ALLIANCE PREMIER GROWTH FUND
ANNUAL REPORT
NOVEMBER 30, 1995
LETTER TO SHAREHOLDERS ALLIANCE PREMIER GROWTH FUND
_______________________________________________________________________________
January 15, 1996
Dear Shareholder:
Alliance Premier Growth Fund has benefited a great deal from the strong
sustained rally in the U.S. stock market over much of 1995. As shown in the
table below, the Fund has achieved superior investment returns during the
annual reporting period ended November 30, 1995. Also shown are strong returns
over the period for the overall U.S. stock market, represented by the S&P
500-stock Index, and for the Russell 1000 Growth Stock Index. (Complete
descriptions of these unmanaged benchmarks appear on page 4):
12 Months Ended November 30, 1995
Total Return Ending NAV
------------ ----------
ALLIANCE PREMIER GROWTH FUND
Class A +49.95% $16.09
Class B +49.01% $15.81
Class C +48.96% $15.82
S&P 500 +36.95%
RUSSELL 1000 +37.64%
The Fund's total returns are based on the net asset values of each class of
shares as of November 30; additional investment results appear on page 3. Also
provided on page 4 is a chart that shows the performance of a hypothetical
$10,000 initial investment in Alliance Premier Growth Fund Class A shares from
inception through the end of November.
U.S. EQUITY MARKET OUTPERFORMS
Although the market witnessed a few shocks in December, there can be few
complaints about the overall performance of U.S. equities in 1995. Ironically
(though understandably) it is after such periods of strong performance that
many investors become nervous because they believe they will eventually be
faced with "paying the piper" for these impressive gains.
Our view, however, is that the market's prospects are still quite good. When
compared with other stock markets, not only is the U.S. in a very strong
technology leadership position, we also continue to reap the benefits from many
years of corporate cost cutting and we still enjoy a competitive level for the
dollar. Also important is that we now have a shift towards conservative fiscal
as well as monetary policy-a change not totally appreciated by domestic
investors, and certainly not by their foreign counterparts.
The risk to equity portfolios, in our view, lies more with investor reaction to
individual earnings disappointments than to any news that might be construed as
broadly negative for all stocks. We believe that the current estimate for a
15.5x price/earnings multiple in 1996 is not too high in today's interest rate
environment.
ECONOMIC REVIEW & OUTLOOK
Today we are facing a domestic and world economic outlook that may best be
described as subdued. In this context it is unlikely that inflation will become
a problem, and our forecast for interest rates is that, at a minimum, there
will be no major upward revision. What this means is that the competition for
the U.S. equity market is essentially the 6% yield offered by the long bond.
Hypothetically we can compare the two: assume, for example, a good regional
bank whose stock is trading at an 11x price/earnings multiple-a 9% earnings
yield-with total return prospects (earnings growth plus dividends) in the range
of 10-15% annually. So, the total return from the stock, higher than the 6%
bond yield, consequently supports our expectation that at least for the medium
term stocks should outperform. It appears that a similar outlook is influencing
401(k) retirement plan cash flows, which are increasingly directed to equity
investments.
Given the U.S.' democratic and capitalist strengths, foreign investors may be
encouraged to invest in U.S. equities of comparable valuation as an alternative
to accepting low local interest rates or investing in their own equity market
where growth prospects are not as clear. U.S. companies in recent years have
enjoyed good earnings, good cash flow, and have strengthened their balance
sheets considerably-factors we should not casually dismiss. Moreover, the
current slow economic environment means that corporate America must continue to
focus on cost cutting, which could result in impressive earnings gains when the
U.S. and world
1
ALLIANCE PREMIER GROWTH FUND
_______________________________________________________________________________
economies begin to experience a slightly higher rate of growth. We do not
believe that such gains would be negated by a material back-up of interest
rates and higher inflation.
INVESTMENT STRATEGY
In managing Alliance Premier Growth Fund, our strategy is to keep the portfolio
fully invested, but to vary the degree of aggressiveness from time to time.
Though today we are not as bullish as we were a year ago, we still believe the
market will post respectable gains in 1996. For those who are bearish (i.e.,
believing the market is due for broad declines), we believe they may be unable
to buy stocks materially below today's levels. However, despite our forecast
for market upside, stock selection will be critical and it will be incumbent on
portfolio managers to continually assess each company's fundamentals carefully
and to pay particular attention to price. Because we believe that successful
investing comes from the correct marriage of company fundamentals and price,
stock selection for your Fund is based on a research process in which we try to
assess where a particular company, and the market, are at any time both
relatively and absolutely as prices fluctuate.
Looking back at 1995, three sectors performed particularly well for your Fund:
technology, financial services and transportation. The 25-30% in technology
stocks and around 20% in financial services stocks benefited from a lower
interest rate environment, and transportation stocks such as United Airlines
turned in double-digit returns for the year.
Although historically the same sectors are not top performers in consecutive
years, as we look forward to 1996 we are currently maintaining positions in
these areas because they still seem to have the best earnings momentum, and
their prices, while not at bargain basement levels, are still reasonable in our
opinion.
Thank you for your interest and investment in Alliance Premier Growth Fund. We
look forward to reporting its progress to you in the coming period.
Sincerely,
John D. Carifa
Chairman and President
Alfred Harrison
Executive Vice President
2
INVESTMENT RESULTS ALLIANCE PREMIER GROWTH FUND
_______________________________________________________________________________
AVERAGE ANNUAL TOTAL RETURN AS OF NOVEMBER 30, 1995
CLASS A SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
------------ ------------
. One Year +49.95% +43.53%
. Since Inception* +18.49% +16.89%
CLASS B SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
------------ ------------
. One Year +49.01% +45.01%
. Since Inception* +17.84% +17.62%
CLASS C SHARES
. One Year +48.96%
. Since Inception* +20.08%
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
Alliance Premier Growth Fund
_______________________________________________________________________________
ALLIANCE PREMIER GROWTH FUND
$10,000 INVESTMENT OVER LIFE OF FUND:
9/30/92 TO 11/30/95
$17,000
$15,000
$13,000
$11,000
$9,000
9/30/92 11/30/95
PREMIER GROWTH FUND
CLASS A: $16,402
S&P 500
RUSSELL 1000 GROWTH
This chart illustrates the total value of an assumed $10,000 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 unmanaged Standard and Poor's 500-stock Index includes 500 U.S. stocks, and
is a common measure of the performance of the U.S. stock market.
The unmanaged Russell 1000 Growth Stock Index compiles the 1000 largest U.S.
stocks as measured by price to book ratios; those with the highest ratios are
considered "growth" stocks (the remaining are considered "value" stocks).
When comparing Alliance Premier Growth Fund to the indices 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 indices.
Premier Growth Fund
S&P 500
Russell 1000 Growth
4
TEN LARGEST HOLDINGS
NOVEMBER 30, 1995 ALLIANCE PREMIER GROWTH FUND
_______________________________________________________________________________
COMPANY VALUE PERCENT OF NET ASSETS
- -------------------------------------------------------------------------------
Philip Morris Cos., Inc. $ 20,428,200 6.2%
Intel Corp., warrants 3/16/98 14,006,250 4.2
UAL, Corp. 13,046,737 3.9
Applied Materials, Inc. 12,496,625 3.8
ITT Corp. 12,385,125 3.7
Norwest Corp. 12,249,600 3.7
Tele-Communications, Inc. (Cl.A & units) 11,668,700 3.5
Merrill Lynch & Co., Inc. 11,408,688 3.5
AirTouch Communications, Inc. 10,790,812 3.3
McDonald's Corp. 10,098,638 3.0
$128,579,375 38.8%
MAJOR PORTFOLIO CHANGES
SIX MONTHS ENDED NOVEMBER 30, 1995
_______________________________________________________________________________
SHARES*
----------------------------
PURCHASES BOUGHT HOLDINGS 11/30/95
- -----------------------------------------------------------------------------
AirTouch Communications, Inc. 176,500 370,500
American International Group, Inc. 44,100 83,550
Applied Materials, Inc. 148,000 257,000
AT & T Corp. 104,500 104,500
General Reinsurance Corp. 34,600 34,600
ITT Corp. 101,000 101,000
Merrill Lynch & Co., Inc. 172,300 205,100
Micron Technology, Inc. 162,600 162,600
Tele-Communications, Inc. 335,400 500,200
Travelers, Inc. 90,300 90,300
SALES SOLD HOLDINGS 11/30/95
- -----------------------------------------------------------------------------
Caterpillar, Inc. 62,700 -0-
cisco Systems, Inc. 93,600 90,300
Dow Chemical Co. 75,400 -0-
First Bank Systems, Inc. 82,000 34,400
Georgia-Pacific Corp. 26,200 -0-
Merck & Co., Inc. 49,200 -0-
Motorola, Inc. 76,400 97,600
United HealthCare Corp. 154,700 148,100
Viacom, Inc. Cl. B 96,070 23,995
Xerox Corp. 41,700 -0-
* Adjusted for stock splits.
5
PORTFOLIO OF INVESTMENTS
NOVEMBER 30, 1995 ALLIANCE PREMIER GROWTH FUND
_______________________________________________________________________________
COMPANY SHARES VALUE
- ----------------------------------------------------------------------
COMMON STOCKS AND OTHER INVESTMENTS-95.0%
CONSUMER PRODUCTS & SERVICES-39.4%
AIRLINES-8.7%
British Airways Plc. (ADR)(a) 71,400 $ 5,024,775
KLM Royal Dutch Air 122,410 4,223,145
Northwest Airlines Corp. Cl.A* 128,800 6,488,300
UAL, Corp. 62,350 13,046,737
28,782,957
BIOTECHNOLOGY-1.2%
Amgen, Inc.* 83,000 4,118,875
BROADCASTING & CABLE-7.9%
AirTouch Communications, Inc.* 370,500 10,790,812
Cox Communications, Inc.* 120,100 2,402,000
Tele-Communications, Inc. Cl.A* 500,200 9,253,700
Tele-Comm Liberty Media*
(units) 86,250 2,415,000
Viacom, Inc. Cl.B* 23,995 1,157,759
26,019,271
COSMETICS-1.8%
Gillette Co. 113,500 5,887,813
DRUGS, HOSPITAL SUPPLIES & MEDICAL SERVICES-6.4%
Columbia/HCA Healthcare Corp. 131,500 6,788,687
Pfizer, Inc. 64,100 3,717,800
Schering-Plough Corp. 22,100 1,267,988
United Healthcare Corp. 148,100 9,311,787
21,086,262
ENTERTAINMENT & LEISURE-1.9%
Walt Disney Co. 104,700 6,295,088
FOOD, BEVERAGES & TOBACCO-7.4%
Coca-Cola Co. 24,400 1,848,300
PepsiCo, Inc. 41,700 2,303,925
Philip Morris Cos., Inc. 232,800 20,428,200
24,580,425
RESTAURANTS-3.1%
McDonald's Corp. 226,300 10,098,638
RETAILING-1.0%
Home Depot, Inc. 71,200 3,159,500
Wal-Mart Stores, Inc. 10,200 244,800
3,404,300
130,273,629
TECHNOLOGY-28.1%
COMMUNICATIONS EQUIPMENT-7.7%
cisco Systems, Inc.* 90,300 7,596,487
Ericsson (L.M.) Telephone Co. 108,690 2,581,388
Motorola, Inc. 97,600 5,978,000
Nokia Corp. (ADR)* (b) 175,500 9,520,875
25,676,750
COMPUTER HARDWARE-4.5%
COMPAQ Computer Corp.* 108,000 5,346,000
Hewlett-Packard Co. 114,600 9,497,475
14,843,475
COMPUTER SOFTWARE & SERVICES-5.2%
First Data Corp. 32,000 2,272,000
General Motors Corp. Cl.E 157,100 7,933,550
Microsoft Corp.* 46,800 4,077,450
Oracle Systems Corp.* 63,850 2,897,194
17,180,194
6
ALLIANCE PREMIER GROWTH FUND
_______________________________________________________________________________
COMPANY SHARES VALUE
- ----------------------------------------------------------------------
SEMI-CONDUCTORS & RELATED-10.7%
Applied Materials, Inc.* 257,000 $12,496,625
Intel Corp., warrants 3/16/98* 450,000 14,006,250
Micron Technology, Inc. 162,600 8,902,350
35,405,225
93,105,644
FINANCIAL SERVICES-21.7%
BANKING & CREDIT-7.7%
First Bank Systems, Inc. 34,400 1,775,900
First Chicago Corp. 53,600 3,725,200
First Interstate Bancorp 23,200 3,108,800
NationsBank Corp. 66,400 4,739,300
Norwest Corp. 371,200 12,249,600
25,598,800
BROKERAGE & MONEY MANAGEMENT-3.5%
Merrill Lynch & Co., Inc. 205,100 11,408,688
INSURANCE-5.5%
American International Group, Inc. 83,550 7,498,612
General Reinsurance Corp. 34,600 5,177,025
Travelers, Inc. 90,300 5,372,850
18,048,487
MORTGAGE BANKING-3.4%
Federal Home Loan Mortgage Corp. 93,400 7,191,800
Federal National Mortgage Assn. 38,000 4,161,000
11,352,800
OTHER-1.6%
MBNA Corp. 131,400 $ 5,305,275
71,714,050
MULTI INDUSTRY-3.7%
ITT Corp. 101,000 12,385,125
UTILITIES-2.1%
TELEPHONE-2.1%
AT & T Corp. 104,500 6,897,000
Total Common Stocks and Other Investments
(cost $253,832,263) 314,375,448
SHORT TERM INVESTMENTS-3.7%
COMMERCIAL PAPER-3.7%
General Electric Credit Corp.
5.88%, 12/01/95
(amortized cost $12,370,000) $12,370 12,370,000
TOTALINVESTMENTS-98.7%
(cost $266,202,263) 326,745,448
Other assets less liabilities-1.3% 4,387,469
NETASSETS-100% $331,132,917
* Non-income producing security.
(a) Country of origin - United Kingdom.
(b) Country of origin - Finland.
Glossary:
ADR - American Depository Receipt
See notes to financial statements.
7
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 1995 ALLIANCE PREMIER GROWTH FUND
_______________________________________________________________________________
ASSETS
Investments in securities, at value (cost $266,202,263) $326,745,448
Cash 282
Receivable for capital stock sold 2,765,456
Receivable for investment securities sold 2,675,944
Dividend receivable 274,957
Deferred organization expenses 112,126
Total assets 332,574,213
LIABILITIES
Payable for capital stock redeemed 441,077
Payable for investment securities purchased 311,368
Advisory fee payable 261,149
Distribution fee payable 226,422
Accrued expenses 201,280
Total liabilities 1,441,296
NET ASSETS $331,132,917
COMPOSITION OF NET ASSETS
Capital stock, at par $20,865
Additional paid-in capital 243,310,847
Accumulated net realized gain 27,258,020
Net unrealized appreciation of investments 60,543,185
$331,132,917
CALCULATION OF MAXIMUM OFFERING PRICE
CLASS A SHARES
Net asset value and redemption price per share($72,365,998/
4,497,552 shares of capital stock issued and outstanding) $16.09
Sales charge-4.25% of public offering price .71
Maximum offering price $16.80
CLASS B SHARES
Net asset value and offering price per share($238,087,540/
15,060,319 shares of capital stock issued and outstanding) $15.81
CLASS C SHARES
Net asset value, redemption and offering price per share($20,679,379/
1,306,812 shares of capital stock issued and outstanding) $15.82
See notes to financial statements.
8
STATEMENT OF OPERATIONS
YEAR ENDED NOVEMBER 30, 1995 ALLIANCE PREMIER GROWTH FUND
_______________________________________________________________________________
INVESTMENT INCOME
Dividends(net of foreign taxes withheld of $44,882) $2,994,474
Interest 349,347 $ 3,343,821
EXPENSES
Advisory fee 2,261,352
Distribution fee - Class A 152,930
Distribution fee - Class B 1,690,053
Distribution fee - Class C 107,066
Transfer agency 409,483
Administrative 138,638
Audit and legal 82,370
Custodian 80,165
Printing 70,045
Registration 66,087
Amortization of organization expenses 64,240
Directors' fees 24,327
Taxes 18,903
Miscellaneous 19,943
Total expenses 5,185,602
Net investment loss (1,841,781)
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on investments 29,212,645
Net change in unrealized depreciation on investments 61,872,933
Net gain on investments 91,085,578
NET INCREASE IN NET ASSETS FROM OPERATIONS $89,243,797
See notes to financial statements.
9
STATEMENT OF CHANGES IN NET ASSETS ALLIANCE PREMIER GROWTH FUND
_______________________________________________________________________________
YEAR ENDED YEAR ENDED
NOVEMBER 30, NOVEMBER 30,
1995 1994
------------- -------------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment loss $ (1,841,781) $ (2,122,069)
Net realized gain on investments 29,212,645 14,717,095
Net change in unrealized appreciation
(depreciation) on investments 61,872,933 (19,665,055)
Net increase (decrease) in net assets from
operations 89,243,797 (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 (420,556) -0-
CAPITAL STOCK TRANSACTIONS
Net increase (decrease) 70,088,278 (6,378,068)
Total increase (decrease) 148,666,841 (13,448,097)
NET ASSETS
Beginning of year 182,466,076 195,914,173
End of year $331,132,917 $182,466,076
See notes to financial statements.
10
NOTES TO FINANCIAL STATEMENTS
NOVEMBER 30, 1995 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. 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.
To reflect reclassifications arising from permanent book/tax differences for
the year ended November 30, 1995, $(1,841,781) was reclassified from
accumulated net investment loss to accumulated net realized gain, and
$(163,404) was reclassified from accumulated net realized gain to additional
paid-in capital.
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.
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 year ended November
30, 1995. Pursuant to the advisory agreement, the Fund paid $138,638 to the
Adviser representing the cost of certain legal and accounting services provided
to the Fund by the Adviser for the year ended
11
NOTES TO FINANCIAL STATEMENTS (CONTINUED) ALLIANCE PREMIER GROWTH FUND
_______________________________________________________________________________
November 30, 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 $256,719 for the year ended November 30,
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 $33,038 from the sale of Class A shares and $239,569
in contingent deferred sales charges imposed upon redemptions by shareholders
of Class B shares for the year ended November 30, 1995.
Brokerage commissions paid on securities transactions for the year ended
November 30, 1995, amounted to $619,643, 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 $5,101,361 and $267,542, 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 $293,795,939 and $252,365,875, respectively, for the year ended
November 30, 1995. There were no purchases or sales of U.S. Government or
government agency obligations for the year ended November 30, 1995.
At November 30, 1995 the cost of securities for federal income tax purposes was
$266,313,700. Accordingly, gross unrealized appreciation of investments was
$61,977,331 and gross unrealized depreciation of investments was $1,545,583
resulting in net unrealized appreciation of $60,431,748.
NOTE E: SUBSEQUENT EVENT
Alliance Premier Growth Fund's Board of Directors has approved the acquisition
by the Fund of the assets and certain liabilities of the Alliance Counterpoint
Fund in exchange for each class of shares of the Fund. A meeting of
shareholders is currently scheduled for February 29, 1996 to consider approval
of this transaction.
12
ALLIANCE PREMIER GROWTH FUND
_______________________________________________________________________________
NOTE F: 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
NOVEMBER 30, NOVEMBER 30, NOVEMBER 30, NOVEMBER 30,
1995 1994 1995 1994
----------- ------------ ------------- -------------
CLASS A
Shares sold 2,089,549 724,402 $29,939,297 $ 8,578,358
Shares issued in
reinvestment of
distributions 169,905 -0- 1,789,100 -0-
Shares redeemed (841,979) (1,074,753) (10,952,691) (12,684,053)
Net increase(decrease) 1,417,475 (350,351) $20,775,706 $ (4,105,695)
CLASS B
Shares sold 5,397,522 2,561,556 $75,559,108 $ 30,140,522
Shares issued in
reinvestment of
distributions 571,259 -0- 5,946,806 -0-
Shares redeemed (3,304,696) (3,099,737) (41,887,940) (36,204,123)
Net increase(decrease) 2,664,085 (538,181) $39,617,974 $ (6,063,601)
CLASS C
Shares sold 941,434 541,546 $13,348,558 $ 6,428,560
Shares issued in
reinvestment of
distributions 22,275 -0- 232,105 -0-
Shares redeemed (305,550) (225,438) (3,886,065) (2,637,332)
Net increase 658,159 316,108 $ 9,694,598 $ 3,791,228
13
FINANCIAL HIGHLIGHTS ALLIANCE PREMIER GROWTH FUND
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
CLASS A
-----------------------------------------------
YEAR ENDED NOVEMBER 30, SEP. 28,1992*
-------------------------------- TO
1995 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) (.03) (.09) (.05) .01
Net realized and unrealized
gain (loss) on investments 5.38 (.28) 1.05 .78
Net increase (decrease) in net
asset value from operations 5.35 (.37) 1.00 .79
LESS: DISTRIBUTIONS
Dividends from net investment
income -0- -0- (.01) -0-
Distributions from net
realized gains (.67) -0- -0- -0-
Total dividends and
distributions (.67) -0- (.01) -0-
Net asset value, end of period $16.09 $11.41 $11.78 $10.79
TOTAL RETURN
Total investment return based
on net asset value (a) 49.95% (3.14)% 9.26% 7.90%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(000's omitted) $72,366 $35,146 $40,415 $4,893
Ratio of expenses to average
net assets 1.75% 1.96% 2.18% 2.17%(b)(c)
Ratio of net investment income
(loss) to average net assets (.28)% (.67)% (.61)% .91%(b)(c)
Portfolio turnover rate 114% 98% 68% -0-%
See footnote summary on page 16.
14
ALLIANCE PREMIER GROWTH FUND
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
CLASS B
-----------------------------------------------
YEAR ENDED NOVEMBER 30, SEP. 28,1992*
-------------------------------- TO
1995 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 (.11) (.15) (.10) -0-
Net realized and unrealized
gain (loss) on investments 5.30 (.28) 1.03 .79
Net increase (decrease) in net
asset value from operations 5.19 (.43) .93 .79
LESS: DISTRIBUTIONS
Distributions from net
realized gains (.67) -0- -0- -0-
Net asset value, end of period $15.81 $11.29 $11.72 $10.79
TOTAL RETURN
Total investment return based
on net asset value (a) 49.01% (3.67)% 8.64% 7.90%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(000's omitted) $238,088 $139,988 $151,600 $19,941
Ratio of expenses to average
net assets 2.43% 2.47% 2.70% 2.68%(b)(c)
Ratio of net investment income
(loss) to average net assets (.95)% (1.19)% (1.14)% .35%(b)(c)
Portfolio turnover rate 114% 98% 68% -0-%
See footnote summary on page 16.
15
FINANCIAL HIGHLIGHTS (CONTINUED) ALLIANCE PREMIER GROWTH FUND
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
CLASS C
-------------------------------------
YEAR ENDED NOVEMBER 30, MAY 3,1993**
----------------------- TO
1995 1994 NOV. 30,1993
----------- ---------- ------------
Net asset value, beginning of period $11.30 $11.72 $10.48
INCOME FROM INVESTMENT OPERATIONS
Net investment loss (.08) (.09) (.05)
Net realized and unrealized gain (loss)
on investments 5.27 (.33) 1.29
Net increase (decrease) in net asset
value from operations 5.19 (.42) 1.24
LESS:DISTRIBUTIONS
Distributions from net realized gains (.67) -0- -0-
Net asset value, end of period $15.82 $11.30 $11.72
TOTAL RETURN
Total investment return based on net
asset value (a) 48.96% (3.58)% 11.83%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period(000's omitted) $20,679 $7,332 $3,899
Ratio of expenses to average net assets 2.42% 2.47% 2.79%(c)
Ratio of net investment loss to
average net assets (.97)% (1.16)% (1.35)%(c)
Portfolio turnover rate 114% 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.
16
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, 1995, 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 three 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, 1995 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 16, 1996
17
ALLIANCE PREMIER GROWTH FUND
_______________________________________________________________________________
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)
ROBERT C. WHITE (1)
OFFICERS
ALFRED HARRISON, EXECUTIVE 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
(1) Member of the Audit Committee.
18
ALLIANCE PREMIER GROWTH FUND, INC.
1345 Avenue of the Americas
New York, NY 10105
(800) 221-5672
ALLIANCECAPITAL
MUTUAL FUNDS WITHOUT THE MYSTERY.
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.
APGAR
