AFD EXCHANGE RESERVES
SEMI-ANNUAL REPORT
MARCH 31, 1998
(UNAUDITED)
LETTER TO SHAREHOLDERS AFD EXCHANGE RESERVES
_______________________________________________________________________________
May 27, 1998
Dear Shareholder:
We are pleased to provide an overview of market and Fund activity during AFD
Exchange Reserves semi-annual reporting period ended March 31, 1998. AFD
Exchange Reserves serves as the money market fund exchange vehicle for the
Alliance Mutual Funds. The Fund's investment objective is to provide maximum
current income consistent with safety of principal and liquidity.
The Fund's net assets as of March 31, 1998 totaled approximately $227.8
million. The Fund remains invested in high quality money market securities
which include marketable obligations issued or guaranteed by the U.S.
government and its agencies, and commercial paper. As of March 31, 1998, the
average weighted maturity of the portfolio was 25 days.
ECONOMIC COMMENTARY
During the reporting period ended March 31, 1998, the Federal Reserve kept
rates steady at 5.5%. The U.S. economy grew at an unsustainable 4.2% rate in
the first quarter of 1998 following 1997's 3.8% pace. We expect the economy to
decelerate to a 2.0% to 2.5% growth pace for the remainder of the year.
Consumer prices rose 1.5% in the first quarter from the same period in 1997.
We expect inflation as measured by the Consumer Price Index (CPI) to drift up
to and above 2.0% by year-end as the disinflationary benefits of the strong
dollar and weak commodity prices wane.
On March 31, 1998, the Federal Reserve shifted from a "neutral" stance to one
biased toward higher rates. By returning to the "tightening" bias it held
through most of 1997, the Fed has signaled that its main focus is the
inflationary threat posed by labor cost and equity price appreciation. We
believe that no Fed move is imminent, but we would not rule out one or more Fed
tightenings later this year or early in 1999.
We appreciate your continued interest in AFD Exchange Reserves.
Sincerely,
John D. Carifa
Chairman and President
AN INVESTMENT IN THE FUND IS NOT (I) INSURED OR GUARANTEED BY THE U.S.
GOVERNMENT, (II) A DEPOSIT OR OBLIGATION OF, OR GUARANTEED OR ENDORSED BY ANY
BANK, OR (III) FEDERALLY INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION,
THE FEDERAL RESERVE BOARD OR ANY OTHER AGENCY. THERE CAN BE NO ASSURANCE THAT
THE FUND WILL BE ABLE TO MAINTAIN A STABLE NET ASSET VALUE OF $1.00 PER SHARE.
1
STATEMENT OF NET ASSETS
MARCH 31, 1998 (UNAUDITED) AFD EXCHANGE RESERVES
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY YIELD VALUE
- -------------------------------------------------------------------------------
COMMERCIAL PAPER-59.9%
Allianz of America Finance Corp.
$ 7,000 5/13/98 (a) 5.47% $6,955,328
Allstate Corp.
7,000 4/30/98 5.55 6,968,704
American Express Co.
7,000 5/14/98 5.55 6,953,596
Associates Corp. of North America
10,000 4/01/98 6.10 10,000,000
Banc One Funding Corp.
3,700 4/30/98 (a) 5.50 3,683,607
Bell South Capital Funding Corp.
7,000 5/04/98 5.54 6,964,452
Cargill Global Funding
7,000 4/22/98 5.52 6,977,460
Chase Manhattan Bank
6,000 5/04/98 5.48 5,969,860
Colgate Palmolive Co.
7,000 4/30/98 5.53 6,968,817
Duke Power
4,000 4/29/98 5.50 3,982,889
3,494 5/29/98 5.50 3,463,039
Dupont (E. I.) de Nemours & Co.
8,000 5/06/98 5.48 7,957,378
Ford Motor Credit Corp.
7,000 5/20/98 5.51 6,947,502
General Electric Capital Corp.
7,000 6/03/98 5.57 6,933,238
General Motors Acceptance Corp.
7,500 5/18/98 5.53 7,445,852
International Lease Finance Corp.
7,000 5/06/98 5.51 6,962,501
Koch Industries
8,950 4/01/98 (a) 6.05 8,950,000
Merrill Lynch & Co., Inc.
7,500 6/15/98 5.51% 7,413,906
Motorola Corp.
7,905 4/22/98 5.51 7,879,592
Salomon Smith Barney Holdings Inc.
7,000 5/04/98 5.54 6,964,452
Total Commercial Paper
(amortized cost $136,342,173) 136,342,173
U.S. GOVERNMENT & AGENCY OBLIGATIONS-36.7%
Federal Home Loan Bank
8,000 5.64%, 3/12/99 5.64 8,000,000
75,700 4/01/98 5.70 75,700,000
Total U.S. Government & Agency Obligations
(amortized cost $83,700,000) 83,700,000
PROMISSORY NOTE-3.1%
Goldman Sachs Group LP
7,000 5.88%, 5/27/98
(amortized cost $7,000,000) 5.88 7,000,000
TOTAL INVESTMENTS-99.7%
(amortized cost $227,042,173) 227,042,173
Other assets less liabilities-0.3% 728,616
NET ASSETS-100%
(offering and redemption price of $1.00
per share; 105,619,185 Class A shares;
78,768,509 Class B shares; 43,038,977
Class C shares and 345,855 Advisor Class
shares outstanding) $ 227,770,789
(a) Securities issued in reliance on Section (4) 2 or Rule 144A of the
Securities Act of 1933. Rule 144A securities may be resold in transactions
exempt from registration, normally to qualified institutional buyers. At March
31, 1998, these securities amounted to $19,588,935, representing 8.6% of net
assets.
See notes to financial statements.
2
STATEMENT OF OPERATIONS
SIX MONTHS ENDED MARCH 31, 1998 (UNAUDITED) AFD EXCHANGE RESERVES
_______________________________________________________________________________
INVESTMENT INCOME
Interest $ 4,995,137
EXPENSES
Advisory fee $ 220,361
Distribution fee - Class A 153,486
Distribution fee - Class B 383,201
Distribution fee - Class C 139,690
Transfer agency 111,372
Registration fees 66,964
Custodian 48,912
Administrative 49,000
Printing 24,336
Audit and legal 21,966
Amortization of organization expenses 13,080
Trustees' fees 11,054
Miscellaneous 3,067
Total expenses 1,246,489
Net investment income 3,748,648
REALIZED GAIN ON INVESTMENTS
Net realized gain on investment transactions 760
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 3,749,408
See notes to financial statements.
3
STATEMENT OF CHANGES IN NET ASSETS AFD EXCHANGE RESERVES
_______________________________________________________________________________
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 1998 SEPTEMBER 30,
(UNAUDITED) 1997
--------------- ---------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
Net investment income $ 3,748,648 $ 5,152,750
Net realized gain (loss) on
investment transactions 760 (311)
Net increase in net assets from operations 3,749,408 5,152,439
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income
Class A (1,386,019) (1,638,799)
Class B (1,537,667) (2,707,243)
Class C (799,571) (806,371)
Advisor Class (25,391) (337)
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
Net increase 88,163,154 19,187,747
Total increase 88,163,914 19,187,436
NET ASSETS
Beginning of year 139,606,875 120,419,439
End of period $ 227,770,789 $ 139,606,875
See notes to financial statements.
4
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1998 (UNAUDITED) AFD EXCHANGE RESERVES
_______________________________________________________________________________
NOTE A: SIGNIFICANT ACCOUNTING POLICIES
AFD Exchange Reserves (the "Fund") is registered under the Investment Company
Act of 1940 as a diversified, open-end investment company. The Fund's
investment objective is to provide maximum current income to the extent
consistent with safety of principal and liquidity. The Fund offers Class A,
Class B, Class C and Advisor Class shares. All four classes of shares have
identical voting, dividend, liquidation and other rights, except that each
class bears its own distribution and transfer agency expenses and has exclusive
voting rights with respect to its distribution plan.
Class A shares are sold for cash without any initial sales charge at the time
of purchase. On cash purchases of $1,000,000 or more, however, a contingent
deferred sales charge ("CDSC") equal to 1% of the lesser of net asset value at
the time of redemption or original cost if redeemed within one year will be
charged. Class A shares may be exchanged for Class A shares of other Alliance
Mutual Funds, subject, in the case of Class A shares of the Fund that were
purchased for cash, to any applicable initial sales charge at the time of
exchange. Class A shares of the Fund also are offered in exchange for Class A
shares of other Alliance Mutual Funds without any sales charge at the time of
purchase, but on Class A shares that were received in exchange for Alliance
Mutual Fund Class A shares that were not subject to an initial sales charge
when originally purchased for cash because the purchase was of $1,000,000 or
more, a 1% CDSC may be assessed if shares of the Fund are redeemed within one
year of the Alliance Mutual Fund Class A shares originally purchased for cash.
Class B shares are sold for cash without an initial sales charge. However, a
CDSC is charged if shares are redeemed within four years after purchase. The
CDSC charge declines from 4% to zero depending on the period of time the shares
are held. Class B shares purchased for cash will automatically convert to Class
A shares after eight years. Class B shares may be exchanged for Class B shares
of other Alliance Mutual Funds. Class B shares also are offered in exchange for
Class B shares of other Alliance Mutual Funds without any initial sales charge.
However, a CDSC may be charged if shares are redeemed within a certain number
of years of the original purchase of Alliance Mutual Fund Class B shares. When
redemption occurs, the applicable CDSC schedule is that which applied to the
Alliance Mutual Fund Class B shares originally purchased for cash at the time
of their purchase.
Class C shares are sold for cash or in exchange for Class C shares of another
Alliance Mutual Fund. Class C shares are subject to a CDSC of 1% on redemptions
made within the first year after purchase. Class C shares do not convert to any
other class of shares of the Fund. Class C shares may be exchanged for Class C
shares of other Alliance Mutual Funds.
Advisor Class shares are sold for cash or in exchange for Advisor Class shares
of another Alliance Mutual Fund without any initial sales charge or CDSC and
are not subject to ongoing distribution expenses. Advisor Class shares are
offered solely to investors participating in fee-based programs and to certain
retirement plan accounts.
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. VALUATION OF SECURITIES
Securities in which the Fund invests are traded primarily in the
over-the-counter market and are valued at amortized cost, under which method a
portfolio instrument is valued at cost and any premium or discount is amortized
on a constant basis to maturity.
2. ORGANIZATION EXPENSES
Organization expenses have been deferred and are being amortized on a
straight-line basis through March, 1999.
3. TAXES
It is the Fund's policy to comply with 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 its
shareholders. Therefore, no provisions for federal income or excise taxes are
required.
5
NOTES TO FINANCIAL STATEMENTS (CONTINUED) AFD EXCHANGE RESERVES
_______________________________________________________________________________
4. DIVIDENDS
The Fund declares dividends daily and automatically reinvests such dividends in
additional shares at net asset value. Net realized capital gains on
investments, if any, are expected to be distributed near year end.
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 shares 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. INVESTMENT INCOME AND INVESTMENT TRANSACTIONS
Interest income is accrued daily. Investment transactions are recorded on the
date securities are purchased or sold. Investment gains and losses are
determined on the identified cost basis. It is the Fund's policy to take
possession of securities as collateral under repurchase agreements and to
determine on a daily basis that the value of such securities are sufficient to
cover the value of the repurchase agreements.
NOTE B: ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
The Fund pays its Adviser, Alliance Capital Management L.P. an advisory fee at
the annual rate of .25% on the first $1.25 billion of average daily net assets;
.24% on the next $.25 billion; .23% on the next $.25 billion; .22% on the next
$.25 billion; .21% on the next $1 billion; and .20% in excess of $3 billion. In
addition to the advisory fee, the Fund also reimburses the Adviser for certain
legal and accounting services provided to the Fund by the Adviser. For the six
months ended March 31, 1998, such reimbursements totaled $49,000.
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 $87,480 for the six months ended March 31, 1998.
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 for Class A,
Class B and Class C. Under the Agreement, the Fund pays a distribution fee to
the Distributor at an annual rate of up to .50% of the Fund's average daily net
assets attributable to Class A shares, 1.00% of the average daily net assets
attributable to Class B shares and .75% of the average daily net assets
attributable to Class C shares. There is no distribution fee on the Advisor
Class shares. Such fee is accrued daily and paid monthly. The Agreement
provides that the Distributor will use such payments in their entirety for
distribution assistance and promotional activities. The Agreement also provides
that the Adviser may use its own resources to finance the distribution of the
Fund's shares.
NOTE D: INVESTMENT TRANSACTIONS
At March 31, 1998, the cost of securities for federal income tax purposes was
the same as the cost for financial reporting purposes. At September 30, 1997,
the Fund had a capital loss carryforward of $2,497, of which $2,186 expires in
2003 and $311 expires in the year 2004.
6
AFD EXCHANGE RESERVES
_______________________________________________________________________________
NOTE E: TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
An unlimited number of shares ($.001 par value) are authorized. At March 31,
1998, capital paid-in aggregated $105,619,185 for Class A, $78,768,509 for
Class B, $43,038,977 for Class C and $345,855 for Advisor Class. Transactions,
all at $1.00 per share, were as follows:
CLASS A
-------------------------------
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 1998 SEPTEMBER 30,
(UNAUDITED) 1997
--------------- -------------
Shares sold 1,035,484,985 396,646,176
Shares issued on reinvestments of dividends 1,386,019 1,638,799
Shares converted from Class B 1,045,834 2,779,625
Shares redeemed (973,465,611) (402,092,046)
Net increase (decrease) 64,451,227 (1,027,446)
CLASS B
-------------------------------
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 1998 SEPTEMBER 30,
(UNAUDITED) 1997
--------------- -------------
Shares sold 190,343,677 248,115,983
Shares issued on reinvestments of dividends 1,537,667 2,707,243
Shares converted to Class A (1,045,834) (2,779,625)
Shares redeemed (186,523,562) (238,596,718)
Net increase 4,311,948 9,446,883
CLASS C
-------------------------------
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 1998 SEPTEMBER 30,
(UNAUDITED) 1997
--------------- -------------
Shares sold 541,366,526 263,291,205
Shares issued on reinvestments of dividends 799,571 806,371
Shares redeemed (523,077,069) (253,364,170)
Net increase 19,089,028 10,733,406
ADVISOR CLASS
-------------------------------
JANUARY 30,
SIX MONTHS ENDED 1997(A) TO
MARCH 31, 1998 SEPTEMBER 30,
(UNAUDITED) 1997
--------------- -------------
Shares sold 13,131,013 120,464
Shares issued on reinvestments of dividends 25,391 337
Shares redeemed (12,845,453) (85,897)
Net increase 310,951 34,904
7
(a) Commencement of distribution.
FINANCIAL HIGHLIGHTS AFD EXCHANGE RESERVES
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD
<TABLE>
<CAPTION>
CLASS A
-----------------------------------------------------------------
SIX MONTHS MARCH 25,
ENDED 1994(A)
MARCH 31, YEAR ENDED SEPTEMBER 30, TO
1998 ------------------------------------- SEPTEMBER 30,
(UNAUDITED) 1997 1996 1995 1994
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income .0225 .0411 .0416 .0453 .0126
LESS: DIVIDENDS
Dividends from net investment income (.0225) (.0411) (.0416) (.0453) (.0126)
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
TOTAL RETURN
Total investment return based on
net asset value (b) 4.56%(c) 4.19% 4.24% 4.64% 2.45%(c)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $106 $41 $41 $41 $18
Ratios to average net assets of:
Expenses, net of waivers 1.14%(c) 1.38% 1.29% 1.21% 1.82%(c)
Expenses, before waivers 1.14%(c) 1.38% 1.29% 1.29% 1.82%(c)
Net investment income 4.52%(c) 4.10% 4.15% 4.63%(d) 2.62%(c)
</TABLE>
<TABLE>
<CAPTION>
CLASS B
-----------------------------------------------------------------
SIX MONTHS MARCH 25,
ENDED 1994(A)
MARCH 31, YEAR ENDED SEPTEMBER 30, TO
1998 ------------------------------------- SEPTEMBER 30,
(UNAUDITED) 1997 1996 1995 1994
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income .0200 .0361 .0366 .0404 .0101
LESS: DIVIDENDS
Dividends from net investment income (.0200) (.0361) (.0366) (.0404) (.0101)
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
TOTAL RETURN
Total investment return based on
net asset value (b) 4.06%(c) 3.67% 3.72% 4.12% 1.95%(c)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $79 $74 $65 $65 $31
Ratios to average net assets of:
Expenses, net of waivers 1.66%(c) 1.88% 1.79% 1.70% 2.35%(c)
Expenses, before waivers 1.66%(c) 1.88% 1.79% 1.78% 2.35%(c)
Net investment income 4.01%(c) 3.61% 3.67% 4.17%(d) 1.91%(c)
</TABLE>
See footnote summary on page 9.
8
AFD EXCHANGE RESERVES
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD
<TABLE>
<CAPTION>
CLASS C
-----------------------------------------------------------------
SIX MONTHS MARCH 25,
ENDED 1994(A)
MARCH 31, YEAR ENDED SEPTEMBER 30, TO
1998 ------------------------------------- SEPTEMBER 30,
(UNAUDITED) 1997 1996 1995 1994
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income .0213 .0386 .0390 .0430 .0112
LESS: DIVIDENDS
Dividends from net investment income (.0213) (.0386) (.0390) (.0430) (.0112)
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
TOTAL RETURN
Total investment return based on
net asset value (b) 4.32%(c) 3.93% 3.98% 4.39% 2.18%(c)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $43 $24 $13 $10 $5
Ratios to average net assets of:
Expenses, net of waivers 1.38%(c) 1.61% 1.55% 1.45% 2.08%(c)
Expenses, before waivers 1.38%(c) 1.61% 1.55% 1.52% 2.08%(c)
Net investment income 4.29%(c) 3.90% 3.89% 4.41%(d) 2.14%(c)
</TABLE>
ADVISOR CLASS
--------------------------
SIX MONTHS JANUARY 30,
ENDED 1997(A)
MARCH 31, TO
1998 SEPTEMBER 30,
(UNAUDITED) 1997
---------- ----------
Net asset value, beginning of period $ 1.00 $ 1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income .0250 .0254
LESS: DIVIDENDS
Dividends from net investment income (.0250) (.0254)
Net asset value, end of period $ 1.00 $ 1.00
TOTAL RETURN
Total investment return based on
net asset value (b) (c) 5.08% 4.71%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in thousands) $346 $35
Ratio of expenses to average net assets (c) .64% .88%
Ratio of net investment income to
average net assets (c) 5.06% 4.15%
(a) Commencement of distribution.
(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. Contingent deferred sales charge is
not reflected in the calculation of total investment return.
(c) Annualized.
(d) Net of expenses waived by the Adviser.
9
AFD EXCHANGE RESERVES
_______________________________________________________________________________
AFD EXCHANGE RESERVES
1345 Avenue of the Americas
New York, NY 10105
Toll-free 1(800) 221-5672
TRUSTEES
JOHN D. CARIFA, CHAIRMAN AND PRESIDENT
RUTH BLOCK (1)
DAVID H. DIEVLER (1)
JOHN H. DOBKIN (1)
WILLIAM H. FOULK, JR. (1)
JAMES M. HESTER (1)
CLIFFORD L. MICHEL (1)
DONALD J. ROBINSON (1)
OFFICERS
KATHLEEN A. CORBET, SENIOR VICE PRESIDENT
WAYNE D. LYSKI, SENIOR VICE PRESIDENT
RAYMOND J. PAPERA, SENIOR VICE PRESIDENT
KENNETH T. CARTY, VICE PRESIDENT
JOHN F. CHIODI, JR., VICE PRESIDENT
MARIA R. CONA, VICE PRESIDENT
EDMUND P. BERGAN, JR., SECRETARY
MARK D. GERSTEN, TREASURER & CHIEF FINANCIAL OFFICER
VINCENT S. NOTO, CONTROLLER
CUSTODIAN
STATE STREET BANK AND TRUST COMPANY
P.O. Box 1912
Boston, MA 02105
LEGAL COUNSEL
SEWARD & KISSEL
ONE BATTERY PARK PLAZA
New York, NY 10004
AUDITORS
MCGLADREY & PULLEN, LLP
555 Fifth Avenue
New York, NY 10017
TRANSFER AGENT
ALLIANCE FUND SERVICES, INC.
P.O. Box 1520
Secaucus, NJ 07096-1520
DISTRIBUTOR
ALLIANCE FUND DISTRIBUTORS, INC.
1345 Avenue of the Americas
New York, NY 10105
(1) Member of the audit committee.
DISTRIBUTION OF THIS REPORT OTHER THAN TO SHAREHOLDERS MUST BE PRECEDED OR
ACCOMPANIED BY THE FUND'S CURRENT PROSPECTUS, WHICH CONTAINS FURTHER
INFORMATION ABOUT THE FUND.
R THESE REGISTERED SERVICE MARKS USED UNDER LICENSE FROM THE OWNER, ALLIANCE
CAPITAL MANAGEMENT L.P.
10
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 Multi-Market Trust
Alliance Short-Term U.S. Government Fund
Alliance World Income Trust
TAX-FREE INCOME
Alliance Municipal Income Fund
California Portfolio
Insured California Portfolio
Insured National Portfolio
National Portfolio
New York Portfolio
Alliance Municipal Income Fund II
Arizona Portfolio
Florida Portfolio
Massachusetts Portfolio
Michigan Portfolio
Minnesota Portfolio
New Jersey Portfolio
Ohio Portfolio
Pennsylvania Portfolio
Virginia Portfolio
MONEY MARKET
AFD Exchange Reserves
GROWTH
The Alliance Fund
Alliance Global Environment Fund
Alliance Growth Fund
Alliance Premier Growth Fund
Alliance/Regent Sector Opportunity Fund
GROWTH & INCOME
Alliance Strategic Balanced Fund
Alliance Balanced Shares
Alliance Conservative Investors Fund
Alliance Growth & Income Fund
Alliance Growth Investors Fund
Alliance Income Builder Fund
Alliance 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 New Europe Fund
Alliance Worldwide Privatization Fund
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
11
