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INTERNATIONAL REGIONAL
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ALLIANCE ALL-ASIA
INVESTMENT FUND
Annual Report
October 31, 2000
[GRAPHIC OMITTED]
ALLIANCE CAPITAL [LOGO](R)
The Investment Professional's Choice
<PAGE>
Investment Products Offered
-------------------------
o Are Not FDIC Insured
o May Lose Value
o Are Not Bank Guaranteed
-------------------------
This shareholder report must be preceded or accompanied by the Fund's prospectus
for individuals who are not current shareholders of the Fund.
<PAGE>
----------------------
LETTER TO SHAREHOLDERS
----------------------
LETTER TO SHAREHOLDERS
December 12, 2000
Dear Shareholder:
This report provides an update of the performance and investment activity for
Alliance All-Asia Investment Fund (the "Fund") for the annual reporting period
ended October 31, 2000. The Fund is now co-managed by Hiroshi Motoki and Manish
Singhai. Manish Singhai is Vice President and an emerging markets equity
analyst.
Investment Objective and Policies
This open-end fund seeks long-term capital appreciation. The Fund invests
primarily 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 October 31, 2000. For comparison, the table also provides
performance data for the Fund's benchmark, as represented by the Morgan Stanley
Capital International (MSCI) All Country (AC) Asia Pacific Index, as well as the
Lipper Pacific Region Funds Average.
During the reporting 12-month period, the Fund's Class A shares posted a total
return of -7.17%, outperforming the MSCI AC Asia Pacific Index's return of
-12.81% and its peer group of funds, as represented by the Lipper Pacific Region
Funds Average, which returned -11.67%. For the six-month reporting period, the
Fund's Class A shares posted a return of -26.55%, underperforming both the
benchmark and the Lipper Average.
Looking at the Fund's country allocation during the 12-month period ended
October 31, 2000, the Fund was underweighted in Australia by 4.2%, Hong Kong by
4.7%, and Japan by 19.4%--countries that all outperformed their benchmarks
during this period. However, the Fund's overweighted position in India by 11.2%,
accompanied by good stock selection in India, Hong Kong, and Korea, more than
cancelled out the negative contribution of the Fund's underweighted position in
countries that outperformed their benchmark. Other countries were generally in
line with their benchmarks. Being underweighted in Australia, Hong Kong, and
Japan was the major reason the Fund underperformed its benchmark during the
six-month period under review.
INVESTMENT RESULTS*
Periods Ended October 31, 2000
------------------------------
Total Returns
------------------------------
6 Months 12 Months
--------------------------------------------------------------------------------
Alliance All-Asia
Investment Fund
Class A -26.55% -7.17%
--------------------------------------------------------------------------------
Class B -26.83% -7.83%
--------------------------------------------------------------------------------
Class C -26.84% -7.90%
--------------------------------------------------------------------------------
MSCI AC Asia
Pacific Index -16.74% -12.81%
--------------------------------------------------------------------------------
Lipper Pacific
Region Funds
Average -21.22% -11.67%
--------------------------------------------------------------------------------
* The Fund's investment results represent total returns for the periods
shown and are based on the net asset value of each class of shares as of
October 31, 2000. All fees and expenses related to the
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ALLIANCE ALL-ASIA INVESTMENT FUND o 1
<PAGE>
----------------------
LETTER TO SHAREHOLDERS
----------------------
--------------------------------------------------------------------------------
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 Advisor Class shares will vary due to different expenses
associated with that class. Returns for the Fund include the reinvestment
of any distributions paid during the period. Past performance is no
guarantee of future results.
The unmanaged Morgan Stanley Capital International (MSCI) All Country (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, the Philippines, Singapore, Sri
Lanka, Taiwan and Thailand. The unmanaged 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 61 funds for the
six-month period and 60 funds for the 12-month period ended October 31,
2000. The indices reflect no fees or expenses. An investor cannot invest
directly in an index or average, and its results are not indicative 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 5-8.
Economic Outlook
Asian countries have entered a strong growth stage after experiencing a sharp
slowdown in 1998. In November 2000, the Asian Development Bank revised its
forecast for the growth of the Asian gross domestic product (GDP) ex-Japan in
real terms upward to 7.1% for 2000 and 6.4% for 2001.
In December, the World Bank also revised its real-term GDP growth for Japan for
the year 2000 up to 2.0% and for the year 2001 to 2.1%. We believe that the high
price of crude oil will have a limited negative impact on the Japanese economy.
This Japanese recovery, combined with the strong Japanese yen, further supports
the recovery of the Asian economy.
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2 o ALLIANCE ALL-ASIA INVESTMENT FUND
<PAGE>
----------------------
LETTER TO SHAREHOLDERS
----------------------
Even though worldwide demand for technology is somewhat weaker than expected, we
believe that Asian technology stocks offer outstanding growth potential. Asian
technology companies can benefit from strengthening Asian economies, higher
adoption and application of information technology across the board in Asia, and
the increased willingness of global technology companies to outsource their
hardware and software requirements from Asian companies.
Portfolio Strategy and Outlook
Regarding investment decisions, we take full advantage of Alliance's global
research team. Our in-house Asian research teams are located 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 October 31, 2000, we are nearly fully invested in
over 70 companies located in 9 countries within the region.
Regarding stock selection, we continue to seek those companies with sound
fundamentals, strong management, and clear shareholder orientation through our
research team on the ground. At the end of the period, the Fund's 10 largest
holdings accounted for 33% of total net assets.
We have an optimistic view of the Japanese market going forward. There was a
substantial upward revision of GDP forecasts in the latest outlook. We expect
that corporate earnings, which have constantly shown an improvement, will
maintain their growth.
Our overweight position in emerging Asian markets, particularly those of India,
China, and Korea, is derived largely from a selection of stocks in the
technology and telecommunications services sectors. Our predilection is towards
companies that are either leveraged to the strong domestic demand growth or
those that have highly competitive cost bases and product/service offerings in a
global context. We believe that the cost competitiveness of the latter companies
will enable them to maintain margins and revenue growth by market share
expansion, somewhat mitigating the risk of a global slowdown in technology
spending.
However, taking the instability of the U.S. market into consideration, we will
stay cautious about not only the Japanese market, but around the Asian region as
well.
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ALLIANCE ALL-ASIA INVESTMENT FUND o 3
<PAGE>
----------------------
LETTER TO SHAREHOLDERS
----------------------
[PHOTO OMITTED] John D.
Carifa
[PHOTO OMITTED] Hiroshi
Motoki
[PHOTO OMITTED] Manish
Singhai
Portfolio Managers, Hiroshi Motoki and Manish Singhai, have over 22 years of
combined investment experience. Mr. Motoki is also Alliance's Director of Asian
Equities.
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/ Manish Singhai
Manish Singhai
Vice President
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4 o ALLIANCE ALL-ASIA INVESTMENT FUND
<PAGE>
------------------
PERFORMANCE UPDATE
------------------
PERFORMANCE UPDATE
ALLIANCE ALL-ASIA INVESTMENT FUND
GROWTH OF A $10,000 INVESTMENT
11/30/94* TO 10/31/00
[THE FOLLOWING WAS REPRESENTED BY A GRAPH IN THE PRINTED MATERIAL.]
Alliance All-Asia Investment Fund Class A: $9,658
Lipper Pacific Region Funds Average: $9,413
MSCI AC Asia Pacific Index: $8,637
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 10/31/00) 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, Class
C and Advisor Class 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 unmanaged Morgan Stanley Capital International (MSCI) All Country (AC) Asia
Pacific Index is a total return, capitalization-weighted index that measures the
performance of stock markets in 15 Pacific region countries.
The unmanaged Lipper Pacific Region Funds Average reflects performance of 33
funds (based on the number of funds in the average from 11/30/94 to 10/31/00).
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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ALLIANCE ALL-ASIA INVESTMENT FUND o 5
<PAGE>
------------------
PERFORMANCE UPDATE
------------------
PERFORMANCE UPDATE
ALLIANCE ALL-ASIA INVESTMENT FUND
HISTORY OF RETURNS
YEARLY PERIODS ENDED 10/31
[THE FOLLOWING WAS REPRESENTED BY A BAR GRAPH IN THE PRINTED MATERIAL.]
Alliance All-Asia Investment Fund--Yearly Periods Ended 10/31
--------------------------------------------------------------------------------
Alliance All-Asia MSCI AC
Investment Fund Asia Pacific Index
--------------------------------------------------------------------------------
10/31/95* 4.50% -6.77%
10/31/96 6.43% 2.25%
10/31/97 -29.61% -20.17%
10/31/98 -22.28% -15.60%
10/31/99 78.50% 54.22%
10/31/00 -7.17% -12.81%
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 Fund's
net asset value (NAV). Returns for Class B, Class C and Advisor Class shares
will vary due to different expenses associated with these classes. 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 the period.
The unmanaged Morgan Stanley Capital International (MSCI) All Country (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, the Philippines, Singapore, Sri Lanka, Taiwan and Thailand.
An investor cannot invest directly in an index, and its results are not
indicative of the performance for any specific investment, including Alliance
All-Asia Investment Fund.
* The Fund's return for the period ended 10/31/95 is from the Fund's
inception date of 11/28/94 through 10/31/95. The benchmark's return for
the period ended 10/31/95 is from 11/30/94 through 10/31/95.
** Excludes shares which are not readily purchased by non-local investors.
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6 o ALLIANCE ALL-ASIA INVESTMENT FUND
<PAGE>
-----------------
PORTFOLIO SUMMARY
-----------------
PORTFOLIO SUMMARY
October 31, 2000
INCEPTION DATE PORTFOLIO STATISTICS
Class A Shares Net Assets ($mil): $72.8
11/28/94 Median Market Capitalization ($mil): $14,669
Class B Shares
11/28/94
Class C Shares
11/28/94
SECTOR BREAKDOWN
o 31.2% Technology
o 24.6% Consumer Services
o 9.2% Finance
o 8.5% Basic Industries
o 7.5% Capital Goods [PIE CHART OMITTED]
o 6.1% Consumer Manufacturing
o 5.5% Health Care
o 3.3% Multi-Industry
o 2.5% Consumer Staples
o 1.6% Utilities
COUNTRY BREAKDOWN
o 51.1% Japan
o 16.2% Hong Kong
o 10.1% India
o 9.6% South Korea [PIE CHART OMITTED]
o 6.3% Taiwan
o 3.3% Singapore
o 2.1% Australia
o 0.9% Thailand
o 0.4% Philippines
All data as of October 31, 2000. The Fund's sector and country breakdowns are
expressed as a percentage of total investments and may vary over time.
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ALLIANCE ALL-ASIA INVESTMENT FUND o 7
<PAGE>
------------------
INVESTMENT RESULTS
------------------
INVESTMENT RESULTS
AVERAGE ANNUAL TOTAL RETURNS AS OF OCTOBER 31, 2000
Class A Shares
--------------------------------------------------------------------------------
Without Sales Charge With Sales Charge
1 Year -7.17% -11.08%
5 Years -0.71% -1.57%
Since Inception* 0.14% -0.59%
Class B Shares
--------------------------------------------------------------------------------
Without Sales Charge With Sales Charge
1 Year -7.83% -11.52%
5 Years -1.48% -1.48%
Since Inception* -0.58% -0.58%
Class C Shares
--------------------------------------------------------------------------------
Without Sales Charge With Sales Charge
1 Year -7.90% -8.83%
5 Years -1.44% -1.44%
Since Inception* -0.54% -0.54%
SEC AVERAGE ANNUAL TOTAL RETURNS (WITH SALES CHARGE) AS OF THE MOST RECENT
QUARTER-END (SEPTEMBER 30, 2000)
Class A Class B Class C
--------------------------------------------------------------------------------
1 Year 2.02% 1.72% 4.81%
5 Years -0.27% -0.18% -0.14%
Since Inception* 0.93% 0.95% 1.00%
The Fund's investment results represent average annual total returns. The
returns reflect reinvestment of dividends and/or capital gains distributions in
additional shares without and with 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 returns
for Advisor Class shares will differ due to different expenses associated with
that class.
The Fund's investment results represent average annual total returns. The
returns reflect reinvestment of dividends and/or capital gains distributions in
additional shares without and with 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 returns
for Advisor Class shares will differ due to different expenses associated with
that class.
Substantially all of the Fund's assets will be invested in foreign securities
which may magnify these fluctuations due to changes in foreign exchange rates
and the possibility of substantial volatility due to political and economic
uncertainties in foreign countries. The Fund may invest all of its assets within
a single region, which may present greater risk than investment in a more
diversified fund.
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: 11/28/94 for all share classes.
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8 o ALLIANCE ALL-ASIA INVESTMENT FUND
<PAGE>
--------------------
TEN LARGEST HOLDINGS
--------------------
TEN LARGEST HOLDINGS
October 31, 2000
Percent of
Company U.S. $ Value Net Assets
--------------------------------------------------------------------------------
Infosys Technologies, Ltd.--
Develops software and provides
services for the distribution, banking,
telecommunications and manufacturing
sectors $4,310,215 5.9%
--------------------------------------------------------------------------------
China Mobile (Hong Kong), Ltd.
Cl. H--Provides cellular
telecommunication services
in the People's Republic of China 3,205,539 4.4
--------------------------------------------------------------------------------
Cathay Pacific Airways--An airline
operator, provides passenger and
cargo services covering the Far East,
the Middle East, Europe, North America,
and South Africa. The company's
services include aircraft engineering,
airline catering, and airport security 2,413,066 3.3
--------------------------------------------------------------------------------
Samsung Electronics--Manufactures
and exports a wide range of consumer
and industrial electronics equipment 2,128,543 2.9
--------------------------------------------------------------------------------
Takeda Chemical Industries, Ltd.--
Produces and sells healthcare related
products 2,108,215 2.9
--------------------------------------------------------------------------------
United Microelectronics Corp. (ADR)--
Designs, manufactures, and markets
integrated circuits ("Ics") and related
electronics products. The company's
main products are Ics for: consumer
electronics, memory, personal computer
peripherals, and communication 2,038,400 2.8
--------------------------------------------------------------------------------
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 2,023,457 2.8
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
ALLIANCE ALL-ASIA INVESTMENT FUND o 9
<PAGE>
--------------------
TEN LARGEST HOLDINGS
--------------------
Percent of
Company U.S. $ Value Net Assets
--------------------------------------------------------------------------------
SK Telecom Co., Ltd. (Common Shares
and ADR)--An affiliate of SK Group,
offering mobile telecommunications
and paging services in South Korea
The company's wireless services include
Internet access and real-time stock
market information. SK Telecom
provides Internet online services such
as news, electronic mail, online games,
shopping, chatting, and web hosting $ 2,022,523 2.8%
--------------------------------------------------------------------------------
Hoya Corp.--Manufactures electro-optics
products such as photomasks for
semiconductors, eyeglasses, contact
lenses, medical service products, and
crystal products 1,917,478 2.6
--------------------------------------------------------------------------------
Fast Retailing Co., Ltd.--The company
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 1,869,794 2.6
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$24,037,230 33.0%
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10 o ALLIANCE ALL-ASIA INVESTMENT FUND
<PAGE>
----------------------
SECTOR DIVERSIFICATION
----------------------
SECTOR DIVERSIFICATION
October 31, 2000
Percent of
U.S. $ Value Net Assets
--------------------------------------------------------------------------------
Basic Industries $ 6,048,380 8.3%
--------------------------------------------------------------------------------
Capital Goods 5,317,564 7.3
--------------------------------------------------------------------------------
Consumer Manufacturing 4,351,675 6.0
--------------------------------------------------------------------------------
Consumer Services 17,535,829 24.1
--------------------------------------------------------------------------------
Consumer Staples 1,772,090 2.4
--------------------------------------------------------------------------------
Finance 6,588,857 9.0
--------------------------------------------------------------------------------
Healthcare 3,894,992 5.3
--------------------------------------------------------------------------------
Multi-Industry 2,377,417 3.3
--------------------------------------------------------------------------------
Technology 22,181,822 30.5
--------------------------------------------------------------------------------
Utilities 1,129,408 1.6
--------------------------------------------------------------------------------
Total Investments 71,198,034 97.8
--------------------------------------------------------------------------------
Cash and receivables,
net of liabilities 1,603,857 2.2
--------------------------------------------------------------------------------
Net Assets $ 72,801,891 100.0%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
ALLIANCE ALL-ASIA INVESTMENT FUND o 11
<PAGE>
------------------------
PORTFOLIO OF INVESTMENTS
------------------------
PORTFOLIO OF INVESTMENTS
October 31, 2000
Company Shares U.S. $ Value
--------------------------------------------------------------------------------
Common Stocks-97.8%
Australia-2.1%
Lend Lease Corp., Ltd. ..................... 18,980 $ 222,198
Publishing & Broadcasting, Ltd. ............ 70,000 477,867
Tabcorp Holdings, Ltd. ..................... 43,750 237,845
Telstra Corp., Ltd. ........................ 63,000 205,602
Woodside Petroleum, Ltd. ................... 50,000 365,437
---------------
1,508,949
---------------
Hong Kong-15.9%
Cathay Pacific Airways...................... 1,330,000 2,413,066
Cheung Kong Holdings, Ltd. ................. 24,000 265,419
China Mobile (Hong Kong), Ltd. Cl. H(a)..... 500,000 3,205,539
Hong Kong Electric.......................... 80,000 264,136
Hutchison Whampoa, Ltd. .................... 128,700 1,600,705
Johnson Electric Holdings, Ltd. ............ 640,000 1,288,370
Legend Holdings, Ltd. ...................... 750,000 634,697
Li & Fung, Ltd. ............................ 400,000 743,685
Sun Hung Kai Properties, Ltd. .............. 32,000 262,598
Television Broadcasting, Ltd. .............. 60,000 328,504
VTech Holdings, Ltd. ....................... 280,000 525,965
---------------
11,532,684
---------------
India-9.9%
Himachal Futuristic Communications, Ltd. ... 38,000 1,001,084
Infosys Technologies, Ltd.(a)............... 28,200 4,310,215
NIIT, Ltd.(a)............................... 26,000 874,159
Satyam Computer Services, Ltd.(a)........... 145,000 948,869
Sterlite Industries (India), Ltd. .......... 25,000 87,336
---------------
7,221,663
---------------
Japan-49.9%
Bank of Fukuoka, Ltd. ...................... 244,000 1,198,369
Banyu Pharmaceutical Co., Ltd. ............. 39,000 836,212
Canon, Inc. ................................ 51,000 2,023,457
Chiba Bank, Ltd. ........................... 118,000 489,797
DDI Corp. .................................. 84 394,081
FANUC, Ltd. ................................ 4,500 404,087
Fast Retailing Co., Ltd.(a)................. 7,600 1,869,794
Furukawa Electric Co., Ltd. ................ 51,000 1,341,183
Hoya Corp. ................................. 23,200 1,917,478
Kao Corp. .................................. 53,000 1,588,033
Kose Corp. ................................. 5,300 184,056
Mitsubishi Corp. ........................... 62,000 511,293
Mitsubishi Electric Corp. .................. 113,000 811,765
NEC Corp. .................................. 56,000 1,067,302
Nippon Broadcasting System, Inc. ........... 17,000 953,315
Nippon Sheet Glass Co., Ltd. ............... 122,000 1,855,683
Nippon Telegraph and Telephone Corp. ....... 160 1,455,812
Nippon Television Network Corp. ............ 1,260 710,038
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12 o ALLIANCE ALL-ASIA INVESTMENT FUND
<PAGE>
------------------------
PORTFOLIO OF INVESTMENTS
------------------------
Company Shares U.S. $ Value
--------------------------------------------------------------------------------
Nomura Securities Co., Ltd. ................ 37,000 $ 784,854
NTT DoCoMo, Inc. ........................... 58 1,429,605
Omron Corp. ................................ 53,000 1,306,364
Onward Kashiyama Co., Ltd. ................. 23,000 170,706
Rohm Co., Ltd. ............................. 5,100 1,285,573
Ryohin Keikaku Co., Ltd. ................... 9,800 497,476
Saizeriya Co., Ltd. ........................ 12,400 693,086
Sankyo Co., Ltd. ........................... 33,800 1,121,143
Shin-Etsu Chemical Co., Ltd. ............... 34,000 1,395,703
Sumitomo Trust & Banking Co., Ltd. ......... 152,000 1,169,927
Suruga Bank, Ltd. .......................... 28,000 384,331
Suzuki Motor Corp. ......................... 111,000 1,189,994
Takeda Chemical Industries, Ltd. ........... 32,000 2,108,215
THK Co., Ltd. .............................. 12,900 319,146
Tokyo Electron, Ltd. ....................... 4,300 336,482
Toyota Motor Corp. ......................... 18,200 727,099
Yahoo Japan Corp.(a)........................ 10 861,319
Yamanouchi Pharmaceutical Co., Ltd. ........ 21,000 950,566
---------------
36,343,344
---------------
Philippines-0.4%
Manila Electric Co. ........................ 100,000 82,111
Philippine Long Distance Telephone Co. ..... 14,000 212,121
---------------
294,232
---------------
Singapore-3.2%
Chartered Semiconductor Manufacturing,
Ltd.(a) .................................. 269,000 1,164,038
DBS Group Holdings, Ltd. ................... 52,335 616,828
Singapore Press Holdings, Ltd. ............. 25,000 357,285
St Assembly Test Services, Ltd.(a).......... 134,000 220,498
---------------
2,358,649
---------------
South Korea-9.4%
H & CB ..................................... 12,000 288,527
Kookmin Bank................................ 102,500 1,171,429
Korea Telecom Corp. (ADR)................... 32,953 1,215,142
Samsung Electronics......................... 16,991 2,128,543
SK Telecom Co., Ltd. ....................... 7,920 1,688,440
SK Telecom Co., Ltd. (ADR).................. 13,330 334,083
---------------
6,826,164
---------------
Taiwan-6.2%
ASE Test, Ltd.(a)........................... 7,900 121,956
Asustek Computer, Inc. ..................... 40,000 199,381
Compal Electronics, Inc. (GDR).............. 96,926 763,292
Hon Hai Precision Industry.................. 19,000 99,412
Synnex Technology International Corp. (GDR). 9,600 79,920
Taiwan Semiconductor Manufacturing Co.(a)... 397,568 1,206,243
United Microelectronics Corp. (ADR)(a)...... 179,200 2,038,400
---------------
4,508,604
---------------
--------------------------------------------------------------------------------
ALLIANCE ALL-ASIA INVESTMENT FUND o 13
<PAGE>
------------------------
PORTFOLIO OF INVESTMENTS
------------------------
Company Shares U.S. $ Value
--------------------------------------------------------------------------------
Thailand-0.8%
Advanced Info Service Public Co., Ltd.(a)... 73,400 $ 603,745
---------------
Total Investments-97.8%
(cost $72,137,276)....................... 71,198,034
Other assets less liabilities-2.2%.......... 1,603,857
---------------
Net Assets-100%............................. $ 72,801,891
===============
(a) Non-income producing security.
Glossary of Terms:
ADR - America Depositary Receipt
GDR - Global Depositary Receipt
See notes to financial statements.
--------------------------------------------------------------------------------
14 o ALLIANCE ALL-ASIA INVESTMENT FUND
<PAGE>
---------------------------------
STATEMENT OF ASSETS & LIABILITIES
---------------------------------
STATEMENT OF ASSETS & LIABILITIES
October 31, 2000
Assets
Investments in securities, at value (cost $72,137,276) ....... $ 71,198,034
Foreign cash, at value (cost $2,630,041) ..................... 2,613,096
Receivable for capital stock sold ............................ 2,658,419
Receivable for investment securities sold .................... 1,265,557
Dividends receivable ......................................... 89,190
------------
Total assets ................................................. 77,824,296
------------
Liabilities
Due to custodian ............................................. 1,764,197
Payable for investment securities purchased .................. 2,171,707
Payable for capital stock redeemed ........................... 408,878
Advisory fee payable ......................................... 63,417
Distribution fee payable ..................................... 46,383
Accrued expenses ............................................. 567,823
Total liabilities ............................................ 5,022,405
------------
Net Assets ................................................... $ 72,801,891
============
Composition of Net Assets
Capital stock, at par ........................................ $ 7,701
Additional paid-in capital ................................... 66,127,080
Accumulated net realized gain on investments
and foreign currency transactions ......................... 7,811,073
Net unrealized depreciation of investments and
foreign currency denominated assets and liabilities ....... (1,143,963)
------------
$ 72,801,891
============
Calculation of Maximum Offering Price
Class A Shares
Net asset value and redemption price per share
($20,436,413 / 2,104,068 shares of capital stock
issued and outstanding) ................................... $9.71
Sales Charge--4.25% of public offering price ................. $.43
------
Maximum offering price ....................................... $10.14
======
Class B Shares
Net asset value and offering price per share
($35,927,000 / 3,861,257 shares of
capital stock issued and outstanding) ..................... $9.30
=====
Class C Shares
Net asset value and offering price per share
($11,283,680 / 1,210,229 shares of
capital stock issued and outstanding) ..................... $9.32
=====
Advisor Class Shares
Net asset value, redemption and offering price
per share ($5,154,798 / 525,251 shares of
capital stock issued and outstanding) ..................... $9.81
=====
See notes to financial statements.
--------------------------------------------------------------------------------
ALLIANCE ALL-ASIA INVESTMENT FUND o 15
<PAGE>
-----------------------
STATEMENT OF OPERATIONS
-----------------------
STATEMENT OF OPERATIONS
Year Ended October 31, 2000
Investment Income
Dividends (net of foreign taxes
withheld of $56,048) .................... $ 839,259
Interest ................................... 169,057 $ 1,008,316
---------------
Expenses
Advisory Fee ............................... 1,193,248
Distribution fee - Class A ................. 119,202
Distribution fee - Class B ................. 560,467
Distribution fee - Class C ................. 166,541
Custodian .................................. 512,027
Transfer agency ............................ 340,855
Administrative ............................. 179,000
Audit and legal ............................ 116,192
Registration ............................... 61,584
Printing ................................... 53,613
Directors' fees ............................ 35,000
Miscellaneous .............................. 14,111
---------------
Total expenses before interest ............. 3,351,840
Interest expense (see Note G) .............. 42,025
---------------
Total expenses ............................. 3,393,865
Less: expense offset arrangement
(see Note B) ............................ (13,861)
---------------
Net expenses ............................... 3,380,004
---------------
Net investment loss ........................ (2,371,688)
---------------
Realized and Unrealized Gain (Loss)
on Investments and Foreign
Currency Transactions
Net realized gain on investment
transactions ............................ 16,022,047
Net realized loss on foreign currency
transactions ............................ (418,301)
Net change in unrealized
appreciation/depreciation of:
Investments ........................... (16,760,004)
Foreign currency denominated assets
and liabilities ..................... (201,053)
---------------
Net loss on investments and foreign
currency transactions ................... (1,357,311)
---------------
Net Decrease in Net Assets
from Operations ......................... $ (3,728,999)
===============
See notes to financial statements.
--------------------------------------------------------------------------------
16 o ALLIANCE ALL-ASIA INVESTMENT FUND
<PAGE>
----------------------------------
STATEMENT OF CHANGES IN NET ASSETS
----------------------------------
STATEMENT OF CHANGES
IN NET ASSETS
Year Ended Year Ended
October 31, October 31,
2000 1999
------------ ------------
Increase (Decrease) in Net Assets
from Operations
Net investment loss ........................ $ (2,371,688) $ (704,753)
Net realized gain on investments and
foreign currency transactions ........... 15,603,746 5,356,338
Net change in unrealized appreciation/
depreciation of investments and
foreign currency denominated assets
and liabilities ......................... (16,961,057) 17,406,135
------------ ------------
Net increase (decrease) in net assets
from operations ......................... (3,728,999) 22,057,720
Capital Stock Transactions
Net increase (decrease) .................... (16,422,767) 54,544,522
------------ ------------
Total increase (decrease) .................. (20,151,766) 76,602,242
Net Assets
Beginning of period ........................ 92,953,657 16,351,415
------------ ------------
End of period .............................. $ 72,801,891 $ 92,953,657
============ ============
See notes to financial statements.
--------------------------------------------------------------------------------
ALLIANCE ALL-ASIA INVESTMENT FUND o 17
<PAGE>
-----------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
NOTES TO FINANCIAL STATEMENTS
October 31, 2000
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 accounting principles generally accepted in the United States, 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.
--------------------------------------------------------------------------------
18 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
accounting principles generally accepted in the United States. 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 19
<PAGE>
-----------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
During the current fiscal year, permanent differences, primarily due to foreign
currency losses and net investment loss resulted in a net decrease in
accumulated net realized gain 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, 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 year ended October
31, 2000, the Fund paid the Adviser $179,000.
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 $211,403 for the year ended October 31, 2000.
For the year ended October 31, 2000, the Fund's expenses were reduced by $13,861
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 $76,544 from the sales of
Class A shares and $5,181, $166,362 and $33,476 in contingent deferred sales
charges imposed upon redemptions by shareholders of Class A, Class B and Class C
shares, respectively, for the year ended October 31, 2000.
Brokerage commissions paid on investment transactions for the year ended October
31, 2000, amounted to $681,588, 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.
--------------------------------------------------------------------------------
20 o ALLIANCE ALL-ASIA INVESTMENT FUND
<PAGE>
-----------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
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 $3,462,150 and
$613,106 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 $173,651,348 and $189,089,565, respectively,
for the year ended October 31, 2000. There were no purchases or sales of U.S.
government or government agency obligations for the year ended October 31, 2000.
At October 31, 2000, the cost of investments for federal income tax purposes was
$72,858,513. Accordingly, gross unrealized appreciation of investments was
$10,012,197 and gross unrealized depreciation of investments was $11,672,676
resulting in net unrealized depreciation of $1,660,479 (excluding foreign
currency transactions).
During the year ended October 31, 2000, the Fund utilized capital loss
carryforward for U.S. federal income tax purposes of $6,638,486.
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.
--------------------------------------------------------------------------------
ALLIANCE ALL-ASIA INVESTMENT FUND o 21
<PAGE>
-----------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
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,
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:
--------------------------- --------------------------------
Shares Amount
--------------------------- --------------------------------
Year Ended Year Ended Year Ended Year Ended
October 31, October 31, October 31, October 31,
2000 1999 2000 1999
---------------------------------------------------------------
Class A
Shares sold 7,030,575 6,433,290 $ 90,524,873 $ 57,791,538
--------------------------------------------------------------------------------
Shares converted
from Class B 22,421 19,749 289,538 156,304
--------------------------------------------------------------------------------
Shares redeemed (8,778,324) (3,267,924) (113,840,106) (30,029,950)
--------------------------------------------------------------------------------
Net increase
(decrease) (1,725,328) 3,185,115 $ (23,025,695) $ 27,917,892
================================================================================
Class B
Shares sold 4,431,969 4,318,194 $ 54,468,467 $ 35,971,005
--------------------------------------------------------------------------------
Shares converted
to Class A (23,317) (20,362) (289,538) (156,304)
--------------------------------------------------------------------------------
Shares redeemed (4,323,134) (2,070,861) (51,697,425) (16,329,930)
--------------------------------------------------------------------------------
Net increase 85,518 2,226,971 $ 2,481,504 $ 19,484,771
================================================================================
Class C
Shares sold 2,550,746 1,716,656 $ 31,371,227 $ 14,621,115
--------------------------------------------------------------------------------
Shares redeemed (2,335,015) (1,022,208) (28,483,698) (8,699,216)
--------------------------------------------------------------------------------
Net increase 215,731 694,448 $ 2,887,529 $ 5,921,899
================================================================================
Advisor Class
Shares sold 1,175,471 702,565 $ 14,441,947 $ 5,903,713
--------------------------------------------------------------------------------
Shares redeemed (1,100,525) (593,179) (13,208,052) (4,683,753)
--------------------------------------------------------------------------------
Net increase 74,946 109,386 $ 1,233,895 $ 1,219,960
================================================================================
--------------------------------------------------------------------------------
22 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 year ended
October 31, 2000, the Fund had borrowings outstanding for twenty-five days. The
average dollar amount of the borrowings was $10,920,000 and the weighted average
interest on such borrowings was 5.54%.
--------------------------------------------------------------------------------
ALLIANCE ALL-ASIA INVESTMENT FUND o 23
<PAGE>
--------------------
FINANCIAL HIGHLIGHTS
--------------------
FINANCIAL HIGHLIGHTS
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------
Class A
-----------------------------------------------------------------------------------
Year Ended October 31,
-----------------------------------------------------------------------------------
2000 1999 1998 1997 1996
-----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value,
beginning of period ......... $ 10.46 $ 5.86 $ 7.54 $11.04 $ 10.45
-----------------------------------------------------------------------------------
Income From Investment
Operations
Net investment loss(a) ........ (.19) (.10)(b) (.10)(b) (.21)(b) (.21)(b)
Net realized and unrealized
gain (loss) on investments
and foreign currency
transactions ................ (.56) 4.70 (1.58) (2.95) .88
-----------------------------------------------------------------------------------
Net increase (decrease) in
net asset value from
operations .................. (.75) 4.60 (1.68) (3.16) .67
-----------------------------------------------------------------------------------
Less: Distributions
Distributions from net
realized gains on
investments and foreign
currency transactions ....... -0- -0- -0- (.34) (.08)
-----------------------------------------------------------------------------------
Net asset value,
end of period ............... $ 9.71 $ 10.46 $ 5.86 $ 7.54 $ 11.04
===================================================================================
Total Return
Total investment return
based on net asset
value(c) .................... (7.17)% 78.50% (22.28)% (29.61)% 6.43%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted) ............. $20,436 $40,040 $3,778 $5,916 $12,284
Ratio to average net assets of:
Expenses, net of waivers/
reimbursements ............ 2.35%(d) 2.45%(d) 3.74%(d) 3.45% 3.37%
Expenses, before waivers/
reimbursements ............ 2.35% 2.93% 4.63% 3.57% 3.61%
Expenses, before waivers/
reimbursements
excluding interest
expense ................... 2.30%(e) 2.93% 4.63% 3.57% 3.61%
Net investment loss, net of
waivers/reimbursements .... (1.51)% (1.20)% (1.50)% (1.97)% (1.75)%
Portfolio turnover rate ....... 153% 119% 93% 70% 66%
</TABLE>
See footnote summary on page 28.
--------------------------------------------------------------------------------
24 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
-----------------------------------------------------------------------------------
Year Ended October 31,
-----------------------------------------------------------------------------------
2000 1999 1998 1997 1996
-----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value,
beginning of period ......... $ 10.09 $ 5.71 $ 7.39 $ 10.90 $ 10.41
-----------------------------------------------------------------------------------
Income From Investment
Operations
Net investment loss(a) ........ (.29) (.18)(b) (.14)(b) (.28)(b) (.28)(b)
Net realized and unrealized
gain (loss) on investments
and foreign currency
transactions ................ (.50) 4.56 (1.54) (2.89) .85
-----------------------------------------------------------------------------------
Net increase (decrease) in
net asset value from
operations .................. (.79) 4.38 (1.68) (3.17) .57
-----------------------------------------------------------------------------------
Less: Distributions
Distributions from net
realized gains on
investments and foreign
currency transactions ....... -0- -0- -0- (.34) (.08)
-----------------------------------------------------------------------------------
Net asset value,
end of period ............... $ 9.30 $ 10.09 $ 5.71 $ 7.39 $ 10.90
===================================================================================
Total Return
Total investment return
based on net asset
value(c) .................... (7.83)% 76.71% (22.73)% (30.09)% 5.49%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted) ............. $35,927 $38,108 $8,844 $11,439 $23,784
Ratio to average net assets of:
Expenses, net of waivers/
reimbursements ............ 3.18%(d) 3.48%(d) 4.49%(d) 4.15% 4.07%
Expenses, before waivers/
reimbursements ............ 3.18% 3.96% 5.39% 4.27% 4.33%
Expenses, before waivers/
reimbursements
excluding interest
expense ................... 3.13%(e) 3.96% 5.39% 4.27% 4.33%
Net investment loss, net of
waivers/reimbursements .... (2.32)% (2.31)% (2.22)% (2.67)% (2.44)%
Portfolio turnover rate ....... 153% 119% 93% 70% 66%
</TABLE>
See footnote summary on page 28.
--------------------------------------------------------------------------------
ALLIANCE ALL-ASIA INVESTMENT FUND o 25
<PAGE>
--------------------
FINANCIAL HIGHLIGHTS
--------------------
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------
Class C
-----------------------------------------------------------------------------------
Year Ended October 31,
-----------------------------------------------------------------------------------
2000 1999 1998 1997 1996
-----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value,
beginning of period ......... $ 10.12 $ 5.72 $ 7.40 $10.91 $10.41
-----------------------------------------------------------------------------------
Income From Investment
Operations
Net investment loss(a) ........ (.29) (.18)(b) (.14)(b) (.27)(b) (.28)(b)
Net realized and unrealized
gain (loss) on investments
and foreign currency
transactions ................ (.51) 4.58 (1.54) (2.90) .86
-----------------------------------------------------------------------------------
Net increase (decrease) in
net asset value from
operations .................. (.80) 4.40 (1.68) (3.17) .58
-----------------------------------------------------------------------------------
Less: Distributions
Distributions from net
realized gains on
investments and foreign
currency transactions ....... -0- -0- -0- (.34) (.08)
-----------------------------------------------------------------------------------
Net asset value,
end of period ............... $ 9.32 $ 10.12 $ 5.72 $ 7.40 $10.91
===================================================================================
Total Return
Total investment return
based on net asset
value(c) .................... (7.90)% 76.92% (22.70)% (30.06)% 5.59%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted) ............. $11,284 $10,060 $1,717 $1,859 $4,228
Ratio to average net assets of:
Expenses, net of waivers/
reimbursements ............ 3.18%(d) 3.41%(d) 4.48%(d) 4.15% 4.07%
Expenses, before waivers/
reimbursements ............ 3.18% 3.89% 5.42% 4.27% 4.30%
Expenses, before waivers/
reimbursements
excluding interest
expense ................... 3.13%(e) 3.89% 5.42% 4.27% 4.30%
Net investment loss, net of
waivers/reimbursements .... (2.31)% (2.21)% (2.20)% (2.66)% (2.42)%
Portfolio turnover rate ....... 153% 119% 93% 70% 66%
</TABLE>
See footnote summary on page 28.
--------------------------------------------------------------------------------
26 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
-----------------------------------------------------------------------------------
October 2,
1996(f) to
Year Ended October 31, October
----------------------------------------------------------------- 31,
2000 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(a) ........ (.17) (.10)(b) (.08)(b) (.15)(b) -0-(b)
Net realized and unrealized
gain (loss) on investments
and foreign currency
transactions ................ (.56) 4.74 (1.58) (2.99) (.61)
-----------------------------------------------------------------------------------
Net increase (decrease) in
net asset value from
operations .................. (.73) 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 ............... $ 9.81 $10.54 $ 5.90 $ 7.56 $11.04
===================================================================================
Total Return
Total investment return
based on net asset
value(c) .................... (6.93)% 78.64% (21.96)% (29.42)% (5.24)%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted) ............. $5,155 $4,746 $2,012 $1,338 $27
Ratio to average net assets of:
Expenses, net of waivers/
reimbursements ............ 2.19%(d) 2.45%(d) 3.46%(d) 3.21% 4.97%(g)
Expenses, before waivers/
reimbursements ............ 2.19% 2.93% 4.39% 3.43% 5.54%(g)
Expenses, before waivers/
reimbursements
excluding interest
expense ................... 2.14%(e) 2.93% 4.39% 3.43% 5.54%(g)
Net investment income
(loss), net of waivers/
reimbursements ............ (1.31)% (1.33)% 1.22% (1.51)% 1.63%(g)
Portfolio turnover rate ....... 153% 119% 93% 70% 66%
</TABLE>
See footnote summary on page 28.
--------------------------------------------------------------------------------
ALLIANCE ALL-ASIA INVESTMENT FUND o 27
<PAGE>
--------------------
FINANCIAL HIGHLIGHTS
--------------------
(a) Based on average shares outstanding.
(b) Net of expenses waived by the Adviser.
(c) 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.
(d) 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:
Year Ended October 31,
--------------------------
2000 1999 1998
--------------------------
Class A............. 2.34% 2.43% 3.70%
Class B............. 3.17% 3.46% 4.44%
Class C............. 3.16% 3.39% 4.44%
Advisor Class....... 2.18% 2.43% 3.41%
(e) Net of interest expense of .04 % on credit facility. (see Note G)
(f) Commencement of distribution.
(g) Annualized.
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28 o ALLIANCE ALL-ASIA INVESTMENT FUND
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REPORT OF ERNST & YOUNG LLP
INDEPENDENT AUDITORS
---------------------------
REPORT OF ERNST & YOUNG LLP
INDEPENDENT AUDITORS
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, 2000, 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 auditing standards generally accepted
in the United States. 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, 2000, 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, 2000, 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 accounting principles generally
accepted in the United States.
/s/ Ernst & Young LLP
New York, New York
December 13, 2000
FEDERAL INCOME TAX INFORMATION
(unaudited)
The Fund intends to make an election under Internal Revenue Code Section 853 to
pass through foreign taxes paid by the Fund to its shareholders. The total
amount of foreign taxes that may be passed through to the shareholders for the
fiscal year ended October 31, 2000, is $56,048. The foreign source income for
information purposes is $1,064,364.
Shareholders should not use the above information to prepare their tax returns.
The information necessary to complete your income tax returns will be included
with your Form 1099 DIV which will be sent to you separately in January 2001.
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ALLIANCE ALL-ASIA INVESTMENT FUND o 29
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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.
equity
Another term for stock.
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.
inflation
The overall general upward price movement of goods and services in an economy.
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.
sector
A group of securities that are similar with respect to maturity, type, rating,
industry and/or coupon. Refers to a distinct part of the economy, for example,
the technology sector.
share
A unit which represents ownership in a mutual fund or stock.
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30 o ALLIANCE ALL-ASIA INVESTMENT FUND
<PAGE>
----------------
ALLIANCE CAPITAL
----------------
ALLIANCE CAPITAL
The Investment Professional's Choice
Alliance Capital is a leading global investment management firm with over $474
billion in assets under management. In recognition of our far-reaching
investment capabilities, Alliance Capital has been selected by employee benefit
plans for 38 of the FORTUNE 100 companies and public retirement funds in 35
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 585
investment professionals in 28 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 10/2/00.
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ALLIANCE ALL-ASIA INVESTMENT FUND o 31
<PAGE>
--------------------------------
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, Alliance
Select Investor Series Technology Portfolio, and Alliance Select Investor
Series Biotechnology 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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32 o ALLIANCE ALL-ASIA INVESTMENT FUND
<PAGE>
------------------
BOARD OF DIRECTORS
------------------
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
Manish Singhai, 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 (800)-221-5672
(1) Member of the Audit Committee.
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ALLIANCE ALL-ASIA INVESTMENT FUND o 33
<PAGE>
--------------------------------
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
Biotechnology Portfolio
Premier Portfolio
Technology Portfolio
Fixed Income Funds
Corporate Bond Portfolio
Global Dollar Government Fund
Global Strategic Income Trust
High Yield 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
Closed-End Funds
All-Market Advantage Fund
The Austria Fund
ACM Government Income Fund
ACM Government Opportunity Fund
The Korean Investment Fund
ACM Managed Dollar Income Fund
ACM Managed Income Fund
ACM Municipal Securities Income Fund
The Southern Africa Fund
The Spain Fund
World Dollar Government Fund
World Dollar Government Fund II
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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34 o ALLIANCE ALL-ASIA INVESTMENT FUND
<PAGE>
NOTES
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ALLIANCE ALL-ASIA INVESTMENT FUND o 35
<PAGE>
NOTES
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36 o ALLIANCE ALL-ASIA INVESTMENT FUND
<PAGE>
Alliance All-Asia Investment Fund
1345 Avenue of the Americas
New York, NY 10105
(800) 221-5672
Alliance Capital [LOGO](R)
The Investment Professional's Choice
(R) These registered service marks used under license from the owner, Alliance
Capital Management L.P.
AAFAR1000
