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: 811-02383
AllianceBernstein Bond 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.
- -------------------------------------------------------------------------------
Investment Grade Fixed Income
- -------------------------------------------------------------------------------
AllianceBernstein [LOGO](SM)
Investment Research and Management
AllianceBernstein Bond Fund
Quality Bond Portfolio
Annual Report -- June 30, 2003
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 6, 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 Bond Fund Quality Bond Portfolio (the "Portfolio") for the
annual reporting period ended June 30, 2003.
Investment Objective and Policies
This open-end fund seeks high current income consistent with preservation of
capital by investing in investment-grade fixed income securities. The Portfolio
invests in readily marketable securities that do not involve undue risk of
capital.
Investment Results
The following table shows the performance of the Portfolio for the six- and
12-month periods ended June 30, 2003. For comparison, we have included the
Lehman Brothers (LB) Aggregate Bond Index, a standard measure of the
performance of a basket of unmanaged debt securities.
INVESTMENT RESULTS*
Periods Ended June 30, 2003
---------------------------------
Returns
---------------------------------
6 Months 12 Months
-------------- --------------
AllianceBernstein
Bond Fund Quality Bond
Portfolio
Class A 3.59% 9.87%
- ------------------------------------------------------------
Class B 3.24% 9.12%
- ------------------------------------------------------------
Class C 3.25% 9.03%
- ------------------------------------------------------------
Lehman Brothers
Aggregate Bond Index 3.93% 10.40%
- ------------------------------------------------------------
* The Portfolio'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 Portfolio 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 Portfolio include the reinvestment
of any distributions paid during each period. During the reporting
_______________________________________________________________________________
ALLIANCEBERNSTEIN BOND FUND QUALITY BOND PORTFOLIO o 1
period, the Advisor waived a portion of its advisory fee or reimbursed the
Portfolio for a portion of its expenses to the extent necessary to limit the
Portfolio's expenses to 0.98% for Class A, 1.68% for Class B, 1.68% for Class C
and 0.68% for Advisor Class. This waiver extends through the Portfolio's
current fiscal year and may be extended by the Advisor for additional one-year
terms. Without the waiver, the Portfolio's expenses would have been higher and
its performance would have been lower than that shown above. Past performance
is no guarantee of future results.
The unmanaged Lehman Brothers (LB) Aggregate Bond Index is a standard measure
of the performance of a basket of unmanaged debt securities. It is composed of
the LB Mortgage-Backed Securities Index, the LB Asset-Backed Securities Index
and the LB Government/Credit Bond Index. An investor cannot invest directly in
an index, and its results are not indicative of any particular investment,
including AllianceBernstein Bond Fund Quality Bond Portfolio.
Additional investment results appear on page 6.
For the six- and 12-month periods ended June 30, 2003, the Portfolio
underperformed the Lehman Brothers Aggregate Bond Index. At the start of 2003,
the Portfolio's yield curve structure was positioned for a period of rising
rates, a strategy that contributed positively to relative returns in the first
quarter. In the second quarter, however, this positioning detracted from
performance. The U.S. Federal Reserve announced concerns about deflation risk
and moved to an easing bias in April, finally cutting interest rates by 25
basis points to 1.00% in its June meeting. A greater exposure to
investment-grade corporates compared to the benchmark, including an overweight
in BBB-rated bonds, contributed positively to overall performance. Mortgage
coupon selection was also a positive, as was the Portfolio's diversified
overweight in non-government sectors.
Market Overview and Investment Strategy
Business conditions worsened in the first quarter of the year, despite record
high corporate cash flow and signs of consumer strength in rising building
permits and a new high in the mortgage refinance index. The U.S. economy
contracted in February and March, in part because of bad weather, and also
because of corporate and consumer hesitancy to make purchase and investment
decisions during the Iraqi conflict. The second quarter saw interest rates fall
sharply in anticipation of Federal Reserve easing. As a result, the bond
markets delivered very strong absolute returns. Despite sluggish economic
growth and the Fed's talk of deflation, the credit-sensitive sectors were the
top performers, and lower-rated credits outperformed higher-rated debt.
Government bonds were the weakest performers in the fixed income markets.
_______________________________________________________________________________
2 o ALLIANCEBERNSTEIN BOND FUND QUALITY BOND PORTFOLIO
In the first half of the six-month period, we increased the liquidity of the
Portfolio and pared back its risk profile. We reduced holdings in Treasuries on
expectations of increased supply, and we eliminated commercial mortgage-backed
securities in light of growing default rates. Later, as credit-sensitive
sectors outperformed, we increased our exposure to corporates. In the face of a
massive refinancing wave during the second quarter, we trimmed our mortgage
overweight, reducing 15-year exposure in favor of 30-year and lowering the
average coupon. We also eliminated the Portfolio's exposure to non-U.S. dollar
government bonds.
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ALLIANCEBERNSTEIN BOND FUND QUALITY BOND PORTFOLIO o 3
PERFORMANCE UPDATE
ALLIANCEBERNSTEIN BOND FUND QUALITY BOND PORTFOLIO
GROWTH OF A $10,000 INVESTMENT
7/1/99--6/30/03
Lehman Brothers Aggregate Bond Index: $13,949
AllianceBernstein Bond Fund Quality Bond Portfolio Class A: $12,847
[THE FOLLOWING TABLE WAS DEPICTED BY A MOUNTAIN CHART IN THE PRINTED MATERIAL.]
AllianceBernstein Bond Lehman Brothers
Fund Quality Bond Portfolio Aggregate Bond Index
- -------------------------------------------------------------------------------
7/1/99* $ 9,579 $ 10,000
6/30/2000 $ 10,000 $ 10,457
6/30/2001 $ 11,009 $ 11,631
6/30/2002 $ 11,695 $ 12,635
6/30/2003 $ 12,847 $ 13,949
This chart illustrates the total value of an assumed $10,000 investment in
AllianceBernstein Bond Fund Quality Bond Portfolio Class A shares (from 7/1/99
to 6/30/03) as compared to the performance of an appropriate index. 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 $10,000 investment
in the Portfolio and assumes the reinvestment of dividends and capital gains.
Performance for Class B, Class C and Advisor Class shares will vary from the
results shown above due to differences in expenses charged to these classes.
Past performance is not indicative of future results, and is not representative
of future gain or loss in capital value or dividend income.
The unmanaged Lehman Brothers (LB) Aggregate Bond Index is a standard measure
of the performance of a basket of unmanaged debt securities. It is composed of
the LB Mortgage-Backed Securities Index, the LB Asset-Backed Securities Index
and the LB Government/Credit Bond Index.
When comparing AllianceBernstein Bond Fund Quality Bond Portfolio to the index
shown above, you should note that no sales charges are reflected in the
performance of the index. An investor cannot invest directly in an index, and
its results are not indicative of any specific investment, including
AllianceBernstein Bond Fund Quality Bond Portfolio.
_______________________________________________________________________________
4 o ALLIANCEBERNSTEIN BOND FUND QUALITY BOND PORTFOLIO
PORTFOLIO SUMMARY
June 30, 2003
INCEPTION DATES
Class A Shares
7/1/99
Class B Shares
7/1/99
Class C Shares
7/1/99
PORTFOLIO STATISTICS
Net Assets ($mil): $462.4
SECURITY TYPE
19.7% U.S. Treasury Securities
17.7% Federal National Mortgage Association
6.5% Federal Home Loan Mortgage Corporation
4.2% Government National Mortgage Association [PIE CHART OMITTED]
1.8% Asset-Backed Securities
1.2% Sovereign Debt Securities
Corporate
3.7% Banking
2.8% Financial
1.5% Broadcasting/Media
1.4% Public Utilities-Electric & Gas [PIE CHART OMITTED]
1.4% Automotive
1.3% Communications
6.1% Other
30.7% Short-Term Investments
All data as of June 30, 2003. The Portfolio's security type breakdown is
expressed as a percentage of total investments and may vary over time. "Other"
represents less than 1.0% weightings in Aerospace/Defense, Building/Real
Estate, Cable, Communications-Mobile, Energy, Food/Beverages, Health Care,
Industrial, Insurance, Metals/Mining, Non-Air Transportation, Paper/Packaging,
Petroleum Products, Retail, Savings and Loan, Services and Technology.
_______________________________________________________________________________
ALLIANCEBERNSTEIN BOND FUND QUALITY BOND PORTFOLIO o 5
INVESTMENT RESULTS
AVERAGE ANNUAL RETURNS AS OF JUNE 30, 2003
Class A Shares
- -------------------------------------------------------------------------------
Without Sales Charge With Sales Charge
1 Year 9.87% 5.25%
Since Inception* 7.62% 6.46%
SEC Yield** 3.24%
Class B Shares
- -------------------------------------------------------------------------------
Without Sales Charge With Sales Charge
1 Year 9.12% 6.12%
Since Inception* 6.85% 6.85%
SEC Yield** 2.69%
Class C Shares
- -------------------------------------------------------------------------------
Without Sales Charge With Sales Charge
1 Year 9.03% 8.03%
Since Inception* 6.81% 6.81%
SEC Yield** 2.70%
The Portfolio'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 (3% year
1, 2% year 2, 1% year 3, 0% year 4); and for Class C shares (1% year 1).
Returns for Class A shares do not reflect the imposition of the 1 year, 1%
contingent deferred sales charge for accounts over $1,000,000. Returns for
Advisor Class shares will vary due to different expenses associated with this
class.
The Portfolio normally invests all of its assets in securities that are rated
at least BBB by Standard & Poor's or, if unrated, are of comparable quality.
The Portfolio also may invest in convertible debt securities, preferred stock
and dividend-paying stocks, U.S. government obligations, and foreign
fixed-income securities. The Portfolio may invest a portion of its assets in
foreign securities, which may magnify fluctuations. Price fluctuations may also
be caused by changes in interest rates or bond credit quality ratings. These
changes have a greater effect on bonds with longer maturities than on those
with shorter maturities.
Past performance does not guarantee future results. Investment return and
principal value will fluctuate so that an investor's shares, when redeemed, may
be worth more or less than their original cost.
* Inception date: 7/1/99 for all share classes.
** SEC yields are based on SEC guidelines and are calculated on 30 days ended
June 30, 2003.
_______________________________________________________________________________
6 o ALLIANCEBERNSTEIN BOND FUND QUALITY BOND PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 2003
Principal
Amount
(000) U.S. $ Value
- -------------------------------------------------------------------------------
U.S. GOVERNMENT & AGENCY OBLIGATIONS-63.6%
Federal National Mortgage Association-23.5%
2.50%, 6/15/08 $ 6,345 $ 6,321,898
2.875%, 5/19/08 3,030 3,043,362
4.50%, TBA 4,835 4,933,209
5.00%, TBA 26,565 26,830,917
5.50%, TBA 8,890 9,234,487
6.00%, TBA 30,590 31,851,733
6.50%, TBA 6,605 6,883,652
6.50%, 1/01/28-10/01/32 15,477 16,152,998
7.50%, 7/01/31-3/01/32 2,988 3,175,872
--------------
108,428,128
--------------
Federal Home Loan Mortgage Corp.-8.6%
4.50%, TBA 9,300 9,494,724
5.00%, TBA 9,550 9,779,716
5.50%, TBA 8,835 9,116,616
6.00%, 12/01/32 11,032 11,441,364
--------------
39,832,420
--------------
Government National Mortgage Association-5.5%
5.50%, TBA 10,675 11,078,643
6.50%, TBA 12,485 13,113,145
6.50%, 11/15/31-2/15/32 1,311 1,376,751
--------------
25,568,539
--------------
U.S. TREASURY SECURITIES-26.0%
U.S. Treasury Notes-15.2%
1.125%, 6/30/05 9,305 9,273,019
2.00%, 5/15/06 8,870 8,967,020
2.25%, 7/31/04 41,235 41,781,075
2.625%, 5/15/08 5,450 5,501,524
3.625%, 5/15/13 4,790 4,828,924
--------------
70,351,562
--------------
U.S. Treasury Bonds-9.2%
5.375%, 2/15/31 15,770 17,762,823
10.75%, 8/15/05 10,900 13,043,812
11.25%, 2/15/15 1,000 1,704,375
12.00%, 8/15/13 7,000 10,174,885
--------------
42,685,895
--------------
U.S. Treasury Strip-1.6%
Zero coupon, 11/15/21 18,180 7,430,221
--------------
120,467,678
--------------
Total U.S. Government & Agency Obligations
(cost $294,155,490) 294,296,765
--------------
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ALLIANCEBERNSTEIN BOND FUND QUALITY BOND PORTFOLIO o 7
Principal
Amount
(000) U.S. $ Value
- -------------------------------------------------------------------------------
CORPORATE DEBT OBLIGATIONS-24.0%
Aerospace/Defense-0.1%
Northrop Grumman Corp.
7.125%, 2/15/11 $ 540 $ 647,856
--------------
Automotive-1.8%
DaimlerChrysler NA Holdings
4.75%, 1/15/08 1,140 1,170,593
Ford Motor Credit Co.
7.375%, 10/28/09 3,515 3,690,391
General Motors Acceptance Corp.
6.875%, 9/15/11 1,960 1,969,591
8.00%, 11/01/31 400 393,549
General Motors Corp.
8.375%, 7/15/33 1,220 1,203,164
--------------
8,427,288
--------------
Banking-4.9%
Bank of America Corp.
6.25%, 4/15/12 1,380 1,601,471
Barclays Bank Plc
8.55%, 9/29/49(a) 780 1,001,208
Citicorp
6.375%, 11/15/08 1,840 2,117,676
Citigroup, Inc.
7.25%, 10/01/10 2,495 3,027,376
GreenPoint Financial Corp.
3.20%, 6/06/08(a) 1,115 1,107,792
HSBC Capital Funding LP
10.176%, 6/30/30(a) 570 898,530
ING Capital Funding Trust III
8.439%, 12/31/10 960 1,200,312
J.P. Morgan Chase & Co.
3.625%, 5/01/08 1,195 1,231,175
6.75%, 8/15/08-2/01/11 1,880 2,208,528
M&T Bank Corp.
3.85%, 4/01/13 525 536,290
MBNA America Bank
6.50%, 6/20/06 985 1,087,467
National City Corp.
3.20%, 4/01/08 530 535,978
RBS Capital Trust I
4.709%, 7/01/13 2,090 2,096,441
U.S. Bank NA
6.375%, 8/01/11 1,755 2,052,028
Unicredito Italiano Capital Trust
9.20%, 10/05/49(a) 1,510 1,944,995
--------------
22,647,267
--------------
_______________________________________________________________________________
8 o ALLIANCEBERNSTEIN BOND FUND QUALITY BOND PORTFOLIO
Principal
Amount
(000) U.S. $ Value
- -------------------------------------------------------------------------------
Broadcasting/Media-1.9%
AOL Time Warner, Inc.
7.70%, 5/01/32 $ 1,205 $ 1,412,111
Clear Channel Communications, Inc.
4.25%, 5/15/09 680 689,565
4.625%, 1/15/08 865 907,899
Liberty Media Corp.
5.70%, 5/15/13 1,220 1,242,949
News America, Inc.
6.55%, 3/15/33(a) 1,175 1,254,068
Time Warner, Inc.
8.375%, 3/15/23 2,750 3,477,166
--------------
8,983,758
--------------
Building/Real Estate-0.4%
EOP Operating LP
5.875%, 1/15/13 585 631,863
ERP Operating LP
5.20%, 4/01/13 470 492,430
Lennar Corp.
5.95%, 3/01/13 230 252,290
Vornado Realty Trust
5.625%, 6/15/07 640 687,313
--------------
2,063,896
--------------
Cable-1.1%
AT&T Broadband Corp.
9.455%, 11/15/22 670 916,006
Comcast Cable Communications, Inc.
6.20%, 11/15/08 1,650 1,860,580
Comcast Corp.
7.05%, 3/15/33 465 518,498
Cox Communications, Inc.
7.125%, 10/01/12 525 628,018
Lenfest Communications, Inc.
8.375%, 11/01/05 1,005 1,134,872
--------------
5,057,974
--------------
Communications-1.7%
AT&T Corp.
7.80%, 11/15/11 485 555,454
British Telecommunications Plc
8.875%, 12/15/30 1,025 1,403,887
Citizens Communications Co.
9.00%, 8/15/31 385 520,658
Koninklijke (Royal) KPN NV
8.00%, 10/01/10 670 830,856
Sprint Capital Corp.
6.00%, 1/15/07 1,045 1,124,087
7.625%, 1/30/11 1,595 1,823,811
Verizon Global Funding Corp.
7.375%, 9/01/12 1,465 1,790,582
--------------
8,049,335
--------------
_______________________________________________________________________________
ALLIANCEBERNSTEIN BOND FUND QUALITY BOND PORTFOLIO o 9
Principal
Amount
(000) U.S. $ Value
- -------------------------------------------------------------------------------
Communications - Mobile-1.0%
AT&T Wireless Services, Inc.
8.75%, 3/01/31 $ 1,160 $ 1,438,944
Telus Corp.
7.50%, 6/01/07 1,145 1,282,400
Verizon Wireless Capital LLC
5.375%, 12/15/06 1,045 1,148,863
Vodafone Airtouch Plc
7.875%, 2/15/30 450 581,928
--------------
4,452,135
--------------
Energy-1.2%
Amerada Hess Corp.
7.875%, 10/01/29 1,575 1,922,853
Conoco Funding Co.
5.45%, 10/15/06 695 767,775
Conoco, Inc.
6.95%, 4/15/29 1,455 1,756,338
Devon Energy Corp.
7.95%, 4/15/32 450 581,131
Devon Financing Corp.
7.875%, 9/30/31 420 535,053
--------------
5,563,150
--------------
Financial-3.7%
American General Finance Corp.
4.50%, 11/15/07 545 579,946
CIT Group, Inc.
4.125%, 2/21/06 985 1,020,129
5.50%, 11/30/07 440 476,482
Countrywide Home Loans, Inc.
4.25%, 12/19/07 1,090 1,146,137
General Electric Capital Corp.
5.45%, 1/15/13 795 862,711
6.75%, 3/15/32 2,790 3,274,327
Household Finance Corp.
6.50%, 11/15/08 1,505 1,732,484
7.00%, 5/15/12 495 586,904
John Deere Capital Corp.
4.50%, 8/22/07 690 734,900
Lehman Brothers Holdings, Inc.
4.00%, 1/22/08 1,945 2,029,191
6.625%, 1/18/12 670 786,806
Morgan Stanley
7.25%, 4/01/32 750 922,589
National Rural Utilities Cooperative Finance Corp.
7.25%, 3/01/12 270 323,828
The Bear Stearns Cos., Inc.
4.00%, 1/31/08 640 670,163
The Goldman Sachs Group, Inc.
5.25%, 4/01/13 785 838,625
6.125%, 2/15/33 1,070 1,151,501
--------------
17,136,723
--------------
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10 o ALLIANCEBERNSTEIN BOND FUND QUALITY BOND PORTFOLIO
Principal
Amount
(000) U.S. $ Value
- -------------------------------------------------------------------------------
Food/Beverages-0.7%
Kellogg Co.
2.875%, 6/01/08 $ 690 $ 685,925
Pepsi Bottling Group, Inc.
7.00%, 3/01/29 1,950 2,381,929
--------------
3,067,854
--------------
Health Care-0.5%
Bristol-Myers Squibb Co.
4.75%, 10/01/06 515 554,728
HCA, Inc.
7.125%, 6/01/06 855 930,114
Health Net, Inc.
8.375%, 4/15/11 520 632,989
--------------
2,117,831
--------------
Industrial-0.3%
General Electric Co.
5.00%, 2/01/13 715 756,665
Praxair, Inc.
2.75%, 6/15/08 525 521,282
--------------
1,277,947
--------------
Insurance-0.5%
Anthem, Inc.
6.80%, 8/01/12 610 713,388
MetLife, Inc.
6.50%, 12/15/32 450 515,329
New York Life Insurance Co.
5.875%, 5/15/33(a) 880 926,872
--------------
2,155,589
--------------
Metals/Mining-0.1%
Alcan, Inc.
4.50%, 5/15/13 420 427,851
--------------
Non-Air Transportation-0.3%
CSX Corp.
7.95%, 5/01/27 995 1,277,726
--------------
Paper/Packaging-0.3%
International Paper Co.
5.85%, 10/30/12 625 682,416
MeadWestvaco Corp.
8.20%, 1/15/30 545 678,434
--------------
1,360,850
--------------
Petroleum Products-0.3%
Petronas Capital, Ltd.
7.00%, 5/22/12(a) 1,010 1,170,725
--------------
_______________________________________________________________________________
ALLIANCEBERNSTEIN BOND FUND QUALITY BOND PORTFOLIO o 11
Principal
Amount
(000) U.S. $ Value
- -------------------------------------------------------------------------------
Public Utilities - Electric & Gas-1.8%
Carolina Power & Light Co.
6.50%, 7/15/12 $ 675 $ 782,167
CenterPoint Energy Resources Corp.
6.50%, 2/01/08 825 885,664
Cincinnati Gas & Electric Co.
5.70%, 9/15/12 385 423,751
Columbus Southern Power Co.
5.50%, 3/01/13(a) 170 183,118
Dominion Resources, Inc.
5.00%, 3/15/13 690 716,831
Duke Energy Corp.
3.75%, 3/05/08(a) 860 886,171
FirstEnergy Corp.
7.375%, 11/15/31 575 646,469
KeySpan Corp.
7.25%, 11/15/05 1,430 1,605,690
MidAmerican Energy Holdings Co.
5.875%, 10/01/12 395 433,985
Nisource Finance Corp.
7.875%, 11/15/10 520 614,846
Public Service Company of Colorado
7.875%, 10/01/12 450 567,513
Xcel Energy, Inc.
7.00%, 12/01/10 650 744,473
--------------
8,490,678
--------------
Retail-0.2%
Limited Brands
6.95%, 3/01/33 355 393,733
Target Corp.
5.875%, 3/01/12 615 696,190
--------------
1,089,923
--------------
Savings and Loan-0.8%
Great Western Financial Trust II
8.206%, 2/01/27 1,190 1,371,624
Washington Mutual Finance Corp.
6.875%, 5/15/11 1,945 2,309,769
--------------
3,681,393
--------------
Services-0.2%
Waste Management, Inc.
6.875%, 5/15/09 960 1,118,739
--------------
Technology-0.2%
Hewlett-Packard Co.
7.15%, 6/15/05 670 741,236
--------------
Total Corporate Debt Obligations
(cost $102,322,794) 111,007,724
--------------
_______________________________________________________________________________
12 o ALLIANCEBERNSTEIN BOND FUND QUALITY BOND PORTFOLIO
Principal
Amount
(000) U.S. $ Value
- -------------------------------------------------------------------------------
ASSET BACKED SECURITIES-2.4%
Citibank Credit Card Issuance Trust
4.15%, 7/07/17 $ 2,035 $ 2,034,043
5.65%, 6/16/08 2,715 2,984,941
Discover Card Master Trust I
6.35%, 7/15/08 3,190 3,535,949
Fleet Credit Card Master Trust II
5.60%, 12/15/08 2,300 2,473,949
--------------
Total Asset Backed Securities
(cost $10,647,058) 11,028,882
--------------
SOVEREIGN DEBT SECURITIES-1.6%
Quebec Province of Canada
7.50%, 9/15/29 1,340 1,793,040
United Mexican States
4.625%, 10/08/08 3,325 3,403,137
7.50%, 1/14/12 2,075 2,378,469
--------------
Total Sovereign Debt Securities
(cost $7,070,276) 7,574,646
--------------
SHORT-TERM INVESTMENTS-40.6%
U.S. Treasury Bills-35.5%
Zero coupon, 7/31/03-9/18/03 164,445 164,284,312
--------------
Time Deposit-5.1%
State Street Euro Dollar
0.50%, 7/01/03 23,270 23,270,000
--------------
Total Short-Term Investments
(amortized cost $187,554,312) 187,554,312
--------------
Total Investments-132.2%
(cost $601,749,930) 611,462,329
Other assets less liabilities*-(32.2%) (149,092,736)
--------------
Net Assets-100% $ 462,369,593
==============
See footnote summary on page 14.
_______________________________________________________________________________
ALLIANCEBERNSTEIN BOND FUND QUALITY BOND PORTFOLIO o 13
* SECURITIES LENDING INFORMATION
Includes cash collateral of $168,050,751 (representing 36.3% of net assets)
received for securities on loan as of June 30, 2003 (see Note E). The lending
agent invested $167,953,254 of the cash collateral in short-term investments as
follows:
Current U.S. $
Yield Shares Value
======== ============= ==============
UBS Private Money Market Fund LLC 1.15% 118,003,809 $118,003,809
Principal
Amount
(000)
=============
Gotham Funding, 7/02/03 1.30% $50,000 49,949,445
------------
Total Short-Term Investments $167,953,254
------------
(a) Security exempt from Registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from registration,
normally to qualified buyers. At June 30, 2003. the aggregate market value of
these securities amounted to $9,373,479 or 2.0% of net assets.
Glossary:
TBA - (To Be Assigned) - Securities are purchased on a forward commitment with
an appropriate principal amount (generally +/-1.0%) and no definite maturity
date. The actual principal amount and maturity date will be determined upon
settlement when the specific mortgage pools are assigned.
See notes to financial statements.
_______________________________________________________________________________
14 o ALLIANCEBERNSTEIN BOND FUND QUALITY BOND PORTFOLIO
STATEMENT OF ASSETS & LIABILITIES
June 30, 2003
ASSETS
Investments in securities, at value (cost $601,749,930) $ 611,462,329(a)
Cash 39,140
Collateral held for securities loaned 168,050,751
Receivable for investment securities sold 39,363,049
Interest receivable 3,768,424
Receivable for capital stock sold 1,345,650
Receivable due from Adviser 61,130
-------------
Total assets 824,090,473
-------------
LIABILITIES
Payable for investment securities purchased 190,816,685
Payable for collateral received on securities loaned 168,050,751
Payable for capital stock redeemed 2,078,611
Dividends payable 382,174
Distribution fee payable 136,618
Accrued expenses 256,041
-------------
Total liabilities 361,720,880
-------------
Net Assets $ 462,369,593
=============
COMPOSITION OF NET ASSETS
Capital stock, at par $ 42,753
Additional paid-in capital 444,370,491
Distributions in excess of net investment income (1,298,018)
Accumulated net realized gain on investment and
foreign currency transactions 9,541,968
Net unrealized appreciation of investments 9,712,399
-------------
$ 462,369,593
=============
CALCULATION OF MAXIMUM OFFERING PRICE
Class A Shares
Net asset value and redemption price per share
($76,564,667 / 7,075,760 shares of
capital stock issued and outstanding) $ 10.82
Sales charge--4.25% of public offering price .48
-------
Maximum offering price $ 11.30
=======
Class B Shares
Net asset value and offering price per share
($113,233,017 / 10,474,261 shares of
capital stock issued and outstanding) $ 10.81
=======
Class C Shares
Net asset value and offering price per share
($26,444,738 / 2,450,532 shares of
capital stock issued and outstanding) $ 10.79
=======
Advisor Class Shares
Net asset value, redemption and offering price per share
($246,127,171 / 22,752,712 shares of
capital stock issued and outstanding) $ 10.82
=======
(a) Includes securities on loan with a value of $164,470,803 (see Note E).
See notes to financial statements.
_______________________________________________________________________________
ALLIANCEBERNSTEIN BOND FUND QUALITY BOND PORTFOLIO o 15
STATEMENT OF OPERATIONS
Year Ended June 30, 2003
INVESTMENT INCOME
Interest $ 16,018,006
EXPENSES
Advisory fee $ 2,163,652
Distribution fee -- Class A 195,491
Distribution fee -- Class B 926,913
Distribution fee -- Class C 244,627
Transfer agency 1,237,319
Custodian 191,425
Printing 125,347
Administrative 120,000
Registration fees 83,992
Audit and legal 81,878
Directors' fees and expenses 20,000
Miscellaneous 28,807
------------
Total expenses 5,419,451
Less: expenses waived and reimbursed
by the Adviser (see Note B) (1,376,256)
Less: expense offset arrangement
(see Note B) (1,103)
------------
Net expenses 4,042,092
------------
Net investment income 11,975,914
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENT AND FOREIGN CURRENCY
TRANSACTIONS
Net realized gain (loss) on:
Investment transactions 15,242,181
Foreign currency transactions (282,560)
Net change in unrealized appreciation/
depreciation of investments 8,812,869
------------
Net gain on investment and foreign
currency transactions 23,772,490
------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 35,748,404
============
See notes to financial statements.
_______________________________________________________________________________
16 o ALLIANCEBERNSTEIN BOND FUND QUALITY BOND PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
Year Ended Year Ended
June 30, 2003 June 30, 2002
============== ==============
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS
Net investment income $ 11,975,914 $ 7,878,464
Net realized gain (loss) on investment and
foreign currency transactions 14,959,621 (1,208,743)
Net change in unrealized appreciation/
depreciation of investments 8,812,869 1,069,652
------------- -------------
Net increase in net assets from operations 35,748,404 7,739,373
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS FROM
Net investment income
Class A (2,559,355) (1,504,476)
Class B (2,981,723) (1,172,187)
Class C (803,086) (388,314)
Advisor Class (8,978,394) (4,813,487)
Distributions in excess of net investment
income
Class A -0- (322,169)
Class B -0- (251,012)
Class C -0- (83,154)
Advisor Class -0- (1,030,761)
Net realized gain on investment transactions
Class A -0- (37,302)
Class B -0- (34,427)
Class C -0- (11,308)
Advisor Class -0- (89,616)
Distributions in excess of net realized gain
on investment transactions
Class A -0- (100,078)
Class B -0- (92,363)
Class C -0- (30,340)
Advisor Class -0- (240,432)
CAPITAL STOCK TRANSACTIONS
Net increase 145,535,331 233,107,087
------------- -------------
Total increase 165,961,177 230,645,034
NET ASSETS
Beginning of period 296,408,416 65,763,382
------------- -------------
End of period $ 462,369,593 $ 296,408,416
============= =============
See notes to financial statements.
_______________________________________________________________________________
ALLIANCEBERNSTEIN BOND FUND QUALITY BOND PORTFOLIO o 17
NOTES TO FINANCIAL STATEMENTS
June 30, 2003
NOTE A
Significant Accounting Policies
AllianceBernstein Bond Fund, Inc. (the "Fund"), formerly Alliance Bond Fund,
Inc., is registered under the Investment Company Act of 1940 as a diversified,
open-end management investment company. The Fund, which is a Maryland
corporation, operates as a series company currently comprised of three
portfolios: the Corporate Bond Portfolio, the Quality Bond Portfolio and the
U.S. Government Portfolio. Each series is considered to be a separate entity
for financial reporting and tax purposes. This report relates only to the
Quality Bond Portfolio. The Quality Bond Portfolio (the "Portfolio") offers
Class A, Class B, Class C and Advisor Class shares. Class A shares are sold
with a front-end sales charge of up to 4.25% for purchases not exceeding
$1,000,000. With respect to purchases of $1,000,000 or more, Class A shares
redeemed within one year of purchase may be subject to a contingent deferred
sales charge of 1%. Class B shares are currently sold with a contingent
deferred sales charge which declines from 3% to zero depending on the period of
time the shares are held. Class B shares will automatically convert to Class A
shares six years after the end of the calendar month of purchase. Class C
shares are subject to a contingent deferred sales charge of 1% on redemptions
made within the first year after purchase. Advisor Class shares are sold
without an initial or contingent deferred sales charge and are not subject to
ongoing distribution expenses. Advisor Class shares are offered to investors
participating in fee-based programs and to certain retirement plan accounts.
All four classes of shares have identical voting, dividend, liquidation and
other rights, 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 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:
_______________________________________________________________________________
18 o ALLIANCEBERNSTEIN BOND FUND QUALITY BOND PORTFOLIO
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 the rates of
exchange prevailing when accrued.
_______________________________________________________________________________
ALLIANCEBERNSTEIN BOND FUND QUALITY BOND PORTFOLIO o 19
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, 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.
3. Taxes
It is the policy of the Portfolio 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
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 accretes discounts as
adjustments to interest income. Additionally, the Portfolio amortizes premiums
on debt securities for financial statement reporting purposes only.
5. Income and Expenses
All income earned and expenses incurred by the Portfolio are borne on a pro
rata basis by each settled class of shares, based on proportionate interest in
the Portfolio represented by the net assets of such class, except that the
Portfolio's Class B and Class C shares bear higher distribution and transfer
agent fees than Class A and Advisor Class shares. Advisor Class shares have no
distribution fees.
6. Dividends and Distributions
Dividends and 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.
_______________________________________________________________________________
20 o ALLIANCEBERNSTEIN BOND FUND QUALITY BOND PORTFOLIO
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 advisory fee at an annual
rate of .55 of 1% of the Portfolio's average daily net assets. The fee is
accrued daily and paid monthly. The Adviser has agreed to waive its fees and
bear certain expenses to the extent necessary to limit total operating expenses
on an annual basis to .98%, 1.68%, 1.68% and .68% of the average daily net
assets of Class A, Class B, Class C and Advisor Class shares, respectively.
For the year ended June 30, 2003, such waiver amounted to $1,256,256.
Pursuant to the advisory agreement, the Portfolio may reimburse the Adviser for
certain legal and accounting services provided to the Portfolio by the Adviser.
For the year ended June 30, 2003, the Adviser agreed to waive its fees for such
services. Such waiver amounted to $120,000.
The Portfolio 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
Portfolio. Such compensation amounted to $1,014,792 for the year ended June 30,
2003.
For the year ended June 30, 2003, the Portfolio's expenses were reduced by
$1,103 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 Portfolio's shares. The Distributor
has advised the Portfolio that it has received front-end sales charges of
$16,996 from the sales of Class A shares and $3,950, $262,207 and $16,470 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.
NOTE C
Distribution Services Agreement
The Portfolio has adopted a Distribution Services Agreement (the "Agreement")
pursuant to Rule 12b-1 under the Investment Company Act of 1940. Under the
Agreement, the Portfolio pays distribution and servicing fees to the
Distributor at an annual rate of up to .30 of 1% of the Portfolio's average
daily net assets attributable to Class A shares and 1% of the average daily net
assets attributable
_______________________________________________________________________________
ALLIANCEBERNSTEIN BOND FUND QUALITY BOND PORTFOLIO o 21
to both Class B and Class C shares. There are no distribution and servicing
fees on the Advisor Class shares. The fees are accrued daily and paid monthly.
The Agreement provides that the Distributor will use such payments in their
entirety for distribution assistance and promotional activities. The
Distributor has advised the Portfolio that it has incurred expenses in excess
of the distribution costs reimbursed by the Portfolio in the amount of
$1,076,098 and $332,703 for Class B and Class C shares, respectively. Such
costs may be recovered from the Portfolio 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
Portfolio'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) $ 187,760,261 $ 187,851,912
U.S. government securities 3,158,279,955 3,029,098,566
At June 30, 2003, the cost of investments for federal income tax purposes,
gross unrealized appreciation and unrealized depreciation are as follows:
Cost $ 602,454,010
--------------
Gross unrealized appreciation $ 10,147,563
Gross unrealized depreciation (1,139,244)
--------------
Net unrealized appreciation $ 9,008,319
--------------
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 foreign
portfolio holdings and to hedge certain firm purchase and sale 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 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.
_______________________________________________________________________________
22 o ALLIANCEBERNSTEIN BOND FUND QUALITY BOND 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 a counterparty to meet the
terms of a contract and from unanticipated movements in the value of a foreign
currency relative to the U.S. dollar. The face or contract amount, in U.S.
dollars, reflects the total exposure the Portfolio has in that particular
currency contract.
NOTE E
Securities Lending
The Portfolio has entered into a securities lending agreement with AG Edwards
& Sons, Inc. (the "Lending Agent"). Under the terms of the agreement, the
Lending Agent, on behalf of the Portfolio, administers the lending of portfolio
securities to certain broker-dealers. In return, the Portfolio receives fee
income from the lending transactions or it retains a portion of interest on the
investment of any cash received as collateral. The Portfolio also continues to
receive dividends or interest on the securities loaned. Unrealized gain or loss
on the value of the securities loaned that may occur during the term of the
loan will be reflected in the accounts of the Portfolio. All loans are
continuously secured by collateral exceeding the value of the securities
loaned. All collateral consists of either cash or U.S. government securities.
The Lending Agent may invest the cash collateral received in accordance with
the investment restrictions of the Portfolio in one or more of the following
investments: U.S. government or U.S. government agency obligations, bank
obligations, corporate debt obligations, asset-backed securities, investment
funds, structured products, repurchase agreements and an eligible money market
fund. The Lending Agent will indemnify the Portfolio for any loss resulting
from a borrower's failure to return a loaned security when due. As of June 30,
2003, the Portfolio had loaned securities with a value of $164,470,803 and
received cash collateral of $168,050,751, of which $167,953,254 was invested in
short-term investments as included in the footnotes to the accompanying
portfolio of investments. For the year ended June 30, 2003, the Portfolio
earned fee income of $110,476 which is included in interest income in the
accompanying statement of operations.
NOTE F
Capital Stock
There are 12,000,000,000 shares of $.001 par value capital stock authorized,
divided into four classes, designated Class A, Class B, Class C and Advisor
Class
_______________________________________________________________________________
ALLIANCEBERNSTEIN BOND FUND QUALITY BOND PORTFOLIO o 23
shares. 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 7,320,478 4,696,262 $ 77,100,650 $ 49,488,409
- -------------------------------------------------------------------------------
Shares issued in
reinvestment of
dividends and
distributions 188,816 130,123 1,997,352 1,344,953
- -------------------------------------------------------------------------------
Shares converted
from Class B 183,885 118,430 1,956,325 521,783
- -------------------------------------------------------------------------------
Shares redeemed (4,991,928) (2,534,079) (52,684,749) (26,178,704)
- -------------------------------------------------------------------------------
Net increase 2,701,251 2,410,736 $ 28,369,578 $ 25,176,441
===============================================================================
Class B
Shares sold 10,491,815 4,915,718 $ 110,463,465 $ 50,969,528
- -------------------------------------------------------------------------------
Shares issued in
reinvestment of
dividends and
distributions 187,182 97,916 1,979,554 1,011,618
- -------------------------------------------------------------------------------
Shares converted
to Class A (183,857) (118,478) (1,956,325) (521,783)
- -------------------------------------------------------------------------------
Shares redeemed (4,937,099) (1,346,260) (52,323,161) (14,625,886)
- -------------------------------------------------------------------------------
Net increase 5,558,041 3,548,896 $ 58,163,533 $ 36,833,477
===============================================================================
Class C
Shares sold 3,020,966 1,732,851 $ 31,610,879 $ 17,979,445
- -------------------------------------------------------------------------------
Shares issued in
reinvestment of
dividends and
distributions 40,953 28,077 431,766 290,031
- -------------------------------------------------------------------------------
Shares redeemed (2,189,012) (606,701) (22,969,541) (6,294,895)
- -------------------------------------------------------------------------------
Net increase 872,907 1,154,227 $ 9,073,104 $ 11,974,581
===============================================================================
Advisor Class
Shares sold 6,206,900 15,000,776 $ 65,432,463 $ 155,281,551
- -------------------------------------------------------------------------------
Shares issued in
reinvestment of
dividends and
distributions 854,656 576,188 9,029,421 5,942,746
- -------------------------------------------------------------------------------
Shares redeemed (2,365,708) (204,144) (24,532,768) (2,101,709)
- -------------------------------------------------------------------------------
Net increase 4,695,848 15,372,820 $ 49,929,116 $ 159,122,588
===============================================================================
_______________________________________________________________________________
24 o ALLIANCEBERNSTEIN BOND FUND QUALITY BOND PORTFOLIO
NOTE G
Joint Credit Facility
A number of open-end mutual funds managed by the Adviser, including the
Portfolio, participate in a $750 million revolving credit facility (the
"Facility") intended to provide short-term financing if necessary, 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 Portfolio did not utilize the
Facility during the year ended June 30, 2003.
NOTE H
Distributions to Shareholders
The tax character of distributions paid during the fiscal years ended June 30,
2003 and June 30, 2002 were as follows:
2003 2002
============= =============
Distributions paid from:
Ordinary income $ 15,322,558 $ 9,824,526
Net long-term capital gains -0- 53,837
------------- -------------
Total taxable distributions 15,322,558 9,878,363
------------- -------------
Total distributions paid $ 15,322,558 $ 9,878,363(a)
============= =============
As of June 30, 2003, the components of accumulated earnings/(deficit) on a tax
basis were as follows:
Undistributed ordinary income $ 6,934,334
Undistributed long-term capital gains 2,678,430
Accumulated capital and other losses (282,560)(b)
Unrealized appreciation/(depreciation) 9,008,319(c)
-------------
Total accumulated earnings/(deficit) $ 18,338,523
=============
(a) Total distributions paid differ from the Statement of Changes in Net
Assets because for tax purposes dividends are recognized when actually paid.
(b) Net foreign currency 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 foreign currency losses of $282,560.
(c) The difference between book-basis and tax-basis unrealized
appreciation/(depreciation) are attributable primarily to the tax deferral of
losses on wash sales and the difference between book and tax amortization
methods for premium and market discount.
During the current fiscal year, permanent differences, primarily due to foreign
currency transactions, tax character of distributions, tax character of paydown
losses and the tax treatment of bond premium, resulted in a net decrease in
distributions in excess of net investment income and a net decrease in
accumulated net realized gain on investment and foreign currency transactions.
This reclassification had no effect on net assets.
_______________________________________________________________________________
ALLIANCEBERNSTEIN BOND FUND QUALITY BOND PORTFOLIO o 25
FINANCIAL HIGHLIGHTS
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
Class A
--------------------------------------------------
July 1,
Year Ended June 30, 1999(b) to
------------------------------------- June 30,
2003 2002(a) 2001 2000
----------- ----------- ----------- -----------
Net asset value, beginning of period $10.25 $10.22 $9.85 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income(c)(d) .33 .46 .55 .60
Net realized and unrealized gain (loss) on
investment and foreign currency
transactions .66 .17 .42 (.21)
Net increase in net asset value from
operations .99 .63 .97 .39
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.42) (.46) (.55) (.54)
Distributions in excess of net investment
income -0- (.10) (.04) -0-
Distributions from net realized gain on
investment transactions -0- (.01) (.01) -0-
Distributions in excess of net realized
gain on investment transactions -0- (.03) -0- -0-
Total dividends and distributions (.42) (.60) (.60) (.54)
Net asset value, end of period $10.82 $10.25 $10.22 $9.85
TOTAL RETURN
Total investment return based on
net asset value(e) 9.87% 6.23% 10.09% 4.40%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(000's omitted) $76,565 $44,852 $20,068 $5,071
Ratio to average net assets of:
Expenses, net of waivers/
reimbursements .98% .98% .98% .98%(f)
Expenses, before waivers/
reimbursements 1.32% 1.48% 2.85% 13.10%(f)
Net investment income(d) 3.08% 4.39% 5.49% 5.96%(f)
Portfolio turnover rate 867% 573% 385% 215%
See footnote summary on page 30.
_______________________________________________________________________________
26 o ALLIANCEBERNSTEIN BOND Fund quality bond Portfolio
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
Class B
--------------------------------------------------
July 1,
Year Ended June 30, 1999(b) to
------------------------------------- June 30,
2003 2002(a) 2001 2000
----------- ----------- ----------- -----------
Net asset value, beginning of period $10.24 $10.21 $9.84 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income(c)(d) .26 .38 .47 .50
Net realized and unrealized gain (loss) on
investment and foreign currency
transactions .66 .16 .43 (.18)
Net increase in net asset value from
operations .92 .54 .90 .32
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.35) (.38) (.47) (.48)
Distributions in excess of net investment
income -0- (.09) (.05) -0-
Distributions from net realized gain on
investment transactions -0- (.01) (.01) -0-
Distributions in excess of net realized
gain on investment transactions -0- (.03) -0- -0-
Total dividends and distributions (.35) (.51) (.53) (.48)
Net asset value, end of period $10.81 $10.24 $10.21 $9.84
TOTAL RETURN
Total investment return based on
net asset value(e) 9.12% 5.52% 9.34% 3.56%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(000's omitted) $113,233 $50,354 $13,960 $1,007
Ratio to average net assets of:
Expenses, net of waivers/
reimbursements 1.68% 1.68% 1.68% 1.68%(f)
Expenses, before waivers/
reimbursements 2.05% 2.19% 3.36% 11.29%(f)
Net investment income(d) 2.41% 3.70% 4.82% 5.32%(f)
Portfolio turnover rate 867% 573% 385% 215%
See footnote summary on page 30.
_______________________________________________________________________________
ALLIANCEBERNSTEIN BOND FUND QUALITY BOND PORTFOLIO o 27
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
Class C
--------------------------------------------------
July 1,
Year Ended June 30, 1999(b) to
------------------------------------- June 30,
2003 2002(a) 2001 2000
----------- ----------- ----------- -----------
Net asset value, beginning of period $10.23 $10.19 $9.83 $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income(c)(d) .26 .38 .48 .51
Net realized and unrealized gain (loss) on
investment and foreign currency
transactions .65 .17 .41 (.20)
Net increase in net asset value from
operations .91 .55 .89 .31
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.35) (.38) (.48) (.48)
Distributions in excess of net investment
income -0- (.09) (.04) -0-
Distributions from net realized gain on
investment transactions -0- (.01) (.01) -0-
Distributions in excess of net realized
gain on investment transactions -0- (.03) -0- -0-
Total dividends and distributions (.35) (.51) (.53) (.48)
Net asset value, end of period $10.79 $10.23 $10.19 $9.83
TOTAL RETURN
Total investment return based on
net asset value(e) 9.03% 5.63% 9.25% 3.47%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(000's omitted) $26,445 $16,131 $4,315 $514
Ratio to average net assets of:
Expenses, net of waivers/
reimbursements 1.68% 1.68% 1.68% 1.68%(f)
Expenses, before waivers/
reimbursements 2.03% 2.19% 3.42% 11.75%(f)
Net investment income(d) 2.41% 3.71% 4.88% 5.35%(f)
Portfolio turnover rate 867% 573% 385% 215%
See footnote summary on page 30.
_______________________________________________________________________________
28 o ALLIANCEBERNSTEIN BOND FUND QUALITY BOND PORTFOLIO
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
Advisor Class
------------------------------------
October 9,
Year Ended June 30, 2000(g) to
------------------------ June 30,
2003 2002(a) 2001
----------- ----------- -----------
Net asset value, beginning of period $10.25 $10.22 $9.97
INCOME FROM INVESTMENT OPERATIONS
Net investment income(c)(d) .36 .48 .42
Net realized and unrealized gain
on investment and foreign currency
transactions .66 .18 .30
Net increase in net asset value from
operations 1.02 .66 .72
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.45) (.48) (.42)
Distributions in excess of net
investment income -0- (.11) (.04)
Distributions from net realized gain on
investment transactions -0- (.01) (.01)
Distributions in excess of net realized
gain on investment transactions -0- (.03) -0-
Total dividends and distributions (.45) (.63) (.47)
Net asset value, end of period $10.82 $10.25 $10.22
TOTAL RETURN
Total investment return based on net
asset value(e) 10.20% 6.57% 7.28%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(000's omitted) $246,127 $185,071 $27,420
Ratio to average net assets of:
Expenses, net of waivers/
reimbursements .68% .68% .68%(f)
Expenses, before waivers/
reimbursements 1.02% 1.20% 2.29%(f)
Net investment income(d) 3.39% 4.69% 5.89%(f)
Portfolio turnover rate 867% 573% 385%
See footnote summary on page 30.
_______________________________________________________________________________
ALLIANCEBERNSTEIN BOND FUND QUALITY BOND PORTFOLIO o 29
(a) As required, effective July 1, 2001, the Portfolio has adopted the
provisions of the AICPA Audit and Accounting Guide, Audits of Investment
Companies, and began amortizing premium on debt securities for financial
statement reporting purposes only. The effect of this change for the year ended
June 30, 2002 was to decrease net investment income per share by $.05, increase
net realized and unrealized gain on investments per share by $.05 for Class A,
B and C, respectively, and by $.06 for the Advisor Class, and decrease the
ratio of net investment income to average net assets from 4.93% to 4.39% for
Class A, from 4.24% to 3.70% for Class B, from 4.25% to 3.71% for Class C and
from 5.24% to 4.69% for Advisor Class. Per share, ratios and supplemental data
for periods prior to July 1, 2001 have not been restated to reflect this change
in presentation.
(b) Commencement of operations.
(c) Based on average shares outstanding.
(d) Net of fees waived and expenses reimbursed 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. Initial sales charges or contingent
deferred sales charges are 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 Portfolio distributions or the redemption of Portfolio
shares. Total investment return calculated for a period of less than one year
is not annualized.
(f) Annualized.
(g) Commencement of distribution.
_______________________________________________________________________________
30 o ALLIANCEBERNSTEIN BOND FUND QUALITY BOND PORTFOLIO
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
To the Shareholders and Board of Directors of AllianceBernstein Bond Fund, Inc.
Quality Bond Portfolio
We have audited the accompanying statement of assets and liabilities, including
the portfolio of investments, of the Quality Bond Portfolio (the "Portfolio")
(one of the portfolios constituting the AllianceBernstein Bond Fund, Inc.,
formerly Alliance Bond Fund, Inc.) as of June 30, 2003, and the related
statement of operations for the year then ended and the statement of changes in
net assets for each of the two years in the period then ended and the financial
highlights for each of the periods indicated therein. These financial
statements and financial highlights are the responsibility of the Portfolio's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with auditing standards generally
accepted in the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements
and financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights. Our procedures included
confirmation of securities owned as of June 30, 2003, by correspondence with
the custodian and others. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Quality Bond Portfolio of the AllianceBernstein Bond Fund, Inc. 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 indicated periods, in conformity with
accounting principles generally accepted in the United States.
/s/ ERNST & YOUNG LLP
New York, New York
August 8, 2003
_______________________________________________________________________________
ALLIANCEBERNSTEIN BOND FUND QUALITY BOND PORTFOLIO o 31
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
Paul J. DeNoon, Vice President
Matthew D.W. Bloom, Vice President
Michael A. Snyder, Vice President
Lawrence J. Shaw, Vice President
S. Sean Kelleher, Vice President
Jeffrey S. Phlegar, Vice President
Edmund P. Bergan, Jr., Secretary
Mark D. Gersten, Treasurer & Chief Financial Officer
Vincent S. Noto, Controller
Custodian
State Street Bank & Trust Company
225 Franklin Street
Boston, MA 02110
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 756003
San Antonio, TX 78278-6003
Toll-Free (800) 221-5672
Independent Auditors
Ernst & Young LLP
5 Times Square
New York, NY 10036
Legal Counsel
Seward & Kissel LLP
One Battery Park Plaza
New York, NY 10004
(1) Member of the Audit Committee.
_______________________________________________________________________________
32 o ALLIANCEBERNSTEIN BOND FUND QUALITY BOND PORTFOLIO
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, AGE OF DIRECTOR, PRINCIPAL COMPLEX DIRECTORSHIPS
ADDRESS OCCUPATION(S) OVERSEEN BY HELD BY
(YEARS OF SERVICE*) DURING PAST 5 YEARS DIRECTOR DIRECTOR
- --------------------------------------------------------------------------------------------------------------------
INTERESTED DIRECTOR
John D. Carifa, **, 58 President, Chief Operating Officer 113 None
1345 Avenue of the and a Director of Alliance Capital
Americas Management Corporation
New York, NY 10105 (4) ("ACMC"),with which he has
been as sociated with since prior
to 1998.
DISINTERESTED DIRECTORS
Ruth Block, #+, 72 Formerly an Executive Vice 94 None
P.O. Box 4623 President and Chief Insurance
Stamford, CT 06903 (4) Officer of The Equitable Life
Assurance Society of the United States;
Chairman and Chief Executive Officer
of Evlico. Formerly a Director of Avon,
BP Amoco Corporation (oil and gas),
Ecolab Incorporated (specialty chemicals),
Tandem Financial Group and Donaldson,
Lufkin & Jenrette Securities
Corporation. Formerly Governor at
Large National Association of Securities
Dealers, Inc.
David H. Dievler, #+, 73 Independent Consultant. Until 98 None
P.O. Box 167 December 1994, Senior Vice
Spring Lake, NJ 07762 (4) President of ACMC 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 the American Institute
of Certified Public Accountants since 1953.
John H. Dobkin, #+, 61 Consultant. Formerly a President 95 None
P.O. Box 12 of Save Venice, Inc. from 2001-
Annandale, NY 12504 (4) 2002, Senior Advisor from June
1999-June 2000 and President of Historic
Hudson Valley from December 1989-May 1999.
Previously, Director of the National
Academy of Design and during 1988-1992,
Director and Chairman of the Audit
Committee of ACMC.
_______________________________________________________________________________
ALLIANCEBERNSTEIN BOND FUND QUALITY BOND PORTFOLIO o 33
PORTFOLIOS
IN FUND OTHER
NAME, AGE OF DIRECTOR, PRINCIPAL COMPLEX DIRECTORSHIPS
ADDRESS 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 110 None
2 Sound View Drive Independent Consultant.
Suite 100 Formerly Senior Manager of
Greenwich, CT 06830 (4) Barrett Associates, Inc., a
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, #+, 64 Senior Counsel of the law firm of 94 Placer Dome, Inc.
15 St. Bernard's Road Cahill Gordon & Reindel since
Gladstone, NJ 07934 (4) February 2001 and a partner of
that firm for more than twenty-five
years prior thereto. President and Chief
Executive Officer of Wenonah Development
Company (investments) and a Director of
Placer Dome, Inc. (mining).
Donald J. Robinson, #+, 69 Senior Counsel to the law firm of 93 None
98 Hell's Peak Road Orrick, Herrington & Sutcliffe LLP
Weston, VT 05161 (4) since prior to 1998. Formerly a
senior partner and a member of the
Executive Committee of that firm.
Formerly 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.
_______________________________________________________________________________
34 o ALLIANCEBERNSTEIN BOND FUND QUALITY BOND PORTFOLIO
Officer Information
Certain information concerning the Fund's Officers is set forth below.
NAME, POSITION(S) PRINCIPAL OCCUPATION
ADDRESS* AND AGE HELD WITH FUND DURING PAST 5 YEARS**
- --------------------------------------------------------------------------------------------------------------
Kathleen A. Corbet, (43) Senior Vice President Executive Vice President of Alliance Capital
Management Corporation (ACMC)** with which
she has been associated since prior to 1998.
Matthew D.W. Bloom, (47) Vice President Senior Vice President of ACMC,** with which he
has been associated since prior to 1998.
Jeffrey S. Phlegar, (37) Vice President Vice President of ACMC,** with which he has
been associated since prior to 1998.
S. Sean Kelleher, (42) Vice President Senior Vice President of ACMC since 1999.
Previously, a manager of the MBS swaps desk at
Deutsche Bank since 1997 and worked in fixed
income research at Merrill Lynch since prior
to 1998.
Paul J. DeNoon, (41) Vice President Senior Vice President of ACMC,** with which he
has been associated since prior to 1998.
Edmund P. Bergan, Jr., (53) Secretary Senior Vice President and 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 Senior Vice President of AGIS,** with which
Chief Financial Officer 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.
** 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.
_______________________________________________________________________________
ALLIANCEBERNSTEIN BOND FUND QUALITY BOND PORTFOLIO o 35
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 CapValue Fund
Utility Income Fund
Value Fund
Blended Style Series
U.S. Large Cap Portfolio
Global & International Stock Funds
All-Asia Investment Fund
Global Small Cap Fund
Greater China '97 Fund
International Premier Growth Fund
New Europe Fund
Worldwide Privatization Fund
Select Investor Series
Biotechnology Portfolio
Premier Portfolio
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.
_______________________________________________________________________________
36 o ALLIANCEBERNSTEIN BOND FUND QUALITY BOND PORTFOLIO
ALLIANCEBERNSTEIN BOND FUND QUALITY BOND PORTFOLIO
1345 Avenue of the Americas
New York, NY 10105
(800) 221-5672
AllianceBernstein [LOGO](SM)
Investment Research and Management
SM This service mark used under license from the owner, Alliance Capital
Management L.P.
QBPAR0603
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 Bond 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