PORTFOLIO OF INVESTMENTS Alliance All-Asia Investment Fund
April 30, 1995 (unaudited)
Company Shares U.S. $ Value
- ----------------------------------------------------------------------
COMMON STOCKS & OTHER INVESTMENTS-86.0%
AUSTRALIA-2.4%
Boral, Ltd. 24,539 $ 62,291
Renison Goldfields
Consolidated, Ltd. 18,000 62,188
rights expiring 5/24/95* 4,176 -0-
124,479
HONG KONG-18.1%
Cheung Kong
Holdings, Ltd. 19,000 80,261
Citic Pacific, Ltd. 30,000 74,021
Dao Heng Bank Group, Ltd. 10,000 25,578
Hong Kong & China Gas Co., Ltd. 60,000 87,198
Hong Kong & Shanghai Hotels 18,500 22,465
Hopewell Holdings 100,000 71,050
Jardine International Motor
Holdings, Ltd. 8,000 8,164
New World Development Co., Ltd. 30,000 77,897
Orient Telecom & Technology
Holdings, Ltd.* 237,000 76,541
Peregrine Investment
Holdings, Ltd. 60,000 63,170
Shun Tak Holdings, Ltd. 70,000 42,275
Sun Hung Kai Properties, Ltd. 16,000 102,106
Swire Pacific, Ltd. Cl.A 6,000 40,111
Television Broadcasts, Ltd. 24,000 89,136
Yizheng Chemical
Fibre Co., Ltd. 200,000 65,883
925,856
INDIA-4.0%
Bajaj Auto, Ltd. (GDR) 6,000 $152,280
Hindalco Industries, Ltd. (GDR)(a) 2,000 52,000
204,280
INDONESIA-5.7%
PT Astra International 19,000 24,250
PT Indosat 20,000 72,100
PT HM Sampoerna 28,000 164,263
PT Indo-Rama Synthetics 10,500 32,210
292,823
JAPAN-25.7%
Asahi Bank, Ltd. 2,000 25,701
Bank of Tokyo, Ltd. 1,000 18,086
Canon, Inc. 2,000 33,078
Chiba Bank 1,000 10,114
DDI Corp. 4 35,219
Dai-Ichi Kangyo Bank 4,000 81,861
Dai Nippon Printing Co., Ltd. 1,000 16,777
Daiwa Securities Co., Ltd. 1,000 12,612
Fuji Photo Film Co. 3,000 73,532
Heiwa Corp. 3,000 79,243
Hitachi, Ltd. 2,000 20,346
House Food Industry Corp. 1,000 20,227
Kao Corp. 2,000 24,273
Kirin Brewery Co., Ltd. 1,000 11,875
Kuraray Co., Ltd. 4,000 47,546
Matsushita Electric Industrial Co. 3,000 50,330
Matsushita Electric Works 2,000 24,035
Mitsubishi Heavy Industries, Ltd. 2,000 14,516
Mitsui Marine & Fire Insurance Co. 7,000 53,055
5
PORTFOLIO OF INVESTMENTS (continued) Alliance All-Asia Investment Fund
Company Shares U.S. $ Value
- ----------------------------------------------------------------------
Mitsui Trust & Banking Co., Ltd. 5,000 $ 56,041
National House Industrial 1,000 20,465
Nikko Securities Co., Ltd. 2,000 19,609
Nintendo Corp., Ltd. 1,200 76,959
Nippon Paper Industries Co. 1,000 7,770
Nippon Telegraph & Telephone Corp. 3 26,522
Nippon Express Co., Ltd. 1,000 9,888
Nippon Steel Corp. 4,000 15,896
Nippon Electric Glass Co., Ltd. 1,000 17,729
Nomura Securities Co., Ltd. 3,000 60,682
NTN Corp. 2,000 13,231
Osaka Gas Co. 5,000 20,525
Rohm Co. 1,000 46,285
Sanyo Electric Co., Ltd. 2,000 11,280
Sumitomo Bank, Ltd. 3,000 64,965
Takara Shuzo Co. 1,000 8,174
Takeda Chemical Industries 1,000 13,326
Tokyo Electric Power Co., Ltd. 1,000 32,007
Tokyo Gas Co., Ltd. 8,000 36,552
Tostem Corp. 1,000 36,290
Toyota Motor Corp. 2,000 40,692
UBE Industries, Ltd. 1,000 4,117
Yamanouchi Pharmaceutical Co.,Ltd. 1,000 22,488
1,313,919
MALAYSIA-10.2%
Aokam Perdana Berhad 10,000 $ 44,912
AMMB Holdings Berhad 11,000 108,598
Lion Land Berhad 60,000 69,188
Malaysian International Shipping Berhad30,000 77,686
Perusahaan Otomobil Nasional Berhad 20,000 67,975
Resorts World Berhad 16,000 84,158
YTL Corp. Berhad 15,000 67,975
520,492
PHILIPPINES-4.5%
International Container
Terminal Services, Inc.* 131,250 73,057
Manila Electric Company Series B 15,000 159,789
232,846
SINGAPORE-8.4%
Fraser & Neave, Ltd. 5,000 54,898
Oversea-Chinese Banking Corp., Ltd. 5,000 54,538
Overseas Union Bank, Ltd. 14,000 80,875
Singapore Airlines, Ltd. 14,000 134,625
Singapore Press Holdings 6,000 103,337
428,273
SOUTH KOREA-1.5%
Korea Mobile Telecom (GDS) 2,700 77,976
6
Alliance All-Asia Investment Fund
Company Shares U.S. $ Value
- ----------------------------------------------------------------------
THAILAND-5.5%
Bangkok Bank Co., Ltd. 10,000 $ 96,768
Bank of Ayudhya, Ltd. 20,000 89,448
Thai Airways International, Ltd. 42,000 96,483
282,699
Total Common Stocks & Other Investments
(cost $4,341,688) 4,403,643
TIME DEPOSIT-19.5%
BNP
5.95%, 5/01/95
(cost $1,000,000) US $1,000 $1,000,000
TOTAL INVESTMENTS-105.5%
(cost $5,341,688) 5,403,643
Other assets less liabilities-(5.5%) (282,851)
NET ASSETS-100% $5,120,792
* Non-income producing security.
(a) Security is exempt from registration under Rule 144A of the Securities Act
of 1933. This security may be resold in transactions exempt from registration,
normally to qualified institutional buyers. At April 30, 1995 this security
amounted to $52,000 or 1.0% of net assets.
Glossary of Terms:
GDR-Global depository receipt
GDS-Global depository security
See notes to financial statements.
8
STATEMENT OF ASSETS AND LIABILITIES Alliance All-Asia Investment Fund
April 30, 1995 (unaudited)]
ASSETS
Investments in securities, at value (cost $5,341,688) $5,403,643
Cash, at value (cost $382,749) 382,401
Receivable for investment securities sold 1,290,672
Receivable from investment advisor 180,530
Deferred organization expense 174,261
Receivable for capital stock sold 48,349
Dividends and interest receivable 14,856
Total assets 7,494,712
LIABILITIES
Payable for investment securities purchased 2,276,122
Advisory fee payable 15,721
Payable for capital stock redeemed 3,123
Distribution fee payable 2,915
Accrued expenses 76,039
Total liabilities 2,373,920
NET ASSETS $5,120,792
COMPOSITION OF NET ASSETS
Capital stock, at par $5,005
Additional paid-in capital 5,023,552
Undistributed net investment income 47,184
Accumulated net realized loss on investments and foreign
currency transactions (18,904)
Net unrealized appreciation of investments and foreign currency
denominated assets and liabilities 63,955
$5,120,792
CALCULATION OF MAXIMUM OFFERING PRICE
Class A Shares
Net asset value and redemption price per share ($1,916,569/187,137
shares of capital stock issued and outstanding) $10.24
Sales charge--4.25% of public offering price .45
Maximum offering price $10.69
Class B Shares
Net asset value and offering price per share ($3,018,837/295,243
shares of capital stock issued and outstanding) $10.22
Class C Shares
Net asset value, redemption and offering price per share
($185,386/18,109 shares of capital stock issued and outstanding) $10.24
* Commencement of operations.
See notes to financial statements.
8
STATEMENT OF OPERATIONS
November 28, 1994* to April 30, 1995 (unaudited)
Alliance All-Asia Investment Fund
INVESTMENT INCOME
Interest $ 36,697
Dividends (net of foreign taxes withheld of $855) 20,376 $ 57,073
EXPENSES
Advisory fee 15,722
Distribution fee-Class A 1,774
Distribution fee-Class B 9,291
Distribution fee-Class C 515
Custodian 40,978
Audit and legal 30,862
Registration 28,321
Transfer agency 17,226
Amortization of organization expenses 15,725
Printing 13,912
Trustees' fees 10,125
Administrative 2,358
Miscellaneous 3,258
Total expenses 190,067
Less expenses waived and assumed by
advisor (see Note B) (180,178)
Net expenses 9,889
Net investment income 47,184
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY
Net realized gain on security transactions 28,741
Net realized loss on foreign currency transaction (47,645)
Net change in unrealized appreciation of:
Investments 61,955
Foreign currency denominated assets and liabilities 2,000
Net gain on investments and foreign currency transactions 45,051
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 92,235
* Commencement of operations
See notes to financial statements.
9
STATEMENT OF CHANGES IN NET ASSETS
November 28, 1994* to April 30, 1995 (unaudited)
Alliance All-Asia Investment Fund
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income. $47,184
Net realized loss on investments and foreign currency transactions (18,904)
Net change in unrealized appreciation of investments and foreign
currency denominatied assets and liabilities 63,955
Net increase in net assets from operations 92,235
CAPITAL STOCK TRANSACTIONS
Net increase 4,926,557
Total increase 5,018,792
NET ASSETS
Beginning of period 102,000
End of period $5,120,792
* Commencement of operations
See notes to financial statements.
10
NOTES TO FINANCIAL STATEMENTS
April 30, 1995 (unaudited) Alliance All-Asia Investment Fund
NOTE A: SIGNIFICANT ACCOUNTING POLICIES
Alliance All-Asia Investment Fund, Inc. (the 'Fund'), organized as a Maryland
corporation on September 21, 1994, is registered under the Investment Company
Act of 1940 as a non-diversified, open-end management investment company. The
Fund had no operations other than the sale to Alliance Capital Management L.P.
(the 'Adviser') of 10,000 shares of Class A common stock and 100 shares of
Class B and Class C shares, of common stock for the aggregate amount of
$102,000 on October 18, 1994. Class A, Class B and Class C shares commenced
operations on November 28, 1994. The Fund offers three classes of shares. Class
A shares are sold with an initial sales charge of up to 4.25%. Class B shares
are sold with a contingent deferred sales charge which declines from 4.00% to
zero depending on the period of time the shares are held. Class B shares will
automatically convert to Class A shares eight years after the end of the
calendar month of purchase. Class C shares are sold without an initial or
contingent deferred sales charge. All three classes of shares have identical
voting, dividend, liquidation and other rights, except that each class bears
different distribution expenses and has exclusive voting rights with respect to
its distribution plan. The following is a summary of significant accounting
policies followed by the Fund.
1. SECURITY VALUATION
Portfolio securities traded on a national securities exchange for which market
quotations are readily available are valued at the last quoted sales price on
that exchange prior to the time when assets are valued. Securities listed or
traded on certain foreign exchanges whose operations are similar to the U.S.
over-the-counter market are valued at the price within the limits of the latest
available current bid and asked price deemed best to reflect fair value.
Securities which mature in 60 days or less are valued at amortized cost which
approximates market value. Restricted securities are valued at fair value as
determined by the Board of Directors. In determining fair value, consideration
is given to cost, operating and other financial data.
2. ORGANIZATION EXPENSES
Organization expenses of approximately $192,000 have been deferred and are
being amortized on a straight-line basis through October, 1999.
3. 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 at the rates
of exchange prevailing when such securities were acquired or sold. Income and
expenses are translated at rates of exchange prevailing when accrued.
Net realized loss on foreign currency transactions of $47,645 represents
foreign exchange gains and losses from the holding of foreign currencies,
exchange gains or losses realized between the trade and settlement dates on
security transactions, and the difference between the amounts of dividends,
interest and foreign taxes receivable recorded on the Fund's books and the U.S.
dollar equivalent of the amounts acutally received or paid. Net currency gains
and losses from valuing foreign currency denominated assets and liabilities at
period end exchange rates are reflected as a component of net unrealized
appreciation of investments and foreign currency denominated assets and
liabilities.
4. TAXES
It is the Fund's policy to meet the requirements of the Internal Revenue Code
applicable to regulated investment companies and to distribute all of its
investment company taxable income and net realized gains, if applicable, to
shareholders. Therefore, no provisions for federal income or excise taxes are
required.
5. INVESTMENT INCOME AND SECURITY TRANSACTIONS
Dividend income is recorded on the ex-dividend date. Interest income is accrued
daily. Security transactions are accounted for on the date securities are
purchased or sold. Security gains and losses are determined on the identified
cost basis. The Fund accretes discounts on short-term securities as adjustments
to interest income.
6. DIVIDENDS AND DISTRIBUTIONS
Dividends and distributions to shareholders are recorded on the ex-dividend
date. Income dividends and capital gain distributions are determined in
accordance with tax regulations, which may differ from generally accepted
accounting principles.
11
NOTES TO FINANCIAL STATEMENTS (continued) Alliance All-Asia Investment Fund
NOTE B: ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under an investment advisory agreement, the Fund pays its Adviser, Alliance
Capital Management, L.P., (the 'Adviser'), a fee at an annual rate of 1% of the
Fund's average daily net assets. Such fee is accrued daily and paid monthly.
The Adviser has agreed, under the terms of the advisory agreement, to reimburse
the Fund to the extent that its aggregate expenses (exclusive of interest,
taxes, brokerage, distribution fee, extraordinary expenses and certain other
expenses) exceed the limits prescribed by any state in which the Fund's shares
are qualified for sale. The Fund believes that the most restrictive expense
ratio limitation currently imposed by any state is 2.5% of the first $30
million of its average daily net assets, 2% of the next $70 million of its
average daily net assets and 1.5% of its average daily net assets in excess of
$100 million. No such reimbursement was required for the six months ended.
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.
Alliance Fund Distributors, Inc. (a wholly-owned subsidiary of the Adviser)
serves as the Distributor of the Fund's shares. The Distributor received
front-end sales charges of $1,829 from the sale of Class A shares and $475 in
contingent deferred sales charges imposed upon redemptions by shareholders of
Class B for the period ended April 30, 1995.
Brokerage commissions paid on securities transactions for the period ended
April 30, 1995, amounted to $40,400, none of which was paid to brokers
utilizing the services of the Pershing Division of Donaldson, Lufkin & Jenrette
Securities Corp., an affiliate of the Adviser.
NOTE C: DISTRIBUTION SERVICES AGREEMENT
The Fund has adopted a Distribution Services Agreement (the 'Agreement')
pursuant to Rule 12b-1 under the Investment Company Act of 1940. Under the
Agreement, the Fund pays a distribution fee to the Distributor at an annual
rate of up to .30 of 1% of the Fund's average daily net assets attributable to
Class A shares and 1% of the average daily net assets attributable to the Class
B shares. The fees are accrued daily and paid monthly. The Agreement provides
that the Distributor will use such payments in their entirety for distribution
assistance and promotional activities. The Distributor has incurred expenses in
excess of the distribution costs reimbursed by the Fund in the amount of
$349,576 and $3,891 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)
aggregated $5,333,591 and $1,020,644, respectively, for the period ended April
30, 1995. There were no purchases or sales of U.S. Government and government
agency obligations for the period ended April 30, 1995. At April 30, 1995, the
cost of securities for federal income tax purposes was the same as the cost for
financial reporting purposes.
12
Alliance All-Asia Investment Fund
NOTE E: CAPITAL STOCK
There are 9,000,000,000 shares of $0.001 par value capital stock authorized,
divided into three classes, designated Class A, Class B and Class C. Each class
consists of 3,000,000,000 authorized shares.
Transactions in capital stock were as follows:
SHARES AMOUNT
-------------- --------------
November 28, November 28
1994* 1994*
to to
April 30, 1995 April 30, 1995
-------------- --------------
CLASS A
Shares sold 208,281 $2,089,368
Shares redeemed (31,144) (311,012)
Net increase 177,137 $1,778,356
CLASS B
Shares sold 331,357 $3,331,911
Shares redeemed (36,214) (364,848)
Net increase 295,143 $2,967,063
CLASS C
Shares sold 37,741 $ 379,025
Shares redeemed (19,732) (197,887)
Net increase 18,009 $ 181,138
NOTE F: CONCENTRATON OF RISK
Investing in securities of foreign companies involves special risks which
include revaluation of currency and future adverse political and economic
developments. Moreover, securities of many foreign companies and their markets
may be less liquid and their prices more volatile than those of comparable U.S.
companies. The Fund invests in securities issued by enterprises that are
undergoing, or that have undergone, privatization. Privatization is a process
through which the ownership and control of companies or assets changes in whole
or in part from the public sector to the private sector. Through privatization
a government or state divests or transfers all or a portion of its interest in
a state enterprise to some form of private ownership. Therefore, the Fund is
susceptible to the government renationalization of these enterprises and
economic factors adversely affecting the economies of these emerging market
countries. In addition, these securities created through privatization may be
less liquid and subject to greater volatility than securities of more developed
countries.
* Commencement of operations
13
FINANCIAL HIGHLIGHTS Alliance All-Asia Investment Fund
Selected Data For A Share of Capital Stock Outstanding Throughout Each Period
CLASS A CLASS B CLASS C
------------ ---------- -----------
Nov. 28, Nov. 28, Nov. 28,
1994* to 1994* to 1994* to
April 30, April 30, April 30,
1995 1995 1995
--------- ---------- ------------
Net asset value, beginning of period $ 10.00 $ 10.00 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income .11** .09** .08**
Net realized and unrealized loss on
investments .13 .13 .16
Net increase in net asset value from
operations .24 .22 .24
Net asset value, end of period $ 10.24 $ 10.22 $ 10.24
TOTAL RETURN
Total investment return based on
net asset value(b) 2.40% 2.20% 2.40%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $1,917 $3,019 $ 185
Ratio to average net assets of:
Expenses, net of waivers/reimbursements .19%(a) .90%(a) .71%(a)
Expenses, before waivers/reimbursements 11.71%(a) 12.35%(a) 11.80%(a)
Net investment income, net of
waivers/reimbursements 3.44%(a) 2.73%(a) 2.87%(a)
Portfolio turnover rate 51% 51% 51%
* Commencement of operations.
** Net of fee waived and expenses reimbursed by the Adviser.
(a) Annualized.
(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 period of less than one year is
not annualized.
14
