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INTERNATIONAL REGIONAL
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Alliance All-Asia
Investment Fund
Semi-Annual Report
April 30, 2000
AllianceCapital [LOGO](R)
The Investment Professional's Choice
<PAGE>
Investment Products Offered
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o Are Not FDIC Insured
o May Lose Value
o Are Not Bank Guaranteed
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<PAGE>
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LETTER TO SHAREHOLDERS
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LETTER TO SHAREHOLDERS
June 8, 2000
Dear Shareholder:
We are pleased to provide an update of the performance and investment activity
for Alliance All-Asia Investment Fund (the "Fund") for the semi-annual reporting
period ended April 30, 2000.
Investment Objectives and Policies
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
The following table shows how your Fund performed during the six- and 12-month
periods ended April 30, 2000. For comparison, the table also provides
performance data for the Fund's benchmark, as represented by the MSCI AC Asia
Pacific Index, and the Fund's peer group average, as represented by the Lipper
Pacific Region Funds Average.
For the six-month period ended April 30, 2000, the Fund's Class A shares posted
a total return of 26.39% at net asset value, substantially outperforming the
MSCI AC Asia Pacific Index's gain of 4.73% and the Fund's peer group, as
represented by the Lipper Pacific Region Funds Average, which increased 11.92%.
The Fund also substantially outperformed both the benchmark and average for the
12-month period ended April 30, 2000.
In terms of the Fund's country allocation, during the six-month period under
review, we were generally in-line with the benchmark index, but with exceptions
in our underweighting of Japan and our relative overweightings in Korea and
India.
INVESTMENT RESULTS*
Periods ended April 30, 2000
----------------------
TOTAL RETURNS
----------------------
6 Months 12 Months
--------------------------------------
Alliance All-Asia
Investment Fund
Class A 26.39% 72.36%
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Class B 25.97% 70.83%
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Class C 25.89% 70.78%
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MSCI AC Asia
Pacific Index 4.73% 24.38%
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Lipper Pacific
Region Funds
Average 11.92% 40.95%
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* The Fund's investment results are total returns for the periods shown and
are based on the net asset value of each class of shares as of April 30,
2000. All fees and expenses related to the operation of the Fund have been
deducted, but no adjustment has been made for sales charges that may apply
when shares are purchased or redeemed. Returns for the Fund include the
reinvestment of any distributions paid during each period. Past
performance is no guarantee of future results.
The 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. The Lipper Pacific Region Funds Average (the
"Lipper Average") consists of funds that concentrate their investments in
equity securities
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ALLIANCE ALL-ASIA INVESTMENT FUND o 1
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LETTER TO SHAREHOLDERS
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with primary trading markets or operations concentrated in the Western
Pacific Basin region or a single country within this region. The Lipper
Average included 60 funds for the six-month period and 58 funds for the
12-month period ended April 30, 2000. An investor cannot invest directly
in an index or an average and its results are not indicative of the
performance of any specific investment, including Alliance All-Asia
Investment Fund.
+ Excludes shares which are not readily purchased by non-local investors.
Additional investment results appear on pages 4-7.
Economic Outlook
Thanks to a strong worldwide economy, Asian countries successfully recorded
strong recovery in 1999. The Asian Development Bank announced that its gross
domestic product (GDP) forecast for Asia ex-Japan was over 6% for 2000 and 2001.
In addition to this economic growth, strong earnings, ample liquidity, and low
interest rates contributed to the performance of the equity markets in the
region.
It is also anticipated that Japanese GDP will show a growth close to the
government target of 1.0% in fiscal 2000 ending March 2001. Strong exports and
public spending have been the drivers of this recovery. We believe that Japanese
recovery and the strong yen have had widespread positive effects on the Asian
economy.
Going forward this year, worldwide strong demand will drive Asian exports. The
risk factor seems to be the U.S. interest rate increase, followed by possible
corrections of the U.S. stock market and a slowdown of the economy. Even though
we remain cautious about Japanese economic recovery, corporate earnings in Japan
in fiscal 2000 should be able to grow by about 15% year-on-year in our opinion.
Therefore, we have mildly optimistic views on the Japanese equity market.
Portfolio Strategy and Outlook
Regarding the Fund's investment decisions, we take full advantage of Alliance's
global research team. We have our in-house Asian research teams in Tokyo, Hong
Kong, Singapore and Mumbai. These teams keep close contact with our U.S. and
European research teams to exchange views and identify industry trends in
advance. On the basis of our in-depth fundamental research and frequent contact
with corporate managements across the region, we hope to identify undervalued
companies in the sector. As of the end of April 30, 2000 we are nearly fully
invested in over 80 companies located in 8 countries within the region.
Regarding stock selection, we continue to distinguish those companies with sound
fundamentals, strong management, and clear shareholder orientation through our
research team on the ground. At the end of the period, your Fund's 10 largest
holdings accounted for 35.6% of total net assets.
The Fund's country allocation is an outcome of our stock selection based on
in-house analysts' company research. As previously mentioned, as of April 30,
2000, your Fund was overweighted in India and Korea and
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2 o ALLIANCE ALL-ASIA INVESTMENT FUND
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LETTER TO SHAREHOLDERS
----------------------
[PHOTO] John D. Carifa
[PHOTO] Hiroshi Motoki
[PHOTO] Samir Arora
Hiroshi Motoki is Senior Vice President and Director of Asian Equities and
Portfolio Manager. Samir Arora is head of Asian Emerging Markets and Portfolio
Manager. The two portfolio managers have over 23 years combined investment
experience.
underweighted in Japan in order to allocate money for investment to the ex-Japan
Asian market. In addition, the Fund had no exposure in Malaysia.
We appreciate your continued interest and investment in Alliance All-Asia
Investment Fund and look forward to reporting to you again on the Fund's
investment results.
Sincerely,
/s/ John D. Carifa
John D. Carifa
Chairman and President
/s/ Hiroshi Motoki
Hiroshi Motoki
Vice President
/s/ Samir Arora
Samir Arora
Vice President
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ALLIANCE ALL-ASIA INVESTMENT FUND o 3
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PERFORMANCE UPDATE
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PERFORMANCE UPDATE
ALLIANCE ALL-ASIA INVESTMENT FUND
GROWTH OF A $10,000 INVESTMENT
11/30/94* TO 4/30/00
[THE FOLLOWING WAS REPRESENTED BY A MOUNTAIN GRAPH]
Alliance All-Asia Investment Fund Class A: $13,149
Lipper Pacific Region Funds Average: $11,992
MSCI AC Asia Pacific Index: $10,373
This chart illustrates the total value of an assumed $10,000 investment in
Alliance All-Asia Investment Fund Class A shares (from 11/30/94 to 4/30/00) as
compared to the performance of an appropriate broad-based index and the Lipper
Pacific Region Funds Average. The chart reflects the deduction of the maximum
4.25% sales charge from the initial $10,000 investment in the Fund and assumes
the reinvestment of dividends and capital gains. Performance for Class B and
Class C shares will vary from the results shown above due to differences in
expenses charged to these classes. Past performance is not indicative of future
results, and is not representative of future gain or loss in capital value or
dividend income.
The Morgan Stanley Capital International (MSCI) AC Asia Pacific Index is
unmanaged and is a common measure of overall stock market activity in 15 Pacific
region countries.
The Lipper Pacific Region Funds Average reflects performance of 33 funds (based
on the number of funds in the average from 11/30/94 to 4/30/00). These funds
have generally similar investment objectives to Alliance All-Asia Investment
Fund, although the investment policies of some funds included in the average may
vary.
When comparing Alliance All-Asia Investment Fund to the index and average shown
above, you should note that no charges or expenses are reflected in the
performance of the index. Lipper results include fees and expenses. An investor
cannot invest directly in an index or an average and its results are not
indicative of any specific investment, including Alliance All-Asia Investment
Fund.
* Closest month-end after Fund's Class A share inception date of 11/28/94.
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4 o ALLIANCE ALL-ASIA INVESTMENT FUND
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PERFORMANCE UPDATE
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PERFORMANCE UPDATE
ALLIANCE ALL-ASIA INVESTMENT FUND
HISTORY OF RETURNS
YEARLY PERIODS ENDED 4/30
[THE FOLLOWING WAS REPRESENTED BY A BAR GRAPH]
Alliance All-Asia Investment Fund--Yearly Periods Ended 4/30
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Alliance All-Asia MSCI AC
Investment Fund Asia Pacific Index
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4/30/95* 2.40% 1.23%
4/30/96 19.93% 8.09%
4/30/97 -14.85% -19.89%
4/30/98 -28.40% -20.65%
4/30/99 6.38% 19.91%
4/30/00 72.36% 24.38%
Past performance is no guarantee of future results. The Fund's investment
results represent total returns for Class A shares and are based on the net
asset value. All fees and expenses related to the operation of the Fund have
been deducted. Returns for the Fund include the reinvestment of any
distributions paid during the period.
The 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, and its results are not
indicative of any specific investment, including Alliance All-Asia Investment
Fund.
* From inception (11/28/94 for Fund and 11/30/94 for Index).
+ Excludes shares which are not readily purchased by non-local investors.
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ALLIANCE ALL-ASIA INVESTMENT FUND o 5
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PORTFOLIO SUMMARY
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PORTFOLIO SUMMARY
April 30, 2000 (unaudited)
INCEPTION DATE
(Class A shares)
11/28/94
PORTFOLIO STATISTICS
Assets ($mil): $131
Median Market Capitalization ($mil): $13,883
[PIE CHART OMITTED]
COUNTRY BREAKDOWN
o 1.3% Australia
o 14.2% Hong Kong
o 14.2% India
o 49.7% Japan
o 0.5% Philippines
o 11.5% Republic of Korea
o 3.5% Singapore
o 5.1% Taiwan
[PIE CHART OMITTED]
SECTOR BREAKDOWN
o 3.1% Basic Industries
o 5.0% Capital Goods
o 7.1% Consumer Manufacturing
o 18.7% Consumer Services
o 2.0% Consumer Staples
o 10.7% Finance
o 3.7% Healthcare
o 2.0% Multi-Industry
o 44.0% Technology
o 3.7% Utilities
All data as of April 30, 2000. Country and sector breakdowns may vary over time.
These breakdowns are expressed as a percentage of total investments.
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6 o Alliance All-Asia Investment Fund
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INVESTMENT RESULTS
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INVESTMENT RESULTS
NAV AND SEC AVERAGE ANNUAL TOTAL RETURNS
AS OF APRIL 30, 2000
Class A Shares
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Without Sales Charge With Sales Charge
One Year 72.36% 65.04%
Five Years 6.04% 5.13%
Since Inception* 6.02% 5.18%
Class B Shares
--------------------------------------------------------------------------------
Without Sales Charge With Sales Charge
One Year 70.83% 66.83%
Five Years 5.26% 5.26%
Since Inception* 5.26% 5.26%
Class C Shares
--------------------------------------------------------------------------------
Without Sales Charge With Sales Charge
One Year 70.78% 69.78%
Five Years 5.26% 5.26%
Since Inception* 5.31% 5.31%
SEC AVERAGE ANNUAL TOTAL RETURNS
AS OF THE MOST RECENT QUARTER-END (MARCH 31, 2000)
Class A Class B Class C
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1 Year 92.93% 95.44% 98.58%
5 Years 7.26% 7.40% 7.46%
Since Inception* 7.43% 7.52% 7.57%
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.
Foreign investments involve risks not associated with U.S. investments,
including political and economic uncertainties of foreign countries, as well as
the risk of currency fluctuations. These risks may be magnified for investments
in emerging markets.
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.
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Alliance All-Asia Investment Fund o 7
<PAGE>
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TEN LARGEST HOLDINGS
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TEN LARGEST HOLDINGS
April 30, 2000 (unaudited)
<TABLE>
<CAPTION>
Percent of
Company U.S. $ Value Net Assets
--------------------------------------------------------------------------------------
<S> <C> <C>
Infosys Technologies, Ltd.--
Develops software and provides
services for the distribution, banking,
telecommunication and manufacturing
sectors. $ 8,705,979 6.6%
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Samsung Electronics--Manufactures
and exports a wide range of consumer
and industrial electronics equipment. 6,350,349 4.8
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China Telecom (Hong Kong), Ltd.
Cl. H--Provides cellular tele-
communications services in the
Peoples Republic of China. 4,480,499 3.4
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Canon, Inc.--Manufactures office,
camera, and video equipment. Canon
also produces and markets computer
peripherals and manufactures aligners
for semiconductor chip production,
broadcasting lenses, and medical
equipment. 4,117,429 3.1
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Sankyo Co., Ltd. (Common and New
Shares)--Manufactures and sells
pachinko machines and parts, its
peripheral devices and game
software. 4,084,900 3.1
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Fast Retailing Co., Ltd.--Operates
a chain of clothing stores in Japan.
The company designs, manufactures,
and retails its own line of casual clothing
under the brand name Uni-Qlo. 4,055,566 3.1
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Yahoo Japan Corp.--Offers a network
of specialty programming and aggregated
information content distributed primarily
on the web serving internet users. 4,000,741 3.1
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Nikon Corp.--Manufactures and sells
cameras, lenses, semiconductor-related
equipment, eyeglasses, microscopes,
and measuring instruments. 3,976,662 3.0
--------------------------------------------------------------------------------------
Hoya Corp.--Manufactures electro-
optics products such as photomasks
for semiconductors, eyeglasses,
contact lenses, medical service
products, and crystal products. 3,667,346 2.8
--------------------------------------------------------------------------------------
NTTDoCoMo, Inc.--Provides various types of
telecommunication services including
cellular phones, personal handyphone systems
(PHS), paging, satellite mobile communication,
and wireless Private Branch Exchange
system services. 3,343,212 2.6
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$ 46,782,683 35.6%
</TABLE>
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8 o Alliance All-Asia Investment Fund
<PAGE>
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SECTOR DIVERSIFICATION
----------------------
SECTOR DIVERSIFICATION
April 30, 2000 (unaudited)
<TABLE>
<CAPTION>
Percent of
U.S. $ Value Net Assets
--------------------------------------------------------------------------------------
<S> <C> <C>
Basic Industries $ 3,976,662 3.0%
--------------------------------------------------------------------------------------
Biotechnology 289,118 0.2
--------------------------------------------------------------------------------------
Capital Goods 6,455,200 4.9
--------------------------------------------------------------------------------------
Consumer Manufacturing 9,098,241 6.9
--------------------------------------------------------------------------------------
Consumer Services 24,138,265 18.4
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Consumer Staples 2,618,087 2.0
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Finance 13,836,068 10.6
--------------------------------------------------------------------------------------
Healthcare 4,821,078 3.7
--------------------------------------------------------------------------------------
Multi-Industry 2,522,274 1.9
--------------------------------------------------------------------------------------
Technology 56,330,826 42.9
--------------------------------------------------------------------------------------
Utilities 4,749,113 3.6
--------------------------------------------------------------------------------------
Total Investments 128,834,932 98.1
--------------------------------------------------------------------------------------
Cash and receivables,
net of liabilities 2,467,158 1.9
--------------------------------------------------------------------------------------
Net Assets $131,302,090 100.0%
--------------------------------------------------------------------------------------
</TABLE>
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Alliance All-Asia Investment Fund o 9
<PAGE>
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PORTFOLIO OF INVESTMENTS
------------------------
PORTFOLIO OF INVESTMENTS
April 30, 2000 (unaudited)
<TABLE>
<CAPTION>
Company Shares U.S. $ Value
--------------------------------------------------------------------------------------
<S> <C> <C>
Common Stocks-98.1%
Australia-1.3%
Lend Lease Corp., Ltd. ............................. 33,000 $ 357,611
Publishing & Broadcasting, Ltd. .................... 70,000 543,704
Tabcorp Holdings, Ltd. ............................. 43,750 234,192
Telstra Corp., Ltd. ................................ 63,000 270,053
Woodside Petroleum, Ltd. ........................... 50,000 309,228
------------
1,714,788
------------
Hong Kong-14.0%
Cable & Wireless HKT, Ltd. ......................... 526,000 1,242,541
Cathay Pacific Airways.............................. 1,330,000 2,364,877
Cheung Kong Holdings, Ltd. ......................... 24,000 286,550
China Telecom (Hong Kong), Ltd. Cl. H(a)............ 626,000 4,480,499
Hong Kong Electric.................................. 80,000 250,090
Hutchison Whampoa, Ltd. ............................ 117,000 1,697,350
Johnson Electric Holdings, Ltd. .................... 160,000 1,283,829
Legend Holdings, Ltd. .............................. 2,674,000 3,089,663
Li & Fung, Ltd. .................................... 200,000 780,568
Pacific Century Cyberworks, Ltd.(a)................. 551,000 1,025,715
Sun Hung Kai Properties, Ltd. ...................... 32,000 250,603
Television Broadcasting, Ltd. ...................... 60,000 410,183
VTech Holdings, Ltd. ............................... 280,000 1,161,095
------------
18,323,563
------------
India-13.9%
HCL Technologies, Ltd.(a)........................... 45,000 1,659,794
Himachal Futuristic Communications, Ltd. ........... 85,000 1,624,347
Infosys Technologies, Ltd.(a)....................... 46,800 8,705,979
Larsen & Toubro, Ltd. .............................. 100,000 538,374
Lupin Laboratories, Ltd. ........................... 50,000 289,118
NIIT, Ltd. ......................................... 13,000 603,093
Satyam Computer Services, Ltd.(a)................... 44,000 3,153,081
Zee Telefilms, Ltd.(a).............................. 105,000 1,707,904
------------
18,281,690
------------
Japan-48.8%
Alps Electric Co., Ltd. ............................ 84,000 1,069,643
Bank of Fukuoka, Ltd. .............................. 396,000 2,614,817
Banyu Pharmaceutical Co., Ltd. ..................... 69,000 1,520,837
Bridgestone Corp. .................................. 58,000 1,259,585
Canon, Inc. ........................................ 90,000 4,117,429
Fast Retailing Co., Ltd. ........................... 9,200 4,055,566
Fuji Bank, Ltd. .................................... 133,000 1,108,539
Honda Motor Co., Ltd. .............................. 18,000 805,149
Hoya Corp. ......................................... 36,000 3,667,346
Japan Tobacco, Inc. ................................ 93 684,710
Kao Corp. .......................................... 19,000 578,903
Kawasaki Steel Corp. ............................... 1,151,000 1,790,776
Meiji Milk Products Co., Ltd. ...................... 277,000 1,354,473
Nikon Corp. ........................................ 113,000 3,976,662
</TABLE>
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10 o Alliance All-Asia Investment Fund
<PAGE>
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PORTFOLIO OF INVESTMENTS
------------------------
<TABLE>
<CAPTION>
Company Shares U.S. $ Value
--------------------------------------------------------------------------------------
<S> <C> <C>
NTT DoCoMo, Inc. ................................... 100 $ 3,343,212
Omron Corp. ........................................ 49,000 1,334,136
Onward Kashiyama Co., Ltd. ......................... 61,000 789,757
Paris Miki, Inc. ................................... 2,760 175,855
Rohm Co., Ltd. ..................................... 8,800 2,950,176
Saizeriya Co., Ltd. ................................ 14,500 1,127,987
Sankyo Co., Ltd. ................................... 58,600 2,680,904
New Shares(a).................................... 31,650 1,403,996
Santen Pharmaceutical Co., Ltd. .................... 5,000 110,669
Softbank Corp. ..................................... 3,700 911,465
New Shares(a).................................... 7,400 1,829,783
Sumitomo Trust & Banking Co., Ltd. ................. 316,000 2,311,910
Suruga Bank, Ltd. .................................. 82,000 1,404,890
Takeda Chemical Industries, Ltd. ................... 38,000 2,502,130
TDK Corp. .......................................... 17,000 2,278,107
THK Co., Ltd. ...................................... 38,100 1,605,436
Tokyo Electron, Ltd. ............................... 10,000 1,630,858
Toyo Trust & Banking Co., Ltd. ..................... 48,000 175,588
Toyota Motor Corp. ................................. 44,000 2,188,183
Yahoo Japan Corp.(a)................................ 8 4,000,741
Yamanouchi Pharmaceutical Co., Ltd. ................ 13,000 687,442
------------
64,047,660
------------
Philippines-0.4%
Philippine Long Distance Telephone Co. ............. 32,000 573,574
------------
Singapore-3.4%
Chartered Semiconductor Manufacturing, Ltd.(a)...... 269,000 2,316,927
DBS Group Holdings, Ltd. ........................... 52,335 720,614
Natsteel Electronics, Ltd. ......................... 74,000 424,914
Singapore Press Holdings, Ltd. ..................... 25,000 489,248
St Assembly Test Services, Ltd.(a).................. 134,000 565,302
------------
4,517,005
------------
South Korea-11.2%
Dacom Corp.(a)...................................... 14,500 2,103,627
H & CB ............................................ 68,500 1,172,787
Kookmin Bank........................................ 102,500 1,108,358
Korea Telecom Corp. (ADR)........................... 42,953 1,481,878
Samsung Electronics................................. 23,491 6,350,349
SK Telecom Co., Ltd. ............................... 7,920 2,105,339
ADR ............................................ 13,330 427,393
------------
14,749,731
------------
Taiwan-5.1%
Asustek Computer, Inc. ............................. 56,058 621,136
Compal Electronics, Inc. (GDR)...................... 65,500 918,638
GigaMedia, Ltd.(a).................................. 5,200 124,800
Hon Hai Precision Industry(a)....................... 63,000 607,452
Sunplus Technology Co., Ltd.(a)..................... 85,800 546,854
</TABLE>
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Alliance All-Asia Investment Fund o 11
<PAGE>
------------------------
PORTFOLIO OF INVESTMENTS
------------------------
<TABLE>
<CAPTION>
Company Shares U.S. $ Value
--------------------------------------------------------------------------------------
<S> <C> <C>
Synnex Technology International (GDR)(b)............ 32,000 $ 861,600
Taiwan Semiconductor Manufacturing Co.(a)........... 310,600 1,999,941
Winbond Electronics Corp. (GDR)(a)(b)............... 30,000 946,500
------------
6,626,921
------------
Total Investments-98.1%
(cost $97,463,434)............................... 128,834,932
Other assets less liabilities-1.9%.................. 2,467,158
------------
Net Assets-100%..................................... $131,302,090
============
</TABLE>
(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,
2000, these securities amounted to $1,808,100 or 1.4% of net assets.
Glossary of Terms:
ADR - American Depositary Receipt
GDR - Global Depositary Receipt
See notes to financial statements.
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12 o Alliance All-Asia Investment Fund
<PAGE>
---------------------------------
STATEMENT OF ASSETS & LIABILITIES
---------------------------------
STATEMENT OF ASSETS & LIABILITIES
April 30, 2000 (unaudited)
<TABLE>
<S> <C>
Assets
Investments in securities, at value (cost $97,463,434)........ $128,834,932
Foreign cash, at value (cost $1,134,784)...................... 1,133,616
Receivable for investment securities sold..................... 3,693,490
Receivable for capital stock sold............................. 2,341,478
Dividends receivable.......................................... 200,774
------------
Total assets.................................................. 136,204,290
------------
Liabilities
Due to custodian.............................................. 1,118,988
Payable for investment securities purchased................... 1,405,800
Payable for capital stock redeemed............................ 854,129
Advisory fee payable.......................................... 112,800
Distribution fee payable...................................... 81,748
Accrued expenses.............................................. 1,328,735
------------
Total liabilities............................................. 4,902,200
------------
Net Assets.................................................... $131,302,090
============
Composition of Net Assets
Capital stock, at par......................................... $ 10,175
Additional paid-in capital.................................... 97,407,584
Accumulated net investment loss............................... (1,482,246)
Accumulated net realized gain on investments
and foreign currency transactions.......................... 5,044,873
Net unrealized appreciation of investments and
foreign currency denominated assets and liabilities........ 30,321,704
------------
$131,302,090
============
Calculation of Maximum Offering Price
Class A Shares
Net asset value and redemption price per share
($39,124,865 / 2,959,219 shares of capital stock
issued and outstanding).................................... $13.22
Sales Charge--4.25% of public offering price................... 0.59
------
Maximum offering price........................................ $13.81
======
Class B Shares
Net asset value and offering price per share
($64,245,356E/E5,053,924 shares of
capital stock issued and outstanding)...................... $12.71
======
Class C Shares
Net asset value and offering price per share
($19,363,804 / 1,520,058 shares of
capital stock issued and outstanding)...................... $12.74
======
Advisor Class Shares
Net asset value, redemption and offering price per share
($8,568,065 / 642,105 shares of
capital stock issued and outstanding)...................... $13.34
======
</TABLE>
See notes to financial statements.
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Alliance All-Asia Investment Fund o 13
<PAGE>
-----------------------
STATEMENT OF OPERATIONS
-----------------------
STATEMENT OF OPERATIONS
Six Months Ended April 30, 2000 (unaudited)
<TABLE>
<S> <C> <C>
Investment Income
Dividends (net of foreign taxes
withheld of $34,394)........................ $ 365,608
Interest....................................... 159,456 $ 525,064
-------------
Expenses
Advisory fee................................... 681,718
Distribution fee - Class A..................... 75,969
Distribution fee - Class B..................... 304,671
Distribution fee - Class C..................... 88,870
Custodian...................................... 134,886
Transfer agency................................ 117,477
Administrative................................. 102,000
Audit and legal................................ 45,618
Registration................................... 44,328
Directors' fees................................ 20,000
Printing....................................... 15,220
Miscellaneous.................................. 8,245
-------------
Total expenses before interest................. 1,639,002
Interest expense (see Note G).................. 42,025
-------------
Total expenses................................. 1,681,027
Less: expense offset arrangement
(see Note B)................................ (7,012)
-------------
Net expenses................................... 1,674,015
------------
Net investment loss............................ (1,148,951)
------------
Realized and Unrealized Gain (Loss)
on Investments and Foreign
Currency Transactions
Net realized gain on investment
transactions................................ 11,930,886
Net realized loss on foreign currency
transactions................................ (246,615)
Net change in unrealized appreciation/
depreciation of:
Investments.............................. 15,550,735
Foreign currency denominated assets
and liabilities........................ (1,046,125)
------------
Net gain on investments and foreign
currency transactions....................... 26,188,881
------------
Net Increase in Net Assets
from Operations............................. $ 25,039,930
============
</TABLE>
See notes to financial statements.
--------------------------------------------------------------------------------
14 o Alliance All-Asia Investment Fund
<PAGE>
----------------------------------
STATEMENT OF CHANGES IN NET ASSETS
----------------------------------
STATEMENT OF CHANGES
IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
April 30, 2000 October 31,
(unaudited) 1999
------------- ------------
<S> <C> <C>
Increase (Decrease) in Net Assets
from Operations
Net investment loss............................ $ (1,148,951) $ (704,753)
Net realized gain on investments and
foreign currency transactions............... 11,684,271 5,356,338
Net change in unrealized appreciation/
depreciation of investments and
foreign currency denominated assets
and liabilities............................. 14,504,610 17,406,135
------------- ------------
Net increase in net assets from
operations.................................. 25,039,930 22,057,720
Capital Stock Transactions
Net increase................................... 13,308,503 54,544,522
------------- ------------
Total increase................................. 38,348,433 76,602,242
Net Assets
Beginning of year.............................. 92,953,657 16,351,415
------------- ------------
End of period.................................. $ 131,302,090 $ 92,953,657
============= ============
</TABLE>
See notes to financial statements.
--------------------------------------------------------------------------------
Alliance All-Asia Investment Fund o 15
<PAGE>
-----------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
NOTES TO FINANCIAL STATEMENTS
April 30, 2000 (unaudited)
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 an 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 may 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) or on the
Nasdaq Stock Market, Inc. 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,
(but excluding securities traded on the Nasdaq Stock Market, Inc.) are valued at
the mean of the current bid and asked prices. U.S. government and fixed income
securities which mature in 60 days or less are valued at amortized cost, unless
this method does not represent fair value. Securities for which current market
quotations are not readily available are valued at their fair value as
determined in good faith by, or in accordance with procedures adopted by, the
Board of Directors. 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.
--------------------------------------------------------------------------------
16 o Alliance All-Asia Investment Fund
<PAGE>
-----------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
2. Currency Translation
Assets and liabilities denominated in foreign currencies and commitments under
forward exchange currency contracts are translated into U.S. dollars at the mean
of the quoted bid and asked price of such currencies against the U.S. dollar.
Purchases and sales of portfolio securities are translated 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 or loss on foreign currency transactions represents foreign
exchange gains and losses from sales and maturities of investments 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
unrealized appreciation (depreciation) of investments and foreign currency
denominated assets and liabilities.
3. Taxes
It is the Fund's policy to meet the requirements of the Internal Revenue Code
applicable to regulated investment companies and to distribute all of its
investment company taxable income and net realized gains, if any, to
shareholders. Therefore, no provisions for federal income or excise taxes are
required.
4. 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 Advisor Class shares (Advisor Class shares also have no
distribution fees).
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. 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.
--------------------------------------------------------------------------------
Alliance All-Asia Investment Fund o 17
<PAGE>
-----------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
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. Effective July 1, 1998 the Adviser
has agreed to waive its fees and bear certain expenses to the extent necessary
to limit total operating expenses on an annual basis to 3.00%, 3.70%, 3.70% and
2.70% of the daily average net assets for the Class A, Class B, Class C and
Advisor Class shares, respectively. For the six months ended April 30, 2000,
there were no such waivers and reimbursement.
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 six months ended
April 30, 2000, the Fund paid the Adviser $102,000.
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 $64,879 for the six months ended April 30, 2000.
For the six months ended April 30, 2000, the Fund's expenses were reduced by
$7,012 under an expense offset arrangement with Alliance Fund Services, Inc.
Alliance Fund Distributors, Inc. (a wholly-owned subsidiary of the Adviser)
serves as the Distributor of the Fund's shares. The Distributor has advised the
Fund that it has received front-end sales charges of $64,667 from the sales of
Class A shares and $2,496, $90,540 and $12,972 in contingent deferred sales
charges imposed upon redemptions by shareholders of Class A, Class B and Class C
shares, respectively, for the six months ended April 30, 2000.
Brokerage commissions paid on investment transactions for the six months ended
April 30, 2000, amounted to $451,477, 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 distribution and servicing fees 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 are no distribution and
servicing fees on the Advisor Class
--------------------------------------------------------------------------------
18 o Alliance All-Asia Investment Fund
<PAGE>
-----------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
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 advised the Fund that
it has incurred expenses in excess of the distribution costs reimbursed by the
Fund in the amounts of $3,423,118 and $544,954 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 $119,580,508 and $104,723,815, respectively,
for the six months ended April 30, 2000. There were no purchases or sales of
U.S. government or government agency obligations for the six months ended April
30, 2000.
At April 30, 2000, the cost of investments for federal income tax purposes was
substantially the same as the cost for financial reporting purposes.
Accordingly, gross unrealized appreciation of investments was $36,477,820 and
gross unrealized depreciation of investments was $5,106,322 resulting in net
unrealized appreciation of $31,371,498 (excluding foreign currency
transactions).
The Fund had a net capital loss carryover of $6,638,486, which expires October
31, 2006, To the extent that any net capital loss carryover or post October loss
is used to offset future capital gains, it is probable that these gains will not
be distributed to shareholders.
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
--------------------------------------------------------------------------------
Alliance All-Asia Investment Fund o 19
<PAGE>
-----------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
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 currency contracts outstanding at April 30, 2000.
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:
<TABLE>
<CAPTION>
-------------------------------- ---------------------------------
SHARES AMOUNT
-------------------------------- ---------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
April 30, 2000 October 31, April 30, 2000 October 31,
(unaudited) 1999 (unaudited) 1999
--------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A
Shares sold 5,231,484 6,433,290 $ 69,511,060 $ 57,791,538
-----------------------------------------------------------------------------------
Shares converted
from Class B 13,339 19,749 186,361 156,304
-----------------------------------------------------------------------------------
Shares redeemed (6,115,000) (3,267,924) (81,694,261) (30,029,950)
-----------------------------------------------------------------------------------
Net increase
(decrease) (870,177) 3,185,115 $(11,996,840) $ 27,917,892
===================================================================================
Class B
Shares sold 3,447,495 4,318,194 $ 44,022,128 $ 35,971,005
-----------------------------------------------------------------------------------
Shares converted
to Class A (13,847) (20,362) (186,361) (156,304)
-----------------------------------------------------------------------------------
Shares redeemed (2,155,463) (2,070,861) (27,942,995) (16,329,930)
-----------------------------------------------------------------------------------
Net increase 1,278,185 2,226,971 $ 15,892,772 $ 19,484,771
===================================================================================
Class C
Shares sold 1,606,736 1,716,656 $ 21,010,294 $ 14,621,115
-----------------------------------------------------------------------------------
Shares redeemed (1,081,176) (1,022,208) (14,412,978) (8,699,216)
-----------------------------------------------------------------------------------
Net increase 525,560 694,448 $ 6,597,316 $ 5,921,899
===================================================================================
Advisor Class
Shares sold 550,722 702,565 $ 7,578,617 $ 5,903,713
-----------------------------------------------------------------------------------
Shares redeemed (358,922) (593,179) (4,763,362) (4,683,753)
-----------------------------------------------------------------------------------
Net increase 191,800 109,386 $ 2,815,255 $ 1,219,960
===================================================================================
</TABLE>
--------------------------------------------------------------------------------
20 o Alliance All-Asia Investment Fund
<PAGE>
-----------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
NOTE F
Concentration of Risk
Investing in securities of foreign companies involves special risks which
include the possibility of future political and economic developments which
could adversely affect the value of such securities. Moreover, securities of
many foreign companies and their markets may be less liquid and their prices
more volatile than those of United States companies. 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
Bank Borrowing
A number of open-end mutual funds managed by the Adviser, including the Fund,
participate in a $750 million revolving credit facility (the "Facility")
intended to provide for short-term financing if necessary, subject to certain
restrictions, in connection with abnormal redemption activity. Commitment fees
related to the Facility are paid by the participating funds and are included in
miscellaneous expenses in the statement of operations. During the six months
ended April 30, 2000 the Fund had borrowings outstanding for twenty-four days.
The weighted interest on such borrowings was 5.54%.
--------------------------------------------------------------------------------
Alliance All-Asia Investment Fund o 21
<PAGE>
--------------------
FINANCIAL HIGHLIGHTS
--------------------
FINANCIAL HIGHLIGHTS
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------
Class A
--------------------------------------------------------------------------------------------------
Six Months November 28,
Ended 1994(a) to
April 30, Year Ended October 31, October
2000 --------------------------------------------------------- 31,
(unaudited) 1999 1998 1997 1996 1995
--------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period ......... $ 10.46 $ 5.86 $ 7.54 $ 11.04 $ 10.45 $ 10.00
--------------------------------------------------------------------------------------------------
Income From Investment
Operations
Net investment loss(b) ........ (.09) (.10)(c) (.10)(c) (.21)(c) (.21)(c) (.19)(c)
Net realized and unrealized
gain (loss) on investments
and foreign currency
transactions ................ 2.85 4.70 (1.58) (2.95) .88 .64
--------------------------------------------------------------------------------------------------
Net increase (decrease) in
net asset value from
operations .................. 2.76 4.60 (1.68) (3.16) .67 .45
--------------------------------------------------------------------------------------------------
Less: Distributions
Distributions from net
realized gains on investments
and foreign currency
transactions ................ -0- -0- -0- (.34) (.08) -0-
--------------------------------------------------------------------------------------------------
Net asset value,
end of period ............... $ 13.22 $ 10.46 $ 5.86 $ 7.54 $ 11.04 $ 10.45
==================================================================================================
Total Return
Total investment return
based on net asset
value(d) .................... 26.39% 78.50% (22.28)% (29.61)% 6.43% 4.50%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted) ............. $ 39,125 $ 40,040 $ 3,778 $ 5,916 $ 12,284 $ 2,870
Ratio to average net assets of:
Expenses, net of waivers/
reimbursements ............ 2.04%(e)(f) 2.45%(e) 3.74%(e) 3.45% 3.37% 4.42%(f)
Expenses, before waivers/
reimbursements ............ 2.03%(f) 2.93% 4.63% 3.57% 3.61% 10.57%(f)
Expenses, before waivers/
reimbursements excluding
interest expense .......... 1.98%(f)(g) 2.93% 4.63% 3.57% 3.61% 10.57%(f)
Net investment loss, net of
waivers/reimbursements .... (1.27)%(f) (1.20)% (1.50)% (1.97)% (1.75)% (1.87)%(f)
Portfolio turnover rate ....... 164% 119% 93% 70% 66% 90%
</TABLE>
See footnote summary on page 26.
--------------------------------------------------------------------------------
22 o Alliance All-Asia Investment Fund
<PAGE>
--------------------
FINANCIAL HIGHLIGHTS
--------------------
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------
Class B
--------------------------------------------------------------------------------------------------
Six Months November 28,
Ended 1994(a) to
April 30, Year Ended October 31, October
2000 --------------------------------------------------------- 31,
(unaudited) 1999 1998 1997 1996 1995
--------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period .......... $ 10.09 $ 5.71 $ 7.39 $ 10.90 $ 10.41 $ 10.00
--------------------------------------------------------------------------------------------------
Income From Investment
Operations
Net investment loss(b) ......... (.13) (.18)(c) (.14)(c) (.28)(c) (.28)(c) (.25)(c)
Net realized and unrealized
gain (loss) on investments
and foreign currency
transactions ................. 2.75 4.56 (1.54) (2.89) .85 .66
--------------------------------------------------------------------------------------------------
Net increase (decrease) in
net asset value from
operations ................... 2.62 4.38 (1.68) (3.17) .57 .41
--------------------------------------------------------------------------------------------------
Less: Distributions
Distributions from net
realized gains on investments
and foreign currency
transactions ................. -0- -0- -0- (.34) (.08) -0-
--------------------------------------------------------------------------------------------------
Net asset value,
end of period ................ $ 12.71 $ 10.09 $ 5.71 $ 7.39 $ 10.90 $ 10.41
==================================================================================================
Total Return
Total investment return
based on net asset
value(d) ..................... 25.97% 76.71% (22.73)% (30.09)% 5.49% 4.10%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted) .............. $ 64,245 $ 38,108 $ 8,844 $ 11,439 $ 23,784 $ 5,170
Ratio to average net assets of:
Expenses, net of waivers/
reimbursements ............. 2.80%(e)(f) 3.48%(e) 4.49 %(e) 4.15% 4.07% 5.20%(f)
Expenses, before waivers/
reimbursements ............. 2.79%(f) 3.96% 5.39% 4.27% 4.33% 11.32%(f)
Expenses, before waivers/
reimbursements excluding
interest expense ........... 2.73%(f)(g) 3.96% 5.39% 4.27% 4.33% 11.32%(f)
Net investment loss, net of
waivers/reimbursements ..... (2.02)%(f) (2.31)% (2.22)% (2.67)% (2.44)% (2.64)%(f)
Portfolio turnover rate ........ 164% 119% 93% 70% 66% 90%
</TABLE>
See footnote summary on page 26
--------------------------------------------------------------------------------
Alliance All-Asia Investment Fund o 23
<PAGE>
--------------------
FINANCIAL HIGHLIGHTS
--------------------
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------
Class C
--------------------------------------------------------------------------------------------------
Six Months November 28,
Ended 1994(a) to
April 30, Year Ended October 31, October
2000 --------------------------------------------------------- 31,
(unaudited) 1999 1998 1997 1996 1995
--------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period ......... $ 10.12 $ 5.72 $ 7.40 $ 10.91 $ 10.41 $ 10.00
--------------------------------------------------------------------------------------------------
Income From Investment
Operations
Net investment loss(b) ........ (.13) (.18)(c) (.14)(c) (.27)(c) (.28)(c) (.35)(c)
Net realized and unrealized
gain (loss) on investments
and foreign currency
transactions ................ 2.75 4.58 (1.54) (2.90) .86 .76
--------------------------------------------------------------------------------------------------
Net increase (decrease) in
net asset value from
operations .................. 2.62 4.40 (1.68) (3.17) .58 .41
--------------------------------------------------------------------------------------------------
Less: Distributions
Distributions from net
realized gains on investments
and foreign currency
transactions ................ -0- -0- -0- (.34) (.08) -0-
--------------------------------------------------------------------------------------------------
Net asset value,
end of period ............... $ 12.74 $ 10.12 $ 5.72 $ 7.40 $ 10.91 $ 10.41
==================================================================================================
Total Return
Total investment return
based on net asset
value(d) .................... 25.89% 76.92% (22.70)% (30.06)% 5.59% 4.10%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted) ............. $ 19,364 $ 10,060 $ 1,717 $ 1,859 $ 4,228 $ 597
Ratio to average net assets of:
Expenses, net of waivers/
reimbursements ............ 2.80%(e)(f) 3.41(e) 4.48%(e) 4.15% 4.07% 5.84%(f)
Expenses, before waivers/
reimbursements ............ 2.79%(f) 3.89% 5.42% 4.27% 4.30% 11.38%(f)
Expenses, before waivers/
reimbursements excluding
interest expense .......... 2.72%(f)(g) 3.89% 5.42% 4.27% 4.30% 11.38%(f)
Net investment loss, net of
waivers/reimbursements .... (2.00)%(f) (2.21)% (2.20)% (2.66)% (2.42)% (3.41)%(f)
Portfolio turnover rate ....... 164% 119% 93% 70% 66% 90%
</TABLE>
See footnote summary on page 26.
--------------------------------------------------------------------------------
24 o Alliance All-Asia Investment Fund
<PAGE>
--------------------
FINANCIAL HIGHLIGHTS
--------------------
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------
Advisor Class
-------------------------------------------------------------------------------------
Six Months October 2,
Ended 1996(h) to
April 30, Year Ended October 31, October
2000 ------------------------------------------ 31,
(unaudited) 1999 1998 1997 1996
-------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ... $ 10.54 $ 5.90 $ 7.56 $ 11.04 $ 11.65
-------------------------------------------------------------------------------------
Income From Investment Operations
Net investment loss(b) ................. (.07) (.10)(c) (.08)(c) (.15)(c) -0-(c)
Net realized and unrealized gain (loss)
on investments and foreign currency
transactions ......................... 2.87 4.74 (1.58) (2.99) (.61)
-------------------------------------------------------------------------------------
Net increase (decrease) in net asset
value from operations ............. 2.80 4.64 (1.66) (3.14) (.61)
-------------------------------------------------------------------------------------
Less: Distributions
Distributions from net realized gains on
investments and foreign currency
transactions ......................... -0- -0- -0- (.34) -0-
-------------------------------------------------------------------------------------
Net asset value, end of period ......... $ 13.34 $ 10.54 $ 5.90 $ 7.56 $ 11.04
=====================================================================================
Total Return
Total investment return based on
net asset value(d) ................... 26.57% 78.64% (21.96)% (29.42)% (5.24)%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted) ...................... $ 8,568 $ 4,746 $ 2,012 $ 1,338 $ 27
Ratio to average net assets of:
Expenses, net of waivers/
reimbursements ..................... 1.77%(e)(f) 2.45%(e) 3.46%(e) 3.21% 4.97%(f)
Expenses, before waivers/
reimbursements ..................... 1.76%(f) 2.93% 4.39% 3.43% 5.54%(f)
Expenses, before waivers/
reimbursements excluding
interest expense ................... 1.70%(f)(g) 2.93% 4.39% 3.43% 5.54%(f)
Net investment gain (loss), net of
waivers/reimbursements ............. (0.98)%(f) (1.33)% 1.22% (1.51)% 1.63%(f)
Portfolio turnover rate ................ 164% 119% 93% 70% 66%
</TABLE>
See footnote summary on page 26.
--------------------------------------------------------------------------------
Alliance All-Asia Investment Fund o 25
<PAGE>
--------------------
FINANCIAL HIGHLIGHTS
--------------------
(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) Ratios reflect expenses grossed up for expense offset arrangement with the
Transfer Agent. For the periods shown below, the net expense ratios were
as follows:
Six Months
Ended
April 30, Year Ended October 31,
2000 ----------------------
(unaudited) 1999 1998
--------------------------------------
Class A................. 2.03% 2.43% 3.70%
Class B................. 2.79% 3.46% 4.44%
Class C................. 2.79% 3.39% 4.44%
Advisor Class........... 1.76% 2.43% 3.41%
(f) Annualized
(g) Net of interest expense of .06 % on credit facility. (see Note G)
(h) Commencement of distribution.
--------------------------------------------------------------------------------
26 o Alliance All-Asia Investment Fund
<PAGE>
----------------------------
GLOSSARY OF INVESTMENT TERMS
----------------------------
GLOSSARY OF INVESTMENT TERMS
Benchmark
A standard by which a fund's performance can be measured. A benchmark is usually
an unmanaged index, such as the Standard & Poor's 500 Stock Index or the Lehman
Brothers Aggregate Bond Index.
bond
Bonds are issued by governments or corporations when they need to raise cash.
Bonds are sold, or issued, to investors and have a maturity date, which is the
date the issuer is obligated to repay the investor for the principal, or face
amount, of the Bond. Bonds also pay interest until maturity. Bonds are also
called fixed-income securities
common stock
A type of security that represents ownership in a public company.
Consumer Price Index (CPI)
An index that measures the cost of living. The CPI is published by the U.S.
Bureau of Labor Statistics.
index
A compilation of securities of similar types of companies that is used to
measure the investment performance of securities within that specific market. An
index is often used as a benchmark for a mutual fund. An investor cannot invest
directly in an index.
monetary policy
The regulation of the money supply and interest rates by a country's central
bank with the purpose of controlling inflation and stabilizing currency
net asset value (NAV)
The value of a mutual fund's total assets, minus its liabilities, divided by the
number of shares outstanding.
portfolio
The collection of securities that make up a Fund's or an investor's investments.
yield
The rate of return on an asset, usually referring to dividend or interest
payments, expressed as a percentage of current market price.
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Alliance All-Asia Investment Fund o 27
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Alliance Capital
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Alliance Capital
The Investment Professional's Choice
Alliance Capital is a leading global investment management firm with over $394
billion in assets under management. In recognition of our far-reaching
investment capabilities, Alliance Capital has been selected by employee benefit
plans for 28 of the FORTUNE 100 companies and public retirement funds in 33
states as well as by hundreds of foundations, endowments and foreign
institutions. By sharing this institutional money management experience with
millions of mutual fund investors as well, Alliance stands out as a "manager of
choice" for thousands of investment professionals around the world.
At Alliance Capital, we place a premium on investment research. We carefully
select securities based on our proprietary research, conducted by over 276
investment professionals in 22 investment offices worldwide. Our commitment to
this process means that our mutual fund shareholders have their portfolios
managed by the same experienced analysts and portfolio managers who manage the
pension funds of some of America's largest institutional investors.
All information on Alliance Capital is as of 3/31/00.
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28 o Alliance All-Asia Investment Fund
<PAGE>
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Alliance Capital At Your Service
--------------------------------
Alliance Capital At Your Service
At Alliance Capital, shareholder satisfaction is among our top priorities.
That's why we provide our shareholders with a wide variety of products and
time-saving services to meet their needs.
o Low Minimum Investments
You can begin investing in Alliance Capital funds with as little as $250
(except for Alliance Select Investor Series Premier Portfolio and Alliance
Select Investor Series Technology Portfolio, which generally have a
$10,000 minimum initial investment) and may make subsequent investments of
$50 or more.
o Automatic Reinvestment
You may choose to reinvest fund dividend and capital-gains distributions
automatically at no charge.
o Automatic Investment Program
Build your investment account by having money automatically transferred
from your bank account on a regular basis.
o Dividend Direction Plans
You may cross-invest dividends from one fund into the same class of shares
in any other fund without incurring a sales charge. This can be a good way
to diversify your assets.
o The Alliance Advance
A quarterly newsletter discussing investment strategies, economic news and
other matters that could affect your mutual fund investment.
o Auto Exchange
You may choose to automatically exchange money from one Alliance Capital
fund to another on a regular basis. This can be a good way to dollar cost
average*, helping you to invest with discipline.
o Systematic Withdrawals
Regular checks for specified amounts can be sent to you or to your
brokerage or bank account.
o A Choice of Purchase Plans
Most funds are available in A, B, and C Class shares. Many funds are also
available in Advisor Class shares.
o Telephone Transaction
Purchases, transfers and redemptions can be made by calling (800)
221-5672. Our knowledgeable representatives are available to assist you
Monday through Friday from 8:30 a.m. to 8:00 p.m. Eastern Standard Time.
o Alliance Answer: 24-Hour Information
For your convenience, our computerized audio response system is available
to you 24-hours a day by calling (800) 251-0539. Using any touch tone
phone, you can hear share prices, get account balances, review details of
your last transaction, obtain dividend information, order
statements/checkbooks, review fund objectives, literature and Watchlist
information, order additional copies of statements and request additional
year-end tax forms (available from February 1 to May 31).
o Alliance Capital on the World Wide Web at www.alliancecapital.com. Here,
you can access updated account information, make additional investments,
request more information, exchange between Alliance funds and view fund
performance, press releases and articles.
* Dollar cost averaging does not assure a profit nor protect against loss in
a declining market. Since this strategy involves continuous investments in
securities, regardless of fluctuating prices, investors should consider
their financial ability to invest during periods of low price levels.
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Alliance All-Asia Investment Fund o 29
<PAGE>
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BOARD OF DIRECTORS
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BOARD OF 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
Bruce W. Calvert, Senior Vice President
Kathleen A. Corbet, Senior Vice President
Thomas J. Bardong, Vice President
Russell Brody, Vice President
Hiroshi Motoki, Vice President
Samir Arora, 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 LLP
One Battery Park Plaza
New York, NY 10004
Independent Auditors
Ernst & Young LLP
787 Seventh Avenue
New York, NY 10019
Transfer Agent
Alliance Fund Services, Inc.
P.O. Box 1520
Secaucus, NJ 07096-1520
Toll-Free 1-(800)-221-5672
(1) Member of the Audit Committee.
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30 o Alliance All-Asia Investment Fund
<PAGE>
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ALLIANCE CAPITAL FAMILY OF FUNDS
--------------------------------
ALLIANCE CAPITAL FAMILY OF FUNDS
Domestic Equity Funds
Balanced Shares
Conservative Investors Fund
Disciplined Value Fund
Growth & Income Fund
Growth Fund
Growth Investors Fund
Health Care Fund
Premier Growth Fund
Quasar Fund Real Estate Investment Fund
Technology Fund
The Alliance Fund
Utility Income Fund
Global & International Equity Funds
All-Asia Investment Fund
Global Small Cap Fund
Greater China '97 Fund
International Fund
International Premier Growth Fund
New Europe Fund
Worldwide Privatization Fund
Select Investor Series
Premier Portfolio
Technology Portfolio
Fixed Income Funds
Corporate Bond Portfolio
Global Dollar Government Fund
Global Strategic Income Trust
High Yield Fund
Limited Maturity Government Fund
Mortgage Securities Income Fund
Multi-Market Strategy Trust
North American Government Income Trust
Quality Bond Portfolio
U.S. Government Portfolio
Municipal Income Funds
National
Insured National
Arizona
California
Insured California
Florida
Massachusetts
Michigan
Minnesota
New Jersey
New York
Ohio
Pennsylvania
Virginia
Alliance also offers AFD Exchange Reserves, which serves as the money market
fund exchange vehicle for the Alliance mutual funds.
To obtain a prospectus for any Alliance Capital fund, call your investment
professional, or call Alliance at (800) 227-4618.
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Alliance All-Asia Investment Fund o 31
<PAGE>
NOTES
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32 o Alliance All-Asia Investment Fund
<PAGE>
Alliance All-Asia Investment Fund ---------------
1345 Avenue of the Americas BULK RATE
New York, NY 10105 U.S. POSTAGE
(800) 221-5672 PAID
New York, NY
Permit No. 7131
---------------
AllianceCapital [LOGO](R)
The Investment Professional's Choice
(R) These registered service marks used under license from the owner, Alliance
Capital Management L.P.
AAFSR400
