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: 811-06730
AllianceBernstein Premier Growth 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: July 31, 2003
Date of reporting period: July 31, 2003
ITEM 1. REPORTS TO STOCKHOLDERS.
[LOGO] AllianceBernstein(SM)
Investment Research and Management
AllianceBernstein Premier Growth Fund
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Large-Cap Growth Annual Report--July 31, 2003
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Investment Products Offered
---------------------------
o Are Not FDIC Insured
o May Lose Value
o Are Not Bank Guaranteed
---------------------------
This shareholder report must be preceded or accompanied by the Fund's prospectus
for individuals who are not current shareholders of the Fund.
You may obtain a description of the Fund's proxy voting policies and procedures,
without charge, upon request by visiting Alliance Capital's web site at
www.investor.alliancecapital.com or on the Securities and Exchange Commision's
web site at http://www.sec.gov, or by calling Alliance Capital at (800)
227-4618.
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.
September 30, 2003
Annual Report
This report provides management's discussion of fund performance for
AllianceBernstein Premier Growth Fund (the "Fund") for the annual reporting
period ended July 31, 2003.
Investment Objective and Policies
This open-end fund seeks long-term growth of capital by investing predominately
in the securities of a limited number of large, carefully selected, high-quality
U.S. companies that are judged likely to achieve superior earnings growth.
Normally, about 40 to 60 companies will be represented in the Fund's portfolio,
with the 25 most highly regarded of these usually constituting 70% of the Fund's
net assets.
Investment Results
The following table provides the performance results for the Fund and its
benchmark, the Russell 1000 Growth Index for the six- and 12-month periods ended
July 31, 2003. For comparison, we have also provided the returns for the
Standard & Poor's (S&P) 500 Stock Index, a common measure of the broad stock
market.
INVESTMENT RESULTS*
Periods Ended July 31, 2003
---------------------
Returns
---------------------
6 Months 12 Months
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AllianceBernstein Premier Growth Fund
Class A 16.88% 5.41%
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Class B 16.40% 4.62%
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Class C 16.45% 4.61%
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S&P 500 Stock Index 16.78% 10.64%
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Russell 1000 Growth Index 18.78% 11.64%
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* The Fund's investment results are for the periods shown and are based on
the net asset value (NAV) of each class of shares as of July 31, 2003.
Returns do not reflect the deduction of taxes that a shareholder would pay
on fund distributions or the redemption of fund shares. All fees and
expenses related to the operation of the Fund have been deducted, but no
adjustment has been made for sales charges that may apply when shares are
purchased or redeemed. Returns for the Fund include the reinvestment of
any distributions paid during each period. Returns for Advisor Class
shares will vary due to different expenses associated with this class.
Past performance is no guarantee of future results.
The unmanaged Russell 1000 Growth Index contains those securities in the
Russell 1000 Index with a greater-than-average growth orientation. The
unmanaged Russell 1000 Index is comprised of 1000 of the largest
capitalized companies that are traded in the United States. The unmanaged
Standard & Poor's (S&P) 500 Stock Index is comprised of 500 U.S. companies
and is a common measure of the performance of the overall U.S. stock
market. The indices reflect no fees or expenses. An investor cannot invest
directly in an index, and its results are not indicative of any specific
investment, including AllianceBernstein Premier Growth Fund.
Additional investment results appear on page 6.
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ALLIANCEBERNSTEIN PREMIER GROWTH FUND o 1
For the six-month period ended July 31, 2003, the Fund's Class A shares modestly
outperformed the S&P 500 Stock Index, but underperformed the Russell 1000 Growth
Index. Relative to the S&P 500 Stock Index, positive performance during the
period can be attributed to strong stock selection in the industrial,
telecommunication service and financial sectors. Relative to the Russell 1000
Growth Index, the negative relative performance during the period can be
attributed to weak stock selection in the health care sector.
For the 12-month period ended July 31, 2003, the Fund's Class A shares generated
positive absolute performance, but underperformed the S&P 500 Stock Index and
the Russell 1000 Growth Index. Relative to the S&P 500 Stock Index,
underperformance was driven by weak stock selection in the health care,
information technology and consumer discretionary sectors. Relative to the
Russell 1000 Growth Index, underperformance was driven by weak stock selection
predominantly in the health care sector. Strong positive contributions from
Amgen, UnitedHealth Group, Intel, Lowe's, eBay and AT&T Wireless were more than
offset by negative performance from Tenet Healthcare, Johnson & Johnson,
Microsoft, Kohl's, Best Buy and General Electric Co.
Market Review and Investment Strategy
For the six- and 12-month periods ended July 31, 2003, the U.S. equity market
was largely affected by the prospect and eventual onset of the conflict with
Iraq. An expeditious and successful outcome boosted a decided upswing in
consumer confidence, and shifted investor focus toward economic news. As
progress for the U.S. economy and corporate profits emerged, investors responded
by driving the S&P 500 Stock Index out of its multi-year decline and well into
double-digit positive returns for both periods. Investors tended to ignore the
unfavorable unemployment figures, which inched upward to 6.4%. Rising sentiment
was fueled by the passage of a $350 billion federal package of tax cuts and
state aid. The U.S. Federal Reserve opted to reduce the Federal Funds interest
rate target to 1.0%, in an effort to ward off deflation and ensure sustainable
growth going forward. The SARS outbreak in China and Hong Kong, which disrupted
some industries as travel to the Far East abruptly slowed, was contained.
As data points suggesting an economic recovery have emerged, our focus has
turned to building a more aggressive posture in the Fund's portfolio. The Fund
has selectively become more aggressive by increasing its exposure to 1) those
cyclical companies that we be-
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2 o ALLIANCEBERNSTEIN PREMIER GROWTH FUND
lieve will benefit from an improving economy (e.g. media/advertising sensitive
companies, brokerage, and select technology companies), and 2) those companies
with strong operating leverage to a resurgence in revenue growth. The Fund
continues to emphasize high-quality, sustainable growth companies, with a
particular emphasis on companies with 1) unique products and/or market positions
capable of generating strong revenue growth, 2) management teams that
judiciously use their capital to fortify shareholder value, and 3) solid cash
cushions to weather hard times and capitalize on new opportunities.
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ALLIANCEBERNSTEIN PREMIER GROWTH FUND o 3
Performance Update
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PERFORMANCE UPDATE
ALLIANCEBERNSTEIN PREMIER GROWTH FUND
GROWTH OF A $10,000 INVESTMENT
7/31/93 TO 7/31/03
S&P 500 Stock Index: $26,592
Russell 1000 Growth Index: $23,130
AllianceBernstein Premier Growth Fund Class A: $21,364
AllianceBernstein Premier
Growth Fund Class A S&P 500 Stock Index Russell 1000 Growth Index
7/31/93 $ 9,575 $10,000 $10,000
7/31/94 $10,052 $10,515 $10,499
7/31/95 $13,483 $13,256 $13,797
7/31/96 $14,783 $15,451 $15,939
7/31/97 $24,425 $23,502 $24,203
7/31/98 $31,466 $28,039 $29,024
7/31/99 $38,837 $33,704 $36,001
7/31/00 $47,363 $36,726 $44,778
7/31/01 $30,648 $31,466 $29,078
7/31/02 $20,267 $24,035 $20,719
7/31/03 $21,364 $26,592 $23,130
This chart illustrates the total value of an assumed $10,000 investment in
AllianceBernstein Premier Growth Fund Class A shares (from 7/31/93 to 7/31/03)
as compared to the performance of appropriate broad-based indices. Returns do
not reflect the deduction of taxes that a shareholder would pay on fund
distributions or the redemption of fund shares. The chart reflects the deduction
of the maximum 4.25% sales charge from the initial $10,000 investment in the
Fund and assumes the reinvestment of dividends and capital gains. Performance
for Class B, Class C and Advisor Class shares will vary from the results shown
above due to differences in expenses charged to these classes. Past performance
is not indicative of future results, and is not representative of future gain or
loss in capital value or dividend income.
The unmanaged Russell 1000 Growth Index contains those securities in the Russell
1000 Index with a greater-than-average growth orientation. The unmanaged Russell
1000 Index is comprised of 1000 of the largest capitalized companies that are
traded in the United States.
The unmanaged Standard & Poor's (S&P) 500 Stock Index is comprised of 500 U.S.
companies and is a common measure of the performance of the overall U.S. stock
market.
When comparing AllianceBernstein Premier Growth Fund to the indices shown above,
you should note that no charges or expenses are reflected in the performance of
the indices. An investor cannot invest directly in an index, and its results are
not indicative of any specific investment, including AllianceBernstein Premier
Growth Fund.
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4 o ALLIANCEBERNSTEIN PREMIER GROWTH FUND
Portfolio Summary
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PORTFOLIO SUMMARY
July 31, 2003
INCEPTION DATES PORTFOLIO STATISTICS
Class A Shares Net Assets ($mil): $6,163.8
9/28/92
Class B Shares
9/28/92
Class C Shares
5/3/93
SECTOR BREAKDOWN
26.6% Technology
24.3% Consumer Services
22.2% Finance [PIE CHART OMITTED]
19.8% Health Care
4.3% Consumer Staples
2.1% Capital Goods
0.7% Short-Term
COUNTRY BREAKDOWN
94.9% United States
2.7% Finland
0.8% Taiwan [PIE CHART OMITTED]
0.6% Israel
0.3% Netherlands
0.7% Short-Term
All data as of July 31, 2003. The Fund's sector and country breakdowns are
expressed as a percentage of total investments and may vary over time.
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ALLIANCEBERNSTEIN PREMIER GROWTH FUND o 5
Investment Results
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INVESTMENT RESULTS
AVERAGE ANNUAL RETURNS AS OF JULY 31, 2003
Class A Shares
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Without Sales Charge With Sales Charge
1 Year 5.41% 0.91%
5 Years -7.45% -8.25%
10 Years 8.36% 7.89%
Class B Shares
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Without Sales Charge With Sales Charge
1 Year 4.62% 0.62%
5 Years -8.11% -8.11%
10 Years(a) 7.78% 7.78%
Class C Shares
- --------------------------------------------------------------------------------
Without Sales Charge With Sales Charge
1 Year 4.61% 3.61%
5 Years -8.11% -8.11%
10 Years 7.64% 7.64%
AVERAGE ANNUAL RETURNS (WITH SALES CHARGES)
AS OF THE MOST RECENT QUARTER-END (JUNE 30, 2003)
Class A Class B Class C
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1 Year -9.62% -10.07% -7.25%
5 Years -8.50% -8.37% -8.36%
10 Years 7.32% 7.24%(a) 7.08%
The Fund's investment results represent average annual returns. Returns do not
reflect the deduction of taxes that a shareholder would pay on fund
distributions or the redemption of fund shares. The returns reflect reinvestment
of dividends and/or capital gains distributions in additional shares without and
with the effect of the 4.25% maximum front-end sales charge for Class A or
applicable contingent deferred sales charge for Class B (4% year 1, 3% year 2,
2% year 3, 1% year 4); and for Class C shares (1% year 1). Returns for Class A
shares do not reflect the imposition of the 1 year, 1% contingent deferred sales
charge for accounts over $1,000,000. Returns for Advisor Class shares will vary
due to different expenses associated with this class.
The Fund concentrates its investments in a limited number of issues and an
investment in the Fund is therefore subject to greater risk and volatility than
investments in a more diversified portfolio.
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.
(a) Assumes conversion of Class B shares into Class A shares after 8 years.
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6 o ALLIANCEBERNSTEIN PREMIER GROWTH FUND
Ten Largest Holdings
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TEN LARGEST HOLDINGS
July 31, 2003
Percent of
Company Value Net Assets
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Microsoft Corp. $ 308,270,160 5.0%
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Pfizer, Inc. 297,808,056 4.9
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MBNA Corp. 288,914,510 4.7
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Citigroup, Inc. 282,846,368 4.6
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American International Group, Inc. 260,863,860 4.2
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Viacom, Inc. Cl.B 257,746,547 4.2
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UnitedHealth Group, Inc. 247,286,857 4.0
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Lowe's Cos., Inc. 229,926,442 3.7
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Wal-Mart Stores, Inc. 206,911,728 3.4
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Medtronic, Inc. 194,108,650 3.1
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$2,574,683,178 41.8%
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ALLIANCEBERNSTEIN PREMIER GROWTH FUND o 7
Portfolio of Investments
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PORTFOLIO OF INVESTMENTS
July 31, 2003
Company Shares Value
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COMMON STOCKS-99.4%
Technology-26.7%
Communication Equipment-5.3%
Cisco Systems, Inc.(a) ........................ 6,644,300 $ 129,696,736
Juniper Networks, Inc.(a) ..................... 1,993,100 28,760,433
Nokia Corp. (ADR) (Finland) ................... 10,885,100 166,542,030
---------------
324,999,199
---------------
Computer Hardware/Storage-3.1%
Dell, Inc.(a) ................................. 5,669,500 190,948,760
---------------
Computer Services-1.7%
First Data Corp. .............................. 2,748,900 103,798,464
---------------
Computer Software-9.6%
Electronic Arts, Inc.(a) ...................... 750,600 63,050,400
Intuit, Inc.(a) ............................... 1,806,450 77,713,479
Microsoft Corp. ............................... 11,676,900 308,270,160
Symantec Corp.(a) ............................. 1,759,650 82,298,830
VERITAS Software Corp.(a) ..................... 2,024,700 62,360,760
---------------
593,693,629
---------------
Internet Infrastructure-2.0%
eBay, Inc.(a) ................................. 1,141,900 122,411,680
---------------
Internet Media-0.2%
Yahoo!, Inc.(a) ............................... 376,000 11,704,880
---------------
Semi-Conductor Components-4.8%
Intel Corp. ................................... 6,756,500 168,574,675
Maxim Integrated Products, Inc. ............... 2,004,300 78,328,044
Taiwan Semiconductor Manufacturing Co., Ltd.
(ADR) (Taiwan) ............................. 4,834,400 48,344,000
---------------
295,246,719
---------------
1,642,803,331
---------------
Consumer Services-24.3%
Airlines-1.2%
Continental Airlines, Inc. Cl.B(a) ............ 970,400 14,196,952
KLM Royal Dutch Air (Netherlands) ............. 2,189,324 20,973,724
Northwest Airlines Corp. Cl.A(a) .............. 4,156,300 37,822,330
---------------
72,993,006
---------------
Broadcasting & Cable-8.9%
Clear Channel Communications, Inc.(a) ......... 2,612,200 106,969,590
Comcast Corp. Cl.A(a) ......................... 6,257,000 183,330,100
Viacom, Inc. Cl.B(a) .......................... 5,922,485 257,746,547
---------------
548,046,237
---------------
Entertainment & Leisure-1.0%
Harley-Davidson, Inc. ......................... 1,296,900 60,798,672
---------------
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8 o ALLIANCEBERNSTEIN PREMIER GROWTH FUND
Portfolio of Investments
- --------------------------------------------------------------------------------
Company Shares Value
- -------------------------------------------------------------------------------
Printing & Publishing-0.6%
Gannett Co., Inc. ............................. 494,800 $ 38,015,484
---------------
Retail-General Merchandise-12.6%
Bed Bath & Beyond, Inc.(a) .................... 2,476,570 96,165,213
Kohl's Corp.(a) ............................... 3,083,400 182,999,790
Lowe's Cos., Inc. ............................. 4,834,450 229,926,442
Target Corp. .................................. 1,667,400 63,894,768
Wal-Mart Stores, Inc. ......................... 3,700,800 206,911,728
---------------
779,897,941
---------------
1,499,751,340
---------------
Finance-22.2%
Banking-Money Center-0.1%
SLM Corp. ..................................... 152,950 6,341,307
---------------
Banking-Regional-0.2%
Fifth Third Bancorp ........................... 249,800 13,741,498
---------------
Brokerage & Money Management-4.2%
Goldman Sachs Group, Inc. ..................... 827,700 72,125,778
Merrill Lynch & Co., Inc. ..................... 1,967,400 106,967,538
Morgan Stanley ................................ 1,648,400 78,200,096
---------------
257,293,412
---------------
Insurance-5.9%
American International Group, Inc. ............ 4,063,300 260,863,860
The Progressive Corp. ......................... 1,601,800 105,702,782
---------------
366,566,642
---------------
Mortgage Banking-2.5%
Federal National Mortgage Association ......... 2,412,900 154,522,116
---------------
Miscellaneous-9.3%
Citigroup, Inc. ............................... 6,313,535 282,846,368
MBNA Corp. .................................... 12,961,620 288,914,510
---------------
571,760,878
---------------
1,370,225,853
---------------
Health Care-19.8%
Biotechnology-3.1%
Amgen, Inc.(a) ................................ 2,709,600 188,533,968
---------------
Drugs-5.4%
Pfizer, Inc. .................................. 8,927,100 297,808,056
Teva Pharmaceutical Industries, Ltd.
(ADR) (Israel) ............................. 673,200 38,601,288
---------------
336,409,344
---------------
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ALLIANCEBERNSTEIN PREMIER GROWTH FUND o 9
Portfolio of Investments
- --------------------------------------------------------------------------------
Shares or
Principal
Amount
Company (000) Value
- -------------------------------------------------------------------------------
Medical Products-6.9%
Boston Scientific Corp.(a) .................... 671,300 $ 42,446,299
Johnson & Johnson ............................. 3,523,530 182,483,619
Medtronic, Inc. ............................... 3,769,100 194,108,650
St. Jude Medical, Inc.(a) ..................... 144,300 7,741,695
---------------
426,780,263
---------------
Medical Services-4.4%
Cardinal Health, Inc. ......................... 439,451 24,059,942
UnitedHealth Group, Inc. ...................... 4,747,300 247,286,857
---------------
271,346,799
---------------
1,223,070,374
---------------
Consumer Staples-4.3%
Beverages-1.1%
Anheuser-Busch Cos., Inc. ..................... 1,265,300 65,567,846
---------------
Cosmetics-0.2%
Avon Products, Inc. ........................... 168,100 10,487,759
---------------
Household Products-2.1%
Colgate-Palmolive Co. ......................... 910,900 49,735,140
The Procter & Gamble Co. ...................... 905,300 79,548,711
---------------
129,283,851
---------------
Retail-Food & Drug-0.9%
Walgreen Co. .................................. 1,955,200 58,499,584
---------------
263,839,040
---------------
Capital Goods-2.1%
Miscellaneous-2.1%
General Electric Co. .......................... 4,516,000 128,435,040
---------------
Total Common Stocks
(cost $5,199,368,111) ...................... 6,128,124,978
---------------
SHORT-TERM INVESTMENT-0.7%
Time Deposit-0.7%
State Street Euro Dollar
0.50%, 8/01/03
(cost $44,316,000) ......................... $ 44,316 44,316,000
---------------
Total Investments*-100.1%
(cost $5,243,684,111) ...................... 6,172,440,978
Other assets less liabilities-(0.1%) .......... (8,676,493)
---------------
Net Assets-100% ............................... $ 6,163,764,485
===============
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10 o ALLIANCEBERNSTEIN PREMIER GROWTH FUND
Portfolio of Investments
- --------------------------------------------------------------------------------
* SECURITIES LENDING INFORMATION
The Fund participates in a securities lending arrangement (see Note E) in which
cash collateral is invested by the lending agent. Such investments, representing
0.6% of net assets, were as follows as of July 31, 2003:
Current
Yield Shares Value
=========== =========== ===========
UBS Private Money Market
Fund LLC 1.02% 39,695,900 $39,695,900
(a) Non-income producing security.
Glossary:
ADR - American Depositary Receipt
See notes to financial statements.
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ALLIANCEBERNSTEIN PREMIER GROWTH FUND o 11
Statement of Assets & Liabilities
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS & LIABILITIES
July 31, 2003
Assets
Investments in securities, at value (cost $5,243,684,111) $ 6,172,440,978(a)
Cash .................................................... 641
Collateral held for securities loaned ................... 39,695,900
Receivable for capital stock sold ....................... 25,791,477
Receivable for investment securities sold ............... 8,788,981
Dividends and interest receivable ....................... 4,287,415
----------------
Total assets ............................................ 6,251,005,392
----------------
Liabilities
Payable for collateral received on securities loaned .... 39,695,900
Payable for capital stock redeemed ...................... 24,321,243
Payable for investment securities purchased ............. 10,958,512
Advisory fee payable .................................... 5,202,569
Distribution fee payable ................................ 909,762
Accrued expenses and other liabilities .................. 6,152,921
----------------
Total liabilities ....................................... 87,240,907
----------------
Net Assets .............................................. $ 6,163,764,485
================
Composition of Net Assets
Capital stock, at par ................................... $ 415,580
Additional paid-in capital .............................. 14,791,958,763
Accumulated net realized loss on investment
transactions ......................................... (9,557,366,725)
Net unrealized appreciation of investments .............. 928,756,867
----------------
$ 6,163,764,485
================
Calculation of Maximum Offering Price
Class A Shares
Net asset value and redemption price per share
($1,757,243,498 / 112,812,754 shares of capital
stock issued and outstanding) ........................ $15.58
Sales charge--4.25% of public offering price ............ .69
------
Maximum offering price .................................. $16.27
======
Class B Shares
Net asset value and offering price per share
($2,670,329,712 / 187,156,386 shares of
capital stock issued and outstanding) ................ $14.27
======
Class C Shares
Net asset value and offering price per share
($943,029,282 / 65,949,153 shares of capital stock
issued and outstanding) .............................. $14.30
======
Advisor Class Shares
Net asset value, redemption and offering price per share
($793,161,993 / 49,662,051 shares of capital stock
issued and outstanding) .............................. $15.97
======
(a) Includes securities on loan with a value of $38,484,283 (see Note E).
See notes to financial statements.
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12 o ALLIANCEBERNSTEIN PREMIER GROWTH FUND
Statement of Operations
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
December 1, 2002 Year Ended
to November 30,
July 31, 2003* 2002
================= ===============
Investment Income
Dividends (net of foreign taxes withheld of
$347,956 and $975,871,respectively) ..... $ 32,126,857 $ 56,022,565
Interest ................................... 592,649 2,153,547
------------- ---------------
32,719,506 58,176,112
Expenses
Advisory fee ............................... 39,958,906 88,128,426
Distribution fee--Class A .................. 3,608,278 8,300,777
Distribution fee--Class B .................. 17,815,015 42,133,265
Distribution fee--Class C .................. 6,363,810 15,548,417
Transfer agency ............................ 21,199,044 37,578,580(a)
Printing ................................... 3,267,654 5,398,494
Custodian .................................. 356,987 652,328
Audit and legal ............................ 179,429 121,314
Administrative ............................. 95,000 150,000
Registration fees .......................... 76,944 145,000
Directors' fees and expenses ............... 17,000 23,000
Miscellaneous .............................. 267,840 199,011
------------- ---------------
Total expenses ............................. 93,205,907 198,378,612
Less: expense offset arrangement
(see Note B) ............................ (6,588) (97,192)(a)
------------- ---------------
Net expenses ............................... 93,199,319 198,281,420
------------- ---------------
Net investment loss ........................ (60,479,813) (140,105,308)
------------- ---------------
Realized and Unrealized Gain (Loss)
on Investment Transactions
Net realized loss on investment
transactions ............................ (787,390,546) (2,391,356,164)
Net change in unrealized
appreciation/depreciation
of investments .......................... 943,573,844 (346,707,652)
------------- ---------------
Net gain (loss) on investment transactions . 156,183,298 (2,738,063,816)
------------- ---------------
Net Increase (Decrease) in Net Assets
from Operations ......................... $ 95,703,485 $(2,878,169,124)
============= ===============
* The Fund changed its fiscal year end from November 30 to July 31.
(a) Amounts have been reclassified to conform to the current period's
presentation.
See notes to financial statements.
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ALLIANCEBERNSTEIN PREMIER GROWTH FUND o 13
Statement of Changes in Net Assets
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
December 1, Year Ended Year Ended
2002 to November 30, November 30,
July 31, 2003* 2002 2001
=============== =============== ===============
Increase
(Decrease) in
Net Assets from
Operations
Net investment loss ..... $ (60,479,813) $ (140,105,308) $ (195,169,749)
Net realized loss
on investment
transactions ......... (787,390,546) (2,391,356,164) (6,219,302,977)
Net change in
unrealized
appreciation/
depreciation of
investments .......... 943,573,844 (346,707,652) 2,054,311,401
--------------- --------------- ---------------
Net increase
(decrease) in
net assets from
operations ........... 95,703,485 (2,878,169,124) (4,360,161,325)
Distributions to
Shareholders from
Net realized gain on
investment
transactions
Class A .............. -0- -0- (387,295,086)
Class B .............. -0- -0- (753,190,675)
Class C .............. -0- -0- (284,821,720)
Advisor Class ........ -0- -0- (41,390,708)
Distributions in
excess of net
realized gain
on investment
transactions
Class A .............. -0- -0- (43,068,184)
Class B .............. -0- -0- (83,756,688)
Class C .............. -0- -0- (31,672,888)
Advisor Class ........ -0- -0- (4,602,750)
Capital Stock
Transactions
Net increase
(decrease) ........... (818,339,806) (2,250,580,831) 506,225,066
--------------- --------------- ---------------
Total decrease .......... (722,636,321) (5,128,749,955) (5,483,734,958)
Net Assets
Beginning of period ..... 6,886,400,806 12,015,150,761 17,498,885,719
--------------- --------------- ---------------
End of period ........... $ 6,163,764,485 $ 6,886,400,806 $12,015,150,761
=============== =============== ===============
* The Fund changed its fiscal year end from November 30 to July 31.
See notes to financial statements.
- --------------------------------------------------------------------------------
14 o ALLIANCEBERNSTEIN PREMIER GROWTH FUND
Notes to Financial Statements
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
July 31, 2003
NOTE A
Significant Accounting Policies
AllianceBernstein Premier Growth Fund, Inc. (the "Fund"), formerly Alliance
Premier Growth Fund, Inc., organized as a Maryland corporation on July 9, 1992,
is registered under the Investment Company Act of 1940 as a diversified,
open-end management investment company. The Fund offers Class A, Class B, Class
C and Advisor Class shares. Class A shares are sold with a front-end sales
charge of up to 4.25% for purchases not exceeding $1,000,000. With respect to
purchases of $1,000,000 or more, Class A shares redeemed within one year of
purchase may be subject to a contingent deferred sales charge of 1%. Class B
shares are currently sold with a contingent deferred sales charge which declines
from 4% to zero depending on the period of time the shares are held. Class B
shares purchased before July 11, 1998 will convert to Class A shares six years
after the end of the calendar month of purchase. Class B shares purchased on or
after July 11, 1998 will convert to Class A shares eight years after the end of
the calendar month of purchase. Class C shares are subject to a contingent
deferred sales charge of 1% on redemptions made within the first year after
purchase. Advisor Class shares are sold without an initial or contingent
deferred sales charge and are not subject to ongoing distribution expenses.
Advisor Class shares are offered to investors participating in fee-based
programs and to certain retirement plan accounts. All four classes of shares
have identical voting, dividend, liquidation and other rights, except that each
class bears different distribution expenses and has exclusive voting rights with
respect to its distribution plan. The financial statements have been prepared in
conformity with accounting principles generally accepted in the United States
which require management to make certain estimates and assumptions that affect
the reported amounts of assets and liabilities in the financial statements and
amounts of income and expenses during the reporting period. Actual results could
differ from those estimates. Additional information about some of the items
discussed in these Notes to Financial Statements is contained in the Fund's
Statement of Additional Information, which is available upon request. The
following is a summary of significant accounting policies followed by the Fund.
1. Security Valuation
In accordance with Pricing Policies adopted by the Board of Directors of the
Fund (the "Pricing Policies") and applicable law, portfolio securities are
valued at current market value or at fair value. The Board of Directors has
delegated to the Adviser, subject to the Board's continuing oversight, certain
responsibilities with respect to the implementation of the Pricing Policies.
Pursuant to the Pricing Policies, securities for which market quotations are
readily available are valued at their current market value. In general, the
market value of these securities is determined as follows:
Securities listed on a national securities exchange or on a foreign securities
exchange are valued at the last sale price at the close of the exchange or
foreign securities exchange. If there has been no sale on such day, the
securities are
- --------------------------------------------------------------------------------
ALLIANCEBERNSTEIN PREMIER GROWTH FUND o 15
Notes to Financial Statements
- --------------------------------------------------------------------------------
valued at the mean of the closing bid and asked prices on such day. If no bid or
asked prices are quoted on such day, then the security is valued in good faith
at fair value in accordance with the Pricing Policies. Securities listed on more
than one exchange are valued by reference to the principal exchange on which the
securities are traded; securities not listed on an exchange but traded on The
Nasdaq Stock Market, Inc. ("NASDAQ") are valued in accordance with the NASDAQ
Official Closing Price; listed put or call options are valued at the last sale
price. If there has been no sale on that day, such securities will be valued at
the closing bid prices on that day; open futures contracts and options thereon
are valued using the closing settlement price or, in the absence of such a
price, the most recent quoted bid price. If there are no quotations available
for the day of valuations, the last available closing settlement price is used;
securities traded in the over-the-counter market, (but excluding securities
traded on NASDAQ) are valued at the mean of the current bid and asked prices as
reported by the National Quotation Bureau or other comparable sources; U.S.
Government securities and other debt instruments having 60 days or less
remaining until maturity are valued at amortized cost if their original maturity
was 60 days or less, or by amortizing their fair value as of the 61st day prior
to maturity if their original term to maturity exceeded 60 days; fixed-income
securities, including mortgage backed and asset backed securities, may be valued
on the basis of prices provided by a pricing service or at a price obtained from
one or more of the major broker/dealers. In cases where broker/dealer quotes are
obtained, the Pricing Policies provide that the Adviser may establish procedures
whereby changes in market yields or spreads are used to adjust, on a daily
basis, a recently obtained quoted price on a security; and OTC and other
derivatives are valued on the basis of a quoted bid price or spread from a major
broker/dealer in such security. Securities for which market quotations are not
readily available are valued at fair value in accordance with the Pricing
Policies.
2. Currency Translation
Assets and liabilities denominated in foreign currencies and commitments under
forward exchange currency contracts are translated into U.S. dollars at the mean
of the quoted bid and asked prices of such currencies against the U.S. dollar.
Purchases and sales of portfolio securities are translated into U.S. dollars at
the rates of exchange prevailing when such securities were acquired or sold.
Income and expenses are translated into U.S. dollars at rates of exchange
prevailing when accrued.
Net realized gain or loss on foreign currency transactions represents foreign
exchange gains and losses from sales and maturities of foreign fixed income
investments, foreign currency exchange contracts, holding of foreign currencies,
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
- --------------------------------------------------------------------------------
16 o ALLIANCEBERNSTEIN PREMIER GROWTH FUND
Notes to Financial Statements
- --------------------------------------------------------------------------------
liabilities at period end exchange rates are reflected as a component of net
unrealized appreciation or depreciation of investments and foreign currency
denominated assets and liabilities.
3. Taxes
It is the Fund's policy to meet the requirements of the Internal Revenue Code
applicable to regulated investment companies and to distribute all of its
investment company taxable income and net realized gains, if any, to
shareholders. Therefore, no provisions for federal income or excise taxes are
required.
4. Investment Income and Investment Transactions
Dividend income is recorded on the ex-dividend date. Interest income is accrued
daily. Investment transactions are accounted for on the date the securities are
purchased or sold. Investment gains and losses are determined on the identified
cost basis. The Fund accretes discounts as adjustments to interest income.
5. Income and Expenses
All income earned and expenses incurred by the Fund are borne on a pro-rata
basis by each outstanding class of shares, based on the proportionate interest
in the Fund represented by the net assets of such class, except that the Fund's
Class B and Class C shares bear higher distribution and transfer agent fees than
Class A and Advisor Class shares. Advisor Class shares have no distribution
fees.
6. Dividends and Distributions
Dividends and distributions to shareholders, if any, 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.
7. Change of Fiscal Year End
The Fund changed its fiscal year end from November 30 to July 31. Accordingly,
the statement of operations, the statement of changes in net assets and
financial highlights reflect the period from December 1, 2002 to July 31, 2003.
NOTE B
Advisory Fee and Other Transactions with Affiliates
Under the terms of an investment advisory agreement, the Fund pays Alliance
Capital Management L.P. (the "Adviser") an advisory fee equal to the annualized
rate of 1.00% of the Fund's average daily net assets up to $5 billion, .95% of
the next $2.5 billion of the Fund's average daily net assets, .90% of the next
$2.5 billion of the Fund's average daily net assets, and .85% of the Fund's
average daily net assets over $10 billion. Such fee is accrued daily and paid
monthly.
- --------------------------------------------------------------------------------
ALLIANCEBERNSTEIN PREMIER GROWTH FUND o 17
Notes to Financial Statements
- --------------------------------------------------------------------------------
Pursuant to the advisory agreement, the Fund paid $95,000 and $150,000,
respectively, to the Adviser representing the cost of certain legal and
accounting services provided to the Fund by the Adviser for the period ended
July 31, 2003 and the year ended November 30, 2002.
The Fund compensates Alliance Global Investor Services, Inc. (AGIS), a
wholly-owned subsidiary of the Adviser, under a Transfer Agency Agreement for
providing personnel and facilities to perform transfer agency services for the
Fund. Such compensation amounted to $11,665,004 and $19,842,714, respectively,
for the period ended July 31, 2003 and the year ended November 30, 2002.
For the period ended July 31, 2003 and the year ended November 30, 2002, the
Fund's expenses were reduced by $6,588 and $97,192, respectively, under an
expense offset arrangement with AGIS.
AllianceBernstein Investment Research and Management, Inc.,
(the "Distributor"), formerly Alliance Fund Distributors, Inc., a wholly-owned
subsidiary of the Adviser, serves as the distributor of the Fund's shares. The
Distributor has advised the Fund that it has retained front-end sales charges
of $64,460 and $136,436 from the sale of Class A shares and received $100,020
and $85,652, $6,183,467 and $12,364,508 and $129,411 and $267,766 in contingent
deferred sales charges imposed upon redemptions by shareholders of Class A,
Class B and Class C shares, for the period ended July 31, 2003 and the year
ended November 30, 2002.
Brokerage commissions paid on investment transactions for the period ended July
31, 2003 and the year ended November 30, 2002 amounted to $15,101,692 and
$33,491,089, respectively, of which $830,806 and $1,356,855 respectively, were
paid to Sanford C. Bernstein & Co. LLC, an affiliate of the Adviser.
NOTE C
Distribution Services Agreement
The Fund has adopted a Distribution Services Agreement (the "Agreement")
pursuant to Rule 12b-1 under the Investment Company Act of 1940. Under the
Agreement, the Fund pays distribution and servicing fees to the Distributor at
an annual rate of up to .50% of the 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 Fund that it has incurred expenses in excess of the
distribution costs reimbursed by the Fund in the amount of $222,397,006 and
$16,227,026 for Class B and Class C shares, respectively; such costs may be
recovered from the Fund in future periods so long
- --------------------------------------------------------------------------------
18 o ALLIANCEBERNSTEIN PREMIER GROWTH FUND
Notes to Financial Statements
- --------------------------------------------------------------------------------
as the Agreement is in effect. In accordance with the Agreement, there is no
provision for recovery of unreimbursed distribution costs incurred by the
Distributor beyond the current fiscal year for Class A shares. The Agreement
also provides that the Adviser may use its own resources to finance the
distribution of the Fund's shares.
NOTE D
Investment Transactions
Purchases and sales of investment securities (excluding short-term investments)
for the period ended July 31, 2003, were as follows:
Purchases Sales
============== ==============
Investment securities (excluding
U.S. government securities) ........... $3,360,582,557 $4,069,719,648
U.S. government securities ............... 220,562,404 308,270,252
At July 31, 2003, the cost of investments for federal income tax purposes, gross
unrealized appreciation and unrealized depreciation are as follows:
Cost ................................................ $ 5,423,267,749
===============
Gross unrealized appreciation ....................... $ 1,052,458,744
Gross unrealized depreciation ....................... (303,285,515)
---------------
Net unrealized appreciation ......................... $ 749,173,229
===============
NOTE E
Securities Lending
The Fund has entered into a securities lending agreement with UBS Warburg LLC
(the "Lending Agent"), formerly UBS/PaineWebber, Inc. Under the terms of the
agreement, the Lending Agent, on behalf of the Fund, administers the lending of
portfolio securities to certain broker-dealers. In return, the Fund earns fee
income from the lending transactions or it retains a portion of interest on the
investment of any cash received as collateral. The Fund also continues to
receive dividends or interest on the securities loaned. Unrealized gain or loss
in the value of the securities loaned that may occur during the term of the
loan will be reflected in the accounts of the Fund. 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 an eligible money market
vehicle in accordance with the investment restrictions of the Fund. The Lending
Agent will indemnify the Fund for any loss resulting from a borrower's failure
to return a loaned security when due. As of July 31, 2003, the Fund had loaned
securities with a value of $38,484,283 and received cash collateral which was
invested in a money market fund valued at $39,695,900 as included in the
footnotes to the accompanying portfolio of investments. For the period ended
July 31, 2003, the Fund earned fee income of $260,203 which is included in
interest income in the accompanying statement of operations.
- --------------------------------------------------------------------------------
ALLIANCEBERNSTEIN PREMIER GROWTH FUND o 19
Notes to Financial Statements
- --------------------------------------------------------------------------------
NOTE F
Capital Stock
There are 12,000,000,000 shares of $0.001 par value capital stock authorized,
divided into four classes, designated Class A, Class B, Class C and Advisor
Class shares. Each Class consists of 3,000,000,000 authorized shares.
Transactions in capital stock were as follows:
--------------------------------------------------
Shares
--------------------------------------------------
December 1, Year Ended Year Ended
2002 to July 31, November 30, November 30,
2003(a) 2002 2001
--------------------------------------------------
Class A
Shares sold 279,090,125 554,408,235 192,958,567
- ------------------------------------------------------------------------------------
Shares issued in reinvestment
of distributions -0- -0- 14,599,765
- ------------------------------------------------------------------------------------
Shares converted from Class B 3,770,556 268,752 2,660,688
- ------------------------------------------------------------------------------------
Shares redeemed (309,282,067) (591,113,232) (197,758,238)
- ------------------------------------------------------------------------------------
Net increase (decrease) (26,421,386) (36,436,245) 12,460,782
====================================================================================
Class B
Shares sold 8,481,916 19,685,912 44,960,892
- ------------------------------------------------------------------------------------
Shares issued in reinvestment
of distributions -0- -0- 29,809,021
- ------------------------------------------------------------------------------------
Shares converted to Class A (4,108,744) (291,794) (2,861,332)
- ------------------------------------------------------------------------------------
Shares redeemed (39,262,247) (104,851,895) (81,347,624)
- ------------------------------------------------------------------------------------
Net decrease (34,889,075) (85,457,777) (9,439,043)
====================================================================================
Class C
Shares sold 7,726,444 18,632,268 29,064,163
- ------------------------------------------------------------------------------------
Shares issued in reinvestment
of distributions -0- -0- 11,341,751
- ------------------------------------------------------------------------------------
Shares redeemed (22,077,962) (53,886,000) (45,771,096)
- ------------------------------------------------------------------------------------
Net decrease (14,351,518) (35,253,732) (5,365,182)
====================================================================================
Advisor Class
Shares sold 14,418,320 20,922,564 21,466,919
- ------------------------------------------------------------------------------------
Shares issued in reinvestment
of distributions -0- -0- 1,454,109
- ------------------------------------------------------------------------------------
Shares redeemed (3,046,492) (7,353,669) (15,650,405)
- ------------------------------------------------------------------------------------
Net increase 11,371,828 13,568,895 7,270,623
====================================================================================
(a) The Fund changed its fiscal year end from November 30 to July 31.
- --------------------------------------------------------------------------------
20 o ALLIANCEBERNSTEIN PREMIER GROWTH FUND
Notes to Financial Statements
- --------------------------------------------------------------------------------
---------------------------------------------------------
Amount
---------------------------------------------------------
December 1, Year Ended Year Ended
2002 to July 31, November 30, November 30,
2003(a) 2002 2001
---------------------------------------------------------
Class A
Shares sold $ 3,948,413,879 $ 8,817,682,822 $ 4,423,315,850
- ------------------------------------------------------------------------------------------
Shares issued in reinvestment
of distributions -0- -0- 407,490,039
- ------------------------------------------------------------------------------------------
Shares converted from Class B 54,144,465 4,050,046 56,630,812
- ------------------------------------------------------------------------------------------
Shares redeemed (4,357,150,751) (9,454,945,989) (4,508,637,921)
- ------------------------------------------------------------------------------------------
Net increase (decrease) $ (354,592,407) $ (633,213,121) $ 378,798,780
==========================================================================================
Class B
Shares sold $ 111,928,336 $ 318,892,928 $ 1,012,469,813
- ------------------------------------------------------------------------------------------
Shares issued in reinvestment
of distributions -0- -0- 777,718,782
- ------------------------------------------------------------------------------------------
Shares converted to Class A (54,144,465) (4,050,046) (56,630,811)
- ------------------------------------------------------------------------------------------
Shares redeemed (510,011,038) (1,629,288,066) (1,727,699,159)
- ------------------------------------------------------------------------------------------
Net increase (decrease) $ (452,227,167) $(1,314,445,184) $ 5,858,625
==========================================================================================
Class C
Shares sold $ 101,212,937 $ 297,238,453 $ 655,157,404
- ------------------------------------------------------------------------------------------
Shares issued in reinvestment
of distributions -0- -0- 296,360,110
- ------------------------------------------------------------------------------------------
Shares redeemed (288,062,317) (845,803,447) (991,443,510)
- ------------------------------------------------------------------------------------------
Net decrease $ (186,849,380) $ (548,564,994) $ (39,925,996)
==========================================================================================
Advisor Class
Shares sold $ 219,711,065 $ 375,797,377 $ 498,862,134
- ------------------------------------------------------------------------------------------
Shares issued in reinvestment
of distributions -0- -0- 41,311,238
- ------------------------------------------------------------------------------------------
Shares redeemed (44,381,917) (130,154,909) (378,679,715)
- ------------------------------------------------------------------------------------------
Net increase $ 175,329,148 $ 245,642,468 $ 161,493,657
==========================================================================================
(a) The Fund changed its fiscal year end from November 30 to July 31.
NOTE G
Joint Credit Facility
A number of open-end mutual funds managed by the Adviser, including the Fund,
participate in a $500 million revolving credit facility (the "Facility")
intended to provide short-term financing if necessary, subject to certain
restrictions in connection with abnormal redemption activity. Commitment fees
related to the Facility are paid by the participating funds and are included in
miscellaneous expenses in the statement of operations. The Fund did not utilize
the Facility during the period ended July 31, 2003.
- --------------------------------------------------------------------------------
ALLIANCEBERNSTEIN PREMIER GROWTH FUND o 21
Notes to Financial Statements
- --------------------------------------------------------------------------------
NOTE H
Distributions to Shareholders
The tax character of distributions paid during the fiscal years ended July 31,
2003, November 30, 2002 and November 30, 2001 were as follows:
2003 2002 2001
======== ======== ==============
Distributions paid from:
Net long-term capital gains .......... $ -0- $ -0- $1,629,798,699
Total taxable distributions ............. -0- -0- 1,629,798,699
-------- -------- --------------
Total distributions paid ................ $ -0- $ -0- $1,629,798,699
-------- -------- --------------
As of July 31, 2003, the components of accumulated earnings/(deficit) on a tax
basis were as follows:
Accumulated capital and other losses ................ $(9,377,783,084)(a)
Unrealized appreciation/(depreciation) .............. 749,173,229(b)
---------------
Total accumulated earnings/(deficit) ................ $(8,628,609,855)
---------------
(a) On July 31, 2003, the Fund had a net capital loss carryforward of
$9,377,783,084, of which $6,203,223,867 expires in the year 2009,
$2,082,402,414 expires in the year 2010 and $1,092,156,803 which expires
in the year 2011. To the extent future capital gains are offset by capital
loss carryforward, such gains will not be distributed.
(b) The difference between book-basis and tax-basis unrealized
appreciation/(depreciation) is attributable primarily to the tax deferral
of losses on wash sales.
During the period ended July 31 2003, permanent differences, primarily due to a
net investment loss of $60,479,813, resulted in a net decrease in accumulated
net investment loss and a corresponding decrease in additional paid-in capital.
This reclassification had no effect on net assets.
NOTE I
Litigation
On September 12, 2002, a complaint entitled Lawrence E. Jaffe Pension Plan,
Lawrence E. Jaffe Trustee U/A 1198 v. Alliance Capital Management L.P., Alfred
Harrison and Alliance Premier Growth Fund, Inc. ("Jaffe Complaint") was filed in
federal district court in the Southern District of New York against Alliance
Capital Management L.P. ("Alliance Capital"), Alfred Harrison and the Fund
alleging violation of the Investment Company Act of 1940 ("ICA"). The Jaffe
Complaint alleges that the defendants breached their fiduciary duties of
loyalty, care and good faith to the Fund by causing the Fund to invest in the
securities of Enron Corp. ("Enron") and that the agreements between the Fund and
Alliance Capital violated the ICA because all of the directors of the Fund
should be deemed interested under the ICA. Plaintiff seeks damages equal to the
Fund's losses as a result of the Fund's investment in shares of Enron and a
recovery of all fees paid to Alliance Capital beginning November 1, 2000. On
March 24, 2003, the court granted Alliance Capital's motion to transfer the
Jaffe Complaint to the United States District Court for the District of New
Jersey to be consolidated
- --------------------------------------------------------------------------------
22 o ALLIANCEBERNSTEIN PREMIER GROWTH FUND
Notes to Financial Statements
- --------------------------------------------------------------------------------
with the Benak v. Alliance Capital Management L.P. action already pending there.
The Fund is no longer named as a defendant in this case.
Alliance Capital believes that plaintiff's allegations in the Jaffe Complaint
are without merit and intend to vigorously defend against these allegations.
On December 13, 2002, a complaint entitled Patrick J. Goggins et al., v.
Alliance Capital Management L.P. et al. ("Goggins Complaint") was filed in
federal district court in the Southern District of New York against Alliance
Capital, the Fund and individual directors and certain officers of the Fund. The
Goggins Complaint alleges that defendants violated the Securities Act of 1933
because the Fund's registration statements and prospectuses allegedly were
materially misleading, contained untrue statements of material fact and omitted
material facts in describing the strategic objectives and investment strategies
of the Fund in relation to its investments, including its investments in Enron
securities. Plaintiffs seek rescissory relief or an unspecified amount of
compensatory damages. Alliance Capital's time to move, answer or otherwise
respond to the Goggins Complaint is currently stayed. Since the litigation is in
its early stages the ultimate outcome can not be determined at this time.
Alliance Capital, the Fund and the other defendants believe the plaintiffs'
allegations in the Goggins Complaint are without merit and intend to vigorously
defend against these allegations.
NOTE J
Subsequent Events
Alliance Capital Management L.P., ("Alliance Capital") the Fund's Adviser, has
been contacted by the Office of the New York State Attorney General ("NYAG")
and the United States Securities and Exchange Commission ("SEC") in connec-
tion with their investigation of practices in the mutual fund industry
identified as "market timing" and "late trading" of mutual fund shares.
Alliance Capital has been providing full cooperation with respect to these
investigations.
Based on the preliminary results of its own ongoing internal investigation con-
cerning mutual fund transactions, Alliance Capital has identified conflicts of
interest in connection with certain market timing transactions. In this regard,
Alliance Capital has suspended two of its employees, neither of which was a
portfolio manager or officer of the Fund. Alliance Capital continues to review
the facts and circumstances relevant to the SEC's and NYAG's investigations,
including whether third parties may have engaged in illegal late trading in the
Funds and whether any of its employees knowingly facilitated such late trading.
Consistent with the best interests of the Fund and its shareholders, Alliance
Capital intends to vigorously pursue its rights, and the rights of the Fund
and its shareholders, if it is determined that such trading occurred. At the
present time,
- -------------------------------------------------------------------------------
ALLIANCEBERNSTEIN PREMIER GROWTH FUND o 23
Notes to Financial Statements
- -------------------------------------------------------------------------------
management of Alliance Capital is unable to estimate the impact, if any, that
the outcome of these investigations may have on the Fund or Alliance Capital's
results of operations or financial condition.
Alliance Capital also announced that its Board of Directors authorized a
special committee, comprised of the members of Alliance Capital's Audit
Committee and the other independent member of the Board, to direct and oversee
a comprehensive review of the facts and circumstances relevant to the SEC's and
the NYAG's investigations.
On October 2, 2003, a class action complaint entitled Hindo et al. v.
AllianceBernstein Growth & Income Fund et al. (the "Hindo Complaint"),
was filed in federal district court in the Southern District of New York
against Alliance Capital Management Holding L.P.; Alliance Capital ; Alliance
Capital Management Corporation (collectively, the "Alliance Capital
defendants"); certain of the AllianceBernstein Mutual Funds, including the
Fund, AXA Financial,
Inc.; Gerald Malone; Charles Schaffran; Edward J. Stern; Canary Capital
Partners, LLC; Canary Investment Management LLC; Canary Capital Partners,
Ltd.; and other unnamed defendants. The action, which is brought on behalf of
a putative class of all persons who purchased shares in one or more of the
defendant mutual funds between October 2, 1998 and September 29, 2003, alleges
violations of the Securities Act of 1933, the Securities Exchange Act of 1934
and the Investment Advisors Act of 1940. The principal allegations of the Hindo
Complaint are that the Alliance Capital defendants entered into agreements
under which certain named and unnamed parties were permitted to engage in
late trading and market timing transactions in the defendant funds. According
to the Complaint, these agreements were fraudulent and a breach of fiduciary
duty to fund shareholders. In addition, plaintiffs allege that the prospectuses
for the named AllianceBernstein mutual funds were false and misleading because
they: (i) failed to disclose the existence of these late trading and market
timing agreements; and (ii) represented that fund shareholders would be
safeguarded against the effects of such agreements. Plaintiffs seek
unspecified damages, the rescission of plaintiffs' contracts with Alliance
Capital, and recovery of any fees paid in connection therewith. Alliance
Capital is evaluating the claims in the Hindo Complaint and intends to
vigorously defend against them. At the present time, management of Alliance
Capital is unable to estimate the impact, if any, that the outcome of this
action may have on the Fund or on Alliance Capital's results of operations
or financial condition. On October 8, 2003, a similar complaint was filed in
federal district court in the Eastern District of New York in which all
AllianceBernstein Funds are named as nominal defendants. Alliance Capital
understands that additional lawsuits that are similar to these lawsuits have
been filed, and believes that others may be filed, against Alliance Capital
defendants and related parties.
- --------------------------------------------------------------------------------
24 o ALLIANCEBERNSTEIN PREMIER GROWTH FUND
Notes to Financial Statements
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
------------------------------------------------------------------------------------------------
Class A
------------------------------------------------------------------------------------------------
December 1, Year Ended November 30,
2002 to ----------------------------------------------------------------------------
July 31, 2003(a) 2002 2001 2000 1999 1998
------------------------------------------------------------------------------------------------
Net asset value, beginning
of period ................... $ 15.07 $ 20.24 $ 29.51 $ 35.82 $ 27.50 $ 22.00
-----------------------------------------------------------------------------------------------
Income From Investment
Operations
Net investment loss(b) ........ (.10) (.19) (.19) (.26) (.28) (.15)
Net realized and unrealized
gain (loss) on investment
transactions ................ .61 (4.98) (6.43) (3.69) 9.21 7.11
-----------------------------------------------------------------------------------------------
Net increase (decrease) in net
asset value from operations . .51 (5.17) (6.62) (3.95) 8.93 6.96
-----------------------------------------------------------------------------------------------
Less: Distributions
Distributions from net realized
gain on investment
transactions ................ -0- -0- (2.38) (2.36) (.61) (1.46)
Distributions in excess of net
realized gain on investment
transactions ................ -0- -0- (.27) -0- -0- -0-
-----------------------------------------------------------------------------------------------
Total distributions ........... -0- -0- (2.65) (2.36) (.61) (1.46)
-----------------------------------------------------------------------------------------------
Net asset value, end
of period ................... $ 15.58 $ 15.07 $ 20.24 $ 29.51 $ 35.82 $ 27.50
===============================================================================================
Total Return
Total investment return based
on net asset value(c) ....... 3.38% (25.54)% (24.90)% (11.91)% 33.13% 33.94%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted) ............. $ 1,757,243 $ 2,098,623 $ 3,556,040 $ 4,817,131 $ 4,285,490 $ 1,418,262
Ratio to average net assets of:
Expenses .................... 1.89%(d) 1.73% 1.53% 1.44% 1.50% 1.59%(e)
Net investment loss ......... (1.08)%(d) (1.09)% (.83)% (.71)% (.85)% (.59)%
Portfolio turnover rate ....... 60% 93% 135% 125% 75% 82%
See footnote summary on page 28.
- --------------------------------------------------------------------------------
ALLIANCEBERNSTEIN PREMIER GROWTH FUND o 25
Financial Highlights
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
------------------------------------------------------------------------------------------------
Class B
------------------------------------------------------------------------------------------------
December 1, Year Ended November 30,
2002 to ----------------------------------------------------------------------------
July 31, 2003(a) 2002 2001 2000 1999 1998
------------------------------------------------------------------------------------------------
Net asset value, beginning
of period ................... $ 13.88 $ 18.78 $ 27.76 $ 34.05 $ 26.33 $ 21.26
-----------------------------------------------------------------------------------------------
Income From Investment
Operations
Net investment loss(b) ........ (.16) (.29) (.35) (.48) (.48) (.30)
Net realized and unrealized
gain (loss) on investment
transactions ................ .55 (4.61) (5.98) (3.45) 8.81 6.83
-----------------------------------------------------------------------------------------------
Net increase (decrease) in net
asset value from operations . .39 (4.90) (6.33) (3.93) 8.33 6.53
-----------------------------------------------------------------------------------------------
Less: Distributions
Distributions from net realized
gain on investment
transactions ................ -0- -0- (2.38) (2.36) (.61) (1.46)
Distributions in excess of net
realized gain on investment
transactions ................ -0- -0- (.27) -0- -0- -0-
-----------------------------------------------------------------------------------------------
Total distributions ........... -0- -0- (2.65) (2.36) (.61) (1.46)
-----------------------------------------------------------------------------------------------
Net asset value, end
of period ................... $ 14.27 $ 13.88 $ 18.78 $ 27.76 $ 34.05 $ 26.33
===============================================================================================
Total Return
Total investment return based
on net asset value(c) ....... 2.81% (26.09)% (25.48)% (12.51)% 32.30% 33.04%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted) ............. $ 2,670,330 $ 3,080,955 $ 5,774,836 $ 8,797,132 $ 8,161,471 $ 2,799,288
Ratio to average net assets of:
Expenses .................... 2.65%(d) 2.47% 2.25% 2.13% 2.18% 2.28%(e)
Net investment loss ......... (1.84)%(d) (1.84)% (1.59)% (1.40)% (1.53)% (1.27)%
Portfolio turnover rate ....... 60% 93% 135% 125% 75% 82%
See footnote summary on page 28.
- --------------------------------------------------------------------------------
26 o ALLIANCEBERNSTEIN PREMIER GROWTH FUND
Financial Highlights
- --------------------------------------------------------------------------------
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
------------------------------------------------------------------------------------------------
Class C
------------------------------------------------------------------------------------------------
December 1, Year Ended November 30,
2002 to ----------------------------------------------------------------------------
July 31, 2003(a) 2002 2001 2000 1999 1998
------------------------------------------------------------------------------------------------
Net asset value, beginning
of period ................... $ 13.90 $ 18.81 $ 27.80 $ 34.09 $ 26.36 $ 21.29
-----------------------------------------------------------------------------------------------
Income From Investment
Operations
Net investment loss(b) ........ (.16) (.29) (.35) (.48) (.49) (.31)
Net realized and unrealized
gain (loss) on investment
transactions ................ .56 (4.62) (5.99) (3.45) 8.83 6.84
-----------------------------------------------------------------------------------------------
Net increase (decrease)
in net asset value
from operations ............. .40 (4.91) (6.34) (3.93) 8.34 6.53
-----------------------------------------------------------------------------------------------
Less: Distributions
Distributions from net realized
gain on investment
transactions ................ -0- -0- (2.38) (2.36) (.61) (1.46)
Distributions in excess of net
realized gain on investment
transactions ................ -0- -0- (.27) -0- -0- -0-
-----------------------------------------------------------------------------------------------
Total distributions ........... -0- -0- (2.65) (2.36) (.61) (1.46)
-----------------------------------------------------------------------------------------------
Net asset value, end
of period ................... $ 14.30 $ 13.90 $ 18.81 $ 27.80 $ 34.09 $ 26.36
===============================================================================================
Total Return
Total investment return based
on net asset value(c) ....... 2.88% (26.10)% (25.48)% (12.49)% 32.31% 32.99%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted) ............. $ 943,029 $ 1,116,314 $ 2,173,671 $ 3,361,307 $ 2,965,440 $ 862,193
Ratio to average net assets of:
Expenses .................... 2.62%(d) 2.45% 2.26% 2.13% 2.18% 2.28%(e)
Net investment loss ......... (1.81)%(d) (1.81)% (1.59)% (1.40)% (1.53)% (1.30)%
Portfolio turnover rate ....... 60% 93% 135% 125% 75% 82%
See footnote summary on page 28.
- --------------------------------------------------------------------------------
ALLIANCEBERNSTEIN PREMIER GROWTH FUND o 27
Financial Highlights
- --------------------------------------------------------------------------------
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
------------------------------------------------------------------------------------------------
Advisor Class
------------------------------------------------------------------------------------------------
December 1, Year Ended November 30,
2002 to ----------------------------------------------------------------------------
July 31, 2003(a) 2002 2001 2000 1999 1998
------------------------------------------------------------------------------------------------
Net asset value, beginning
of period ................... $ 15.42 $ 20.65 $ 29.99 $ 36.25 $ 27.71 $ 22.10
-----------------------------------------------------------------------------------------------
Income From Investment
Operations
Net investment loss(b) ........ (.08) (.14) (.14) (.14) (.17) (.07)
Net realized and unrealized
gain (loss) on investment
transactions ................ .63 (5.09) (6.55) (3.76) 9.32 7.14
-----------------------------------------------------------------------------------------------
Net increase (decrease)
in net asset value
from operations ............. .55 (5.23) (6.69) (3.90) 9.15 7.07
-----------------------------------------------------------------------------------------------
Less: Distributions
Distributions from net realized
gain on investment
transactions ................ -0- -0- (2.38) (2.36) (.61) (1.46)
Distributions in excess of net
realized gain on investment
transactions ................ -0- -0- (.27) -0- -0- -0-
-----------------------------------------------------------------------------------------------
Total distributions ........... -0- -0- (2.65) (2.36) (.61) (1.46)
-----------------------------------------------------------------------------------------------
Net asset value,
end of period ............... $ 15.97 $ 15.42 $ 20.65 $ 29.99 $ 36.25 $ 27.71
===============================================================================================
Total Return
Total investment return based
on net asset value(c) ....... 3.57% (25.33)% (24.72)% (11.61)% 33.68% 34.31%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted) ............. $ 793,162 $ 590,508 $ 510,603 $ 523,315 $ 466,690 $ 271,661
Ratio to average net assets of:
Expenses .................... 1.60%(d) 1.45% 1.25% 1.11% 1.16% 1.26%(e)
Net investment loss ......... (.78)%(d) (.79)% (.59)% (.38)% (.51)% (.28)%
Portfolio turnover rate ....... 60% 93% 135% 125% 75% 82%
(a) The Fund changed its fiscal year end from November 30 to July 31.
(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 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) Annualized.
(e) Ratio reflects expenses grossed up for the expense offset arrangement with
the Transfer Agent. For the year ended November 30, 1998, the ratios of
expenses to average net assets were 1.58% for Class A shares, 2.27% for
Class B shares, 2.27% for Class C shares and 1.25% for Advisor Class
shares, respectively.
- --------------------------------------------------------------------------------
28 o ALLIANCEBERNSTEIN PREMIER GROWTH FUND
Report of Independent Auditors
- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT AUDITORS
To the Board of Directors and Shareholders of AllianceBernstein Premier Growth
Fund, Inc.
In our opinion, the accompanying statement of assets and liabilities, including
the portfolio of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of AllianceBernstein Premier Growth
Fund, Inc., formerly Alliance Premier Growth Fund, Inc., (the "Fund") at July
31, 2003, the results of its operations for the period December 1, 2002 through
July 31, 2003 and for the year ended November 30, 2002, the changes in its net
assets for the period December 1, 2002 through July 31, 2003 and for each of the
two years in the period ended November 30, 2002 and the financial highlights for
the period December 1, 2002 through July 31, 2003 and for each of the five years
in the period ended November 30, 2002, in conformity with accounting principles
generally accepted in the United States of America. These financial statements
and financial highlights (hereafter referred to as "financial statements") are
the responsibility of the Fund's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with auditing standards
generally accepted in the United States of America, which require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at July
31, 2003 by correspondence with the custodian and brokers, provide a reasonable
basis for our opinion.
PricewaterhouseCoopers LLP
New York, New York
September 12, 2003, except for Note J which is as of October 9, 2003.
- --------------------------------------------------------------------------------
ALLIANCEBERNSTEIN PREMIER GROWTH FUND o 29
Board of Directors
- --------------------------------------------------------------------------------
BOARD OF DIRECTORS
John D. Carifa, Chairman and President
Ruth Block(1)
David H. Dievler(1)
John H. Dobkin(1)
William H. Foulk, Jr.(1)
Clifford L. Michel(1)
Donald J. Robinson(1)
OFFICERS
Thomas J. Bardong, Vice President
Thomas G. Kamp, Vice President
Daniel Nordby, Vice President
Michael J. Reilly, 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, TX 78278-6003
Toll-Free (800) 221-5672
Independent Auditors
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, NY 10036-2798
Legal Counsel
Seward & Kissel LLP
One Battery Park Plaza
New York, NY 10004
(1) Member of the Audit Committee.
- --------------------------------------------------------------------------------
30 o ALLIANCEBERNSTEIN PREMIER GROWTH FUND
Management of the Fund
- --------------------------------------------------------------------------------
MANAGEMENT OF THE FUND
(unaudited)
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
PRINCIPAL IN FUND OTHER
NAME, AGE OF DIRECTOR, OCCUPATION(S) COMPLEX DIRECTORSHIPS
ADDRESS DURING OVERSEEN BY HELD BY
(YEARS OF SERVICE*) PAST 5 YEARS DIRECTOR DIRECTOR
- ---------------------------------------------------------------------------------------------------------
INTERESTED DIRECTOR
John D. Carifa,**, 58 President, Chief Operating Officer 116 None
1345 Avenue of the and a Director of Alliance Capital
Americas Management Corporation ("ACMC"),
New York, NY 10105 with which he has been associated
(11) since prior to 1998.
DISINTERESTED DIRECTORS
Ruth Block,#+, 72 Formerly Executive Vice President 97 None
P.O. Box 4623 and Chief Insurance Officer of The
Stamford, CT 06903 Equitable Life Assurance Society
(11) of the United States; Chairman
and Chief Executive Officer of
Evlico; Director of Avon, BP (oil
and gas), Ecolab Incorporated
(specialty chemicals), Tandem
Financial Group, and Donaldson
Lufkin & Jenrette Securities
Corporation; former Governor at
Large-National Association of
Securities Dealers, Inc.
David H. Dievler,#+, 73 Independent consultant. Until 101 None
P.O. Box 167 December 1994, Senior Vice
Spring Lake, NJ 07762 President of ACMC responsible
(11) for mutual fund administration.
Prior to joining ACMC in 1984,
Chief Financial Officer of
Eberstadt Asset Management
since 1968. Prior to that, Senior
Manager at Price Waterhouse &
Co. Member of American
Institute of Certified Public
Accountants since 1953.
John H. Dobkin,#+, 61 Consultant. Formerly 98 None
P.O. Box 12 President of Save Venice, Inc. from
Annandale, NY 12504 2001-2002, and Senior Advisor from
(11) June 1999 - June 2000 and
President (December 1989 -
May 1999) of Historic Hudson
Valley (historic preservation).
Previously, Director of the
National Academy of Design.
During 1988-92, Director and
Chairman of the Audit
Committee of ACMC.
- --------------------------------------------------------------------------------
ALLIANCEBERNSTEIN PREMIER GROWTH FUND o 31
Management of the Fund
- --------------------------------------------------------------------------------
PORTFOLIOS
PRINCIPAL IN FUND OTHER
NAME, AGE OF DIRECTOR, OCCUPATION(S) COMPLEX DIRECTORSHIPS
ADDRESS DURING OVERSEEN BY HELD BY
(YEARS OF SERVICE*) PAST 5 YEARS DIRECTOR DIRECTOR
- ---------------------------------------------------------------------------------------------------------
DISINTERESTED DIRECTORS
(continued)
William H. Foulk, Jr., #+, 71 Investment Adviser and an 113 None
2 Sound View Drive independent consultant.
Suite 100 Formerly Senior Manager of Barrett
Greenwich, CT 06830 Associates, Inc., a registered
(11) 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 97 Placer Dome,
15 St. Bernard's Road Cahill Gordon & Reindel since Inc.
Gladstone, NJ 07934 February 2001 and a partner of
(11) that firm for more than 25 years
prior thereto. President and
Chief Executive Officer of
Wenonah Development
Company (investments) and a
Director of the Placer Dome Inc.
(mining).
Donald J. Robinson, #+ 69 Senior Counsel to the law firm of 96 None
98 Hell's Peak Road Orrick, Herrington & Sutcliffe LLP
Weston, VT 05161 since prior to 1998. Formerly a
(7) 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 PREMIER GROWTH FUND
Management of the Fund
- --------------------------------------------------------------------------------
Officer Information
Certain information concerning the Fund's Officers is listed below.
NAME, POSITION(S) PRINCIPAL OCCUPATION
ADDRESS* AND AGE HELD WITH FUND DURING PAST 5 YEARS**
- -------------------------------------------------------------------------------------------------------
John D. Carifa, 58 Chairman & President See biography above.
Thomas J. Bardong, 58 Vice President Senior Vice President of ACMC**, with
which he has been associated since
prior to 1998.
Thomas G. Kamp, 42 Vice President Senior Vice President of ACMC**, with
which he has been associated since
prior to 1998.
Daniel Nordby, 59 Vice President Senior Vice President of ACMC**, with
which he has been associated since
prior to 1998.
Michael J. Reilly, 39 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 the General
Counsel of Alliance Fund Distributors,
Inc. ("AFD")** 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**, and
Financial Officer Vice President of ABIRM**, with which
he has been associated since prior to
1998.
Vincent S. Noto, 38 Controller Vice President of AGIS**, with which he
has been associated since prior to
1998.
* The address for each of the Fund's Officers is 1345 Avenue of the
Americas, New York, NY 10105.
** ACMC, AFD 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 800-227-4618 for a free prospectus or SAI.
- --------------------------------------------------------------------------------
ALLIANCEBERNSTEIN PREMIER GROWTH FUND o 33
AllianceBernstein Family of Funds
- --------------------------------------------------------------------------------
ALLIANCEBERNSTEIN FAMILY OF FUNDS
Wealth Strategies Funds
Balanced Wealth Strategy
Wealth Appreciation
Wealth Preservation
Tax-Managed Balanced Wealth Strategy
Tax-Managed Wealth Appreciation
Tax-Managed Wealth Preservation
U.S. Growth Funds
Growth Fund
Health Care Fund
Mid-Cap Growth Fund
Premier Growth Fund
Quasar Fund
Select Investor Series Biotechnology Portfolio
Select Investor Series Premier Portfolio
Select Investor Series Technology Portfolio
Technology Fund
U.S. Value Funds
Balanced Shares
Disciplined Value Fund
Growth & Income Fund
Real Estate Investment Fund
Small Cap Value Fund
Utility Income Fund
Value Fund
Blended Style Series
U.S. Large Cap Portfolio
Global & International Growth Funds
All-Asia Investment Fund
Global Small Cap Fund
Greater China '97 Fund
International Premier Growth Fund
New Europe Fund
Worldwide Privatization Fund
Global & International Value Funds
Global Value Fund
International Value Fund
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
Municipal Income Funds
Intermediate California
Intermediate Diversified
Intermediate New York
Arizona
California
Insured California
Insured National
Florida
Massachusetts
Michigan
Minnesota
National
New Jersey
New York
Ohio
Pennsylvania
Virginia
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 PREMIER GROWTH FUND
NOTES
- --------------------------------------------------------------------------------
ALLIANCEBERNSTEIN PREMIER GROWTH FUND o 35
NOTES
- --------------------------------------------------------------------------------
36 o ALLIANCEBERNSTEIN PREMIER GROWTH FUND
AllianceBernstein Family of Funds
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
ALLIANCEBERNSTEIN PREMIER GROWTH FUND
1345 Avenue of the Americas
New York, NY 10105
(800) 221-5672
[LOGO] AllianceBernstein(SM)
Investment Research and Management
(SM) This service mark used under license from the owner, Alliance Capital
Management L.P.
APGAR0703
ITEM 2. CODE OF ETHICS.
(a) The registrant has adopted a code of ethics that applies to its principal
executive officer, principal financial officer and principal accounting officer.
A copy of the registrant's code of ethics is filed herewith as Exhibit 10(a)(1).
(b) During the period covered by this report, no amendments were made to the
provisions of the code of ethics adopted in 2(a) above.
(c) During the period covered by this report, no implicit or explicit waivers to
the provisions of the code of ethics adopted in 2(a) above were granted.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The registrant's Board of Directors has determined that independent directors
Messrs. David H. Dievler and William H. Foulk qualify as an audit committee
financial expert.
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 (a) (1) Code of ethics that is subject to the disclosure of Item 2
hereof
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 Premier Growth Fund, Inc.
By: /s/John D. Carifa
---------------------------------
John D. Carifa
President
Date: October 9, 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: October 9, 2003
By: /s/Mark D. Gersten
-------------------------------
Mark D. Gersten
Treasurer and Chief Financial Officer
Date: October 9, 2003