ALLIANCE
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PREMIER
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GROWTH FUND
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Annual Report
November 30, 1998
Alliance Capital[LOGO](R)
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LETTER TO SHAREHOLDERS Alliance Premier Growth Fund
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January 27, 1999
Dear Shareholder:
We are pleased to provide you with Alliance Premier Growth Fund's investment
results and market activity for the period ended November 30, 1998.
INVESTMENT RESULTS
As you can see from the table below, the Fund performed extremely well both
absolutely and relative to its appropriate benchmarks during the last six months
and for the full year ending November 30, 1998. The key reason for the Fund's
performance was that our stock selection was excellent in the context of a very
good market generally for large cap growth issues. Companies such as Dell
Computer Corp., Nokia Corp., Home Depot, Inc., Cisco Systems, Inc., Wal-Mart
Stores, Inc., Tyco International, Ltd. and AirTouch Communications, Inc. all had
gains at double market returns or better and helped to boost your Fund's
returns.
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INVESTMENT RESULTS*
Periods Ended November 30, 1998
Total Returns
6 Months 12 Months
------------ -------------
Alliance Premier
Growth Fund
Class A 9.13% 33.94%
Class B 8.76% 33.04%
Class C 8.70% 32.99%
S&P 500 Stock
Index 7.48% 23.68%
Russell 1000 Growth
Stock Index 12.17% 28.66%
* Total returns for the Fund are based on the net asset value of each class
of shares as of November 30, 1998. 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 benchmarks include the
reinvestment of any distributions paid during the period. Total return for
Advisor Class shares will differ due to different expenses associated with
that class. Past performance is no guarantee of future results.
The unmanaged S&P 500 Stock Index includes 500 U.S. stocks and is a common
measure of the performance of the overall U.S. stock market. The unmanaged
Russell 1000 Growth Stock Index represents the performance of 1000 of the
largest U.S. companies by market capitalization. An investor cannot invest
directly in the indices.
Additional investment results appear on page 3.
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ECONOMIC REVIEW
Over the last 12 months, the stock market has shown remarkable resiliency in the
face of a material slowdown in Asia and turmoil in the financial markets as a
result of adverse developments in Russia. Quality spreads in the bond markets
around the world have been adversely affected by the problems of Long Term
Capital Management (LTCM). LTCM is a highly leveraged hedge fund in which many
banks and investors became overly extended both as participants and through
employing similar arbitrage strategies themselves. It can be debated as to
whether or not the Federal Reserve should have helped bring about a rescue
effort for this hedge fund. However, the fact is that stability has returned to
the financial arena as a result of the Federal Reserve's quick response.
Accordingly, we can focus on the strong fundamentals of the underlying economy.
Economic growth is at a moderate pace and inflation is very low. The U.S.'s
leadership in the technology sector is permeating so many daily business and
consumer modes that profitability in this sector is high. The service sector
also continues to make gains. The importance of services to the U.S. economy is
one of the reasons the Asian crisis has not made a more serious dent in slowing
the U.S. economy. Certainly manufacturers in the export segment have been hurt,
but the number of companies affected has not been pervasive throughout the
economy.
As we look out into 1999, it would seem that Europe will show steady growth. It
is also hoped that Asia will not deteriorate further and may even exhibit the
first signs of recovery. We are, therefore, quite optimistic that 1999 will not
see the type of shock that affected the market in 1998. This should not be read,
however, to suggest stock market gains will be anything other than moderate.
Price to earnings (P/E) multiples are now in fairly high terri-
1
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Alliance Premier Growth Fund
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tory, which we consider to be justified, but the room for further enhancement
would seem to be limited. Accordingly, earnings growth must now carry the market
forward. In this sense, it is imperative that we find companies where we have
confidence in such earnings growth because the market is clearly unwilling to
reward the "have-nots," companies that do not possess such strong earnings
potential.
FUND STRATEGY
Alliance Premier Growth Fund seeks long-term growth by investing in many of the
premier U.S. companies that demonstrate world leadership positions. Our mandate
accordingly is very clear in terms of looking for companies with strong market
positions, excellent managements and the ability to grow revenues while also
paying attention to cost controls. We expect that over the foreseeable future,
these companies will be largely found in technology, health care and consumer
services and these will constitute areas of prime emphasis for the Fund.
However, we will always strive to be very price conscious in our selections in
order to maximize any potential gains.
We thank you for your continued interest and investment in the Alliance Premier
Growth Fund and look forward to reporting our progress to you as we enter the
next year.
Sincerely,
/s/ John D. Carifa
John D. Carifa
Chairman and President
/s/ Alfred Harrison
Alfred Harrison
Executive Vice President
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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.
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2
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INVESTMENT OBJECTIVE AND POLICIES Alliance Premier Growth Fund
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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
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NAV and SEC Total Returns as of November 30, 1998
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CLASS A SHARES
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Without With
Sales Charge Sales Charge
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One Year 33.94% 28.23%
Five Years 25.27% 24.19%
Since Inception* 23.27% 22.42%
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CLASS B SHARES
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Without With
Sales Charge Sales Charge
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One Year 33.04% 29.04%
Five Years 24.47% 24.47%
Since Inception* 22.52% 22.52%
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CLASS C SHARES
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Without With
Sales Charge Sales Charge
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One Year 32.99% 31.99%
Five Years 24.49% 24.49%
Since Inception* 24.10% 24.10%
SEC Total Returns as of the most recent quarter-end (September 30, 1998)
Class A Class B Class C
-------- --------- ---------
One Year 6.21% 6.20% 9.18%
Five Years 20.23% 20.53% 20.54%
Since Inception* 19.98% 20.12% 21.51%
The Fund's investment results represent average annual total returns. The NAV
and SEC returns reflect reinvestment of dividends and/or capital gains
distributions in additional shares, without (NAV) and with (SEC) the effect of
the 4.25% maximum front-end sales charge for Class A shares or applicable
contingent deferred sales charge for Class B shares (4% year 1, 3% year 2, 2%
year 3, 1% year 4); and for Class C shares (1% year 1). Returns for Class A
shares do not reflect the imposition of the 1-year 1% contingent deferred sales
charge for accounts over $1,000,000. Total return for Advisor Class shares will
differ due to different expenses associated with that class.
Past performance does not guarantee future results. Investment returns and
principal value will fluctuate so that an investor's shares, when redeemed, may
be worth more or less than their original cost.
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* Inception: 9/28/92, Class A and Class B; 5/3/93, Class C.
3
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Alliance Premier Growth Fund
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ALLIANCE PREMIER GROWTH FUND
GROWTH OF A $10,000 INVESTMENT
9/30/92* TO 11/30/98
[GRAPHIC OMITTED]
[The following information was depicted as a chart in the printed material]
Premier Growth Fund
Class A:
$34,831
S&P 500 Stock Index:
$32,107
Russell 1000
Growth Index:
$31,687
This chart illustrates the total value of an assumed $10,000 investment in
Alliance Premier Growth Fund Class A shares (from 9/30/92 to 11/30/98) as
compared to the performance of an appropriate broad-based index. The chart
reflects the deduction of the maximum 4.25% sales charge from the initial
$10,000 investment in the Fund and assumes the reinvestment of dividends and
capital gains. Performance for Class B, Class C and Advisor Class 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 & Poor's 500 Stock Index includes 500 U.S. stocks
and is a common measure of the performance of the overall U.S. stock market.
The unmanaged Russell 1000 Growth Index measures the performance of 1000
of the largest U.S. companies by market capitalization. These large-cap stocks
have a greater-than-average growth orientation.
When comparing Alliance Premier Growth Fund to the indices shown above,
you should note that no charges or expenses are reflected in the performance of
the indices.
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* Month-end nearest to Fund's Class A share inception date of 9/28/92.
4
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TEN LARGEST HOLDINGS
November 30, 1998 Alliance Premier Growth Fund
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COMPANY VALUE PERCENT OF NET ASSETS
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Nokia Corp. (ADR) $ 299,448,800 5.6%
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Dell Computer Corp. 288,153,950 5.4
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Cisco Systems, Inc. 273,861,872 5.1
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Home Depot, Inc. 263,197,400 4.9
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AirTouch Communications, Inc. 255,736,781 4.8
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Wal-Mart Stores, Inc. 234,462,875 4.4
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Pfizer, Inc. 228,663,812 4.3
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Tyco International, Ltd. 180,793,519 3.4
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EMC Corp. 177,081,250 3.3
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Federal Home Loan Mortgage Corp. 164,069,950 3.0
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$ 2,365,470,209 44.2%
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MAJOR PORTFOLIO CHANGES
Six Months Ended November 30, 1998
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SHARES*
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PURCHASES BOUGHT HOLDINGS 11/30/98
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AirTouch Communications, Inc. 1,672,500 4,471,900
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EMC Corp. 1,748,500 2,442,500
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Federal Home Loan Mortgage Corp. 1,919,800 2,711,900
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HBO & Co. 3,524,300 3,524,300
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Home Depot, Inc. 3,748,900 5,290,400
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Lucent Technologies, Inc. 1,264,600 1,391,600
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MCI WorldCom, Inc. 1,838,300 1,838,300
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Pfizer, Inc. 1,364,600 2,048,500
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Schering-Plough Corp. 1,072,300 1,370,000
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Wal-Mart Stores, Inc. 2,352,700 3,113,200
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SALES SOLD HOLDINGS 11/30/98
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Banc One Corp. 697,510 -0-
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Compaq Computer Corp. 1,173,400 -0-
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Ericsson (L.M.) Telephone Co. Cl.B (ADR) 1,821,980 -0-
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Federal National Mortgage Assn. 621,000 -0-
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Merck & Co., Inc. 385,400 132,100
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MGIC Investment Corp. 520,500 -0-
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Philip Morris Cos., Inc. 2,619,200 1,995,100
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Schlumberger, Ltd. 624,600 -0-
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United Healthcare Corp. 1,129,200 -0-
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Walt Disney Co. 872,300 -0-
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* Adjusted for stock splits and other corporate actions.
5
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PORTFOLIO OF INVESTMENTS
November 30, 1998 Alliance Premier Growth Fund
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Company Shares Value
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COMMON STOCKS-94.2%
TECHNOLOGY-29.6%
COMMUNICATION EQUIPMENT-11.1%
EMC Corp. (a) ............................. 2,442,500 $ 177,081,250
Lucent Technologies, Inc. ................. 1,391,600 119,764,575
Nokia Corp. (ADR) (b) ..................... 3,055,600 299,448,800
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596,294,625
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COMPUTER HARDWARE-6.4%
Dell Computer Corp. (a) ................... 4,738,400 288,153,950
International Business Machines Corp. ..... 318,200 52,503,000
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340,656,950
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COMPUTER SOFTWARE-3.7%
HBO & Co. ................................. 3,524,300 87,887,231
Microsoft Corp. (a) ....................... 896,700 109,397,400
--------------
197,284,631
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NETWORKING SOFTWARE-5.1%
Cisco Systems, Inc. (a) .................. 3,633,325 273,861,872
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SEMI-CONDUCTOR COMPONENTS-2.7%
Intel Corp. ............................... 1,339,900 144,206,738
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MISCELLANEOUS-0.6%
AMP, Inc. ................................. 648,400 31,366,350
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1,583,671,166
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CONSUMER SERVICES-25.8%
AIRLINES-6.0%
Continental Airlines,
Inc. (a) ............................... 1,563,000 55,193,437
Delta Airlines, Inc. ...................... 1,602,600 86,039,587
KLM Royal Dutch Air ....................... 1,376,482 38,885,617
Northwest Airlines Corp. Cl.A (a) ......... 2,157,400 54,069,838
UAL Corp. (a) ............................. 1,323,100 84,264,931
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318,453,410
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BROADCASTING & CABLE-6.3%
AirTouch Communications, Inc. (a) ......... 4,471,900 255,736,781
Tele-Communications, Inc. - Liberty
Media Group C1.A (a) ................... 2,062,412 83,140,984
--------------
338,877,765
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RETAIL-GENERAL MERCHANDISE-13.5%
Dayton Hudson Corp. ....................... 2,174,700 97,861,500
Home Depot, Inc. .......................... 5,290,400 263,197,400
Kohl's Corp. (a) .......................... 1,561,700 76,816,119
May Department Stores Co. ................. 800,800 48,298,250
Wal-Mart Stores, Inc. ..................... 3,113,200 234,462,875
--------------
720,636,144
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1,377,967,319
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FINANCE-15.0%
BANKING-REGIONAL-3.7%
BankAmerica Corp. ......................... 1,108,234 72,243,004
Fifth Third Bancorp ....................... 730,700 48,500,213
U.S. Bancorp .............................. 2,015,800 74,206,637
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194,949,854
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BROKERAGE & MONEY MANAGEMENT-0.8%
Morgan Stanley, Dean Witter and Co. ....... 651,535 45,444,566
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INSURANCE-1.4%
American International Group, Inc. ........ 467,637 43,957,878
Progressive Corp. ......................... 220,000 32,642,500
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76,600,378
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MORTGAGE BANKING-4.1%
Federal Home Loan Mortgage
Corp. .................................. 2,711,900 164,069,950
Washington Mutual, Inc. ................... 1,428,852 55,368,015
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219,437,965
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6
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Alliance Premier Growth Fund
================================================================================
Company Shares Value
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MISCELLANEOUS-5.0%
Associates First Capital Corp. Cl.A ....... 1,335,750 $ 104,021,531
MBNA Corp. ................................ 7,174,475 162,770,902
--------------
266,792,433
--------------
803,225,196
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HEALTH CARE-11.3%
DRUGS-10.1%
Bristol-Myers Squibb Co. .................. 658,800 80,744,175
Merck & Co., Inc. ......................... 132,100 20,458,988
Pfizer, Inc. .............................. 2,048,500 228,663,812
Schering-Plough Corp. ..................... 1,370,000 145,733,750
Warner-Lambert Co. ........................ 885,500 66,855,250
--------------
542,455,975
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MEDICAL SERVICES-1.2%
IMS Health, Inc. .......................... 956,900 63,514,237
--------------
605,970,212
--------------
CONSUMER STAPLES-4.4%
HOUSEHOLD PRODUCTS-0.9%
Colgate-Palmolive Co. ..................... 579,000 49,576,875
--------------
RETAIL-FOOD & DRUG-1.4%
Kroger Co. (a) ............................ 832,200 44,158,613
Rite Aid Corp. ............................ 669,800 31,061,975
--------------
75,220,588
--------------
TOBACCO-2.1%
Philip Morris Cos., Inc. .................. 1,995,100 111,600,906
--------------
236,398,369
--------------
Shares or
Principal
Amount
Company (000) Value
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MULTI INDUSTRY COMPANIES-3.4%
Tyco International, Ltd. .................. 2,747,100 180,793,519
--------------
CAPITAL GOODS-2.7%
ELECTRICAL EQUIPMENT-1.2%
General Electric Co. ...................... 695,900 62,978,950
--------------
MISCELLANEOUS-1.5%
United Technologies Corp. ................. 757,500 81,194,531
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144,173,481
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UTILITIES-2.0%
TELEPHONE UTILITY-2.0%
MCI WorldCom, Inc. (a) .................... 1,838,300 108,459,700
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Total Common Stocks
(cost $4,090,912,527)................... 5,040,658,962
--------------
SHORT-TERM INVESTMENT-5.4%
COMMERCIAL PAPER-5.4%
General Electric Capital Corp.5.40%,
12/01/98 (amortized cost $289,564,000).. $ 289,564 289,564,000
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TOTAL INVESTMENTS-99.6%
(cost $4,380,476,527)................... 5,330,222,962
Other assets less liabilities-0.4%......... 21,181,548
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NET ASSETS-100%............................ $5,351,404,510
==============
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(a) Non-income producing security.
(b) Country of origin--Finland.
Glossary:
ADR - American Depositary Receipt.
See notes to financial statements.
7
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
November 30, 1998 Alliance Premier Growth Fund
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<TABLE>
<S> <C>
ASSETS
Investments in securities, at value (cost $4,380,476,527)................................ $5,330,222,962
Cash .................................................................................... 94,106
Receivable for capital stock sold........................................................ 74,586,062
Dividends receivable..................................................................... 2,151,872
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Total assets............................................................................. 5,407,055,002
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LIABILITIES
Payable for capital stock redeemed....................................................... 27,888,052
Payable for investment securities purchased.............................................. 18,114,488
Advisory fee payable..................................................................... 4,139,480
Distribution fee payable................................................................. 3,183,568
Accrued expenses and other liabilities................................................... 2,324,904
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Total liabilities........................................................................ 55,650,492
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NET ASSETS.................................................................................. $5,351,404,510
==============
COMPOSITION OF NET ASSETS
Capital stock, at par.................................................................... $ 200,411
Additional paid-in capital............................................................... 4,281,624,356
Accumulated net realized gain on investments............................................. 119,833,308
Net unrealized appreciation of investments............................................... 949,746,435
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$5,351,404,510
==============
CALCULATION OF MAXIMUM OFFERING PRICE
Class A Shares
Net asset value and redemption price per share
($1,418,262,477 / 51,580,987 shares of capital stock issued and outstanding)........... $27.50
Sales charge--4.25% of public offering price............................................. 1.22
------
Maximum offering price................................................................... $28.72
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Class B Shares
Net asset value and offering price per share
($2,799,288,286 / 106,325,684 shares of capital stock issued and outstanding).......... $26.33
======
Class C Shares
Net asset value and offering price per share
($862,192,840 / 32,702,226 shares of capital stock issued and outstanding)............. $26.36
======
Advisor Class Shares
Net asset value, redemption and offering price per share
($271,660,907 / 9,802,082 shares of capital stock issued and outstanding).............. $27.71
======
</TABLE>
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See notes to financial statements.
8
<PAGE>
STATEMENT OF OPERATIONS
Year Ended November 30, 1998 Alliance Premier Growth Fund
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<TABLE>
<S> <C> <C>
INVESTMENT INCOME
Dividends (net of foreign taxes withheld of $476,381)...... $ 23,550,218
Interest................................................... 7,277,490 $ 30,827,708
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EXPENSES
Advisory fee............................................... 31,072,604
Distribution fee-Class A................................... 2,748,221
Distribution fee-Class B................................... 16,732,831
Distribution fee-Class C................................... 4,463,372
Transfer agency............................................ 5,857,901
Registration............................................... 1,272,229
Printing................................................... 547,500
Custodian.................................................. 309,753
Taxes...................................................... 249,216
Administrative............................................. 123,000
Audit and legal............................................ 101,948
Directors' fees............................................ 29,000
Miscellaneous.............................................. 98,962
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Total expenses............................................. 63,606,537
Less: expense offset arrangement (see Note B).............. (324,838)
--------------
Net expenses............................................... 63,281,699
--------------
Net investment loss........................................ (32,453,991)
--------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on investment transactions............... 130,077,346
Net change in unrealized appreciation of investments....... 675,313,803
--------------
Net gain on investments.................................... 805,391,149
--------------
NET INCREASE IN NET ASSETS FROM OPERATIONS.................... $ 772,937,158
==============
</TABLE>
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See notes to financial statements.
9
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS Alliance Premier Growth Fund
================================================================================
<TABLE>
<CAPTION>
Year Ended Year Ended
November, 30 November 30,
1998 1997
-------------- --------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment loss...................................... $ (32,453,991) $ (9,767,429)
Net realized gain on investment transactions............. 130,077,346 103,667,327
Net change in unrealized appreciation of investments..... 675,313,803 130,879,567
-------------- --------------
Net increase in net assets from operations............... 772,937,158 224,779,465
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net realized gain on investments
Class A................................................ (25,682,703) (10,426,403)
Class B................................................ (60,400,293) (25,045,493)
Class C................................................ (12,552,691) (3,698,398)
Advisor Class.......................................... (3,662,777) (115,497)
CAPITAL STOCK TRANSACTIONS
Net increase............................................. 3,217,836,041 638,313,131
-------------- --------------
Total increase........................................... 3,888,474,735 823,806,805
NET ASSETS
Beginning of year........................................ 1,462,929,775 639,122,970
-------------- --------------
End of year.............................................. $5,351,404,510 $1,462,929,775
============== ==============
</TABLE>
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See notes to financial statements.
10
<PAGE>
NOTES TO FINANCIAL STATEMENTS
November 30, 1998 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 diversified, open-end management investment company. The Fund offers
Class A, Class B, Class C and Advisor Class shares. Class A shares are sold with
a front-end sales charge of up to 4.25% for purchases not exceeding $1,000,000.
With respect to purchases of $1,000,000 or more, Class A shares redeemed within
one year of purchase will be subject to a contingent deferred sales charge of
1%. Class B shares are currently 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 purchased before July 11, 1998 will convert to Class A
shares six years after the end of the calendar month of purchase. Class B shares
purchased on or after July 11, 1998 will convert to Class A shares eight years
after the end of the calendar month of purchase. Class C shares are subject to a
contingent deferred sales charge of 1% on redemptions made within the first year
after purchase. Advisor Class shares are sold without an initial or contingent
deferred sales charge and are not subject to ongoing distribution expenses.
Advisor Class shares are offered to investors participating in fee-based
programs and to certain retirement plan accounts. All four 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 financial statements have been prepared in
conformity with generally accepted accounting principles which require
management to make certain estimates and assumptions that affect the reported
amounts of assets and liabilities in the financial statements and amounts of
income and expenses during the reporting period. Actual results could differ
from those estimates. The following is a summary of significant accounting
policies followed by the Fund.
1. Security Valuation
Portfolio securities traded on a national securities exchange or on a foreign
securities exchange (other than foreign securities exchanges whose operations
are similar to those of the United States over-the-counter market) are generally
valued at the last reported sales price or if no sale occurred, at the mean of
the closing bid and asked prices on that day. Readily marketable securities
traded in the over-the-counter market, securities listed on a foreign securities
exchange whose operations are similar to the U.S. over-the-counter market, and
securities listed on a national securities exchange whose primary market is
believed to be over-the-counter, are valued at the mean of the current bid and
asked prices. U.S. government and fixed income securities which mature in 60
days or less are valued at amortized cost, unless this method does not represent
fair value. Securities for which current market quotations are not readily
available are valued at their fair value as determined in good faith by, or in
accordance with procedures adopted by, the Board of Directors.
2. Currency Translation
Assets and liabilities denominated in foreign currencies and commitments under
forward exchange currency contracts are translated into U.S. dollars at the mean
of the quoted bid and asked price of such currencies against the U.S. dollar.
Purchases and sales of portfolio securities are translated into U.S. dollars at
the rates of exchange prevailing when such securities were acquired or sold.
Income and expenses are translated into U.S. dollars at rates of exchange
prevailing when accrued.
Net realized foreign currency gains and losses represent foreign exchange gains
and losses from sales and maturities of debt securities, currency gains and
losses realized between the trade and settlement dates on security transactions
and the difference between the amounts of dividends and interest recorded on the
Fund's books and the U.S. dollar equivalent amounts actually received or paid.
The Fund does not isolate the effect of fluctuations in foreign currency
exchange rates when determining the gain or loss upon the sale of equity
securities. Net currency gains and losses from valuing foreign currency
denominated assets and liabilities at period end exchange rates would be
reflected as a component of net unrealized appreciation of investments, and
foreign currency denominated assets and liabilities.
3. Taxes
It is the Fund's policy to meet the requirements of the Internal Revenue Code
applicable to regulated investment companies and to distribute all of its
investment
11
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued) Alliance Premier Growth Fund
================================================================================
company taxable income and net realized gains, if any, to shareholders.
Therefore, no provisions for federal income or excise taxes are required.
4. Investment Income and Investment Transactions
Dividend income is recorded on the ex-dividend date. Interest income is accrued
daily. Investment transactions are accounted for on the date the securities are
purchased or sold. The Fund accretes discount and amortizes premiums as
adjustments to interest income. Investment gains and losses are determined on
the identified cost basis.
5. Income and Expenses
All income earned and expenses incurred by the Fund are borne on a pro-rata
basis by each outstanding class of shares, based on the proportionate interest
in the Fund represented by the net assets of such class, except that the Fund's
Class B and Class C shares bear higher distribution and transfer agent fees than
Class A shares and the Advisory Class shares have no distribution fees.
6. Dividends and Distributions
Dividends and distributions to shareholders are recorded on the ex-dividend
date.
Income dividends and capital gains distributions are determined in accordance
with federal tax regulations and may differ from those determined in accordance
with generally accepted accounting principles. To the extent these differences
are permanent, such amounts are reclassified within the capital accounts based
on their federal tax basis treatment; temporary differences, do not require such
reclassification. During the current fiscal year, permanent differences,
primarily due to net investment loss, resulted in a net increase in accumulated
net investment loss and a corresponding decrease in accumulated net realized
gain on investments and additional paid-in capital. This reclassification had no
effect on net assets.
- --------------------------------------------------------------------------------
NOTE B: Advisory Fee and Other Transactions with Affiliates
Under the terms of an investment advisory agreement, the Fund pays Alliance
Capital Management L.P. (the "Adviser") an advisory fee equal to the annualized
rate of 1.00% of the Fund's average daily net assets up to $5 billion, .95% of
the next $2.5 billion of the Fund's average daily net assets, .90% of the next
$2.5 billion of the Fund's average daily net assets, and .85% of the Fund's
average daily net assets over $10 billion. Prior to November 1, 1998 the
effective advisory fee was 1% of average daily net assets of the Fund. Such fee
is accrued daily and paid monthly.
Pursuant to the advisory agreement, the Fund paid $123,000 to the Adviser
representing the cost of certain legal and accounting services provided to the
Fund by the Adviser for the year ended November 30, 1998.
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 $3,741,444 for the year ended November 30, 1998.
In addition, for the year ended November 30, 1998, the Fund's expenses were
reduced by $324,838 under an expense offset arrangement with Alliance Fund
Services. Transfer agency fees reported in the statement of operations exclude
these credits.
Alliance Fund Distributors, Inc. (the "Distributor"), a wholly-owned subsidiary
of the Adviser, serves as the Distributor of the Fund's shares. The Distributor
received front-end sales charges of $705,099 from the sale of Class A shares and
$19,393, $2,270,709 and $244,886 in contingent deferred sales charges imposed
upon redemptions by shareholders of Class A, Class B and Class C shares,
respectively, for the year ended November 30, 1998.
Brokerage commissions paid on investment transactions for the year ended
November 30, 1998, amounted to $6,503,665, of which $13,500 was paid to Pershing
Division of Donaldson, Lufkin & Jenrette Securities Corp., an affiliate of the
Adviser and $27,000 was paid to Donaldson, Lufkin & Jenrette Securities Corp.,
directly.
12
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued) Alliance Premier Growth Fund
================================================================================
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 the average daily net assets attributable to Class A shares and
1% of the average daily net assets attributable to both Class B and Class C
shares. There is no distribution fee on the Advisor Class shares. The fees are
accrued daily and paid monthly. The Agreement provides that the Distributor will
use such payments in their entirety for distribution assistance and promotional
activities. The Distributor has incurred expenses in excess of the distribution
costs reimbursed by the Fund in the amount of $74,504,527 and $6,642,426 for
Class B and Class 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
and U.S. government securities) aggregated $5,071,730,079 and $2,390,822,704,
respectively, for the year ended November 30, 1998. There were purchases of
$175,938,398 and sales of $63,604,879 of U.S. government and government agency
obligations for the year ended November 30, 1998.
At November 30, 1998 the cost of investments for federal income tax purposes was
$4,387,476,434. Gross unrealized appreciation of investments was $1,030,898,613
and gross unrealized depreciation of investments was $88,152,085 resulting in
net unrealized appreciation of $942,746,528.
- --------------------------------------------------------------------------------
NOTE E: Capital Stock
There are 12,000,000,000 shares of $0.001 par value capital stock authorized,
divided into four classes, designated Class A, Class B, Class C and Advisor
Class shares. Each Class consists of 3,000,000,000 authorized shares.
Transactions in capital stock were as follows:
<TABLE>
<CAPTION>
--------------------------------- ---------------------------------
SHARES AMOUNT
--------------------------------- ---------------------------------
Year Ended Year Ended Year Ended Year Ended
November 30, November 30, November 30, November 30,
1998 1997 1998 1997
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
Class A
Shares sold....................... 56,476,036 10,222,249 $1,405,838,706 $ 212,359,400
Shares issued in reinvestment of
distributions.................. 1,121,642 538,004 22,887,704 8,771,167
Shares converted from Class B..... 1,419,064 1,665,278 34,681,201 33,372,081
Shares redeemed................... (24,392,132) (5,085,060) (606,086,880) (100,132,948)
-------------- -------------- -------------- --------------
Net increase...................... 34,624,610 7,340,471 $ 857,320,731 $ 154,369,700
============== ============== ============== ==============
Class B
Shares sold....................... 74,810,864 22,054,486 $1,807,421,381 $ 438,050,160
Shares issued in reinvestment of
distributions.................. 2,894,527 1,184,755 56,870,690 18,778,873
Shares converted to Class A....... (1,478,067) (1,719,123) (34,681,201) (33,372,081)
Shares redeemed................... (10,277,797) (4,213,179) (241,201,004) (80,849,390)
-------------- -------------- -------------- --------------
Net increase...................... 65,949,527 17,306,939 $1,588,409,866 $ 342,607,562
============== ============== ============== ==============
</TABLE>
13
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued) Alliance Premier Growth Fund
================================================================================
<TABLE>
<CAPTION>
--------------------------------- ---------------------------------
SHARES AMOUNT
--------------------------------- ---------------------------------
Year Ended Year Ended Year Ended Year Ended
November 30, November 30, November 30, November 30,
1998 1997 1998 1997
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
Class C
Shares sold....................... 40,451,101 6,050,953 $ 981,761,319 $ 120,803,565
Shares issued in reinvestment of
distributions.................. 593,076 140,395 11,712,445 2,228,162
Shares redeemed................... (16,699,091) (1,266,415) (402,173,143) (24,575,722)
-------------- -------------- -------------- --------------
Net increase...................... 24,345,086 4,924,933 $ 591,300,621 $ 98,456,005
============== ============== ============== ==============
Advisor Class
Shares sold....................... 11,134,237 2,430,024 $ 275,248,745 $ 45,316,504
Shares issued in reinvestment of
distributions.................. 170,458 7,030 3,504,261 114,668
Shares redeemed................... (3,921,835) (124,677) (97,948,183) (2,551,308)
-------------- -------------- -------------- --------------
Net increase...................... 7,382,860 2,312,377 $ 180,804,823 $ 42,879,864
============== ============== ============== ==============
</TABLE>
- --------------------------------------------------------------------------------
NOTE F: Bank Borrowing
A number of open-end mutual funds managed by the Adviser, including the Fund,
participate in a $750 million revolving credit facility (the "Facility")
intended to provide short-term financing if necessary, subject to certain
restrictions in connection with abnormal redemption activity. Commitment fees
related to the Facility are paid by the participating funds and are included in
miscellaneous expenses in the statement of operations. The Fund did not utilize
the Facility during the year ended November 30, 1998.
14
<PAGE>
FINANCIAL HIGHLIGHTS Alliance Premier Growth Fund
================================================================================
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Year
<TABLE>
<CAPTION>
--------------------------------------------------------------------
Class A
--------------------------------------------------------------------
Year Ended November 30,
--------------------------------------------------------------------
1998 1997 1996 1995 1994
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year ...................... $22.00 $17.98 $16.09 $11.41 $11.78
------ ------ ------ ------ ------
Income From Investment Operations
Net investment loss ..................................... (.15)(a) (.10)(a) (.04)(a) (.03) (.09)
Net realized and unrealized gain (loss) on investment
transactions ......................................... 7.11 5.20 3.20 5.38 (.28)
------ ------ ------ ------ ------
Net increase (decrease) in net asset value from
operations ........................................... 6.96 5.10 3.16 5.35 (.37)
------ ------ ------ ------ ------
Less: Distributions
Distributions from net realized gains ................... (1.46) (1.08) (1.27) (.67) -0-
------ ------ ------ ------ ------
Net asset value, end of year ............................ $27.50 $22.00 $17.98 $16.09 $11.41
====== ====== ====== ====== ======
Total Return
Total investment return based on net asset value (b) .... 33.94% 30.46% 21.52% 49.95% (3.14)%
Ratios/Supplemental Data
Net assets, end of year (000's omitted).................. $1,418,262 $373,099 $172,870 $72,366 $35,146
Ratio of expenses to average net assets ................. 1.59%(c) 1.57% 1.65% 1.75% 1.96%
Ratio of net investment loss to average net assets ...... (.59)% (.52)% (.27)% (.28)% (.67)%
Portfolio turnover rate ................................. 82% 76% 95% 114% 98%
</TABLE>
- --------------------------------------------------------------------------------
See footnote summary on page 18.
15
<PAGE>
FINANCIAL HIGHLIGHTS (continued) Alliance Premier Growth Fund
================================================================================
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Year
<TABLE>
<CAPTION>
--------------------------------------------------------------------
Class B
--------------------------------------------------------------------
Year Ended November 30,
--------------------------------------------------------------------
1998 1997 1996 1995 1994
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year ...................... $21.26 $17.52 $15.81 $11.29 $11.72
------ ------ ------ ------ ------
Income From Investment Operations
Net investment loss ..................................... (.30)(a) (.23)(a) (.14)(a) (.11) (.15)
Net realized and unrealized gain (loss) on investment
transactions ......................................... 6.83 5.05 3.12 5.30 (.28)
------ ------ ------ ------ ------
Net increase (decrease) in net asset value from
operations ........................................... 6.53 4.82 2.98 5.19 (.43)
------ ------ ------ ------ ------
Less: Distributions
Distributions from net realized gains ................... (1.46) (1.08) (1.27) (.67) -0-
------ ------ ------ ------ ------
Net asset value, end of year ............................ $26.33 $21.26 $17.52 $15.81 $11.29
====== ====== ====== ====== ======
Total Return
Total investment return based on net asset value (b) .... 33.04% 29.62% 20.70% 49.01% (3.67)%
Ratios/Supplemental Data
Net assets, end of year (000's omitted) ................. $2,799,288 $858,449 $404,137 $238,088 $139,988
Ratio of expenses to average net assets ................. 2.28%(c) 2.25% 2.32% 2.43% 2.47%
Ratio of net investment loss to average net assets ...... (1.27)% (1.20)% (.94)% (.95)% (1.19)%
Portfolio turnover rate ................................. 82% 76% 95% 114% 98%
</TABLE>
- --------------------------------------------------------------------------------
See footnote summary on page 18.
16
<PAGE>
Alliance Premier Growth Fund
================================================================================
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Year
<TABLE>
<CAPTION>
--------------------------------------------------------------------
Class C
--------------------------------------------------------------------
Year Ended November 30,
--------------------------------------------------------------------
1998 1997 1996 1995 1994
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year ...................... $21.29 $17.54 $15.82 $11.30 $11.72
------ ------ ------ ------ ------
Income from Investment Operations
Net investment loss ..................................... (.31)(a) (.24)(a) (.14)(a) (.08) (.09)
Net realized and unrealized gain (loss) on investment
transactions ......................................... 6.84 5.07 3.13 5.27 (.33)
------ ------ ------ ------ ------
Net increase (decrease) in net asset value from
operations ........................................... 6.53 4.83 2.99 5.19 (.42)
------ ------ ------ ------ ------
Less: Distributions
Distributions from net realized gains ................... (1.46) (1.08) (1.27) (.67) -0-
------ ------ ------ ------ ------
Net asset value, end of year ............................ $26.36 $21.29 $17.54 $15.82 $11.30
====== ====== ====== ====== ======
Total Return
Total investment return based on net asset value (b) .... 32.99% 29.64% 20.76% 48.96% (3.58)%
Ratios/Supplemental Data
Net assets, end of year (000's omitted) ................. $862,193 $177,923 $60,194 $20,679 $7,332
Ratio of expenses to average net assets ................. 2.28%(c) 2.24% 2.32% 2.42% 2.47%
Ratio of net investment loss to average net assets ...... (1.30)% (1.22)% (.94)% (.97)% (1.16)%
Portfolio turnover rate ................................. 82% 76% 95% 114% 98%
</TABLE>
- --------------------------------------------------------------------------------
See footnote summary on page 18.
17
<PAGE>
FINANCIAL HIGHLIGHTS (continued) Alliance Premier Growth Fund
================================================================================
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
<TABLE>
<CAPTION>
----------------------------------------
ADVISOR CLASS
----------------------------------------
October 2,
1996(d)
Year Ended November 30, to
------------------------- November 30,
1998 1997 1996
---------- ----------- -----------
<S> <C> <C> <C>
Net asset value, beginning of period...................... $22.10 $17.99 $15.94
------ ------ ------
Income from Investment Operations
Net investment loss (a)................................... (.07) (.06) (.01)
Net realized and unrealized gain on investment
transactions........................................... 7.14 5.25 2.06
------ ----- ------
Net increase in net asset value from
operations............................................. 7.07 5.19 2.05
------ ----- ------
Less: Distributions
Distributions from net realized gains..................... (1.46) (1.08) -0-
------ ----- ------
Net asset value, end of period............................ $27.71 $22.10 $17.99
====== ====== ======
Total Return
Total investment return based on net asset value (b)...... 34.31% 30.98% 12.86%
Ratios/Supplemental Data
Net assets, end of period (000's omitted)................. $271,661 $53,459 $1,922
Ratio of expenses to average net assets................... 1.26%(c) 1.25% 1.50%(e)
Ratio of net investment loss to average net assets........ (.28)% (.28)% (.48)%(e)
Portfolio turnover rate................................... 82% 76% 95%
</TABLE>
- --------------------------------------------------------------------------------
(a) Based on average shares oustanding.
(b) Total investment return is calculated assuming an initial investment made
at the net asset value at the beginning of the period, reinvestment of all
dividends and distributions at net asset value during the period, and
redemption on the last day of the period. Initial sales charges or
contingent deferred sales charges are not reflected in the calculation of
total investment return. Total investment return calculated for a period
of less than one year is not annualized.
(c) Ratio reflects expenses grossed up for expense offset arrangement with the
Transfer Agent. For the year ended November 30, 1998, the ratios of
expenses to average net assets were 1.58%, 2.27%, 2.27% and 1.25% for
Class A, B, C and Advisor Class shares, respectively.
(d) Commencement of distribution.
(e) Annualized.
18
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS Alliance Premier Growth Fund
================================================================================
To the Board of Directors and Shareholders of
Alliance Premier Growth Fund, Inc.
In our opinion, the accompanying statement of assets and liabilities, including
the portfolio of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Alliance Premier Growth Fund, Inc.
(the "Fund") at November 30, 1998, the results of its operations for the year
then ended, the changes in its net assets for each of the two years in the
period then ended and the financial highlights for each of the periods
indicated, 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, 1998 by correspondence with the custodian and brokers, provide a
reasonable basis for the opinion expressed above.
PricewaterhouseCoopers LLP
New York, New York
January 8, 1999
TAX INFORMATION (UNAUDITED)
================================================================================
In order to meet certain requirements of the Internal Revenue Code we are
advising you that $39,891,415 and $55,319,801 of the capital gain distributions
paid by the Fund during the fiscal year November 30, 1998 are subject to the
maximum tax rates of 28% and 20% respectively. Shareholders should not use the
above information to prepare their tax returns. The information necessary to
complete your income tax returns will be included with your Form 1099 DIV which
will be sent to you separately in January 1999.
19
<PAGE>
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)
Donald J. Robinson (1)
OFFICERS
Alfred Harrison, Executive Vice President
Kathleen A. Corbet, Senior Vice President
Thomas J. Bardong, 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
PricewaterhouseCoopers 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.
20
<PAGE>
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 High Yield Fund
Alliance Mortgage Securities Income Fund
Alliance Limited Maturity Government Fund
Alliance Multi-Market Strategy Trust
Alliance North American Government Income Trust
Alliance Short-Term U.S. Government Fund
Tax-Free Income
Alliance Municipal Income Fund
California Portfolio
Insured California Portfolio
Insured National Portfolio
National Portfolio
New York Portfolio
Alliance Municipal Income Fund II
Arizona Portfolio
Florida Portfolio
Massachusetts Portfolio
Michigan Portfolio
Minnesota Portfolio
New Jersey Portfolio
Ohio Portfolio
Pennsylvania Portfolio
Virginia Portfolio
Money Market
AFD Exchange Reserves
Growth
The Alliance Fund
Alliance Global Environment Fund
Alliance Growth Fund
Alliance Premier Growth Fund
Alliance/Regent Sector Opportunity Fund
Select Investors Series - Premier Portfolio
Growth & Income
Alliance Balanced Shares
Alliance Conservative Investors Fund
Alliance Growth & Income Fund
Alliance Growth Investors Fund
Alliance Real Estate Investment Fund
Alliance Utility Income Fund
Aggressive Growth
Alliance Global Small Cap Fund
Alliance Quasar Fund
Alliance Technology Fund
International
Alliance All-Asia Investment Fund
Alliance Greater China '97 Fund
Alliance International Fund
Alliance International Premier Growth Fund
Alliance New Europe Fund
Alliance Worldwide Privatization Fund
Institutional
Premier Growth
Quasar
Real Estate Investment
Closed-End Funds
Alliance All-Market Advantage Fund
ACM Government Income Fund
ACM Government Opportunity Fund
ACM Government Securities Fund
ACM Government Spectrum Fund
ACM Managed Dollar Income Fund
ACM Managed Income Fund
ACM Municipal Securities Income Fund
Alliance World Dollar Government Fund
Alliance World Dollar Government Fund II
The Austria Fund
The Korean Investment Fund
The Spain Fund
The Southern Africa Fund
Cash Management Services
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
Massachusetts Portfolio
New Jersey Portfolio
New York Portfolio
Virginia Portfolio
Alliance Treasury Reserves
Alliance Money Market Fund
Prime Portfolio
Government Portfolio
General Municipal Portfolio
21
<PAGE>
(This page left intentionally blank.)
<PAGE>
(This page left intentionally blank.)
<PAGE>
ALLIANCE PREMIER GROWTH FUND
1345 Avenue of the Americas
New York, NY 10105
(800) 221-5672
Alliance Capital[LOGO](R)
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
