ALLIANCE ALL-ASIA INVESTMENT FUND
ANNUAL REPORT
OCTOBER 31, 1996
LETTER TO SHAREHOLDERS ALLIANCE ALL-ASIA INVESTMENT FUND, INC.
_______________________________________________________________________________
December 17, 1996
Dear Shareholder:
We are pleased to provide the annual report to shareholders of the Alliance
All-Asia Investment Fund for the 12 months ended October 31, 1996. Since the
beginning of the fiscal year in November of 1995, the Asian-Pacific markets
have risen about 3.5%, though the most recent six-month period has seen a
decline of over 12%.
INVESTMENT RESULTS
In the table below, the Fund's performance is shown. For comparison, the
performance of the overall stock markets of the Far East, represented by the
unmanaged Morgan Stanley Pacific Index, is shown, along with performance for
the Lipper Pacific Region Funds Average. The Lipper peer group average reflects
performance of 38 funds with investment objectives similar to that of the
All-Asia Investment Fund. As you can see in the chart below, your Fund
outperformed the Morgan Stanley index for the six- and twelve-month periods
ended October 31. The Fund also outperformed its Lipper peer group average for
the fiscal year.
TOTAL RETURNS FOR THE
PERIODS ENDED OCTOBER 31, 1996
6 MONTHS 12 MONTHS
-------------- --------------
ALLIANCE ALL-ASIA INVESTMENT FUND
Class A -9.43% 6.43%
Class B -9.77 5.49
Class C -9.76 5.59
MORGAN STANLEY PACIFIC INDEX -12.40 3.51
LIPPER PACIFIC REGION FUNDS AVERAGE -7.38 5.10
THE MORGAN STANLEY INDEX IS UNMANAGED.
The Fund's total returns are based on the net asset values of each class of
shares as of October 31. Additional investment results appear on page 3.
During the fiscal year, Fund performance benefited from stock selection in
several markets, including Malaysia, Thailand, India, and Hong Kong, as well as
from an overweight position in Malaysia. Despite superior stock selection,
overweight positions in South Korea and Thailand detracted from performance, as
those markets saw significant downturns in the past few months.
TIME TO BUILD ASIAN EXPOSURE
Valuations in the U.S. stock market have risen significantly relative to those
in Asia, despite declines in Asian interest rates. At this point in time, with
the possible exception of Hong Kong equities, we are seeing one of the biggest
divergences between U.S. and Asian price-earnings multiples in recent memory.
The Fund continues to present an outstanding investment opportunity for
investors wishing to switch out of the U.S. stock market into Asian equities.
The Fund has maintained relatively low exposure to those markets that are
highly correlated to the U.S. stock market, such as Hong Kong, and holds
overweight positions in markets with historically low correlation to the U.S.
market, such as South Korea and India.
In the 12 months ended October 31, Malaysia and Hong Kong were each up about
28% in U.S. dollar terms, while Korea and Thailand were both down approximately
the same amount. Much of the decline in the Korean and Thai markets came in the
second half of the fiscal year, brought about largely by political uncertainty
in Thailand and a worsening current account situation in Korea. The Japanese
stock market was up only 1% in U.S. dollar terms during the period, as was the
Indonesian market. Australian and New Zealand equities performed well, up 18%
and 16%, respectively.
We expect the dollar to weaken versus the Japanese yen in the next few months
as U.S. domestic demand picks up while the Japanese economy continues with very
low growth. We also expect Japanese trade numbers to show positive year-on-year
growth by the second quarter of 1997, strengthening our case for a stronger
Japanese yen.
1
ALLIANCE ALL-ASIA INVESTMENT FUND, INC.
_______________________________________________________________________________
EXPORT GROWTH TO PICK UP
Any rise in U.S. growth during 1997 should translate into better performance
throughout Asia. The rise in Asian exports, combined with declining imports as
private fixed investment slows from historically high levels, should result in
an improvement in the current account balances of countries such as Korea and
Thailand. In the context of a world where growth rates are generally anemic,
Asia, excluding Japan, continues to stand out as a star performer, with growth
rates in excess of 7% on average. At the same time, the monetary picture is
relatively positive. Asian currencies are not overvalued and investment inflows
are strong. We see rates coming down in virtually all markets, with the
possible exceptions of Hong Kong and Japan.
Recent economic data from Japan has been disappointing. Adding to weak consumer
consumption, a recent food poisoning epidemic has constrained consumption of
even basic items such as fresh meat and fish. Consumer durables, however,
appear to be resilient and capital expenditures remain strong. We believe the
housing market should see attractive growth as purchasers attempt to beat the
consumption tax increase slated for April 1997. While monetary policy is likely
to remain loose for the next six months, fiscal policy tightening could cause
the weak recovery to become even more sluggish.
PORTFOLIO STRATEGY
We continue to adhere to a research-intensive stock selection philosophy,
seeking growth stocks with what we consider to be reasonable valuations. We
expect strong earnings momentum for a number of our holdings in communication,
consumer, and financial stocks over the next year. Many of these companies have
growth rates that are higher than those of their local economies, as well as
growth rates of their counterparts in other regions of the world.
Country weightings are an outcome of the stock selection process; we seek to
identify superior companies at attractive valuations rather than maintain
specified country weightings. Our search for such companies has led to
substantial portfolio holdings in Malaysia, the Philippines, Thailand, India,
Indonesia, and South Korea. Conversely, only a small portion of the portfolio's
assets are invested in Hong Kong, as we believe few Hong Kong stocks are
attractively valued at this time. The portfolio has a relatively small stake in
Japanese equities, as growth prospects outside of the technology sector are not
encouraging. We are adding to some of our positions in India and Indonesia
given price weaknesses in some stocks that we favor. In Malaysia, we are
trimming our exposure to the gaming sector, following strong performance in
these holdings in the past few months.
We are optimistic that 1997 will be a good year for Asian equities. As noted
earlier, valuations for Asian stocks are at quite attractive levels compared to
valuations in the U.S. market. Inflation levels are stable, and interest rates
are likely to fall in a number of Asian countries. At the same time, growth
rates are strong throughout the region, with the exception of Japan. We see the
current period of market uncertainty as an opportunity to add to portfolio
holdings at attractive prices.
As always, we thank you for your continued interest and investment in the
Alliance All-Asia Investment Fund. We look forward to reporting its progress to
you again in the new year.
Sincerely,
John D. Carifa
Chairman and President
A. Rama Krishna
Senior Vice President
SHARES OF THE FUND ARE NOT DEPOSITS OR OBLIGATIONS OF, GUARANTEED OR ENDORSED
BY, ANY BANK; FURTHER, SUCH SHARES ARE NOT FEDERALLY INSURED BY THE FEDERAL
DEPOSIT INSURANCE CORPORATION, THE FEDERAL RESERVE BOARD, OR ANY OTHER AGENCY.
SHARES OF THE FUND INVOLVE INVESTMENT RISKS, INCLUDING THE POSSIBLE LOSS OF
PRINCIPAL.
2
INVESTMENT OBJECTIVE AND POLICIES ALLIANCE ALL-ASIA INVESTMENT FUND, INC.
_______________________________________________________________________________
Alliance All-Asia Investment Fund seeks long-term capital appreciation. The
Fund invests principally in a non-diversified portfolio of equity securities
issued by companies based in Asia and the Pacific region.
INVESTMENT RESULTS
_______________________________________________________________________________
AVERAGE ANNUAL TOTAL RETURN AS OF OCTOBER 31, 1996
CLASS A SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
------------ ------------
. One Year +6.43% +1.94%
. Since Inception* +5.66% +3.33%
CLASS B SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
------------ ------------
. One Year +5.49% +1.49%
. Since Inception* +4.97% +3.48%
CLASS C SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
------------ ------------
. One Year +5.59% +4.59%
. Since Inception* +5.02% +5.02%
The total returns reflect reinvestment of dividends and/or capital gains
distributions in additional shares--with and without the effect of the 4.25%
maximum front-end sales charge for Class A or applicable contingent deferred
sales charge for Class B (4% year 1, 3% year 2, 2% year 3, 1% year 4) and Class
C (1% year 1). 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:11/28/94
3
ALLIANCE ALL-ASIA INVESTMENT FUND, INC.
_______________________________________________________________________________
ALLIANCE ALL-ASIA INVESTMENT FUND
$10,000 INVESTMENT OVER LIFE OF FUND:
11/28/94 TO 10/31/96
$11,500
$11,000
$10,500
$10,000
$9,500
$9,000
ALLIANCE ALL-ASIA
CLASS A: $10,653
LIPPER PACIFIC REGION
FUNDS AVERAGE
$10,307
MSCI PACIFIC INDEX
$9,751
11/28/94 10/31/96
This chart illustrates the total value of a hypothetical $10,000 investment in
Class A shares. The chart reflects the deduction of the maximum 4.25% sales
charge from an initial $10,000 investment and assumes the reinvestment of
dividends and capital gains. Performance for Class B and C shares will vary
from the results shown above due to differences in expenses charged to those
classes. Results should not be considered representative of future gains or
losses.
Both the Morgan Stanley Pacific Index and the Lipper Pacific Region Funds
Average are unmanaged. The broad-based Morgan Stanley Index is a common measure
of overall stock market activity in the Far East. The Lipper average reflects
performance of 38 funds with investment objectives that are generally similar
to that of the Alliance All-Asia Investment Fund.
When comparing Alliance All-Asia Investment Fund to the indices shown above,
remember that sales charges and expenses are not reflected in the performance
of the MSCIPacific Index and sales charges are not reflected in the Lipper
average.
Alliance All-Asia
MSCI Pacific Index
Lipper Pacific Region Funds Average
4
TEN LARGEST HOLDINGS
OCTOBER 31, 1996 ALLIANCE ALL-ASIA INVESTMENT FUND, INC.
_______________________________________________________________________________
PERCENT OF
COMPANY U.S.$ VALUE NET ASSETS
- -------------------------------------------------------------------------------
Korea Mobile Telecom Corp. (ADR)--Provides mobile
telecommunications and radio paging services $ 2,175,000 5.4%
PT HM Sampoerna--Multi-Industry Indonesian company 2,035,526 5.1
Korea Electric Power (ADR)--Generates and supplies
electric power to industrial and residential
customers 1,818,000 4.5
Berjaya Sports Toto--Provides management services
and has operations in investment holdings,
property development and computer services 1,470,216 3.7
Magnum Corp. Berhad--Provides finance, printing
and resort management services. 1,425,434 3.5
Resorts World Berhad--Operates a tourist resort
at Genting Highlands 1,423,313 3.5
The Thai Farmers Bank, Ltd.--Provides commercial
banking services in Thailand and overseas 1,355,462 3.4
Total Access Communication, Plc.--Provides
cellular mobile telecommunications services. 1,262,700 3.1
Bangkok Bank Co., Ltd.--Provides commercial
banking services in Thailand and overseas 1,226,907 3.0
PT Indosat--Provides international
telecommunication services 1,053,278 2.6
$15,245,836 37.8%
INDUSTRY DIVERSIFICATION
OCTOBER 31, 1996
_______________________________________________________________________________
U.S. $ VALUE PERCENT OF NET ASSETS
- -------------------------------------------------------------------------------
Aerospace & Defense $ 36,913 0.1%
Banking 7,318,609 18.1
Basic Industries 1,244,133 3.1
Capital Goods 608,323 1.5
Consumer Manufacturing 1,710,695 4.3
Consumer Services 7,302,837 18.1
Consumer Staples 2,933,540 7.3
Energy 62,032 0.1
Finance 3,776,932 9.4
Healthcare 357,690 0.9
Multi-Industry 3,097,692 7.7
Technology 1,656,309 4.1
Transportation 420,085 1.0
Utilities 9,538,933 23.7
Total Investments 40,064,723 99.4
Cash and receivables, net of liabilities 258,136 0.6
Net Assets $40,322,859 100.0%
5
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1996 ALLIANCE ALL-ASIA INVESTMENT FUND, INC.
_______________________________________________________________________________
COMPANY SHARES U.S. $ VALUE
- -------------------------------------------------------------------------
COMMON STOCKS-99.1%
AUSTRALIA-4.2%
Coca-Cola Amatil, Ltd. 13,352 $ 183,577
Goldfields, Ltd. 4,176 8,538
Qantas Airways, Ltd. 116,382 169,698
Tab Corp Holdings, Ltd. 59,750 281,726
WMC, Ltd. 62,458 392,494
Woolworths, Ltd. 276,236 637,009
------------
1,673,042
HONG KONG-13.8%
Asia Satellite Telecom (a) 179,000 474,574
Dao Heng Bank Group, Ltd. 182,000 800,290
First Pacific Co. 522,355 722,847
Guangshen Railway (ADR) (a) 15,000 279,375
Guoco Group, Ltd. 56,000 296,216
HSBC Holdings, Plc. 32,200 655,894
Hutchison Whampoa, Ltd. 58,000 405,059
Hysan Development Co., Ltd. 99,000 317,529
New World Infrastructure (a) 16 40
Sun Hung Kai Properties, Ltd. 41,000 466,620
Swire Pacific, Ltd. Cl. A 38,000 336,644
Television Broadcasting, Ltd. 125,000 438,911
Wharf Holdings, Ltd. 93,000 383,681
------------
5,577,680
INDIA-5.1%
Bajaj Auto, Ltd. (GDR) 24,000 768,000
Industrial Credit & Inv. (GDR) (b) 52,000 455,000
State Bank Of India (GDR) (a) (b) 42,000 634,200
Steel Authority Of India (GDR) 22,000 184,250
------------
2,041,450
INDONESIA-10.4%
PT HM Sampoerna 219,000 2,035,526
PT Indosat 348,000 1,053,278
PT Semen Cibinong 15,000 32,843
PT Semen Gresik 14,000 40,270
PT Telekomunikasi
Indonesia (ADR) 496,500 740,711
Series B 10,000 300,000
------------
4,202,628
JAPAN-16.5%
Amano Corp. 5,000 59,765
Asahi Glass Co., Ltd. 11,000 116,013
Bank Of Tokyo-Mitsubishi 8,200 167,200
Canon, Inc. 10,000 191,598
Chiba Bank, Ltd. 2,000 15,047
Dai Nippon Printing Co. Ltd. 4,000 67,499
Daifuku Co., Ltd. 4,000 49,218
Daito Trust Construction Co. Ltd. 7,300 92,389
Daiwa Securities Co., Ltd. 3,000 32,431
DDI Corp. 84 631,218
East Japan Railway Co. 20 91,932
Eisai Co., Ltd. 4,200 75,303
Fuji Photo Film 1,000 28,740
Furakawa Co., Ltd. 11,000 47,952
Hirose Electric 4,000 237,652
Honda Motor Co. 3,000 71,717
House Foods Industry 1,000 17,314
Hoya Corp. 6,000 197,223
Ishikawajima-Harima Heavy Industries 8,000 36,913
Japan Securities Finance 16,000 213,746
Japan Tobacco, Inc. 11 77,729
Kamigumi Co., Ltd. 5,000 38,671
Kandenko Co., Ltd. 4,200 45,404
Kao Corp. 8,000 94,217
Kirin Brewery Co., Ltd. 4,000 41,132
Kokuyo 3,000 74,354
Kuraray Co., Ltd. 7,000 67,674
Kyocera Corp. 6,000 396,027
Mabuchi Motor Co. 1,000 50,976
Maeda Road Construction 1,000 14,414
Matsushita Electric Industrial Co. 9,000 143,962
Matsushita Electric Works 6,000 58,007
6
ALLIANCE ALL-ASIA INVESTMENT FUND, INC.
_______________________________________________________________________________
COMPANY SHARES U.S. $ VALUE
- -------------------------------------------------------------------------
Mitsubishi Heavy Industries, Ltd. 7,000 $ 53,832
Mitsubishi Materials Corp. 4,000 17,789
Mitsubishi Oil Co. 6,000 44,243
Mitsui Marine & Fire Insurance Co. 10,000 65,038
Mitsui Trust & Banking 18,000 174,020
National House Industrial 3,000 43,241
NGK Insulators 2,000 20,214
Nikko Securities Co. 5,000 47,899
Nippon Express Co., Ltd. 6,000 48,778
Nippon Light Metal Co. 6,000 28,898
Nippon Steel Co. 13,000 37,933
Nisshin Steel Co., Ltd. 25,000 77,342
NKK Corp. (a) 18,000 45,245
Nomura Securities Co., Ltd. 5,000 82,616
Osaka Gas Co. 12,000 37,124
Rohm Co. 4,000 237,300
Sankyo Co., Ltd. 1,000 24,785
Santen Pharmaceutical Co. 1,000 21,181
Seven-Eleven Japan 4,200 244,366
Shimano, Inc. 3,000 52,733
Shimizu Corp. 5,000 45,263
Shiseido Co., Ltd. 5,000 58,446
Sony Music Entertainment Inc. 2,000 77,166
Sumitomo Electric Industries 4,000 52,733
Sumitomo Marine & Fire Insurance Co. 6,000 43,030
Sumitomo Realty and Development 7,000 50,940
Sumitomo Rubber Industries 4,000 28,335
Taisho Pharmaceutical 2,000 39,726
Takeda Chemical Industries 2,000 34,277
TDK Corp. 5,000 293,549
Toagosei Co., Ltd. 3,000 12,867
Tokai Bank 5,000 58,007
Tokyo Electric Power Co. 3,010 69,046
Tokyo Gas Co., Ltd. 25,000 78,001
Tokyo Steel Mfg. Co. 11,000 170,153
Toyo Kanetsu 3,000 12,234
Toyota Motor Corp. 8,000 189,137
UBE Industries, Ltd. 4,000 12,937
Ushio, Inc. 7,000 73,211
Yakult Honsha 3,000 37,441
Yamanouchi Pharmaceutical 8,000 162,419
Yamatake Honeywell 4,000 67,147
Yamazaki Baking Co., Ltd. 2,000 31,816
------------
6,645,895
MALAYSIA-16.2%
AMMB Holdings Berhad 142,000 961,092
Berjaya Sports Toto 391,000 1,470,216
Commerce Asset Holdings Berhad 100,000 653,077
Magnum Corp. Berhad 826,000 1,425,434
Malakoff Berhad 90,000 406,095
Malayan Banking Berhad 20,000 197,902
Resorts World Berhad 248,000 1,423,313
------------
6,537,129
NEW ZEALAND-1.9%
Air New Zealand, Ltd. Cl. B 2,000 4,881
Fletcher Challenge, Ltd. 29,000 48,418
Lion Nathan, Ltd. 138,000 356,343
Telecom Corp. of New Zealand 65,000 337,984
------------
747,626
PHILIPPINES-6.7%
Alson's Cement Corp. 163,000 62,024
International Container Terminal Svcs., Inc. 26,250 17,230
Manila Electric Co. Series B 78,000 572,831
Metropolitan Bank & Trust Co. 23,750 524,163
Philippine Commercial International Bank 57,000 737,443
Philipino Telephone Corp. (a) 901,000 797,118
------------
2,710,809
7
PORTFOLIO OF INVESTMENTS (CONTINUED) ALLIANCE ALL-ASIA INVESTMENT FUND, INC.
_______________________________________________________________________________
COMPANY SHARES U.S. $ VALUE
- -------------------------------------------------------------------------
SINGAPORE-2.3%
Overseas-Chinese Banking Corp., Ltd. 500 $ 5,714
Singapore Press Holdings Ltd. 56,600 940,119
------------
945,833
SOUTH KOREA-10.7%
Hyundai Motor (GDR) 1,000 11,250
Korea Electric Power (ADR) 101,000 1,818,000
Korea Mobile Telecom Corp. (ADR) 174,000 2,175,000
Korean Air Lines 5,000 93,192
Pohang Iron & Steel Co. (ADR) 8,000 166,000
Shinhan Bank 2,740 44,105
------------
4,307,547
TAIWAN-0.3%
Advanced Semi-Conductor Engineering
(GDR) (a) (b) 14,400 102,960
THAILAND-11.0%
Bangkok Bank Co., Ltd. 115,000 1,226,907
Bank Of Ayudhya 120,000 343,597
Phatra Thanakit Co., Ltd. 72,000 266,876
The Thai Farmers Bank, Ltd. 176,000 1,346,146
Total Access Communication Plc. (b) 183,000 1,262,700
------------
4,446,226
UNITS OR
PRINCIPAL
AMOUNT
COMPANY (000) U.S. $ VALUE
- -------------------------------------------------------------------------
Total Common Stocks
(cost $41,811,244) $39,938,825
CONVERTIBLE DEBT OBLIGATION-0.3%
JAPAN-0.3%
Sumitomo Bank International
0.75%, 05/31/01
(cost $109,886) Y 12,000 115,750
RIGHTS-0.0%
NEW ZEALAND-0.0%
Air New Zealand Rts. 11/15/96 (a)
(cost $623) 545 567
WARRANTS-0.0%
HONG KONG-0.0%
Hysan Development Wts. 4/30/98 (a) 550 265
THAILAND-0.0%
The Thai Farmers Bank, Ltd. Wts. 9/15/02 (a) 9,500 9,316
Total Warrants
(cost $9,409) 9,581
TOTAL INVESTMENTS-99.4%
(cost $41,931,162) 40,064,723
Other assets less liabilities-0.6% 258,136
NET ASSETS-100% $40,322,859
(a) Non-income producing security.
(b) Securities are exempt from registration under Rule 144A of the Securities
Act of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At October 31, 1996,
these securities amounted to $2,454,860 or 6.1% of net assets.
Glossary of Terms:
ADR - American Depository Receipt.
GDR - Global Depository Receipt.
See notes to financial statements.
8
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1996 ALLIANCE ALL-ASIA INVESTMENT FUND, INC.
_______________________________________________________________________________
ASSETS
Investments in securities, at value (cost $41,931,162) $40,064,723
Receivable for investment securities sold 1,283,422
Receivable for capital stock sold 161,037
Deferred organization expenses 124,256
Dividends and interest receivable 81,456
Total assets 41,714,894
LIABILITIES
Due to custodian 58,848
Payable for investment securities purchased 922,656
Payable for capital stock redeemed 141,431
Advisory fee payable 30,652
Distribution fee payable 28,184
Accrued expenses 210,264
Total liabilities 1,392,035
NET ASSETS $40,322,859
COMPOSITION OF NET ASSETS
Capital stock, at par $ 3,685
Additional paid-in capital 41,075,668
Accumulated net investment loss (4,102)
Accumulated net realized gain on investments and foreign
currency transactions 1,114,906
Net unrealized depreciation of investments and foreign
currency denominated assets and liabilities (1,867,298)
$40,322,859
CALCULATION OF MAXIMUM OFFERING PRICE
CLASS A SHARES
Net asset value and redemption price per share ($12,284,371/
1,113,189 shares of capital stock issued and outstanding) $11.04
Sales charge--4.25% of public offering price .49
Maximum offering price $11.53
CLASS B SHARES
Net asset value and offering price per share ($23,783,464/
2,181,843 shares of capital stock issued and outstanding) $10.90
CLASS C SHARES
Net asset value and offering price per share ($4,227,718/
387,645 shares of capital stock issued and outstanding) $10.91
ADVISOR CLASS SHARES
Net asset value, redemption and offering price per share($27,306
/2,474 shares of capital stock issued and outstanding) $11.04
See notes to financial statements.
9
STATEMENT OF OPERATIONS
YEAR ENDED OCTOBER 31, 1996 ALLIANCE ALL-ASIA INVESTMENT FUND, INC.
_______________________________________________________________________________
INVESTMENT INCOME
Dividends(net of foreign taxes withheld of $61,882) $ 389,977
Interest 81,818 $ 471,795
EXPENSES
Advisory fee 290,315
Distribution fee - Class A 27,109
Distribution fee - Class B 172,838
Distribution fee - Class C 27,114
Custodian 272,197
Audit and legal 93,830
Transfer agency 90,951
Registration 48,831
Administrative 43,547
Amortization of organization expenses 41,156
Directors' fees 37,567
Printing 26,150
Miscellaneous 18,299
Total expenses 1,189,904
Less expenses waived by Adviser (see Note B) (71,729)
Net expenses 1,118,175
Net investment loss (646,380)
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain on investment transactions 1,748,928
Net realized gain on foreign currency transactions 28,180
Net change in unrealized appreciation of:
Investments (1,885,558)
Foreign currency denominated assets and liabilities (4,359)
Net loss on investments and foreign currency transactions (112,809)
NET DECREASE IN NET ASSETS FROM OPERATIONS $ (759,189)
See notes to financial statements.
10
STATEMENT OF CHANGES IN NET ASSETS ALLIANCE ALL-ASIA INVESTMENT FUND, INC.
_______________________________________________________________________________
YEAR ENDED NOV. 28,1994*
OCTOBER 31, TO
1996 OCT. 31,1995
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment loss $ (646,380) $ (123,468)
Net realized gain on investments and foreign
currency transactions 1,777,108 184,401
Net change in unrealized appreciation of
investments and foreign currency denominated
assets and liabilities (1,889,917) 22,619
Net increase (decrease) in net assets from
operations (759,189) 83,552
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net realized gain on investments
Class A (21,900) -0-
Class B (46,814) -0-
Class C (5,445) -0-
CAPITAL STOCK TRANSACTIONS
Net increase 32,518,713 8,451,942
Total increase 31,685,365 8,535,494
NET ASSETS
Beginning of period 8,637,494 102,000
End of period (including undistributed net
investment income of $68,726 at October 31,1995) $40,322,859 $8,637,494
* Commencement of operations
See notes to financial statements.
11
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 1996 ALLIANCE ALL-ASIA INVESTMENT FUND, INC.
_______________________________________________________________________________
NOTE A: SIGNIFICANT ACCOUNTING POLICIES
Alliance All-Asia Investment Fund, Inc. (the "Fund"), was organized as a
Maryland corporation on September 21, 1994 and is registered under the
Investment Company Act of 1940 as a non-diversified, open-end management
investment company. On April 15, 1996 the Board of Directors approved the
creation of the fourth class of shares, Advisor Class shares. 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 each 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 Class A, Class B, Class C and Advisor
Class shares. Distribution of Advisor Class shares commenced on October 2,
1996. 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 purchased on or after July 1,
1996 are subject to a contingent deferred sales charge of 1.00% 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 solely to
investors participating in fee-based programs. 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 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, unless this method does not represent fair value.
Securities for which market quotations are not readily available and restricted
securities are valued in good faith at fair value using methods 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 $201,500 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 gain on foreign currency transactions represents foreign exchange
gains and losses from sales and maturities of securities and foreign currency
contracts, the holding of foreign currencies, currency gains or losses realized
between the trade and settlement dates on foreign 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 actually received or paid. Net unrealized currency gains and losses
from valuing foreign currency denominated assets and liabilities at period end
exchange rates are reflected as a component of net change in unrealized
appreciation (depreciation) 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.
12
ALLIANCE ALL-ASIA INVESTMENT FUND, INC.
_______________________________________________________________________________
5. 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 securities are
purchased or sold. Investment 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 and are determined in accordance with income tax regulations.
7. RECLASSIFICATION OF NET ASSETS
As of October 31, 1996, the Fund reclassified certain components of net assets.
The reclassification resulted in a net increase to additional paid-in capital
of $6,698 and a net decrease to accumulated net investment loss and accumulated
net realized gain on investments and foreign currency transactions of $573,552
and $580,250 respectively. These reclassifications were the result of permanent
book and tax differences, primarily resulting from foreign currency gains. Net
assets were not affected by this change.
NOTE B: ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under an investment advisory agreement, the Fund pays 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 fees, foreign custody fees, extraordinary expenses and
certain other expenses) exceed the limits prescribed by any state in which the
Fund's shares are qualified for sale. At October 31, 1996 the Adviser has
voluntarily agreed to waive a portion of its Advisory fees. Such waiver
amounted to $71,729 for the year ended October 31, 1996.
Under the terms of an Administrative Agreement, the Fund pays Alliance Capital
Management, L.P. (the "Administrator"), a monthly fee equal to the annualized
rate of .15 of 1% of the Fund's average daily net assets. Such compensation
amounted to $43,547 for the year ended October 31, 1996.
The Administrator provides administrative functions to the Fund as well as
other clerical services. The Administrator also prepares financial and
regulatory reports for the Fund.
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 $57,729 for the year ended October 31, 1996.
Alliance Fund Distributors, Inc. (a wholly-owned subsidiary of the Adviser)
serves as the Distributor of the Fund's shares. The Distributor received
front-end sales charges of $13,026 from the sale of Class A shares and $9,985
in contingent deferred sales charges imposed upon redemptions by shareholders
of Class B shares for the year ended October 31, 1996.
Brokerage commissions paid on securities transactions for the year ended
October 31, 1996 amounted to $395,188, of which $4,181 was paid to a broker
utilizing the services of an affiliate of the Adviser.
13
NOTES TO FINANCIAL STATEMENTS
(CONTINUED) ALLIANCE ALL-ASIA INVESTMENT FUND, INC.
_______________________________________________________________________________
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 both
Class B and Class C shares. There is no distribution fee on the Advisor Class
shares. The fees are accrued daily and paid monthly. The Agreement provides
that the Distributor will use such payments in their entirety for distribution
assistance and promotional activities. The Distributor has incurred expenses in
excess of the distribution costs reimbursed by the Fund in the amount of
$1,402,190 and $93,183 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 and U.S.
Government obligations) aggregated $50,500,866 and $18,095,395, respectively,
for the year ended October 31, 1996. There were no purchases or sales of U.S.
government or government agency obligations for the year ended October 31,
1996.
At October 31, 1996, the cost of securities for federal income tax purposes was
$41,981,024. Gross unrealized appreciation of investments was $1,887,090 and
gross unrealized depreciation of investments was $3,803,391 resulting in net
unrealized depreciation of ($1,916,301).
FORWARD EXCHANGE CURRENCY CONTRACT
The Fund enters into forward exchange currency contracts for investment
purposes and to hedge its exposure to changes in foreign currency exchange
rates on its foreign portfolio holdings and to hedge certain firm purchase and
sale commitments denominated in foreign currencies. A forward exchange currency
contract is a commitment to purchase or sell a foreign currency at a future
date at a negotiated forward rate. The gain or loss arising from the difference
between the original contracts and the closing of such contracts is included in
net realized gains or losses on foreign currency transactions.
Fluctuations in the value of forward exchange currency contracts are recorded
for financial reporting purposes as unrealized gains or losses by the Fund.
The Fund's custodian will place and maintain cash not available for investment
or other liquid high quality debt securities in a separate account of the Fund
having a value equal to the aggregate amount of the Fund's commitments under
forward exchange currency contracts entered into with respect to position
hedges.
Risks may arise from the potential inability of a counterparty to meet the
terms of a contract and from unanticipated movements in the value of foreign
currencies relative to the U.S. dollar. There were no forward exchange currency
contracts outstanding at October 31, 1996.
14
ALLIANCE ALL-ASIA INVESTMENT FUND, INC.
_______________________________________________________________________________
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. Each class consists of 3,000,000,000 authorized shares.
Transactions in capital stock were as follows:
SHARES AMOUNT
--------------------------- -----------------------------
YEAR ENDED NOV. 28,1994* YEAR ENDED NOV. 28,1994*
OCTOBER 31, TO OCTOBER 31, TO
1996 OCT. 31,1995 1996 OCT. 31,1995
------------ ------------- ------------- --------------
Shares sold 1,333,932 517,977 $ 15,498,925 $ 5,445,327
Shares issued in
reinvestment of
distributions 1,703 -0- 18,287 -0-
Shares converted
from Class B 19,434 -0- 233,351 -0-
Shares redeemed (516,471) (253,386) (5,861,457) (2,728,474)
Net increase 838,598 264,591 $ 9,655,755 $ 2,716,853
CLASS B
Shares sold 2,645,348 594,882 $ 30,130,477 $ 6,165,639
Shares issued in
reinvestment of
distributions 3,362 -0- 35,910 -0-
Shares converted
to Class A (19,621) -0- (233,415) -0-
Shares redeemed (944,132) (98,096) (10,813,924) (1,034,923)
Net increase 1,684,957 496,786 $ 19,119,048 $ 5,130,716
CLASS C
Shares sold 679,693 82,858 $ 7,727,714 $ 865,593
Shares issued in
reinvestment of
distributions 481 -0- 5,146 -0-
Shares redeemed (349,835) (25,652) (4,016,334) (261,220)
Net increase 330,339 57,206 $ 3,716,526 $ 604,373
OCT. 1,1996** OCT. 1,1996**
TO TO
OCT. 31,1996 OCT. 31,1996
------------- -------------
ADVISOR CLASS
Shares sold 2,474 $ 27,384
Shares issued in
reinvestment of
distributions -0- -0-
Shares redeemed -0- -0-
Net increase 2,474 $ 27,384
* Commencement of operations
** Commencement of distribution
15
FINANCIAL HIGHLIGHTS ALLIANCE ALL-ASIA INVESTMENT FUND, INC.
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
CLASS A
---------------------------
YEAR ENDED NOV. 28,1994(A)
OCTOBER 31, TO
1996 OCT. 31, 1995
----------- ---------------
Net asset value, beginning of period $10.45 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment loss(b) (.21)(c) (.19)(c)
Net realized and unrealized gain on investments .88 .64
Net increase in net asset value from operations .67 .45
LESS: DISTRIBUTIONS
Distributions from net realized gains on
investments and foreign currency transactions (.08) -0-
Net asset value, end of period $11.04 $10.45
TOTAL RETURN
Total investment return based on net asset value(d) 6.43% 4.50%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $12,284 $2,870
Ratio to average net assets of:
Expenses, net of waivers/reimbursements 3.37% 4.42%(e)
Expenses, before waivers/reimbursements 3.61% 10.57%(e)
Net investment loss, net of waivers/
reimbursements (1.75)% (1.87)%(e)
Portfolio turnover rate 66% 90%
Average commission rate paid(g) $.0280 --
See footnote summary on page 19.
16
ALLIANCE ALL-ASIA INVESTMENT FUND, INC.
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
CLASS B
---------------------------
YEAR ENDED NOV. 28,1994(A)
OCTOBER 31, TO
1996 OCT. 31,1995
----------- ---------------
Net asset value, beginning of period $10.41 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment loss(b) (.28)(c) (.25)(c)
Net realized and unrealized gain on investments .85 .66
Net increase in net asset value from operations .57 .41
LESS: DISTRIBUTIONS
Distributions from net realized gains on
investments and foreign currency transactions (.08) -0-
Net asset value, end of period $10.90 $10.41
TOTAL RETURN
Total investment return based on net asset value(d) 5.49% 4.10%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $23,784 $5,170
Ratio to average net assets of:
Expenses, net of waivers/reimbursements 4.07% 5.20%(e)
Expenses, before waivers/reimbursements 4.33% 11.32%(e)
Net investment loss, net of waivers/
reimbursements (2.44)% (2.64)%(e)
Portfolio turnover rate 66% 90%
Average commission rate paid(g) $.0280 --
See footnote summary on page 19.
17
FINANCIAL HIGHLIGHTS (CONTINUED) ALLIANCE ALL-ASIA INVESTMENT FUND, INC.
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
CLASS C
---------------------------
YEAR ENDED NOV. 28,1994(A)
OCTOBER 31, TO
1996 OCT. 31,1995
----------- ---------------
Net asset value, beginning of period $10.41 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment loss(b) (.28)(c) (.35)(c)
Net realized and unrealized gain on investments .86 .76
Net increase in net asset value from operations .58 .41
LESS: DISTRIBUTIONS
Distributions from net realized gains on
investments and foreign currency transactions (.08) -0-
Net asset value, end of period $10.91 $10.41
TOTAL RETURN
Total investment return based on net asset value(d) 5.59% 4.10%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $4,228 $597
Ratio to average net assets of:
Expenses, net of waivers/reimbursements 4.07% 5.84%(e)
Expenses, before waivers/reimbursements 4.30% 11.38%(e)
Net investment loss, net of waivers/
reimbursements (2.42)% (3.41)%(e)
Portfolio turnover rate 66% 90%
Average commission rate paid(g) $.0280 --
See footnote summary on page 19.
18
ALLIANCE ALL-ASIA INVESTMENT FUND, INC.
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
ADVISOR CLASS
------------------
OCTOBER 2, 1996(F)
TO
OCTOBER 31, 1996
------------------
Net asset value, beginning of period $11.65
INCOME FROM INVESTMENT OPERATIONS
Net investment loss(b) -0-(c)
Net realized and unrealized loss on investments (.61)
Net decrease in net asset value from operations (.61)
LESS: DISTRIBUTIONS
Distributions from net realized gains on investments
and foreign currency transactions -0-
Net asset value, end of period $11.04
TOTAL RETURN
Total investment return based on net asset value(d) (5.24)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $27
Ratio to average net assets of:
Expenses, net of waivers/reimbursements 4.97%(e)
Expenses, before waivers/reimbursements 5.54%(e)
Net investment income, net of waivers/reimbursements 1.63%(e)
Portfolio turnover rate 66%
Average commission rate paid(g) $.0280
(a) Commencement of operations.
(b) Based on average shares outstanding.
(c) Net of expenses waived by the Adviser.
(d) 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.
(e) Annualized.
(f) Commencement of distribution.
(g) For fiscal years beginning on or after September 1, 1995, a fund is
required to disclosure its average commission rate per share for trades on
which commissions are charged.
19
REPORT OF ERNST & YOUNG LLP
INDEPENDENT AUDITORS ALLIANCE ALL-ASIA INVESTMENT FUND, INC.
_______________________________________________________________________________
TO THE SHAREHOLDERS AND BOARD OF DIRECTORS
ALLIANCE ALL-ASIA INVESTMENT FUND, INC.
We have audited the accompanying statement of assets and liabilities of
Alliance All-Asia Investment Fund, Inc. (the "Fund"), including the portfolio
of investments, as of October 31, 1996, and the related statement of operations
for the year ended, and the statement of changes in net assets and financial
highlights for the year ended October 31, 1996 and for the period from November
28, 1994 (commencement of operations) to October 21, 1995. These financial
statements and financial highlights are the responsibility of the Fund's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
October 31, 1996, by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Alliance All-Asia Investment Fund, Inc. at October 31, 1996, the results of its
operations for the year then ended, and the changes in its net assets and
financial highlights for the year ended October 31, 1996 and for the period
from November 28, 1994 to October 31, 1995 in conformity with generally
accepted accounting principles.
ERNST & YOUNG LLP
New York, New York,
December 12, 1996
20
ALLIANCE ALL-ASIA INVESTMENT FUND, INC.
_______________________________________________________________________________
DIRECTORS
JOHN D. CARIFA, CHAIRMAN AND PRESIDENT
DAVID H. DIEVLER (1)
JOHN H. DOBKIN (1)
W.H. HENDERSON (1)
STIG HOST (1)
RICHARD M. LILLY (1)
ALAN STOGA (1)
ROBERT C. WHITE (1)
OFFICERS
A. RAMA KRISHNA, SENIOR VICE PRESIDENT
KARAN TREHAN, SENIOR VICE PRESIDENT
THOMAS J. BARDONG, VICE PRESIDENT
NICHOLAS E. CROSSLAND, VICE PRESIDENT
KELLY A. MORGAN, VICE PRESIDENT
DANIEL V. PANKER, VICE PRESIDENT
EDMUND P. BERGAN, JR., SECRETARY
DOMENICK PUGLIESE, ASSISTANT SECRETARY
MARK D. GERSTEN, TREASURER AND CHIEF FINANCIAL OFFICER
VINCENT S. NOTO, CONTROLLER
PHYLLIS CLARKE, ASSISTANT CONTROLLER
CUSTODIAN
BROWN BROTHERS HARRIMAN & CO.
40 Water Street
Boston, MA 02109
PRINCIPAL UNDERWRITER
ALLIANCE FUND DISTRIBUTORS, INC.
1345 Avenue of the Americas
New York, NY 10105
LEGAL COUNSEL
SEWARD & KISSEL
One Battery Park Plaza
New York, NY10004
INDEPENDENT AUDITORS
ERNST & YOUNG LLP
787 Seventh Avenue
New York, NY10019
TRANSFER AGENT
ALLIANCE FUND SERVICES, INC.
P.O. Box 1520
Secaucus, NJ 07096-1520
Toll-free 1-(800)-221-5672
(1) Members of the Audit Committee.
21
THE ALLIANCE FAMILY OF MUTUAL FUNDS
_______________________________________________________________________________
FIXED INCOME
Alliance Bond Fund
U.S. Government Portfolio
Corporate Bond Portfolio
Alliance Global Dollar Government Fund
Alliance Global Strategic Income Trust
Alliance Mortgage Securities Income Fund
Alliance Limited Maturity Government Fund
Alliance Multi-Market Strategy Trust
Alliance North American Government Income Trust
Alliance Short-Term Multi-Market Trust
Alliance Short-Term U.S. Government Fund
Alliance World Income Trust
TAX-FREE INCOME
Alliance Municipal Income Fund
California Portfolio
Insured California Portfolio
Insured National Portfolio
National Portfolio
New York Portfolio
Alliance Municipal Income Fund II
Arizona Portfolio
Florida Portfolio
Massachusetts Portfolio
Michigan Portfolio
Minnesota Portfolio
New Jersey Portfolio
Ohio Portfolio
Pennsylvania Portfolio
Virginia Portfolio
MONEY MARKET
AFD Exchange Reserves
GROWTH
The Alliance Fund
Alliance Global Small Cap Fund
Alliance Growth Fund
Alliance Premier Growth Fund
GROWTH & INCOME
Alliance Strategic Balanced Fund
Alliance Balanced Shares
Alliance Conservative Investors Fund
Alliance Growth & Income Fund
Alliance Growth Investors Fund
Alliance Income Builder Fund
Alliance Utility Income Fund
AGGRESSIVE GROWTH
Alliance Quasar Fund
Alliance Technology Fund
INTERNATIONAL
Alliance All-Asia Investment Fund
Alliance International Fund
Alliance New Europe Fund
Alliance Worldwide Privatization Fund
CLOSED-END FUNDS
Alliance All-Market Advantage Fund
Alliance Global Environment Fund
ACM Government Income Fund
ACM Government Opportunity Fund
ACM Government Securities Fund
ACM Government Spectrum Fund
ACM Managed Dollar Income Fund
ACM Managed Income Fund
ACM Municipal Securities Income Fund
Alliance World Dollar Government Fund
Alliance World Dollar Government Fund II
The Austria Fund
The Korean Investment Fund
The Spain Fund
The Southern Africa Fund
CASH MANAGEMENT SERVICES
ACM Institutional Reserves
Government Portfolio
Prime Portfolio
Tax-Free Portfolio
Trust Portfolio
Alliance Capital Reserves
Alliance Government Reserves
Alliance Insured Account
Alliance Money Reserves
Alliance Municipal Trust
California Portfolio
Connecticut Portfolio
Florida Portfolio
General Portfolio
New Jersey Portfolio
New York Portfolio
Virginia Portfolio
Alliance Treasury Reserves
Alliance Money Market Fund
Prime Portfolio
Government Portfolio
General Municipal Portfolio
22
ALLIANCE ALL-ASIA INVESTMENT FUND
1345 Avenue of the Americas
New York, NY 10105
(800) 221-5672
ALLIANCE CAPITAL
INVESTING WITHOUT THE MYSTERY
THIS REPORT IS INTENDED SOLELY FOR DISTRIBUTION TO CURRENT SHAREHOLDERS
OF THE FUND.
R THESE REGISTERED SERVICE MARKS USED UNDER LICENSE FROM THE OWNER,
ALLIANCE CAPITAL MANAGEMENT L.P.
AAIAR
