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: 811-05398
AllianceBernstein Variable Products Series Fund, 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: December 31, 2003
Date of reporting period: June 30, 2003
ITEM 1. REPORTS TO STOCKHOLDERS.
ALLIANCEBERNSTEIN
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VARIABLE PRODUCTS
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SERIES FUND
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ALLIANCEBERNSTEIN
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U.S. LARGE CAP
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BLENDED STYLE
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PORTFOLIO
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SEMI-ANNUAL REPORT
JUNE 30, 2003
Investment Products Offered
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> Are Not FDIC Insured
> May Lose Value
> Are Not Bank Guaranteed
-------------------------
U.S. LARGE CAP BLENDED STYLE PORTFOLIO
TEN LARGEST HOLDINGS
June 30, 2003 (unaudited) AllianceBernstein Variable Products Series Fund
================================================================================
- --------------------------------------------------------------------------------
COMPANY U.S. $ VALUE PERCENT OF
NET ASSETS
- --------------------------------------------------------------------------------
Pfizer, Inc. $ 76,837 4.3%
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Microsoft Corp. 73,629 4.2
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Citigroup, Inc. 68,480 3.9
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Washington Mutual, Inc. 61,950 3.5
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Wal-Mart Stores, Inc. 49,645 2.8
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Viacom, Inc. Cl.B 48,026 2.7
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General Electric Co. 44,454 2.5
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Johnson & Johnson 43,945 2.5
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American International Group, Inc. 40,005 2.2
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Safeway, Inc. 36,316 2.0
-------- ----
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$543,287 30.6%
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1
U.S. LARGE CAP BLENDED STYLE PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 2003 (unaudited) AllianceBernstein Variable Products Series Fund
================================================================================
Company Shares U.S. $ Value
- --------------------------------------------------------------------------------
COMMON STOCKS-79.5%
FINANCE-18.9%
BANKING-REGIONAL-2.8%
Bank of America Corp. ......................... 450 $ 35,564
FleetBoston Financial Corp. ................... 500 14,855
-------------
50,419
-------------
INSURANCE-6.1%
American International
Group, Inc. ................................ 725 40,005
John Hancock Financial
Services, Inc. ............................. 700 21,511
Metlife, Inc. ................................. 750 21,240
Renaissancere Holdings
(Bermuda) .................................. 250 11,380
Travelers Property Casualty
Corp. Cl.A ................................. 900 14,310
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108,446
-------------
MORTGAGE BANKING-4.1%
Fannie Mae .................................... 150 10,116
Washington Mutual, Inc. ....................... 1,500 61,950
-------------
72,066
-------------
MISCELLANEOUS-5.9%
Citigroup, Inc. ............................... 1,600 68,480
MBNA Corp. .................................... 1,700 35,428
-------------
103,908
-------------
334,839
-------------
HEALTH CARE-16.1%
BIOTECHNOLOGY-1.7%
Amgen, Inc. (a) ............................... 450 29,898
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DRUGS-9.0%
GlaxoSmithKline Plc (ADR)
(United Kingdom) ........................... 675 27,365
Merck & Co., Inc. ............................. 575 34,816
Pfizer, Inc. .................................. 2,250 76,837
Schering-Plough Corp. ......................... 1,150 21,390
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160,408
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MEDICAL PRODUCTS-4.1%
Johnson & Johnson ............................. 850 43,945
Medtronic, Inc. ............................... 600 28,782
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72,727
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MEDICAL SERVICES-1.3%
UnitedHealth Group, Inc. ...................... 450 22,613
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285,646
-------------
TECHNOLOGY-12.6%
COMMUNICATION
EQUIPMENT-2.9%
ADC Telecommunications,
Inc. (a) ................................... 5,700 13,270
Cisco Systems, Inc. (a) ....................... 1,600 26,704
Nokia Corp. (ADR) (Finland) ................... 650 10,679
-------------
50,653
-------------
COMPUTER HARDWARE/
STORAGE-4.0%
Dell Computer Corp. (a) ....................... 1,100 35,156
Hewlett-Packard Co. ........................... 1,700 36,210
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71,366
-------------
CONTRACT
MANUFACTURING-1.6%
Flextronics International,
Ltd. (Singapore) (a) ....................... 1,200 12,468
Solectron Corp. (a) ........................... 4,000 14,960
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27,428
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SOFTWARE-4.1%
Microsoft Corp. ............................... 2,875 73,629
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223,076
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CONSUMER
SERVICES-9.7%
BROADCASTING &
CABLE-3.9%
Comcast Corp. Special
Cl. A (a) .................................. 750 21,622
Viacom, Inc. Cl.B (a) ......................... 1,100 48,026
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69,648
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CELLULAR
COMMUNICATIONS-0.6%
Sprint Corp.
(PCS Group) (a) ............................ 2,000 11,500
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PRINTING &
PUBLISHING-0.7%
R.R. Donnelley & Sons Co. ..................... 450 11,763
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RETAIL-GENERAL
MERCHANDISE-4.5%
Kohl's Corp. (a) .............................. 600 30,828
Wal-Mart Stores, Inc. ......................... 925 49,645
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80,473
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173,384
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UTILITIES-5.6%
ELECTRIC & GAS
UTILITY-4.4%
American Electric Power
Co., Inc. .................................. 1,150 34,304
Entergy Corp. ................................. 325 17,153
Northeast Utilities ........................... 875 14,648
PPL Corp. ..................................... 275 11,825
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77,930
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TELEPHONE UTILITY-1.2%
Sprint Corp. (FON Group) ...................... 1,500 21,600
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99,530
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2
AllianceBernstein Variable Products Series Fund
================================================================================
Company Shares U.S. $ Value
- --------------------------------------------------------------------------------
CONSUMER
STAPLES-4.0%
HOUSEHOLD
PRODUCTS-0.6%
Procter & Gamble Co. ......................... 125 $ 11,148
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RETAIL-FOOD &
DRUG-2.1%
Safeway, Inc. (a) ............................ 1,775 36,316
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TOBACCO-1.3%
Altria Group, Inc. ........................... 500 22,720
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70,184
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TRANSPORTATION-3.0%
RAILROAD-3.0%
Burlington Northern
Santa Fe Corp. ............................ 200 5,688
CSX Corp. .................................... 700 21,063
Norfolk Southern Corp. ....................... 1,400 26,880
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53,631
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CAPITAL GOODS-2.8%
MACHINERY-0.3%
Parker-Hannifin Corp. ........................ 125 5,249
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MISCELLANEOUS-2.5%
General Electric Co. ......................... 1,550 44,454
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49,703
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ENERGY-1.8%
MISCELLANEOUS-1.8%
ConocoPhillips ............................... 400 21,920
Valero Energy Corp. .......................... 250 9,082
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31,002
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Shares or
Principal
Amount
Company (000) U.S. $ Value
- --------------------------------------------------------------------------------
CONSUMER
MANUFACTURING-3.1%
AUTO & RELATED-2.1%
Lear Corp. (a) ............................... 550 $ 25,311
Magna International, Inc.
Cl.A ...................................... 175 11,772
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37,083
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ELECTRONICS-1.0%
Cooper Industries, Ltd.
Cl.A (a) .................................. 450 18,585
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55,668
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BASIC INDUSTRY-1.2%
PAPER & FOREST
PRODUCTS-1.2%
Smurfit-Stone Container
Corp. (a) ................................. 1,550 20,197
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MULTI-INDUSTRY
COMPANIES-0.7%
Textron, Inc. ................................ 325 12,682
-------------
Total Common Stocks
(cost $1,433,710) ......................... 1,409,542
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SHORT-TERM
INVESTMENT-23.4%
REPURCHASE
AGREEMENT-23.4%
State Street Bank and Trust Co.
0.75%, dated 6/30/03, due
7/01/03 in the amount of
416,009 (cost $416,000;
collateralized by $405,000
U.S. Treasury Note, 3.50%,
due 11/15/06, value $428,224)
(cost $416,000) ........................... $ 416 416,000
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TOTAL INVESTMENTS-102.9%
(cost $1,849,710) ......................... 1,825,542
Other assets less liabilities-(2.9%) ......... (51,379)
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NET ASSETS-100% .............................. $ 1,774,163
=============
- --------------------------------------------------------------------------------
(a) Non-income producing security.
Glossary:
ADR-American Depositary Receipt
See Notes to Financial Statements.
3
U.S. LARGE CAP BLENDED STYLE PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2003 (unaudited) AllianceBernstein Variable Products Series Fund
================================================================================
ASSETS
Investments in securities, at value (cost $1,433,710) ...... $ 1,409,542
Repurchase Agreements, at value (cost $416,000) ............ 416,000
Cash ....................................................... 927
Receivable due from Adviser ................................ 6,102
Dividends and interest receivable .......................... 852
-----------
Total assets ............................................... 1,833,423
-----------
LIABILITIES
Payable for investment securities purchased ................ 52,032
Distribution fee payable ................................... 67
Payable for shares of capital stock redeemed ............... 11
Accrued expenses ........................................... 7,150
-----------
Total liabilities .......................................... 59,260
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NET ASSETS .................................................... $ 1,774,163
===========
COMPOSITION OF NET ASSETS
Capital stock, at par ...................................... $ 180
Additional paid-in capital ................................. 1,798,155
Undistributed net investment loss .......................... (4)
Net unrealized depreciation of investments ................. (24,168)
-----------
$ 1,774,163
===========
Class A Shares
Net assets ................................................. $ 990,022
===========
Shares of capital stock outstanding ........................ 100,000
===========
Net asset value per share .................................. $ 9.90
===========
Class B Shares
Net assets ................................................. $ 784,141
===========
Shares of capital stock outstanding ........................ 79,599
===========
Net asset value per share .................................. $ 9.85
===========
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
4
U.S. LARGE CAP BLENDED STYLE PORTFOLIO
STATEMENT OF OPERATIONS
May 2, 2003 (a) to June 30, 2003 (unaudited)
AllianceBernstein Variable Products Series Fund
================================================================================
INVESTMENT INCOME
Dividends ............................................................. $ 843
Interest .............................................................. 268
--------
Total investment income ............................................... 1,111
--------
EXPENSES
Advisory fee .......................................................... 828
Distribution fee--Class B ............................................. 67
Audit and legal ....................................................... 4,950
Administrative ........................................................ 4,500
Custodian ............................................................. 1,320
Printing .............................................................. 594
Directors' fees and expenses .......................................... 110
Transfer agency ....................................................... 66
Miscellaneous ......................................................... 110
--------
Total expenses ........................................................ 12,545
Less: expenses waived and reimbursed (see Note B) ..................... (11,430)
--------
Net expenses .......................................................... 1,115
--------
Net investment loss ................................................... (4)
--------
REALIZED AND UNREALIZED LOSS ON INVESTMENTS
Net change in unrealized appreciation/depreciation of investments ..... (24,168)
--------
NET DECREASE IN NET ASSETS FROM OPERATIONS ............................... $(24,172)
========
- --------------------------------------------------------------------------------
(a) Commencement of operations.
See Notes to Financial Statements.
5
U.S. LARGE CAP BLENDED STYLE PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
AllianceBernstein Variable Products Series Fund
================================================================================
May 2, 2003 (a) to
June 30, 2003
(unaudited)
==================
DECREASE IN NET ASSETS FROM OPERATIONS
Net investment loss ............................................. $ (4)
Net change in unrealized appreciation/depreciation of investments (24,168)
-----------
Net decrease in net assets from operations ...................... (24,172)
CAPITAL STOCK TRANSACTIONS
Net increase .................................................... 1,798,335
-----------
Total increase .................................................. 1,774,163
NET ASSETS
Beginning of period ............................................. -0-
-----------
End of period ................................................... $ 1,774,163
===========
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(a) Commencement of operations.
See Notes to Financial Statements.
6
U.S. LARGE CAP BLENDED STYLE PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
June 30, 2003 (unaudited) AllianceBernstein Variable Products Series Fund
================================================================================
NOTE A: Significant Accounting Policies
The AllianceBernstein U.S.Large Cap Blended Style Portfolio (the "Portfolio") is
a series of AllianceBernstein Variable Products Series Fund, Inc. (the "Fund"),
formerly Alliance Variable Products Series Fund, Inc. The Portfolio's investment
objective is to seek long-term growth of capital. The Fund was incorporated in
the State of Maryland on November 17, 1987, as an open-end series investment
company. The Fund offers twenty separately managed pools of assets which have
differing investment objectives and policies. The Portfolio commenced operations
on May 2, 2003. The Portfolio 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 Portfolio 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
the Portfolio's net asset value per share.
The financial statements have been prepared in conformity with accounting
principles generally accepted in the United States, which require management to
make certain estimates and assumptions that affect the reported amounts of
assets and liabilities in the financial statements and amounts of income and
expenses during the reporting period. Actual results could differ from those
estimates. 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 Portfolio.
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 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, foreign currency exchange contracts, holding of foreign currencies,
cur-
7
U.S. LARGE CAP BLENDED STYLE PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
(continued) AllianceBernstein Variable Products Series Fund
================================================================================
rency 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 Portfolio'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
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 Portfolio's policy to meet the requirements of the Internal Revenue
Code applicable to regulated investment companies and to distribute all of its
investment company taxable income and net realized gains, if any, to
shareholders. Therefore, no provisions for federal income or excise taxes are
required.
4. Investment Income and Investment Transactions
Dividend income is recorded on the ex-dividend date. Interest income is accrued
daily. Investment transactions are accounted for on the date securities are
purchased or sold. Investment gains and losses are determined on the identified
cost basis. The Portfolio amortizes premiums and accretes discounts as
adjustments to interest income.
5. Income and Expenses
Expenses attributable to a single portfolio are charged to that portfolio.
Expenses of the Fund are charged to each portfolio in proportion to net assets.
All income earned and expenses incurred by a portfolio with multi-class shares
outstanding are borne on a pro-rata basis by each outstanding class of shares,
based on the proportionate interest in the portfolio represented by the net
assets of such class, except that the portfolio's Class B shares bear the
distribution fees.
6. Repurchase Agreements
It is the Portfolio's policy that its custodian or designated subcustodian take
control of securities as collateral under repurchase agreements and to determine
on a daily basis that the value of such securities are sufficient to cover the
value of the repurchase agreements. If the seller defaults and the value of the
collateral declines or if bankruptcy proceedings are commenced with respect to
the seller of the security, realization of collateral by the Portfolio may be
delayed or limited.
7. Dividends and Distributions
The Portfolio declares and distributes dividends and distributions from net
investment income and net realized gains, respectively, if any, at least
annually. Income dividends and capital gains distributions to shareholders are
recorded on the ex-dividend date.
Income dividends and capital gains distributions are determined in accordance
with federal tax regulations and may differ from those determined in accordance
with accounting principles generally accepted in the United States. To the
extent these differences are permanent, such amounts are reclassified within the
capital accounts based on their federal tax basis treatment; temporary
differences do not require such reclassification.
NOTE B: Advisory Fee and Other Transactions with Affiliates
Under the terms of an investment advisory agreement, the Portfolio pays Alliance
Capital Management L.P. (the "Adviser"), an investment advisory fee at an annual
rate of .95% of the first $5 billion of the Fund's average daily net assets,
..90% of the excess over $5 billion up to $7.5 billion of the Fund's average
daily net assets, .85% of the excess over $7.5 billion up to $10 billion of the
Fund's average daily net assets and .80% of the excess over $10 billion of the
Fund's average daily net assets. Such fee is accrued daily and paid monthly.
During the period ended June 30, 2003, the Adviser agreed to waive its fee and
to reimburse the additional operating expenses to the extent necessary to limit
total operating expenses on an annual basis to 1.20% and 1.45% of the average
daily net assets for Class A and Class B shares, respectively. Any expense
waivers or reimbursements are accrued daily and paid monthly. For the period
ended June 30, 2003, the Adviser waived fees in the amount of $6,930.
Pursuant to the terms of the investment advisory agreement, the Portfolio has
agreed to reimburse the Adviser for the cost of providing the Portfolio with
certain legal and accounting services. Because of the Adviser's agreement to
limit total operating expenses as described above, the Adviser waived
reimbursement for such services in the amount of $4,500 for the period ended
June 30, 2003.
Brokerage commissions paid on investment transactions for the period ended June
30, 2003, amounted to $2,365, of which $1,086 was paid to Sanford C. Bernstein &
Co. LLC, an affiliate of the Adviser.
8
AllianceBernstein Variable Products Series Fund
================================================================================
The Portfolio compensates Alliance Global Investor 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
Portfolio. Such compensation amounted to $66 for the period ended June 30, 2003.
NOTE C: Distribution Plan
The Portfolio has adopted a Distribution Plan (the "Plan") for Class B shares
pursuant to Rule 12b-1 under the Investment Company Act of 1940. Under the Plan,
the Portfolio pays distribution and servicing fees to AllianceBernstein
Investment Research and Management, Inc., (the "Distributor"), formerly Alliance
Fund Distributors, Inc., a wholly-owned subsidiary of the Adviser, at an annual
rate of up to .50 of 1% of the Portfolio's average daily net assets attributable
to the Class B shares. The fees are accrued daily and paid monthly. The Board of
Directors currently limits payments under the Plan to .25 of 1% of the
Portfolio's average daily net assets attributable to Class B shares. The Plan
provides that the Distributor will use such payments in their entirety for
distribution assistance and promotional activities.
The Portfolio is not obligated under the Plan to pay any distribution and
servicing fees in excess of the amounts set forth above. The purpose of the
payments to the Distributor under the Plan is to compensate the Distributor for
its distribution services with respect to the sale of the Portfolio's Class B
shares. Since the Distributor's compensation is not directly tied to its
expenses, the amount of compensation received by it under the Plan during any
year may be more or less than its actual expenses. For this reason, the Plan is
characterized by the staff of the Securities and Exchange Commission as being of
the "compensation" variety.
In the event that the Plan is terminated or not continued, no distribution and
servicing fees (other than current amounts accrued but not yet paid) would be
owed by the Portfolio to the Distributor.
The Plan also provides that the Adviser may use its own resources to finance the
distribution of the Portfolio's shares.
NOTE D: Investment Transactions
Purchases and sales of investment securities (excluding short-term investments)
for the period ended June 30, 2003, were as follows:
Purchases Sales
========== =========
Investment securities ........................ $1,433,710 $ -0-
U.S. government securities ................... -0- -0-
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 are as follows:
Gross unrealized appreciation ............................. $ 13,173
Gross unrealized depreciation ............................. (37,341)
--------
Net unrealized depreciation ............................... $(24,168)
========
1. Forward Exchange Currency Contracts
The Portfolio may enter 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 would be 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 net unrealized appreciation or
depreciation by the Portfolio.
The 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 at least equal to the aggregate amount of the Portfolio'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 Portfolio has in that particular
currency contract.
9
U.S. LARGE CAP BLENDED STYLE PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
(continued) AllianceBernstein Variable Products Series Fund
================================================================================
2. Option Transactions
For hedging and investment purposes, the Portfolio may purchase and write (sell)
put and call options on U.S. and foreign government securities and foreign
currencies 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 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 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 Portfolio 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 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.
NOTE E: Capital Stock
There are 1,000,000,000 shares of $.001 par value capital stock authorized,
divided into two classes, designated Class A and Class B shares. Each class
consists of 500,000,000 authorized shares. Transactions in capital stock were as
follows:
------------------- -------------------
SHARES AMOUNT
------------------- -------------------
June 6, 2003 (a) to June 6, 2003 (a) to
June 30, 2003 June 30, 2003
(unaudited) (unaudited)
=================== ===================
Class A
Shares sold ......................... 100,000 $1,000,000
------- ----------
Net increase ........................ 100,000 $1,000,000
======= ==========
May 2, 2003 (b) to May 2, 2003 (b) to
June 30, 2003 June 30, 2003
(unaudited) (unaudited)
================== ==================
Class B
Shares sold ............................ 79,624 $ 798,589
Shares redeemed ........................ (25) (254)
------- ----------
Net increase ........................... 79,599 $ 798,335
======= ==========
- --------------------------------------------------------------------------------
(a) Commencement of distribution.
(b) Commencement of operations.
10
U.S. LARGE CAP BLENDED STYLE PORTFOLIO
FINANCIAL HIGHLIGHTS AllianceBernstein Variable Products Series Fund
================================================================================
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
------------- -------------
CLASS A CLASS B
------------- -------------
June 6, May 2,
2003(a) to 2003(b) to
June 30, 2003 June 30, 2003
(unaudited) (unaudited)
============= =============
Net asset value, beginning of period ...................... $ 10.00 $ 10.00
------- -------
Income From Investment Operations
Net investment income (c)(d) .............................. -0- -0-
Net realized and unrealized loss on investment transactions (.10) (.15)
------- -------
Net decrease in net asset value from operations ........... (.10) (.15)
------- -------
Net asset value, end of period ............................ $ 9.90 $ 9.85
======= =======
Total Return
Total investment return based on net asset value (e) ...... (1.00)% (1.50)%
Ratios/Supplemental Data
Net assets, end of period (000's omitted) ................. $ 990 $ 784
Ratio to average net assets of:
Expenses, net of waivers and reimbursements (f) ........ 1.20% 1.45%
Expenses, before waivers and reimbursements (f) ........ 13.58% 16.15%
Net investment income (d)(f) ........................... .24% (.55)%
Portfolio turnover rate ................................... 0% 0%
- --------------------------------------------------------------------------------
(a) Commencement of distribution.
(b) Commencement of operations.
(c) Based on average shares outstanding.
(d) Net of expenses reimbursed or waived by the Adviser.
(e) 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 return does not reflect
the deduction of taxes that a shareholder would pay on Portfolio
distributions or redemption of Portfolio shares. Total investment return
calculated for a period of less than one year is not annualized.
(f) Annualized.
11
U.S. LARGE CAP
BLENDED STYLE PORTFOLIO AllianceBernstein 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)
Clifford L. Michel (1)
Donald J. Robinson (1)
OFFICERS
Kathleen A. Corbet, Senior Vice President
Lewis A. Sanders, Senior Vice President
Andrew S. Adelson, Vice President
Andrew Aran, Vice President
Bruce K. Aronow, Vice President
Edward D. Baker III, Vice President
Thomas J. Bardong, Vice President
Matthew D.W. Bloom, Vice President
Russell Brody, Vice President
Frank V. Caruso, Vice President
John F. Chiodi, Vice President
Paul J. DeNoon, Vice President
Joseph C. Dona, Vice President
Marilyn G. Fedak, Vice President
Thomas Kamp, Vice President
Sean Kelleher, Vice President
David A. Kruth, Vice President
Alan E. Levi, Vice President
Michael Levy, Vice President
Gerald T. Malone, Vice President
Michael Mon, Vice President
Ranji H. Nagaswami, Vice President
Daniel Nordby, Vice President
Jimmy K. Pang, Vice President
Raymond J. Papera, Vice President
Joseph G. Paul, Vice President
Douglas J. Peebles, Vice President
Jeffrey S. Phlegar, Vice President
Daniel G. Pine, Vice President
Michael J. Reilly, Vice President
Paul C. Rissman, Vice President
Ivan Rudolph-Shabinsky, Vice President
Kevin F. Simms, Vice President
Michael A. Snyder, Vice President
Annie Tsao, Vice President
Jean Van De Walle, Vice President
Richard A. Winge, Vice President
Sandra Yeager, Vice President
Edmund P. Bergan, Jr., Secretary
Mark D. Gersten, Treasurer and Chief Financial Officer
Thomas R. Manley, Controller
CUSTODIAN
State Street Bank and Trust Company
225 Franklin Street
Boston, MA 02110
DISTRIBUTOR
AllianceBernstein Investment
Research and Management, Inc.
1345 Avenue of the Americas
New York, NY 10105
INDEPENDENT AUDITORS
Ernst & Young LLP
5 Times Square
New York, NY 10036
LEGAL COUNSEL
Seward & Kissel
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 1-(800) 221-5672
- --------------------------------------------------------------------------------
(1) Member of the Audit Committee.
12
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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 at the reasonable assurance level 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
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 Variable Products Series Fund, Inc.
By: /s/John D. Carifa
-------------------------------
John D. Carifa
President
Date: August 22, 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: August 22, 2003
By: /s/Mark D. Gersten
----------------------------------
Mark D. Gersten
Treasurer and Chief Financial Officer
Date: August 22, 2003