ALLIANCE GLOBAL SMALL CAP FUND
SEMI-ANNUAL REPORT
JANUARY 31, 1997
ALLIANCE CAPITAL
LETTER TO SHAREHOLDERS ALLIANCE GLOBAL SMALL CAP FUND
_______________________________________________________________________________
March 5, 1997
Dear Shareholder:
During the six-month period since our last report, global financial markets
have enjoyed strong gains, and Alliance Global Small Cap Fund has experienced
solid returns. The following table shows how your Fund performed during the 6-
and 12-month periods ended January 31, 1997. For comparison, we've shown the
performance for the unmanaged Morgan Stanley Capital International (MSCI) World
Index, which measures stock market performance in 23 countries, as well as
performance for the Lipper Global Small Company Funds Average, which tracks 27
funds with investment objectives similar to that of your Fund.
INVESTMENT RETURNS*
Total Return for the Periods Ended January 31, 1997
6 MONTHS 12 MONTHS
-------- ---------
ALLIANCE GLOBAL SMALL CAP FUND
Class A 13.89% 19.99%
Class B 13.33 19.05
Class C 13.30 19.01
MSCI WORLD INDEX 11.18 12.81
LIPPER GLOBAL SMALL COMPANY
FUNDS AVERAGE 9.39 15.99
* TOTAL RETURNS ARE BASED ON THE NET ASSET VALUE OF EACH CLASS OF SHARES AS OF
1/31/97. THE TOTAL RETURN FOR ADVISOR CLASS SHARES WILL DIFFER DUE TO DIFFERENT
EXPENSES ASSOCIATED WITH THAT CLASS. RETURNS FOR THE FUND AND ITS COMPARATIVE
INDICES INCLUDE THE REINVESTMENT OF ANY DISTRIBUTIONS PAID DURING THE PERIOD.
FOR ADDITIONAL PERFORMANCE INFORMATION, PLEASE SEE PAGE 3.
The Fund's superior performance relative to the benchmarks was primarily driven
by growth stocks, which have done exceptionally well in a global environment of
low inflation, stable prices, and low interest rates.
AREAS OF U.S. INVESTMENT
Within the energy sector, we continue to see rising daily rates for offshore
drilling rigs. At the same time, the worldwide shortage of offshore drilling
rigs is becoming increasingly apparent to the investment community. Following
strong performance in 1995, drilling companies were again one of the best
performing equity sectors in 1996. We particularly like Parker Drilling and
Rowan Companies. We also believe the outlook for the U.S. refining business is
positive and have invested in Valero Energy.
The Fund has also benefited from its positions in the lodging sector. We have
purchased holdings in three companies which offer business and leisure
travelers accommodations on an extended basis. While the average stay in these
facilities is six weeks, approximately a quarter of all guests stay at least
six months. Holdings servicing this new and rapidly expanding market are:
Extended Stay America, Suburban Lodges of America, and Studio Plus Hotels.
Footwear and apparel companies have continued to report strong earnings.
Holdings in Nine West Group and Timberland have added to the Portfolio's gains.
Trends favoring casual wear have likewise benefited our positions in Tommy
Hilfiger and Jones Apparel Group.
With higher oil prices, the airline industry has suffered and our exposure in
this area hurt performance during the last several months. Nevertheless, we
continue to own Continental Airlines, Alaska Air Group, and America West
Holdings. Airplanes are flying with record average passenger loads--71% in 1996
and 66% in 1995. These are the highest industry load factors since World War
II. Last year was the first time in several years airlines were generally
profitable, and we believe we are in the third year of a positive, multi-year
cycle for the industry. Airlines are using their cash flow to pay down debt and
restructure their balance sheets. As demand outpaces capacity growth, pricing
power is increasing. This contrasts sharply with past cycles when airlines used
profits to buy more planes and increase capacity in order to maximize revenue
growth, only to erode their pricing power.
INTERNATIONAL INVESTMENTS
The Fund's traditional emphasis on growth companies resulted in strong
performance from our European holdings. Scandinavian and Spanish issues
performed particularly well. We are selling some long-term growth holdings
which have reached lofty valuations in order to buy capital goods and
quasi-cyclical shares.
1
ALLIANCE GLOBAL SMALL CAP FUND
_______________________________________________________________________________
Despite significant reductions in our Japanese weightings during the fourth
quarter, the Fund's Japanese exposure slowed overall performance. Positions in
pharmaceuticals, technology and consumer finance stocks provided solid gains.
We have been selling domestic cyclical issues in favor of globally competitive
exporters since November.
In developing markets, Hong Kong property issues and Mexican consumer shares
were our best performers. We continue to selectively buy emerging market
companies which we believe can produce significant positive earnings surprises
for the foreseeable future.
MARKET OUTLOOK
Steady, moderate economic growth is expected in most developed economies for
1997. Continued evidence of success in containing inflation despite ongoing
economic recovery could result in further interest rate declines and resultant
gains in global bond and equity markets. Stronger economic growth appears
likely in most developing markets.
Our outlook for the U.S. economy and U.S. equities remains positive. However,
an increase in interest rates would put some pressure on price/earnings ratios,
which means that stocks with higher P/Es could become vulnerable. As a result,
we continue to focus on the underlying earnings of each company, working to
avoid the risk of unsustainable valuations.
The continental European growth perspective is heavily dependent on interest
rate reductions and competitive currencies. Continental bond markets are
underpinned by the belief that a core group of countries is likely to form an
European Monetary Union in 1999. Central banks are allowing their currencies to
devalue versus the dollar in order to boost exports. Corporate managements have
adopted the American restructuring mantra, which is expected to boost earnings
prospects for their companies.
Japanese consumers will decide the fate of their economy. Personal taxes have
been raised by October's newly elected government and public works spending
significantly reduced. Unless corporations decide to reallocate investment for
production facilities back to Japan, growth may fail to match that of Europe or
the U.S.
Developing market growth rates should exceed those of the major economies.
China is boosting money supply to accelerate economic development and the
prospects for the smaller southeast Asian economies should follow. Brazilian,
Argentine, and Mexican growth are also likely to accelerate this year.
IN SUMMARY
While we are concerned by the historically high valuations being accorded
growth stocks, we continue to believe we can identify attractive investment
ideas around the globe.
As always, we appreciate your investment in the Global Small Cap Fund and look
forward to reporting its progress to you in coming periods.
Sincerely,
John D. Carifa
Chairman and President
Alden M. Stewart
Senior Vice President
SHARES OF THE FUND ARE NOT DEPOSITS OR OBLIGATIONS OF, GUARANTEED OR ENDORSED
BY, ANY BANK; FURTHER, SUCH SHARES ARE NOT FEDERALLY INSURED BY THE FEDERAL
DEPOSIT INSURANCE CORPORATION, THE FEDERAL RESERVE BOARD, OR ANY OTHER AGENCY.
SHARES OF THE FUND INVOLVE INVESTMENT RISKS, INCLUDING THE POSSIBLE LOSS OF
PRINCIPAL.
2
INVESTMENT OBJECTIVE AND POLICIES ALLIANCE GLOBAL SMALL CAP FUND
_______________________________________________________________________________
Alliance Global Small Cap Fund seeks long-term growth of capital. It invests
principally in a diversified global portfolio of equity securities issued by
small capitalization companies.
INVESTMENT RESULTS
_______________________________________________________________________________
AVERAGE ANNUAL TOTAL RETURN AS OF JANUARY 31, 1997
CLASS A SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
------------ ------------
. One Year +19.99% +14.88%
. Five Years +10.30% +9.35%
. Ten Years +8.05% +7.58%
CLASS B SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
------------ ------------
. One Year +19.05% +15.05%
. Five Years +9.50% +9.50%
. Since Inception* +10.56% +10.56%
CLASS C SHARES
WITHOUT WITH
SALES CHARGE SALES CHARGE
------------ ------------
. One Year +19.01% +18.01%
. Since Inception* +14.72% +14.72%
The average annual total returns reflect reinvestment 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);
and for Class C shares (1% year 1). Returns for Class A shares do not reflect
the imposition of the 1 year 1% contingent deferred sales charge for accounts
over $1,000,000. Total return for Advisor Class shares will differ due to
different expenses associated with that class.
Past performance does not guarantee future results. Investment return and
principal value will fluctuate so that an investor's shares, when redeemed, may
be worth more or less than their original cost.
* Inception: 9/17/90, Class B; 5/3/93, Class C.
3
TEN LARGEST HOLDINGS
JANUARY 31, 1997 (UNAUDITED) ALLIANCE GLOBAL SMALL CAP FUND
_______________________________________________________________________________
% OF NET
COMPANY COUNTRY U.S.$ VALUE ASSETS
- -------------------------------------------------------------------------------
Team Rental Group, Inc. United States $2,000,700 1.8%
Nine West Group, Inc. United States 1,910,125 1.8
Omi Corp. United States 1,729,350 1.6
Mohawk Industries, Inc. United States 1,225,700 1.1
Rowan Cos., Inc. United States 1,148,875 1.0
Valero Energy Corp. United States 1,103,625 1.0
Crompton and Knowles Corp. United States 1,085,625 1.0
Telephone and Data Systems, Inc. United States 1,071,313 1.0
Geltex Pharmaceuticals, Inc. United States 1,068,200 1.0
TeleSpectrum Worldwide, Inc. United States 1,052,912 1.0
$13,396,425 12.3%
MAJOR PORTFOLIO CHANGES
SIX MONTHS ENDED JANUARY 31, 1997 (UNAUDITED)
_______________________________________________________________________________
SHARES
- -------------------------------------------------------------------------------
HOLDINGS
PURCHASES COUNTRY BOUGHT 1/31/97
- -------------------------------------------------------------------------------
AK Steel Holding Corp. United States 23,500 23,500
Evergreen Media Corp. United States 32,700 32,700
Hexcel Corp. United States 46,900 46,900
International Specialty Products, Inc. United States 71,200 71,200
Omi Corp. United States 164,700 164,700
Parker Drilling Co. United States 98,400 98,400
Taubman Centers, Inc. United States 67,400 67,400
Team Rental Group, Inc. United States 40,800 74,100
TeleSpectrum Worldwide, Inc. United States 64,300 64,300
Valero Energy Corp. United States 32,700 32,700
HOLDINGS
SALES COUNTRY SOLD 1/31/97
- -------------------------------------------------------------------------------
Diamond Offshore Drilling, Inc. United States 22,052 -0-
Healthsouth Corp. United States 26,868 -0-
Host Marriott Corp. United States 79,400 -0-
La Quinta Inns, Inc. United States 33,000 -0-
Loewen Group, Inc. Canada 26,600 -0-
Noble Drilling Corp. United States 52,500 -0-
Office Max, Inc. United States 82,800 -0-
Republic Industries, Inc. United States 51,800 -0-
USA Waste Services, Inc. United States 31,500 -0-
Xircom, Inc. United States 34,600 -0-
4
TEN LARGEST COUNTRY HOLDINGS
JANUARY 31, 1997 (UNAUDITED) ALLIANCE GLOBAL SMALL CAP FUND
_______________________________________________________________________________
COUNTRY VALUE PERCENT OF NET ASSETS
- ---------------------------------------------------------------
United States $50,420,665 46.3%
Japan 12,892,429 11.9
United Kingdom 5,615,388 5.2
Sweden 2,541,606 2.3
Netherlands 2,390,095 2.2
Norway 2,225,027 2.1
Australia 1,928,424 1.8
Spain 1,853,230 1.7
Germany 1,846,437 1.7
France 1,781,682 1.6
$83,494,983 76.8%
TEN LARGEST INDUSTRY HOLDINGS
JANUARY 31, 1997 (UNAUDITED)
_______________________________________________________________________________
PERCENT OF
INDUSTRY VALUE NET ASSETS
- -------------------------------------------------------------------------------
Oil & Gas Services $ 6,664,579 6.1%
Drugs, Hospital Supplies, Medical Services & Products 5,970,663 5.5
Chemicals 5,073,601 4.7
Transportation & Shipping 4,962,974 4.6
Retail 4,394,149 4.0
Telecommunications 4,338,787 4.0
Electronics 4,320,476 4.0
Restaurants & Lodging 4,020,993 3.7
Utility 3,825,718 3.5
Machinery 3,519,692 3.2
$47,091,632 43.3%
5
PORTFOLIO OF INVESTMENTS
JANUARY 31, 1997 (UNAUDITED) ALLIANCE GLOBAL SMALL CAP FUND
_______________________________________________________________________________
COMPANY SHARES U.S. $ VALUE
- -------------------------------------------------------------------------
COMMON STOCKS & OTHER INVESTMENTS-91.4%
UNITED STATES INVESTMENTS-46.3%
BASIC INDUSTRIES-17.3%
ADVERTISING-1.9%
Ha Lo Industries, Inc. (a) 22,987 $ 580,422
Outdoor Systems, Inc. (a) 15,800 475,975
TeleSpectrum Worldwide, Inc. (a) 64,300 1,052,912
------------
2,109,309
BUSINESS SERVICES-1.8%
Team Rental Group, Inc. (a) 74,100 2,000,700
CHEMICALS-3.7%
Crompton and Knowles Corp. 57,900 1,085,625
Cytec Industries, Inc. (a) 15,100 602,113
Hexcel Corp. (a) 46,900 879,375
International Specialty Products, Inc. (a) 71,200 925,600
Polymer Group, Inc. (a) 34,800 495,900
------------
3,988,613
MACHINERY-0.2%
Rofin Sinar Technologies, Inc. (a) 20,000 237,500
MINING & METALS-3.0%
AK Steel Holding Corp. 23,500 945,875
Century Aluminum Co. 39,100 733,125
Steel Dynamics, Inc. (a) 37,600 874,200
Titanium Metals Corp. (a) 19,400 569,875
Uranium Resources, Inc. (a) 11,500 89,125
------------
3,212,200
POLLUTION CONTROL-1.5%
American Disposal Services, Inc. (a) 21,700 379,750
Superior Services, Inc. (a) 32,300 613,700
United Waste Systems, Inc. (a) 18,000 681,750
------------
1,675,200
TEXTILE PRODUCTS-1.5%
Mohawk Industries, Inc. (a) 47,600 1,225,700
Unifi, Inc. 13,500 411,750
------------
1,637,450
TRANSPORTATION & SHIPPING-3.7%
Alaska Air Group, Inc. (a) 18,900 408,712
America West Holding Corp. (a) 25,900 385,263
Continental Airlines, Inc. (a) 28,300 788,862
Genesee & Wyoming, Inc. (a) 6,200 199,950
Omi Corp. (a) 164,700 1,729,350
Xtra Corp. 11,800 500,025
------------
4,012,162
------------
18,873,134
CONSUMER PRODUCTS, SERVICES & STAPLES-13.9%
APPAREL-1.7%
Jones Apparel Group, Inc. (a) 16,900 578,825
Mossimo, Inc. (a) 1,900 18,288
Timberland Co. (a) 8,000 355,000
Tommy Hilfiger Corp. (a) 17,900 917,375
------------
1,869,488
AUTO & RELATED-0.9%
Miller Industries, Inc. (a) 17,200 348,300
Ugly Duckling Corp. (a) 32,100 682,125
------------
1,030,425
BROADCASTING & CABLE-1.3%
Cable Design Technologies Corp. (a) 13,000 396,500
Evergreen Media Corp. (a) 32,700 1,013,700
Mecklermedia Corp. (a) 700 14,525
------------
1,424,725
CONSUMER PRODUCTS-0.1%
Marker International (a) 23,200 110,200
United Natural Foods, Inc. (a) 3,900 53,625
------------
163,825
6
ALLIANCE GLOBAL SMALL CAP FUND
_______________________________________________________________________________
COMPANY SHARES U.S. $ VALUE
- -------------------------------------------------------------------------
DIVERSIFIED-1.1%
International Alliance Services, Inc. (a) 72,300 $ 957,975
warrants, expiring 12/31/00 (a) 61,100 268,718
------------
1,226,693
DRUGS, HOSPITAL SUPPLIES, MEDICAL SERVICES
& PRODUCTS-3.0%
Centocor, Inc. (a) 20,900 799,425
Geltex Pharmaceuticals, Inc. (a) 43,600 1,068,200
Medimmune, Inc. (a) 22,100 350,837
National Surgery Centers, Inc. (a) 20,400 696,150
Regeneron Pharmaceuticals, Inc. (a) 33,500 326,625
------------
3,241,237
ENTERTAINMENT & LEISURE TIME-0.4%
Florida Panthers Holdings, Inc. (a) 14,600 469,025
FOREST PRODUCTS-0.9%
Buckeye Cellulose Corp. (a) 19,200 544,800
Hughes Supply, Inc. 11,000 380,875
------------
925,675
RESTAURANTS & LODGING-2.7%
Extended Stay America, Inc. (a) 20,000 362,500
Interstate Hotels Co. (a) 33,500 1,009,187
QPQ Corp. (a) 16,400 38,950
warrants, expiring 9/22/98 (a) 16,400 1,538
Studio Plus Hotels, Inc. (a) 26,000 552,500
Suburban Lodges of America, Inc. (a) 51,600 935,250
------------
2,899,925
RETAILING-1.8%
Nine West Group, Inc. (a) 37,000 1,910,125
------------
15,161,143
TECHNOLOGY-8.3%
COMMUNICATION & EQUIPMENT-0.4%
DSP Communications, Inc. (a) 19,600 438,550
COMPUTER EQUIPMENT-0.0%
Radius, Inc. (a) 151 66
COMPUTER SOFTWARE & SERVICES-2.3%
Applix, Inc. (a) 17,300 294,370
Comverse Technology, Inc. (a) 20,000 900,000
HMT Technology Corp. (a) 22,000 475,750
Premisys Communications, Inc. (a) 8,700 232,725
Read-Rite Corp. (a) 18,400 607,200
------------
2,510,045
ELECTRONICS-3.6%
Apogee Enterprises, Inc. 15,200 573,800
BMC Industries, Inc. 13,300 435,575
Credit Management Solutions, Inc. (a) 15,100 298,225
Harman International Industries, Inc. 17,900 830,112
IDT Corp. (a) 23,200 197,200
Infinity Financial Technology, Inc. (a) 6,300 129,150
Kent Electronics (a) 13,300 433,913
Lexmark International Group, Inc. (a) 14,800 368,150
Network General Corp. (a) 15,800 446,350
Systemsoft Corp. (a) 13,800 189,750
------------
3,902,225
TELECOMMUNICATIONS-0.7%
ICG Communications, Inc. (a) 22,361 385,727
Tadiran Telecommunications, Ltd. 16,600 336,150
------------
721,877
7
PORTFOLIO OF INVESTMENTS (CONTINUED) ALLIANCE GLOBAL SMALL CAP FUND
_______________________________________________________________________________
COMPANY SHARES U.S. $ VALUE
- -------------------------------------------------------------------------
TELEPHONE UTILITY-1.3%
Telephone and Data Systems, Inc. 28,100 $1,071,313
United States Cellular Corp. (a) 14,000 378,000
------------
1,449,313
------------
9,022,076
ENERGY-4.9%
OIL & GAS SERVICES-4.9%
Costilla Energy, Inc. (a) 45,200 678,000
KCS Energy, Inc. 13,800 536,475
Parker Drilling Co. (a) 98,400 959,400
Rowan Cos., Inc. (a) 45,500 1,148,875
Ultramar Diamond Shamrock 29,754 874,024
Valero Energy Corp. 32,700 1,103,625
------------
5,300,399
FINANCIAL SERVICES-1.9%
MORTGAGE BANKING-0.7%
Aames Financial Corp. 13,400 576,200
Firstfed America Bancorp, Inc. (a) 11,500 168,188
------------
744,388
REAL ESTATE-0.8%
Taubman Centers, Inc. 67,400 909,900
MISCELLANEOUS-0.4%
NAL Financial Group, Inc. (a) 56,500 409,625
------------
2,063,913
Total United States Investments
(cost $44,529,521) 50,420,665
FOREIGN INVESTMENTS-45.1%
ARGENTINA-0.1%
Quilmes Industrial Quinsa S.A. (ADR) 13,000 139,750
Beverages
AUSTRALIA-1.8%
AAPC, Ltd. 150,000 85,812
Hotels
Boral, Ltd. 20,000 51,869
Building Materials
Brambles Industries, Ltd. 20,000 340,198
Business Services
Cochlear, Ltd. (b) 43,600 120,391
Medical Devices
Gio Australia Holding 100,000 254,767
Insurance
Great Central Mines, Ltd. 30,000 71,854
Mining & Metals
Oil Search, Ltd. 150,000 295,194
Oil
Orogen Minerals, Ltd. (GDR)(a)(b) 17,000 378,590
Financial Services
Plutonic Resources 20,000 80,092
Metals & Mining
Spectrum Network (a)(b) 480,000 157,437
Telecommunications
WMC, Ltd. 15,000 92,220
Metals & Mining
------------
1,928,424
AUSTRIA-0.8%
Austria Mikro Systeme International AG 1,060 91,598
Semi-Conductors
Benckiser-Wasser-Technik AG 1,200 130,896
Chemicals
Ktm Motorradhldg (a) 3,000 181,597
Leisure Related
OMV AG 3,000 341,569
Oil-International
V.A. Technologies AG 1,000 150,158
Engineering & Construction
------------
895,818
8
ALLIANCE GLOBAL SMALL CAP FUND
_______________________________________________________________________________
COMPANY SHARES U.S. $ VALUE
- --------------------------------------------------------------------------
CANADA-0.6%
Accugraph Corp. (a) 17,000 $ 14,511
Computer Software
Architel Systems Corp. (a)(b) 14,400 101,536
Computer Software & Services
Cinar Films, Inc. Cl.B (ADR)(a) 5,000 127,500
Entertainment & Leisure
Istar Internet, Inc. (a)(b) 17,500 41,305
Computer Software & Services
Nelvana, Ltd. (a)(b) 8,000 131,819
Entertainment & Leisure
Prime Resources Group, Inc. 5,000 35,627
Mining & Metals
Renaissance Energy, Ltd. (a) 4,000 139,241
Oil & Gas Exploration
Royal Plastics Group, Ltd. (a)(b) 5,000 102,056
Building Materials
------------
693,595
CHILE-0.4%
Banco Santander (ADR) 7,000 115,500
Banks
Empresas Telex Chile, S.A. (ADR) 20,000 90,000
Telephone Utility
Enersis, S.A. Sponsored (ADR) 3,000 92,625
Utility/Electric
Santa Isabel, S.A. (ADR) 5,000 134,375
Retailing
------------
432,500
DENMARK-0.8%
Carli Gry International AS (a)(b) 7,965 406,976
Textile Products
Coloplast
B Dkk20 Regd 1,000 75,757
New Dkk20 Bonus Rts 14Feb 1,000 37,641
Medical Products
Novo Nordisk A.S. 2,400 222,963
Drugs
Scandinavian Mobility International (b) 5,200 90,787
Medical Products
------------
834,124
FINLAND-1.3%
Kone Corp. (b) 8,000 242,777
Machinery
Nokia AB OY Corp. pfd. 12,000 797,228
Communication Equipment
Orion-Yhtymne OY Cl.B 7,000 256,352
Medical Products
OY Tamro AB 12,500 77,918
Pharmaceutical Distribution
------------
1,374,275
FRANCE-1.6%
Accor 1,500 201,267
Restaurants & Lodging
Alcatel Alsthom (Cie Gen. de Electricite) 1,500 148,846
Electrical Equipment
Bouygues Offshore, S.A. (ADR)(a) 16,000 208,000
Oil & Gas Services
Coflexip, S.A. (ADR)(a) 7,700 213,675
Oil & Gas Services
9
PORTFOLIO OF INVESTMENTS (CONTINUED) ALLIANCE GLOBAL SMALL CAP FUND
_______________________________________________________________________________
COMPANY SHARES U.S. $ VALUE
- -------------------------------------------------------------------------
Compagnie Generale des Eaux 1,500 $ 192,304
Miscellaneous
Credit Local de France 2,000 179,267
Banks
Lafarge Coppee 2,200 132,936
Building Materials
Louis Dreyfus Citrus (a)(b) 7,200 220,335
Beverages
Michelin 2,000 114,839
Tire & Rubber
S T Dupont (a)(b) 5,000 170,213
Miscellaneous
------------
1,781,682
GERMANY-1.7%
Apcoa Parking AG (b)(c) 1,460 151,730
Business Services
Bayer AG (c) 3,000 114,073
Chemicals
Bus Berzelius Umwelt Service AG 8,000 116,885
Recycling Equipment
Deutsche Telekom AG (ADR)(a)(c) 20,400 379,950
Telecommunications
Fag Kugelfischer 2,400 35,505
Industrial Machinery
Fielmann AG pfd. (c) 13,000 381,465
Retail
Rheinhold & Mahla AG 300 27,143
Building & Related
SGL Carbon AG (b)(c) 4,000 528,915
Specialty Chemical
Veba A.G. 2,000 110,771
Utility/Electric
------------
1,846,437
GREECE-0.1%
Ote, SA 5,000 100,653
Utility/Telephone
HONG KONG-0.7%
China Travel International 300,000 148,084
Travel Services
First Sign International Holdings, Ltd. 260,000 76,332
Textile Products
HSBC Holdings Plc 6,000 138,986
Banks
Paul Y.-ITC Construction Holdings, Inc. 580,000 139,966
warrants, expiring 3/31/97 60,000 697
warrants, expiring 3/31/98 60,000 1,394
Building & Construction
Sino Land Co. 200,000 234,869
Real Estate
------------
740,328
INDIA-0.0%
Gujarat Narmada Valley
Fertilizers Co., Ltd. (GDR)(b) 4,000 13,937
Chemicals
Shriram Industrial Enterprises, Ltd. (GDR)(a) 15,000 19,500
Consumer Appliances
------------
33,437
INDONESIA-0.1%
Indonesian Satellite Corp. (ADR) 4,000 112,500
Telecommunications
IRELAND-0.8%
Crean (James) Plc 55,000 160,832
Multi-Industry
Fyffes Plc. 240,000 447,205
Food
Irish Continental Group Plc. 21,500 160,933
Transportation & Shipping
Jurys Hotel Group Plc. 30,000 141,902
Restaurants & Lodging
------------
910,872
10
ALLIANCE GLOBAL SMALL CAP FUND
_______________________________________________________________________________
COMPANY SHARES U.S. $ VALUE
- -------------------------------------------------------------------------
ITALY-1.5%
Eni S.p.A. (ADR) 3,000 $ 166,500
Oil & Gas Services
Fila Holding Sponsored (ADR) 3,000 205,500
Apparel
Industrie Natuzzi S.p.A. (ADR) 38,900 894,700
Household Products
Mediaset (a) 40,000 182,680
Broadcasting & Cable
Telecom Italia 40,000 119,053
Utility/Telephone
------------
1,568,433
JAPAN-11.9%
Akita Bank 6,000 32,414
Banking-Regional
Asahi Bank 14,000 95,839
Banking-Regional
Asahi Diamond Industrial (c) 14,420 122,501
Machinery
Asatsu, Inc. (c) 4,000 108,870
Professional Services
Bank of Tokyo-Mitsubishi, Ltd. (c) 15,250 223,886
Banks
Bridgestone Metalpha Corp. 2,000 16,001
Automobile Related
Canon, Inc. 3,000 63,590
Office Equipment
Capcom Co. 2,100 38,971
Computer Software
Credit Saison Co. (c) 15,100 321,316
Financial Services
Daibiru Corp. 7,000 63,508
Real Estate
Daiichi Corp. 1,000 16,578
Recycling Equipment
Daimon Co. 2,000 26,063
Retail
Dainippon Ink & Chemical, Inc. 8,000 $25,733
Chemicals
Daiseki Co. 2,000 44,373
Pollution Control
DDI Corp. (c) 28 171,586
Telecommunications
Doshisha Co. 600 8,017
Retail
Eiden Sakakiya Co. 7,000 59,466
Retail
Enix Corp. 2,000 42,558
Appliances
Enshu (a) 10,000 271
Industrial Machinery
Fcc Co., Ltd. (c) 4,000 107,551
Auto Parts
Fuji S Ware Abc 2,000 53,116
Computer Software
Fujikura (c) 20,000 150,934
Building Materials
Fujimi, Inc. 1,400 76,440
Electronics
Hachijuni Bank 3,000 26,475
Banks
Hirose Electric Co. (c) 4,000 209,823
Technology
Hitachi Metals, Ltd. 10,000 60,951
Steel
Hitachi Plant Engineering & Construction Co. 6,000 30,731
Engineering & Construction
Hokushin Co. 300 1,831
Building Materials
Home Wide Corp. 4,000 32,232
Retail
Honda Motor Co. 9,000 241,247
Automobiles
11
PORTFOLIO OF INVESTMENTS (CONTINUED) ALLIANCE GLOBAL SMALL CAP FUND
_______________________________________________________________________________
COMPANY SHARES U.S. $ VALUE
- -------------------------------------------------------------------------
Hoya Corp. 7,000 $ 280,012
Technology
Isetan Co. 16,000 166,275
Retail
Ishiguro Homa Co. 2,000 31,671
Retail-Toys
Ishihara Sangyo (a) 32,000 65,982
Chemicals
Ishikawajima-Harima Heavy Industries 12,000 47,210
Industrial Machinery
Isuzu Motors 10,000 39,837
Automobiles
Japan Airport Term (c) 10,800 112,236
Airlines
Japan Industrial Land Development 3,200 36,950
Building & Construction
Kajima Corp. 5,000 30,929
Building & Construction
Kaneshita Construction 7,000 52,250
Building & Construction
Kawasaki Heavy Industries 50,000 195,060
Aerospace & Defense
Kawasaki Kisen (a) 11,000 22,681
Transportation
Keyence Corp. 600 67,302
Machinery
Kikuchi Co. 3,000 34,393
Auto Parts
King Co. 16,000 61,759
Apparel
Koa Fire & Marine 10,000 40,991
Insurance
Mabuchi Motor Co. 3,400 168,254
Technology-Computer Peripherals
Makino Milling 10,000 61,693
Industrial Machinery
Mars Engineering 2,000 52,126
Computer Systems
Matsuda Sangyo 3,000 66,807
Environmental Services
Matsushita Electric Industrial Co., Ltd. 3,000 45,280
Appliances
Meitec Corp. 14,000 254,031
Software Services
Minebea Co. 17,000 135,725
Machinery
Mitsubishi Corp. 13,000 120,087
Diversified
Mitsubishi Estate 16,000 178,152
Real Estate
Mitsubishi Heavy Industries Ltd. 37,000 266,411
Industrial Machinery
Mitsubishi Trust and Bank 5,000 51,549
Banks
Mitsui Home Co. 9,000 90,560
Homebuilders
Namco 7,200 197,155
Leisure Related
Namura Shipbuilding 12,000 35,234
Machinery
Nanno Construction 8,000 47,111
Building & Construction
NEC Corp. 1,000 11,712
Technology
New Oji Paper Co., Ltd. 7,000 37,123
Paper & Forest Products
Ngk Spark Plug Co. 11,000 117,943
Semi-Conductors & Related
Nichiei Co. 4,400 311,732
Financial Services
Nichiha Corp. 12,600 200,569
Building Materials
12
ALLIANCE GLOBAL SMALL CAP FUND
_______________________________________________________________________________
COMPANY SHARES U.S. $ VALUE
- -------------------------------------------------------------------------
Nintendo Corp., Ltd. 3,000 $ 196,957
Leisure Related
Nippon Denwa Shset 9,000 71,261
Telecommunications
Nippon Electric Glass Co., Ltd. 6,000 81,158
Chemicals
Nippon Kanzai Co. 200 4,173
Building & Construction
Nippon Paper Industries Co. 9,000 40,307
Paper
Nippon TV Network 600 179,636
Broadcasting
Nireco Corp. 9,000 100,953
Machinery
Nissen Corp., Ltd. 1,200 5,938
Retail
Nitta Corp. 10,000 103,922
Machinery
Nitto Kohki Co. 4,500 135,841
Machinery
Noritsu Koki Co. 6,000 294,445
Photography
Ohmoto Gumi, Co. 3,400 39,259
Building & Construction
Oie Sangyo Co., Ltd 4,000 47,837
Food
Omron Corp. 14,000 227,473
Machinery
Oriental Construction 2,000 22,104
Building & Construction
Paris Miki, Inc. 4,800 148,460
Retail
Promise Co., Ltd. 3,400 141,614
Financial Services
PS Corp. 5,000 66,807
Building & Construction
Renown, Inc. (a) 28,000 62,122
Apparel
Ricoh Elemex Co., Ltd.(a) 2,000 26,393
Computer Peripherals
Rohm Co., Ltd. 2,000 131,139
Technology
Rohto Pharmaceuticals 4,000 34,641
Medical Products
Santen Pharmaceutical Co. 12,200 226,401
Drugs
Sanyo Chemical Industries 7,000 49,074
Chemicals
Sanyo Electric Co. 28,000 117,778
Appliances
Sanyo Engineering and Construction Co. 10,000 83,302
Electrical Industries
Sanyo Pax Co. 9,500 152,790
Packaging
Sanyo Shinpan Finance Co., Ltd. 2,000 112,170
Financial Services
Sato Corp. 9,000 152,171
Technology
Sekisui Chemical Co. 8,000 75,220
Chemicals
Seven-Eleven Japan 2,200 124,838
Retail-Food
Shiseido Co., Ltd. 9,000 104,664
Cosmetics
Shizuoka Bank 11,000 101,612
Banks
Sho Bond Corp. 10,000 292,796
Building & Construction
SMC Corp. 3,800 233,181
Industrial Machinery
Sodick Co. (a) 29,000 229,379
Industrial Machinery
Suido Kiko Kaisha (a) 1,000 6,021
Water Utility
Sumitomo Forestry 2,000 18,970
Forest Products
Sumitomo Metal Industries 85,000 185,080
Steel
13
PORTFOLIO OF INVESTMENTS (CONTINUED) ALLIANCE GLOBAL SMALL CAP FUND
_______________________________________________________________________________
COMPANY SHARES U.S. $ VALUE
- -------------------------------------------------------------------------
Taisho Pharmaceutical Co. 6,000 $ 136,583
Drugs
Takeda Chemical Industries 2,000 39,424
Drugs
Takefuji Corp. (a) 2,600 179,917
Financial Services
TDK Corp. 3,000 192,008
Technology
Toei Co. 8,000 45,132
Entertainment & Leisure
Tokyo Broadcasting 16,000 219,061
Broadcasting
Tokyo Electron, Ltd. 3,000 108,128
Semi-Conductors
Toso Co., Ltd. 9,000 120,252
Household Furnishings
Toyoda Gosei 10,000 59,384
Automobile Related
Toyota Corp. 3,000 77,446
Automobiles
Warabeya Nichiyo 3,000 25,980
Food
Wesco, Inc. 4,680 55,583
Building & Construction
Xebio Co. 2,200 51,895
Retail
Yamaichi Securities Co. 18,000 65,471
Financial Services
Yamanouchi Pharmaceutical 12,000 224,669
Drugs
Yamato Transport 32,000 295,600
Transportation
Yaskawa Electric Corp. (a) 24,000 74,824
Machinery
Yokogawa Electric 38,000 285,521
Electrical Equipment
------------
12,892,429
KOREA-0.4%
Korea Mobile Telecommunications Corp. (ADR) 31,930 474,959
Telecommunications
LUXEMBOURG-0.7%
Millicom International Cellular, S.A. (a) 21,700 797,475
Telecommunications
MALAYSIA-1.2%
Hong Leong Bank Berhad 30,000 104,988
Banks
Ioi Corp. 20,000 35,398
Agriculture
Kim Hin Industry 10,000 21,722
Building Materials
Lingkaran Trans Ko (a)(b) 74,000 153,298
Utility/Gas
Mancon Berhad 21,333 60,069
Building & Construction
Metacorp Berhad 35,000 99,960
Engineering & Construction
Pacific & Orient 50,000 115,648
Insurance
RJ Reynolds Berhad 70,000 174,578
Tobacco
Sap Holdings Berhad 10,000 40,024
Real Estate
Sime Darby Berhad 50,000 186,042
Diversified
Sriwani Holdings Bhd 80,000 249,396
Retailing
Star Publications 10,000 46,661
Printing & Publishing
-----------
1,287,784
14
ALLIANCE GLOBAL SMALL CAP FUND
_______________________________________________________________________________
COMPANY SHARES U.S. $ VALUE
- -------------------------------------------------------------------------
MEXICO-0.3%
Grupo Elektra 20,000 $ 179,063
Retail
Grupo Industrial Durango, S.A. (ADR)(a) 12,000 130,500
Paper & Forest Products
International de Ceramica (a) 34,915 53,588
Ceramic Tiles
------------
363,151
NETHERLANDS-2.2%
Aegon N.V. (c) 7,000 428,952
Insurance
BAM Groep N.V. (c) 800 49,633
Building & Construction
Content Beheer N.V. (b)(c) 10,000 328,163
Temporary Help
Elsevier N.V. (c) 18,000 277,225
Printing & Publishing
Fortis Amev N.V. (c) 10,000 367,347
Insurance
IHC Caland N.V. (c) 4,000 234,884
Machinery
KLM Royal Dutch Airlines (c) 9,000 269,388
Airlines
Kon Ptt Nederland (c) 8,000 290,830
Telephone Utility
Nutricia Verenidge Bedrijuen (b)(c) 1,000 143,673
Food
------------
2,390,095
NEW ZEALAND-0.3%
Helicopter Line 50,000 89,489
Leisure Related
Lion Nathan, Ltd. 10,000 25,814
Beverages
Warehouse Group 62,500 148,430
Retail
------------
263,733
NORWAY-2.1%
Alvern A/S (a) 50,000 640,412
Advertising
Fokus Bank 4,000 29,629
Banks
Hafslund ASA 4,000 28,209
Utility/Electric
Nycomed (a) 2,000 35,184
Medical Supplies
Seatex Garex ASA (a) 50,000 341,811
Electronics
Sparebanken NOR 8,000 254,313
Banks
Tomra Systems AS 40,070 779,115
Environmental Services
Western Bulk Shipping AS (b) 26,000 116,354
Shipping
------------
2,225,027
PANAMA-0.8%
Banco Latinoamericano de Exportaciones,
S.A. (ADR) 17,000 877,625
Financial Services
PERU-0.5%
Banco Wiese Sponsored (ADR) 15,000 86,250
Banks
Telefonica del Peru, S.A. (ADR) 20,000 432,500
Telecommunications
------------
518,750
PHILIPPINES-0.4%
Alsons Cement 500,000 129,032
Building Materials
Asian Terminals, Inc. 493,333 84,250
Shipping
International Container (a) 320,000 197,344
Shipping
------------
410,626
15
PORTFOLIO OF INVESTMENTS (CONTINUED) ALLIANCE GLOBAL SMALL CAP FUND
_______________________________________________________________________________
COMPANY SHARES U.S. $ VALUE
- -------------------------------------------------------------------------
PORTUGAL-0.4%
Bco Comm Portugues 7,000 $ 96,866
Communications
Telecel-Comunicacaoes Pesscasis, S.A. (a) 5,000 357,535
Telecommunications
TVI Televisao Independente (a)(d) 7,800 21,873
Broadcasting & Cable
------------
476,274
SINGAPORE-0.6%
City Developments 15,000 150,234
Real Estate
Fraser & Neave, Ltd. 40,000 389,260
Beverages
Lim Kah Ngam, Ltd. 30,000 33,457
Multi-Industry
Overseas Union Bank, Ltd. 2,000 16,196
Banks
Singapore Airlines, Ltd. 10,000 93,763
Airlines
------------
682,910
SOUTH KOREA-0.3%
Samsung Electronics Co., Ltd. (ADR)(GDR)(b) 10,912 228,388
bonus shares (GDR)(a)(b) 1,089 50,094
Technology
------------
278,482
SPAIN-1.7%
Banco Popular Esp 700 127,369
Banks
Centros Commerciales Continente, S.A. 5,000 88,451
Retail
Construcciones Y Aux de Ferr 2,000 73,649
Railroad Transportation
Corporacion Mapfre
Esp500 (Regd) 4,500 263,836
Esp500 Rfd 27May96 452 26,305
Insurance
Gas Y Electricidad 9,000 484,783
Utility/Electric
Hidroel Cantabrico 2,000 67,872
Utility/Electric
Iberdrola II, S.A. 20,000 238,998
Utility/Electric
Portland Valderriv 1,000 72,205
Building Materials
Repsol, S.A. 5,000 198,202
Energy
Telefonica de Espana 6,000 140,799
Telephone Utility
Viscofan Envolturas Celulosicas 4,000 70,761
Food
------------
1,853,230
SWEDEN-2.3%
Autoliv AB 1,000 43,308
Automobile Related
Autoliv AB Sponsored (ADR)(a)(b) 7,800 338,147
Automobile Related
Dahl International AB (a)(b) 14,000 274,631
Building Materials
Kalmar Industries AB (b) 16,000 260,817
Machinery
Netcom Systems AB (a)(b) 22,000 401,171
Telecommunications
Scandic Hotels AB (a)(b) 35,100 577,016
Restaurants & Lodging
Skandia Foersaekrings AB 5,000 134,691
Insurance
SKF AB 5,000 113,969
Machinery
Sparbanken Sverige AB 8,000 127,093
Banks
Swedish Match (a) 80,000 270,763
Tobacco
------------
2,541,606
16
ALLIANCE GLOBAL SMALL CAP FUND
_______________________________________________________________________________
COMPANY SHARES U.S. $ VALUE
- -------------------------------------------------------------------------
SWITZERLAND-1.1%
BBC Brown Boveri AG 300 $ 384,318
Electrical Equipment
Novartis A.G. (a) 140 160,526
Medical Products
Roche Holdings AG, Ltd. 60 527,698
Drugs
Tag Heuer International, S.A. (ADR)(a) 11,600 159,500
Retailing
------------
1,232,042
THAILAND-0.4%
CMIC Finance & Security Public Co. 110,000 118,873
Financial Services
Nawarat Patanakarn 20,000 13,508
Building & Construction
Siam Makro 10,000 43,998
Retail
Thai Engine Manufacturing 40,000 297,955
Machinery
------------
474,334
UNITED KINGDOM-5.2%
Asda Group Plc 20,000 38,776
Retailing
Barclays Plc 10,000 185,066
Banks
British Airways Plc 4,000 38,007
Airlines
Caird Group Plc. 3,000 29,707
Environmental Services
Carlton Communications Plc 9,000 80,324
Broadcasting
Dixons Group Plc. 25,000 208,951
Retail
Doncasters Plc (ADR)(a) 26,300 516,137
Aerospace & Defense
Filtronic Comtec Plc 90,000 465,791
Communication Equipment
Grand Metropolitan Plc 10,000 74,027
Food
Guinness Plc. 65,000 450,969
Beverages
Harvey Nichols Group Plc (b) 20,000 105,752
Retail
House of Fraser Plc 40,000 91,011
Retail
Imperial Tobacco Group Plc (a) 20,000 130,748
Tobacco
M.S. International Plc 325,000 119,772
Machinery
McBride Plc. 30,000 67,297
Household Products
Mirror Group Plc 20,000 67,297
Newspapers
Misys Plc 10,000 175,453
Computer Software & Services
National Grid Group Plc 40,000 133,312
Electric Utilities
National Power Plc 40,000 319,180
Electric Utility
Powerscreen International Plc 40,000 369,172
Recycling Equipment
Rank Group Plc 10,000 70,341
Leisure Related
Reed International Plc 6,000 104,214
Printing & Publishing
Rentokil Initial Plc. 50,000 367,329
Environmental Services
Resort Hotels Plc (a)(d) 1,000,000 -0-
Restaurants & Lodging
Siebe Plc 8,000 134,594
Machinery
Thistle Hotels Plc (a)(b) 37,600 115,071
Restaurants & Lodging
17
PORTFOLIO OF INVESTMENTS (CONTINUED) ALLIANCE GLOBAL SMALL CAP FUND
_______________________________________________________________________________
COMPANY SHARES U.S. $ VALUE
- -------------------------------------------------------------------------
Tomkins Plc. 35,000 $ 157,026
Diversified
Vodafone Group Plc 60,000 260,535
Telecommunications
WPP Group Plc. 70,000 277,039
Advertising
Zeneca Group Plc 16,000 462,490
Drugs
------------
5,615,388
Total Foreign Investments
(cost $46,967,181) 49,048,748
Total Common Stocks & Other Investments
(cost $91,496,702) 99,469,413
PRINCIPAL
AMOUNT
COMPANY (000) U.S. $ VALUE
- -------------------------------------------------------------------------
COMMERCIAL PAPER-9.7%
American Express Co.
5.37%, 2/06/97 $4,200 $ 4,196,867
General Electric Capital Corp.
5.37%, 2/07/97 4,200 4,196,241
Prudential Funding
5.34%, 2/05/97 2,100 2,098,754
Total Commercial Paper
(amortized cost $10,491,863) 10,491,862
TOTAL INVESTMENTS -101.1%
(cost $101,988,565) 109,961,275
Other assets less liabilities-(1.1%) (1,183,398)
NET ASSETS-100% $108,777,877
(a) Non-income producing security.
(b) Securities are exempt from registration under Rule 144A of the Securities
Act of 1933. These may be resold in transactions exempt from registration,
normally to qualified institutional buyers. At January 31, 1997, these
securities amounted to $5,951,379 representing 5.47% of net assets.
(c) Securities with an aggregate market value of $5,474,931 segregated to
collateralize foreign currency contracts.
(d) Illiquid security, valued at fair market value (see Note A).
Glossary of Terms:
ADR - American depository receipt
GDR - Global depository receipt
See notes to financial statements.
18
STATEMENT OF ASSETS AND LIABILITIES
JANUARY 31, 1997 (UNAUDITED) ALLIANCE GLOBAL SMALL CAP FUND
_______________________________________________________________________________
ASSETS
Investments in securities, at value (cost $101,988,565) $109,961,275
Cash, at value (cost $360,311) 352,513
Receivable for investment securities and foreign currency sold 1,572,867
Receivable for capital stock sold 277,171
Unrealized appreciation of forward exchange currency contracts 256,847
Dividends and interest receivable 34,141
Foreign taxes receivable 19,469
Total assets 112,474,283
LIABILITIES
Payable for investment securities and foreign currency purchased 2,786,381
Unclaimed dividends 634,139
Management fee payable 89,497
Distribution fee payable 42,827
Payable for capital stock redeemed 12,465
Accrued expenses 131,097
Total liabilities 3,696,406
NET ASSETS $108,777,877
COMPOSITION OF NET ASSETS
Capital stock, at par $ 95,651
Additional paid-in capital 94,476,093
Accumulated net investment loss (808,785)
Accumulated net realized gain on investments and foreign
currency transactions 6,795,162
Net unrealized appreciation of investments and foreign
currency denominated assets and liabilities 8,219,756
$108,777,877
CALCULATION OF MAXIMUM OFFERING PRICE
CLASS A SHARES
Net asset value and redemption price per share ($77,021,647/
6,647,336 shares of capital stock issued and outstanding) $11.59
Sales charge--4.25% of public offering price .51
Maximum offering price $12.10
CLASS B SHARES
Net asset value and offering price per share ($24,616,016/
2,264,224 shares of capital stock issued and outstanding) $10.87
CLASS C SHARES
Net asset value and offering price per share ($6,786,479/
622,997 shares of capital stock issued and outstanding) $10.89
ADVISOR CLASS SHARES
Net asset value, redemption and offering price per share($353,735
/30,515 shares of capital stock issued and outstanding) $11.59
See notes to financial statements.
19
STATEMENT OF OPERATIONS
JANUARY 31, 1997 (UNAUDITED) ALLIANCE GLOBAL SMALL CAP FUND
_______________________________________________________________________________
INVESTMENT INCOME
Dividends (net of foreign taxes withheld of $32,563) $260,854
Interest 194,572 $ 455,426
EXPENSES
Management fee 495,310
Distribution fee - Class A 96,419
Distribution fee - Class B 93,962
Distribution fee - Class C 27,913
Custodian 170,063
Transfer agency 148,919
Administrative 73,500
Audit and legal 48,958
Printing 43,948
Registration 26,116
Directors' fees 16,000
Miscellaneous 23,103
Total expenses 1,264,211
Net investment loss (808,785)
REALIZED AND UNREALIZED GAIN ON INVESTMENTS AND
FOREIGN CURRENCY
Net realized gain on investments 6,669,905
Net realized gain on foreign currency transactions 233,809
Net change in unrealized appreciation of investments 5,766,684
Net change in unrealized depreciation of foreign
currency denominated assets and liabilities 475,754
Net gain on investments and foreign currency transactions 13,146,152
NET INCREASE IN NET ASSETS FROM OPERATIONS $12,337,367
See notes to financial statements.
20
STATEMENT OF CHANGES IN NET ASSETS ALLIANCE GLOBAL SMALL CAP FUND
_______________________________________________________________________________
SIX MONTHS ENDED YEAR ENDED
JANUARY 31, 1997 JULY 31,
(UNAUDITED) 1996
-------------- ------------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment loss $ (808,785) $(1,012,261)
Net realized gain on investments and foreign
currency transactions 6,903,714 16,929,870
Net change in unrealized appreciation
(depreciation) of investments and foreign
currency denominated assets and liabilities 6,242,438 (4,726,150)
Net increase in net assets from operations 12,337,367 11,191,459
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net realized gain on investments
Class A (9,231,726) (2,964,670)
Class B (2,729,321) (331,138)
Class C (783,298) (74,101)
Advisor Class (38,258) -0-
CAPITAL STOCK TRANSACTIONS
Net increase 22,233,357 12,540,287
Total increase 21,788,121 20,361,837
NET ASSETS
Beginning of year 86,989,756 66,627,919
End of period $108,777,877 $ 86,989,756
See notes to financial statements.
21
NOTES TO FINANCIAL STATEMENTS
JANUARY 31, 1997 (UNAUDITED) ALLIANCE GLOBAL SMALL CAP FUND
_______________________________________________________________________________
NOTE A: SIGNIFICANT ACCOUNTING POLICIES
Alliance Global Small Cap Fund (the "Fund") is registered under the Investment
Company Act of 1940 as a diversified, open-end management investment company.
On April 15, 1996 the Board of Directors approved the creation of a fourth
class of shares, Advisor Class Shares. The Fund offers Class A, Class B, Class
C and Advisor Class shares. Class A shares are sold with a front-end sales
charge of up to 4.25% for purchases not exceeding $1,000,000. With respect to
purchases of $1,000,000 or more, Class A shares redeemed within one year of
purchase will be subject to a contingent deferred sales charge of 1%. Class B
shares are currently sold with a contingent deferred sales charge which
declines from 4% 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 Cshares purchased on or after
July 1, 1996, are subject to a contingent deferred sales charge of 1% 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 soley to
investors participating in fee-based programs. 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 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. Restricted securities,
illiquid securities and 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 determined 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, 1997.
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 on foreign currency transactions represents net foreign
exchange gains from holding of foreign currencies, currency gains or losses
realized between the trade and settlement dates on foreign investment
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
net change in unrealized depreciation of foreign currency denominated assets
and liabilities.
3. 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 the securities are
purchased or sold. Investment 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.
22
ALLIANCE GLOBAL SMALL CAP FUND
_______________________________________________________________________________
5. DIVIDENDS AND DISTRIBUTIONS
Dividends and distributions to shareholders are recorded on the ex-dividend
date and are determined in accordance with income tax regulations.
NOTE B: MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Under an investment advisory agreement the Fund pays Alliance Capital
Management L.P., (the "Adviser"), 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.
Pursuant to the management agreement, the Fund paid $73,500 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, 1997.
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 $121,435 for the six months ended January 31, 1997.
Alliance Fund Distributors, Inc. (a wholly-owned subsidiary of the Adviser)
serves as the Distributor of the Fund's shares. The Distributor received
front-end sales charges of $7,947 from the sales of Class A shares and $9,061
and $364 in contingent deferred sales charges imposed upon redemptions by
shareholders of Class B and Class C, respectively, for the six months ended
January 31, 1997.
Brokerage commissions paid on securities transactions for the six months ended
January 31, 1997 amounted to $248,248, 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. There is no distribution fee on the Advisor Class 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 $1,712,650, and $526,567 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.
23
NOTES TO FINANCIAL STATEMENTS (CONTINUED) ALLIANCE GLOBAL SMALL CAP FUND
_______________________________________________________________________________
NOTE D: INVESTMENT TRANSACTIONS
Purchases and sales of investment securities (excluding short-term investments
and U.S. government securities) aggregated $61,149,789 and $56,677,541,
respectively, for the six months ended January 31, 1997. There were no
purchases or sales of U.S. Government and government agency obligations for the
six months ended January 31, 1997.
At January 31, 1997, the cost of investments for federal income tax purposes
was $101,988,565. Accordingly, gross unrealized appreciation of investments was
$16,382,822 and gross unrealized depreciation of investments was $8,410,112,
resulting in net unrealized appreciation of $7,972,710.
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 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.
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. The face or contract amount, in U.S.
dollars, as reflected in the following table, reflects the total exposure the
Fund has in that particular currency contract.
At January 31, 1997, the Fund had outstanding forward exchange currency
contracts to sell foreign currencies against the U.S. dollar, as follows:
CONTRACT VALUE ON U.S. $
AMOUNT ORIGINATION CURRENT UNREALIZED
(000) DATE VALUE APPRECIATION
-------- ------------ ---------- ------------
FOREIGN CURRENCY SALE CONTRACTS
Deutsche Mark, expiring 5/21/97 2,500 $1,581,278 $1,539,417 $ 41,861
Japanese Yen, expiring 3/12/97 182,000 1,659,070 1,509,484 149,586
Netherland Guilder, expiring
5/21/97 4,400 2,478,314 2,412,914 65,400
--------
$256,847
24
ALLIANCE GLOBAL SMALL CAP FUND
_______________________________________________________________________________
NOTE E: CAPITAL STOCK
There are 87,500,000 shares of $.01 par value capital stock authorized, divided
into four classes, designated Class A, Class B, Class C, and Advisor Class
shares. Class A, Class C and Advisor Class 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:
SHARES AMOUNT
--------------------------- ------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
JAN. 31,1997 JULY 31, JAN. 31,1997 JULY 31,
(UNAUDITED) 1996 (UNAUDITED) 1996
------------ ------------ -------------- --------------
Class A
Shares sold 464,555 666,687 $ 5,569,644 $ 7,703,615
Shares issued in
reinvestment of
distributions 632,330 214,027 6,980,925 2,238,721
Shares converted
from Class B 22,999 29,137 279,159 365,303
Shares redeemed (380,974) (788,775) (4,624,007) (8,976,608)
Net increase 738,910 121,076 $ 8,205,721 $ 1,331,031
CLASS B
Shares sold 1,075,423 1,035,693 $12,281,464 $11,503,034
Shares issued in
reinvestment of
distributions 179,179 21,596 1,858,085 215,523
Shares converted
to Class A (24,359) (30,676) (279,159) (365,303)
Shares redeemed (257,872) (253,960) (3,002,727) (2,731,200)
Net increase 972,371 772,653 $10,857,663 $ 8,622,054
CLASS C
Shares sold 394,269 501,624 $ 4,458,897 $ 5,589,123
Shares issued in
reinvestment of
distributions 37,786 4,299 392,592 42,946
Shares redeemed (181,911) (274,347) (2,056,096) (3,044,867)
Net increase 250,144 231,576 $ 2,795,393 $ 2,587,202
OCT. 2, 1996* OCT. 2,1996*
TO TO
JAN. 31, 1997 JAN. 31, 1997
(UNAUDITED) (UNAUDITED)
------------ --------------
ADVISOR CLASS
Shares sold 27,653 $ 343,144
Shares issued in
reinvestment of
distributions 2,983 32,936
Shares redeemed (121) (1,500)
Net increase 30,515 $ 374,580
* Commencement of distribution.
25
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 OCTOBER 1,
ENDED 1993
JANUARY 31, YEAR ENDED JULY 31, TO YEAR ENDED SEPTEMBER 30,
1997 -------------------------- JULY 31, ------------------------
(UNAUDITED) 1996 1995 1994(a) 1993 1992
------------- ------------ ------------ ------------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $11.61 $10.38 $11.08 $11.24 $9.33 $10.55
INCOME FROM INVESTMENT OPERATIONS
Net investment loss (.09)(b) (.14)(b) (.09) (.15)(b) (.15) (.16)
Net realized and unrealized gain (loss)
on investments and foreign currency
transactions 1.63 1.90 1.50 (.01) 2.49 (1.03)
Net increase (decrease) in net asset
value from operations 1.54 1.76 1.41 (.16) 2.34 (1.19)
LESS: DISTRIBUTIONS
Distributions from net realized gains (1.56) (.53) (1.99) -0- (.43) (.03)
Tax return of capital -0- -0- (.12) -0- -0- -0-
Net asset value, end of period $11.59 $11.61 $10.38 $11.08 $11.24 $9.33
TOTAL RETURN
Total investment return based on net
asset value (c) 13.89% 17.46% 16.62% (1.42)% 25.83% (11.30)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $77,022 $68,623 $60,057 $61,372 $65,713 $58,491
Ratios to average net assets of:
Expenses, net of waivers/reimbursements 2.37%(d) 2.51% 2.54%(e) 2.42%(d) 2.53% 2.34%
Net investment loss (1.45)%(d) (1.22)% (1.17)% (1.26)%(d) (1.13)% (.85)%
Portfolio turnover rate 62% 139% 128% 78% 97% 108%
Average commission rate (f) $.0310 -- -- -- -- --
</TABLE>
See footnote summary on page 29.
26
ALLIANCE GLOBAL SMALL CAP FUND
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
CLASS B
----------------------------------------------------------------------------------
SIX MONTHS OCTOBER 1,
ENDED 1993
JANUARY 31, YEAR ENDED JULY 31, TO YEAR ENDED SEPTEMBER 30,
1997 -------------------------- JULY 31, ------------------------
(UNAUDITED) 1996 1995 1994(a) 1993 1992
------------- ------------ ------------ ------------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $11.03 $9.95 $10.78 $11.00 $9.20 $10.49
INCOME FROM INVESTMENT OPERATIONS
Net investment loss (.12)(b) (.20)(b) (.12) (.17)(b) (.15) (.20)
Net realized and unrealized gain (loss)
on investments and foreign currency
transactions 1.52 1.81 1.40 (.05) 2.38 (1.06)
Net increase (decrease) in net asset
value from operations 1.40 1.61 1.28 (.22) 2.23 (1.26)
LESS: DISTRIBUTIONS
Distributions from net realized gains (1.56) (.53) (1.99) -0- (.43) (.03)
Tax return of capital -0- -0- (.12) -0- -0- -0-
Net asset value, end of period $10.87 $11.03 $9.95 $10.78 $11.00 $9.20
TOTAL RETURN
Total investment return based on net
asset value (c) 13.33% 16.69% 15.77% (2.00)% 24.97% (12.03)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $24,616 $14,247 $5,164 $3,889 $1,150 $819
Ratio to average net assets of:
Expenses, net of waivers/reimbursements 3.10%(d) 3.21% 3.20%(e) 3.15%(d) 3.26% 3.11%
Net investment loss (2.19)%(d) (1.88)% (1.92)% (1.93)%(d) (1.85)% (1.31)%
Portfolio turnover rate 62% 139% 128% 78% 97% 108%
Average commission rate (f) $.0310 -- -- -- -- --
</TABLE>
See footnote summary on page 29.
27
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 OCTOBER 1, MAY 3,
ENDED 1993 1993(G)
JANUARY 31, YEAR ENDED JULY 31, TO TO
1997 -------------------------- JULY 31, SEPTEMBER 30,
(UNAUDITED) 1996 1995 1994(A) 1993
------------- ------------ ------------ ------------ -------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $11.05 $9.96 $10.79 $11.00 $9.86
INCOME FROM INVESTMENT OPERATIONS
Net investment loss (.13)(b) (.20)(b) (.17) (.17)(b) (.05)
Net realized and unrealized gain (loss)
on investments and foreign currency
transactions 1.53 1.82 1.45 (.04) 1.19
Net increase (decrease) in net asset
value from operations 1.40 1.62 1.28 (.21) 1.14
LESS: DISTRIBUTIONS
Distributions from net realized gains (1.56) (.53) (1.99) -0- -0-
Tax return of capital -0- -0- (.12) -0- -0-
Net asset value, end of period $10.89 $11.05 $9.96 $10.79 $11.00
TOTAL RETURN
Total investment return based on net
asset value (c) 13.30% 16.77% 15.75% (1.91)% 11.56%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $6,786 $4,119 $1,407 $1,330 $261
Ratio to average net assets of:
Expenses, net of waivers/reimbursements 3.10%(d) 3.19% 3.25%(e) 3.13%(d) 3.75%(d)
Net investment loss (2.19)%(d) (1.85)% (2.10)% (1.92)%(d) (2.51)%(d)
Portfolio turnover rate 62% 139% 128% 78% 97%
Average commission rate $.0310 -- -- -- --
</TABLE>
See footnote summary on page 29.
28
ALLIANCE GLOBAL SMALL CAP FUND
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
ADVISOR CLASS
------------------
OCTOBER 2, 1996(g)
TO
JANUARY 31, 1997
(UNAUDITED)
------------------
Net asset value, beginning of period $12.56
INCOME FROM INVESTMENT OPERATIONS
Net investment loss (b) (.04)
Net realized and unrealized gain on investments .63
Net increase in net asset value from operations .59
LESS: DISTRIBUTIONS
Dividends from net realized gains (1.56)
Net asset value, end of period $11.59
TOTAL RETURN
Total investment return based on net asset value (c) 5.28%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $354
Ratio to average net assets of:
Expenses, net of waivers/reimbursements (d) 2.00%
Net investment loss, net of waivers/reimbursements (d) (1.17)%
Portfolio turnover rate 62%
Average commisson rate (f) $.0310
(a) The Fund changed its fiscal year end from September 30 to July 31.
(b) Based on average shares outstanding.
(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 charge or contingent
deferred sales charges are not reflected in the calculation of total investment
return. Total investment return calculated for period of less than one year is
not annualized.
(d) Annualized.
(e) If the Fund had borne all expenses, the expense ratios would have been
2.61%, 3.27%, and 3.31% for Class A, Class B and Class C shares, respectively.
(f) For fiscal years beginning on or after September 1, 1995, a fund is
required to disclose its average commission rate per share for trades on which
commissions are charged.
(g) Commencement of distributions.
29
ALLIANCE GLOBAL SMALL CAP FUND
_______________________________________________________________________________
BOARD OF DIRECTORS
JOHN D. CARIFA, CHAIRMAN AND PRESIDENT
DAVID H. DIEVLER (1)
RUTH BLOCK (1)
JOHN H. DOBKIN (1)
WILLIAM H. FOULK, JR. (1)
DR. JAMES M. HESTER (1)
CLIFFORD L. MICHEL (1)
DONALD J. ROBINSON (1)
OFFICERS
ALDEN M. STEWART, SENIOR VICE PRESIDENT-INVESTMENTS
RANDALL E. HAASE, VICE PRESIDENT
RONALD L. SIMCOE, VICE PRESIDENT
DANIEL V. PANKER, VICE PRESIDENT
THOMAS BARDONG, VICE PRESIDENT
EDMUND P. BERGAN, JR., SECRETARY
MARK D. GERSTEN, TREASURER & CHIEF FINANCIAL OFFICER
VINCENT S. NOTO, 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.
30
THE ALLIANCE FAMILY OF MUTUAL FUNDS
_______________________________________________________________________________
FIXED INCOME
Alliance Bond Fund
U.S. Government Portfolio
Corporate Bond Portfolio
Alliance Global Dollar Government Fund
Alliance Global Strategic Income Trust
Alliance Mortgage Securities Income Fund
Alliance Limited Maturity Government Fund
Alliance Multi-Market Strategy Trust
Alliance North American Government Income Trust
Alliance Short-Term Multi-Market Trust
Alliance Short-Term U.S. Government Fund
Alliance World Income Trust
TAX-FREE INCOME
Alliance Municipal Income Fund
California Portfolio
Insured California Portfolio
Insured National Portfolio
National Portfolio
New York Portfolio
Alliance Municipal Income Fund II
Arizona Portfolio
Florida Portfolio
Massachusetts Portfolio
Michigan Portfolio
Minnesota Portfolio
New Jersey Portfolio
Ohio Portfolio
Pennsylvania Portfolio
Virginia Portfolio
MONEY MARKET
AFD Exchange Reserves
GROWTH
The Alliance Fund
Alliance Global Small Cap Fund
Alliance Growth Fund
Alliance Premier Growth Fund
Alliance/Regent Sector Opportunity Fund
GROWTH & INCOME
Alliance Strategic Balanced Fund
Alliance Balanced Shares
Alliance Conservative Investors Fund
Alliance Growth & Income Fund
Alliance Growth Investors Fund
Alliance Income Builder Fund
Alliance Real Estate Investment Fund
Alliance Utility Income Fund
AGGRESSIVE GROWTH
Alliance Quasar Fund
Alliance Technology Fund
INTERNATIONAL
Alliance All-Asia Investment Fund
Alliance International Fund
Alliance New Europe Fund
Alliance Worldwide Privatization Fund
CLOSED-END FUNDS
Alliance All-Market Advantage Fund
Alliance Global Environment Fund
ACM Government Income Fund
ACM Government Opportunity Fund
ACM Government Securities Fund
ACM Government Spectrum Fund
ACM Managed Dollar Income Fund
ACM Managed Income Fund
ACM Municipal Securities Income Fund
Alliance World Dollar Government Fund
Alliance World Dollar Government Fund II
The Austria Fund
The Korean Investment Fund
The Spain Fund
The Southern Africa Fund
CASH MANAGEMENT SERVICES
ACM Institutional Reserves
Government Portfolio
Prime Portfolio
Tax-Free Portfolio
Trust Portfolio
Alliance Capital Reserves
Alliance Government Reserves
Alliance Insured Account
Alliance Money Reserves
Alliance Municipal Trust
California Portfolio
Connecticut Portfolio
Florida Portfolio
General Portfolio
New Jersey Portfolio
New York Portfolio
Virginia Portfolio
Alliance Treasury Reserves
Alliance Money Market Fund
Prime Portfolio
Government Portfolio
General Municipal Portfolio
31
ALLIANCE GLOBAL SMALL CAP FUND
1345 Avenue of the Americas
New York, NY 10105
(800) 221-5672
ALLIANCE CAPITAL
THIS REPORT IS INTENDED SOLELY FOR DISTRIBUTION TO CURRENT SHAREHOLDERS
OF THE FUND.
R THESE REGISTERED SERVICE MARKS USED UNDER LICENSE FROM THE OWNER,
ALLIANCE CAPITAL MANAGEMENT L.P.
GSCSR
