ALLIANCE ALL-ASIA INVESTMENT FUND
SEMI-ANNUAL REPORT
APRIL 30, 1998
ALLIANCE CAPITAL
LETTER TO SHAREHOLDERS ALLIANCE ALL-ASIA INVESTMENT FUND
_______________________________________________________________________________
June 26, 1998
Dear Shareholder:
This semi-annual shareholder report reviews investment results and market
activity for Alliance All-Asia Investment Fund for the six and 12-month periods
ended April 30, 1998. We are pleased to inform you that Alliance All-Asia
Investment Fund is now being managed by Hiroshi Motoki. Mr. Motoki, a Senior
Vice President of Alliance Capital, the Fund's Adviser, is also Alliance's
Director of Japanese/Asian Equity Research. Prior to joining Alliance in 1994,
Mr. Motoki was a senior financial analyst for Ford Motor Company.
We also wish to inform you of a change to the Fund's non-fundamental investment
policies. Previously, the Fund's investments in Japanese equity securities have
been limited to a maximum of 50% of the Fund's assets. Many larger Asian
companies have diversified their business operations globally and are able to
compete on an international scale. We believe that many of these companies may
thus be able to enjoy strong growth despite the current economic difficulties
in Asia. Because many of these companies are located in Japan, we believe that
it would be in the best interests of the Fund to have the flexibility of
investing more than 50% of its assets in Japanese equity securities.
Accordingly, at Alliance's recommendation, the Board of Directors of the Fund
acted on June 11, 1998 to amend the Fund's non-fundamental investment policies
to permit the Fund to invest more than 50% of its assets in Japanese equity
securities.
INVESTMENT RESULTS
The following table shows how your Fund performed during the six and 12-month
periods ended April 30, 1998. For comparison, the table also provides
performance data for the Morgan Stanley Capital International All Country (MSCI
AC) Asia Pacific Index, which is a measure of the performance of stock markets
in 15 Asian countries, and for the Lipper Pacific Region Funds Average, which
consists of funds that concentrate their investments in equity securities with
primary trading markets or operations concentrated in the Western Pacific Basin
region or a single country within this region.
INVESTMENT RESULTS*
Periods Ended April 30, 1998
TOTAL RETURNS
6 MONTHS 12 MONTHS
---------- ----------
ALLIANCE ALL-ASIA INVESTMENT FUND
Class A -4.38% -28.40%
Class B -4.60% -28.86%
Class C -4.60% -28.83%
MSCI AC ASIA PACIFIC INDEX -8.60% -20.65%
LIPPER PACIFIC REGION FUNDS AVERAGE -9.11% -23.41%
* THE FUND'S INVESTMENT RESULTS ARE TOTAL RETURNS FOR THE PERIODS AND ARE
BASED ON THE NET ASSET VALUE OF EACH CLASS OF SHARES. ALL FEES AND EXPENSES
RELATED TO THE OPERATION OF THE FUND HAVE BEEN DEDUCTED, BUT NO ADJUSTMENT HAS
BEEN MADE FOR SALES CHARGES THAT MAY APPLY WHEN SHARES ARE PURCHASED OR
REDEEMED. TOTAL RETURN FOR ADVISOR CLASS SHARES WILL DIFFER DUE TO DIFFERENT
EXPENSES ASSOCIATED WITH THAT CLASS. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE
RESULTS.
THE MORGAN STANLEY CAPITAL INTERNATIONAL ALL COUNTRY (MSCI AC) ASIA
PACIFIC INDEX IS A TOTAL RETURN, CAPITALIZATION-WEIGHTED INDEX THAT MEASURES
THE PERFORMANCE OF STOCK MARKETS IN 15 PACIFIC REGION COUNTRIES INCLUDING
AUSTRALIA, CHINA (FREE)#, HONG KONG, INDIA, INDONESIA, JAPAN, KOREA, MALAYSIA,
NEW ZEALAND, PAKISTAN, PHILIPPINES, SINGAPORE, SRI LANKA, TAIWAN AND THAILAND.
AN INVESTOR CANNOT INVEST DIRECTLY IN AN INDEX. THE LIPPER PACIFIC REGION FUNDS
AVERAGE (LIPPER AVERAGE) CONSISTS OF FUNDS THAT CONCENTRATE THEIR INVESTMENTS
IN EQUITY SECURITIES WITH PRIMARY TRADING MARKETS OR OPERATIONS CONCENTRATED IN
THE WESTERN PACIFIC BASIN REGION OR A SINGLE COUNTRY WITHIN THIS REGION. THE
LIPPER AVERAGE INCLUDES 53 FUNDS FOR THE SIX-MONTH PERIOD, AND 45 FUNDS FOR THE
12-MONTH PERIOD.
# EXCLUDES SHARES WHICH ARE NOT READILY PURCHASED BY NON-LOCAL INVESTORS.
While all major Asian indices continued to fall during the period, your Fund
was able to sustain less damage than both the Fund's benchmark, the MSCI AC
Asia Pacific Index, and the Lipper Pacific Region Funds Average, for the
six-month period ending April 30, 1998. Your Fund's performance, relative to
its benchmark, is largely attributable to the Fund's overweight positions in
markets including India, Philippines and Australia as a result of our bottom-up
stock selection approach.
1
ALLIANCE ALL-ASIA INVESTMENT FUND
_______________________________________________________________________________
ECONOMIC REVIEW
Weak performance of most Asian economies and stock markets has continued over
the last six months ended April 30, 1998. Lax regulation of the financial
sector of these countries resulted in significant over dependence on short-term
foreign capital and over investment in a number of sectors including property.
A weak Japanese yen put pressure on Asian countries in the form of stronger
Japanese competitiveness in export markets, and decreased direct investment in
Asian countries.
Asian countries are now undergoing necessary structural changes in order to
emerge from this crisis. Governments in these countries have now embarked upon
reform programs, in most cases with aid from the International Monetary Fund to
facilitate this structural correction. Measures taken include re-capitalizing
the financial sector, improving bankruptcy laws, and easing foreign investment
regulations. We believe that economic conditions are near the bottom for most
of these countries, and we are optimistic about the long-term outlook for the
region.
MARKET PERFORMANCE
Most Asian markets were down in the six months ending April 30, 1998 as
economic fundamentals deteriorated. In U.S. dollar terms, stock markets in
Indonesia, South Korea, Hong Kong, India, and Japan all declined by 61.6%,
19.9%, 9.6%, 1.5%, and 10%, respectively. On the upside, the Australian and the
Philippine markets were up 8.5% and 6.1% in U.S. dollar terms, respectively.
Consequently, Asian countries in the region are now suffering from an
overcapacity situation which resulted from over investment during the past
several years. We also witnessed nationwide restructuring in Japan as evidenced
by the rising unemployment rate. We expect that most of these economies will be
at their lowest levels in 1998, and we believe that, with continued assistance
from the International Monetary Fund (IMF), the determination to undertake
structural reform and the successful implementation of those reforms, growth
can pick up in the future.
OUTLOOK AND STRATEGY
While most Asian markets having suffered significantly over the last year,
there are some good investment opportunities in the region. As of April 30,
1998, your Fund was overweighted in India, the Philippines, Hong Kong and
Australia.
We view the Indian economy as much healthier than the other economies within
the region. We expect economic growth in India to rise as government spending
and foreign direct investment boost the economy.
Going forward, the Philippines should also do well now that the political
uncertainty associated with the presidential elections is over. Export growth
in the Philippines continues to be a major catalyst in driving the Philippine
economy, and is a direct result of the strong growth in electronics exports.
And lastly, the Hong Kong stock market has suffered significantly over the six
months ended April 30, 1998. Hong Kong thus has a growing number of
attractively valued stocks, many of which in our view had been previously
overvalued.
During the reporting period, we initiated a position in Hoyts Cinemas Group.
Hoyts is the largest cinema exhibitor in Australia/ New Zealand and has a big
operation in the northeastern United States (U.S.). The company is in the
middle of an aggressive screen rollout in these markets. In addition, the
company is now expanding into the underscreened Latin American and western
European markets. We are forecasting EBITDA growth of 18% over the next five
years and we find the stock to be significantly undervalued at its current
levels.
We also participated in the initial public offering for the Chinese coal
producer, Yanzhou Coal Mining Co., Ltd. Yanzhou is one of the most profitable
coal mining companies globally, and it enjoys a significant advantage due to
its location in south China. (Yanzhou's location in south China is advantageous
because the company is conveniently located near a Chinese power company, which
is a heavy user of coal, and it is also located close to a port for
exportation.) In addition, Yanzhou enjoys a strong balance sheet and, going
forward, we expect that we will see profit growth driven by new mine
acquisitions.
At the end of the period, one of the Fund's largest holdings, and its largest
holding in Japan, was TDK Corp.
2
ALLIANCE ALL-ASIA INVESTMENT FUND
_______________________________________________________________________________
TDK manufactures magnetic tapes and floppy disks. Despite the competitive
environment, TDK made 27% more operating profit in its fiscal 1997 ended March
31, 1998, year-on-year. Honda Motor Co. is also among your Fund's top ten
largest holdings. We believe that Honda's efficient product development and
strong presence in the U.S. will continue to enhance shareholders' value in the
future.
As always, we thank you for your continued interest and investment in the
Alliance All-Asia Investment Fund. We look forward to reporting further
developments regarding your Fund and in the Asian markets later in this year.
Sincerely,
John D. Carifa
Chairman and President
Hiroshi Motoki
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.
3
INVESTMENT OBJECTIVE AND POLICIES ALLIANCE ALL-ASIA INVESTMENT FUND
_______________________________________________________________________________
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
NAV AND SEC AVERAGE ANNUAL TOTAL RETURNS AS OF APRIL 30, 1998
CLASS A SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
------------ ------------
One Year -28.40% -31.46%
Since Inception* -8.12% -9.27%
CLASS B SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
------------ ------------
One Year -28.86% -31.71%
Since Inception* -8.70% -8.96%
CLASS C SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
------------ ------------
One Year -28.83% -29.54%
Since Inception* -8.67% -8.67%
SEC AVERAGE ANNUAL TOTAL RETURNS AS OF THE MOST RECENT QUARTER-END (MARCH 31,
1998)
CLASS A CLASS B CLASS C
------- ------- -------
1 Year -31.94% -32.17% -30.02%
Since Inception* -8.47% -8.14% -7.84
The Fund's investment results represent average annual total returns. The NAV
and SEC returns reflect reinvestment of dividends and/or capital gains
distributions in additional shares without (NAV) and with (SEC) the effect of
the 4.25% maximum front-end sales charge for Class A or applicable contingent
deferred sales charge for Class B (4% year 1, 3% year 2, 2% year 3, 1% year 4);
and for Class C shares (1% year 1). Returns for Class A shares do not reflect
the imposition of the 1 year 1% contingent deferred sales charge for accounts
over $1,000,000. Total return for Advisor Class shares will differ due to
different expenses associated with that class.
SEC average annual total returns for the periods shown reflect reinvestment of
all distributions and deduction of the maximum 4.25% front-end sales charges
and applicable contingent deferred sales charges.
Past performance does not guarantee future results. Investment return and
principal value will fluctuate so that an investor's shares, when redeemed, may
be worth more or less than their original cost.
* Inception date for Classes A, B & C is 11/28/94.
4
TEN LARGEST HOLDINGS
APRIL 30, 1998 (UNAUDITED) ALLIANCE ALL-ASIA INVESTMENT FUND
_______________________________________________________________________________
PERCENT OF
COMPANY U.S. $ VALUE NET ASSETS
- -------------------------------------------------------------------------------
HSBC Holdings, Plc.--A holding company
whose subsidiaries are involved with
international banking and financial
services $ 1,252,505 6.4%
Cheung Kong Holdings, Ltd.--Involved in
property development and investment,
infrastructure, real estate management
and investment in securities 1,130,261 5.8
Sun Hung Kai Properties, Ltd.--Involved
in property development and investment,
hotel ownership, finance, construction,
insurance and other services 985,799 5.1
Hutchison Whampoa, Ltd.--An investment
holding company with operations in
property investment and development,
retail and manufacturing and other
services 643,119 3.3
TDK Corp.--Manufactures magnetic tapes
and floppy discs 631,833 3.2
Hindustan Petroleum--Refines crude oil
and manufactures petroleum products 562,190 2.9
Zhejiang Southeast Electric Power Co.,
Ltd.-- Operates, develops, and invests
in coal fired power plants 547,800 2.8
Philippine Long Distance Telephone--
Provides domestic and international
long distance and cellular telephone
service 535,492 2.8
Honda Motor Co.--A company who develops,
manufactures, distributes, and finances
motorcycles, automobiles and power
products 507,400 2.6
Industrial Credit & Inv.--A financial
institution that assists in the
creation, expansion and modernization
of industrial enterprises 497,250 2.6
$ 7,293,649 37.5%
5
INDUSTRY DIVERSIFICATION
APRIL 30, 1998 (UNAUDITED) ALLIANCE ALL-ASIA INVESTMENT FUND
_______________________________________________________________________________
PERCENT OF
COMPANY U.S. $ VALUE NET ASSETS
- -------------------------------------------------------------------------------
Basic Industries $ 1,203,826 6.2%
Capital Goods 403,471 2.1
Consumer Manufacturing 1,109,694 5.7
Consumer Services 2,554,184 13.1
Consumer Staples 816,336 4.2
Energy 774,211 4.0
Finance 4,438,758 22.8
Healthcare 1,048,022 5.4
Multi-Industry 645,718 3.3
Technology 2,388,359 12.3
Transportation 264,937 1.4
Utilities 2,368,682 12.2
Total Investments* 18,016,198 92.7
Cash and receivables, net of liabilities 1,413,741 7.3
Net Assets $ 19,429,939 100.0%
* Excludes short-term obligations.
6
PORTFOLIO OF INVESTMENTS
APRIL 30, 1998 (UNAUDITED) ALLIANCE ALL-ASIA INVESTMENT FUND
_______________________________________________________________________________
COMPANY SHARES U.S. $ VALUE
- -------------------------------------------------------------------------
COMMON STOCKS & OTHER INVESTMENTS-92.7%
AUSTRALIA-7.8%
Coca-Cola Amatil, Ltd. 380 $ 2,900
Hoyts Cinemas Group 250,000 407,656
Normandy Mining, Ltd. 296,394 330,582
Qantas Airways, Ltd. 127,442 194,510
Tab Corp Holdings, Ltd. 59,750 325,416
Woolworths, Ltd. 71,680 246,857
------------
1,507,921
CHINA-2.8%
Zhejiang Southeast Electric Power Co., Ltd.
(GDR) (a)(b) 33,000 547,800
HONG KONG-27.3%
Cheung Kong Holdings, Ltd. 170,000 1,130,261
Dickson Concepts, Ltd. 285,000 393,687
Guangshen Railway
(ADR) 27,000 264,937
HSBC Holdings, Plc. 43,900 1,252,505
Hutchison Whampoa, Ltd. 104,000 643,119
Smartone Telecom Holdings, Ltd. 12,000 31,526
Sun Hung Kai Properties, Ltd. 166,000 985,799
Television Broadcasting, Ltd. 92,000 235,167
Yanzhou Coal Mining Co., Ltd. Cl. H (a) 1,350,000 357,281
------------
5,294,282
INDIA-7.3%
Hindustan Petroleum 55,300 562,190
Industrial Credit & Inv.
(GDR) (b) 30,600 497,250
Mahanagar Telephone
Nigam, Ltd. (GDR) (a) 8,500 137,063
Videsh Sanchar Nigam, Ltd. 8,900 183,983
(GDR) (b) 3,700 45,325
------------
1,425,811
INDONESIA-3.2%
Gulf Indonesia Resources, Ltd. (a) 13,790 212,021
PT Tambang Timah 500,000 417,188
------------
629,209
JAPAN-36.9%
Advantest Corp. 7,060 474,434
Bank of Tokyo-Mitsubishi 25,200 311,860
Bridgestone Corp. (c) 20,000 456,056
Canon, Inc. 13,000 307,233
Daito Trust Construction Co., Ltd. (c) 33,300 233,583
Daiwa Securities Co., Ltd. 27,000 101,933
Fuji Photo Film 9,000 320,069
Fujitsu, Ltd. 15,000 174,985
Honda Motor Co. (c) 14,000 507,400
Hoya Corp. (c) 13,000 429,931
Japan Tobacco, Inc. 51 364,671
Kao Corp. 10,000 146,859
Kokuyo 3,000 51,420
Nintendo Co. (c) 4,700 430,821
Nippon Electric Glass Co., Ltd. 15,000 169,888
Rohm Co. (c) 3,000 338,417
Sankyo Co., Ltd. 12,000 297,191
Santen Pharmaceutical Co. 13,000 130,550
Shimano, Inc. 6,000 132,739
Sony Corp. (c) 5,000 415,660
Takeda Chemical Industries 6,000 171,247
TDK Corp. (c) 8,000 631,833
Tokai Bank 22,000 128,904
Yamanouchi Pharmaceutical (c) 19,000 449,034
------------
7,176,718
NEW ZEALAND-1.6%
Lion Nathan, Ltd. 113,700 301,906
7
PORTFOLIO OF INVESTMENTS (CONTINUED) ALLIANCE ALL-ASIA INVESTMENT FUND
_______________________________________________________________________________
COMPANY SHARES U.S. $ VALUE
- -------------------------------------------------------------------------
PHILIPPINES-4.4%
Alson's Cement Corp. 49,700 $ 2,476
Belle Corp. (a) 668,000 29,282
Warrants, expiring 10/06/00 (a) 336,400 964
International Container Terminal
Svcs., Inc. (a) 19,687 2,599
Manila Electric Co.
Series B 101,400 287,910
Philippine Long Distance Telephone 20,000 535,492
------------
858,723
SOUTH KOREA-1.4%
S.K. Telecom Co., Ltd. 400 247,834
(ADR) 3,495 25,994
------------
273,828
PRINCIPAL
AMOUNT
COMPANY (000) U.S. $ VALUE
- -------------------------------------------------------------------------
Total Common Stocks & Other Investments
(cost $20,099,159) $ 18,016,198
TIME DEPOSIT-4.6%
UNITED STATES-4.6%
Rabobank
5.44%, 5/01/98
(cost $900,000) $900 900,000
TOTAL INVESTMENTS-97.3%
(cost $20,999,159) 18,916,198
Other assets less liabilities-2.7% 513,741
NET ASSETS-100% $ 19,429,939
(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 April 30, 1998,
these securities amounted to $1,090,375 or 5.6% of net assets.
(c) Securities, or a portion thereof, with an aggregate market value of
$3,892,735 have been segregated to collateralize forward exchange currency
contracts.
Glossary of Terms:
ADR - American Depositary Receipt
GDR - Global Depositary Receipt
See notes to financial statements.
8
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1998 (UNAUDITED) ALLIANCE ALL-ASIA INVESTMENT FUND
_______________________________________________________________________________
ASSETS
Investments in securities, at value (cost $20,999,159) $ 18,916,198
Cash, at value (cost $295,995) 292,434
Receivable for investment securities sold 1,103,003
Unrealized appreciation of forward exchange currency contracts 234,855
Receivable for capital stock sold 129,303
Deferred organization expenses 62,696
Dividends and interest receivable 59,429
Total assets 20,797,918
LIABILITIES
Payable for investment securities purchased 1,143,400
Payable for capital stock redeemed 38,186
Distribution fee payable 12,476
Advisory fee payable 9,306
Accrued expenses 164,611
Total liabilities 1,367,979
NET ASSETS $ 19,429,939
COMPOSITION OF NET ASSETS
Capital stock, at par $ 2,735
Additional paid-in capital 30,122,439
Accumulated net investment loss (216,191)
Accumulated net realized loss on investments and foreign
currency transactions (8,624,166)
Net unrealized depreciation of investments and foreign
currency denominated assets and liabilities (1,854,878)
$ 19,429,939
CALCULATION OF MAXIMUM OFFERING PRICE
CLASS A SHARES
Net asset value and redemption price per share ($4,817,137/
667,851 shares of capital stock issued and outstanding) $7.21
Sales Charge--4.25% of public offering price 0.32
Maximum offering price $7.53
CLASS B SHARES
Net asset value and offering price per share ($11,138,517/
1,580,133 shares of capital stock issued and outstanding) $7.05
CLASS C SHARES
Net asset value and offering price per share ($1,980,605/
280,479 shares of capital stock issued and outstanding) $7.06
ADVISOR CLASS SHARES
Net asset value, redemption and offering price per share
($1,493,680/206,084 shares of capital stock issued and
outstanding) $7.25
See notes to financial statements.
9
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 1998 (UNAUDITED)
ALLIANCE ALL-ASIA INVESTMENT FUND
_______________________________________________________________________________
INVESTMENT INCOME
Dividends (net of foreign taxes withheld
of $7,798) $ 143,503
Interest 40,784 $ 184,287
EXPENSES
Advisory fee 97,315
Distribution fee - Class A 7,584
Distribution fee - Class B 55,361
Distribution fee - Class C 9,522
Custodian 85,193
Audit and legal 49,501
Transfer agency 44,530
Registration 36,148
Amortization of organization expenses 20,150
Administrative 14,600
Printing 13,526
Directors' fees 13,500
Miscellaneous 11,259
Total expenses 458,189
Less: expenses waived by the Adviser
(see Note B) (48,660)
Net expenses 409,529
Net investment loss (225,242)
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS
Net realized loss on investment transactions (3,577,240)
Net realized loss on foreign currency
transactions (33,277)
Net change in unrealized depreciation of:
Investments 2,808,702
Foreign currency denominated assets and
liabilities 235,514
Net loss on investments and foreign currency
transactions (566,301)
NET DECREASE IN NET ASSETS FROM OPERATIONS $ (791,543)
See notes to financial statements.
10
STATEMENT OF CHANGES IN NET ASSETS ALLIANCE ALL-ASIA INVESTMENT FUND
_______________________________________________________________________________
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1998 OCTOBER 31,
(UNAUDITED) 1997
------------- -------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
Net investment loss $ (225,242) $ (830,892)
Net realized loss on investments and foreign
currency transactions (3,610,517) (5,174,455)
Net change in unrealized appreciation
(depreciation) of investments and foreign
currency denominated assets and liabilities 3,044,216 (3,031,796)
Net decrease in net assets from operations (791,543) (9,037,143)
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net realized gain on investments
Class A -0- (362,976)
Class B -0- (710,027)
Class C -0- (103,481)
Advisor Class -0- (5,766)
CAPITAL STOCK TRANSACTIONS
Net decrease (331,211) (9,550,773)
Total decrease (1,122,754) (19,770,166)
NET ASSETS
Beginning of year 20,552,693 40,322,859
End of period (including undistributed net
investment income of $9,051 at
October 31, 1997) $19,429,939 $20,552,693
See notes to financial statements.
11
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1998 (UNAUDITED) ALLIANCE ALL-ASIA INVESTMENT FUND
_______________________________________________________________________________
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. The Fund offers Class A, Class B, Class C and Advisor Class
shares. Class A shares are sold with an initial sales charge of up to 4.25%.
With respect to purchases of $1,000,000 or more, Class A shares redeemed within
one year of purchase will be subject to a contingent deferred sales charge of
1%. Class B shares are 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 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 to investors participating in
fee-based programs and to certain retirement plan accounts. All four classes of
shares have identical voting, dividend, liquidation and other rights, except
that each class bears different distribution expenses and has exclusive voting
rights with respect to its distribution plan. The financial statements have
been prepared in conformity with generally accepted accounting principles which
require management to make certain estimates and assumptions that affect the
reported amounts of assets and liabilities in the financial statements and
amounts of income and expenses during the reporting period. Actual results
could differ from those estimates. The following is a summary of significant
accounting policies followed by the Fund.
1. SECURITY VALUATION
Portfolio securities traded on a national securities exchange or on a foreign
securities exchange (other than foreign securities exchanges whose operations
are similar to those of the United States over-the-counter market) are
generally valued at the last reported sale price or if no sale occurred, at the
mean of the closing bid and asked price on that day. Readily marketable
securities traded in the over-the-counter market, securities listed on a
foreign securities exchange whose operations are similar to the U.S.
over-the-counter market, and securities listed on a national securities
exchange whose primary market is believed to be over-the-counter, are valued at
the mean of the current bid and asked prices. U.S. government and fixed income
securities which mature in 60 days or less are valued at amortized cost, unless
this method does not represent fair value. Securities for which current market
quotations are not readily available are valued at their fair value as
determined in good faith by, or in accordance with procedures adopted by, the
Board of Directors. Fixed income securities may be valued on the basis of
prices obtained from a pricing service when such prices are believed to reflect
the fair market value of such securities.
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 earned or accrued.
Net realized gain or loss on foreign currency transactions represents foreign
exchange gains and losses from sales of investments and forward exchange
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 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.
12
ALLIANCE ALL-ASIA INVESTMENT FUND
_______________________________________________________________________________
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 any, to
shareholders. Therefore, no provisions for federal income or excise taxes are
required.
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 Advisor Class shares have no distribution fees.
6. 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.
7. DIVIDENDS AND DISTRIBUTIONS
Dividends and distributions to shareholders are recorded on the ex-dividend
date.
Income and capital gains distributions are determined in accordance with
federal tax regulations and may differ from those determined in accordance with
generally accepted accounting principles. To the extent these differences are
permanent, such amounts are reclassified within the capital accounts based on
their federal tax basis treatment; temporary differences do not require such
reclassification.
NOTE B: ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under an investment advisory agreement, the Fund pays Alliance Capital
Management L.P. ("the Adviser") an advisory fee at an annual rate of 1% of the
Fund's average daily net assets. Such fee is accrued daily and paid monthly.
For the period ended April 30, 1998 the Adviser has voluntarily agreed to waive
a portion of its advisory fee. Such waiver amounted to $34,060.
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. For the period ended
April 30, 1998, the Adviser agreed to waive its fees. Such waiver amounted to
$14,600.
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 $28,475 for the six months ended April 30, 1998.
Alliance Fund Distributors, Inc. (a wholly-owned subsidiary of the Adviser)
serves as the Distributor of the Fund's shares. The Distributor received
$22,511 and $865 in contingent deferred sales charges imposed upon redemptions
by shareholders of Class B, and Class C shares, respectively, for the six
months ended April 30, 1998.
Brokerage commissions paid on investment transactions for the six months ended
April 30, 1998 amounted to $68,438, none of which was paid to brokers utilizing
the services of the Pershing Division of Donaldson, Lufkin & Jenrette
Securities Corp. ("DLJ"), an affiliate of the Adviser, nor to DLJ directly.
NOTE C: DISTRIBUTION SERVICES AGREEMENT
The Fund has adopted a Distribution Services Agreement (the "Agreement")
pursuant to Rule 12b-1 under the Investment Company Act of 1940. Under the
Agreement, the Fund pays 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
13
NOTES TO FINANCIAL STATEMENTS (CONTINUED) ALLIANCE ALL-ASIA INVESTMENT FUND
_______________________________________________________________________________
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 amounts of
$1,862,972 and $191,395 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 $9,696,919 and $7,730,033, respectively, for
the six months ended April 30, 1998. There were no purchases or sales of U.S.
government or government agency obligations for the six months ended April 30,
1998.
At April 30, 1998, the cost of investments for federal income tax purposes was
$21,004,783. Accordingly, gross unrealized appreciation of investments was
$902,411 and gross unrealized depreciation of investments was $2,990,996
resulting in net unrealized depreciation of $2,088,585 (excluding foreign
currency transactions).
FORWARD EXCHANGE CURRENCY CONTRACTS
The Fund enters into forward exchange currency contracts to hedge its exposure
to changes in foreign currency exchange rates on its foreign portfolio
holdings, to hedge certain firm purchase and sale commitments denominated in
foreign currencies and for investment purposes. 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 assets 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. The face or contract amount, in U.S. dollars, as
reflected in the following table, reflects the total exposure the Fund has in
that particular currency contract.
At April 30, 1998, the Fund had outstanding forward exchange currency
contracts, as follows:
U.S. $
CONTRACT VALUE ON U.S. $
AMOUNT ORIGINATION CURRENT UNREALIZED
(000) DATE VALUE APPRECIATION
--------- ------------ ------------ ------------
FORWARD EXCHANGE
CURRENCY SALE
CONTRACTS
Japanese Yen,
settling 5/8/98 514,000 $4,116,940 $3,882,085 $234,855
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.
14
ALLIANCE ALL-ASIA INVESTMENT FUND
_______________________________________________________________________________
Transactions in capital stock were as follows:
SHARES AMOUNT
--------------------------- ------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1998 OCTOBER 31, APRIL 30, 1998 OCTOBER 31,
(UNAUDITED) 1997 (UNAUDITED) 1997
------------ ------------ -------------- --------------
CLASS A
Shares sold 771,643 774,765 $ 5,757,755 $ 7,493,418
Shares issued in
reinvestment of
distributions -0- 29,448 -0- 321,278
Shares converted
from Class B 6,748 12,185 48,954 128,940
Shares redeemed (895,050) (1,145,077) (6,780,243) (11,393,804)
Net decrease (116,659) (328,679) $ (973,534) $ (3,450,168)
CLASS B
Shares sold 718,859 1,070,451 $ 5,158,209 $ 10,641,169
Shares issued in
reinvestment of
distributions -0- 42,591 -0- 458,704
Shares converted
to Class A (6,897) (12,388) (48,954) (128,940)
Shares redeemed (679,086) (1,735,240) (4,891,686) (17,475,408)
Net increase (decrease) 32,876 (634,586) $ 217,569 $ (6,504,475)
CLASS C
Shares sold 314,981 182,241 $ 2,287,399 $ 1,850,152
Shares issued in
reinvestment of
distributions -0- 8,253 -0- 88,889
Shares redeemed (285,800) (326,841) (2,064,410) (3,438,732)
Net increase (decrease) 29,181 (136,347) $ 222,989 $ (1,499,691)
ADVISOR CLASS
Shares sold 82,228 265,011 $ 600,024 $ 2,733,346
Shares issued in
reinvestment of
distributions -0- 529 -0- 5,766
Shares redeemed (53,154) (91,004) (398,259) (835,551)
Net increase 29,074 174,536 $ 201,765 $ 1,903,561
NOTE F: CONCENTRATION OF RISK
The securities markets of many Asian countries are relatively small, with the
majority of market capitalization and trading volume concentrated in a limited
number of companies representing a small number of industries. Consequently,
the Fund's investment portfolio may experience greater price volatility and
significantly lower liquidity than a portfolio invested in equity securities of
U.S. companies. These markets may be subject to greater influence by adverse
events generally affecting the market, and by large investors trading
significant blocks of securities, than is usual in the United States.
NOTE G: SUBSEQUENT EVENT
On June 11, 1998, the Fund's Board of Directors approved an amendment to the
non-fundamental investment policies of the Fund to permit the Fund to invest
more than 50% of its assets in Japanese equity securities.
15
FINANCIAL HIGHLIGHTS ALLIANCE ALL-ASIA INVESTMENT FUND
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
CLASS A
----------------------------------------------------
NOVEMBER 28,
SIX MONTHS ENDED YEAR ENDED OCT. 31, 1994(A)
APRIL 30, 1998 ------------------------ TO
(UNAUDITED) 1997 1996 OCT. 31, 1995
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 7.54 $11.04 $10.45 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment loss (b)(c) (.07) (.21) (.21) (.19)
Net realized and unrealized gain (loss) on
investments and foreign currency
transactions (.26) (2.95) .88 .64
Net increase (decrease) in net asset value
from operations (.33) (3.16) .67 .45
LESS: DISTRIBUTIONS
Distributions from net realized gains on
investments and foreign currency
transactions -0- (.34) (.08) -0-
Net asset value, end of period $ 7.21 $ 7.54 $11.04 $10.45
TOTAL RETURN
Total investment return based on net
asset value (d) (4.38)% (29.61)% 6.43% 4.50%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $4,817 $5,916 $12,284 $2,870
Ratio to average net assets of:
Expenses, net of waivers/reimbursements 3.74%(e) 3.45% 3.37% 4.42%(e)
Expenses, before waivers/reimbursements 4.24%(e) 3.57% 3.61% 10.57%(e)
Net investment loss, net of
waivers/reimbursements (1.86)%(e) (1.97)% (1.75)% (1.87)%(e)
Portfolio turnover rate 87% 70% 66% 90%
</TABLE>
See footnote summary on page 19.
16
ALLIANCE ALL-ASIA INVESTMENT FUND
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
CLASS B
----------------------------------------------------
NOVEMBER 28,
SIX MONTHS ENDED YEAR ENDED OCT. 31, 1994(A)
APRIL 30, 1998 ------------------------ TO
(UNAUDITED) 1997 1996 OCT. 31, 1995
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 7.39 $10.90 $10.41 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment loss (b)(c) (.09) (.28) (.28) (.25)
Net realized and unrealized gain (loss) on
investments and foreign currency
transactions (.25) (2.89) .85 .66
Net increase (decrease) in net asset value
from operations (.34) (3.17) .57 .41
LESS: DISTRIBUTIONS
Distributions from net realized gains on
investments and foreign currency
transactions -0- (.34) (.08) -0-
Net asset value, end of period $ 7.05 $ 7.39 $10.90 $10.41
TOTAL RETURN
Total investment return based on net
asset value (d) (4.60)% (30.09)% 5.49% 4.10%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $11,139 $11,439 $23,784 $5,170
Ratio to average net assets of:
Expenses, net of waivers/reimbursements 4.46%(e) 4.15% 4.07% 5.20%(e)
Expenses, before waivers/reimbursements 4.97%(e) 4.27% 4.33% 11.32%(e)
Net investment loss, net of
waivers/reimbursements (2.56)%(e) (2.67)% (2.44)% (2.64)%(e)
Portfolio turnover rate 87% 70% 66% 90%
</TABLE>
See footnote summary on page 19.
17
FINANCIAL HIGHLIGHTS (CONTINUED) ALLIANCE ALL-ASIA INVESTMENT FUND
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
CLASS C
----------------------------------------------------
NOVEMBER 28,
SIX MONTHS ENDED YEAR ENDED OCT. 31, 1994(A)
APRIL 30, 1998 ------------------------ TO
(UNAUDITED) 1997 1996 OCT. 31, 1995
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 7.40 $10.91 $10.41 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment loss (b)(c) (.09) (.27) (.28) (.35)
Net realized and unrealized gain (loss) on
investments and foreign currency
transactions (.25) (2.90) .86 .76
Net increase (decrease) in net asset value
from operations (.34) (3.17) .58 .41
LESS: DISTRIBUTIONS
Distributions from net realized gains on
investments and foreign currency
transactions -0- (.34) (.08) -0-
Net asset value, end of period $ 7.06 $ 7.40 $10.91 $10.41
TOTAL RETURN
Total investment return based on net asset
value (d) (4.60)% (30.06)% 5.59% 4.10%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $1,981 $1,859 $4,228 $597
Ratio to average net assets of:
Expenses, net of waivers/reimbursements 4.47%(e) 4.15% 4.07% 5.84%(e)
Expenses, before waivers/reimbursements 4.97%(e) 4.27% 4.30% 11.38%(e)
Net investment loss, net of
waivers/reimbursements (2.56)%(e) (2.66)% (2.42)% (3.41)%(e)
Portfolio turnover rate 87% 70% 66% 90%
</TABLE>
See footnote summary on page 19.
18
ALLIANCE ALL-ASIA INVESTMENT FUND
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
ADVISOR CLASS
-----------------------------------------------
SIX MONTHS ENDED YEAR ENDED OCT. 2, 1996(F)
APRIL 30, 1998 OCT. 31, TO
(UNAUDITED) 1997 OCT. 31, 1996
----------- ----------- -----------
<S> <C> <C> <C>
Net asset value, beginning of period $ 7.56 $11.04 $11.65
INCOME FROM INVESTMENT OPERATIONS
Net investment loss (b)(c) (.06) (.15) -0-
Net realized and unrealized gain (loss) on
investments and foreign currency
transactions (.25) (2.99) (.61)
Net decrease in net asset value
from operations (.31) (3.14) (.61)
LESS: DISTRIBUTIONS
Distributions from net realized gains on
investments and foreign currency
transactions -0- (.34) -0-
Net asset value, end of period $ 7.25 $ 7.56 $11.04
TOTAL RETURN
Total investment return based on net asset
value (d) (4.10)% (29.42)% (5.24)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $1,494 $1,338 $27
Ratio to average net assets of:
Expenses, net of waivers/reimbursements 3.53%(e) 3.21% 4.97%(e)
Expenses, before waivers/reimbursements 4.03%(e) 3.43% 5.54%(e)
Net investment loss, net of
waivers/reimbursements (1.66)%(e) (1.51)% 1.63%(e)
Portfolio turnover rate 87% 70% 66%
</TABLE>
(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.
19
ALLIANCE ALL-ASIA INVESTMENT FUND
_______________________________________________________________________________
DIRECTORS
JOHN D. CARIFA, CHAIRMAN AND PRESIDENT
DAVID H. DIEVLER (1)
JOHN H. DOBKIN (1)
W.H. HENDERSON (1)
STIG HOST (1)
ALAN STOGA (1)
OFFICERS
KATHLEEN A. CORBET, SENIOR VICE PRESIDENT
KARAN TREHAN, SENIOR VICE PRESIDENT
THOMAS J. BARDONG, VICE PRESIDENT
RUSSELL BRODY, VICE PRESIDENT
HIROSHI MOTOKI, VICE PRESIDENT
DANIEL V. PANKER, VICE PRESIDENT
EDMUND P. BERGAN, JR., SECRETARY
MARK D. GERSTEN, TREASURER AND CHIEF FINANCIAL OFFICER
VINCENT S. NOTO, 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.
20
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 International Premier Growth 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
21
ALLIANCE ALL-ASIA INVESTMENT FUND
1345 Avenue of the Americas
New York, NY 10105
(800) 221-5672
ALLIANCE CAPITAL
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.
AAISR
