ALLIANCE PREMIER GROWTH FUND
SEMI-ANNUAL REPORT
MAY 31, 1995
Alliance
Mutual funds without the Mystery.
(cover)
July 10, 1995
Dear Shareholder:
We are pleased to provide you with an update of Alliance Premier Growth Fund's
performance and investment activity during its semi-annual reporting period
ended May 31, 1995. During the six-month period, the Fund provided shareholders
with very favorable investment performance. The following table compares your
Fund's total returns with that of the overall U.S. stock market, represented by
the unmanaged S&P 500-stock Index, and with the Russell 1000 Index, also
unmanaged, which is composed of the 1,000 largest U.S. stocks as measured by
price-to-book ratios.
Six Months Ended May 31, 1995
Total Return Ending NAV
------------ ----------
ALLIANCE PREMIER GROWTH FUND
Class A +19.94% $12.87
Class B +19.70% $12.70
Class C +19.68% $12.71
S&P 500 +19.17%
RUSSELL 1000 +18.41%
The Fund's total returns are based on the net asset values of each class of
shares as of May 31; additional investment results appear on page 3.
MARKET OVERVIEW
Evidence of a substantial slowing in economic activity has emerged over the
last few months as a result of restrictive Federal Reserve policy and a
slowdown in trade. In the months immediately ahead, the slowdown is expected to
continue as businesses attempt to reduce unwanted inventories by trimming
production schedules and employment.
We have reduced our growth expectations to reflect these trends, however, we do
not believe that the economy is headed into a recession. The trade picture
seems to be stabilizing, domestic consumers seem able and willing to spend, and
the Federal Reserve recently trimmed short-term interest rates as inflation
fears have abated. The budget debate, which won't be resolved until September
or October, is important in this regard; and for now we're optimistic that real
progress toward deficit reduction will be made.
Thus, the near-term economic outlook is for slower but steady and extended
growth, coupled with diminished inflation fears. This suggests slightly lower
interest rates and moderately high (16-18x) price earnings rates for common
stocks.
PORTFOLIO STRATEGY
Our concentration on 35 to 40 leading growth stocks has benefited from the
market's recognition that 1994's Federal Reserve policy laid the groundwork for
an extended recovery.
In terms of equity investments, we have been bullish for several reasons: The
general macro environment has been one of moderate growth and moderate
inflation. At the micro level, corporate profits, cash flow and balance sheets
have all improved. From a valuation perspective the U.S. dollar remains low,
placing our assets at an attractive level in world markets. Finally, increased
fiscal conservatism being shown in the political arena is conducive to investor
confidence and should help sustain the price earnings multiple of the market at
current or better levels.
After the market's advance we will be particularly watchful that today's
economic slowdown does not slip into a mild recession (which we do not expect),
and that the stock market's enthusiasm for certain sectors such as technology
is not taken to extreme.
DISCIPLINED INVESTING FOR LONG-TERM GOALS
Because your Fund's primary investment objective is to seek long-term capital
appreciation, we believe that a dollar-cost averaging approach to investing in
its shares may be particularly appropriate. As we've mentioned to you in
previous letters, dollar-cost averaging involves investing the same amount of
money at regular intervals, enabling you to buy more shares when prices decline
or fewer when prices are high. Historically, dollar-cost averaging has resulted
in an overall lower price per share for mutual fund investors, however, it is a
long-term investment strategy and cannot guarantee a profit or remove the risk
of a loss in declining markets.
1
ALLIANCE PREMIER GROWTH FUND
- -------------------------------------------------------------------------------
We appreciate your investment in Alliance Premier Growth Fund and look forward
to updating you on its progress later in the year.
Sincerely,
John D. Carifa
Chairman and President
Alfred Harrison
Executive Vice President
2
INVESTMENT RESULTS
- -------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN AS OF MAY 31, 1995
CLASS A SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
--------------------------------
. One Year +16.97% +11.99%
. Since Inception* +12.50 +10.70
CLASS B SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
--------------------------------
. One Year +16.40% +12.40%
. Since Inception* +11.94 +11.32
CLASS C SHARES
. One Year +16.38%
. Since Inception* +12.97
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 front-end sales charge for Class A or applicable contingent
deferred sales charge for Class B (4% year 1, 3% year 2, 2% year 3, 1% year 4);
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.
3
TEN LARGEST HOLDINGS
MAY 31, 1995 (UNAUDITED) ALLIANCE PREMIER GROWTH FUND
- -------------------------------------------------------------------------------
COMPANY VALUE PERCENT OF NET ASSETS
- -------------------------------------------------------------------------------
Philip Morris Cos., Inc. $14,050,300 6.8%
Norwest Corp. 11,437,963 5.5
United Healthcare Corp. 11,279,300 5.4
Intel Corp. (warrants) 10,856,250 5.2
Motorola, Inc. 10,418,250 5.0
cisco Systems, Inc. 8,045,625 3.9
UAL, Inc. 7,998,250 3.8
Hewlett-Packard Co. 7,835,812 3.8
Nokia Corp. (ADR) 7,663,200 3.7
Walt Disney Co. 7,292,437 3.5
$96,877,387 46.6%
MAJOR PORTFOLIO CHANGES
SIX MONTHS ENDED MAY 31, 1995 (UNAUDITED)
SHARES*
- -------------------------------------------------------------------------------
PURCHASES BOUGHT HOLDINGS 5/31/95
cisco Systems, Inc. 183,900 183,900
Dow Chemical Co. 75,400 75,400
Hewlett-Packard Co. 118,500 118,500
Motorola, Inc. 76,300 174,000
Nokia Corp. (ADR) 164,800 164,800
Pfizer, Inc. 53,000 53,000
Philip Morris Cos., Inc. 192,800 192,800
United Healthcare Corp. 115,900 302,800
Walt Disney Co. 131,100 131,100
Xerox Corp. 41,700 41,700
SALES SOLD HOLDINGS 5/31/95
AMR Corp. 62,900 -0-
Bethlehem Steel Corp. 235,200 -0-
Chrysler Corp. 225,300 -0-
Compaq Computer Corp. 76,000 71,300
Du Pont (E.I.) de Nemours & Co. 59,900 30,400
Federal National Mortgage Assn. 101,400 -0-
General Motors Corp. 127,600 79,900
Intel Corp. (warrants) 405,000 225,000
Merrill Lynch & Co., Inc. 194,200 32,800
Travelers Corp. 123,745 -0-
* Adjusted for stock splits.
4
PORTFOLIO OF INVESTMENTS
MAY 31, 1995 (UNAUDITED) ALLIANCE PREMIER GROWTH FUND
- -------------------------------------------------------------------------------
COMPANY SHARES VALUE
- ----------------------------------------------------------------------------
COMMON STOCKS & OTHER INVESTMENTS-97.2%
CONSUMER PRODUCTS & SERVICES-43.1%
AIRLINES-7.7%
British Airways Plc. (ADR) (a) 63,900 $ 4,201,425
KLM Royal Dutch Air* 25,000 784,375
Northwest Airlines Corp. Cl.A* 104,800 2,973,700
UAL, Inc.* 69,550 7,998,250
15,957,750
AUTO & RELATED-1.8%
General Motors Corp. 79,900 3,835,200
BROADCASTING & CABLE-6.8%
AirTouch Communications, Inc.* 194,000 5,286,500
LIN Broadcasting Corp. 16,000 1,982,000
Viacom, Inc.
Cl.A* 9,960 469,365
Cl.B* 120,065 5,598,031
Cl.B rights, 9/29/95* 570,400 748,650
14,084,546
COSMETICS-0.3%
Gillette Co. 8,600 725,625
DRUGS, HOSPITAL SUPPLIES & MEDICAL SERVICES-10.2%
Abbott Laboratories, Inc. 7,500 300,000
Columbia/HCA Healthcare Corp. 72,100 2,947,088
Pfizer, Inc. 53,000 4,670,625
United Healthcare Corp. 302,800 11,279,300
U.S. Healthcare, Inc. 60,900 1,891,706
21,088,719
ENTERTAINMENT & LEISURE-3.5%
Walt Disney Co. 131,100 7,292,437
FOOD-7.4%
Coca-Cola Co. 21,700 $1,342,687
Philip Morris Cos., Inc. 192,800 14,050,300
15,392,987
RESTAURANTS & LODGING-2.3%
McDonald's Corp. 123,400 4,673,775
RETAILING-3.1%
Home Depot, Inc. 83,000 3,454,875
Kohl's Corp.* 38,600 1,674,275
Wal-Mart Stores, Inc. 53,100 1,327,500
6,456,650
89,507,689
TECHNOLOGY-24.9%
COMMUNICATIONS EQUIPMENT-8.9%
cisco Systems, Inc.* 183,900 8,045,625
Motorola, Inc. 174,000 10,418,250
18,463,875
COMPUTER HARDWARE-1.7%
Compaq Computer Corp.* 71,300 2,789,612
Intuit, Inc.* 10,900 689,425
3,479,037
COMPUTER SOFTWARE & SERVICES-5.6%
Hewlett-Packard Co. 118,500 7,835,812
Microsoft Corp.* 46,200 3,912,563
11,748,375
OFFICE EQUIPMENT-3.5%
Oracle Corp. 72,850 2,531,538
Xerox Corp. 41,700 4,727,737
7,259,275
SEMI-CONDUCTORS & RELATED-5.2%
Intel Corp. warrants, 3/16/98* 225,000 10,856,250
51,806,812
5
PORTFOLIO OF INVESTMENTS (CONTINUED) ALLIANCE PREMIER GROWTH FUND
- -------------------------------------------------------------------------------
COMPANY SHARES VALUE
- -------------------------------------------------------------------------------
FINANCIAL SERVICES-15.5%
BANKING & CREDIT-9.8%
First Bank Systems, Inc. 116,400 $ 4,888,800
NationsBank Corp. 69,200 3,918,450
Norwest Corp. 403,100 11,437,963
20,245,213
BROKERAGE & MONEY MANAGEMENT-0.7%
Merrill Lynch & Co., Inc. 32,800 1,541,600
INSURANCE-1.4%
American International Group, Inc. 10,400 1,183,000
Progressive Corp. (Ohio) 47,600 1,808,800
2,991,800
OTHER-3.6%
Federal Home Loan Mortgage Corp. 60,400 4,114,750
MBNA Corp. 100,500 3,391,875
7,506,625
32,285,238
BASIC INDUSTRIES-6.5%
CHEMICALS-4.8%
Dow Chemical Co. 75,400 5,532,475
Du Pont (E.I.) de Nemours & Co. 30,400 2,063,400
Merck & Co., Inc. 49,200 2,318,550
9,914,425
PAPER & FOREST PRODUCTS-1.0%
Georgia-Pacific Corp. 26,200 2,037,050
SHARES OR
PRINCIPAL
AMOUNT
COMPANY (000) VALUE
- --------------------------------------------------------------------------
SURFACE TRANSPORTATION-0.5%
Conrail, Inc. 12,500 $ 675,000
Southern Pacific Rail Corp.* 21,000 333,375
1,008,375
OTHER-0.2%
Burlington Northern, Inc. 7,600 464,550
13,424,400
UTILITIES-5.4%
TELEPHONE-5.4%
Nokia Corp. (ADR) (b) 164,800 7,663,200
Tele-Communications, Inc. Cl.A 164,800 3,481,400
11,144,600
CAPITAL GOODS-1.8%
MACHINERY-1.8%
Caterpillar, Inc. 62,700 3,777,675
Total Common Stocks & Other Investments
(cost $171,369,019) 201,946,414
COMMERCIAL PAPER-1.4%
Ford Motor Credit Corp.
6.10%, 6/01/95
(amortized cost $2,874,000) $2,874 2,874,000
TOTAL INVESTMENTS-98.6%
(cost $174,243,019) 204,820,414
Other assets less
liabilities-1.4% 2,905,204
NET ASSETS-100% $207,725,618
* Non-income producing security.
(a) Country of origin - United Kingdom.
(b) Country of origin - Finland.
Glossary of Terms:
ADR - American Depository Receipt
See notes to financial statements.
6
STATEMENT OF ASSETS AND LIABILITIES
MAY 31, 1995 (UNAUDITED) ALLIANCE PREMIER GROWTH FUND
- -------------------------------------------------------------------------------
ASSETS
Investments in securities, at value (cost $174,243,019) $204,820,414
Cash 1,080
Receivable for investment securities sold 6,289,836
Receivable for capital stock sold 848,076
Dividends receivable 312,593
Deferred organization expenses 170,030
Other assets 11,766
Total assets 212,453,795
LIABILITIES
Payable for investment securities purchased 3,895,271
Payable for capital stock redeemed 373,056
Advisory fee payable 172,101
Distribution fee payable 154,904
Accrued expenses 132,845
Total liabilities 4,728,177
NET ASSETS $207,725,618
COMPOSITION OF NET ASSETS
Capital stock, at par $16,317
Additional paid-in capital 175,074,992
Distributions in excess of net investment income (727,811)
Accumulated net realized gain 2,784,725
Net unrealized appreciation of investments 30,577,395
$207,725,618
CALCULATION OF MAXIMUM OFFERING PRICE
CLASS A SHARES
Net asset value and redemption price per share ($41,921,131/
3,257,250 shares of capital stock issued and outstanding) $12.87
Sales charge-4.25% of public offering price .57
Maximum offering price $13.44
CLASS B SHARES
Net asset value and offering price per share ($157,166,521/
12,380,176 shares of capital stock issued and outstanding) $12.70
CLASS C SHARES
Net asset value, redemption and offering price per share($8,637,966
/679,748 shares of capital stock issued and outstanding) $12.71
See notes to financial statements.
7
STATEMENT OF OPERATIONS
SIX MONTHS ENDED MAY 31, 1995 (UNAUDITED) ALLIANCE PREMIER GROWTH FUND
- -------------------------------------------------------------------------------
INVESTMENT INCOME
Dividends(net of foreign taxes withheld of $16,002) $1,391,439
Interest 53,717 $ 1,445,156
EXPENSES
Advisory fee 931,967
Distribution fee-Class A 92,038
Distribution fee-Class B 710,464
Distribution fee-Class C 37,518
Transfer agency 188,545
Administrative 80,126
Printing 29,811
Audit and legal 27,848
Custodian 22,387
Directors' fees 13,000
Registration 12,147
Taxes 7,330
Amortization of organization expenses 6,336
Miscellaneous 13,450
Total expenses 2,172,967
Net investment loss (727,811)
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on investments 3,060,974
Net change in unrealized depreciation of investments 31,907,143
Net gain on investments 34,968,117
NET INCREASE IN NET ASSETS FROM OPERATIONS $34,240,306
See notes to financial statements.
8
STATEMENT OF CHANGES IN NET ASSETS ALLIANCE PREMIER GROWTH FUND
- -------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
MAY 31, 1995 NOVEMBER 30,
(UNAUDITED) 1994
------------ ------------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment loss $(727,811) $(2,122,069)
Net realized gain on investments 3,060,974 14,717,095
Net change in unrealized appreciation
(depreciation) of investments 31,907,143 (19,665,055)
Net increase (decrease) in net assets
from operations 34,240,306 (7,070,029)
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net realized gain on investments
Class A (2,048,903) -0-
Class B (8,195,775) -0-
Class C (420,555) -0-
CAPITAL STOCK TRANSACTIONS
Net increase (decrease) 1,684,469 (6,378,068)
Total increase (decrease) 25,259,542 (13,448,097)
NET ASSETS
Beginning of year 182,466,076 195,914,173
End of period $207,725,618 $182,466,076
See notes to financial statements.
9
NOTES TO FINANCIAL STATEMENTS
MAY 31, 1995 (UNAUDITED) ALLIANCE PREMIER GROWTH FUND
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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. 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. 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 accretes 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.
10
ALLIANCE PREMIER GROWTH FUND
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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 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 six months ended
May 31, 1995. Pursuant to the advisory agreement, the Fund paid $80,126 to the
Adviser representing the cost of certain legal and accounting services provided
to the Fund by the Adviser for the six months ended May 31, 1995. 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 $143,631 for the six months ended May 31, 1995.
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 $4,471 from the sale of Class A shares and $135,847
in contingent deferred sales charges imposed upon redemptions by shareholders
of Class B shares for the six months ended May 31, 1995.
Brokerage commissions paid on securities transactions for the six months ended
May 31, 1995, amounted to $302,510 none of which 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 $3,117,915 and $207,238, 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 $110,559,615 and $117,625,919, respectively, for the six months
ended May 31, 1995. There were no purchases or sales of U.S. Government or
government agency obligations for the six months ended May 31, 1995.
At May 31, 1995 the cost of securities for federal income tax purposes
$174,655,477. Accordingly, gross unrealized appreciation of investments was
$31,199,168 and gross unrealized depreciation of investments was $1,034,231
resulting in net unrealized appreciation of $30,164,937.
The Fund fully utilized $3,603,319 of its capital loss carryover to offset
gains realized during the year ended November 30, 1994.
11
NOTES TO FINANCIAL STATEMENTS (CONTINUED) ALLIANCE PREMIER GROWTH FUND
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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
MAY 31, 1995 NOVEMBER 30, MAY 31, 1995 NOVEMBER 30,
(UNAUDITED) 1994 (UNAUDITED) 1994
------------ ------------ ------------ ------------
CLASS A
Shares sold 457,435 724,402 $5,261,587 $8,578,358
Shares issued in
reinvestment
of dividends 169,905 -0- 1,789,100 -0-
Shares redeemed (450,167) (1,074,753) (5,116,813) (12,684,053)
Net increase (decrease) 177,173 (350,351) $1,933,874 $(4,105,695)
CLASS B
Shares sold 1,363,875 2,561,556 $15,588,847 $30,140,522
Shares issued in
reinvestment
of dividends 571,259 -0- 5,946,806 -0-
Shares redeemed (1,951,192) (3,099,737) (22,120,691) (36,204,123)
Net decrease (16,058) (538,181) $(585,038) $(6,063,601)
CLASS C
Shares sold 189,705 541,546 $2,172,494 $6,428,560
Shares issued in
reinvestment
of dividends 22,275 -0- 232,105 -0-
Shares redeemed (180,885) (225,438) (2,068,966) (2,637,332)
Net increase 31,095 316,108 $335,633 $3,791,228
12
FINANCIAL HIGHLIGHTS ALLIANCE PREMIER GROWTH FUND
- -------------------------------------------------------------------------------
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
CLASS A
---------------------------------------------------
SIX MONTHS ENDED SEP.28,1992*
MAY 31,1995 YEAR ENDED NOV. 30, TO
(UNAUDITED) 1994 1993 NOV.30,1992
------------ ----------- --------- -------------
Net asset value, beginning
of period $11.41 $11.78 $10.79 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) (.02) (.09) (.05) .01
Net realized and unrealized
gain (loss) on investments 2.15 (.28) 1.05 .78
Net increase (decrease) in net
asset value from operations 2.13 (.37) 1.00 .79
LESS: DISTRIBUTIONS
Dividends from
net investment income -0- -0- (.01)
Distributions from
net realized gains (.67) -0- -0- -0-
Total dividends and
distributions (.67) -0- (.01) -0-
Net asset value, end of period $12.87 $11.41 $11.78 $10.79
TOTAL RETURN
Total investment return based
on net asset value (a) 19.94% (3.14)% 9.26% 7.90%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(000's omitted) $41,921 $35,146 $40,415 $4,893
Ratio of expenses to average
net assets 1.92%(c) 1.96% 2.18% 2.17%(b)(c)
Ratio of net investment income
(loss) to average net assets (.36)%(c) (.67)% (.61)% .91%(b)(c)
Portfolio turnover rate 58% 98% 68% -0-%
See footnote summary on page 15.
13
FINANCIAL HIGHLIGHTS (CONTINUED) ALLIANCE PREMIER GROWTH FUND
- -------------------------------------------------------------------------------
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
CLASS B
---------------------------------------------------
SIX MONTHS ENDED SEP.28,1992*
MAY 31, 1995 YEAR ENDED NOV. 30, TO
(UNAUDITED) 1994 1993 NOV.30,1992
------------ ----------- --------- -------------
Net asset value, beginning
of period $11.29 $11.72 $10.79 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment loss (.05) (.15) (.10)
Net realized and unrealized
gain (loss) on investments 2.13 (.28) 1.03 .79
Net increase (decrease) in net
asset value from operations 2.08 (.43) .93 .79
LESS: DISTRIBUTIONS
Distributions from
net realized gains (.67) -0- -0-
Net asset value, end of period $12.70 $11.29 $11.72 $10.79
TOTAL RETURN
Total investment return based
on net asset value (a) 19.70% (3.67)% 8.64% 7.90%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(000's omitted) $157,167 $139,988 $151,600 $19,941
Ratio of expenses to
average net assets 2.43%(c) 2.47% 2.70% 2.68%(b)(c)
Ratio of net investment income
(loss) to average net assets (.88)%(c) (1.19)% (1.14)% .35%(b)(c)
Portfolio turnover rate 58% 98% 68% -0-%
See footnote summary on page 15.
14
ALLIANCE PREMIER GROWTH FUND
- -------------------------------------------------------------------------------
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
CLASS C
---------------------------------------
SIX MONTHS ENDED YEAR ENDED MAY 3,1993**
MAY 31,1995 NOV. 30, TO
(UNAUDITED) 1994 NOV.30,1993
------------ ----------- ------------
Net asset value, beginning of period $11.30 $11.72 $10.48
INCOME FROM INVESTMENT OPERATIONS
Net investment loss (.05) (.09) (.05)
Net realized and unrealized gain (loss)
on investments 2.13 (.33) 1.29
Net increase (decrease) in net asset
value from operations 2.08 (.42) 1.24
LESS:DISTRIBUTIONS
Distributions from net realized gains (.67) -0- -0-
Net asset value, end of period $12.71 $11.30 $11.72
TOTAL RETURN
Total investment return based on
net asset value (a) 19.68% (3.58)% 11.83%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $8,638 $7,332 $3,899
Ratio of expenses to average net assets 2.42%(c) 2.47% 2.79%(c)
Ratio of net investment loss to
average net assets (.87)%(c) (1.16)% (1.35)%(c)
Portfolio turnover rate 58% 98% 68%
* 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 loss ratios would have been .25% and .75%, for Class A and Class B,
respectively.
(c) Annualized.
15
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
THOMAS BARDONG, VICE PRESIDENT
JAMES G. REILLY, 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
PRINCIPAL UNDERWRITER
ALLIANCE FUND DISTRIBUTORS, INC.
1345 Avenue of the Americas
New York, NY 10105
TRANSFER AGENT
ALLIANCE FUND SERVICES, INC.
P.O. Box 1520
Secaucus, NJ 07096-1520
Toll-free 1-(800) 221-5672
INDEPENDENT ACCOUNTANTS
PRICE WATERHOUSE LLP
1177 Avenue of the Americas
New York, NY 10036-2798
LEGAL COUNSEL
SEWARD & KISSEL
One Battery Park Plaza
New York, NY 10004
The financial information included herein is taken from the records of the fund
without audit by independent accountants who do not express an opinion thereon.
(1) Member of the Audit Committee.
16
ALLIANCE PREMIER GROWTH FUND, INC.
- -------------------------------------------------------------------------------
1345 Avenue of the Americas
New York, NY10105
(800) 221-5672
Alliance Capital
Mutual funds without the Mystery.
THIS REPORT IS DISTRIBUTED SOLELY TO SHAREHOLDERS OF THE FUND
AND IS NOT TO BE USED AS SALES LITERATURE.
R THESE REGISTERED SERVICE MARKS USED UNDER LICENSE FROM THE OWNER,
ALLIANCE CAPITAL MANAGEMENT L.P.
APGSR
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PAID
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Permit No. 7131
20
