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: 811-08426
AllianceBernstein Worldwide Privatization 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: June 30, 2003
Date of reporting period: June 30, 2003
ITEM 1. REPORTS TO STOCKHOLDERS.
[LOGO] ALLIANCEBERNSTEIN(SM) Investment Research and Management
AllianceBernstein Worldwide Privatization Fund
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International
Mid-cap Annual Report--June 30, 2003
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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.
August 5, 2003
Annual Report
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 Worldwide Privatization Fund (the "Fund") for the annual
reporting period ended June 30, 2003.
Investment Objective and Policies
This open-end fund seeks long-term capital appreciation. The Fund invests
substantially all of its assets in equity securities issued by companies that
are undergoing, or have undergone, privatization, and in securities of companies
believed by Alliance to be beneficiaries of privatizations.
Investment Results
The following table provides the performance results for the Fund and the Morgan
Stanley Capital International (MSCI) World (minus the U.S.) Index, as well as
the MSCI Emerging Markets Free (EMF) Index, for the six- and 12-month periods
ended June 30, 2003. We also have included the performance results for the
Fund's benchmark, a 65%/35% composite of the MSCI World (minus the U.S.) Index
and the MSCI EMF Index, respectively, which more closely reflects the Fund's
investment orientation and portfolio characteristics than either of the indices
standing alone.
INVESTMENT RESULTS*
Periods Ended June 30, 2003
--------------------
Returns
--------------------
6 Months 12 Months
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AllianceBernstein Worldwide Privatization Fund
Class A 11.14% 2.32%
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Class B 10.74% 1.55%
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Class C 10.74% 1.55%
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MSCI World (minus the U.S.) Index 10.63% -5.17%
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MSCI EMF Index 16.13% 6.96%
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65%/35% Composite:
MSCI World (minus the U.S.) Index/MSCI EMF Index 12.56% -0.92%
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* 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 June 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 Morgan Stanley Capital International (MSCI) World (minus the
U.S.) Index is a market capitalization-weighted index that measures the
performance of stock markets in 22 countries outside the United States.
The unmanaged MSCI Emerging
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ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND o 1
Markets Free (EMF) Index is a market capitalization-weighted index
composed of companies representative of the market structure of 27
emerging market countries in Europe, Latin America, and the Pacific Basin.
An investor cannot invest directly in an index, and its results are not
indicative of any specific investment, including AllianceBernstein
Worldwide Privatization Fund.
Additional investment results appear on page 5.
During the six- and 12-month periods ended June 30, 2003, the Fund's Class A
shares returned 11.14% and 2.32%, respectively. The Fund's benchmark, a
composite of the MSCI World (minus the U.S.) Index and the MSCI EMF Index,
posted returns of 12.56% and -0.92%, respectively, during the same periods.
Over the 12-month period, the Fund outperformed its composite benchmark due
principally to strong positive contributions from stock selection. Relative
overweight positions in more defensively-oriented European and Japanese
companies drove superior stock selection, as did the Fund's strong exposure to
Mexican and East European financials and Russian energy and telecommunications
stocks. Regional asset allocation also moderately contributed to the Fund's
relative performance, most notably as a result of the Fund's overweight
positions in both the Latin American and the East European, Middle Eastern and
African (EMEA) regions.
Over the six-month period, the Fund moderately underperformed its composite
benchmark due principally to weak returns from the Fund's South Korean and
Japanese holdings.
Market Review and Investment Strategy
During the 12-month reporting period, developed market equities posted
moderately negative returns while their emerging market peers posted positive
returns. Within the developed markets, the Pacific ex-Japan and North American
regions outperformed Europe, while Japan was the worst performer in U.S. dollar
terms. The EMEA region was the strongest performer among emerging markets. Latin
America also posted notably positive returns; however, the Asian region lagged
with negative absolute returns.
Returns over the 12-month period were held back by weak global economic
conditions and geopolitical uncertainty. However, a significant equity market
rally followed the swift resolution of the conflict in Iraq. World governments'
and monetary authorities' attempts to stimulate economic growth appear to have
been received positively. Furthermore, recent economic data has indicated that
economic activity levels may have stabilized. Although corporate earnings have
generally remained weak, the scale of downward earnings revisions has moderated.
The Fund's portfolio continued to emphasize diversification with strong
representation in both developed and emerging markets and across a wide array of
economic sectors. Privatization activity showed some signs of recovery on the
back of improved market conditions, providing the Fund with a range of new
investment opportunities.
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2 o ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND
Performance Update
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PERFORMANCE UPDATE
ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND
GROWTH OF A $10,000 INVESTMENT
5/31/94* - 6/30/03
AllianceBernstein Worldwide Privatization Fund Class A: $15,165
MSCI World (minus the U.S.) Index: $12,096
Composite: $11,008
MSCI Emerging Markets Free Index: $8,208
[THE FOLLOWING TABLE WAS DEPICTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL]
AllianceBernstein MSCI
Worldwide Emerging MSCI World
Privatization Markets (minus the U.S.)
Fund Free Index Index Composite**
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6/2/94* $ 9,578 $10,000 $10,000 $10,000
6/30/94 $ 9,339 $ 9,724 $10,117 $ 9,979
6/30/95 $ 9,750 $ 9,722 $10,378 $10,146
6/30/96 $11,619 $10,546 $11,800 $11,351
6/30/97 $14,542 $11,898 $13,436 $12,883
6/30/98 $15,867 $ 7,248 $14,322 $11,673
6/30/99 $17,431 $ 9,329 $15,422 $13,428
6/30/00 $21,660 $10,213 $18,366 $15,540
6/30/01 $15,853 $ 7,575 $14,039 $11,756
6/30/02 $14,821 $ 7,675 $12,756 $11,111
6/30/03 $15,165 $ 8,208 $12,096 $11,008
This chart illustrates the total value of an assumed $10,000 investment in
AllianceBernstein Worldwide Privatization Fund Class A shares (from 5/31/94* to
6/30/03) as compared to the performance of appropriate indices. Returns do not
reflect the deduction of taxes that a shareholder would pay on fund
distributions or the redemption of fund shares. The chart reflects the deduction
of the maximum 4.25% sales charge from the initial $10,000 investment in the
Fund and assumes the reinvestment of dividends and capital gains. Performance
for Class B, Class C and Advisor Class shares will vary from the results shown
above due to differences in expenses charged to these classes. Past performance
is not indicative of future results, and is not representative of future gain or
loss in capital value or dividend income.
The unmanaged Morgan Stanley Capital International (MSCI) World (minus the U.S.)
Index is a market capitalization-weighted index that measures the performance of
stock markets in 22 countries outside the United States.
The unmanaged MSCI Emerging Markets Free (EMF) Index is a market
capitalization-weighted index composed of companies representative of the market
structure of 27 emerging market countries in Europe, Latin America, and the
Pacific Basin.
When comparing AllianceBernstein Worldwide Privatization Fund to the indices
shown above, you should note that no sales charges are reflected in the
performance of the indices. An investor cannot invest directly in an index, and
its results are not indicative of any specific investment, including
AllianceBernstein Worldwide Privatization Fund.
* Closest month-end to the Fund's Class A share inception date of 6/2/94.
**The composite is a blend of 65% of the MSCI World (minus the U.S.) Index
and 35% of the MSCI EMF Index.
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ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND o 3
Portfolio Summary
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PORTFOLIO SUMMARY
June 30, 2003
INCEPTION DATES PORTFOLIO STATISTICS
Class A Shares Net Assets ($mil): $224.4
6/2/94
Class B Shares
6/2/94
Class C Shares
2/8/95
SECTOR BREAKDOWN
22.0% Finance
19.9% Utilities
19.1% Consumer Services
11.7% Energy
8.1% Transportation
6.0% Health Care [PIE CHART OMITTED]
5.0% Technology
4.1% Basic Industry
2.9% Consumer Staples
0.8% Multi-Industry
0.3% Aerospace & Defense
0.1% Consumer Manufacturing
SECURITY BREAKDOWN
88.2% Common Stock
9.5% American Depositary Receipt [PIE CHART OMITTED]
1.3% Global Depositary Receipt
1.0% Preferred Stock
All data as of June 30, 2003. The Fund's sector and security breakdowns are
expressed as a percentage of total investments and may vary over time.
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4 o ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND
Investment Results
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INVESTMENT RESULTS
AVERAGE ANNUAL RETURNS AS OF JUNE 30, 2003
Class A Shares
- --------------------------------------------------------------------------------
Without Sales Charge With Sales Charge
1 Year 2.32% -1.99%
5 Years -0.90% -1.76%
Since Inception* 5.19% 4.69%
Class B Shares
- --------------------------------------------------------------------------------
Without Sales Charge With Sales Charge
1 Year 1.55% -2.45%
5 Years -1.65% -1.65%
Since Inception(a) 4.52% 4.52%
Class C Shares
- --------------------------------------------------------------------------------
Without Sales Charge With Sales Charge
1 Year 1.55% 0.56%
5 Years -1.65% -1.65%
Since Inception* 5.41% 5.41%
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.
Substantially, all of the Fund's assets will be invested in foreign securities,
which may magnify fluctuations due to changes in foreign exchange rates and the
possibility of substantial volatility due to political and economic
uncertainties in foreign countries.
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.
* Since Inception: 6/2/94 Class A and Class B; 2/8/95 Class C.
(a) Assumes conversion of Class B shares into Class A shares after eight years.
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ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND o 5
Ten Largest Holdings
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TEN LARGEST HOLDINGS
June 30, 2003
Percent of
Company U.S. $ Value Net Assets
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BNP Paribas, SA $ 6,687,910 3.0%
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Grupo Financiero Banorte, SA de CV
Series O 5,666,498 2.5
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Nomura Holdings, Inc. 5,568,865 2.5
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Vodafone Group Plc. 5,419,573 2.4
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East Japan Railway Co. 5,270,279 2.4
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Japan Tobacco, Inc. 5,224,920 2.3
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Pfizer, Inc. 5,098,595 2.3
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Sanofi-Synthelabo, SA 4,992,364 2.2
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National Grid Transco Plc. 4,914,539 2.2
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Kookmin Bank (common stock & ADR) 4,812,396 2.1
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$53,655,939 23.9%
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6 o ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND
Portfolio of Investments
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PORTFOLIO OF INVESTMENTS
June 30, 2003
Company Shares U.S. $ Value
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COMMON & PREFERRED STOCKS-96.6%
Australia-0.8%
CSL, Ltd. ....................................... 227,900 $ 1,829,175
------------
Austria-1.4%
Flughafen Wien AG ............................... 25,293 920,962
Telekom Austria AG(a) ........................... 199,687 2,269,731
------------
3,190,693
------------
Brazil-3.8%
Brasil Telecom Participacoes, SA (ADR) .......... 17,600 659,120
Companhia Paranaense de Energia-Copel
(ADR)(a) ..................................... 78,400 235,200
Companhia Vale do Rio Doce (ADR) ................ 32,200 955,052
Sponsored ADR ................................ 21,600 599,400
Empresa Brasileira de Aeronautica, SA
(Embraer) (ADR) .............................. 29,094 555,695
Gerdau, SA pfd(a) ............................... 108,949 1,253,999
Sponsored ADR ................................ 89,180 1,047,865
Investimentos Itau, SA pfd(a) ................... 1,116,674 878,195
Petroleo Brasileiro, SA (ADR) ................... 131,000 2,326,560
------------
8,511,086
------------
Chile-0.1%
Enersis, SA (ADR)(a) ............................ 41,200 181,692
------------
China-2.9%
Beijing Capital International Airport Co., Ltd. . 3,444,000 839,122
China Petroleum and Chemical Corp. .............. 5,358,000 1,277,980
China Unicom, Ltd. .............................. 1,322,000 898,495
CNOOC, Ltd. ..................................... 826,000 1,207,517
Legend Group, Ltd. .............................. 3,690,000 1,230,292
Sinotrans, Ltd.(a) .............................. 3,837,000 1,082,488
------------
6,535,894
------------
Egypt-1.6%
Commercial International Bank ................... 85,100 519,956
Eastern Co. for Tobacco & Cigarettes ............ 95,724 1,027,472
Egyptian Co. for Mobile Services ................ 228,675 2,039,145
------------
3,586,573
------------
Finland-1.6%
Fortum OYJ ...................................... 171,894 1,380,333
Sampo OYJ ....................................... 158,538 1,165,472
TietoEnator OYJ ................................. 54,379 917,134
------------
3,462,939
------------
France-11.8%
BNP Paribas, SA ................................. 131,374 6,687,910
Dassault Systemes, SA ........................... 58,719 1,932,024
France Telecom, SA(a) ........................... 156,307 3,841,028
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ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND o 7
Portfolio of Investments
- --------------------------------------------------------------------------------
Company Shares U.S. $ Value
- --------------------------------------------------------------------------------
Sanofi-Synthelabo, SA ........................... 85,088 $ 4,992,364
TF1-TV Francaise ................................ 91,058 2,807,506
TotalFinaElf Series B ........................... 16,232 2,457,512
Veolia Environnement ............................ 184,906 3,807,779
------------
26,526,123
------------
Germany-4.1%
Deutsche Lufthansa AG ........................... 86,289 1,009,588
Deutsche Post AG ................................ 317,938 4,645,302
Fraport AG(a) ................................... 107,744 2,404,709
Rhoen-Klinikum AG ............................... 29,081 1,160,931
------------
9,220,530
------------
Ghana-0.9%
Ashanti Goldfields Co., Ltd. (GDR)(a) ........... 237,700 1,894,469
------------
Greece-1.9%
Greek Organization of Football Prognostics ...... 203,506 2,079,016
Public Power Corp. .............................. 119,594 2,162,866
------------
4,241,882
------------
Hungary-1.4%
OTP Bank Rt.(a) ................................. 314,465 3,043,166
------------
India-0.3%
Bank of Baroda .................................. 191,000 459,884
Maruti Udyog, Ltd.(a) ........................... 63,500 171,251
------------
631,135
------------
Israel-0.4%
Bank Hapoalim, Ltd.(a) .......................... 461,000 978,492
------------
Italy-5.6%
Acegas SpA ...................................... 216,186 1,186,352
ENI SpA ......................................... 317,266 4,807,032
Telecom Italia Mobile SpA ....................... 280,263 1,383,219
Telecom Italia SpA .............................. 300,695 2,725,964
UniCredito Italiano SpA ......................... 521,539 2,490,019
------------
12,592,586
------------
Japan-14.0%
East Japan Railway Co. .......................... 1,183 5,270,279
Japan Airlines System Corp. ..................... 506,000 1,106,011
Japan Tobacco, Inc. ............................. 965 5,224,920
KDDI Corp. ...................................... 915 3,549,618
Mitsubishi Tokyo Financial Group, Inc. .......... 915 4,145,038
Nippon Telegraph & Telephone Corp. .............. 334 1,312,426
Nomura Holdings, Inc. ........................... 438,000 5,568,865
NTT DoCoMo, Inc. ................................ 1,803 3,910,900
West Japan Railway Co. .......................... 372 1,412,089
------------
31,500,146
------------
Luxembourg-1.9%
Tenaris, SA (ADR) ............................... 166,521 4,246,286
------------
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8 o ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND
Portfolio of Investments
- --------------------------------------------------------------------------------
Company Shares U.S. $ Value
- --------------------------------------------------------------------------------
Mexico-5.2%
America Movil, SA de CV Series L ................ 95,506 $ 1,790,738
Grupo Aeroportuario del Sureste,
SA de CV (ADR) ............................... 40,200 588,126
Grupo Financiero Banorte, SA de CV Series O ..... 2,007,477 5,666,498
Grupo Financiero BBVA Bancomer, SA de CV(a) .... 1,862,500 1,573,617
Telefonos de Mexico, SA de CV Cl. L (ADR) ....... 67,506 2,121,039
------------
11,740,018
------------
Netherlands-1.3%
ING Groep NV .................................... 172,201 2,997,384
------------
Norway-0.5%
Telenor ASA ..................................... 282,802 1,174,850
------------
Peru-0.7%
Exsa, SA(b) ..................................... 2,553,027 1,655,421
------------
Poland-0.5%
Polski Koncern Naftowy Orlen, SA (GDR) .......... 107,117 1,041,177
------------
Russia-2.2%
Gazprom (ADR)(c) ................................ 71,300 1,340,440
Lukoil Holding (ADR) ............................ 23,594 1,868,152
Mobile Telesystems (ADR)(a) ..................... 30,600 1,805,400
------------
5,013,992
------------
Singapore-1.1%
DBS Group Holdings, Ltd. ........................ 323,535 1,892,609
Singapore Post, Ltd.(a) ......................... 1,182,000 456,487
------------
2,349,096
------------
South Africa-1.4%
Iscor, Ltd. ..................................... 267,761 572,361
MTN Group, Ltd.(a) .............................. 1,215,765 2,644,274
------------
3,216,635
------------
South Korea-5.2%
Kookmin Bank .................................... 93,701 2,823,973
ADR .......................................... 65,733 1,988,423
POSCO ........................................... 25,480 2,645,057
SK Telecom Co., Ltd. ............................ 24,730 4,223,458
------------
11,680,911
------------
Spain-3.4%
Amadeus Global Travel Distribution, SA .......... 217,595 1,249,158
Iberia Lineas Aereas de Espana, SA .............. 689,472 1,340,513
Indra Sistemas, SA .............................. 170,632 1,737,287
Red Electrica de Espana ......................... 84,316 1,105,815
Telefonica, SA(a) ............................... 193,648 2,252,329
------------
7,685,102
------------
Sweden-1.1%
Eniro AB ........................................ 281,883 2,415,858
------------
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ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND o 9
Portfolio of Investments
- --------------------------------------------------------------------------------
Company Shares U.S. $ Value
- --------------------------------------------------------------------------------
Switzerland-0.2%
Unique Zurich Airport(a) ........................ 17,645 $ 430,063
------------
Taiwan-2.8%
Fubon Financial Holding Co., Ltd.(a) ............ 4,701,865 3,768,567
Taiwan Semiconductor
Manufacturing Co., Ltd.(a) ................... 1,551,123 2,558,276
------------
6,326,843
------------
Thailand-1.1%
Ratchaburi Electricity Generating Holding
Public Co., Ltd. ............................. 2,130,300 1,392,518
Siam Commercial Bank Public Co., Ltd.(a) ........ 1,291,000 1,104,730
------------
2,497,248
------------
Trinidad & Tobago-0.4%
B.W.I.A. International Airways, Ltd.(a)(b) ...... 2,727,272 848,182
------------
Turkey-1.0%
Dogan Yayin Holding AS(a) ....................... 833,716,133 1,304,794
Turkcell Iletisim Hizmetleri AS(a) .............. 130,840,046 876,264
------------
2,181,058
------------
United Kingdom-10.6%
BP Plc. ......................................... 502,187 3,488,875
British Sky Broadcasting Group Plc.(a) .......... 267,103 2,965,084
Capita Group Plc. ............................... 461,892 1,725,683
Centrica Plc. ................................... 867,547 2,520,581
Mersey Docks & Harbour Co. ...................... 180,403 1,650,721
mm02 Plc.(a) .................................... 1,103,900 1,035,638
National Grid Transco Plc. ...................... 723,317 4,914,539
Vodafone Group Plc. ............................. 2,766,524 5,419,573
------------
23,720,694
------------
United States-3.4%
Affiliated Computer Services, Inc. Cl. A(a) .... 55,500 2,538,015
Pfizer, Inc. .................................... 149,300 5,098,595
------------
7,636,610
------------
Total Investments-96.6%
(cost $199,642,695) .......................... 216,784,009
Other assets less liabilities-3.4% .............. 7,640,889
------------
Net Assets-100% ................................. $224,424,898
============
(a) Non-income producing security.
(b) Illiquid security, valued at fair value (See Note A).
(c) Security is exempt from registration under Rule 144A of the Securities Act
of 1933. This security may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At June 30, 2003
this security amounted to $1,340,440 or 0.6% of net assets.
Glossary of terms:
ADR-American Depositary Receipt
GDR-Global Depositary Receipt
See notes to financial statements.
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10 o ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND
Statement of Assets & Liabilities
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS & LIABILITIES
June 30, 2003
Assets
Investments in securities, at value (cost $199,642,695) ..... $ 216,784,009
Cash ........................................................ 610,754
Foreign cash, at value (cost $5,080,891) .................... 5,031,239
Receivable for investment securities sold and
foreign currency contracts ............................... 3,642,264
Dividends and interest receivable ........................... 542,274
-------------
Total assets ................................................ 226,610,540
-------------
Liabilities
Payable for capital stock redeemed .......................... 1,015,834
Payable for investment securities purchased ................. 473,347
Advisory fee payable ........................................ 187,700
Distribution fee payable .................................... 91,504
Accrued expenses ............................................ 417,257
-------------
Total liabilities ........................................... 2,185,642
-------------
Net Assets .................................................. $ 224,424,898
=============
Composition of Net Assets
Capital stock, at par ....................................... $ 27,271
Additional paid-in capital .................................. 270,444,277
Undistributed net investment income ......................... 576,050
Accumulated net realized loss on investment and
foreign currency transactions ............................ (63,713,585)
Net unrealized appreciation of investments and
foreign currency denominated assets and liabilities ...... 17,090,885
-------------
$224,424,898
=============
Calculation of Maximum Offering Price
Class A Shares
Net asset value and
redemption price per share
($163,406,156/19,491,040 shares of capital stock
issued and outstanding) .................................. $8.38
Sales charge--4.25% of public offering price ................ .37
-----
Maximum offering price ...................................... $8.75
=====
Class B Shares
Net asset value and offering price per share
($48,182,783/6,148,316 shares of
capital stock issued and outstanding) .................... $7.84
=====
Class C Shares
Net asset value and offering price per share
($12,092,165/1,543,203 shares of capital stock
issued and outstanding) .................................. $7.84
=====
Advisor Class Shares
Net asset value, redemption and offering price per share
($743,794/88,096 shares of capital stock issued
and outstanding) ......................................... $8.44
=====
See notes to financial statements.
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ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND o 11
Statement of Operations
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
Year Ended June 30, 2003
Investment Income
Dividends (net of foreign taxes withheld
of $569,391) ............................ $ 5,541,543
Interest ................................... 8,875 $ 5,550,418
-------------
Expenses
Advisory fee ............................... 2,212,918
Distribution fee--Class A .................. 473,773
Distribution fee--Class B .................. 503,050
Distribution fee--Class C .................. 123,117
Transfer agency ............................ 1,230,478
Custodian .................................. 421,557
Printing ................................... 172,820
Administrative ............................. 147,000
Audit and legal ............................ 145,452
Registration ............................... 81,786
Directors' fees ............................ 19,000
Miscellaneous .............................. 19,338
-------------
Total expenses ............................. 5,550,289
Less: expense offset arrangement
(see Note B) ............................ (1,033)
-------------
Net expenses ............................... 5,549,256
-------------
Net investment income ...................... 1,162
-------------
Realized and Unrealized Gain (Loss)
on Investment and Foreign Currency Transactions
Net realized gain (loss):
Investment transactions ................. (5,391,413)
Foreign currency transactions ........... 574,888
Net change in unrealized appreciation/depreciation of:
Investments ............................. 6,837,843
Foreign currency denominated assets
and liabilities ......................... (597,667)
-------------
Net gain on investment and foreign
currency transactions ................... 1,423,651
-------------
Net Increase in Net Assets from
Operations .............................. $ 1,424,813
=============
See notes to financial statements.
- --------------------------------------------------------------------------------
12 o ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND
Statement of Changes in Net Assets
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
Year Ended Year Ended
June 30, June 30,
2003 2002
============= =============
Increase (Decrease) in Net Assets
from Operations
Net investment income (loss) ............... $ 1,162 $ (1,910,176)
Net realized loss on investment and
foreign currency transactions ........... (4,816,525) (55,314,697)
Net change in unrealized
appreciation/depreciation of
investments and foreign currency
denominated assets and liabilities ...... 6,240,176 32,010,003
------------- -------------
Net increase (decrease) in net assets
from operations ......................... 1,424,813 (25,214,870)
Capital Stock Transactions
Net decrease ............................... (42,233,358) (73,189,694)
------------- -------------
Total decrease ............................. (40,808,545) (98,404,564)
Net Assets
Beginning of period ........................ 265,233,443 363,638,007
------------- -------------
End of period (including undistributed
net investment income of
$576,050 at June 30, 2003) .............. $ 224,424,898 $ 265,233,443
============= =============
See notes to financial statements.
- --------------------------------------------------------------------------------
ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND o 13
Notes to Financial Statements
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
June 30, 2003
NOTE A
Significant Accounting Policies
AllianceBernstein Worldwide Privatization Fund, Inc. (the "Fund"), formerly
Alliance Worldwide Privatization Fund, Inc., organized as a Maryland corporation
on March 16, 1994, is registered under the Investment Company Act of 1940 as an
open-end management investment company. The Fund offers Class A, Class B, Class
C and Advisor Class shares. Class A shares are sold with an initial 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 4.00%
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. Advisor Class shares are offered solely 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 prices are quoted on such day, then the security is
valued in good faith at
- --------------------------------------------------------------------------------
14 o ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND
Notes to Financial Statements
- --------------------------------------------------------------------------------
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 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 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.
- --------------------------------------------------------------------------------
ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND o 15
Notes to Financial Statements
- --------------------------------------------------------------------------------
3. Taxes
It is the Fund's policy to meet the requirements of the Internal Revenue Code
applicable to regulated investment companies and to distribute all of its
investment company taxable income and net realized gains, if any, to
shareholders. Therefore, no provisions for federal income or excise taxes are
required.
4. Investment Income and Investment Transactions
Dividend income is recorded on the ex-dividend date. Interest income is accrued
daily. Investment transactions are accounted for on the date securities are
purchased or sold. Investment gains and losses are determined on the identified
cost basis. The Fund accretes discounts on short-term securities as adjustments
to interest income.
5. Income and Expenses
All income earned and expenses incurred by the Fund are borne on a pro rata
basis by each outstanding 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 also have no
distribution fees.
6. Dividends and Distributions
Dividends and distributions to shareholders, if any, 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 an investment advisory agreement, the Fund pays its Adviser, Alliance
Capital Management L.P. (the "Adviser") a fee at an annual rate of 1% of the
Fund's average daily net assets. Such fee is accrued daily and paid monthly.
Pursuant to the advisory agreement, the Fund paid $147,000 to the Adviser
representing the cost of certain legal and accounting services provided to the
Fund by the Adviser for the year ended June 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 $810,999 for the year ended June 30, 2003.
- --------------------------------------------------------------------------------
16 o ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND
Notes to Financial Statements
- --------------------------------------------------------------------------------
For the year ended June 30, 2003, the Fund's expenses were reduced by $1,033
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 $1,420 from the
sale of Class A shares and $20,734, $74,468 and $3,460 in contingent deferred
sales charges imposed upon redemptions by shareholders of Class A, Class B and
Class C shares, respectively, for the year ended June 30, 2003.
Brokerage commissions paid on investment transactions for the year ended June
30, 2003, amounted to $393,171, 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 Fund's average daily net assets
attributable to Class A shares and 1% of the average daily net assets
attributable to the 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 $6,701,699 and
$1,194,225 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 year 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.
NOTE D
Investment Transactions
Purchases and sales of investment securities (excluding short-term investments)
for the year ended June 30, 2003, were as follows:
Purchases Sales
============ ============
Investment securities (excluding U.S.
government securities) ...................... $ 64,207,931 $103,187,208
U.S. government securities ..................... -0- -0-
- --------------------------------------------------------------------------------
ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND o 17
Notes to Financial Statements
- --------------------------------------------------------------------------------
At June 30, 2003, the cost of investments for federal income tax purposes, gross
unrealized appreciation and unrealized depreciation (excluding foreign currency
transactions) are as follows:
Cost ................................................. $ 199,900,472
=============
Gross unrealized appreciation ........................ $ 39,650,608
Gross unrealized depreciation ........................ (22,767,071)
-------------
Net unrealized appreciation .......................... $ 16,883,537
=============
Forward Exchange Currency Contracts
The Fund 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 and to hedge certain firm purchase and sales commitments
denominated in foreign currencies. A forward exchange currency contract is a
commitment to purchase or sell a foreign currency at a future date at a
negotiated forward rate. The gain or loss arising from the difference between
the original contracts and the closing of such contracts would be included in
net realized gains or losses 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 Fund.
The Fund's custodian will place and maintain cash not available for investment
or liquid assets in a separate account of the Fund having a value 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 a counterparty to meet the terms of a contract and from
unanticipated movements in the value of a foreign currency relative to the U.S.
dollar.
NOTE E
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.
- --------------------------------------------------------------------------------
18 o ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND
Notes to Financial Statements
- --------------------------------------------------------------------------------
Each class consists of 3,000,000,000 authorized shares. Transactions in capital
stock were as follows:
------------------------------- -------------------------------
Shares Amount
------------------------------- -------------------------------
Year Ended Year Ended Year Ended Year Ended
June 30, 2003 June 30, 2002 June 30, 2003 June 30, 2002
- ---------------------------------------------------------------------------------------
Class A
Shares sold 13,183,729 20,653,456 $ 96,276,749 $ 164,826,079
- ---------------------------------------------------------------------------------------
Shares converted
from Class B 856,684 318,650 7,708,791 2,614,278
- ---------------------------------------------------------------------------------------
Shares redeemed (16,909,314) (26,668,504) (126,147,344) (213,967,580)
- ---------------------------------------------------------------------------------------
Net decrease (2,868,901) (5,696,398) $ (22,161,804) $ (46,527,223)
=======================================================================================
Class B
Shares sold 945,209 1,021,040 $ 6,678,057 $ 7,839,994
- ---------------------------------------------------------------------------------------
Shares converted
to Class A (897,545) (337,100) (7,708,791) (2,614,278)
- ---------------------------------------------------------------------------------------
Shares redeemed (2,413,607) (3,279,607) (15,566,368) (24,843,208)
- ---------------------------------------------------------------------------------------
Net decrease (2,365,943) (2,595,667) $ (16,597,102) $ (19,617,492)
=======================================================================================
Class C
Shares sold 1,759,195 968,938 $ 12,385,634 $ 7,336,447
- ---------------------------------------------------------------------------------------
Shares redeemed (2,229,518) (1,838,098) (15,771,710) (13,945,850)
- ---------------------------------------------------------------------------------------
Net decrease (470,323) (869,160) $ (3,386,076) $ (6,609,403)
=======================================================================================
Advisor Class
Shares sold 286,023 62,339 $ 2,282,890 $ 484,912
- ---------------------------------------------------------------------------------------
Shares redeemed (296,367) (117,314) (2,371,266) (920,488)
- ---------------------------------------------------------------------------------------
Net decrease (10,344) (54,975) $ (88,376) $ (435,576)
=======================================================================================
NOTE F
Concentration of Risk
Investing in securities of foreign companies involves special risks which
include changes in foreign exchange rates and the possibility of future
political and economic developments which could adversely affect the value of
such securities. Moreover, securities of many foreign companies and their
markets may be less liquid and their prices more volatile than those of
comparable U.S. companies. The Fund invests in securities issued by enterprises
that are undergoing, or that have undergone, privatization. Privatization is a
process through which the ownership and control of companies or assets in whole
or in part are transferred from the public sector to the private sector. Through
privatization a government or state divests or transfers all or a portion of its
interest in a state enterprise to some form of private ownership. Therefore, the
Fund is susceptible to the government re-nationalization of these enterprises
and economic factors adversely affecting the economics of these countries. In
addition, these securities created through privatization may be less liquid and
subject to greater volatility than securities of more developed countries.
- --------------------------------------------------------------------------------
ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND o 19
Notes to Financial Statements
- --------------------------------------------------------------------------------
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 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 year ended June 30, 2003.
NOTE H
Distributable Earnings
As of June 30, 2003, the components of accumulated earnings/(deficit) on a tax
basis were as follows:
Accumulated capital and other losses .................. $(63,455,808)(a)
Undistributed ordinary income ......................... 576,050
Unrealized appreciation/(depreciation) ................ 16,833,108
------------
Total accumulated earnings/(deficit) .................. $(46,046,650)
============
(a) On June 30, 2003, the Fund had a net capital loss carryforward of
$57,588,910 of which $2,674,544 expires in the year 2009, $9,780,649
expires in the year 2010 and $45,133,717 expires in the year 2011. To the
extent future capital gains are offset by capital loss carryforward, such
gains will not be distributed. Net capital losses incurred after October
31, and within the taxable year are deemed to arise on the first business
day of the Fund's next taxable year. For the year ended June 30, 2003, the
Fund deferred to July 1, 2003, post October capital losses of $5,866,898.
During the current fiscal year, permanent differences, primarily due to foreign
currency gains, resulted in a net increase in accumulated net realized loss on
investments and foreign currency transactions, and a corresponding increase in
undistributed net investment income. This reclassification had no effect on net
assets.
- --------------------------------------------------------------------------------
20 o ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND
Financial Highlights
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
-----------------------------------------------------------
Class A
-----------------------------------------------------------
Year Ended June 30,
-----------------------------------------------------------
2003 2002 2001 2000 1999
-----------------------------------------------------------
Net asset value, beginning
of period ................... $ 8.19 $ 8.76 $ 13.57 $ 11.84 $ 12.67
-----------------------------------------------------------
Income From Investment
Operations
Net investment income
(loss)(a) ................... .02 (.03) .02 (.04) -0-
Net realized and unrealized
gain (loss) on investment
and foreign currency
transactions ................ .17 (.54) (3.45) 2.83 .93
-----------------------------------------------------------
Net increase (decrease) in
net asset value from
operations .................. .19 (.57) (3.43) 2.79 .93
-----------------------------------------------------------
Less: Dividends and
Distributions
Dividends from net investment
income ...................... -0- -0- -0- -0- (.12)
Distributions from net realized
gains on investment and
foreign currency
transactions ................ -0- -0- (1.37) (1.06) (1.64)
Distributions in excess of net
realized gains on
investments ................. -0- -0- (.01) -0- -0-
-----------------------------------------------------------
Total dividends and
distributions ............... -0- -0- (1.38) (1.06) (1.76)
-----------------------------------------------------------
Net asset value, end of
period ...................... $ 8.38 $ 8.19 $ 8.76 $ 13.57 $ 11.84
===========================================================
Total Return
Total investment return based
on net asset value(b) ...... 2.32% (6.51)% (26.81)% 24.26% 9.86%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted) ............. $163,406 $183,160 $245,873 $394,665 $340,194
Ratio to average net assets of:
Expenses .................... 2.29% 2.10% 1.81% 1.74%(c) 1.92%(c)
Net investment income
(loss) ...................... .23% (.40)% .14% (.31)% (.01)%
Portfolio turnover rate ....... 29% 43% 42% 67% 58%
See footnote summary on page 25.
- --------------------------------------------------------------------------------
ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND o 21
Financial Highlights
- --------------------------------------------------------------------------------
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
-----------------------------------------------------------
Class B
-----------------------------------------------------------
Year Ended June 30,
-----------------------------------------------------------
2003 2002 2001 2000 1999
-----------------------------------------------------------
Net asset value, beginning of
period ...................... $ 7.72 $ 8.32 $ 13.06 $ 11.50 $ 12.37
-----------------------------------------------------------
Income From Investment
Operations
Net investment loss(a) ........ (.04) (.09) (.07) (.13) (.08)
Net realized and unrealized
gain (loss) on investment
and foreign currency
transactions ................ .16 (.51) (3.29) 2.75 .89
-----------------------------------------------------------
Net increase (decrease)
in net asset value from
operations .................. .12 (.60) (3.36) 2.62 .81
-----------------------------------------------------------
Less: Dividends and
Distributions
Dividends from net investment
income ...................... -0- -0- -0- -0- (.04)
Distributions from net realized
gains on investment and
foreign currency
transactions ................ -0- -0- (1.37) (1.06) (1.64)
Distributions in excess of net
realized gains on
investments ................. -0- -0- (.01) -0- -0-
-----------------------------------------------------------
Total dividends and
distributions ............... -0- -0- (1.38) (1.06) (1.68)
-----------------------------------------------------------
Net asset value, end of
period ...................... $ 7.84 $ 7.72 $ 8.32 $ 13.06 $ 11.50
===========================================================
Total Return
Total investment return based
on net asset value(b) ...... 1.55% (7.21)% (27.37)% 23.45% 8.91%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted) ............. $ 48,183 $ 65,724 $ 92,446 $160,847 $117,420
Ratio to average net assets of:
Expenses .................... 3.08% 2.89% 2.56% 2.47%(c) 2.63%(c)
Net investment loss ......... (.61)% (1.19)% (.64)% (1.02)% (1.43)%
Portfolio turnover rate ....... 29% 43% 42% 67% 58%
See footnote summary on page 25.
- --------------------------------------------------------------------------------
22 o ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND
Financial Highlights
- --------------------------------------------------------------------------------
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
-----------------------------------------------------------
Class C
-----------------------------------------------------------
Year Ended June 30,
-----------------------------------------------------------
2003 2002 2001 2000 1999
-----------------------------------------------------------
Net asset value, beginning of
period ...................... $ 7.72 $ 8.32 $ 13.05 $ 11.50 $ 12.37
-----------------------------------------------------------
Income From Investment
Operations
Net investment loss(a) ........ (.04) (.09) (.06) (.12) (.08)
Net realized and unrealized
gain (loss) on investment
and foreign currency
transactions ................ .16 (.51) (3.29) 2.73 .89
-----------------------------------------------------------
Net increase (decrease) in
net asset value from
operations .................. .12 (.60) (3.35) 2.61 .81
-----------------------------------------------------------
Less: Dividends and
Distributions
Dividends from net investment
income ...................... -0- -0- -0- -0- (.04)
Distributions from net realized
gains on investment and
foreign currency
transactions ................ -0- -0- (1.37) (1.06) (1.64)
Distributions in excess of net
realized gains on
investments ................. -0- -0- (.01) -0- -0-
-----------------------------------------------------------
Total dividends and
distributions ............... -0- -0- (1.38) (1.06) (1.68)
-----------------------------------------------------------
Net asset value, end of
period ...................... $ 7.84 $ 7.72 $ 8.32 $ 13.05 $ 11.50
===========================================================
Total Return
Total investment return based
on net asset value(b) ...... 1.55% (7.21)% (27.30)% 23.37% 8.91%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted) ............. $ 12,092 $ 15,541 $ 23,976 $ 39,598 $ 20,397
Ratio to average net assets of:
Expenses .................... 3.06% 2.85% 2.56% 2.44%(c) 2.63%(c)
Net investment loss ......... (.57)% (1.18)% (.62)% (.94)% (1.44)%
Portfolio turnover rate ....... 29% 43% 42% 67% 58%
See footnote summary on page 25.
- --------------------------------------------------------------------------------
ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND o 23
Financial Highlights
- --------------------------------------------------------------------------------
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
-----------------------------------------------------------
Advisor Class
-----------------------------------------------------------
Year Ended June 30,
-----------------------------------------------------------
2003 2002 2001 2000 1999
-----------------------------------------------------------
Net asset value, beginning of
period ...................... $ 8.21 $ 8.76 $ 13.53 $ 11.77 $ 12.63
-----------------------------------------------------------
Income From Investment
Operations
Net investment income
(loss)(a) ................... .06 (.01) .04 -0- .02
Net realized and unrealized
gain (loss) on investment
and foreign currency
transactions ................ .17 (.54) (3.43) 2.82 .93
-----------------------------------------------------------
Net increase (decrease) in
net asset value from
operations .................. .23 (.55) (3.39) 2.82 .95
-----------------------------------------------------------
Less: Dividends and
Distributions
Dividends from net investment
income ...................... -0- -0- -0- -0- (.17)
Distributions from net realized
gains on investment and
foreign currency
transactions ................ -0- -0- (1.37) (1.06) (1.64)
Distributions in excess of
net realized gains on
investments ................. -0- -0- (.01) -0- -0-
-----------------------------------------------------------
Total dividends and
distributions ............... -0- -0- (1.38) (1.06) (1.81)
-----------------------------------------------------------
Net asset value, end of period $ 8.44 $ 8.21 $ 8.76 $ 13.53 $ 11.77
===========================================================
Total Return
Total investment return based
on net asset value(b) ...... 2.80% (6.28)% (26.58)% 24.68% 10.12%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted) ............. $ 744 $ 808 $ 1,343 $ 2,506 $ 1,610
Ratio to average net assets of:
Expenses .................... 1.98% 1.80% 1.50% 1.43%(c) 1.62%(c)
Net investment income (loss) .. .74% (.18)% .38% .01% .37%
Portfolio turnover rate ....... 29% 43% 42% 67% 58%
See footnote summary on page 25.
- --------------------------------------------------------------------------------
24 o ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND
Financial Highlights
- --------------------------------------------------------------------------------
(a) Based on average shares outstanding.
(b) Total investment return is calculated assuming an initial investment made
at the net asset value at the beginning of the period, reinvestment of all
dividends and distributions at net asset value during the period, and
redemption on the last day of the period. Initial sales charge or
contingent deferred sales charge is not reflected in the calculation of
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 for a period of
less than one year is not annualized.
(c) Ratios reflect expenses grossed up for expense offset arrangement with the
Transfer Agent. For the periods shown below, the net expense ratios were
as follows:
Year Ended June 30,
-------------------
2000 1999
-------------------
Class A............... 1.73% 1.91%
Class B............... 2.46% 2.62%
Class C............... 2.43% 2.61%
Advisor Class......... 1.42% 1.61%
- --------------------------------------------------------------------------------
ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND o 25
Report of Independent Auditors
- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT AUDITORS
To the Board of Directors and
Shareholders of AllianceBernstein
Worldwide Privatization Fund, Inc.
In our opinion, the accompanying statement of assets and liabilities, including
the portfolio of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of AllianceBernstein Worldwide
Privatization Fund, Inc., formerly Alliance Worldwide Privatization Fund, Inc.,
(the "Fund") at June 30, 2003, the results of its operations for the year then
ended, the changes in its net assets for each of the two years in the period
then ended and the financial highlights for each of the periods presented, in
conformity with accounting principles generally accepted in the United States of
America. These financial statements and financial highlights (hereafter referred
to as "financial statements") are the responsibility of the Fund's management;
our responsibility is to express an opinion on these financial statements based
on our audits. We conducted our audits of these financial statements in
accordance with auditing standards generally accepted in the United States of
America, which require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at June 30, 2003 by
correspondence with the custodian and brokers, provide a reasonable basis for
our opinion.
PricewaterhouseCoopers LLP
New York, New York
August 14, 2003
TAX INFORMATION (unaudited)
The Fund intends to make an election under the Internal Revenue Code Section 853
to pass through foreign taxes paid by the Fund to its shareholders. The total
amount of foreign taxes that may be passed through to shareholders for the
fiscal year ended June 30, 2003 is $569,391. The foreign source of income for
information reporting purposes is $6,031,515.
Shareholders should not use the above information to prepare their tax returns.
The information necessary to complete your income tax returns will be included
with your Form 1099-DIV which will be sent to you separately in January 2004.
- --------------------------------------------------------------------------------
26 o ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND
Board of Directors
- --------------------------------------------------------------------------------
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
Edward D. Baker III, Vice President
Thomas J. Bardong, Vice President
Russell Brody, Vice President
Jean Van De Walle, Vice President
Michael Levy, Vice President
Edmund P. Bergan, Jr., Secretary
Mark D. Gersten, Treasurer & Chief Financial Officer
Vincent S. Noto, Controller
Custodian
Brown Brothers Harriman & Company
40 Water Street
Boston, MA 02109-3661
Principal Underwriter
AllianceBernstein Investment
Research and Management, Inc.
1345 Avenue of the Americas
New York, NY 10105
Transfer Agent
Alliance Global Investor Services, Inc.
P.O. Box 786003
San Antonio, TX 78278-6003
Toll-Free (800) 221-5672
Independent Auditors
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, NY 10036
Legal Counsel
Seward & Kissel LLP
One Battery Park Plaza
New York, NY 10004
(1) Member of the Audit Committee
- --------------------------------------------------------------------------------
ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND o 27
Management of the Fund
- --------------------------------------------------------------------------------
MANAGEMENT OF THE FUND
Board of Directors Information
The business and affairs of the Fund are managed under the direction of the
Board of Directors. Certain information concerning the Fund's Directors is set
forth below.
PORTFOLIOS
IN FUND OTHER
NAME, ADDRESS, PRINCIPAL COMPLEX DIRECTORSHIPS
AGE OF DIRECTOR OCCUPATION(S) OVERSEEN BY HELD BY
(YEARS OF SERVICE*) DURING PAST 5 YEARS DIRECTOR DIRECTOR
- -----------------------------------------------------------------------------------------------------
INTERESTED DIRECTOR
John D. Carifa,** 58 President, Chief Operating 113 None
1345 Avenue Officer and a Director of ACMC,
of the Americas with which he has been
New York, NY 10105 (9) associated with since prior to
1998
DISINTERESTED DIRECTORS
Ruth Block,#+ 72 Formerly an Executive Vice 94 None
P.O. Box 4623 President and the Chief
Stamford, CT 06903 (9) Insurance Officer of The
Equitable Life Assurance Society of the
United States; Chairman and Chief Executive
Officer of Evlico; a Director of Avon,
Tandem Financial Group, Donaldson, Lufkin &
Jenrette Securities Corporation, Ecolab
Incorporated (specialty chemicals) and BP
Amoco Corporation (oil and gas). Former
Governor at Large National Association of
Securities Brokers, Inc.
David H. Dievler,#+ 73 Independent consultant. Until 98 None
P.O. Box 167 December 1994, Senior
Spring Lake, Vice President of ACMC
New Jersey 07762 (9) responsible for mutual fund
administration. Prior to joining ACMC in
1984, Chief Financial Officer of Eberstadt
Asset Management since 1968. Prior to that,
Senior Manager at Price Waterhouse & Co.
Member of American Institute of Certified
Public Accountants since 1953.
John H. Dobkin,#+ 61 Consultant. Formerly President 95 None
P.O. Box 12 of the Board of Save Venice, Inc.
Annadale, (preservation organization) from
New York 12504 (9) 2001-2002. Formerly a Senior
Advisor from June 1999-June 2000 and
President from December 1989-May 1999 of
Historic Hudson Valley (historic
preservation). Previously, Director of the
National Academy of Design. During 1988-92,
Director and Chairman of the Audit Committee
of ACMC.
- --------------------------------------------------------------------------------
28 o ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND
Management of the Fund
- --------------------------------------------------------------------------------
PORTFOLIOS
IN FUND OTHER
NAME, ADDRESS, PRINCIPAL COMPLEX DIRECTORSHIPS
AGE OF DIRECTOR OCCUPATION(S) OVERSEEN BY HELD BY
(YEARS OF SERVICE*) DURING PAST 5 YEARS DIRECTOR DIRECTOR
- -----------------------------------------------------------------------------------------------------
DISINTERESTED DIRECTORS
(continued)
William H. Foulk, Jr.,#+ 70 Investment Adviser and an 110 None
Room 100 independent consultant.
2 Sound View Drive Formerly Senior Manager of
Greenwich, Connecticut Barrett Associates, Inc., a
06830 (9) registered investment adviser,
with which he had been associated since
prior to 1998. Formerly Deputy Comptroller
of the State of New York and, prior thereto,
Chief Investment Officer of the New York
Bank for Savings.
Clifford L. Michel,#+ 63 Senior Counsel of the law firm of 94 Placer Dome,
15 St. Bernard's Road Cahill Gordon & Reindel since Inc
Gladstone, New Jersey February 2001 and a partner of
07934 (9) that firm for more than 25 years
prior thereto. President and Chief
Executive Officer of Wenonah
Development Company
(investments) and a Director of the Placer
Dome, Inc. (mining).
Donald J. Robinson,#+ 68 Senior Counsel of the law firm 93 None
98 Hell's Peak Road of Orrick, Herrington & Sutcliffe
Weston, Vermont LLP since prior to 1998. Formerly
05161 (7) a senior partner and a member
of the Executive Committee of that firm. He
was also a member and chairman of the
Municipal Securities Rulemaking Board and a
Trustee of the Museum of the City of New
York.
* There is no stated term of office for the Fund's Directors.
** Mr. Carifa is an "interested director", as defined in the 1940 Act, due to
his position as President and Chief Operating Officer of ACMC, the Fund's
investment adviser.
# Member of the Audit Committee.
+ Member of the Nominating Committee.
- --------------------------------------------------------------------------------
ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND o 29
Management of the Fund
- --------------------------------------------------------------------------------
Officer Information
Certain information concerning the Fund's Officers is listed below.
NAME, POSITION(S) PRINCIPAL OCCUPATION
ADDRESS* AND AGE HELD WITH FUND DURING PAST 5 YEARS**
- -------------------------------------------------------------------------------------------------------
John D. Carifa, 58 Chairman & President See biography above.
Edward D. Baker III, 52 Vice President Senior Vice President and Chief
Investment Officer-Emerging Markets of
ACMC, with which he has been
associated since prior to 1998.
Thomas J. Bardong, 58 Vice President Senior Vice President of ACMC, with
which he has been associated since
prior to 1998.
Russell Brody, 36 Vice President Vice President of ACMC, with which he
has been associated since prior to
1998.
Michael Levy, 33 Vice President Assistant Vice President of ACMC, with
which he has been associated since
prior to 1998.
Jean Van De Walle, 44 Vice President Vice President of ACMC, with which he
has been associated since prior to
1998.
Edmund P. Bergan, Jr., 53 Secretary Senior Vice President and the General
Counsel of AllianceBernstein
Investment Research and
Management, Inc. ("ABIRM") and
Alliance Global Investor Services, Inc.
("AGIS"), with which he has been
associated since prior to 1998.
Mark D. Gersten, 52 Treasurer and Chief Senior Vice President of AGIS, with
Financial Officer which he has been associated since
prior to 1998.
Vincent S. Noto, 38 Controller Vice President of AGIS, with which he
has been associated since prior to
1998.
* The address for each of the Fund's Officers is 1345 Avenue of the
Americas, New York, NY 10105.
** ACL, ACMC, ABIRM, and AGIS are affiliates of the Fund.
The Fund's Statement of Additional Information ("SAI") has additional
information about the Fund's Directors and Officers and is available without
charge upon request. Contact your financial representative or Alliance Capital
at 1-800-227-4618 for a free prospectus or SAI.
- --------------------------------------------------------------------------------
30 o ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND
AllianceBernstein Family of Funds
- --------------------------------------------------------------------------------
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
Balanced Shares
Disciplined Value Fund
Global Value Fund
Growth & Income Fund
International Value Fund
Real Estate Investment Fund
Small Cap Value 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
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
Conservative Investors Fund
Growth Investors Fund
Closed-End Funds
All-Market Advantage Fund
ACM Income Fund
ACM Government Opportunity Fund
ACM Managed 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.
- --------------------------------------------------------------------------------
ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND o 31
NOTES
- --------------------------------------------------------------------------------
32 o ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND
ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND
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.
WWPAR0603
ITEM 2. CODE OF ETHICS.
Form N-CSR disclosure requirement not yet effective with respect to the
registrant.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Form N-CSR disclosure requirement not yet effective with respect to the
registrant.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Form N-CSR disclosure requirement not yet effective with respect to the
registrant.
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 Worldwide Privatization 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
Exhibit 10(b)(1)
CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER
I, John D. Carifa, certify that:
1. I have reviewed this report on Form N-CSR (the "Report") of
AllianceBernstein Worldwide Privatization Fund, Inc. (the "Fund");
2. Based on my knowledge, this Report does not contain any untrue statement of
a material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this
Report;
3. Based on my knowledge, the financial statements and other financial
information included in this Report, fairly present in all material
respects the financial condition, results of operations, changes in net
assets, and cash flows (if the financial statements are required to include
a statement of cash flows) of the Fund as of, and for, the periods
presented in this Report;
4. The Fund's other certifying officer and I are responsible for establishing
and maintaining disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act) for the Fund and have:
a) designed such disclosure controls and procedures, or caused such
disclosure controls and procedures to be designed under our
supervision, to ensure that material information relating to the
Fund, including its consolidated subsidiaries, is made known to us
by others within those entities, particularly during the period in
which this Report is being prepared;
b) evaluated the effectiveness of the Fund's disclosure controls and
procedures and presented in this report our conclusions about the
effectiveness of the disclosure controls and procedures, as of a
date within 90 days prior to the filing date of this Report based
on such evaluation; and
c) disclosed in this Report any change in the Fund's internal control
over financial reporting that occurred during the Fund's most
recent fiscal half-year [or second fiscal half-year in the case of
an annual report] that has materially affected, or is reasonably
likely to materially affect, the Fund's internal control over
financial reporting; and
5. The Fund's other certifying officer and I have disclosed to the Fund's
auditors and the audit committee of the Fund's board of directors:
a) all significant deficiencies in the design or operation of
internal control over financial reporting which are reasonably
likely to adversely affect the Fund's ability to record, process,
summarize, and report financial information; and
b) any fraud, whether or not material, that involves management or
other employees who have a significant role in the Fund's internal
controls.
Date: August 22, 2003
/s/ John D. Carifa
---------------------------
John D. Carifa
Chairman and President