-----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, VzXhx2IeDj+4lOhjjQ2lKQsHpNAo53aVguW3/UYYgWb9PuLrHdJztmoe6/2OpYJA ps4KY0pCivgQYZRTQtn13A== 0000936772-99-000198.txt : 19990901 0000936772-99-000198.hdr.sgml : 19990901 ACCESSION NUMBER: 0000936772-99-000198 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19990630 FILED AS OF DATE: 19990831 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: 99703462 BUSINESS ADDRESS: STREET 1: 500 PLAZA DRIVE STREET 2: 1345 AVENUE OF THE AMERICAS 31ST FL CITY: SECAUCUS STATE: NJ ZIP: 07094 BUSINESS PHONE: 2013194105 MAIL ADDRESS: STREET 1: 500 PLAZA DRIVE STREET 2: 1345 AVENUE OF THE AMERICAS CITY: SECAUCUS STATE: NJ ZIP: 07094 N-30D 1 ALLIANCE -------------------------------- VARIABLE PRODUCTS -------------------------------- SERIES FUND -------------------------------- SEMI-ANNUAL REPORT JUNE 30, 1999 (UNAUDITED) The following Semi-Annual Report for the Alliance Variable Products Series Fund, Inc. (the "Fund") includes financial information for the nineteen Portfolios of the Fund which were active as of June 30, 1999. Not all Portfolios of the Fund are available through each insurance product offering investments in the Fund. TEN LARGEST HOLDINGS June 30, 1999 (unaudited) Alliance Variable Products Series Fund ================================================================================ Conservative Investors Portfolio - -------------------------------------------------------------------------------- PERCENT OF NET COMPANY U.S. $ VALUE ASSETS - -------------------------------------------------------------------------------- U.S. Treasury Notes $13,915,170 40.4% - -------------------------------------------------------------------------------- Federal National Mortgage Assoc., 5.625%, 5/14/04 4,554,582 13.2 - -------------------------------------------------------------------------------- U.S. Treasury Bond, 5.50%, 8/15/28 3,113,108 9.0 - -------------------------------------------------------------------------------- Federal Home Loan Mortgage Corp., 5.75%, 6/15/01 1,997,392 5.8 - -------------------------------------------------------------------------------- Nokia AB OYJ Corp. Series A 473,160 1.4 - -------------------------------------------------------------------------------- Cisco Systems, Inc. 141,694 0.4 - -------------------------------------------------------------------------------- Microsoft Corp. 135,187 0.4 - -------------------------------------------------------------------------------- Tyco International, Ltd. 132,650 0.4 - -------------------------------------------------------------------------------- Carrefour, SA 132,206 0.4 - -------------------------------------------------------------------------------- Home Depot, Inc. 128,875 0.3 - -------------------------------------------------------------------------------- $24,724,024 71.7% - -------------------------------------------------------------------------------- Growth Investors Portfolio - -------------------------------------------------------------------------------- PERCENT OF NET COMPANY U.S. $ VALUE ASSETS - -------------------------------------------------------------------------------- U.S. Treasury Notes $ 6,775,273 35.8% - -------------------------------------------------------------------------------- U.S. Treasury Bond, 5.50%, 8/15/28 732,496 3.9 - -------------------------------------------------------------------------------- Nokia AB OYJ Corp. Series A 630,880 3.3 - -------------------------------------------------------------------------------- Cisco Systems, Inc. 276,947 1.5 - -------------------------------------------------------------------------------- Microsoft Corp. 270,375 1.4 - -------------------------------------------------------------------------------- Tyco International, Ltd. 265,300 1.4 - -------------------------------------------------------------------------------- Home Depot, Inc. 251,306 1.3 - -------------------------------------------------------------------------------- Wal-Mart Stores, Inc. 250,900 1.3 - -------------------------------------------------------------------------------- Philip Morris Cos., Inc. 245,144 1.3 - -------------------------------------------------------------------------------- BankAmerica Corp. 241,931 1.3 - -------------------------------------------------------------------------------- $ 9,940,552 52.5% - -------------------------------------------------------------------------------- Total Return Portfolio - -------------------------------------------------------------------------------- PERCENT OF NET COMPANY U.S. $ VALUE ASSETS - -------------------------------------------------------------------------------- U.S. Treasury Notes $11,340,701 16.4% - -------------------------------------------------------------------------------- U.S. Treasury Bonds 3,059,498 4.4 - -------------------------------------------------------------------------------- Household International, Inc. 1,961,325 2.9 - -------------------------------------------------------------------------------- Bristol-Myers Squibb Co. 1,958,163 2.8 - -------------------------------------------------------------------------------- Citigroup, Inc. 1,767,000 2.6 - -------------------------------------------------------------------------------- First Data Corp. 1,546,425 2.2 - -------------------------------------------------------------------------------- BankAmerica Corp. 1,539,562 2.2 - -------------------------------------------------------------------------------- Tyco International, Ltd. 1,487,575 2.2 - -------------------------------------------------------------------------------- Chase Manhattan Corp. 1,204,088 1.8 - -------------------------------------------------------------------------------- USX-Marathon Group 1,100,612 1.6 - -------------------------------------------------------------------------------- $26,964,949 39.1% - -------------------------------------------------------------------------------- A-1 TEN LARGEST HOLDINGS (continued) Alliance Variable Products Series Fund ================================================================================ Growth and Income Portfolio - -------------------------------------------------------------------------------- PERCENT OF NET COMPANY U.S. $ VALUE ASSETS - -------------------------------------------------------------------------------- Bristol-Myers Squibb Co. $ 19,144,912 4.0% - -------------------------------------------------------------------------------- Household International, Inc. 18,926,313 3.9 - -------------------------------------------------------------------------------- Citigroup, Inc. 16,679,625 3.4 - -------------------------------------------------------------------------------- BankAmerica Corp. 16,634,606 3.4 - -------------------------------------------------------------------------------- Tyco International, Ltd. 15,652,700 3.2 - -------------------------------------------------------------------------------- USX-Marathon Group 15,320,656 3.2 - -------------------------------------------------------------------------------- First Data Corp. 14,764,444 3.1 - -------------------------------------------------------------------------------- Philip Morris Cos., Inc. 12,016,062 2.5 - -------------------------------------------------------------------------------- Chase Manhattan Corp. 11,625,075 2.4 - -------------------------------------------------------------------------------- Noble Drilling Corp. 11,028,937 2.3 - -------------------------------------------------------------------------------- $151,793,330 31.4% - -------------------------------------------------------------------------------- Growth Portfolio - -------------------------------------------------------------------------------- PERCENT OF NET COMPANY U.S. $ VALUE ASSETS - -------------------------------------------------------------------------------- International Business Machines Corp. $ 19,516,750 5.1% - -------------------------------------------------------------------------------- AT&T Corp.--Liberty Media Group Cl.A 17,341,517 4.5 - -------------------------------------------------------------------------------- MCI WorldCom, Inc. 15,596,089 4.1 - -------------------------------------------------------------------------------- Mannesmann AG 14,652,119 3.8 - -------------------------------------------------------------------------------- American International Group, Inc. 13,817,706 3.6 - -------------------------------------------------------------------------------- Sanmina Corp. 13,361,587 3.5 - -------------------------------------------------------------------------------- Global TeleSystems Group, Inc. 12,129,877 3.2 - -------------------------------------------------------------------------------- Nextel Communications, Inc. Cl.A 12,102,719 3.2 - -------------------------------------------------------------------------------- MBNA Corp. 11,697,984 3.1 - -------------------------------------------------------------------------------- BankAmerica Corp. 11,187,487 2.9 - -------------------------------------------------------------------------------- $141,403,835 37.0% - -------------------------------------------------------------------------------- International Portfolio - -------------------------------------------------------------------------------- PERCENT OF NET COMPANY U.S. $ VALUE ASSETS - -------------------------------------------------------------------------------- Nokia Oyj Corp. Series A $ 3,890,429 6.3% - -------------------------------------------------------------------------------- Societe Generale 1,793,434 2.9 - -------------------------------------------------------------------------------- ING Groep NV 1,777,668 2.9 - -------------------------------------------------------------------------------- Royal Bank of Scotland Group Plc 1,581,925 2.6 - -------------------------------------------------------------------------------- Sanofi, SA 1,544,069 2.5 - -------------------------------------------------------------------------------- Bank of Scotland 1,501,995 2.4 - -------------------------------------------------------------------------------- Bank of Tokyo-Mitsubishi, Ltd. 1,495,536 2.4 - -------------------------------------------------------------------------------- Koninklijke Ahold NV 1,483,812 2.4 - -------------------------------------------------------------------------------- SEITA 1,393,545 2.2 - -------------------------------------------------------------------------------- Zurich Allied AG 1,318,241 2.1 - -------------------------------------------------------------------------------- $ 17,780,654 28.7% - -------------------------------------------------------------------------------- A-2 Alliance Variable Products Series Fund ================================================================================ Premier Growth Portfolio - -------------------------------------------------------------------------------- PERCENT OF NET COMPANY U.S. $ VALUE ASSETS - -------------------------------------------------------------------------------- Nokia Corp. (ADR) $107,769,062 6.3% - -------------------------------------------------------------------------------- Tyco International, Ltd. 84,892,399 4.9 - -------------------------------------------------------------------------------- Cisco Systems, Inc. 76,038,019 4.4 - -------------------------------------------------------------------------------- Home Depot, Inc. 64,263,390 3.7 - -------------------------------------------------------------------------------- Dell Computer Corp. 63,882,000 3.7 - -------------------------------------------------------------------------------- Morgan Stanley, Dean Witter & Co. 57,631,138 3.4 - -------------------------------------------------------------------------------- MCI WorldCom, Inc. 56,971,528 3.3 - -------------------------------------------------------------------------------- MBNA Corp. 56,207,594 3.3 - -------------------------------------------------------------------------------- Intel Corp. 52,284,925 3.0 - -------------------------------------------------------------------------------- EMC Corp. 48,334,000 2.8 - -------------------------------------------------------------------------------- $668,274,055 38.8% - -------------------------------------------------------------------------------- Quasar Portfolio - -------------------------------------------------------------------------------- PERCENT OF NET COMPANY U.S. $ VALUE ASSETS - -------------------------------------------------------------------------------- Legg Mason, Inc. $ 4,596,900 3.1% - -------------------------------------------------------------------------------- Premier Parks, Inc. 4,189,500 2.8 - -------------------------------------------------------------------------------- Chelsea GCA Realty, Inc. 3,315,262 2.2 - -------------------------------------------------------------------------------- Tiffany & Co. 2,991,500 2.0 - -------------------------------------------------------------------------------- Mohawk Industries, Inc. 2,792,981 1.9 - -------------------------------------------------------------------------------- Sunterra Corp. 2,518,506 1.7 - -------------------------------------------------------------------------------- Alaska Air Group, Inc. 2,467,425 1.7 - -------------------------------------------------------------------------------- Venator Group, Inc. 2,434,025 1.6 - -------------------------------------------------------------------------------- Monaco Coach Corp. 2,208,713 1.5 - -------------------------------------------------------------------------------- Taubman Centers, Inc. 1,992,631 1.3 - -------------------------------------------------------------------------------- $ 29,507,443 19.8% - -------------------------------------------------------------------------------- Real Estate Investment Portfolio - -------------------------------------------------------------------------------- PERCENT OF NET COMPANY U.S. $ VALUE ASSETS - -------------------------------------------------------------------------------- Equity Office Properties Trust $ 932,750 4.8% - -------------------------------------------------------------------------------- Pan Pacific Retail Properties, Inc. 821,500 4.2 - -------------------------------------------------------------------------------- Cornerstone Properties, Inc. 811,212 4.2 - -------------------------------------------------------------------------------- Public Storage, Inc. 730,800 3.7 - -------------------------------------------------------------------------------- Avalon Bay Communities, Inc. 715,358 3.6 - -------------------------------------------------------------------------------- Vornado Realty Trust 688,594 3.5 - -------------------------------------------------------------------------------- SL Green Realty Corp. 668,306 3.4 - -------------------------------------------------------------------------------- MeriStar Hospitality Corp. 647,950 3.3 - -------------------------------------------------------------------------------- Mills Corp. 637,613 3.3 - -------------------------------------------------------------------------------- ProLogis Trust 623,700 3.2 - -------------------------------------------------------------------------------- $ 7,277,783 37.2% - -------------------------------------------------------------------------------- A-3 TEN LARGEST HOLDINGS (continued) Alliance Variable Products Series Fund ================================================================================ Technology Portfolio - -------------------------------------------------------------------------------- PERCENT OF NET COMPANY U.S. $ VALUE ASSETS - -------------------------------------------------------------------------------- Cisco Systems, Inc. $11,219,569 5.9% - -------------------------------------------------------------------------------- Solectron Corp. 9,116,181 4.8 - -------------------------------------------------------------------------------- Dell Computer Corp. 8,218,153 4.4 - -------------------------------------------------------------------------------- Lucent Technologies, Inc. 7,930,650 4.2 - -------------------------------------------------------------------------------- America Online, Inc. 7,762,625 4.1 - -------------------------------------------------------------------------------- Nokia Corp. (ADR) 7,379,937 3.9 - -------------------------------------------------------------------------------- Sanmina Corp. 7,113,281 3.8 - -------------------------------------------------------------------------------- Applied Materials, Inc. 6,121,647 3.2 - -------------------------------------------------------------------------------- International Business Machines Corp. 5,674,075 3.0 - -------------------------------------------------------------------------------- Microsoft Corp. 5,587,750 3.0 - -------------------------------------------------------------------------------- $76,123,868 40.3% - -------------------------------------------------------------------------------- Utility Income Portfolio - -------------------------------------------------------------------------------- PERCENT OF NET COMPANY U.S. $ VALUE ASSETS - -------------------------------------------------------------------------------- MCI WorldCom, Inc. $ 2,064,750 5.0% - -------------------------------------------------------------------------------- AT&T Corp. 2,029,398 4.9 - -------------------------------------------------------------------------------- Ameritech Corp. 1,999,200 4.8 - -------------------------------------------------------------------------------- MediaOne Group, Inc. 1,936,700 4.6 - -------------------------------------------------------------------------------- BellSouth Corp. 1,790,625 4.3 - -------------------------------------------------------------------------------- Nisource, Inc. 1,639,163 3.9 - -------------------------------------------------------------------------------- Consolidated Edison, Inc. 1,615,425 3.9 - -------------------------------------------------------------------------------- GTE Corp. 1,552,875 3.7 - -------------------------------------------------------------------------------- GPU, Inc. 1,518,750 3.6 - -------------------------------------------------------------------------------- Frontier Corp. 1,239,000 3.0 - -------------------------------------------------------------------------------- $17,385,886 41.7% - -------------------------------------------------------------------------------- Worldwide Privatization Portfolio - -------------------------------------------------------------------------------- PERCENT OF NET COMPANY U.S. $ VALUE ASSETS - -------------------------------------------------------------------------------- Japan Tobacco, Inc. $ 1,406,795 3.1% - -------------------------------------------------------------------------------- Nippon Telegraph & Telephone, Corp. 1,153,922 2.5 - -------------------------------------------------------------------------------- United Pan-Europe Communications 1,095,299 2.4 - -------------------------------------------------------------------------------- Telefonos de Mexico, SA Cl.L (ADR) 1,066,725 2.3 - -------------------------------------------------------------------------------- ING Groep NV 997,046 2.2 - -------------------------------------------------------------------------------- Daiwa Securities Co., Ltd. 991,981 2.2 - -------------------------------------------------------------------------------- ST Microelectronics NV 958,938 2.1 - -------------------------------------------------------------------------------- Grupo Financiero Banorte, SA de CV Cl.B 903,124 2.0 - -------------------------------------------------------------------------------- Equant NV 887,599 1.9 - -------------------------------------------------------------------------------- Sanofi, SA 887,416 1.9 - -------------------------------------------------------------------------------- $10,348,845 22.6% - -------------------------------------------------------------------------------- A-4 SECTOR DIVERSIFICATION June 30, 1999 (unaudited) Alliance Variable Products Series Fund ================================================================================ International Portfolio - -------------------------------------------------------------------------------- PERCENT OF NET U.S. $ VALUE ASSETS - -------------------------------------------------------------------------------- Capital Goods $ 3,412,727 5.5% - -------------------------------------------------------------------------------- Consumer Manufacturing 2,834,497 4.6 - -------------------------------------------------------------------------------- Consumer Services 9,059,183 14.6 - -------------------------------------------------------------------------------- Consumer Staples 8,411,739 13.5 - -------------------------------------------------------------------------------- Energy 2,011,039 3.2 - -------------------------------------------------------------------------------- Finance 15,831,969 25.6 - -------------------------------------------------------------------------------- Healthcare 5,798,205 9.4 - -------------------------------------------------------------------------------- Multi Industry 102,080 0.2 - -------------------------------------------------------------------------------- Technology 7,982,752 12.9 - -------------------------------------------------------------------------------- Utilities 2,329,890 3.8 - -------------------------------------------------------------------------------- Total Investments* 57,774,081 93.3 - -------------------------------------------------------------------------------- Cash and receivables, net of liabilities 4,174,566 6.7 - -------------------------------------------------------------------------------- Net Assets $61,948,647 100.0% - -------------------------------------------------------------------------------- Worldwide Privatization Portfolio - -------------------------------------------------------------------------------- PERCENT OF NET U.S. $ VALUE ASSETS - -------------------------------------------------------------------------------- Aerospace & Defense $ 91,006 0.2% - -------------------------------------------------------------------------------- Basic Industries 3,447,330 7.5 - -------------------------------------------------------------------------------- Capital Goods 46,597 0.1 - -------------------------------------------------------------------------------- Consumer Manufacturing 373,876 0.8 - -------------------------------------------------------------------------------- Consumer Services 5,737,129 12.5 - -------------------------------------------------------------------------------- Consumer Staples 3,662,870 8.0 - -------------------------------------------------------------------------------- Energy 2,758,985 6.0 - -------------------------------------------------------------------------------- Finance 10,725,553 23.5 - -------------------------------------------------------------------------------- Healthcare 1,684,874 3.7 - -------------------------------------------------------------------------------- Multi Industry 540,350 1.2 - -------------------------------------------------------------------------------- Technology 1,698,098 3.7 - -------------------------------------------------------------------------------- Transportation 1,927,635 4.2 - -------------------------------------------------------------------------------- Utilities 11,185,182 24.5 - -------------------------------------------------------------------------------- Total Investments 43,879,485 95.9 - -------------------------------------------------------------------------------- Cash and receivables, net of liabilities 1,856,061 4.1 - -------------------------------------------------------------------------------- Net Assets $45,735,546 100.0% - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- * Excludes short-term obligations. A-5 CONSERVATIVE INVESTORS PORTFOLIO PORTFOLIO OF INVESTMENTS June 30, 1999 (unaudited) Alliance Variable Products Series Fund ================================================================================ Company Shares U.S. $ Value - -------------------------------------------------------------------------------- COMMON & PREFERRED STOCKS-15.8% UNITED STATES INVESTMENTS-10.7% FINANCE-1.4% BANKING - REGIONAL-0.4% BankAmerica Corp. .................................. 1,699 $ 124,558 --------------- INSURANCE-0.6% American International Group, Inc.............................................. 950 111,209 Citigroup, Inc. .................................... 2,400 114,000 --------------- 225,209 --------------- MISCELLANEOUS-0.4% MBNA Corp. ......................................... 4,200 128,625 --------------- 478,392 --------------- CONSUMER STAPLES-1.3% BEVERAGES-0.3% Coca-Cola Co. ...................................... 1,700 106,250 --------------- HOUSEHOLD PRODUCTS-0.3% Procter & Gamble Co. ............................... 1,200 107,100 --------------- RETAIL - FOOD & DRUG-0.3% Kroger Co. (a) ..................................... 4,400 122,925 --------------- TOBACCO-0.4% Philip Morris Cos., Inc. ........................... 3,100 124,581 --------------- 460,856 --------------- ENERGY-1.3% INTERNATIONAL-0.6% Chevron Corp. ...................................... 1,200 114,225 Exxon Corp. ........................................ 1,300 100,262 --------------- 214,487 --------------- OIL SERVICE-0.7% Halliburton Co. .................................... 2,600 117,650 Noble Drilling Corp. (a) ........................... 5,700 112,219 --------------- 229,869 --------------- 444,356 --------------- BASIC INDUSTRY-1.3% CHEMICALS-0.6% Du Pont E.I. de Nemours & Co .............................................. 1,600 109,300 Union Carbide Corp. ................................ 2,200 107,250 --------------- 216,550 --------------- MINING & METALS-0.4% Alcoa, Inc. ........................................ 1,900 117,563 --------------- PAPER & FOREST PRODUCTS-0.3% International Paper Co. ............................ 2,100 106,050 --------------- 440,163 --------------- TECHNOLOGY-1.1% COMPUTER HARDWARE-0.3% Dell Computer Corp. (a) ............................ 2,800 103,513 --------------- COMPUTER SOFTWARE-0.4% Microsoft Corp. (a) ................................ 1,500 135,187 --------------- NETWORKING SOFTWARE-0.4% Cisco Systems, Inc. (a) ............................ 2,200 141,694 --------------- 380,394 --------------- CONSUMER SERVICES-1.1% RETAIL - GENERAL MERCHANDISE-1.1% Dayton Hudson Corp. ................................ 1,800 117,000 Home Depot, Inc. ................................... 2,000 128,875 Wal-Mart Stores, Inc. .............................. 2,600 125,450 --------------- 371,325 --------------- CONSUMER MANUFACTURING-0.9% AUTO & RELATED-0.9% Delphi Automotive Systems Corp ............................................ 858 15,927 General Motors Corp. ............................... 1,300 85,800 Goodyear Tire & Rubber Co. ......................... 1,800 105,862 Harley-Davidson, Inc. .............................. 2,000 108,750 --------------- 316,339 --------------- MULTI-INDUSTRY COMPANIES-0.7% Minnesota Mining & Manufacturing Co. ............................... 1,200 104,325 Tyco International, Ltd. ........................... 1,400 132,650 --------------- 236,975 --------------- CAPITAL GOODS-0.6% MACHINERY-0.6% Allied Signal, Inc. ................................ 1,900 119,700 Caterpillar, Inc. .................................. 1,700 102,000 --------------- 221,700 --------------- UTILITY-0.4% TELEPHONE UTILITY-0.4% MCI WorldCom, Inc. (a) ............................. 1,400 120,444 --------------- HEALTH CARE-0.3% MEDICAL PRODUCTS-0.3% Johnson & Johnson Co. .............................. 1,200 117,600 --------------- AEROSPACE & DEFENSE-0.3% AEROSPACE-0.3% United Technologies Corp. .......................... 1,500 107,531 --------------- Total United States Investments (cost $2,982,485) ............................... 3,696,075 --------------- B-1 Alliance Variable Products Series Fund ================================================================================ Company Shares U.S. $ Value - -------------------------------------------------------------------------------- FOREIGN INVESTMENTS-5.1% FINLAND-1.4% Nokia AB OYJ Corp. Series A ........................................ 5,400 $ 473,160 --------------- FRANCE-1.1% Carrefour, SA ...................................... 900 132,206 Sanofi, SA (a) ..................................... 2,160 91,626 SEITA .............................................. 1,080 62,346 Total, SA Cl.B ..................................... 650 83,824 --------------- 370,002 --------------- GERMANY-0.1% ProSieben Media AG pfd ............................. 1,080 48,986 --------------- JAPAN-0.3% Honda Motor Co. .................................... 2,000 84,814 --------------- NETHERLANDS-0.2% Akzo Nobel NV ...................................... 1,900 79,912 --------------- SPAIN-0.6% Banco Bilbao Vizcaya, SA ........................... 2,700 38,994 Tabacalera, SA ..................................... 3,200 64,655 Telefonica, SA ..................................... 2,200 105,932 --------------- 209,581 --------------- SWEDEN-0.2% AstraZeneca Group Plc .............................. 1,917 74,747 --------------- SWITZERLAND-0.7% Nestle, SA ......................................... 43 77,451 Novartis AG ........................................ 38 55,469 Zurich Allied AG ................................... 162 92,089 --------------- 225,009 --------------- UNITED KINGDOM-0.5% Royal Bank of Scotland Group Plc ............................................. 2,774 56,843 United News & Media Plc ............................ 3,200 30,768 Vodafone Group Plc ................................. 4,321 85,001 --------------- 172,612 --------------- Total Foreign Investments (cost $1,329,815) ............................... 1,738,823 --------------- Total Common & Preferred Stocks (cost $4,312,300) ............................... 5,434,898 --------------- Principal Amount (000) U.S. $ Value - -------------------------------------------------------------------------------- DEBT OBLIGATIONS-68.4% U.S. GOVERNMENT & AGENCY OBLIGATIONS-68.4% Federal Home Loan Mortgage Corp 5.75%, 6/15/01 .................................. $ 2,000 $ 1,997,392 Federal National Mortgage Assoc 5.625%, 5/14/04 ................................. 4,700 4,554,582 U.S. Treasury Bond 5.50%, 8/15/28 .................................. 3,400 3,113,108 U.S. Treasury Notes 3.875%, 1/15/09 (b) ............................. 1,722 1,679,804 4.75%, 2/15/04 .................................. 2,500 2,404,675 4.75%, 11/15/08 ................................. 1,800 1,652,904 6.50%, 8/31/01 .................................. 5,175 5,272,031 6.875%, 5/15/06 ................................. 2,760 2,905,756 --------------- Total Debt Obligations (cost $23,557,025) .............................. 23,580,252 --------------- SHORT-TERM INVESTMENTS-11.9% COMMERCIAL PAPER-11.6% Barclays Bank Plc 5.16%, 3/31/00 .................................. 4,000 4,002,879 --------------- TIME DEPOSIT-0.3% State Street Bank Euro Dollar 4.50%, 7/01/99 .................................. 103 103,000 --------------- Total Short-Term Investments (amortized cost $4,105,879) ..................... 4,105,879 --------------- TOTAL INVESTMENTS-96.1% (cost $31,975,204) .............................. 33,121,029 Other assets less liabilities-3.9% ................................ 1,342,537 --------------- NET ASSETS-100% .................................... $ 34,463,566 =============== - -------------------------------------------------------------------------------- (a) Non-income producing security. (b) Treasury Inflation Protection Securities. See Glossary of Terms on page B-39. See Notes to Financial Statements. B-2 GROWTH INVESTORS PORTFOLIO PORTFOLIO OF INVESTMENTS June 30, 1999 (unaudited) Alliance Variable Products Series Fund ================================================================================ Company Shares U.S. $ Value - -------------------------------------------------------------------------------- COMMON STOCKS & OTHER INVESTMENTS-51.1% UNITED STATES INVESTMENTS-38.3% CONSUMER STAPLES-4.7% BEVERAGES-1.1% Coca-Cola Co. ...................................... 3,300 $ 206,250 --------------- HOUSEHOLD PRODUCTS-1.1% Procter & Gamble Co. ............................... 2,500 223,125 --------------- RETAIL - FOOD & DRUG-1.2% Kroger Co. (a) ..................................... 8,000 223,500 --------------- TOBACCO-1.3% Philip Morris Cos., Inc. ........................... 6,100 245,144 --------------- 898,019 --------------- FINANCE-4.7% BANKING - REGIONAL-1.3% BankAmerica Corp. .................................. 3,300 241,931 --------------- INSURANCE-2.4% American International Group, Inc. ..................................... 2,000 234,125 Citigroup, Inc. .................................... 4,800 228,000 --------------- 462,125 --------------- MISCELLANEOUS-1.0% MBNA Corp. ......................................... 6,000 183,750 --------------- 887,806 --------------- ENERGY-4.7% INTERNATIONAL-2.3% Chevron Corp. ...................................... 2,300 218,931 Exxon Corp. ........................................ 2,700 208,238 --------------- 427,169 --------------- OIL SERVICE-2.4% Halliburton Co. .................................... 5,200 235,300 Noble Drilling Corp. (a) ........................... 11,200 220,500 --------------- 455,800 --------------- 882,969 --------------- BASIC INDUSTRY-4.6% CHEMICALS-2.3% Du Pont E.I. de Nemours & Co .............................................. 3,300 225,431 Union Carbide Corp. ................................ 4,300 209,625 --------------- 435,056 --------------- MINING & METALS-1.2% Alcoa, Inc. ........................................ 3,700 228,938 --------------- PAPER & FOREST PRODUCTS-1.1% International Paper Co. ............................ 4,100 207,050 --------------- 871,044 --------------- TECHNOLOGY-4.0% COMPUTER HARDWARE-1.1% Dell Computer Corp. (a) ............................ 5,700 210,722 --------------- COMPUTER SOFTWARE-1.4% Microsoft Corp. (a) ................................ 3,000 270,375 --------------- NETWORKING SOFTWARE-1.5% Cisco Systems, Inc. (a) ............................ 4,300 276,947 --------------- 758,044 --------------- CONSUMER SERVICES-3.9% RETAIL - GENERAL MERCHANDISE-3.9% Dayton Hudson Corp. ................................ 3,500 227,500 Home Depot, Inc. ................................... 3,900 251,306 Wal-Mart Stores, Inc. .............................. 5,200 250,900 --------------- 729,706 --------------- CONSUMER MANUFACTURING-3.2% AUTO & RELATED-3.2% Delphi Automotive Systems Corp ............................................ 1,696 31,482 General Motors Corp. ............................... 2,300 151,800 Goodyear Tire & Rubber Co. ......................... 3,600 211,725 Harley-Davidson, Inc. .............................. 3,900 212,062 --------------- 607,069 --------------- MULTI-INDUSTRY COMPANIES-2.5% Minnesota Mining & Manufacturing Co. ............................... 2,400 208,650 Tyco International, Ltd. ........................... 2,800 265,300 --------------- 473,950 --------------- CAPITAL GOODS-2.3% MACHINERY-2.3% AlliedSignal, Inc. ................................. 3,700 233,100 Caterpillar, Inc. .................................. 3,500 210,000 --------------- 443,100 --------------- UTILITY-1.3% TELEPHONE UTILITY-1.3% MCI WorldCom, Inc. (a) ............................. 2,800 240,888 --------------- HEALTH CARE-1.2% MEDICAL PRODUCTS-1.2% Johnson & Johnson Co. .............................. 2,400 235,200 --------------- AEROSPACE & DEFENSE-1.2% AEROSPACE-1.2% United Technologies Corp. .......................... 3,100 222,231 --------------- Total United States Investments (cost $6,049,506) ............................... 7,250,026 --------------- B-3 Alliance Variable Products Series Fund ================================================================================ Company Shares U.S. $ Value - -------------------------------------------------------------------------------- FOREIGN INVESTMENTS-12.8% FINLAND-3.3% Nokia AB OYJ Corp. Series A ........................................ 7,200 $ 630,880 --------------- FRANCE-2.9% Carrefour, SA ...................................... 1,200 176,275 Sanofi, SA (a) ..................................... 3,480 147,620 SEITA .............................................. 1,730 99,869 Total, SA Cl.B ..................................... 1,010 130,249 --------------- 554,013 --------------- GERMANY-0.4% ProSieben Media AG pfd ............................. 1,730 78,468 --------------- JAPAN-0.5% Honda Motor Co. .................................... 2,000 84,814 --------------- NETHERLANDS-0.6% Akzo Nobel NV ...................................... 2,900 121,970 --------------- SPAIN-1.4% Banco Bilbao Vizcaya, SA ........................... 4,300 62,102 Tabacalera, SA ..................................... 4,300 86,880 Telefonica, SA ..................................... 2,200 105,932 --------------- 254,914 --------------- SWEDEN-0.6% AstraZeneca Group Plc .............................. 2,926 114,090 --------------- SWITZERLAND-1.7% Nestle, SA ......................................... 58 104,468 Novartis AG ........................................ 72 105,099 Zurich Allied AG ................................... 200 113,691 --------------- 323,258 --------------- UNITED KINGDOM-1.4% Royal Bank of Scotland Group Plc ....................................... 4,093 83,871 United News & Media Plc ............................ 6,000 57,691 Vodafone Group Plc ................................. 5,824 114,567 --------------- 256,129 --------------- Total Foreign Investments (cost $1,888,811) ............................... 2,418,536 --------------- Total Common Stocks & Other Investments (cost $7,938,317) ............................... 9,668,562 --------------- Principal Amount (000) U.S. $ Value - -------------------------------------------------------------------------------- DEBT OBLIGATIONS-39.6% U.S. GOVERNMENT OBLIGATIONS-39.6% U.S. Treasury Bond 5.50%, 8/15/28 .................................. $ 800 $ 732,496 U.S. Treasury Notes 3.875%, 1/15/09 (b) ............................. 1,925 1,877,428 4.75%, 2/15/04 .................................. 1,700 1,635,179 4.75%, 11/15/08 ................................. 400 367,312 6.50%, 8/31/01 .................................. 2,160 2,200,500 6.875%, 5/15/06 ................................. 660 694,854 --------------- Total Debt Obligations (cost $7,497,711) ............................... 7,507,769 --------------- SHORT-TERM INVESTMENTS-8.2% TIME DEPOSIT-6.7% State Street Cayman Islands 4.50%, 7/01/99 .................................. 1,271 1,271,000 --------------- U.S. Government-1.5% U.S. Treasury Bill 4.00%, 9/23/99 .................................. 280 277,008 --------------- Total Short-Term Investments (amortized cost $1,548,008) ..................... 1,548,008 --------------- TOTAL INVESTMENTS-98.9% (cost $16,984,036) .............................. 18,724,339 Other assets less liabilities-1.1% ................................ 215,812 --------------- NET ASSETS-100% .................................... $ 18,940,151 =============== - -------------------------------------------------------------------------------- (a) Non-income producing security. (b) Treasury Inflation Protection Securities. See Glossary of Terms on page B-39. See Notes to Financial Statements. B-4 TOTAL RETURN PORTFOLIO PORTFOLIO OF INVESTMENTS June 30, 1999 (unaudited) Alliance Variable Products Series Fund ================================================================================ Company Shares U.S. $ Value - -------------------------------------------------------------------------------- COMMON STOCKS-60.2% FINANCE-13.4% BANKING - MONEY CENTERS-5.1% Bank One Corp. .................................... 6,500 $ 387,156 BankAmerica Corp. ................................. 21,000 1,539,562 Chase Manhattan Corp. ............................. 13,900 1,204,088 Wells Fargo & Co. ................................. 10,000 427,500 -------------- 3,558,306 -------------- INSURANCE-3.7% Citigroup, Inc..................................... 37,200 1,767,000 PMI Group, Inc. ................................... 5,600 351,750 Travelers Property Casualty Corp. Cl.A ..................................... 10,400 406,900 -------------- 2,525,650 -------------- MISCELLANEOUS-4.6% Associates First Capital Corp. Cl.A ........................................... 11,400 505,163 Household International, Inc. ..................... 41,400 1,961,325 MBNA Corp. ........................................ 14,250 436,406 Newcourt Credit Group, Inc. (Canada) ....................................... 4,900 63,394 The CIT Group, Inc. Cl. A ......................... 8,000 231,000 -------------- 3,197,288 -------------- 9,281,244 -------------- TECHNOLOGY-9.5% COMMUNICATIONS EQUIPMENT-0.8% Lucent Technologies, Inc. ......................... 4,125 278,179 Tellabs, Inc. (a) ................................. 4,200 283,894 -------------- 562,073 -------------- COMPUTER HARDWARE-0.3% Compaq Computer Corp. ............................. 8,600 203,712 -------------- COMPUTER PERIPHERALS-0.3% Seagate Technology, Inc. (a) ...................... 7,500 192,188 -------------- COMPUTER SERVICES-4.6% Computer Sciences Corp. ........................... 14,000 968,625 Electronic Data Systems Corp. ..................... 11,500 650,469 First Data Corp. .................................. 31,600 1,546,425 -------------- 3,165,519 -------------- COMPUTER SOFTWARE-0.6% Oracle Corp. (a) .................................. 10,800 400,950 -------------- SEMI-CONDUCTOR COMPONENTS-1.4% Altera Corp. (a) .................................. 10,600 389,881 Atmel Corp. (a) ................................... 22,300 583,285 -------------- 973,166 -------------- MISCELLANEOUS-1.5% Sanmina Corp. (a) ................................. 6,000 455,250 Solectron Corp. (a) ............................... 9,400 626,862 -------------- 1,082,112 -------------- 6,579,720 -------------- HEALTH CARE-8.3% BIOTECHNOLOGY-0.3% Genzyme Corp. (a) ................................. 5,305 221,656 -------------- DRUGS-4.3% Bristol-Myers Squibb Co. .......................... 27,800 1,958,163 Schering-Plough Corp. ............................. 18,400 975,200 -------------- 2,933,363 -------------- MEDICAL SERVICES-3.7% Columbia HCA/Healthcare Corp ........................................... 23,400 533,813 LifePoint Hospitals, Inc. (a) ..................... 1,231 16,503 PacifiCare Health Systems, Inc. Cl.B, (a) ................................. 6,000 431,813 Tenet Healthcare Corp. (a) ....................... 50,200 931,837 Triad Hospitals, Inc. (a) ......................... 1,231 16,580 United Healthcare Corp. ........................... 9,800 613,725 -------------- 2,544,271 -------------- 5,699,290 -------------- CONSUMER SERVICES-5.9% AIRLINES-0.9% Continental Airlines, Inc. Cl.B, (a) ...................................... 17,200 647,150 -------------- BROADCASTING & CABLE-1.1% A.H. Belo Corp. Series A .......................... 20,900 411,468 Scripps E.W. Co. .................................. 2,700 128,419 Vodafone Group PLC ................................ 1,000 197,000 -------------- 736,887 -------------- ENTERTAINMENT & LEISURE-0.4% Royal Caribbean Cruises, Ltd ............................................ 6,000 262,500 -------------- PRINTING & PUBLISHING-1.0% Donnelley (R.R.) & Sons Co. ....................... 7,400 274,263 Gannett Co., Inc. ................................. 6,000 428,250 -------------- 702,513 -------------- RETAIL - GENERAL MERCHANDISE-2.5% Dayton Hudson Corp. ............................... 4,400 286,000 Saks, Inc. (a) .................................... 33,000 952,875 Tommy Hilfiger Corp. (a) .......................... 6,700 492,450 -------------- 1,731,325 -------------- 4,080,375 -------------- B-5 Alliance Variable Products Series Fund ================================================================================ Company Shares U.S. $ Value - -------------------------------------------------------------------------------- CONSUMER STAPLES-5.4% BEVERAGES-1.0% Coca-Cola Enterprises, Inc. ....................... 8,900 $ 264,775 Pepsi Bottling Group, Inc. ........................ 18,500 426,656 -------------- 691,431 -------------- COSMETICS-0.3% Avon Products, Inc. ............................... 4,300 238,650 -------------- FOOD-1.9% General Mills, Inc. ............................... 4,200 337,575 Heinz (H.J.) Co. .................................. 4,100 205,512 Nabisco Group Holding Corp. (a) ...................................... 19,100 373,644 Tyson Foods, Inc. Cl.A ............................ 17,500 393,750 -------------- 1,310,481 -------------- RetaiL - FOOD & Drug-0.6% Kroger Co. (a) .................................... 14,400 402,300 -------------- TOBACCO-1.6% Philip Morris Cos., Inc. .......................... 22,600 908,238 RJR Nabisco Holdings Corp. (a) ...................................... 6,366 200,529 -------------- 1,108,767 -------------- 3,751,629 -------------- ENERGY-6.1% DOMESTIC INTEGRATED-2.2% Kerr-McGee Corp. .................................. 8,800 441,650 USX-Marathon Group ................................ 33,800 1,100,612 -------------- 1,542,262 -------------- DOMESTIC PRODUCERS-0.4% Murphy Oil Corp. .................................. 2,650 129,353 Union Pacific Resources Group, Inc. .................................... 7,200 117,450 -------------- 246,803 -------------- OIL SERVICES-3.0% BJ Services Co. (a) ............................... 10,000 294,375 Noble Drilling Corp. (a) .......................... 55,600 1,094,625 Total, SA (ADR) ................................... 6,800 438,175 Transocean Offshore, Inc. ......................... 8,500 223,125 -------------- 2,050,300 -------------- MISCELLANEOUS-0.5% AES Corp. (a) ..................................... 6,300 366,188 -------------- 4,205,553 -------------- MULTI-INDUSTRY COMPANIES-3.1% Honeywell, Inc. ................................... 2,900 336,037 Tyco International, Ltd. .......................... 15,700 1,487,575 U.S. Industries, Inc. ............................. 18,600 316,200 -------------- 2,139,812 -------------- Shares or Principal Amount (000) U.S. $ Value - -------------------------------------------------------------------------------- UTILITIES-4.3% ELECTRIC & GAS UTILITIES-2.4% Allegheny Energy, Inc. ............................ 5,400 $ 173,137 CMS Energy Corp. .................................. 9,200 385,250 Consolidated Edison, Inc. ......................... 2,700 122,175 Duke Energy Corp. ................................. 2,100 114,188 Edison International .............................. 13,300 355,775 FPL Group, Inc. ................................... 5,000 273,125 GPU, Inc. ......................................... 2,500 105,469 Pinnacle West Capital Corp. ....................... 3,800 152,950 -------------- 1,682,069 -------------- TELEPHONE UTILITIES-1.9% AT&T Corp. ........................................ 12,550 700,447 MCI WorldCom, Inc. (a) ............................ 6,726 578,646 -------------- 1,279,093 -------------- 2,961,162 -------------- CAPITAL GOODS-3.0% ELECTRICAL EQUIPMENT-0.4% General Electric Co. .............................. 2,000 226,000 -------------- MISCELLANEOUS-2.6% Allied-Signal, Inc. ............................... 15,300 963,900 United Technologies Corp. ......................... 11,800 845,912 -------------- 1,809,812 -------------- 2,035,812 -------------- BASIC INDUSTRIES-0.9% CHEMICALS-0.9% Praxair, Inc. ..................................... 13,000 636,188 -------------- CONSUMER MANUFACTURING-0.3% BUILDING & RELATED-0.3% Masco Corp. ....................................... 7,000 202,125 -------------- Total Common Stocks (cost $34,097,643) ............................. 41,572,910 -------------- U.S. GOVERNMENT OBLIGATIONS-20.9% U.S. Treasury Bonds 5.25%, 11/15/28 ................................ 685 607,191 5.50%, 8/15/28 ................................. 500 457,810 6.125%, 11/15/27 ............................... 1,400 1,390,592 8.125%, 8/15/19 ................................ 500 603,905 U.S. Treasury Notes 5.50%, 5/15/09 ................................. 250 244,218 6.50%, 8/31/01 ................................. 500 509,375 6.50%, 5/31/02 ................................. 5,500 5,624,630 6.50%, 10/15/06 ................................ 250 258,125 6.75%, 4/30/00 ................................. 2,400 2,428,128 6.875%, 5/15/06 ................................ 750 789,607 7.25%, 5/15/04 ................................. 1,400 1,486,618 -------------- Total U.S. Government Obligations (cost $14,849,189) ............................. 14,400,199 -------------- B-6 TOTAL RETURN PORTFOLIO PORTFOLIO OF INVESTMENTS (continued) Alliance Variable Products Series Fund ================================================================================ Principal Amount (000) U.S. $ Value - -------------------------------------------------------------------------------- CORPORATE DEBT OBLIGATIONS-11.4% AEROSPACE & DEFENSE-0.7% Raytheon Co. 6.40%, 12/15/18 (b) ............................ $ 550 $ 496,660 -------------- AIR TRANSPORTATION-0.2% Northwest Airlines, Inc. 8.52%, 4/07/04 ................................. 150 144,942 -------------- AUTOMOTIVE-1.0% Borg-Warner Automotive, Inc. 6.50%, 2/15/09 ................................. 250 236,193 Federal-Mogul Corp. 7.50%, 1/15/09 (b) ............................. 500 461,570 -------------- 697,763 -------------- BANKING - MONEY CENTERS-1.6% Bank One Corp. 5.625%, 2/17/04 ................................ 500 479,678 Bank United Corp. 8.875%, 5/01/07 ................................ 150 150,346 Citicorp 6.375%, 11/15/08 ............................... 500 475,795 -------------- 1,105,819 -------------- BROADCASTING/MEDIA-0.7% CBS Corp. 7.15%, 5/20/05 ................................. 500 498,225 -------------- CABLE-0.5% Charter Communications Holdings LLC 8.625%, 4/01/09 (b) ............................ 100 96,500 Cox Communication, Inc. 6.85%, 1/15/18 ................................. 250 230,319 -------------- 326,819 -------------- CHEMICALS-0.5% ICI North America Inc. 8.875%, 11/15/06 ............................... 150 162,689 Lyondell Chemical Co. 9.875%, 5/01/07 (b) ............................ 150 154,125 -------------- 316,814 -------------- COMMUNICATIONS-0.4% News America Holdings, Inc. 9.50%, 7/15/24 ................................. 250 288,381 -------------- ELECTRIC & GAS UTILITY-1.6% Arizona Public Service Co. 5.875%, 2/15/04 ................................ 250 242,399 Calenergy Co., Inc. 8.48%, 9/15/28 ................................. 500 533,424 Connecticut Light & Power Co. 6.125%, 2/01/04 ................................ 300 288,694 -------------- 1,064,517 -------------- ENERGY-0.2% Conoco Inc. 5.90%, 4/15/04 ................................. 150 146,312 -------------- FINANCIAL-1.7% Chase Manhattan Corp. 6.00%, 2/15/09 ................................. 150 139,140 China Development Bank 8.25%, 5/15/09 ................................. 100 99,625 Household Finance Corp. 6.50%, 11/15/08 ................................ 500 475,377 Merrill Lynch & Co., Inc. 6.00%, 2/17/09 ................................. 500 461,812 -------------- 1,175,954 -------------- INDUSTRIAL-0.1% Delphi Automotive Systems Corp 7.125%, 5/01/29 ................................ 100 92,691 -------------- PETROLEUM PRODUCTS-0.7% Apache Finance PTY, Ltd. 6.50%, 12/15/07 ................................ 250 239,020 Temple-Inland, Inc. 6.75%, 3/01/09 ................................. 250 237,630 -------------- 476,650 -------------- PUBLISHING-0.3% Knight-Ridder, Inc. 6.875%, 3/15/29 ................................ 250 232,045 -------------- RETAIL-0.2% Kohl's Corp. 7.25%, 6/01/29 (b) ............................. 150 145,074 -------------- TELEPHONE UTILITY-0.2% MCI WorldCom, Inc. 6.95%, 8/15/28 ................................. 150 141,820 -------------- TRANSPORTATION-0.8% ERAC USA Finance Co. 6.625%, 5/15/06 (b) ............................ 100 99,950 Union Pacific Corp. 6.625%, 2/01/29 ................................ 500 439,314 -------------- 539,264 -------------- Total Corporate Debt Obligations (cost $8,402,732) .............................. 7,889,750 -------------- B-7 Alliance Variable Products Series Fund ================================================================================ Principal Amount (000) U.S. $ Value - -------------------------------------------------------------------------------- YANKEE BONDS-0.9% Abbey National Plc 6.70%, 6/14/08 ................................. $ 150 $ 139,389 Corporacion Andina De Fomento 7.75%, 3/01/04 ................................. 100 97,520 Deutsche Capital Bank 7.872%, 12/29/49 (b) ........................... 100 92,738 Laidlaw, Inc. 7.65%, 5/15/06 ................................. 150 146,217 Metronet Communications Corp 0.00%, 6/15/08 ................................. 150 111,000 -------------- Total Yankee Bonds (cost $613,357) ................................ 586,864 -------------- SHORT-TERM INVESTMENT-7.2% TIME DEPOSIT-7.2% State Street Cayman Islands 4.50%, 7/01/99 (amortized cost $4,988,000) .................................... 4,988 4,988,000 -------------- TOTAL INVESTMENTS-100.6% (cost $62,950,921) ............................. 69,437,723 Other assets less liabilities-(0.6%) ............................. (387,192) -------------- NET ASSETS-100% ................................... $ 69,050,531 ============== - -------------------------------------------------------------------------------- (a) Non-income producing security. (b) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration normally applied to certain qualified buyers. At June 30, 1999, the aggregate market value of these securities amounted to $1,546,617 or 2.2% of net assets. See Glossary of Terms on page B-39. See Notes to Financial Statements. B-8 GROWTH AND INCOME PORTFOLIO PORTFOLIO OF INVESTMENTS June 30, 1999 (unaudited) Alliance Variable Products Series Fund ================================================================================ Company Shares U.S. $ Value - -------------------------------------------------------------------------------- COMMON STOCKS-96.7% FINANCE-21.1% BANKING - MONEY CENTERS-2.4% Chase Manhattan Corp. ............................. 134,200 $ 11,625,075 -------------- BANKING - REGIONAL-5.7% Bank One Corp. .................................... 112,100 6,676,956 BankAmerica Corp. ................................. 226,900 16,634,606 Wells Fargo & Co. ................................. 105,000 4,488,750 -------------- 27,800,312 -------------- BROKERAGE & MONEY MANAGEMENT-1.1% Merrill Lynch & Co., Inc. ......................... 65,000 5,195,937 -------------- INSURANCE-5.4% Citigroup, Inc. ................................... 351,150 16,679,625 PMI Group, Inc. ................................... 58,900 3,699,656 The Hartford Financial Services Group, Inc. ........................... 36,000 2,099,250 Travelers Property Casualty Corp. Cl.A ..................................... 99,300 3,885,113 -------------- 26,363,644 -------------- REAL ESTATE-0.2% ProLogis Trust .................................... 37,090 751,073 -------------- MISCELLANEOUS-6.3% Associates First Capital Corp. Cl.A ........................................... 108,800 4,821,200 Household International, Inc. ..................... 399,500 18,926,313 MBNA Corp. ........................................ 113,850 3,486,656 Newcourt Credit Group, Inc. (Canada) ....................................... 52,000 672,750 The CIT Group, Inc. Cl.A .......................... 83,200 2,402,400 -------------- 30,309,319 -------------- 102,045,360 -------------- TECHNOLOGY-14.4% COMMUNICATION EQUIPMENT-1.1% Lucent Technologies, Inc. ......................... 39,765 2,681,652 Tellabs, Inc. (a) ................................. 42,000 2,838,938 -------------- 5,520,590 -------------- COMPUTER HARDWARE-0.5% Compaq Computer Corp. ............................. 90,700 2,148,456 -------------- COMPUTER PERIPHERALS-0.4% Seagate Technology, Inc. (a) ...................... 77,000 1,973,125 -------------- COMPUTER SERVICES-6.0% Computer Sciences Corp. ........................... 111,000 7,679,812 Electronic Data Systems Corp ........................................... 115,000 6,504,688 First Data Corp. .................................. 301,700 14,764,444 -------------- 28,948,944 -------------- COMPUTER SOFTWARE-1.6% Oracle Corp. (a) .................................. 206,100 7,651,463 -------------- SEMI-CONDUCTOR COMPONENTS-2.0% Altera Corp. (a) .................................. 112,000 4,119,500 Atmel Corp. (a) ................................... 213,200 5,576,512 -------------- 9,696,012 -------------- MISCELLANEOUS-2.8% Sanmina Corp. (a) ................................. 100,500 7,625,437 Solectron Corp. (a) ............................... 90,400 6,028,550 -------------- 13,653,987 -------------- 69,592,577 -------------- HEALTH CARE-12.1% BIOTECHNOLOGY-0.5% Genzyme Corp. (a) ................................. 42,500 2,059,922 -------------- DRUGS-5.9% Bristol-Myers Squibb Co. .......................... 271,800 19,144,912 Schering-Plough Corp. ............................. 178,000 9,434,000 -------------- 28,578,912 -------------- MEDICAL PRODUCTS-0.0% Genzyme Surgical Products (a) ................................... 7,607 33,518 -------------- MEDICAL SERVICES-5.7% Columbia HCA/Healthcare Corp ........................................... 223,900 5,107,719 Health Management Associates (a) ................................. 160,000 1,800,000 Lifepoint Hospitals, Inc. (a) ..................... 11,784 157,979 PacifiCare Health Systems, Inc. Cl.B (a) .................................. 57,400 4,131,006 Tenet Healthcare Corp. (a) ....................... 558,100 10,359,731 Triad Hospitals, Inc. (a) ......................... 11,784 158,716 United Healthcare Corp. ........................... 93,700 5,867,963 -------------- 27,583,114 -------------- 58,255,466 -------------- ENERGY-9.8% DOMESTIC INTEGRATED-4.3% Kerr-Mcgee Corp. .................................. 108,500 5,445,344 USX-Marathon Group ................................ 470,500 15,320,656 -------------- 20,766,000 -------------- DOMESTIC PRODUCERS-0.5% Murphy Oil Corp. .................................. 25,550 1,247,159 Union Pacific Resources Group, Inc. .................................... 70,600 1,151,663 -------------- 2,398,822 -------------- INTERNATIONAL-1.0% Total, SA (ADR) ................................... 74,000 4,768,375 -------------- B-9 Alliance Variable Products Series Fund ================================================================================ Company Shares U.S. $ Value - -------------------------------------------------------------------------------- OIL SERVICE-3.3% BJ Services Co. (a) ............................... 96,600 $ 2,843,663 Noble Drilling Corp. (a) .......................... 560,200 11,028,937 Transocean Offshore, Inc. ......................... 82,200 2,157,750 -------------- 16,030,350 -------------- MISCELLANEOUS-0.7% AES Corp. (a) ..................................... 60,300 3,504,937 -------------- 47,468,484 -------------- CONSUMER SERVICES-9.8% AIRLINES-1.4% Continental Airlines, Inc. (a) .................... 180,000 6,772,500 -------------- BROADCASTING & CABLE-1.5% A.H. Belo Corp. Series A .......................... 199,000 3,917,813 Scripps E.W. Co. .................................. 26,000 1,236,625 Vodafone Group Plc (ADR) .......................... 10,650 2,098,050 -------------- 7,252,488 -------------- ENTERTAINMENT & LEISURE-1.5% Royal Caribbean Cruises, Ltd ............................................ 57,500 2,515,625 Time Warner, Inc. ................................. 67,000 4,924,500 -------------- 7,440,125 -------------- PRINTING & PUBLISHING-1.5% Donnelley (R.R.) & Sons Co ............................................. 71,000 2,631,437 Gannett Co., Inc. ................................. 65,000 4,639,375 -------------- 7,270,812 -------------- RETAIL - GENERAL MERCHANDISE-3.9% Dayton Hudson Corp. ............................... 47,100 3,061,500 Saks, Inc. (a) .................................... 324,600 9,372,825 Tommy Hilfiger Corp. (a) .......................... 83,800 6,159,300 -------------- 18,593,625 -------------- 47,329,550 -------------- CONSUMER STAPLES-9.7% BEVERAGES-2.3% Coca-Cola Enterprises, Inc. ....................... 168,000 4,998,000 Pepsi Bottling Group, Inc. ........................ 260,000 5,996,250 -------------- 10,994,250 -------------- COSMETICS-0.5% Avon Products, Inc. ............................... 43,500 2,414,250 -------------- FOOD-2.6% General Mills, Inc. ............................... 39,500 3,174,813 Heinz (H.J.) Co. .................................. 43,000 2,155,375 Nabisco Group Holding Corp. (a) ...................................... 181,800 3,556,462 Tyson Foods, Inc. Cl.A ............................ 167,200 3,762,000 -------------- 12,648,650 -------------- RETAIL - FOOD & DRUG-1.4% Kroger Co. (a) .................................... 251,200 7,017,900 -------------- TOBACCO-2.9% Philip Morris Cos., Inc. .......................... 299,000 12,016,062 RJR Nabisco Holdings, Inc. (a) ....................................... 60,600 1,908,900 -------------- 13,924,962 -------------- 47,000,012 -------------- UTILITIES-7.7% ELECTRIC & GAS UTILITY-4.8% Allegheny Energy, Inc. ............................ 51,900 1,664,044 CMS Energy Corp. .................................. 88,400 3,701,750 Consolidated Edison, Inc. ......................... 25,600 1,158,400 Duke Power Energy Corp. ........................... 20,600 1,120,125 Edison International .............................. 127,200 3,402,600 FPL Group, Inc. ................................... 47,900 2,616,537 GPU, Inc. ......................................... 143,700 6,062,344 Pinnacle West Capital Corp. ....................... 88,600 3,566,150 -------------- 23,291,950 -------------- TELEPHONE UTILITIES-2.9% AT&T Corp. ........................................ 148,241 8,273,701 MCI WorldCom, Inc. (a) ............................ 68,568 5,898,991 -------------- 14,172,692 -------------- 37,464,642 -------------- MULTI-INDUSTRY COMPANIES-4.9% Honeywell, Inc. ................................... 28,050 3,250,294 Tyco International, Ltd. .......................... 165,200 15,652,700 U.S. Industries, Inc. ............................. 269,100 4,574,700 -------------- 23,477,694 -------------- CAPITAL GOODS-4.1% ELECTRICAL EQUIPMENT-0.4% General Electric Co. .............................. 19,200 2,169,600 -------------- MISCELLANEOUS-3.7% Allied-Signal, Inc. ............................... 146,000 9,198,000 United Technologies Corp. ......................... 119,600 8,573,825 -------------- 17,771,825 -------------- 19,941,425 -------------- BASIC INDUSTRIES-1.7% CHEMICALS-1.7% Lyondell Chemical Co. ............................. 105,000 2,165,625 Praxair, Inc. ..................................... 123,000 6,019,313 -------------- 8,184,938 -------------- CONSUMER MANUFACTURING-0.9% BUILDING & RELATED-0.9% Masco Corp. ....................................... 153,000 4,417,875 -------------- B-10 GROWTH AND INCOME PORTFOLIO PORTFOLIO OF INVESTMENTS (continued) Alliance Variable Products Series Fund ================================================================================ Shares or Principal Amount (000) U.S. $ Value - ------------------------------------------------------------------------------- TRANSPORTATION-0.5% MISCELLANEOUS-0.5% Wisconsin Central Transport Corp.(a) ....................................... 120,000 $ 2,242,500 -------------- Total Common Stocks (cost $388,718,984) ............................ 467,420,523 -------------- SHORT-TERM INVESTMENT-4.9% TIME DEPOSIT-4.9% State Street Bank Euro Dollar 4.50%, 7/01/99 (amortized cost $23,802,000) ................................... $23,802 23,802,000 -------------- U.S. $ Value - ------------------------------------------------------------------------------- TOTAL INVESTMENTS-101.6% (cost $412,520,984) ............................ $ 491,222,523 Other assets less liabilities-(1.6%) ............................. (7,945,710) -------------- NET ASSETS-100% ................................... $ 483,276,813 ============== - -------------------------------------------------------------------------------- (a) Non-income producing security. See Glossary of Terms on page B-39. See Notes to Financial Statements. B-11 GROWTH PORTFOLIO PORTFOLIO OF INVESTMENTS June 30, 1999 (unaudited) Alliance Variable Products Series Fund ================================================================================ Company Shares U.S. $ Value - -------------------------------------------------------------------------------- COMMON & PREFERRED STOCKS-97.1% TECHNOLOGY-34.6% COMMUNICATIONS EQUIPMENT-5.9% General Motors Corp. Cl.H ......................... 13,600 $ 765,000 Global TeleSystems Group, Inc. (a) ....................................... 77,214 6,251,921 Loral Space & Communications (a) ............................. 271,800 4,892,400 Lucent Technologies, Inc. ......................... 14,850 1,001,447 Sterling Commerce, Inc. (a) ....................... 266,889 9,741,448 -------------- 22,652,216 -------------- COMMUNICATION SERVICES-3.8% Cable & Wireless Plc .............................. 10,000 127,519 IXC Communications, Inc. (a) ....................................... 42,000 1,647,187 Nextel Communications, Inc. Cl.A (a) ....................................... 241,000 12,102,719 Nextlink Communications, Inc. cv.pfd ......................................... 6,000 546,750 -------------- 14,424,175 -------------- COMPUTER HARDWARE-5.1% International Business Machines Corp. ................................. 151,000 19,516,750 -------------- COMPUTER SERVICES-2.6% Ceridian Corp. (a) ................................ 298,000 9,740,875 -------------- COMPUTER SOFTWARE-2.5% Sterling Software, Inc. (a) ....................... 362,200 9,666,212 -------------- ELECTRONICS-1.7% SCI Systems, Inc. (a) ............................. 137,400 6,526,500 -------------- NETWORKING SOFTWARE-2.1% Cisco Systems, Inc. (a) ........................... 126,600 8,153,831 -------------- SEMI-CONDUCTOR COMPONENTS-0.8% Altera Corp. (a) .................................. 34,000 1,250,563 Intel Corp. ....................................... 15,000 892,031 Micron Technology, Inc. (a) ....................... 26,000 1,048,125 -------------- 3,190,719 -------------- TELECOMMUNICATIONS-4.2% Colt Telecom Group Plc (ADR) (a) ...................................... 41,600 3,576,300 Globalstar Telecommunications, Ltd.(a) ........................................ 147,400 3,413,231 Intermedia Communications, Inc. (a) ....................................... 1,188 35,603 cv. pfd ........................................ 18,000 735,750 Millicom International Cellular, SA (Luxembourg) (a) ............................ 56,500 1,786,813 Nokia OYJ (ADR) (Finland) ......................... 24,000 2,197,500 Orange Plc (ADR) (a) .............................. 56,000 4,200,000 -------------- 15,945,197 -------------- MISCELLANEOUS-5.9% Ingram Micro, Inc. Cl.A (a) ....................... 62,900 1,619,675 Sanmina Corp. (a) ................................. 176,100 13,361,587 Solectron Corp. (a) ............................... 114,600 7,642,388 -------------- 22,623,650 -------------- 132,440,125 -------------- FINANCE-24.5% BANKING - MONEY CENTERS-3.0% Automatic Common Exchange Security Trust II .............................. 23,600 424,800 Chase Manhattan Corp. ............................. 95,940 8,310,802 The Bank of Tokyo-Mitsubishi, Ltd. (ADR) ..................................... 179,000 2,606,688 -------------- 11,342,290 -------------- BANKING - REGIONAL-5.8% Bank One Corp. .................................... 84,000 5,003,250 BankAmerica Corp. ................................. 152,600 11,187,487 Newcourt Credit Group, Inc. (Canada) ....................................... 399,400 5,167,238 The CIT Group, Inc. Cl.A .......................... 28,780 831,023 -------------- 22,188,998 -------------- INSURANCE-4.6% Ace, Ltd. ......................................... 32,000 904,000 American Bankers Insurance Group, Inc. .................................... 56,000 3,048,500 American International Group, Inc............................................. 118,037 13,817,706 -------------- 17,770,206 -------------- REAL ESTATE-2.5% Entertainment Properties Trust .......................................... 56,000 987,000 Humphrey Hospitality Trust, Inc............................................. 99,100 802,091 JP Realty, Inc. ................................... 129,400 2,660,787 Koger Equity, Inc. ................................ 100,000 1,843,750 Macerich Co. ...................................... 42,500 1,115,625 Spieker Properties, Inc. .......................... 56,000 2,177,000 -------------- 9,586,253 -------------- MISCELLANEOUS-8.6% Associates First Capital Corp. Cl.A ........................................... 117,000 5,184,563 Citigroup, Inc. ................................... 223,499 10,616,179 CompuCredit Corp. (a) ............................. 125,900 2,384,231 Household International, Inc. ..................... 62,000 2,937,250 MBNA Corp. ........................................ 381,975 11,697,984 -------------- 32,820,207 -------------- 93,707,954 -------------- B-12 GROWTH PORTFOLIO PORTFOLIO OF INVESTMENTS (continued) Alliance Variable Products Series Fund ================================================================================ Company Shares U.S. $ Value - -------------------------------------------------------------------------------- CONSUMER SERVICES-13.0% AIRLINES-1.9% Continental Airlines, Inc. Cl.B (a) ....................................... 83,000 $ 3,122,875 Delta Air Lines, Inc. ............................. 50,600 2,915,825 UAL Corp. (a) ..................................... 18,700 1,215,500 -------------- 7,254,200 -------------- BROADCASTING & CABLE-4.5% AT&T Corp.-Liberty Media Group Cl.A (a) ................................. 471,878 17,341,517 -------------- BUSINESS SERVICES-1.5% Cendant Corp. (a) ................................. 280,050 5,741,025 -------------- ENTERTAINMENT & LEISURE-1.0% Royal Caribbean Cruises, Ltd ........................................... 90,600 3,963,750 -------------- PRINTING & PUBLISHING-0.7% Readers Digest Association, Inc. pfd ....................................... 75,000 2,775,000 -------------- RETAIL - GENERAL MERCHANDISE-3.4% Home Depot, Inc. .................................. 93,300 6,012,019 Tandy Corp. ....................................... 49,400 2,414,425 The Limited, Inc. ................................. 97,300 4,414,987 -------------- 12,841,431 -------------- 49,916,923 -------------- HEALTH CARE-5.9% DRUGS-3.8% Bristol-Myers Squibb Co. .......................... 98,000 6,902,875 Merck & Co., Inc. ................................. 61,800 4,573,200 Schering-Plough Corp. ............................. 50,000 2,650,000 SICOR, Inc. 3.75%, cv. pfd. (a) ............................ 8,000 198,520 -------------- 14,324,595 -------------- MEDICAL PRODUCTS-0.3% Medtronic, Inc. ................................... 15,200 1,183,700 -------------- MEDICAL SERVICES-1.8% Health Management Associates, Inc. Cl.A (a) .................................. 129,000 1,451,250 McKesson HBOC, Inc. ............................... 171,160 5,498,515 -------------- 6,949,765 -------------- 22,458,060 -------------- UTILITIES-5.8% TELEPHONE UTILITIES-5.8% MCI WorldCom, Inc. (a) ............................ 181,284 15,596,089 Pacific Gateway Exchange, Inc. (a) ....................................... 95,600 2,778,375 Sprint Corp. ...................................... 71,000 3,749,688 -------------- 22,124,152 -------------- BUSINESS SERVICES-4.3% BROADCASTING & CABLE-2.6% CBS Corp. ......................................... 118,700 5,156,031 MediaOne Group, Inc. (a) .......................... 66,500 4,945,938 -------------- 10,101,969 -------------- COMMERCIAL SERVICES-1.1% Nielsen Media Research, Inc............................................. 142,100 4,156,425 -------------- PRINTING & PUBLISHING-0.6% News Corp., Ltd. (ADR) (Australia) .................................... 60,800 2,147,000 -------------- 16,405,394 -------------- CAPITAL GOODS-3.8% MACHINERY-3.8% Mannesmann AG (German holding) ............................... 98,025 14,652,119 -------------- MULTI INDUSTRY COMPANY-2.0% Tyco International, Ltd. .......................... 81,572 7,728,947 -------------- ENERGY-1.3% OIL SERVICES-1.3% Kerr-McGee Corp. .................................. 42,000 2,107,875 Total Fina SA (ADR) ............................... 45,000 2,899,687 -------------- 5,007,562 -------------- CONSUMER STAPLES-1.3% FOOD & BEVERAGES-0.3% Pepsi Bottling Group, Inc. ........................ 45,100 1,040,119 -------------- TOBACCO-1.0% Philip Morris Cos., Inc. .......................... 98,000 3,938,375 -------------- 4,978,494 -------------- CONSUMER MANUFACTURING-0.3% AUTO & RELATED-0.3% Dana Corp. ........................................ 25,200 1,160,775 -------------- CONSUMER DURABLE GOODS-0.3% BUILDING & BUILDING PRODUCTS-0.3% Masco Corp. ....................................... 34,000 981,750 -------------- Total Common & Preferred Stocks (cost $254,000,706) ............................ 371,562,255 -------------- B-13 Alliance Variable Products Series Fund ================================================================================ Principal Amount Company (000) U.S. $ Value - -------------------------------------------------------------------------------- LONG-TERM DEBT SECURITIES-1.5% COMMUNICATIONS EQUIPMENT-1.5% Global TeleSystems Group, Inc. 5.75%, 7/01/10 (cost $2,891,553) .............................. $ 3,735 $ 5,877,956 -------------- SHORT-TERM INVESTMENT-1.2% U.S. GOVERNMENT & AGENCIES-1.2% Federal Home Loan Bank 4.47%, 7/01/99 (amortized cost $4,400,000) .................................... 4,400 4,400,000 -------------- U.S. $ Value - -------------------------------------------------------------------------------- TOTAL INVESTMENTS-99.8% (cost $261,292,259) ............................ $ 381,840,211 Other assets less liabilities-0.2% ............................... 723,264 -------------- NET ASSETS-100% ................................... $ 382,563,475 ============== - -------------------------------------------------------------------------------- (a) Non-income producing security. See Glossary of Terms on page B-39. See Notes to Financial Statements. B-14 INTERNATIONAL PORTFOLIO PORTFOLIO OF INVESTMENTS June 30, 1999 (unaudited) Alliance Variable Products Series Fund ================================================================================ Company Shares U.S. $ Value - -------------------------------------------------------------------------------- COMMON & Preferred STOCKS-93.3% AUSTRALIA-2.0% Coca Cola Amatil .................................. 99,400 $ 400,098 National Australia Bank, Ltd. ..................... 33,800 558,587 Telstra Corp., Ltd. ............................... 47,700 272,974 -------------- 1,231,659 -------------- BRAZIL-0.4% Telecomunicacoes Brasileiras, SA (ADR) ....................................... 5,800 252,713 -------------- FINLAND-6.3% Nokia Oyj Corp. Series A .......................... 44,400 3,890,429 -------------- FRANCE-12.6% Cap Gemini SA ..................................... 6,000 942,609 Castorama Dubois Investisse ....................... 530 125,661 Sanofi, SA (a) .................................... 36,400 1,544,069 Schneider Electric, SA ............................ 14,610 820,056 SEITA ............................................. 24,140 1,393,545 Societe Generale .................................. 10,180 1,793,434 Total, SA Cl.B .................................... 9,050 1,167,082 -------------- 7,786,456 -------------- GERMANY-4.1% DaimlerChrysler AG ................................ 6,500 562,844 Hornbach Holding AG pfd ........................... 2,710 115,935 Mannesmann AG ..................................... 8,280 1,237,639 Wella AG pfd ...................................... 830 603,202 -------------- 2,519,620 -------------- HONG KONG-1.5% Cheung Kong Holdings, Ltd. ........................ 42,000 373,521 Citic Pacific, Ltd. ............................... 32,000 102,080 Sun Hung Kai Properties, Ltd ............................................ 49,000 446,827 -------------- 922,428 -------------- IRELAND-0.4% CRH Plc (b) ....................................... 16,000 283,430 -------------- ITALY-2.0% ENI SpA (b) ....................................... 86,000 513,301 Unicredito Italiano SpA ........................... 168,000 737,759 -------------- 1,251,060 -------------- JAPAN-23.2% Bank of Tokyo-Mitsubishi, Ltd ............................................ 105,000 1,495,536 Bridgestone Corp. ................................. 27,000 816,897 Canon, Inc. ....................................... 14,000 402,744 Daito Trust Construction Co., Ltd ............................................ 48,700 543,482 Daiwa Securities Group, Inc. ...................... 149,000 985,368 Fuji Photo Film Co. ............................... 18,000 681,491 Honda Motor Co., Ltd. ............................. 8,000 339,258 Hoya Corp. ........................................ 10,000 564,603 Japan Tobacco, Inc. ............................... 91 1,008,019 Kao Corp. ......................................... 37,000 1,039,927 NTT Mobile Communications Network, Inc. .................................. 17 230,470 New shares (a) ................................. 68 910,639 Santen Pharmaceutical Co., Ltd ............................................ 47,000 905,266 Shiseido Co., Ltd. ................................ 25,000 374,886 Sony Corp. ........................................ 4,800 517,814 Takeda Chemical Industries ........................ 19,000 881,128 TDK Corp. ......................................... 6,000 549,062 Tokyo Electron, Ltd. .............................. 12,000 814,417 Yamanouchi Pharmaceutical Co., Ltd. ...................................... 34,000 1,301,314 -------------- 14,362,321 -------------- NETHERLANDS-10.2% Equant NV (a) ..................................... 8,700 818,888 ING Groep NV ...................................... 32,847 1,777,668 Koninklijke Ahold NV .............................. 43,096 1,483,812 United Pan-Europe Communications NV (a) .......................... 18,670 1,012,338 Wolters Kluwer NV ................................. 31,500 1,253,411 -------------- 6,346,117 -------------- SINGAPORE-0.2% Development Bank of Singapore ...................................... 12,000 146,651 -------------- SOUTH KOREA-1.1% Korea Telecom Corp. (a) ........................... 9,636 385,440 SK Telecom Co., Ltd. (ADR) .......................................... 16,000 272,000 -------------- 657,440 -------------- SPAIN-5.3% Banco Bilbao Vizcaya, SA .......................... 41,800 603,684 Repsol, SA ........................................ 16,200 330,656 Tabacalera, SA Series A ........................... 59,400 1,200,157 Telefonica, SA .................................... 23,816 1,146,765 -------------- 3,281,262 -------------- SWEDEN-2.5% AstraZeneca Group Plc ............................. 10,635 414,676 Autoliv, Inc. ..................................... 10,300 314,254 ForeningsSparbanken AB ............................ 56,550 799,387 -------------- 1,528,317 -------------- SWITZERLAND-4.8% ABB, Ltd. (a) ..................................... 2,700 254,357 Novartis AG ....................................... 515 751,752 UBS AG ............................................ 2,162 645,083 Zurich Allied AG .................................. 2,319 1,318,240 -------------- 2,969,432 -------------- UNITED KINGDOM-16.7% Bank of Scotland .................................. 112,303 1,501,995 British Airways Plc ............................... 73,900 510,204 Diageo Plc ........................................ 86,438 908,092 Dixons Group Plc .................................. 22,200 416,414 Misys Plc ......................................... 65,100 557,193 B-15 Alliance Variable Products Series Fund ================================================================================ Company Shares U.S. $ Value - -------------------------------------------------------------------------------- Next Plc .......................................... 42,800 $ 519,469 Orange Plc (a) .................................... 70,700 1,037,515 Royal Bank of Scotland Group Plc ............................................ 77,200 1,581,925 Standard Chartered Plc ............................ 65,487 1,066,303 United News & Media Plc ........................... 120,500 1,158,623 Vodafone AirTouch Plc ............................. 55,258 1,087,013 -------------- 10,344,746 -------------- Total Common & Preferred Stocks (cost $50,729,883) ............................. 57,774,081 -------------- Principal Amount (000) U.S. $ Value - -------------------------------------------------------------------------------- SHORT-TERM INVESTMENT-2.7% TIME DEPOSIT-2.7% State Street Bank Euro Dollar 4.50%, 7/01/99 (amortized cost $1,672,000) .................................... $ 1,672 $ 1,672,000 -------------- TOTAL INVESTMENTS-96.0% (cost $52,401,883) ............................. 59,446,081 Other assets less liabilities-4.0% ............................... 2,502,566 -------------- NET ASSETS-100% ................................... $ 61,948,647 ============== - -------------------------------------------------------------------------------- (a) Non-income producing security. (b) British Pound denominated security. See Glossary of Terms on page B-39. See Notes to Financial Statements. B-16 PREMIER GROWTH PORTFOLIO PORTFOLIO OF INVESTMENTS June 30, 1999 (unaudited) Alliance Variable Products Series Fund ================================================================================ Company Shares U.S. $ Value - -------------------------------------------------------------------------------- COMMON STOCKS-96.4% TECHNOLOGY-27.6% COMMUNICATIONS EQUIPMENT-11.2% EMC Corp. (a) .................................... 878,800 $ 48,334,000 Lucent Technologies, Inc. ........................ 543,384 36,644,459 Nokia Corp. (ADR) (Finland) ..................................... 1,177,000 107,769,062 ------------ 192,747,521 ------------ COMPUTER HARDWARE-5.6% Dell Computer Corp. (a) .......................... 1,728,000 63,882,000 International Business Machines Corp. ................................ 118,000 15,251,500 Sun Microsystems, Inc. (a) ....................... 246,000 16,950,937 ------------ 96,084,437 ------------ COMPUTER SOFTWARE-1.8% Microsoft Corp. (a) .............................. 347,400 31,309,425 ------------ NETWORKING SOFTWARE-5.1% America Online, Inc. ............................. 112,900 12,475,450 Cisco Systems, Inc. (a) .......................... 1,180,600 76,038,019 ------------ 88,513,469 ------------ SEMI-CONDUCTOR COMPONENTS-3.5% Intel Corp. ...................................... 879,200 52,284,925 Micron Technology, Inc. (a) ...................... 194,300 7,832,719 ------------ 60,117,644 ------------ MISCELLANEOUS-0.4% Solectron Corp. (a) .............................. 102,700 6,848,806 ------------ 475,621,302 ------------ CONSUMER SERVICES-24.9% AIRLINES-2.2% Continental Airlines, Inc. (a) ................... 128,000 4,816,000 Delta Air Lines, Inc. ............................ 159,900 9,214,238 KLM Royal Dutch Air (Netherlands) ................................. 125,776 3,592,477 Northwest Airlines Corp. Cl.A, (a) ..................................... 251,260 8,150,246 UAL Corp. (a) .................................... 188,000 12,220,000 ------------ 37,992,961 ------------ BROADCASTING & CABLE-7.4% AT&T Corp.-Liberty Media Cl.A, (a) ..................................... 943,210 34,662,967 Chancellor Media Corp. Cl.A, (a) ..................................... 97,400 5,366,131 Clear Channel Communications (a) ............................ 175,400 12,091,638 MediaOne Group, Inc. (a) ......................... 649,300 48,291,687 Vodafone AirTouch PLC (ADR) ......................................... 139,900 27,560,300 ------------ 127,972,723 ------------ ENTERTAINMENT & LEISURE-1.0% Walt Disney Co. .................................. 584,700 18,016,069 ------------ PRINTING & PUBLISHING-0.4% Gannett Co., Inc. ................................ 99,000 7,066,125 ------------ RETAIL - GENERAL MERCHANDISE-13.9% Costco Cos., Inc. (a) ............................ 214,600 17,174,706 Dayton Hudson Corp. .............................. 497,300 32,324,500 Gap, Inc. ........................................ 542,550 27,330,956 Home Depot, Inc. ................................. 997,298 64,263,390 Kohl's Corp. (a) ................................. 268,600 20,732,563 Lowes Cos., Inc. ................................. 585,500 33,190,531 Wal-Mart Stores, Inc. ............................ 905,100 43,671,075 ------------ 238,687,721 ------------ 429,735,599 ------------ FINANCE-16.7% BANKING - MONEY CENTERS-0.2% Chase Manhattan Corp. ............................ 48,800 4,227,300 ------------ BANKING - REGIONAL-1.8% BankAmerica Corp. ................................ 289,567 21,228,880 Fifth Third Bancorp .............................. 84,200 5,607,194 U.S. Bancorp ..................................... 100,600 3,420,400 ------------ 30,256,474 ------------ BROKERAGE & MONEY MANAGEMENT-5.1% Charles Schwab Corp. ............................. 59,000 6,482,625 Goldman Sachs Group, Inc. (a) ...................................... 73,100 5,281,475 Merrill Lynch & Co., Inc. ........................ 223,900 17,898,006 Morgan Stanley, Dean Witter & Co. ............................. 562,255 57,631,138 ------------ 87,293,244 ------------ INSURANCE-2.4% American International Group, Inc ........................................... 122,775 14,372,348 Citigroup, Inc. .................................. 574,575 27,292,313 ------------ 41,664,661 ------------ MORTGAGE BANKING-3.1% Federal Home Loan Mortgage Corp .......................................... 576,300 33,425,400 Federal National Mortgage Assn .......................................... 219,500 15,008,313 Washington Mutual, Inc. .......................... 141,640 5,010,515 ------------ 53,444,228 ------------ B-17 Alliance Variable Products Series Fund ================================================================================ Company Shares U.S. $ Value - -------------------------------------------------------------------------------- MISCELLANEOUS-4.1% Associates First Capital Corp. Cl.A .......................................... 268,056 $ 11,878,231 MBNA Corp. ....................................... 1,835,350 56,207,594 Newcourt Credit Group, Inc. (Canada) ...................................... 141,200 1,826,775 ------------ 69,912,600 ------------ 286,798,507 ------------ HEALTH CARE-10.7% DRUGS-8.9% Bristol-Myers Squibb Co. ......................... 448,600 31,598,262 Merck & Co., Inc. ................................ 243,400 18,011,600 Pfizer, Inc. ..................................... 334,400 36,700,400 Schering-Plough Corp. ............................ 882,900 46,793,700 Warner-Lambert Co. ............................... 286,300 19,862,063 ------------ 152,966,025 ------------ MEDICAL SERVICES-1.8% IMS Health, Inc. ................................. 432,400 13,512,500 Mckesson HBOC, Inc. .............................. 576,757 18,528,319 ------------ 32,040,819 ------------ 185,006,844 ------------ CONSUMER STAPLES-5.4% COSMETICS-0.5% Gillette Co. ..................................... 197,500 8,097,500 ------------ FOOD-0.3% Coca-Cola Co. .................................... 69,600 4,350,000 ------------ HOUSEHOLD PRODUCTS-0.8% Colgate-Palmolive Co. ............................ 136,500 13,479,375 ------------ RETAIL - FOOD & DRUGS-1.8% Kroger Co. (a) ................................... 555,800 15,527,662 Safeway, Inc. (a) ................................ 244,000 12,078,000 Walgreen Co. ..................................... 145,000 4,259,375 ------------ 31,865,037 ------------ TOBACCO-2.0% Philip Morris Cos., Inc. ......................... 858,773 34,511,940 ------------ 92,303,852 ------------ MULTI INDUSTRY COMPANY-4.9% Tyco International, Ltd. ......................... 895,962 84,892,399 ------------ Shares or Principal Amount Company (000) U.S. $ Value - -------------------------------------------------------------------------------- UTILITY-3.3% TELEPHONE UTILITY-3.3% MCI WorldCom, Inc. (a) ........................... 662,219 56,971,528 -------------- CAPITAL GOODS-2.2% ELECTRICAL EQUIPMENT-0.7% General Electric Co. ............................. 109,400 12,362,200 -------------- POLLUTION CONTROL-0.4% Waste Management, Inc. ........................... 106,800 5,740,500 -------------- MISCELLANEOUS-1.1% United Technologies Corp. ........................ 268,000 19,212,250 -------------- 37,314,950 -------------- CONSUMER MANUFACTURING-0.4% AUTO & RELATED-0.4% Ford Motor Co. ................................... 127,000 7,167,563 -------------- ENERGY-0.3% OIL SERVICE-0.3% Schlumberger, Ltd. ............................... 83,326 5,306,825 -------------- Total Common Stocks (cost $1,156,349,252) ......................... 1,661,119,369 -------------- SHORT-TERM INVESTMENT-3.6% COMMERCIAL PAPER-3.6% General Electric Capital Corp. 5.60%, 7/01/99 (amortized cost $61,377,000) .................................. $ 61,377 61,377,000 -------------- TOTAL INVESTMENTS-100.0% (cost $1,217,726,252) ......................... 1,722,496,369 Other assets less liabilities-0.0% .............................. 327,380 -------------- NET ASSETS-100% .................................. $1,722,823,749 ============== - -------------------------------------------------------------------------------- (a) Non-income producing security. See Glossary of Terms on page B-39. See Notes to Financial Statements. B-18 QUASAR PORTFOLIO PORTFOLIO OF INVESTMENTS June 30, 1999 (unaudited) Alliance Variable Products Series Fund ================================================================================ Company Shares U.S. $ Value - -------------------------------------------------------------------------------- COMMON STOCKS-60.5% CONSUMER PRODUCTS & SERVICES-29.8% AIRLINES-3.1% Alaska Air Group, Inc. (a) ....................... 59,100 $ 2,467,425 America West Airlines, Inc. Cl.B, (a) ...................................... 79,500 1,500,563 Atlas Air, Inc. (a) ............................... 17,900 577,275 -------------- 4,545,263 -------------- BROADCASTING & CABLE-1.0% Citadel Communications Corp. (a) ...................................... 17,500 633,828 Entercom Communications Corp. (a) ...................................... 19,700 842,175 -------------- 1,476,003 -------------- BUSINESS SERVICES-2.5% Carey International, Inc. (a) ..................... 79,100 1,952,781 FirstService Corp. (a) ............................ 40,900 626,281 TeleSpectrum Worldwide, Inc. (a) ....................................... 147,500 1,124,688 TeleTech Holdings, Inc. (a) ....................... 2,700 27,169 -------------- 3,730,919 -------------- ENTERTAINMENT & LEISURE-7.5% Bally Total Fitness Holding Corp. (a) ...................................... 59,000 1,674,125 Cinar Corp. Cl.B (ADR), (a) ....................... 36,700 906,031 Premier Parks, Inc. (a) ........................... 114,000 4,189,500 SFX Entertainment, Inc. Cl.A ........................................... 30,000 1,920,000 Sunterra Corp. (a) ................................ 180,700 2,518,506 -------------- 11,208,162 -------------- FUNERAL SERVICES-0.5% Carriage Services, Inc. Cl.A, (a) ...................................... 41,300 774,375 -------------- INDUSTRIAL MACHINERY-1.2% United Rentals, Inc. (a) .......................... 61,200 1,805,400 -------------- RESTAURANTS & LODGING-0.8% MeriStar Hospitality Corp. ........................ 51,900 1,164,506 -------------- RETAILING-11.8% BJ's Wholesale Club, Inc. (a) ..................... 54,100 1,626,381 Circuit City Stores, Inc. Car Max Group (a) .............................. 128,000 680,000 Furniture Brands International, Inc. (a) ....................................... 33,900 944,963 Industrie Natuzzi SpA (ADR) (Italy) ........................................ 59,000 1,146,812 Mens Wearhouse, Inc. (a) .......................... 53,950 1,385,841 Movado Group, Inc. ................................ 41,400 1,073,812 Reebok International, Ltd. (a) ....................................... 600 11,175 Sports Authority, Inc. (a) ....................... 171,300 760,144 Stage Stores, Inc. (a) ............................ 124,000 806,000 Tiffany & Co. ..................................... 31,000 2,991,500 Transport World Entertainment Corp. (a) ...................................... 53,750 601,328 Tweeter Home Entertainment Group, Inc. (a) ................................ 11,300 441,406 Venator Group, Inc. (a) ........................... 233,200 2,434,025 Whole Foods Market, Inc. (a) ....................................... 14,300 686,847 Women First HealthCare, Inc. (a) ....................................... 17,200 230,050 Zale Corp. (a) .................................... 42,800 1,712,000 -------------- 17,532,284 -------------- MISCELLANEOUS-1.4% Century Business Services, Inc. (a) ....................................... 101,400 1,463,962 Imax Corp. (a) .................................... 15,100 341,638 Playtex Products, Inc. (a) ....................... 17,800 277,013 -------------- 2,082,613 -------------- 44,319,525 -------------- TECHNOLOGY-10.0% COMMUNICATIONS EQUIPMENT-1.0% Juniper Networks, Inc. ............................ 800 119,325 Pinnacle Holdings, Inc. (a) ....................... 41,000 1,001,938 Tekelec (a) ....................................... 35,200 430,100 -------------- 1,551,363 -------------- COMPUTER HARDWARE-1.7% Apex PC Solutions, Inc. (a) ....................... 84,000 1,719,375 MIPS Technologies, Inc. (a) ....................... 16,000 766,000 -------------- 2,485,375 -------------- COMPUTER SOFTWARE & SERVICES-2.7% DBT Online, Inc. (a) .............................. 51,800 1,696,450 IMRglobal Corp. (a) ............................... 25,100 484,744 Insight Enterprises, Inc. (a) ..................... 32,900 813,247 New Era of Networks, Inc. (a) ....................................... 11,800 518,093 Sapient Corp. ..................................... 800 45,375 Stamps.com, Inc. .................................. 2,000 35,125 TenFold Corp. (a) ................................. 12,600 396,900 -------------- 3,989,934 -------------- INDUSTRIAL MACHINERY-0.4% Applied Power, Inc. Cl.A .......................... 23,900 652,769 -------------- B-19 Alliance Variable Products Series Fund ================================================================================ Company Shares U.S. $ Value - -------------------------------------------------------------------------------- NETWORKING SOFTWARE-0.6% BackWeb Technologies, Ltd. (a) ....................................... 23,600 $ 643,100 CareInsite, Inc. (a) .............................. 4,000 189,750 Software.com, Inc. (a) ............................ 4,500 104,484 -------------- 937,334 -------------- SEMI-CONDUCTOR EQUIPMENT-0.8% MKS Instruments, Inc. (a) ......................... 29,800 555,956 SDL, Inc. (a) ..................................... 11,400 582,469 -------------- 1,138,425 -------------- TELECOMMUNICATIONS-1.9% GST Telecommunications, Inc. (a) ....................................... 51,800 681,494 Millicom International Cellular, SA (Luxembourg), (a) ........................... 50,900 1,609,712 RCN Corp. (a) ..................................... 12,500 520,703 -------------- 2,811,909 -------------- MISCELLANEOUS-0.9% Excalibur Technologies Corp. (a) ...................................... 33,500 478,422 Harman International Industries, Inc. ............................... 15,700 690,800 Network Plus Corp. (a) ............................ 3,600 75,262 Orbital Sciences Corp. (a) ....................... 700 16,538 -------------- 1,261,022 -------------- 14,828,131 -------------- FINANCIAL SERVICES-7.0% BROKERAGE & MONEY MANAGEMENT-3.1% Legg Mason, Inc. .................................. 119,400 4,596,900 -------------- INSURANCE-0.1% Reinsurance Group of America, Inc............................................. 3,450 121,613 -------------- REAL ESTATE-3.6% Chelsea GCA Realty, Inc. .......................... 89,300 3,315,262 Golf Trust of America, Inc. ....................... 1,300 31,769 Taubman Centers, Inc. ............................. 151,100 1,992,631 -------------- 5,339,662 -------------- MISCELLANEOUS-0.2% Cash America International, Inc............................................. 27,600 355,350 -------------- 10,413,525 -------------- HEALTH CARE-4.3% BIOTECHNOLOGY-1.2% GelTex Pharmaceuticals, Inc. (a) ....................................... 60,410 1,085,492 Human Genome Sciences, Inc. (a) ....................................... 18,300 721,707 -------------- 1,807,199 -------------- DRUGS, HOSPITAL SUPPLIES & MEDICAL SERVICES-3.1% LifePoint Hospitals, Inc. (a) ..................... 106,200 1,423,744 Novoste Corp. (a) ................................. 40,800 855,525 Orthodontic Centers of America, Inc. (a) ....................................... 49,900 704,837 St. Jude Medical, Inc. (a) ....................... 21,700 773,062 Synetic, Inc. (a) ................................. 12,500 859,766 -------------- 4,616,934 -------------- 6,424,133 -------------- BASIC INDUSTRIES-4.2% BUILDING & RELATED-0.0% Associate Materials, Inc. ......................... 2,000 27,000 -------------- METAL HARDWARE-0.5% Bethlehem Steel Corp. (a) ......................... 104,500 803,344 -------------- TEXTILE PRODUCTS-1.9% Mohawk Industries, Inc. (a) ....................... 91,950 2,792,981 -------------- TRANSPORTATION & SHIPPING-1.8% Consolidated Freightways Corp. (a) ...................................... 130,300 1,673,541 Teekay Shipping Corp. ............................. 58,300 1,027,537 -------------- 2,701,078 -------------- 6,324,403 -------------- CONSUMER MANUFACTURING-4.0% AUTO & RELATED-4.0% Budget Group, Inc. Cl.A, (a) ...................... 73,500 904,969 Dollar Thrifty Automotive Group, Inc. (a) ................................ 44,300 1,029,975 Group 1 Automotive, Inc. (a) ...................... 83,400 1,761,825 Monaco Coach Corp. (a) ............................ 52,200 2,208,713 -------------- 5,905,482 -------------- ENERGY-1.2% OIL & GAS SERVICES-1.2% Evergreen Resources, Inc. (a) ....................................... 5,100 128,616 Southern Union Co. ................................ 75,426 1,640,515 -------------- 1,769,131 -------------- Total Common Stocks (cost $82,157,305) ............................. 89,984,330 -------------- B-20 QUASAR PORTFOLIO PORTFOLIO OF INVESTMENTS (continued) Alliance Variable Products Series Fund ================================================================================ Principal Amount (000) U.S. $ Value - -------------------------------------------------------------------------------- SHORT-TERM INVESTMENTS-39.5% U.S. GOVERNMENT & AGENCIES-37.3% Federal Home Loan Bank 4.60%, 7/01/99 ................................. $48,400 $ 48,400,000 Federal Home Loan Mortgage Corp 4.97%, 7/01/99 ................................. 7,000 7,000,000 -------------- 55,400,000 -------------- TIME DEPOSIT-2.2% State Street Bank Euro Dollar 4.50%, 7/01/99 ................................. $ 3,264 $ 3,264,000 -------------- Total Short-Term Investments (amortized cost $58,664,000) ................................... 58,664,000 -------------- TOTAL INVESTMENTS-100.0% (cost $140,821,305) ............................ 148,648,330 Other assets less liabilities-0.0% ............................... 15,697 -------------- NET ASSETS-100% ................................... $ 148,664,027 ============== - -------------------------------------------------------------------------------- (a) Non-income producing security. See Glossary of Terms on page B-39. See Notes to Financial Statements. B-21 REAL ESTATE INVESTMENT PORTFOLIO PORTFOLIO OF INVESTMENTS June 30, 1999 (unaudited) Alliance Variable Products Series Fund ================================================================================ Company Shares U.S. $ Value - -------------------------------------------------------------------------------- COMMON STOCKS-96.2% REAL ESTATE INVESTMENT TRUSTS-96.2% APARTMENTS-8.7% Apartment Investment & Management Co. ................................. 11,200 $ 478,800 Avalon Bay Communities, Inc. ........................................... 19,334 715,358 Essex Property Trust, Inc. ........................ 14,300 505,863 -------------- 1,700,021 -------------- DIVERSIFIED-14.9% Captec Net Lease Realty, Inc. ........................................... 6,800 92,013 Correctional Properties Trust ..................... 28,600 450,450 Entertainment Properties Trust .......................................... 30,100 530,512 Glenborough Realty Trust, Inc ............................................ 33,200 581,000 Golf Trust of America, Inc. ....................... 18,200 444,762 Mission West Properties, Inc. ..................... 15,000 123,750 Vornado Realty Trust .............................. 19,500 688,594 -------------- 2,911,081 -------------- HOTELS & RESTAURANTS-8.2% Hospitality Properties Trust ...................... 14,300 387,887 Innkeepers USA Trust .............................. 36,400 364,000 MeriStar Hospitality Corp. ........................ 28,878 647,950 Starwood Hotels & Resorts ......................... 4,000 122,250 Wyndham International, Inc. (a) ....................................... 18,469 83,111 -------------- 1,605,198 -------------- MANUFACTURED HOME COMMUNITIES-2.3% Sun Communities, Inc. ............................. 12,400 440,200 -------------- OFFICE-22.4% Alexandria Real Estate Equities, Inc. ................................. 13,800 431,250 Arden Realty Group, Inc. .......................... 19,400 477,725 Boston Properties, Inc. ........................... 15,100 541,713 Cornerstone Properties, Inc. ...................... 51,100 811,212 Crescent Real Estate Equities Co ............................................. 21,800 517,750 Equity Office Properties Trust .......................................... 36,400 932,750 SL Green Realty Corp. ............................. 32,700 668,306 -------------- 4,380,706 -------------- Shares or Principal Amount Company (000) U.S. $ Value - ------------------------------------------------------------------------------- OFFICE - INDUSTRIAL MIX-11.7% Brandywine Realty Trust ........................... 26,800 $ 530,975 Great Lakes REIT, Inc. ............................ 4,700 76,375 Highwoods Properties, Inc. ........................ 18,000 493,875 Reckson Associates Realty Corp ........................................... 26,500 622,750 Spieker Properties, Inc. .......................... 14,500 563,687 -------------- 2,287,662 -------------- REGIONAL MALLS-6.3% Macerich Co. ...................................... 22,800 598,500 Mills Corp. ....................................... 29,400 637,613 -------------- 1,236,113 -------------- SHOPPING CENTERS-11.2% Burnham Pacific Properites, Inc. ........................................... 14,200 174,838 Pan Pacific Retail Properties, Inc............................................. 42,400 821,500 Prime Retail, Inc. ................................ 57,900 503,006 Ramco-Gershenson Properties Trust .......................................... 18,000 292,500 Regency Reality Corp. ............................. 18,120 397,507 -------------- 2,189,351 -------------- STORAGE-3.7% Public Storage, Inc. .............................. 26,100 730,800 -------------- WAREHOUSE & INDUSTRIAL-6.8% AMB Property Corp. ................................ 7,200 169,200 Cabot Industrial Trust ............................ 25,100 533,375 ProLogis Trust .................................... 30,800 623,700 -------------- 1,326,275 -------------- Total Common Stocks (cost $20,220,602) ............................. 18,807,407 -------------- SHORT-TERM INVESTMENT-3.9% TIME DEPOSIT-3.9% State Street Bank Euro Dollar 4.50%, 7/01/99 (amortized cost $761,000) ...................... $ 761 761,000 -------------- TOTAL INVESTMENTS-100.1% (cost $20,981,602) ............................. 19,568,407 Other assets less liabilities-(0.1%) ............................. (27,111) -------------- NET ASSETS-100% ................................... $ 19,541,296 ============== - -------------------------------------------------------------------------------- (a) Non-income producing security. See Glossary of Terms on page B-39. See Notes to Financial Statements. B-22 TECHNOLOGY PORTFOLIO PORTFOLIO OF INVESTMENTS June 30, 1999 (unaudited) Alliance Variable Products Series Fund ================================================================================ Company Shares U.S. $ Value - -------------------------------------------------------------------------------- COMMON STOCKS-93.2% TECHNOLOGY-89.1% COMMUNICATIONS EQUIPMENT-10.3% Amdocs, Ltd (a) ................................... 174,400 $ 3,967,600 Juniper Networks, Inc. (a) ....................... 1,600 238,650 Lucent Technologies, Inc. ......................... 117,600 7,930,650 Nokia Corp. (ADR) (Finland) ...................................... 80,600 7,379,937 -------------- 19,516,837 -------------- COMPUTER HARDWARE-9.3% Apex PC Solutions, Inc. (a) ....................... 56,850 1,163,649 Compaq Computer Corp. ............................. 106,700 2,527,456 Dell Computer Corp. (a) ........................... 222,300 8,218,153 International Business Machines Corp. ................................. 43,900 5,674,075 -------------- 17,583,333 -------------- COMPUTER PERIPHERALS-2.8% Lexmark International Group, Inc.(a) ........................................ 80,600 5,324,638 -------------- COMPUTER SERVICES-17.6% Ceridian Corp. (a) ................................ 135,900 4,442,231 Computer Sciences Corp. ........................... 75,200 5,202,900 Convergys Corp. (a) ............................... 36,300 698,775 DST Systems, Inc. (a) ............................. 62,125 3,906,109 First Data Corp. .................................. 104,500 5,113,969 Fiserv, Inc. (a) .................................. 105,450 3,305,199 Galileo International, Inc. ....................... 75,100 4,013,156 Gartner Group, Inc. Cl.A, (a) ..................... 41,000 840,500 Sabre Group Holdings, Inc. Cl.A, (a) ...................................... 34,700 2,385,625 SunGard Data Systems, Inc. (a) ....................................... 95,400 3,291,300 -------------- 33,199,764 -------------- COMPUTER SOFTWARE-8.7% BEA Systems, Inc. (a) ............................. 40,000 1,143,750 Descartes Systems Group, Inc. (Canada) (a) .............................. 11,100 56,194 DoubleClick, Inc. (a) ............................. 38,500 3,523,953 I2 Technologies, Inc. (a) ......................... 30,000 1,291,875 Interplay Entertainment Corp. (a) ...................................... 33,000 85,078 Microsoft Corp. (a) ............................... 62,000 5,587,750 Mindspring Enterprises, Inc. (a) ....................................... 38,000 1,683,875 New Era of Networks, Inc. (a) ....................................... 39,400 1,729,906 Rational Software Corp. (a) ....................... 40,900 1,348,422 -------------- 16,450,803 -------------- NETWORKING SOFTWARE-10.1% America Online, Inc. .............................. 70,250 7,762,625 Cisco Systems, Inc. (a) ........................... 174,200 11,219,569 -------------- 18,982,194 -------------- SEMI-CONDUCTOR CAPITAL EQUIPMENT-7.1% Amkor Technology, Inc. (a) ....................... 69,100 706,116 Applied Materials, Inc. (a) ....................... 82,900 6,121,647 KLA-Tencor Corp. (a) .............................. 45,500 2,950,390 Teradyne, Inc. (a) ................................ 50,700 3,637,725 -------------- 13,415,878 -------------- SEMI-CONDUCTOR COMPONENTS-12.7% Altera Corp. (a) .................................. 110,000 4,045,938 Intel Corp. ....................................... 72,400 4,305,537 Micron Technology, Inc. (a) ....................... 29,700 1,197,281 PMC-Sierra, Inc. (a) .............................. 65,000 3,832,969 Texas Instruments, Inc. ........................... 37,400 5,423,000 Xilinx, Inc. (a) .................................. 90,900 5,206,866 -------------- 24,011,591 -------------- MISCELLANEOUS-10.5% Ingram Micro, Inc. Cl.A, (a) ...................... 74,100 1,908,075 Jabil Circuit, Inc. (a) ........................... 35,000 1,579,375 Network Plus Corp. (a) ............................ 7,000 146,344 Sanmina Corp. (a) ................................. 93,750 7,113,281 Solectron Corp. (a) ............................... 136,700 9,116,181 -------------- 19,863,256 -------------- 168,348,294 -------------- UTILITY-1.9% TELEPHONE UTILITY-1.9% MCI WorldCom, Inc. (a) ............................ 42,400 3,647,725 -------------- CONSUMER SERVICES-1.3% RETAIL - GENERAL MERCHANDISE-0.9% Tandy Corp. ....................................... 33,600 1,642,200 -------------- MISCELLANEOUS-0.4% Equifax, Inc. ..................................... 20,000 713,750 -------------- 2,355,950 -------------- HEALTH CARE-0.9% MEDICAL SERVICES-0.9% Mckesson HBOC, Inc. ............................... 50,824 1,632,721 -------------- Total Common Stocks (cost $110,547,953) ............................ 175,984,690 -------------- B-23 Alliance Variable Products Series Fund ================================================================================ Principal Amount (000) U.S. $ Value - ------------------------------------------------------------------------------- SHORT-TERM INVESTMENT-7.4% TIME DEPOSIT-7.4% State Street Bank Euro Dollar 4.50%, 7/01/99 (amortized cost $13,949,000) ................................ $ 13,949 $ 13,949,000 --------------- U.S. $ Value - ------------------------------------------------------------------------------- TOTAL INVESTMENTS-100.6% (cost $124,496,953) ......................... $ 189,933,690 Other assets less liabilities-(0.6%) .......................... (1,058,799) --------------- NET ASSETS-100% ................................ $ 188,874,891 =============== - -------------------------------------------------------------------------------- (a) Non-income producing security. See Glossary of Terms on page B-39. See Notes to Financial Statements. B-24 UTILITY INCOME PORTFOLIO PORTFOLIO OF INVESTMENTS June 30, 1999 (unaudited) Alliance Variable Products Series Fund ================================================================================ Company Shares U.S. $ Value - ------------------------------------------------------------------------------- COMMON & PREFERRED STOCKS-86.9% UNITED STATES INVESTMENTS-76.7% UTILITIES-56.6% ELECTRIC & GAS UTILITIES-26.4% AGL Resources, Inc. ............................ 6,100 $ 112,469 American Electric Power, Inc.......................................... 16,900 634,806 CINergy Corp. .................................. 22,100 707,200 CMS Energy Corp. ............................... 18,400 770,500 Consolidated Edison, Inc. ...................... 35,700 1,615,425 DPL, Inc. ...................................... 21,000 385,875 FPL Group, Inc. ................................ 10,200 557,175 GPU, Inc. ...................................... 36,000 1,518,750 Illinova Corp. ................................. 28,000 763,000 KeySpan Energy Corp. (a) ....................... 4,600 121,325 MCN Corp. ...................................... 4,600 95,450 New Jersey Resources Corp. ..................... 4,400 164,725 Nisource, Inc. ................................. 56,200 1,639,163 Northwest Natural Gas Co. ...................... 5,250 126,328 People's Energy Corp. .......................... 3,600 135,675 Pinnacle West Capital Corp. .................... 19,000 764,750 Questar Corp. .................................. 7,000 133,875 Reliant Energy Inc. ............................ 23,000 635,375 Sempra Energy .................................. 6,165 139,483 --------------- 11,021,349 --------------- TELEPHONE UTILITIES-30.2% Ameritech Corp. ................................ 27,200 1,999,200 AT&T Corp. ..................................... 36,361 2,029,398 Bell Atlantic Corp. ............................ 12,800 836,800 BellSouth Corp. ................................ 38,200 1,790,625 Frontier Corp. ................................. 21,000 1,239,000 GTE Corp. ...................................... 20,500 1,552,875 MCI WorldCom, Inc. (a) ......................... 24,000 2,064,750 Telephone and Data Systems, Inc.......................................... 6,000 438,375 US West Communications Group ....................................... 10,800 634,500 --------------- 12,585,523 --------------- 23,606,872 --------------- CONSUMER SERVICES-10.3% BROADCASTING & CABLE-10.3% Cablevision Systems Corp. Series I 8.50% cv. pfd ...................... 10,000 1,080,000 Comcast Corp. Cl.A ............................. 18,000 691,875 MediaOne Group, Inc. ........................... 21,400 1,936,700 Omnipoint Corp. 7.00% cv. pfd. (a)(b) ....................... 11,000 598,125 --------------- 4,306,700 --------------- ENERGY-6.5% DOMESTIC PRODUCERS-2.6% The Williams Cos., Inc. 3.50% pfd ................................... 4,700 942,937 Washington Gas Light Co. ....................... 5,600 145,600 --------------- 1,088,537 --------------- PIPELINES-1.5% Enron Corp. .................................... 5,800 474,150 Piedmont Natural Gas Co., Inc.......................................... 5,100 158,738 --------------- 632,888 --------------- MISCELLANEOUS-2.4% AES Corp. (a) .................................. 17,200 999,750 --------------- 2,721,175 --------------- MULTI-INDUSTRY COMPANIES-1.9% Montana Power Co. .............................. 5,600 394,800 Southwest Gas Corp. ............................ 7,000 200,375 Wicor, Inc. .................................... 7,000 195,562 --------------- 790,737 --------------- TECHNOLOGY-1.4% COMMUNICATION EQUIPMENT-1.4% NTL, Inc. (a) .................................. 4,172 359,705 PairGain Technologies, Inc. (a) .................................... 17,000 196,031 --------------- 555,736 --------------- Total United States Investments (cost $22,124,884) .......................... 31,981,220 --------------- FOREIGN INVESTMENTS-10.2% ARGENTINA-1.6% Telecom Argentina, SA .......................... 11,500 307,625 Telefonica De Argentina ........................ 11,500 360,812 --------------- 668,437 --------------- BRAZIL-0.3% Celular CRT Participacoes, SA (a) ...................................... 129,000 17,487 Companhia Energetica de Minas Gerais (ADR) .......................... 1,958 40,862 Companhia Paranaense de Energia-Copel pfd. (ADR) .................... 4,700 39,362 Companhia Riograndense de Telecom pfd ................................. 129,000 31,294 --------------- 129,005 --------------- CANADA-2.0% BCE, Inc. ...................................... 16,700 823,519 --------------- FINLAND-2.2% Nokia Corp. (ADR) .............................. 10,000 915,625 --------------- B-25 Alliance Variable Products Series Fund ================================================================================ Company Shares U.S. $ Value - ------------------------------------------------------------------------------- MEXICO-2.4% Telefonos de Mexico, SA Series L (ADR) .............................. 12,400 $ 1,002,075 --------------- PERU-0.2% Telefonica del Peru, SA Cl.B ................... 62,000 93,209 --------------- PHILIPPINES-0.4% Philippine Long Distance Telephone Co. Series III 3.50% cv.pfd. (ADR) ......................... 6,000 180,750 --------------- SOUTH KOREA-1.1% Korea Electric Power Corp. ..................... 4,020 167,051 SK Telecom Co., Ltd. (ADR) .................... 15,701 266,923 --------------- 433,974 --------------- Total Foreign Investments (cost $2,928,735) ........................... 4,246,594 --------------- Total Common & Preferred Stocks (cost $25,053,619) .......................... 36,227,814 --------------- Principal Amount (000) U.S. $ Value - ------------------------------------------------------------------------------- SHORT-TERM INVESTMENT-13.2% TIME DEPOSIT-13.2% State Street Bank Euro Dollar 4.50%, 7/01/99 (amortized cost $5,499,000) ................................. $ 5,499 $ 5,499,000 --------------- TOTAL INVESTMENTS-100.1% (cost $30,552,619) .......................... 41,726,814 Other assets less liabilities-(0.1%) .......................... (41,361) --------------- NET ASSETS-100% ................................ $ 41,685,453 =============== - -------------------------------------------------------------------------------- (a) Non-income producing security. (b) Security exempt from registration under Rule 144A of the Securities Act of 1933. This security may be resold in transactions exempt from registration normally applied to certain qualified buyers. At June 30, 1999, the aggregate market value of this security amounted to $598,125 or 1.4% of net assets. See Glossary of Terms on page B-39. See Notes to Financial Statements. B-26 WORLDWIDE PRIVATIZATION PORTFOLIO PORTFOLIO OF INVESTMENTS June 30, 1999 (unaudited) Alliance Variable Products Series Fund ================================================================================ Company Shares U.S. $ Value - ------------------------------------------------------------------------------- COMMON STOCKS & OTHER INVESTMENTS-95.9% ARGENTINA-0.7% Nortel Inversora, SA Series B pfd. (ADR) (a) .............................. 18,800 $ 326,650 --------------- AUSTRALIA-1.6% Commonwealth Serum Lab, Ltd ......................................... 63,400 546,514 TAB Corp. Holdings, Ltd. ....................... 31,600 212,652 --------------- 759,166 --------------- AUSTRIA-3.1% Austria Tabakwerke AG .......................... 9,653 562,220 Bank Austria AG ................................ 16,680 876,924 --------------- 1,439,144 --------------- BRAZIL-5.3% Bardella Industrias Mecanicas, SA pfd. (a) ................................. 1,650 46,597 Celese Centrais Eletrais de Santa Catarina, SA Cl.B pfd. (a) ............................... 455,001 174,753 Celular CRT Participacoes, SA (a) ...................................... 645,734 61,580 Companhia Paranaense de Energia-Copel (ADR) ......................... 44,000 368,500 Companhia Paulista de Forca e Luz pfd ..................................... 1,591 98 Companhia Riograndense de Telecom Cl.A pfd ............................ 454,282 110,203 Companhia Vale do Rio Doce PNB (receipts) .............................. 2,360 0 Embratel Participacoes, SA (ADR) (a) ................................... 13,000 180,375 Espirito Santo Centrais Electricas, SA .............................. 324 11,899 Gerdau, SA pfd ................................. 24,114,144 401,789 Iven, SA pfd. (a)(b) ........................... 681,300 88,505 Metalurgica Gerdau, SA (b) .................... 419,660 9,481 pfd ......................................... 14,360,043 433,924 Tele Sudeste Celular Participacoes, SA (ADR) (a) ................................... 5,300 153,700 Telesp Participacoes, SA (ADR) (a) ................................... 16,000 366,000 --------------- 2,407,404 --------------- CHILE-0.3% Companhia de Telecomunicaciones de Chile, SA (ADR) ............................. 6,000 148,500 --------------- CROATIA-0.5% Pliva D.D. (GDR) ............................... 14,200 213,710 --------------- CYPRUS-0.2% Premier Telesports, Ltd. (a)(b) ................ 6,600 54,429 Primamedic, Ltd. (a)(b) ........................ 129,000 37,234 --------------- 91,663 --------------- CZECH REPUBLIC-0.9% Ceske Radiokomunikace AS (a) ...................................... 9,561 332,231 Tabak AS ....................................... 330 78,474 --------------- 410,705 --------------- EGYPT-0.7% Commercial International Bank ........................................ 10,000 89,806 Egypt Mobile Phone non-tradeable receipts (a) .................. 8,340 187,992 Madinet NASR City for Housing & Development ....................... 4,740 53,054 --------------- 330,852 --------------- FINLAND-1.0% Merita OYJ, Plc Series A (a) ................... 84,200 478,255 --------------- FRANCE-8.1% Aerospatiale Matra (a) ......................... 3,950 91,006 CNP Assurances (a) ............................. 17,950 490,164 Sanofi, SA (a) ................................. 20,920 887,416 SEITA .......................................... 13,030 752,191 Societe Generale ............................... 3,671 646,728 Societe National Elf Aquitaine ................................... 5,710 837,600 --------------- 3,705,105 --------------- GERMANY-2.8% MVV Energie AG (a) ............................. 25,550 402,975 Stinnes AG (a) ................................. 28,400 442,070 Viag AG ........................................ 900 424,916 --------------- 1,269,961 --------------- GREECE-0.5% Heracles General Cement, SA .......................................... 7,900 211,290 --------------- HONG KONG-1.4% China Telecom (a) .............................. 100,000 277,756 Ng Fung Hong Ltd. .............................. 342,000 284,317 Shandong International Power Development Co., Ltd. Cl.H (a) .................................... 395,000 91,131 --------------- 653,204 --------------- HUNGARY-1.1% Magyar Olaj-es Gazipari Reszvenytar ................................. 14,100 339,499 OTP Bank (GDR) ................................. 3,930 161,130 --------------- 500,629 --------------- INDIA-1.2% Industrial Credit & Investment Corp. (GDR) (a) ............................. 23,000 232,300 Mahanagar Telephone Nigam, Ltd. (GDR) .................................. 19,600 192,080 Videsh Sanchar Nigam, Ltd. (GDR) (c) ................................... 11,900 150,237 --------------- 574,617 --------------- B-27 Alliance Variable Products Series Fund ================================================================================ Company Shares U.S. $ Value - ------------------------------------------------------------------------------- INDONESIA-0.2% PT Tambang Timah (GDR) ......................... 12,800 $ 113,280 --------------- ISRAEL-0.6% Bank Hapoalim, Ltd. ............................ 100,000 256,470 --------------- ITALY-5.3% Banca Nazionale del Lavoro (a) .................................. 203,300 639,194 Ente Nazionale Idrocarburi SpA (a) ..................................... 189,400 694,742 Istituto Bancario San Paolo di Torini ...................................... 104 1,415 Monte dei Paschi di Siena SpA (a) ..................................... 75,000 332,449 Telecom Italia Mobile di Risp SpA ......................................... 90,000 331,212 Telecom Italia SpA (a) ......................... 77,000 417,515 --------------- 2,416,527 --------------- JAPAN-12.5% Daiwa Securities Co., Ltd. ..................... 150,000 991,982 East Japan Railway Co. ......................... 82 440,605 Japan Tobacco, Inc. ............................ 127 1,406,795 Nippon Telegraph & Telephone, Corp ........................................ 99 1,153,923 Nomura Securities Co., Ltd. .................... 56,000 655,964 NTT Mobile Communications Network, Inc. (a) ........................... 65 872,613 West Japan Railway ............................. 58 222,468 --------------- 5,744,350 --------------- MALAYSIA-0.6% Telekom Malaysia Berhad ........................ 78,600 264,483 --------------- MALTA-0.3% Maltacom Plc (GDR) (a) ......................... 7,000 124,250 --------------- MEXICO-5.1% Grupo Financiero Banorte, SA de CV Cl.B (a) ........................... 617,200 903,124 Telefonos de Mexico, SA Cl.L (ADR) .................................. 13,200 1,066,725 Tubos de Acero de Mexico, SA (ADR) .................................... 33,000 358,875 --------------- 2,328,724 --------------- NETHERLANDS-10.4% Akzo Nobel NV .................................. 20,000 841,174 Equant NV (a) .................................. 9,430 887,599 ING Groep NV ................................... 18,423 997,046 ST Microelectronics NV ......................... 14,400 958,938 --------------- United Pan-Europe Communications NV (a) ....................... 20,200 1,095,299 --------------- 4,780,056 --------------- NORWAY-0.4% Christiana Bank OG Kreditkasse ................................. 47,500 170,579 --------------- PEOPLES REPUBLIC OF CHINA-0.8% Beijing Datang Power Generation Co., Ltd. Cl.H ................... 500,000 161,111 Yanzhou Coal Mining Co., Ltd. Cl.H ................................... 542,000 193,856 --------------- 354,967 --------------- PERU-0.6% Cementos Norte Pacasmayo, SA Cl.C (a) ................................. 74,796 97,633 Explosivios, SA Cl.C (a)(b) .................... 134,976 115,434 Ferreyros, SA .................................. 112,642 74,024 --------------- 287,091 --------------- PHILIPPINES-1.0% International Container Terminal Services, Inc. (a) ................. 216,578 28,175 Manila Electric Co. Series B ................... 51,300 184,707 Philippine Long Distance Telephone Co. ............................... 7,440 226,817 --------------- 439,699 --------------- POLAND-1.6% Kredyt Bank PBI, SA (GDR) (a) (c) ............................... 12,000 288,000 Orbis, SA (a) .................................. 30,300 249,975 Powszechny Bank Kredytowy, SA (GDR) (a) ................................ 8,100 198,450 --------------- 736,425 --------------- PORTUGAL-1.0% Electricidade de Portugal, SA .......................................... 14,000 251,981 Soporcel Sociedade Portuguesa de Papel, SA ................................ 19,600 201,036 --------------- 453,017 --------------- RUSSIA-1.2% Gazprom (ADR) (a)(c) ........................... 8,000 90,000 Lukoil Holdings (ADR) .......................... 6,770 268,092 Sberbank of Russia (a) ......................... 1,907 77,329 Sun Interbrew, Ltd. (GDR) Voting shares (a)(b)(c) ............... 10,400 50,922 (GDR) Cl.A Non voting shares (a)(b)(c) ............................ 14,200 36,978 --------------- 523,321 --------------- SINGAPORE-1.2% Development Bank of Singapore, Ltd. ............................. 44,000 537,720 --------------- SOUTH AFRICA-0.3% Iscor, Ltd. (a) ................................ 450,071 140,974 --------------- B-28 WORLDWIDE PRIVATIZATION PORTFOLIO PORTFOLIO OF INVESTMENTS (continued) Alliance Variable Products Series Fund ================================================================================ Company Shares U.S. $ Value - ------------------------------------------------------------------------------- SOUTH KOREA-5.0% Housing & Commercial Bank (a) .................................... 7,300 $ 230,194 Korea Electric Power Corp. ..................... 11,000 457,106 Korea Telecom Corp. (ADR) (a) ................................... 10,064 402,560 Pohang Iron & Steel Co., Ltd. .................. 4,980 598,267 SK Telecom Co., Ltd. (ADR) .................... 19,924 575,089 rights, expiring 7/26/99 .................... 40 21,011 --------------- 2,284,227 --------------- SPAIN-5.2% Aldeasa, SA (a) ................................ 21,000 581,029 Argentaria, SA ................................. 21,400 486,427 Indra Sistemas, SA ............................. 35,000 377,034 Repsol, S ...................................... 21,150 431,689 Tabacalera, SA Cl.A ............................ 24,300 490,973 --------------- 2,367,152 --------------- SWEDEN-0.4% ForeningsSparbanken AB, Cl.A ........................................ 11,850 167,511 --------------- SWITZERLAND-1.5% Sairgroup ...................................... 1,000 209,311 Swisscom AG (a) ................................ 1,300 489,036 --------------- 698,347 --------------- TAIWAN-0.8% Taiwan Semiconductor Co. ....................... 94,710 362,126 --------------- THAILAND-1.1% PTT Exploration & Production Public Co., Ltd. (a) ........................ 24,500 187,363 Siam Commercial Bank (a) ....................... 224,000 318,915 --------------- 506,278 --------------- TURKEY-0.5% Petkim Petrokimya Holding AS .......................................... 5,869,500 80,650 Turkiye Is Bankasi Series C .................... 8,646,000 153,621 --------------- 234,271 --------------- UNITED KINGDOM-8.9% Anglian Water Plc .............................. 22,059 244,089 Birkby Plc ..................................... 74,200 343,856 British Airways Plc ............................ 75,500 521,250 British Energy Plc ............................. 60,500 519,729 Energis Plc (a) ................................ 18,300 437,296 Mersey Docks & Harbour Co .......................................... 40,600 337,898 National Grid Group Plc ........................ 61,200 426,382 National Power Plc ............................. 78,101 567,522 PowerGen Plc ................................... 19,724 212,344 Stagecoach Holdings Plc ........................ 127,700 456,419 --------------- 4,066,785 --------------- TOTAL INVESTMENTS-95.9% (cost $37,267,815) .......................... 43,879,485 Other assets less liabilities-4.1% ............................ 1,856,061 --------------- NET ASSETS-100% ................................ $ 45,735,546 =============== - -------------------------------------------------------------------------------- (a) Non-income producing security. (b) Illiquid security valued at fair market value (see Note A). (c) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration normally applied to certain qualified buyers. At June 30, 1999, the aggregate market value of these securities amounted to $616,137 or 1.3% of net assets. See Glossary of Terms on page B-39. See Notes to Financial Statements. B-29 GLOBAL BOND PORTFOLIO PORTFOLIO OF INVESTMENTS June 30, 1999 (unaudited) Alliance Variable Products Series Fund ================================================================================ Principal Amount (000) U.S. $ Value - -------------------------------------------------------------------------------- AUSTRIA-3.1% GOVERNMENT OBLIGATION-3.1% Republic of Austria 4.50%, 9/28/05 (a) .............. JPY 140,000 $ 1,364,470 ----------- FRANCE-4.2% GOVERNMENT OBLIGATION-4.2% Government of France 5.25%, 4/25/08 .................. EUR 1,700 1,840,068 ----------- GERMANY-9.3% GOVERNMENT OBLIGATION-9.3% Government of Germany 6.00%, 2/16/06 (a) .............. 3,600 4,078,456 ----------- ITALY-8.3% GOVERNMENT OBLIGATION-8.3% Republic of Italy 6.25%, 5/15/02 .................. 3,300 3,640,272 ----------- JAPAN-16.3% DEBT OBLIGATIONS-16.3% Asian Development Bank 5.00%, 2/05/03 .................. JPY 190,000 1,796,024 European Investment Bank 3.00%, 9/20/06 (a) .............. 210,000 1,909,565 Export Import Bank 2.875%, 7/28/05 ................. 190,000 1,698,644 Tokyo Electric Power Co., Inc 4.00%, 3/24/04 .................. EUR 1,700 1,734,204 ----------- 7,138,437 ----------- NETHERLANDS-5.0% GOVERNMENT OBLIGATION-5.0% Dutch Government 5.25%, 7/15/08 .................. 2,050 2,208,339 ----------- SPAIN-7.3% GOVERNMENT OBLIGATIONS-7.3% Government of Spain 3.10%, 9/20/06 .................. JPY 170,000 1,550,265 5.25%, 1/31/03 (a) .............. EUR 1,500 1,622,816 ----------- 3,173,081 ----------- SWEDEN-4.0% GOVERNMENT OBLIGATION-4.0% Kingdom of Sweden 8.00%, 8/15/07 .................. SEK 12,500 1,766,845 ----------- UNITED KINGDOM-8.2% DEBT OBLIGATIONS-6.0% Abbey National Treasury 3.625%, 7/12/04 ................. EUR 1,750 1,753,476 International Bank for Reconstruction & Development 7.125%, 7/30/07 ................. GBP 500 852,358 ----------- 2,605,834 ----------- GOVERNMENT OBLIGATION-2.2% U.K. Treasury Gilts 8.50%, 7/16/07 (a) .............. 520 981,121 ----------- 3,586,955 ----------- UNITED STATES-32.2% GOVERNMENT/AGENCY OBLIGATIONS-30.5% Federal National Mortgage Association 2.125%, 10/09/07 (a) ............ JPY 230,000 1,945,028 U.S. Treasury Notes 5.625%, 5/15/08 ................. US$ 1,000 979,530 6.125%, 8/15/07 ................. 1,400 1,415,092 6.875%, 5/15/06 ................. 3,600 3,790,116 7.25%, 8/15/04 .................. 4,900 5,212,374 ----------- 13,342,140 ----------- TIME DEPOSIT-1.7% State Street Bank Euro Dollar 4.50%, 7/01/99 .................. 754 754,000 ----------- 14,096,140 ----------- TOTAL INVESTMENTS-97.9% (cost $44,404,305) .............. 42,893,063 Other assets less liabilities-2.1% ................ 912,323 ----------- NET ASSETS-100% .................... $43,805,386 =========== - -------------------------------------------------------------------------------- (a) Securities, or portion thereof, with an aggregate market value of $7,409,611 have been segregated to collateralize forward exchange currency contracts. See Glossary of Terms on page B-39. See Notes to Financial Statements. B-30 GLOBAL DOLLAR GOVERNMENT PORTFOLIO PORTFOLIO OF INVESTMENTS June 30, 1999 (unaudited) Alliance Variable Products Series Fund ================================================================================ Shares or Principal Amount (000) U.S. $ Value - ------------------------------------------------------------------------------- SOVEREIGN DEBT OBLIGATIONS-66.4% NON-COLLATERALIZED BRADY BONDS-21.2% BRAZIL-10.4% Republic of Brazil, C-Bonds 5.00%, 4/15/14 (a) .......................... $ 885 $ 570,507 Republic of Brazil FRN 5.9375%, 4/15/12 ............................ 520 317,876 --------------- 888,383 --------------- BULGARIA-5.6% Republic of Bulgaria FLIRB 2.50%, 7/28/12 (b) .......................... 800 476,000 --------------- PERU-5.2% Republic of Peru FLIRB 3.75%, 3/07/17 (b)(c) ....................... 250 136,875 Republic of Peru PDI 4.50%, 3/07/17 .............................. 500 306,900 --------------- 443,775 --------------- Total Non-Collateralized Brady Bonds (cost $2,040,185) ........................... 1,808,158 --------------- OTHER SOVEREIGN DEBT OBLIGATIONS-34.4% ARGENTINA-4.1% Province of Tucuman 9.45%, 8/01/04 (c) .......................... 412 338,247 Republic of Argentina, warrants, expiring 12/03/99 (d) ....................... 0 4,000 Republic of Argentina, warrants, expiring 2/25/00 (d) ........................ 0 4,945 --------------- 347,192 --------------- COLOMBIA-2.5% Republic of Colombia 8.375%, 2/15/27 ............................. 300 210,000 --------------- MEXICO-13.6% United Mexican States 9.75%, 4/06/05 .............................. 300 303,750 United Mexican States 10.375%, 2/17/09 ............................ 850 858,500 --------------- 1,162,250 --------------- PANAMA-4.5% Republic of Panama 9.375%, 4/01/29 ............................. 400 380,520 --------------- RUSSIA-5.7% Russia Ministry of Finance 3.00%, 5/14/03 .............................. 400 94,000 Russia Ministry of Finance 12.75%, 6/24/28 ............................. 500 280,000 Russian IAN FRN 6.0625%, 12/15/15 ........................... 692 108,107 --------------- 482,107 --------------- Principal Amount (000) U.S. $ Value - ------------------------------------------------------------------------------- TURKEY-1.2% Republic of Turkey 12.375%, 6/15/09 ............................ $ 100 $ 99,250 --------------- UNITED STATES-2.8% Republic of Costa Rica 9.335%, 5/15/09 (c) ......................... 100 97,500 Republic of Philippines 8.875%, 4/15/08 ............................. 150 145,350 --------------- 242,850 --------------- Total Other Sovereign Debt Obligations (cost $2,948,897) ........................... 2,924,169 --------------- COLLATERALIZED BRADY BONDS-10.8% ARGENTINA-3.4% Republic of Argentina 5.75%, 3/31/23 .............................. 460 291,548 --------------- BULGARIA-2.4% Republic of Bulgaria FRN 5.875%, 7/28/24 ............................. 300 203,250 --------------- ECUADOR-1.0% Republic of Ecuador FRN 6.00%, 2/28/25 .............................. 180 83,250 --------------- VENEZUELA-4.0% Republic of Venezuela 6.75%, 3/31/20 .............................. 500 343,750 --------------- Total Collateralized Brady Bonds (cost $978,382) ............................. 921,798 --------------- Total Sovereign Debt Obligations (cost $5,967,464) ........................... 5,654,125 --------------- CORPORATE DEBT OBLIGATIONS-23.1% BANKING-4.6% Banco Nacional De Desenvolvimiento Economico FRN 10.80%, 6/16/08 (c) ......................... 300 250,125 Korea Development Bank FRN 8.889%, 6/16/03 (c) ......................... 150 146,250 --------------- 396,375 --------------- COMMUNICATIONS-2.4% Viatel, Inc. 11.50%, 3/15/09 (c) ......................... 200 207,000 --------------- ELECTRONICS-4.0% Samsung Electronics, Ltd. 7.45%, 10/01/02 (c) ......................... 350 337,472 --------------- INDUSTRIAL-4.8% Petroleos Mexicanos 9.25%, 3/30/18 (c) .......................... 500 405,000 --------------- B-31 Alliance Variable Products Series Fund ================================================================================ Principal Amount (000) U.S. $ Value - ------------------------------------------------------------------------------- YANKEE BOND-7.3% Cantv Finance, Ltd. 9.25%, 2/01/04 .............................. $ 500 $ 433,125 Consorcio Ecuatoriano 14.00%, 5/01/02 (c) ......................... 400 112,000 Interamericas Communications 14.00%, 10/27/07 (c)(e) .................... 100 68,500 Transportacion Maritima Mexicana SP 9.25%, 5/15/03 .............................. 12 9,270 --------------- 622,895 --------------- Total Corporate Debt Obligations (cost $2,427,470) ........................... 1,968,742 --------------- U.S. $ Value - ------------------------------------------------------------------------------- TOTAL INVESTMENTS-89.5% (cost $8,394,934) ........................... $ 7,622,867 Other assets less liabilities-10.5% ........................... 892,868 --------------- NET ASSETS-100% ................................ $ 8,515,735 =============== - -------------------------------------------------------------------------------- (a) Coupon consists of 5% cash payment and 3% paid in kind. (b) Coupon will increase periodically based upon a predetermined schedule. Stated interest rate in effect at June 30, 1999. (c) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration normally applied to certain qualified buyers. At June 30, 1999 the aggregate market value of these securities amounted to $2,098,969 or 24.7% of net assets. (d) Non-income producing security. (e) Security trades with warrants expiring in October 2007. See Glossary of Terms on page B-39. See Notes to Financial Statements. B-32 HIGH-YIELD PORTFOLIO PORTFOLIO OF INVESTMENTS June 30, 1999 (unaudited) Alliance Variable Products Series Fund ================================================================================ Principal Amount (000) U.S. $ Value - ------------------------------------------------------------------------------- CORPORATE DEBT OBLIGATIONS-91.1% AUTOMOTIVE-2.8% American Axle & Manufacturing, Inc. 9.75%, 3/01/09 (a) .......................... $ 300 $ 301,500 Federal Mogul Corp. 7.50%, 1/15/09 (a) .......................... 300 276,942 --------------- 578,442 --------------- CABLE-4.9% Charter Communications Holdings LLC 8.625%, 4/01/09 (a) ......................... 500 482,500 NTL, Inc. 10.00%, 2/15/07 ............................. 300 312,000 TVN Entertainment Corp. 14.00%, 8/01/08 (a)(b)(c) ................... 400 220,000 --------------- 1,014,500 --------------- CHEMICALS-7.2% Climachem, Inc. Series B 10.75%, 12/01/07 ............................ 300 288,375 Lyondell Chemical Co. 9.875%, 5/01/07 ............................. 500 513,750 Philipp Brothers Chemicals, Inc. 9.875%, 6/01/08 (a) ......................... 400 366,000 Royster Clark, Inc. 10.25%, 4/01/09 (a) ......................... 300 297,000 --------------- 1,465,125 --------------- COMMUNICATIONS-10.9% Call-Net Enterprises, Inc. 9.375%, 5/15/09 ............................. 250 239,375 Iridium Capital Corp. LLC 14.00%, 7/15/05 (a) ......................... 550 118,250 Nextlink Communications, Inc. 10.75%, 6/01/09 ............................. 250 257,500 Orbital Imaging Corp. Series B 11.625%, 3/01/05 (a) ........................ 300 274,500 RSL Communications Plc 10.50%, 11/15/08 ............................ 500 497,500 Spectrasite Holdings, Inc. 0.00%, 4/15/09 (a) .......................... 500 282,500 Telecorp PCS, Inc. 0.00%, 4/15/09 (a) .......................... 500 278,750 Versatel Telecom BV, warrants expiring 5/15/08 (a)(b) .................... 1 25,000 Winstar Equipment Corp. 12.50%, 3/15/04 (a) ......................... 250 261,875 --------------- 2,235,250 --------------- CONSUMER MANUFACTURING-2.2% Derby Cycle Corp. 10.00%, 5/15/08 ............................. 250 203,750 Sleepmaster LLC 11.00%, 5/15/09 (a) ......................... 250 255,625 --------------- 459,375 --------------- ENERGY-4.8% Northern Offshore ASA 10.00%, 5/15/05 (a) ......................... 300 166,500 Pride International, Inc. 10.00%, 6/01/09 ............................. 300 306,000 Queens Sand Resources, Inc. 12.50%, 7/01/08 ............................. 400 246,000 Western Gas Resources, Inc. 10.00%, 6/15/09 (a) ......................... 250 256,250 --------------- 974,750 --------------- ENTERTAINMENT-2.4% Harrahs Operating, Inc. 7.875%, 12/15/05 ............................ 250 243,125 Hollywood Park, Inc. 9.25%, 2/15/07 .............................. 250 249,375 --------------- 492,500 --------------- HEALTHCARE-5.5% Lifepoint Hospitals Holdings, Inc. 10.75%, 5/15/09 (a) ......................... 300 306,750 Quest Diagnostic, Inc. 9.875%, 7/01/09 ............................. 500 505,000 Triad Hospitals Holdings, Inc. 11.00%, 5/15/09 (a) ......................... 300 306,750 --------------- 1,118,500 --------------- HOTELS-2.3% Florida Panthers Holdings, Inc. 9.875%, 4/15/09 (a) ......................... 250 235,000 Vail Resorts, Inc. 8.75%, 5/15/09 (a) .......................... 250 244,375 --------------- 479,375 --------------- HOUSEHOLD FURNISHINGS-1.5% Imperial Home Decor Group, Inc. 11.00%, 3/15/08 ............................. 400 302,000 --------------- INDUSTRIAL-10.3% Amtrol, Inc. 10.625%, 12/31/06 ........................... 300 295,500 Anchor Lamina, Inc. 9.875%, 2/01/08 ............................. 500 462,500 Aqua Chemical, Inc. 11.25%, 7/01/08 ............................. 300 211,500 Elgar Holdings, Inc. 9.875%, 2/01/08 ............................. 50 40,250 Fairfield Manufacturing, Inc. 9.625%, 10/15/08 (a) ........................ 250 246,875 Geologistics Corp. 9.75%, 10/15/07 ............................. 500 380,625 ITT Corp. 6.75%, 11/15/05 ............................. 250 226,841 ZSC Specialty Chemicals Plc 11.00%, 7/01/09 (a) ......................... 250 251,562 --------------- 2,115,653 --------------- B-33 Alliance Variable Products Series Fund ================================================================================ Principal Amount (000) U.S. $ Value - ------------------------------------------------------------------------------- METALS & MINING-4.1% Alaska Steel Corp. 7.875%, 2/15/09 (a) ......................... $ 300 $ 289,500 P&L Coal Holdings Corp. 9.625%, 5/15/08 ............................. 300 299,250 Russel Metals, Inc. 10.00%, 6/01/09 ............................. 250 251,875 --------------- 840,625 --------------- PAPER / PACKAGING-8.5% Consolidated Container Company LLC 10.125%, 7/15/09 (a) ........................ 300 303,000 Doman Industries, Ltd. 12.00%, 7/01/04 (a) ......................... 250 242,500 Repap New Brunswick, Inc. 9.00%, 6/01/04 .............................. 250 234,375 Riverwood International Corp. 10.625%, 8/01/07 (a) ........................ 400 412,000 Russell Stanley Holdings, Inc. 10.875%, 2/15/09 (a) ........................ 250 248,750 Tembec Industries, Inc. 8.625%, 6/30/09 ............................. 300 300,000 --------------- 1,740,625 --------------- PUBLIC UTILITIES-6.4% AES Corp. 9.50%, 6/01/09 .............................. 250 258,125 Calpine Corp. 7.75%, 4/15/09 .............................. 500 471,250 Filtronic Plc 10.00%, 12/01/05 (a) ........................ 250 252,188 Generac Portable Products LLC 11.25%, 7/01/06 (a) ......................... 300 330,000 --------------- 1,311,563 --------------- REAL ESTATE-5.0% LNR Property Corp. 10.50%, 1/15/09 ............................. 500 502,500 Reliant Building Products, Inc. Series B 10.875%, 5/01/04 (a) ........................ 400 270,000 Werner Holding Co., Inc. 10.00%, 11/15/07 ............................ 250 246,875 --------------- 1,019,375 --------------- RETAIL-1.2% Sonic Automotive, Inc. 11.00%, 8/01/08 ............................. 250 248,750 --------------- SERVICES-3.4% Avis Rent a Car, Inc. 11.00%, 5/01/09 (a) ......................... 250 253,438 United Rentals, Inc. 9.00%, 4/01/09 (a) .......................... 250 246,250 United States Office Products Co. 9.75%, 6/15/08 .............................. 300 199,500 --------------- 699,188 --------------- TECHNOLOGY-6.2% Amkor Technology, Inc. 9.25%, 5/01/06 .............................. 300 294,000 Dialog Corp. Plc 11.00%, 11/15/07 ............................ 500 455,000 Fairchild Semiconductor Corp. 10.375%, 10/01/07 (a) ....................... 300 296,250 Viasystems, Inc. 9.75%, 6/01/07 (a) .......................... 250 220,000 --------------- 1,265,250 --------------- TRANSPORTATION-1.5% American Commercial Lines LLC 10.25%, 6/30/08 (a) ......................... 300 301,500 --------------- Total Corporate Debt Obligations (cost $20,013,413) .......................... 18,662,346 --------------- SHORT-TERM INVESTMENT-10.8% TIME DEPOSIT-10.8% State Street Bank Euro Dollar 4.50%, 7/01/99 (amortized cost $2,212,000) ................................. 2,212 2,212,000 --------------- TOTAL INVESTMENTS-101.9% (cost $22,225,413) .......................... 20,874,346 Other assets less liabilities-(1.9%) ........... (394,584) --------------- NET ASSETS-100% ................................ $20,479,762 =============== - -------------------------------------------------------------------------------- (a) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration normally applied to certain qualified buyers. At June 30, 1999, the aggregate market value of these securities amounted to $9,119,880 or 44.5% of net assets. (b) Non-income producing security. (c) Security trades with warrants expiring August 1, 2008. See Glossary of Terms on page B-39. See Notes to Financial Statements. B-34 NORTH AMERICAN GOVERNMENT INCOME PORTFOLIO PORTFOLIO OF INVESTMENTS June 30, 1999 (unaudited) Alliance Variable Products Series Fund ================================================================================ Principal Amount (000) U.S. $ Value - -------------------------------------------------------------------------------- ARGENTINA-19.9% GOVERNMENT OBLIGATIONS-19.9% Republic of Argentina Pensioner-Bocon Pre I FRN 2.815%, 4/01/01 ................. ARS 152 $ 137,150 Supplier-Bocon Pro I FRN 2.815%, 4/01/07 ................. 8,792 5,746,146 ----------- Total Argentinian Securities (cost $6,158,344) ............... 5,883,296 ----------- CANADA-7.2% GOVERNMENT/AGENCY OBLIGATIONS-7.2% Government of Canada 6.50%, 6/01/04 .................. CA$ 850 600,628 Province of British Columbia 8.00%, 9/08/23 .................. 400 331,102 Province of Manitoba 7.75%, 12/22/25 ................. 450 369,260 Province of Ontario 8.25%, 12/01/05 ................. 275 210,856 Province of Quebec 7.75%, 3/30/06 .................. 325 242,352 Province of Saskatchewan 9.60%, 2/04/22 .................. 400 385,888 ----------- Total Canadian Securities (cost $1,968,733) ............... 2,140,086 ----------- MEXICO-24.3% GOVERNMENT/AGENCY OBLIGATIONS-24.3% Mexican Treasury Bills (a) 24.98%, 9/09/99 ................. MXP 7,397 753,182 30.75%, 8/05/99 ................. 6,620 687,844 30.75%, 5/11/00 ................. 59,568 5,249,493 Nacional Financiera SNC 22.00%, 5/20/02 (b) ............. 5,000 507,634 ----------- Total Mexican Securities (cost $6,973,366) ............... 7,198,153 ----------- UNITED STATES-46.0% FEDERAL/AGENCY OBLIGATIONS-1.4% Federal Home Loan Bank 7.26%, 9/06/01 .................. US$ 200 $ 205,968 Federal Home Loan Mortgage Corp. 6.13%, 8/19/99 .................. 150 150,117 Government National Mortgage Association 9.00%, 9/15/24 .................. 65 68,600 ----------- 424,685 ----------- U.S. TREASURY SECURITIES-40.0% U.S. Treasury Notes 5.625%, 5/15/08 ................. 6,800 6,660,804 7.00%, 7/15/06 .................. 2,400 2,542,128 7.25%, 8/15/04 .................. 2,500 2,659,374 ----------- 11,862,306 ----------- TIME DEPOSIT-4.6% State Street Bank Euro Dollar 4.50%, 7/01/99 .................. 1,359 1,359,000 ----------- Total United States Securities (cost $13,995,376) .............. 13,645,991 ----------- TOTAL INVESTMENTS-97.4% (cost $29,095,819) .............. 28,867,526 Other assets less liabilities-2.6% ................ 769,505 ----------- NET ASSETS-100% .................... $29,637,031 =========== - -------------------------------------------------------------------------------- (a) Interest rate represents annualized yield to maturity at purchase date. (b) Security exempt from registration under Rule 144A of the Securities Act of 1933. This security may be resold in transactions exempt from registration normally applied to certain qualified buyers. At June 30, 1999, the aggregate market value of this security amounted to $507,634 or 1.7% of net assets. See Glossary of Terms on page B-39. See Notes to Financial Statements. B-35 SHORT-TERM MULTI-MARKET PORTFOLIO PORTFOLIO OF INVESTMENTS June 30, 1999 (unaudited) Alliance Variable Products Series Fund ================================================================================ Principal Amount (000) U.S. $ Value - -------------------------------------------------------------------------------- DENMARK-4.7% GOVERNMENT OBLIGATION-4.7% Kingdom of Denmark 9.00%, 11/15/00 (cost $320,411) ................. DKK 2,000 $ 297,108 ----------- FRANCE-3.8% GOVERNMENT OBLIGATION-3.8% Government of France 7.75%, 4/12/00 (a) (cost $268,244) ................. EUR 229 244,685 ----------- GERMANY-16.5% DEBT OBLIGATION-7.9% Bremer Landesbank Kreditanstalt Oldenburg 6.375%, 12/29/99 (a) ............ US 500 501,000 ----------- GOVERNMENT OBLIGATION-8.6% Government of Germany 5.75%, 8/22/00 (a) .............. EUR 511 543,140 ----------- Total German Securities (cost $1,090,324) ............... 1,044,140 ----------- ITALY-8.5% GOVERNMENT OBLIGATION-8.5% Republic of Italy 6.00%, 2/15/00 (cost $587,226) ................. 516 542,504 ----------- NETHERLANDS-4.8% DEBT OBLIGATION-4.8% Rabobank Nederland 6.25%, 12/31/99 (a) (cost $301,230) ................. US$ 300 300,450 ----------- NEW ZEALAND-6.6% DEBT OBLIGATION-3.4% International Bank for Reconstruction & Development 7.00%, 9/18/00 (a) .............. NZ$ 400 215,274 ----------- GOVERNMENT OBLIGATION-3.2% Government of New Zealand 8.00%, 2/15/01 .................. 365 201,173 ----------- Total New Zealand Securities (cost $458,399) ................. 416,447 ----------- SWEDEN-5.9% GOVERNMENT OBLIGATION-5.9% Kingdom of Sweden 10.25%, 5/05/00 (a) (cost $436,278) ................. SEK 3,000 373,154 ----------- UNITED KINGDOM-6.6% DEBT OBLIGATION-6.6% Abbey National Treasury Services 7.125%, 3/14/01 ................. GBP 75 120,654 Suedwest Deutsche Landesbank 5.75%, 12/10/99 (a) ............. US$ 300 299,850 ----------- Total United Kingdom Securities (cost $420,441) ................. 420,504 ----------- UNITED STATES-38.7% DEBT OBLIGATIONS-4.2% Federal National Mortgage Association 7.00%, 9/26/00 (a) .............. NZ$ 500 268,696 ----------- TIME DEPOSIT-34.5% State Street Bank Euro Dollar 4.50%, 7/01/99 .................. US$ 2,185 2,185,000 ----------- Total United States Securities (cost $2,447,270) ............... 2,453,696 ----------- TOTAL INVESTMENTS-96.1% (cost $6,329,823) ............... 6,092,688 Other assets less liabilities-3.9% ................ 245,727 ----------- NET ASSETS-100% .................... $ 6,338,415 =========== - -------------------------------------------------------------------------------- (a) Securities, or portion thereof, with an aggregate market value of $2,746,249 have been segregated to collateralize forward exchange currency contracts. See Glossary of Terms on page B-39. See Notes to Financial Statements. B-36 U.S. GOVERNMENT/HIGH GRADE SECURITIES PORTFOLIO PORTFOLIO OF INVESTMENTS June 30, 1999 (unaudited) Alliance Variable Products Series Fund ================================================================================ Principal Amount (000) U.S. $ Value - -------------------------------------------------------------------------------- U.S. GOVERNMENT/AGENCY OBLIGATIONS-68.0% FEDERAL AGENCIES-38.6% Federal National Mortgage Association 6.00%, 9/01/13 ........................... $1,482 $ 1,431,913 6.00%, 3/01/29 ........................... 2,598 2,440,948 6.50%, 10/01/28 .......................... 824 794,876 6.50%, 12/01/28 .......................... 760 733,207 6.50%, 6/01/29 ........................... 600 578,866 7.00%, 2/01/12 ........................... 1,843 1,849,452 7.00%, 4/01/26 ........................... 310 306,468 7.00%, 5/01/28 ........................... 382 378,171 7.50%, 9/01/27 ........................... 1,000 1,009,999 7.50%, 4/01/29 ........................... 2,363 2,386,478 8.00%, 11/01/28 .......................... 524 537,978 8.00%, 1/01/29 ........................... 875 898,487 Government National Mortgage Association 6.50%, 3/15/28 ........................... 546 525,471 6.50%, 7/15/28 ........................... 1,148 1,104,189 6.50%, 3/15/29 ........................... 2,736 2,630,588 7.00%, 7/15/23 ........................... 54 53,671 7.00%, 7/15/27 ........................... 794 783,342 7.00%, 2/15/28 ........................... 692 682,947 7.00%, 3/15/28 ........................... 899 886,760 7.00%, 12/15/28 .......................... 2,465 2,431,544 ----------- 22,445,355 ----------- U.S. TREASURY SECURITIES-29.4% U.S. Treasury Bonds 5.25%, 11/15/28 .......................... 1,150 1,019,372 5.25%, 2/15/29 ........................... 625 561,525 6.125%, 11/15/27 ......................... 500 496,640 8.125%, 8/15/19 .......................... 1,740 2,101,589 U.S. Treasury Notes 6.50%, 5/31/02 ........................... 4,525 4,627,536 6.75%, 4/30/00 ........................... 2,700 2,731,644 6.875%, 5/15/06 .......................... 3,500 3,684,835 7.25%, 5/15/04 ........................... 1,800 1,911,366 ----------- 17,134,507 ----------- Total U.S. Government/Agency Obligations (cost $40,738,083) ....................... 39,579,862 ----------- CORPORATE DEBT OBLIGATIONS-22.9% AUTOMOTIVE-3.4% Ford Motor Co. 6.375%, 2/01/29 .......................... 2,250 1,960,859 ----------- BANKING-2.4% Citicorp 6.375%, 11/15/08 ......................... 1,400 1,332,226 Wachovia Corp. 6.375%, 4/15/03 .......................... 75 74,638 ----------- 1,406,864 ----------- BROADCASTING/MEDIA-2.2% Time Warner, Inc. 6.625%, 5/15/29 .......................... 1,450 1,281,121 ----------- CABLE-3.8% Comcast Cable Corp. 8.375%, 5/01/07 .......................... 1,000 1,069,175 Cox Communications, Inc. 6.80%, 8/01/28 ........................... 1,250 1,125,305 ----------- 2,194,480 ----------- FINANCE-5.1% Goldman Sachs Group LP 7.25%, 10/01/05 (a) ...................... 500 507,817 Household Finance Corp. 5.875%, 11/01/02 ......................... 1,150 1,127,904 Household Netherlands BV 6.20%, 12/01/03 .......................... 1,350 1,324,960 ----------- 2,960,681 ----------- TRANSPORTATION-3.0% Burlington Northern Santa Fe 7.082%, 5/13/29 .......................... 500 491,751 Union Pacific Corp. 6.79%, 11/09/07 .......................... 1,300 1,266,502 ----------- 1,758,253 ----------- YANKEE BONDS-3.0% Empresa Nacional De Electricidade, SA 8.50%, 4/01/09 (a) ....................... 1,240 1,216,982 St. George Bank, Ltd. 7.15%, 10/15/05 (a) ...................... 500 497,206 ----------- 1,714,188 ----------- Total Corporate Debt Obligations (cost $14,075,400) ....................... 13,276,446 ----------- ASSET BACKED SECURITIES-4.1% Capital Auto Receivables 5.58%, 6/15/02 ........................... 1,500 1,486,410 Carco Auto Loan 5.65%, 3/15/03 ........................... 920 914,968 ----------- Total Asset Backed Securities (cost $2,419,626) ........................ 2,401,378 ----------- B-37 Alliance Variable Products Series Fund ================================================================================ Principal Amount (000) U.S. $ Value - -------------------------------------------------------------------------------- COLLATERALIZED MORTGAGE BACKED SECURITIES-1.0% LB Commercial Conduit Mortgage Trust 6.78%, 4/15/09 (cost $605,773) .......................... $ 600 $ 593,013 ----------- SHORT-TERM INVESTMENT-3.2% TIME DEPOSIT-3.2% State Street Cayman Islands 4.50%, 7/01/99 (amortized cost $1,844,000) .............................. 1,844 1,844,000 ----------- U.S. $ Value - -------------------------------------------------------------------------------- TOTAL INVESTMENTS-99.2% (cost $59,682,882) ....................... $57,694,699 Other assets less liabilities-0.8% ......................... 484,997 ----------- NET ASSETS-100% ............................. $58,179,696 =========== - -------------------------------------------------------------------------------- a) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration normally applied to certain qualified buyers. At June 30, 1999, the aggregate market value of these securities amounted to $2,222,005 or 3.8% of net assets. See Glossary of Terms on page B-39. See Notes to Financial Statements. B-38 MONEY MARKET PORTFOLIO PORTFOLIO OF INVESTMENTS June 30, 1999 (unaudited) Alliance Variable Products Series Fund ================================================================================ Principal Amount (000) U.S. $ Value - ------------------------------------------------------------------------------- COMMERCIAL PAPER-89.0% Allianz of America Finance Corp. 4.89%, 8/24/99 (a) ........................ $3,000 $ 2,977,995 5.13%, 9/28/99 (a) ........................ 3,000 2,961,952 Bell Atlantic Financial Services 5.21%, 7/14/99 ............................ 5,900 5,888,900 Cargill Global Funding 5.70%, 7/01/99 ............................ 6,000 6,000,000 Citibank 4.90%, 8/26/99 ............................ 3,000 2,977,133 DaimlerChrysler 4.98%, 7/15/99 ............................ 3,000 2,994,190 Duke Energy Corp. 5.65%, 7/01/99 ............................ 6,000 6,000,000 Eastman Kodak Co. 5.01%, 7/22/99 ............................ 4,600 4,586,556 Equilon Enterprise LLC 5.10%, 7/26/99 ............................ 6,000 5,978,750 Exxon Project Investment Corp. 5.75%, 7/01/99 ............................ 6,000 6,000,000 Ford Motor Credit Corp. 4.89%, 7/27/99 ............................ 3,000 2,989,405 5.19%, 9/30/99 ............................ 3,000 2,960,643 GE Capital International Funding 5.22%, 9/30/99 ............................ 3,000 2,960,415 General Electric Capital Corp. 4.90%, 8/31/99 ............................ 3,000 2,975,092 General Motors Acceptance Corp 4.95%, 7/15/99 ............................ 3,300 3,293,648 Government Development Bank of Puerto Rico 5.22%, 7/23/99 ............................ 6,000 5,980,860 Household Finance Corp. 5.15%, 7/30/99 ............................ 3,000 2,987,554 J.P. Morgan & Co., Inc. 4.83%, 9/27/99 ............................ 3,000 2,964,580 Merril Lynch & Co. 5.10%, 7/30/99 ............................ 4,000 3,983,567 Morgan Stanley Group, Inc. 5.75%, 7/01/99 ............................ 3,500 3,500,000 National City Corp. 5.20%, 8/13/99 ............................ 6,000 5,962,733 National Rural Utilities Corp. 4.90%, 8/26/99 ............................ 3,000 2,977,133 Norwest Financial Inc. 5.11%, 7/30/99 ............................ 6,000 5,975,302 Prudential Funding Corp. 5.01%, 7/30/99 ............................ 6,000 5,975,785 Southern Co. 5.05%, 7/14/99 ............................ 3,000 2,994,529 Teachers Insurance 5.20%, 7/30/99 ............................ 6,000 5,974,867 ------------- Total Commercial Paper (amortized cost $110,821,589) ............................. 110,821,589 ------------- CERTIFICATES OF DEPOSIT-4.0% State Street Bank & Trust Co. 4.95%, 9/13/99 (amortized cost $5,000,000) ............................... 5,000 5,000,000 ------------- BANKERS ACCEPTANCE-4.0% First National Bank of Chicago 5.60%, 6/14/00 (amortized cost $4,997,708) ............................... 5,000 4,997,708 ------------- PROMISSORY NOTE-3.2% Goldman Sachs Group LP FRN 5.03%, 11/19/99 (a) (amortized cost $4,000,000) ............................... 4,000 4,000,000 ------------- TOTAL INVESTMENTS-100.2% (cost $124,819,297) ....................... 124,819,297 Other assets less liabilities-(0.2%) ........................ (248,543) ------------- NET ASSETS-100% .............................. $ 124,570,754 ============= - -------------------------------------------------------------------------------- (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, 1999, the aggregate market value of these securities amounted to $9,939,947 or 8.0% of net assets. Glossary of Terms: ADR American Depositary Receipts ADS American Depositary Shares FLIRB Front Load Interest Reduction Bond FRN Floating Rate Note GDR Global Depositary Receipts GDS Global Depositary Shares IAN Interest Arrears Note PDI Past Due Interest See Notes to Financial Statements. B-39 STATEMENTS OF ASSETS AND LIABILITIES June 30, 1999 (unaudited) Alliance Variable Products Series Fund ================================================================================
Conservative Growth Total Growth and Investors Investors Return Income Portfolio Portfolio Portfolio Portfolio ---------------- ---------------- ---------------- ---------------- ASSETS Investments in securities, at value (cost $31,975,204, $16,984,036, $62,950,921 and $412,520,984, respectively) ................. $ 33,121,029 $ 18,724,339 $ 69,437,723 $491,222,523 Cash, at value (cost $1,001,298, $939,538, $18,777 and $192,561, respectively) ....... 980,340 926,553 18,777 192,561 Interest receivable ............. 389,457 136,144 291,568 2,975 Dividends receivable ............ 7,324 9,896 37,858 485,881 Deferred organization expenses .. 646 646 -0- -0- Receivable for investment securities sold ............... -0- -0- 187,580 324,723 ------------ ------------ ------------ ------------ Total assets .................... 34,498,796 19,797,578 69,973,506 492,228,663 ------------ ------------ ------------ ------------ LIABILITIES Advisory fee payable ............ 19,607 8,142 34,459 238,414 Payable for investment securities purchased ..................... -0- 836,038 816,940 8,586,068 Accrued expenses ................ 15,623 13,247 71,576 127,368 ------------ ------------ ------------ ------------ Total liabilities ............... 35,230 857,427 922,975 8,951,850 ------------ ------------ ------------ ------------ NET ASSETS ......................... $ 34,463,566 $ 18,940,151 $ 69,050,531 $483,276,813 ============ ============ ============ ============ COMPOSITION OF NET ASSETS Capital stock, at par ........... $ 2,655 $ 1,224 $ 3,898 $ 21,559 Additional paid-in capital ...... 31,198,256 14,790,636 58,579,026 383,145,986 Undistributed net investment income ........................ 632,513 180,418 741,439 1,532,202 Accumulated net realized gain on investments and foreign currency transactions ......... 1,505,504 2,240,799 3,239,366 19,875,527 Net unrealized appreciation of investments and foreign currency denominated assets and liabilities ............... 1,124,638 1,727,074 6,486,802 78,701,539 ------------ ------------ ------------ ------------ $ 34,463,566 $ 18,940,151 $ 69,050,531 $483,276,813 ============ ============ ============ ============ Class A Shares Net assets ...................... $ 34,463,566 $ 18,940,151 $ 69,050,531 $481,492,485 ============ ============ ============ ============ Shares of capital stock outstanding ................... 2,654,881 1,223,500 3,898,392 21,479,426 ============ ============ ============ ============ Net asset value per share ....... $ 12.98 $ 15.48 $ 17.71 $ 22.42 ============ ============ ============ ============ Class B Shares Net assets ...................... $ 1,784,328 ============ Shares of capital stock outstanding ................... 79,589 ============ Net asset value per share ....... $ 22.42 ============
- -------------------------------------------------------------------------------- See Notes to Financial Statements. B-40 STATEMENTS OF ASSETS AND LIABILITIESS (continued) Alliance Variable Products Series Fund ================================================================================
Premier Growth International Growth Quasar Portfolio Portfolio Portfolio Portfolio ---------------- ---------------- ---------------- ---------------- ASSETS Investments in securities, at value (cost $261,292,259, $52,401,883, $1,217,726,252 and $140,821,304, respectively) ................. $ 381,840,211 $ 59,446,081 $ 1,722,496,369 $ 148,648,330 Cash, at value (cost $122,130 $1,971,117, $6,192,262 and $779, respectively) ........... 122,130 1,969,130 6,192,262 779 Receivable for investment securities sold ............... 649,118 1,506,809 -0- 207,352 Dividends receivable ............ 303,170 176,193 848,674 163,751 Interest receivable ............. 107,381 170 -0- 408 Deferred organization expenses .. 410 -0- -0- 11,001 --------------- --------------- --------------- --------------- Total assets .................... 383,022,420 63,098,383 1,729,537,305 149,031,621 --------------- --------------- --------------- --------------- LIABILITIES Advisory fee payable ............ 226,155 33,372 1,328,378 70,807 Payable for investment securities purchased ..................... 97,176 1,082,108 4,890,807 251,595 Accrued expenses ................ 135,614 34,256 494,371 45,192 --------------- --------------- --------------- --------------- Total liabilities ............... 458,945 1,149,736 6,713,556 367,594 --------------- --------------- --------------- --------------- NET ASSETS ......................... $ 382,563,475 $ 61,948,647 $ 1,722,823,749 $ 148,664,027 =============== =============== =============== =============== COMPOSITION OF NET ASSETS Capital stock, at par ........... $ 13,313 $ 3,788 $ 49,826 $ 12,568 Additional paid-in capital ...... 237,527,664 52,946,261 1,164,542,224 147,512,807 Undistributed net investment income (loss) ................. 410,726 259,527 (2,022,819) 237,378 Accumulated net realized gain (loss) on investments and foreign currency transactions . 24,063,935 1,705,523 55,484,401 (6,925,751) Net unrealized appreciation of investments and foreign currency denominated assets and liabilities ............... 120,547,837 7,033,548 504,770,117 7,827,025 --------------- --------------- --------------- --------------- $ 382,563,475 $ 61,948,647 $ 1,722,823,749 $ 148,664,027 =============== =============== =============== =============== Class A Shares Net assets ...................... $ 381,873,190 $ 61,948,647 $ 1,722,823,749 $ 148,664,027 =============== =============== =============== =============== Shares of capital stock outstanding ................... 13,288,440 3,787,361 49,825,711 12,567,930 =============== =============== =============== =============== Net asset value per share ....... $ 28.74 $ 16.36 $ 34.58 $ 11.83 =============== =============== =============== =============== Class B Shares Net assets ...................... $ 690,285 =============== Shares of capital stock outstanding ................... 24,022 =============== Net asset value per share ....... $ 28.74 ===============
- -------------------------------------------------------------------------------- See Notes to Financial Statements. B-41 Alliance Variable Products Series Fund ================================================================================
Real Estate Utility Worldwide Investment Technology Income Privatization Portfolio Portfolio Portfolio Portfolio ---------------- ---------------- ---------------- ---------------- ASSETS Investments in securities, at value (cost $20,981,602, $124,496,953, $30,552,619 and $37,267,815, respectively) ................. $ 19,568,407 $ 189,933,690 $ 41,726,814 $ 43,879,485 Cash, at value (cost $962, $273, $2,649 and $1,406,463, respectively) ................. 962 273 2,735 1,406,649 Dividends receivable ............ 153,101 9,034 40,652 190,390 Receivable for investment securities sold ............... 29,918 488,989 -0- 564,207 Deferred organization expenses .. 10,112 6,752 -0- 454 Interest receivable ............. 95 1,744 687 -0- --------------- --------------- --------------- --------------- Total assets .................... 19,762,595 190,440,482 41,770,888 46,041,185 --------------- --------------- --------------- --------------- LIABILITIES Payable for investment securities purchased ..................... 191,001 1,415,514 -0- 172,416 Advisory fee payable ............ 449 122,924 44,317 29,631 Accrued expenses ................ 29,849 27,153 41,118 103,592 --------------- --------------- --------------- --------------- Total liabilities ............... 221,299 1,565,591 85,435 305,639 --------------- --------------- --------------- --------------- NET ASSETS ......................... $ 19,541,296 $ 188,874,891 $ 41,685,453 $ 45,735,546 =============== =============== =============== =============== COMPOSITION OF NET ASSETS Capital stock, at par ........... $ 1,973 $ 8,554 $ 2,034 $ 2,892 Additional paid-in capital ...... 21,946,240 115,450,019 28,285,418 37,961,688 Undistributed net investment income (loss) ................. 498,818 (220,285) 346,393 366,374 Accumulated net realized gain (loss) on investments and foreign currency transactions . (1,492,540) 8,199,866 1,878,105 799,494 Net unrealized appreciation (depreciation) of investments and foreign currency denominated assets and liabilities ................... (1,413,195) 65,436,737 11,173,503 6,605,098 --------------- --------------- --------------- --------------- $ 19,541,296 $ 188,874,891 $ 41,685,453 $ 45,735,546 =============== =============== =============== =============== Class A Shares Shares of capital stock outstanding ................... 1,972,748 8,553,848 2,033,750 2,892,382 =============== =============== =============== =============== Net asset value per share ....... $ 9.91 $ 22.08 $ 20.50 $ 15.81 =============== =============== =============== ===============
- -------------------------------------------------------------------------------- See Notes to Financial Statements. B-42 STATEMENTS OF ASSETS AND LIABILITIESS (continued) Alliance Variable Products Series Fund ================================================================================
Global Dollar North American Global Bond Government High-Yield Government Income Portfolio Portfolio Portfolio Portfolio ---------------- ---------------- ---------------- ---------------- ASSETS Investments in securities, at value (cost $44,404,305, $8,394,934, $22,225,413 and $29,095,819, respectively) ................. $ 42,893,063 $ 7,622,867 $ 20,874,346 $ 28,867,526 Cash, at value (cost $313, $682,221, $841 and $429,776, respectively) ................. 313 682,221 841 430,163 Interest receivable ............. 947,051 232,031 434,980 264,264 Receivable for investment securities sold ............... -0- -0- -0- 102,730 --------------- --------------- --------------- --------------- Total assets .................... 43,840,427 8,537,119 21,310,167 29,664,683 --------------- --------------- --------------- --------------- LIABILITIES Advisory fee payable ............ 23,001 95 10,941 15,562 Unrealized depreciation of forward exchange currency contract ...................... 10,702 -0- -0- -0- Payable for investment securities purchased .......... -0- -0- 800,000 -0- Accrued expenses ................ 1,338 21,289 19,464 12,090 --------------- --------------- --------------- --------------- Total liabilities ............... 35,041 21,384 830,405 27,652 --------------- --------------- --------------- --------------- NET ASSETS ......................... $ 43,805,386 $ 8,515,735 $ 20,479,762 $ 29,637,031 =============== =============== =============== =============== COMPOSITION OF NET ASSETS Capital stock, at par ........... $ 3,972 $ 924 $ 2,234 $ 2,493 Additional paid-in capital ...... 45,126,440 12,630,563 23,343,549 28,979,767 Undistributed net investment income ........................ 285,755 489,544 916,177 959,490 Accumulated net realized loss on investments and foreign currency transactions.. (61,082) (3,833,229) (2,431,131) (77,055) Net unrealized depreciation of investments and foreign currency denominated assets and liabilities ............... (1,549,699) (772,067) (1,351,067) (227,664) --------------- --------------- --------------- --------------- $ 43,805,386 $ 8,515,735 $ 20,479,762 $ 29,637,031 =============== =============== =============== =============== Class A Shares Shares of capital stock outstanding ................... 3,972,265 924,415 2,233,988 2,492,617 =============== =============== =============== =============== Net asset value per share ....... $ 11.03 $ 9.21 $ 9.17 $ 11.89 =============== =============== =============== ===============
- -------------------------------------------------------------------------------- See Notes to Financial Statements. B-43 Alliance Variable Products Series Fund ================================================================================
Short-Term U.S. Government/ Multi-Market High Grade Securities Money Market Portfolio Portfolio Portfolio ---------------- ---------------- ---------------- ASSETS Investments in securities, at value (cost $6,329,823, $59,682,882 and $124,819,297, respectively) ....... $ 6,092,688 $ 57,694,699 $ 124,819,297 Cash, at value (cost $79,658, $677 and $205,372, respectively) ..................................... 77,427 677 205,372 Interest receivable ................................. 115,644 529,213 108,699 Unrealized appreciation of forward exchange currency contracts ................................ 59,469 -0- -0- Receivable from Adviser ............................. 440 -0- -0- ------------- ------------- ------------- Total assets ........................................ 6,345,668 58,224,589 125,133,368 ------------- ------------- ------------- LIABILITIES Advisory fee payable ................................ -0- 28,334 54,179 Dividend payable .................................... -0- -0- 469,853 Accrued expenses .................................... 7,253 16,559 38,582 ------------- ------------- ------------- Total liabilities ................................... 7,253 44,893 562,614 ------------- ------------- ------------- NET ASSETS ............................................. $ 6,338,415 $ 58,179,696 $ 124,570,754 ============= ============= ============= COMPOSITION OF NET ASSETS Capital stock, at par ............................... $ 649 $ 5,227 $ 124,571 Additional paid-in capital .......................... 7,545,317 59,569,562 124,446,010 Undistributed net investment income ................. 27,678 1,535,439 573 Accumulated net realized loss on investments and foreign currency transactions ..................... (1,051,068) (942,349) (400) Net unrealized depreciation of investments and foreign currency denominated assets and liabilities (184,161) (1,988,183) -0- ------------- ------------- ------------- $ 6,338,415 $ 58,179,696 $ 124,570,754 ============= ============= ============= Class A shares Net assets .......................................... $ 6,338,415 $ 58,080,071 $ 124,456,260 ============= ============= ============= Shares of capital stock outstanding ................. 649,465 5,217,779 124,456,417 ============= ============= ============= Net asset value per share ........................... $ 9.76 $ 11.13 $ 1.00 ============= ============= ============= Class B shares Net assets .......................................... $ 99,625 $ 114,494 ============= ============= Shares of capital stock outstanding ................. 8,952 114,494 ============= ============= Net asset value per share ........................... $ 11.13 $ 1.00 ============= =============
- -------------------------------------------------------------------------------- See Notes to Financial Statements. B-44 STATEMENTS OF OPERATIONS Six Months Ended June 30, 1999 (unaudited) Alliance Variable Products Series Fund ================================================================================
Conservative Growth Total Growth and Investors Investors Return Income Portfolio Portfolio Portfolio Portfolio ---------------- --------------- -------------- ------------ INVESTMENT INCOME Interest .......................... $ 767,237 $ 212,978 $ 773,317 $ 358,848 Dividends (net of foreign taxes withheld of $3,444, $4,933, $30 and $320, respectively) ..... 50,845 75,757 242,370 2,673,163 ------------ ------------ ------------ ------------ Total investment income ........... 818,082 288,735 1,015,687 3,032,011 ------------ ------------ ------------ ------------ EXPENSES Advisory fee ...................... 135,274 75,722 196,714 1,295,838 Distribution fee - Class B ........ -0- -0- -0- 168 Custodian ......................... 31,637 33,846 27,508 45,600 Administrative .................... 31,500 31,500 31,500 31,500 Audit and legal ................... 2,673 1,514 2,941 32,196 Printing .......................... 2,325 1,567 2,788 49,741 Amortization of organization expenses ........................ 992 992 -0- -0- Directors' fees ................... 620 721 606 522 Transfer agency ................... 473 481 450 574 Miscellaneous ..................... 4,097 722 1,633 7,507 ------------ ------------ ------------ ------------ Total expenses .................... 209,591 147,065 264,140 1,463,646 Less: expenses waived and reimbursed ...................... (38,245) (51,150) -0- -0- ------------ ------------ ------------ ------------ Net expenses ...................... 171,346 95,915 264,140 1,463,646 ------------ ------------ ------------ ------------ Net investment income ............. 646,736 192,820 751,547 1,568,365 ------------ ------------ ------------ ------------ REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS Net realized gain on investment transactions .................... 1,564,251 2,268,845 3,277,112 20,130,014 Net realized gain (loss) on foreign currency transactions ........... (24,732) (19,583) 5 60 Net change in unrealized appreciation (depreciation) of investments ..................... (1,593,736) (1,379,633) 944,636 37,315,892 Net change in unrealized appreciation (depreciation) of foreign currency denominated assets and liabilities .......... (21,455) (13,521) (3) (52) ------------ ------------ ------------ ------------ Net gain (loss) on investments and foreign currency transactions .................... (75,672) 856,108 4,221,750 57,445,914 ------------ ------------ ------------ ------------ NET INCREASE IN NET ASSETS FROM OPERATIONS ............... $ 571,064 $ 1,048,928 $ 4,973,297 $ 59,014,279 ============ ============ ============ ============
- -------------------------------------------------------------------------------- See Notes to Financial Statements. B-45 Alliance Variable Products Series Fund ================================================================================
Premier Growth International Growth Quasar Portfolio Portfolio Portfolio Portfolio ---------------- ---------------- ------------- ------------- INVESTMENT INCOME Dividends (net of foreign taxes withheld of $1,129, $84,980, $12,962, and $7,836, respectively) ................... $ 1,416,208 $ 726,855 $ 4,358,125 $ 332,134 Interest .......................... 352,766 13,624 1,576,123 407,123 ------------- ------------- ------------- ------------- Total investment income ........... 1,768,974 740,479 5,934,248 739,257 ------------- ------------- ------------- ------------- EXPENSES Advisory fee ...................... 1,289,348 310,074 7,526,265 474,696 Distribution fee - Class B ........ 61 -0- -0- -0- Custodian ......................... 52,178 64,419 93,730 46,561 Audit and legal ................... 33,085 4,581 151,927 9,826 Administrative .................... 31,500 31,500 31,500 31,500 Printing .......................... 22,362 8,963 134,540 13,694 Directors' fees ................... 1,073 685 845 900 Amortization of organization expenses ........................ 992 -0- -0- 2,550 Transfer agency ................... 501 469 547 540 Miscellaneous ..................... 6,145 3,306 17,713 5,998 ------------- ------------- ------------- ------------- Total expenses .................... 1,437,245 423,997 7,957,067 586,265 Less: expenses waived and reimbursed ...................... -0- (129,426) -0- (135,304) ------------- ------------- ------------- ------------- Net expenses ...................... 1,437,245 294,571 7,957,067 450,961 ------------- ------------- ------------- ------------- Net investment income (loss) ...... 331,729 445,908 (2,022,819) 288,296 ------------- ------------- ------------- ------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS Net realized gain (loss) on investment transactions ......... 24,155,153 2,890,563 55,837,594 (2,688,294) Net realized gain (loss) on foreign currency transactions ........... (311) (198,281) 4 -0- Net change in unrealized appreciation (depreciation) of investments ..................... 25,189,137 419,854 123,062,712 9,530,350 Net change in unrealized appreciation (depreciation) of foreign currency denominated assets and liabilities .......... (619) (22,896) -0- -0- ------------- ------------- ------------- ------------- Net gain on investments and foreign currency transactions ... 49,343,360 3,089,240 178,900,310 6,842,056 ------------- ------------- ------------- ------------- NET INCREASE IN NET ASSETS FROM OPERATIONS ............... $ 49,675,089 $ 3,535,148 $ 176,877,491 $ 7,130,352 ============= ============= ============= =============
- -------------------------------------------------------------------------------- See Notes to Financial Statements. B-46 STATEMENTS OF OPERATIONS (continued) Alliance Variable Products Series Fund ================================================================================
Real Estate Utility Worldwide Investment Technology Income Privatization Portfolio Portfolio Portfolio Portfolio --------------- ------------- -------------- -------------- INVESTMENT INCOME Dividends (net of foreign taxes withheld of $0, $5,105, $2,725 and $65,120, respectively) ... $ 576,847 $ 77,877 $ 468,460 $ 569,203 Interest ....................... 15,945 429,652 60,138 11,595 ------------ ------------ ------------ ------------ Total investment income ........ 592,792 507,529 528,598 580,798 ------------ ------------ ------------ ------------ EXPENSES Advisory fee ................... 78,118 766,418 139,102 218,610 Administrative ................. 31,500 31,500 31,500 31,500 Custodian ...................... 31,421 35,474 33,677 92,944 Printing ....................... 3,555 10,943 15,540 21,603 Amortization of organization expenses ..................... 1,982 2,130 1,078 992 Audit and legal ................ 1,292 10,364 10,887 5,195 Directors' fees ................ 723 1,191 683 1,358 Transfer agency ................ 510 543 492 450 Miscellaneous .................. 2,619 2,684 2,928 4,520 ------------ ------------ ------------ ------------ Total expenses ................. 151,720 861,247 235,887 377,172 Less: expenses waived and reimbursed ................... (69,262) (133,150) (59,691) (169,492) ------------ ------------ ------------ ------------ Net expenses ................... 82,458 728,097 176,196 207,680 ------------ ------------ ------------ ------------ Net investment income (loss) ... 510,334 (220,568) 352,402 373,118 ------------ ------------ ------------ ------------ REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS Net realized gain (loss) on investment transactions ...... (1,158,732) 8,422,213 1,886,610 1,355,030 Net realized loss on foreign currency transactions ........ -0- -0- (28) (61,567) Net change in unrealized appreciation (depreciation) of investments .................. 1,604,545 14,761,086 2,347,523 4,681,373 Net change in unrealized appreciation (depreciation) of foreign currency denominated assets and liabilities ....... -0- -0- (678) (38,770) ------------ ------------ ------------ ------------ Net gain on investments and foreign currency transactions 445,813 23,183,299 4,233,427 5,936,066 ------------ ------------ ------------ ------------ NET INCREASE IN NET ASSETS FROM OPERATIONS ............ $ 956,147 $ 22,962,731 $ 4,585,829 $ 6,309,184 ============ ============ ============ ============
- -------------------------------------------------------------------------------- See Notes to Financial Statements. B-47 Alliance Variable Products Series Fund ================================================================================
Global Dollar North American Global Bond Government High-Yield Government Income Portfolio Portfolio Portfolio Portfolio ---------------- ---------------- ---------------- ---------------- INVESTMENT INCOME Interest ......................... $ 936,010 $ 543,435 $ 1,020,945 $ 1,698,862 ----------- ----------- ----------- ----------- EXPENSES Advisory fee ..................... 125,222 33,488 69,257 98,074 Custodian ........................ 35,372 37,314 35,939 30,952 Administrative ................... 31,500 31,500 31,500 31,500 Audit and legal .................. 4,958 1,713 1,669 6,466 Printing ......................... 4,365 3,165 1,010 677 Directors' fees .................. 1,047 600 824 889 Transfer agency .................. 512 485 493 460 Amortization of organization expenses ....................... -0- 1,105 -0- 1,429 Miscellaneous .................... 2,315 3,174 1,463 1,668 ----------- ----------- ----------- ----------- Total expenses ................... 205,291 112,544 142,155 172,115 Less: expenses waived and reimbursed ..................... (31,500) (70,125) (54,429) (31,500) ----------- ----------- ----------- ----------- Net expenses ..................... 173,791 42,419 87,726 140,615 ----------- ----------- ----------- ----------- Net investment income ............ 762,219 501,016 933,219 1,558,247 ----------- ----------- ----------- ----------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS Net realized gain (loss) on investment transactions ........ 964 (1,376,749) (1,570,327) 241,763 Net realized loss on foreign currency transactions .......... (36,620) -0- -0- (304,514) Net change in unrealized appreciation (depreciation) of investments .................... (3,905,229) 1,501,337 194,266 (211,945) Net change in unrealized appreciation (depreciation) of foreign currency denominated assets and liabilities ......... (80,631) -0- -0- 377 ----------- ----------- ----------- ----------- Net gain (loss) on investments and foreign currency transactions .. (4,021,516) 124,588 (1,376,061) (274,319) ----------- ----------- ----------- ----------- NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS .......................... $(3,259,297) $ 625,604 $ (442,842) $ 1,283,928 =========== =========== =========== ===========
- -------------------------------------------------------------------------------- See Notes to Financial Statements. B-48 STATEMENTS OF OPERATIONS (continued) Alliance Variable Products Series Fund ================================================================================
Short-Term U.S. Government/ Multi-Market High Grade Securities Money Market Portfolio Portfolio Portfolio ------------ --------------------- ------------ INVESTMENT INCOME Interest ........................................... $ 198,020 $ 1,790,816 $ 3,270,915 ----------- ----------- ----------- EXPENSES Advisory fee ....................................... 18,695 174,643 328,609 Distribution fee - Class B ......................... -0- 8 2 Administrative ..................................... 31,500 31,500 31,500 Custodian .......................................... 31,429 27,006 41,516 Directors' fees .................................... 1,025 1,219 849 Audit and legal .................................... 916 3,320 13,060 Printing ........................................... 782 3,424 6,433 Transfer agency .................................... 490 535 392 Miscellaneous ...................................... 1,175 165 3,440 ----------- ----------- ----------- Total expenses ..................................... 86,012 241,820 425,801 Less: expenses waived and reimbursed ............... (53,719) -0- -0- ----------- ----------- ----------- Net expenses ....................................... 32,293 241,820 425,801 ----------- ----------- ----------- Net investment income .............................. 165,727 1,548,996 2,845,114 ----------- ----------- ----------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS Net realized gain (loss) on investment transactions (22,393) (900,750) 63 Net realized gain on foreign currency transactions.. 107,021 3,257 -0- Net change in unrealized appreciation (depreciation) of investments ................................... (169,029) (2,352,872) -0- Net change in unrealized appreciation (depreciation) of foreign currency denominated assets and liabilities ...................................... 49,510 -0- -0- ----------- ----------- ----------- Net gain (loss) on investments and foreign currency transactions ..................................... (34,891) (3,250,365) 63 ----------- ----------- ----------- NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS ....................................... $ 130,836 $(1,701,369) $ 2,845,177 =========== =========== ===========
- -------------------------------------------------------------------------------- See Notes to Financial Statements. B-49 STATEMENTS OF CHANGES IN NET ASSETS Alliance Variable Products Series Fund ================================================================================
Conservative Investors Portfolio Six Months Ended Year Ended June 30, 1999 December 31, (Unaudited) 1998 ---------------- ------------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS Net investment income ................................................. $ 646,736 $ 1,293,443 Net realized gain on investments and foreign currency transactions .... 1,539,519 1,744,403 Net change in unrealized appreciation (depreciation) of investments and foreign currency denominated assets and liabilities ................. (1,615,191) 1,547,074 ------------ ------------ Net increase in net assets from operations ............................ 571,064 4,584,920 DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income Class A ............................................................. (1,308,186) (983,527) Net realized gain on investments Class A ............................................................. (1,740,988) (1,277,811) CAPITAL STOCK TRANSACTIONS Net increase (decrease) ............................................... (398,996) 4,820,709 ------------ ------------ Total increase (decrease) ............................................. (2,877,106) 7,144,291 NET ASSETS Beginning of year ..................................................... 37,340,672 30,196,381 ------------ ------------ End of period (including undistributed net investment income of $632,513 and $1,293,963, respectively) ....................................... $ 34,463,566 $ 37,340,672 ============ ============ Growth Investors Portfolio Six Months Ended Year Ended June 30, 1999 December 31, (Unaudited) 1998 ---------------- ------------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS Net investment income .................................................. $ 192,820 $ 315,400 Net realized gain on investments and foreign currency transactions ..... 2,249,262 1,521,478 Net change in unrealized appreciation (depreciation) of investments and foreign currency denominated assets and liabilities .................. (1,393,154) 2,044,183 ------------ ------------ Net increase in net assets from operations ............................. 1,048,928 3,881,061 DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income Class A .............................................................. (322,580) (214,940) Net realized gain on investments Class A .............................................................. (1,494,582) (1,371,580) CAPITAL STOCK TRANSACTIONS Net increase (decrease) ................................................ (1,320,087) 2,134,021 ------------ ------------ Total increase (decrease) .............................................. (2,088,321) 4,428,562 NET ASSETS Beginning of year ...................................................... 21,028,472 16,599,910 ------------ ------------ End of period (including undistributed net investment income of $180,418 and $310,178, respectively) .......................................... $ 18,940,151 $ 21,028,472 ============ ============
- -------------------------------------------------------------------------------- See Notes to Financial Statements. B-50 STATEMENTS OF CHANGES IN NET ASSETS (continued) Alliance Variable Products Series Fund ================================================================================
Total Return Portfolio Six Months Ended Year Ended June 30, 1999 December 31, (Unaudited) 1998 ---------------- --------------- INCREASE IN NET ASSETS FROM OPERATIONS Net investment income ................................................... $ 751,547 $ 1,227,924 Net realized gain on investments and foreign currency transactions ...... 3,277,117 4,687,411 Net change in unrealized appreciation of investments and foreign currency denominated assets and liabilities .................................... 944,633 2,033,090 ------------- ------------- Net increase in net assets from operations .............................. 4,973,297 7,948,425 DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income Class A ............................................................... (1,231,521) (828,887) Net realized gain on investments Class A ............................................................... (4,690,187) (3,824,313) CAPITAL STOCK TRANSACTIONS Net increase ............................................................ 10,535,192 13,248,556 ------------- ------------- Total increase .......................................................... 9,586,781 16,543,781 NET ASSETS Beginning of year ....................................................... 59,463,750 42,919,969 ------------- ------------- End of period (including undistributed net investment income of $741,439 and $1,221,413, respectively) ......................................... $ 69,050,531 $ 59,463,750 ============= ============= Growth and Income Portfolio Six Months Ended Year Ended June 30, 1999 December 31, (Unaudited) 1998 ---------------- --------------- INCREASE IN NET ASSETS FROM OPERATIONS Net investment income ................................................... $ 1,568,365 $ 3,319,311 Net realized gain on investments and foreign currency transactions ...... 20,130,074 42,675,250 Net change in unrealized appreciation of investments and foreign currency denominated assets and liabilities .................................... 37,315,840 13,019,417 ------------- ------------- Net increase in net assets from operations .............................. 59,014,279 59,013,978 DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income Class A ............................................................... (3,318,107) (2,226,956) Net realized gain on investments Class A ............................................................... (42,704,228) (28,160,219) CAPITAL STOCK TRANSACTIONS Net increase ............................................................ 88,670,528 102,785,943 ------------- ------------- Total increase .......................................................... 101,662,472 131,412,746 NET ASSETS Beginning of year ....................................................... 381,614,341 250,201,595 ------------- ------------- End of period (including undistributed net investment income of $1,532,202 and $3,281,944, respectively) .............................. $ 483,276,813 $ 381,614,341 ============= =============
- -------------------------------------------------------------------------------- See Notes to Financial Statements. B-51 Alliance Variable Products Series Fund ================================================================================
Growth Portfolio Six Months Ended Year Ended June 30, 1999 December 31, (Unaudited) 1998 ---------------- --------------- INCREASE IN NET ASSETS FROM OPERATIONS Net investment income ................................................... $ 331,729 $ 1,173,874 Net realized gain on investments and foreign currency transactions ...... 24,154,842 28,074,041 Net change in unrealized appreciation of investments and foreign currency denominated assets and liabilities .................................... 25,188,518 41,502,598 ------------- ------------- Net increase in net assets from operations .............................. 49,675,089 70,750,513 DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income Class A ............................................................... (1,078,121) (667,879) Net realized gain on investments Class A ............................................................... (28,188,611) (15,606,121) CAPITAL STOCK TRANSACTIONS Net increase ............................................................ 33,473,673 38,329,947 ------------- ------------- Total increase .......................................................... 53,882,030 92,806,460 NET ASSETS Beginning of year ....................................................... 328,681,445 235,874,985 ------------- ------------- End of period (including undistributed net income of $410,726 and $1,157,118, respectively) ............................................. $ 382,563,475 $ 328,681,445 ============= ============= International Portfolio Six Months Ended Year Ended June 30, 1999 December 31, (Unaudited) 1998 ---------------- --------------- INCREASE IN NET ASSETS FROM OPERATIONS Net investment income ................................................... $ 445,908 $ 697,067 Net realized gain on investments and foreign currency transactions ...... 2,692,282 2,211,966 Net change in unrealized appreciation of investments and foreign currency denominated assets and liabilities .................................... 396,958 5,095,509 ------------- ------------- Net increase in net assets from operations .............................. 3,535,148 8,004,542 DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income Class A ............................................................... (553,389) (1,367,666) Net realized gain on investments Class A ............................................................... (1,787,594) (2,040,979) CAPITAL STOCK TRANSACTIONS Net decrease ............................................................ (4,297,311) (254,502) ------------- ------------- Total increase (decrease) ............................................... (3,103,146) 4,341,395 NET ASSETS Beginning of year ....................................................... 65,051,793 60,710,398 ------------- ------------- End of period (including undistributed net investment income of $259,527 and $367,008, respectively) ........................................... $ 61,948,647 $ 65,051,793 ============= =============
- -------------------------------------------------------------------------------- See Notes to Financial Statements. B-52 STATEMENTS OF CHANGES IN NET ASSETS (continued) Alliance Variable Products Series Fund ================================================================================
Premier Growth Portfolio Six Months Ended Year Ended June 30, 1999 December 31, (Unaudited) 1998 ---------------- --------------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS Net investment loss .................................................... $ (2,022,819) $ (327,127) Net realized gain on investments and foreign currency transactions ..... 55,837,598 31,022,713 Net change in unrealized appreciation (depreciation) of investments and foreign currency denominated assets and liabilities .................. 123,062,712 291,597,182 --------------- --------------- Net increase in net assets from operations ............................. 176,877,491 322,292,768 DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income Class A .............................................................. -0- (748,382) Net realized gain on investments Class A .............................................................. (23,280,324) -0- CAPITAL STOCK TRANSACTIONS Net increase ........................................................... 321,972,312 453,383,779 --------------- --------------- Total increase ......................................................... 475,569,479 774,928,165 NET ASSETS Beginning of year ...................................................... 1,247,254,270 472,326,105 --------------- --------------- End of period .......................................................... $ 1,722,823,749 $ 1,247,254,270 =============== =============== Quasar Portfolio Six Months Ended Year Ended June 30, 1999 December 31, (Unaudited) 1998 ---------------- --------------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS Net investment income .................................................. $ 288,296 $ 414,211 Net realized loss on investments and foreign currency transactions ..... (2,688,294) (3,461,226) Net change in unrealized appreciation (depreciation) of investments and foreign currency denominated assets and liabilities .................. 9,530,350 (1,930,679) --------------- --------------- Net increase (decrease) in net assets from operations .................. 7,130,352 (4,977,694) DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income Class A .............................................................. (312,238) (58,060) Net realized gain on investments Class A .............................................................. -0- (6,038,262) CAPITAL STOCK TRANSACTIONS Net increase ........................................................... 50,975,675 42,667,086 --------------- --------------- Total increase ......................................................... 57,793,789 31,593,070 NET ASSETS Beginning of year ...................................................... 90,870,238 59,277,168 --------------- --------------- End of period (including undistributed net investment income of $237,378 and $261,320, respectively) .......................................... $ 148,664,027 $ 90,870,238 =============== ===============
- -------------------------------------------------------------------------------- See Notes to Financial Statements. B-53 Alliance Variable Products Series Fund ================================================================================
Real Estate Investment Portfolio Six Months Ended Year Ended June 30, 1999 December 31, (Unaudited) 1998 ---------------- --------------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS Net investment income .................................................. $ 510,334 $ 793,118 Net realized loss on investments and foreign currency transactions ..... (1,158,732) (314,101) Net change in unrealized appreciation (depreciation) of investments and foreign currency denominated assets and liabilities .................. 1,604,545 (4,050,201) ------------- ------------- Net increase (decrease) in net assets from operations .................. 956,147 (3,571,184) DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income Class A .............................................................. (845,701) (240,978) Net realized gain on investments Class A .............................................................. -0- (104,773) CAPITAL STOCK TRANSACTONS Net increase ........................................................... 2,351,291 7,302,437 ------------- ------------- Total increase ......................................................... 2,461,737 3,385,502 NET ASSETS Beginning of year ...................................................... 17,079,559 13,694,057 ------------- ------------- End of period (including undistributed net investment income of $498,818 and $834,185, respectively) .......................................... $ 19,541,296 $ 17,079,559 ============= ============= Technology Portfolio Six Months Ended Year Ended June 30, 1999 December 31, (Unaudited) 1998 ---------------- --------------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS Net investment loss .................................................... $ (220,568) $ (269,678) Net realized gain on investments and foreign currency transactions ..... 8,422,213 2,981,897 Net change in unrealized appreciation (depreciation) of investments and foreign currency denominated assets and liabilities .................. 14,761,086 45,284,402 ------------- ------------- Net increase in net assets from operations ............................. 22,962,731 47,996,621 DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income Class A .............................................................. -0- (121,060) Net realized gain on investments Class A .............................................................. (356,801) -0- CAPITAL STOCK TRANSACTIONS Net increase ........................................................... 35,667,299 13,486,268 ------------- ------------- Total increase ......................................................... 58,273,229 61,361,829 NET ASSETS Beginning of year ...................................................... 130,601,662 69,239,833 ------------- ------------- End of period (including undistributed net investment income of $283 at December 31, 1998) ................................................... $ 188,874,891 $ 130,601,662 ============= =============
- -------------------------------------------------------------------------------- See Notes to Financial Statements. B-54 STATEMENTS OF CHANGES IN NET ASSETS (continued) Alliance Variable Products Series Fund ================================================================================
Utility Income Portfolio Six Months Ended Year Ended June 30, 1999 December 31, (Unaudited) 1998 ---------------- -------------- INCREASE IN NET ASSETS FROM OPERATIONS Net investment income .................................................. $ 352,402 $ 573,673 Net realized gain on investments and foreign currency transactions ..... 1,886,582 1,038,950 Net change in unrealized appreciation (depreciation) of investments and foreign currency denominated assets and liabilities .................. 2,346,845 4,488,575 ------------ ------------ Net increase in net assets from operations ............................. 4,585,829 6,101,198 DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income Class A .............................................................. (573,650) (467,584) Net realized gain on investments Class A .............................................................. (1,041,778) (217,903) CAPITAL STOCK TRANSACTIONS Net increase ........................................................... 4,278,815 8,673,520 ------------ ------------ Total increase ......................................................... 7,249,216 14,089,231 NET ASSETS Beginning of year ...................................................... 34,436,237 20,347,006 ------------ ------------ End of period (including undistributed net investment income of $346,393 and $567,409, respectively) .......................................... $ 41,685,453 $ 34,436,237 ============ ============ Worldwide Privatization Portfolio Six Months Ended Year Ended June 30, 1999 December 31, (Unaudited) 1998 ---------------- -------------- INCREASE IN NET ASSETS FROM OPERATIONS Net investment income .................................................. $ 373,118 $ 797,477 Net realized gain on investments and foreign currency transactions ..... 1,293,463 2,235,067 Net change in unrealized appreciation (depreciation) of investments and foreign currency denominated assets and liabilities .................. 4,642,603 1,068,120 ------------ ------------ Net increase in net assets from operations ............................. 6,309,184 4,100,664 DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income Class A .............................................................. (823,765) (602,038) Net realized gain on investments Class A .............................................................. (2,431,306) (2,230,552) CAPITAL STOCK TRANSACTIONS Net increase (decrease) ................................................ (3,586,416) 3,181,810 ------------ ------------ Total increase (decrease) .............................................. (532,303) 4,449,884 NET ASSETS Beginning of year ...................................................... 46,267,849 41,817,965 ------------ ------------ End of period (including undistributed net investment income of $366,374 and $817,021, respectively) .......................................... $ 45,735,546 $ 46,267,849 ============ ============
- -------------------------------------------------------------------------------- See Notes to Financial Statements. B-55 Alliance Variable Products Series Fund ================================================================================
Global Bond Portfolio Six Months Ended Year Ended June 30, 1999 December 31, (Unaudited) 1998 ---------------- -------------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS Net investment income ................................................... $ 762,219 $ 1,108,817 Net realized gain (loss) on investments and foreign currency transactions (35,656) 35,057 Net change in unrealized appreciation (depreciation) of investments and foreign currency denominated assets and liabilities ................... (3,985,860) 2,427,349 ------------ ------------ Net increase (decrease) in net assets from operations ................... (3,259,297) 3,571,223 DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income Class A ............................................................... (1,344,306) (359,373) Net realized gain on investments Class A ............................................................... (153,011) (126,325) CAPITAL STOCK TRANSACTIONS Net increase ............................................................ 13,910,066 9,372,064 ------------ ------------ Total increase .......................................................... 9,153,452 12,457,589 NET ASSETS Beginning of year ....................................................... 34,651,934 22,194,345 ------------ ------------ End of period (including undistributed net investment income of $285,755 and $867,842, respectively) ........................................... $ 43,805,386 $ 34,651,934 ============ ============ Global Dollar Government Portfolio Six Months Ended Year Ended June 30, 1999 December 31, (Unaudited) 1998 ---------------- -------------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS Net investment income ................................................... $ 501,016 $ 1,310,397 Net realized loss on investments and foreign currency transactions ...... (1,376,749) (2,456,480) Net change in unrealized appreciation (depreciation) of investments and foreign currency denominated assets and liabilities ................... 1,501,337 (2,200,919) ------------ ------------ Net increase (decrease) in net assets from operations ................... 625,604 (3,347,002) DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income Class A ............................................................... (1,308,548) (1,020,590) Net realized gain on investments Class A ............................................................... -0- (745,193) CAPITAL STOCK TRANSACTIONS Net increase (decrease) ................................................. (1,181,229) 114,249 ------------ ------------ Total decrease .......................................................... (1,864,173) (4,998,536) NET ASSETS Beginning of year ....................................................... 10,379,908 15,378,444 ------------ ------------ End of period (including undistributed net investment income of $489,544 and $1,297,076, respectively) ......................................... $ 8,515,735 $ 10,379,908 ============ ============
- -------------------------------------------------------------------------------- See Notes to Financial Statements. B-56 STATEMENTS OF CHANGES IN NET ASSETS (continued) Alliance Variable Products Series Fund ================================================================================
High-Yield Portfolio Six Months Ended Year Ended June 30, 1999 December 31, (Unaudited) 1998 ---------------- ------------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS Net investment income .................................................. $ 933,219 $ 1,083,734 Net realized loss on investments and foreign currency transactions ..... (1,570,327) (860,804) Net change in unrealized appreciation (depreciation) of investments and foreign currency denominated assets and liabilities .................. 194,266 (1,556,891) ------------ ------------ Net decrease in net assets from operations ............................. (442,842) (1,333,961) DIVIDENDS TO SHAREHOLDERS FROM: Net investment income Class A .............................................................. (1,097,239) (11,475) CAPITAL STOCK TRANSACTIONS Net increase ........................................................... 5,109,608 17,114,316 ------------ ------------ Total increase ......................................................... 3,569,527 15,768,880 NET ASSETS Beginning of year ...................................................... 16,910,235 1,141,355 ------------ ------------ End of period (including undistributed net investment income of $916,177 and $1,080,197, respectively) ........................................ $ 20,479,762 $ 16,910,235 ============ ============ North American Government Income Portfolio Six Months Ended Year Ended June 30, 1999 December 31, (Unaudited) 1998 ---------------- ------------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS Net investment income .................................................. $ 1,558,247 $ 2,994,908 Net realized loss on investments and foreign currency transactions ..... (62,751) (895,371) Net change in unrealized appreciation (depreciation) of investments and foreign currency denominated assets assets and liabilities ........... (211,568) (929,103) ------------ ------------ Net increase in net assets from operations ............................. 1,283,928 1,170,434 DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income Class A .............................................................. (2,352,761) (2,126,978) Net realized gain on investments Class A .............................................................. (303,945) (285,327) CAPITAL STOCK TRANSACTIONS Net increase (decrease) ................................................ (1,048,753) 2,793,932 ------------ ------------ Total increase (decrease) .............................................. (2,421,531) 1,552,061 NET ASSETS Beginning of year ...................................................... 32,058,562 30,506,501 ------------ ------------ End of period (including undistributed net investment income of $959,490 and $1,754,004, respectively) ........................................ $ 29,637,031 $ 32,058,562 ============ ============
- -------------------------------------------------------------------------------- See Notes to Financial Statements. B-57 Alliance Variable Products Series Fund ================================================================================
Short-Term Multi-Market Portfolio Six Months Ended Year Ended June 30, 1999 December 31, (Unaudited) 1998 ---------------- -------------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS Net investment income .................................................... $ 165,727 $ 379,654 Net realized gain (loss) on investments and foreign currency transactions 84,628 (48,980) Net change in unrealized appreciation (depreciation) of investments and foreign currency denominated assets and liabilities .................... (119,519) 59,323 ------------ ------------ Net increase in net assets from operations ............................... 130,836 389,997 DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income Class A ................................................................ (333,118) (630,815) CAPITAL STOCK TRANSACTIONS Net increase ............................................................. 71,873 220,210 ------------ ------------ Total decrease ........................................................... (130,409) (20,608) NET ASSETS Beginning of year ........................................................ 6,468,824 6,489,432 ------------ ------------ End of period (including undistributed net investment income of $27,678 and $195,069, respectively) ............................................ $ 6,338,415 $ 6,468,824 ============ ============ U.S. Government/High Grade Securities Portfolio Six Months Ended Year Ended June 30, 1999 December 31, (Unaudited) 1998 ---------------- -------------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS Net investment income .................................................... $ 1,548,996 $ 2,340,340 Net realized gain (loss) on investments and foreign currency transactions (897,493) 1,404,021 Net change in unrealized appreciation (depreciation) of investments and foreign currency denominated assets and liabilities .................... (2,352,872) (296,956) ------------ ------------ Net increase (decrease) in net assets from operations .................... (1,701,369) 3,447,405 DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income Class A ................................................................ (2,355,508) (1,873,534) Net realized gain on investments Class A ................................................................ (1,423,816) (214,996) CAPITAL STOCK TRANSACTIONS Net increase ............................................................. 5,242,687 20,861,049 ------------ ------------ Total increase (decrease) ................................................ (238,006) 22,219,924 NET ASSETS Beginning of year ........................................................ 58,417,702 36,197,778 ------------ ------------ End of period (including undistributed net investment income of $1,535,439 and $2,341,951, respectively) .......................................... $ 58,179,696 $ 58,417,702 ============ ============
- -------------------------------------------------------------------------------- See Notes to Financial Statements. B-58 STATEMENTS OF CHANGES IN NET ASSETS (continued) Alliance Variable Products Series Fund ================================================================================
Money Market Portfolio Six Months Ended Year Ended June 30, 1999 December 31, (Unaudited) 1998 ------------ ------------ INCREASE IN NET ASSETS FROM OPERATIONS Net investment income .............................................. $ 2,845,114 $ 4,568,135 Net realized gain on investments ................................... 63 178 ------------ ------------ Net increase in net assets from operations ......................... 2,845,177 4,568,313 DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income Class A .......................................................... (2,845,056) (4,568,135) Class B .......................................................... (58) -0- CAPITAL STOCK TRANSACTIONS Net increase ....................................................... 4,996,987 51,989,705 ------------ ------------ Total increase ..................................................... 4,997,050 51,989,883 NET ASSETS Beginning of year .................................................. 119,573,704 67,583,821 ------------ ------------ End of period (including undistributed net investment income of $573 and $573, respectively) .......................................... $124,570,754 $119,573,704 ============ ============
- -------------------------------------------------------------------------------- See Notes to Financial Statements. B-59 NOTES TO FINANCIAL STATEMENTS June 30, 1999 (unaudited) Alliance Variable Products Series Fund ================================================================================ NOTE A: Significant Accounting Policies Alliance Variable Products Series Fund, Inc. (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 Port folio (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. The investment objectives of each Portfolio are as follows: Conservative Investors Portfolio--seeks to achieve a high total return without, in the view of Alliance, undue risk to principal. Growth Investors Portfolio--seeks to achieve the highest total return consistent with what Alliance considers to be reasonable risk. Total Return Portfolio--seeks to achieve a high return through a combination of current income and capital appreciation. Growth and Income Portfolio--seeks reasonable current income and reasonable opportunity for appreciation through investments primarily in dividend-paying common stocks of good quality. Growth Portfolio--seeks to provide long-term growth of capital. Current income is incidental to the Portfolio's objective. International Portfolio--seeks to obtain a total return on its assets from long-term growth of capital principally through a broad portfolio of marketable securities of established non-U.S. companies (i.e., companies incorporated outside the U.S.), companies participating in foreign economies with prospects for growth, and foreign government securities. Premier Growth Portfolio--seeks growth of capital by pursuing aggressive investment policies. Quasar Portfolio--seeks growth of capital by pursuing aggressive investment policies. Current income is incidental to the Portfolio's objective. Real Estate Investment Portfolio--seeks total return from long-term growth of capital and income principally through investing in equity securities of companies that are primarily engaged in or related to the real estate industry. Technology Portfolio--seeks growth of capital. Current income is incidental to the Portfolio's objective. Utility Income Portfolio--seeks current income and capital appreciation by investing primarily in equity and fixed-income securities of companies in the utilities industry. Worldwide Privatization Portfolio--seeks long-term capital appreciation. Global Bond Portfolio--seeks a high level of return from a combination of current income and capital ap preciation by investing in a globally diversified portfolio of high-quality debt securities denominated in the U.S. Dollar and a range of foreign currencies. Global Dollar Government Portfolio--seeks a high level of current income and, secondarily, capital appreciation. High-Yield Portfolio--seeks to earn the highest level of current income without assuming undue risk by investing principally in high-yielding fixed-income securities rated Baa or lower by Moody's or BBB or lower by S&P, Duff & Phelps or Fitch or, if unrated, of comparable quality. North American Government Income Portfolio--seeks the highest level of current income, consistent with what Alliance considers to be prudent investment risk, that is available from a portfolio of debt securities issued or guaranteed by the United States, Canada, or Mexico, their political subdivisions (including Canadian prov inces, but excluding states of the United States), agencies, instrumentalities or authorities. Short-Term Multi-Market Portfolio--seeks the highest level of current income, consistent with what the Alliance considers to be prudent investment risk, that is available from a portfolio of high-quality debt securities having remaining maturities of not more than three years. B-60 NOTES TO FINANCIAL STATEMENTS (continued) Alliance Variable Products Series Fund ================================================================================ U.S. Government/High Grade Securities Portfolio--seeks high current income consistent with preservation of capital. Money Market Portfolio--seeks safety of principal, excellent liquidity and maximum current income to the extent consistent with the first two objectives. 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 generally accepted accounting principles which require management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements and amounts of income and expenses during the reporting period. Actual results could differ from those estimates. The following is a summary of significant accounting policies followed by the Fund. 1. Security Valuation Portfolio securities traded on a national securities exchange or on a foreign securities exchange (other than foreign securities exchanges whose operations are similar to those of the United States over-the-counter market) 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, 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, 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 ex penses 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 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 year end exchange rates are reflected as a component of net unrealized appreciation (depreciation) of investments and foreign currency denominated assets and liabilities. 3. Organization Expenses Organization expenses of each Portfolio have been deferred and are being amortized on a straight-line basis as follows: Conservative Investors Portfolio $10,000 through October 1999; Growth Investors Portfolio $10,000 through October 1999; Growth Portfolio $10,000 through September 1999; Quasar Portfolio $26,098 through August 2001; Real Estate Investment Portfolio $20,000 through January 2002; Technology Portfolio $21,500 through January 2001; Worldwide Privatization Portfolio $10,000 through September 1999. For the following Portfolios the organization expense was amortized on a straight-line basis as follows: Utility Income Portfolio $15,299 through April 1999; Global Dollar Government Portfolio $16,723 through April 1999; North American Government Income Portfolio $21,570 through April 1999. B-61 Alliance Variable Products Series Fund ================================================================================ 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 any, to shareholders. Therefore, no provisions for federal income or excise taxes are required. 5. Investment Income and Investment Transactions Dividend income is recorded on the ex-dividend date. Interest income is accrued daily. Investment transactions are accounted for on the trade 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. 6. 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 generally accepted accounting principles. 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, each Portfolio pays Alliance Capital Management L.P. (the "Adviser"), an investment advisory fee, based on average net assets at the following annual rates: Conservative Investors Portfolio, .75 of 1%; Growth Investors Portfolio, .75 of 1%; Total Return Portfolio, .625 of 1%; Growth and Income Portfolio, .625 of 1%; Growth Portfolio, .75 of 1%; International Portfolio, 1%; Premier Growth Portfolio, 1%; Quasar Portfolio, 1%; Real Estate Investment Portfolio, .90 of 1%; Technology Portfolio, 1%; Utility Income Portfolio, .75 of 1%; Worldwide Privatization Portfolio, 1%; Global Bond Portfolio, .65 of 1%; Global Dollar Government Portfolio, .75 of 1%; High-Yield Portfolio, .75 of 1%; North American Government Income Portfolio, .65 of 1%; Short-Term Multi-Market Portfolio, .55 of 1%; U.S. Government/High Grade Securities Portfolio, .60 of 1%; and Money Market Portfolio, .50 of 1%. The fee is accrued daily and paid monthly. For the Global Bond Portfolio, the Adviser has retained, under a sub-advisory agreement, a sub-adviser, AIGAM International Limited, an affiliate of American International Group, Inc. Pursuant to the advisory agreement, the Total Return, Growth & Income, Growth, Premier Growth, U.S. Government/High Grade Securities and Money Market Portfolios each paid $31,500, respectively, to the Adviser representing the cost of certain legal and accounting services provided to the Funds by the Adviser for the six months ended June 30, 1999. B-62 NOTES TO FINANCIAL STATEMENTS (continued) Alliance Variable Products Series Fund ================================================================================ The Fund compensates Alliance Fund Services, Inc., a wholly-owned subsidiary of the Adviser, under a Transfer Agency Agreement for providing personnel and facilities to perform transfer agency services for the Fund. For the six months ended June 30, 1999, the Fund paid a total of $9,000 which was allocated evenly among the Portfolios. During the six months ended June 30, 1999, the Adviser agreed to waive its fee and to reimburse the additional operating expenses of each Portfolio, except for the Premier Growth Portfolio, so that expenses did not exceed .95% and 1.20% of average net assets respectively, for Class A and Class B shares. Expense waivers/reimbursements, if any, are accrued daily and paid monthly. For the six months ended June 30, 1999, such waivers/reimbursements amounted to $38,245, $51,150, $129,426, $135,304, $69,262, $133,150, $59,691, $169,492, $31,500, $70,125, $54,429 $31,500 and $53,719, for the Conservative Investors Portfolio, the Growth Investors Portfolio, the International Portfolio, the Quasar Portfolio, the Real Estate Investment Port folio, the Technology Portfolio, the Utility Income Portfolio, the Worldwide Privatization Portfolio, Global Bond Portfolio, the Global Dollar Government Portfolio, the High-Yield Portfolio, North American Government Income Portfolio and the Short-Term Multi-Market Portfolio, respectively. Brokerage commissions paid for the six months ended June 30, 1999, on investment transactions amounted to $6,271, $6,493, $25,189, $323,457, $248,912, $133,972, $584,385, $133,909, $21,628, $65,698, $5,484 and $57,707 for the Conservative Investors Portfolio, the Growth Investors Portfolio, the Total Return Portfolio, the Growth and Income Portfolio, the Growth Portfolio, the International Portfolio, the Premier Growth Portfolio, the Quasar Portfolio, the Real Estate Investment Portfolio, the Technology Portfolio, the Utility Income Portfolio and the Worldwide Privatization Portfolio, respectively, of which $515 was paid by the Quasar Portfolio and $942 was paid by the Worldwide Privatization Portfolio to Donaldson, Lufkin & Jenrette Securities Corp., an affiliate of the Adviser. - -------------------------------------------------------------------------------- NOTE C: Distribution Plan Each Portfolio's Distribution Plan permits the Portfolio to pay a distribution fee of up to 0.50% of the average daily net assets attributable to its Class B shares. The Fund, on behalf of each Portfolio, has entered into distribution agreements ("the Class B Distribution Agreements") pursuant to the Distribution Plans with the Distributor. The Class B Distribution Agreement provides that the Distributor receives payments from each Portfolio at a rate equal to 0.25% of the average daily net assets of such Portfolio attributable to Class B shares. The Distribution Plans provide that the Distributor will use the payments received under the Class B Distribution Agreement for services rendered (and expenses borne) in connection with activities primarily intended to result in the sale of the Fund's Class B shares. Since Distributor's compensation is not directly tied to its expenses, the amount of compensation received under the Class B Distribution Agreement during any year may be more or less than actual expenses. For this reason, the Distribution Plans are characterized by the staff of the Securities and Exchange Commission as being of the "Compensation" variety. - -------------------------------------------------------------------------------- NOTE D: Investment Transactions Purchases and sales of investment securities (excluding short-term investments) for the six months ended June 30, 1999, were as follows:
Purchases Sales --------------------------------------- ------------------------------------ Stocks and U.S. Government Stocks and U.S. Government Portfolio Debt Obligations and Agencies Debt Obligations and Agencies - --------- ---------------- ---------------- ---------------- --------------- Conservative Investors ... $ 2,829,133 $ 19,944,690 $ 8,414,993 $ 15,692,369 Growth Investors ......... 5,463,009 6,951,718 9,485,533 2,505,773 Total Return ............. 9,579,725 38,317,598 11,334,693 29,370,914 Growth and Income ........ 149,112,675 -0- 103,087,986 -0- Growth ................... 118,789,882 -0- 103,280,401 -0- International ............ 28,591,891 -0- 34,632,829 -0- Premier Growth ........... 492,484,860 -0- 205,553,260 -0- Quasar ................... 49,358,443 -0- 36,478,404 -0- Real Estate Investment ... 5,341,960 -0- 3,264,432 -0- Technology ............... 67,912,724 -0- 33,993,319 -0- Utility Income ........... 3,567,494 -0- 2,556,513 -0- Worldwide Privatization .. 7,817,250 -0- 13,595,095 -0- Global Bond .............. 21,597,410 6,061,488 9,966,477 3,535,938 Global Dollar Government . 4,937,997 -0- 7,485,985 -0- High-Yield ............... 28,917,241 -0- 23,155,669 -0- North American Government Income ................ 539,957 -0- 115,935 1,754,523 Short-Term Multi-Market .. 325,847 -0- 206,296 -0- U.S. Government/High Grade Securities ............ 23,947,170 43,967,562 16,609,945 47,511,746
B-63 Alliance Variable Products Series Fund ================================================================================ At June 30, 1999, the cost of investments for federal income tax purposes was substantially the same as the cost for financial reporting purposes. The gross un realized appreciation, depreciation and net unrealized appreciation (depreciation) were as follows (excluding foreign currency transactions):
Net Gross Unrealized Unrealized ----------------------------- Appreciation Portfolio Appreciation Depreciation (Depreciation) - --------- ------------ ------------ -------------- Conservative Investors .............. $ 1,368,697 $ (222,872) $ 1,145,825 Growth Investors .................... 2,003,782 (263,479) 1,740,303 Total Return ........................ 8,709,557 (2,222,755) 6,486,802 Growth and Income ................... 91,192,887 (12,491,348) 78,701,539 Growth .............................. 136,108,863 (15,560,911) 120,547,952 International ....................... 9,535,191 (2,490,993) 7,044,198 Premier Growth ...................... 534,724,847 (29,954,730) 504,770,117 Quasar .............................. 13,387,951 (5,560,926) 7,827,025 Real Estate Investment .............. 191,506 (1,604,701) (1,413,195) Technology .......................... 68,748,683 (3,311,946) 65,436,737 Utility Income ...................... 11,847,193 (673,690) 11,173,503 Worldwide Privatization ............. 9,691,890 (3,080,220) 6,611,670 Global Bond ......................... 193,474 (1,704,716) (1,511,242) Global Dollar Government ............ 285,533 (1,057,600) (772,067) High-Yield .......................... 210,458 (1,561,525) (1,351,067) North American Government Income .... 607,853 (836,146) (228,293) Short-Term Multi-Market ............. 7,776 (244,911) (237,135) U.S. Government/High Grade Securities 8,780 (1,996,963) (1,988,183)
At December 31, 1998, for federal income tax purposes, Quasar, Real Estate, Global Dollar Government, High Yield, Short-Term Multi-Market Trust and Money Market Portfolios had net capital loss carryforwards of $1,214,862 which expires in the year 2006, $191,303 which ex pires in the year 2006, $2,000,064 which expires in the year 2006, $63,971 which expires in the year 2006, $1,135,696 (of which $5,518 expires in the year 2000, $150,822 expires in the year 2002, $941,593 expires in the year 2003, $32,651 expires in the year 2005 and $5,112 expires in the year 2006), $463 (of which $165 expires in the year 2004 and $298 expires in the year 2005). 1. Forward Exchange Currency Contracts The Global Bond and Short-Term Multi-Market Portfolios enter into forward exchange currency contracts to hedge exposure to changes in foreign currency ex change 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 a value equal to the aggregate amount of the respective portfolios 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 B-64 NOTES TO FINANCIAL STATEMENTS (continued) Alliance Variable Products Series Fund ================================================================================ Portfolio has in that particular currency contract. At June 30, 1999, the outstanding forward ex change currency contracts were as follows: GLOBAL BOND PORTFOLIO:
U.S. $ Contract Value on U.S. $ Unrealized Amount Origination Current Appreciation (000) Date Value (Depreciation) ---------------- ---------------- ---------------- ---------------- Foreign Currency Buy Contracts Euro Dollar, settling 8/26/99..... 1,200 $1,267,560 $1,242,218 $(25,342) Japanese Yen, settling 8/26/99.... 90,000 755,623 750,086 (5,537) -------- $(30,879) ======== Foreign Currency Sale Contracts Euro Dollar, settling 8/26/99..... 3,200 $3,375,456 $3,312,581 $62,875 Japanese Yen, settling 8/26/99.... 270,000 2,207,559 2,250,257 (42,698) -------- $20,177 ======== SHORT-TERM MULTI-MARKET PORTFOLIO: U.S. $ Contract Value on U.S. $ Unrealized Amount Origination Current Appreciation (000) Date Value (Depreciation) ---------------- ---------------- ---------------- ---------------- Foreign Currency Buy Contracts Euro Dollar, settling 7/20/99..... 200 $ 209,196 $ 206,469 $(2,727) Swedish Krona, settling 7/20/99... 1,800 214,178 212,294 (1,884) -------- $(4,611) ======== Foreign Currency Sale Contracts Danish Kroner, settling 7/07/99... 2,000 $ 287,749 $ 277,429 $10,320 Euro Dollars, settling 7/20/99 - 9/13/99 1,331 1,423,592 1,377,042 46,550 New Zealand Dollar, settling 7/27/99 1,303 696,202 690,326 5,876 Norwegian Kroner, settling 7/07/99 672 84,231 85,305 (1,074) Pound Sterling, settling 7/23/99.. 78 123,965 123,375 590 Swedish Kronas, settling 7/20/99 - 7/26/99 5,238 619,741 617,923 1,818 -------- $64,080 ========
2. Option Transactions For hedging and investment purposes, the Portfolios purchase and write (sell) put and call 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 written options which expire unexercised are recorded by the Portfolio on the expiration date as realized gains from option written. 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. If a put option is exercised, the premium received B-65 Alliance Variable Products Series Fund ================================================================================ reduces the cost basis of the security or currency purchased by the Portfolio. 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. For the six months ended June 30, 1999, the Portfolio did not engage in any option transactions. - ------------------------------------------------------------------------------- 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 consists of 10,000,000,000 authorized shares. Transactions in capital stock were as follows:
Conservative Investors Portfolio ----------------------------------- ---------------------------------- SHARES AMOUNT ----------------------------------- ---------------------------------- Six Months Ended Year Ended Six Months Ended Year Ended June 30, 1999 December 31, June 30, 1999 December 31, (unaudited) 1998 (unaudited) 1998 ---------------- ----------- ---------------- ----------- Class A Shares sold .................... 86,383 675,652 $1,219,539 $9,097,687 Shares issued in reinvestment of dividends and distributions . 237,845 171,184 3,049,175 2,261,337 Shares redeemed ................ (331,236) (489,669) (4,667,710) (6,538,315) ------- ------- ---------- ---------- Net increase (decrease) ........ (7,008) 357,167 $ (398,996) $4,820,709 ======= ======= ========== ========== Growth Investors Portfolio ----------------------------------- ---------------------------------- SHARES AMOUNT ----------------------------------- ---------------------------------- Six Months Ended Year Ended Six Months Ended Year Ended June 30, 1999 December 31, June 30, 1999 December 31, (unaudited) 1998 (unaudited) 1998 ---------------- ----------- ---------------- ----------- Class A Shares sold .................... 31,188 263,760 $ 524,890 $4,023,709 Shares issued in reinvestment of dividends and distributions . 121,063 105,839 1,817,162 1,586,520 Shares redeemed ................ (216,843) (235,959) (3,662,139) (3,476,208) ------- ------- ----------- ---------- Net increase (decrease) ........ (64,592) 133,640 $(1,320,087) $2,134,021 ======= ======= =========== ========== Total Return Portfolio ----------------------------------- ---------------------------------- SHARES AMOUNT ----------------------------------- ---------------------------------- Six Months Ended Year Ended Six Months Ended Year Ended June 30, 1999 December 31, June 30, 1999 December 31, (unaudited) 1998 (unaudited) 1998 ---------------- ----------- ---------------- ----------- Class A Shares sold .................... 619,535 1,066,045 $11,371,238 $18,467,616 Shares issued in reinvestment of dividends and distributions . 346,907 274,525 5,921,708 4,653,200 Shares redeemed ................ (360,982) (583,936) (6,757,754) (9,872,260) -------- -------- ----------- ----------- Net increase ................... 605,460 756,634 $10,535,192 $13,248,556 ======== ======== =========== ===========
B-66 Notes To Financial Statements (continued) Alliance Variable Products Series Fund ================================================================================
Growth and Income Portfolio ----------------------------------- ---------------------------------- SHARES AMOUNT ----------------------------------- ---------------------------------- Six Months Ended Year Ended Six Months Ended Year Ended June 30, 1999 December 31, June 30, 1999 December 31, (unaudited) 1998 (unaudited) 1998 ---------------- ----------- ---------------- ----------- Class A Shares sold .................... 3,129,726 5,339,328 $70,615,500 $109,529,029 Shares issued in reinvestment of dividends and distributions . 2,179,088 1,482,301 46,022,335 30,387,175 Shares redeemed ................ (1,299,543) (1,904,291) (29,705,850) (37,130,261) --------- --------- ----------- ------------ Net increase ................... 4,009,271 4,917,338 $86,931,985 $102,785,943 ========= ========= =========== ============ June 1, 1999* to June 1, 1999* to June 30, 1999 June 30, 1999 (unaudited) (unaudited) ---------------- ---------------- Class B Shares sold .................... 79,589 $1,738,543 ------ ---------- Net increase ................... 79,589 $1,738,543 ====== ========== Growth Portfolio ----------------------------------- ---------------------------------- SHARES AMOUNT ----------------------------------- ---------------------------------- Six Months Ended Year Ended Six Months Ended Year Ended June 30, 1999 December 31, June 30, 1999 December 31, (unaudited) 1998 (unaudited) 1998 ---------------- ----------- ---------------- ----------- Class A Shares sold .................... 930,220 2,150,440 $26,489,113 $51,763,496 Shares issued in reinvestment of dividends and distributions . 1,101,081 657,801 29,266,731 16,274,000 Shares redeemed ................ (804,921) (1,267,396) (22,944,319) (29,707,549) --------- --------- ----------- ----------- Net increase ................... 1,226,380 1,540,845 $32,811,525 $38,329,947 ========= ========= =========== =========== June 1, 1999* to June 1, 1999* to June 30, 1999 June 30, 1999 (unaudited) (unaudited) ---------------- ---------------- Class B Shares sold....................... 24,022 $ 662,148 ------ ---------- Net increase...................... 24,022 $ 662,148 ====== ==========
- -------------------------------------------------------------------------------- * Commencement of distributions. B-67 Alliance Variable Products Series Fund ================================================================================
International Portfolio ----------------------------------- ---------------------------------- SHARES AMOUNT ----------------------------------- ---------------------------------- Six Months Ended Year Ended Six Months Ended Year Ended June 30, 1999 December 31, June 30, 1999 December 31, (unaudited) 1998 (unaudited) 1998 ---------------- ----------- ---------------- ----------- Class A Shares sold .................... 2,640,956 8,028,440 $43,283,152 $130,223,344 Shares issued in reinvestment of dividends and distributions . 149,679 209,505 2,340,983 3,408,645 Shares redeemed ................ (3,027,047) (8,256,225) (49,921,446) (133,886,491) --------- --------- ----------- ----------- Net decrease ................... (236,412) (18,280) $(4,297,311) $ (254,502) ========= ========= =========== =========== Premier Growth Portfolio ----------------------------------- ---------------------------------- SHARES AMOUNT ----------------------------------- ---------------------------------- Six Months Ended Year Ended Six Months Ended Year Ended June 30, 1999 December 31, June 30, 1999 December 31, (unaudited) 1998 (unaudited) 1998 ---------------- ----------- ---------------- ----------- Class A Shares sold .................... 12,652,954 21,307,889 $422,833,629 $546,039,957 Shares issued in reinvestment of dividends and distributions . 743,305 27,956 23,280,324 748,382 Shares redeemed ................ (3,760,529) (3,650,182) (124,141,641) (93,404,560) --------- --------- ----------- ----------- Net increase ................... 9,635,730 17,685,663 $321,972,312 $453,383,779 ========= ========= =========== =========== Quasar Portfolio ----------------------------------- ---------------------------------- SHARES AMOUNT ----------------------------------- ---------------------------------- Six Months Ended Year Ended Six Months Ended Year Ended June 30, 1999 December 31, June 30, 1999 December 31, (unaudited) 1998 (unaudited) 1998 ---------------- ----------- ---------------- ----------- Class A Shares sold .................... 6,469,873 4,852,440 $73,815,500 $56,389,957 Shares issued in reinvestment of dividends and distributions . 27,705 471,122 312,238 6,096,321 Shares redeemed ................ (2,088,781) (1,865,305) (23,152,063) (19,819,192) --------- --------- ----------- ----------- Net increase ................... 4,408,797 3,458,257 $50,975,675 $42,667,086 ========= ========= =========== =========== Real Estate Investment Portfolio ----------------------------------- ---------------------------------- SHARES AMOUNT ----------------------------------- ---------------------------------- Six Months Ended Year Ended Six Months Ended Year Ended June 30, 1999 December 31, June 30, 1999 December 31, (unaudited) 1998 (unaudited) 1998 ---------------- ----------- ---------------- ----------- Class A Shares sold .................... 483,666 1,017,147 $ 4,792,964 $11,445,744 Shares issued in reinvestment of dividends and distributions . 84,995 31,720 845,701 345,751 Shares redeemed ................ (343,132) (411,779) (3,287,374) (4,489,058) -------- -------- ----------- ----------- Net increase ................... 225,529 637,088 $ 2,351,291 $ 7,302,437 ======== ======== =========== ===========
B-68 NOTES TO FINANCIAL STATEMENTS (continued) Alliance Variable Products Series Fund ================================================================================
Technology Portfolio ----------------------------------- ---------------------------------- SHARES AMOUNT ----------------------------------- ---------------------------------- Six Months Ended Year Ended Six Months Ended Year Ended June 30, 1999 December 31, June 30, 1999 December 31, (unaudited) 1998 (unaudited) 1998 ---------------- ----------- ---------------- ----------- Class A Shares sold .................... 3,329,814 2,683,902 $68,336,653 $39,262,852 Shares issued in reinvestment of dividends ................... 17,795 8,130 356,801 121,060 Shares redeemed ................ (1,606,447) (1,789,557) (33,026,155) (25,897,644) --------- --------- ----------- ----------- Net increase ................... 1,741,162 902,475 $35,667,299 $13,486,268 ========= ========= =========== =========== Utility Income Portfolio ----------------------------------- ---------------------------------- SHARES AMOUNT ----------------------------------- ---------------------------------- Six Months Ended Year Ended Six Months Ended Year Ended June 30, 1999 December 31, June 30, 1999 December 31, (unaudited) 1998 (unaudited) 1998 ---------------- ----------- ---------------- ----------- Class A Shares sold .................... 348,178 827,755 $ 7,024,517 $13,812,249 Shares issued in reinvestment of dividends and distributions . 80,330 41,319 1,615,428 685,488 Shares redeemed ................ (217,165) (345,013) (4,361,130) (5,824,217) -------- -------- ----------- ----------- Net increase ................... 211,343 524,061 $ 4,278,815 $ 8,673,520 ======== ======== =========== =========== Worldwide Privatization Portfolio ----------------------------------- ---------------------------------- SHARES AMOUNT ----------------------------------- ---------------------------------- Six Months Ended Year Ended Six Months Ended Year Ended June 30, 1999 December 31, June 30, 1999 December 31, (unaudited) 1998 (unaudited) 1998 ---------------- ----------- ---------------- ----------- Class A Shares sold .................... 124,264 574,559 $ 1,944,574 $ 8,801,773 Shares issued in reinvestment of dividends and distributions . 218,607 188,588 3,255,071 2,832,590 Shares redeemed ................ (574,001) (584,343) (8,786,061) (8,452,553) -------- -------- ----------- ----------- Net increase (decrease) ........ (231,130) 178,804 $(3,586,416) $ 3,181,810 ======== ======== =========== =========== Global Bond Portfolio ----------------------------------- ---------------------------------- SHARES AMOUNT ----------------------------------- ---------------------------------- Six Months Ended Year Ended Six Months Ended Year Ended June 30, 1999 December 31, June 30, 1999 December 31, (unaudited) 1998 (unaudited) 1998 ---------------- ----------- ---------------- ----------- Class A Shares sold .................... 1,215,605 1,110,903 $14,389,547 $13,087,136 Shares issued in reinvestment of dividends and distributions . 132,977 43,327 1,497,316 485,698 Shares redeemed ................ (166,308) (363,470) (1,976,797) (4,200,770) --------- -------- ----------- ----------- Net increase ................... 1,182,274 790,760 $13,910,066 $ 9,372,064 ========= ======== =========== ===========
B-69 Alliance Variable Products Series Fund ================================================================================
Global Dollar Government Portfolio ----------------------------------- ---------------------------------- SHARES AMOUNT ----------------------------------- ---------------------------------- Six Months Ended Year Ended Six Months Ended Year Ended June 30, 1999 December 31, June 30, 1999 December 31, (unaudited) 1998 (unaudited) 1998 ---------------- ----------- ---------------- ----------- Class A Shares sold .................... 33,701 266,108 $ 345,168 $ 3,464,930 Shares issued in reinvestment of dividends and distributions . 148,026 136,883 1,308,548 1,765,784 Shares redeemed ................ (277,352) (433,004) (2,834,945) (5,116,465) -------- -------- ----------- ----------- Net increase (decrease) ........ (95,625) (30,013) $(1,181,229) $ 114,249 ======== ======== =========== =========== High-Yield Portfolio ----------------------------------- ---------------------------------- SHARES AMOUNT ----------------------------------- ---------------------------------- Six Months Ended Year Ended Six Months Ended Year Ended June 30, 1999 December 31, June 30, 1999 December 31, (unaudited) 1998 (unaudited) 1998 ---------------- ----------- ---------------- ----------- Class A Shares sold .................... 682,072 2,333,171 $ 6,660,708 $24,996,204 Shares issued in reinvestment of dividends ................... 119,655 1,032 1,097,239 11,475 Shares redeemed ................ (269,014) (743,394) (2,648,339) (7,893,363) -------- --------- ----------- ----------- Net increase ................... 532,713 1,590,809 $ 5,109,608 $17,114,316 ======== ========= =========== =========== North American Government Income Portfolio ----------------------------------- ---------------------------------- SHARES AMOUNT ----------------------------------- ---------------------------------- Six Months Ended Year Ended Six Months Ended Year Ended June 30, 1999 December 31, June 30, 1999 December 31, (unaudited) 1998 (unaudited) 1998 ---------------- ----------- ---------------- ----------- Class A Shares sold .................... 246,229 807,658 $ 3,098,315 $10,378,068 Shares issued in reinvestment of dividends and distributions . 226,103 195,804 2,656,706 2,412,304 Shares redeemed ................ (535,189) (800,671) (6,803,774) (9,996,440) -------- -------- ----------- ----------- Net increase (decrease) ........ (62,857) 202,791 $(1,048,753) $ 2,793,932 ======== ======== =========== =========== Short-Term Multi-Market Portfolio ----------------------------------- ---------------------------------- SHARES AMOUNT ----------------------------------- ---------------------------------- Six Months Ended Year Ended Six Months Ended Year Ended June 30, 1999 December 31, June 30, 1999 December 31, (unaudited) 1998 (unaudited) 1998 ---------------- ----------- ---------------- ----------- Class A Shares sold .................... 139,219 320,284 $ 1,407,598 $ 3,296,379 Shares issued in reinvestment of dividends ................... 34,201 64,303 333,118 630,815 Shares redeemed ................ (164,210) (357,998) (1,668,843) (3,706,984) -------- -------- ----------- ----------- Net increase ................... 9,210 26,589 $ 71,873 $ 220,210 ======== ======== =========== ===========
B-70 NOTES TO FINANCIAL STATEMENTS (continued) Alliance Variable Products Series Fund ================================================================================
U.S. Government/High Grade Securities Portfolio ----------------------------------- ------------------------------------- SHARES AMOUNT ----------------------------------- ------------------------------------- Six Months Ended Year Ended Six Months Ended Year Ended June 30, 1999 December 31, June 30, 1999 December 31, (unaudited) 1998 (unaudited) 1998 ---------------- ------------ ---------------- ------------- Class A Shares sold .................... 1,144,390 2,327,632 $ 13,777,116 $ 28,190,782 Shares issued in reinvestment of dividends and distributions . 337,139 178,050 3,779,325 2,088,529 Shares redeemed ................ (1,025,349) (777,937) (12,412,843) (9,418,262) ------------- ------------- ------------- ------------- Net increase ................... 456,180 1,727,745 $ 5,143,598 $ 20,861,049 ============= ============= ============= ============= June 2, 1999* to June 2, 1999* to June 30, 1999 June 30, 1999 (unaudited) (unaudited) ---------------- ---------------- Class B Shares sold....................... 8,952 $ 99,089 ----- ------------ Net increase...................... 8,952 $ 99,089 ===== ============ Money Market Portfolio ----------------------------------- ------------------------------------- SHARES AMOUNT ----------------------------------- ------------------------------------- Six Months Ended Year Ended Six Months Ended Year Ended June 30, 1999 December 31, June 30, 1999 December 31, (unaudited) 1998 (unaudited) 1998 ---------------- ------------ ---------------- ------------- Class A Shares sold .................... 202,204,975 426,000,949 $202,204,975 $426,000,949 Shares issued in reinvestment of dividends ................... 2,845,056 4,568,135 2,845,056 4,568,135 Shares redeemed ................ (200,167,538) (378,579,379) (200,167,538) (378,579,379) ------------- ------------- ------------- ------------- Net increase ................... 4,882,493 51,989,705 $ 4,882,493 $ 51,989,705 ============= ============= ============= ============= June 2, 1999* to June 2, 1999* to June 30, 1999 June 30, 1999 (unaudited) (unaudited) ---------------- ---------------- Class B Shares sold....................... 14,436 $ 114,436 Shares issued in reinvestment of dividends and distributions.... 58 58 ------- ------------ Net increase...................... 114,494 $ 114,494 ======= ============
- -------------------------------------------------------------------------------- * Commencement of distribution. B-71 Alliance Variable Products Series Fund ================================================================================ 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, 1999. B-72 FINANCIAL HIGHLIGHTS Alliance Variable Products Series Fund ================================================================================ Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
------------------------------------------------------------------------- CONSERVATIVE INVESTORS PORTFOLIO ------------------------------------------------------------------------- Six Months October 28, Ended Year Ended December 31, 1994(a) to June 30, 1999 December 31, (unaudited) 1998 1997 1996 1995 1994 ------------- ---- ---- ---- ---- ------------ Class A Net asset value, beginning of period ............... $14.03 $13.10 $12.07 $11.76 $10.07 $10.00 ------ ------ ------ ------ ------ ------ Income From Investment Operations Net investment income (b)(c) ....................... .25 .50 .48 .45 .51 .06 Net realized and unrealized gain (loss) on investments and foreign currency transactions .... (.05) 1.31 .86 (.01) 1.20 .01 ------ ------ ------ ------ ------ ------ Net increase in net asset value from operations ....................................... .20 1.81 1.34 .44 1.71 .07 ------ ------ ------ ------ ------ ------ Less: Dividends and Distributions Dividends from net investment income ............... (.54) (.38) (.31) (.09) (.02) -0- Distributions from net realized gains .............. (.71) (.50) -0- (.04) -0- -0- ------ ------ ------ ------ ------ ------ Total dividends and distributions .................. (1.25) (.88) (.31) (.13) (.02) -0- ------ ------ ------ ------ ------ ------ Net asset value, end of period ..................... $12.98 $14.03 $13.10 $12.07 $11.76 $10.07 ====== ====== ====== ====== ====== ====== Total Return Total investment return based on net asset value (d) 1.52% 14.20% 11.22% 3.79% 16.99% .70% Ratios/Supplemental Data Net assets, end of period (000's omitted) .......... $34,464 $37,341 $30,196 $21,729 $7,420 $701 Ratios to average net assets of: Expenses, net of waivers and reimbursements ...... .95%(e) .90% .95% .95% .95% .95%(e) Expenses, before waivers and reimbursements ...... 1.16%(e) 1.19% 1.33% 1.40% 4.25% 20.35%(e) Net investment income (b) ........................ 3.59%(e) 3.69% 3.85% 3.93% 4.65% 3.55%(e) Portfolio turnover rate ............................ 85% 123% 209% 211% 61% 2% ------------------------------------------------------------------------- GROWTH INVESTORS PORTFOLIO ------------------------------------------------------------------------- Six Months October 28, Ended Year Ended December 31, 1994(a) to June 30, 1999 December 31, (unaudited) 1998 1997 1996 1995 1994 ------------- ---- ---- ---- ---- ------------ Class A Net asset value, beginning of period ............... $16.33 $14.38 $12.74 $11.87 $9.86 $10.00 ------ ------ ------ ------ ------ ------ Income From Investment Operations Net investment income (b)(c) ....................... .16 .26 .23 .24 .35 .04 Net realized and unrealized gain (loss) on investments and foreign currency transactions .... .62 3.03 1.83 .72 1.67 (.18) ------ ------ ------ ------ ------ ------ Net increase (decrease) in net asset value from operations ....................................... .78 3.29 2.06 .96 2.02 (.14) ------ ------ ------ ------ ------ ------ Less: Dividends and Distributions Dividends from net investment income ............... (.29) (.18) (.20) (.07) (.01) -0- Distributions from net realized gains .............. (1.34) (1.16) (.22) (.02) -0- -0- ------ ------ ------ ------ ------ ------ Total dividends and distributions .................. (1.63) (1.34) (.42) (.09) (.01) -0- ------ ------ ------ ------ ------ ------ Net asset value, end of period ..................... $15.48 $16.33 $14.38 $12.74 $11.87 $9.86 ====== ====== ====== ====== ====== ====== Total Return Total investment return based on net asset value (d) 5.08% 23.68% 16.34% 8.18% 20.48% (1.40)% Ratios/Supplemental Data Net assets, end of period (000's omitted) .......... $18,940 $21,028 $16,600 $10,709 $4,978 $321 Ratios to average net assets of: Expenses, net of waivers and reimbursements ...... .95%(e) .94% .95% .95% .95% .95%(e) Expenses, before waivers and reimbursements ...... 1.46%(e) 1.68% 1.70% 1.85% 6.17% 41.62%(e) Net investment income (b) ........................ 1.91%(e) 1.71% 1.72% 2.01% 3.21% 2.29%(e) Portfolio turnover rate ............................ 78% 100% 164% 160% 50% 3%
- -------------------------------------------------------------------------------- See footnote summary on page B-84. B-73 FINANCIAL HIGHLIGHTS (continued) Alliance Variable Products Series Fund ================================================================================
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period --------------------------------------------------------------------------- TOTAL RETURN PORTFOLIO --------------------------------------------------------------------------- Six Months Ended Year Ended December 31, June 30, 1999 (unaudited) 1998 1997 1996 1995 1994 ----------- ------ ------ ------ ------ ------ Class A Net asset value, beginning of year ................. $18.06 $16.92 $14.63 $12.80 $10.41 $10.97 ------ ------ ------ ------ ------ ------ Income From Investment Operations Net investment income (c) .......................... .21 .41(b) .39(b) .27(b) .36(b) .15(b) Net realized and unrealized gain (loss) on investment transactions .......................... 1.15 2.36 2.62 1.66 2.10 (.56) ------ ------ ------ ------ ------ ------ Net increase (decrease) in net asset value from operations ....................................... 1.36 2.77 3.01 1.93 2.46 (.41) ------ ------ ------ ------ ------ ------ Less: Dividends and Distributions Dividends from net investment income ............... (.36) (.29) (.23) (.07) (.07) (.09) Distributions from net realized gains .............. (1.35) (1.34) (.49) (.03) -0- (.06) ------ ------ ------ ------ ------ ------ Total dividends and distributions .................. (1.71) (1.63) (.72) (.10) (.07) (.15) ------ ------ ------ ------ ------ ------ Net asset value, end of period ..................... $17.71 $18.06 $16.92 $14.63 $12.80 $10.41 ====== ====== ====== ====== ====== ====== Total Return Total investment return based on net asset value (d) 7.87% 16.99% 21.11% 15.17% 23.67% (3.77)% Ratios/Supplemental Data Net assets, end of period (000's omitted) .......... $69,051 $59,464 $42,920 $25,875 $8,242 $750 Ratios to average net assets of: Expenses, net of waivers and reimbursements ...... .84%(e) .88% .88% .95% .95% .95% Expenses, before waivers and reimbursements ...... .84%(e) .95% .88% 1.12% 4.49% 19.49% Net investment income ............................ 2.39%(e) 2.41%(b) 2.46%(b) 2.76%(b) 3.16%(b) 2.29%(b) Portfolio turnover rate ............................ 69% 57% 65% 57% 30% 83% ------------------------------------------------------------------------ GROWTH AND INCOME PORTFOLIO ------------------------------------------------------------------------ Six Months Ended Year Ended December 31, June 30, 1999 (unaudited) 1998 1997 1996 1995 1994 ----------- ------ ------ ------ ------ ------ Class A Net asset value, beginning of year ................. $21.84 $19.93 $16.40 $15.79 $11.85 $12.18 ------ ------ ------ ------ ------ ------ Income From Investment Operations Net investment income (c) .......................... .08 .22(b) .21(b) .24(b) .27(b) .10(b) Net realized and unrealized gain (loss) on investment transactions .......................... 2.96 3.81 4.39 3.18 3.94 (.16) ------ ------ ------ ------ ------ ------ Net increase (decrease) in net asset value from operations ....................................... 3.04 4.03 4.60 3.42 4.21 (.06) ------ ------ ------ ------ ------ ------ Less: Dividends and Distributions Dividends from net investment income ............... (.18) (.16) (.13) (.25) (.13) (.10) Distributions from net realized gains .............. (2.28) (1.96) (.94) (2.56) (.14) (.17) ------ ------ ------ ------ ------ ------ Total dividends and distributions .................. (2.46) (2.12) (1.07) (2.81) (.27) (.27) ------ ------ ------ ------ ------ ------ Net asset value, end of period ..................... $22.42 $21.84 $19.93 $16.40 $15.79 $11.85 ====== ====== ====== ====== ====== ====== Total Return Total investment return based on net asset value (d) 14.59% 20.89% 28.80% 24.09% 35.76% (.35)% Ratios/Supplemental Data Net assets, end of period (000's omitted) .......... $481,492 $381,614 $250,202 $126,729 $41,993 $41,702 Ratios to average net assets of: Expenses, net of waivers and reimbursements ...... .71%(e) .73% .72% .82% .79% .90% Expenses, before waivers and reimbursements ...... .71%(e) .73% .72% .82% .79% .91% Net investment income ............................ .76%(e) 1.07%(b) 1.16%(b) 1.58%(b) 1.95%(b) 1.71%(b) Portfolio turnover rate ............................ 25% 79% 86% 87% 150% 95%
- -------------------------------------------------------------------------------- See footnote summary on page B-84. B-74 Alliance Variable Products Series Fund ================================================================================ Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
--------------- GROWTH AND INCOME PORTFOLIO --------------- June 1, 1999(f) to June 30, 1999 (unaudited) --------------- Class B Net asset value, beginning of period.............................................................. $ 21.37 -------- Income From Investment Operations Net investment income (c)......................................................................... .01 Net realized and unrealized gain (loss) on investment transactions......................................................................... 1.04 -------- Net increase in net asset value from operations...................................................................................... 1.05 -------- Less: Dividends and Distributions Dividends from net investment income.............................................................. -0- Distributions from net realized gains............................................................. -0- -------- Total dividends and distributions................................................................. -0- -------- Net asset value, end of period.................................................................... $ 22.42 ======== Total Return Total investment return based on net asset value (d).............................................. 4.91% Ratios/Supplemental Data Net assets, end of period (000's omitted)......................................................... $ 1,784 Ratios to average net assets of: Expenses........................................................................................ .96%(e) Net investment income (b)....................................................................... .88%(e) Portfolio turnover rate........................................................................... 25%
-------------------------------------------------------------------------------- GROWTH PORTFOLIO -------------------------------------------------------------------------------- September 15, Six Months 1994(a) Ended Year Ended December 31, to June 30, 1999 December 31, (unaudited) 1998 1997 1996 1995 1994 -------------- ------ ------ ------ ------ ------------ Class A Net asset value, beginning of period ........... $27.25 $22.42 $17.92 $14.23 $10.53 $10.00 ------ ------ ------ ------ ------ ------ Income From Investment Operations Net investment income (c) ...................... .03 .10(b) .07(b) .06(b) .17(b) .03(b) Net realized and unrealized gain on investment transactions ...................... 3.88 6.19 5.18 3.95 3.54 .50 ------ ------ ------ ------ ------ ------ Net increase in net asset value from operations ................................... 3.91 6.29 5.25 4.01 3.71 .53 ------ ------ ------ ------ ------ ------ Less: Dividends and Distributions Dividends from net investment income ........... (.09) (.06) (.03) (.04) (.01) -0- Distributions from net realized gains .......... (2.33) (1.40) (.72) (.28) -0- -0- ------ ------ ------ ------ ------ ------ Total dividends and distributions .............. (2.42) (1.46) (.75) (.32) (.01) -0- ------ ------ ------ ------ ------ ------ Net asset value, end of period ................. $28.74 $27.25 $22.42 $17.92 $14.23 $10.53 ====== ====== ====== ====== ====== ====== Total Return Total investment return based on net asset value (d) .............................. 15.06% 28.73% 30.02% 28.49% 35.23% 5.30% Ratios/Supplemental Data Net assets, end of period (000's omitted) ...... $381,873 $328,681 $235,875 $138,688 $45,220 $5,492 Ratios to average net assets of: Expenses, net of waivers and reimbursements .. .84%(e) .87% .84% .93% .95% .95%(e) Expenses, before waivers and reimbursements .. .84%(e) .87% .84% .93% 1.27% 4.19%(e) Net investment income ........................ .19%(e) .43%(b) .37%(b) .35%(b) 1.31%(b) 1.17%(b)(e) Portfolio turnover rate ........................ 30% 62% 62% 98% 86% 25%
- -------------------------------------------------------------------------------- See footnote summary on page B-84. B-75 Alliance Variable Products Series Fund ================================================================================
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period -------------- GROWTH PORTFOLIO --------------- June 1, 1999(f) to June 30, 1999 (unaudited) --------------- Class B Net asset value, beginning of period.............................................................. $26.83 ------ Income From Investment Operations Net investment income (c)......................................................................... -0- Net realized and unrealized gain on investment transactions......................................................................... 1.91 ------ Net increase in net asset value from operations...................................................................................... 1.91 ------ Less: Dividends and Distributions Dividends from net investment income.............................................................. -0- Distributions from net realized gains............................................................. -0- ------ Total dividends and distributions................................................................. -0- ------ Net asset value, end of period.................................................................... $28.74 ====== Total Return Total investment return based on net asset value (d).............................................. 7.12% Ratios/Supplemental Data Net assets, end of period (000's omitted)......................................................... $690 Ratios to average net assets of: Expenses........................................................................................ 1.09%(e) Net investment income .......................................................................... .36%(e) Portfolio turnover rate........................................................................... 30%
---------------------------------------------------------------------------- INTERNATIONAL PORTFOLIO ---------------------------------------------------------------------------- Six Months Ended Year Ended December 31, June 30, 1999 (unaudited) 1998 1997 1996 1995 1994 ------------- ------ ------ ------ ------- ------ Class A Net asset value, beginning of year............. $16.17 $15.02 $14.89 $14.07 $12.88 $12.16 ------ ------ ------ ------ ------- ------ Income From Investment Operations Net investment income (b)(c)................... .12 .17 .13 .19 .18 .10 Net realized and unrealized gain on investments and foreign currency transactions ................................ .71 1.80 .39 .83 1.08 .72 ------ ------ ------ ------ ------- ------ Net increase in net asset value from operations................................... .83 1.97 .52 1.02 1.26 .82 ------ ------ ------ ------ ------- ------ Less: Dividends and Distributions Dividends from net investment income........... (.15) (.33) (.15) (.08) (.03) (.02) Distributions from net realized gains.......... (.49) (.49) (.24) (.12) (.04) (.08) ------ ------ ------ ------ ------- ------ Total dividends and distributions.............. (.64) (.82) (.39) (.20) (.07) (.10) ------ ------ ------ ------ ------- ------ Net asset value, end of period................. $16.36 $16.17 $15.02 $14.89 $14.07 $12.88 ====== ====== ====== ====== ======= ====== Total Return Total investment return based on net asset value (d) ............................. 5.33% 13.02% 3.33% 7.25% 9.86% 6.70% Ratios/Supplemental Data Net assets, end of period (000's omitted)...... $61,949 $65,052 $60,710 $44,324 $16,542 $7,276 Ratios to average net assets of: Expenses, net of waivers and reimbursements . .95%(e) .95% .95% .95% .95% .95% Expenses, before waivers and reimbursements . 1.37%(e) 1.37% 1.42% 1.91% 2.99% 7.26% Net investment income (b).................... 1.44%(e) 1.08% .87% 1.29% 1.41% 90% Portfolio turnover rate........................ 47% 117% 134% 60% 87% 95%
- -------------------------------------------------------------------------------- See footnote summary on page B-84. B-76 FINANCIAL HIGHLIGHTS (continued) Alliance Variable Products Series Fund ================================================================================ Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
------------------------------------------------------------------------------- PREMIER GROWTH PORTFOLIO ------------------------------------------------------------------------------- Six Months Ended Year Ended December 31, June 30, 1999 (unaudited) 1998 1997 1996 1995 1994 ------------- ------ ------ ------ ------ ------ Class A Net asset value, beginning of year............. $31.03 $20.99 $15.70 $17.80 $12.37 $12.79 ------ ------ ------ ------ ------ ------ Income From Investment Operations Net investment income (loss) (c)............... (.04) (.01)(b) .04(b) .08(b) .09(b) .03(b) Net realized and unrealized gain (loss) on investment transactions...................... 4.06 10.08 5.27 3.29 5.44 (.41) ------ ------ ------ ------ ------ ------ Net increase (decrease) in net asset value from operations........................ 4.02 10.07 5.31 3.37 5.53 (.38) ------ ------ ------ ------ ------ ------ Less: Dividends and Distributions Dividends from net investment income........... -0- (.03) (.02) (.10) (.03) (.01) Distributions from net realized gains.......... (.47) -0- -0- (5.37) (.07) (.03) ------ ------ ------ ------ ------ ------ Total dividends and distributions.............. (.47) (.03) (.02) (5.47) (.10) (.04) ------ ------ ------ ------ ------ ------ Net asset value, end of period................. $34.58 $31.03 $20.99 $15.70 $17.80 $12.37 ====== ====== ====== ====== ====== ====== Total Return Total investment return based on net asset value (d) ............................. 13.12 % 47.97% 33.86% 22.70% 44.85% (2.96)% Ratios/Supplemental Data Net assets, end of period (000's omitted)...... $1,722,824 $1,247,254 $472,326 $96,434 $29,278 $37,669 Ratios to average net assets of: .............. Expenses, net of waivers and reimbursements . 1.06%(e) 1.06% .95% .95% .95% .95% Expenses, before waivers and reimbursements . 1.06%(e) 1.09% 1.10% 1.23% 1.19% 1.40% Net investment income (loss) ................ (.27)%(e) (.04)%(b) .21%(b) .52%(b) .55%(b) .42%(b) Portfolio turnover rate........................ 14% 31% 27% 32% 97% 38%
--------------------------------------------------- QUASAR PORTFOLIO --------------------------------------------------- Six Months August 5, Ended 1996(a) to June 30, 1999 Year Ended December 31, December 31, (unaudited) 1998 1997 1996 ------------ ------ ------ ------ Class A Net asset value, beginning of period ..................................... $11.14 $12.61 $10.64 $10.00 ------ ------ ------ ------ Income From Investment Operations Net investment income (b)(c) ............................................. .03 .07 .02 .04 Net realized and unrealized gain (loss) on investment transactions ................................................ .70 (.49) 1.96 .60 ------ ------ ------ ------ Net increase (decrease) in net asset value from operations ............................................................. .73 (.42) 1.98 .64 ------ ------ ------ ------ Less: Dividends and Distributions Dividends from net investment income ..................................... (.04) (.01) (.01) -0- Distributions from net realized gains .................................... -0- (1.04) -0- -0- ------ ------ ------ ------ Total dividends and distributions ........................................ (.04) (1.05) (.01) -0- ------ ------ ------ ------ Net asset value, end of period ........................................... $11.83 $11.14 $12.61 $10.64 ====== ====== ====== ====== Total Return Total investment return based on net asset value (d) 6.54% (4.49)% 18.60% 6.40% Ratios/Supplemental Data Net assets, end of period (000's omitted) ................................ $148,664 $90,870 $59,277 $8,842 Ratios to average net assets of: Expenses, net of waivers and reimbursements ............................ .95%(e) .95% .95% .95%(e) Expenses, before waivers and reimbursements ............................ 1.24%(e) 1.30% 1.37% 4.44%(e) Net investment income (b) .............................................. .61%(e) .55% .17% .93%(e) Portfolio turnover rate .................................................. 46% 107% 210% 40%
- -------------------------------------------------------------------------------- See footnote summary on page B-84. B-77 Alliance Variable Products Series Fund ================================================================================ Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
---------------------------------------- REAL ESTATE INVESTMENT PORTFOLIO ---------------------------------------- Six Months January 9, Ended Year Ended 1997(a) to June 30, 1999 December 31, December 31, (unaudited) 1998 1997 ------------- ------ ------ Class A Net asset value, beginning of period...................................... $ 9.78 $12.34 $10.00 ------ ------ ------ Income From Investment Operations Net investment income (b)(c).............................................. .28 .54 .56 Net realized and unrealized gain (loss) on investment transactions................................................. .31 (2.87) 1.78 ------ ------ ------ Net increase (decrease) in net asset value from operations.............................................................. .59 (2.33) 2.34 ------ ------ ------ Less: Dividends and Distributions Dividends from net investment income...................................... (.46) (.16) -0- Distributions from net realized gains..................................... -0- (.07) -0- ------ ------ ------ Total dividends and distributions......................................... (.46) (.23) -0- ------ ------ ------ Net asset value, end of period............................................ $ 9.91 $ 9.78 $12.34 ====== ====== ====== Total Return Total investment return based on net asset value (d)...................... 6.01% (19.07)% 23.40% Ratios/Supplemental Data Net assets, end of period (000's omitted)................................. $19,541 $17,080 $13,694 Ratios to average net assets of: Expenses, net of waivers and reimbursements............................. .95%(e) .95% .95%(e) Expenses, before waivers and reimbursements............................. 1.75%(e) 1.77% 2.31%(e) Net investment income (b)............................................... 5.88%(e) 4.98% 5.47%(e) Portfolio turnover rate................................................... 19% 27% 26%
------------------------------------------------------- TECHNOLOGY PORTFOLIO ------------------------------------------------------- January 11, Six Months 1996(a) Ended to June 30, 1999 Year Ended December 31, December 31, (unaudited) 1998 1997 1996 ----------- ------ ------ ------ Class A Net asset value, beginning of period........................... $19.17 $11.72 $11.04 $10.00 ------ ------ ------ ------ Income From Investment Operations Net investment income (loss) (b)(c)............................ (.03) (.04) .02 .11 Net realized and unrealized gain on investment transactions...................................... 2.98 7.51 .69 .93 ------ ------ ------ ------ Net increase in net asset value from operations................................................... 2.95 7.47 .71 1.04 ------ ------ ------ ------ Less: Dividends and Distributions Dividends from net investment income........................... -0- (.02) (.03) -0- Distribution from net realized gains........................... (.04) -0- -0- -0- ------ ------ ------ ------ Total dividends and distributions.............................. (.04) (.02) (.03) -0- ------ ------ ------ ------ Net asset value, end of period................................. $22.08 $19.17 $11.72 $11.04 ====== ====== ====== ====== Total Return Total investment return based on net asset value (d)........... 15.43% 63.79% 6.47% 10.40% Ratios/Supplemental Data Net assets, end of period (000's omitted)...................... $188,875 $130,602 $69,240 $28,083 Ratios to average net assets of: Expenses, net of waivers and reimbursements.................. .95%(e) .95% .95% .95%(e) Expenses, before waivers and reimbursements.................. 1.12%(e) 1.20% 1.19% 1.62%(e) Net investment income (loss) (b)............................. (.29)%(e) (.30)% .16% 1.17%(e) Portfolio turnover rate........................................ 25% 63% 46% 22%
- -------------------------------------------------------------------------------- See footnote summary on page B-84. B-78 FINANCIAL HIGHLIGHTS (continued) Alliance Variable Products Series Fund ================================================================================ Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
-------------------------------------- UTILITY INCOME PORTFOLIO -------------------------------------- Six Months May 10, 1994(a) Ended Year Ended December 31, to June 30, 1999 December 31, (unaudited) 1998 1997 1996 1995 1994 ------------- ------ ------ ------ ------ -------------- Class A Net asset value, beginning of period ............... $18.90 $15.67 $12.69 $12.01 $9.96 $10.00 ------ ------ ------ ------ ------ ------ Income From Investment Operations Net investment income (b)(c) ....................... .19 .37 .38 .31 .30 .28 Net realized and unrealized gain (loss) on investments and foreign currency transactions .... 2.25 3.31 2.84 .62 1.83 (.32) ------ ------ ------ ------ ------ ------ Net increase (decrease) in net asset value from operations ....................................... 2.44 3.68 3.22 .93 2.13 (.04) ------ ------ ------ ------ ------ ------ Less: Dividends and Distributions Dividends from net investment income ............... (.30) (.31) (.24) (.09) (.08) -0- Distributions from net realized gains .............. (.54) (.14) -0- (.16) -0- -0- ------ ------ ------ ------ ------ ------ Total dividends and distributions .................. (.84) (.45) (.24) (.25) (.08) -0- ------ ------ ------ ------ ------ ------ Net asset value, end of period ..................... $20.50 $18.90 $15.67 $12.69 $12.01 $ 9.96 ====== ====== ====== ====== ====== ====== Total Return Total investment return based on net asset value (d) 13.01% 23.91% 25.71% 7.88% 21.45% (.40)% Ratios/Supplemental Data Net assets, end of period (000's omitted) .......... $41,685 $34,436 $20,347 $14,857 $6,251 $1,254 Ratios to average net assets of: Expenses, net of waivers and reimbursements ...... .95%(e) .95% .95% .95% .95% .95%(e) Expenses, before waivers and reimbursements ...... 1.27%(e) 1.35% 1.08% 1.51% 3.79% 15.98%(e) Net investment income (b) ........................ 1.90%(e) 2.20% 2.83% 2.61% 2.73% 4.62%(e) Portfolio turnover rate ............................ 8% 20% 30% 75% 138% 31% ------------------------------------------------------------------------------ WORLDWIDE PRIVATIZATION PORTFOLIO ------------------------------------------------------------------------------ September 23, Six Months 1994(a) Ended Year Ended December 31, to June 30, 1999 December 31, (unaudited) 1998 1997 1996 1995 1994 ------------- ------ ------ ------ ------ -------------- Class A Net asset value, beginning of period ............... $ 14.81 $14.20 $13.13 $11.17 $10.10 $10.00 ------- ------ ------ ------ ------ ------ Income From Investment Operations Net investment income (b)(c) ....................... .13 .26 .25 .28 .32 .10 Net realized and unrealized gain on investments and foreign currency transactions .... 2.09 1.29 1.17 1.78 .78 -0- ------- ------ ------ ------ ------ ------ Net increase in net asset value from operations ....................................... 2.22 1.55 1.42 2.06 1.10 .10 ------- ------ ------ ------ ------ ------ Less: Dividends and Distributions Dividends from net investment income ............... (.31) (.20) (.16) (.10) (.03) -0- Distributions from net realized gains .............. (.91) (.74) (.19) -0- -0- -0- ------- ------ ------ ------ ------ ------ Total dividends and distributions .................. (1.22) (.94) (.35) (.10) (.03) -0- ------- ------ ------ ------ ------ ------ Net asset value, end of period ..................... $ 15.81 $14.81 $14.20 $13.13 $11.17 $10.10 ======= ====== ====== ====== ====== ====== Total Return Total investment return based on net asset value (d) 15.51% 10.83% 10.75% 18.51% 10.87% 1.00% Ratios/Supplemental Data Net assets, end of period (000's omitted) .......... $45,736 $46,268 $41,818 $18,807 $5,947 $1,127 Ratios to average net assets of: Expenses, net of waivers and reimbursements ...... .95%(e) .95% .95% .95% .95% .95%(e) Expenses, before waivers and reimbursements ...... 1.59%(e) 1.70% 1.55% 1.85% 4.17% 18.47%(e) Net investment income (b) ........................ 1.71%(e) 1.74% 1.76% 2.26% 2.96% 4.27%(e) Portfolio turnover rate ............................ 18% 92% 58% 47% 23% 0%
- -------------------------------------------------------------------------------- See footnote summary on page B-84. B-79 FINANCIAL HIGHLIGHTS (continued) Alliance Variable Products Series Fund ================================================================================ Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
------------------------------------------------------------------------------- GLOBAL BOND PORTFOLIO ------------------------------------------------------------------------------- Six Months Ended Year Ended December 31, June 30, 1999 (unaudited) 1998 1997 1996 1995 1994 ------------- ------ ------ ------ ------- ------ Class A Net asset value, beginning of year ................. $12.42 $11.10 $11.74 $12.15 $ 9.82 $11.33 ------ ------ ------ ------ ------- ------ Income From Investment Operations Net investment income (b)(c) ....................... .23 .49 .54 .67 .69 .57 Net realized and unrealized gain (loss) on investments and foreign currency transactions .... (1.21) 1.06 (.48) .01 1.73 (1.16) ------ ------ ------ ------ ------- ------ Net increase (decrease) in net asset value from operations ....................................... (.98) 1.55 .06 .68 2.42 (.59) ------ ------ ------ ------ ------- ------ Less: Dividends and Distributions Dividends from net investment income ............... (.37) (.17) (.57) (.84) (.09) (.62) Distributions from net realized gains .............. (.04) (.06) (.13) (.25) -0- (.30) ------ ------ ------ ------ ------- ------ Total dividends and distributions .................. (.41) (.23) (.70) (1.09) (.09) (.92) ------ ------ ------ ------ ------- ------ Net asset value, end of period ..................... $11.03 $12.42 $11.10 $11.74 $ 12.15 $ 9.82 ====== ====== ====== ====== ======= ====== Total Return Total investment return based on net asset value (d) (7.95)% 14.12% .67% 6.21% 24.73% (5.16)% Ratios/Supplemental Data Net assets, end of period (000's omitted) .......... $43,805 $34,652 $22,194 $18,117 $11,553 $7,298 Ratios to average net assets of: Expenses, net of waivers and reimbursements ...... .90%(e) .93% .94% .94% .95% .95% Expenses, before waivers and reimbursements ...... 1.07%(e) 1.17% 1.03% 1.15% 1.77% 2.05% Net investment income (b) ........................ 3.96%(e) 4.23% 4.81% 5.76% 6.22% 6.01% Portfolio turnover rate ............................ 37% 42% 257% 191% 262% 102% ------------------------------------------------------------------------------- GLOBAL DOLLAR GOVERNMENT PORTFOLIO ------------------------------------------------------------------------------- Six Months May 2, 1994(a) Ended Year Ended December 31, to June 30, 1999 December 31, (unaudited) 1998 1997 1996 1995 1994 ------------- ------ ------ ------ ------ -------------- Class A Net asset value, beginning of period ............... $10.18 $14.65 $14.32 $11.95 $ 9.84 $10.00 ------ ------ ------ ------ ------ ------ Income From Investment Operations Net investment income (b)(c) ....................... .55 1.20 1.17 1.10 .92 .36 Net realized and unrealized gain (loss) on investments and foreign currency transactions .... .16 (4.03) .70 1.78 1.32 (.52) ------ ------ ------ ------ ------ ------ Net increase (decrease) in net asset value from operations ....................................... .71 (2.83) 1.87 2.88 2.24 (.16) ------ ------ ------ ------ ------ ------ Less: Dividends and Distributions Dividends from net investment income ............... (1.68) (.95) (.61) (.48) (.13) -0- Distributions from net realized gains .............. -0- (.69) (.93) (.03) -0- -0- ------ ------ ------ ------ ------ ------ Total dividends and distributions .................. (1.68) (1.64) (1.54) (.51) (.13) -0- ------ ------ ------ ------ ------ ------ Net asset value, end of period ..................... $ 9.21 $10.18 $14.65 $14.32 $11.95 $ 9.84 ====== ====== ====== ====== ====== ====== Total Return Total investment return based on net asset value (d) 7.61% (21.71)% 13.23% 24.90% 22.98% (1.60)% Ratios/Supplemental Data Net assets, end of period (000's omitted) .......... $8,516 $10,380 $15,378 $8,847 $3,778 $1,146 Ratios to average net assets of: Expenses, net of waivers and reimbursements ...... .95%(e) .95% .95% .95% .95% .95%(e) Expenses, before waivers and reimbursements ...... 2.52%(e) 1.75% 1.29% 1.97% 4.82% 15.00%(e) Net investment income (b) ........................ 11.22%(e) 9.49% 7.87% 8.53% 8.65% 6.02%(e) Portfolio turnover rate ............................ 51% 166% 214% 155% 13% 9%
- -------------------------------------------------------------------------------- See footnote summary on page B-84. B-80 FINANCIAL HIGHLIGHTS (continued) Alliance Variable Products Series Fund ================================================================================ Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period ------------------------------------ HIGH-YIELD PORTFOLIO ------------------------------------ SIX MONTHS OCTOBER 27, ENDED YEAR ENDED 1997(A) TO JUNE 30, 1999 DECEMBER 31, DECEMBER 31, (UNAUDITED) 1998 1997 ----------- ----------- ----------- CLASS A Net asset value, beginning of period $9.94 $10.33 $10.00 ----------- ----------- ----------- INCOME FROM INVESTMENT OPERATIONS Net investment income (b)(c) .48 1.03 .13 Net realized and unrealized gain (loss) on investment transactions (.70) (1.41) .20 ----------- ----------- ----------- Net increase (decrease) in net asset value from operations (.22) (.38) .33 ----------- ----------- ----------- LESS: DIVIDENDS Dividends from net investment income (.55) (.01) -0- ----------- ----------- ----------- Net asset value, end of period $9.17 $9.94 $10.33 ========== =========== ============ TOTAL RETURN Total investment return based on net asset value (d) (2.26)% (3.69)% 3.30% RATIOS/SUPPLEMENTAL DATA Net assets, end of period (000's omitted) $20,480 $16,910 $1,141 Ratios to average net assets of: Expenses, net of waivers and reimbursements .95%(e) .95% .95%(e) Expenses, before waivers and reimbursements 1.54%(e) 1.80% 8.26%(e) Net investment income (b) 10.11%(e) 9.77% 7.28%(e) Portfolio turnover rate 108% 295% 8%
----------------------------------------------------------------------------- NORTH AMERICAN GOVERNMENT INCOME PORTFOLIO ----------------------------------------------------------------------------- SIX MONTHS MAY 3, 1994(A) ENDED YEAR ENDED DECEMBER 31, TO JUNE 30, 1999 --------------------------------------------- DECEMBER 31, (UNAUDITED) 1998 1997 1996 1995 1994 --------------- ------- ------- ------ ------ ------------- CLASS A Net asset value, beginning of period $12.55 $12.97 $12.38 $10.48 $8.79 $10.00 ------ ------ ------ ------ ------- ------ INCOME FROM INVESTMENT OPERATIONS Net investment income (b)(c) .64 1.16 1.07 1.26 1.13 .50 Net realized and unrealized gain (loss) on investments and foreign currency transactions (.11) (.65) .10 .69 .83 (1.71) ------ ------ ------ ------ ------- ------ Net increase (decrease) in net asset value from operations .53 .51 1.17 1.95 1.96 (1.21) ------ ------ ------ ------ ------- ------ LESS: DIVIDENDS AND DISTRIBUTIONS Dividends from net investment income (1.05) (.82) (.58) (.05) (.27) -0- Distributions from net realized gains (.14) (.11) -0- -0- -0- -0- ------ ------ ------ ------ ------- ------ Total dividends and distributions (1.19) (.93) (.58) (.05) (.27) -0- ------ ------ ------ ------ ------- ------ Net asset value, end of period $11.89 $12.55 $12.97 $12.38 $10.48 $8.79 ====== ====== ====== ====== ======= ====== TOTAL RETURN Total investment return based on net asset value (d) 4.26% 4.07% 9.62% 18.70% 22.71% (12.10)% RATIOS/SUPPLEMENTAL DATA Net assets, end of period (000's omitted) $29,637 $32,059 $30,507 $16,696 $7,278 $3,848 Ratios to average net assets of: Expenses, net of waivers and reimbursements .93%(e) .86% .95% .95% .95% .95%(e) Expenses, before waivers and reimbursements 1.14%(e) 1.17% 1.04% 1.41% 2.57% 4.43%(e) Net investment income (b) 10.33%(e) 9.16% 8.34% 11.04% 12.24% 8.49%(e) Portfolio turnover rate 2% 8% 20% 4% 35% 15%
See footnote summary on page B-84. B-81 Alliance Variable Products Series Fund ================================================================================ Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
-------------------------------------------------------------------------- SHORT-TERM MULTI-MARKET PORTFOLIO -------------------------------------------------------------------------- SIX MONTHS ENDED YEAR ENDED DECEMBER 31, JUNE 30, 1999 ------------------------------------------------------- (UNAUDITED) 1998 1997 1996 1995 1994 ------------- ------- ------- ------- ------ ------ CLASS A Net asset value, beginning of year $10.10 $10.57 $10.73 $10.58 $9.91 $11.07 ------ ------ ------ ------ ------- ------ INCOME FROM INVESTMENT OPERATIONS Net investment income (b)(c) .24 .61 .59 .64 .82 .47 Net realized and unrealized gain (loss) on investments and foreign currency transactions (.04) .03 (.11) .33 (.15) (1.16) ------ ------ ------ ------ ------- ------ Net increase (decrease) in net asset value from operations .20 .64 .48 .97 .67 (.69) ------ ------ ------ ------ ------- ------ LESS: DIVIDENDS AND DISTRIBUTIONS Dividends from net investment income (.54) (1.11) (.64) (.82) -0- (.46) Return of capital -0- -0- -0- -0- -0- (.01) ------ ------ ------ ------ ------- ------ Total dividends and distributions (.54) (1.11) (.64) (.82) -0- (.47) ------ ------ ------ ------ ------- ------ Net asset value, end of period $9.76 $10.10 $10.57 $10.73 $10.58 $9.91 ====== ====== ====== ====== ======= ====== TOTAL RETURN Total investment return based on net asset value (d) 1.94% 6.32% 4.59% 9.57% 6.76% (6.51)% RATIOS/SUPPLEMENTAL DATA Net assets, end of period (000's omitted) $6,338 $6,469 $6,489 $7,112 $3,152 $20,921 Ratios to average net assets of: Expenses, net of waivers and reimbursements .95%(e) .94% .94% .95% .95% .94% Expenses, before waivers and reimbursements 2.53%(e) 2.69% 1.42% 2.09% 1.30% .99% Net investment income (b) 4.88%(e) 5.94% 5.50% 6.03% 8.22% 6.52% Portfolio turnover rate 5% 18% 222% 159% 379% 134%
-------------------------------------------------------------------------- U.S. GOVERNMENT/HIGH GRADE SECURITIES PORTFOLIO -------------------------------------------------------------------------- SIX MONTHS ENDED YEAR ENDED DECEMBER 31, JUNE 30, 1999 -------------------------------------------------------- (UNAUDITED) 1998 1997 1996 1995 1994 ------------- ------- ------- ------- ------- ------- CLASS A Net asset value, beginning of year $12.27 $11.93 $11.52 $11.66 $9.94 $10.72 ------ ------ ------ ------ ------- ------ INCOME FROM INVESTMENT OPERATIONS Net investment income (c) .31 .63(b) .68(b) .66(b) .65(b) .28(b) Net realized and unrealized gain (loss) on investment transactions (.66) .32 .29 (.39) 1.25 (.71) ------ ------ ------ ------ ------- ------ Net increase (decrease) in net asset value from operations (.35) .95 .97 .27 1.90 (.43) ------ ------ ------ ------ ------- ------ LESS: DIVIDENDS AND DISTRIBUTIONS Dividends from net investment income (.49) (.55) (.54) (.28) (.18) (.21) Distributions from net realized gains (.30) (.06) (.02) (.13) -0- (.14) ------ ------ ------ ------ ------- ------ Total dividends and distributions (.79) (.61) (.56) (.41) (.18) (.35) ------ ------ ------ ------ ------- ------ Net asset value, end of period $11.13 $12.27 $11.93 $11.52 $11.66 $9.94 ====== ====== ====== ====== ======= ====== TOTAL RETURN Total investment return based on net asset value (d) (2.89)% 8.22% 8.68% 2.55% 19.26% (4.03)% RATIOS/SUPPLEMENTAL DATA Net assets, end of period (000's omitted) $58,080 $58,418 $36,198 $29,150 $16,947 $5,101 Ratios to average net assets of: Expenses, net of waivers and reimbursements .83%(e) .78% .84% .92% .95% .95% Expenses, before waivers and reimbursements .83%(e) .91% .84% .98% 1.58% 3.73% Net investment income 5.32%(e) 5.24%(b) 5.89%(b) 5.87%(b) 5.96%(b) 5.64%(b) Portfolio turnover rate 112% 235% 114% 137% 68% 32%
See footnote summary on page B-84. B-82 FINANCIAL HIGHLIGHTS (continued) Alliance Variable Products Series Fund ================================================================================ Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period -------------- U.S. GOVERNMENT/ HIGH GRADE SECURITIES PORTFOLIO -------------- JUNE 2, 1999(F) TO JUNE 30, 1999 (UNAUDITED) -------------- CLASS A Net asset value, beginning of period $11.13 ---------- INCOME FROM INVESTMENT OPERATIONS Net investment income (c) -0- Net realized and unrealized gain (loss) on investment transactions -0- ---------- Net increase (decrease) in net asset value from operations -0- ---------- LESS: DIVIDENDS AND DISTRIBUTIONS Dividends from net investment income -0- Distributions from net realized gains -0- ---------- Total dividends and distributions -0- ---------- Net asset value, end of period $11.13 ========== TOTAL RETURN Total investment return based on net asset value (d) 0% RATIOS/SUPPLEMENTAL DATA Net assets, end of period (000's omitted) $100 Ratios to average net assets of: Expenses 1.08%(e) Net investment income 6.16%(e) Portfolio turnover rate 112%
-------------------------------------------------------------------------- MONEY MARKET PORTFOLIO -------------------------------------------------------------------------- SIX MONTHS ENDED YEAR ENDED DECEMBER 31, JUNE 30, 1999 -------------------------------------------------------- (UNAUDITED) 1998 1997 1996 1995 1994 ------------- ------ ------ ------ ------ ------ CLASS A Net asset value, beginning of year $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 ------ ------ ------ ------ ------- ------ INCOME FROM INVESTMENT OPERATIONS Net investment income .02 .05 .05(b) .05(b) .05(b) .03(b) ------ ------ ------ ------ ------- ------ LESS: DIVIDENDS Dividends from net investment income (.02) (.05) (.05) (.05) (.05) (.03) 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 (d) 2.17% 4.98% 5.11% 4.71% 4.97% 3.27% RATIOS/SUPPLEMENTAL DATA Net assets, end of period (000's omitted) $124,456 $119,574 $67,584 $64,769 $28,092 $6,899 Ratios to average net assets of: Expenses, net of waivers and reimbursements .65%(e) .68% .64% .69% .95% .95% Exenses, before waivers and reimbursements .65%(e) .68% .64% .69% 1.07% 4.46% Net investment income 4.33%(e) 4.84% 5.00%(b) 4.64%(b) 4.85%(b) 3.98%(b)
See footnote summary on page B-84. B-83 Alliance Variable Products Series Fund ================================================================================ Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period ---------------- MONEY MARKET PORTFOLIO ---------------- June 16, 1999(f) to June 30, 1999 (unaudited) ---------------- Class B Net asset value, beginning of period ................... $ 1.00 ------ Income From Investment Operations Net investment income .................................. .001 ------ Less: Dividends Dividends from net investment income ................... (.001) ------ Net asset value, end of period ......................... $ 1.00 ====== Total Return Total investment return based on net asset value (d) ... .18% Ratios/Supplemental Data Net assets, end of period (000's omitted) .............. $114 Ratios to average net assets of: Expenses ............................................. .90%(e) Net investment income ................................ 6.22%(e) - -------------------------------------------------------------------------------- Footnote Summary: (a) Commencement of operations. (b) Net of expenses reimbursed or waived by the Adviser. (c) Based on average shares outstanding. (d) 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. (e) Annualized. (f) Commencement of distribution. B-84 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 Matthew Bloom, Senior Vice President Kathleen A. Corbet, 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 Alden M. Stewart, Senior Vice President Peter Anastos, Vice President Steven Beinhacker, Vice President Mark H. Breedon, Vice President Russell Brody, Vice President Nicholas D.P. Carn, Vice President Ian Coulman, Vice President Randall E. Haase, Vice President David Kruth, Vice President Gerald T. Malone, Vice President Douglas J. Peebles, Vice President Daniel G. Pine, Vice President Paul C. Rissman, Vice President Tyler J. Smith, Vice President Wayne C. Tappe, Vice President Jean Van De Walle, 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. B-85 (This page left intentionally blank.) (This page left intentionally blank.) (This page left intentionally blank.) -----END PRIVACY-ENHANCED MESSAGE-----