United States
Securities and Exchange Commission
Washington, D.C. 20549
Form N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-07391
AllianceBernstein Global Strategic Income Trust, Inc.
(Exact name of registrant as specified in charter)
1345 Avenue of the Americas, New York, New York 10105
(Address of principal executive offices) (Zip code)
Edmund P. Bergan, Jr.
Alliance Capital Management, L.P.
1345 Avenue of the Americas
New York, New York 10105
(Name and address of agent for service)
Registrant's telephone number, including area code: (800) 221-5672
Date of fiscal year end: October 31, 2003
Date of reporting period: April 30, 2003
ITEM 1. REPORTS TO STOCKHOLDERS.
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MULTI-SECTOR FIXED INCOME
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AllianceBernstein Global Strategic Income Trust
Semi-Annual Report
April 30, 2003
[GRAPHIC OMITTED]
[LOGO] AllianceBernstein (SM)
Investment Research and Management
Investment Products Offered
- -------------------------
o Are Not FDIC Insured
o May Lose Value
o Are Not Bank Guaranteed
- -------------------------
This shareholder report must be preceded or accompanied by the Fund's
prospectus for individuals who are not current shareholders of the Fund.
AllianceBernstein Investment Research and Management, Inc., the principal
underwriter of the AllianceBernstein mutual funds and an affiliate of Alliance
Capital Management L.P., the manager of the funds, is a member of the NASD.
June 10, 2003
Semi-AnnualReport
We're excited to announce that Alliance Fund Distributors, Inc. has become
AllianceBernstein Investment Research and Management, Inc. All of Alliance
Capital's domestic mutual funds have been renamed AllianceBernstein.
This report provides management's discussion of fund performance for
AllianceBernstein Global Strategic Income Trust (the "Fund") semi-annual
reporting period ended April 30, 2003.
Investment Objectives and Policies
This open-end fund seeks primarily a high level of current income and
secondarily capital appreciation. The Fund invests primarily in a portfolio of
fixed-income securities of U.S. and non-U.S. companies and U.S. government and
foreign government securities and supranational entities, including lower-rated
securities. The Fund will maintain at least 65% of its total assets in
investment grade securities and may maintain not more than 35% of its total
assets in lower-rated securities.
Investment Results
The following table provides the Fund's performance over the six- and 12-month
periods ended April 30, 2003. For comparison, we have included the Lehman
Brothers (LB) Global Aggregate Bond Index (hedged), a standard measure of the
international investment-grade bond market, and the Lipper Multi-Sector Income
Funds Average, which reflects the average performance of a group of funds with
similar investment objectives to the Fund.
Investment Results*
Periods Ended April 30, 2003
---------------------------------
Returns
---------------------------------
6 Months 12 Months
-------------- --------------
AllianceBernstein Global
Strategic Income Trust
Class A 15.39% 13.25%
- ------------------------------------------------------------
Class B 15.13% 12.44%
- ------------------------------------------------------------
Class C 14.98% 12.44%
- ------------------------------------------------------------
Lehman Brother Global
Aggregate Bond Index
(hedged) 3.78% 9.15%
- ------------------------------------------------------------
Lipper Multi-Sector
Income Funds Average 11.89% 11.56%
- ------------------------------------------------------------
* The Fund's investment results are for the periods shown and are based on
the net asset value (NAV) of each class of shares as of April 30, 2003. Returns
do not reflect the deduction of taxes that a shareholder would pay on fund
distributions or the redemption of fund shares. All fees and expenses related
to the operation of the Fund have been deducted, but no adjustment has been
made for sales charges that may apply when shares are purchased or redeemed.
Returns for Advisor Class shares will vary due to different expenses associated
with this class. Returns for the Fund include the reinvestment of any
distributions paid during each period. Past performance is no guarantee of
future results.
The unmanaged Lehman Brothers (LB) Global Aggregate Bond Index (hedged)
provides a broad-based measure of the international investment-grade bond
market. The index combines the U.S. Aggregate Index with dollar-denominated
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ALLIANCEBERNSTEIN GLOBAL STRATEGIC INCOME TRUST o 1
versions of the Pan-European Index and the Japanese, Canadian, Australian and
New Zealand components of the Global Treasury Index. The Lipper Multi-Sector
Income Funds Average reflects the performance of 116 and 113 funds for the six-
and 12-month periods ended April 30, 2003, respectively. The Average has
generally similar investment objectives to the Fund, although the investment
policies for its various funds may vary. An investor cannot invest directly in
an index or an average, and its results are not indicative of any specific
investment, including AllianceBernstein Global Strategic Income Trust.
Additional investment results appear on pages 4-6.
During the six- and 12-month periods ended April 30, 2003, the Fund
outperformed its benchmark, the LB Global Aggregate Bond Index, as well as the
Lipper Multi-Sector Income Funds Average. The Fund's overweight position in
credit-sensitive sectors, particularly high yield and emerging market debt,
helped achieve the positive return versus the benchmark. Security selection
within governments, high yield and emerging market corporates added to the
Fund's relative return.
The Fund's country allocation was a strong contributor to its outperformance.
Most notably, our avoidance of Japan provided a significant advantage over the
benchmark. Among emerging markets countries, the Fund's holdings in Russia and
Brazil contributed positively, while the position in Ecuador detracted
somewhat. Russia continues to show strong economic numbers reflecting reduced
debt, an increase in the budget surplus and strong industrial production.
Although the Fund's holdings in Brazil suffered from uncertainty prior to the
country's October election, the market rebounded significantly thereafter. The
Fund's South Africa position, increased in reflection of the country's
improving economic conditions, was also a major contributor to outperformance.
Market Review and Investment Strategy
One of the biggest winners over the last six months was the emerging market
debt sector. In the first three months of 2003, Latin markets outperformed
non-Latin markets, with Brazil in particular gaining 20.50%. Non-U.S.
developed-market government bonds modestly outpaced their U.S. counterparts as
well. In November and again in March, the European Central Bank, acknowledging
that economic recovery would materialize later than expected, reduced rates by
a total of 75 basis points, and left the door open for further easing.
Accordingly, European yields declined, while U.S. rates, which had already come
down roughly 50 basis points, remained stable.
Led by formerly investment-grade "fallen angels," the high yield sector
significantly outperformed the investment-grade sector during the period under
review, as spreads retreated from the historical highs reached mid-year of
2002. As in the investment-grade
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2 o ALLIANCEBERNSTEIN GLOBAL STRATEGIC INCOME TRUST
market, the lower quality tiers outperformed higher rated debt, and higher risk
sectors--including utilities, technology and telecom--outpaced less volatile
industries. Among investment-grade bonds, U.S. Treasuries were the weakest
sector, while corporates posted the strongest absolute returns. We currently
maintain a diversified overweight position in emerging markets and high yield
corporates and an underweight in U.S. Government debt.
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ALLIANCEBERNSTEIN GLOBAL STRATEGIC INCOME TRUST o 3
PORTFOLIO SUMMARY
April 30, 2003 (unaudited)
INCEPTION DATES
Class A Shares
1/9/96
Class B Shares
3/21/96
Class C Shares
3/21/96
PORTFOLIO STATISTICS
Net Assets ($mil): $190.3
SECURITY TYPE BREAKDOWN
32.7% Sovereign
11.5% Treasury
5.6% Banking
5.3% Supranationals
3.8% Utilities-Electric & Gas [PIE CHART OMITTED]
3.6% Federal Agency
2.3% Energy
1.9% Paper/Packaging
1.9% Financial Services
1.8% Communications-Mobile
1.6% Transportation
1.6% Chemicals
1.5% Communications-Fixed
1.5% Communications
16.6% Other
6.8% Short-Term
All data as of April 30, 2003. The Fund's security type breakdown is expressed
as a percentage of total investments and may vary over time. "Other" represents
less than 1.5% weightings in the following securities: Cable, Service,
Automotive, Brady Bonds, Consumer Manufacturing, Petroleum Products, Health
Care, Technology and Preferred Stock.
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4 o ALLIANCEBERNSTEIN GLOBAL STRATEGIC INCOME TRUST
PORTFOLIO SUMMARY
April 30, 2003 (unaudited)
HOLDINGS TYPE BREAKDOWN
92.3% Fixed Income
0.9% Equity [PIE CHART OMITTED]
6.8% Short-Term
UNDERLYING CURRENCY BREAKDOWN
63.0% U.S. Dollars
13.2% Euro
5.7% South African Rand
2.5% Canadian Dollar [PIE CHART OMITTED]
2.2% Mexican Peso
1.8% Australian Dollar
1.7% New Zealand Dollar
1.4% Polish Zloty
0.9% Chilean Peso
0.8% German Mark
6.8% Short-Term
All data as of April 30, 2003. The Fund's holdings type and underlying currency
breakdowns are expressed as a percentage of total investments and may vary over
time.
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ALLIANCEBERNSTEIN GLOBAL STRATEGIC INCOME TRUST o 5
INVESTMENT RESULTS
AVERAGE ANNUAL RETURNS AS OF APRIL 30, 2003
Class A Shares
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Without Sales Charge With Sales Charge
1 Year 13.25% 8.50%
5 Year 3.78% 2.88%
Since Inception* 8.20% 7.57%
SEC Yield** 3.70%
Class B Shares
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Without Sales Charge With Sales Charge
1 Year 12.44% 8.44%
5 Year 3.05% 3.05%
Since Inception* 7.56% 7.56%
SEC Yield** 3.18%
Class C Shares
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Without Sales Charge With Sales Charge
1 Year 12.44% 11.44%
5 Year 3.05% 3.05%
Since Inception* 7.44% 7.44%
SEC Yield** 3.18%
SEC AVERAGE ANNUAL RETURNS (WITH SALES CHARGES)
AS OF THE MOST RECENT QUARTER-END (MARCH 31, 2003)
Class A Class B Class C
- -------------------------------------------------------------------------------
1 Year 5.77% 5.60% 8.60%
5 Year 2.31% 2.49% 2.49%
Since Inception* 7.20% 7.19% 7.07%
The Fund's investment results represent average annual returns. Returns do not
reflect the deduction of taxes that a shareholder would pay on fund
distributions or the redemption of fund shares. The returns reflect
reinvestment of dividends and/or capital gains distributions in additional
shares without and with the effect of the 4.25% maximum front-end sales charge
for Class A or applicable contingent deferred sales charge for Class B (4% year
1, 3% year 2, 2% year 3, 1% year 4); and for Class C shares (1% year 1).
Returns for Class A shares do not reflect the imposition of the 1 year, 1%
contingent deferred sales charge for accounts over $1,000,000. Returns for
Advisor Class shares will vary due to different expenses associated with this
class.
The Fund invests a significant amount of its assets in foreign securities and
emerging markets which could result in substantial volatility due to political
and economic uncertainty. The Fund can invest a portion of its assets in the
securities of a single issuer, a single region, a single foreign country and
35% of its assets in lower-rated securities which may present greater risk. In
an effort to increase yield, the Fund can use leverage which may increase
fluctuation caused by changes in interest rates or bond credit quality ratings.
Past performance does not guarantee future results. Investment return and
principal value will fluctuate so that an investor's shares, when redeemed, may
be worth more or less than their original cost.
* Inception date: 1/9/96, Class A shares; 3/21/96, Class B and Class C shares.
** SEC yields are based on SEC guidelines and are calculated on 30 days ended
April 30, 2003.
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6 o ALLIANCEBERNSTEIN GLOBAL STRATEGIC INCOME TRUST
PORTFOLIO OF INVESTMENTS
April 30, 2003 (unaudited)
Principal
Amount
(000) U.S. $ Value
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Argentina-0.9%
Government Obligation-0.9%
Republic of Argentina
1.37%, 8/03/12
(cost $1,625,481) US$ 3,000 $ 1,689,000
-----------
Australia-1.9%
Government Obligation-1.9%
Government of Australia
7.50%, 9/15/09(a)
(cost $3,377,143) AUD 5,140 3,636,685
-----------
Belgium-0.2%
Corporate Debt Obligation-0.2%
Barry Callebaut Services NV
9.25%, 3/15/10
(cost $275,425) EUR 250 299,185
-----------
Brazil-2.9%
Government Obligations-2.9%
Banco Nacional de Desenvolvimento
6.50%, 6/15/06(b) US$ 400 393,000
Federal Republic of Brazil
8.00%, 4/15/14(a) 585 515,490
11.25%, 7/26/07(a) 1,150 1,171,850
12.00%, 4/15/10(a) 2,100 2,121,000
14.50%, 10/15/09(a) 1,200 1,329,000
-----------
Total Brazilian Securities
(cost $3,698,537) 5,530,340
-----------
Bulgaria-0.2%
Government Obligation-0.2%
Republic of Bulgaria
8.25%, 1/15/15(b)
(cost $416,500) 400 450,600
-----------
Canada-3.1%
Corporate Debt Obligations-0.5%
Doman Industries, Ltd.
12.00%, 7/01/04(a) 400 398,000
Intrawest Corp.
10.50%, 2/01/10 250 272,500
Nortel Networks, Ltd.
6.13%, 2/15/06(a) 250 243,438
-----------
913,938
-----------
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ALLIANCEBERNSTEIN GLOBAL STRATEGIC INCOME TRUST o 7
Principal
Amount
(000) U.S. $ Value
- -------------------------------------------------------------------------------
Government Obligation-2.6%
Canadian Government
4.25%, 12/01/04(a) CAD 7,000 $ 4,943,262
-----------
Total Canadian Securities
(cost $5,634,722) 5,857,200
-----------
Chile-1.0%
Government Obligation-1.0%
Bono BCO Central de Chile en Pesos
8.00%, 9/01/07
(cost $1,769,290) CLP 1,200,000 1,861,099
-----------
Colombia-1.4%
Government Obligations-1.4%
Republic of Colombia
9.75%, 4/23/09(a) US$ 150 165,000
11.75%, 2/25/20(a) 2,000 2,410,000
-----------
Total Colombian Securities
(cost $2,084,294) 2,575,000
-----------
El Salvador-0.1%
Government Obligation-0.1%
Republic of El Salvador
7.75%, 1/24/23(b)
(cost $249,185) 250 266,250
-----------
France-0.5%
Corporate Debt Obligations-0.5%
Crown Euro Holdings SA
10.88%, 3/01/13(b) 525 568,313
FIMEP SA
10.50%, 2/15/13(b) 305 330,925
-----------
Total French Securities
(cost $830,247) 899,238
-----------
Germany-6.3%
Corporate Debt Obligations-0.3%
Kronos International, Inc.
8.88%, 6/30/09 EUR 250 288,679
Messer Griesheim Holdings AG
10.38%, 6/01/11(a) 300 375,799
-----------
664,478
-----------
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8 o ALLIANCEBERNSTEIN GLOBAL STRATEGIC INCOME TRUST
Principal
Amount
(000) U.S. $ Value
- -------------------------------------------------------------------------------
Government Obligations-6.0%
Bundesobligation
4.50%, 8/18/06 EUR 503 $ 591,096
4.50%, 8/17/07(a) 1,297 1,528,391
Bundesrepublic of Deutscheland
5.00%, 7/04/12 5,342 6,383,864
5.25%, 1/04/11(a) 2,325 2,832,744
-----------
11,336,095
-----------
Total German Securities
(cost $10,887,455) 12,000,573
-----------
Greece-0.2%
Corporate Debt Obligation-0.2%
Antenna TV SA
9.75%, 7/01/08(a)
(cost $196,174) 300 291,916
-----------
Ireland-0.2%
Corporate Debt Obligation-0.2%
MDP Acquisitions Plc.
10.13%, 10/01/12(a)(b)
(cost $294,720) 300 360,123
-----------
Italy-3.7%
Corporate Debt Obligation-1.1%
Banca Popolare Bergamo
8.36%, 12/29/49(a) 1,735 2,082,581
-----------
Government Obligation-2.6%
Government of Italy
4.75%, 3/15/06(a) 4,225 4,994,859
-----------
Total Italian Securities
(cost $5,400,689) 7,077,440
-----------
Kazakhstan-0.8%
Corporate Debt Obligation-0.8%
Kazkommerts International BV
8.50%, 4/16/13(b)
(cost $1,463,317) US$ 1,500 1,490,625
-----------
Liberia-0.1%
Corporate Debt Obligation-0.1%
Royal Caribbean Cruises, Ltd.
8.75%, 2/02/11(a)
(cost $232,849) 250 255,000
-----------
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ALLIANCEBERNSTEIN GLOBAL STRATEGIC INCOME TRUST o 9
Shares or
Principal
Amount
(000) U.S. $ Value
- -------------------------------------------------------------------------------
Luxembourg-0.3%
Corporate Debt Obligations-0.3%
Antargaz Finance
10.00%, 7/15/11(a)(b) EUR 200 $ 241,585
PTC International Finance II SA
11.25%, 12/01/09 US$ 250 280,000
-----------
Total Luxembourg Securities
(cost $474,737) 521,585
-----------
Malaysia-1.0%
Corporate Debt Obligation-1.0%
Petronas Capital, Ltd.
7.88%, 5/22/22(b)
(cost $1,941,953) 1,825 1,998,375
-----------
Mexico-5.9%
Corporate Debt Obligation-0.6%
Innova S. de R.L.
12.88%, 4/01/07(a) 1,200 1,170,000
-----------
Government Obligations-5.3%
Mexican Bonos
10.50%, 7/14/11(a) MXN 22,636 2,412,100
13.50%, 3/02/06(a) 17,336 1,931,209
United Mexican States
11.38%, 9/15/16(a) US$ 4,000 5,696,000
-----------
10,039,309
-----------
Total Mexican Securities
(cost $9,800,545) 11,209,309
-----------
Netherlands-1.6%
Common Stock-0.0%
Versatel Telecom International NV(a)(c) 32,931 30,570
-----------
Corporate Debt Obligations-1.6%
Danske Bank A/S
5.88%, 3/26/15(a) EUR 820 989,602
PTC International Finance BV
10.75%, 7/01/07(a) US$ 995 1,047,237
Royal KPN NV
3.50%, 11/24/05(a) EUR 860 946,237
-----------
2,983,076
-----------
Preferred Stock-0.0%
United Pan Europe Communications
convertible preferred(c)(d) 30,000 30,000
-----------
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10 o AllianceBernstein Global Strategic Income Trust
Shares or
Principal
Amount
(000) U.S. $ Value
- -------------------------------------------------------------------------------
Warrant-0.0%
Versatel Telecom International NV
expiring 10/10/04(a)(c) 32,931 $ 1,842
-----------
Total Dutch Securities
(cost $5,591,248) 3,045,488
-----------
New Zealand-1.8%
Government Obligation-1.8%
Government of New Zealand
8.00%, 11/15/06(a)
(cost $2,730,990) NZD 5,560 3,370,591
-----------
Norway-0.0%
Warrant-0.0%
Enitel ASA
expiring 4/03/05(b)(c)
(cost $0) EUR 500 6
-----------
Poland-1.5%
Government Obligation-1.5%
Government of Poland
8.50%, 2/12/05(a)
(cost $2,674,693) PLN 10,000 2,768,465
-----------
Russia-5.5%
Corporate Debt Obligation-0.1%
Tyumen Oil
11.00%, 11/06/07(b) US$ 150 177,300
-----------
Government Obligations-5.4%
Russian Federation
5.00%, 3/31/30(b)(e) 8,800 7,920,000
Russian Ministry of Finance
3.00%, 5/14/06(a) 2,500 2,409,500
-----------
10,329,500
-----------
Total Russian Securities
(cost $5,868,597) 10,506,800
-----------
Slovakia-0.2%
Corporate Debt Obligation-0.2%
Slovak Wireless Finance Co.
11.25%, 3/30/07(a)
(cost $311,628) EUR 300 362,546
-----------
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ALLIANCEBERNSTEIN GLOBAL STRATEGIC INCOME TRUST o 11
Principal
Amount
(000) U.S. $ Value
- -------------------------------------------------------------------------------
South Africa-5.9%
Corporate Debt Obligations-5.9%
Development Bank of South Africa
Zero Coupon, 12/31/27(a) ZAR 50,000 $ 697,950
European Bank for Reconstruction
& Development
Zero Coupon, 12/31/29(a) 50,000 780,466
International Bank for Reconstruction
& Development
Zero Coupon, 12/31/25(a) 350,000 6,886,595
Zero Coupon, 2/17/26(a) 50,000 976,029
Zero Coupon, 12/29/28(b) 250,000 1,873,805
-----------
Total South African Securities
(cost $11,555,242) 11,214,845
-----------
United Kingdom-3.4%
Corporate Debt Obligations-3.4%
Avecia Group Plc.
11.00%, 7/01/09(a) US$ 500 457,500
British Telecom Plc.
8.63%, 12/15/30(a) 1,000 1,335,210
ECO-Bat Finance Plc.
10.13%, 1/31/13(b) EUR 250 291,699
FKI Plc.
6.63%, 2/22/10(a) 230 241,471
MMO2 Plc.
6.38%, 1/25/07(a) 820 976,037
Rexam Plc.
6.63%, 3/27/07(a) 810 974,511
Royal Bank of Scotland Group Plc.
7.65%, 8/31/49(a) US$ 1,875 2,279,454
-----------
Total United Kingdom Securities
(cost $5,663,388) 6,555,882
-----------
United States-44.6%
Corporate Debt Obligations-28.0%
Abbey National Capital Trust I
8.96%, 12/29/49(a) 1,425 1,915,817
Allegheny Energy, Inc.
7.75%, 8/01/05(a) 250 250,625
Allied Waste North America Series B
10.00%, 8/01/09(a) 500 536,875
Anchor Glass Container Corp.
11.00%, 2/15/13(b) 455 484,575
Applied Extrusion Technologies
Series B
10.75%, 7/01/11(a) 450 335,250
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12 o ALLIANCEBERNSTEIN GLOBAL STRATEGIC INCOME TRUST
Principal
Amount
(000) U.S. $ Value
- -------------------------------------------------------------------------------
AT&T Broadband Corp.
8.38%, 3/15/13(a) US$ 440 $ 537,964
Berry Plastics
10.75%, 7/15/12(a) 485 531,075
Charter Communication Holdings
11.75%, 5/15/11(a)(f) 585 266,175
Citgo Petroleum Corp.
11.38%, 2/01/11(b) 500 560,000
Citizens Communications Co.
9.25%, 5/15/11 280 354,532
Clear Channel Communications, Inc.
5.75%, 1/15/13(a) 200 211,743
Concentra Operating Corp. Series B
13.00%, 8/15/09(a) 405 445,500
Consolidated Freightways
7.35%, 6/01/05(a) 3,000 3,133,671
Cummins, Inc.
9.50%, 12/01/10(b) 250 271,250
Dana Corp.
10.13%, 3/15/10(a) 210 236,250
Devon Financing
7.88%, 9/30/31(a) 3,000 3,726,192
Dex Media East LLC
9.88%, 11/15/09(b) 200 230,000
12.13%, 11/15/12(b) 205 244,975
Dobson Sygnet Communications Co.
12.25%, 12/15/08(a) 250 248,750
Dominion Resources Capital Trust III
8.40%, 1/15/31(a) 200 248,547
Duke Capital Corp.
6.25%, 2/15/13 300 309,145
Dura Operating Corp. Series D
9.00%, 5/01/09(a) 400 384,000
Earle M. Jorgensen Co.
9.75%, 6/01/12(a) 245 258,475
EOP Operating LP
5.88%, 1/15/13(a) 250 264,723
Euronet Worldwide, Inc.
12.38%, 7/01/06(a)(g)(h) DEM 3,573 1,552,848
Extended Stay America
9.88%, 6/15/11(a) US$ 170 177,650
Extendicare Health Services
9.50%, 7/01/10(a) 250 248,750
Fairpoint Communications, Inc.
11.88%, 3/01/10(b) 145 161,675
Farmers Exchange Capital
7.05%, 7/15/28(b) 300 232,998
Fastentech, Inc.
11.50%, 5/01/11(b) 125 129,375
Filtronic Plc.
10.00%, 12/01/05(a) 500 505,000
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ALLIANCEBERNSTEIN GLOBAL STRATEGIC INCOME TRUST o 13
Principal
Amount
(000) U.S. $ Value
- -------------------------------------------------------------------------------
FirstEnergy Corp. Series B
6.45%, 11/15/11(a) US$ 3,000 $ 3,249,591
Flextronics International, Ltd.
9.88%, 7/01/10(a) 250 276,250
FMC Corp.
10.25%, 11/01/09 250 282,500
Food Lion, Inc.
8.05%, 4/15/27(a) 860 838,500
Ford Motor Co.
7.45%, 7/16/31(a) 322 287,371
General Electric Capital Corp.
5.45%, 1/15/13(a) 520 553,327
General Motors Acceptance Corp.
8.00%, 11/01/31(a) 108 112,809
Georgia Gulf Corp.
10.38%, 11/01/07(a) 285 309,225
HCA, Inc.
6.25%, 2/15/13(a) 100 103,423
6.95%, 5/01/12(a) 1,000 1,077,130
Hexcel Corp.
9.88%, 10/01/08(b) 85 91,375
Houghton Mifflin Co.
9.88%, 2/01/13(b) 175 189,875
Household Finance Corp.
7.00%, 5/15/12(a) 1,375 1,577,470
Huntsman ICI Chemicals
10.13%, 7/01/09(a) 500 517,500
Huntsman Packaging Corp.
13.00%, 6/01/10(a) 395 367,350
IASIS Healthcare Corp.
13.00%, 10/15/09(a) 250 280,000
IBM Corp.
4.75%, 11/29/12(a) 700 721,978
Insight Communications Co., Inc.
12.25%, 2/15/11(a)(f) 580 459,650
Insight Midwest/Insight Capital
9.75%, 10/01/09(b) 500 538,750
Iridium LLC/Capital Corp. Series B
14.00%, 7/15/05(a)(i) 2,000 135,000
Jostens, Inc.
12.75%, 5/01/10(a) 500 600,000
JP Morgan Chase & Co.
5.75%, 1/02/13(a) 900 958,046
K&F Industries, Inc. Series B
9.63%, 12/15/10 480 520,800
Lucent Technologies, Inc.
6.45%, 3/15/29(a) 250 185,000
Lyondell Chemical Co.
10.88%, 5/01/09(a) 550 555,500
Meadwestvaco Corp.
6.85%, 4/01/12(a) 300 339,824
- -------------------------------------------------------------------------------
14 o ALLIANCEBERNSTEIN GLOBAL STRATEGIC INCOME TRUST
Principal
Amount
(000) U.S. $ Value
- -------------------------------------------------------------------------------
Mediacom Broadband LLC
11.00%, 7/15/13(a) US$ 150 $ 171,375
Meristar Hospitality Corp.
9.13%, 1/15/11(a) 250 236,250
National Waterworks, Inc.
10.50%, 12/01/12(b) 200 219,000
Nextel Communications
9.95%, 2/15/08(a)(f) 500 527,500
Nextel Partners, Inc.
12.50%, 11/15/09(a) 500 547,500
On Semiconductor Corp.
12.00%, 5/15/08 600 573,000
Panamsat Corp.
8.50%, 2/01/12(a) 215 233,813
Pathmark Stores
8.75%, 2/01/12(a) 500 505,000
Paxson Communications
10.75%, 7/15/08(a) 120 133,200
12.25%, 1/15/09(a)(f) 265 223,925
Progress Energy, Inc.
7.75%, 3/01/31(a) 2,600 3,183,752
Remington Product Co. LLC Series D
11.00%, 5/15/06(a) 500 512,500
Resolution Performance
13.50%, 11/15/10(a) 300 323,250
Rexnord Corp.
10.13%, 12/15/12(b) 500 540,000
RH Donnelley Finance Corp. I
10.88%, 12/15/12(b) 305 354,563
Riviera Holdings Corp.
11.00%, 6/15/10(a) 240 226,800
RJ Tower Corp.
9.25%, 8/01/10(a) EUR 500 496,312
Salton, Inc.
12.25%, 4/15/08(a) US$ 250 261,250
Sealy Mattress Co. Series B
9.88%, 12/15/07(a) 500 517,500
Service Corp. International
6.00%, 12/15/05(a) 250 252,500
7.70%, 4/15/09(a) 250 253,750
Six Flags, Inc.
9.75%, 4/15/13(b) 250 260,000
Sola International, Inc.
11.00%, 3/15/08(a) EUR 300 367,411
Sovereign Bank
5.13%, 3/15/13(a) US$ 60 60,150
Swift & Co.
10.13%, 10/01/09(b) 500 515,000
The Limited, Inc.
6.95%, 3/01/33(b) 500 522,267
- -------------------------------------------------------------------------------
ALLIANCEBERNSTEIN GLOBAL STRATEGIC INCOME TRUST o 15
Principal
Amount
(000) U.S. $ Value
- -------------------------------------------------------------------------------
Time Warner Telecom, Inc.
10.13%, 2/01/11(a) US$ 730 $ 613,200
Triton PCS, Inc.
11.00%, 5/01/08(a)(f) 250 251,875
Trump Holdings & Funding
11.63%, 3/15/10(a)(b) 260 250,250
TRW Automotive, Inc.
9.38%, 2/15/13(b) 250 274,375
11.00%, 2/15/13(b) 250 275,000
United States Steel LLC
10.75%, 8/01/08(a) 500 545,000
Universal City Development
11.75%, 4/01/10(a)(b) 505 546,663
Vail Resorts, Inc.
8.75%, 5/15/09(a) 100 105,000
Venetian Casino Resort LLC
11.00%, 6/15/10(a) 500 551,250
Verizon Global Corp.
7.75%, 12/01/30(a) 1,000 1,239,516
Verizon Global Funding Corp.
7.75%, 6/15/32(a) 300 372,401
Washington Mutual Bank FA
5.50%, 1/15/13(a) 500 531,900
Waste Management, Inc.
6.38%, 11/15/12(a) 500 555,001
William Lyon Homes
10.75%, 4/01/13(a) 250 257,500
William Scotsman, Inc.
9.88%, 6/01/07(a) 500 500,000
Williams Cos., Inc. Series A
7.50%, 1/15/31(a) 250 220,000
Young Broadcasting, Inc.
10.00%, 3/01/11(a) 110 119,350
-----------
53,348,498
-----------
U.S. Government/Agency Obligations-15.7%
Federal National Mortgage Association
30 YR TBA
5.50%, 5/31/33 7,000 7,192,500
U.S. Treasury Bonds
5.38%, 2/15/31(a) 2,328 2,540,977
10.38%, 11/15/12(a) 2,000 2,650,626
U.S. Treasury Notes
3.88%, 1/15/09 (TIPS)(a) 3,905 4,387,376
3.88%, 2/15/13(a) 1,837 1,840,015
4.00%, 11/15/12(a) 334 338,371
4.25%, 1/15/10 (TIPS)(a) 9,164 10,567,698
4.88%, 2/15/12(a) 342 370,883
-----------
29,888,446
-----------
- -------------------------------------------------------------------------------
16 o ALLIANCEBERNSTEIN GLOBAL STRATEGIC INCOME TRUST
Shares or
Principal
Amount
(000) U.S. $ Value
- -------------------------------------------------------------------------------
Preferred Stocks-0.9%
CSC Holdings, Inc. Series M
11.13%, 4/01/08(a) 5,000 $ 523,750
Ford Motor Co. Capital Trust
6.50%, 1/15/32(a) 11,005 482,789
Paxson Communications
13.25%, 11/15/06 16 147,200
Sovereign REIT
12.00%, 12/31/49(b) 400,000 561,000
------------
1,714,739
------------
Total United States Securities
(cost $79,244,702) 84,951,683
------------
Venezuela-1.5%
Government Obligations-1.5%
Republic of Venezuela
9.25%, 9/15/27 2,000 1,298,000
Republic of Venezuela DCB Series DL
2.31%, 12/18/07(a) 2,143 1,575,000
------------
Total Venezuelan Securities
(cost $2,907,932) 2,873,000
------------
SHORT-TERM INVESTMENT-7.1%
Time Deposit-7.1%
Greenwich Capital
1.29%, 5/01/03
(cost $13,500,000) 13,500 13,500,000
------------
Total Investments-103.8%
(cost $180,701,683) 197,418,849
Other assets less liabilities-(3.8%) (7,136,836)
------------
Net Assets-100% $190,282,013
============
FORWARD EXCHANGE CURRENCY CONTRACTS (See Note D)
U.S. $
Contract Value on U.S. $ Unrealized
Amount Origination Current Appreciation/
(000) Date Value (Depreciation)
----------------------------------------------------------
Buy Contracts:
Canadian Dollar,
settling 5/12/03 8,370 $5,692,228 $5,834,575 $ 142,347
Mexican Peso,
settling 6/09/03 863 75,431 83,189 7,758
Polish Zloty,
settling 4/30/03 21,124 5,424,601 5,532,715 108,114
Swedish Krona
settling 5/09/03 31,438 3,706,073 3,847,373 141,300
- -------------------------------------------------------------------------------
ALLIANCEBERNSTEIN GLOBAL STRATEGIC INCOME TRUST o 17
FORWARD EXCHANGE CURRENCY CONTRACTS (See Note D)
U.S. $
Contract Value on U.S. $ Unrealized
Amount Origination Current Appreciation/
(000) Date Value (Depreciation)
----------------------------------------------------------
Sale Contracts:
Australian Dollar,
settling 5/09/03 1,091 $ 657,515 $ 682,562 $ (25,047)
British Pound,
settling 5/15/03 522 818,118 834,831 (16,713)
Canadian Dollar,
settling 5/12/03 15,509 10,556,078 10,811,780 (255,702)
Chilean Peso,
settling 7/22/03 1,296,235 1,790,850 1,836,079 (45,229)
Euro,
settling
5/09/03-5/30/03 29,358 32,278,257 32,803,635 (525,378)
Mexican Peso,
settling
6/30/03-7/22/03 44,389 4,062,658 4,260,466 (197,808)
New Zealand Dollar,
settling 6/03/03 2,826 1,552,252 1,575,675 (23,423)
Polish Zloty,
settling
4/30/03-6/02/03 30,288 7,505,926 7,923,394 (417,468)
South African Rand,
settling 5/07/03 64,008 7,986,524 8,787,505 (800,981)
-----------
$(1,908,230)
-----------
INTEREST RATE SWAP TRANSACTIONS (See Note D)
Rate Type
----------------------
Notional Payments Payments Unrealized
Swap Amount Termination made by received by Appreciation/
Counterparty (000) Date the Fund the Fund (Depreciation)
- -------------------------------------------------------------------------------
Deutsche Banc MXN 46,500 12/01/03 6.45%* 12.30% $ 129,455
Deutsche Banc MXN 46,500 12/01/03 9.56% 6.45%* (54,353)
Deutsche Banc MXN 46,500 1/12/07 7.755%* 10.35% 268,968
Deutsche Banc MXN 46,500 1/12/07 9.90% 7.755%* 190,935
---------
$ 535,005
---------
* Variable rates are based on the Interbank equilibrium interest rate for
Mexican Pesos
See footnote summary on page 19.
- -------------------------------------------------------------------------------
18 o ALLIANCEBERNSTEIN GLOBAL STRATEGIC INCOME TRUST
(a) Positions, or a portion thereof, with an aggregate market value of
$141,122,488 have been segregated to collateralize forward exchange currency
contracts.
(b) Securities are exempt from registration under Rule 144A of the Securities
Act of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At April 30, 2003
these securities amounted to $23,815,572 or 12.5% of net assets.
(c) Non-income producing security.
(d) Restricted and illiquid security, valued at fair value (See Notes A & H)
(e) Coupon increases periodically based upon a predetermined schedule. Stated
interest rate was in effect at April 30, 2003.
(f) Indicates a security that has a zero coupon that remains in effect until
a predetermined date at which time the stated coupon rate becomes effective
until final maturity.
(g) Will be converted to Euro based upon a predetermined schedule.
(h) Illiquid security, valued at fair value (See Note A)
(i) Security is in default and is non-income producing.
Glossary of Terms:
DCB - Debt Conversion Bond
TBA - (To Be Assigned)-Securities are purchased on a forward commitment with an
appropriate principal amount (generally +/-1.0%) and no definite maturity date.
The actual principal amount and maturity date will be determined upon
settlement when the specific mortgage pools are assigned.
TIPS - Treasury Inflation Protected Security
Currency Abbreviations:
AUD - Australian Dollar
CAD - Canadian Dollar
CLP - Chilean Peso
DEM - Deutsche Mark
EUR - Euro
MXN - Mexican Peso
NZD - New Zealand Dollar
PLN - Polish Zloty
US$ - United States Dollar
ZAR - South African Rand
See notes to financial statements.
- -------------------------------------------------------------------------------
ALLIANCEBERNSTEIN GLOBAL STRATEGIC INCOME TRUST o 19
STATEMENT OF ASSETS & LIABILITIES
April 30, 2003 (unaudited)
Assets
Investments in securities, at value (cost $180,701,683) $197,418,849
Cash 847,949
Foreign cash, at value (cost $378,918) 407,968
Receivable for investment securities sold and
foreign currency contracts 18,152,424
Interest receivable 3,224,952
Net unrealized appreciation of interest rate
swap contracts 535,005
Receivable for capital stock sold 336,039
------------
Total assets 220,923,186
------------
Liabilities
Payable for investment securities purchased 27,161,817
Net unrealized depreciation on forward exchange
currency contracts 1,908,230
Payable for capital stock redeemed 723,217
Dividends payable 340,214
Distribution fee payable 128,404
Advisory fee payable 118,921
Accrued expenses and other liabilities 260,370
------------
Total liabilities 30,641,173
------------
Net Assets $190,282,013
============
Composition of Net Assets
Capital stock, at par $22,079
Additional paid-in capital 233,146,688
Distributions in excess of net investment income (2,752,279)
Accumulated net realized loss on investment and
foreign currency transactions (55,538,922)
Net unrealized appreciation of investments and
foreign currency denominated assets and liabilities 15,404,447
------------
$190,282,013
============
Calculation of Maximum Offering Price
Class A Shares
Net asset value and redemption price per share
($42,489,805/4,929,575 shares of capital stock
issued and outstanding) $8.62
Sales charge--4.25% of public offering price .38
-----
Maximum offering price $9.00
=====
Class B Shares
Net asset value and offering price per share
($124,975,112/14,502,589 shares of capital stock
issued and outstanding) $8.62
=====
Class C Shares
Net asset value and offering price per share
($21,304,485/2,471,511 shares of capital stock
issued and outstanding) $8.62
=====
Advisor Class Shares
Net asset value, redemption and offering price per share
($1,512,611/175,549 shares of capital stock
issued and outstanding) $8.62
=====
See notes to financial statements.
- -------------------------------------------------------------------------------
20 o ALLIANCEBERNSTEIN GLOBAL STRATEGIC INCOME TRUST
STATEMENT OF OPERATIONS
Six Months Ended April 30, 2003 (unaudited)
Investment Income
Interest (net of foreign taxes withheld
of $4,422) $7,767,108
Dividends 77,112 $7,844,220
-----------
Expenses
Advisory fee 676,279
Distribution fee--Class A 58,993
Distribution fee--Class B 595,996
Distribution fee--Class C 101,834
Transfer agency 154,761
Custodian 152,797
Administrative 70,250
Audit and legal 56,126
Printing 51,532
Registration 33,922
Directors' fees 10,050
Miscellaneous 2,981
-----------
Total expenses 1,965,521
Less: expense offset arrangement
(see Note B) (367)
-----------
Net expenses 1,965,154
-----------
Net investment income 5,879,066
-----------
Realized and Unrealized Gain (Loss)
on Investment and Foreign Currency
Transactions
Net realized loss on:
Investment transactions (2,664,060)
Foreign currency transactions (3,971,231)
Net change in unrealized
appreciation/depreciation of:
Investments 26,468,240
Foreign currency denominated
assets and liabilities (479,333)
Swap contracts 439,037
-----------
Net gain on investment and foreign
currency transactions 19,792,653
-----------
Net Increase in Net Assets
from Operations $25,671,719
===========
See notes to financial statements.
- -------------------------------------------------------------------------------
ALLIANCEBERNSTEIN GLOBAL STRATEGIC INCOME TRUST o 21
STATEMENT OF CHANGES
IN NET ASSETS
Six Months Ended Year Ended
April 30, 2003 October 31,
(unaudited) 2002
-------------- --------------
Increase (Decrease) in Net Assets
from Operations
Net investment income $ 5,879,066 $ 15,448,951
Net realized loss on investment and
foreign currency transactions (6,635,291) (28,192,388)
Net change in unrealized
appreciation/depreciation of
investments and foreign currency
denominated assets and liabilities 26,427,944 10,737,692
------------ ------------
Net increase (decrease) in net assets
from operations 25,671,719 (2,005,745)
Dividends and Distributions to
Shareholders from
Net investment income
Class A (1,470,347) (3,093,358)
Class B (4,032,841) (8,031,811)
Class C (688,800) (1,568,284)
Advisor Class (56,465) (91,992)
Tax return of capital
Class A -0- (745,844)
Class B -0- (1,936,563)
Class C -0- (378,132)
Advisor Class -0- (22,180)
Capital Stock Transactions
Net decrease (6,772,571) (53,494,261)
------------ ------------
Total increase (decrease) 12,650,695 (71,368,170)
Net Assets
Beginning of period 177,631,318 248,999,488
------------ ------------
End of period $190,282,013 $177,631,318
============ ============
See notes to financial statements.
- -------------------------------------------------------------------------------
22 o ALLIANCEBERNSTEIN GLOBAL STRATEGIC INCOME TRUST
NOTES TO FINANCIAL STATEMENTS
April 30, 2003 (unaudited)
NOTE A
Significant Accounting Policies
AllianceBernstein Global Strategic Income Trust, Inc. (the "Fund"), formerly
Alliance Global Strategic Income Trust, Inc., was incorporated in the State of
Maryland on October 25, 1995 as a non-diversified, open-end management
investment company. The Fund offers Class A, Class B, Class C and Advisor Class
shares. Class A shares are sold with a front-end sales charge of up to 4.25%
for purchases not exceeding $1,000,000. With respect to purchases of $1,000,000
or more, Class A shares redeemed within one year of purchase may be subject to
a contingent deferred sales charge of 1%. Class B shares are currently sold
with a contingent deferred sales charge which declines from 4% to zero
depending on the period of time the shares are held. Class B shares will
automatically convert to Class A shares eight years after the end of the
calendar month of purchase. Class C shares are subject to a contingent deferred
sales charge of 1% on redemptions made within the first year after purchase.
Advisor Class shares are sold without an initial or contingent deferred sales
charge and are not subject to ongoing distribution expenses. Advisor Class
shares are offered to investors participating in fee-based programs and to
certain retirement plan accounts. All four classes of shares have identical
voting, dividend, liquidation and other rights and the same terms and
conditions, except that each class bears different distribution expenses and
has exclusive voting rights with respect to its distribution plan. The
financial statements have been prepared in conformity with accounting
principles generally accepted in the United States, which require management to
make certain estimates and assumptions that affect the reported amounts of
assets and liabilities in the financial statements and amounts of income and
expenses during the reporting period. Actual results could differ from those
estimates. Additional information about some of the items discussed in these
Notes to Financial Statements is contained in the Fund's Statement of
Additional Information, which is available upon request. The following is a
summary of significant accounting policies followed by the Fund.
1. Security Valuation
In accordance with Pricing Policies adopted by the Board of Directors of the
Fund (the "Pricing Policies") and applicable law, portfolio securities are
valued at current market value or at fair value. The Board of Directors has
delegated to the Adviser, subject to the Board's continuing oversight, certain
responsibilities with respect to the implementation of the Pricing Policies.
Pursuant to the Pricing Policies, securities for which market quotations are
readily available are valued at their current market value. In general, the
market value of these securities is determined as follows:
Securities listed on a national securities exchange or on a foreign securities
exchange are valued at the last sale price at the close of the exchange or
foreign securities exchange. If there has been no sale on such day, the
securities are valued at the mean of the closing bid and asked prices on such
day. If no bid or asked
- -------------------------------------------------------------------------------
ALLIANCEBERNSTEIN GLOBAL STRATEGIC INCOME TRUST o 23
prices are quoted on such day, then the security is valued in good faith at
fair value in accordance with the Pricing Policies. Securities listed on more
than one exchange are valued by reference to the principal exchange on which
the securities are traded; securities not listed on an exchange but traded on
The Nasdaq Stock Market, Inc. ("NASDAQ") are valued in accordance with the
NASDAQ Official Closing Price; listed put or call options are valued at the
last sale price. If there has been no sale on that day, such securities will be
valued at the closing bid prices on that day; open futures contracts and
options thereon are valued using the closing settlement price or, in the
absence of such a price, the most recent quoted bid price. If there are no
quotations available for the day of valuations, the last available closing
settlement price is used; securities traded in the over-the-counter market,
(but excluding securities traded on NASDAQ) are valued at the mean of the
current bid and asked prices as reported by the National Quotation Bureau or
other comparable sources; U.S. Government securities and other debt instruments
having 60 days or less remaining until maturity are valued at amortized cost if
their original maturity was 60 days or less, or by amortizing their fair value
as of the 61st day prior to maturity if their original term to maturity
exceeded 60 days; fixed-income securities, including mortgage backed and asset
backed securities, may be valued on the basis of prices provided by a pricing
service or at a price obtained from one or more of the major broker/dealers. In
cases where broker/dealer quotes are obtained, the Pricing Policies provide
that the Adviser may establish procedures whereby changes in market yields or
spreads are used to adjust, on a daily basis, a recently obtained quoted price
on a security; and OTC and other derivatives are valued on the basis of a
quoted bid price or spread from a major broker/dealer in such security.
Securities for which market quotations are not readily available are valued at
fair value in accordance with the Pricing Policies.
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 prices of such currencies against the U.S.
dollar. Purchases and sales of portfolio securities are translated into U.S.
dollars at the rates of exchange prevailing when such securities were acquired
or sold. Income and expenses are translated into U.S. dollars at rates of
exchange prevailing when accrued.
Net realized gain or loss on foreign currency transactions represents foreign
exchange gains and losses from sales and maturities of foreign fixed income
investments and foreign currency exchange contracts, holding of foreign
currencies, currency gains or losses realized between the trade and settlement
dates on foreign investment transactions, and the difference between the
amounts of dividends, interest and foreign withholding taxes recorded on the
Fund's books and the U.S. dollar equivalent amounts actually received or paid.
Net unrealized currency gains and losses from valuing foreign currency
denominated assets and
- -------------------------------------------------------------------------------
24 o ALLIANCEBERNSTEIN GLOBAL STRATEGIC INCOME TRUST
liabilities at period end exchange rates are reflected as a component of net
unrealized appreciation or depreciation of investments and foreign currency
denominated assets and liabilities.
3. Taxes
It is the Fund's policy to meet the requirements of the Internal Revenue Code
applicable to regulated investment companies and to distribute all of its
investment company taxable income and net realized gains, if any, to
shareholders. Therefore, no provision for federal income or excise taxes is
required.
4. Income and Expenses
All income earned and expenses incurred by the Fund are borne on a pro-rata
basis by each settled class of shares, based on the proportionate interest in
the Fund represented by the net assets of such class, except that the Fund's
Class B and Class C shares bear higher distribution and transfer agent fees
than Class A shares and Advisor Class shares. Advisor Class shares have no
distribution fees.
5. Investment Income and Investment Transactions
Interest income is accrued daily. Investment transactions are accounted for on
the date the securities are purchased or sold. Investment gains and losses are
determined on the identified cost basis. The Fund accretes discounts as
adjustments to interest income. Additionally, the Fund amortizes premium on
debt securities as adjustments to interest income for financial reporting
purposes only.
6. Dividends and Distributions
Dividends and distributions to shareholders are recorded on the ex-dividend
date. Income and capital gains distributions are determined in accordance with
federal tax regulations and may differ from those determined in accordance with
accounting principles generally accepted in the United States. To the extent
these differences are permanent, such amounts are reclassified within the
capital accounts based on their federal tax basis treatment; temporary
differences do not require such reclassification.
NOTE B
Advisory Fee and Other Transactions with Affiliates
Under the terms of an investment advisory agreement, the Fund pays Alliance
Capital Management L.P. (the "Adviser") an advisory fee at an annual rate of
..75 of 1% of the average daily net assets of the Fund. Such fee is accrued
daily and paid monthly.
The Adviser has agreed to waive its fees and bear certain expenses to the
extent necessary to limit total operating expenses on an annual basis to 1.90%,
2.60%, 2.60% and 1.60% of the average daily net assets for the Class A, Class
B, Class C and Advisor Class shares, respectively. For the six months ended
April 30, 2003, there were no fees waived by the Adviser.
- -------------------------------------------------------------------------------
ALLIANCEBERNSTEIN GLOBAL STRATEGIC INCOME TRUST o 25
Pursuant to the Advisory Agreement, the Fund paid $70,250 to the Adviser
representing the cost of certain legal and accounting services provided to the
Fund by the Adviser for the six months ended April 30, 2003.
The Fund compensates Alliance Global Investor Services, Inc. (AGIS), 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. Such compensation amounted to $68,296, for the six months ended April 30,
2003.
For the six months ended April 30, 2003, the Fund's expenses were reduced by
$367 under an expense offset arrangement with AGIS.
AllianceBernstein Investment Research and Management, Inc., (the
"Distributor"), formerly Alliance Fund Distributors, Inc., a wholly-owned
subsidiary of the Adviser, serves as the distributor of the Fund's shares. The
Distributor has advised the Fund that it has received front-end sales charges
of $2,299 from the sale of Class A shares and $6, $148,440 and $3,588 in
contingent deferred sales charges imposed upon redemption by shareholders of
Class A, Class B and Class C shares, respectively, for the six months ended
April 30, 2003.
Brokerage commissions paid on investment transactions for the six months ended
April 30, 2003 amounted to $325, none of which was paid to Sanford C.Bernstein
& Co. LLC, an affiliate of the Adviser.
NOTE C
Distribution Services Agreement
The Fund has adopted a Distribution Services Agreement (the "Agreement")
pursuant to Rule 12b-1 under the Investment Company Act of 1940. Under the
Agreement, the Fund pays distribution and servicing fees to the Distributor at
an annual rate of up to .30 of 1% of the average daily net assets attributable
to the Class A shares and up to 1% of the average daily net assets attributable
to both Class B and Class C shares. There are no distribution and servicing
fees on the Advisor Class shares. The fees are accrued daily and paid monthly.
The Agreement provides that the Distributor will use such payments in their
entirety for distribution assistance and promotional activities. The
Distributor has advised the Fund that it has incurred expenses in excess of the
distribution costs reimbursed by the Fund in the amount of $9,749,354 and
$1,258,496 for Class B and Class C shares, respectively. Such costs may be
recovered from the Fund in future periods so long as the Agreement is in
effect. In accordance with the Agreement, there is no provision for recovery of
unreimbursed distribution costs, incurred by the Distributor, beyond the
current fiscal period for Class A shares. The Agreement also provides that the
Adviser may use its own resources to finance the distribution of the Fund's
shares.
- -------------------------------------------------------------------------------
26 o ALLIANCEBERNSTEIN GLOBAL STRATEGIC INCOME TRUST
NOTE D
Investment Transactions
Purchases and sales of investment securities (excluding short-term investments)
for the period ended April 30, 2003, were as follows:
Purchases Sales
------------- -------------
Investment securities $ 96,090,564 $113,697,434
U.S. government securities 30,008,032 34,036,534
The cost of investments for federal income tax purposes was substantially the
same as the cost for financial reporting purposes. Accordingly, gross
unrealized appreciation and unrealized depreciation (excluding foreign currency
transactions and swap contracts) are as follows:
Gross unrealized appreciation $ 22,385,370
Gross unrealized depreciation (5,668,204)
------------
Net unrealized appreciation $ 16,717,166
------------
1. Forward Exchange Currency Contracts
The Fund enters into forward exchange currency contracts in order to hedge its
exposure to changes in foreign currency exchange rates on its foreign portfolio
holdings, 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 on a future
date at a negotiated forward rate. The gain or loss arising from the difference
between the original contract and the closing of such contract is included in
net realized gain or loss on foreign currency transactions.
Fluctuations in the value of open forward exchange currency contracts are
recorded for financial reporting purposes as unrealized appreciation or
depreciation by the Fund.
The Fund's custodian will place and maintain cash not available for investment
or other liquid assets in a separate account of the Fund having a value at
least equal to the aggregate amount of the Fund's commitments under forward
exchange currency contracts entered into with respect to position hedges.
Risks may arise from the potential inability of the 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 the Fund has in that particular currency
contract.
2. Option Transactions
For hedging and investment purposes, the Fund purchases and writes (sells) put
and call options on U.S. and foreign government securities and foreign
currencies
- -------------------------------------------------------------------------------
ALLIANCEBERNSTEIN GLOBAL STRATEGIC INCOME TRUST o 27
that are traded on U.S. and foreign securities exchanges and over-the-counter
markets.
The risk associated with purchasing an option is that the Fund pays a premium
whether or not the option is exercised. Additionally, the Fund 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 Fund writes an option, the premium received by the Fund 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 Fund on the expiration date as realized gains from options
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 Fund has
realized a gain or loss. If a put option is exercised, the premium received
reduces the cost basis of the security or currency purchased by the Fund. In
writing an option, the Fund 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 Fund could result in the Fund selling or buying a
security or currency at a price different from the current market value.
3. Interest Rate Swap Agreements
The Fund enters into currency and interest rate swap agreements to protect
itself from foreign currency and interest rate fluctuations on the underlying
debt instruments. A swap is an agreement that obligates two parties to exchange
a series of cash flows at specified intervals based upon or calculated by
reference to changes in specified prices or rates for a specified amount of an
underlying asset. The payment flows are usually netted against each other, with
the difference being paid by one party to the other.
Risks may arise as a result of the failure of the counterparty to the swap
contract to comply with the terms of the swap contract. The loss incurred by
the failure of a counterparty is generally limited to the net interest payment
to be received by the Fund, and/or the termination value at the end of the
contract. Therefore, the Fund considers the creditworthiness of each
counterparty to a swap contract in evaluating potential credit risk.
Additionally, risks may arise from unanticipated movements in interest rates or
in the value of the foreign securities or currencies.
- -------------------------------------------------------------------------------
28 o ALLIANCEBERNSTEIN GLOBAL STRATEGIC INCOME TRUST
The Fund records a net receivable or payable on a daily basis for the net
interest income or expense expected to be received or paid in the interest
period. Net interest received or paid on these contracts is recorded as
interest income (or as an offset to interest income). Fluctuations in the value
of swap contracts are recorded for financial statement purposes as a component
of net change in unrealized appreciation or depreciation of investments.
Realized gains and losses from terminated swap contracts are included in net
realized gain or loss on investment transactions.
NOTE E
Distributions to Shareholders
The tax character of distributions to be paid for the year ending October 31,
2003 will be determined at the end of the current fiscal year. Based on the
operations of the Fund as of the semi-annual date, and its distribution policy,
the Fund may have a non-taxable distribution at year end. At this time, the
amount of this non-taxable distribution is not estimable. The tax character of
distributions paid during the fiscal years ended October 31, 2002 and October
31, 2001 were as follows:
2002 2001
------------- -------------
Distributions paid from:
Ordinary income $ 13,005,233 $ 17,383,529
------------- -------------
Total taxable distributions 13,005,233 17,383,529
Tax return of capital 3,082,719 6,788,155
------------- -------------
Total distributions paid $ 16,087,952(a) $ 24,171,684(a)
============= =============
As of October 31, 2002, the components of accumulated earnings/(deficit) on a
tax basis were as follows:
Accumulated capital and other losses $(50,625,639)(b)
Unrealized appreciation/(depreciation) (11,223,644)(c)
------------
Total accumulated earnings/(deficit) $(61,849,283)
============
(a) Total distributions paid differ from the Statement of Changes in Net
Assets because for tax purposes dividends are recognized when actually paid.
(b) On October 31, 2002, the Fund had a net capital loss carryforward of
$48,516,326 of which $2,125,545 expires in the year 2007, $2,393,347 expires in
the year 2008, $20,176,263 expires in the year 2009 and $23,821,171 expires in
the year 2010. To the extent future capital gains are offset by capital loss
carryforward, such gains will not be distributed. As of October 31, 2002, the
Fund deferred tax straddle losses of $2,109,313.
(c) The difference between book-basis and tax-basis unrealized
appreciation/(depreciation) is attributable primarily to the tax deferral of
losses on wash sales, the realization for tax purposes of unrealized
gains/losses on certain derivative instruments and the difference between book
and tax amortization methods for premium and market discount.
- -------------------------------------------------------------------------------
ALLIANCEBERNSTEIN GLOBAL STRATEGIC INCOME TRUST o 29
NOTE F
Capital Stock
There are 12,000,000,000 shares of $0.001 par value capital stock authorized,
divided into four classes, designated Class A, Class B, Class C and Advisor
Class shares. Each class consists of 3,000,000,000 authorized shares.
Transactions in capital stock were as follows:
Shares Amount
--------------------------- ------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
April 30, 2003 October 31, April 30, 2003 October 31,
(unaudited) 2002 (unaudited) 2002
------------ ------------ -------------- --------------
Class A
Shares sold 1,507,260 1,483,284 $ 12,713,251 $ 11,960,454
- -------------------------------------------------------------------------------
Shares issued in
reinvestment of
dividends and
distributions 109,985 289,896 904,343 2,358,008
- -------------------------------------------------------------------------------
Shares converted
from Class B 101,329 122,558 595,538 997,518
- -------------------------------------------------------------------------------
Shares redeemed (1,776,617) (3,751,022) (14,569,170) (30,421,849)
- -------------------------------------------------------------------------------
Net decrease (58,043) (1,855,284) $ (356,038) $(15,105,869)
===============================================================================
Class B
Shares sold 1,139,844 2,121,171 $ 9,448,099 $ 17,457,066
- -------------------------------------------------------------------------------
Shares issued in
reinvestment of
dividends and
distributions 188,950 553,298 1,554,593 4,503,158
- -------------------------------------------------------------------------------
Shares converted
to Class A (101,115) (122,611) (595,538) (997,518)
- -------------------------------------------------------------------------------
Shares redeemed (1,902,335) (6,005,035) (15,819,009) (48,803,169)
- -------------------------------------------------------------------------------
Net decrease (674,656) (3,453,177) $ (5,411,855) $(27,840,463)
===============================================================================
Class C
Shares sold 244,958 497,879 $ 2,046,139 $ 4,114,271
- -------------------------------------------------------------------------------
Shares issued in
reinvestment of
dividends and
distributions 28,787 116,034 237,354 948,153
- -------------------------------------------------------------------------------
Shares redeemed (398,854) (1,937,486) (3,288,243) (15,738,076)
- -------------------------------------------------------------------------------
Net decrease (125,109) (1,323,573) $ (1,004,750) $(10,675,652)
===============================================================================
- -------------------------------------------------------------------------------
30 o ALLIANCEBERNSTEIN GLOBAL STRATEGIC INCOME TRUST
Shares Amount
--------------------------- ------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
April 30, 2003 October 31, April 30, 2003 October 31,
(unaudited) 2002 (unaudited) 2002
------------ ------------ -------------- --------------
Advisor Class
Shares sold 420 19,343 $ 3,508 $ 159,174
- -------------------------------------------------------------------------------
Shares issued in
reinvestment of
dividends and
distributions 6,314 12,739 51,884 104,101
- -------------------------------------------------------------------------------
Shares redeemed (6,540) (16,894) (55,320) (135,552)
- -------------------------------------------------------------------------------
Net increase 194 15,188 $ 72 $ 127,723
===============================================================================
NOTE G
Joint Credit Facility
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 for 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
miscellaneous expenses in the statement of operations. The Fund did not utilize
the Facility during the six months ended April 30, 2003.
NOTE H
Restricted Security
Date Acquired U.S. $ Cost
--------------- ---------------
United Pan Europe Communications
convertible preferred 11/29/00 $3,000,000
The security shown above is restricted as to resale and has been valued at fair
value in accordance with the procedures described in Note A. The Fund will not
bear any costs, including those involved in registration under the Securities
Act of 1933, in connection with the disposition of this security.
The value of this security at April 30, 2003 was $30,000 representing 0.02% of
net assets.
- -------------------------------------------------------------------------------
ALLIANCEBERNSTEIN GLOBAL STRATEGIC INCOME TRUST o 31
FINANCIAL HIGHLIGHTS
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
Class A
----------------------------------------------------------------------------
Six Months
Ended
April 30, Year Ended October 31,
2003 ---------------------------------------------------------------
(unaudited) 2002(a) 2001 2000 1999 1998
----------- ----------- ----------- ----------- ----------- -----------
Net asset value,
beginning of period $7.75 $8.43 $9.53 $9.91 $10.18 $11.46
- ------------------------------------------------------------------------------------------------------------------------
Income From Investment
Operations
Net investment income(b) .29 .63 .78 .83 .94 .78(c)
Net realized and unrealized
gain (loss) on investment and
foreign currency transactions .88 (.67) (.90) (.22) (.22) (.64)
- ------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in
net asset value from
operations 1.17 (.04) (.12) .61 .72 .14
- ------------------------------------------------------------------------------------------------------------------------
Less: Dividends and
Distributions
Dividends from net
investment income (.30) (.52) (.71) (.83) (.94) (.78)
Distributions in excess of
net investment income -0- -0- -0- (.16) (.05) (.28)
Distributions from net realized
gain on investments -0- -0- -0- -0- -0- (.36)
- ------------------------------------------------------------------------------------------------------------------------
Tax return of capital -0- (.12) (.27) -0- -0- -0-
- ------------------------------------------------------------------------------------------------------------------------
Total dividends and
distributions (.30) (.64) (.98) (.99) (.99) (1.42)
- ------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $8.62 $7.75 $8.43 $9.53 $9.91 $10.18
- ------------------------------------------------------------------------------------------------------------------------
Total Return
Total investment return based
on net asset value(d) 15.39% (.50)% (1.50)% 6.12% 7.17% 1.00%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted) $42,490 $38,631 $57,667 $52,561 $33,813 $24,576
Ratio to average net assets of:
Expenses, net of waivers/
reimbursements 1.63%(e) 1.53% 1.45% 1.54% 1.77% 1.89%
Expenses, before waivers/
reimbursements 1.63%(e) 1.53% 1.45% 1.54% 1.77% 2.08%
Net investment income 7.05%(e) 7.71% 8.60% 8.32% 9.34% 7.08%(c)
Portfolio turnover rate 71% 268% 304% 321% 254% 183%
See footnote summary on page 36.
- -------------------------------------------------------------------------------
32 o ALLIANCEBERNSTEIN GLOBAL STRATEGIC INCOME TRUST
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
Class B
----------------------------------------------------------------------------
Six Months
Ended
April 30, Year Ended October 31,
2003 ---------------------------------------------------------------
(unaudited) 2002(a) 2001 2000 1999 1998
----------- ----------- ----------- ----------- ----------- -----------
Net asset value,
beginning of period $7.74 $8.42 $9.52 $9.90 $10.17 $11.46
- ------------------------------------------------------------------------------------------------------------------------
Income From Investment
Operations
Net investment income(b) .26 .57 .71 .76 .87 .69(c)
Net realized and unrealized
gain (loss) on investment and
foreign currency transactions .90 (.67) (.90) (.23) (.22) (.63)
- ------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in
net asset value from
operations 1.16 (.10) (.19) .53 .65 .06
- ------------------------------------------------------------------------------------------------------------------------
Less: Dividends and
Distributions
Dividends from net
investment income (.28) (.47) (.65) (.76) (.87) (.69)
Distributions in excess of
net investment income -0- -0- -0- (.15) (.05) (.30)
Distributions from net realized
gain on investments -0- -0- -0- -0- -0- (.36)
Tax return of capital -0- (.11) (.26) -0- -0- -0-
- ------------------------------------------------------------------------------------------------------------------------
Total dividends and
distributions (.28) (.58) (.91) (.91) (.92) (1.35)
- ------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $8.62 $7.74 $8.42 $9.52 $9.90 $10.17
- ------------------------------------------------------------------------------------------------------------------------
Total Return
Total investment return based
on net asset value(d) 15.13% (1.23)% (2.24)% 5.38% 6.44% .27%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted) $124,975 $117,529 $156,948 $118,356 $79,085 $58,058
Ratio to average net assets of:
Expenses, net of waivers/
reimbursements 2.34%(e) 2.24% 2.16% 2.27% 2.47% 2.58%
Expenses, before waivers/
reimbursements 2.34%(e) 2.24% 2.16% 2.27% 2.47% 2.76%
Net investment income 6.36%(e) 7.02% 7.85% 7.66% 8.54% 6.41%(c)
Portfolio turnover rate 71% 268% 304% 321% 254% 183%
See footnote summary on page 36.
- -------------------------------------------------------------------------------
AllianceBernstein Global Strategic Income Trust o 33
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
Class C
----------------------------------------------------------------------------
Six Months
Ended
April 30, Year Ended October 31,
2003 ---------------------------------------------------------------
(unaudited) 2002(a) 2001 2000 1999 1998
----------- ----------- ----------- ----------- ----------- -----------
Net asset value,
beginning of period $7.75 $8.43 $9.52 $9.90 $10.17 $11.46
- ------------------------------------------------------------------------------------------------------------------------
Income From Investment
Operations
Net investment income(b) .26 .57 .72 .77 .88 .68(c)
Net realized and unrealized
gain (loss) on investment and
foreign currency transactions .89 (.67) (.90) (.24) (.23) (.62)
- ------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in
net asset value from
operations 1.15 (.10) (.18) .53 .65 .06
- ------------------------------------------------------------------------------------------------------------------------
Less: Dividends and
Distributions
Dividends from net
investment income (.28) (.47) (.65) (.76) (.88) (.68)
Distributions in excess of
net investment income -0- -0- -0- (.15) (.04) (.31)
Distributions from net realized
gain on investments -0- -0- -0- -0- -0- (.36)
Tax return of capital -0- (.11) (.26) -0- -0- -0-
- ------------------------------------------------------------------------------------------------------------------------
Total dividends and
distributions (.28) (.58) (.91) (.91) (.92) (1.35)
- ------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $8.62 $7.75 $8.43 $9.52 $9.90 $10.17
- ------------------------------------------------------------------------------------------------------------------------
Total Return
Total investment return based
on net asset value(d) 14.98% (1.22)% (2.13)% 5.38% 6.44% .27%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted) $21,304 $20,113 $33,035 $32,345 $22,598 $16,067
Ratio to average net assets of:
Expenses, net of waivers/
reimbursements 2.34%(e) 2.23% 2.15% 2.25% 2.46% 2.58%
Expenses, before waivers/
reimbursements 2.34%(e) 2.23% 2.15% 2.25% 2.46% 2.77%
Net investment income 6.37%(e) 7.00% 7.90% 7.68% 8.52% 6.43%(c)
Portfolio turnover rate 71% 268% 304% 321% 254% 183%
See footnote summary on page 36.
- -------------------------------------------------------------------------------
34 o ALLIANCEBERNSTEIN GLOBAL STRATEGIC INCOME TRUST
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
Advisor Class
------------------------------------------------------------------------------
Six Months
Ended December 18,
April 30, Year Ended October 31, 1997(f) to
2003 -------------------------------------------------- 0ctober 31,
(unaudited) 2002(a) 2001 2000 1999 1998
----------- ----------- ----------- ----------- ----------- -----------
Net asset value, beginning
of period $7.74 $8.43 $9.53 $9.92 $10.18 $11.09
- ------------------------------------------------------------------------------------------------------------------------
Income From Investment
Operations
Net investment income(b) .30 .65 .80 .88 .98 .85(c)
Net realized and unrealized
gain (loss) on investment and
foreign currency transactions .90 (.67) (.89) (.25) (.22) (.84)
- ------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net asset value
from operations 1.20 (.02) (.09) .63 .76 .01
- ------------------------------------------------------------------------------------------------------------------------
Less: Dividends and
Distributions
Dividends from net
investment income (.32) (.54) (.73) (.86) (.98) (.85)
Distributions in excess of net
investment income -0- -0- -0- (.16) (.04) (.07)
Tax return capital -0- (.13) (.28) -0- -0- -0-
- ------------------------------------------------------------------------------------------------------------------------
Total dividends and
distributions (.32) (.67) (1.01) (1.02) (1.02) (.92)
- ------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $8.62 $7.74 $8.43 $9.53 $9.92 $10.18
- ------------------------------------------------------------------------------------------------------------------------
Total Return
Total investment return based
on net asset value(d) 15.72% (.31)% (1.19)% 6.33% 7.58% .07%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted) $1,513 $1,358 $1,350 $2,658 $1,359 $1,133
Ratio to average net assets of:
Expenses, net of waivers/
reimbursements 1.33%(e) 1.24% 1.13% 1.23% 1.45% 1.58%(e)
Expenses, before waivers/
reimbursements 1.33%(e) 1.24% 1.13% 1.23% 1.45% 1.77%(e)
Net investment income 7.36%(e) 8.08% 8.81% 8.71% 9.52% 7.64%(c)(e)
Portfolio turnover rate 71% 268% 304% 321% 254% 183%
See footnote summary on page 36.
- -------------------------------------------------------------------------------
ALLIANCEBERNSTEIN GLOBAL STRATEGIC INCOME TRUST o 35
(a) As required, effective November 1, 2001, the Fund has adopted the
provisions of the AICPA Audit and Accounting Guide, Audits of Investment
Companies, and began amortizing premium on debt securities for financial
statement reporting purposes only. The effect of this change for the year ended
October 31, 2002 was to decrease net investment income per share by $.03,
increase net realized and unrealized loss on investments per share by $.03 for
Class A, B, C and Advisor Class, respectively, and decrease the ratio of net
investment income to average net assets from 8.03% to 7.71% for Class A, from
7.34% to 7.02% for Class B, from 7.32% to 7.00% for Class C and from 8.40% to
8.08% for Advisor Class. Per share, ratios and supplemental data for periods
prior to November 1, 2001 have not been restated to reflect this change in
presentation.
(b) Based on average shares outstanding.
(c) Net of expenses waived/reimbursed by the Adviser.
(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. Initial sales charge or contingent
deferred sales charge is not reflected in the calculation of the total
investment return. Total investment return does not reflect the deduction of
taxes that a shareholder would pay on fund distributions or the redemption of
fund shares. Total investment return calculated for a period of less than one
year is not annualized.
(e) Annualized.
(f) Commencement of distribution.
- -------------------------------------------------------------------------------
36 o ALLIANCEBERNSTEIN GLOBAL STRATEGIC INCOME TRUST
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)
Clifford L. Michel(1)
Donald J. Robinson(1)
OFFICERS
Kathleen A. Corbet, Senior Vice President
Douglas J. Peebles, Vice President
Edmund P. Bergan, Jr., Secretary
Mark D. Gersten, Treasurer & Chief Financial Officer
Vincent S. Noto, Controller
Custodian
Brown Brothers Hartman & Co.
40 Water Street
Boston, MA 02109
Principal Underwriter
AllianceBernstein Investment
Research and Management, Inc.
1345 Avenue of the Americas
New York, NY 10105
Legal Counsel
Seward & Kissel LLP
One Battery Park Plaza
New York, NY 10004
Transfer Agent
Alliance Global Investor Services, Inc.
P.O. Box 786003
San Antonio, TX 78278-6003
Toll-free (800) 221-5672
Independent Auditors
Ernst & Young LLP
5 Times Square
New York, NY 10036
(1) Member of the Audit Committee.
- -------------------------------------------------------------------------------
ALLIANCEBERNSTEIN GLOBAL STRATEGIC INCOME TRUST o 37
ALLIANCEBERNSTEIN FAMILY OF FUNDS
U.S. Growth Funds
Growth Fund
Health Care Fund
Mid-Cap Growth Fund
Premier Growth Fund
Quasar Fund
Technology Fund
Value Funds
Disciplined Value Fund
Global Value Fund
Growth & Income Fund
International Value Fund
Real Estate Investment Fund
Small CapValue Fund
Utility Income Fund
Value Fund
Blended Style Series
U.S. Large Cap Portfolio
Global & International Stock Funds
All-Asia Investment Fund
Global Small Cap Fund
Greater China '97 Fund
International Premier Growth Fund
New Europe Fund
Worldwide Privatization Fund
Select Investor Series
Biotechnology Portfolio
Premier Portfolio
Small Cap Growth Portfolio
Technology Portfolio
Taxable Bond Funds
Americas Government Income Trust
Corporate Bond Portfolio
Emerging Market Debt Fund
Global Strategic Income Trust
High Yield Fund
Multi-Market Strategy Trust
Quality Bond Portfolio
U.S. Government Portfolio
Tax-Exempt Bond Funds
National
Intermediate Diversified
Insured National
Arizona
California
Intermediate California
Insured California
Florida
Massachusetts
Michigan
Minnesota
New Jersey
New York
Intermediate New York
Ohio
Pennsylvania
Virginia
Asset Allocation Funds
Balanced Shares
Conservative Investors Fund
Growth Investors Fund
Closed-End Funds
All-Market Advantage Fund
ACM Income Fund
ACMGovernment Opportunity Fund
ACMManaged Dollar Income Fund
ACM Managed Income Fund
ACM Municipal Securities Income Fund
California Municipal Income Fund
National Municipal Income Fund
New York Municipal Income Fund
The Spain Fund
World Dollar Government Fund
World Dollar Government Fund II
AllianceBernstein also offers AllianceBernstein Exchange Reserves, which serves
as the money market fund exchange vehicle for the AllianceBernstein mutual
funds.
To obtain a prospectus for any AllianceBernstein fund, call your investment
professional, or call AllianceBernstein at (800) 227-4618 or visit our web site
at www.alliancebernstein.com.
- -------------------------------------------------------------------------------
38 o ALLIANCEBERNSTEIN GLOBAL STRATEGIC INCOME TRUST
NOTES
- -------------------------------------------------------------------------------
ALLIANCEBERNSTEIN GLOBAL STRATEGIC INCOME TRUST o 39
NOTES
- -------------------------------------------------------------------------------
40 o ALLIANCEBERNSTEIN GLOBAL STRATEGIC INCOME TRUST
AllianceBernstein Global Strategic Income Trust
1345 Avenue of the Americas
New York, NY 10105
(800) 221-5672
[LOGO] AllianceBernstein (SM)
Investment Research and Management
SM This service mark used under license from the owner, Alliance Capital
Management L.P.
GSIFSR0403
ITEM 2. CODE OF ETHICS.
Not applicable when filing a Semi-Annual report to shareholders.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable when filing a Semi-Annual report to shareholders.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable when filing a Semi-Annual report to shareholders.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to the registrant.
ITEM 6. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable to the registrant.
ITEM 8. [RESERVED]
ITEM 9. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive officer and principal financial officer
have concluded that the registrant's disclosure controls and procedures (as
defined in Rule 30a-2(c) under the Investment Company Act of 1940, as amended)
are effective based on their evaluation of these controls and procedures as of a
date within 90 days of the filing date of this document.
(b) There were no significant changes in the registrant's internal controls or
in other factors that could significantly affect these controls subsequent to
the date of their evaluation, including any corrective actions with regard to
significant deficiencies and material weaknesses.
ITEM 10. EXHIBITS.
The following exhibits are attached to this Form N-CSR:
Exhibit No. DESCRIPTION OF EXHIBIT
10 (b) (1) Certification of Principal Executive Officer Pursuant
to Section 302 of the Sarbanes-Oxley Act of 2002
10 (b) (2) Certification of Principal Financial Officer Pursuant
to Section 302 of the Sarbanes-Oxley Act of 2002
10 (c) Certification of Principal Executive Officer and
Principal Financial Officer Pursuant to Section 906 of
the Sarbanes-Oxley Act of 2002
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant): AllianceBernstein Global Strategic Income Trust, Inc.
By: /s/John D. Carifa
---------------------------------
John D. Carifa
President
Date: June 30, 2003
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /s/John D. Carifa
---------------------------------
John D. Carifa
President
Date: June 30, 2003
By: /s/Mark D. Gersten
-------------------------------
Mark D. Gersten
Treasurer and Chief Financial Officer
Date: June 30, 2003