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.
- -------------------------------------------------------------------------------
U.S. Government Fixed Income
- -------------------------------------------------------------------------------
AllianceBernstein [LOGO](SM)
Investment Research and Management
AllianceBernstein Bond Fund
U.S. Government 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 14, 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 U.S. Government Portfolio (the "Portfolio") for the
annual reporting period ended June 30, 2003.
Investment Objective and Policies
This open-end fund seeks a high level of current income that is consistent with
Alliance's determination of prudent investment risk. The Portfolio invests
primarily in U.S. government securities, repurchase agreements and forward
contracts relating to U.S. government securities.
Investment Results
The following table shows the performance of the Portfolio for the six- and
12-month periods ended June 30, 2003. Also included in the table are returns
for the Portfolio's benchmark, the Lehman Brothers (LB) Government Bond Index,
which represents the U.S. government bond market, and the Lipper General U.S.
Government Funds Average (the "Lipper Average").
INVESTMENT RESULTS*
Periods Ended June 30, 2003
---------------------------------
Returns
---------------------------------
6 Months 12 Months
-------------- --------------
AllianceBernstein
Bond Fund U.S. Government
Portfolio
Class A 2.78% 8.82%
- ------------------------------------------------------------
Class B 2.43% 8.07%
- ------------------------------------------------------------
Class C 2.42% 8.06%
- ------------------------------------------------------------
Lehman Brothers
Government Bond Index 3.63% 11.34%
- ------------------------------------------------------------
Lipper General
U.S. Government
Funds Average 2.46% 8.63%
- ------------------------------------------------------------
* 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. Past
performance is no guarantee of future results.
_______________________________________________________________________________
ALLIANCEBERNSTEIN BOND FUND U.S. GOVERNMENT PORTFOLIO o 1
The unmanaged Lehman Brothers (LB) Government Bond Index is composed of the LB
U.S. Treasury and Agency Bond Indices, the LB 1-3 Year Government Index and the
LB 20+ Year Treasury Index. The unmanaged Lipper General U.S. Government Funds
Average is based on the performance of a universe of funds that invests at
least 65% of their assets in U.S. government and agency issues. These funds
generally have similar investment objectives to the Portfolio, although
investment policies for the various funds may differ. In particular, many funds
in the Lipper U.S. government universe are not required to invest solely in
securities backed by the full faith and credit of the U.S. For the six- and
12-month periods ended June 30, 2003, the Lipper Average consisted of 186 and
180 funds, respectively. An investor cannot invest directly in an index, and
its results are not indicative of any particular investment, including
AllianceBernstein Bond Fund U.S. Government Portfolio.
Additional investment results appear on page 6.
For the six- and 12-month periods ended June 30, 2003, the Portfolio
underperformed its benchmark, the Lehman Brothers Government Bond Index.
The Portfolio's interest rate exposure was the primary source of
underperformance versus the benchmark, as it was positioned for a period of
rising rates at the start of the year. In April, the U.S. Federal Reserve
announced concerns about deflation risk and moved to an easing bias, finally
cutting interest rates by 25 basis points to 1.00% at its June meeting.
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.
Notwithstanding a dramatic decline in Treasury yields, government bonds were
the weakest performers in
_______________________________________________________________________________
2 o ALLIANCEBERNSTEIN BOND FUND U.S. GOVERNMENT PORTFOLIO
the fixed income markets. Continued bank demand for mortgage-backed securities
in the face of skyrocketing prepayment risk helped support prices in the
mortgage sector, which returned 0.7% in the second quarter. Mortgage rates
continued to plummet, hitting 4.7% in May. Investor wariness about the new
prepayment frontier led to the outperformance of lower-coupon and
prepay-sheltered pass-throughs.
During the six-month period, we significantly reduced the Portfolio's exposure
to U.S. government agency securities, as the rating agencies placed Freddie
Mac's subordinated debt on credit watch and spreads on its debt widened. In the
face of a massive refinancing wave, we reduced exposure to mortgage-backed
securities and increased the Portfolio's U.S. Treasury holdings. Growing
default rates in the first quarter led us to reduce the Portfolio's commercial
mortgage-backed securities holdings. In asset-backed securities, we focused the
Portfolio's holdings in upper-tier names that we believed were well protected
from the looming regulatory and legal issues troubling the sector.
_______________________________________________________________________________
ALLIANCEBERNSTEIN BOND FUND U.S. GOVERNMENT PORTFOLIO o 3
PERFORMANCE UPDATE
ALLIANCEBERNSTEIN BOND FUND U.S. GOVERNMENT PORTFOLIO
GROWTH OF A $10,000 INVESTMENT
6/30/93 - 6/30/03
Lehman Brothers Government Bond Index: $19,968
Lipper General U.S. Government Funds Average: $18,040
AllianceBernstein Bond Fund U.S. Government Portfolio Class A: $16,734
[THE FOLLOWING TABLE WAS DEPICTED BY A MOUNTAIN CHART IN THE PRINTED MATERIAL.]
AllianceBernstein Lehman Lipper
Bond Fund U.S. Brothers General
Government Government U.S. Government
Portfolio Bond Index Funds Average
- -------------------------------------------------------------------------------
6/30/93 $ 9,579 $ 10,000 $ 10,000
6/30/94 $ 9,394 $ 9,866 $ 9,749
6/30/95 $ 10,368 $ 11,056 $ 10,486
6/30/96 $ 10,549 $ 11,555 $ 11,222
6/30/97 $ 11,233 $ 12,410 $ 12,021
6/30/98 $ 12,357 $ 13,806 $ 13,302
6/30/99 $ 12,584 $ 14,227 $ 13,521
6/30/00 $ 13,139 $ 14,939 $ 14,053
6/30/01 $ 14,360 $ 16,483 $ 15,402
6/30/02 $ 15,380 $ 17,935 $ 16,633
6/30/03 $ 16,734 $ 19,968 $ 18,040
This chart illustrates the total value of an assumed $10,000 investment in
AllianceBernstein Bond Fund U.S. Government Portfolio Class A shares (from
6/30/93 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 $10,000 investment
in the Portfolio and assumes the reinvestment of dividends and capital gains.
Performance for Class B, Class C and Advisor Class shares will vary from the
results shown above due to differences in expenses charged to these classes.
Past performance is not indicative of future results, and is not representative
of future gain or loss in capital value or dividend income.
The unmanaged Lehman Brothers (LB) Government Bond Index is composed of the LB
U.S. Treasury and Agency Bond Indices, the LB 1-3 Year Government Index and the
LB 20+ Year Treasury Index.
The unmanaged Lipper General U.S. Government Funds Average is based on the
performance of 64 funds (based on the number of funds in the average from
6/30/93 to 6/30/03). These funds generally have similar investment objectives
to the Portfolio, although investment policies for the various funds may differ.
When comparing AllianceBernstein Bond Fund U.S. Government Portfolio to the
index and average shown above, you should note that no sales charges are
reflected in the performance of the index. An investor cannot invest directly
in an index or an average, and its results are not indicative of any specific
investment, including AllianceBernstein Bond Fund U.S. Government Portfolio.
_______________________________________________________________________________
4 o ALLIANCEBERNSTEIN BOND FUND U.S. GOVERNMENT PORTFOLIO
PORTFOLIO SUMMARY
June 30, 2003
INCEPTION DATES
Class A Shares
12/1/85
Class B Shares
9/30/91
Class C Shares
5/3/93
PORTFOLIO STATISTICS
Net Assets ($mil): $1,786.4
SECURITY TYPE
43.1% U.S. Treasury
18.3% Federal National Mortgage Association
14.9% Collateralized Mortgage Obligations/
Asset Backed Securities [PIE CHART OMITTED]
8.5% Federal Home Loan Mortgage Corporation
3.6% Government National Mortgage Association
2.0% Stripped MBS
0.9% Federal Agricultural Mortgage Corp.
Short-Term
8.7% Repurchase Agreement
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.
_______________________________________________________________________________
ALLIANCEBERNSTEIN BOND FUND U.S. GOVERNMENT PORTFOLIO o 5
INVESTMENT RESULTS
AVERAGE ANNUAL RETURNS AS OF JUNE 30, 2003
Class A Shares
- -------------------------------------------------------------------------------
Without Sales Charge With Sales Charge
1 Year 8.82% 4.20%
5 Years 6.25% 5.32%
10 Years 5.74% 5.28%
SEC Yield* 3.85%
Class B Shares
- -------------------------------------------------------------------------------
Without Sales Charge With Sales Charge
1 Year 8.07% 5.07%
5 Years 5.49% 5.49%
10 Years(a) 5.28% 5.28%
SEC Yield* 3.29%
Class C Shares
- -------------------------------------------------------------------------------
Without Sales Charge With Sales Charge
1 Year 8.06% 7.06%
5 Years 5.52% 5.52%
10 Years 4.98% 4.98%
SEC Yield* 3.29%
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.
* SEC yields are based on SEC guidelines and are calculated on 30 days ended
June 30, 2003.
(a) Assumes conversion of Class B shares into Class A shares after six years.
_______________________________________________________________________________
6 o ALLIANCEBERNSTEIN BOND FUND U.S. GOVERNMENT PORTFOLIO
PORTFOLIO OF INVESTMENTS
June 30, 2003
Principal
Amount
(000) U.S. $ Value
- -------------------------------------------------------------------------------
U.S. GOVERNMENT & AGENCY OBLIGATIONS-76.2%
U.S. Treasury Bonds-29.5%
5.375%, 2/15/31 $ 10,000 $ 11,263,680
6.125%, 11/15/27 45,000 54,791,055
6.25%, 8/15/23 75,000 91,892,625
6.375%, 8/15/27 40,000 50,120,320
7.125%, 2/15/23 45,000 60,315,840
7.25%, 5/15/16 20,000 26,604,700
7.50%, 11/15/16 95,000 128,988,530
11.25%, 2/15/15 20,000 34,087,500
12.50%, 8/15/14 45,150 69,659,768
---------------
527,724,018
---------------
U.S. Treasury Notes-14.6%
2.00%, 5/15/06 92,000 93,006,296
2.625%, 5/15/08 10,000 10,094,540
3.625%, 5/15/13 45,000 45,365,670
3.875%, 2/15/13 16,100 16,572,310
4.00%, 11/15/12 91,700 95,450,438
---------------
260,489,254
---------------
Federal National Mortgage Association-18.7%
Zero coupon, 2/15/08 22,130 19,570,533
2.90%, 10/25/32 9,027 9,132,796
5.00%, TBA 50,000 50,406,250
5.50%, 9/25/13-4/25/33 112,507 57,759,181
6.00%, 12/01/13-11/25/27 39,308 41,053,410
7.00%, 4/01/07-1/01/21 119,859 127,476,979
7.50%, 12/01/09 4,832 5,135,328
8.00%, 3/25/07 3,876 4,118,704
8.50%, 4/01/08 3,461 3,650,000
9.00%, 8/01/21 1,058 1,171,047
10.00%, 11/01/13-10/01/14 12,549 14,189,212
11.00%, 7/01/16 1,049 1,214,797
---------------
334,878,237
---------------
Federal Home Loan Mortgage Corp.-8.8%
1.58%, 2/15/33 18,926 18,973,576
4.05%, 6/21/05 25,000 25,685,500
6.00%, 3/15/23 17,120 17,719,564
6.25%, 1/15/27 5,981 6,052,610
6.75%, 3/15/31 60,000 74,961,840
7.00%, 12/01/10 5,174 5,464,982
8.00%, 9/01/11 2,272 2,399,930
12.00%, 8/01/15-7/01/20 4,400 5,123,115
---------------
156,381,117
---------------
_______________________________________________________________________________
ALLIANCEBERNSTEIN BOND FUND U.S. GOVERNMENT PORTFOLIO o 7
Principal
Amount
(000) U.S. $ Value
- -------------------------------------------------------------------------------
Government National Mortgage Association-3.7%
Single Family Homes
7.50%, 12/15/14-3/15/32 $ 45,641 $ 48,924,404
8.00%, 3/15/12 10,408 11,242,691
8.15%, 9/15/20 1,593 1,731,111
9.00%, 12/15/09-12/15/19 3,301 3,621,675
---------------
65,519,881
---------------
Federal Agricultural Mortgage Association-0.9%
6.725%, 7/25/13 15,219 16,591,325
---------------
Total U.S. Government & Agency Obligations
(cost $1,304,780,227) 1,361,583,832
---------------
ASSET BACKED SECURITIES-5.9%
Ameriquest Mortgage Securities, Inc.
Series 2002-3 Cl.AV2
1.335%, 9/25/32 6,052 6,060,003
GMAC Commercial Mortgage Securities, Inc.
Series 2003-FL1AC Cl.A
1.623%, 3/11/15(a) 24,634 24,630,565
MLCC Mortgage Investors, Inc.
Series 2003-C Cl.A1
1.358%, 6/25/28 15,000 15,000,000
Renaissance Home Equity Loan Trust
Series 2003-2 Cl.A
1.468%, 8/25/33 25,000 25,000,000
Residential Asset Securities Corp.
Series 2002-KS8 Cl.A3
3.69%, 4/25/27 10,000 10,310,200
Specialty Underwriting & Residential Finance
Series 2003-BC1 Cl.A
1.375%, 1/25/34 9,633 9,636,183
Winston Funding, Ltd.
Series 2003-1 Cl.A2
2.18%, 4/23/09(a) 15,000 15,000,000
---------------
Total Asset Backed Securities
(cost $105,302,464) 105,636,951
---------------
COLLATERALIZED MORTGAGE OBLIGATIONS-5.1%
Citicorp Mortgage Securities, Inc.
Series 1987-3 Cl.A1
9.00%, 5/25/17 2,367 2,367,357
MLCC Mortgage Investors, Inc.
Series 2003B Cl.A1
1.375%, 4/25/28 10,849 10,848,834
_______________________________________________________________________________
8 o ALLIANCEBERNSTEIN BOND FUND U.S. GOVERNMENT PORTFOLIO
Principal
Amount
(000) U.S. $ Value
- -------------------------------------------------------------------------------
Prudential Home Mortgage Securities Co.
Series 1994-1 Cl.A11
6.00%, 2/25/09 $ 28,030 $ 28,240,225
Structured Asset Securities Corp.
Series 2003-20 Cl.1A1
5.50%, 7/25/33 18,495 19,090,354
Series 2003-7H Cl.A11
6.00%, 3/25/33 23,684 24,475,849
Summit Mortgage Trust
Series 2003-1 Cl.1A1
6.88%, 4/28/35 6,634 6,752,151
---------------
Total Collateralized Mortgage Obligations
(cost $92,102,859) 91,774,770
---------------
COMMERCIAL MORTGAGE BACKED SECURITIES-4.2%
Asset Securitization Corp.
Series 1997-MD7 Cl.A1B
7.41%, 1/13/30 16,847 18,983,368
Commercial Mortgage Acceptance Corp.
Series 1997-ML1 Cl.A2
6.53%, 6/15/07 13,077 14,063,267
Merrill Lynch Mortgage Investors, Inc.
Series 1995-C3 Cl.D
7.847%, 12/26/25 20,016 22,105,470
Morgan Stanley Capital I
Series 1998-CF1 Cl.A1
6.33%, 7/15/32 9,617 9,998,147
Teachers Insurance & Annuity Association
Series 2001-Cl Cl.A2
6.30%, 6/19/21(a) 8,708 9,662,770
---------------
Total Commercial Mortgage Backed Securities
(cost $70,214,734) 74,813,022
---------------
STRIPPED MORTGAGE BACKED SECURITIES-2.1%
Banc of America Commercial Mortgage, Inc.
Series 2002-2, Cl.XP
1.803%, 7/11/43(a) 90,000 8,291,700
Credit Suisse First Boston Mortgage
Series 2001-CK3 Cl.AX
1.275%, 6/15/34(a) 38,319 2,258,504
Greenwich Capital Commercial Funding Corp.
Series 2003-C1 Cl.XC
zero coupon, 7/05/35(a) 113,250 4,972,807
Morgan Stanley Capital I
Series 2003-IQ4 Cl.X1
zero coupon, 5/15/40(a) 103,000 3,515,390
_______________________________________________________________________________
ALLIANCEBERNSTEIN BOND FUND U.S. GOVERNMENT PORTFOLIO o 9
Principal
Amount
(000) U.S. $ Value
- -------------------------------------------------------------------------------
Mortgage Capital Funding, Inc.
Series 1996-MC2 Cl.X
2.03%, 12/21/26 $ 104,715 $ 4,377,100
Prudential Securities Secured Financing Corp.
Series 1999-NRF1 Cl.AEC
zero coupon, 11/01/31(a) 342,951 13,296,227
SACO I, Inc.
Series 1997-2 Cl.X
1.59%, 8/25/36(a) 31,275 713,998
---------------
Total Stripped Mortgage Backed Securities
(cost $43,383,354) 37,425,726
---------------
SHORT-TERM INVESTMENT-8.9%
Repurchase Agreement-8.9%
State Street Bank and Trust Co.
1.12%, dated 6/30/03, due 7/01/03 in the
amount of $158,424,929 (collateralized
by $23,775,000 FHLB, 1.40%, 9/17/04,
value $23,890,570, $91,650,000 FNMA,
1.30%, 6/7/04, value $91,808,830 and
$45,275,000 FHLB, 2.125%, 12/15/04,
value $45,902,240)
(cost $158,420,000) 158,420 158,420,000
---------------
Total Investments-102.4%
(cost $1,774,203,638) 1,829,654,301
Other assets less liabilities*-(2.4%) (43,278,409)
---------------
Net Assets-100% $ 1,786,375,892
===============
See footnote summary on page 11.
_______________________________________________________________________________
10 o ALLIANCEBERNSTEIN BOND FUND U.S. GOVERNMENT PORTFOLIO
* SECURITIES LENDING INFORMATION
Includes cash collateral received of $549,466,250 (representing 30.8% of net
assets) for securities on loan as of June 30, 2003 (see Note E). The lending
agent invested the cash collateral in short-term investments and interest
received on these investments as follows:
Principal
Current Amount
Short-Term Investments Yield (000) U.S.$ Value
=============== ============= =============
Associated Finance, 11/01/03 1.50% $ 1,800 $ 1,880,894
Bank America, 6/15/04 1.26% 25,295 27,452,923
Deutsche Bank, 2/2/04 1.34% 50,000 50,000,000
FHLB, 6/25/04 - 6/28/04 1.246% - 1.30% 50,000 50,000,000
FNMA, 5/5/05 2.00% 34,128 34,128,000
General Electric, 11/3/03 - 3/19/04 1.27% - 1.44% 13,245 14,024,222
Household Finance, 7/15/03 - 5/1/04 1.35% - 2.79% 61,954 62,966,568
JPM, 8/15/03 1.48% 1,000 1,075,776
K2 (USA) LLC, 4/26/04 1.55% 10,000 10,040,972
LB Baden-Wuerttemberg, 4/15/04 1.27% 5,000 5,332,956
Lion Connecticut, 8/3/15 1.89% 10,000 10,499,467
National Westminister Bancorp, 11/15/03 1.50% 5,000 5,401,715
Sigma, 12/15/03 - 6/16/04 1.26% - 1.52% 150,000 150,101,108
Wells Fargo, 11/1/03 1.30% 1,640 1,680,249
ZCM Matched Funding, 7/11/03 - 7/14/03 1.21% - 1.31% 110,000 109,813,954
------------
534,398,804
Shares
============
UBS Private Money Market Fund, LLC 1.15% 15,300,533 15,300,533
------------
Total Short-Term Investments $549,699,337
============
(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 $82,341,961 or 4.6% of net
assets.
Glossary of Terms:
FHLB - Federal Home Loan Bank
FNMA - Federal NationalMortgage Association
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.
_______________________________________________________________________________
ALLIANCEBERNSTEIN BOND FUND U.S. GOVERNMENT PORTFOLIO o 11
STATEMENT OF ASSETS & LIABILITIES
June 30, 2003
ASSETS
Investments in securities, at value (cost $1,774,203,638) $ 1,829,654,301(a)
Cash 43,912,986
Collateral held for securities loaned 549,466,250
Receivable for investment securities sold 345,375,725
Interest receivable 15,329,873
Receivable for capital stock sold 3,334,465
---------------
Total assets 2,787,073,600
---------------
LIABILITIES
Payable for collateral received on securities loaned 549,466,250
Payable for investment securities purchased 439,271,041
Payable for capital stock redeemed 6,305,766
Advisory fee payable 2,359,546
Dividends payable 1,792,630
Distribution fee payable 812,152
Accrued expenses 690,323
---------------
Total liabilities 1,000,697,708
---------------
Net Assets $ 1,786,375,892
===============
COMPOSITION OF NET ASSETS
Capital stock, at par $ 238,423
Additional paid-in capital 1,939,621,597
Distributions in excess of net investment income (12,613,658)
Accumulated net realized loss on investment transactions (196,319,234)
Net unrealized appreciation of investments 55,448,764
---------------
$ 1,786,375,892
===============
CALCULATION OF MAXIMUM OFFERING PRICE
Class A Shares
Net asset value and redemption price per share
($889,114,693 / 118,700,915 shares of
capital stock issued and outstanding) $7.49
Sales charge--4.25% of public offering price .33
-----
Maximum offering price $7.82
=====
Class B Shares
Net asset value and offering price per share
($495,606,374 / 66,177,727 shares of
capital stock issued and outstanding) $7.49
=====
Class C Shares
Net asset value and offering price per share
($204,005,687 / 27,204,691 shares of
capital stock issued and outstanding) $7.50
=====
Advisor Class Shares
Net asset value, redemption and offering price per share
($197,649,138 / 26,339,599 shares of
capital stock issued and outstanding) $7.50
=====
(a) Includes securities on loan with a value of $532,711,592 (see Note E).
See notes to financial statements.
_______________________________________________________________________________
12 o ALLIANCEBERNSTEIN BOND FUND U.S. GOVERNMENT PORTFOLIO
STATEMENT OF OPERATIONS
Year Ended June 30, 2003
INVESTMENT INCOME
Interest $ 86,923,790
EXPENSES
Advisory fee $ 9,698,623
Distribution fee--Class A 2,702,157
Distribution fee--Class B 5,220,716
Distribution fee--Class C 2,293,231
Transfer agency 3,546,502
Printing 496,678
Custodian 402,874
Administrative 124,000
Audit and legal 114,788
Registration fees 74,141
Directors' fees 18,000
Miscellaneous 97,318
------------
Total expenses before interest 24,789,028
Interest expense 226,944
------------
Total expenses 25,015,972
Less: expense offset arrangement
(see Note B) (2,955)
------------
Net expenses 25,013,017
------------
Net investment income 61,910,773
------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENT TRANSACTIONS
Net realized gain (loss) on:
Investment transactions 53,152,476
Written options 954,531
Futures (6,605,444)
Swap contracts (7,714,477)
Net change in unrealized appreciation/
depreciation of:
Investments 42,249,044
Futures 1,239,412
Swap contracts 2,598,092
------------
Net gain on investment transactions 85,873,634
------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $147,784,407
============
See notes to financial statements.
_______________________________________________________________________________
ALLIANCEBERNSTEIN BOND FUND U.S. GOVERNMENT PORTFOLIO o 13
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 $ 61,910,773 $ 76,503,030
Net realized gain (loss) on investment
transactions 39,787,086 (2,033)
Net change in unrealized appreciation/
depreciation of investments 46,086,548 20,025,936
-------------- --------------
Net increase in net assets from
operations 147,784,407 96,526,933
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS FROM
Net investment income
Class A (41,821,063) (45,917,533)
Class B (20,589,855) (16,272,061)
Class C (9,059,572) (8,987,433)
Advisor Class (8,628,587) (5,326,003)
Distributions in excess of net
investment income
Class A -0- (3,697,433)
Class B -0- (1,310,281)
Class C -0- (722,436)
Advisor Class -0- (428,868)
Tax return of capital
Class A -0- (3,106,367)
Class B -0- (1,100,822)
Class C -0- (606,948)
Advisor Class -0- (360,309)
CAPITAL STOCK TRANSACTIONS
Net increase 72,866,684 279,883,858
-------------- --------------
Total increase 140,552,014 288,574,297
NET ASSETS
Beginning of period 1,645,823,878 1,357,249,581
-------------- --------------
End of period $1,786,375,892 $1,645,823,878
============== ==============
See notes to financial statements.
_______________________________________________________________________________
14 o ALLIANCEBERNSTEIN BOND FUND U.S. GOVERNMENT PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
June 30, 2003
NOTE A
Significant Accounting Policies
AllianceBernstein Bond Fund, Inc. (the "Fund"), formerly Alliance BondFund,
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 U.S.
Government Portfolio. The U.S. Government 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 any 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:
_______________________________________________________________________________
ALLIANCEBERNSTEIN BOND FUND U.S. GOVERNMENT PORTFOLIO o 15
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. Taxes
It is the Portfolio's policy to meet the requirements of the Internal Revenue
Code applicable to regulated investment companies and to distribute all of its
investment company taxable income and net realized gains, if any, to
shareholders. Therefore, no provisions for Federal income or excise taxes are
required.
3. 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.
_______________________________________________________________________________
16 o ALLIANCEBERNSTEIN BOND FUND U.S. GOVERNMENT PORTFOLIO
4. 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 the 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.
5. 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.
6. Repurchase Agreements
It is the Portfolio's policy that its custodian or designated subcustodian take
control of securities as collateral under repurchase agreements and to
determine on a daily basis that the value of such securities are sufficient to
cover the value of the repurchase agreements. If the seller defaults and the
value of the collateral declines or if bankruptcy proceedings are commenced
with respect to the seller of the security, realization of collateral by the
Portfolio may be delayed or limited.
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 a quarterly
rate of .15 of 1% (approximately .60 of 1% on an annual basis) of the first
$500 million of the Portfolio's net assets and .125 of 1% (approximately .50 of
1% on an annual basis) of its net assets over $500 million, valued on the last
business day of the previous quarter.
Pursuant to the advisory agreement, the Portfolio paid $124,000 to the Adviser
representing the cost of certain legal and accounting services provided to the
Portfolio by the Adviser for the year ended June 30, 2003.
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 $2,495,897 for the year ended June 30,
2003.
_______________________________________________________________________________
ALLIANCEBERNSTEIN BOND FUND U.S. GOVERNMENT PORTFOLIO o 17
For the year ended June 30, 2003, the Portfolio's expenses were reduced by
$2,955 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
$48,272 from the sales of Class A shares and $108,249, $1,116,604 and $64,753
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 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 $6,924,839, and $5,987,124 for Class B and Class C
shares, respectively; such costs may be recovered from the Portfolio in future
periods as 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) $ 383,713,776 $ 341,726,654
U.S. government securities 17,179,858,377 17,244,579,833
_______________________________________________________________________________
18 o ALLIANCEBERNSTEIN BOND FUND U.S. GOVERNMENT PORTFOLIO
At June 30, 2003, the cost of investments for federal income tax purposes,
gross unrealized appreciation and unrealized depreciation are as follows:
Cost $ 1,786,273,989
---------------
Gross unrealized appreciation $ 57,373,390
Gross unrealized depreciation (13,993,078)
---------------
Net unrealized appreciation $ 43,380,312
---------------
1. Financial Futures Contracts
The Portfolio may buy or sell financial futures contracts for the purpose of
hedging its portfolio against adverse effects of anticipated movements in the
market. The Portfolio bears the market risk that arises from changes in the
value of these financial instruments and the imperfect correlation between
movements in the price of the futures contracts and movements in the price of
the securities hedged or used for cover.
At the time the Portfolio enters into a futures contract, the Portfolio
deposits and maintains as collateral an initial margin as required by the
exchange on which the transaction is affected. Pursuant to the contract, the
Portfolio agrees to receive from or pay to the broker an amount of cash equal
to the daily fluctuation in the value of the contract. Such receipts or
payments are known as variation margin and are recorded by the Portfolio as
unrealized gains or losses. Risks may arise from the potential inability of a
counterparty to meet the terms of the contract. When the contract is closed,
the Portfolio records a realized gain or loss equal to the difference between
the value of the contract at the time it was opened and the time it was closed.
2. Swap Agreements
The Portfolio may enter into interest rate swaps to protect itself from
interest rate fluctuations on the underlying debt instruments. A swap is an
agreement that obligates two parties to exchange a series of cash flows at
specified intervals based upon or calculated by reference to changes in
specified prices or rates for a specified amount of an underlying asset. The
payment flows are usually netted against each other, with the difference being
paid by one party to the other.
Risks may arise as a result of the failure of the counterparty to the swap
contract to comply with the terms of the swap contract. The loss incurred by
the failure of a counterparty is generally limited to the net interest payment
to be received by the Portfolio, and/or the termination value at the end of the
contract. Therefore, the Portfolio considers the creditworthiness of each
counterparty to a swap contract in evaluating potential credit risk.
Additionally, risks may arise from unanticipated movements in interest rates or
in the value of the underlying securities.
_______________________________________________________________________________
ALLIANCEBERNSTEIN BOND FUND U.S. GOVERNMENT PORTFOLIO o 19
The Portfolio records a net receivable or payable on a daily basis for the net
interest income or expense expected to be received or paid in the interest
period. Net interest received or paid on these contracts is recorded as
interest income (or as an offset to interest income). Fluctuations in the value
of swap contracts are recorded for financial statement purposes as a component
of net change in unrealized appreciation/depreciation of investments. Realized
gains and losses from terminated swaps are included in net realized gains or
losses on investment transactions.
3. Option Transactions
For hedging and investment purposes, the Portfolio may purchase and write
(sell) put and call options on U.S. and foreign government securities and
foreign currencies that are traded on U.S. and foreign securities exchanges and
over-the-counter markets.
The risk associated with purchasing an option is that the Portfolio pays a
premium whether or not the option is exercised. Additionally, the Portfolio
bears the risk of loss of premium and change in market value should the
counterparty not perform under the contract. Put and call options purchased are
accounted for in the same manner as portfolio securities. The cost of
securities acquired through the exercise of call options is increased by
premiums paid. The proceeds from securities sold through the exercise of put
options are decreased by the premiums paid.
When the Portfolio writes an option, the premium received by the Portfolio is
recorded as a liability and is subsequently adjusted to the current market
value of the option written. Premiums received from writing options which
expire unexercised are recorded by the Portfolio on the expiration date as
realized gains from options written. The difference between the premium
received and the amount paid on effecting a closing purchase transaction,
including brokerage commissions, is also treated as a realized gain, or if the
premium received is less than the amount paid for the closing purchase
transaction, as a realized loss. If a call option is exercised, the premium
received is added to the proceeds from the sale of the underlying security in
determining whether the Portfolio has realized a gain or loss. If a put option
is exercised, the premium received reduces the cost basis of the security
purchased by the Portfolio. In writing an option, the Portfolio bears the
market risk of an unfavorable change in the price of the security underlying
the written option. Exercise of an option written by the Portfolio could result
in the Portfolio selling or buying a security at a price different from the
current market value.
_______________________________________________________________________________
20 o ALLIANCEBERNSTEIN BOND FUND U.S. GOVERNMENT PORTFOLIO
Transactions in options written for the year ended June 30, 2003 were as
follows:
Number of Premiums
Contracts Received
============ ============
Options outstanding at beginning
of the period -0- $ -0-
Options written 1,100 1,071,609
Options terminated in closing purchase
transactions (1,100) (1,071,609)
Options expired -0- -0-
------------ ------------
Options outstanding at June 30, 2003 -0- $ -0-
============ ============
4. Reverse Repurchase Agreements
Under a reverse repurchase agreement, the Portfolio sells securities and agrees
to repurchase them at a mutually agreed upon date and price. At the time the
Portfolio enters into a reverse repurchase agreement, it will establish a
segregated account with the custodian containing liquid assets having a value
at least equal to the repurchase price.
For the year ended June 30, 2003, the average amount of reverse repurchase
agreements outstanding was $90,320,381 and the daily weighted average interest
rate was 1.37%.
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 $532,711,592 and
received cash collateral of $549,466,250 which was invested in short-term
securities as included in the footnotes to the accompanying portfolio of
investments. For the year ended June 30, 2003, the Portfolio earned fee income
of
_______________________________________________________________________________
ALLIANCEBERNSTEIN BOND FUND U.S. GOVERNMENT PORTFOLIO o 21
$1,412,548 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 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 99,871,241 147,432,112 $ 738,562,949 $1,062,360,414
- -------------------------------------------------------------------------------
Shares issued in
reinvestment of
dividends 3,397,687 4,167,873 25,217,655 30,124,250
- -------------------------------------------------------------------------------
Shares converted
from Class B 2,638,670 3,136,090 19,834,712 24,883,707
- -------------------------------------------------------------------------------
Shares redeemed (107,352,732) (158,502,944) (794,926,312) (1,143,883,509)
- -------------------------------------------------------------------------------
Net decrease (1,445,134) (3,766,869) $ (11,310,996) $ (26,515,138)
===============================================================================
Class B
Shares sold 41,363,192 39,137,935 $ 305,612,817 $ 285,085,120
- -------------------------------------------------------------------------------
Shares issued in
reinvestment of
dividends 1,747,439 1,616,781 12,971,394 11,691,662
- -------------------------------------------------------------------------------
Shares converted
to Class A (2,666,482) (3,546,194) (19,834,712) (24,883,707)
- -------------------------------------------------------------------------------
Shares redeemed (29,791,395) (20,377,516) (221,190,959) (148,144,475)
- -------------------------------------------------------------------------------
Net increase 10,652,754 16,831,006 $ 77,558,540 $ 123,748,600
===============================================================================
Class C
Shares sold 17,523,866 19,154,718 $ 129,704,727 $ 139,438,986
- -------------------------------------------------------------------------------
Shares issued in
reinvestment of
dividends 741,897 910,419 5,512,251 6,592,467
- -------------------------------------------------------------------------------
Shares redeemed (19,058,320) (15,734,751) (141,500,884) (113,989,182)
- -------------------------------------------------------------------------------
Net increase
(decrease) (792,557) 4,330,386 $ (6,283,906) $ 32,042,271
===============================================================================
Advisor Class
Shares sold 5,728,180 20,316,829 $ 42,725,185 $ 146,617,899
- -------------------------------------------------------------------------------
Shares issued in
reinvestment of
dividends 1,166,739 818,898 8,673,997 5,898,085
- -------------------------------------------------------------------------------
Shares redeemed (5,229,251) (264,735) (38,496,136) (1,907,859)
- -------------------------------------------------------------------------------
Net increase 1,665,668 20,870,992 $ 12,903,046 $ 150,608,125
===============================================================================
_______________________________________________________________________________
22 o ALLIANCEBERNSTEIN BOND FUND U.S. GOVERNMENT 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") 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 the miscellaneous expenses in
the statement of operations. The Portfolio did not utilize the Facility during
the year ended June 30, 2003.
NOTEH
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 $ 80,099,077 $ 82,835,463
------------- -------------
Total taxable distributions 80,099,077 82,835,463
Tax return of capital -0- 5,174,446
------------- -------------
Total distributions paid $ 80,099,077(a) $ 88,009,909(a)
============= =============
As of June 30, 2003, the components of accumulated earnings/(deficit) on a tax
basis were as follows:
Accumulated capital and other losses $(195,017,573)(b)
Unrealized appreciation/(depreciation) 43,326,075(c)
-------------
Total accumulated earnings/(deficit) $(151,691,498)
=============
(a) Total distributions paid differ from the Statement of Changes in Net
Assets because for tax purposes dividends are recognized when actually paid.
(b) On June 30, 2003, the Fund had a net capital loss carryforward for federal
income tax purposes of $195,017,573 (of which $5,458,443 and $25,133,978
were attributable to the purchase of net assets of Alliance Limited Maturity
Government Income Fund, Inc. and Alliance Mortgage Securities Income Fund,
Inc., respectively, by the Fund in December of 2000), of which $64,973,014
expires in the year 2004, $51,829,521 expires in the year 2005, $6,928,773
expires in the year 2006, $16,083,708 expires in the year 2007, $48,732,137
expires in the year 2008, and $6,470,420 expires in the year 2009. To the
extent future capital gains are offset by capital loss carryforwards, such
gains will not be distributed. During the fiscal year ended June 30, 2003,
$76,817,063 of capital loss carryforward expired. Based on certain provision
in the Internal Revenue Code, various limitations regarding the future
utilization of these carryforwards, brought forward as a result of the
Portfolio's merger with Alliance Limited Maturity Government, Inc. and the
Alliance Mortgage Securities Fund, Inc., may apply.
(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.
_______________________________________________________________________________
ALLIANCEBERNSTEIN BOND FUND U.S. GOVERNMENT PORTFOLIO o 23
During the current fiscal year, permanent differences, primarily due to a tax
distribution in excess of earnings, tax character of paydown losses, expiration
of capital loss carryforwards and the tax treatment of bond premium, resulted
in a net decrease in distributions in excess of net investment income, a net
decrease in accumulated net realized loss on investments and a decrease in
additional paid-in capital. This reclassification had no effect on net assets.
_______________________________________________________________________________
24 o ALLIANCEBERNSTEIN BOND FUND U.S. GOVERNMENT PORTFOLIO
FINANCIAL HIGHLIGHTS
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
Class A
---------------------------------------------------------------
Year Ended June 30,
---------------------------------------------------------------
2003 2002(a) 2001 2000 1999
----------- ----------- ----------- ----------- -----------
Net asset value,
beginning of period $7.21 $7.14 $6.99 $7.19 $7.57
INCOME FROM INVESTMENT
OPERATIONS
Net investment income(b) .27 .37 .47 .50 .52
Net realized and unrealized
gain (loss) on investment
transactions .35 .13 .17 (.20) (.37)
Net increase in net asset value
from operations .62 .50 .64 .30 .15
LESS: DIVIDENDS AND
DISTRIBUTIONS
Dividends from net investment
income (.34) (.37) (.47) (.49) (.52)
Distributions in excess of
net investment income -0- (.03) (.01) -0- (.01)
Tax return of capital -0- (.03) (.01) (.01) -0-
Total dividends and
distributions (.34) (.43) (.49) (.50) (.53)
Net asset value,
end of period $7.49 $7.21 $7.14 $6.99 $7.19
TOTAL RETURN
Total investment return based
on net asset value(c) 8.82% 7.11% 9.30% 4.41% 1.83%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(000's omitted) $889,115 $865,739 $884,574 $430,895 $426,167
Ratio to average net assets of:
Expenses 1.10% 1.23% 2.11% 2.14% 1.17%
Expenses, excluding
interest expense 1.09% 1.09% 1.13% 1.12% 1.08%
Net investment income 3.64% 5.15% 6.57% 7.13% 6.86%
Portfolio turnover rate 976% 1009% 712% 398% 320%
See footnote summary on page 28.
_______________________________________________________________________________
ALLIANCEBERNSTEIN BOND FUND U.S. GOVERNMENT PORTFOLIO o 25
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
Class B
---------------------------------------------------------------
Year Ended June 30,
---------------------------------------------------------------
2003 2002(a) 2001 2000 1999
----------- ----------- ----------- ----------- -----------
Net asset value,
beginning of period $7.21 $7.14 $7.00 $7.20 $7.57
INCOME FROM INVESTMENT
OPERATIONS
Net investment income(b) .22 .32 .42 .44 .46
Net realized and unrealized
gain (loss) on investment
transactions .35 .13 .16 (.19) (.36)
Net increase in net asset
value from operations .57 .45 .58 .25 .10
LESS: DIVIDENDS AND
DISTRIBUTIONS
Dividends from net investment
income (.29) (.32) (.42) (.44) (.46)
Distributions in excess of
net investment income -0- (.03) (.01) -0- (.01)
Tax return of capital -0- (.03) (.01) (.01) -0-
Total dividends and
distributions (.29) (.38) (.44) (.45) (.47)
Net asset value,
end of period $7.49 $7.21 $7.14 $7.00 $7.20
TOTAL RETURN
Total investment return based
on net asset value(c) 8.07% 6.36% 8.39% 3.64% 1.22%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(000's omitted) $495,606 $400,221 $276,308 $200,283 $338,310
Ratio to average net assets of:
Expenses 1.82% 1.93% 2.90% 2.80% 1.87%
Expenses, excluding
interest expense 1.81% 1.80% 1.83% 1.83% 1.79%
Net investment income 2.95% 4.41% 5.95% 6.28% 6.13%
Portfolio turnover rate 976% 1009% 712% 398% 320%
See footnote summary on page 28.
_______________________________________________________________________________
26 o ALLIANCEBERNSTEIN BOND FUND U.S. GOVERNMENT PORTFOLIO
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
Financial Highlights
Class C
---------------------------------------------------------------
Year Ended June 30,
---------------------------------------------------------------
2003 2002(a) 2001 2000 1999
----------- ----------- ----------- ----------- -----------
Net asset value,
beginning of period $7.22 $7.15 $7.00 $7.20 $7.57
INCOME FROM INVESTMENT
OPERATIONS
Net investment income(b) .22 .32 .43 .45 .46
Net realized and unrealized
gain (loss) on investment
transactions .35 .13 .16 (.20) (.36)
Net increase in net asset value
from operations .57 .45 .59 .25 .10
LESS: DIVIDENDS AND
DISTRIBUTIONS
Dividends from net investment
income (.29) (.32) (.43) (.44) (.46)
Distributions in excess of
net investment income -0- (.03) (.01) -0- (.01)
Tax return of capital -0- (.03)-0- (.01) -0-
Total dividends and
distributions (.29) (.38) (.44) (.45) (.47)
Net asset value,
end of period $7.50 $7.22 $7.15 $7.00 $7.20
TOTAL RETURN
Total investment return based
on net asset value(c) 8.06% 6.35% 8.54% 3.64% 1.22%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(000's omitted) $204,006 $202,030 $169,213 $112,808 $144,145
Ratio to average net assets of:
Expenses 1.81% 1.93% 2.89% 2.82% 1.87%
Expenses, excluding
interest expense 1.80% 1.79% 1.83% 1.83% 1.78%
Net investment income 2.96% 4.42% 5.94% 6.35% 6.13%
Portfolio turnover rate 976% 1009% 712% 398% 320%
See footnote summary on page 28.
_______________________________________________________________________________
ALLIANCEBERNSTEIN BOND FUND U.S. GOVERNMENT PORTFOLIO o 27
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
Advisor Class
------------------------------------
October 6,
Year Ended June 30, 2000(d) to
------------------------ June 30,
2003 2002(a) 2001
----------- ----------- -----------
Net asset value, beginning of period $7.21 $7.14 $7.05
INCOME FROM INVESTMENT OPERATIONS
Net investment income(b) .29 .39 .34
Net realized and unrealized gain on
investment transactions .37 .13 .12
Net increase in net asset value from
operations .66 .52 .46
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.37) (.39) (.34)
Distributions in excess of net
investment income -0- (.03) (.02)
Tax return of capital -0- (.03) (.01)
Total dividends and distributions (.37) (.45) (.37)
Net asset value, end of period $7.50 $7.21 $7.14
TOTAL RETURN
Total investment return based on net
asset value(c) 9.29% 7.41% 6.65%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(000's omitted) $197,649 $177,834 $27,154
Ratio to average net assets of:
Expenses .81% .89% 1.38%(e)
Expenses, excluding interest
expense .80% .81% .81%(e)
Net investment income 3.96% 5.41% 6.74%(e)
Portfolio turnover rate 976% 1009% 712%
(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 $.03,
increase net realized and unrealized gain on investment transactions per
share by $.03, and decrease the ratio of net investment income to average
net assets from 5.56% to 5.15% for Class A, from 4.82% to 4.41% for Class B,
from 4.83% to 4.42% for Class C and from 5.81% to 5.41% 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) Based on average shares outstanding.
(c) 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 fund distributions or the
redemption of fund shares.Total investment return calculated for a period of
less than one year is not annualized.
(d) Commencement of distribution.
(e) Annualized.
_______________________________________________________________________________
28 o ALLIANCEBERNSTEIN BOND FUND U.S. GOVERNMENT PORTFOLIO
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
To the Shareholders and Board of Directors of AllianceBernstein Bond Fund, Inc.
U.S. Government Portfolio
We have audited the accompanying statement of assets and liabilities, including
the portfolio of investments, of the U.S. Government 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, 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
U.S. Government 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 U.S. GOVERNMENT PORTFOLIO o 29
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
Matthew D.W. Bloom, Vice President
Paul J. DeNoon, 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 786003
San Antonio, Texas 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.
_______________________________________________________________________________
30 o ALLIANCEBERNSTEIN BOND FUND U.S. GOVERNMENT 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 (15) ("ACMC"), with which he has
been associated 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 (15) Officer of The Equitable Life
Assurance Society of the United
States; Chairman and Chief Executive
Officer ofEvlico. Formerly a
Director of Avon, BP (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 President of ACMC responsible
(15) 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 2002, Senior Advisor from June
(5) 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 U.S. GOVERNMENT PORTFOLIO o 31
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. Formerly
Suite 100 Senior Manager of Barrett
Greenwich, CT 06830 Associates, Inc.,a registered
(5) 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 February 2001 and a partner of
(15) 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 (6) 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.
_______________________________________________________________________________
32 o ALLIANCEBERNSTEIN BOND FUND U.S. GOVERNMENT PORTFOLIO
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**
- --------------------------------------------------------------------------------------------------------------
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 Chief Senior Vice President of AGIS,** with which
Financial Officer he has beenassociated 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 U.S. GOVERNMENT PORTFOLIO o 33
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.
_______________________________________________________________________________
34 o ALLIANCEBERNSTEIN BOND FUND U.S. GOVERNMENT PORTFOLIO
NOTES
_______________________________________________________________________________
ALLIANCEBERNSTEIN BOND FUND U.S. GOVERNMENT PORTFOLIO o 35
NOTES
_______________________________________________________________________________
36 o ALLIANCEBERNSTEIN BOND FUND U.S. GOVERNMENT PORTFOLIO
ALLIANCEBERNSTEIN BOND FUND U.S. GOVERNMENT 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.
USGAR0603
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