----------------
LARGE CAP GROWTH
----------------
Alliance Premier
Growth Fund
Semi-Annual Report
May 31, 2000
[GRAPHIC OMITTED]
AllianceCapital [LOGO](R)
The Investment Professional's Choice
<PAGE>
Investment Products Offered
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o Are Not FDIC Insured
o May Lose Value
o Are Not Bank Guaranteed
---------------------------
<PAGE>
----------------------
LETTER TO SHAREHOLDERS
----------------------
LETTER TO SHAREHOLDERS
July 14, 2000
Dear Shareholder:
This report provides you with the performance and market activity for Alliance
Premier Growth Fund (the "Fund") for the semi-annual reporting period ended May
31, 2000.
Investment Objective and Policies
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
The following table provides performance data for the Fund and its benchmarks as
represented by the Standard & Poor's ("S&P") 500 Stock Index and the Russell
1000 Growth Stock Index for the six- and 12-month periods ended May 31, 2000.
INVESTMENT RESULTS*
Periods Ended May 31, 2000
-------------------
Total Returns
-------------------
6 Months 12 Months
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Alliance Premier
Growth Fund
Class A 7.67% 23.10%
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Class B 7.29% 22.26%
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Class C 7.30% 22.26%
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Total Returns
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6 Months 12 Months
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S&P 500
Stock Index 2.90% 10.47%
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Russell 1000
Growth Stock
Index 6.97% 24.99%
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* The Fund's investment results are total returns for the periods shown and
are based on the net asset value of each class of shares as of May 31,
2000. 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 include the
reinvestment of any distributions paid during each period. 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 contains those securities in
the Russell 1000 Stock Index with a greater-than-average growth
orientation. The unmanaged Russell 1000 Stock Index is comprised of 1000
of the largest capitalized companies that are traded in the United States.
An investor cannot invest directly in an index and its results are not
indicative of the performance for any specific investment, including
Alliance Premier Growth Fund.
Additional investment results appear on pages 4-7.
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ALLIANCE PREMIER GROWTH FUND o 1
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----------------------
LETTER TO SHAREHOLDERS
----------------------
For both the six- and 12-month periods ended May 31, 2000, the Fund provided a
return well in excess of that of the S&P 500 Stock Index. For the more recent
six-month period, the Fund outperformed the Russell 1000 Growth Index. However,
the Fund modestly underperformed the Russell 1000 Growth Stock Index over the
12-month period. Outperformance versus the S&P 500 Stock Index for the year
overall was attributable to a strong appreciation in selected technology stocks,
high-growth telecommunication suppliers and service companies, media and
broadcasting firms and brokerage stocks. Underperformance versus the Russell
1000 Growth Stock Index was attributed primarily to the deliberate decision to
underweight the portfolio in high-flying technology stocks during the final
months of 1999 and the first quarter of 2000 as the technology-heavy Russell
experienced historically high valuations.
Economic Review
The strong rally in technology stocks continued to fuel the market throughout
the first quarter of 2000, led primarily by "new" technology companies more
closely tied to the Internet. As a result, there was a strong divergence between
the technology-heavy Russell 1000 Growth Index and the S&P 500 Stock Index
which, in our judgement, more accurately reflects the broader U.S. economy.
Pharmaceutical stocks continued to lag in performance, laboring under the
psychological cloud of adverse federal legislation. Although the NASDAQ market
declined in the final month of the quarter, for much of the period it continued
to be pushed higher by speculative pressure. Outside of the disparity in
valuations, the economic fundamentals remained very strong across all industries
and the general macroeconomic environment remained very favorable.
As shareholders have come to expect, during periods of market euphoria, or what
we determine to be speculative fervor, we continued to "tone down" the portfolio
by increasing diversification, trimming the technology high-fliers and generally
selling names which we felt had gotten ahead of underlying fundamentals on a
price basis. Also, as shareholders have come to expect, we sought to take
advantage of areas in the market where undue despair presented opportunities,
i.e., health care and financials. The underlying principle governing the
portfolio structure remains marrying fundamentals with price considerations.
Review of Investment Strategy
Alliance Premier Growth Fund seeks long-term growth by investing in many of the
premier U.S. companies that demonstrate world leadership positions. We are
continuing to stay the course with an optimistic bias, but remain extremely
price conscious when looking at one stock against another. Our own answer to the
dilemma of the bifurcation in values between the narrow leadership group and the
broader market is to adopt what admittedly some could say is a compromise
position. We are not as heavily invested in the growth favorites, such as
technology, to the extent that some benchmarks would dictate. We are continuing
to run the Fund's portfolio with a broad mix of stocks. We believe a middle road
is the correct path given our positive
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2 o ALLIANCE PREMIER GROWTH FUND
<PAGE>
----------------------
LETTER TO SHAREHOLDERS
----------------------
John D. [PHOTO]
Carifa
Alfred [PHOTO]
Harrison
Portfolio Manager, Alfred Harrison is Vice Chairman of Alliance Capital with
over 39 years of investment experience.
feeling on fundamentals but some discomfort with the extremes of market price
discrepancies. As always, we will continue to make individual decisions as best
we see the marriage of fundamentals and price on all stocks in the portfolio at
each point of the market's gyrations.
Thank you for your continued interest and investment in Alliance Premier Growth
Fund. We look forward to reporting to you on market activity and the Fund's
investment results in the future.
Sincerely,
/s/ John D. Carifa
John D. Carifa
Chairman and President
/s/ Alfred Harrison
Alfred Harrison
Executive Vice President
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ALLIANCE PREMIER GROWTH FUND o 3
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PERFORMANCE UPDATE
------------------
PERFORMANCE UPDATE
ALLIANCE PREMIER GROWTH FUND
GROWTH OF A $10,000 INVESTMENT
9/30/92* TO 5/31/00
[The following table was depicted as a mountain chart in the printed material.]
[PLOT POINTS TO COME]
[GRAPHIC]
Alliance Premier Growth Fund Class A: $49,928
Russell 1000 Growth Stock Index: $44,571
S&P 500 Stock Index: $39,939
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 5/31/00) as
compared to the performance of appropriate broad-based indices. 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
these 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 ("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 contains those securities in the
Russell 1000 Stock Index with a greater-than-average growth orientation. The
unmanaged Russell 1000 Stock Index is comprised of 1000 of the largest
capitalized companies that are traded in the United States.
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. An investor cannot invest directly in an index and its results are not
indicative of any specific investment, including Alliance Premier Growth Fund.
* Closest month-end after Fund's Class A share inception date of 9/28/92.
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4 o ALLIANCE PREMIER GROWTH FUND
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PERFORMANCE UPDATE
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PERFORMANCE UPDATE
ALLIANCE PREMIER GROWTH FUND
HISTORY OF RETURNS
YEARLY PERIODS ENDED 5/31
[GRAPHIC]
[The following table was depicted as a bar chart in the printed material.]
Alliance Premier Growth Fund--Yearly Periods Ended 5/31
--------------------------------------------------------------------------------
Alliance Premier Russell 1000 Growth
Growth Fund Stock Index
--------------------------------------------------------------------------------
5/31/93* 11.29% 5.40%
5/31/94 5.22% 1.82%
5/31/95 16.97% 21.95%
5/31/96 35.62% 32.57%
5/31/97 29.61% 26.46%
5/31/98 38.40% 28.77%
5/31/99 27.07% 26.22%
5/31/00 23.10% 24.99%
Past performance in no guarantee of future results. The Fund's investment
results represent total returns for Class A shares and are based on the net
asset value. All fees and expenses related to the operation of the Fund have
been deducted. Returns for the Fund include the reinvestment of any
distributions paid during the period.
The unmanaged Russell 1000 Growth Stock Index contains those securities in the
Russell 1000 Stock Index with a greater-than-average growth orientation. The
unmanaged Russell 1000 Stock Index is comprised of 1000 of the largest
capitalized companies that are traded in the United States. An investor cannot
invest directly in an index and its results are not indicative of the
performance for any specific investment, including Alliance Premier Growth Fund.
* The Fund's return for the period ended 5/31/93 is from the Fund's
inception date of 9/28/92. The benchmark's return for the period ended
5/31/93 is from 9/30/92 through 5/31/93.
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ALLIANCE PREMIER GROWTH FUND o 5
<PAGE>
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PORTFOLIO SUMMARY
-----------------
PORTFOLIO SUMMARY
May 31, 2000 (unaudited)
INCEPTION DATE PORTFOLIO STATISTICS
(Class A shares) Assets ($mil): $19,659
9/28/92 Median Market Capitalization ($mil): $72,313
[The following tables were depicted as pie charts in the printed material.]
SECTOR BREAKDOWN
37.00% Technology [GRAPHIC]
24.51% Consumer Services
14.14% Finance
10.16% Healthcare
4.60% Multi-Industry Companies
3.45% Utilities
2.30% Energy
0.88% Capital Goods
0.82% Aerospace & Defense
0.67% Consumer Staples
0.26% Basic Industry
0.17% Consumer Manufacturing
1.04% Short-term
HOLDING TYPE
98.96% Equity [GRAPHIC]
1.04% Short-term securities
COUNTRY BREAKDOWN
85.43% United States [GRAPHIC]
6.42% United Kingdom
4.97% Finland
2.14% Canada
1.04% Short-term
All data as of May 31, 2000. The Fund's sector and country breakdowns and
holding types may vary over time. These breakdowns are expressed as a percentage
of total investments.
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6 o ALLIANCE PREMIER GROWTH FUND
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INVESTMENT RESULTS
------------------
INVESTMENT RESULTS
NAV AND SEC AVERAGE ANNUAL TOTAL RETURNS
AS OF MAY 31, 2000
Class A Shares
--------------------------------------------------------------------------------
Without Sales Charge With Sales Charge
1 Year 23.10% 17.87%
5 Years 30.64% 29.52%
Since Inception* 24.02% 23.32%
Class B Shares
--------------------------------------------------------------------------------
Without Sales Charge With Sales Charge
1 Year 22.26% 18.26%
5 Years 29.76% 29.76%
Since Inception* 23.25% 23.25%
Class C Shares
--------------------------------------------------------------------------------
Without Sales Charge With Sales Charge
1 Year 22.26% 21.26%
5 Years 29.76% 29.76%
Since Inception* 24.61% 24.61%
SEC AVERAGE ANNUAL TOTAL RETURNS
AS OF THE MOST RECENT QUARTER END (March 31, 2000)
Class A Class B Class C
--------------------------------------------------------------------------------
1 Year 20.51% 21.02% 24.02%
5 Years 34.05% 34.32% 34.32%
Since Inception* 25.15% 25.10% 26.70%
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 or applicable contingent
deferred sales charge for Class B (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 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 Date: 9/28/92, Class A and Class B; 5/3/93, Class C.
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ALLIANCE PREMIER GROWTH FUND o 7
<PAGE>
--------------------
TEN LARGEST HOLDINGS
--------------------
TEN LARGEST HOLDINGS
May 31, 2000 (unaudited)
Percent of
Company Value Net Assets
--------------------------------------------------------------------------------
Intel Corp. $1,179,967,687 6.0%
--------------------------------------------------------------------------------
Warner-Lambert Co. 1,133,881,775 5.8
--------------------------------------------------------------------------------
Nokia Corp. (ADR) 973,221,600 5.0
--------------------------------------------------------------------------------
Cisco Systems, Inc. 951,437,012 4.8
--------------------------------------------------------------------------------
Applied Materials, Inc. 902,960,650 4.6
--------------------------------------------------------------------------------
Vodafone AirTouch Plc (ADR) 805,901,431 4.1
--------------------------------------------------------------------------------
Tyco International, Ltd. 746,282,017 3.8
--------------------------------------------------------------------------------
MediaOne Group, Inc. 676,082,369 3.4
--------------------------------------------------------------------------------
EMC Corp. 594,740,706 3.0
--------------------------------------------------------------------------------
Citigroup, Inc. 582,382,828 3.0
--------------------------------------------------------------------------------
$8,546,858,075 43.5%
MAJOR PORTFOLIO CHANGES
Six Months Ended May 31, 2000 (unaudited)
----------------------------------
Shares*
----------------------------------
Purchases Bought Holdings 5/31/00
--------------------------------------------------------------------------------
Applied Materials, Inc. 9,191,000 10,813,900
--------------------------------------------------------------------------------
AT&T Wireless Group 18,125,500 18,125,500
--------------------------------------------------------------------------------
Intel Corp. 3,279,000 9,463,400
--------------------------------------------------------------------------------
MediaOne Group, Inc. 4,186,100 10,119,100
--------------------------------------------------------------------------------
Microsoft Corp. 4,832,300 8,853,400
--------------------------------------------------------------------------------
Nortel Networks Corp. 7,048,900 7,702,200
--------------------------------------------------------------------------------
Oracle Corp. 5,924,500 6,301,200
--------------------------------------------------------------------------------
Time Warner, Inc. 4,515,300 4,515,300
--------------------------------------------------------------------------------
Vodafone AirTouch Plc (ADR) 12,481,000 17,591,300
--------------------------------------------------------------------------------
Warner-Lambert Co. 4,190,700 9,284,600
--------------------------------------------------------------------------------
Sales Sold Holdings 5/31/00
--------------------------------------------------------------------------------
American International Group, Inc. 2,006,496 -0-
--------------------------------------------------------------------------------
Costco Wholesale Corp. 1,558,100 2,120,700
--------------------------------------------------------------------------------
Dell Computer Corp. 8,847,900 9,630,300
--------------------------------------------------------------------------------
Ford Motor Co. 4,313,200 -0-
--------------------------------------------------------------------------------
Morgan Stanley, Dean Witter & Co. 98,665 5,158,770
--------------------------------------------------------------------------------
Pfizer, Inc. 6,883,400 2,201,700
--------------------------------------------------------------------------------
Philip Morris Cos., Inc. 16,064,200 -0-
--------------------------------------------------------------------------------
Sprint Corp. 4,395,600 -0-
--------------------------------------------------------------------------------
Wal-Mart Stores, Inc. 5,000,800 -0-
--------------------------------------------------------------------------------
WorldCom, Inc. 2,509,600 -0-
--------------------------------------------------------------------------------
* Adjusted for stock splits.
--------------------------------------------------------------------------------
8 o ALLIANCE PREMIER GROWTH FUND
<PAGE>
------------------------
PORTFOLIO OF INVESTMENTS
------------------------
PORTFOLIO OF INVESTMENTS
May 31, 2000 (unaudited)
Company Shares Value
--------------------------------------------------------------------------------
Common Stocks-98.5%
Technology-36.8%
Communication Equipment-12.0%
Corning, Inc. .............................. 1,653,000 $ 319,752,188
EMC Corp.(a)................................ 5,113,300 594,740,706
Lucent Technologies, Inc. .................. 1,029,100 59,044,613
Nokia Corp. (ADR) (Finland)................. 18,715,800 973,221,600
Nortel Networks Corp. (Canada)(a)........... 7,702,200 418,325,737
---------------
2,365,084,844
---------------
Computer Hardware-3.0%
Dell Computer Corp.(a)...................... 9,630,300 415,306,688
Sun Microsystems, Inc.(a)................... 2,239,000 171,563,375
---------------
586,870,063
---------------
Computer Software-5.1%
Microsoft Corp.(a).......................... 8,853,400 553,890,837
Oracle Corp.(a)............................. 6,301,200 452,898,750
---------------
1,006,789,587
---------------
Internet-0.2%
Yahoo, Inc.(a).............................. 273,100 30,877,369
---------------
Networking Software-4.8%
Cisco Systems, Inc.(a)...................... 16,710,200 951,437,012
---------------
Semi-Conductor Capital Equipment-4.6%
Applied Materials, Inc.(a).................. 10,813,900 902,960,650
---------------
Semi-Conductor Components-7.1%
Intel Corp. ................................ 9,463,400 1,179,967,687
Texas Instruments, Inc. .................... 2,994,900 216,381,525
---------------
1,396,349,212
---------------
7,240,368,737
---------------
Consumer Services-24.4%
Airlines-4.2%
Continental Airlines, Inc. CI.B(a).......... 3,657,500 160,244,219
Delta Airlines, Inc. ....................... 1,602,300 82,418,306
KLM Royal Dutch Air(a)...................... 5,053,911 109,922,564
Northwest Airlines Corp. Cl.A(a)............ 6,120,600 174,054,563
UAL Corp. .................................. 5,681,000 292,571,500
---------------
819,211,152
---------------
Broadcasting & Cable-9.4%
AMFM, Inc.(a)............................... 3,495,300 236,806,575
AT&T Corp.-Liberty Media Group CI.A(a)...... 10,101,424 447,619,351
Cox Communications, Inc. Cl.A(a)............ 889,900 39,266,837
Viacom, Inc. Cl.B(a)........................ 5,128,985 317,997,070
Vodafone AirTouch Plc (ADR) (United Kingdom) 17,591,300 805,901,431
---------------
1,847,591,264
---------------
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ALLIANCE PREMIER GROWTH FUND o 9
<PAGE>
------------------------
PORTFOLIO OF INVESTMENTS
------------------------
Company Shares Value
--------------------------------------------------------------------------------
Cellular Communications-2.6%
AT&T Wireless Group(a)...................... 18,125,500 $ 517,709,594
---------------
Entertainment & Leisure-1.8%
Time Warner, Inc. .......................... 4,515,300 356,426,494
---------------
Retail-General Merchandise-6.4%
Costco Wholesale Corp.(a)................... 2,120,700 67,729,856
Gap, Inc. .................................. 8,560,850 300,164,803
Home Depot, Inc. ........................... 9,734,300 475,155,519
Kohl's Corp.(a)............................. 2,706,000 140,035,500
Lowe's Cos., Inc. .......................... 4,978,500 231,811,406
Tommy Hilfiger Corp.(a)..................... 5,562,700 39,286,569
---------------
1,254,183,653
---------------
4,795,122,157
---------------
Finance-14.1%
Banking-Money Center-4.1%
Chase Manhattan Corp. ...................... 2,994,600 223,659,188
Citigroup, Inc. ............................ 9,364,950 582,382,828
---------------
806,042,016
---------------
Banking-Regional-0.2%
Fifth Third Bancorp......................... 464,100 31,558,800
---------------
Brokerage & Money Management-2.5%
Goldman Sachs Group, Inc. .................. 1,624,000 119,465,500
Morgan Stanley, Dean Witter & Co. .......... 5,158,770 371,109,017
---------------
490,574,517
---------------
Mortgage Banking-2.8%
Federal Home Loan Mortgage Corp. ........... 11,933,200 531,027,400
Federal National Mortgage Assn. ............ 443,700 26,677,462
---------------
557,704,862
---------------
Miscellaneous-4.5%
Associates First Capital Corp. Cl.A......... 6,424,700 176,277,706
MBNA Corp. ................................. 15,948,230 444,556,911
The CIT Group, Inc. Cl.A.................... 14,195,080 259,947,403
---------------
880,782,020
---------------
2,766,662,215
---------------
Health Care-10.1%
Drugs-8.9%
Pfizer, Inc. ............................... 2,201,700 98,113,256
Pharmacia Corp. ............................ 3,513,791 182,497,520
Schering-Plough Corp. ...................... 6,808,865 329,378,845
Warner-Lambert Co. ......................... 9,284,600 1,133,881,775
---------------
1,743,871,396
---------------
Medical Products-0.0%
Medtronic, Inc. ............................ 260,000 13,422,500
---------------
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10 o ALLIANCE PREMIER GROWTH FUND
<PAGE>
------------------------
PORTFOLIO OF INVESTMENTS
------------------------
Company Shares Value
--------------------------------------------------------------------------------
Medical Services-1.2%
IMS Health, Inc. ........................... 6,104,500 $ 100,724,250
UnitedHealth Group, Inc. ................... 1,752,500 130,670,781
---------------
231,395,031
---------------
1,988,688,927
---------------
Multi-Industry Companies-4.6%
Honeywell International, Inc. .............. 2,808,962 153,615,109
Tyco International, Ltd. ................... 15,857,254 746,282,017
---------------
899,897,126
---------------
Utilities-3.4%
Telephone Utility-3.4%
MediaOne Group, Inc.(a)..................... 10,119,100 676,082,369
---------------
Energy-2.3%
International-2.3%
BP Amoco Plc (ADR) (United Kingdom)......... 8,291,672 450,859,665
---------------
Capital Goods-0.9%
Miscellaneous-0.9%
United Technologies Corp. .................. 2,834,300 171,298,006
---------------
Aerospace & Defense-0.8%
Aerospace-0.8%
General Motors Corp. Cl.H(a)................ 1,621,524 159,618,769
---------------
Consumer Staples-0.7%
Retail - Food & Drug-0.7%
Kroger Co.(a)............................... 6,552,400 130,228,950
---------------
Basic Industry-0.2%
Paper & Forest Products-0.2%
International Paper Co. .................... 1,477,800 51,445,912
---------------
Consumer Manufacturing-0.2%
Auto & Related-0.2%
General Motors Corp. ....................... 481,798 34,026,984
---------------
Total Common Stocks
(cost $17,417,782,393)................... 19,364,299,817
---------------
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ALLIANCE PREMIER GROWTH FUND o 11
<PAGE>
------------------------
PORTFOLIO OF INVESTMENTS
------------------------
Principal
Amount
Company (000) Value
--------------------------------------------------------------------------------
Short-Term Investments-1.0%
Commercial Paper-1.0%
General Electric Capital Corp.
6.78%, 6/01/00........................... $196,747 $ 196,747,000
---------------
Time Deposit-0.0%
State Street Euro Dollar
6.00%, 6/01/00........................... 6,216 6,216,000
---------------
Total Short-Term Investments
(amortized cost $202,963,000)............ 202,963,000
---------------
Total Investments-99.5%
(cost $17,620,745,393)................... 19,567,262,817
Other assets less liabilities-0.5%.......... 91,609,062
---------------
Net Assets-100%............................. $19,658,871,879
===============
(a) Non-income producing security.
Glossary:
ADR - American Depositary Receipt.
See notes to financial statements.
--------------------------------------------------------------------------------
12 o ALLIANCE PREMIER GROWTH FUND
<PAGE>
---------------------------------
STATEMENT OF ASSETS & LIABILITIES
---------------------------------
STATEMENT OF ASSETS & LIABILITIES
May 31, 2000 (unaudited)
<TABLE>
<S> <C>
Assets
Investments in securities, at value (cost $17,620,745,393) ............. $ 19,567,262,817
Receivable for investment securities sold .............................. 140,112,650
Receivable for capital stock sold ...................................... 49,489,503
Dividends and interest receivable ...................................... 7,728,953
----------------
Total assets ........................................................... 19,764,593,923
----------------
Liabilities
Payable for investment securities purchased ............................ 73,711,763
Advisory fee payable ................................................... 14,955,949
Payable for capital stock redeemed ..................................... 11,799,406
Distribution fee payable ............................................... 4,051,101
Accrued expenses and other liabilities ................................. 1,203,825
----------------
Total liabilities ...................................................... 105,722,044
----------------
Net Assets ............................................................. $ 19,658,871,879
================
Composition of Net Assets
Capital stock, at par .................................................. $ 567,129
Additional paid-in capital ............................................. 16,114,581,429
Net investment loss .................................................... (92,184,601)
Accumulated net realized gain on investments ........................... 1,689,390,498
Net unrealized appreciation of investments ............................. 1,946,517,424
----------------
$ 19,658,871,879
================
Calculation of Maximum Offering Price Class A Shares Net asset value and
redemption price per share
($5,432,865,061 / 150,605,089 shares of capital stock
issued and outstanding) ............................................. $36.07
Sales charge--4.25% of public offering price ........................... 1.60
------
Maximum offering price ................................................. $37.67
======
Class B Shares
Net asset value and offering price per share
($9,915,192,593 / 291,261,623 shares of capital stock
issued and outstanding) ............................................. $34.04
======
Class C Shares
Net asset value and offering price per share
($3,720,469,210 / 109,129,882 shares of capital stock
issued and outstanding) ............................................. $34.09
======
Advisor Class Shares
Net asset value, redemption and offering price per share
($590,345,015 / 16,132,873 shares of capital stock
issued and outstanding) ............................................. $36.59
======
</TABLE>
See notes to financial statements.
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ALLIANCE PREMIER GROWTH FUND o 13
<PAGE>
-----------------------
STATEMENT OF OPERATIONS
-----------------------
STATEMENT OF OPERATIONS
Six Months Ended May 31, 2000 (unaudited)
Investment Income
Dividends (net of foreign taxes withheld
of $906,264) ........................... $ 73,228,311
Interest .................................. 6,437,872 $ 79,666,183
---------------
Expenses
Advisory fee .............................. 83,999,172
Distribution fee - Class A ................ 8,352,116
Distribution fee - Class B ................ 46,786,984
Distribution fee - Class C ................ 17,385,259
Transfer agency ........................... 13,117,296
Printing .................................. 1,089,531
Custodian ................................. 443,953
Registration .............................. 359,230
Audit and legal ........................... 101,270
Administrative ............................ 64,500
Directors' fees ........................... 16,000
Miscellaneous ............................. 135,473
---------------
Total expenses ............................ 171,850,784
---------------
Net investment loss ....................... (92,184,601)
---------------
Realized and Unrealized Gain (Loss) on
Investments
Net realized gain on investment
transactions ........................... 1,714,581,033
Net change in unrealized
appreciation/depreciation of
investments ............................ (431,122,919)
---------------
Net gain on investments ................... 1,283,458,114
---------------
Net Increase in Net Assets from
Operations ............................. $ 1,191,273,513
===============
See notes to financial statements.
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14 o ALLIANCE PREMIER GROWTH FUND
<PAGE>
----------------------------------
STATEMENT OF CHANGES IN NET ASSETS
----------------------------------
STATEMENT OF CHANGES
IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
May 31, 2000 November 30,
(unaudited) 1999
---------------- ----------------
<S> <C> <C>
Increase (Decrease) in Net Assets
from Operations
Net investment loss ...................... $ (92,184,601) $ (146,127,175)
Net realized gain on investment
transactions .......................... 1,714,581,033 1,226,047,789
Net change in unrealized
appreciation/depreciation of
investments ........................... (431,122,919) 1,427,893,908
---------------- ----------------
Net increase in net assets from operations 1,191,273,513 2,507,814,522
Distributions to Shareholders from:
Net realized gain on investments
Class A ............................... (286,812,978) (32,516,709)
Class B ............................... (572,356,530) (67,526,095)
Class C ............................... (208,315,780) (20,765,712)
Advisor Class ......................... (30,625,953) (5,998,556)
Capital Stock Transactions
Net increase ............................. 3,686,619,119 8,146,678,528
---------------- ----------------
Total increase ........................... 3,779,781,391 10,527,685,978
Net Assets
Beginning of period ...................... 15,879,090,488 5,351,404,510
---------------- ----------------
End of period ............................ $ 19,658,871,879 $ 15,879,090,488
================ ================
</TABLE>
See notes to financial statements.
--------------------------------------------------------------------------------
ALLIANCE PREMIER GROWTH FUND o 15
<PAGE>
-----------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
NOTES TO FINANCIAL STATEMENTS
May 31, 2000 (unaudited)
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 may 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 accounting principles generally accepted in the United States,
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, on a foreign
securities exchange (other than foreign securities exchanges whose operations
are similar to those of the United States over-the-counter market) or on The
Nasdaq Stock Market, Inc. 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 (but
excluding securities traded on The Nasdaq Stock Market, Inc.), 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.
--------------------------------------------------------------------------------
16 o ALLIANCE PREMIER GROWTH FUND
<PAGE>
-----------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
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 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 accounting principles generally accepted in the United States. To the
extent these differences are permanent, such amounts are reclassified within the
capital accounts based on
--------------------------------------------------------------------------------
ALLIANCE PREMIER GROWTH FUND o 17
<PAGE>
-----------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
their federal tax basis treatment; temporary differences, do not require such
reclassification.
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 $64,500 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, 2000.
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 $8,845,808 for the six months ended May 31, 2000.
For the six months ended May 31, 2000, the Fund's expenses were reduced by
$655,836 under an expense offset arrangement with Alliance Fund Services, Inc.
Alliance Fund Distributors, Inc. (the "Distributor"), a wholly-owned subsidiary
of the Adviser, serves as the Distributor of the Fund's shares. The Distributor
has advised the Fund that it has received front-end sales charges of $1,153,338
from the sale of Class A shares and $169,591, $10,305,719 and $959,619 in
contingent deferred sales charges imposed upon redemptions by shareholders of
Class A, Class B and Class C shares, respectively, for the six months ended May
31, 2000.
Brokerage commissions paid on investment transactions for the six months ended
May 31, 2000, amounted to $23,745,988, 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, and of which $82,530 was
paid 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 distribution and servicing fees 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 are no distribution and servicing fees 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 assis-
--------------------------------------------------------------------------------
18 o ALLIANCE PREMIER GROWTH FUND
<PAGE>
-----------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
tance and promotional activities. The Distributor has advised the Fund that it
has incurred expenses in excess of the distribution costs reimbursed by the Fund
in the amount of $249,222,828 and $14,202,629 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 $14,562,498,985 and $12,355,666,792,
respectively, for the six months ended May 31, 2000. There were purchases of
$188,438,623 and no sales of U.S. government and government agency obligations
for the six months ended May 31, 2000.
At May 31, 2000 the cost of investments for federal income tax purposes was
substantially the same as the cost for financial reporting purposes.
Accordingly, gross unrealized appreciation of investments was $2,899,363,012 and
gross unrealized depreciation of investments was $952,845,588 resulting in net
unrealized appreciation of $1,946,517,424.
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
----------------------------------- -----------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
May 31, 2000 November 30, May 31, 2000 November 30,
(unaudited) 1999 (unaudited) 1999
-------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A
Shares sold 104,787,681 137,931,934 $ 3,779,346,378 $ 4,530,547,629
---------------------------------------------------------------------------------------------
Shares issued in
reinvestment
of distributions 7,915,867 1,094,113 269,694,758 30,233,841
---------------------------------------------------------------------------------------------
Shares converted
from Class B 1,525,133 5,382,731 55,434,808 175,781,365
---------------------------------------------------------------------------------------------
Shares redeemed (83,262,761) (76,350,596) (3,005,853,960) (2,519,837,694)
---------------------------------------------------------------------------------------------
Net increase 30,965,920 68,058,182 $ 1,098,621,984 $ 2,216,725,141
=============================================================================================
</TABLE>
--------------------------------------------------------------------------------
ALLIANCE PREMIER GROWTH FUND o 19
<PAGE>
-----------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
<TABLE>
<CAPTION>
----------------------------------- -----------------------------------
Shares Amount
----------------------------------- -----------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
May 31, 2000 November 30, May 31, 2000 November 30,
(unaudited) 1999 (unaudited) 1999
-------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class B
Shares sold 59,718,216 159,973,069 $ 2,030,184,863 $ 4,981,837,124
--------------------------------------------------------------------------------------------
Shares issued in
reinvestment of
distributions 16,643,426 2,407,963 536,750,004 63,620,433
--------------------------------------------------------------------------------------------
Shares converted
to Class A (1,613,424) (5,643,209) (55,434,808) (175,781,365)
--------------------------------------------------------------------------------------------
Shares redeemed (23,212,563) (23,337,539) (787,520,222) (733,129,267)
--------------------------------------------------------------------------------------------
Net increase 51,535,655 133,400,284 $ 1,723,979,837 $ 4,136,546,925
============================================================================================
<CAPTION>
<S> <C> <C> <C> <C>
Class C
Shares sold 40,223,972 79,730,256 $ 1,370,946,467 $ 2,489,717,810
--------------------------------------------------------------------------------------------
Shares issued in
reinvestment of
distributions 6,062,543 741,503 195,820,603 19,620,963
--------------------------------------------------------------------------------------------
Shares redeemed (24,143,345) (26,187,273) (820,307,785) (816,561,912)
--------------------------------------------------------------------------------------------
Net increase 22,143,170 54,284,486 $ 746,459,285 $ 1,692,776,861
============================================================================================
<CAPTION>
<S> <C> <C> <C> <C>
Advisor Class
Shares sold 4,758,237 9,127,148 $ 173,726,125 $ 304,656,716
--------------------------------------------------------------------------------------------
Shares issued in
reinvestment of
distributions 811,930 208,442 28,011,582 5,807,195
--------------------------------------------------------------------------------------------
Shares redeemed (2,313,099) (6,261,867) (84,179,694) (209,834,310)
--------------------------------------------------------------------------------------------
Net increase 3,257,068 3,073,723 $ 117,558,013 $ 100,629,601
============================================================================================
</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 six months ended May 31, 2000.
--------------------------------------------------------------------------------
20 o ALLIANCE PREMIER GROWTH FUND
<PAGE>
--------------------
FINANCIAL HIGHLIGHTS
--------------------
FINANCIAL HIGHLIGHTS
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------
Class A
-------------------------------------------------------------------------------------------
Six Months
Ended
May 31, Year Ended November 30,
2000 ------------------------------------------------------------------------
(unaudited) 1999 1998 1997 1996 1995
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period ........ $ 35.82 $ 27.50 $ 22.00 $ 17.98 $ 16.09 $ 11.41
-------------------------------------------------------------------------------------------
Income From Investment
Operations
Net investment loss .......... (.10)(a) (.28)(a) (.15)(a) (.10)(a) (.04)(a) (.03)
Net realized and unrealized
gain on investment
transactions ............... 2.71 9.21 7.11 5.20 3.20 5.38
-------------------------------------------------------------------------------------------
Net increase in net asset
value from operations ...... 2.61 8.93 6.96 5.10 3.16 5.35
-------------------------------------------------------------------------------------------
Less: Distributions
Distributions from net
realized gains ............. (2.36) (.61) (1.46) (1.08) (1.27) (.67)
-------------------------------------------------------------------------------------------
Net asset value, end of period $ 36.07 $ 35.82 $ 27.50 $ 22.00 $ 17.98 $ 16.09
===========================================================================================
Total Return
Total investment return based
on net asset value(b) ...... 7.67% 33.13% 33.94% 30.46% 21.52% 49.95%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted) ............ $5,432,865 $4,285,490 $1,418,262 $373,099 $172,870 $72,366
Ratio of expenses to average
net assets ................. 1.39%(c) 1.50% 1.59%(d) 1.57% 1.65% 1.75%
Ratio of net investment loss
to average net assets ...... (.53)%(c) (.85)% (.59)% (.52)% (.27)% (.28)%
Portfolio turnover rate ...... 68% 75% 82% 76% 95% 114%
</TABLE>
See footnote summary on page 25.
--------------------------------------------------------------------------------
ALLIANCE PREMIER GROWTH FUND o 21
<PAGE>
--------------------
FINANCIAL HIGHLIGHTS
--------------------
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------
Class B
------------------------------------------------------------------------------------------
Six Months
Ended
May 31, Year Ended November 30,
2000 -----------------------------------------------------------------------
(unaudited) 1999 1998 1997 1996 1995
------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period ......... $ 34.05 $ 26.33 $ $21.26 $ 17.52 $ 15.81 $ 11.29
------------------------------------------------------------------------------------------
Income From Investment
Operations
Net investment loss ............ (.21)(a) (.48)(a) (.30)(a) (.23)(a) (.14)(a) (.11)
Net realized and unrealized
gain on investment
transactions ................ 2.56 8.81 6.83 5.05 3.12 5.30
------------------------------------------------------------------------------------------
Net increase in net asset
value from operations ....... 2.35 8.33 6.53 4.82 2.98 5.19
------------------------------------------------------------------------------------------
Less: Distributions
Distributions from net
realized gains .............. (2.36) (.61) (1.46) (1.08) (1.27) (.67)
------------------------------------------------------------------------------------------
Net asset value, end of period . $ 34.04 $ 34.05 $ 26.33 $ 21.26 $ 17.52 $ 15.81
==========================================================================================
Total Return
Total investment return based
on net asset value(b) ....... 7.29% 32.30% 33.04% 29.62% 20.70% 49.01%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted) ............. $9,915,193 $8,161,471 $2,799,288 $858,449 $404,137 $238,088
Ratio of expenses to average
net assets .................. 2.08%(c) 2.18% 2.28%(d) 2.25% 2.32% 2.43%
Ratio of net investment loss
to average net assets ....... (1.22)%(c) (1.53)% (1.27)% (1.20)% (.94)% (.95)%
Portfolio turnover rate ........ 68% 75% 82% 76% 95% 114%
</TABLE>
See footnote summary on page 25.
--------------------------------------------------------------------------------
22 o ALLIANCE PREMIER GROWTH FUND
<PAGE>
--------------------
FINANCIAL HIGHLIGHTS
--------------------
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------
Class C
----------------------------------------------------------------------------------------
Six Months
Ended
May 31, Year Ended November 30,
2000 ---------------------------------------------------------------------
(unaudited) 1999 1998 1997 1996 1995
----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period ......... $ 34.09 $ 26.36 $ 21.29 $ 17.54 $ 15.82 $ 11.30
----------------------------------------------------------------------------------------
Income from Investment
Operations
Net investment loss ............ (.21)(a) (.49)(a) (.31)(a) (.24)(a) (.14)(a) (.08)
Net realized and unrealized
gain on investment
transactions ................ 2.57 8.83 6.84 5.07 3.13 5.27
----------------------------------------------------------------------------------------
Net increase in net asset
value from operations ....... 2.36 8.34 6.53 4.83 2.99 5.19
----------------------------------------------------------------------------------------
Less: Distributions
Distributions from net
realized gains .............. (2.36) (.61) (1.46) (1.08) (1.27) (.67)
----------------------------------------------------------------------------------------
Net asset value, end of period . $ 34.09 $ 34.09 $ 26.36 $ 21.29 $ 17.54 $ 15.82
========================================================================================
Total Return
Total investment return based
on net asset value(b) ....... 7.30% 32.31% 32.99% 29.64% 20.76% 48.96%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted) ............. $ 3,720,469 $2,965,440 $862,193 $177,923 $60,194 $20,679
Ratio of expenses to average
net assets .................. 2.08%(c) 2.18% 2.28%(d) 2.24% 2.32% 2.42%
Ratio of net investment loss
to average net assets ....... (1.22)%(c) (1.53)% (1.30)% (1.22)% (.94)% (.97)%
Portfolio turnover rate ........ 68% 75% 82% 76% 95% 114%
</TABLE>
See footnote summary on page 25.
--------------------------------------------------------------------------------
ALLIANCE PREMIER GROWTH FUND o 23
<PAGE>
--------------------
FINANCIAL HIGHLIGHTS
--------------------
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
<TABLE>
<CAPTION>
------------------------------------------------------------------
Advisor Class
------------------------------------------------------------------
Six Months October 2,
Ended 1996(e)
May 31, to
2000 Year Ended November 30, November
------------------------------------ 30,
(unaudited) 1999 1998 1997 1996
------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ...... $ 36.25 $ 27.71 $ 22.10 $ 17.99 $15.94
------------------------------------------------------------------
Income from Investment Operations
Net investment loss(a) .................... (.04) (.17) (.07) (.06) (.01)
Net realized and unrealized gain on
investment transactions ................ 2.74 9.32 7.14 5.25 2.06
------------------------------------------------------------------
Net increase in net asset value from
operations ............................. 2.70 9.15 7.07 5.19 2.05
------------------------------------------------------------------
Less: Distributions
Distributions from net realized gains ..... (2.36) (.61) (1.46) (1.08) -0-
------------------------------------------------------------------
Net asset value, end of period ............ $ 36.59 $ 36.25 $ 27.71 $ 22.10 $17.99
==================================================================
Total Return
Total investment return based on
net asset value(b) ..................... 7.84% 33.68% 34.31% 30.98% 12.86%
Ratios/Supplemental Data
Net assets, end of period (000's omitted) . $590,345 $466,690 $271,661 $53,459 $1,922
Ratio of expenses to average net assets ... 1.06%(c) 1.16% 1.26%(d) 1.25% 1.50%(c)
Ratio of net investment loss to
average net assets ..................... (.20)%(c) (.51)% (.28)% (.28)% (.48)%(c)
Portfolio turnover rate ................... 68% 75% 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) Annualized.
(d) 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% for Class A shares, 2.27% for
Class B shares, 2.27% for Class C shares and 1.25% for Advisor Class
shares, respectively.
(e) Commencement of distribution.
--------------------------------------------------------------------------------
24 o ALLIANCE PREMIER GROWTH FUND
<PAGE>
----------------------------
GLOSSARY OF INVESTMENT TERMS
----------------------------
GLOSSARY OF INVESTMENT TERMS
benchmark
A standard by which a fund's performance can be measured. A benchmark is usually
an unmanaged index, such as the Standard & Poor's 500 Stock Index or the Lehman
Brothers Aggregate Bond Index.
capitalization or market capitalization
The absolute dollar value of a company's outstanding stock. Capitalization is
determined by multiplying the amount of publicly owned shares by the stock's
current market value.
equity
Another term for stock.
net asset value (NAV)
The value of a mutual fund's total assets, minus its liabilities, divided by the
number of shares outstanding.
portfolio
The collection of securities that make up a Fund's or an investor's investments.
index
A compilation of securities of similar types of companies that is used to
measure the investment performance of securities within that specific market. An
index is often used as a benchmark for a mutual fund. An investor cannot invest
directly in an index.
--------------------------------------------------------------------------------
ALLIANCE PREMIER GROWTH FUND o 25
<PAGE>
----------------
ALLIANCE CAPITAL
----------------
ALLIANCE CAPITAL
The Investment Professional's Choice
Alliance Capital is a leading global investment management firm with over $394
billion in assets under management. In recognition of our far-reaching
investment capabilities, Alliance Capital has been selected by employee benefit
plans for 28 of the FORTUNE 100 companies and public retirement funds in 33
states as well as by hundreds of foundations, endowments and foreign
institutions. By sharing this institutional money management experience with
millions of mutual fund investors as well, Alliance stands out as a "manager of
choice" for thousands of investment professionals around the world.
At Alliance Capital, we place a premium on investment research. We carefully
select securities based on our proprietary research, conducted by over 276
investment professionals in 22 investment offices worldwide. Our commitment to
this process means that our mutual fund shareholders have their portfolios
managed by the same experienced analysts and portfolio managers who manage the
pension funds of some of America's largest institutional investors.
All information on Alliance Capital is as of 3/31/00.
--------------------------------------------------------------------------------
26 o ALLIANCE PREMIER GROWTH FUND
<PAGE>
--------------------------------
ALLIANCE CAPITAL AT YOUR SERVICE
--------------------------------
ALLIANCE CAPITAL AT YOUR SERVICE
At Alliance Capital, shareholder satisfaction is among our top priorities.
That's why we provide our shareholders with a wide variety of products and
time-saving services to meet their needs.
o Low Minimum Investments
You can begin investing in Alliance Capital funds with as little as $250
(except for Alliance Select Investor Series Premier Portfolio and Alliance
Select Investor Series Technology Portfolio, which generally have a
$10,000 minimum initial investment) and may make subsequent investments of
$50 or more.
o Automatic Reinvestment
You may choose to reinvest fund dividend and capital-gains distributions
automatically at no charge.
o Automatic Investment Program
Build your investment account by having money automatically transferred
from your bank account on a regular basis.
o Dividend Direction Plans
You may cross-invest dividends from one fund into the same class of shares
in any other fund without incurring a sales charge. This can be a good way
to diversify your assets.
o The Alliance Advance
A quarterly newsletter discussing investment strategies, economic news and
other matters that could affect your mutual fund investment.
o Auto Exchange
You may choose to automatically exchange money from one Alliance Capital
fund to another on a regular basis. This can be a good way to dollar cost
average*, helping you to invest with discipline.
o Systematic Withdrawals
Regular checks for specified amounts can be sent to you or to your
brokerage or bank account.
o A Choice of Purchase Plans
Most funds are available in A, B, and C Class shares. Many funds are also
available in Advisor Class shares.
o Telephone Transaction
Purchases, transfers and redemptions can be made by calling (800)
221-5672. Our knowledgeable representatives are available to assist you
Monday through Friday from 8:30 a.m. to 8:00 p.m. Eastern Standard Time.
o Alliance Answer: 24-Hour Information
For your convenience, our computerized audio response system is available
to you 24-hours a day by calling (800) 251-0539. Using any touch tone
phone, you can hear share prices, get account balances, review details of
your last transaction, obtain dividend information, order
statements/checkbooks, review fund objectives, literature and Watchlist
information, order additional copies of statements and request additional
year-end tax forms (available from February 1 to May 31).
o Alliance Capital on the World Wide Web at www.alliancecapital.com. Here,
you can access updated account information, make additional investments,
request more information, exchange between Alliance funds and view fund
performance, press releases and articles.
* Dollar cost averaging does not assure a profit nor protect against loss in
a declining market. Since this strategy involves continuous investments in
securities, regardless of fluctuating prices, investors should consider
their financial ability to invest during periods of low price levels.
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ALLIANCE PREMIER GROWTH FUND o 27
<PAGE>
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BOARD OF DIRECTORS
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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
Daniel Nordby, Vice President
Michael J. Reilly, 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 LLP
One Battery Park Plaza
New York, NY 10004
(1) Member of the Audit Committee.
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28 o ALLIANCE PREMIER GROWTH FUND
<PAGE>
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ALLIANCE CAPITAL FAMILY OF FUNDS
--------------------------------
ALLIANCE CAPITAL FAMILY OF FUNDS
Domestic Equity Funds
Balanced Shares
Conservative Investors Fund
Disciplined Value Fund
Growth & Income Fund
Growth Fund
Growth Investors Fund
Health Care Fund
Premier Growth Fund
Quasar Fund
Real Estate Investment Fund
Technology Fund
The Alliance Fund Utility Income Fund
Global & International Equity Funds
All-Asia Investment Fund
Global Small Cap Fund
Greater China '97 Fund
International Fund
International Premier Growth Fund
New Europe Fund
Worldwide Privatization Fund
Select Investor Series
Premier Portfolio
Technology Portfolio
Fixed Income Funds
Corporate Bond Portfolio
Global Dollar Government Fund
Global Strategic Income Trust
High Yield Fund
Limited Maturity Government Fund
Mortgage Securities Income Fund
Multi-Market Strategy Trust
North American Government Income Trust
Quality Bond Portfolio
U.S. Government Portfolio
Municipal Income Funds
National
Insured National
Arizona
California
Insured California
Florida
Massachusetts
Michigan
Minnesota
New Jersey
New York
Ohio
Pennsylvania
Virginia
Alliance also offers AFD Exchange Reserves, which serves as the money market
fund exchange vehicle for the Alliance mutual funds.
To obtain a prospectus for any Alliance Capital fund, call your investment
professional, or call Alliance at (800) 227-4618.
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ALLIANCE PREMIER GROWTH FUND o 29
<PAGE>
Alliance Premier Growth Fund ---------------
1345 Avenue of the Americas BULK RATE
New York, NY 10105 U.S. POSTAGE
(800) 221-5672 PAID
New York, NY
Permit No. 7131
---------------
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(R) These registered service marks used under license from the owner, Alliance
Capital Management L.P.
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