ALLIANCE MULTI-MARKET STRATEGY TRUST
SEMI-ANNUAL REPORT
APRIL 30, 1999
ALLIANCE CAPITAL
LETTER TO SHAREHOLDERS ALLIANCE MULTI-MARKET STRATEGY TRUST
_______________________________________________________________________________
June 18, 1999
Dear Shareholder:
We are pleased to report to you on the performance, strategy and outlook of the
Alliance Multi-Market Strategy Trust (the "Fund"), for the six-month period
ended April 30, 1999. The Fund is designed for investors who seek the highest
level of current income that is available, consistent with what Alliance
considers to be prudent investment risk, from a portfolio of high-quality,
short-term (0-5 year maturity) debt securities.
INVESTMENT PERFORMANCE
The following table provides your Fund's performance during the six- and
twelve-month periods ended April 30, 1999. For comparison, we have included the
performance for Merrill Lynch 1-5 Year Government Bond Index, a standard
measure of the performance of a basket of unmanaged debt securities, and the
Lipper Short World Multi-Market Income Funds Average, which reflects the
average performance of 20 funds with similar investment objectives.
During the past six months, your Fund outperformed both the Merrill Lynch 1-5
Year Government Bond Index and the Lipper Short World Multi-Market Income Funds
Average. Our underweighting of U.S. government bonds and focus on European
government bonds enhanced your Fund's performance over the six-month period.
For the twelve-month period, your Fund underperformed the Merrill Lynch 1-5
Year Government Bond Index, which is a U.S.-only based Index, and outperformed
the Lipper Short World Multi-Market Income Funds Average. Over the twelve-month
period our underweighting of the U.S. market hurt performance as the U.S.
market performed relatively well in the flight-to-quality last summer.
INVESTMENT RESULTS*
Periods Ended April 30, 1999
TOTAL RETURNS
6 MONTHS 12 MONTHS
---------- -----------
ALLIANCE MULTI-MARKET STRATEGY TRUST
Class A 2.70% 5.56%
Class B 2.21% 4.72%
Class C 2.37% 4.74%
MERRILL LYNCH 1-5 YEAR GOVERNMENT
BOND INDEX 0.60% 6.22%
LIPPER SHORT WORLD MULTI- MARKET
INCOME FUNDS AVERAGE 1.25% 4.11%
* THE FUND'S INVESTMENT RESULTS REPRESENT TOTAL RETURNS AND ARE BASED ON THE
NET ASSET VALUE AS OF APRIL 30, 1999. ALL FEES AND EXPENSES RELATED TO THE
OPERATION OF THE FUND HAVE BEEN DEDUCTED, BUT NO ADJUSTMENT HAS BEEN MADE FOR
SALES CHARGES THAT MAY APPLY WHEN SHARES ARE PURCHASED OR REDEEMED. RETURNS FOR
THE FUND INCLUDE THE REINVESTMENT OF ANY DISTRIBUTIONS PAID DURING THE PERIOD.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
THE UNMANAGED MERRILL LYNCH 1-5 YEAR GOVERNMENT BOND INDEX CONSISTS OF
SHORT-TERM U.S. TREASURY SECURITIES MATURING IN ONE TO FIVE YEARS. THE LIPPER
SHORT WORLD MULTI-MARKET INCOME FUNDS AVERAGE (LIPPER AVERAGE) REFLECTS
PERFORMANCE OF 20 FUNDS DURING BOTH THE SIX- AND TWELVE-MONTH PERIODS ENDED
APRIL 30, 1999. THE FUNDS THAT COMPRISE THE LIPPER AVERAGE HAVE GENERALLY
SIMILAR INVESTMENT OBJECTIVES TO YOUR FUND, ALTHOUGH INVESTMENT POLICIES FOR
THE VARIOUS FUNDS MAY DIFFER. AN INVESTOR CANNOT INVEST DIRECTLY IN AN INDEX OR
AN AVERAGE.
ADDITIONAL INVESTMENT RESULTS APPEAR ON PAGE 4.
MARKET OVERVIEW
During the six-month period ended April 30, 1999, financial markets stabilized
and recovered from the turmoil experienced in the third quarter of 1998. The
ongoing strength of the U.S. economy, interest rate cuts by central banks
around the world and constructive policy initiatives in economically troubled
regions helped restore prospects for the global economy. Equity markets reached
new highs while credit markets stabilized as investors moved out of traditional
safe-haven government bond markets into higher yielding asset classes.
1
ALLIANCE MULTI-MARKET STRATEGY TRUST
_______________________________________________________________________________
Among the sectors of the U.S. bond market, the high yield sector performed
strongly while the U.S. Treasury market lagged. After the Federal Reserve cut
interest rates and the equity market rebounded, investors moved out of the
safe-haven of U.S. Treasuries and back into higher yielding sectors.
Among developed government bond markets, all countries posted positive returns
with the exception of the U.S. bond market. Strong U.S. economic growth and
increasing economic stability around the world reduced the safe-haven premium
on U.S. government bonds and increased the likelihood that the Federal Reserve
would raise interest rates, which hurt bond performance. In Japan, concerns
about the ability of the bond market to absorb the large supply of government
bonds being issued to finance a massive fiscal stimulus package, as well as
further erosion of Japanese economic fundamentals, dampened Japanese bond
market performance during the period. European markets performed well over the
period helped by interest rate cuts. In the dollar bloc countries, Australia,
New Zealand and Canada, growth slowed and inflation remained low. In general,
the dollar bloc countries posted weaker relative returns during the period.
The European Monetary Union ("EMU") began successfully in January of 1999.
However, the new currency, the Euro, fell more than 10% against the U.S. dollar
in its first four months of trading. Weak economic performance in core European
countries, Germany and Italy, along with the uncertainty caused by the conflict
in Kosovo hurt the Euro.
INVESTMENT STRATEGY
During the period under review, we underweighted the U.S. government bond
market to pursue investment opportunities in foreign markets. We maintained our
investments in Europe, including Germany, Italy and the Scandinavian countries.
In the dollar bloc, we added Australian and New Zealand government bonds as
lower interest rates and slowing growth benefited the bond market in those
regions. In the European arena, we reduced our exposure to French government
bonds as their economy improved.
OUTLOOK
Global financial markets have continued to stabilize from late in 1998 and
investors are now able to focus more on economic fundamentals. We expect global
growth to continue to slow and inflation to remain low. Central banks in Europe
and Japan will keep rates low, but it is becoming more likely that the Federal
Reserve will increase official U.S. interest rates. U.S. economic activity is
expected to moderate from the robust rate of the first quarter, with 1999
growth estimated around 3.9%. The slowing in industrial production appears to
be abating and consumption should moderate slightly from the robust level in
1998.
We believe the environment for global growth will improve, however, some
regions of the global economy will continue to struggle with weakness. In
Japan, policymakers have achieved a greater degree of coordination in their
efforts to stimulate the economy, there is evidence that Asian economies are
bottoming, and the Brazilian government is meeting our most optimistic
expectations after devaluating the real earlier this year. As the one-sided
risk of a global meltdown declines with broadening evidence of a global
recovery and improved market stability, our forecasting discipline naturally
pushes us toward a less biased view. Accordingly, we have eliminated our
long-standing tilt in favor of additional Fed easing as the continued strength
of the U.S. economy increases the likelihood of Fed tightening.
Outside the U.S., fundamentals still point toward lower yields. In Europe, the
recent action by the European Central Bank ("ECB") to cut rates was expected,
but the size of the interest rate cut of 0.50% was more than we were expecting.
The cut by the ECB confirms our views of weak growth in Euroland, but also puts
pressure on European politicians to address the structural problems that
continue to plague the European economies. We have received numerous statements
from ECB officials that further interest rate cuts by the ECB are not expected.
EMU growth is likely to be 1.9% in 1999, following 2.9% in 1998, with the
slowdown attributable to Italy and Germany. Europe will continue to be a
positive environment for investors due to overall weak growth and the
likelihood that low rates will be required in Europe for a considerable period.
2
ALLIANCE MULTI-MARKET STRATEGY TRUST
_______________________________________________________________________________
Japanese policymakers have recently achieved a greater degree of coordination
in their efforts to stimulate the economy and Japanese gross domestic product
is expected to decline by 1.0% in 1999, an improvement over the 2.8% decline in
1998. Whether economic activity in Japan has actually bottomed will be a key
question going forward and will largely determine the direction of global
growth and interest rate patterns later this year.
Thank you for your continued interest and investment in the Alliance
Multi-Market Strategy Trust. We look forward to reporting to you again on
market activity and the Fund's investment results in the 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, consistent with what Alliance considers to be prudent
investment risk, from a portfolio of high-quality debt securities having
remaining maturities of not more than five years, with a high proportion of
investments in money market instruments. The Fund seeks investment
opportunities in foreign, as well as domestic, securities markets. Normally, at
least 70% of the Fund's debt securities will be denominated in foreign
currencies. The Fund limits its investments in a single currency other than the
U.S. dollar to 25% of its net assets, except for the Euro in which the Fund may
invest up to 50% of its net assets.
INVESTMENT RESULTS
_______________________________________________________________________________
NAV AND SEC AVERAGE ANNUAL TOTAL RETURNS AS OF APRIL 30, 1999
CLASS A SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
------------ ------------
One Year 5.56% 1.09%
Five Years 5.14% 4.24%
Since Inception* 4.13% 3.57%
SEC Yield** 3.54%
CLASS B SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
------------ ------------
One Year 4.72% 1.83%
Five Years 4.28% 4.28%
Since Inception* (a) 3.51% 3.51%
SEC Yield** 2.80%
CLASS C SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
------------ ------------
One Year 4.74% 3.77%
Five Years 4.30% 4.30%
Since Inception* 4.03% 4.03%
SEC Yield** 2.82%
SEC AVERAGE ANNUAL TOTAL RETURNS AS OF THE MOST RECENT QUARTER-END (MARCH 31,
1999)
CLASS A CLASS B CLASS C
------------ ------------ ------------
1 Year 1.07% 1.81% 3.75%
5 Years 4.05% 4.11% 4.12%
Since Inception* 3.51% 3.46% 3.98%
The Fund's investment results represent average annual total returns. The NAV
and SEC returns reflect reinvestment of dividends and/or capital gains
distributions in additional shares without (NAV) and with (SEC) 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.
** SEC yields are based on SEC guidelines and are calculated on 30 days ended
April 30, 1999.
(a) Assumes conversion of class b shares into class a shares after six years.
4
PORTFOLIO OF INVESTMENTS
APRIL 30, 1999 (UNAUDITED) ALLIANCE MULTI-MARKET STRATEGY TRUST
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) U.S. $ VALUE
- -------------------------------------------------------------------------
AUSTRALIA-5.1%
DEBT OBLIGATIONS-2.0%
Deutsche Bank AG
6.00%, 7/05/00 (a) AU$ 8,000 $ 5,333,705
State Bank of South Wales
8.63%, 8/20/01(a) 6,000 4,238,509
------------
9,572,214
GOVERNMENT OBLIGATION-3.1%
Government of Australia
9.50%, 8/15/03 20,000 15,398,922
Total Australian Securities
(cost $25,603,560) 24,971,136
CANADA-9.6%
DEBT OBLIGATION-3.1%
Business Development
Bank of Canada
6.38%, 5/21/99 US$ 15,000 15,005,385
GOVERNMENT OBLIGATIONS-6.5%
Government of Canada
5.25%, 9/01/03 CA$ 24,000 16,622,222
7.50%, 12/01/03 20,000 15,072,703
------------
31,694,925
Total Canadian Securities
(cost $45,669,158) 46,700,310
DENMARK-5.0%
GOVERNMENT OBLIGATION-5.0%
Kingdom of Denmark
9.00%, 11/15/00 (a)
(cost $27,261,917) DKK 158,000 24,396,663
FRANCE-5.5%
GOVERNMENT OBLIGATIONS-5.5%
Government of France
4.50%, 7/12/03 (a) EUR 4,726 5,259,806
7.75%, 4/12/00 (a) 19,513 21,594,223
Total French Securities
(cost $28,348,967) 26,854,029
GERMANY-15.5%
DEBT OBLIGATIONS-7.1%
Bayerische Landesbank
Girozentrale
5.75%, 2/28/01 (a) US$ 5,000 5,016,650
Bayerische Vereinsbank
Finansiering
5.25%, 5/17/01 (a) EUR 3,784 4,183,008
Bremer Landesbank
6.38%, 12/29/99 US$ 19,500 19,549,881
Deutsche Hypothekenbank
5.75%, 10/02/01 (a) EUR 5,113 5,747,241
------------
34,496,780
GOVERNMENT OBLIGATIONS-8.4%
Government of Germany
8.00%, 7/22/02 (a) 4,346 5,289,190
8.25%, 9/20/01 30,166 35,804,937
------------
41,094,127
Total German Securities
(cost $82,293,668) 75,590,907
ITALY-13.0%
GOVERNMENT OBLIGATIONS-13.0%
Republic of Italy
6.00%, 2/15/00 (a) 5,371 5,819,606
6.25%, 5/15/02 (a) 7,437 8,591,392
12.00%, 9/01/01 38,734 49,100,803
Total Italian Securities
(cost $70,677,662) 63,511,801
MEXICO-4.7%
GOVERNMENT OBLIGATIONS-4.7%
Mexican Treasury Bills
20.33%, 2/10/00 (b) MXP 60,741 5,587,678
21.93%, 6/03/99 (a)(b) 89,121 9,471,476
24.98%, 9/09/99 (b) 7,340 737,203
25.73%, 3/09/00 (b) 76,367 6,913,569
Total Mexican Securities
(cost $22,113,338) 22,709,926
NEW ZEALAND-7.6%
DEBT OBLIGATION-4.7%
International Bank for
Reconstruction &
Development
7.00%, 9/18/00 NZ$ 39,600 22,656,829
5
PORTFOLIO OF INVESTMENTS (CONTINUED) ALLIANCE MULTI-MARKET STRATEGY TRUST
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) U.S. $ VALUE
- -------------------------------------------------------------------------
GOVERNMENT OBLIGATION-2.9%
Government of New Zealand
6.50%, 2/15/00 NZ$ 25,060 $ 14,302,792
Total New Zealand Securities
(cost $41,263,537) 36,959,621
NORWAY-1.0%
GOVERNMENT OBLIGATION-1.0%
Kingdom of Norway
7.00%, 5/31/01 (a)
(cost $6,198,983) NOK 38,000 5,082,089
SWEDEN-6.2%
GOVERNMENT OBLIGATIONS-6.2%
Kingdom of Sweden
10.25%, 5/05/03 (a) SEK 34,000 5,062,267
13.00%, 6/15/01 175,000 24,925,816
Total Swedish Securities
(cost $31,918,386) 29,988,083
UNITED KINGDOM-10.8%
DEBT OBLIGATIONS-8.3%
Abbey National Treasury
6.50%, 3/05/04 GBP 12,000 19,920,999
LB Bad-Wuertt Capital Markets
6.50%, 2/25/02 US$ 20,000 20,515,580
------------
40,436,579
GOVERNMENT OBLIGATION-2.5%
United Kingdom Treasury Gilts
7.00%, 6/07/02 GBP 7,000 11,907,661
Total United Kingdom Securities
(cost $53,285,774) 52,344,240
UNITED STATES-13.7%
DEBT OBLIGATION-0.8%
Morgan Guaranty Trust Co.
6.38%, 3/26/01 (a) US$ 4,000 4,040,612
GOVERNMENT AGENCY OBLIGATIONS-9.3%
Federal Home Loan Bank
5.50%, 8/13/01 20,000 20,057,680
FNMA Global
7.00%, 9/26/00 NZ$ 36,000 20,647,526
7.25%, 6/20/02 (a) 7,850 4,585,847
------------
45,291,053
GOVERNMENT OBLIGATION-1.7%
U.S. Treasury Bill
Zero coupon, 6/24/99 US$ 8,250 8,198,042
TIME DEPOSITS-1.9%
Dresdner Bank
4.88%, 5/03/99 4,600 4,600,000
Wachovia Bank
4.70%, 5/03/99 4,500 4,500,000
------------
9,100,000
Total United States Securities
(cost $69,415,555) 66,629,707
TOTAL INVESTMENTS-97.7%
(cost $504,050,505) 475,738,512
Other assets less liabilities-2.3% 11,021,684
NET ASSETS-100% $ 486,760,196
(a) Securities, or portion thereof, with an aggregate market value of
$98,511,751 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.
6
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1999 (UNAUDITED) ALLIANCE MULTI-MARKET STRATEGY TRUST
_______________________________________________________________________________
ASSETS
Investments in securities, at value (cost $504,050,505) $ 475,738,512
Cash (cost $25,499) 25,698
Interest receivable 12,170,055
Receivable for investment securities sold 9,501,260
Unrealized appreciation of forward exchange currency
contracts 890,625
Receivable for capital stock sold 262,014
Total assets 498,588,164
LIABILITIES
Payable for investment securities purchased 9,100,000
Dividend payable 1,258,260
Payable for capital stock redeemed 774,053
Advisory fee payable 258,202
Distribution fee payable 153,999
Accrued expenses and other liabilities 283,454
Total liabilities 11,827,968
NET ASSETS $ 486,760,196
COMPOSITION OF NET ASSETS
Capital stock, at par $ 74,558
Additional paid-in capital 540,119,226
Distributions in excess of net investment income (9,129,300)
Accumulated net realized loss on investments and foreign
currency transactions (16,520,842)
Net unrealized depreciation of investments and foreign
currency denominated assets and liabilities (27,783,446)
$ 486,760,196
CALCULATION OF MAXIMUM OFFERING PRICE
CLASS A SHARES
Net asset value and redemption price per share
($445,903,912/68,318,595 shares of capital stock issued
and outstanding) $6.53
Sales Charge--4.25% of public offering price .29
Maximum offering price $6.82
CLASS B SHARES
Net asset value and offering price per share
($21,185,660/3,234,604 shares of capital stock issued
and outstanding) $6.55
CLASS C SHARES
Net asset value and offering price per share
($19,670,624/3,004,385 shares of capital stock issued
and outstanding) $6.55
See notes to financial statements.
7
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 1999 (UNAUDITED)
ALLIANCE MULTI-MARKET STRATEGY TRUST
_______________________________________________________________________________
INVESTMENT INCOME
Interest $ 17,990,763
EXPENSES
Advisory fee $ 1,431,975
Distribution fee - Class A 653,655
Distribution fee - Class B 108,469
Distribution fee - Class C 99,446
Transfer agency 645,889
Custodian 229,859
Audit and legal 61,095
Administrative 58,364
Registration 26,396
Directors' fees 13,749
Printing 3,408
Miscellaneous 26,090
Total expenses 3,358,395
Less: expense offset arrangement (See Note B) (31,124)
Net expenses 3,327,271
Net investment income 14,663,492
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS
Net realized loss on investment transactions (2,359,072)
Net realized gain on foreign currency
transactions 9,282,214
Net change in unrealized appreciation
(depreciation) of:
Investments (25,011,589)
Foreign currency denominated assets and
liabilities 64,394
Net loss on investments and foreign currency
transactions (18,024,053)
NET DECREASE IN NET ASSETS FROM OPERATIONS $ (3,360,561)
See notes to financial statements.
8
STATEMENT OF CHANGES IN NET ASSETS ALLIANCE MULTI-MARKET STRATEGY TRUST
_______________________________________________________________________________
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1999 OCTOBER 31,
(UNAUDITED) 1998
-------------- -------------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income $ 14,663,492 $ 7,210,476
Net realized gain (loss) on investments and
foreign currency transactions 6,923,142 (2,143,630)
Net change in unrealized appreciation
(depreciation) of investments and foreign
currency denominated assets and liabilities (24,947,195) 2,283,328
Net increase (decrease) in net assets from
operations (3,360,561) 7,350,174
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income
Class A (18,863,545) (6,215,407)
Class B (831,364) (912,135)
Class C (770,754) (82,934)
Distributions in excess of net investment
income
Class A -0- (6,230,346)
Class B -0- (914,327)
Class C -0- (83,132)
Tax return of capital
Class A -0- (942,328)
Class B -0- (138,290)
Class C -0- (12,574)
CAPITAL STOCK TRANSACTIONS
Net increase 391,283,573 199,282
Total increase (decrease) 367,457,349 (7,982,017)
NET ASSETS
Beginning of year 119,302,847 127,284,864
End of period $ 486,760,196 $ 119,302,847
See notes to financial statements.
9
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1999 (UNAUDITED) 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 may 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% 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
financial statements have been prepared in conformity with generally accepted
accounting principles which require management to make certain estimates and
assumptions that affect the reported amounts of assets and liabilities in
the financial statements and amounts of income and expenses during the
reporting period. Actual results could differ from those estimates. The
following is a summary of significant accounting policies followed by the Fund.
1. SECURITY VALUATION
Portfolio securities traded on a national securities exchange or on a foreign
securities exchange (other than foreign securities exchanges whose operations
are similar to those of the United States over-the-counter market) are
generally valued at the last reported sale price or, if there was no sale on
such day, the last bid price quoted on such day. If no bid prices are quoted,
then the security is valued at the mean of the bid and asked prices as obtained
on that day from one or more dealers regularly making a market in that
security. Securities traded on the over-the-counter market, securities listed
on a foreign securities exchange whose operations are similar to the United
States over-the-counter market and securities listed on a national securities
exchange whose primary market is believed to be over-the-counter are valued at
the mean of the closing bid and asked prices provided by two or more dealers
regularly making a market in such securities. U.S. government securities and
other debt securities which mature in 60 days or less are valued at amortized
cost unless this method does not represent fair value. Securities for which
market quotations are not readily available are valued at fair value as
determined in good faith by, or in accordance with procedures approved by, the
Board of Directors. Fixed income securities may be valued on the basis of
prices provided by a pricing service when such prices are believed to reflect
the fair market value of such securities.
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 accrued.
Net realized gains or losses 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.
10
ALLIANCE MULTI-MARKET STRATEGY TRUST
_______________________________________________________________________________
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 discounts 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. 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.
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 $58,364 to the Adviser
representing the cost of certain legal and accounting services provided to the
Fund by the Adviser for the six months ended April 30, 1999.
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 $490,746 for the six months ended April 30, 1999.
For the six months ended April 30, 1999, the Fund's expenses were reduced by
$31,124 under an expense offset arrangement with Alliance Fund Services.
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 $8,583 from the sale of Class A shares and $499,
$17,203, and $1,162 in contingent deferred sales charges imposed upon
redemptions by shareholders of Class A, Class B and Class C shares,
respectively, for the six months ended April 30, 1999.
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 $9,902,016 and $743,340 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.
11
NOTES TO FINANCIAL STATEMENTS (CONT.) ALLIANCE MULTI-MARKET STRATEGY TRUST
_______________________________________________________________________________
NOTE D: INVESTMENT TRANSACTIONS
Purchases and sales of investment securities (excluding short-term investments
and U.S. government obligations) aggregated $100,114,164 and $86,082,204,
respectively for the six months ended April 30, 1999. There were purchases of
$42,741,845 and no sales of U.S. government and government agency obligations
for the six months ended April 30, 1999.
At April 30, 1999, the cost of investments for federal income tax purposes was
substantially the same as the cost for financial reporting purposes.
Accordingly, gross unrealized appreciation of investments was $3,042,957 and
gross unrealized depreciation of investments was $31,354,950 resulting in net
unrealized depreciation of $28,311,993 (excluding foreign currency
transactions).
At October 31,1998, the Fund had a capital loss carryforward of $27,690,413 of
which $1,283,783 expires in the year 2000, $4,570,679 expires in the year 2001,
$11,533,613 expires in the year 2002, $10,215,734 expires in the year 2003,
$80,140 expires in the year 2004, and $6,464 expires in the year 2005.
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 on 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 April 30, 1999, the Fund had outstanding forward exchange currency
contracts, as follows:
U.S. $
CONTRACT VALUE ON U.S. $ UNREALIZED
AMOUNT ORIGINATION CURRENT APPRECIATION
(000) DATE VALUE (DEPRECIATION)
-------- ------------ ------------ -------------
FORWARD EXCHANGE CURRENCY
BUY CONTRACTS
Australian Dollars,
settling 5/17/99 5,000 $ 3,155,600 $ 3,308,819 $ 153,219
FORWARD EXCHANGE CURRENCY
SALE CONTRACTS
Australian Dollars,
settling 5/17/99 28,300 18,044,612 18,728,177 (683,565)
British Pounds,
settling 5/12/99 20,247 32,556,929 32,565,481 (8,552)
Canadian Dollars,
settling 5/28/99 47,221 31,691,676 32,389,390 (697,714)
Danish Krona,
settling 5/7/99 160,048 23,279,636 22,752,788 526,848
12
ALLIANCE MULTI-MARKET STRATEGY TRUST
_______________________________________________________________________________
U.S. $
CONTRACT VALUE ON U.S. $ UNREALIZED
AMOUNT ORIGINATION CURRENT APPRECIATION
(000) DATE VALUE (DEPRECIATION)
-------- ------------ ------------ -------------
FORWARD EXCHANGE CURRENCY
SALE CONTRACTS
European Euros,
settling
5/20/99-7/15/99 135,313 $147,780,479 $143,264,212 $ 4,516,267
Japanese Yen,
settling 6/15/99 68,444 577,243 576,394 849
New Zealand Dollars,
settling 5/17/99 110,378 58,766,721 61,830,133 (3,063,412)
Norwegian Krona,
settling 6/8/99 58,418 7,561,222 7,471,845 89,377
Swedish Krona,
settling 5/25/99 256,270 30,508,277 30,450,969 57,308
$ 890,625
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 received 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 received 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, 1999.
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 pay-
13
NOTES TO FINANCIAL STATEMENTS (CONT.) ALLIANCE MULTI-MARKET STRATEGY TRUST
_______________________________________________________________________________
ment 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.
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 April 30,
1999.
NOTE E: CAPITAL STOCK
There are 9,000,000,000 shares of $0.001 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
--------------------------- ------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1999 OCTOBER 31, APRIL 30, 1999 OCTOBER 31,
(UNAUDITED) 1998 (UNAUDITED) 1998
------------ ------------ -------------- --------------
CLASS A
Shares sold 791,361 530,311 $ 6,853,078 $ 3,571,273
Shares issued in
reinvestment of
dividends 1,170,402 449,493 7,680,573 3,054,490
Shares issued in
connection with
the acquisition
of Short-Term
Multi-Market Trust 59,018,291 -0- 406,086,486 -0-
Shares converted
from Class B 571,681 3,186,541 2,107,055 21,941,497
Shares redeemed (7,631,667) (3,289,006) (50,096,463) (22,364,893)
Net increase 53,920,068 877,339 $ 372,630,729 $ 6,202,367
CLASS B
Shares sold 1,077,262 626,552 $ 5,433,480 $ 4,228,522
Shares issued in
reinvestment of
dividends 59,957 97,710 394,820 668,814
Shares issued in
connection with
the acquisition
of Short-Term
Multi-Market Trust 2,774,895 -0- 19,136,136 -0-
Shares converted
to Class A (571,681) (3,186,541) (2,107,055) (21,941,497)
Shares redeemed (1,190,196) (665,735) (7,838,398) (4,572,168)
Net increase
(decrease) 2,150,237 (3,128,014) $ 15,018,983 $ (21,616,329)
14
ALLIANCE MULTI-MARKET STRATEGY TRUST
_______________________________________________________________________________
SHARES AMOUNT
--------------------------- ------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1999 OCTOBER 31, APRIL 30, 1999 OCTOBER 31,
(UNAUDITED) 1998 (UNAUDITED) 1998
------------ ------------ -------------- --------------
CLASS C
Shares sold 143,932 214,001 $ 947,986 $ 1,435,335
Shares issued in
reinvestment of
dividends 63,582 9,006 418,407 61,303
Shares issued in
connection with
the acquisition
of Short-Term
Multi-Market Trust 679,675 -0- 4,680,048 -0-
Shares issued in
connection with
the acquisition
of World Income
Trust -0- 2,285,690 -0- 15,429,617
Shares redeemed (366,088) (194,644) (2,412,580) (1,313,011)
Net increase 521,101 2,314,053 $ 3,633,861 $ 15,613,244
NOTE F: BANK BORROWING
A number of open-end mutual funds managed by the Adviser, including the Fund,
participate in a $750 million revolving credit facility (the "Facility")
intended to provide short-term financing if necessary, subject to certain
restrictions in connection with abnormal redemption activity. Commitment fees
related to the Facility are paid by the participating funds and are included in
miscellaneous expense in the statement of operations. The Fund did not utilize
the Facility during the six months ended April 30, 1999.
NOTE G: ACQUISITION OF SHORT-TERM MULTI-MARKET TRUST
On November 13, 1998 the Fund acquired all of the assets for Alliance
Short-Term Multi-Market Trust pursuant to the plan of reorganization approved
by Short-Term Multi-Market Trust shareholders on November 9, 1998. The
acquisition was accomplished by a tax-free exchange of 62,472,861 shares of the
Fund for 55,807,704 shares of Short-Term Multi-Market Trust on November 13,
1998. The aggregate net assets of the Fund and Short-Term Multi-Market Trust
immediately before the acquisition were $118,348,530 and $413,049,483.
Immediately after the acquisition the combined net assets of the Fund amounted
to $531,398,013.
15
FINANCIAL HIGHLIGHTS ALLIANCE MULTI-MARKET STRATEGY TRUST
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
CLASS A
------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED OCTOBER 31,
APRIL 30, 1999 ---------------------------------------------------------------
(UNAUDITED) 1998 1997 1996 1995 1994
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year $ 6.64 $ 7.11 $ 7.23 $ 6.83 $ 8.04 $ 8.94
INCOME FROM INVESTMENT OPERATIONS
Net investment income .20(a) .44(a) .47(a) .59(a) .77(a) .85
Net realized and unrealized gain (loss)
on investments and foreign currency
transactions (.02) .02 .08 .48 (1.31) (1.08)
Net increase (decrease) in net asset
value from operations .18 .46 .55 1.07 (.54) (.23)
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.29) (.44) (.47) (.67) -0- (.09)
Distributions in excess of net investment
income -0- (.42) (.20) -0- -0- -0-
Tax return of capital -0- (.07) -0- -0- (.67) (.58)
Total dividends and distributions (.29) (.93) (.67) (.67) (.67) (.67)
Net asset value, end of period $ 6.53 $ 6.64 $ 7.11 $ 7.23 $ 6.83 $ 8.04
TOTAL RETURN
Total investment return based on net
asset value (b) 2.70% 6.90% 7.82% 16.37% (6.47)% (2.64)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $445,904 $95,568 $96,133 $68,776 $76,837 $52,385
Ratio to average net assets of:
Expenses 1.34%(c)(d) 1.74%(c) 1.58%(c) 1.64% 1.60% 1.41%
Expenses, excluding interest expense 1.34%(d) 1.74% 1.58% 1.60%(e) 1.55%(e) 1.30%(e)
Net investment income 6.21%(d) 6.46% 6.50% 8.40% 8.56% 7.17%
Portfolio turnover rate 46% 24% 173% 215% 400% 605%
</TABLE>
See footnote summary on page 18.
16
ALLIANCE MULTI-MARKET STRATEGY TRUST
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
CLASS B
------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED OCTOBER 31,
APRIL 30, 1999 ---------------------------------------------------------------
(UNAUDITED) 1998 1997 1996 1995 1994
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year $ 6.66 $ 7.11 $ 7.23 $ 6.83 $ 8.04 $ 8.94
INCOME FROM INVESTMENT OPERATIONS
Net investment income .18(a) .36(a) .42(a) .53(a) .44(a) .88
Net realized and unrealized gain (loss)
on investments and foreign currency
transactions (.03) .05 .06 .47 (1.05) (1.18)
Net increase (decrease) in net asset
value from operations .15 .41 .48 1.00 (.61) (.30)
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.26) (.36) (.42) (.60) -0- (.08)
Distributions in excess of net investment
income -0- (.43) (.18) -0- -0- -0-
Tax return of capital -0- (.07) -0- -0- (.60) (.52)
Total dividends and distributions (.26) (.86) (.60) (.60) (.60) (.60)
Net asset value, end of period $ 6.55 $ 6.66 $ 7.11 $ 7.23 $ 6.83 $ 8.04
TOTAL RETURN
Total investment return based on net
asset value (b) 2.21% 6.24% 6.90% 15.35% (7.31)% (3.35)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $21,186 $7,217 $29,949 $88,427 $116,551 $233,896
Ratio to average net assets of:
Expenses 2.05%(c)(d) 2.41%(c) 2.29%(c) 2.35% 2.29% 2.11%
Expenses, excluding interest expense 2.05%(d) 2.41% 2.29% 2.31%(e) 2.22%(e) 2.01%(e)
Net investment income 5.45%(d) 5.64% 5.79% 7.69% 7.53% 6.44%
Portfolio turnover rate 46% 24% 173% 215% 400% 605%
</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
------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED OCTOBER 31,
APRIL 30, 1999 ---------------------------------------------------------------
(UNAUDITED) 1998 1997 1996 1995 1994
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year $ 6.65 $ 7.11 $ 7.23 $ 6.83 $ 8.04 $ 8.94
INCOME FROM INVESTMENT OPERATIONS
Net investment income .18(a) .25(a) .42(a) .54(a) .44(a) .46
Net realized and unrealized gain (loss)
on investments and foreign currency
transactions (.02) .16 .07 .47 (1.04) (.75)
Net increase (decrease) in net asset
value from operations .16 .41 .49 1.01 (.60) (.29)
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.26) (.41) (.42) (.61) -0- (.09)
Distributions in excess of net investment
income -0- (.42) (.19) -0- -0- -0-
Tax return of capital -0- (.04) -0- -0- (.61) (.52)
Total dividends and distributions (.26) (.87) (.61) (.61) (.61) (.61)
Net asset value, end of period $ 6.55 $ 6.65 $ 7.11 $ 7.23 $ 6.83 $ 8.04
TOTAL RETURN
Total investment return based on net
asset value (b) 2.37% 6.10% 6.92% 15.36% (7.29)% (3.34)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $19,671 $16,518 $1,203 $1,076 $786 $1,252
Ratio to average net assets of:
Expenses 2.04%(c)(d) 2.61%(c) 2.28%(c) 2.34% 2.29% 2.08%
Expenses, excluding expense 2.04%(d) 2.61% 2.28% 2.30%(e) 2.24%(e) 1.99%(e)
Net investment income 5.50%(d) 5.28% 5.80% 7.62% 7.55% 6.10%
Portfolio turnover rate 46% 24% 173% 215% 400% 605%
</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 less than
one year is not annualized.
(c) Ratios reflect expenses grossed up for expense offset arrangement with the
Transfer Agent. For the periods shown below, the net expense ratios were as
follows:
SIX MONTHS
ENDED YEAR ENDED OCTOBER 31,
APRIL 30, 1999 ------------------------
(UNAUDITED) 1998 1997
----------- ----------- -----------
Class A 1.33% 1.73% 1.57%
Class B 2.04% 2.40% 2.28%
Class C 2.03% 2.60% 2.27%
(d) Annualized.
(e) Interest expense includes commitment fees paid.
18
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 LLP
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.
19
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.
ASTSR
