free Portfolio
Trust Portfolio
Alliance Capital Reserves
Alliance Government Reserves
Alliance Insured Account
Alliance Money Reserves
Alliance Municipal Trust
California Portfolio
Connecticut Portfolio
Florida Portfolio
General Portfolio
New Jersey Portfolio
New York Portfolio
Virginia Portfolio
Alliance Treasury Reserves
Alliance Money Market Fund
Prime Portfolio
Government Portfolio
General Municipal Portfolio
15
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