ALLIANCE MULTI-MARKET STRATEGY TRUST
ANNUAL REPORT
OCTOBER 31, 1999
ALLIANCE CAPITAL
LETTER TO SHAREHOLDERS ALLIANCE MULTI-MARKET STRATEGY TRUST
_______________________________________________________________________________
November 10, 1999
Dear Shareholder:
This report shows the performance, investment strategy and outlook of the
Alliance Multi-Market Strategy Trust (the "Fund"), for the six-month period
ended October 31, 1999. The Fund is designed for investors who seek the highest
level of current income that is available from a portfolio of high-quality,
global, short-term (0-5 year maturity) debt.
INVESTMENT PERFORMANCE
The following table provides your Fund's performance during the six- and
twelve-month periods ended October 31, 1999. For comparison, we have included
the performance for Merrill Lynch 1-5 Year Government Bond Index, which is 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 six-month period ended October 31, 1999, your Fund underperformed
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, which outperformed the global market in aggregate, and our overweighting
of smaller, less liquid European markets, which did not fare well, caused us to
underperform both benchmarks during the six-month period.
However, for the twelve-month period ended October 31, 1999, your Fund
outperformed both the Merrill Lynch 1-5 Year Government Bond Index, which is a
U.S.-only based index, as well as the Lipper Short World Multi-Market Income
Funds Average as a result of our European holdings. European government bonds
outperformed U.S. government bonds over the twelve-month period due to their
strong performance in the first half of the period when European economic
growth slowed and interest rates were cut.
INVESTMENT RESULTS*
Periods Ended October 31, 1999
TOTAL RETURNS
6 MONTHS 12 MONTHS
-------- ----------
ALLIANCE MULTI-MARKET STRATEGY TRUST
Class A 0.24% 2.95%
Class B -0.08% 2.13%
Class C -0.23% 2.13%
MERRILL LYNCH 1-5 YEAR
GOVERNMENT BOND INDEX 1.38% 1.99%
LIPPER SHORT WORLD MULTI-MARKET
INCOME FUNDS AVERAGE 0.85% 2.11%
* THE FUND'S INVESTMENT RESULTS REPRESENT TOTAL RETURNS AND ARE BASED ON THE
NET ASSET VALUE AS OF OCTOBER 31, 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 REFLECTS PERFORMANCE OF 20 FUNDS
DURING BOTH THE SIX- AND TWELVE-MONTH PERIODS ENDED OCTOBER 31, 1999. THE FUNDS
THAT COMPRISE THIS 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 3.
MARKET OVERVIEW
During the six-month period ended October 31, 1999, global economic growth
improved and continued to broaden as Europe, Japan and Asia showed further
signs of strengthening. U.S. economic growth remained strong, while inflation
and unemployment stayed low. With economic activity remaining strong, the U.S.
Federal Reserve adopted a monetary policy tightening bias in May and increased
the Federal Funds rate by 25 basis
1
ALLIANCE MULTI-MARKET STRATEGY TRUST
_______________________________________________________________________________
points in June followed by another 25 basis points in August. (A third increase
in interest rates was announced on November 15, 1999, which was after the close
of the Fund's reporting period.)
Additionally, the central banks of Europe, Australia and New Zealand have all
indicated a tightening bias in response to accelerating global growth. During
the period, a consensus developed among policymakers that growth had responded
sufficiently to the global easing cycle, which began in response to the Asian
economic crisis in 1997-1998, such that inflation, not deflation, became the
greater future risk. In the currency markets, the yen strengthened against the
U.S. dollar, while the euro ended the period where it began, at US$1.05/euro.
INVESTMENT STRATEGY
During the reporting period, we underweighted the U.S. government bond market
to pursue investment opportunities in U.S. high-grade corporate securities. We
consolidated our position in Europe, eliminating our positions in France and
increasing our German holdings. In the dollar bloc, we reduced Australian and
New Zealand government bonds and eliminated our position in Canada. We
continued to opportunistically invest in Japan.
OUTLOOK
Global economic growth continues to gather momentum and broaden in scope. We
expect the U.S. economy to remain strong through year-end and into 2000. Bond
yields should remain in an upward trend as confidence in global growth
solidifies. The risk of tighter monetary policy in the U.S. remains. We expect
that the Federal Reserve will continue to closely monitor U.S. growth patterns
and productivity, with a possible tightening early next year. Positive
inflation fundamentals and gains in productivity should keep long-term interest
rates trading in a range between 6.00% and 6.50%.
We expect the economic environment in Europe and Japan to continue to
strengthen. Europe's improved health should push bond yields and official rates
higher. We expect European growth to increase from 2.0% to 2.7% in 2000 and for
the European Central Bank to raise official interest rates. Japanese yields
will remain caught between the opposing forces of Japan's recovery and the
policy imperative of monetary stimulus.
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.
2
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 OCTOBER 31, 1999
CLASS A SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
------------ ------------
One Year 2.95% -1.36%
Five Years 5.25% 4.33%
Since Inception* 3.91% 3.38%
SEC Yield** 3.46%
CLASS B SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
------------ ------------
One Year 2.13% -0.72%
Five Years 4.40% 4.40%
Since Inception* (a) 3.33% 3.33%
SEC Yield** 2.77%
CLASS C SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
------------ ------------
One Year 2.13% 1.18%
Five Years 4.38% 4.38%
Since Inception* 3.67% 3.67%
SEC Yield** 2.87%
SEC AVERAGE ANNUAL TOTAL RETURNS AS OF THE MOST RECENT QUARTER-END (SEPTEMBER
30, 1999)
CLASS A CLASS B CLASS C
------- ------- -------
1 Year -0.97% -0.20% 1.71%
5 Years 4.62% 4.67% 4.71%
Since Inception* 3.41% 3.36% (a) 3.75%
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
October 31, 1999.
(a) Assumes conversion of Class B shares into Class A shares after six years.
3
ALLIANCE MULTI-MARKET STRATEGY TRUST
_______________________________________________________________________________
ALLIANCE MULTI-MARKET STRATEGY TRUST
GROWTH OF A $10,000 INVESTMENT
5/31/91* TO 10/31/99
$18,000
$16,000
$14,000
$12,000
$10,000
$8,000
MERRILL LYNCH 1-5 YEAR GOVERNMENT BOND INDEX: $17,071
LIPPER SHORT WORLD MULTI-MARKET INCOME FUNDS AVERAGE: $13,464
ALLIANCE MULTI-MARKET STRATEGY TRUST CLASS A: $13,232
5/31/91 10/31/91 10/31/92 10/31/93 10/31/94 10/31/95 10/31/96
10/31/97 10/31/98 10/31/99
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 10/31/99)
as compared to the performance of an appropriate broad-based index and the
Lipper Short World Multi-Market Income Funds Average. 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 1-5 Year Government Bond Index is composed of U.S. government
agency and Treasury securities with maturities of one to five years.
The Lipper Short World Multi-Market Income Funds Average reflects performance
of 8 funds (based on the number of funds in the average from 5/31/91 to
10/31/99). 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.
Alliance Multi-Market Strategy Trust
Merrill Lynch 1-5 Year Government Bond Index
Lipper Short World Multi-Market Income Funds Average
* Closest month-end after the Fund's Class A share inception date of 5/29/91.
4
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1999 ALLIANCE MULTI-MARKET STRATEGY TRUST
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) U.S. $ VALUE
- -------------------------------------------------------------------------
AUSTRALIA-2.0%
DEBT OBLIGATION-2.0%
State Bank of New South Wales
8.63%, 8/20/01(a)
(cost $9,577,815) AUD 13,100 $ 8,655,966
DENMARK-7.9%
GOVERNMENT OBLIGATIONS-7.9%
Kingdom of Denmark
8.00%, 11/15/01 (a) DKK 146,515 22,169,179
8.00%, 5/15/03 (a) 31,500 4,894,230
9.00%, 11/15/00 (a) 49,000 7,277,622
Total Danish Securities
(cost $35,556,297) 34,341,031
GERMANY-28.0%
DEBT OBLIGATIONS-9.6%
Asian Development Bank
Supranational Bank
5.75%, 5/19/03 (a) EUR 16,000 15,660,384
Bayerishe Landesbank Girozentrale
5.75%, 2/28/01 (a) US$ 5,000 4,948,275
DSLBank
5.13%, 1/20/04 (a) 15,000 14,246,865
European Investment Bank
8.00%, 12/03/01 (a) EUR 6,300 6,563,214
------------
41,418,738
GOVERNMENT OBLIGATIONS-18.4%
German Unity Fund
8.00%, 1/21/02 (a) 36,400 41,365,426
Government of Germany
8.00%, 7/22/02 (a) 4,346 4,994,403
8.25%, 9/20/01 (a) 12,000 13,582,133
Suedwestdeutscheland EMTN
6.50%, 2/25/02 (a) US$ 20,000 19,996,020
------------
79,937,982
Total German Securities
(cost $125,067,715) 121,356,720
ITALY-14.9%
GOVERNMENT OBLIGATIONS-14.9%
Republic of Italy
6.25%, 5/15/02 (a) EUR 7,437 8,171,066
8.50%, 4/01/04 (a) 8,500 10,231,680
12.00%, 9/01/01 (a) 38,734 46,183,896
Total Italian Securities
(cost $74,804,870) 64,586,642
MEXICO-3.3%
GOVERNMENT OBLIGATIONS-3.3%
Mexican Treasury Bills
23.25%, 9/07/00 (a)(b) MXN 9,135 802,802
24.38%, 2/10/00 (a)(b) 62,066 6,119,421
24.10%, 3/09/00 (a)(b) 76,367 7,386,556
Total Mexican Securities
(cost $14,097,190) 14,308,779
NETHERLANDS-4.8%
DEBT OBLIGATIONS-4.8%
Deutsche Bank Finance NV
5.75%, 4/13/04 US$ 11,550 11,187,584
Rabobank Nederland
5.625%, 5/10/04 (a) 10,000 9,576,020
Total Dutch Securities
(cost $20,593,328) 20,763,604
NEW ZEALAND-5.8%
DEBT OBLIGATIONS-5.8%
International Bank for
Reconstruction & Development
7.00%, 9/18/00 (a) NZ$ 39,600 20,263,936
7.25%, 4/09/01 (a) 9,850 5,037,902
Total New Zealand Securities
(cost $30,502,684) 25,301,838
SPAIN-3.5%
GOVERNMENT OBLIGATION-3.5%
Government of Spain
8.00%, 5/30/04
(cost $15,705,858) (a) EUR 13,000 15,378,472
5
PORTFOLIO OF INVESTMENTS (CONTINUED) ALLIANCE MULTI-MARKET STRATEGY TRUST
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) U.S. $ VALUE
- -------------------------------------------------------------------------
SWEDEN-8.3%
GOVERNMENT OBLIGATIONS-8.3%
Kingdom of Sweden
10.25%, 5/05/03 (a) SEK 67,500 $ 9,487,596
13.00%, 6/15/01 (a) 195,300 26,781,014
Total Swedish Securities
(cost $38,885,260) 36,268,610
UNITED KINGDOM-7.5%
DEBT OBLIGATIONS-7.1%
Abbey National Treasury
6.50%, 3/05/04 (a) GBP 12,000 19,268,768
European Investment Bank
7.00%, 12/08/03 (a) 7,000 11,576,668
------------
30,845,436
TIME DEPOSITS-0.4%
First National Bank of London
5.20%, 11/01/99 US$ 800 800,000
Republic of London
5.19%, 11/01/99 800 800,000
------------
1,600,000
Total United Kingdom Securities
(cost $33,592,771) 32,445,436
UNITED STATES-10.2%
DEBT OBLIGATIONS-5.0%
General Electric Capital Corp.
5.50%, 4/15/02 (a) US$ 18,050 17,658,568
Morgan Guaranty Trust Co.
6.38%, 3/26/01 (a) 4,180 4,167,385
------------
21,825,953
GOVERNMENT AGENCY OBLIGATIONS-5.2%
FNMA Global
7.00%, 9/26/00 (a) NZ$ 36,000 18,403,511
7.25%, 6/20/02 (a) 7,850 3,989,113
------------
22,392,624
Total United States Securities
(cost $49,994,244) 44,218,577
TOTAL INVESTMENTS-96.2%
(cost $448,378,032) 417,625,675
Other assets less liabilities-3.8% 16,445,929
NET ASSETS-100% $434,071,604
(a) Securities, or portion thereof, with an aggregate market value of
$404,838,091 have been segregated to collateralize forward exchange currency
contracts.
(b) Annualized yield to maturity at purchase date.
Glossary of Terms:
EMTN-Euro Medium Term Note.
FNMA-Federal National Mortgage Association.
See notes to financial statements.
6
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1999 ALLIANCE MULTI-MARKET STRATEGY TRUST
_______________________________________________________________________________
ASSETS
Investments in securities, at value (cost $448,378,032) $ 417,625,675
Cash 44,750
Foreign cash, at value (cost $62,993) 63,220
Interest receivable 14,066,071
Receivable for investment securities sold 12,050,314
Unrealized appreciation of forward exchange currency contracts 3,389,842
Receivable for capital stock sold 460,900
Unrealized appreciation of swap contracts 85,791
Total assets 447,786,563
LIABILITIES
Payable for investment securities purchased 11,345,623
Dividend payable 905,030
Payable for capital stock redeemed 891,914
Advisory fee payable 223,028
Distribution fee payable 133,753
Accrued expenses and other liabilities 215,611
Total liabilities 13,714,959
NET ASSETS $ 434,071,604
COMPOSITION OF NET ASSETS
Capital stock, at par $ 69,012
Additional paid-in capital 496,750,104
Distributions in excess of net investment income (4,625,780)
Accumulated net realized loss on investments and
foreign currency transactions (30,823,577)
Net unrealized depreciation of investments and foreign
currency denominated assets and liabilities (27,298,155)
$ 434,071,604
CALCULATION OF MAXIMUM OFFERING PRICE
CLASS A SHARES
Net asset value and redemption price per share
($396,866,969 / 63,121,128 shares of capital stock
issued and outstanding) $6.29
Sales Charge--4.25% of public offering price .28
Maximum offering price $6.57
CLASS B SHARES
Net asset value and offering price per share
($18,128,999 / 2,869,770 shares of capital stock
issued and outstanding) $6.32
CLASS C SHARES
Net asset value and offering price per share
($19,075,636 / 3,021,083 shares of capital stock
issued and outstanding) $6.31
See notes to financial statements.
7
STATEMENT OF OPERATIONS
YEAR ENDED OCTOBER 31, 1999 ALLIANCE MULTI-MARKET STRATEGY TRUST
_______________________________________________________________________________
INVESTMENT INCOME
Interest $35,745,056
EXPENSES
Advisory fee $ 2,804,295
Distribution fee - Class A 1,281,158
Distribution fee - Class B 206,365
Distribution fee - Class C 197,205
Transfer agency 1,340,730
Custodian 514,218
Printing 270,079
Administrative 148,794
Audit and legal 132,273
Registration 42,337
Directors' fees 25,218
Miscellaneous 39,616
Total expenses 7,002,288
Less: expense offset arrangement
(see Note B) (58,427)
Net expenses 6,943,861
Net investment income 28,801,195
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY
TRANSACTIONS
Net realized loss on investment transactions (7,379,593)
Net realized gain on foreign currency
transactions 351,213
Net change in unrealized appreciation/
depreciation of:
Investments (27,451,952)
Foreign currency denominated assets and
liabilities 2,990,048
Net loss on investments and foreign currency
transactions (31,490,284)
NET DECREASE IN NET ASSETS FROM OPERATIONS $(2,689,089)
See notes to financial statements.
8
STATEMENT OF CHANGES IN NET ASSETS ALLIANCE MULTI-MARKET STRATEGY TRUST
_______________________________________________________________________________
YEAR ENDED YEAR ENDED
OCTOBER 31, OCTOBER 31,
1999 1998
----------- ------------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS
Net investment income $ 28,801,195 $ 7,210,476
Net realized loss on investments and
foreign currency transactions (7,028,380) (2,143,630)
Net change in unrealized appreciation/
depreciation of investments and
foreign currency denominated assets
and liabilities (24,461,904) 2,283,328
Net increase (decrease) in net assets
from operations (2,689,089) 7,350,174
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income
Class A (26,589,935) (6,215,407)
Class B (1,126,713) (912,135)
Class C (1,084,547) (82,934)
Distributions in excess of net
investment income
Class A (1,515,744) (6,230,346)
Class B (70,368) (914,327)
Class C (63,752) (83,132)
Tax return of capital
Class A (7,329,697) (942,328)
Class B (309,706) (138,290)
Class C (301,764) (12,574)
CAPITAL STOCK TRANSACTIONS
Net increase 355,850,072 199,282
Total increase (decrease) 314,768,757 (7,982,017)
NET ASSETS
Beginning of year 119,302,847 127,284,864
End of year $ 434,071,604 $ 119,302,847
See notes to financial statements.
9
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 1999 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
NOTES TO FINANCIAL STATEMENTS (CONT.) 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. During the current fiscal year, permanent differences,
primarily due to foreign currency gains, resulted in a net increase in
accumulated net realized loss on investments and foreign currency transactions
and a corresponding decrease in accumulated distributions in excess of net
investment income and in additional paid-in capital. 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 $148,794 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, 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 $881,776 for the year ended October 31, 1999.
For the year ended October 31, 1999, the Fund's expenses were reduced by
$58,427 under an expense offset arrangement with Alliance Fund Services, Inc.
Alliance Fund Distributors, Inc. (a wholly-owned subsidiary of the Adviser)
serves as the Distributor of the Fund's shares. The Distributor has advised the
Fund that it has received front-end sales charges of $48,435 from the sale of
Class A shares and $989, $27,953, and $2,484 in contingent deferred sales
charges imposed upon redemptions by shareholders of Class A, Class B and Class
C shares, respectively, for the year ended October 31, 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 distribution and servicing fees 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 advised the Fund that it has incurred expenses in excess of the
distribution costs reimbursed by the Fund in the amount of $10,162,026 and
$903,092 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 Agree-
11
ALLIANCE MULTI-MARKET STRATEGY TRUST
_______________________________________________________________________________
ment, 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 $495,668,815 and $435,360,701,
respectively for the year ended October 31, 1999. There were purchases of
$34,477,540 and 54,087,720 sales of U.S. government and government agency
obligations for the year ended October 31, 1999.
At October 31, 1999, the cost of investments for federal income tax purposes
was $448,958,023. Accordingly, gross unrealized appreciation of investments was
$25,578,012 and gross unrealized depreciation of investments was $56,910,360
resulting in net unrealized depreciation of $31,332,348 (excluding foreign
currency transactions).
At October 31,1999, the Fund had a capital loss carryforward of $34,490,015 of
which $1,243,333 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, $6,464 expires in the year 2005, $40,450
expires in the year 2006, and $6,799,602 expires in the year 2007.
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
approximately 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, 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
Japanese Yen,
settling 11/16/99 3,036,179 $ 28,283,292 $ 29,182,869 $ 899,577
FORWARD EXCHANGE CURRENCY
SALE CONTRACTS
Australian Dollar,
settling 12/13/99 15,000 9,777,750 9,575,337 202,413
12
NOTES TO FINANCIAL STATEMENTS (CONT.) 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
British Pound,
settling 11/30/99 29,430 $ 48,567,154 $ 48,371,280 $ 195,874
Canadian Dollars,
settling 11/01/99-12/01/99 1,464 984,165 995,540 (11,375)
Danish Krona,
settling 11/04/99 128,684 18,546,637 18,213,615 333,022
Euro,
settling 11/15/99-12/15/99 138,346 149,639,281 145,937,767 3,701,514
Japanese Yen,
settling 11/16/99 3,036,179 26,603,509 29,182,869 (2,579,360)
New Zealand Dollar,
settling 11/26/99 75,417 38,864,643 38,250,552 614,091
Swedish Krona,
settling 11/15/99 321,061 39,110,151 39,076,065 34,086
-----------
$3,389,842
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 year ended October
31, 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
13
ALLIANCE MULTI-MARKET STRATEGY TRUST
_______________________________________________________________________________
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.
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.
At October 31, 1999, the Fund had an outstanding interest rate swap contract
with the following terms:
<TABLE>
<CAPTION>
RATE TYPE
----------------------------------
SWAP NOTIONAL TERMINATION PAYMENTS MADE PAYMENTS RECEIVED UNREALIZED
COUNTERPARTY AMOUNT DATE BY THE FUND BY THE FUND APPRECIATION
------------- -------- -------------- ---------------- ----------------- -------------
<S> <C> <C> <C> <C> <C>
Morgan GBP 6/25/04 Floating 6 month Fixed--6.33% US $85,791
Guaranty 15,000,000 GBP LIBOR*--BBA
</TABLE>
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
--------------------------- ------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
1999 1998 1999 1998
------------ ------------ -------------- --------------
CLASS A
Shares sold 1,404,924 530,311 $ 10,793,953 $ 3,571,273
Shares issued in
reinvestment of
dividends 2,377,239 449,493 15,386,344 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 835,343 3,186,541 3,783,171 21,941,497
Shares redeemed (14,913,196) (3,289,006) (96,630,679) (22,364,893)
Net increase 48,722,601 877,339 $339,419,275 $ 6,202,367
* LIBOR (London Interbank Offered Rate).
14
NOTES TO FINANCIAL STATEMENTS (CONT.) ALLIANCE MULTI-MARKET STRATEGY TRUST
_______________________________________________________________________________
SHARES AMOUNT
--------------------------- ------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
1999 1998 1999 1998
------------ ------------ -------------- --------------
CLASS B
Shares sold 826,085 626,552 $ 5,382,943 $ 4,228,522
Shares issued in
reinvestment of
dividends 120,637 97,710 783,629 668,814
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 (833,238) (3,186,541) (3,783,171) (21,941,497)
Shares redeemed (1,102,976) (665,735) (8,841,000) (4,572,168)
Net increase
(decrease) 1,785,403 (3,128,014) $12,678,537 $(21,616,329)
CLASS C
Shares sold 383,149 214,001 $ 2,493,985 $ 1,435,335
Shares issued in
reinvestment of
dividends 121,625 9,006 790,360 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 (646,650) (194,644) (4,212,133) (1,313,011)
Net increase 537,799 2,314,053 $ 3,752,260 $ 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 year ended October 31, 1999.
NOTE G: ACQUISITION OF SHORT-TERM MULTI MARKET TRUST, INC.
On November 13, 1998 the Fund acquired all of the assets of Alliance Short-Term
Multi-Market Trust, Inc. ("Short-Term") pursuant to a plan of reorganization
approved by the shareholders of Alliance "Short-Term" 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" on November 13, 1998. The aggregate
net assets of the Fund and "Short-Term" immediately before the acquisition were
$118,348,530 and $413,049,483, respectively. 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 YEAR
<TABLE>
<CAPTION>
CLASS A
----------------------------------------------------------------
YEAR ENDED OCTOBER 31,
----------------------------------------------------------------
1999 1998 1997 1996 1995
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year $ 6.64 $ 7.11 $ 7.23 $ 6.83 $ 8.04
INCOME FROM INVESTMENT OPERATIONS
Net investment income (a) .42 .44 .47 .59 .77
Net realized and unrealized
gain (loss) on investments
and foreign currency transactions (.22) .02 .08 .48 (1.31)
Net increase (decrease) in
net asset value from
operations .20 .46 .55 1.07 (.54)
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment
income (.42) (.44) (.47) (.67) -0-
Distributions in excess of net
investment income (.02) (.42) (.20) -0- -0-
Tax return of capital (.11) (.07) -0- -0- (.67)
Total dividends and distributions (.55) (.93) (.67) (.67) (.67)
Net asset value, end of year $ 6.29 $ 6.64 $ 7.11 $ 7.23 $ 6.83
TOTAL RETURN
Total investment return based on
net asset value (b) 2.95% 6.90% 7.82% 16.37% (6.47)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (000's omitted) $396,867 $95,568 $96,133 $68,776 $76,837
Ratio to average net assets of:
Expenses 1.44%(c) 1.74%(c) 1.58%(c) 1.64% 1.60%
Expenses, excluding interest expense 1.44% 1.74% 1.58% 1.60%(d) 1.55%(d)
Net investment income 6.23% 6.46% 6.50% 8.40% 8.56%
Portfolio turnover rate 124% 240% 173% 215% 400%
</TABLE>
See footnote summary on page 18.
16
FINANCIAL HIGHLIGHTS (CONTINUED) 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,
---------------------------------------------------------------
1999 1998 1997 1996 1995
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year $ 6.66 $ 7.11 $ 7.23 $ 6.83 $ 8.04
INCOME FROM INVESTMENT OPERATIONS
Net investment income (a) .36 .36 .42 .53 .44
Net realized and unrealized gain
(loss) on investments
and foreign currency transactions (.22) .05 .06 .47 (1.05)
Net increase (decrease) in
net asset value from operations .14 .41 .48 1.00 (.61)
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.36) (.36) (.42) (.60) -0-
Distributions in excess of net
investment income (.02) (.43) (.18) -0- -0-
Tax return of capital (.10) (.07) -0- -0- (.60)
Total dividends and distributions (.48) (.86) (.60) (.60) (.60)
Net asset value, end of year $ 6.32 $ 6.66 $ 7.11 $ 7.23 $ 6.83
TOTAL RETURN
Total investment return based on net
asset value (b) 2.13% 6.24% 6.90% 15.35% (7.31)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (000's omitted) $18,129 $7,217 $29,949 $88,427 $116,551
Ratio to average net assets of:
Expenses 2.15%(c) 2.41%(c) 2.29%(c) 2.35% 2.29%
Expenses, excluding interest expense 2.15% 2.41% 2.29% 2.31%(d) 2.22%(d)
Net investment income 5.46% 5.64% 5.79% 7.69% 7.53%
Portfolio turnover rate 124% 240% 173% 215% 400%
</TABLE>
See footnote summary on page 18.
17
ALLIANCE MULTI-MARKET STRATEGY TRUST
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH YEAR
<TABLE>
<CAPTION>
CLASS C
---------------------------------------------------------------
YEAR ENDED OCTOBER 31,
---------------------------------------------------------------
1999 1998 1997 1996 1995
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year $ 6.65 $ 7.11 $ 7.23 $ 6.83 $ 8.04
INCOME FROM INVESTMENT OPERATIONS
Net investment income (a) .36 .25 .42 .54 .44
Net realized and unrealized
gain (loss) on investments and
foreign currency transactions (.22) .16 .07 .47 (1.04)
Net increase (decrease) in
net asset value from
operations .14 .41 .49 1.01 (.60)
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.36) (.41) (.42) (.61) -0-
Distributions in excess of net
investment income (.02) (.42) (.19) -0- -0-
Tax return of capital (.10) (.04) -0- -0- (.61)
Total dividends and distributions (.48) (.87) (.61) (.61) (.61)
Net asset value, end of year $ 6.31 $ 6.65 $ 7.11 $ 7.23 $ 6.83
TOTAL RETURN
Total investment return based on net
asset value (b) 2.13% 6.10% 6.92% 15.36% (7.29)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (000's omitted) $19,076 $16,518 $1,203 $1,076 $786
Ratio to average net assets of:
Expenses 2.15%(c) 2.61%(c) 2.28%(c) 2.34% 2.29%
Expenses, excluding interest expense 2.15% 2.61% 2.28% 2.30%(d) 2.24%(d)
Net investment income 5.50% 5.28% 5.80% 7.62% 7.55%
Portfolio turnover rate 124% 240% 173% 215% 400%
</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.
(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:
YEAR ENDED OCTOBER 31,
----------------------------------
1999 1998 1997
---- ---- ----
Class A 1.42% 1.73% 1.57%
Class B 2.14% 2.40% 2.28%
Class C 2.14% 2.60% 2.27%
(d) Interest expense includes commitment fees paid.
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, 1999, 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 and financial highlights. Our procedures included confirmation of
securities owned as of October 31, 1999, 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, 1999, 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 13, 1999
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 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.
20
THE ALLIANCE FAMILY OF MUTUAL FUNDS
_______________________________________________________________________________
FIXED INCOME
Alliance Bond Fund
U.S. Government Portfolio
Corporate Bond Portfolio
Quality Bond Portfolio
Alliance Global Dollar Government Fund
Alliance Global Strategic Income Trust
Alliance High Yield Fund
Alliance Limited Maturity Government Fund
Alliance Mortgage Securities Income Fund
Alliance Multi-Market Strategy Trust
Alliance North American Government Income Trust
Alliance Short-Term U.S. Government Fund
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 Growth Fund
Alliance Premier Growth Fund
Select Investors Series - Premier Portfolio
GROWTH & INCOME
Alliance Balanced Shares
Alliance Conservative Investors Fund
Alliance Growth & Income Fund
Alliance Growth Investors Fund
Alliance Real Estate Investment Fund
Alliance Utility Income Fund
AGGRESSIVE GROWTH
Alliance Global Small Cap Fund
Alliance Health Care Fund
Alliance Quasar Fund
Alliance Technology Fund
INTERNATIONAL
Alliance All-Asia Investment Fund
Alliance Greater China '97 Fund
Alliance International Fund
Alliance International Premier Growth Fund
Alliance New Europe Fund
Alliance Worldwide Privatization Fund
INSTITUTIONAL
Premier Growth
Quasar
Real Estate Investment
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
Alliance Capital Reserves
Alliance Government Reserves
Alliance Institutional Reserves
Prime Portfolio
Government Portfolio
Tax-Free Portfolio
Treasury Portfolio
Trust Portfolio
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
General Municipal Portfolio
Government 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.
MMSTAR1099
