-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, F439oM6zvCA7ZTxH4ZbcgchhSPvuqKTYdCgdjM7IqKX/fhItTemP6x/NsTj5B9K2 5slONpKiu+2v9yqMFBCgpQ== /in/edgar/work/20000828/0000936772-00-000252/0000936772-00-000252.txt : 20000922 0000936772-00-000252.hdr.sgml : 20000922 ACCESSION NUMBER: 0000936772-00-000252 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20000630 FILED AS OF DATE: 20000828 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ALLIANCE VARIABLE PRODUCTS SERIES FUND INC CENTRAL INDEX KEY: 0000825316 STANDARD INDUSTRIAL CLASSIFICATION: [ ] FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-05398 FILM NUMBER: 710597 BUSINESS ADDRESS: STREET 1: 500 PLAZA DRIVE STREET 2: 1345 AVENUE OF THE AMERICAS 31ST FL CITY: NEW YORK STATE: NY ZIP: 10105 BUSINESS PHONE: 2013194105 MAIL ADDRESS: STREET 1: ALLIANCE CAPITAL MANGEMENT LP STREET 2: 1345 AVENUE OF THE AMERICAS CITY: NEW YORK STATE: NY ZIP: 10105 N-30D 1 0001.txt ALLIANCE ---------------------- VARIABLE PRODUCTS ---------------------- SERIES FUND ---------------------- MONEY MARKET PORTFOLIO ---------------------- SEMI-ANNUAL REPORT JUNE 30, 2000 (UNAUDITED) Investment Products Offered --------------------------- > Are Not FDIC Insured > May Lose Value > Are Not Bank Guaranteed --------------------------- MONEY MARKET PORTFOLIO PORTFOLIO OF INVESTMENTS June 30, 2000 (unaudited) Alliance Variable Products Series Fund ================================================================================ Principal Amount Company (000) U.S. $ Value - -------------------------------------------------------------------------------- COMMERCIAL PAPER-57.6% Alcoa, Inc. 6.57%, 8/24/00 .......................... $ 2,035 $ 2,014,945 American General Corp. 6.65%, 8/16/00 .......................... 1,800 1,784,705 Associates First Capital Corp. 6.93%, 7/03/00 .......................... 2,000 1,999,230 AT&T Corp. 6.60%, 7/24/00 .......................... 1,800 1,792,410 Bell Atlantic Network Funding 6.53%, 7/27/00 .......................... 1,800 1,791,511 Bemis Co., Inc. 6.52%, 7/10/00 .......................... 2,000 1,996,740 6.57%, 8/01/00 .......................... 1,800 1,789,816 Caterpillar Financial Services, Ltd 6.54%, 7/31/00 .......................... 2,000 1,989,100 CIT Group, Inc. 6.56%, 8/15/00 .......................... 1,800 1,785,240 Credit Suisse First Boston, Inc. 6.75%, 10/25/00 (a) ..................... 2,000 1,956,500 DaimlerChrysler Corp. 6.65%, 9/21/00 .......................... 1,800 1,772,735 Eastman Kodak Co. 6.95%, 7/03/00 .......................... 2,000 1,999,228 Equilon Enterprise LLC 6.53%, 7/25/00 .......................... 1,800 1,792,164 General Electric Financial Assurance 6.98%, 7/05/00 .......................... 6,000 5,995,347 Gillette Co. 6.97%, 7/05/00 .......................... 2,000 1,998,451 Goldman Sachs Group, Inc. 6.61%, 9/13/00 .......................... 1,800 1,775,543 Home Depot Real Estate Funding Corp. 6.77%, 11/06/00 ......................... 1,800 1,756,672 Kellogg Co. 6.55%, 8/14/00 .......................... 1,800 1,785,590 Marsh & McLennan Cos., Inc. 6.85%, 7/11/00 .......................... 1,800 1,796,575 Metlife Funding, Inc. 6.62%, 7/27/00 .......................... 2,000 1,990,438 National Rural Utilities Corp. 6.57%, 8/17/00 .......................... 1,800 1,784,560 Peoples Energy Corp. 6.58%, 8/23/00 .......................... 1,800 1,782,563 Pfizer Corp. 6.49%, 7/17/00 (a) ...................... 5,000 4,985,578 Philip Morris Capital Corp. 6.65%, 7/20/00 (a) ...................... 1,800 1,793,682 Procter & Gamble Co. 6.57%, 8/29/00 .......................... 2,000 1,978,465 Salomon Smith Barney, Inc. 6.60%, 9/14/00 .......................... 1,800 1,775,250 Sara Lee Corp. 6.65%, 7/05/00 .......................... 2,000 1,998,456 SBC Communications, Inc. 6.57%, 8/28/00 .......................... 1,800 1,780,947 Snap-On, Inc. 6.57%, 8/09/00 .......................... 1,800 1,787,188 Tampa Electric Co. 6.55%, 7/31/00 .......................... 1,800 1,790,175 Teacher's Insurance 6.60%, 7/31/00 .......................... 1,800 1,790,100 UBS Finance Delaware, Inc. 6.92%, 7/05/00 .......................... 6,000 5,995,387 Virginia Electric & Power Co. 6.52%, 7/17/00 .......................... 1,800 1,794,784 Wal-Mart Stores, Inc. 6.58%, 9/06/00 .......................... 2,000 1,975,508 Wells Fargo & Co. 6.55%, 7/31/00 .......................... 2,000 1,989,083 ------------ Total Commercial Paper (amortized cost $76,564,666) ............................ 76,564,666 ------------ U.S. GOVERNMENT OBLIGATIONS-33.2% Federal Home Loan Bank 6.40%, 2/09/01 .......................... 4,000 3,999,442 6.50%, 7/05/00 .......................... 4,700 4,696,605 6.637%, 10/06/00 FRN .................... 8,000 7,998,550 Federal Home Loan Corp. 6.02%, 7/05/00 .......................... 10,400 10,393,044 Federal National Mortgage Association 6.602%, 10/05/00 FRN .................... 5,000 4,999,359 Student Loan Marketing Association 6.602%, 10/04/00 FRN .................... 4,000 3,999,492 6.654%, 10/12/00 FRN .................... 8,000 7,997,580 ------------ Total U.S. Government Obligations (amortized cost $44,084,072) ............................ 44,084,072 ------------ CERTIFICATES OF DEPOSIT-6.0% American Express Centurion Bank 6.57%, 7/31/00 .......................... 2,000 2,000,000 Harris Trust & Savings Bank 6.58%, 7/05/00 .......................... 2,000 2,000,000 Southtrust Bank NA 6.66%, 7/17/00 .......................... 2,000 2,000,000 Wachovia Bank NA 5.95%, 9/11/00 .......................... 2,000 2,000,000 ------------ Total Certificates of Deposit (amortized cost $8,000,000) ............................. 8,000,000 ------------ 1 MONEY MARKET PORTFOLIO PORTFOLIO OF INVESTMENTS (continued) Alliance Variable Products Series Fund ================================================================================ Principal Amount Company (000) U.S. $ Value - -------------------------------------------------------------------------------- CORPORATE OBLIGATION-1.5% Dorada Finance, Inc. MTN 6.02%, 9/15/00 (a) (amortized cost $2,000,000) ............................. $ 2,000 $ 2,000,000 ------------ BANKERS ACCEPTANCE-1.3% Bank One NA Illinois 6.72%, 9/29/00 (a) (amortized cost $1,800,000) ............................. 1,800 1,800,000 ------------ Company U.S. $ Value - -------------------------------------------------------------------------------- TOTAL INVESTMENTS-99.6% (cost $132,448,738) ..................... $132,448,738 Other assets less liabilities-0.4% ........................ 490,395 ------------ NET ASSETS-100% ............................ $132,939,133 ============ - -------------------------------------------------------------------------------- (a) Securities issued in reliance on Section (4) 2 or Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration normally to qualified institutional buyers. At June 30, 2000, the aggregate market value of these securities amounted to $12,535,760 or 9.4% of net assets. Glossary of Terms: FRN - Floating Rate Note MTN - Medium Term Note See Notes to Financial Statements. 2 MONEY MARKET PORTFOLIO STATEMENT OF ASSETS AND LIABILITIES June 30, 2000 (unaudited) Alliance Variable Products Series Fund ================================================================================ ASSETS Investments in securities, at value (cost $132,448,738) ..... $132,448,738 Cash ........................................................ 514,413 Interest receivable ......................................... 717,617 ------------ Total assets ................................................ 133,680,768 ------------ LIABILITIES Dividend payable ............................................ 661,217 Advisory fee payable ........................................ 56,367 Accrued expenses ............................................ 24,051 ------------ Total liabilities ........................................... 741,635 ------------ NET ASSETS ..................................................... $132,939,133 ============ COMPOSITION OF NET ASSETS Capital stock, at par ....................................... $ 132,933 Additional paid-in capital .................................. 132,799,583 Undistributed net investment income ......................... 573 Accumulated net realized gain on investments ................ 6,044 ------------ $132,939,133 ============ Class A shares Net assets .................................................. $131,485,179 ============ Shares of capital stock outstanding ......................... 131,478,950 ============ Net asset value per share ................................... $ 1.00 ============ Class B shares Net assets .................................................. $ 1,453,954 ============ Shares of capital stock outstanding ......................... 1,453,896 ============ Net asset value per share ................................... $ 1.00 ============ - -------------------------------------------------------------------------------- See Notes to Financial Statements. 3 MONEY MARKET PORTFOLIO STATEMENT OF OPERATIONS Six Months Ended June 30, 2000 (unaudited) Alliance Variable Products Series Fund ================================================================================ INVESTMENT INCOME Interest .................................................. $4,155,868 ---------- EXPENSES Advisory fee .............................................. 336,148 Distribution fee - Class B ................................ 1,655 Custodian ................................................. 44,370 Administrative ............................................ 31,750 Audit and legal ........................................... 14,074 Printing .................................................. 4,690 Directors' fees ........................................... 606 Transfer agency ........................................... 456 Miscellaneous ............................................. 2,776 ---------- Total expenses ............................................ 436,525 ---------- Net investment income ..................................... 3,719,343 ---------- REALIZED GAIN ON INVESTMENTS Net realized gain on investment transactions .............. 6,415 ---------- NET INCREASE IN NET ASSETS FROM OPERATIONS ................... $3,725,758 ========== - -------------------------------------------------------------------------------- See Notes to Financial Statements. 4 MONEY MARKET PORTFOLIO STATEMENT OF CHANGES IN NET ASSETS Alliance Variable Products Series Fund ================================================================================
Six Months Ended Year Ended June 30. 2000 December 31, (unaudited) 1999 ------------- ------------- INCREASE IN NET ASSETS FROM OPERATIONS Net investment income ......................................... $ 3,719,343 $ 6,446,546 Net realized gain on investments .............................. 6,415 92 ------------- ------------- Net increase in net assets from operations .................... 3,725,758 6,446,638 DIVIDENDS TO SHAREHOLDERS FROM: Net investment income Class A .................................................... (3,684,139) (6,427,061) Class B .................................................... (35,204) (19,485) CAPITAL STOCK TRANSACTIONS Net increase (decrease) ....................................... (2,698,025) 16,056,947 ------------- ------------- Total increase (decrease) ..................................... (2,691,610) 16,057,039 NET ASSETS Beginning of period ........................................... 135,630,743 119,573,704 ------------- ------------- End of period (including undistributed net investment income of $573 and $573, respectively) ............................... $ 132,939,133 $ 135,630,743 ============= =============
- -------------------------------------------------------------------------------- See Notes to Financial Statements. 5 MONEY MARKET PORTFOLIO NOTES TO FINANCIAL STATEMENTS June 30, 2000 (unaudited) Alliance Variable Products Series Fund ================================================================================ NOTE A: Significant Accounting Policies The Money Market Portfolio (the "Portfolio") is a series of Alliance Variable Products Series Fund, Inc. (the "Fund"). The Portfolio's investment objective is to seek safety of principal, excellent liquidity and maximum current income to the extent consistent with the first two objectives. The Fund was incorporated in the State of Maryland on November 17, 1987, as an open-end series investment company. The Fund had no operations prior to November 28, 1990. The Fund offers nineteen separately managed pools of assets which have differing investment objectives and policies. The Fund currently issues shares of the Conservative Investors Portfolio, Growth Investors Portfolio, Total Return Portfolio, Growth and Income Portfolio, Growth Portfolio, International Portfolio, Premier Growth Portfolio, Quasar Portfolio, Real Estate Investment Portfolio, Technology Portfolio, Utility Income Portfolio, Worldwide Privatization Portfolio, Global Bond Portfolio, Global Dollar Government Portfolio, High-Yield Portfolio, North American Government Income Portfolio, Short-Term Multi-Market Portfolio, U.S. Government/High Grade Securities Portfolio and Money Market Portfolio (the "Portfolios"). On January 5, 1999, the creation of a second class of shares, Class B shares, was approved by the Board of Directors. The Fund offers Class A and Class B shares. Both classes of shares have identical voting, dividend, liquidating and other rights, except that Class B shares bear a distribution expense and have exclusive voting rights with respect to the Class B distribution plan. As of June 30, 2000, the following Portfolios had Class B shares issued and outstanding: Growth and Income Portfolio, Growth Portfolio, Premier Growth Portfolio, Technology Portfolio, Global Bond Portfolio, U.S. Government/High Grade Securities Portfolio and Money Market Portfolio. The Fund offers and sells its shares only to separate accounts of certain life insurance companies for the purpose of funding variable annuity contracts and variable life insurance policies. Sales are made without a sales charge at each Portfolio's net asset value per share. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States, which require management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements and amounts of income and expenses during the reporting period. Actual results could differ from those estimates. The following is a summary of significant accounting policies followed by the Fund. 1. Security Valuation Portfolio securities traded on a national securities exchange, on a foreign securities exchange (other than foreign securities exchanges whose operations are similar to those of the United States over-the-counter market) or on The Nasdaq Stock Market, Inc., are generally valued at the last reported sales price or if no sale occurred, at the mean of the closing bid and asked price on that day. Readily marketable securities traded in the over-the-counter market, securities listed on a foreign securities exchange whose operations are similar to the U.S. over-the-counter market, and securities listed on a national securities exchange whose primary market is believed to be over-the-counter (but excluding securities traded on The Nasdaq Stock Market, Inc.), are valued at the mean of the current bid and asked price. U.S. government and fixed income securities which mature in 60 days or less are valued at amortized cost, unless this method does not represent fair value. Securities for which current market quotations are not readily available are valued at their fair value as determined in good faith by, or in accordance with procedures adopted by, the Board of Directors. Fixed income securities may be valued on the basis of prices obtained from a pricing service when such prices are believed to reflect the fair market value of such securities. Securities in which the Money Market Portfolio invests are valued at amortized cost which approximates fair value, under which method a portfolio instrument is valued at cost and any premium or discount is amortized on a straight-line basis to maturity. 2. 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. The Portfolios isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Net realized gains and losses on foreign currency transactions represent foreign exchange gains and losses from sales and maturities of securities and forward exchange currency contracts, holdings of foreign currencies, exchange gains and losses realized between the trade and 6 Alliance Variable Products Series Fund ================================================================================ settlement dates on investment transactions, and the difference between the amounts of interest, dividends and foreign witholding tax reclaims recorded on the Portfolio's books and the U.S. dollar equivalent amounts actually received or paid. Net currency gains and losses from valuing foreign currency denominated assets and liabilities at period end exchange rates are reflected as a component of net unrealized appreciation (depreciation) of investments and foreign currency denominated assets and liabilities. 3. Taxes It is the Fund's policy to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its investment company taxable income and net realized gains, if any, to shareholders. Therefore, no provisions for federal income or excise taxes are required. 4. Investment Income and Investment Transactions Dividend income is recorded on the ex-dividend date. Interest income is accrued daily. Investment transactions are accounted for on the date securities are purchased or sold. The Fund accretes discounts as adjustments to interest income and in the case of the Money Market Portfolio, amortizes premium as well. Investment gains and losses are determined on the identified cost basis. 5. Dividends and Distributions Each Portfolio declares and distributes dividends and distributions from net investment income and net realized gains, respectively, if any, at least annually, except for dividends on the Money Market Portfolio, which are declared daily and paid monthly. Income dividends and capital gains distributions to shareholders are recorded on the ex-dividend date. Income dividends and capital gains distributions are determined in accordance with federal tax regulations and may differ from those determined in accordance with accounting principles generally accepted in the United States. To the extent these differences are permanent, such amounts are reclassified within the capital accounts based on their federal tax basis treatment; temporary differences do not require such reclassification. - -------------------------------------------------------------------------------- NOTE B: Advisory Fee and Other Transactions with Affiliates Under the terms of an investment advisory agreement, the Portfolio pays Alliance Capital Management L.P. (the "Adviser"), an investment advisory fee at an annualized rate of .50% of the Portfolio's average daily net assets. Pursuant to the advisory agreement, the Portfolio paid $31,750 to the Adviser representing the cost of certain legal and accounting services provided to the Portfolio by the Adviser for the six months ended June 30, 2000. During the six months ended June 30, 2000, the Adviser agreed to waive its fee and to reimburse the additional operating expenses to the extent necessary to limit total operating expenses on an annual basis to .95% and 1.20% of the average daily net assets for Class A and Class B shares, respectively. Expense waivers/reimbursements, if any, are accrued daily and paid monthly. For the six months ended June 30, 2000, the Portfolio received no such waivers/reimbursements. The Fund compensates Alliance Fund Services, Inc., a wholly-owned subsidiary of the Adviser, under a Transfer Agency Agreement for providing personnel and facilities to perform transfer agency services for the Fund. For the six months ended June 30, 2000, the Fund paid a total of $9,000 which was allocated evenly among the Portfolios. - -------------------------------------------------------------------------------- NOTE C: Distribution Plan The Portfolios have each adopted a Plan for Class B shares of the Fund pursuant to Rule 12b-1 under the Investment Company Act of 1940 (each a "Plan" and collectively the "Plans"). Under the Plans, the Portfolios pay distribution and servicing fees to the Distributor at an annual rate of up to .50% of each portfolio's average daily net assets attributable to the Class B shares. The fees are accrued daily and paid monthly. The Board of Directors currently limit payments under the Plan to .25% of each Portfolio's average daily net assets attributable to Class B shares. The Plans provide that the Distributor will use such payments in their entirety for distribution assistance and promotional activities. The Portfolios are not obligated under the Plans to pay any distribution services fee in excess of the amounts set forth above. The purpose of the payments to the Distributor under the Plans is to compensate the Distributor for its distribution services with respect to the sale of each Portfolio's shares. Since the Distributor's compensation is not directly tied to its expenses, the amount of compensation received by it under the Plan during any year may be more or less than its actual expenses. For this reason, the Plans are characterized by the staff of the Commission as being of the "compensation" variety. In the event that a Plan is terminated or not continued, no distribution services fees (other than current amounts 7 MONEY MARKET PORTFOLIO NOTES TO FINANCIAL STATEMENTS (continued) Alliance Variable Products Series Fund ================================================================================ accrued but not yet paid) would be owed by the Portfolios to the Distributor with respect to the relevant Plan. The Plan also provides that the Adviser may use its own resources to finance the distribution of each Portfolio's shares. - -------------------------------------------------------------------------------- NOTE D: Investment Transactions At June 30, 2000, the cost of investments for federal income tax purposes was the same as the cost for financial reporting purposes. At December 31, 1999 for federal income tax purposes, the Portfolio had net capital loss carryforward of $371, of which $73 expires in the year 2004 and $298 expires in the year 2005. 1. Forward Exchange Currency Contracts All Portfolios (except for the Global Dollar Government Portfolio, U.S. Government/High Grade Securities Portfolio and Money Market Portfolio) may enter into forward exchange currency contracts to hedge exposure to changes in foreign currency exchange rates on foreign portfolio holdings, to hedge certain firm purchase and sales commitments denominated in foreign currencies and for investment purposes. A forward exchange currency contract is a commitment to purchase or sell a foreign currency at a future date at a negotiated forward rate. The Portfolios may enter into contracts to deliver or receive foreign currency it will receive from or require for its normal investment activities. It may also use contracts in a manner intended to protect foreign currency denominated securities from declines in value due to unfavorable exchange rate movements. The gain or loss arising from the difference between the original contracts and the closing of such contracts is included in realized gains or losses 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 Portfolio. Each Portfolio's custodian will place and maintain cash not available for investment or other liquid assets in a separate account of the Portfolio having an approximate value equal to the aggregate amount of the respective portfolio'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. The face or contract amount, in U.S. dollars, reflects the total exposure each Portfolio has in that particular currency contract. At June 30, 2000, the Portfolio had no outstanding forward exchange currency contracts. 2. Option Transactions For hedging and investment purposes, all Portfolios (except for the Money Market Portfolio) may purchase and write call options and purchase put options on U.S. securities that are traded on U.S. securities exchanges and over-the-counter markets. The risk associated with purchasing an option is that the Portfolio pays a premium whether or not the option is exercised. Additionally, the Portfolio bears the risk of loss of premium and change in market value should the counterparty not perform under the contract. Put and call options purchased are accounted for in the same manner as portfolio securities. The cost of securities acquired through the exercise of call options is increased by premiums paid. The proceeds from securities sold through the exercise of put options are decreased by the premiums paid. When the Portfolio writes an option, the premium received by the Portfolio is recorded as a liability and is subsequently adjusted to the current market value of the option written. Premiums received from which written options expire unexercised are recorded by the Portfolio on the expiration date as realized gains from written options. The difference between the premium received and the amount paid on effecting a closing purchase transaction, including brokerage commissions, is also treated as a realized gain, or if the premium received is less than the amount paid for the closing purchase transaction, as a realized loss. If a call option is exercised, the premium received is added to the proceeds from the sale of the underlying security or currency in determining whether the Portfolio has realized a gain or loss. In writing an option, the Portfolio bears the market risk of an unfavorable change in the price of the security or currency underlying the written option. Exercise of an option written by the Portfolio could result in the Portfolio selling or buying a security or currency at a price different from the current market value. The Portfolio had no transactions in options written for the six months ended June 30, 2000. 8 Alliance Variable Products Series Fund ================================================================================ NOTE E: Capital Stock There are 20,000,000,000 shares of capital stock, $.001 par value per share of the Fund authorized divided into two classes, designated Class A and Class B. Each class consists of 10,000,000,000 authorized shares. Transactions in capital stock were as follows:
---------------------------------- ----------------------------------- SHARES AMOUNT ---------------------------------- ----------------------------------- Six Months Ended Year Ended Six Months Ended Year Ended June 30, 2000 December 31, June 30, 2000 December 31, (unaudited) 1999 (unaudited) 1999 --------------- ------------- --------------- ------------- Class A Shares sold .................... 463,245,684 524,546,562 $ 463,245,684 $ 524,546,562 Shares issued in reinvestment of dividends ................... 3,635,877 6,427,061 3,635,877 6,427,061 Shares redeemed ................ (469,870,139) (516,080,019) (469,870,139) (516,080,019) ------------- ------------- ------------- ------------- Net increase (decrease) ........ (2,988,578) 14,893,604 $ (2,988,578) $ 14,893,604 ============= ============= ============= ============= Six Months Ended June 16, 1999* to Six Months Ended June 16, 1999* to June 30, 2000 December 31, June 30, 2000 December 31, (unaudited) 1999 (unaudited) 1999 --------------- ------------- --------------- ------------- Class B Shares sold .................... 1,405,325 2,025,867 $ 1,405,325 $ 2,025,867 Shares issued in reinvestment of dividends ................... 33,423 19,485 33,423 19,485 Shares redeemed ................ (1,148,195) (882,009) (1,148,195) (882,009) ------------- ------------- ------------- ------------- Net increase ................... 290,553 1,163,343 $ 290,553 $ 1,163,343 ============= ============= ============= =============
- -------------------------------------------------------------------------------- NOTE F: Concentration of Risk Investing in securities of foreign companies or foreign governments involves special risks which include changes in foreign exchange rates and the possibility of future political and economic developments which could adversely affect the value of such securities. Moreover, securities of many foreign companies or foreign governments and their markets may be less liquid and their prices more volatile than those of comparable United States companies or of the United States government. - -------------------------------------------------------------------------------- NOTE G: Bank Borrowing A number of open-end mutual funds managed by the Adviser, including the Fund, participate in a $750 million revolving credit facility (the "Facility") intended to provide short-term financing if necessary, subject to certain restrictions in connection with abnormal redemption activity. Commitment fees related to the Facility are paid by the participating funds and are included in the miscellaneous expenses in the statement of operations. The Fund did not utilize the Facility during the six months ended June 30, 2000. - -------------------------------------------------------------------------------- * Commencement of distribution. 9 MONEY MARKET PORTFOLIO FINANCIAL HIGHLIGHTS Alliance Variable Products Series Fund ================================================================================ Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
------------------------------------------------------------------------------- CLASS A ------------------------------------------------------------------------------- Six Months Ended Year Ended December 31, June 30, 2000 ------------------------------------------------------------- (unaudited) 1999 1998 1997 1996 1995 ------------- -------- -------- ------- ------- ------- Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 -------- -------- -------- ------- ------- ------- Income From Investment Operations Net investment income .............. .03 .05 .05 .05(a) 05 (a) .05(a) -------- -------- -------- ------- ------- ------- Less: Dividends Dividends from net investment income (.03) (.05) (.05) (.05) (.05) (.05) -------- -------- -------- ------- ------- ------- Net asset value, end of period ..... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ======== ======== ======== ======= ======= ======= Total Return Total investment return based on net asset value (b) ............. 2.80% 4.69% 4.985 5.11% 4.715 4.97% Ratios/Supplemental Data Net assets, end of period (000's omitted) ................. $131,485 $134,467 $119,574 $67,584 $64,769 $28,092 Ratios to average net assets of: Expenses, net of waivers and reimbursements ................ .65%(c) .64% .685 .64% .695 .95% Expenses, before waivers and reimbursements ................ .65%(c) .64% .685 .64% .695 1.07% Net investment income ........... 5.53%(c) 4.59% 4.845 5.00%(a) 4.645(a) 4.85%(a)
- -------------------------------------------------------------------------------- See footnote summary on page 11. 10 MONEY MARKET PORTFOLIO FINANCIAL HIGHLIGHTS (continued) Alliance Variable Products Series Fund ================================================================================ Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period --------------------------- CLASS B --------------------------- Six Months June 16, Ended 1999(d) to June 30, 2000 December 31, (unaudited) 1999 ------------- ----------- Net asset value, beginning of period ............. $ 1.00 $ 1.00 ---------- ---------- Income From Investment Operations Net investment income ............................ .03 .02 ---------- ---------- Less: Dividends Dividends from net investment income ............. (.03) (.02) ---------- ---------- Net asset value, end of period ................... $ 1.00 $ 1.00 ========== ========== Total Return Total investment return based on net asset value (b) ........................... 2.67% 2.52% Ratios/Supplemental Data Net assets, end of period (000's omitted) ........ $ 1,454 $ 1,163 Ratios to average net assets of: Expenses (c) .................................. .90% .89% Net investment income (c) ..................... 5.32% 4.71% - -------------------------------------------------------------------------------- (a) Net of expenses reimbursed or waived by the Adviser. (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. Total investment return calculated for a period of less than one year is not annualized. (c) Annualized. (d) Commencement of distribution. 11 Alliance Variable Products Series Fund ================================================================================ BOARD OF DIRECTORS John D. Carifa, Chairman and President Ruth Block (1) David H. Dievler (1) John H. Dobkin (1) William H. Foulk, Jr. (1) Dr. James M. Hester (1) Clifford L. Michel (1) Donald J. Robinson (1) OFFICERS Andrew Aran, Senior Vice President Kathleen A. Corbet, Senior Vice President Gregory Dube, Senior Vice President Alfred L. Harrison, Senior Vice President Nelson Jantzen, Senior Vice President Wayne D. Lyski, Senior Vice President Raymond J. Papera, Senior Vice President Peter Anastos, Vice President Bruce K. Aronow, Vice President Edward Baker, Vice President Thomas J. Bardong, Vice President Matthew Bloom, Vice President Mark H. Breedon, Vice President Russell Brody, Vice President Nicholas D.P. Carn, Vice President Paul J. DeNoon, Vice President Joseph C. Dona, Vice President Vicki L. Fuller, Vice President F. Jeanne Goetz, Vice President Gerald T. Malone, Vice President Michael Mon, Vice President Douglas J. Peebles, Vice President Daniel G. Pine, Vice President Paul C. Rissman, Vice President Tyler J. Smith, Vice President Jean Van De Walle, Vice President Sandra Yeager, Vice President Edmund P. Bergan, Jr., Secretary Mark D. Gersten, Treasurer & Chief Financial Officer Thomas Manley, Controller CUSTODIAN State Street Bank and Trust Company 225 Franklin Street Boston, MA 02110 DISTRIBUTOR Alliance Fund Distributors, Inc. 1345 Avenue of the Americas New York, NY 10105 INDEPENDENT AUDITORS Ernst & Young LLP 787 Seventh Avenue New York, NY 10019 LEGAL COUNSEL Seward & Kissel One Battery Park Plaza New York, NY 10004 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. 12 (This page left intentionally blank.) -----END PRIVACY-ENHANCED MESSAGE-----