ALLIANCE GLOBAL SMALL CAP FUND, INC.
1345 Avenue of the Americas
New York, New York 10105
(800) 221-5672
[logo]Alliance Capital((R))
Mutual funds without the Mystery((SM))
This report is distributed solely to shareholders of the Fund
and is not to be used as sales literature.
((R))These registered service marks used under license from the owner,
Alliance Capital Management L.P.
GSCSR
ALLIANCE
GLOBAL
SMALL CAP FUND
Semi-Annual
Report
January 31, 1995
[logo]Alliance((R))
Mutual funds without the Mystery((SM))
<PAGE>
LETTER TO SHAREHOLDERS Alliance Global Small Cap Fund
March 6, 1995
Dear Shareholder:
The past year was one of the worst on record for investors in fixed income
markets and proved to be a particularly challenging period for most equity
investors. Beginning last February, strong anti-inflationary posturing by the
Federal Reserve led to higher interest rates, which put downward pressure on
bond and equity prices. While general measures of bond and equity prices
advanced this January, these gains were not enough to offset earlier price
declines. However, economic and market data now suggest that the factors
which have led to the recent rally in bond and equity markets may continue in
1995.
U.S. ECONOMIC SCENARIO
By increasing short-term interest rates, the Federal Reserve is attempting to
slow GDP growth to below 2.5% while maintaining very low levels of inflation.
Indeed, while the U.S. economy continued its impressive expansion in the
second half of 1994, initial signs of a slowdown have begun to appear.
Recently released U.S. economic data have shown smaller than expected rises
in retail sales and manufacturing output with continued weakness in the
automobile and housing sectors. However, the U.S. economy remains
fundamentally strong and despite recent signs of moderation, the economy
should continue to expand in 1995, albeit at a slower pace.
Supporting U.S. economic growth will likely be continued high levels of
consumer (excluding automobiles and housing) and business spending. Real
gains in personal income, higher corporate earnings and easier access to
credit are expected to keep aggregate U.S. consumption at high levels in the
months ahead.
INVESTMENT STRATEGY
In seeking investment opportunities for the Fund, we continue to focus on
solid fundamentals and high quality securities. Our investment strategy
continues to be to invest in small-cap growth companies that are selling at
reasonable valuations. We have been reducing the Fund's exposure to the
technology sector and to cyclical stocks as their valuations become
excessive. We are making selective purchases for the portfolio in securities
with very favorable risk/reward profiles in areas such as health care, energy
and consumer non-durables.
OVERSEAS ECONOMIES
The surge in international economic growth that occurred in the second
quarter of 1994 is expected to carry the global recovery through the first
half of 1995. Japan and Europe should experience particular strength from
demand for capital goods and electronic equipment, while pervasive demand for
industrial materials should benefit most global economies. Reduced government
spending and rising long-term interest rates, however, appear likely to slow
the rate of global growth in the second half of 1995.
In Japan, the positive effects of corporate downsizing and restructuring are
only now becoming visible in industrial earnings. If the yen versus dollar
relationship stabilizes, demand for the products of those Japanese companies
with global leadership positions can be expected to produce strong earnings.
We will add to your Fund's holdings in these companies and their suppliers as
opportunities are presented. In Europe, much of the potential rebound in
corporate earnings is already reflected in share prices. Individual issues in
the insurance and building materials sectors appear undervalued, but careful
stock selection will be key as we look for opportunities in these areas.
Developing markets are expected to face ongoing pressure in early 1995 as the
financial crisis in Mexico raises the risk premium attached to fast-growing
economies dependent on outside capital. We believe that those countries with
sound, consistent macroeconomic policies will continue to grow at high rates.
We anticipate adding to holdings in such markets once the peak in global
interest rates becomes discernible.
<PAGE>
Alliance Global Small Cap Fund
INVESTMENT RESULTS
The table below compares your Fund's investment results with the unmanaged
Russell 2000 Index, which is composed of the smallest 2000 stocks on the New
York and American stock exchanges and the NASDAQ, and with the Lipper Small
Company Funds Average, which reflects performance of 15 funds. These funds
have generally similar investment objectives to your Fund, although some
funds included in the average may have somewhat different investment
policies.
Six Months Ended
January 31, 1995
Total Ending
Return NAV
Alliance Global Small Cap Fund
Class A -2.26% $8.70
Class B -2.61% $8.37
Class C -2.73% $8.37
Russell 2000 Index +1.97%
Lipper Global Small
Company Funds
Average -3.71%
The Fund's total returns are based on net asset values as of January 31,
1995. Additional investment results for your Fund appear on page 3.
Thank you for your investment in shares of Alliance Global Small Cap Fund. We
look forward to reporting your Fund's progress to you in the coming months.
Sincerely,
[signature of John D. Carifa]
John D. Carifa
Chairman and President
[signature of Alden M. Stewart]
Alden M. Stewart
Senior Vice President
<PAGE>
INVESTMENT RESULTS Alliance Global Small Cap Fund
Average Annual Total Return as of January 31, 1995
CLASS A
Without With
Sales Charge Sales Charge
* One Year -10.94% -14.72%
* Five Years +2.17 +1.29
* Ten Years +7.17 +6.71
CLASS B
Without With
Sales Charge Sales Charge
* One Year -11.56% -14.38%
* Since Inception* +4.40 +4.40
CLASS C
* One Year -11.58%
* Since Inception* +3.63
The average annual total returns reflect investment of dividends and/or
capital gains distributions in additional shares--with and without 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); Class C shares are not subject to front-end or contingent
deferred sales charges. Past performance does not guarantee future results.
Investment return and principal value will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than their original cost.
*Inception: 9/17/90, Class B; 5/3/93, Class C.
<PAGE>
TEN LARGEST HOLDINGS
January 31, 1995 (unaudited) Alliance Global Small Cap Fund
<TABLE>
<CAPTION>
COMPANY COUNTRY U.S. $ VALUE % OF NET ASSETS
<S> <C> <C> <C>
Industrie Natuzzi S.p.A. (ADR) Italy $1,264,200 2.1%
Nine West Group, Inc. United States 1,053,938 1.8
National Health Laboratories Hldgs. United States 988,413 1.7
20th Century Industries, Inc. United States 902,700 1.5
Mowlem (John) & Co. Plc. United Kingdom 871,422 1.5
Global Marine, Inc. United States 842,250 1.4
Informix Corp. United States 832,038 1.4
Community Health Systems, Inc. United States 783,288 1.3
Mid-States Plc. United Kingdom 749,012 1.2
Heritage Media Corp. United States 726,150 1.2
$9,013,411 15.1%
</TABLE>
MAJOR PORTFOLIO CHANGES
Six Months Ended January 31, 1995 (unaudited)
<TABLE>
<CAPTION>
SHARES*
PURCHASES COUNTRY BOUGHT HOLDINGS 1/31/95
<S> <C> <C> <C>
BJ Services Co. United States 27,300 27,300
Coram Healthcare Corp. United States 29,400 29,400
Hospitality Franchise Systems United States 22,300 22,300
Informix Corp. United States 25,900 25,900
Komag, Inc. United States 18,700 18,700
Lotus Development Corp. United States 11,900 11,900
National Health Laboratories Hldgs. United States 48,500 73,900
Sun Healthcare Group, Inc. United States 20,600 20,600
TDK Corp. Japan 10,000 10,000
20th Century Industries, Inc. United States 70,800 70,800
</TABLE>
<TABLE>
<CAPTION>
SALES COUNTRY SOLD HOLDINGS 1/31/95
<S> <C> <C> <C>
Associated Communications United States 22,800 -0-
Automotive Industries Holdings, Inc. Cl A United States 30,400 -0-
Industie Natuzzi S.p.A. (ADR) Italy 17,400 39,200
LSI Logic Corp. United States 16,400 4,900
National Gypsum Co. United States 16,000 -0-
Nokia AB Corp. Finland 9,000 3,000
Pentair, Inc. United States 15,000 -0-
Plantsbrook Group Plc. United Kingdom 370,000 -0-
Quicksilver, Inc. United States 47,700 -0-
Sybase, Inc. United States 20,400 -0-
</TABLE>
*Excludes short term obligations.
<PAGE>
TEN LARGEST COUNTRY HOLDINGS
January 31, 1995 (unaudited) Alliance Global Small Cap Fund
COUNTRY VALUE PERCENT OF NET ASSETS*
United States $30,910,134 51.9%
Japan 6,094,271 10.2
United Kingdom 5,777,644 9.7
Italy 1,853,744 3.1
Germany 1,701,740 2.9
Sweden 1,425,430 2.4
France 1,000,046 1.7
Norway 945,991 1.6
Netherlands 891,729 1.5
Canada 846,148 1.4
$51,446,877 86.4%
TEN LARGEST INDUSTRY HOLDINGS
January 31, 1995 (unaudited)
<TABLE>
<CAPTION>
INDUSTRY VALUE PERCENT OF NET ASSETS*
<S> <C> <C>
Drugs, Hospital Supplies & Medical Services $ 5,920,509 9.9%
Communication Equipment 3,627,945 6.1
Oil & Gas 3,242,698 5.4
Retailing 3,167,363 5.3
Machinery 3,105,997 5.2
Insurance 2,699,057 4.6
Computer Software 2,472,412 4.2
Auto & Related 2,048,330 3.5
Semi-Conductors & Related 2,027,055 3.4
Broadcasting & Cable 1,860,241 3.1
$30,171,607 50.7%
</TABLE>
*Excludes short-term obligations
<PAGE>
PORTFOLIO OF INVESTMENTS
January 31, 1995 (unaudited) Alliance Global Small Cap Fund
Company Shares U.S. $ Value
COMMON STOCKS & OTHER
INVESTMENTS--92.4%
UNITED STATES INVESTMENTS--46.6%
CONSUMER PRODUCTS & SERVICES--23.1%
APPAREL--0.9%
Donnkenny, Inc.* 4,800 $ 77,700
Nautica Enterprise, Inc.* 8,800 249,700
Phillips Van Heusen Corp. 11,900 187,425
514,825
AUTO & RELATED--0.5%
Superior Industries International,
Inc. 13,200 321,750
BROADCASTING &
CABLE--2.8%
ADVO, Inc. 34,200 602,775
Cablevision Systems Corp.
Cl.A* 4,800 248,400
Central European Media
Enterprises, Ltd.* 10,700 113,688
Viacom, Inc. Cl. B*
warrants, expiring 6/06/97 63,500 313,531
warrants, expiring 6/06/99. 57,600 410,400
1,688,794
COSMETICS & HOUSEHOLD
PRODUCTS--0.4%
Jean Philippe Fragrances, Inc.* 31,600 242,925
DRUGS, HOSPITAL SUPPLIES & MEDICAL
SERVICES--9.2%
Centocor, Inc.*. 23,900 418,250
Community Health
Systems, Inc.* 28,100 783,288
Coram Healthcare Corp.* 29,400 628,425
Health Management* 26,900 516,144
Healthwise America, Inc.* 9,300 327,825
Medcath, Inc.* 30,700 418,288
National Health
Laboratories Hldgs. 73,900 988,413
North American
Biologicals, Inc.* 2,400 15,600
Physician Reliance Network* 21,700 $ 434,000
Sun Healthcare Group, Inc.* 20,600 548,475
Surgical Care Affiliates, Inc. 17,800 369,350
5,448,058
ENTERTAINMENT &
LEISURE TIME--2.8%
BJ Services Co. 27,300 467,513
Bally Gaming International,
Inc.* 27,400 208,925
Heritage Media Corp. Cl.A* 28,200 726,150
Playboy Enterprises,
Inc. Cl. B*. 26,100 244,688
1,647,276
PRINTING &
PUBLISHING--0.8%
American Publishing Co. Cl.A* 11,000 130,625
IVI Publishing, Inc.*. 31,100 330,438
461,063
RESTAURANTS &
LODGING--1.3%
Hospitality Franchise Systems 22,300 624,400
Host Marriott Corp. 16,000 152,000
International Pizza Corp.
Ord.* 16,400 16,400
warrants, expiring 9/22/98* 16,400 3,331
796,131
RETAILING--3.1%
Bombay Co., Inc.* 35,600 315,950
Catalina Marketing Corp.* 7,400 370,925
Ethan Allen Interiors, Inc.* 5,200 115,700
Nine West Group, Inc.* 36,500 1,053,938
1,856,513
TEXTILE PRODUCTS--1.3%
Cygne Designs, Inc.* 36,800 437,000
Tommy Hilfiger Corp.* 16,600 338,225
775,225
13,752,560
TECHNOLOGY--12.1%
COMMUNICATION &
EQUIPMENT--3.2%
Bay Networks, Inc.* 7,692 225,953
MFS Communications Co., Inc.* 4,100 156,825
<PAGE>
Alliance Global Small Cap Fund
Company Shares U.S. $ Value
Millicom International
Cellular S.A.* 18,500 $ 482,156
Paging Network, Inc.* 9,100 307,125
Scientific-Atlanta, Inc. 33,600 676,200
1,848,259
COMPUTER
HARDWARE--0.4%
Read-Rite Corp.* 13,900 208,500
COMPUTER
PERIPHERALS--1.8%
Exabyte Corp.* 14,900 257,025
Hutchinson Technology, Inc.* 15,600 390,000
Komag, Inc.* 18,700 439,450
1,086,475
COMPUTER SOFTWARE &
SERVICES--4.0%
Cadence Design Systems, Inc. 10,600 231,875
Informix Corp.* 25,900 832,038
Lotus Developement Corp.* 11,900 531,038
Soft Key International, Inc.* 14,100 339,281
Symantec Corp.* 21,500 421,938
2,356,170
SEMI-CONDUCTORS &
RELATED--1.4%
Applied Materials, Inc.* 4,600 176,525
Cypress Semiconductor Corp. 21,600 507,600
LSI Logic Corp.* 4,900 208,250
892,375
OTHER--1.3%
Dionex Corp.* 11,800 467,575
QUALCOMM, Inc.* 12,100 317,625
785,200
7,176,979
ENERGY--5.5%
DOMESTIC
PRODUCERS--1.5%
Diamond Shamrock, Inc 26,200 612,425
Snyder Oil Corp 18,800 258,500
870,925
INTERNATIONAL
PRODUCERS--0.1%
XCL, Ltd.* 110,000 $ 68,750
OIL & GAS
SERVICES--3.1%
Arethusa, Ltd.* 35,050 427,172
Global Marine, Inc.* 224,600 842,250
Rowan Cos., Inc.* 90,600 520,950
Tosco Corp. 1,800 51,525
Tuboscope Vetco
International Corp.* 6,100 46,131
1,888,028
OTHER--0.8%
Reading & Bates Corp.* 77,200 472,850
3,300,553
FINANCIAL SERVICES--3.2%
INSURANCE--3.2%
National Re Corp. 12,600 348,075
PXRE Corp. 27,200 676,600
20th Century Industries, Inc. 70,800 902,700
1,927,375
BASIC INDUSTRIES--2.7%
MACHINERY--0.7%
JLG Industries, Inc. 11,000 408,375
MINING & METALS--0.7%
AK Steel Holding Corp.* 5,100 128,775
Noble Drilling Corp.* 53,500 270,844
399,619
TRANSPORTATION
& SHIPPING--1.3%
Airbourne Freight Corp. 10,400 228,800
Alaska Air Group, Inc.* 11,400 169,575
TNT Freightways Corp 15,250 404,125
802,500
1,610,494
Total United States Investments
(cost $25,783,063) 27,767,961
<PAGE>
PORTFOLIO OF INVESTMENTS (continued) Alliance Global Small Cap Fund
Company Shares U.S. $ Value
FOREIGN INVESTMENTS--45.8%
ARGENTINA--0.1%
Telecom Argentina
Stet-France*(ADR)(a) 1,000 $ 48,250
Telephone utility
YPF S.A. (ADR) Cl. D. 1,000 20,625
Energy-international producers
68,875
AUSTRALIA--1.0%
AAPC, Ltd. 385,000 198,228
Restaurants & lodging
Diamond Ventures, Ltd.* 170,000 25,744
Mining & metals
Fai Life, Ltd. 619,954 389,613
Insurance
613,585
AUSTRIA--1.2%
Austria Mikro Systeme
International AG 4,000 313,445
Semi-conductors & related
Benckiser-Wasser-Technik AG 1,500 230,280
Pollution control
Mayr-Melnhof Karton AG*(a) 3,300 183,066
Paper & Forest 726,791
BELGIUM--0.4%
Tessenderlo Chemie, S.A. 700 227,269
Chemicals
BRAZIL--0.1%
Companhia Siderurgica de
Tubarao (ADR)(a) 3,000 79,719
Mining & metals
CANADA--1.4%
Bell Cable Media Plc.* 5,000 95,625
Broadcasting & cable
CHC Helicopter Corp. Cl.A 20,000 70,957
Airlines
MacMillan Bloedel, Ltd. 5,000 58,096
Paper & Forest
Miramar Mining Corp.* 23,000 91,801
Mining & metals
Nelvana, Ltd.*(a) 15,000 $ 142,358
Entertainment & Leisure Time
Orbit Oil & Gas, Ltd.* 10,000 7,309
Oil & gas exploration
Quebecor Printing, Inc. 14,250 154,199
Printing & publishing
Renaissance Energy, Ltd.* 4,000 70,957
Energy-domestic producers
Royal Plastics Group, Ltd.* 20,300 154,846
Building & related
846,148
CHILE--0.8%
Banco Osorno Y La
Un (ADR) 11,000 127,875
Banking-Regional
Distribuidora Chilectra
Metropolitan
S.A., Sponsored (ADR) 4,000 191,803
Electric & gas utility
Empresas Telex Chile, S.A. 8,000 81,000
Communication equipment
Enersis, S.A. Sponsored (ADR) 3,000 72,000
Electric utility
472,678
FINLAND--0.9%
Nokia Corp. pfd.-free(a) 3,000 436,114
Communication equipment
Tamro AB 20,000 96,495
Medical services
532,609
FRANCE--1.7%
Alcatel Cable 2,000 157,729
Communication equipment
Coflexip Sponsored (ADR) 20,000 490,000
Oil & gas services
Lafarge Coppee 2,000 138,694
Building & related
Synthelabo 5,000 213,623
Drugs, hospital supplies & medical
services 1,000,046
<PAGE>
Alliance Global Small Cap Fund
Company Shares U.S. $ Value
GERMANY--2.9%
Bayer AG(b) 1,000 $ 230,870
Chemicals
Duerr Beteiliqunqs AG(b) 700 247,356
Machinery
Fielmann AG pfd.(b) 9,000 305,025
Retail
G.E.A. AG(b) 120 35,862
Engineering & construction
Hach AG(b) 300 125,123
Retail
Mannesmann AG(b) 1,000 268,177
Machinery
Marschollek
Lautenschalaeger(b) 700 382,069
Insurance
Plettac AG 50 25,813
Multi-Industry
Rheinhold & Mahla AG 400 81,445
Multi-Industry
1,701,740
HONG KONG--0.8%
Concordia Paper Holdings
Ltd.*(ADR) 18,800 213,850
Multi-Industry
Fu Hui Jewelry Co., Ltd.* 400,000 23,788
Jewelry & watches
Paul Y.-ITC Construction Holdings,
Inc.* 800,000 138,591
Engineering & construction
Sing Tao 180,000 111,118
Printing & publishing
487,347
INDIA--0.6%
Gujarat Normal Fertilizer (GDR) 4,000 43,826
Chemicals
Shirarim Industrial Enterprises,
Ltd(c)* 15,000 315,000
warrants, expiring 4/28/96* 5,000 -0-
Multi-Industry
358,826
IRELAND--1.0%
Crean (James) Plc. 25,000 $ 100,822
Multi-Industry
Irish Continental Group 21,500 140,874
Transportation-shipping
Ryan Hotels Plc. 450,000 210,608
Restaurants & lodging
Unidare, Ltd. 35,000 136,505
Multi-Industry
588,809
ITALY--3.1%
CIGA Hotels* 150,000 81,509
Restaurants & lodging
Editoriale La Republica
S.p.A.* 20,000 30,678
Printing & publishing
Fila Holding
Sponsored (ADR) 10,000 190,000
Apparel
Industrie Natuzzi
S.p.A.*(ADR) 39,200 1,264,200
Furniture products
Luxottica Group (ADR) 7,000 240,625
Consumer products & services
Marzotto & Figli-D'ris 7,000 46,732
Textile products
1,853,744
JAPAN--10.2%
Bunkyodo Co., Ltd.* 2,000 80,463
Retail
Canon, Inc.(b) 17,000 251,345
Computer peripherals
Casio Computer Co., Ltd.(b) 11,000 119,487
Electronic equipment
Charle Co., Ltd. 4,000 73,221
Textiles
Chubu Sekiwa Real
Estate, Ltd. 1,000 12,673
Real estate
Disco Corp. 3,000 86,296
Semi-conducts & related
Eidensha Co., Ltd. 6,000 81,468
Retail
<PAGE>
PORTFOLIO OF INVESTMENTS (continued) Alliance Global Small Cap Fund
Company Shares U.S. $ Value
Fanuc, Ltd.(b) 3,500 $144,330
Electronic equipment
Fuji Electronics Co.*(b) 7,000 172,492
Semi-conductors & related
Fukuda Corp. 7,000 83,078
Miscellaneous technologies
Futuba Corp. 2,000 92,532
Multi-Industry
Hachijuni Bank 7,000 84,486
Banking-Regional
Honda Motor Co. 5,000 77,948
Auto & related
Innotech Corp. 2,200 78,552
Semi-conductors & related
Ishiguro Homa Co. 3,000 64,571
Retail
Kanamoto Co., Ltd.* 3,900 75,705
Engineering & construction
Kaneshita Construction 2,000 31,380
Engineering & construction
Kawasaki Steel Corp.(b) 40,000 154,891
Mining & metals
Kawasaki Kisen Kaisha, Ltd.* 11,000 37,948
Transportation-shipping
Keyence Corp.(b) 2,600 240,583
Machinery
Kyocera Corp.(b) 3,000 193,412
Semi-conductors & related
Lasertec Corp. 2,000 88,308
Electronics
Mabuchi Motor Co. 3,000 192,809
Transportation-shipping
Marutomi Group 400 3,822
Apparel
Matsuyadenki Co., Ltd.* 5,000 53,307
Retail
Minebea Co. 13,000 88,911
Machinery
Mitsubishi Motors Corp.(b) 17,000 153,030
Auto & related
Morishita Co., Ltd. 5,000 60,347
Consumer manufacturing
Murata Manufacturing
Co., Ltd. 2,000 $ 63,767
Communication equipment
NEC Corp. 10,000 93,538
Computer hardware
Nomura Ship Building 14,000 106,170
Engineering & construction
Nichiei Co., Ltd. 2,000 101,182
Financial services
Nihon Dempa Kogyo 6,000 156,902
Communication equipment
Nippon Steel Corp. 30,000 111,340
Mining & metals
Nippon Electric Glass Co., Ltd. 6,000 109,832
Consumer products & services
Nissen Corp., Ltd.* 6,960 189,007
Retail
Ohmori Co., Ltd. 1,000 18,909
Engineering & construction
Omron Corp. 8,000 136,787
Machinery
PS Corp. 7,000 158,411
Engineering & construction
Promise Co., Ltd. 3,000 121,599
Financial services
Ricoh Elemex Co., Ltd 5,000 62,861
Computer peripherals
Rohm Co., Ltd. 7,000 253,457
Machinery
SMC Corp. 4,500 229,017
Machinery
Santen Pharmaceutical Co. 6,000 162,333
Healthcare
Sanyo Shinpan
Finance Co., Ltd. 900 63,817
Financial services
Sato Corp. 7,000 159,819
Consumer services
Sharp Corp. 8,000 117,475
Consumer manufacturing
Shimamura Co., Ltd. 2,000 92,532
Retail
<PAGE>
Alliance Global Small Cap Fund
Company Shares U.S. $ Value
Showa Denko K.K.* 5,000 $ 16,243
Chemical
TDK Corp. 10,000 406,336
Consumer products & services
Techno Ryowa, Ltd. 1,000 19,613
Semi-conductors & related
Wesco, Inc. 3,000 119,487
Engineering & construction
Xebio Co. 1,000 33,493
Retail
Yamanashi Chuo Bank 4,000 41,438
Banking
Yamato Setsubi Construction 9,000 71,511
Engineering & construction
6,094,271
MALAYSIA--0.1%
C.I. Holdings Berhad 16,000 55,658
Building & related
MEXICO--0.4%
Buffete Industrial, S.A.
Sponsored (ADR) 700 9,625
Engineering & construction
Grupo Fernandex Editores, S.A. 15,000 10,769
Printing & publishing
Grupo Industrial Durango, S.A.* 15,000 129,375
Paper & forest products
International de Ceramica* 34,915 78,783
Ceramic tiles
228,552
NETHERLANDS--1.5%
Akzo Nobel N.V.(b) 2,000 226,269
Chemicals
Atag Holding N.V.(b) 1,000 69,099
Multi-Industry
BAM Groep N.V.(b) 2,154 131,180
Engineering & construction
Boskalis Westminster
cum. pfd.(b) 263 4,913
Engineering & construction
Content Beheer N.V.(b) 10,000 192,657
Temporary help
KLM Royal Dutch Airlines(b) 10,000 $ 267,611
Consumer services-airlines
891,729
NORWAY--1.6%
Dyno Industrier AS 9,000 253,312
Chemicals
Helikopter Service AS* 15,000 143,723
Energy-oil
Sensonor AS* 25,000 174,040
Miscellaneous technology
Tomra Systems AS 82,500 207,501
Pollution control
Western Bulk Shipping AS(a) 31,500 167,415
Shipping
945,991
PANAMA--0.3%
Banco Latinoamericano
de Exportaciones,
S.A. (ADR) 6,600 205,425
Finance
PORTUGAL--0.6%
Sumolis Comp Inc. 29,876 284,199
Food, beverages & tobacco
TVI Televisas Independente* 12,000 75,822
Broadcasting & cable
360,021
SINGAPORE--0.4%
GP Batteries International 10,000 26,500
Consumer products & services
Lim Kah Ngam, Ltd. 30,000 36,933
Multi-Industry
Singapore Press Holdings, Ltd. 10,000 171,252
Printing & publishing
234,685
SOUTH KOREA--0.6%
Samsung Electronics Co., Ltd.
(GDS)*(a)(ADR) 7,000 255,500
baby shrs(a) 290 15,370
Semi-conductors & related
Yukong, Ltd. (ADR) 5,280 56,760
Energy international producers
327,630
<PAGE>
PORTFOLIO OF INVESTMENTS (continued) Alliance Global Small Cap Fund
Company Shares U.S. $ Value
SPAIN--0.5%
Acerinox, S.A. 1,500 $ 155,081
Mining & metals
Construcciones Y Aux
de Ferr* 3,000 136,163
Railroad transportation
291,244
SWEDEN--2.4%
Autoliv AB*(ADR) 3,900 141,656
Auto & related
Hoganas AB Cl. B*(a) 15,000 241,045
Mining & metals
Kalmar Industries AB(a) 16,000 202,705
Machinery
Rottneros Bruks AB* 75,000 116,022
Paper & forest products
SKF AB* 25,000 438,415
Machinery
SSAB (Svenskt Stal Aktiebolag)
Series B 4,500 208,239
Mining & metals
Seco Tools AB 4,000 77,348
Machinery
1,425,430
SWITZERLAND--1.0%
Keramik Laufen Holding
AG-ptg. certs. 300 187,150
Household products
Lindtt & Spruengli AG
Ord. 20 288,162
warrants, expiring 2/28/95* 200 3,193
Consumer products & services
SBSI Holdings S.A.-PC 500 105,140
Brokerage & money
management
583,645
TAIWAN--0.4%
The Taiwan Fund 9,200 212,750
Mutual Fund
TURKEY--0.1%
Netas Telekomunik Ord. Cl.B*(a) 215,600 $ 53,103
Communication equipment
UNITED KINGDOM--9.7%
ACT Group Plc. 100,000 116,242
Computer software & services
Anglo United Plc. Ord.* 650,000 15,420
Miscellaneous basic industries
Aran Energy 350,000 240,788
Oil service
Asda Group Plc. 80,000 85,086
Retailing
Automated Security Holdings Plc* 180,008 196,434
Consumer products & services
Berkeley Group Plc. Ord.(b) 125,000 671,161
Building & related
Blenheim Group 10,000 30,365
Advertising
Bryant Group(b) 150,000 276,372
Building & related
Caird Group Plc.* 900,000 78,286
Pollution control
Cray Electronics Holdings Plc. 30,000 71,169
Communication equipment
Filtronic Comtec Plc.*(b) 180,000 543,729
Communication equipment
Kwik-Fit Holdings Plc. 250,000 604,934
Auto & related
M.S. International Plc. 800,000 278,349
Machinery
Mid-States Plc.* 740,000 749,012
Auto & related
Morrison (William)
Supermarkets Plc 40,000 91,729
Retailing
Mowlem (John) & Co. Plc. * 580,000 871,422
Engineering & construction
Northern Ireland
Electricity Plc.(b) 30,000 166,535
Electric & gas utility
<PAGE>
Alliance Global Small Cap Fund
Company Shares U.S. $ Value
Powerscreen International Plc. 39,000 $ 151,113
Recycling equipment
Queens Moat
Houses Plc.*(c) 600,000 9,489
Restaurants & lodging
Resort Hotels Plc. (c)* 1,000,000 -0-
Restaurants & lodging
RTZ Corp. 15,000 184,446
Mining & metals
Sears Plc. 70,000 109,046
Retailing
Siebe Plc. 30,000 236,517
Machinery
5,777,644
Total Foreign Investments
(cost $29,385,990) 27,245,964
Total Common Stock &
Other Investments
(cost $55,169,053) 55,013,925
Principal
Amount
Company (000) U.S. $ Value
CORPORATE BOND--0.4%
COMMUNICATION &
EQUIPMENT--0.4%
Intelcom Group, Inc.(a)(c)
8.00%, 9/17/98
(cost $257,489) US$257 $ 216,173
COMMERCIAL PAPER--4.9%
Merrill Lynch & Co.
5.85%, 2/01/95
(amortized cost $2,926,000) US$2,926 2,926,000
TOTAL INVESTMENTS--97.7%
(cost $58,352,542) 58,156,098
Other assets less
liabilities--2.3% 1,379,427
NET ASSETS--100% $59,535,525
* Non-income producing.
(a) Securities are exempt from registration under Rule 144A of the Securities
Act of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At January 31,
1995 these securities amounted to $2,040,818 or 3.4% of net assets.
(b) Securities (with an aggregate market value of $5,573,578), segregated to
collateralize a forward exchange currency contract.
(c) Illiquid security, valued at fair market value. (See Notes A and E.)
Glossary of terms:
ADR-American Depository Receipt
GDR-Global Depository Receipt
GDS-Global Depository Security
See notes to financial statements.
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
January 31, 1995 (unaudited) Alliance Global Small Cap Fund
<TABLE>
<CAPTION>
<S> <C>
ASSETS
Investments in securities, at value (cost $58,352,542) $58,156,098
Cash, at value (cost $1,724,787) 1,740,893
Receivable for investment securities sold 2,002,313
Dividends and interest receivable 172,089
Foreign taxes receivable 36,400
Receivable for capital stock sold 36,059
Total assets 62,143,852
LIABILITIES
Payable for investment securities purchased 1,539,670
Unclaimed dividends 634,284
Unrealized depreciation of forward exchange currency contracts 106,183
Payable for capital stock repurchased 86,457
Management fee payable 51,360
Distribution fee payable 18,910
Accrued expenses 171,463
Total liabilities 2,608,327
NET ASSETS $59,535,525
COMPOSITION OF NET ASSETS
Capital stock, at par $ 68,705
Additional paid-in capital 68,423,526
Accumulated net investment loss (4,312,347)
Accumulated net realized loss on investments and foreign currency transactions (4,359,887)
Net unrealized depreciation of investments and foreign currency denominated assets and liabilities (284,472)
$59,535,525
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
CALCULATION OF MAXIMUM OFFERING PRICE
Class A Shares
Net asset value and redemption price per share
($53,830,187/6,188,801 shares of capital stock issued and outstanding) $8.70
Sales charge--4.25% of public offering price .39
Maximum offering price $9.09
Class B Shares
Net asset value and offering price per share
($4,574,236/546,555 shares of capital stock issued and outstanding) $8.37
Class C Shares
Net asset value, redemption and offering price per share
($1,131,102/135,112 shares of capital stock issued and outstanding) $8.37
</TABLE>
See notes to financial statements.
<PAGE>
STATEMENT OF OPERATIONS
Six Months Ended January 31, 1995 (unaudited) Alliance Global Small Cap Fund
<TABLE>
<CAPTION>
<S> <C> <C>
INVESTMENT INCOME
Dividends (net of foreign taxes withheld of $20,942) $251,939
Interest 175,764 $ 427,703
EXPENSES
Management fee 335,341
Distribution fee--Class A 91,778
Distribution fee--Class B 22,881
Distribution fee--Class C 6,931
Transfer agency 120,148
Administrative 91,511
Custodian 48,742
Registration 43,623
Audit and legal 40,701
Printing 20,784
Directors' fees 16,598
Miscellaneous 26,817
Total expenses 865,855
Net investment loss (438,152)
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND
FOREIGN CURRENCY
Net realized gain on investments . . . . . 3,826,986
Net realized loss on foreign currency transactions . (381,010)
Net change in unrealized appreciation of investments (3,037,613)
Net change in unrealized depreciation of foreign currency denominated
assets and liabilities (1,513,924)
Net loss on investments and foreign currency transactions (1,105,561)
NET DECREASE IN NET ASSETS FROM OPERATIONS $(1,543,713)
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months Ended October 1, 1993
January 31, 1995 to
(unaudited) July 31, 1994*
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment loss $ (438,152) $ (751,009)
Net realized gain on investments and foreign currency transactions 3,445,976 5,770,260
Net change in unrealized appreciation (depreciation) of investments
and foreign currency denominated assets and liabilities (4,551,537) (6,096,357)
Net decrease in net assets from operations. (1,543,713) (1,077,106)
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net realized gain on investments
Class A (11,284,722) -0-
Class B (274,470) -0-
Class C (942,024) -0-
CAPITAL STOCK TRANSACTIONS
Net increase 6,988,930 545,313
Total decrease (7,055,999) (531,793)
NET ASSETS
Beginning of year 66,591,524 67,123,317
End of period $ 59,535,525 $66,591,524
</TABLE>
*The fund changed its fiscal year end from September 30 to July 31.
See notes to financial statements.
<PAGE>
NOTES TO FINANCIAL STATEMENTS
January 31, 1995 (unaudited) Alliance Global Small Cap Fund
NOTE A: Significant Accounting Policies
Alliance Global Small Cap Fund, Inc. (the "Fund"), formerly Surveyor Fund,
Inc., is registered under the Investment Company Act of 1940 as a
diversified, open-end management investment company. The Fund offers Class A,
Class B and Class C shares. Class A shares are sold with a front-end sales
charge of up to 4.25%. 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 sold without an initial or contingent deferred sales charge. All
three 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
following is a summary of significant accounting policies followed by the
Fund.
1. Security Valuation
Securities traded on United States or foreign securities exchanges are valued
at the last reported sales price, or, if no sale occurred, at the mean of the
bid and asked price. Securities listed or traded on certain foreign exchanges
whose operations are similar to the U.S. over-the-counter market are valued
at the closing bid price. Debt securities are valued at the mean of the bid
and asked price except that debt securities maturing within 60 days are
valued at amortized cost, which approximates market value. Securities for
which current market quotations are not readily available (including
investments which are subject to limitations as to their sale) are valued at
their fair value as deter- mined in good faith by the Board of Directors. The
values of foreign securities quoted in foreign currencies are translated into
U.S. dollars at the current rate of exchange at January 31, 1995.
2. Currency Translation
Assets and liabilities denominated in foreign currencies and commitments
under forward currency exchange 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 loss on foreign currency transactions of $381,010 represents net
foreign exchange losses from 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 recorded on the Fund's books and the U.S. dollar equivalent
amounts actually received or paid.
Net currency gains or losses from valuing foreign currency denominated assets
and liabilities at period end exchange rates are reflected as a component of
unrealized depreciation of investments and foreign currency denominated
assets and liabilities.
3. Investment Income and Security Transactions
Dividend income is recorded on the ex-dividend date. Interest income is
accrued daily. Security transactions are accounted for on the date the
securities are purchased or sold. Security gains and losses are determined on
the identified cost basis.
4. Taxes
It is the Fund's policy to meet the requirements of the Internal Revenue Code
applicable to regulated investment companies and to distribute all of its
investment company taxable income and net realized gains, if applicable, to
shareholders. Therefore, no provisions for federal income or excise taxes are
required.
5. Dividends and Distributions
Dividends and distributions to shareholders are recorded on the ex-dividend
date. Income dividends and capital gain distributions are determined in
accordance with income tax regulations, which may differ from generally
accepted accounting principles.
6. Change of Year End
The Fund changed its fiscal year end from September 30 to July 31.
Accordingly, the statements of changes in net assets and per share data and
ratios reflect the period from October 1, 1993 to July 31, 1994.
7. Change in Accounting for Distributions to
Shareholders
Effective November 1, 1993, the Fund adopted Statement of Position 93-2:
Determination, Disclosure, and Financial Statement Presentation of Income,
Capital Gain, and Return of Capital Distributions by Investment Companies. As
a result, the Funds changed the classification of distributions to
shareholders to better disclose the differences between financial statement
amounts and distributions determined in accordance with income tax
regulations.
NOTE B: Management Fees and Other Transactions with Affiliates
Under the terms of the management agreement, the Fund pays its Manager,
Alliance Capital Management L.P., a management fee at an annual rate of 1% of
the average daily net assets of the Fund. The fee is accrued daily and paid
monthly.
The Manager has agreed to reimburse the Fund to the extent that its aggregate
annual expenses (exclusive of interest, taxes, brokerage, distribution fee
and extraordinary expenses) exceed the
<PAGE>
Alliance Global Small Cap Fund
limits prescribed by any state in which the Fund's shares are qualified for
sale.
The Manager believes that the most restrictive expense ratio limitation
imposed by any state is 2.5% of the first $30 million of its average daily
net assets, 2% of the next $70 million of its average daily net assets and
1.5% of its average daily net assets in excess of $100 million. No
reimbursement was required for the six months ended January 31, 1995.
Pursuant to the management agreement, the Fund paid $91,511 to the Manager
representing the cost of certain legal and accounting services provided to
the Fund by the Manager for the six months ended January 31, 1995.
The Fund compensates Alliance Fund Services, Inc. (a wholly-owned subsidiary
of the Manager) in accordance with a Services Agreement for providing
personnel and facilities to perform transfer agency services for the Fund.
Such compensation amounted to $81,178 for the six months ended January 31,
1995.
Alliance Fund Distributors, Inc. (a wholly-owned subsidiary of the Manager)
serves as the Distributor of the Fund's shares. The Distributor received
front-end sales charges of $1,092 from the sale of Class A shares and $7,516
in contingent deferred sales charges imposed upon redemptions by shareholders
of Class B shares for the six months ended January 31, 1995.
Brokerage commissions paid on securities transactions for the six months
ended January 31, 1995 amounted to $123,844, 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 Manager, nor to DLJ
directly.
NOTE C: Distribution Services Agreement
The Fund has adopted a Distribution Services Agreement (the "Agreement")
pursuant to Rule 12b-1 under the Investment Company Act of 1940. Under the
Agreement, the Fund pays a distribution fee to the Distributor at an annual
rate of up to .30% of 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. The Agreement provides that the Distributor will
use such payments in their entirety for distribution assistance and
promotional activities. The Distributor has incurred expenses in excess of
the distribution costs reimbursed by the Fund in the amount of $794,327, and
$272,796 for Class B and 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
Manager 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
investments) aggregated $40,381,171 and $45,948,427, respectively, for the
six months ended January 31, 1995. There were no purchases or sales of U.S.
Government and government agency obligations for the six months ended January
31, 1995.
1. Forward Exchange Currency Contracts
The Fund enters into forward exchange currency contracts in order to hedge
its exposure to changes in foreign currency exchange rates on its foreign
portfolio holdings and to hedge certain firm purchase and sale commitments
denominated in foreign currencies.
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 gain or loss from
foreign currency transactions.
Fluctuations in the value of forward exchange currency contracts are recorded
for financial reporting purposes as unrealized gains or losses by the Fund.
The Fund's custodian will place and maintain cash not available for
investment or U.S. Government securities in a separate account 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 a
foreign currency relative to the U.S. dollar.
At January 31, 1995, the Fund had outstanding forward exchange currency
contracts, both to purchase and sell foreign currencies against the U.S.
dollar as follows:
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued) Alliance Global Small Cap Fund
<TABLE>
<CAPTION>
Contract Cost on Unrealized
Amount Origination U.S. $ Appreciation/
Foreign Currency Buy Contracts (000) Date Current Value (Depreciation)
<S> <C> <C> <C> <C>
British Pounds, expiring 4/03/95 1,425 $2,227,803 $2,249,325 $ 21,522
Foreign Currency Sale Contracts
British Pounds, expiring 4/03/95 2,375 3,715,617 3,748,875 (33,258)
Japanese Yen, expiring 4/21/95 130,000 1,303,258 1,319,003 (15,745)
Deutsche Mark, expiring 4/03/95 2,413 1,537,368 1,587,972 (50,604)
Netherland Guilder, expiring 4/03/95 1,589 904,353 932,451 (28,098)
$(106,183)
</TABLE>
At January 31, 1995, the cost of investments for federal income tax purposes
was the same as the cost for financial reporting purposes. Accordingly, gross
unrealized appreciation of investments was $6,396,878 and gross unrealized
depreciation of investments was $6,593,322, resulting in net unrealized
depreciation of $196,444.
NOTE E: Illiquid Securities
Date Acquired Cost Value
Intelcom Group, Inc. 8.00%, 9/17/98 9/16/93 $ 249,707 $216,173
Queens Moat Houses Plc. 8/20/92 373,681 9,489
Resort Hotels Plc. 5/01/92 719,086 -0-
$1,342,474 $225,662
The securities shown above are restricted as to sale and have been valued at
fair value in accordance with the procedures described in Note A. The value
of these securities at January 31, 1995 represents 0.4% of net assets.
NOTE F: Capital Stock
There are 62,500,000 shares of $.01 par value capital stock authorized,
divided into three classes, designated Class A, Class B and Class C shares.
Class A and Class C each consist of 25,000,000 authorized shares and Class B
consists of 12,500,000 authorized shares. Transactions in capital stock were
as follows:
<TABLE>
<CAPTION>
Shares Amount
Six Months Ended October 1, 1993 Six Months Ended October 1, 1993
January 31, 1995 to January 31, 1995 to
Class A (unaudited) July 31, 1994* (unaudited) July 31, 1994*
<S> <C> <C> <C> <C>
Shares sold 205,492 325,941 $ 2,261,525 $ 3,837,992
Shares issued in reinvestment
of distributions 952,163 -0- 8,217,164 -0-
Shares redeemed (507,936) (632,975) (5,409,099) (7,361,992)
Net increase (decrease) 649,719 (307,034) $ 5,069,590 $(3,524,000)
Class B
Shares sold 208,647 333,615 $ 2,171,283 $ 3,794,604
Shares issued in reinvestment
of distributions 75,995 -0- 631,516 -0-
Shares redeemed (98,837) (77,401) (1,006,574) (875,725)
Net increase 185,805 256,214 $ 1,796,225 $ 2,918,879
</TABLE>
<PAGE>
Alliance Global Small Cap Fund
<TABLE>
<CAPTION>
Shares Amount
Six Months Ended October 1, 1993 Six Months Ended October 1, 1993
January 31, 1995 to January 31, 1995 to
Class C (unaudited) July 31, 1994* (unaudited) July 31, 1994*
<S> <C> <C> <C> <C>
Shares sold 95,971 165,941 $ 923,946 $1,883,546
Shares issued in reinvestment
of distribution 15,861 -0- 131,935 -0-
Shares redeemed (99,994) (66,414) (932,766) (733,112)
Net increase 11,838 99,527 $ 123,115 $1,150,434
</TABLE>
* The Fund changed its fiscal year end from September 30 to July 31.
<PAGE>
FINANCIAL HIGHLIGHTS Alliance Global Small Cap Fund
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
<TABLE>
<CAPTION>
Class A
Six Months Ended October 1, 1993
January 31, 1995 to Year Ended September 30,
(unaudited) July 31, 1994* 1993 1992 1991 1990
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 11.08 $ 11.24 $ 9.33 $ 10.55 $ 8.26 $ 15.54
Income From Investment Operations
Net investment loss (.04)(a) (.15) (.15) (.16) (.06) (.05)(a)
Net realized and unrealized gain (loss) on
investments and foreign currency
transactions (.23) (.01) 2.49 (1.03) 2.35 (4.12)
Net increase (decrease) in net asset value
from operations (.27) (.16) 2.34 (1.19) 2.29 (4.17)
Less: Distributions
Distributions from net realized gains (2.11) -0- (.43) (.03) -0- (3.11)
Net asset value, end of period $ 8.70 $ 11.08 $ 11.24 $ 9.33 $ 10.55 $ 8.26
Total Return
Total investment return based on net asset
value (b) (2.26)% (1.42)% 25.83% (11.30)% 27.72% (31.90)%
Ratios/Supplemental Data
Net assets, end of period (000's omitted) $53,830 $61,372 $65,713 $58,491 $84,370 $68,316
Ratio of expenses to average net assets 2.52%(c) 2.42%(c) 2.53% 2.34% 2.29% 1.73%
Ratio of net investment loss to average net
assets (1.24)%(c) (1.26)%(c) (1.13)% (.85)% (.55)% (.46)%
Portfolio turnover rate 65% 78% 97% 108% 104% 89%
</TABLE>
See footnote summary on page 22.
<PAGE>
Alliance Global Small Cap Fund
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
<TABLE>
<CAPTION>
Class B
Six Months Ended October 1, 1993
January 31, 1995 to Year Ended September 30,
(unaudited) July 31, 1994* 1993 1992 1991 1990 (d)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $10.78 $11.00 $ 9.20 $ 10.49 $ 8.26 $ 9.12
Income From Investment Operations
Net investment loss (.02) (.17)(a) (.15) (.20) (.07) (.01)
Net realized and unrealized gain (loss)
on investments and foreign currency
transactions (.28) (.05) 2.38 (1.06) 2.30 (.85)
Net increase (decrease) in net asset
value from operations (.30) (.22) 2.23 (1.26) 2.23 (.86)
Less: Distributions
Distributions from net realized gains (2.11) -0- (.43) (.03) -0- -0-
Net asset value, end of period $ 8.37 $10.78 $11.00 $ 9.20 $10.49 $ 8.26
Total Return
Total investment return based on net
asset value (b) (2.61)% (2.00)% 24.97% (12.03)% 27.00% (9.43)%
Ratios/Supplemental Data
Net assets, end of period (000's
omitted) $4,574 $3,889 $1,150 $ 819 $ 121 $ 183
Ratio of expenses to average net assets 3.24%(c) 3.15%(c) 3.26% 3.11% 2.98% 2.61%(c)
Ratio of net investment loss to average
net assets (2.00)%(c) (1.93)%(c) (1.85)% (1.31)% (1.39)% (1.30)%(c)
Portfolio turnover rate 65% 78% 97% 108% 104% 89%
</TABLE>
See footnote summary on page 22.
<PAGE>
FINANCIAL HIGHLIGHTS (continued) Alliance Global Small Cap Fund
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
<TABLE>
<CAPTION>
Class C
Six Months Ended October 1, 1993 May 3, 1993(e)
January 31, 1995 to to
(unaudited) July 31, 1994* September 30, 1993
<S> <C> <C> <C>
Net asset value, beginning of period $10.79 $11.00 $ 9.86
Income From Investment Operations
Net investment loss (.09) (.17)(a) (.05)
Net realized and unrealized gain (loss) on
investments and foreign currency
transactions (.22) (.04) 1.19
Net increase (decrease) in net asset value
from operations (.31) (.21) 1.14
Less: Distributions
Distributions from net realized gains (2.11) -0- -0-
Net asset value, end of period $ 8.37 $10.79 $11.00
Total Return
Total investment return based on net asset
value (b) (2.73)% (1.91)% 11.56%
Ratios/Supplemental Data
Net assets, end of period (000's omitted) $1,131 $1,330 $ 261
Ratio of expenses to average net assets 3.21%(c) 3.13%(c) 3.75%(c)
Ratio of net investment income (loss) to
average net assets (1.96)%(c) (1.92)%(c) (2.51)%(c)
Portfolio turnover rate 65% 78% 97%
</TABLE>
* The Fund changed its fiscal year end from September 30 to July 31.
(a) Based on average shares outstanding.
(b) 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 charge or
contingent deferred sales charge is not reflected in the calculation of
total investment return. Total investment return calculated for a period
of less than one year is not annualized.
(c) Annualized.
(d) For the period September 17, 1990 (commencement of distribution) to
September 30, 1990.
(e) Commencement of distribution.
<PAGE>
Alliance Global Small Cap Fund
BOARD OF DIRECTORS
John D. Carifa, Chairman and President
David H. Dievler
Ruth Block ((1))
John H. Dobkin ((1))
William H. Foulk, Jr. ((1))
Dr. James M. Hester ((1))
Clifford L. Michel ((1))
Henry Ugarte ((1))
OFFICERS
Alden M. Stewart, Senior Vice President-Investments
Randall E. Haase, Vice President
Ronald L. Simcoe, Vice President
Timothy D. Rice, Vice President
Thomas Bardong, Vice President
Edmund P. Bergan, Jr., Secretary
Mark D. Gersten, Treasurer & Chief Financial Officer
Patrick J. Farrell, Controller
CUSTODIAN
State Street Bank & Trust Company
225 Franklin Street
Boston, MA 02110
DISTRIBUTOR
Alliance Fund Distributors, Inc.
1345 Avenue of the Americas
New York, NY 10105
LEGAL COUNSEL
Seward & Kissel
One Battery Park Plaza
New York, NY 10004
INDEPENDENT AUDITORS
Ernst & Young LLP
787 Seventh Avenue
New York, NY 10019
TRANSFER AGENT
Alliance Fund Services, Inc.
P.O. Box 1520
Secaucus, NJ 07096-1520
Toll-free 1-(800) 221-5672
((1)) Member of the Audit Committee.
