ALLIANCE ALL-ASIA INVESTMENT FUND
ANNUAL REPORT
OCTOBER 31, 1999
ALLIANCE CAPITAL
LETTER TO SHAREHOLDERS ALLIANCE ALL-ASIA INVESTMENT FUND
_______________________________________________________________________________
December 31, 1999
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 annual reporting
period ended October 31, 1999.
INVESTMENT RESULTS
The following table shows how your Fund performed during the six- and
twelve-month periods ended October 31, 1999. For comparison, the table also
includes performance data for the Fund's benchmark, as represented by the MSCI
AC Asia Pacific Index, and for the Fund's peer group, as represented by the
Lipper Pacific Region Funds Average.
For the six-month period ended October 31, 1999, the Fund's Class A shares
posted a total return of 36.38% at net asset value, substantially outperforming
both the MSCI AC Asia Pacific Index (+18.76%) and the Lipper Pacific Region
Funds Average (+26.31%).
Over the twelve months ended October 31, 1999, equity markets around the region
performed strongly. During this period, South Korea was up 164.90%, India
gained 63.96%, Japan rose 58.66%, Singapore appreciated 57.99%, Hong Kong rose
27.24% and Australia climbed 12.42% all on a U.S.-dollar basis. Appreciation of
the Japanese yen and South Korean won during this period amplified the strong
stock market performances of these markets when U.S. dollar returns are
calculated.
In terms of the Fund's country allocation, during the six-month period ended
October 31, 1999 we generally were in line with the benchmark index, but with
exceptions in our underweighting of Japan and our relative overweightings in
Korea and India. These country allocations contributed positively to
performance. In addition, intra-period portfolio activity has also contributed
positively to the Fund's performance. However, the majority of the
outperformance was attributable to our successful stock selections in each
market.
INVESTMENT RESULTS*
Periods ended October 31, 1999
TOTAL RETURNS
6 MONTHS 12 MONTHS
---------- -----------
Alliance All-Asia Investment Fund
Class A 36.38% 78.50%
Class B 35.62% 76.71%
Class C 35.66% 76.92%
MSCI AC Asia Pacific Index 18.76% 54.22%
Lipper Pacific Region Funds Average 26.31% 67.12%
* THE FUND'S INVESTMENT RESULTS REPRESENT 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 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 WITH PRIMARY TRADING MARKETS OR OPERATIONS CONCENTRATED IN
THE WESTERN PACIFIC BASIN REGION OR A SINGLE COUNTRY WITHIN THIS REGION. THE
LIPPER AVERAGE INCLUDED 56 FUNDS FOR THE SIX-MONTH PERIOD AND 55 FUNDS FOR THE
TWELVE-MONTH PERIOD ENDED OCTOBER 31, 1999. AN INVESTOR CANNOT INVEST DIRECTLY
IN AN INDEX OR AN AVERAGE.
# EXCLUDES SHARES, WHICH ARE NOT READILY PURCHASED BY NON-LOCAL INVESTORS.
ADDITIONAL INVESTMENT RESULTS APPEAR ON PAGE 4.
ECONOMIC OUTLOOK
Thanks to the strong worldwide economy, Asian countries successfully recorded
strong stock market performances in 1999, which were accompanied by continuous
upgrades in economic performance. Many Asian countries, from Korea to
Indonesia, Hong Kong to India have seen their economic forecasts revised upward
as
1
ALLIANCE ALL-ASIA INVESTMENT FUND
_______________________________________________________________________________
better-than-expected performance is delivered. The Asian Development Bank
continued to upgrade its 1999 gross domestic product ("GDP") forecast for Asia
ex-Japan, and the latest forecast calls for 5.7% growth in real terms, up from
2.6% in 1998. Strong earnings, ample liquidity and low interest rates
contributed to the strong performance of the equity markets in the region.
It is also anticipated that Japanese GDP will record a growth close to the
government's target of 0.5% in fiscal 1999. Strong exports and public spending
have been the catalysts of this recovery. We believe that a Japanese recovery
and a strong yen have had widespread positive effects on the Asian economy.
Going forward in 2000, the Asian Development Bank's GDP growth forecast for
Asia ex-Japan is 5.7%, and we believe there is a chance that this forecast will
be upgraded. Strong worldwide demand should drive Asian exports. We also
believe that higher commodity prices will contribute to Asian earnings. The
risk factors appear to be inflation and interest rate tightening, and we
monitor these risk factors closely. Even though we remain cautious about the
Japanese economic recovery, in our view, corporate earnings in Japan in fiscal
2000 should be able to grow by about 15% year-on-year. Therefore, we have a
mildly optimistic view on the Japanese equity market.
Importantly, Asia is restructuring and some of the best returns this year have
come from companies, and indeed, the country (Korea), which have restructured
the most. Openness to foreign direct investment, increased privatizations,
strengthening corporate governance norms and reducing the political-business
nexus are common themes being pursued by many governments across the region.
Individual companies under pressure from creditors and shareholders (and the
extraordinary wealth being created by the new-age companies) are restructuring,
reforming and generally becoming more focused, efficient and shareholder
friendly. We believe that Asian restructuring is the beginning of a trend that
will deliver good shareholder returns going forward.
Additionally, we find that Asia is increasingly willing and able to adopt,
apply and absorb the latest technologies, which are facilitating the growth of
the high-tech industries within Asia. Electronics exports now account for
between one-third and two-thirds of all exports in Taiwan, Singapore, Korea,
Philippines and Malaysia. India is rapidly rising as a global center for
software development, and use of Internet and mobile telephony is rising across
the region. Our high exposure to the Asian technology sector positively
impacted our performance in the reporting period.
PORTFOLIO STRATEGY AND OUTLOOK
Regarding 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 in 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 October, we are nearly fully invested
in over eighty companies located in ten countries within the region.
Regarding stock selection, our on-the-ground research team continues to
distinguish those companies with sound fundamentals, strong managements and
clear shareholder orientation. At the end of the period, your Fund's ten
largest holdings accounted for 29.0% of net assets.
As of October 31, 1999, your Fund invested 3.5% of its net assets in Infosys
Technologies Ltd. In our view, Infosys leads the Indian information technology
industry in terms of management quality and competitiveness. We believe that
the strong growth trend of Indian information technology industry will continue
in the post-Y2K period, thanks to the cost-competitive, talented labor pool in
India, as well as the Indian government's support of this industry.
In Japan, Takeda Chemical Industries and Tokyo Electron Ltd. were also among
your Fund's core investments. Takeda is the largest pharmaceutical company in
Japan with a strong product pipeline. Through its successful joint venture with
Abbott Laboratories, Takeda also takes advantage of strong growth in health
care spending in the U.S. Tokyo Electron is the world's second largest
semiconductor production equipment maker. We expect that Tokyo Electron's order
receipt will show strong growth
2
ALLIANCE ALL-ASIA INVESTMENT FUND
_______________________________________________________________________________
from a positive silicon cycle as well as the technological shift from a 200 mm
wafer to a 300 mm wafer process. (The silicon wafer size of the most advanced
production line has been 200 mm but is increasing to 300 mm, which is an
important technological leap that will require substantial investment because
semiconductor producers will invest in new lines.)
The Fund's country allocation is an outcome of our stock selection based on
in-house analysts' company research. As previously mentioned, as of October 31,
1999, your Fund was overweight in India and Korea and underweight in Japan. In
addition, the Fund had no exposure to 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,
John D. Carifa
Chairman and President
Hiroshi Motoki
Vice President
Samir Arora
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 OCTOBER 31, 1999
CLASS A SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
------------ ------------
One Year 78.50% 70.92%
Since Inception* 1.69% 0.81%
CLASS B SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
------------ ------------
One Year 76.71% 72.71%
Since Inception* 0.96% 0.96%
CLASS C SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
------------ ------------
One Year 76.92% 75.92%
Since Inception* 1.02% 1.02%
SEC AVERAGE ANNUAL TOTAL RETURNS AS OF THE MOST RECENT QUARTER-END
(DECEMBER 31, 1999)
CLASS A CLASS B CLASS C
------------ ------------ ------------
1 Year 109.70% 113.43% 116.21%
5 Years 6.58% 6.76% 6.81%
Since Inception* 6.48% 6.64% 6.68%
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.
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 and C is 11/28/94.
4
ALLIANCE ALL-ASIA INVESTMENT FUND
_______________________________________________________________________________
ALLIANCE ALL-ASIA INVESTMENT FUND
GROWTH OF A $10,000 INVESTMENT
11/30/94* TO 10/31/99
$11,000
$10,000
$9,000
$8,000
$7,000
$6,000
$5,000
Lipper Pacific Region Funds Average: $10,881
Alliance All-Asia Investment Fund Class A: $10,404
MSCIACAsia Pacific Index: $9,905
11/30/94 10/31/95 10/31/96 10/31/97 10/31/98 10/31/99
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 10/31/99) 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, Class
C and Advisor Class shares will vary from the results shown above due to
differences in expenses charged to those 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) ACAsia 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 10/31/99). 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.
Alliance All-Asia Investment Fund
MSCIACAsia Pacific Index
Lipper Pacific Regions Funds Average
* Closest month-end after the Fund's Class A share inception date of
11/28/94.
5
TEN LARGEST HOLDINGS
OCTOBER 31, 1999 ALLIANCE ALL-ASIA INVESTMENT FUND
_______________________________________________________________________________
PERCENT OF
COMPANY U.S. $ VALUE NET ASSETS
- -------------------------------------------------------------------------------
Infosys Technologies, Ltd.--Develops
software and provides services for the
distribution, banking, telecommunication
and manufacturing sectors. $ 3,265,128 3.5%
Tokyo Electron, Ltd.--Produces, imports
and sells electronic products. 3,239,557 3.5
Samsung Electronics--Manufactures and
exports a wide range of consumer and
industrial electronics equipment. 3,083,119 3.3
China Telecom (Hong Kong), Ltd. Cl. H--
Provides cellular tele-communications
services in the Peoples Republic of
China. 3,035,028 3.3
Takeda Chemical Industries--Produces and
sells health-care related products. 2,642,944 2.8
Yahoo Japan Corp.--Offers a network of
speciality programming and aggregated
information content distributed primarily
on the web serving internet users. 2,637,763 2.8
Softbank Corp.--Invests in internet,
software, finance and networking
companies. The company, through its
subsidiaries, provides electronic
commerce, software and peripheral
hardware equipment for personal
computers books and magazines. 2,408,901 2.6
Shohkoh Fund & Co., Ltd.--Provides
commercial and industrial loans to
small and medium sized firms. 2,233,658 2.4
Sankyo Co., Ltd.--Manufactures and sells
pachinko machines and parts, its
peripheral devices and game software. 2,215,721 2.4
Bank of Fukwoka, Ltd.--Provides regional
banking service in Kyushu, Japan. 2,187,444 2.4
$ 26,949,263 29.0%
6
SECTOR DIVERSIFICATION
OCTOBER 31, 1999 ALLIANCE ALL-ASIA INVESTMENT FUND
_______________________________________________________________________________
PERCENT OF
U.S. $ VALUE NET ASSETS
- -------------------------------------------------------------------------------
Basic Industries $ 1,293,668 1.4%
Capital Goods 2,037,104 2.2
Consumer Manufacturing 3,785,937 4.1
Consumer Services 9,792,803 10.5
Consumer Staples 4,353,312 4.7
Energy 301,361 0.3
Finance 18,483,858 19.9
Healthcare 8,018,493 8.6
Multi-Industry 1,394,366 1.5
Technology 31,703,962 34.1
Utilities 4,287,934 4.6
Total Investments* 85,452,798 91.9
Cash and receivables, net of liabilities 7,500,859 8.1
Net Assets $ 92,953,657 100.0%
* Excludes short-term obligations.
7
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1999 ALLIANCE ALL-ASIA INVESTMENT FUND
_______________________________________________________________________________
COMPANY SHARES U.S. $ VALUE
- -------------------------------------------------------------------------
COMMON STOCKS & OTHER INVESTMENTS-92.0%
AUSTRALIA-2.9%
Lend Lease Corp., Ltd. 33,000 $ 379,758
National Australia Bank,
Ltd. 22,000 339,565
Publishing & Broadcasting,
Ltd. 70,000 415,208
Qantas Airways, Ltd. 220,000 700,177
Tabcorp Holdings, Ltd. 43,750 277,363
Telstra Corp., Ltd. (a) 63,000 320,527
Woodside Petroleum, Ltd. 50,000 301,361
------------
2,733,959
HONG KONG-6.9%
Cheung Kong Holdings,
Ltd. 24,000 218,586
China Telecom (Hong Kong),
Ltd. Cl. H (a) 888,000 3,035,028
Hong Kong Electric 80,000 244,590
Johnson Electric Holdings,
Ltd. 80,000 432,538
Legend Holdings, Ltd. 756,000 812,631
Li & Fung, Ltd. (a) 200,000 341,139
NG Fung Hong, Ltd. 220,000 126,736
Sun Hung Kai Properties,
Ltd. 32,000 259,523
Television Broadcast,
Ltd. (a) 60,000 320,542
VTech Holdings, Ltd. 140,000 360,449
Wing Hang Bank, Ltd. 70,000 228,434
------------
6,380,196
INDIA-9.3%
BFL Software, Ltd. (a) 3,100 48,989
Digital Equipment (India),
Ltd. 80,000 1,090,993
Himachal Futuristic
Communications, Ltd. 60,000 409,122
Hughes Software
Systems (a)(b) 15,200 220,594
Infosys Technologies,
Ltd. (a) 20,400 3,265,128
Larsen & Toubro 100,000 916,839
NIIT, Ltd. 5,000 251,209
New Shares (a) 8,000 401,244
Satyam Computer Services,
Ltd. (a) 32,000 942,824
Zee Telefilms, Ltd. (a) 10,500 1,068,588
------------
8,615,530
INDONESIA-0.7%
PT Indofood Sukses
Makmur Tbk (a) 508,500 600,853
JAPAN-55.8%
Acom Co., Ltd. 3,900 426,454
Aeon Credit Service, Ltd. 4,400 641,504
Ajinomoto Co., Inc. 65,000 728,838
Alps Electric Co., Ltd. 78,000 1,511,294
Bank of Fukuoka, Ltd. 284,000 2,187,444
Bank of Tokyo-Mitsubishi,
Ltd. 121,200 2,008,859
Banyu Pharmaceutical Co.,
Ltd. 107,000 1,959,263
Bridgestone Corp. 41,000 1,128,675
Canon, Inc. 45,000 1,273,320
DDI Corp. 100 1,093,473
FANUC, Ltd. 7,000 543,859
Fuji Bank, Ltd. 145,000 1,988,873
Fujitsu, Ltd. 35,000 1,054,146
Honda Motor Co., Ltd. 16,000 675,267
Hoya Corp. 22,000 1,582,658
Japan Tobacco, Inc. 96 1,058,942
Kao Corp. 49,000 1,494,605
Kawasaki Steel Corp. (a) 680,000 1,539,303
Nikon Corp. 41,000 975,301
NTT Mobile
Communications
Network, Inc. (a) 30 797,084
Rohm Co., Ltd. 4,700 1,054,913
Sankyo Co., Ltd. 28,000 2,215,721
Santen Pharmaceutical Co.,
Ltd. 95,000 2,145,940
Shohkoh Fund & Co., Ltd. 3,650 2,233,658
Softbank Corp. 5,800 2,408,901
8
ALLIANCE ALL-ASIA INVESTMENT FUND
_______________________________________________________________________________
COMPANY SHARES U.S. $ VALUE
- -------------------------------------------------------------------------
Sumitomo Trust &
Banking 142,000 $ 1,451,940
Suruga Bank, Ltd. 138,000 2,025,227
Takeda Chemical
Industries 46,000 2,642,944
TDK Corp. 14,000 1,371,061
Tokyo Electron, Ltd. 39,000 3,239,557
Toyo Trust & Banking Co.,
Ltd. 272,000 1,721,932
Toyota Motor Corp. 22,000 761,786
Yahoo Japan Corp. (a) 5 2,637,763
Yamanouchi Pharmaceutical
Co., Ltd.(a) 28,000 1,270,347
------------
51,850,852
PHILIPPINES-1.2%
Philippine Long Distance
Telephone Co. 32,000 666,334
San Miguel Corp.
Class B 325,000 470,075
------------
1,136,409
SINGAPORE-2.0%
Chartered
Semiconductor (a) 269,000 541,009
DBS Group Holdings,
Ltd. 52,335 591,747
Natsteel Electronics, Ltd. 74,000 289,289
Singapore Press Holdings,
Ltd. 25,000 428,520
------------
1,850,565
SOUTH KOREA-8.4%
Dacom Corp. (a) 8,000 980,409
Hanvit Bank (GDR) (a)(c) 21,500 161,250
H & CB (a) 35,000 924,969
Kookmin Bank 27,500 428,720
Rts. 11/02/99 (a) 2,762 16,809
Korea Telecom Corp.
(ADR) (a) 32,953 1,161,593
Samsung Electronics 18,491 3,083,119
S.K. Telecom Co., Ltd. 792 914,481
(ADR) (a) 13,330 174,123
------------
7,845,473
TAIWAN-4.4%
Asustek Computer, Inc. 56,058 588,503
(GDR) 4,400 62,040
China Steel Corp. (GDR) 18,700 318,368
Compal Electronics, Inc. 100,000 335,750
Hon Hai Precision
Industry (a) 63,000 430,990
Sunplus Technology Co.,
Ltd. (a) 85,800 305,656
Synnex Technology
International
(GDR) (a)(c) 32,000 632,000
Taiwan Semiconductor
Manufacturing Co. (a) 310,600 1,380,662
------------
4,053,969
THAILAND-0.4%
Siam Common Bank CV
pfd (a) 85,000 96,328
Wts. 5/10/02 (a) 85,000 29,724
Total Access Communication
Public Co., Ltd. (a) 107,000 258,940
------------
384,992
Total Common Stocks &
Other Investments
(cost $69,632,035) 85,452,798
9
PORTFOLIO OF INVESTMENTS (CONTINUED) ALLIANCE ALL-ASIA INVESTMENT FUND
_______________________________________________________________________________
PRINCIPAL
AMOUNT
COMPANY (000) U.S. $ VALUE
- -------------------------------------------------------------------------
TIME DEPOSIT-7.6%
UNITED STATES
Republic of London
5.19%, 11/01/99
(cost $7,100,000) $7,100 $ 7,100,000
TOTAL INVESTMENTS-99.6%
(cost $76,732,035) 92,552,798
Other assets less
liabilities-0.4% 400,859
NET ASSETS-100% $92,953,657
(a) Non-income producing security.
(b) Restricted and illiquid security, valued at fair value. (See notes A and G).
(c) Securities are exempt from registration under Rule 144A of the Securities
Act of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At October 31, 1999,
these securities amounted to $793,250 or 0.85% of net assets.
Glossary of Terms:
ADR - American Depositary Receipt
GDR - Global Depositary Receipt
See notes to financial statements.
10
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1999 ALLIANCE ALL-ASIA INVESTMENT FUND
_______________________________________________________________________________
ASSETS
Investments in securities, at value (cost $76,732,035) $92,552,798
Cash 42,910
Foreign cash, at value (cost $1,535,017) 1,531,037
Receivable for capital stock sold 2,662,777
Receivable for investment securities sold 340,184
Dividends and interest receivable 168,059
Total assets 97,297,765
LIABILITIES
Payable for investment securities purchased 2,911,155
Payable for capital stock redeemed 1,120,215
Advisory fee payable 91,399
Distribution fee payable 47,353
Accrued expenses 173,986
Total liabilities 4,344,108
NET ASSETS $92,953,657
COMPOSITION OF NET ASSETS
Capital stock, at par $ 9,050
Additional paid-in capital 84,100,206
Accumulated net investment loss (333,295)
Accumulated net realized loss on investments and foreign
currency transactions (6,639,398)
Net unrealized appreciation of investments and foreign
currency denominated and liabilities 15,817,094
$92,953,657
CALCULATION OF MAXIMUM OFFERING PRICE
CLASS A SHARES
Net asset value and redemption price per share
($40,039,964/3,829,396 shares of capital stock
issued and outstanding) $10.46
Sales charge--4.25% of public offering price .46
Maximum offering price $10.92
CLASS B SHARES
Net asset value and offering price per share
($38,107,903/3,775,739 shares of capital stock
issued and outstanding) $10.09
CLASS C SHARES
Net asset value and offering price per share
($10,060,158/994,498 shares of capital stock
issued and outstanding) $10.12
ADVISOR CLASS SHARES
Net asset value, redemption and offering price
per share ($4,745,632/450,305 shares of
capital stock issued and outstanding) $10.54
See notes to financial statements.
11
STATEMENT OF OPERATIONS
YEAR ENDED OCTOBER 31, 1999 ALLIANCE ALL-ASIA INVESTMENT FUND
_______________________________________________________________________________
INVESTMENT INCOME
Dividends (net of foreign taxes
withheld of $36,197) $ 314,100
Interest 142,036 $ 456,136
EXPENSES
Advisory fee 387,722
Distribution fee - Class A 43,514
Distribution fee - Class B 174,817
Distribution fee - Class C 42,171
Custodian 212,022
Transfer agency 135,941
Audit and legal 86,763
Registration 82,889
Administrative 58,083
Amortization of organization expenses 42,790
Directors' fees 39,000
Printing 32,335
Taxes 512
Miscellaneous 24,114
Total expenses 1,362,673
Less: expenses waived and reimbursed by
the Adviser (see Note B) (194,112)
Less: expenses offset arrangement
(see Note B) (7,672)
Net expenses 1,160,889
Net investment loss (704,753)
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain on investment
transactions 5,816,844
Net realized loss on foreign currency
transactions (460,506)
Net change in unrealized
appreciation/depreciation of:
Investments 17,026,536
Foreign currency denominated assets
and liabilities 379,599
Net gain on investments and foreign
currency transactions 22,762,473
NET INCREASE IN NET ASSETS FROM OPERATIONS $22,057,720
See notes to financial statements.
12
STATEMENT OF CHANGES IN NET ASSETS ALLIANCE ALL-ASIA INVESTMENT FUND
_______________________________________________________________________________
YEAR ENDED YEAR ENDED
OCTOBER 31, OCTOBER 31,
1999 1998
------------ ------------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment loss $ (704,753) $ (347,926)
Net realized gain (loss) on investments and
foreign currency transactions 5,356,338 (7,043,756)
Net change in unrealized appreciation/
depreciation of investments and foreign
currency denominated assets and liabilities 17,406,135 3,310,053
Net increase (decrease) in net assets from
operations 22,057,720 (4,081,629)
CAPITAL STOCK TRANSACTIONS
Net increase (decrease) 54,544,522 (119,649)
Total increase (decrease) 76,602,242 (4,201,278)
NET ASSETS
Beginning of year 16,351,415 20,552,693
End of year $92,953,657 $16,351,415
See notes to financial statements.
13
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 1999 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 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) 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 were
amortized on a straight-line basis through October 1999.
3. CURRENCY TRANSLATION
Assets and liabilities denominated in foreign currencies and commitments under
forward exchange currency contracts are translated into U.S. dollars at the
mean of the quoted bid and asked price of such currencies against the U.S.
dollar. Purchases and sales of portfolio securities are translated at the rates
of exchange prevailing when such securities were acquired or sold. Income and
expenses are translated at rates of exchange prevailing when accrued.
Net realized gain 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.
14
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. During the current fiscal year, permanent differences,
primarily due to foreign currency losses and net investment loss resulted in a
net increase in accumulated net realized loss on investments and foreign
currency transactions and accumulated net investment loss and a corresponding
decrease in additional paid-in capital. This reclassification had no effect on
net assets.
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 year ended October 31, 1999, such waivers and
reimbursement amounted to $136,029.
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 year ended
October 31, 1999, the Adviser agreed to waive its fees. Such waiver amounted to
$58,083.
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 $108,910 for the year ended October 31, 1999.
For the year ended October 31, 1999, the Fund's expenses were reduced by $7,672
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 $22,523 from the sales of
Class A shares, $32,103 and $8,688 in contingent deferred sales charges imposed
upon redemptions by shareholders of Class B and Class C shares, respectively,
for the year ended October 31, 1999.
Brokerage commissions paid on investment transactions for the year ended
October 31, 1999, amounted to
15
NOTES TO FINANCIAL STATEMENTS (CONTINUED) ALLIANCE ALL-ASIA INVESTMENT FUND
_______________________________________________________________________________
$210,819, 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 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 $2,669,556 and
$407,423 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 $90,437,824 and $44,099,485, respectively,
for the year ended October 31, 1999. There were no purchases or sales of U.S.
government or government agency obligations for the year ended October 31, 1999.
At October 31, 1999, the cost of investments for federal income tax purposes
was $77,066,242. Accordingly, gross unrealized appreciation of investments was
$17,717,514 and gross unrealized depreciation of investments was $2,230,958
resulting in net unrealized appreciation of $15,486,556 (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 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 October 31, 1999.
16
ALLIANCE ALL-ASIA INVESTMENT FUND
_______________________________________________________________________________
NOTE E: CAPITAL STOCK
There are 12,000,000,000 shares of $0.001 par value capital stock authorized,
divided into four classes, designated Class A, Class B, Class C and Advisor
Class. Each class consists of 3,000,000,000 authorized shares.
Transactions in capital stock were as follows:
SHARES AMOUNT
--------------------------- ------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
1999 1998 1999 1998
------------- ------------ -------------- --------------
CLASS A
Shares sold 6,433,290 2,992,159 $ 57,791,538 $ 18,903,363
Shares converted
from Class B 19,749 11,757 156,304 78,666
Shares redeemed (3,267,924) (3,144,145) (30,029,950) (20,297,907)
Net increase
(decrease) 3,185,115 (140,229) $ 27,917,892 $ (1,315,878)
CLASS B
Shares sold 4,318,194 1,784,537 $ 35,971,005 $ 11,105,833
Shares converted
to Class A (20,362) (12,033) (156,304) (78,666)
Shares redeemed (2,070,861) (1,770,993) (16,329,930) (11,089,438)
Net increase
(decrease) 2,226,971 1,511 $ 19,484,771 $ (62,271)
CLASS C
Shares sold 1,716,656 419,389 $ 14,621,115 $ 2,891,821
Shares redeemed (1,022,208) (370,637) (8,699,216) (2,560,420)
Net increase 694,448 48,752 $ 5,921,899 $ 331,401
ADVISOR CLASS
Shares sold 702,565 385,020 $ 5,903,713 $ 2,330,830
Shares redeemed (593,179) (221,111) (4,683,753) (1,403,731)
Net increase 109,386 163,909 $ 1,219,960 $ 927,099
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.
17
NOTES TO FINANCIAL STATEMENTS (CONTINUED) ALLIANCE ALL-ASIA INVESTMENT FUND
_______________________________________________________________________________
NOTE G: ILLIQUID SECURITY
DATE ACQUIREDCOST
------- ------------
Hughes Software Systems 9/29/99 $219,633
The security shown above is illiquid and has been valued at fair value in
accordance with the procedures described in Note A. The value of this security
at October 31, 1999 was $220,594, representing .24% of net assets.
NOTE H: 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. The Fund did not utilize
the Facility during the year ended October 31, 1999.
18
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,
1994 (A)
YEAR ENDED OCTOBER 31, TO
-------------------------------------------------- OCTOBER 31,
1999 1998 1997 1996 1995
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 5.86 $ 7.54 $11.04 $10.45 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment loss (b)(c) (.10) (.10) (.21) (.21) (.19)
Net realized and unrealized gain (loss)
on investments and foreign currency
transactions 4.70 (1.58) (2.95) .88 .64
Net increase (decrease) in net asset
value from operations 4.60 (1.68) (3.16) .67 .45
LESS: DISTRIBUTIONS
Distributions from net realized gains
on investments and foreign currency
transactions -0- -0- (.34) (.08) -0-
Net asset value, end of period $10.46 $ 5.86 $ 7.54 $11.04 $10.45
TOTAL RETURN
Total investment return based on net
asset value (d) 78.50% (22.28)% (29.61)% 6.43% 4.50%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(000's omitted) $40,040 $3,778 $5,916 $12,284 $2,870
Ratio to average net assets of:
Expenses, net of waivers/reimbursements 2.45%(e) 3.74%(e) 3.45% 3.37% 4.42%(f)
Expenses, before waivers/reimbursements 2.93% 4.63% 3.57% 3.61% 10.57%(f)
Net investment loss, net of
waivers/reimbursements (1.20)% (1.50)% (1.97)% (1.75)% (1.87)%(f)
Portfolio turnover rate 119% 93% 70% 66% 90%
</TABLE>
See footnote summary on page 22.
19
FINANCIAL HIGHLIGHTS (CONTINUED) ALLIANCE ALL-ASIA INVESTMENT FUND
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
CLASS B
-----------------------------------------------------------------
NOVEMBER 28,
1994 (A)
YEAR ENDED OCTOBER 31, TO
-------------------------------------------------- OCTOBER 31,
1999 1998 1997 1996 1995
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 5.71 $ 7.39 $10.90 $10.41 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment loss (b)(c) (.18) (.14) (.28) (.28) (.25)
Net realized and unrealized gain (loss)
on investments and foreign currency
transactions 4.56 (1.54) (2.89) .85 .66
Net increase (decrease) in net asset
value from operations 4.38 (1.68) (3.17) .57 .41
LESS: DISTRIBUTIONS
Distributions from net realized gains on
investments and foreign currency
transactions -0- -0- (.34) (.08) -0-
Net asset value, end of period $10.09 $ 5.71 $ 7.39 $10.90 $10.41
TOTAL RETURN
Total investment return based on net
asset value (d) 76.71% (22.73)% (30.09)% 5.49% 4.10%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $38,108 $8,844 $11,439 $23,784 $5,170
Ratio to average net assets of:
Expenses, net of waivers/reimbursements 3.48%(e) 4.49%(e) 4.15% 4.07% 5.20%(f)
Expenses, before waivers/reimbursements 3.96% 5.39% 4.27% 4.33% 11.32%(f)
Net investment loss, net of
waivers/reimbursements (2.31)% (2.22)% (2.67)% (2.44)% (2.64)%(f)
Portfolio turnover rate 119% 93% 70% 66% 90%
</TABLE>
See footnote summary on page 22.
20
ALLIANCE ALL-ASIA INVESTMENT FUND
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
CLASS C
-----------------------------------------------------------------
NOVEMBER 28,
1994 (A)
YEAR ENDED OCTOBER 31, TO
-------------------------------------------------- OCTOBER 31,
1999 1998 1997 1996 1995
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 5.72 $ 7.40 $10.91 $10.41 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment loss (b)(c) (.18) (.14) (.27) (.28) (.35)
Net realized and unrealized gain (loss)
on investments and foreign currency
transactions 4.58 (1.54) (2.90) .86 .76
Net increase (decrease) in net asset
value from operations 4.40 (1.68) (3.17) .58 .41
LESS: DISTRIBUTIONS
Distributions from net realized gains on
investments and foreign currency
transactions -0- -0- (.34) (.08) -0-
Net asset value, end of period $10.12 $ 5.72 $ 7.40 $10.91 $10.41
TOTAL RETURN
Total investment return based on net
asset value (d) 76.92% (22.70)% (30.06)% 5.59% 4.10%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $10,060 $1,717 $1,859 $4,228 $597
Ratio to average net assets of:
Expenses, net of waivers/reimbursements 3.41%(e) 4.48%(e) 4.15% 4.07% 5.84%(f)
Expenses, before waivers/reimbursements 3.89% 5.42% 4.27% 4.30% 11.38%(f)
Net investment loss, net of
waivers/reimbursements (2.21)% (2.20)% (2.66)% (2.42)% (3.41)%(f)
Portfolio turnover rate 119% 93% 70% 66% 90%
</TABLE>
See footnote summary on page 22.
21
FINANCIAL HIGHLIGHTS (CONTINUED) ALLIANCE ALL-ASIA INVESTMENT FUND
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
ADVISOR CLASS
----------------------------------------------------
OCTOBER 2,
1996 (G)
YEAR ENDED OCTOBER 31, TO
------------------------------------- OCTOBER 31,
1999 1998 1997 1996
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 5.90 $ 7.56 $11.04 $11.65
INCOME FROM INVESTMENT OPERATIONS
Net investment loss (b)(c) (.10) (.08) (.15) -0-
Net realized and unrealized gain (loss)
on investments and foreign currency
transactions 4.74 (1.58) (2.99) (.61)
Net increase (decrease) in net asset
value from operations 4.64 (1.66) (3.14) (.61)
LESS: DISTRIBUTIONS
Distributions from net realized gains
on investments and foreign currency
transactions -0- -0- (.34) -0-
Net asset value, end of period $10.54 $ 5.90 $ 7.56 $11.04
TOTAL RETURN
Total investment return based on net
asset value (d) 78.64% (21.96)% (29.42)% (5.24)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $4,746 $2,012 $1,338 $27
Ratio to average net assets of:
Expenses, net of waivers/reimbursements 2.45%(e) 3.46%(e) 3.21% 4.97%(f)
Expenses, before waivers/reimbursements 2.93% 4.39% 3.43% 5.54%(f)
Net investment loss, net of
waivers/reimbursements (1.33)% 1.22% (1.51)% 1.63%(f)
Portfolio turnover rate 119% 93% 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) Ratios reflect expenses grossed up for expense offset arrangement with the
Transfer Agent. For the year ended October 31, 1999 and the year ended October
31, 1998, the ratios of expenses to average net assets were 2.43% and 3.70% for
Class A, 3.46% and 4.44% for Class B, 3.39% and 4.44% for Class C and 2.43% and
3.41% for Advisor Class shares, respectively.
(f) Annualized.
(g) Commencement of distribution.
22
REPORT OF ERNST & YOUNG LLP
INDEPENDENT AUDITORS ALLIANCE ALL-ASIA INVESTMENT FUND
_______________________________________________________________________________
TO THE SHAREHOLDERS AND BOARD OF DIRECTORS ALLIANCE ALL-ASIA INVESTMENT FUND,
INC.
We have audited the accompanying statement of assets and liabilities of
Alliance All-Asia Investment Fund, Inc. (the "Fund"), including the portfolio
of investments, as of October 31, 1999, and the related statement of operations
for the year then ended, the statement of changes in net assets for each of the
two years in the period then ended, and the financial highlights for each of
the periods indicated therein. These financial statements and financial
highlights are the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights. Our procedures included confirmation of
securities owned as of October 31, 1999, by correspondence with the custodian
and brokers. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Alliance All-Asia Investment Fund, Inc. at October 31, 1999, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended, and the financial highlights for each
of the indicated periods, in conformity with generally accepted accounting
principles.
New York, New York
December 13, 1999
23
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
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, 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.
24
THE ALLIANCE FAMILY OF MUTUAL FUNDS
_______________________________________________________________________________
FIXED INCOME
Alliance Bond Fund
U.S. Government Portfolio
Corporate Bond Portfolio
Quality Bond Portfolio
Alliance Global Dollar Government Fund
Alliance Global Strategic Income Trust
Alliance High Yield Fund
Alliance Limited Maturity Government Fund
Alliance Mortgage Securities Income Fund
Alliance Multi-Market Strategy Trust
Alliance North American Government Income Trust
Alliance Short-Term U.S. Government Fund
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
Select Investors Series - Premier Portfolio
GROWTH & INCOME
Alliance Balanced Shares
Alliance Conservative Investors Fund
Alliance Growth & Income Fund
Alliance Growth Investors Fund
Alliance Real Estate Investment Fund
Alliance Utility Income Fund
AGGRESSIVE GROWTH
Alliance Global Small Cap Fund
Alliance Health Care 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
INSTITUTIONAL
Premier Growth
Quasar
Real Estate Investment
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
Alliance Capital Reserves
Alliance Government Reserves
Alliance Institutional Reserves
Prime Portfolio
Government Portfolio
Tax-Free Portfolio
Treasury Portfolio
Trust Portfolio
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
General Municipal Portfolio
Government Portfolio
25
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.
AAFAR1099
