Alliance Money Market Fund
- -General Municipal Portfolio
- -Prime Portfolio
- -Government Portfolio
Annual Report
November 30, 1998
<PAGE>
STATEMENT OF NET ASSETS
November 30, 1998 Alliance Money Market Fund - General Municipal Portfolio
================================================================================
Principal
Amount
(000) Security(a) Yield Value
- --------------------------------------------------------------------------------
MUNICIPAL BONDS--89.5%
ALABAMA--4.2%
Birmingham-Health Facility
(The Eye Foundation
Hospital)
Series '98A VRDN
$ 1,835 9/01/18 (b)............. 3.05% $ 1,835,000
-----------
ARIZONA--5.2%
Phoenix IDA
(V.A.W. of America, Inc.
Project) Ser '97
AMT VRDN
1,000 2/01/12 (b)............. 3.35 1,000,000
Phoenix IDA
(Ventana Palms
Apartments Project)
Ser '94 AMT VRDN
310 2/01/24 (b)............. 3.20 310,000
Tucson Airport Authority
(Learjet, Inc.)
Series '98A AMT
VRDN
1,000 9/01/28 (b) ............ 3.35 1,000,000
-----------
2,310,000
-----------
COLORADO--3.2%
Colorado Student
Obligation Authority
(Student Loan Revenue
Project) Series '89A
AMT VRDN
1,400 3/01/24 (b)............. 3.15 1,400,000
-----------
DELAWARE--2.7%
Delaware Economic
Dev Authority
(Delaware Clean Power
Project) Ser '97A
AMT VRDN
500 8/01/29 (b)............. 3.25 500,000
Delaware Economic
Dev Authority
(Delmarva Power &
Light Co. Project)
Ser '88 AMT VRDN
400 10/01/17 (b)............ 3.45 400,000
(Delmarva Power &
Light Co. Project)
Ser '87A AMT VRDN
300 10/01/17 (b)............ 3.45% 300,000
-----------
1,200,000
-----------
GEORGIA--2.2%
Summersville IDA
(Image Industries, Inc.)
Series '97 AMT VRDN
1,000 9/01/17 (b)............. 3.30 1,000,000
-----------
INDIANA--4.5%
Auburn Economic
Develpment Authority
(R.J. Tower Corp.
Project) Series '88
AMT VRDN
505 9/01/00 (b)............. 3.30 505,000
Gibson County IDR
(Toyota Motor
Manufacturing Project)
Ser '98 AMT VRDN
1,500 1/01/28 (b)............. 3.20 1,500,000
-----------
2,005,000
-----------
KANSAS--2.7%
Spring Hill IDR
(Abrasive Engineering
and Manufacturing
Project) Series '96
AMT VRDN
1,200 9/01/16 (b)............. 3.35 1,200,000
-----------
KENTUCKY--5.9%
Barbourville IDR
(Union College Revenue
Project) Ser. '98A
AMT VRDN
1,000 8/01/23 (b)............. 3.50 1,000,000
Hopkinsville IDR
(American Precision
Machinery)
AMT VRDN
600 5/01/00 (b)............. 4.35 600,000
Louisville & Jefferson
County Regional
Airport Authority
Series '97A-1
AMT VRDN
1,000 6/30/02 (b)............. 3.40 1,000,000
-----------
2,600,000
-----------
1
<PAGE>
STATEMENT OF NET ASSETS
(continued) Alliance Money Market Fund - General Municipal Portfolio
================================================================================
Principal
Amount
(000) Security(a) Yield Value
- --------------------------------------------------------------------------------
LOUISIANA--1.6%
Louisiana Public
Facilities Authority
Hospital Revenue
(Hospital Equipment
Finance Program)
Ser '85A AMT VRDN
$ 700 12/01/05 (b)............ 3.15% $ 700,000
-----------
MAINE--5.8%
Maine Finance Authority
Economic Development
Revenue Series '88A-D
AMT VRDN
120 12/01/03 (b)............ 3.65 120,000
Maine Finance Authority
Economic Development
Revenue (Barber Foods,
Inc.) Series '90B
AMT VRDN
70 12/01/06 (b)............ 3.65 70,000
Maine Finance Authority
Economic Development
Revenue (Cornwall,
McCann, Thurston)
Series '88D-F AMT
VRDN
725 6/01/04 (b)............. 3.65 725,000
Maine Finance Authority
Economic Development
Revenue (Volco Realty
Co., Inc.) Series '89L
AMT VRDN
155 6/01/05 (b)............. 3.65 155,000
Maine Finance Authority
Economic Development
Revenue (William Arthur,
Inc.) Series '97
AMT VRDN
1,500 10/01/12 (b)............ 3.40 1,500,000
-----------
2,570,000
-----------
MISSISSIPPI--3.4%
Mississippi Business
Finance Corp.
(Red Hills Project)
Series '98 AMT VRDN
1,500 10/01/28 (b)............ 3.25 1,500,000
-----------
MISSOURI--0.3%
Missouri Housing
Development
Commission SFMR
(Home Ownership Loan)
Series '98C AMT PPB
110 3/01/30 (b)............. 3.90% 110,000
-----------
NEVADA--5.9%
Clark County IDR
(Cogeneration
Association Project)
Ser '92 AMT VRDN
1,000 11/01/21 (b)............ 3.45 1,000,000
Washoe County IDR
(Sierra Pacific Power
Company Project)
Ser '90 AMT VRDN
1,600 12/01/20 (b)............ 3.45 1,600,000
-----------
2,600,000
-----------
NEW HAMPSHIRE--2.2%
New Hampshire IDA
(SCI Manufacturing Inc.)
Series '89 AMT VRDN
1,000 6/01/14 (b)............. 3.50 1,000,000
-----------
NEW JERSEY--2.2%
New Jersey Economic
Development Authority
(Newark Recycling)
Series '97 AMT PPB
1,000 12/01/22 (b)............ 3.95 1,000,000
-----------
NORTH CAROLINA--1.7%
Johnson County IDA
(Mebane Packaging
Corp.) AMT VRDN
300 6/01/03 (b)............. 3.30 300,000
Rockingham County IDR
(Philip Morris Cos.
Project) VRDN
425 4/01/99 (b)............. 3.25 425,000
-----------
725,000
-----------
NORTH DAKOTA--3.4%
North Dakota
HFA SFMR
(Home Mortgage Revenue)
Series '98C AMT
1,500 6/01/99................. 3.90 1,500,000
-----------
2
<PAGE>
Alliance Money Market Fund - General Municipal Portfolio
================================================================================
Principal
Amount
(000) Security(a) Yield Value
- --------------------------------------------------------------------------------
OHIO--2.1%
Ohio HFA
(Residential Mortgage
Revenue)
Series '98A-3
AMT PPB
$ 905 3/01/99 (b)............. 3.80% $ 905,000
-----------
OKLAHOMA--2.2%
Broken Arrow
(Paragon Films Project)
AMT VRDN
970 8/01/04 (b)............. 3.48 970,000
-----------
OREGON--2.6%
Oregon Economic
Development Authority
(Kyotaru Oregon Project)
Series '89 AMT VRDN
1,000 12/01/99 (b)............ 3.48 1,000,000
Oregon Housing
Finance Authority
SFMR Ser '98I
AMT VRDN
150 12/02/99 (b)............ 3.15 150,000
-----------
1,150,000
-----------
SOUTH CAROLINA--1.8%
Berkeley County IDR
(Amoco Chemical Co.
Proj.) Series '98
AMT VRDN
800 4/01/28 (b)............. 3.45 800,000
-----------
TENNESSEE--2.2%
Memphis-Shelby
Airport Revenue
Series '96B AMT VRDN
1,000 3/01/14 (b)............. 3.25 1,000,000
-----------
TEXAS--3.4%
Panhandle-Plains IDA
(Higher Education
Student Loan Revenue)
Ser '97Y AMT VRDN
1,500 10/01/02 (b)............ 3.15 1,500,000
-----------
VIRGINIA--3.4%
Virginia Housing
Development Authority
Subseries G-1
AMT VRDN
1,500 7/01/99 (b)............. 3.77 1,517,589
-----------
WASHINGTON--9.1%
Olympia EDA
(Spring Air Northwest
Project) Ser '98
AMT VRDN
1,300 11/01/23 (b)............ 3.65% 1,300,000
Pierce County EDA
(Truss Co. Project)
AMT VRDN
500 1/01/20 (b)............. 3.45 500,000
Washington Housing
Finance Commission
MFHR
(Summerglen Apartment
Project) AMT VRDN
1,250 11/01/25 (b)............ 3.45 1,250,000
Washington Housing
Finance Commission
MFHR
(Twin Ponds Apartment
Project) Ser '98A
AMT VRDN
1,000 2/01/28 (b)............. 3.30 1,000,000
-----------
4,050,000
-----------
WEST VIRGINIA--3.4%
Marion County FRN
(Grant Town Project)
Series '92A
AMT VRDN
1,500 10/01/17 (b)............ 3.25 1,500,000
WISCONSIN-2.2%
Manitowoc IDR
(THT Enterprises LLC)
Series '97
AMT VRDN
1,000 5/01/17 (b)............. 3.35 1,000,000
-----------
Total Municipal Bonds
(amortized cost $39,647,589) 39,647,589
-----------
COMMERCIAL PAPER--10.3%
COLORADO--3.7%
Denver Airport Revenue
Series A AMT
1,600 12/01/98................ 3.60 1,600,000
-----------
3
<PAGE>
STATEMENT OF NET ASSETS
(continued) Alliance Money Market Fund - General Municipal Portfolio
================================================================================
Principal
Amount
(000) Security(a) Yield Value
- --------------------------------------------------------------------------------
GEORGIA--2.2%
Municipal Electric
Authority of Georgia
(Project #1)
Ser '85A
$ 1,000 1/22/99................. 3.45% $ 1,000,000
-----------
ILLINOIS--2.2%
Illinois Health Facility
Authority
(Victory Health Project)
Ser '97
1,000 1/11/99................. 3.50 1,000,000
-----------
TEXAS--2.2%
Austin Utility
(Travis & Williamson
County Project)
Ser A
1,000 1/22/99................. 3.45% 1,000,000
-----------
Total Commercial Paper
(amortized cost $4,600,000) 4,600,000
-----------
TOTAL INVESTMENTS--99.8%
(amortized cost $44,247,589) 44,247,589
Other assets less liabilities-0.2% 93,109
-----------
NET ASSETS--100%
(offering and redemption
price of $1.00 per share;
44,334,782 shares
outstanding)............ $44,340,698
===========
- --------------------------------------------------------------------------------
See Footnotes and Glossary of Terms on page 7.
See notes to financial statements.
4
<PAGE>
STATEMENT OF NET ASSETS
November 30, 1998 Alliance Money Market Fund - Prime Portfolio
================================================================================
Principal
Amount
(000) Security(a) Yield Value
- --------------------------------------------------------------------------------
COMMERCIAL PAPER--62.7%
Allianz of America
Finance Co.
$ 18,500 2/23/99................. 5.12% $ 18,278,987
American General Corp.
15,000 3/15/99................. 5.14 14,777,267
American International
Group, Inc.
30,000 12/01/98................ 5.35 30,000,000
Associates Corp. of
North America
25,000 12/01/98................ 5.45 25,000,000
Bank of America
15,000 4/15/99................. 5.05 14,715,937
Duke Energy Corp.
30,000 12/14/98................ 4.83 29,947,675
First Chicago Financial
Corp.
24,610 12/15/98................ 5.15 24,560,712
Ford Motor Credit Co.
25,000 12/01/98................ 5.61 25,000,000
General Electric Corp.
30,000 12/14/98................ 5.10 29,944,750
General Motors
Acceptance Corp.
15,000 2/16/99................. 5.24 14,831,883
General Reinsurance
Corp.
23,385 12/14/98................ 4.85 23,344,044
Government Development
Bank of Puerto Rico
28,720 12/01/98................ 5.25 28,720,000
Household Finance Corp.
25,000 12/01/98................ 5.30 25,000,000
Koch Industries, Inc.
13,500 12/01/98 (c)............ 5.25 13,500,000
Prudential Funding Co.
15,000 12/01/98................ 4.86 15,000,000
15,000 2/18/99................. 5.24 14,827,517
Sara Lee Corp.
30,000 12/10/98................ 5.00 29,962,500
Sun Trust Bank
25,610 12/14/98................ 5.15 25,562,372
Xerox Credit Corp.
25,000 12/31/98................ 4.85 24,898,958
------------
Total Commercial Paper
(amortized cost $427,872,602) 427,872,602
------------
CORPORATE OBLIGATIONS--18.3%
Beta Finance Corp.
25,000 5.74%, 3/16/99 (c)...... 5.74% 25,000,000
Centauri Corp.
25,000 5.80%, 4/09/99 (c)...... 5.80 25,000,000
Merrill Lynch & Co.,
Inc. FRN
25,000 5.30%, 2/08/99 ......... 5.35 24,998,963
Sigma Finance Corp.
25,000 5.71%, 3/02/99 (c)...... 5.71 25,000,000
SMM Trust FRN
5,000 5.05%, 12/16/98 (c)..... 5.05 5,000,000
20,000 5.64%, 5/28/99 (c)...... 5.64 20,000,000
------------
Total Corporate Obligations
(amortized cost $124,998,963) 124,998,963
------------
CERTIFICATES OF DEPOSIT--15.4%
BankAmerica Corp.
20,000 5.10%, 12/21/98......... 5.15 19,999,254
Deutsche Bank
30,000 4.95%, 12/15/98......... 4.95 30,000,000
FCC National Bank
15,000 5.21%, 3/17/99.......... 5.21 15,000,000
First Union Bank of
North Carolina
15,000 5.19%, 4/01/99.......... 5.19 15,000,000
Wachovia Bank &
Trust Co.
25,000 5.17%, 3/01/99.......... 5.17 25,000,000
------------
Total Certificates of
Deposit
(amortized cost $104,999,254) 104,999,254
------------
BANKERS ACCEPTANCE--2.9%
Bank of New York Co., Inc.
20,000 4.81%,12/21/98
(amortized cost
$19,946,556)............ 4.81 19,946,556
------------
TOTAL INVESTMENTS--99.3%
(amortized cost $677,817,375) 677,817,375
Other assets less liabilities-0.7% 4,647,735
------------
NET ASSETS--100%
(offering and redemption
price of $1.00 per share;
682,468,391 shares
outstanding)............ $682,465,110
============
- --------------------------------------------------------------------------------
See Footnotes and Glossary of Terms on page 7.
See notes to financial statements.
5
<PAGE>
STATEMENT OF NET ASSETS
November 30, 1998 Alliance Money Market Fund - Government Portfolio
================================================================================
Principal
Amount
(000) Security(a) Yield Value
- --------------------------------------------------------------------------------
U.S. GOVERNMENT AND
AGENCIES--85.9%
FEDERAL NATIONAL
MORTGAGE
ASSOCIATION--34.4%
$ 1,500 12/21/98................ 4.84% $ 1,495,717
1,000 4.87%, 5/21/99 FRN...... 4.95 999,636
1,000 4.95%, 3/03/99 FRN...... 4.99 999,912
300 3/01/99................. 5.02 296,280
2,000 12/17/98................ 5.03 1,995,556
1,000 5.06%, 4/28/99 FRN...... 5.11 999,797
1,000 2/16/99................. 5.15 989,134
2,000 12/15/98................ 5.38 1,995,886
3,000 5.57%, 3/05/99.......... 5.62 2,999,614
1,725 5.84%, 3/29/99.......... 5.69 1,725,741
-----------
14,497,273
-----------
FEDERAL HOME
LOAN MORTGAGE
CORP.--27.7%
2,327 12/10/98................ 5.05 2,324,074
1,000 12/14/98................ 5.05 998,184
1,000 12/16/98................ 5.06 997,900
255 1/29/99................. 5.06 252,902
1,095 12/11/98................ 5.08 1,093,461
200 12/15/98................ 5.09 199,608
273 12/23/98................ 5.09 272,159
200 1/22/99................. 5.09 198,550
1,000 3/12/99................. 5.09 985,944
400 2/03/99................. 5.12 396,430
1,500 1/25/99................. 5.15 1,488,312
1,500 1/26/99................. 5.15 1,488,100
1,000 2/25/99................. 5.17 987,841
-----------
11,683,465
-----------
FEDERAL HOME
LOAN BANK--9.6%
200 12/11/98................ 5.10 199,719
1,000 5.00%, 10/27/99......... 5.00 1,000,000
500 5.00%, 8/12/99 FRN...... 5.51 498,239
2,375 5.56%, 3/25/99.......... 5.70 2,374,003
-----------
4,071,961
-----------
STUDENT LOAN
MARKETING
ASSOCIATION--7.1%
1,000 5.00%, 11/04/99......... 5.00% 1,000,000
1,000 5.23%, 11/24/99 FRN..... 5.26 999,706
1,000 5.31%, 11/09/99 FRN..... 5.37 999,446
-----------
2,999,152
-----------
FEDERAL FARM
CREDIT BANK--7.1%
3,000 12/09/98................ 4.87 2,996,753
-----------
Total U.S. Government
and Agencies
(amortized cost $36,248,604) 36,248,604
-----------
REPURCHASE
AGREEMENTS--14.2%
Fuji Securities Inc.
2,000 5.40%, dated 11/30/98,
due 12/01/98 in the
amount of $2,000,300
(cost $2,000,000;
collateralized by $2,030,000
Federal Home Loan
Mortgage Corp;
5.60%, 4/21/99,
value $2,046,673) (d)... 5.40 2,000,000
Morgan Stanley Dean Witter
2,000 5.42%, dated 11/30/98
due 12/01/98 in the
amount of $2,000,301
(cost $2,000,000;
collateralized by $1,973,000
Federal Home Loan
Mortgage Corp;
8.00%, 10/01/28
value $2,054,770) (d)... 5.42 2,000,000
6
<PAGE>
Alliance Money Market Fund - Government Portfolio
================================================================================
Principal
Amount
(000) Security(a) Yield Value
- --------------------------------------------------------------------------------
Prudential Securities, Inc.
$ 2,000 5.42%, dated 11/30/98
due 12/01/98 in the
amount of $2,000,301
(cost $2,000,000;
collateralized by $2,225,000
Federal National
Mortgage Assn;
6.50%, 2/01/28
value $2,056,314) (d)... 5.42% $ 2,000,000
-----------
Total Repurchase
Agreements
(amortized cost $6,000,000) 6,000,000
-----------
Value
TOTAL INVESTMENTS--100.1%
(amortized cost $42,248,604) $42,248,604
Other assets less liabilities-(0.1%) (63,100)
-----------
NET ASSETS-100%
(offering and redemption
price of $1.00 per share;
42,191,307 shares
outstanding)............ $42,185,504
===========
- --------------------------------------------------------------------------------
(a) All securities either mature or their interest rate changes in 397 days or
less.
(b) Variable Rate Demand Notes (VRDN) are instruments whose interest rates
change on a specified date (such as a coupon date or interest payment
date) or whose interest rates vary with changes in a designated base rate
(such as the prime interest rate). These instruments are payable on demand
and are secured by letters of credit or other credit support agreements
from major banks. Period Put Bonds (PPB) are payable on demand quarterly,
semi-annually or annually and their interest rates change less frequently
than rates on Variable Rate Demand Notes.
(c) Securities issued in reliance on section (4) 2 or Rule 144A of the
Securities Act of 1933. Rule 144A Securities may be resold in transactions
exempt from registration, normally to qualified institutional buyers.
These securities have been determined by the Adviser to be liquid pursuant
to procedures adopted by the Trustees. At November 30, 1998, these
securities amounted to $113,500,000 representing 14.7% of net assets on
the Prime Portfolio.
(d) Repurchase agreements which are terminable within 7 days.
Glossary of Terms:
AMT Alternative Minimum Tax
EDA Economic Development Authority
FRN Floating Rate Note
HFA Housing Finance Agency/Authority
IDA Industrial Development Agency/Authority
IDR Industrial Development Revenue
MFHR Multi-Family Housing Revenue
SFMR Single Family Mortgage Revenue
See notes to financial statements.
7
<PAGE>
STATEMENT OF OPERATIONS
Year Ended November 30, 1998 Alliance Money Market Fund
================================================================================
<TABLE>
<CAPTION>
GENERAL
MUNICIPAL PRIME GOVERNMENT
PORTFOLIO PORTFOLIO PORTFOLIO
============= ============= =============
<S> <C> <C> <C>
INVESTMENT INCOME
Interest ............................................. $ 4,953,473 $ 178,706,707 $ 7,173,511
------------- ------------- -------------
EXPENSES
Advisory fee (Note B) ................................ 662,701 15,715,615 641,017
Distribution assistance fee (Note C) ................. 596,433 14,144,057 576,915
Custodian fees ....................................... 95,218 355,001 97,566
Registration fees .................................... 78,078 979,563 30,841
Administrative fee (Note C) .......................... 66,269 1,571,562 64,101
Printing ............................................. 15,521 466,804 11,865
Organization ......................................... 14,600 14,965 14,600
Audit and legal fees ................................. 13,214 63,318 12,772
Trustees' fees ....................................... 6,324 6,322 6,319
Miscellaneous ........................................ 3,583 56,820 2,242
------------- ------------- -------------
Total expenses ....................................... 1,551,941 33,374,027 1,458,238
Less: fee waiver and expense reimbursement ........... (226,538) (1,942,793) (176,205)
------------- ------------- -------------
Net expenses ......................................... 1,325,403 31,431,234 1,282,033
------------- ------------- -------------
Net investment income ................................ 3,628,070 147,275,473 5,891,478
REALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) on investment transactions .. 5,931 (3,281) (5,803)
------------- ------------- -------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS .............................................. $ 3,634,001 $ 147,272,192 $ 5,885,675
============= ============= =============
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements.
8
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS Alliance Money Market Fund
================================================================================
<TABLE>
<CAPTION>
GENERAL
MUNICIPAL PRIME GOVERNMENT
PORTFOLIO PORTFOLIO PORTFOLIO
-------------------------- ------------------------------- --------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended
November 30, November 30, November 30, November 30, November 30, November 30,
1998 1997 1998 1997 1998 1997
----------- ------------ -------------- -------------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS
Net investment income ............. $ 3,628,070 $ 3,963,913 $147,275,473 $ 142,927,476 $ 5,891,478 $ 5,103,019
Net realized gain (loss) on
investment transactions ........ 5,931 (15) (3,281) 25,953 (5,803) 10
----------- ------------ -------------- -------------- ----------- ------------
Net increase in net assets from
operations ..................... 3,634,001 3,963,898 147,272,192 142,953,429 5,885,675 5,103,029
DIVIDENDS AND DISTRIBUTIONS
TO SHAREHOLDERS FROM:
Net investment income ............. (3,628,070) (3,963,913) (147,275,473) (142,927,476) (5,891,478) (5,103,019)
Net realized gain on investments .. (615) -0- (26,728) -0- (187) -0-
TRANSACTIONS IN SHARES OF
BENEFICIAL INTEREST (Note E)
Net increase (decrease) ........... (93,023,004) 13,871,990 (2,615,405,613) 526,103,101 (81,675,080) 23,558,311
----------- ------------ -------------- -------------- ----------- ------------
Total increase (decrease) ......... (93,017,688) 13,871,975 (2,615,435,622) 526,129,054 (81,681,070) 23,558,321
NET ASSETS
Beginning of year ................. 137,358,386 123,486,411 3,297,900,732 2,771,771,678 123,866,574 100,308,253
----------- ------------ -------------- -------------- ----------- ------------
End of year ....................... $44,340,698 $137,358,386 $682,465,110 $3,297,900,732 $42,185,504 $123,866,574
=========== ============ ============== ============== =========== ============
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements.
9
<PAGE>
NOTES TO FINANCIAL STATEMENTS
November 30, 1998 Alliance Money Market Fund
================================================================================
NOTE A: Significant Accounting Policies
Alliance Money Market Fund (the "Fund") is an open-end diversified investment
company registered under the Investment Company Act of 1940. The Fund currently
offers three Portfolios: General Municipal Portfolio, Prime Portfolio and
Government Portfolio (the "Portfolios"). Each Portfolio is considered to be a
separate entity for financial reporting and tax purposes. As a matter of
fundamental policy, each Portfolio pursues its objectives by maintaining a
portfolio of high-quality money market securities. At the time of investment,
such securities have remaining maturities of 397 days or less. 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 Portfolios.
1. Valuation of Securities
Securities in which the Portfolios invest are traded primarily in the
over-the-counter market and are valued at amortized cost, under which method a
portfolio instrument is valued at cost and any premium or discount is amortized
on a straight-line basis to maturity.
2. Organization Expenses
Organization expenses of approximately $74,000 for each of the Portfolios have
been deferred and are being amortized on a straight-line basis through December,
2000.
3. Taxes
It is the Portfolios' policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute all
of its investment company taxable income and net realized gains, if applicable,
to its shareholders. Therefore, no provisions for federal income or excise taxes
are required.
4. Dividends
The Portfolios declare dividends daily and automatically reinvest such dividends
in additional shares at net asset value. Net realized capital gains on
investments, if any, are expected to be distributed near year end. Dividends
paid from net investment income for the year ended November 30, 1998 from the
General Municipal Portfolio are exempt from federal income taxes. However,
certain shareholders may be subject to the alternative minimum tax (AMT).
5. Investment Income and Investment Transactions
Interest income is accrued daily. Investment transactions are recorded on the
date securities are purchased or sold. Realized gain (loss) from investment
transactions is recorded on the identified cost basis.
6. Repurchase Agreements
It is the Fund's policy to take possession of securities as collateral under
repurchase agreements and to determine on a daily basis that the value of such
securities are sufficient to cover the value of the repurchase agreements.
- --------------------------------------------------------------------------------
NOTE B: Advisory Fee and Transactions with an Affiliate of the Adviser
Under the Advisory Agreement, each Portfolio pays the Adviser, Alliance Capital
Management L.P., an advisory fee at the annual rate of .50 of 1% of each
Portfolio's average daily net assets. The Adviser has agreed to reimburse each
Portfolio to the extent that its aggregate expenses (excluding taxes, brokerage,
interest and, where permitted, extraordinary expenses) exceed 1% of its average
daily net assets unless such reimbursement is eliminated or modified upon
approval of the Trustees prior thereto. For the year ended November 30, 1998 for
the General Municipal Portfolio, Prime Portfolio and Government Portfolio, the
Adviser reimbursed $186,744, $1,000,900 and $137,643, respectively. The General
Municipal, Prime and Government Portfolios do not compensate Alliance Fund
Services, Inc. (a wholly-owned subsidiary of the Adviser) for providing
personnel and facilities to perform transfer agency services or for out of
pocket expenses.
10
<PAGE>
Alliance Money Market Fund
================================================================================
NOTE C: Distribution Services Agreement and Administration Agreement
Under the Distribution Services Agreement, which includes a distribution plan
adopted pursuant to Rule 12b-1 of the Investment Company Act of 1940 (the
"Plan"), the Fund pays the Adviser a distribution fee at the annual rate of up
to .45 of 1% of the average daily value of the Fund's net assets. The Plan
provides that the Adviser will use amounts payable under the Plan in their
entirety for (i) payments to broker-dealers and other financial intermediaries,
including the Portfolios' distributor, for distribution assistance and payments
to banks and other depository institutions for administrative and accounting
services and (ii) otherwise promoting the sale of shares of the Portfolios. For
the year ended November 30, 1998, the General Municipal Portfolio, Prime
Portfolio and Government Portfolio, paid fees of $596,433, $14,144,057 and
$576,915, respectively.
Pursuant to an Administration Agreement, ADP Financial Information Services,
Inc. ("ADP"), a wholly-owned subsidiary of Automatic Data Processing, Inc.,
serves as administrator of the Fund, on behalf of the Portfolios. The
Administrator performs or arranges for the performance of certain services,
mainly remote processing services through its propriety shareholder accounting
system. ADP is entitled to receive from each Portfolio a fee computed daily and
paid monthly at a maximum annual rate equal to .05% of such Portfolio's average
daily net assets. ADP may, from time to time, voluntarily waive all or a portion
of its fees payable to it under the Administration Agreement. For the year ended
November 30, 1998, the General Municipal Portfolio incurred fees of $66,269 of
which $39,794 were waived, the Prime Portfolio incurred fees of $1,571,562 of
which $941,863 were waived and the Government Portfolio incurred fees of $64,101
of which $38,562 were waived.
- --------------------------------------------------------------------------------
NOTE D: Investment Transactions
At November 30, 1998, the cost of portfolio securities for federal income tax
purposes was the same as the cost for financial reporting purposes. At November
30, 1998, the Prime Portfolio and Government Portfolio had capital loss
carryforwards of $3,281 and $5,803, respectively. Such carryforwards expire in
the year 2007.
- --------------------------------------------------------------------------------
NOTE E: Transactions in Shares of Beneficial Interest
An unlimited number of shares ($.001 par value) are authorized. At November 30,
1998, capital paid-in aggregated $44,334,782, $682,468,391 and $42,191,307 for
the General Municipal Portfolio, Prime Portfolio and Government Portfolio,
respectively. Transactions, all at $1.00 per share, were as follows:
<TABLE>
<CAPTION>
GENERAL
MUNICIPAL PRIME GOVERNMENT
PORTFOLIO PORTFOLIO PORTFOLIO
--------------------------- --------------------------------- ---------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended
November 30, November 30, November 30, November 30, November 30, November 30,
1998 1997 1998 1997 1998 1997
------------ ------------ --------------- --------------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Shares sold .................. 567,543,637 536,421,356 15,983,075,639 15,146,343,094 518,447,921 485,426,533
Shares issued on reinvestments
of dividends ............. 3,628,685 3,963,913 147,302,201 142,927,476 5,891,665 5,103,019
Shares redeemed .............. (664,195,326) (526,513,279) (18,745,783,453) (14,763,167,469) (606,014,666) (466,971,241)
------------ ------------ --------------- --------------- ------------ ------------
Net increase (decrease) ...... (93,023,004) 13,871,990 (2,615,405,613) 526,103,101 (81,675,080) 23,558,311
============ ============ =============== =============== ============ ============
</TABLE>
11
<PAGE>
FINANCIAL HIGHLIGHTS Alliance Money Market Fund
================================================================================
<TABLE>
<CAPTION>
GENERAL MUNICIPAL PORTFOLIO
---------------------------------------
December 13,
1995(a)
Year Ended November 30, to
---------------------- November 30,
1998 1997 1996
------ ------ ------
<S> <C> <C> <C>
Net asset value, beginning of period ......... $ 1.00 $ 1.00 $ 1.00
------ ------ ------
Income from Investment Operations
Net investment income (b) .................... .027 .029 .027
------ ------ ------
Less: Dividends
Dividends from net investment income ......... (.027) (.029) (.027)
------ ------ ------
Net asset value, end of period ............... $ 1.00 $ 1.00 $ 1.00
====== ====== ======
Total Return
Total investment return based on:
net asset value (c) ....................... 2.76% 2.92% 2.80%(d)
Ratios/Supplemental Data
Net assets, end of period (in millions) ...... $ 44 $ 137 $ 123
Ratio to average net assets of:
Expenses, net of waivers and reimbursements 1.00% 1.00% 1.00%(d)
Expenses, before waivers and reimbursements 1.17% 1.21% 1.39%(d)
Net investment income (b) ................. 2.74% 2.87% 2.76%(d)
</TABLE>
- --------------------------------------------------------------------------------
See footnote summary on page 14.
12
<PAGE>
Alliance Money Market Fund
================================================================================
<TABLE>
<CAPTION>
PRIME PORTFOLIO
---------------------------------------
December 29,
1995(a)
Year Ended November 30, to
---------------------- November 30,
1998 1997 1996
------ ------ ------
<S> <C> <C> <C>
Net asset value, beginning of period ......... $ 1.00 $ 1.00 $ 1.00
------ ------ ------
Income from Investment Operations
Net investment income (b) .................... .047 .046 .041
------ ------ ------
Less: Dividends
Dividends from net investment income ......... (.047) (.046) (.041)
------ ------ ------
Net asset value, end of period ............... $ 1.00 $ 1.00 $ 1.00
====== ====== ======
Total Return
Total investment return based on:
net asset value (c) ....................... 4.77% 4.75% 4.58%(d)
Ratios/Supplemental Data
Net assets, end of period (in millions) ...... $ 682 $3,298 $2,772
Ratio to average net assets of:
Expenses, net of waivers and reimbursements 1.00% 1.00% 1.00%(d)
Expenses, before waivers and reimbursements 1.06% 1.06% 1.23%(d)
Net investment income (b) ................. 4.69% 4.65% 4.50%(d)
</TABLE>
- --------------------------------------------------------------------------------
See footnote summary on page 14.
13
<PAGE>
FINANCIAL HIGHLIGHTS (continued) Alliance Money Market Fund
================================================================================
<TABLE>
<CAPTION>
GOVERNMENT PORTFOLIO
-------------------------------------
December 29,
1995(a)
Year Ended November 30, to
---------------------- November 30,
1998 1997 1996
----- ----- -----
<S> <C> <C> <C>
Net asset value, beginning of period ......... $1.00 $1.00 $1.00
----- ----- -----
Income from Investment Operations
Net investment income (b) .................... .046 .045 .041
----- ----- -----
Less: Dividends
Dividends from net investment income ......... (.046) (.045) (.041)
----- ----- -----
Net asset value, end of period ............... $1.00 $1.00 $1.00
===== ===== =====
Total Return
Total investment return based on:
net asset value (c) ....................... 4.67% 4.64% 4.52%(d)
Ratios/Supplemental Data
Net assets, end of period (in millions) ...... $ 42 $ 124 $ 100
Ratio to average net assets of:
Expenses, net of waivers and reimbursements 1.00% 1.00% 1.00%(d)
Expenses, before waivers and reimbursements 1.14% 1.25% 1.42%(d)
Net investment income (b) ................. 4.60% 4.54% 4.45%(d)
</TABLE>
- --------------------------------------------------------------------------------
(a) Commencement of operations.
(b) Net of expenses reimbursed or 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 period.
(d) Annualized.
14
<PAGE>
INDEPENDENT AUDITOR'S REPORT Alliance Money Market Fund
================================================================================
To the Board of Trustees and Shareholders
Alliance Money Market Fund
We have audited the accompanying statements of net assets of Alliance Money
Market Fund - General Municipal, Prime, and Government Portfolios as of November
30, 1998 and the related statements of operations, changes in net assets, and
financial highlights for the periods indicated in the accompanying financial
statements. These financial statements and financial highlights are the
responsibility of the Portfolios' management. Our responsibility is to express
an opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
November 30, 1998, 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 Money Market Fund - General Municipal, Prime, and Government Portfolios
as of November 30, 1998, and the results of their operations, changes in their
net assets, and their financial highlights for the periods indicated, in
conformity with generally accepted accounting principles.
/s/ McGladrey & Pullen, LLP
McGladrey & Pullen, LLP
New York, New York
December 18, 1998
15
<PAGE>
ALLIANCE MONEY MARKET FUND ---------------
1345 Avenue of the Americas, New York, NY 10105 BULK RATE
U.S. POSTAGE
ALLIANCE CAPITAL[LOGO](R) PAID
New York, NY
Permit No. 7131
---------------
Distribution of this report other than to shareholders must be preceded or
accompanied by the Fund's current prospectus, which contains further information
about the Fund.
(R) These registered service marks used under license from the owner, Alliance
Capital Management L.P.
