ALLIANCE WORLD INCOME TRUST
SEMI-ANNUAL REPORT
APRIL 30, 1997
ALLIANCE CAPITAL
LETTER TO SHAREHOLDERS ALLIANCE WORLD INCOME TRUST
_______________________________________________________________________________
June 12, 1997
Dear Shareholder:
The world's bond markets have entered a period of consolidation. Well-behaved
inflation, steady central bank policies, and a focus on fiscal discipline are
still in place and should keep a lid on yields. The "yield convergence" theme
is still alive but has largely run its course. In what promises to be an
essentially stable interest rate environment during 1997, higher-yielding side
markets should continue to outperform, at least in local currency terms.
INVESTMENT RESULTS
We are pleased to report that Alliance World Income Trust posted solid returns
over the most recent reporting period. For the six months ended April 30, 1997,
the Fund returned 1.73% on a net asset value (NAV) basis. For comparison, we
have shown the performance for the short maturity U.S. government bond market,
represented by the unmanaged Merrill Lynch 1-3 Year Government Bond Index, and
for the Lipper Short World Multi-Market Income Funds Average, which reflects
the performance of 32 funds. This peer group has generally similar investment
objectives to World Income Trust, though investment policies for the various
funds--particularly the average maturities of their portfolios--may differ
significantly.
INVESTMENT RESULTS*
Period Ended April 30, 1997
TOTAL RETURN
6 MONTHS 12 MONTHS
--------- ---------
ALLIANCE WORLD INCOME TRUST 1.73% 4.61%
MERRILL LYNCH 1-3 YEAR GOVERNMENT BOND INDEX 2.26% 6.09%
LIPPER SHORT WORLD MULTI-MARKET INCOME FUNDS AVERAGE 1.65% 6.84%
* TOTAL RETURNS ARE BASED ON THE NET ASSET VALUE AS OF APRIL 30, 1997. THE
UNMANAGED MERRILL LYNCH 1-3 YEAR GOVERNMENT BOND INDEX IS COMPOSED OF U.S.
GOVERNMENT AGENCY AND TREASURY SECURITIES WITH MATURITIES OF ONE TO THREE
YEARS. THE LIPPER SHORT WORLD MULTI-MARKET INCOME FUNDS AVERAGE REFLECTS THE
PERFORMANCE OF 32 FUNDS THAT INVEST IN NON-U.S. DOLLAR AND U.S. DOLLAR DEBT
INSTRUMENTS. THE FUNDS TRACKED BY LIPPER ANALYTICAL SERVICES HAVE GENERALLY
SIMILAR INVESTMENT OBJECTIVES TO YOUR FUND, THOUGH SOME OF THE FUNDS MAY HAVE
SOMEWHAT DIFFERENT INVESTMENT POLICIES .
ADDITIONAL INVESTMENT RESULTS APPEAR ON PAGE 4.
As of April 30, 1997, the Fund's total investments were distributed as follows:
PORTFOLIO DISTRIBUTION BY COUNTRY
COUNTRY PORTFOLIO %
- ------- -----------
U.S. 85.40%
Canada 5.25%
Mexico 4.46%
Czech Republic 2.74%
Poland 2.15%
ECONOMIC REVIEW
The U.S. economy finished 1996 on a strong note. After moderating in the third
quarter, the economy picked up speed as the year came to a close, led by a
rebound in consumer spending. The annualized gain in retail sales
1
ALLIANCE WORLD INCOME TRUST
_______________________________________________________________________________
jumped to 4.8% in the fourth quarter, up from only 0.9% in the third quarter.
An unexpected surge in export growth also added to year-end growth. In all,
growth in aggregate output, as measured by Gross Domestic Product (GDP), which
dipped to 2.1% in the third quarter, accelerated to 3.8% during the final three
months of 1996.
The economy continued its strong performance in the first quarter of 1997,
buoyed by continued growth in the labor market. The unemployment rate edged
down to 5.2% and wages continued to climb, with hourly earnings up 4% annually
through March. Retail sales continued their strong pace during the first
quarter and consumer confidence remained elevated. The production side of the
economy also showed considerable strength, with first quarter industrial
production up by 4.9% over levels from a year earlier and total hours worked up
by 3.8% over that same time period. Overall, GDP growth jumped to 5.6% during
the first three months of 1997--its fastest rate of increase in nearly ten
years.
Despite the strong growth, inflation remained well-behaved. After moving
slightly higher late in 1996, consumer and producer price gains both retreated
in early 1997 with consumer prices advancing through April at a 2.5% annual
rate and producer prices up just 0.8% for the same period. The Federal Reserve
raised interest rates 0.25% at the end of March in a pre-emptive strike against
what were seen as mounting inflationary pressures.
In Japan, continued weakness in the banking sector and the rise in consumption
taxes fostered low confidence and slow growth. However, the financial sector
remains under pressure and attempts to resolve the banking crisis are
intensifying.
The Canadian Government called for General Elections in early June, more than a
year before the Government's term expires, which has added to market
volatility. The Bank of Canada, in a surprise move, kept interest rates
unchanged after the Federal Reserve raised rates.
In Europe, the driving force behind excellent bond market returns has been the
quest for monetary union. However, changes in several European governments
reflect voter unhappiness with long-term structural unemployment problems,
particularly in France. Elections in France and Great Britain added to market
volatility, creating speculation and uncertainty in the markets. The run-up to
the election in France has increased market turbulence and European Monetary
Union (EMU) pressures. The U.S. dollar should continue to perform very well
against the core European currencies.
INVESTMENT OUTLOOK
U.S. economic growth has continued into its third consecutive quarter at a pace
considered above the long-term, non-inflationary rate. While continued growth
at the current pace may warrant additional rate increases, we expect the U.S.
economy to gradually slow over the next several quarters to a more sustainable
2% to 2.5% growth rate. We anticipate this slowing will occur before any
substantial inflationary pressures materialize. Given the potential for further
rate increases in the near-term, the market will be particularly vulnerable to
daily economic news which may put upward pressure on yields. For this reason,
we remain cautious on U.S. investments of less than one year maturity.
The world's bond markets have entered a corrective phase. Bond yields will
continue to rise until fears of stronger global growth, higher inflation, and
tighter monetary policies recede. This phase could last for several months,
although we expect yields to begin moving lower by the fourth quarter of 1997,
and possibly much sooner. Fiscal consolidation continues to provide long-term
support for bond markets worldwide.
In Europe, we expect that well-behaved inflation will be offset by moderately
improving growth prospects. The commodity oriented economies of New Zealand and
Australia are more closely linked to the U.S., but here also we anticipate that
good inflation performance and sluggish growth should continue to produce
strong fixed-income returns. We continue to believe that Japan offers the
lowest value of any developed bond market over the next six months. Market
expectations of an interest rate increase in the third quarter are certain to
intensify, although the Bank of Japan may delay slightly to ensure economic
recovery.
2
ALLIANCE WORLD INCOME TRUST
_______________________________________________________________________________
The Mexican economy continues to perform strongly, led by strong growth in
investments and exports. Growth is expected to remain strong at around 4% in
1997 and inflation and interest rates should both decline during the upcoming
year. Investor confidence in Mexico's economic policies is growing. The
decision to prepay the remaining $3.5 billion owed to the U.S. for the 1995
peso bailout is another positive step toward restoring Mexico's credibility in
international capital markets.
Thank you for your continued interest and investment in Alliance World Income
Trust. We look forward to reporting to you again on market activity and the
Fund's investment results in coming periods.
Sincerely,
John D. Carifa
Chairman and President
Douglas Peebles
Vice President
SHARES OF THE FUND ARE NOT DEPOSITS OR OBLIGATIONS OF, GUARANTEED OR ENDORSED
BY, ANY BANK; FURTHER, SUCH SHARES ARE NOT FEDERALLY INSURED BY THE FEDERAL
DEPOSIT INSURANCE CORPORATION, THE FEDERAL RESERVE BOARD, OR ANY OTHER AGENCY.
SHARES OF THE FUND INVOLVE INVESTMENT RISKS, INCLUDING THE POSSIBLE LOSS OF
PRINCIPAL.
3
INVESTMENT OBJECTIVE AND POLICIES ALLIANCE WORLD INCOME TRUST
_______________________________________________________________________________
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 RETURNS AS OF APRIL 30, 1997
One Year 4.61%
Five Years 1.62%
Since Inception* 2.43%
SEC Yield** 4.29%
The average annual total returns reflect reinvestment 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.
** Yield is for the 30 days ended April 30, 1997.
4
PORTFOLIO OF INVESTMENTS
APRIL 30, 1997 (UNAUDITED) ALLIANCE WORLD INCOME TRUST
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) U.S. $ VALUE
- -------------------------------------------------------------------------
CANADA-5.2%
GOVERNMENT OBLIGATION-5.2%
Government of Canada Treasury Bill
2.80%, 5/08/97 (a)(b)
(cost $2,217,941) CA$ 3,000 $ 2,146,490
CZECH REPUBLIC-2.7%
DEBT OBLIGATION-2.7%
International Bank For
Reconstruction & Development
11.50%, 10/09/97 (a)
(cost $1,302,750) CZK 35,000 1,122,759
MEXICO-4.5%
GOVERNMENT OBLIGATION-4.5%
Mexican Treasury Bill
26.30%, 6/26/97 (a)(b)
(cost $1,848,556) MXP 15,006 1,825,632
POLAND-2.1%
GOVERNMENT OBLIGATION-2.1%
Polish Treasury Bill
21.70%, 11/26/97 (a)(b)
(cost $897,229) PLN 3,130 881,605
UNITED STATES-85.2%
GOVERNMENT OBLIGATION-33.7%
Federal Home Loan Mortgage Corp.
Zero coupon, 7/18/97 (a) US$ 14,000 13,833,456
TIME DEPOSITS-51.5%
Deutsche Bank
5.42%, 6/13/97 (a) 10,000 10,000,000
Dresdner Bank
5.34%, 5/13/97 (a) 10,000 10,000,000
Republic National Bank of New York
5.69%, 5/01/97 1,100 1,100,000
------------
21,100,000
Total United States Securities
(cost $34,934,987) 34,933,456
TOTAL INVESTMENTS-99.7%
(cost $41,201,463) 40,909,942
Other assets less liabilities-0.3% 113,930
NET ASSETS-100% $ 41,023,872
(a) Securities, or portion thereof, with an aggregate market value of
$39,809,942 have been segregated to collateralize forward exchange currency
contracts.
(b) Annualized yield to maturity at purchase date.
See notes to financial statements.
5
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1997 (UNAUDITED) ALLIANCE WORLD INCOME TRUST
_______________________________________________________________________________
ASSETS
Investments in securities, at value (cost $41,201,463) $40,909,942
Cash 40,472
Receivable for investment securities sold 1,200,183
Interest receivable 22,392
Unrealized appreciation of forward exchange currency contracts 113,328
Receivable for capital stock sold 4,500
Total assets 42,490,817
LIABILITIES
Payable for investment securities purchased 1,100,000
Payable for capital stock redeemed 73,779
Dividend payable 71,735
Distribution fee payable 23,217
Advisory fee payable 16,467
Accrued expenses 181,747
Total liabilities 1,466,945
NET ASSETS $41,023,872
COMPOSITION OF NET ASSETS
Capital stock, at par $ 49,945
Additional paid-in capital 45,999,037
Distributions in excess of net investment income (742,285)
Accumulated net realized loss on investments and
foreign currency transactions (4,096,924)
Net unrealized depreciation of investments and foreign
currency denominated assets and liabilities (185,901)
$41,023,872
NET ASSET VALUE PER SHARE (based on 24,972,520 shares outstanding) $1.64
See notes to financial statements.
6
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 1997 (UNAUDITED) ALLIANCE WORLD INCOME TRUST
_______________________________________________________________________________
INVESTMENT INCOME
Interest $1,450,373
EXPENSES
Advisory fee $ 140,186
Distribution fee 194,105
Administrative 74,381
Audit and legal 54,209
Custodian 51,104
Transfer agency 25,952
Registration 15,088
Directors' fees 12,182
Printing 5,412
Miscellaneous 3,416
Total expenses 576,035
Less: Fees waived by Adviser and Distributor (81,955)
Net expenses 494,080
Net investment income 956,293
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain on investment transactions 6,111
Net realized gain on foreign currency transactions 80,028
Net change in unrealized appreciation (depreciation) of:
Investments (336,677)
Foreign currency denominated assets and liabilities 32,208
Net loss on investments and foreign currency transactions (218,330)
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 737,963
See notes to financial statements.
7
STATEMENT OF CHANGES IN NET ASSETS ALLIANCE WORLD INCOME TRUST
_______________________________________________________________________________
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1997 OCTOBER 31,
(UNAUDITED) 1996
-------------- ------------
INCREASE IN NET ASSETS FROM OPERATIONS
Net investment income $ 956,293 $ 2,612,380
Net realized gain on investments and
foreign currency transactions 86,139 475,207
Net change in unrealized appreciation
(depreciation) of investments and
foreign currency denominated assets and
liabilities (304,469) 206,348
Net increase in net assets from operations 737,963 3,293,935
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income (1,350,304) (3,023,315)
CAPITAL STOCK TRANSACTIONS
Net decrease (3,253,997) (11,158,351)
Total decrease (3,866,338) (10,887,731)
NET ASSETS
Beginning of year 44,890,210 55,777,941
End of period $41,023,872 $ 44,890,210
See notes to financial statements.
8
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1997 (UNAUDITED) ALLIANCE WORLD INCOME TRUST
_______________________________________________________________________________
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 management
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. However, readily marketable portfolio securities may
be valued on the basis of prices provided by a pricing service when such prices
are believed by the Adviser to reflect the fair value of such securities.
Options are valued at market value or 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. Securities for which market quotations are not readily
available and restricted securities are valued in good faith at fair value
using methods 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 on the valuation date. 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 earned or accrued.
Net realized gain on foreign currency transactions represents foreign exchange
gains and losses from sales and maturities of securities, holdings of foreign
currencies, exchange gains and losses realized between the trade and settlement
dates on investment 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. 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
shareholders. Therefore, no provisions for federal income or excise taxes are
required.
4. INVESTMENT INCOME AND INVESTMENT TRANSACTIONS
Interest income is accrued daily. Investment transactions are accounted for on
the date securities are purchased or sold. Investment gains and losses are
determined on the identified cost basis. The Fund accretes discounts as
adjustment to interest income.
5. DIVIDENDS AND DISTRIBUTIONS
Dividends and distributions to shareholders are recorded on the ex-dividend
date and are determined in accordance with income tax regulations.
For federal income tax purposes, the Fund's distributions of income and capital
gains are subject to recharacterization, which may include a tax return of
capital, at the end of the year to reflect the final investment results for
that year.
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, 1997, the Adviser
agreed to waive a portion of its advisory fee. The amount of such fee waiver
was $34,507.
Pursuant to the advisory agreement, the Fund paid $74,381 to the Adviser
representing reimbursement of the costs of certain legal and accounting
services provided to the Fund by the Adviser for the six months ended April 30,
1997.
9
NOTES TO FINANCIAL STATEMENTS (CONTINUED) ALLIANCE WORLD INCOME TRUST
_______________________________________________________________________________
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 $17,941 for the six months ended April 30, 1997.
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. The fees
are accrued daily and paid monthly. For the six months ended April 30, 1997,
the Distributor agreed to waive a portion of its distribution fee. The amount
of such fee waiver was $47,448. The Agreement provides that the Distributor
will use the payments in their entirety for distribution assistance and
promotional activities. The Agreement also provides that the Adviser may use
its own resources to finance the distribution of the Fund's shares.
NOTE D: INVESTMENT TRANSACTIONS
At April 30, 1997, the cost of investments for federal income tax purposes was
the same as the cost for financial reporting purposes, resulting in net
unrealized depreciation of investments of $291,521 (excluding foreign currency
transactions).
For federal income tax purposes, the Fund had a capital loss carryforward at
October 31, 1996 of $4,183,063 of which $4,135,663 expires in the year 2002,
and $47,400 expires in 2003.
1. FORWARD EXCHANGE CURRENCY CONTRACTS
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. The face or contract amount, in U.S.
dollars, as reflected in the following table, reflects the total exposure the
Fund has in that particular currency contract.
10
ALLIANCE WORLD INCOME TRUST
_______________________________________________________________________________
At April 30, 1997, 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 7/07/97 3,450 $2,232,718 $2,000,941 $ (231,777)
Finnish Markka, expiring 7/15/97 5,000 1,072,471 966,592 (105,879)
FOREIGN CURRENCY SALE CONTRACTS
Deutsche Marks, expiring
7/07/97-7/15/97 4,481 2,854,708 2,599,310 255,398
Swiss Francs, expiring 7/07/97 3,000 2,245,845 2,050,259 195,586
------------
$ 113,328
</TABLE>
2. OPTION TRANSACTIONS
For hedging and investment purposes, the Fund purchases and writes (sells) put
and call options on U.S. and foreign government securities and foreign
currencies that are traded on U.S. and foreign securities exchanges and
over-the-counter markets.
The risk associated with purchasing an option is that the Fund pays a premium
whether or not the option is exercised. Additionally, the Fund bears the risk
of loss of premium and change in market value should the counterparty not
perform under the contract. Put and call options purchased are accounted for in
the same manner as portfolio securities. The cost of securities acquired
through the exercise of call options is increased by premiums paid. The
proceeds from securities sold through the exercise of put options are decreased
by the premiums paid.
When the Fund writes an option, 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 written options which expire unexercised
are recorded by the Fund on the expiration date as realized gains from options
written. The difference between the premium and the amount paid on effecting a
closing purchase transaction, including brokerage commissions, is also treated
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 an unfavorable change 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. There were no transactions in
written options for the six months ended April 30, 1997.
11
NOTES TO FINANCIAL STATEMENTS (CONTINUED) ALLIANCE WORLD INCOME TRUST
_______________________________________________________________________________
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 30,1997 OCTOBER 31, APRIL 30,1997 OCTOBER 31,
(UNAUDITED) 1996 (UNAUDITED) 1996
------------ ------------ -------------- --------------
Shares sold 928,179 592,826 $ 1,541,475 $ 987,152
Shares issued in
reinvestment of
dividends 338,541 798,519 561,312 1,327,317
Shares redeemed (3,232,447) (8,120,965) (5,356,784) (13,472,820)
Net decrease (1,965,727) (6,729,620) $(3,253,997) $(11,158,351)
12
FINANCIAL HIGHLIGHTS ALLIANCE WORLD INCOME TRUST
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
APRIL 30, YEAR ENDED OCTOBER 31,
1997 ---------------------------------------------------------------
(UNAUDITED) 1996 1995 1994 1993 1992
------------ ------------ ----------- ----------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year $ 1.67 $ 1.66 $ 1.88 $ 1.90 $ 1.91 $ 1.98
INCOME FROM INVESTMENT OPERATIONS
Net investment income .04(a) .09(a) .11(a) .18 .22 .19
Net realized and unrealized gain (loss)
on investments and foreign currency
transactions (.02) .02 (.23) (.12) (.16) (.17)
Net increase (decrease) in net asset
value from operations .02 .11 (.12) .06 .06 .02
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income
and other sources (.05) (.10) -0- (.05) (.07) (.09)
Tax return of capital -0- -0- (.10) (.03) -0- -0-
Total dividends and distributions (.05) (.10) (.10) (.08) (.07) (.09)
Net asset value, end of period $ 1.64 $ 1.67 $ 1.66 $ 1.88 $ 1.90 $ 1.91
TOTAL RETURN:
Total investment return based on
net asset value(b) 1.73% 6.98% (6.35)% 3.27% 3.51% 1.26%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $41,024 $44,890 $55,778 $103,310 $149,623 $318,716
Ratio to average net assets of:
Expenses, net of waivers/reimbursements 2.29%(c) 2.10% 1.97% 1.70% 1.54% 1.59%
Expenses, before waivers/reimbursements 2.67%(c) 2.48% 2.35% 2.08% 1.92% 1.87%
Net investment income 4.43%(c) 5.37% 6.46% 3.96% 5.14% 7.21%
</TABLE>
(a) Based on average shares outstanding.
(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 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.
(c) Annualized.
13
ALLIANCE WORLD INCOME TRUST
_______________________________________________________________________________
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)
DONALD J. ROBINSON (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
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FIXED INCOME
Alliance Bond Fund
U.S. Government Portfolio
Corporate Bond Portfolio
Alliance Global Dollar Government Fund
Alliance Global Strategic Income Trust
Alliance High Yield Fund
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
Alliance/Regent Sector Opportunity 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 Real Estate Investment 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
Massachusetts Portfolio
New Jersey Portfolio
New York Portfolio
Virginia Portfolio
Alliance Treasury Reserves
Alliance Money Market Fund
Prime Portfolio
Government Portfolio
General Municipal Portfolio
15
ALLIANCE WORLD INCOME TRUST
1345 Avenue of the Americas
New York, NY 10105
(800) 221-5672
ALLIANCE CAPITAL
THIS REPORT IS INTENDED SOLELY FOR DISTRIBUTION TO CURRENT SHAREHOLDERS
OF THE FUND.
R THESE REGISTERED SERVICE MARKS USED UNDER LICENSE FROM THE OWNER,
ALLIANCE CAPITAL MANAGEMENT L.P.
WITSR
