Letter To Shareholders Alliance Premier Growth Fund
January 5, 1995
Dear Shareholder:
During Alliance Premier Growth Fund's fiscal year ended November 30, 1994,
we continued to employ its investment strategy of concentrating on 35-40 growth
stocks. We look for companies that we believe will exhibit rising earnings over
the next few years and which are trading at a reasonable price. But it has
admittedly been a frustrating year for the Fund.
As currently constituted, the portfolio has a price-to-earnings multiple of
12x based on our 1995 earnings estimates. This compares to 13.5x for the
market overall. We expect the companies currently held to have a weighted
earnings growth of close to 20% in 1995. The frustration has largely been
because the Fund has held many of these companies during 1994 and performance
of these stocks has been flat, or has even declined, while their earnings
have in most cases met or exceeded expectations.
MARKET ENVIRONMENT
Given the internal cost cutting of U.S. companies and the growth that we
foresee for the U.S. in 1995--a growth that we expect will extend to many
other countries in the world--we find current values compelling. Patience is
said to have its own reward and we maintain our conviction that large cap
growth stocks will provide superior returns over time.
The market has had only one focus in 1994, namely that the economic recovery
would translate into higher inflation and higher interest rates. From a
longer-term perspective, however, the Federal Reserve's action should be good
for the sustainability and quality of U.S. economic performance. Stocks will
show their best returns when viewed over a several-year period, and extended
moderate growth is exactly what the Federal Reserve action is seeking to
achieve. It would be naive to assume no cyclicality in the coming years, but
volatility of economic performance and profits should be more muted than in
the past. Accordingly, we believe a higher price earnings multiple than 12x
is justified.
INVESTMENT RESULTS
For the twelve months ended November 30, 1994, Alliance Premier Growth Fund
had total returns of -3.14% (Class A), -3.67% (Class B) and -3.58% (Class C),
based on the net asset value. Over the same period, the unmanaged S&P 500
Index returned +1.07% and the unmanaged Russell 1000 Growth Index, described
on page 3, returned +0.77%. Additional investment results for your Fund
appear on page 2.
We appreciate your investment in Alliance Premier Growth Fund and look
forward to reporting its progress to you in the coming months.
Sincerely,
(Signature of John D. Carifa)
John D. Carifa
Chairman and President
(Signature of Alfred Harrison)
Alfred Harrison
Executive Vice President
<PAGE>
Investment Results Alliance Premier Growth Fund
Average Annual Total Return as of November 30, 1994
--------------------
CLASS A SHARES
--------------------
<TABLE>
<CAPTION>
Without With
Sales Charge Sales Charge
-------------- ----------------
<S> <C> <C>
* One Year -3.14% -7.24%
* Since Inception* +6.31 +4.22
--------------------
CLASS B SHARES
--------------------
Without With
Sales Charge Sales Charge
-------------- ----------------
* One Year -3.67% -7.52%
* Since Inception* +5.76 +4.89
--------------------
CLASS C SHARES
--------------------
* One Year -3.58%
* Since Inception* +4.85
</TABLE>
The average annual total returns reflect investment of dividends and/or
capital gains distributions in additional shares--with and without the effect
of the 4.25% maximum sales charge (Class A) or 4% contingent deferred sales
charge (Class B); Class C shares are not subject to front-end or contingent
deferred sales charges. 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: 9/28/92, Class A and Class B; 5/3/93, Class C.
<PAGE>
Alliance Premier Growth Fund
- - - - --------------------------------------------------------------------------------
ALLIANCE PREMIER GROWTH FUND
GROWTH OF A $10,000 INVESTMENT OVER LIFE OF FUND:
9/30/92 TO 11/30/94
[The table below was represented as a graph in the printed material.]
Premier Growth Fund S&P 500 Russell 1000 Growth
- - - - ------------------- ------- ----------------------
10000 10000 10000
10460 10500 10675
10497 10950 10675
10660 11010 10675
11120 11290 11529
11292 11550 11529
11580 11120 11529
11216 11160 11299
11772 11710 11299
10938 11480 11299
This chart illustrates the total value of an assumed investment in Alliance
Premier Growth Fund Class A shares (since inception) after deducting the maximum
4.25% sales charge, and with dividends and capital gains reinvested. 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 Standard and Poor's 500-stock index is an unmanaged index that includes
500 U.S. stocks. It is a common measure of the performance of the U.S.
stock market.
The Russell 1000 Growth Stock Index is an unmanaged index representing
performance of the largest U.S. companies by market capitalization.
When comparing Alliance Premier Growth Fund to the two indexes shown above,
you should note that the Fund's performance reflects the maximum sales charge of
4.25% while no such charges are reflected in the performance of the indexes.
<PAGE>
Alliance Premier Growth Fund
Ten Largest Holdings
November 30, 1994
<TABLE>
<CAPTION>
COMPANY VALUE PERCENTAGE OF NET ASSETS
<S> <C> <C>
Intel Corp. (common stock and warrants) $13,238,750 7.3%
Chrysler Corp. 10,898,887 6.0
Norwest Corp. 9,093,675 5.0
United Healthcare Corp. 8,877,750 4.9
Merrill Lynch & Co., Inc. 8,626,000 4.7
General Motors Corp. 7,910,938 4.3
UAL, Inc. 7,711,625 4.2
Federal National Mortgage Assn. 7,212,075 3.9
Compaq Computer Corp. 5,763,112 3.2
Viacom, Inc. (Cl.A, Cl.B and Cl.B rights) 5,571,458 3.0
$84,904,270 46.5%
</TABLE>
Major Portfolio Changes
Six Months Ended November 30, 1994
<TABLE>
<CAPTION>
SHARES*
PURCHASES BOUGHT HOLDINGS 11/30/94
<S> <C> <C>
AMR Corp. 62,900 62,900
AirTouch Communications, Inc. 96,100 96,100
British Airways Plc. (ADR) 63,900 63,900
Caterpillar, Inc. 53,300 53,300
Compaq Computer Corp. 121,800 147,300
Du Pont (E.I.) de Nemours & Co. 90,300 90,300
Federal National Mortgage Assn. 46,800 101,400
General Motors Corp. 112,300 207,500
MBNA Corp. 100,500 100,500
Viacom, Inc. (Cl.A, Cl.B and Cl.B rights) 628,625 628,625
SALES SOLD HOLDINGS 11/30/94
cisco Systems, Inc. 260,800 -0-
Goodyear Tire & Rubber Co. 75,000 -0-
Home Depot, Inc. 185,333 -0-
May Department Stores Co. (The) 81,900 -0-
McCaw Cellular Communications, Inc. Cl.A 69,200 -0-
MCI Communications Corp. 121,800 78,200
Microsoft Corp. 47,400 2,000
Motorola, Inc. 174,500 97,700
Student Loan Market Assn. 149,300 -0-
UAL, Inc. 6,650 80,750
</TABLE>
* Adjusted for stock splits.
<PAGE>
Portfolio of Investments
November 30, 1994 Alliance Premier Growth Fund
<TABLE>
<CAPTION>
Company Shares Value
<S> <C> <C>
COMMON STOCKS & OTHER
INVESTMENTS--99.6%
CONSUMER PRODUCTS
& SERVICES--42.0%
AIRLINES--10.9%
AMR Corp.* 62,900 $ 3,192,175
British Airways Plc. (ADR) 63,900 3,841,987
KLM Royal Dutch Air* 25,000 615,625
Northwest Airlines Corp.Cl.A* 83,600 1,389,850
Southwest Airlines Co. 152,900 3,230,013
UAL, Inc.* 80,750 7,711,625
------------
19,981,275
------------
AUTO & RELATED--12.0%
Chrysler Corp. 225,300 10,898,887
Ford Motor Co. 116,600 3,162,775
General Motors Corp. 207,500 7,910,938
------------
21,972,600
------------
BROADCASTING &
CABLE--8.3%
AirTouch
Communications, Inc.* 96,100 2,606,712
Comcast Corp.
Cl. A (SPL) 140,400 2,228,850
Tele-Communications,
Inc. Cl.A* 201,200 4,753,350
Viacom, Inc.
Cl.A* 9,960 397,155
Cl.B* 114,765 4,418,453
Cl.B rights, 9/29/95* 503,900 755,850
------------
15,160,370
------------
DRUGS, HOSPITAL SUPPLIES
& MEDICAL SERVICES--6.9%
Columbia/HCA
Healthcare Corp. 31,100 1,177,912
United Healthcare Corp. 186,900 8,877,750
U.S. Healthcare, Inc. 54,900 2,456,775
------------
12,512,437
------------
ENTERTAINMENT &
LEISURE TIME--0.9%
Mirage Resorts, Inc.* 85,300 $ 1,684,675
------------
RETAILING--3.0%
Best Buy Co., Inc. 56,100 2,475,413
Kohl's Corp.* 56,800 2,449,500
Wal-Mart Stores, Inc. 20,000 462,500
------------
5,387,413
------------
76,698,770
------------
FINANCIAL SERVICES--30.1%
BANKING & CREDIT--12.0%
BankAmerica Corp. 29,200 1,197,200
Citicorp 85,000 3,538,125
First Bank Systems, Inc. 149,000 4,954,250
NationsBank Corp. 69,200 3,105,350
Norwest Corp. 418,100 9,093,675
------------
21,888,600
------------
BROKERAGE & MONEY
MANAGEMENT--6.6%
Merrill Lynch & Co., Inc. 227,000 8,626,000
Morgan Stanley Group, Inc. 56,000 3,311,000
------------
11,937,000
------------
INSURANCE--5.2%
American International
Group, Inc. 30,700 2,812,887
Progressive Corp. (Ohio) 80,400 2,673,300
Travelers Corp. 123,745 4,068,117
------------
9,554,304
------------
OTHER--6.3%
Federal Home Loan
Mortgage Corp. 39,500 1,970,063
Federal National
Mortgage Assn. 101,400 7,212,075
MBNA Corp. 100,500 2,374,313
------------
11,556,451
------------
54,936,355
------------
<PAGE>
Portfolio of Investments 9continued) Alliance Premier Growth Fund
TECHNOLOGY--13.5%
COMMUNICATION
EQUIPMENT--3.0%
Motorola, Inc. 97,700 $ 5,507,838
------------
COMPUTER
HARDWARE--3.2%
Compaq Computer Corp.* 147,300 5,763,112
------------
COMPUTER SOFTWARE &
SERVICES--0.1%
Microsoft Corp.* 2,000 125,750
------------
SEMI-CONDUCTORS & RELATED--7.2%
Intel Corp. 70,000 4,418,750
warrants 3/16/98* 630,000 8,820,000
------------
13,238,750
------------
24,635,450
------------
BASIC INDUSTRIES--10.3%
CHEMICALS--3.6%
Du Pont (E.I.) de Nemours
& Co. 90,300 4,864,912
Monsanto Co. 13,700 986,400
Morton International, Inc. 23,500 646,250
------------
6,497,562
------------
METALS & MINING--3.3%
Bethlehem Steel Corp.* 235,200 4,174,800
LTV Corp.* 123,900 1,951,425
------------
6,126,225
------------
PAPER & FOREST
PRODUCTS--1.2%
Georgia-Pacific Corp. 31,800 2,273,700
------------
Shares or
Principal
Company Amount
(000) Value
SURFACE
TRANSPORTATION--2.2%
Conrail, Inc. 62,700 $ 3,260,400
Southern Pacific Rail Corp.* 40,000 730,000
------------
3,990,400
------------
18,887,887
------------
CAPITAL GOODS--2.2%
MACHINERY--2.2%
Caterpillar, Inc. 53,300 2,878,200
Deere & Co. 17,800 1,143,650
------------
4,021,850
------------
UTILITIES--1.5%
TELEPHONE--1.5%
MCI Communications Corp. 78,200 1,524,900
Telefonos de Mexico S.A. de cv.
Series L (ADS) 21,800 1,155,400
------------
2,680,300
------------
Total Common Stocks & Other
Investments
(cost $183,190,360) 181,860,612
------------
COMMERCIAL PAPER--0.3%
American Express Credit Corp.
5.65%, 12/01/94
(amortized cost $464,000) $464 464,000
------------
TOTAL INVESTMENTS--99.9%
(cost $183,654,360) 182,324,612
Other assets less liabilities--0.1% 141,464
------------
NET ASSETS--100% $182,466,076
============
</TABLE>
- - - - ------------------------------------
* Non-income producing.
Glossary of Terms:
ADR-American depository receipt.
ADS-American depository security.
See notes to financial statements.
<PAGE>
Statement Of Assets And Liabilities
November 30, 1994 Alliance Premier Growth Fund
<TABLE>
<CAPTION>
ASSETS
<S> <C>
Investments in securities, at value (cost $183,654,360) $182,324,612
Cash 898
Receivable for investment securities sold 2,794,896
Dividends receivable 352,503
Receivable for capital stock sold 201,632
Deferred organization expenses 176,366
Other assets 3,271
--------------
Total assets 185,854,178
--------------
LIABILITIES
Payable for investment securities purchased 2,462,873
Payable for capital stock redeemed 461,806
Advisory fee payable 153,812
Distribution fee payable 138,811
Accrued expenses 170,800
--------------
Total liabilities 3,388,102
--------------
NET ASSETS $182,466,076
==============
COMPOSITION OF NET ASSETS
Capital stock, at par $ 16,125
Additional paid-in capital 173,390,715
Accumulated net realized gain 10,388,984
Net unrealized depreciation of investments (1,329,748)
--------------
$182,466,076
==============
CALCULATION OF MAXIMUM OFFERING PRICE
Class A Shares
Net asset value and redemption price per share
($35,146,435 / 3,080,077 shares of capital stock issued and
outstanding) $11.41
Sales charge--4.25% of public offering price .51
--------------
Maximum offering price $11.92
==============
Class B Shares
Net asset value and offering price per share
($139,988,084 / 12,396,234 shares of capital stock issued and
outstanding) $11.29
==============
Class C Shares
Net asset value, redemption and offering price per share
($7,331,557 / 648,653 shares of capital stock issued and outstanding) $11.30
==============
</TABLE>
- - - - ----------------------------------
See notes to financial statements.
<PAGE>
November 30, 1994 Alliance Premier Growth Fund
Statement Of Operations
<TABLE>
<CAPTION>
INVESTMENT INCOME
<S> <C> <C>
Dividends $2,357,758
Interest 169,768 $ 2,527,526
----------------
EXPENSES
Advisory fee 1,960,567
Distribution fee-Class A 194,598
Distribution fee-Class B 1,507,573
Distribution fee-Class C 63,799
Transfer agency 408,205
Administrative 165,446
Printing 78,358
Registration 67,301
Amortization of organization expenses 64,240
Custodian 39,507
Audit and legal 33,642
Directors' fees 27,396
Taxes 12,585
Miscellaneous 26,378
----------------
Total expenses 4,649,595
--------------
Net investment loss (2,122,069)
--------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on investments 14,717,095
Net change in unrealized appreciation of investments (19,665,055)
--------------
Net loss on investments (4,947,960)
--------------
NET DECREASE IN NET ASSETS FROM OPERATIONS $ (7,070,029)
==============
</TABLE>
Statement Of Changes In Net Assets
- - - - ----------------------------------
<TABLE>
<CAPTION>
Year Ended Year Ended
November 30, November 30,
1994 1993
--------------- -----------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment loss $ (2,122,069) $ (1,431,623)
Net realized gain (loss) on investments 14,717,095 (3,659,878)
Net change in unrealized appreciation of investments (19,665,055) 17,127,884
------------- ---------------
Net increase (decrease) in net assets from operations (7,070,029) 12,036,383
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income
Class A -0- (7,345)
Class B -0- (5,516)
CAPITAL STOCK TRANSACTIONS
Net increase (decrease) (6,378,068) 159,056,322
------------- ---------------
Total increase (decrease) (13,448,097) 171,079,844
NET ASSETS
Beginning of year 195,914,173 24,834,329
------------- ---------------
End of year $182,466,076 $195,914,173
============= ===============
</TABLE>
- - - - ----------------------------------
See notes to financial statements.
<PAGE>
Notes to Financial Statements.
November 30, 1994 Alliance Premier Growth Fund
NOTE A: Significant Accounting Policies
Alliance Premier Growth Fund, Inc. (the "Fund"), organized as a Maryland
corporation on July 9, 1992, is registered under the Investment Company Act
of 1940 as a non-diversified, open- end management investment company. On
February 23, 1993, the creation of a third class of shares, Class C shares,
was approved by the Board of Directors. 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%. Class B shares are sold with a contingent deferred sales charge
which declines from 4% 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 sold
without an initial or contingent deferred sales charge. All three classes of
shares have identical voting, dividend, liquidation and other rights, except
that each class bears different distribution expenses and has exclusive
voting rights with respect to its distribution plan. Distribution of Class C
shares commenced on May 3, 1993. The following is a summary of significant
accounting policies followed by the Fund.
1. Security Valuation
Securities traded on national securities exchanges are valued at the last
reported sales price, or, if no sale occurred, at the mean of the bid and
asked price at the close of the New York Stock Exchange. Over-the-counter
securities not traded on national securities exchanges are valued at the
closing bid price. Debt securities are valued at the mean of the bid and
asked price except that debt securities maturing within 60 days are valued at
amortized cost which approximates market value. Securities for which current
market quotations are not readily available (including investments which are
subject to limitations as to their sale) are valued at their fair value as
determined in good faith by the Board of Directors.
2. Organization Expenses
Organization expenses of approximately $316,110 have been deferred and are
being amortized on a straight-line basis through September, 1997.
3. Investment Income and Security Transactions
Security transactions are accounted for on the trade date and dividend income
is recorded on the ex-dividend date. Interest income is recorded on the
accrual basis. The Fund amortizes discounts on debt securities owned.
Security gains and losses are determined on the identified cost basis.
4. Taxes
It is the Fund's policy to meet the requirements of the Internal Revenue Code
applicable to regulated investment companies and to distribute all of its
investment company taxable income and net realized gains, if any, to
shareholders. Therefore, no provisions for federal income or excise taxes are
required.
5. Dividends and Distributions
Dividends and distributions to shareholders are recorded on the ex-dividend
date. Income dividends and capital gain distributions are determined in
accordance with income tax regulations, which may differ from generally
accepted accounting principles.
6. Change in Accounting for Distribution in Shareholders
During the year ended November 30, 1994, the Fund adopted Statement of
Position 93-2: Determination, Disclosure, and Financial Statement
Presentation of Income, Capital Gain, and Return of Capital Distributions by
Investment Companies. Accordingly, permanent book and tax basis differences
relating to shareholder distributions have been reclassified to paid-in
capital. As of November 30, 1994, the cumulative effect of such differences
totaling $3,556,194 and $(668,233) was reclassified from accumulated net
investment loss and accumulated net realized gain, respectively, to
additional paid-in capital. Net investment income, net realized gains and net
assets were not affected by this change.
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
1% of the average daily net assets of the Fund. Such fee is accrued daily and
paid monthly.
The Adviser has agreed, under the terms of the investment advisory agreement,
to reimburse the Fund to the extent that its
<PAGE>
Notes to Financial Statements (continued) Alliance Premier Growth Fund
aggregate expenses (exclusive of interest, taxes, brokerage, distribution
fee, and extraordinary expenses) exceed the limits prescribed by any state in
which the Fund's shares are qualified for sale. The adviser believes that the
most restrictive expense ratio limitation imposed by any state is 2.5% of the
first $30 million of its average daily net assets, 2.0% of the next $70
million of its average daily net assets and 1.5% of its average daily net
assets in excess of $100 million. No such reimbursement was required for the
year ended November 30, 1994. Pursuant to the advisory agreement, the Fund
paid $165,446 to the Adviser representing the cost of certain legal and
accounting services provided to the Fund by the Adviser for the year ended
November 30, 1994. 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 $288,880 for the year ended November
30, 1994.
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 $12,670 from the sale of Class A shares and
$249,885 in contingent deferred sales charges imposed upon redemptions by
shareholders of Class B shares for the year ended November 30, 1994.
Brokerage commissions paid on securities transactions for the year ended
November 30, 1994, amounted to $406,313 of which none was paid to brokers
utilizing the services of the Pershing Division of Donaldson, Lufkin &
Jenrette Securities Corp., ("DLJ") an affiliate of the Adviser nor to DLJ
directly.
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 .50 of 1% of the average daily net assets attributable to the
Class A shares and 1% of the average daily net assets attributable to the
Class B and Class C shares. Such fee is 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 $3,230,541 and $165,741, for Class B
and C shares, respectively; such costs may be recovered from the Fund in
future periods so long as the Agreement is in effect. In accordance with the
Agreement, there is no provision for recovery of unreimbursed distribution
costs, incurred by the Distributor, beyond the current fiscal year for Class
A shares. The Agreement also provides that the Adviser may use its own
resources to finance the distribution of the Fund's shares.
NOTE D: Investment Transactions
Purchases and sales of investment securities (excluding short- term
investments) aggregated $188,039,469 and $192,842,685, respectively, for the
year ended November 30, 1994. There were no purchases or sales of U.S.
Government or government agency obligations for the year ended November 30,
1994.
At November 30, 1994 the cost of securities for federal income tax purposes
was $183,884,855. Accordingly, gross unrealized appreciation of investments
was $12,677,014 and gross unrealized depreciation of investments was
$14,237,257 resulting in net unrealized depreciation of $1,560,243.
The Fund fully utilized its capital loss carryover of $3,603,319 to offset
gain realized during the year ended November 30, 1994.
<PAGE>
Alliance Premier Growth Fund
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:
<TABLE>
<CAPTION>
SHARES AMOUNT
------------------------------ ----------------------------------
Year Ended Year Ended Year Ended Year Ended
November 30, November 30, November 30, November 30,
1994 1993 1994 1993
<S> <C> <C> <C> <C>
----------- ----------- ------------ --------------
Class A
Shares sold 724,402 3,652,674 $ 8,578,358 $ 40,531,555
Shares issued in reinvestment
of dividends -0- 589 -0- 6,440
Shares redeemed (1,074,753) (676,339) (12,684,053) (7,648,512)
----------- ----------- ------------ --------------
Net increase (decrease) (350,351) 2,976,924 $ (4,105,695) $ 32,889,483
=========== =========== ============ ==============
Class B
Shares sold 2,561,556 12,731,112 $ 30,140,522 $140,919,208
Shares issued in reinvestmentof
dividends -0- 308 -0- 3,367
Shares redeemed (3,099,737) (1,645,901) (36,204,123) (18,529,889)
----------- ----------- ------------ --------------
Net increase (decrease) (538,181) 11,085,519 $ (6,063,601) $122,392,686
=========== =========== ============ ==============
</TABLE>
<TABLE>
<CAPTION>
SHARES AMOUNT
------------------------------- ---------------------------------
May 3, 1993*
Year Ended to November Year Ended May 3, 1993*
November 30, 30, November 30, to November 30,
1994 1993 1994 1993
------------- -------------- ------------- ----------------
<S> <C> <C> <C> <C>
Class C
Shares sold 541,546 377,593 $ 6,428,560 $4,297,353
Shares redeemed (225,438) (45,048) (2,637,332) (523,200)
----------- ------------ ----------- --------------
Net increase 316,108 332,545 $ 3,791,228 $3,774,153
=========== ============ =========== ==============
</TABLE>
*Commencement of distribution.
<PAGE>
Financial Highlights Alliance Premier Growth Fund
- - - - --Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
<TABLE>
<CAPTION>
Class A Class B
------------------------------------------- ---------------------------------------------
September 28,
Year Ended September 28, 1992* Year Ended 1992*
--------------------
November 30, to November 30, to
-------------------- ------------------------
1994 1993 November 30, 1992 1994 1993 November 30, 1992
------- --------- ------------------- ---------- ---------- -----------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period $ 11.78 $ 10.79 $10.00 $ 11.72 $ 10.79 $ 10.00
------ ------- ------------------ -------- -------- ---------------
Income From Investment Operations
- - - - ---------------------------------
Net investment income (loss) (.09) (.05) .01 (.15) (.10) -0-
Net realized and unrealized gain
(loss) on investments (.28) 1.05 .78 (.28) 1.03 .79
------ ------- ------------------ -------- -------- ---------------
Net increase (decrease) in net
asset value from operations (.37) 1.00 .79 (.43) .93 .79
------ ------- ------------------ -------- -------- ---------------
Less: Distributions
- - - - ---------------------------------
Dividends from net
investment income -0- (.01) -0- -0- -0- -0-
------ ------- ------------------ -------- -------- ---------------
Net asset value, end of period $ 11.41 $ 11.78 $10.79 $ 11.29 $ 11.72 $ 10.79
====== ======= ================== ======== ======== ===============
Total Return
- - - - ---------------------------------
Total investment return based on
net asset value (a) (3.14)% 9.26% 7.90% (3.67)% 8.64% 7.90%
====== ======= ================== ======== ======== ===============
Ratios/Supplemental Data
- - - - ---------------------------------
Net assets, end of period (000's
omitted) $35,146 $40,415 $4,893 $139,988 $151,600 $19,941
Ratio of expenses to average net
assets 1.96 % 2.18 % 2.17%(b)(c) 2.47 % 2.70 % 2.68%(b)(c)
Ratio of net investment income
(loss) to average net assets (.67)% (.61)% .91%(b)(c) (1.19)% (1.14)% .35%(b)(c)
Portfolio turnover rate 98 % 68 % -0-% 98 % 68 % -0-%
</TABLE>
- - - - ------------------------------------------
See footnote summary on page 13.
<PAGE>
Alliance Premier Growth Fund
<TABLE>
<CAPTION>
Class C
------------------------------------
Year Ended May 3, 1993**
November 30, to
1994 November 30, 1993
------------- -------------------
<S> <C> <C>
Net asset value, beginning of period $11.72 $10.48
-------- -------------
Income from Investment Operations
- - - - ------------------------------------------------------
Net investment loss (.09) (.05)
Net realized and unrealized gain (loss) on investments (.33) 1.29
-------- -------------
Net increase (decrease) in net asset value from
operations (.42) 1.24
-------- -------------
Net asset value, end of period $11.30 $11.72
======== =============
Total Return
- - - - ------------------------------------------------------
Total investment return based on
net asset value (a) (3.58)% 11.83%
======== =============
Ratios/Supplemental Data
- - - - ------------------------------------------------------
Net assets, end of period
(000's omitted) $7,332 $3,899
Ratio of expenses to average net assets 2.47% 2.79%(c)
Ratio of net investment loss
to average net assets (1.16)% (1.35)%(c)
Portfolio turnover rate 98% 68%
</TABLE>
- - - - --------------------------------------------
*Commencement of operations.
**Commencement of distribution.
(a) Total investment return is calculated assuming an initial investment
made at the net asset value at the beginning of the period, reinvestment of all
dividends and distributions at net asset value during the period, and redemption
on the last day of the period. Initial sales charge or contingent deferred sales
charge is not reflected in the calculation of total investment return. Total
investment return calculated for a period of less than one year is not
annualized.
(b) If the Fund had borne all expenses, the expense ratios would
have been 3.33% and 3.78% for Class A and Class B shares, respectively. The net
investment income ratios would have been .25% and .75%, for Class A and Class B,
respectively.
(c) Annualized.
<PAGE>
Report Of Independent Accountants Alliance Premier Growth Fund
To the Board of Directors and Shareholders of
Alliance Premier Growth Fund, Inc.
In our opinion, the accompanying statement of assets and liabilities,
including the portfolio of investments, and the related statements of
operations and of changes in net assets and the financial highlights present
fairly, in all material respects, the financial position of Alliance Premier
Growth Fund, Inc. (the "Fund") at November 30, 1994, 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 the
two years then ended and for the period September 28, 1992 (commencement of
operations) to November 30, 1992, in conformity with generally accepted
accounting principles. These financial statements and financial highlights
(hereafter referred to as "financial statements") are the responsibility of
the Fund's management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
financial statements in accordance with generally accepted auditing standards
which require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management,
and evaluating the overall financial statement presentation. We believe that
our audits, which included confirmation of securities at November 30, 1994 by
correspondence with the custodian and brokers, and the application of
alternative auditing procedures where confirmations from brokers were not
received, provide a reasonable basis for the opinion expressed above.
PRICE WATERHOUSE LLP
New York, New York
January 20, 1995
<PAGE>
Alliance Premier Growth Fund
Board Of Directors
John D. Carifa, Chairman and President
Ruth Block((1)
David H. Dievler
John H. Dobkin(1) William H. Foulk, Jr.(1)
Dr. James M. Hester(1)
Clifford L. Michel(1)
Robert C. White(1)
Officers
Alfred Harrison, Executive Vice President--Investments
Steven H. Reynolds, Senior Vice President--Investments
James G. Reilly, Vice President
Daniel V. Panker, Vice President
Edmund P. Bergan, Jr., Secretary
Mark D. Gersten, Treasurer & Chief Financial Officer
Patrick J. Farrell, Controller
CUSTODIAN
State Street Bank & Trust Company
225 Franklin Street
Boston, MA 02110
INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP
1177 Avenue of the Americas
New York, NY 10036-2798
PRINCIPAL UNDERWRITER
Alliance Fund Distributors, Inc.
1345 Avenue of the Americas
New York, NY 10105
LEGAL COUNSEL
Seward & Kissel
One Battery Park Plaza
New York, NY 10004
TRANSFER AGENT
Alliance Fund Services, Inc.
P.O. Box 1520
Secaucus, NJ 07096-1520
Toll-free 1-(800) 221-5672
- - - - -----------------------------------
(1) Member of the Audit Committee.
