ALLIANCE MULTI-MARKET STRATEGY TRUST
ANNUAL REPORT
OCTOBER 31, 1997
ALLIANCE CAPITAL
LETTER TO SHAREHOLDERS ALLIANCE MULTI-MARKET STRATEGY TRUST
_______________________________________________________________________________
December 1, 1997
Dear Shareholder:
This annual report contains market activity and investment results for Alliance
Multi-Market Strategy Trust for the period ended October 31, 1997.
Global bond markets posted solid returns over the past six months. Lower global
bond yields and a convergence in spreads in European and Dollar Bloc markets
pushed bond prices higher and helped non-core markets to outperform core
markets. Data released indicating a slowing U.S. economy, together with a
favorable U.S. budget deficit, fueled a rally in U.S. Treasuries. In October,
financial market turmoil, which started in Southeast Asia, created a ripple
effect that spread to other global bond markets and caused a spike in
volatility. Rate hikes in Europe, budgetary problems in Italy, and potential
European Monetary Union (EMU) participation by the U.K., also contributed to
increased volatility.
INVESTMENT RESULTS
We are pleased to report that Alliance Multi-Market Strategy Trust posted solid
returns over the most recent period. 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 for the 12 month period ended October 31, 1997. The Lipper peer
group has generally similar investment objectives to Multi-Market Strategy
Trust, although investment policies for the various funds--particularly the
average maturities of their portfolios--may differ significantly. The Fund's
outperformance of its benchmarks can be attributed to investing in higher
yielding European countries at a time when spreads between the core and the
non-core countries tightened as the economies converge in preparation for
European Monetary Union.
INVESTMENT RESULTS*
Period Ended October 31, 1997
TOTAL RETURN
6 MONTHS 12 MONTHS
-------- ---------
ALLIANCE MULTI-MARKET STRATEGY TRUST
Class A 3.74% 7.82%
Class B 3.29% 6.90%
Class C 3.29% 6.92%
MERRILL LYNCH 1-3 YEAR GOVERNMENT
BOND INDEX 4.13% 6.49%
LIPPER SHORT WORLD MULTI-MARKET
INCOME FUNDS AVERAGE 3.00% 5.02%
* TOTAL RETURNS ARE BASED ON THE NET ASSET VALUE OF EACH CLASS OF SHARES AS
OF OCTOBER 31, 1997. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
THE UNMANAGED MERRILL LYNCH 1-3 YEAR GOVERNMENT BOND INDEX REPRESENTS THE
SHORT MATURITY U.S. GOVERNMENT BOND MARKET. THE UNMANAGED LIPPER SHORT WORLD
MULTI-MARKET INCOME FUNDS AVERAGE REFLECTS THE PERFORMANCE OF 32 FUNDS. BOTH
BENCHMARKS HAVE GENERALLY SIMILAR INVESTMENT OBJECTIVES TO YOUR FUND, ALTHOUGH
INVESTMENT POLICIES FOR THE VARIOUS FUNDS MAY DIFFER. AN INVESTOR CANNOT INVEST
DIRECTLY IN THE INDEX OR AVERAGE.
ADDITIONAL INVESTMENT RESULTS APPEAR ON PAGE 4.
As of October 31, 1997, the Fund's total investments based on issuing country
were distributed as follows:
PORTFOLIO DISTRIBUTION BY COUNTRY
COUNTRY PORTFOLIO %
- -------------- -----------
Germany 17.48%
United States 14.08%
Italy 12.54%
Australia 9.83%
Sweden 8.82%
Denmark 7.09%
Norway 5.72%
Mexico 5.61%
New Zealand 5.37%
Spain 4.80%
France 4.38%
Poland 4.28%
1
ALLIANCE MULTI-MARKET STRATEGY TRUST
_______________________________________________________________________________
ECONOMIC REVIEW
Throughout the second quarter, economic growth and inflation were well
contained worldwide. U.S. Gross Domestic Product (GDP) growth slowed from the
4.9% robust pace of the first quarter to 3.3% in the second quarter. Weakness
in consumer spending was the catalyst, as retail and auto sales declined, and
housing activity slowed.
The economy continued at a healthy pace during the third quarter. Although U.S.
growth slowed from its first half level, the economy remained strong, led by
strength in the labor market. In October, the unemployment rate dropped to
4.7%, the lowest level in 24 years, as the economy added a larger-than-expected
284,000 jobs. GDP growth for the third quarter was 3.5%.
During the period, inflation remained well-behaved with consumer prices
advancing 2.2% between October 1996 and October 1997. Wholesale inflation, as
measured by the Producer Price Index (PPI), fell for an unprecedented seven
months in a row before finally showing an increase in the past three months.
Overall, producer prices are down 0.2% on an annual basis through October. The
Federal Reserve made no change to monetary policy during the period despite
growth remaining above trend levels. Improving inflation fundamentals, a strong
dollar, and currency devaluations in Southeast Asia, argued against an increase
in official U.S. interest rates.
In Japan, economic problems continued to prevail, and the latest government
plan offered little help for the ailing Japanese economy. The April consumption
tax hike continues to negatively affect consumer spending as evidenced by a
weak Tankan report on business confidence. Growth prospects in Japan have been
further jeopardized by over-reliance on an increase in exports to the Southeast
and North Asia region. With the recent economic and financial crisis in these
regions, Asian GDP growth will slow further, thus negatively impacting Japanese
growth rates.
In Canada, strong growth and low budget deficits, together with stable U.S.
monetary policy, allowed Canada to delay interest rate hikes. In Australia and
New Zealand, high unemployment, lower Asian demand for their exports and good
inflation performance, set the stage for the Reserve Banks of Australia and New
Zealand to lower interest rates.
Stronger growth, and the inflationary impact of rising import prices in
Germany, set the tone for European markets. The Bundesbank's continued concern
about inflation resulted in the Bundesbank's larger-than-expected rate hike in
October. The Bundesbank raised interest rates 30 basis points, indicating that
it was necessary to move core European official rates in-line with what is
expected to be the necessary European average rate for EMU. This increase led
to subsequent rate increases throughout the other core European countries of
France, Denmark and the Netherlands.
INVESTMENT OUTLOOK
In the U.S., recent slowing in employment gains and soft retail sales suggest
slower growth towards year-end and early 1998. The currency devaluations and
economic slowing in Southeast Asia will also temper U.S. growth. We anticipate
3.5% GDP growth for 1997. We expect interest rates to stabilize at somewhat
higher levels and to settle back into our anticipated 5.75% - 6.75% range on
the U.S. 30-year bond. The healthy U.S. economy will continue to cycle gently
between stronger and weaker periods of growth. Given the prolonged period of
strong capacity utilization and employment gains, and the difficulty of
forecasting U.S. inflation in an increasingly global economy, there is a small
but measurable risk that the Federal Reserve will raise interest rates as a
precautionary measure.
Globally, we do not expect any of the world's three major central banks--the
U.S. Federal Reserve, the Bank of Japan or the German Bundesbank--to increase
rates again before year-end as they assess the impact of the Asian crisis on
future growth. Thus, global government bonds will generate positive returns
through year-end and early 1998.
In Europe, we continue to forecast a timely start to European Monetary Union,
with broad membership including Italy and Spain. Accordingly, we expect that
stronger growth prospects will be balanced by tighter monetary policy, where
necessary, and fiscal restraint will prevail in most countries. The Bundesbank
has started the process of official rate convergence in Europe. In Australia
and New Zealand, further interest rate cuts are expected as sluggish domestic
demand and weak trade partners (Japan and Southeast Asia) will delay a full
economic recovery. We expect the Bank of Canada to raise interest rates before
year-end to better reflect underlying economic fundamentals.
2
ALLIANCE MULTI-MARKET STRATEGY TRUST
_______________________________________________________________________________
In Poland, the newly elected Solidarity Government took power in October.
Initial signs are that the new cabinet will continue with the important
economic reforms initiated under the previous leadership. We remain confident
that the new government can weather any pressures resulting from the recent
volatility in emerging markets. The strength of Poland's economic fundamentals
is underscored by the fact that it is clearly acting as a local-currency
safe-haven for investors in the region.
The Mexican economy continues to perform strongly, and attention will focus on
the 1998 budget. Although the Mexican peso fell victim to the currency crisis
prevailing in Southeast Asia, economic fundamentals remain strong, and we
continue to believe that Mexico will grow 5%-6% annually through 2000.
In Southeast Asia, the near-term outlook is bleak. The unfolding adjustments
for these countries involve much weaker currencies, higher interest rates,
lower stock prices, numerous bankruptcies, banking-sector consolidation and
slower growth. Financial markets in this region will remain under intense
pressure as policy makers grapple with appropriate responses to the economic
crisis. The International Monetary Fund's decision to step in and provide funds
to shore up the shaky Thai and Indonesian financial sectors should eventually
help to provide needed stability to this region. Long-term, we are optimistic
about the investment value in this region since favorable fundamentals are
still in place. We will be monitoring developments in this region for
opportunities in the upcoming periods.
Thank you for your continued interest and investment in Alliance Multi-Market
Strategy 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 MULTI-MARKET STRATEGY TRUST
_______________________________________________________________________________
Alliance Multi-Market Strategy Trust seeks the highest level of current income
that is available from a portfolio of high-quality debt securities having
remaining maturities of not more than five years. It invests primarily in a
non-diversified portfolio of debt securities denominated in the U.S. dollar and
selected foreign currencies. The Fund expects to maintain at least 70% of its
assets in debt securities denominated in foreign currencies, but not more than
25% of the Fund's total assets may be invested in debt securities denominated
in a single currency other than the U.S. dollar.
INVESTMENT RESULTS
_______________________________________________________________________________
AVERAGE ANNUAL TOTAL RETURNS AS OF OCTOBER 31, 1997
CLASS A SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
------------ ------------
One Year 7.82% 3.25%
Five Years 4.49% 3.59%
Since Inception* 3.60% 2.91%
SEC Yield** 4.61%
CLASS B SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
------------ ------------
One Year 6.90% 3.95%
Five Years 3.64% 3.64%
Since Inception*(a) 2.84% 2.84%
SEC Yield** 4.15%
CLASS C SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
------------ ------------
One Year 6.92% 5.94%
Since Inception* 3.47% 3.47%
SEC Yield** 4.18%
The average annual total returns reflect reinvestment of dividends and/or
capital gains distributions in additional shares with and without the effect of
the 4.25% maximum front-end sales charge for Class A or applicable contingent
deferred sales charge for Class B (3% year 1, 2% year 2, 1% year 3, 0% year 4);
and for Class C shares (1% year 1). Returns for Class A shares do not reflect
the imposition of the 1 year 1% contingent deferred sales charge for accounts
over $1,000,000.
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: 5/29/91, Class A and Class B; 5/3/93, Class C.
** Yields are for the 30 days ended October 31, 1997.
(a) Assumes conversion of Class B shares into Class A shares after 6 years.
4
ALLIANCE MULTI-MARKET STRATEGY TRUST
_______________________________________________________________________________
ALLIANCE MULTI-MARKET STRATEGY TRUST
GROWTH OF A $10,000 INVESTMENT
5/31/91* TO 10/31/97
$15,000
$14,000
$13,000
$12,000
$11,000
$10,000
$9,000
5/31/91 10/31/91 10/31/92 10/31/93 10/31/94
10/31/95 10/31/96 10/31/97
MERRILL LYNCH 1-3 YEAR GOVERNMENT BOND INDEX: $14,935
LIPPER SHORT-WORLD MULTI-MARKET INCOME FUNDS AVERAGE: $13,053
MULTI-MARKET STRATEGY TRUST: $12,024
This chart illustrates the total value of an assumed $10,000 investment in
Alliance Multi-Market Strategy Trust Class A shares (from 5/31/91 to 10/31/97)
as compared to the performance of an appropriate broad-based index. The chart
reflects the deduction of the maximum 4.25% sales charge from the initial
$10,000 investment in the Fund and assumes the reinvestment of dividends and
capital gains. Performance for Class B and Class C shares will vary from the
results shown above due to differences in expenses charged to those classes.
Past performance is not indicative of future results, and is not representative
of future gain or loss in capital value or dividend income.
The 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 performance
of 33 funds. These funds have generally similar investment objectives to
Alliance Multi-Market Strategy Trust, although the investment policies of some
funds included in the average may vary.
When comparing Alliance Multi-Market Strategy Trust to the index and average
shown above, you should note that no charges or expenses are reflected in the
performance of the index. Lipper results include fees and expenses.
Multi-Market Strategy Trust
Merrill Lynch 1-3 Year Government Bond Index
Lipper Short-World Multi-Market Income Funds Average
* Month-end nearest to Fund's Class A share inception date of 5/29/91.
5
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1997 ALLIANCE MULTI-MARKET STRATEGY TRUST
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) U.S. $ VALUE
- -------------------------------------------------------------------------------
AUSTRALIA-9.2%
DEBT OBLIGATIONS-9.2%
Deutsche Bank AG
6.00%, 7/05/00 (a) AU$ 10,000 $ 7,095,792
State Bank of South Wales
8.63%, 8/20/01 6,000 4,596,301
Total Australian Securities
(cost $11,860,798) 11,692,093
DENMARK-6.6%
GOVERNMENT OBLIGATION-6.6%
Kingdom of Denmark
9.00%, 11/15/00 (a)
(cost $9,941,781) DKK 50,000 8,431,143
FRANCE-4.1%
GOVERNMENT OBLIGATION-4.1%
Government of France
7.75%, 4/12/00 (a)
(cost $5,007,641) FRF 28,000 5,206,411
GERMANY-16.4%
DEBT OBLIGATIONS-12.0%
Bayerische Landesbank Girozentrale
5.75%, 2/28/01 (a) US$ 5,000 4,966,860
Bayerische Vereinsbank Finansiering
5.25%, 5/17/01 (a) DEM 7,400 4,334,010
Deutsche Hypothekenbank
5.75%, 10/02/01 (a) 10,000 5,943,752
------------
15,244,622
GOVERNMENT OBLIGATION-4.4%
Government of Germany
8.00%, 7/22/02 (a) 8,500 5,540,157
Total German Securities
(cost $21,820,692) 20,784,779
ITALY-11.7%
GOVERNMENT OBLIGATIONS-11.7%
Republic of Italy
6.00%, 2/15/00 (a) ITL 10,400,000 6,218,973
6.25%, 5/15/02 (a) 14,400,000 8,694,222
Total Italian Securities
(cost $14,039,136) 14,913,195
MEXICO-5.2%
GOVERNMENT OBLIGATION-5.2%
Mexican Treasury Bill
22.85%, 6/04/98 (a)(b)
(cost $7,167,870) MXP 63,787 6,667,724
NEW ZEALAND-5.0%
GOVERNMENT OBLIGATION-5.0%
Government of New Zealand
10.00%, 3/15/02 (a)
(cost $6,910,129) NZ$ 9,150 6,383,766
NORWAY-5.3%
GOVERNMENT OBLIGATION-5.3%
Kingdom of Norway
7.00%, 5/31/01 (a)
(cost $7,340,901) NOK 45,000 6,808,075
POLAND-4.0%
GOVERNMENT OBLIGATION-4.0%
Government of Poland Treasury Bill
23.05%, 9/30/98 (a)(b)
(cost $5,232,570) PLN 21,600 5,095,988
SPAIN-4.5%
GOVERNMENT OBLIGATION-4.5%
Government of Spain
7.40%, 7/30/99 (a)
(cost $5,627,044) ESP 800,000 5,712,864
SWEDEN-8.2%
GOVERNMENT OBLIGATIONS-8.2%
Kingdom of Sweden
5.50%, 4/12/02 (a) SEK 40,000 5,243,190
13.00%, 6/15/01 (a) 32,000 5,243,829
Total Swedish Securities
(cost $11,186,107) 10,487,019
UNITED STATES-13.2%
DEBT OBLIGATION-3.2%
Morgan Guaranty Trust Co.
6.38%, 3/26/01 US$ 4,000 4,032,680
6
ALLIANCE MULTI-MARKET STRATEGY TRUST
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) U.S. $ VALUE
- -------------------------------------------------------------------------------
GOVERNMENT AGENCY OBLIGATION-3.9%
FNMA Global
7.25%, 6/20/02 (a) NZ$ 7,850 $ 4,919,573
TIME DEPOSIT-6.1%
Union Bank of Switzerland
5.63%, 11/03/97 US$ 7,800 7,800,000
Total United States Securities
(cost $17,155,740) 16,752,253
TOTAL INVESTMENTS-93.4%
(cost $123,290,409) 118,935,310
Other assets less liabilities-6.6% 8,349,554
NET ASSETS-100% $127,284,864
(a) Securities, or portion thereof, with an aggregate market value of
$102,506,329 have been segregated to collateralize forward exchange currency
contracts.
(b) Annualized yield to maturity at purchase date.
Glossary:
FNMA - Federal National Mortgage Association
See notes to financial statements.
7
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1997 ALLIANCE MULTI-MARKET STRATEGY TRUST
_______________________________________________________________________________
ASSETS
Investments in securities, at value (cost $123,290,409) $ 118,935,310
Cash 83,624
Receivable for investment securities sold 16,084,402
Receivable for capital stock sold 6,848,878
Interest receivable 2,699,993
Total assets 144,652,207
LIABILITIES
Payable for investment securities purchased 8,885,757
Payable for capital stock redeemed 7,067,491
Unrealized depreciation of forward exchange
currency contracts 809,466
Dividend payable 344,279
Advisory fee payable 66,354
Distribution fee payable 56,349
Accrued expenses and other liabilities 137,647
Total liabilities 17,367,343
NET ASSETS $ 127,284,864
COMPOSITION OF NET ASSETS
Capital stock, at par $ 17,903
Additional paid-in capital 149,990,746
Undistributed net investment income 6,044,326
Accumulated net realized loss on investments and foreign
currency transactions (23,648,532)
Net unrealized depreciation of investments and foreign
currency denominated assets and liabilities (5,119,579)
$ 127,284,864
CALCULATION OF MAXIMUM OFFERING PRICE
CLASS A SHARES
Net asset value and redemption price per share ($96,132,589/
13,521,188 shares of capital stock issued and outstanding) $7.11
Sales charge--4.25% of public offering price 0.32
Maximum offering price $7.43
CLASS B SHARES
Net asset value and offering price per share ($29,949,071/
4,212,381 shares of capital stock issued and outstanding) $7.11
CLASS C SHARES
Net asset value and offering price per share ($1,203,204/
169,231 shares of capital stock issued and outstanding) $7.11
See notes to financial statements.
8
STATEMENT OF OPERATIONS
YEAR ENDED OCTOBER 31, 1997 ALLIANCE MULTI-MARKET STRATEGY TRUST
_______________________________________________________________________________
INVESTMENT INCOME
Interest (net of foreign taxes
withheld of $2,819) $11,597,392
EXPENSES
Advisory fee $ 861,400
Distribution fee - Class A 225,790
Distribution fee - Class B 670,505
Distribution fee - Class C 12,665
Transfer agency 378,701
Custodian 213,311
Administrative 139,303
Audit and legal 123,759
Registration 49,413
Printing 46,526
Directors' fees 23,777
Miscellaneous 10,832
Total expenses 2,755,982
Less: expense offset arrangement (see Note B) (14,534)
Net expenses 2,741,448
Net investment income 8,855,944
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain on investment transactions 543,242
Net realized gain on foreign currency transactions 7,847,854
Net change in unrealized appreciation (depreciation) of:
Investments (5,701,069)
Foreign currency denominated assets and liabilities (913,253)
Net gain on investments 1,776,774
NET INCREASE IN NET ASSETS FROM OPERATIONS $10,632,718
See notes to financial statements.
9
STATEMENT OF CHANGES IN NET ASSETS ALLIANCE MULTI-MARKET STRATEGY TRUST
_______________________________________________________________________________
YEAR ENDED YEAR ENDED
OCTOBER 31, OCTOBER 31,
1997 1996
------------- -------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
Net investment income $ 8,855,944 $ 13,711,313
Net realized gain on investments and
foreign currency transactions 8,391,096 8,965,952
Net change in unrealized appreciation
(depreciation) of investments and foreign
currency denominated assets and liabilities (6,614,322) 2,521,721
Net increase in net assets from operations 10,632,718 25,198,986
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income
Class A (4,899,179) (6,739,295)
Class B (3,883,236) (8,667,262)
Class C (73,529) (68,303)
Distributions in excess of net investment
income
Class A (2,095,730) -0-
Class B (1,692,062) -0-
Class C (32,833) -0-
CAPITAL STOCK TRANSACTIONS
Net decrease (28,950,404) (45,618,195)
Total decrease (30,994,255) (35,894,069)
NET ASSETS
Beginning of year 158,279,119 194,173,188
End of year (including undistributed net
investment income of $6,044,326, and
$2,010,110, respectively) $127,284,864 $158,279,119
See notes to financial statements.
10
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 1997 ALLIANCE MULTI-MARKET STRATEGY TRUST
_______________________________________________________________________________
NOTE A: SIGNIFICANT ACCOUNTING POLICIES
Alliance Multi-Market Strategy Trust, Inc. (the "Fund") was incorporated in the
State of Maryland as a non-diversified, open-end management investment company.
The Fund offers Class A, Class B and Class C shares. Class A shares are sold
with a front-end sales charge of up to 4.25% for purchases not exceeding
$1,000,000. With respect to purchases of $1,000,000 or more, Class A shares
redeemed within one year of purchase will be subject to a contingent deferred
sales charge of 1%. Class B shares are sold with a contingent deferred sales
charge which declines from 3.0% to zero depending on the period of time the
shares are held. Class B shares will automatically convert to Class A shares
six years after the end of the calendar month of purchase. Class C shares are
subject to a contingent deferred sales charge of 1.0% on redemptions made
within the first year after purchase. All three classes of shares have
identical voting, dividend, liquidation and other rights and the same terms and
conditions, except that each class bears different distribution expenses and
has exclusive voting rights with respect to its distribution plan. 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.
2. 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 earned or accrued.
Net realized gains on foreign currency transactions represent foreign exchange
gains and losses from sales and maturities of securities and forward exchange
currency contracts, 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 the securities are purchased or sold. Investment gains and losses are
determined on the identified cost basis. The Fund accretes discount as an
adjustment to interest income.
5. INCOME AND EXPENSES
All income earned and expenses incurred by the Fund are borne on a pro-rata
basis by each settled class of shares, based on the proportionate interest in
the Fund represented by the shares of such class, except that the Fund's Class
B and Class C shares bear higher distribution and transfer agent fees than
Class A shares.
6. DIVIDENDS AND DISTRIBUTIONS
Dividends and distributions to shareholders are recorded on the ex-dividend
date.
11
NOTES TO FINANCIAL STATEMENTS (CONT.) ALLIANCE MULTI-MARKET STRATEGY TRUST
_______________________________________________________________________________
Income and capital gains distributions are determined in accordance with
federal tax regulations and may differ from those determined in accordance with
generally accepted accounting principles. To the extent these differences are
permanent, such amounts are reclassified within the capital accounts based on
their federal tax basis treatment; temporary differences do not require such
reclassification. During the current fiscal year, permanent differences,
primarily due to foreign currency gains, resulted in a net increase in
undistributed net investment income and additional paid-in capital and a
corresponding increase in accumulated net realized loss on investments and
foreign currency transactions. This reclassification had no effect on net
assets.
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
.60 of 1% of the average daily net assets of the Fund. Such fee is accrued
daily and paid monthly.
Pursuant to the advisory agreement, the Fund paid $139,303 to the Adviser
representing the cost of certain legal and accounting services provided to the
Fund by the Adviser for the year ended October 31, 1997.
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 $227,227 for the year ended October 31, 1997.
In addition, for the year ended October 31, 1997, the Fund's expenses were
reduced by $14,534 under an expense offset arrangement with Alliance Fund
Services. Transfer Agency fees reported in the statement of operations exclude
these credits.
Alliance Fund Distributors, Inc. (a wholly-owned subsidiary of the Adviser)
serves as the Distributor of the Fund's shares. The Distributor received
front-end sales charges of $6,149 from the sale of Class A shares and $14,872,
and $1,764 in contingent deferred sales charges imposed upon redemptions by
shareholders of Class B and Class C shares, respectively, for the year ended
October 31, 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 .30 of 1% of the average daily net assets attributable to the
Class A shares and 1% of the average daily net assets attributable to both
Class B and Class C shares. The 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
Distributor has incurred expenses in excess of the distribution costs
reimbursed by the Fund in the amount of $9,474,320 and $553,610 for Class B and
C shares, respectively. Such costs may be recovered from the Fund in future
periods so long as the agreement is in effect. In accordance with the
Agreement, there is no provision for recovery of unreimbursed distribution
costs, incurred by the Distributor, beyond the current fiscal year for Class A
shares. 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
Purchases and sales of investment securities (excluding short-term investments
and U.S. government obligations) aggregated $172,663,904 and $189,946,821,
respectively, for the year ended October 31, 1997. There were purchases of
$24,899,758 and sales of $37,657,708 of U.S. government and government agency
obligations for the year ended October 31, 1997.
At October 31, 1997, 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 $1,287,872 and gross unrealized
depreciation of investments was $5,642,971, resulting in net unrealized
depreciation of $4,355,099 (excluding foreign currency transactions).
12
ALLIANCE MULTI-MARKET STRATEGY TRUST
_______________________________________________________________________________
At October 31, 1997, the Fund had a capital loss carry forward of $23,648,532
of which $1,488,331 expires in the year 2000, $4,570,679 expires in the year
2001, $11,533,613 expires in the year 2002, and $6,055,909 expires in the year
2003.
1. FORWARD EXCHANGE CURRENCY CONTRACTS
The Fund enters into forward exchange currency contracts to hedge its exposure
to changes in foreign currency exchange rates on its foreign portfolio
holdings, to hedge certain firm purchase and sales commitments denominated in
foreign currencies and for investment purposes. 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 assets 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 the 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 of
the Fund in that particular currency contract.
At October 31, 1997, the Fund had outstanding forward exchange currency
contracts, as follows:
<TABLE>
<CAPTION>
CONTRACT U.S. $ VALUE ON U.S. $ UNREALIZED
AMOUNT ORIGINATION CURRENT APPRECIATION
(000) DATE VALUE (DEPRECIATION)
--------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
FORWARD EXCHANGE CURRENCY
BUY CONTRACTS
Deutsche Marks,
expiring 11/07/97-11/25/97 18,028 $ 10,360,426 $ 10,461,122 $ 100,696
French Francs,
expiring 11/06/97 7,798 1,349,814 1,352,763 2,949
Indonesian Rupiah,
expiring 1/16/98 9,000,000 3,568,597 2,434,900 (1,133,697)
Norwegian Kroner,
expiring 11/03/97 47,838 6,625,605 6,825,839 200,234
Swedish Krona,
expiring 12/04/97 38,394 5,119,214 5,114,604 (4,610)
FORWARD EXCHANGE CURRENCY
SALE CONTRACTS
Australian Dollars,
expiring 11/14/97 19,243 14,187,616 13,535,311 652,305
Deutsche Marks,
expiring 11/07/97-11/25/97 72,514 41,135,436 42,097,878 (962,442)
French Francs,
expiring 11/06/97 34,242 5,758,837 5,940,255 (181,418)
Indonesian Rupiah,
expiring 1/16/98 9,000,000 3,491,891 2,434,900 1,056,991
</TABLE>
13
NOTES TO FINANCIAL STATEMENTS (CONT.) ALLIANCE MULTI-MARKET STRATEGY TRUST
_______________________________________________________________________________
<TABLE>
<CAPTION>
CONTRACT U.S. $ VALUE ON U.S. $ UNREALIZED
AMOUNT ORIGINATION CURRENT APPRECIATION
(000) DATE VALUE (DEPRECIATION)
--------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Italian Lira,
expiring 11/10/97 24,988,933 $ 14,454,245 $ 14,753,725 $ (299,480)
New Zealand Dollars,
expiring 11/10/97 19,395 12,315,950 12,072,513 243,437
Norwegian Kroner,
expiring 11/03/97 47,838 6,750,401 6,825,839 (75,438)
Swedish Krona,
expiring 12/04/97 111,058 14,593,643 14,794,349 (200,706)
Swiss Francs,
expiring 12/08/97 9,385 6,512,811 6,721,098 (208,287)
$ (809,466)
</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 year ended October
31, 1997.
3. INTEREST RATE SWAP AGREEMENTS
The Fund enters into currency and interest rate swaps to protect itself from
foreign currency and interest rate fluctuations on the underlying debt
instruments. A swap is an agreement that obligates two parties to exchange a
series of cash flows at specified intervals based upon or calculated by
reference to changes in specified prices or rates for a specified amount of an
underlying asset. The payment flows are usually netted against each other, with
the difference being paid by one party to the other.
Risks may arise as a result of the failure of the counterparty to the swap
contract to comply with the terms of the swap contract. The loss incurred by
the failure of a counterparty is generally limited to the net interest payment
to be received by the Fund, and/or the termination value at the end of the
contract. Therefore, the Fund considers the creditworthiness of each
counterparty to a swap contract in evaluating potential credit risk.
Additionally, risks may arise from unanticipated movements in interest rates or
in the value of the foreign securities or currencies.
14
ALLIANCE MULTI-MARKET STRATEGY TRUST
_______________________________________________________________________________
The Fund records a net receivable or payable on a daily basis for the net
interest income or expense expected to be received or paid in the interest
period. Net interest received or paid on these contracts is recorded as
interest income (or as an offset to interest income). Fluctuations in the
value of investments are recorded for financial statement purposes as
unrealized appreciation or depreciation of investments. Realized gains and
losses from terminated swaps are included in net realized gains on investment
transactions. There were no outstanding currency or interest rate swap
contracts at October 31, 1997.
NOTE E: CAPITAL STOCK
There are 9,000,000,000 shares of $.001 par value capital stock authorized,
divided into three classes, designated Class A, Class B and Class C shares.
Each class consists of 3,000,000,000 authorized shares. Transactions in capital
stock were as follows:
SHARES AMOUNT
--------------------------- ------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
1997 1996 1997 1996
------------ ------------ -------------- --------------
CLASS A
Shares sold 516,722 302,988 $ 3,728,611 $ 2,125,120
Shares issued in
reinvestment of
dividends 211,609 223,790 1,529,106 1,567,466
Shares converted
from Class B 5,542,644 481,948 39,662,519 3,382,773
Shares redeemed (2,268,565) (2,745,589) (16,382,016) (19,157,166)
Net increase
(decrease) 4,002,410 (1,736,863) $ 28,538,220 $ (12,081,807)
CLASS B
Shares sold 509,209 711,413 $3,686,703 $5,004,343
Shares issued in
reinvestment of
dividends 176,547 249,020 1,277,395 1,743,484
Shares converted
to Class A (5,542,644) (481,948) (39,662,519) (3,382,773)
Shares redeemed (3,169,143) (5,315,003) (22,944,703) (37,147,265)
Net decrease (8,026,031) (4,836,518) $ (57,643,124) $ (33,782,211)
CLASS C
Shares sold 114,774 98,250 $ 838,047 $ 694,497
Shares issued in
reinvestment of
dividends 7,279 3,744 52,557 26,251
Shares redeemed (101,777) (68,091) (736,104) (474,925)
Net increase 20,276 33,903 $ 154,500 $ 245,823
15
FINANCIAL HIGHLIGHTS ALLIANCE MULTI-MARKET STRATEGY TRUST
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH YEAR
<TABLE>
<CAPTION>
CLASS A
--------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
--------------------------------------------------------------------
1997 1996 1995 1994 1993
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year $ 7.23 $ 6.83 $ 8.04 $ 8.94 $ 8.85
INCOME FROM INVESTMENT OPERATIONS
Net investment income .47(a) .59(a) .77(a) .85 1.02
Net realized and unrealized gain (loss)
on investments and foreign
currency transactions .08 .48 (1.31) (1.08) (.26)
Net increase (decrease) in net asset
value from operations .55 1.07 (.54) (.23) .76
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.47) (.67) -0- (.09) (.67)
Distributions in excess of net
investment income (.20) -0- -0- -0- -0-
Tax return of capital -0- -0- (.67) (.58) -0-
Total dividends and distributions (.67) (.67) (.67) (.67) (.67)
Net asset value, end of year $ 7.11 $ 7.23 $ 6.83 $ 8.04 $ 8.94
TOTAL RETURN
Total investment return based on
net asset value(b) 7.82% 16.37% (6.47)% (2.64)% 9.01%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (000's omitted) $96,133 $68,776 $76,837 $52,385 $82,977
Ratio to average net assets of:
Expenses 1.58%(c) 1.64% 1.60% 1.41% 1.94%
Expenses, excluding interest expense 1.58% 1.60%(d) 1.55%(d) 1.30%(d) 1.40%(d)
Net investment income 6.50% 8.40% 8.56% 7.17% 9.17%
Portfolio turnover rate 173% 215% 400% 605% 200%
</TABLE>
See footnote summary on page 18.
16
ALLIANCE MULTI-MARKET STRATEGY TRUST
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH YEAR
<TABLE>
<CAPTION>
CLASS B
--------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
--------------------------------------------------------------------
1997 1996 1995 1994 1993
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year $ 7.23 $ 6.83 $ 8.04 $ 8.94 $ 8.85
INCOME FROM INVESTMENT OPERATIONS
Net investment income .42(a) .53(a) .44(a) .88 .92
Net realized and unrealized gain
(loss) on investments
and foreign currency transactions .06 .47 (1.05) (1.18) (.22)
Net increase (decrease) in net asset
value from operations .48 1.00 (.61) (.30) .70
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.42) (.60) -0- (.08) (.61)
Distributions in excess of net
investment income (.18) -0- -0- -0- -0-
Tax return of capital -0- -0- (.60) (.52) -0-
Total dividends and distributions (.60) (.60) (.60) (.60) (.61)
Net asset value, end of year $ 7.11 $ 7.23 $ 6.83 $ 8.04 $ 8.94
TOTAL RETURN
Total investment return based on
net asset value(b) 6.90% 15.35% (7.31)% (3.35)% 8.25%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (000's omitted) $29,949 $88,427 $116,551 $233,896 $431,186
Ratio to average net assets of:
Expenses 2.29%(c) 2.35% 2.29% 2.11% 2.64%
Expenses, excluding interest expense 2.29% 2.31%(d) 2.22%(d) 2.01%(d) 2.11%(d)
Net investment income 5.79% 7.69% 7.53% 6.44% 8.46%
Portfolio turnover rate 173% 215% 400% 605% 200%
</TABLE>
See footnote summary on page 18.
17
FINANCIAL HIGHLIGHTS (CONTINUED) ALLIANCE MULTI-MARKET STRATEGY TRUST
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
CLASS C
-----------------------------------------------------------------------
MAY 3, 1993(E)
YEAR ENDED OCTOBER 31, TO
------------------------------------------------------ OCT. 31,
1997 1996 1995 1994 1993
------------ ------------ ------------ ------------ ---------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 7.23 $ 6.83 $ 8.04 $ 8.94 $ 8.76
INCOME FROM INVESTMENT OPERATIONS
Net investment income .42(a) .54(a) .44(a) .46 .32
Net realized and unrealized gain
(loss) on investments and foreign
currency transactions .07 .47 (1.04) (.75) .16
Net increase (decrease) in net asset
value from operations .49 1.01 (.60) (.29) .48
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.42) (.61) -0- (.09) (.30)
Distributions in excess of net
investment income (.19) -0- -0- -0- -0-
Tax return of capital -0- -0- (.61) (.52) -0-
Total dividends and distributions (.61) (.61) (.61) (.61) (.30)
Net asset value, end of period $ 7.11 $ 7.23 $ 6.83 $ 8.04 $ 8.94
TOTAL RETURN
Total investment return based on
net asset value (b) 6.92% 15.36% (7.29)% (3.34)% 5.54%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $1,203 $1,076 $786 $1,252 $718
Ratio to average net assets of:
Expenses 2.28%(c) 2.34% 2.29% 2.08% 2.44%(f)
Expenses, excluding interest expense 2.28% 2.30%(d) 2.24%(d) 1.99%(d) 2.11%(d)(f)
Net investment income 5.80% 7.62% 7.55% 6.10% 7.17%(f)
Portfolio turnover rate 173% 215% 400% 605% 200%
</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. Initial sales charge or contingent
deferred sales charge is not reflected in the calculation of the total
investment return. Total investment return calculated for a period of less than
one year is not annualized.
(c) Ratio reflects expense grossed up for expense offset arrangement with the
Transfer Agent. For the year ended October 31, 1997, the net expense ratio was
1.57%, 2.28% and 2.27% for Class A, B and C shares, respectively.
(d) Interest expense includes commitment fees paid.
(e) Commencement of distribution.
(f) Annualized.
18
REPORT OF ERNST & YOUNG LLP
INDEPENDENT AUDITORS ALLIANCE MULTI-MARKET STRATEGY TRUST
_______________________________________________________________________________
TO THE SHAREHOLDERS AND BOARD OF DIRECTORS ALLIANCE MULTI-MARKET
STRATEGY TRUST, INC.
We have audited the accompanying statement of assets and liabilities of
Alliance Multi-Market Strategy Trust, Inc. (the "Fund"), including the
portfolio of investments, as of October 31, 1997, and the related statement of
operations for the year then ended, the statement of changes in net assets for
each of the two years in the period then ended, and the financial highlights
for each of the periods indicated therein. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
October 31, 1997, by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Alliance Multi-Market Strategy Trust, Inc. at October 31, 1997, the results of
its operations for the year then ended, the changes in its net assets for each
of the two years in the period then ended, and the financial highlights for
each of the indicated periods, in conformity with generally accepted accounting
principles.
New York, New York
December 10, 1997
19
ALLIANCE MULTI-MARKET STRATEGY 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 & CHIEF FINANCIAL OFFICER
JUAN J. RODRIGUEZ, CONTROLLER
CUSTODIAN
BROWN BROTHERS HARRIMAN & CO.
40 Water Street
Boston, MA 02109
PRINCIPAL UNDERWRITER
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) 221-5672
INDEPENDENT AUDITORS
ERNST & YOUNG LLP
787 Seventh Avenue
New York, NY 10019
(1) Member of the Audit Committee.
20
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 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 Environment 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 Greater China '97 Fund
Alliance International Fund
Alliance New Europe Fund
Alliance Worldwide Privatization Fund
CLOSED-END FUNDS
Alliance All-Market Advantage 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
21
ALLIANCE MULTI-MARKET STRATEGY 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.
ASTAR
