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: 811-01415
AllianceBernstein Global Small Cap 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 Global Small Cap Fund
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Global Small Cap 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 Global Small Cap Fund (the "Fund") for the annual reporting
period ended July 31, 2003.
Investment Objectives and Policies
This open-end fund seeks long-term growth of capital. It invests principally in
a global portfolio of equity securities issued by selected companies with
relatively small market capitalizations.
Investment Results
The following table provides performance data for the Fund and its benchmark,
the Morgan Stanley Capital International (MSCI) World Index, and its peer group,
the Lipper Global Small Cap Funds Average, for the six- and 12-month periods
ended July 31, 2003.
INVESTMENT RESULTS*
Periods Ended July 31, 2003
---------------------------
Returns
---------------------------
6 Months 12 Months
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AllianceBernstein
Global Small
Cap Fund
Class A 20.92% 8.43%
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Class B 20.49% 7.69%
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Class C 20.20% 7.48%
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MSCI World Index 17.28% 9.32%
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Lipper Global
Small Cap
Funds Average 23.48% 13.65%
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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 MSCI World Index is a market capitalization-weighted index
that measures the performance of stock markets in 33 countries. The Lipper
Global Small Cap Funds Average reflects the performance of 55 funds and 54
funds for the six- and 12-month periods, respectively. These funds have
generally similar investment objectives to the Fund, although investment
policies for the various funds may differ. An investor cannot invest
directly in an index, and its results are not indicative of the
performance for any specific investment, including AllianceBernstein
Global Small Cap Fund.
Additional investment results appear on page 5.
The Fund's Class A shares gained 20.92% over the six-month period ending July
31, 2003, outperforming the MSCI World Index which gained 17.28% over the same
time frame. Outperformance during the period was primarily driven by strong
stock selection, which was favorable across all major geographical regions.
Relative returns during the period also benefited
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ALLIANCEBERNSTEIN GLOBAL SMALL CAP FUND o 1
from a greater-than-benchmark weighting of higher beta, smaller-capitalization
securities which were particularly strong performers. Although not a primary
component of our strategy, country allocations and currency were both modest
contributors to the Fund's overall outperformance during the period.
For the 12-month period ending July 31, 2003, the Fund's Class A shares gained
8.43% versus the MSCI World Index's 9.32% return. The Fund's underperformance
over this time frame stemmed from below-benchmark performance during the first
half of the 12-month reporting period, which resulted largely from disappointing
stock selection within the European region of the Fund. Country allocations and
currency only marginally impacted relative returns during the 12-month period.
Market Overview and Investment Strategy
Global markets experienced strong absolute returns over the six-month period.
While these gains were widespread, smaller and more speculative stocks (i.e.
those without earnings versus those with earnings) were the strongest performers
over this time frame. The strongest performing sectors included technology,
consumer cyclicals, business services, and banks, while consumer staples, energy
and utilities were notable laggards.
The Fund's portfolio management team increased the Fund's active exposure to the
technology sector and decreased its exposure to the consumer staples and
financials sectors during the period. As of July 31, 2003, the Fund's largest
overweight positions were technology, industrials, consumer cyclicals and health
care while its largest underweight positions were in the financial services,
consumer staples, energy and telecommunications sectors. Regional allocations
remain largely unchanged, with the Fund overweight in Asia and underweight in
Europe and North America.
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2 o ALLIANCEBERNSTEIN GLOBAL SMALL CAP FUND
Performance Update
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PERFORMANCE UPDATE
ALLIANCEBERNSTEIN GLOBAL SMALL CAP FUND
GROWTH OF A $10,000 INVESTMENT
7/31/93 - 7/31/03
[THE FOLLOWING TABLE WAS DEPICTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL.]
ALLIANCEBERNSTEIN GLOBAL SMALL CAP FUND CLASS A
GROWTH OF A $10,000 INVESTMENT
7/31/93 - 7/31/03
Lipper
AllianceBernstein Global Small Cap
Global Small Cap Funds MSCI
Fund Average World Index
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7/31/93 9575 10000 10000
7/31/94 10231 11267 11060
7/31/95 11931 13619 12675
7/31/96 14015 15178 13857
7/31/97 17724 18181 18452
7/31/98 18166 19136 20687
7/31/99 19529 19954 23979
7/31/00 25741 26006 26304
7/31/01 17027 20333 21363
7/31/02 12254 16536 16874
7/31/03 13287 18558 18448
Lipper Global Small Cap Funds Average: $18,558
MSCI World Index: $18,448
AllianceBernstein Global Small Cap Fund Class A: $13,287
This chart illustrates the total value of an assumed $10,000 investment in
AllianceBernstein Global Small Cap Fund (from 7/31/93 to 7/31/03) as compared to
the performance of an appropriate broad-based index and the Lipper Global Small
Cap Funds Average. 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 $10,000 investment in the Fund and assumes the reinvestment of dividends
and capital gains. Performance for Class B, Class C and Advisor Class shares
will vary from the results shown above due to differences in expenses charged to
these classes. Past performance is not indicative of future results, and is not
representative of future gain or loss in capital value or dividend income.
The unmanaged MSCI World Index is a market capitalization-weighted index that
measures the performance of stock markets in 33 countries.
The Lipper Global Small Cap Funds Average reflects the performance of 12 funds
(based on the number of funds in the average from 7/31/93 to 7/31/03). These
funds have generally similar investment objectives to AllianceBernstein Global
Small Cap Fund, although the investment policies of some funds included in the
average may vary.
When comparing AllianceBernstein Global Small Cap Fund to the index and average
shown above, you should note that no sales charges or expenses are reflected in
the performance of the index. Lipper results include fees and expenses. An
investor cannot invest directly in an index or an average, and its results are
not indicative of any specific investment, including AllianceBernstein Global
Small Cap Fund.
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ALLIANCEBERNSTEIN GLOBAL SMALL CAP FUND o 3
Portfolio Summary
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PORTFOLIO SUMMARY
July 31, 2003
INCEPTION DATES PORTFOLIO STATISTICS
Class A Shares Net Assets ($mil): $68.6
9/29/66
Class B Shares
9/17/90
Class C Shares
5/3/93
SECTOR BREAKDOWN
23.3% Consumer Services
19.5% Technology
14.7% Health Care
12.2% Finance
10.6% Capital Goods
3.9% Basic Industry [PIE CHART OMITTED]
3.4% Energy
2.9% Transportation
2.4% Utilities
2.0% Consumer Manufacturing
1.2% Consumer Staples
0.3% Multi-Industry Companies
3.6% Short-Term
COUNTRY BREAKDOWN
56.0% United States
9.6% Japan
7.4% United Kingdom
3.4% Germany
3.0% France [PIE CHART OMITTED]
2.2% Taiwan
2.0% Canada
16.4% Other
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. "Other"
country weightings represent less than 2% weightings in Australia, Austria,
Brazil, Finland, Greece, Hong Kong, India, Ireland, Israel, Italy, Netherlands,
Norway, Russia, Singapore, South Africa, Spain, Sweden and Switzerland.
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4 o ALLIANCEBERNSTEIN GLOBAL SMALL CAP FUND
Investment Results
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INVESTMENT RESULTS
AVERAGE ANNUAL RETURNS AS OF JULY 31, 2003
Class A Shares
- --------------------------------------------------------------------------------
Without Sales Charge With Sales Charge
1 Year 8.43% 3.81%
5 Years -6.06% -6.88%
10 Years 3.33% 2.88%
Class B Shares
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Without Sales Charge With Sales Charge
1 Year 7.69% 3.69%
5 Years -6.79% -6.79%
10 Years(a) 2.71% 2.71%
Class C Shares
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Without Sales Charge With Sales Charge
1 Year 7.48% 6.48%
5 Years -6.80% -6.80%
10 Years 2.56% 2.56%
SEC 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 -12.50% -12.84% -10.10%
5 Years -8.75% -8.65% -8.67%
10 Years 2.34% 2.18%(a) 2.02%
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 can invest in foreign securities which may magnify fluctuations due to
changes in foreign exchange rates and the possibility of substantial volatility
due to political and economic uncertainties in foreign countries. Investing in
the stocks of small companies may provide the potential for greater returns, but
is generally more volatile and the loss of principal may be greater, than funds
investing in stocks of larger, more established companies. The Fund pursues an
aggressive investment strategy and an investment in the Fund is risky.
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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ALLIANCEBERNSTEIN GLOBAL SMALL CAP FUND o 5
Ten Largest Holdings
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TEN LARGEST HOLDINGS
July 31, 2003
Percent of
Company Country U.S. $ Value Net Assets
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Altana AG Germany $ 987,890 1.4%
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ABSA Group, Ltd. South Africa 934,481 1.4
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CDW Corp. United States 809,172 1.2
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MediaTek, Inc. Taiwan 801,426 1.2
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L-3 Communications
Holdings, Inc. United States 780,372 1.1
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Porsche AG pfd Germany 762,905 1.1
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Getty Images, Inc. United States 758,787 1.1
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MEMC Electronic
Materials, Inc. United States 755,760 1.1
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MSC Industrial Direct
Co., Inc. Cl.A United States 745,550 1.1
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Capita Group Plc United Kingdom 743,168 1.1
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$ 8,079,511 11.8%
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6 o ALLIANCEBERNSTEIN GLOBAL SMALL CAP FUND
Portfolio of Investments
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PORTFOLIO OF INVESTMENTS
July 31, 2003
Company Shares U.S. $ Value
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COMMON & PREFERRED STOCKS-96.9%
United States Investments-52.7%
Consumer Services-12.9%
Advertising-1.1%
Getty Images, Inc.(a).......................... 19,900 $ 758,787
-------------
Broadcasting & Cable-2.3%
Citadel Broadcasting Co.(a).................... 20,800 395,200
Radio One, Inc. Cl.D(a)........................ 36,600 607,194
ValueVision International, Inc. Cl.A(a)........ 32,100 556,935
-------------
1,559,329
-------------
Entertainment & Leisure-0.1%
Regal Entertainment Group Cl.A ................ 5,200 95,940
-------------
Gaming-0.9%
Station Casinos, Inc.(a)....................... 21,200 614,800
-------------
Retail - General Merchandise-2.6%
MSC Industrial Direct Co., Inc. Cl.A .......... 37,000 745,550
PETsMART, Inc.(a).............................. 20,900 414,447
Williams-Sonoma, Inc.(a)....................... 20,600 581,950
-------------
1,741,947
-------------
Toys-0.2%
Marvel Enterprises, Inc.(a).................... 6,500 127,400
-------------
Miscellaneous-5.7%
Career Education Corp.(a)...................... 8,800 733,920
CDW Corp.(a)................................... 16,900 809,172
Dycom Industries, Inc.(a)...................... 8,100 137,781
Iron Mountain, Inc.(a)......................... 19,550 715,530
Manpower, Inc. ................................ 16,400 624,840
ScanSource, Inc.(a)............................ 14,600 489,976
West Corp.(a).................................. 16,400 398,848
-------------
3,910,067
-------------
8,808,270
-------------
Technology-11.9%
Communication Equipment-0.8%
National Instruments Corp. .................... 15,200 541,272
-------------
Computer Hardware/Storage-0.6%
Avocent Corp.(a)............................... 15,900 425,802
-------------
Computer Peripherals-0.4%
Imation Corp. ................................. 8,400 299,796
-------------
Networking Software-0.0%
NETGEAR, Inc.(a)............................... 1,500 26,506
-------------
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ALLIANCEBERNSTEIN GLOBAL SMALL CAP FUND o 7
Portfolio of Investments
- --------------------------------------------------------------------------------
Company Shares U.S. $ Value
- --------------------------------------------------------------------------------
Semi-Conductor Capital Equipment-1.1%
MEMC Electronic Materials, Inc.(a)............. 67,000 $ 755,760
-------------
Semi-Conductor Components-2.5%
ATMI, Inc.(a).................................. 19,100 492,207
Integrated Circuit Systems, Inc.(a)............ 23,100 694,155
OmniVision Technologies, Inc.(a)............... 12,000 487,080
-------------
1,673,442
-------------
Software-4.1%
Hyperion Solutions Corp.(a).................... 16,700 456,411
Informatica Corp.(a)........................... 66,200 485,246
InterVideo, Inc.(a)............................ 1,000 20,380
Macrovision Corp.(a)........................... 27,900 655,650
Mercury Interactive Corp.(a)................... 15,600 614,016
NetScreen Technologies, Inc.(a)................ 25,800 558,054
-------------
2,789,757
-------------
Miscellaneous-2.4%
Amphenol Corp. Cl.A(a)......................... 12,400 669,600
Exar Corp.(a).................................. 27,200 388,960
Tektronix, Inc.(a)............................. 28,600 604,318
-------------
1,662,878
-------------
8,175,213
-------------
Health Care-10.1%
Biotechnology-2.6%
Abgenix, Inc.(a)............................... 16,800 213,192
Celgene Corp.(a)............................... 9,700 355,117
Neurocrine Biosciences, Inc.(a)................ 5,800 311,344
Protein Design Labs, Inc.(a)................... 19,300 246,268
Telik, Inc.(a)................................. 17,500 334,075
Trimeris, Inc.(a).............................. 6,800 301,580
-------------
1,761,576
-------------
Drugs-1.8%
Martek Biosciences Corp.(a).................... 13,500 655,034
Pharmaceutical Resources, Inc.(a).............. 10,000 566,000
-------------
1,221,034
-------------
Medical Products-2.7%
Gen-Probe, Inc.(a)............................. 10,000 550,000
Henry Schein, Inc.(a).......................... 7,000 409,080
Integra LifeSciences Holdings(a)............... 20,000 500,200
VISX, Inc.(a).................................. 17,400 405,072
-------------
1,864,352
-------------
Medical Services-1.6%
Coventry Health Care, Inc.(a).................. 6,800 366,316
Mid Atlantic Medical Services, Inc.(a)......... 6,200 337,156
Omnicare, Inc. ................................ 12,900 438,213
-------------
1,141,685
-------------
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8 o ALLIANCEBERNSTEIN GLOBAL SMALL CAP FUND
Portfolio of Investments
- --------------------------------------------------------------------------------
Company Shares U.S. $ Value
- --------------------------------------------------------------------------------
Miscellaneous-1.4%
AMERIGROUP Corp.(a)............................ 7,700 $ 317,394
Stericycle, Inc.(a)............................ 14,400 649,872
-------------
967,266
-------------
6,955,913
-------------
Finance-6.0%
Banking - Money Center-0.9%
New York Community Bancorp, Inc. .............. 21,400 639,860
-------------
Banking - Regional-0.4%
American Capital Strategies, Ltd. ............. 10,200 286,926
-------------
Brokerage & Money Management-3.4%
A.G. Edwards, Inc. ............................ 16,100 595,539
Affiliated Managers Group, Inc.(a)............. 9,300 608,406
BlackRock, Inc. Cl.A(a)........................ 9,000 406,530
Southwest Bancorporation of Texas, Inc.(a)..... 19,700 699,350
-------------
2,309,825
-------------
Insurance-0.6%
Scottish Annuity & Life Holdings, Ltd. ........ 7,400 169,090
StanCorp Financial Group, Inc. ................ 4,600 256,680
-------------
425,770
-------------
Miscellaneous-0.7%
Investors Financial Services Corp. ............ 14,200 452,554
-------------
4,114,935
-------------
Capital Goods-5.9%
Electrical Equipment-2.5%
Alliant Techsystems, Inc.(a)................... 10,550 579,195
L-3 Communications Holdings, Inc.(a)........... 15,900 780,372
United Defense Industries, Inc.(a)............. 15,200 385,928
-------------
1,745,495
-------------
Machinery-2.1%
Cooper Cameron Corp.(a)........................ 14,400 688,464
Navistar International Corp.(a)................ 19,000 741,380
-------------
1,429,844
-------------
Pollution Control-0.4%
Waste Connections, Inc.(a)..................... 8,100 274,995
-------------
Miscellaneous-0.9%
IDEX Corp. .................................... 16,900 625,300
-------------
4,075,634
-------------
Energy-2.4%
Domestic Producers-1.9%
Newfield Exploration Co.(a).................... 20,100 726,213
Noble Energy, Inc. ............................ 6,700 244,550
Pogo Producing Co. ............................ 7,600 321,480
-------------
1,292,243
-------------
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ALLIANCEBERNSTEIN GLOBAL SMALL CAP FUND o 9
Portfolio of Investments
- --------------------------------------------------------------------------------
Company Shares U.S. $ Value
- --------------------------------------------------------------------------------
Oil Service-0.5%
Rowan Cos., Inc.(a)............................ 16,000 $ 351,200
-------------
1,643,443
-------------
Basic Industry-1.8%
Chemicals-0.9%
Georgia Gulf Corp. ............................ 27,100 620,048
-------------
Paper & Forest Products-0.9%
Pactiv Corp.(a)................................ 29,600 584,600
-------------
1,204,648
-------------
Transportation-1.7%
Air Freight-1.2%
C.H. Robinson Worldwide, Inc. ................. 10,700 395,044
Expeditors International of Washington, Inc. .. 13,100 444,221
-------------
839,265
-------------
Trucking-0.5%
Werner Enterprises, Inc. ...................... 13,500 321,840
-------------
1,161,105
-------------
Total United States Investments
(cost $30,618,610).......................... 36,139,161
-------------
Foreign Investments-44.2%
Australia-0.2%
WMC Resources, Ltd.(a)......................... 60,000 144,466
-------------
Austria-1.5%
Schoeller-Bleckmann Oilfield Equipment AG ..... 58,000 573,281
Telekom Austria AG(a).......................... 39,600 433,668
-------------
1,006,949
-------------
Brazil-0.5%
Aracruz Celulose, SA (ADR)..................... 7,700 192,808
Companhia Vale do Rio Doce (ADR)............... 5,350 186,341
-------------
379,149
-------------
Canada-2.0%
Angiotech Pharmaceuticals, Inc.(a)............. 5,500 243,375
Axcan Pharma, Inc.(a).......................... 39,200 523,712
Cognos, Inc.(a)................................ 21,700 587,202
-------------
1,354,289
-------------
Finland-0.0%
TietoEnator Oyj................................ 2,143 40,679
-------------
France-3.0%
Dassault Systemes, SA.......................... 20,000 689,645
Societe Television Francaise 1................. 21,650 685,504
Veolia Environnement........................... 35,080 665,892
-------------
2,041,041
-------------
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10 o ALLIANCEBERNSTEIN GLOBAL SMALL CAP FUND
Portfolio of Investments
- --------------------------------------------------------------------------------
Company Shares U.S. $ Value
- --------------------------------------------------------------------------------
Germany-3.4%
Altana AG...................................... 15,922 $ 987,890
Fraport AG(a).................................. 24,329 617,575
Porsche AG pfd................................. 1,866 762,905
-------------
2,368,370
-------------
Greece-1.0%
Greek Organization of Football Prognostics..... 57,550 678,722
-------------
Hong Kong-1.7%
China Resources Enterprise, Ltd. .............. 204,000 184,402
Comba Telecom Systems Holdings, Ltd.(a)........ 240,000 73,084
Li & Fung, Ltd. ............................... 218,000 308,863
SINA Corp.(a).................................. 11,600 403,216
Sun Hung Kai Properties, Ltd. ................. 33,000 195,904
-------------
1,165,469
-------------
India-1.5%
Bharti Tele-Ventures, Ltd.(a).................. 480,000 526,334
Dr. Reddy's Laboratories, Ltd. (ADR)........... 21,000 525,840
-------------
1,052,174
-------------
Ireland-1.5%
Anglo Irish Bank Corp. Plc .................... 44,318 407,184
CRH Plc ....................................... 34,460 647,156
-------------
1,054,340
-------------
Israel-0.5%
Bank Hapoalim, Ltd.(a)......................... 168,600 333,411
-------------
Italy-1.0%
Tod's SpA...................................... 20,000 700,877
-------------
Japan-9.7%
Ajinomoto Co., Inc. ........................... 9,000 86,245
Bank of Fukuoka, Ltd. ......................... 129,000 456,334
Daikin Industries, Ltd. ....................... 21,000 382,769
Fujisawa Pharmaceutical Co., Ltd. ............. 22,000 426,572
Funai Electric Co., Ltd. ...................... 5,300 616,591
Hoya Corp. .................................... 9,700 696,741
ITO EN, Ltd. .................................. 12,700 428,167
JSR Corp. ..................................... 29,000 393,971
Kose Corp. .................................... 9,900 291,841
Matsumotokiyoshi Co., Ltd. .................... 6,700 283,745
NEC Electronics Corp.(a)....................... 1,000 47,664
Nitto Denko Corp. ............................. 12,500 455,678
Sanken Electric Co., Ltd. ..................... 25,000 236,247
Secom Co., Ltd. ............................... 10,500 301,682
Shionogi & Co., Ltd. .......................... 33,000 432,967
SMC Corp. ..................................... 4,800 450,405
The Sumitomo Trust and Banking Co., Ltd. ...... 92,000 333,851
Tokyo Electron, Ltd. .......................... 5,300 311,156
-------------
6,632,626
-------------
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ALLIANCEBERNSTEIN GLOBAL SMALL CAP FUND o 11
Portfolio of Investments
- --------------------------------------------------------------------------------
Company Shares U.S. $ Value
- --------------------------------------------------------------------------------
Netherlands-1.1%
IHC Caland NV.................................. 14,180 $ 730,252
-------------
Norway-0.9%
Gjensidige NOR ASA............................. 10,800 389,881
Royal Caribbean Cruises, Ltd. ................. 8,000 231,150
-------------
621,031
-------------
Russia-0.3%
Mobile Telesystems (GDR)(a).................... 3,300 181,434
-------------
Singapore-0.1%
Singapore Post, Ltd.(a)........................ 192,000 76,953
-------------
South Africa-1.4%
ABSA Group, Ltd. .............................. 187,600 934,481
-------------
Spain-0.5%
Acerinox, SA................................... 7,700 322,335
-------------
Sweden-1.6%
Eniro AB....................................... 70,245 572,633
Sandvik AB..................................... 18,300 508,773
-------------
1,081,406
-------------
Switzerland-1.2%
Converium Holding AG........................... 12,400 589,057
Unique Zurich Airport(a)....................... 8,430 232,607
-------------
821,664
-------------
Taiwan-2.2%
Compal Electronics, Inc. ...................... 302,450 431,317
Delta Electronics, Inc. ....................... 186,900 257,831
MediaTek, Inc. ................................ 67,000 801,426
-------------
1,490,574
-------------
United Kingdom-7.4%
Capita Group Plc .............................. 188,500 743,168
easyJet Plc(a) ................................ 104,275 388,036
Friends Provident Plc ......................... 306,000 675,840
Hilton Group Plc .............................. 231,601 731,409
LogicaCMG Plc ................................. 111,000 298,297
National Grid Transco Plc ..................... 86,848 539,457
NDS Group Plc (ADR)(a)......................... 41,400 598,230
The Sage Group Plc ............................ 101,000 299,460
Wetherspoon (J.D.) Plc ........................ 101,742 368,377
WPP Group Plc ................................ 51,400 456,575
-------------
5,098,849
-------------
Total Foreign Investments
(cost $28,210,989).......................... 30,311,541
-------------
Total Common & Preferred Stocks
(cost $58,829,599).......................... 66,450,702
-------------
- --------------------------------------------------------------------------------
12 o ALLIANCEBERNSTEIN GLOBAL SMALL CAP FUND
Portfolio of Investments
- --------------------------------------------------------------------------------
Principal
Amount
(000) U.S. $ Value
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENT-3.6%
Time Deposit-3.6%
State Street Euro Dollar
0.50%, 8/01/03
(cost $2,452,000)........................... $2,452 $ 2,452,000
-------------
Total Investments*-100.5%
(cost $61,281,599).......................... 68,902,702
Other assets less liabilities-(0.5%)........... (350,331)
-------------
Net Assets-100%................................ $ 68,552,371
=============
* 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
5.3% of net assets, were as follows as of July 31, 2003:
Current U.S. $
Yield Shares Value
============== =============== =============
UBS Private Money Market
Fund LLC 1.02% 3,666,050 $3,666,050
(a) Non-income producing security.
Glossary:
ADR - American Depositary Receipt
GDR - Global Depositary Receipt
See notes to financial statements.
- --------------------------------------------------------------------------------
ALLIANCEBERNSTEIN GLOBAL SMALL CAP FUND o 13
Statement of Assets & Liabilities
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS & LIABILITIES
July 31, 2003
Assets
Investments in securities, at value (cost $61,281,599) .... $ 68,902,702(a)
Cash ...................................................... 931
Foreign cash, at value (cost $152,575) .................... 149,693
Collateral held for securities loaned ..................... 3,666,050
Receivable for investment securities sold ................. 872,827
Receivable for capital stock sold ......................... 65,982
Dividends and interest receivable ......................... 43,082
-------------
Total assets .............................................. 73,701,267
-------------
Liabilities
Payable for collateral received on securities loaned ...... 3,666,050
Payable for investment securities purchased ............... 970,283
Payable for capital stock redeemed ........................ 170,717
Management fee payable .................................... 57,756
Distribution fee payable .................................. 29,864
Accrued expenses and other liabilities .................... 254,226
-------------
Total liabilities ......................................... 5,148,896
-------------
Net Assets ................................................ $ 68,552,371
=============
Composition of Net Assets
Capital stock, at par ..................................... $ 105,531
Additional paid-in capital ................................ 137,225,032
Accumulated net investment loss ........................... (86,212)
Accumulated net realized loss on investment and
foreign currency transactions .......................... (76,309,777)
Net unrealized appreciation of investments and
foreign currency denominated assets and liabilities .... 7,617,797
-------------
$ 68,552,371
=============
Calculation of Maximum Offering Price
Class A Shares
Net asset value and redemption price per share
($46,971,895 / 6,888,248 shares of capital stock
issued and outstanding) ................................ $6.82
Sales charge--4.25% of public offering price .............. .30
-----
Maximum offering price .................................... $7.12
=====
Class B Shares
Net asset value and offering price per share
($16,894,411 / 2,875,021 shares of capital stock
issued and outstanding) ................................ $5.88
=====
Class C Shares
Net asset value and offering price per share
($4,485,441 / 760,974 shares of capital stock
issued and outstanding) ................................ $5.89
=====
Advisor Class Shares
Net asset value, redemption and offering price per share
($200,624 / 28,860 shares of capital stock
issued and outstanding) ................................ $6.95
=====
(a) Includes securities on loan with a value of $3,498,082 (see Note E).
See notes to financial statements.
- --------------------------------------------------------------------------------
14 o ALLIANCEBERNSTEIN GLOBAL SMALL CAP FUND
Statement of Operations
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
Year Ended July 31, 2003
Investment Income
Dividends (net of foreign taxes withheld
of $40,163) .................................. $ 734,511
Interest ........................................ 34,772 $ 769,283
------------
Expenses
Management fee .................................. 628,151
Distribution fee--Class A ....................... 126,827
Distribution fee--Class B ....................... 164,395
Distribution fee--Class C ....................... 39,022
Transfer agency ................................. 558,967
Custodian ....................................... 277,560
Administrative .................................. 137,100
Audit and legal ................................. 122,020
Printing ........................................ 105,773
Registration fees ............................... 64,567
Directors' fees ................................. 20,000
Miscellaneous ................................... 11,204
------------
Total expenses .................................. 2,255,586
Less: expense offset arrangement
(see Note B) ................................. (694)
------------
Net expenses .................................... 2,254,892
-----------
Net investment loss ............................. (1,485,609)
-----------
Realized and Unrealized Gain (Loss) on
Investment and Foreign Currency
Transactions
Net realized loss on:
Investment transactions ...................... (19,674,793)
Foreign currency transactions ................ (136,186)
Net change in unrealized
appreciation/depreciation of:
Investments .................................. 25,864,265
Foreign currency denominated assets
and liabilities ............................ (3,646)
-----------
Net gain on investment and foreign
currency transactions ........................ 6,049,640
-----------
Net Increase in Net Assets from
Operations ................................... $ 4,564,031
===========
See notes to financial statements.
- --------------------------------------------------------------------------------
ALLIANCEBERNSTEIN GLOBAL SMALL CAP FUND o 15
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
Statement of Changes in Net Assets
Year Ended Year Ended
July 31, July 31,
2003 2002
============ =============
Increase (Decrease) in Net Assets
from Operations
Net investment loss ....................... $ (1,485,609) $ (2,194,631)
Net realized loss on investment and
foreign currency transactions .......... (19,810,979) (39,198,256)
Net change in unrealized
appreciation/depreciation of
investments and foreign currency
denominated assets and liabilities ..... 25,860,619 10,723,875
------------ -------------
Net increase (decrease) in net assets
from operations ........................ 4,564,031 (30,669,012)
Capital Stock Transactions
Net decrease .............................. (7,833,073) (17,054,949)
------------ -------------
Total decrease ............................ (3,269,042) (47,723,961)
Net Assets
Beginning of period ....................... 71,821,413 119,545,374
------------ -------------
End of period ............................. $ 68,552,371 $ 71,821,413
============ =============
See notes to financial statements.
- --------------------------------------------------------------------------------
16 o ALLIANCEBERNSTEIN GLOBAL SMALL CAP FUND
Notes to Financial Statements
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
July 31, 2003
NOTE A
Significant Accounting Policies
AllianceBernstein Global Small Cap Fund, Inc. (the "Fund"), formerly Alliance
Global Small Cap Fund, Inc., 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 will automatically convert to Class A shares eight years after
the end of the calendar month of purchase. Class C shares are subject to a
contingent deferred sales charge of 1% on redemptions made within the first year
after purchase. Advisor Class shares are sold without an initial or contingent
deferred sales charge 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 infomation about some of the items
discussed in these Notes to Financial Statements is contained in the Fund's
Statement of Additional Information, which is available upon request. The
following is a summary of significant accounting policies followed by the Fund.
1. Security Valuation
In accordance with Pricing Policies adopted by the Board of Directors of the
Fund (the "Pricing Policies") and applicable law, portfolio securities are
valued at current market value or at fair value. The Board of Directors has
delegated to the Adviser, subject to the Board's continuing oversight, certain
responsibilities with respect to the implementation of the Pricing Policies.
Pursuant to the Pricing Policies, securities for which market quotations are
readily available are valued at their current market value. In general, the
market value of these securities is determined as follows:
Securities listed on a national securities exchange or on a foreign securities
exchange are valued at the last sale price at the close of the exchange or
foreign securities exchange. If there has been no sale on such day, the
securities are valued at the mean of the closing bid and asked prices on such.
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
- --------------------------------------------------------------------------------
ALLIANCEBERNSTEIN GLOBAL SMALL CAP FUND o 17
Notes to Financial Statements
- --------------------------------------------------------------------------------
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 of other comparable sources; U.S
Goverment 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 fiar 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
reaily 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
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.
- --------------------------------------------------------------------------------
18 o ALLIANCEBERNSTEIN GLOBAL SMALL CAP FUND
Notes to Financial Statements
- --------------------------------------------------------------------------------
3. Taxes
It is the Fund's policy to meet the requirements of the Internal Revenue Code
applicable to regulated investment companies and to distribute all of its
investment company taxable income and net realized gains, if any, to
shareholders. Therefore, no provisions for federal income or excise taxes are
required.
4. Investment Income and Investment Transactions
Dividend income is recorded on the ex-dividend date. Interest income is accrued
daily. Investment transactions are accounted for on the trade 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.
NOTE B
Advisory Fees and Other Transactions with Affiliates
Under the terms of an investment advisory agreement, the Fund pays Alliance
Capital Management L.P. (the "Adviser") a management fee at an annual rate of 1%
of the average daily net assets of the Fund. Such fee is accrued daily and paid
monthly.
Pursuant to the advisory agreement, the Fund paid $137,100 to the Adviser
representing the cost of certain legal and accounting services provided to the
Fund by the Adviser for the year ended July 31, 2003.
The Fund compensates Alliance Global Investor Services, Inc. (AGIS), a
wholly-owned subsidiary of the Adviser, in accordance with a Services Agreement
for providing personnel and facilities to perform transfer agency services for
the Fund. Such compensation amounted to $379,129 for the year ended July 31,
2003.
- --------------------------------------------------------------------------------
ALLIANCEBERNSTEIN GLOBAL SMALL CAP FUND o 19
Notes to Financial Statements
- --------------------------------------------------------------------------------
For the year ended July 31, 2003, the Fund's expenses were reduced by $694 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 $2,071 from the
sales of Class A shares and received $3,233, $24,149 and $233 in contingent
deferred sales charges imposed upon redemptions by shareholders of Class A,
Class B and Class C shares, respectively, for the year ended July 31, 2003.
Brokerage commissions paid on investment transactions for the year ended July
31, 2003, amounted to $274,941, of which $115 was paid to Sanford C. Bernstein &
Co. LLC, an affiliate of the Adviser.
NOTE C
Distribution Services Agreement
The Fund has adopted a Distribution Services Agreement (the "Agreement")
pursuant to Rule 12b-1 under the Investment Company Act of 1940. Under the
Agreement, the Fund pays distribution and servicing fees to the Distributor at
an annual rate of up to .30 of 1% of the Fund's average daily net assets
attributable to Class A shares and 1% of the Fund's 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 $3,873,984 and
$1,122,224 for Class B and Class C shares, respectively; such costs may be
recovered from the Fund in future periods so long as the Agreement is in effect.
In accordance with the Agreement, there is no provision for recovery of
unreimbursed distribution costs incurred by the Distributor beyond the current
fiscal year for Class A shares. The Agreement also provides that the Adviser may
use its own resources to finance the distribution of the Fund's shares.
NOTE D
Investment Transactions
Purchases and sales of investment securities (excluding short-term investments)
for the year ended July 31, 2003 were as follows:
Purchases Sales
============= =============
Investment securities (excluding
U.S. government securities)............... $ 64,738,183 $ 75,658,445
U.S. government securities................... -0- -0-
- --------------------------------------------------------------------------------
20 o ALLIANCEBERNSTEIN GLOBAL SMALL CAP FUND
Notes to Financial Statements
- --------------------------------------------------------------------------------
At July 31, 2003, the cost of investments for federal income tax purposes, gross
unrealized appreciation and unrealized depreciation (excluding foreign currency
transactions) are as follows:
Cost ................................................... $ 62,292,551
============
Gross unrealized appreciation .......................... $ 10,528,402
Gross unrealized depreciation .......................... (3,918,251)
------------
Net unrealized appreciation ............................ $ 6,610,151
============
Forward Exchange Currency Contracts
The Fund may enter into forward exchange currency contracts in order to hedge
its exposure to changes in foreign currency exchange rates on its foreign
portfolio holdings, to hedge certain firm purchase and sales commitments
denominated in foreign currencies and for investment purposes. A forward
exchange currency contract is a commitment to purchase or sell a foreign
currency on a future date at a negotiated forward rate. The gain or loss arising
from the difference between the original contract and the closing of such
contract would be included in net realized gain or loss on foreign currency
transactions.
Fluctuations in the value of open forward exchange currency contracts are
recorded for financial reporting purposes as net unrealized appreciation or
depreciation by the Fund.
The Fund's custodian will place and maintain cash not available for investment
or other liquid assets in a separate account of the Fund having a value at least
equal to the aggregate amount of the Fund's commitments under forward exchange
currency contracts entered into with respect to position hedges.
Risks may arise from the potential inability of the counterparty to meet the
terms of a contract and from unanticipated movements in the value of a foreign
currency relative to the U.S. dollar. The face or contract amount, in U.S.
dollars, reflects the total exposure the Fund has in that particular currency
contract.
NOTE E
Securities Lending
The Fund has entered into a securities lending agreement with UBS Warburg LLC,
Inc., (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 receives
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
on 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
- --------------------------------------------------------------------------------
ALLIANCEBERNSTEIN GLOBAL SMALL CAP FUND o 21
Notes to Financial Statements
- --------------------------------------------------------------------------------
consists of either cash or U.S. government securities. The Lending Agent invests
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 $3,498,082 and received cash collateral which was invested in a money
market fund valued at $3,666,050 as included in the footnotes to the
accompanying portfolio of investments. For the year ended July 31, 2003, the
Fund earned fee income of $16,988 which is included in interest income in the
accompanying statement of operations.
NOTE F
Capital Stock
There are 12,000,000,000 shares of $.01 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
July 31, 2003 July 31, 2002 July 31, 2003 July 31, 2002
- -------------------------------------------------------------------------------------------------
Class A
Shares sold 3,307,119 5,634,790 $ 19,319,389 $ 43,126,076
- -------------------------------------------------------------------------------------------------
Shares converted
from Class B 113,721 129,401 672,557 999,804
- -------------------------------------------------------------------------------------------------
Shares redeemed (4,062,411) (6,773,088) (23,814,319) (52,052,152)
- -------------------------------------------------------------------------------------------------
Net decrease (641,571) (1,008,897) $ (3,822,373) $ (7,926,272)
=================================================================================================
Class B
Shares sold 376,426 508,534 $ 1,950,858 $ 3,437,793
- -------------------------------------------------------------------------------------------------
Shares converted
to Class A (130,479) (148,461) (672,557) (999,804)
- -------------------------------------------------------------------------------------------------
Shares redeemed (1,005,043) (1,364,510) (5,113,312) (8,986,368)
- -------------------------------------------------------------------------------------------------
Net decrease (759,096) (1,004,437) $ (3,835,011) $ (6,548,379)
=================================================================================================
Class C
Shares sold 623,643 648,960 $ 3,253,675 $ 4,359,452
- -------------------------------------------------------------------------------------------------
Shares redeemed (664,650) (968,854) (3,410,901) (6,467,560)
- -------------------------------------------------------------------------------------------------
Net decrease (41,007) (319,894) $ (157,226) $ (2,108,108)
=================================================================================================
Advisor Class
Shares sold 142,853 3,144 $ 866,210 $ 24,316
- -------------------------------------------------------------------------------------------------
Shares redeemed (145,926) (61,241) (884,673) (496,506)
- -------------------------------------------------------------------------------------------------
Net decrease (3,073) (58,097) $ (18,463) $ (472,190)
=================================================================================================
- --------------------------------------------------------------------------------
22 o ALLIANCEBERNSTEIN GLOBAL SMALL CAP FUND
Notes to Financial Statements
- --------------------------------------------------------------------------------
NOTE G
Joint Credit Facility
A number of open-end mutual funds managed by the Adviser, including the Fund,
participate in a $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 year ended July 31, 2003.
NOTE H
Concentration of Risk
Investing in securities of foreign companies involves special risks which
include revaluation of currencies and the possibility of future political and
economic developments which could adversely affect the value of such securities.
Moreover, securities of many foreign companies and their markets may be less
liquid and their prices more volatile than those of comparable United States
companies.
NOTE I
Components of Accumulated Earnings (Deficit)
As of July 31, 2003, the components of accumulated earnings/(deficit) on a tax
basis were as follows:
Accumulated capital and other losses ................... $(75,385,037)(a)
Unrealized appreciation/(depreciation) ................. 6,606,845(b)
------------
Total accumulated earnings/(deficit) ................... $(68,778,192)
============
(a) On July 31, 2003, the Fund had a net capital loss carryforward for federal
income tax purposes of $65,365,531, of which $34,121,716 expires in the
year 2010 and $31,243,815 expires in the year 2011. To the extent future
capital gains are offset by capital loss carryforwards, such gains will
not be distributed. Net capital losses incurred after October 31, and
within the taxable year are deemed to arise on the first business day of
the Fund's next taxable year. For the year ended July 31, 2003, the Fund
deferred to August 1, 2003 post October capital losses of $9,933,294 and
post October currency losses of $86,212.
(b) The difference between book-basis and tax-basis unrealized
appreciation/(depreciation) are attributable primarily to the tax deferral
of losses on wash sales.
During the current fiscal year, permanent differences, primarily due to net
investment loss and the tax treatment of foreign currency gains and losses,
resulted in a net decrease in accumulated net investment loss, a net decrease in
accumulated net realized loss on investment and foreign currency transactions
and a decrease in additional paid-in capital. This reclassification had no
effect on net assets.
- --------------------------------------------------------------------------------
ALLIANCEBERNSTEIN GLOBAL SMALL CAP FUND o 23
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 connection
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
concerning 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, 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
- --------------------------------------------------------------------------------
24 o ALLIANCEBERNSTEIN GLOBAL SMALL CAP FUND
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.
- --------------------------------------------------------------------------------
ALLIANCEBERNSTEIN GLOBAL SMALL CAP FUND o 25
Financial Highlights
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
---------------------------------------------------------------------------------
Class A
---------------------------------------------------------------------------------
Year Ended July 31,
---------------------------------------------------------------------------------
2003 2002 2001 2000 1999
---------------------------------------------------------------------------------
Net asset value,
beginning of period ........ $ 6.29 $ 8.74 $ 15.13 $ 11.66 $ 12.14
---------------------------------------------------------------------------------
Income From Investment
Operations
Net investment loss(a) ........ (.12) (.15) (.15) (.16) (.08)
Net realized and unrealized
gain (loss) on investment
and foreign currency
transactions ............... .65 (2.30) (4.51) 3.83 .76
---------------------------------------------------------------------------------
Net increase (decrease) in
net asset value from
operations ................. .53 (2.45) (4.66) 3.67 .68
---------------------------------------------------------------------------------
Less: Distributions
Distributions from net realized
gain on investment
transactions ............... -0- -0- -0- (.20) (1.16)
Distributions in excess of net
realized gain on investment
transactions ............... -0- -0- (1.73) -0- -0-
---------------------------------------------------------------------------------
Total distributions ........... -0- -0- (1.73) (.20) (1.16)
---------------------------------------------------------------------------------
Net asset value, end of period $ 6.82 $ 6.29 $ 8.74 $ 15.13 $ 11.66
=================================================================================
Total Return
Total investment return based
on net asset value(b) ...... 8.43% (28.03)% (33.85)% 31.81% 7.51%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted) ............ $ 46,972 $ 47,367 $ 74,639 $ 120,687 $ 77,164
Ratio to average net assets of:
Expenses ................... 3.33% 2.62% 2.14%(c) 2.02%(c) 2.37%(c)
Net investment loss ........ (2.09)% (1.99)% (1.33)% (1.07)% (.79)%
Portfolio turnover rate ....... 105% 84% 121% 133% 120%
See footnote summary on page 29.
- --------------------------------------------------------------------------------
26 o ALLIANCEBERNSTEIN GLOBAL SMALL CAP FUND
Financial Highlights
- --------------------------------------------------------------------------------
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
----------------------------------------------------------------------------
Class B
----------------------------------------------------------------------------
Year Ended July 31,
----------------------------------------------------------------------------
2003 2002 2001 2000 1999
----------------------------------------------------------------------------
Net asset value,
beginning of period ........ $ 5.46 $ 7.65 $ 13.59 $ 10.57 $ 11.20
----------------------------------------------------------------------------
Income From Investment
Operations
Net investment loss(a) ........ (.15) (.19) (.21) (.24) (.15)
Net realized and unrealized
gain (loss) on investment
and foreign currency
transactions ............... .57 (2.00) (4.00) 3.46 .68
----------------------------------------------------------------------------
Net increase (decrease) in
net asset value from
operations ................. .42 (2.19) (4.21) 3.22 .53
----------------------------------------------------------------------------
Less: Distributions
Distributions from net realized
gain on investment
transactions ............... -0- -0- -0- (.20) (1.16)
Distributions in excess of net
realized gain on investment
transactions ............... -0- -0- (1.73) -0- -0-
----------------------------------------------------------------------------
Total distributions ........... -0- -0- (1.73) (.20) (1.16)
----------------------------------------------------------------------------
Net asset value, end of period $ 5.88 $ 5.46 $ 7.65 $ 13.59 $ 10.57
============================================================================
Total Return
Total investment return based
on net asset value(b) ...... 7.69% (28.63)% (34.44)% 30.82% 6.74%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted) ............ $ 16,894 $ 19,858 $ 35,500 $ 65,097 $ 30,205
Ratio to average net assets of:
Expenses ................... 4.16% 3.42% 2.90%(c) 2.76%(c) 3.14%(c)
Net investment loss ........ (2.96)% (2.80)% (2.10)% (1.82)% (1.59)%
Portfolio turnover rate ....... 105% 84% 121% 133% 120%
See footnote summary on page 29.
- --------------------------------------------------------------------------------
ALLIANCEBERNSTEIN GLOBAL SMALL CAP FUND o 27
Financial Highlights
- --------------------------------------------------------------------------------
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
Class C
----------------------------------------------------------------------------
Year Ended July 31,
----------------------------------------------------------------------------
2003 2002 2001 2000 1999
----------------------------------------------------------------------------
Net asset value,
beginning of period ........ $ 5.48 $ 7.67 $ 13.62 $ 10.59 $ 11.22
----------------------------------------------------------------------------
Income From Investment
Operations
Net investment loss(a) ........ (.15) (.19) (.21) (.24) (.16)
Net realized and unrealized
gain (loss) on investment
and foreign currency
transactions ............... .56 (2.00) (4.01) 3.47 .69
----------------------------------------------------------------------------
Net increase (decrease) in
net asset value from
operations ................. .41 (2.19) (4.22) 3.23 .53
----------------------------------------------------------------------------
Less: Distributions
Distributions from net realized
gain on investment
transactions ............... -0- -0- -0- (.20) (1.16)
Distributions in excess of net
realized gain on investment
transactions ............... -0- -0- (1.73) -0- -0-
----------------------------------------------------------------------------
Total distributions ........... -0- -0- (1.73) (.20) (1.16)
----------------------------------------------------------------------------
Net asset value, end of period $ 5.89 $ 5.48 $ 7.67 $ 13.62 $ 10.59
============================================================================
Total Return
Total investment return based
on net asset value(b) ...... 7.48% (28.55)% (34.43)% 30.86% 6.72%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted) ............ $ 4,485 $ 4,393 $ 8,609 $ 19,580 $ 7,058
Ratio to average net assets of:
Expenses ................... 4.09% 3.40% 2.89%(c) 2.75%(c) 3.15%(c)
Net investment loss ........ (2.86)% (2.78)% (2.12)% (1.80)% (1.61)%
Portfolio turnover rate ....... 105% 84% 121% 133% 120%
See footnote summary on page 29.
- --------------------------------------------------------------------------------
28 o ALLIANCEBERNSTEIN GLOBAL SMALL CAP FUND
Financial Highlights
- --------------------------------------------------------------------------------
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
------------------------------------------------------------------
Advisor Class
------------------------------------------------------------------
Year Ended July 31,
------------------------------------------------------------------
2003 2002 2001 2000 1999
------------------------------------------------------------------
Net asset value,
beginning of period ........ $ 6.39 $ 8.86 $ 15.28 $ 11.74 $ 12.20
------------------------------------------------------------------
Income From Investment
Operations
Net investment loss(a) ........ (.13) (.13) (.11) (.12) (.07)
Net realized and unrealized
gain (loss) on investment
and foreign currency
transactions ............... .69 (2.34) (4.58) 3.86 .77
------------------------------------------------------------------
Net increase (decrease) in net
asset value from operations .56 (2.47) (4.69) 3.74 .70
------------------------------------------------------------------
Less: Distributions
Distributions from net realized
gain on investment
transactions ............... -0- -0- -0- (.20) (1.16)
Distributions in excess of net
realized gain on investment
transactions ............... -0- -0- (1.73) -0- -0-
------------------------------------------------------------------
Total distributions ........... -0- -0- (1.73) (.20) (1.16)
------------------------------------------------------------------
Net asset value, end of period $ 6.95 $ 6.39 $ 8.86 $ 15.28 $ 11.74
==================================================================
Total Return
Total investment return based
on net asset value(b) ...... 8.76% (27.88)% (33.71)% 32.19% 7.63%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted) ............ $ 201 $ 204 $ 797 $ 707 $ 189
Ratio to average net assets of:
Expenses ................... 3.02% 2.31% 1.83%(c) 1.69%(c) 2.13%(c)
Net investment loss ........ (1.95)% (1.76)% (1.03)% (.76)% (.63)%
Portfolio turnover rate ....... 105% 84% 121% 133% 120%
(a) Based on average shares outstanding.
(b) Total investment return is calculated assuming an initial investment made
at the net asset value at the beginning of the period, reinvestment of all
dividends and distributions at net asset value during the period, and
redemption on the last day of the period. Initial sales 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.
(c) Ratios reflect expenses grossed up for expense offset arrangement with the
Transfer Agent. For the periods shown below, the net expense ratios were
as follows:
Year Ended July 31,
-------------------------------------
2001 2000 1999
-------------------------------------
Class A....................... 2.13% 2.01% 2.33%
Class B....................... 2.89% 2.75% 3.11%
Class C....................... 2.88% 2.74% 3.12%
Advisor Class................. 1.82% 1.68% 2.10%
- --------------------------------------------------------------------------------
ALLIANCEBERNSTEIN GLOBAL SMALL CAP FUND o 29
Report of Ernst & Young LLP, Independent Auditors
- --------------------------------------------------------------------------------
REPORT OF ERNST & YOUNG LLP,
INDEPENDENT AUDITORS
To the Shareholders and Board of Directors of AllianceBernstein Global Small Cap
Fund, Inc.
We have audited the accompanying statement of assets and liabilities of
AllianceBernstein Global Small Cap Fund, Inc., formerly Alliance Global Small
Cap Fund, Inc., (the "Fund") including the portfolio of investments, as of July
31, 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 five years in the period
then ended. These financial statements and financial highlights are the
responsibility of the Fund'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 July 31, 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
AllianceBernstein Global Small Cap Fund, Inc. at July 31, 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 five years in the period then ended, in conformity with accounting
principles generally accepted in the United States.
/s/ Ernst & Young LLP
New York, New York
September 12, 2003, except for Note J, as to which the date is October 9, 2003.
- --------------------------------------------------------------------------------
30 o ALLIANCEBERNSTEIN GLOBAL SMALL CAP FUND
Board of Directors
- --------------------------------------------------------------------------------
BOARD OF DIRECTORS
John D. Carifa, Chairman and President
Ruth Block (1)
David H. Dievler (1)
John H. Dobkin (1)
William H. Foulk, Jr. (1)
Clifford L. Michel (1)
Donald J. Robinson (1)
OFFICERS
Bruce K. Aronow, Vice President
Edward D. Baker, III, Vice President
Thomas J. Bardong, Vice President
Michael Levy, 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
Distributor
AllianceBernstein Investment Research and Management, Inc.
1345 Avenue of the Americas
New York, NY 10105
Legal Counsel
Seward & Kissel LLP
One Battery Park Plaza
New York, NY 10004
Independent Auditors
Ernst & Young LLP
5 Times Square
New York, NY 10036
Transfer Agent
Alliance Global Investor Services, Inc.
P.O. Box 786003
San Antonio, TX 78278-6003
Toll-free (800) 221-5672
(1) Member of the Audit Committee.
- --------------------------------------------------------------------------------
ALLIANCEBERNSTEIN GLOBAL SMALL CAP FUND o 31
Management of the Fund
- --------------------------------------------------------------------------------
MANAGEMENT OF THE FUND
Board of Directors Information
The business and affairs of the Fund are managed under the direction of the
Board of Directors. Certain information concerning the Fund's Directors is set
forth below.
PORTFOLIOS
IN FUND OTHER
NAME, ADDRESS, PRINCIPAL COMPLEX DIRECTORSHIPS
AGE OF DIRECTOR OCCUPATION(S) OVERSEEN BY HELD BY
(YEARS OF SERVICE*) DURING PAST 5 YEARS DIRECTOR DIRECTOR
- -----------------------------------------------------------------------------------------------------
INTERESTED DIRECTOR
John D. Carifa, **, 58 President, Chief Operating 116 None
1345 Avenue of the Officer and a Director of
Americas Alliance Capital Management
New York, NY 10105 Corporation ("ACMC"), with
(11) which he has been associated
with since prior to 1998.
DISINTERESTED DIRECTORS
Ruth Block, #+, 72 Formerly Executive Vice 97 None
P.O. Box 4623 President and Chief Insurance
Stamford, CT 06903 Officer of The Equitable Life
(11) Assurance Society of the United
States; Chairman and Chief Executive
Officer of Evlico, a 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
(22) 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 President 98 None
P.O. Box 12 of Save Venice, Inc. (preservation
Annandale, NY 12504 organization) from 2001-2002, a Senior
(9) Advisor from June 1999-June 2000
and President of Historic Hudson
Valley (historic preservation)
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.
- --------------------------------------------------------------------------------
32 o ALLIANCEBERNSTEIN GLOBAL SMALL CAP FUND
Management of the Fund
- --------------------------------------------------------------------------------
PORTFOLIOS
IN FUND OTHER
NAME, ADDRESS, PRINCIPAL COMPLEX DIRECTORSHIPS
AGE OF DIRECTOR OCCUPATION(S) OVERSEEN BY HELD BY
(YEARS OF SERVICE*) DURING PAST 5 YEARS DIRECTOR DIRECTOR
- -----------------------------------------------------------------------------------------------------
DISINTERESTED DIRECTORS
(continued)
William H. Foulk, Jr., Investment Adviser and 113 None
#+, 71 independent consultant. Formerly
2 Sound View Drive Senior Manager of Barrett
Suite 100 Associates, Inc., a registered
Greenwich, CT 06830 investment adviser, with which
(11) 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, Inc.
15 St. Bernard's Road Cahill Gordon & Reindel since
Gladstone, NJ 07934 February 2001 and a partner of
(20) 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, Senior Counsel of the law firm of 96 None
#+, 69 Orrick, Herrington & Sutcliffe LLP
98 Hell's Peak Road since prior to 1998. Formerly a
Weston, VT 05161 senior partner and a member of
(5) the Executive Committee of that
firm. He was also a member and Chairman
of the Municipal Securities Rulemaking
Board and a Trustee of the Museum of
the City of New York.
* There is no stated term of office for the Fund's directors.
** Mr. Carifa is an "interested director", as defined in the 1940 Act, due to
his position as President and Chief Operating Officer of ACMC, the Fund's
investment adviser.
# Member of the Audit Committee.
+ Member of the Nominating Committee.
- --------------------------------------------------------------------------------
ALLIANCEBERNSTEIN GLOBAL SMALL CAP FUND o 33
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.
Bruce K. Aronow, 37 Vice President Senior Vice President of ACMC
since 1999. Prior thereto, he
was a Vice President at
Invesco since 1998, and a Vice
President at LGT Asset
Management since prior to
1998.
Edward D. Baker, III, 52 Vice President Senior Vice President and
Chief Investment
Officer-Emerging Markets ACMC,
with which he has been
associated since prior to
1998.
Thomas J. Bardong, 58 Vice President Senior Vice President of ACMC,
with which he has been
associated since prior to
1998.
Michael Levy, 33 Vice President Vice President of ACMC, with
which he has been associated
since prior to 1998.
Edmund P. Bergan, Jr., 53 Secretary Senior Vice President and
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
Financial Officer AGIS and 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, 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.
- --------------------------------------------------------------------------------
34 o ALLIANCEBERNSTEIN GLOBAL SMALL CAP FUND
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.
- --------------------------------------------------------------------------------
ALLIANCEBERNSTEIN GLOBAL SMALL CAP FUND o 35
NOTES
- --------------------------------------------------------------------------------
36 o ALLIANCEBERNSTEIN GLOBAL SMALL CAP FUND
NOTES
- --------------------------------------------------------------------------------
ALLIANCEBERNSTEIN GLOBAL SMALL CAP FUND o 37
NOTES
- --------------------------------------------------------------------------------
38 o ALLIANCEBERNSTEIN GLOBAL SMALL CAP FUND
ALLIANCEBERNSTEIN GLOBAL SMALL CAP 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.
GSCAR0703
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 audit committee
financial experts.
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 Global Small Cap 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