ALLIANCE PREMIER GROWTH FUND
SEMI-ANNUAL REPORT
MAY 31, 1996
LETTER TO SHAREHOLDERS ALLIANCE PREMIER GROWTH FUND
_______________________________________________________________________________
July 15, 1996
Dear Shareholder:
We began your Fund's fiscal year with a generally favorable view of economic
and corporate developments and with a belief in the stock market's potential to
reward investors with another year of double-digit returns. At the same time,
we indicated that the market's advance might be erratic. For the six months
ended May 31, 1996, the equity market lived up to our expectations as reflected
in the performance of both the S&P 500-Stock Index and the Russell 1000
Growth-Stock Index, which registered gains of 11.76% and 11.37%, respectively.
These results take into account several steep market swings, including a
171-point drop in the Dow Jones Industrial Average on March 8, 1996.
We are pleased to report that Alliance Premier Growth Fund also appreciated
during the period, although more modestly than its comparative indices. Class A
shares, for example, produced a cumulative total return of 8.48%. The table
below provides the results for each class of shares and describes more
completely the benchmarks used for comparison.
INVESTMENT RESULTS*
SIX MONTHS ENDED MAY 31, 1996
CUMULATIVE ENDING
TOTAL RETURN NAV
------------ --------
ALLIANCE PREMIER GROWTH FUND
Class A 8.48% $16.05
Class B 8.10% $15.69
Class C 8.16% $15.71
S&P 500-STOCK INDEX 11.76%
RUSSELL 1000 GROWTH-STOCK INDEX 11.37%
* THE FUND'S INVESTMENT RESULTS ARE CUMULATIVE TOTAL RETURNS FOR THE PERIOD
AND ARE BASED ON THE NET ASSET VALUE OF EACH CLASS OF SHARES AS OF 5/31/96. ALL
FEES AND EXPENSES RELATED TO THE OPERATION OF THE FUND HAVE BEEN DEDUCTED, BUT
NO ADJUSTMENT HAS BEEN MADE FOR SALES CHARGES THAT MAY APPLY WHEN SHARES ARE
PURCHASED OR REDEEMED. RETURNS FOR THE FUND AND ITS COMPARATIVE INDICES INCLUDE
THE REINVESTMENT OF ANY DISTRIBUTIONS PAID DURING THE PERIOD.
ALL COMPARATIVE INDICES ARE UNMANAGED AND REFLECT NO FEES OR EXPENSES. THE
RUSSELL 1000 GROWTH-STOCK INDEX TRACKS THE RETURNS OF THE LARGEST 1000 U.S.
STOCKS WITH THE HIGHEST PRICE-TO-BOOK RATIO (A DEFINING MEASURE OF GROWTH
STOCKS). THE S&P 500-STOCK INDEX IS A COMMON MEASURE OF THE PERFORMANCE OF THE
OVERALL U.S. STOCK MARKET.
FACTORS AFFECTING YOUR FUND'S PERFORMANCE
As you know, Alliance Premier Growth Fund seeks long-term growth of capital
through investments predominately in the stocks of a limited number of large,
established U.S. companies. During the six-month period ended May 31, 1996, the
Fund pursued investments in equities with prices and fundamentals that
suggested attractive growth opportunities. Our selections within the
large-company sector generally performed well despite the market's preference
for small-capitalization stocks. There were disappointments among our
investments, however. Our emphasis on financial companies, which are sensitive
to interest-rate movements, dampened performance when concern about an
accelerating economy pushed rates higher. Several technology stocks also
squeezed returns. That sector experienced a significant correction in the
opening months of the period. In particular, our position in Applied Materials
hurt the Fund's overall total return.
A POSITIVE ECONOMIC AND MARKET OUTLOOK
The four underpinnings to our positive attitude remain unchanged from our last
report to you. First, we continue to see solid earnings, cash flow, and balance
sheet improvement at many of the companies we analyze. There is nothing on the
horizon to suggest that the prospects for these companies will change
materially. Second, the broad economic view, both domestically and worldwide,
is for a continuation of moderate growth and moderate inflation. One can argue
shades around this, but nothing approaching boom or recession seems likely. The
third reason for our positive outlook is that the competitiveness of the U.S.
continues to impress us. A decade of painful cost cutting, growing
technological leadership, and a still undervalued dollar suggest that the
ability of the U.S. to succeed in world markets should not be underrated. This
is especially true since the nation's competitiveness is built on traditional
democratic and capitalistic strengths and on solid legal and accounting
structures. Finally, and perhaps most important, we are enjoying the elixir of
both an orthodox monetary policy, led by Alan Greenspan, and a conservative
fiscal policy that has been embraced by both political parties and by the
general electorate. Indeed, the deficit worries of a few years ago have proven
to be of little import in relation to a multi-trillion-dollar gross domestic
product.
1
ALLIANCE PREMIER GROWTH FUND
_______________________________________________________________________________
INVESTMENT STRATEGY
Our bullish position and our investment strategy going forward must be
tempered, however, by the fact that stocks have been trading at more than 16
times our estimate of 1996 earnings. In our opinion, an appropriate range for
the stock market is 14 to 18 times earnings. At the beginning of 1995, the
market was priced at just under 14 times projected earnings, and we were very
bullish. We also recognize that the equity market's advance has lasted 15 years
and that recent gains have been fueled by enormous injections of money into
mutual funds. For these reasons, we shall continue to keep our
portfolio-weighted price-earnings multiple as low as possible while still
striving for above-average growth.
Our best forecast and, indeed, our greatest hope is that the market will
continue to move upward, but slowly. We are concerned that deep, sharp swings
in the market at its current valuation level could lead to increased
speculation and added risk. For the last six months, the market has been
obsessed with the performance of high-technology stocks. We believe a better
approach to consistent long-term growth is to invest in a broad mixture of
stocks drawn from a variety of different industries. We have therefore
positioned your Fund's portfolio to take advantage of the growth potential we
see in certain consumer, financial, and industrial companies. While we always
have a growth bias, we are committed to keeping our stock selection as diverse
as possible.
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
SHARES OF THE FUND ARE NOT DEPOSITS OR OBLIGATIONS OF, GUARANTEED OR ENDORSED
BY, ANY BANK; FURTHER, SUCH SHARES ARE NOT FEDERALLY INSURED BY THE FEDERAL
DEPOSIT INSURANCE CORPORATION, THE FEDERAL RESERVE BOARD, OR ANY OTHER AGENCY.
SHARES OF THE FUND INVOLVE INVESTMENT RISKS, INCLUDING THE POSSIBLE LOSS OF
PRINCIPAL.
2
INVESTMENT OBJECTIVE AND POLICIES ALLIANCE PREMIER GROWTH FUND
_______________________________________________________________________________
Alliance Premier Growth Fund is an open-end, diversified investment company
that seeks long-term growth of capital by investing in the common stocks of a
limited number of large, carefully selected, high-quality U.S. companies that
are judged likely to achieve superior earnings growth. Normally, about 40
companies will be represented in the portfolio, with the 25 most highly
regarded of these usually constituting 70% of the Fund's net assets.
INVESTMENT RESULTS
_______________________________________________________________________________
AVERAGE ANNUAL TOTAL RETURNS AS OF MAY 31, 1996
CLASS A SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
------------ ------------
. One Year 35.62% 29.87%
. Since Inception* 18.38% 17.00%
CLASS B SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
------------ ------------
. One Year 34.56% 30.56%
. Since Inception* 17.70% 17.53%
CLASS C SHARES
. One Year 34.62%
. Since Inception* 19.57%
Average annual total returns reflect investment of dividends and/or capital
gain 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 purchased prior to July 1, 1996, are not subject to front-end or
contingent deferred sales charges. Class C shares purchased on or after July 1,
1996, are subject to a contingent deferred sales charge of 1% on redemptions
made within the first year after purchase.
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, 1996 (UNAUDITED) ALLIANCE PREMIER GROWTH FUND
_______________________________________________________________________________
COMPANY VALUE PERCENT OF NET ASSETS
- -------------------------------------------------------------------------------
Philip Morris Cos., Inc. $ 36,450,750 7.1%
Intel Corp. (common stock and warrants) 23,426,000 4.6
AirTouch Communications, Inc. 22,038,375 4.3
Applied Materials, Inc. 21,865,750 4.3
Norwest Corp. 18,870,862 3.7
UAL, Corp. 18,137,187 3.6
Merrill Lynch & Co., Inc. 18,058,775 3.5
Hewlett-Packard Co. 17,528,350 3.4
United Healthcare Corp. 15,913,750 3.1
cisco Systems, Inc. 13,780,575 2.7
$206,070,374 40.3%
MAJOR PORTFOLIO CHANGES
SIX MONTHS ENDED MAY 31, 1996 (UNAUDITED)
_______________________________________________________________________________
SHARES
-------------------------------
PURCHASES BOUGHT HOLDINGS 5/31/96
AirTouch Communications, Inc. 320,900 691,400
Applied Materials, Inc. 330,000 587,000
Ford Motor Co. 282,800 282,800
General Electric Co. 96,300 96,300
General Motors Corp. 156,800 156,800
Merck & Co., Inc. 144,900 144,900
PepsiCo, Inc. 351,100 392,800
Pfizer, Inc. 97,000 161,100
Philip Morris Cos., Inc. 134,000 366,800
United Healthcare Corp. 141,900 290,000
SALES SOLD HOLDINGS 5/31/96
- -------------------------------------------------------------------------------
First Data Corp. 32,000 -0-
First Interstate Bancorp 23,200 -0-
General Motors Corp. Cl.E 157,100 -0-
General Reinsurance Corp. 34,600 -0-
Gillette Co. 30,300 83,200
McDonald's Corp. 41,000 185,300
Micron Technology, Inc. 162,600 -0-
Motorola, Inc. 97,600 -0-
Nokia Corp. (ADR) 175,500 -0-
Oracle Systems Corp. 63,850 -0-
4
PORTFOLIO OF INVESTMENTS
MAY 31, 1996 (UNAUDITED) ALLIANCE PREMIER GROWTH FUND
_______________________________________________________________________________
COMPANY SHARES VALUE
- -------------------------------------------------------------------------
COMMON STOCKS-98.2%
CONSUMER PRODUCTS & SERVICES-46.4%
AIRLINES-8.4%
AMR Corp.* 46,700 $ 4,407,313
British Airways Plc (ADR)(a) 44,700 3,877,725
Delta Airlines, Inc. 33,000 2,734,875
KLM Royal Dutch Air 178,410 6,333,555
Northwest Airlines Corp. Cl.A* 194,200 7,719,450
UAL, Corp.* 317,500 18,137,187
------------
43,210,105
AUTO & RELATED-2.0%
Ford Motor Co. 282,800 10,322,200
BIOTECHNOLOGY-2.1%
Amgen, Inc.* 182,700 10,870,650
BROADCASTING & CABLE-7.0%
AirTouch Communications, Inc.* 691,400 22,038,375
Cox Communications, Inc. Cl.A* 125,100 2,814,750
TCI Group, Series A* 395,000 7,455,625
Tele-Communications-Liberty Media Group Cl.A 121,250 3,637,500
------------
35,946,250
COSMETICS-1.0%
Gillette Co. 83,200 4,919,200
DRUGS, HOSPITAL SUPPLIES & MEDICAL SERVICES-10.9%
Baxter International, Inc. 87,700 3,880,725
Columbia/HCA Healthcare Corp. 237,700 12,806,087
Johnson & Johnson Co. 23,000 2,239,625
Merck & Co., Inc. 144,900 9,364,163
Pfizer, Inc. 161,100 11,397,825
United Healthcare Corp. 290,000 15,913,750
------------
55,602,175
ENTERTAINMENT & LEISURE-2.7%
Carnival Corp. Cl.A 81,200 2,415,700
Walt Disney Co. 185,100 11,244,825
------------
13,660,525
FOOD, BEVERAGES & TOBACCO-9.7%
PepsiCo, Inc. 392,800 13,060,600
Philip Morris Cos., Inc. 366,800 36,450,750
------------
49,511,350
RESTAURANTS-1.7%
McDonald's Corp. 185,300 8,917,562
RETAILING-0.9%
Home Depot, Inc. 38,600 1,973,425
Sears, Roebuck & Co. 22,300 1,134,513
Wal-Mart Stores, Inc. 51,600 1,335,150
------------
4,443,088
------------
237,403,105
TECHNOLOGY-21.1%
COMMUNICATIONS EQUIPMENT-3.6%
3Com Corp.* 43,600 2,147,300
cisco Systems, Inc.* 251,700 13,780,575
Ericsson (L.M.) Telephone Co.(ADR) (b) 108,690 2,506,663
------------
18,434,538
COMPUTER HARDWARE-6.0%
COMPAQ Computer Corp.* 128,300 6,238,588
Hewlett-Packard Co. 164,200 17,528,350
International Business Machines Corp. 35,400 3,778,950
Seagate Technology* 58,100 3,413,375
------------
30,959,263
COMPUTER SOFTWARE & SERVICES-2.6%
Microsoft Corp.* 111,200 13,205,000
SEMI-CONDUCTORS & RELATED-8.9%
Applied Materials, Inc.* 587,000 21,865,750
5
PORTFOLIO OF INVESTMENTS (CONTINUED) ALLIANCE PREMIER GROWTH FUND
_______________________________________________________________________________
COMPANY SHARES VALUE
- -------------------------------------------------------------------------
Intel Corp. 59,500 $ 4,492,250
warrants, expiring 3/16/98* 495,000 18,933,750
-------------
45,291,750
-------------
107,890,551
FINANCIAL SERVICES-20.6%
BANKING & CREDIT-9.0%
Citicorp 61,000 5,124,000
MBNA Corp. 390,100 11,946,813
NationsBank Corp. 123,000 9,978,375
Norwest Corp. 541,100 18,870,862
-------------
45,920,050
BROKERAGE & MONEY MANAGEMENT-5.4%
Green Tree Financial Corp. 79,800 2,613,450
Merrill Lynch & Co., Inc. 278,900 18,058,775
Morgan Stanley Group, Inc. 140,300 6,944,850
------------
27,617,075
INSURANCE-3.0%
American International Group, Inc. 120,350 11,342,988
Travelers Group, Inc. 103,200 4,282,800
------------
15,625,788
MORTGAGE BANKING-3.2%
Federal Home Loan Mortgage Corp. 93,400 7,717,175
Federal National Mortgage Assn. 285,100 8,802,462
------------
16,519,637
------------
105,682,550
CAPITAL GOODS-3.2%
ELECTRICAL EQUIPMENT-1.6%
General Electric Co. 96,300 7,968,825
SHARES OR
PRINCIPAL
AMOUNT
COMPANY (000) VALUE
- -------------------------------------------------------------------------
MACHINERY-1.6%
Case Corp. 111,500 $ 5,588,937
Deere & Co. 62,800 2,614,050
------------
8,202,987
------------
16,171,812
UTILITIES-2.8%
TELEPHONE-2.8%
AT & T Corp. 146,900 9,162,887
MCI Communications Corp. 176,300 5,134,738
------------
14,297,625
CONSUMER MANUFACTURING-1.7%
AUTO & RELATED-1.7%
General Motors Corp. 156,800 8,643,600
BASIC INDUSTRIES-1.2%
METALS & MINING-1.2%
Aluminum Co. of America 104,500 6,439,813
MULTI INDUSTRY-1.2%
ITT Corp.* 103,900 6,389,850
Total Common Stocks
(cost $420,094,090) 502,918,906
SHORT-TERM INVESTMENTS-0.6%
COMMERCIAL PAPER-0.6%
General Electric Capital Corp.
5.40%, 6/03/96
(amortized cost $2,981,105) $2,982 2,981,105
TOTAL INVESTMENTS-98.8%
(cost $423,075,195) 505,900,011
Other assets less liabilities-1.2% 5,921,246
NET ASSETS-100% $511,821,257
* Non-income producing security.
(a) Country of origin - United Kingdom.
(b) Country of origin - Sweden.
Glossary:
ADR - American Depository Receipt
See notes to financial statements.
6
STATEMENT OF ASSETS AND LIABILITIES
MAY 31, 1996 (UNAUDITED) ALLIANCE PREMIER GROWTH FUND
_______________________________________________________________________________
ASSETS
Investments in securities, at value (cost $423,075,195) $505,900,011
Receivable for investment securities sold 9,698,829
Receivable for capital stock sold 2,652,625
Dividend receivable 326,906
Prepaid expenses 91,083
Total assets 518,669,454
LIABILITIES
Due to custodian 42,477
Payable for investment securities purchased 5,727,061
Advisory fee payable 417,616
Distribution fee payable 340,083
Payable for capital stock redeemed 176,001
Accrued expenses and other liabilities 144,959
Total liabilities 6,848,197
NET ASSETS $511,821,257
COMPOSITION OF NET ASSETS
Capital stock, at par $ 32,419
Additional paid-in capital 398,715,949
Accumulated net investment loss (1,867,012)
Accumulated net realized gain 32,115,085
Net unrealized appreciation of investments 82,824,816
-------------
$511,821,257
CALCULATION OF MAXIMUM OFFERING PRICE
CLASS A SHARES
Net asset value and redemption price per share($141,181,326/
8,798,627 shares of capital stock issued and outstanding) $16.05
Sales charge-4.25% of public offering price .71
Maximum offering price $16.76
CLASS B SHARES
Net asset value and offering price per share($329,465,225/
20,999,277 shares of capital stock issued and outstanding) $15.69
CLASS C SHARES
Net asset value, redemption and offering price per share($41,174,706
/2,621,428 shares of capital stock issued and outstanding) $15.71
See notes to financial statements.
7
STATEMENT OF OPERATIONS
SIX MONTHS ENDED MAY 31, 1996 (UNAUDITED) ALLIANCE PREMIER GROWTH FUND
_______________________________________________________________________________
INVESTMENT INCOME
Dividends(net of foreign taxes withheld of $27,584) $2,145,222
Interest 364,680 $2,509,902
EXPENSES
Advisory fee 2,045,413
Distribution fee - Class A 167,389
Distribution fee - Class B 1,387,926
Distribution fee - Class C 150,247
Transfer agency 290,808
Administrative 71,233
Registration 61,896
Custodian 58,922
Audit and legal 50,010
Amortization of organization expenses 32,208
Printing 24,475
Directors' fees 12,516
Taxes 9,709
Miscellaneous 14,162
Total expenses 4,376,914
Net investment loss (1,867,012)
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on investments 32,403,494
Net change in unrealized appreciation of investments 22,281,631
Net gain on investments 54,685,125
NET INCREASE IN NET ASSETS FROM OPERATIONS $52,818,113
See notes to financial statements.
8
STATEMENT OF CHANGES IN NET ASSETS ALLIANCE PREMIER GROWTH FUND
_______________________________________________________________________________
SIX MONTHS ENDED
MAY 31,1996 YEAR ENDED
(UNAUDITED) NOV. 30,1995
------------- -------------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment loss $ (1,867,012) $ (1,841,781)
Net realized gain on investments 32,403,494 29,212,645
Net change in unrealized appreciation of
investments 22,281,631 61,872,933
Net increase in net assets from operations 52,818,113 89,243,797
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net realized gain on investments
Class A (5,922,043) (2,048,903)
Class B (19,714,783) (8,195,775)
Class C (1,909,603) (420,556)
CAPITAL STOCK TRANSACTIONS
Net increase 155,416,656 70,088,278
Total increase 180,688,340 148,666,841
NET ASSETS
Beginning of year 331,132,917 182,466,076
End of period $511,821,257 $331,132,917
See notes to financial statements.
9
NOTES TO FINANCIAL STATEMENTS
MAY 31, 1996 (UNAUDITED) 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 currently sold without an initial or contingent
deferred sales charge. Class C shares purchased on or after July 1, 1996, are
subject to a contingent deferred sales charge of 1% on redemptions made within
the first year after purchase. All three classes of shares have identical
voting, dividend, liquidation and other rights, and the same terms and
conditions except that each class bears different distribution expenses and has
exclusive voting rights with respect to its distribution plan. The 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.
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, 1996. Pursuant to the advisory agreement, the Fund paid $71,233 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, 1996. The Fund
compensates Alliance Fund Services, Inc. (a wholly-owned subsidiary of the
10
ALLIANCE PREMIER GROWTH FUND
_______________________________________________________________________________
Adviser) under a Transfer Agency Agreement for providing personnel and
facilities to perform transfer agency services for the Fund. Such compensation
amounted to $212,892 for the six months ended May 31, 1996.
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 $2,010 from the sale of Class A shares and $83,560
in contingent deferred sales charges imposed upon redemptions by shareholders
of Class B shares for the six months ended May 31, 1996.
Brokerage commissions paid on securities transactions for the six months ended
May 31, 1996, amounted to $546,528, 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 $7,667,379 and $359,672, 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 $349,235,456 and $215,377,125, respectively, for the six months
ended May 31, 1996. There were no purchases or sales of U.S. Government or
government agency obligations for the six months ended May 31, 1996.
At May 31, 1996 the cost of securities for federal income tax purposes was
$423,394,867. Accordingly, gross unrealized appreciation of investments was
$85,010,348 and gross unrealized depreciation of investments was $2,505,204
resulting in net unrealized appreciation of $82,505,144.
NOTEE:ACQUISITION OF ALLIANCE COUNTERPOINT FUND
On March 22, 1996, the Fund acquired all of the assets and certain liabilities
of Alliance Counterpoint Fund ("Counterpoint") pursuant to a plan of
acquisition approved by the shareholders of the Fund on February 29, 1996. The
acquisition was accomplished by a tax-free exchange of 2,527,242 shares of the
Fund for 2,310,177 shares of Counterpoint on March 22, 1996. The aggregate net
assets of the Fund and Counterpoint immediately before the acquisition were
$417,543,018 and $38,613,769 (including unrealized appreciation of
$16,595,716), respectively. Immediately after the acquisition, the combined net
assets of the Fund amounted to $456,156,787.
11
NOTES TO FINANCIAL STATEMENTS (CONTINUED) 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:
<TABLE>
<CAPTION>
SHARES AMOUNT
------------------------------ --------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
MAY 31,1996 NOVEMBER 30, MAY 31,1996 NOVEMBER 30,
(UNAUDITED) 1995 (UNAUDITED) 1995
------------- ------------- -------------- --------------
<S> <C> <C> <C> <C>
CLASS A
Shares sold 2,642,302 2,089,549 $ 39,901,543 $ 29,939,297
Shares issued in reinvestment
of distributions 382,395 169,905 5,537,079 1,789,100
Shares issued in connection
with the acquisition of
Alliance Counterpoint Fund 2,358,660 -0- 19,714,212 -0-
Shares converted from
Class B to Class A 273,111 -0- 4,292,460 -0-
Shares redeemed (1,355,393) (841,979) (20,730,367) (10,952,691)
Net increase 4,301,075 1,417,475 $ 48,714,927 $ 20,775,706
CLASS B
Shares sold 6,678,251 5,397,522 $ 99,104,174 $ 75,559,108
Shares issued in reinvestment
of distributions 1,010,144 571,259 14,344,050 5,946,806
Shares issued in connection
with the acquisition of
Alliance Counterpoint Fund 122,630 -0- 1,653,071 -0-
Shares converted from
Class B to Class A (279,281) -0- (4,292,460) -0-
Shares redeemed (1,592,786) (3,304,696) (23,628,485) (41,887,940)
Net increase 5,938,958 2,664,085 $ 87,180,350 $ 39,617,974
CLASS C
Shares sold 1,710,980 941,434 $ 25,412,072 $ 13,348,558
Shares issued in reinvestment
of distributions 73,916 22,275 1,050,350 232,105
Shares issued in connection
with the acquisition of
Alliance Counterpoint Fund 45,952 -0- 650,770 -0-
Shares redeemed (516,232) (305,550) (7,591,813) (3,886,065)
Net increase 1,314,616 658,159 $ 19,521,379 $ 9,694,598
</TABLE>
12
FINANCIAL HIGHLIGHTS ALLIANCE PREMIER GROWTH FUND
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
CLASS A
---------------------------------------------------------------------
SEPTEMBER 28,
SIX MONTHS 1992(F)
ENDED YEAR ENDED NOVEMBER 30, TO
MAY 31,1996 ------------------------------------- NOVEMBER 30,
(UNAUDITED) 1995 1994 1993 1992
------------- ----------- ----------- ----------- ---------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $16.09 $11.41 $11.78 $10.79 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) (.03)(b) (.03) (.09) (.05) .01
Net realized and unrealized gain (loss)
on investments 1.26 5.38 (.28) 1.05 .78
Net increase (decrease) in net asset
value from operations 1.23 5.35 (.37) 1.00 .79
LESS: DISTRIBUTIONS
Dividends from net investment income -0- -0- -0- (.01) -0-
Distributions from net realized gains (1.27) (.67) -0- -0- -0-
Total dividends and distributions (1.27) (.67) -0- (.01) -0-
Net asset value, end of period $16.05 $16.09 $11.41 $11.78 $10.79
TOTAL RETURN
Total investment return based on net
asset value (a) 8.48% 49.95% (3.14)% 9.26% 7.90%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period(000's omitted) $141,181 $72,366 $35,146 $40,415 $4,893
Ratio of expenses to average net assets 1.63%(c) 1.75% 1.96% 2.18% 2.17%(c)(e)
Ratio of net investment income (loss)
to average net assets (.42)%(c) (.28)% (.67)% (.61)% .91%(c)(e)
Portfolio turnover rate 54% 114% 98% 68% -0-%
Average commission rate (d) $.0690 $ -0- $ -0- $ -0- $ -0-
</TABLE>
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
<TABLE>
<CAPTION>
CLASS B
---------------------------------------------------------------------
SEPTEMBER 28,
SIX MONTHS 1992(F)
ENDED YEAR ENDED NOVEMBER 30, TO
MAY 31,1996 ------------------------------------- NOVEMBER 30,
(UNAUDITED) 1995 1994 1993 1992
------------- ----------- ----------- ----------- ---------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $15.81 $11.29 $11.72 $10.79 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment loss (.08)(b) (.11) (.15) (.10) -0-
Net realized and unrealized gain (loss)
on investments 1.23 5.30 (.28) 1.03 .79
Net increase (decrease) in net asset
value from operations 1.15 5.19 (.43) .93 .79
LESS: DISTRIBUTIONS
Distributions from net realized gains (1.27) (.67) -0- -0- -0-
Net asset value, end of period $15.69 $15.81 $11.29 $11.72 $10.79
TOTAL RETURN
Total investment return based on net
asset value (a) 8.10% 49.01% (3.67)% 8.64% 7.90%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period(000's omitted) $329,465 $238,088 $139,988 $151,600 $19,941
Ratio of expenses to average net assets 2.31%(c) 2.43% 2.47% 2.70% 2.68%(c)(e)
Ratio of net investment income (loss)
to average net assets (1.07)%(c) (.95)% (1.19)% (1.14)% .35%(c)(e)
Portfolio turnover rate 54% 114% 98% 68% -0-%
Average commission rate (d) $.0690 $ -0- $ -0- $ -0- $ -0-
</TABLE>
See footnote summary on page 15.
14
ALLIANCE PREMIER GROWTH FUND
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
CLASS C
------------------------------------------------------
SIX MONTHS MAY 3,1993(G)
ENDED YEAR ENDED NOVEMBER 30, TO
MAY 31,1996 ------------------------ NOVEMBER 30,
(UNAUDITED) 1995 1994 1993
------------- ----------- ----------- -------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $15.82 $11.30 $11.72 $10.48
INCOME FROM INVESTMENT OPERATIONS
Net investment loss (.08)(b) (.08) (.09) (.05)
Net realized and unrealized gain (loss)
on investments 1.24 5.27 (.33) 1.29
Net increase (decrease) in net asset
value from operations 1.16 5.19 (.42) 1.24
LESS:DISTRIBUTIONS
Distributions from net realized gains (1.27) (.67) -0- -0-
Net asset value, end of period $15.71 $15.82 $11.30 $11.72
TOTAL RETURN
Total investment return based on net
asset value (a) 8.16% 48.96% (3.58)% 11.83%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period(000's omitted) $41,175 $20,679 $7,332 $3,899
Ratio of expenses to average net assets 2.30%(c) 2.42% 2.47% 2.79%(c)
Ratio of net investment loss to average
net assets (1.08)%(c) (.97)% (1.16)% (1.35)%(c)
Portfolio turnover rate 54% 114% 98% 68%
Average commission rate (d) $.0690 $ -0- $ -0- $ -0-
</TABLE>
(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) Based on average shares outstanding.
(c) Annualized.
(d) For fiscal years beginning on or after September 1, 1995, a fund is
required to disclose its average commission rate per share for trades on which
commissions are charged.
(e) 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.
(f) Commencement of operations.
(g) Commencement of distribution.
15
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
DANIEL V. PANKER, VICE PRESIDENT
EDMUND P. BERGAN, JR., SECRETARY
MARK D. GERSTEN, TREASURER & CHIEF FINANCIAL OFFICER
VINCENT S. NOTO, 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.
The financial information included therein is taken from the records of
the Fund without audit by independent accountants who do not express an opinion
thereon.
16
THE ALLIANCE FAMILY OF MUTUAL FUNDS
_______________________________________________________________________________
FIXED INCOME
Alliance Bond Fund
U.S. Government Portfolio
Corporate Bond Portfolio
Alliance Global Dollar Government Fund
Alliance Global Strategic Income Trust
Alliance Mortgage Securities Income Fund
Alliance Limited Maturity Government Fund
Alliance Multi-Market Strategy Trust
Alliance North American Government Income Trust
Alliance Short-Term Multi-Market Trust
Alliance Short-Term U.S. Government Fund
Alliance World Income Trust
TAX-FREE INCOME
Alliance Municipal Income Fund
California Portfolio
Insured California Portfolio
Insured National Portfolio
National Portfolio
New York Portfolio
Alliance Municipal Income Fund II
Arizona Portfolio
Florida Portfolio
Massachusetts Portfolio
Michigan Portfolio
Minnesota Portfolio
New Jersey Portfolio
Ohio Portfolio
Pennsylvania Portfolio
Virginia Portfolio
MONEY MARKET
AFD Exchange Reserves
GROWTH
The Alliance Fund
Alliance Global Small Cap Fund
Alliance Growth Fund
Alliance Premier Growth Fund
GROWTH & INCOME
Alliance Strategic Balanced Fund
Alliance Balanced Shares
Alliance Conservative Investors Fund
Alliance Growth & Income Fund
Alliance Growth Investors Fund
Alliance Income Builder Fund
Alliance Utility Income Fund
AGGRESSIVE GROWTH
Alliance Quasar Fund
Alliance Technology Fund
INTERNATIONAL
Alliance All-Asia Investment Fund
Alliance International Fund
Alliance New Europe Fund
Alliance Worldwide Privatization Fund
CLOSED-END FUNDS
Alliance All-Market Advantage Fund
Alliance Global Environment Fund
ACM Government Income Fund
ACM Government Opportunity Fund
ACM Government Securities Fund
ACM Government Spectrum Fund
ACM Managed Dollar Income Fund
ACM Managed Income Fund
ACM Municipal Securities Income Fund
Alliance World Dollar Government Fund
Alliance World Dollar Government Fund II
The Austria Fund
The Korean Investment Fund
The Spain Fund
The Southern Africa Fund
CASH MANAGEMENT SERVICES
ACM Institutional Reserves
Government Portfolio
Prime Portfolio
Tax-Free Portfolio
Trust Portfolio
Alliance Capital Reserves
Alliance Government Reserves
Alliance Insured Account
Alliance Money Reserves
Alliance Municipal Trust
California Portfolio
Connecticut Portfolio
Florida Portfolio
General Portfolio
New Jersey Portfolio
New York Portfolio
Virginia Portfolio
Alliance Treasury Reserves
Alliance Money Market Fund
Prime Portfolio
Government Portfolio
General Municipal Portfolio
17
ALLIANCE PREMIER GROWTH FUND, INC.
1345 Avenue of the Americas
New York, NY 10105
(800) 221-5672
ALLIANCE CAPITAL
INVESTING 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.
APGSR
