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: 811-03131
AllianceBernstein Technology 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 Technology Fund
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Specialty Equity 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 Technology Fund (the "Fund") for the annual reporting period
ended July 31, 2003.
Investment Objective and Policies
This open-end fund emphasizes growth of capital and invests for capital
appreciation, and only incidentally for current income. The Fund invests
primarily in securities of companies expected to benefit from technological
advances and improvements. The Fund normally will have substantially all of its
assets invested in equity securities, but it also invests in debt securities
offering appreciation potential. The Fund may invest in listed and unlisted U.S.
and foreign securities and has the flexibility to invest both in well-known,
established companies and in new, unseasoned companies. The Fund's policy is to
invest in any company and industry and in any type of security with potential
for capital appreciation.
Investment Results
The following table provides performance results for the Fund for the six- and
12-month periods ended July 31, 2003. We have also included performance for the
Fund's benchmark, the Goldman Sachs Technology Index, which is a modified
capitalization-weighted index of over 200 technology stocks. Also included is
the performance of the NASDAQ Composite Index, which measures all NASDAQ
domestic and non-U.S. based common stocks listed on the NASDAQ Stock Market, and
the Lipper Science and Technology Fund Index (the "Lipper Index"), a performance
index of the largest qualifying funds that have a science and technology
investment objective.
INVESTMENT RESULTS*
Periods Ended July 31, 2003
--------------------
Returns
--------------------
6 Months 12 Months
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AllianceBernstein Technology Fund
Class A 24.88% 14.40%
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Class B 24.40% 13.49%
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Class C 24.43% 13.52%
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NASDAQ Composite Index 31.35% 30.62%
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Goldman Sachs Technology Index 29.97% 27.77%
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Lipper Science & Technology Fund Index 29.82% 25.79%
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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 Goldman Sachs Technology Index measures the performance of over 200
U.S.-based technology companies. The unmanaged NASDAQ Composite Index
measures all NASDAQ domestic and non-U.S. based common stocks listed on
the NASDAQ Stock
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ALLIANCEBERNSTEIN TECHNOLOGY FUND o 1
Market. The Index is market-value weighted and includes over 5,000
companies. The unmanaged Lipper Science and Technology Fund Index is an
equally-weighted performance index, adjusted for capital gains
distributions and income dividends, of the largest qualifying funds that
have a science and technology investment objective. (According to Lipper,
this investment objective includes those funds that invest at least 65% of
their equity portfolios in science and technology stocks.) These funds
have generally similar investment objectives to the Fund, although
investment policies for the various funds may differ. All comparative
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 Technology Fund.
Additional investment results appear on page 5.
For the six- and 12-month periods ended July 31, 2003, the Fund underperformed
the Goldman Sachs Technology Index, the NASDAQ Composite Index and the Lipper
Index. While the Fund's focus on quality stocks and risk control has served it
well during the difficult past two years, the Fund's positive absolute return
underperformed the broader indices during the reporting periods, as autumn and
spring rallies favored the lower quality, lower priced names that the Fund
typically does not own. From a sector point of view, the Fund benefited from
large positions in semiconductors, software, communications equipment and the
Internet. While all sectors saw positive absolute performance, the Fund's
relative performance for the period under review was hurt by a low exposure to
computer hardware and a large exposure to computer services.
Market Review and Investment Strategy
During the reporting period, we continued to reduce the Fund's positions in the
computer services area in order to increase the Fund's exposure to unit growth
driven companies in computer hardware, storage and communications equipment.
Within the semiconductor sector, we increased the Fund's positions in companies
exposed to portable computing and wireless communications.
As a diversified technology portfolio, the Fund continued to hold positions in
companies benefiting from several important trends, specifically, the PC upgrade
cycle, the build-out of broad-band networks, the growth of the Internet and the
growing importance of Asia as an end-market.
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2 o ALLIANCEBERNSTEIN TECHNOLOGY FUND
Performance Update
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PERFORMANCE UPDATE
ALLIANCEBERNSTEIN TECHNOLOGY FUND
GROWTH OF A $10,000 INVESTMENT
7/31/93 TO 7/31/03
[THE FOLLOWING TABLE WAS DEPICTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL.]
AllianceBernstein
Technology Fund Class A NASDAQ Composite Index
7/31/93 9575 10000
7/31/94 10849 10248
7/31/95 21445 14208
7/31/96 20115 15334
7/31/97 29672 22617
7/31/98 33468 26570
7/31/99 47941 37441
7/31/00 77721 53455
7/31/01 43065 28766
7/31/02 24898 18849
7/31/03 28482 24621
AllianceBernstein Technology Fund Class A: $28,482
NASDAQ Composite Index: $24,621
This chart illustrates the total value of an assumed $10,000 investment in
AllianceBernstein Technology Fund Class A shares (from 7/31/93 to 7/31/03) as
compared to the performance of an appropriate broad-based index. Returns do not
reflect the deduction of taxes that a shareholder would pay on fund
distributions or the redemption of fund shares. The chart reflects the deduction
of the maximum 4.25% sales charge from the initial $10,000 investment in the
Fund and assumes the reinvestment of dividends and capital gains. Performance
for Class B, Class C and Advisor Class shares will vary from the results shown
above due to differences in expenses charged to these classes. Past performance
is not indicative of future results, and is not representative of future gain or
loss in capital value or dividend income.
The unmanaged NASDAQ Composite Index measures all NASDAQ domestic non-U.S. based
common stocks listed on the NASDAQ Stock Market. The Index is market-value
weighted and includes over 5,000 companies.
When comparing AllianceBernstein Technology Fund to the index shown above, you
should note that no charges or expenses are reflected in the performance of the
index. An investor cannot invest directly in an index and its results are not
indicative of any specific investment, including AllianceBernstein Technology
Fund.
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ALLIANCEBERNSTEIN TECHNOLOGY FUND o 3
Portfolio Summary
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PORTFOLIO SUMMARY
July 31, 2003
INCEPTION DATES PORTFOLIO STATISTICS
Class A Shares Net Assets ($mil): $3,129.9
3/1/82
Class B Shares
5/3/93
Class C Shares
5/3/93
SECTOR BREAKDOWN
Technology
23.5% Computer Software
20.4% Semi-Conductor Components
10.3% Communication Equipment
10.1% Computer Hardware/Storage
9.4% Computer Services [PIE CHART OMITTED]
5.7% Contract Manufacturing
3.8% Semi-Conductor Capital Equipment
3.0% Internet Infrastructure
2.9% Internet Media
0.6% Other
Consumer Services
5.1% Broadcasting & Cable
2.4% Cellular Communications
Capital Goods
1.3% Electric Equipment
1.5% Short-Term
All data as of July 31, 2003. The Fund's sector breakdown is expressed as a
percentage of total investments and may vary over time. "Other" sector
weightings represent less than 1.0% weightings in Computer Peripherals and
Networking Software.
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4 o ALLIANCEBERNSTEIN TECHNOLOGY FUND
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 14.40% 9.53%
5 Years -3.18% -4.01%
10 Years 11.52% 11.03%
Class B Shares
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Without Sales Charge With Sales Charge
1 Year 13.49% 9.49%
5 Years -3.90% -3.90%
10 Years(a) 10.89% 10.89%
Class C Shares
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Without Sales Charge With Sales Charge
1 Year 13.52% 12.52%
5 Years -3.89% -3.89%
10 Years 10.72% 10.72%
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 -9.68% -10.17% -7.35%
5 Years -5.04% -4.93% -4.92%
10 Years 9.86% 9.72%(a) 9.56%
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. Many equity
stocks, and technology stocks in particular, have experienced significant gains
in recent years. There is no assurance that these gains will continue.
Technology stocks, especially those of smaller, less-seasoned companies, tend to
be more volatile than the overall stock market.
Past performance does not guarantee future results. Investment return and
principal value will fluctuate so that an investor's shares, when redeemed, may
be worth more or less than their original cost.
Inception date: 3/1/82, Class A; 5/3/93, Class B and Class C.
(a) Assumes Conversion of Class B shares into Class A shares after eight
years.
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ALLIANCEBERNSTEIN TECHNOLOGY FUND o 5
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. $ 175,330,320 5.6%
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Dell, Inc. 171,517,084 5.5
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Intel Corp. 150,850,195 4.8
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Cisco Systems, Inc. 118,085,264 3.8
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First Data Corp. 99,406,976 3.2
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eBay, Inc. 92,133,040 3.0
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Samsung Electronics Co., Ltd.
(GDR) (South Korea) 91,999,328 2.9
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Electronic Arts, Inc. 91,245,000 2.9
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Juniper Networks, Inc. 88,471,773 2.8
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Viacom, Inc. Cl.B 79,650,304 2.5
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$1,158,689,284 37.0%
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6 o ALLIANCEBERNSTEIN TECHNOLOGY FUND
Portfolio of Investments
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PORTFOLIO OF INVESTMENTS
July 31, 2003
Company Shares Value
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COMMON STOCKS & OTHER
INVESTMENTS-98.4%
Technology-89.6%
Communication Equipment-10.3%
ADC Telecommunications, Inc.(a) ................. 100,000 $ 218,000
Alcatel, SA (France)(a) ......................... 5,708,100 57,189,159
Cisco Systems, Inc.(a) .......................... 6,049,450 118,085,264
Juniper Networks, Inc.(a) ....................... 6,131,100 88,471,773
Lucent Technologies, Inc.(a) .................... 120,000 211,200
Nokia Corp. (ADR) (Finland) ..................... 2,057,850 31,485,105
QUALCOMM, Inc. .................................. 683,450 25,602,037
--------------
321,262,538
--------------
Computer Hardware/Storage-10.1%
Avocent Corp.(a) ................................ 1,973,900 52,861,042
Dell, Inc.(a) ................................... 5,092,550 171,517,084
EMC Corp.(a) .................................... 20,000 212,800
International Business Machines Corp. ........... 10,000 812,500
Lexmark International, Inc.(a) .................. 323,800 20,778,246
Seagate Technology (Cayman Islands)(a) .......... 3,170,400 69,114,720
Sun Microsystems, Inc.(a) ....................... 60,000 224,400
Tech Data Corp.(a) .............................. 20,000 626,000
--------------
316,146,792
--------------
Computer Peripherals-0.6%
Network Appliance, Inc.(a) ...................... 1,074,700 17,173,706
--------------
Computer Services-9.4%
Affiliated Computer Services, Inc. Cl.A(a) ...... 721,600 35,755,280
Computer Sciences Corp.(a) ...................... 1,741,250 70,642,513
DST Systems, Inc.(a) ............................ 601,300 22,103,788
Electronic Data Systems Corp. ................... 10,000 222,700
Exult, Inc.(a) .................................. 2,190,500 21,423,090
First Data Corp. ................................ 2,632,600 99,406,976
Fiserv, Inc.(a) ................................. 940,450 36,715,168
Hewitt Associates, Inc. Cl.A(a) ................. 357,900 9,240,978
--------------
295,510,493
--------------
Computer Software-23.5%
Adaptec, Inc.(a) ................................ 40,000 270,800
Amdocs, Ltd. (Channel Islands)(a) ............... 626,800 12,774,184
BEA Systems, Inc.(a) ............................ 2,088,850 27,572,820
Check Point Software Technologies, Ltd.
(Israel)(a) .................................. 20,000 355,800
Cognos, Inc. (Canada)(a) ........................ 1,246,600 33,732,996
Compuware Corp.(a) .............................. 60,000 309,000
Documentum, Inc.(a) ............................. 775,300 13,296,395
Electronic Arts, Inc.(a) ........................ 1,086,250 91,245,000
Intuit, Inc.(a) ................................. 1,074,000 46,203,480
Macrovision Corp.(a) ............................ 1,689,350 39,699,725
Mercury Interactive Corp.(a) .................... 980,700 38,600,352
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ALLIANCEBERNSTEIN TECHNOLOGY FUND o 7
Portfolio of Investments
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Company Shares Value
- --------------------------------------------------------------------------------
Microsoft Corp. ................................. 6,641,300 $ 175,330,320
Oracle Corp.(a) ................................. 5,061,450 60,737,400
SAP AG (ADR) (Germany) .......................... 1,988,000 58,347,800
Symantec Corp.(a) ............................... 824,550 38,564,203
Synopsys, Inc.(a) ............................... 348,600 21,790,986
VERITAS Software Corp.(a) ....................... 2,496,600 76,895,280
--------------
735,726,541
--------------
Contract Manufacturing-5.7%
Asustek Computer Deutsche Bank warrants,
expiring 4/18/05 (Taiwan)(a)(b) .............. 11,163,100 35,967,508
Celestica, Inc. (Canada)(a) ..................... 1,314,500 20,151,285
Flextronics International, Ltd. (Singapore)(a) .. 4,042,750 44,470,250
Sanmina Corp.(a) ................................ 9,627,300 76,440,762
Solectron Corp.(a) .............................. 100,000 511,000
--------------
177,540,805
--------------
Internet Infrastructure-3.0%
eBay, Inc.(a) ................................... 859,450 92,133,040
iPass, Inc.(a) .................................. 14,500 263,900
--------------
92,396,940
--------------
Internet Media-2.9%
InterActiveCorp.(a) ............................. 1,578,000 63,861,660
Yahoo!, Inc.(a) ................................. 908,000 28,266,040
--------------
92,127,700
--------------
Networking Software-0.0%
NETGEAR, Inc.(a) ................................ 20,200 356,954
--------------
Semi-Conductor Capital Equipment-3.7%
Applied Materials, Inc.(a) ...................... 3,750,400 73,132,800
ASM Lithography Holding N.V. (Netherlands)(a) ... 20,000 258,800
KLA-Tencor Corp.(a) ............................. 849,450 43,874,093
--------------
117,265,693
--------------
Semi-Conductor Components-20.4%
Agere Systems, Inc. Cl.A(a) ..................... 13,268,893 37,285,589
Altera Corp.(a) ................................. 2,988,050 57,490,082
Avnet, Inc.(a) .................................. 15,000 216,000
Intel Corp. ..................................... 6,046,100 150,850,195
Intersil Holding Corp. Cl.A(a) .................. 1,218,900 30,058,074
Linear Technology Corp. ......................... 1,666,900 61,475,272
Marvell Technology Group, Ltd. (Bermuda)(a) ..... 2,240,350 78,770,706
Maxim Integrated Products, Inc. ................. 592,350 23,149,038
Samsung Electronics Co., Ltd. (GDR)
(South Korea)(b) ............................. 521,982 91,999,328
STMicroelectronics N.V. (Netherlands) ........... 30,000 641,700
Taiwan Semiconductor Manufacturing Co., Ltd.
ABN Amro Bank warrants,
expiring 1/09/04 (Taiwan)(a)(b) .............. 39,477,780 67,151,704
Taiwan Semiconductor Manufacturing Co., Ltd.
(ADR) (Taiwan) ............................... 75,600 756,000
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8 o ALLIANCEBERNSTEIN TECHNOLOGY FUND
Portfolio of Investments
- --------------------------------------------------------------------------------
Shares or
Principal
Amount
Company (000) Value
- --------------------------------------------------------------------------------
Taiwan Semiconductor Manufacturing Co., Ltd.
Merril Lynch International & Co. warrants,
expiring 11/21/05 (Taiwan)(a) ................ 4,100,000 $ 7,572,700
Texas Instruments, Inc. ......................... 1,645,200 31,044,924
--------------
638,461,312
--------------
2,803,969,474
--------------
Consumer Services-7.5%
Broadcasting & Cable-5.1%
Comcast Corp. Cl.A(a) ........................... 1,122,785 34,042,841
Comcast Corp. Spec. Cl.A(a) ..................... 514,400 15,071,920
EchoStar Communications Corp. Cl.A(a) ........... 862,900 31,297,383
Viacom, Inc. Cl.B(a) ............................ 1,830,200 79,650,304
--------------
160,062,448
--------------
Cellular Communications-2.4%
Sprint Corp. (PCS Group) Cl.A(a) ................ 2,738,900 16,844,235
Vodafone Group Plc (ADR) (United Kingdom) ....... 2,985,973 56,673,768
--------------
73,518,003
--------------
233,580,451
--------------
Capital Goods-1.3%
Electrical Equipment-1.3%
Hon Hai Precision Industry Co., Ltd. Salomon
Smith Barney warrants,
expiring 1/15/04 (Taiwan)(a) ................. 9,065,100 41,645,069
--------------
Total Common Stocks & Other Investments
(cost $2,351,447,428) ........................ 3,079,194,994
--------------
SHORT-TERM INVESTMENT-1.5%
Time Deposit-1.5%
State Street Euro Dollar
0.50%, 8/01/03
(cost $47,327,000) ........................... $ 47,327 47,327,000
--------------
Total Investments*-99.9%
(cost $2,398,774,428) ........................ 3,126,521,994
Other assets less liabilities-0.1% .............. 3,402,258
--------------
Net Assets-100% ................................. $3,129,924,252
==============
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ALLIANCEBERNSTEIN TECHNOLOGY FUND o 9
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
28.4% of net assets, were as follows as of July 31, 2003:
Principal
Current Amount
Short-Term Investments Yield (000) Value
=================================== ============= ========= ============
American International Group, 5/10/04 1.25% $ 13,000 $ 13,516,172
Assoc. Corp., 10/15/03 - 11/01/03 1.28% - 1.30% 6,000 6,138,001
AWB, 8/13/03 0.00% 25,000 24,990,250
CC USA, 6/14/04 - 7/07/04 1.06% 125,000 124,997,500
Chase Manhattan Corp., 4/15/04 1.14% 10,592 11,106,518
Citigroup, 2/16/04 1.59% 11,195 11,954,973
Concord, 8/06/03 1.15% 100,000 99,977,639
Core State Cap., 10/15/03 1.35% 1,000 1,023,254
Deutsche Bank, 8/01/03 1.34% 50,000 50,000,000
Federal Home Loan Bank, 3/05/04 1.40% 50,000 50,093,333
Federal Home Loan Mortgage Corp.,
8/10/04 - 5/05/05 1.14% - 2.00% 159,800 159,800,000
Federal National Mortgage Association,
6/09/05 1.24% 15,000 15,131,718
General Electric, 3/25/04 - 4/23/04 1.11% - 1.40% 38,012 39,298,893
Household Finance, 9/12/03 - 3/11/04 1.25% - 2.83% 49,565 50,132,366
HSBC, 12/01/03 1.39% 4,500 4,741,150
Morgan Stanley, 9/10/03 1.14% 50,000 50,000,000
National Westminister Bancorp, 11/15/03 1.38% 3,000 3,253,755
Sigma Finance, 3/29/04 1.07% 25,000 24,998,750
Travelers, 2/05/04 1.37% 50,000 50,059,681
Wells Fargo, 8/15/03 1.26% - 1.90% 47,500 48,448,968
ZCM Matched Funding Group, 8/25/03 1.05% 50,000 49,954,792
------------
889,617,713
------------
Shares
==========
UBS Private Money Market Fund, LLC 1.02% 61,659 61,659
-------------
Total Short-Term Investments $ 889,679,372
-------------
(a) Non-income producing security.
(b) Security is exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified buyers. At July 31, 2003, the
aggregate market value of these securities amounted to $202,691,240
representing 6.5% of net assets.
Glossary of Terms:
ADR - American Depositary Receipt
GDR - Global Depositary Receipt
See notes to financial statements.
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10 o ALLIANCEBERNSTEIN TECHNOLOGY FUND
Statement of Assets & Liabilities
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS & LIABILITIES
July 31, 2003
Assets
Investments in securities, at value (cost $2,398,774,428) $ 3,126,521,994(a)
Cash ..................................................... 905
Collateral held for securities loaned .................... 889,679,372
Receivable for investment securities sold ................ 18,047,280
Receivable for capital stock sold ........................ 12,650,520
Dividends and interest receivable ........................ 704,587
---------------
Total assets ............................................. 4,047,604,658
---------------
Liabilities
Payable for collateral received on securities loaned ..... 889,679,372
Payable for capital stock redeemed ....................... 15,928,105
Advisory fee payable ..................................... 5,188,266
Distribution fee payable ................................. 480,750
Payable for investment securities purchased .............. 282,800
Accrued expenses and other liabilities ................... 6,121,113
---------------
Total liabilities ........................................ 917,680,406
---------------
Net Assets ............................................... $ 3,129,924,252
===============
Composition of Net Assets
Capital stock, at par .................................... $ 694,685
Additional paid-in capital ............................... 6,078,618,730
Accumulated net realized loss on investment and
foreign currency transactions ......................... (3,677,136,729)
---------------
Net unrealized appreciation of investments ............... 727,747,566
---------------
$ 3,129,924,252
===============
Calculation of Maximum Offering Price
Class A Shares
Net asset value and redemption price per share
($1,186,487,837 / 25,008,299 shares of
capital stock issued and outstanding) ................. $47.44
Sales charge--4.25% of public offering price ............. 2.11
------
Maximum offering price ................................... $49.55
======
Class B Shares
Net asset value and offering price per share
($1,453,453,322 / 33,418,123 shares of
capital stock issued and outstanding) ................. $43.49
======
Class C Shares
Net asset value and offering price per share
($396,472,194 / 9,114,077 shares of
capital stock issued and outstanding) ................. $43.50
======
Advisor Class Shares
Net asset value, redemption and offering price per share
($93,510,899 / 1,927,971 shares of capital stock
issued and outstanding) ............................... $48.50
======
(a) Includes securities on loan with a value of $862,070,400 (see Note E).
See notes to financial statements.
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ALLIANCEBERNSTEIN TECHNOLOGY FUND o 11
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 $387,908) ........................... $ 4,011,780 $ 3,761,099
Interest .................................. 1,513,355 5,453,168
------------- ---------------
5,525,135 9,214,267
Expenses
Advisory fee .............................. 19,546,887 39,370,245
Distribution fee--Class A ................. 2,120,844 4,482,237
Distribution fee--Class B ................. 9,020,084 21,774,762
Distribution fee--Class C ................. 2,413,234 5,788,653
Transfer agency ........................... 12,958,436 24,519,883(a)
Printing .................................. 4,305,669 3,715,211
Custodian ................................. 360,547 548,600
Audit and legal ........................... 160,080 157,723
Registration .............................. 128,506 86,827
Administrative ............................ 97,000 145,000
Directors' fees ........................... 87,000 106,000
Miscellaneous ............................. 151,596 159,495
------------- ---------------
Total expenses ............................ 51,349,883 100,854,636
Less: expense offset arrangement
(see Note B) ........................... (4,235) (63,714)(a)
------------- ---------------
Net expenses .............................. 51,345,648 100,790,922
------------- ---------------
Net investment loss ....................... (45,820,513) (91,576,655)
------------- ---------------
Realized and Unrealized Gain (Loss)
on Investment and Foreign Currency
Transactions
Net realized gain (loss) on:
Investment transactions ................ (156,291,957) (1,900,608,287)
Purchased options ...................... -0- 4,786,639
Foreign currency transactions .......... (314,309) -0-
Net change in unrealized
appreciation/depreciation
of investments ......................... 448,104,681 33,057,117
------------- ---------------
Net gain (loss) on investment
and foreign currency transactions ...... 291,498,415 (1,862,764,531)
------------- ---------------
Net Increase (Decrease) in Net Assets
from Operations ........................ $ 245,677,902 $(1,954,341,186)
============= ===============
* 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.
- --------------------------------------------------------------------------------
12 o ALLIANCEBERNSTEIN TECHNOLOGY FUND
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 ........... $ (45,820,513) $ (91,576,655) $ (112,655,040)
Net realized loss on
investment and foreign
currency transactions ...... (156,606,266) (1,895,821,648) (1,584,178,750)
Net change in unrealized
appreciation/depreciation
of investments ............. 448,104,681 33,057,117 (571,500,103)
-------------- -------------- --------------
Net increase (decrease)
in net assets from
operations ................. 245,677,902 (1,954,341,186) (2,268,333,893)
Distributions to
Shareholders from
Net realized gain on
investment transactions
Class A .................... -0- -0- (160,639,037)
Class B .................... -0- -0- (306,607,828)
Class C .................... -0- -0- (81,314,221)
Advisor Class .............. -0- -0- (17,326,175)
Distributions in excess
of net realized gain on
investment transactions
Class A .................... -0- -0- (11,905,786)
Class B .................... -0- -0- (22,724,283)
Class C .................... -0- -0- (6,026,615)
Advisor Class .............. -0- -0- (1,284,132)
Capital Stock
Transactions
Net increase (decrease) ....... (245,308,289) (1,002,096,652) 68,030,329
-------------- -------------- --------------
Total increase (decrease) ..... 369,613 (2,956,437,838) (2,808,131,641)
Net Assets
Beginning of period ........... 3,129,554,639 6,085,992,477 8,894,124,118
-------------- -------------- --------------
End of period ................. $3,129,924,252 $3,129,554,639 $6,085,992,477
============== ============== ==============
* The Fund changed its fiscal year end from November 30 to July 31.
See notes to financial statements.
- --------------------------------------------------------------------------------
ALLIANCEBERNSTEIN TECHNOLOGY FUND o 13
Notes to Financial Statements
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
July 31, 2003
NOTE A
Significant Accounting Policies
AllianceBernstein Technology Fund, Inc. (the "Fund"), formerly Alliance
Technology 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 information about
some of the items discussed in these Notes to Financial Statements is contained
in the Fund's Statement of Additional Information, which is available upon
request. The following is a summary of significant accounting policies
followed by the Fund.
1. Security Valuation
In accordance with Pricing Policies adopted by the Board of Directors of the
Fund (the "Pricing Policies") and applicable law, portfolio securities are
valued at current market value or at fair value. The Board of Directors has
delegated to the Adviser, subject to the Board's continuing oversight, certain
responsibilities with respect to the implementation of the Pricing Policies.
Pursuant to the Pricing Policies, securities for which market quotations are
readily available are valued at their current market value. In general, the
market value of these securities is determined as follows:
Securities listed on a national securities exchange or on a foreign securities
exchange are valued at the last sale price at the close of the exchange or
foreign securities exchange. If there has been no sale on such day, the
securities are valued at the mean of the closing bid and asked prices on such
day. If no bid or
- --------------------------------------------------------------------------------
14 o ALLIANCEBERNSTEIN TECHNOLOGY FUND
Notes to Financial Statements
- --------------------------------------------------------------------------------
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
- --------------------------------------------------------------------------------
ALLIANCEBERNSTEIN TECHNOLOGY FUND o 15
Notes to Financial Statements
- --------------------------------------------------------------------------------
currency gains and losses from valuing foreign currency denominated assets and
liabilities at period end exchange rates are reflected as a component of net
unrealized appreciation or depreciation of investments and foreign currency
denominated assets and liabilities.
3. Taxes
It is the 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 Ad visor 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 gain 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"), a quarterly advisory fee equal to the
following percentages of the value of the Fund's aggregate net assets at the
close
- --------------------------------------------------------------------------------
16 o ALLIANCEBERNSTEIN TECHNOLOGY FUND
Notes to Financial Statements
- --------------------------------------------------------------------------------
of business on the last business day of the previous quarter: .25 of 1.00% of
the first $10 billion, .25 of .975% of the next $2.5 billion, .25 of .95% of the
next $2.5 billion, .25 of .925% of the next $2.5 billion, .25 of .90% of the
next $2.5 billion, .25 of .875% of the next $2.5 billion and .25 of .85% of the
net assets in excess of $22.5 billion. Such fee is accrued daily and paid
quarterly.
Pursuant to the advisory agreement, the Fund paid $97,000 and $145,000,
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 $7,612,290 and $13,088,612, 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 $4,235 and $63,714, 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 $45,929 and
$93,498 from the sales of Class A shares and received $27,988 and $63,740,
$2,344,602 and $4,715,275 and $31,601 and $83,867, respectively, 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 $13,639,069 and
$19,591,966, respectively, of which $485,474 and $827,664, 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 .30% 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
- --------------------------------------------------------------------------------
ALLIANCEBERNSTEIN TECHNOLOGY FUND o 17
Notes to Financial Statements
- --------------------------------------------------------------------------------
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 $88,476,540 and $6,931,853 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 period ended July 31, 2003, were as follows:
Purchases Sales
=============== ===============
Investment securities (excluding
U.S. government securities) ......... $ 3,511,547,136 $ 3,768,585,282
U.S. government securities ............. -0- -0-
At July 31, 2003, the cost of investments for federal income tax purposes, gross
unrealized appreciation and unrealized depreciation are as follows:
Cost $ 2,801,982,985
===============
Gross unrealized appreciation ....................... $ 780,348,428
Gross unrealized depreciation ....................... (455,809,419)
---------------
Net unrealized appreciation ......................... $ 324,539,009
===============
Option Transactions
For hedging and investment purposes, the Fund may purchase and write (sell) put
and call options on U.S. and foreign government securities and foreign
currencies that are traded on U.S. and foreign securities exchanges and
over-the-counter markets.
The risk associated with purchasing an option is that the Fund pays a premium
whether or not the option is exercised. Additionally, the Fund bears the risk of
loss of premium and change in market value should the counterparty not perform
under the contract. Put and call options purchased are accounted for in the same
manner as portfolio securities. The cost of securities acquired through the
exercise of call options is increased by premiums paid. The proceeds from
securities sold through the exercise of put options are decreased by the
premiums paid.
- --------------------------------------------------------------------------------
18 o ALLIANCEBERNSTEIN TECHNOLOGY FUND
Notes to Financial Statements
- --------------------------------------------------------------------------------
When the Fund writes an option, the premium received by the Fund is recorded as
a liability and is subsequently adjusted to the current market value of the
option written. Premiums received from written options which expire unexercised
are recorded by the Fund on the expiration date as realized gains from options
written. The difference between the premium received and the amount paid on
effecting a closing purchase transaction, including brokerage commissions, is
also treated as a realized gain, or if the premium received is less than the
amount paid for the closing purchase transaction, as a realized loss. If a call
option is exercised, the premium received is added to the proceeds from the sale
of the underlying security or currency in determining whether the Fund has
realized a gain or loss. If a put option is exercised, the premium received
reduces the cost basis of the security or currency purchased by the Fund. In
writing an option, the Fund bears the market risk of an unfavorable change in
the price of the security or currency underlying the written option. Exercise of
an option written by the Fund could result in the Fund selling or buying a
security or currency at a price different from the current market value.
NOTE E
Securities Lending
The Fund has entered into a securities lending agreement with AG Edwards & Sons,
Inc. (the "Lending Agent"). Under the terms of the agreement, the Lending Agent,
on behalf of the 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 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 consists of either cash or
U.S. government securities. The Lending Agent may invest the cash collateral
received in accordance with the investment restrictions of the Fund in one or
more of the following investments: U.S. government or U.S. government agency
obligations, bank obligations, corporate debt obligations, asset-backed
securities, investment funds, structured products, repurchase agreements and an
eligible money market fund. The Lending Agent will indemnify the 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 $862,070,400
and received cash collateral which was invested in short-term securities valued
at $889,679,372 as included in the footnotes to the accompanying portfolio of
investments. For the period ended July 31, 2003, the Fund earned fee income of
$1,057,736 which is included in interest income in the accompanying statement of
operations.
- --------------------------------------------------------------------------------
ALLIANCEBERNSTEIN TECHNOLOGY FUND o 19
Notes to Financial Statements
- --------------------------------------------------------------------------------
NOTE F
Capital Stock
There are 12,000,000,000 shares of $0.01 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
---------------------------------------------------
December 1, 2002 Year Ended Year Ended
to July 31, November 30, November 30,
2003(a) 2002 2001
--------------------------------------------------
Class A
Shares sold 74,462,637 241,078,290 114,657,376
- --------------------------------------------------------------------------------------
Shares issued in reinvestment
of distributions -0- -0- 1,731,409
- --------------------------------------------------------------------------------------
Shares converted from Class B 1,034,592 900,354 397,548
- --------------------------------------------------------------------------------------
Shares redeemed (75,715,354) (245,484,494) (115,866,069)
- --------------------------------------------------------------------------------------
Net increase (decrease) (218,125) (3,505,850) 920,264
======================================================================================
Class B
Shares sold 1,670,161 3,483,088 6,975,289
- --------------------------------------------------------------------------------------
Shares issued in reinvestment
of distributions -0- -0- 3,510,950
- --------------------------------------------------------------------------------------
Shares converted to Class A (1,126,550) (963,780) (426,323)
- --------------------------------------------------------------------------------------
Shares redeemed (5,542,690) (13,771,576) (12,871,990)
- --------------------------------------------------------------------------------------
Net decrease (4,999,079) (11,252,268) (2,812,074)
======================================================================================
Class C
Shares sold 1,677,962 4,504,111 7,149,199
- --------------------------------------------------------------------------------------
Shares issued in reinvestment
of distributions -0- -0- 942,855
- --------------------------------------------------------------------------------------
Shares redeemed (2,812,996) (7,675,024) (8,662,332)
- --------------------------------------------------------------------------------------
Net decrease (1,135,034) (3,170,913) (570,278)
======================================================================================
Advisor Class
Shares sold 565,245 934,323 1,679,134
- --------------------------------------------------------------------------------------
Shares issued in reinvestment
of distributions -0- -0- 188,377
- --------------------------------------------------------------------------------------
Shares redeemed (508,743) (2,451,696) (1,469,384)
- --------------------------------------------------------------------------------------
Net increase (decrease) 56,502 (1,517,373) 398,127
======================================================================================
(a) The Fund changed its fiscal year end from November 30 to July 31.
- --------------------------------------------------------------------------------
20 o ALLIANCEBERNSTEIN TECHNOLOGY FUND
Notes to Financial Statements
- --------------------------------------------------------------------------------
-----------------------------------------------------------
Amount
-----------------------------------------------------------
December 1, 2002 Year Ended Year Ended
to July 31, November 30, November 30,
2003(a) 2002 2001
-----------------------------------------------------------
Class A
Shares sold $ 2,939,404,972 $ 12,214,506,149 $ 8,391,474,868
- -------------------------------------------------------------------------------------------
Shares issued in reinvestment
of distributions -0- -0- 160,731,393
- -------------------------------------------------------------------------------------------
Shares converted from Class B 43,501,551 44,799,543 27,497,702
- -------------------------------------------------------------------------------------------
Shares redeemed (3,001,651,818) (12,505,261,596) (8,463,612,395)
- -------------------------------------------------------------------------------------------
Net increase (decrease) $ (18,745,295) $ (245,955,904) $ 116,091,568
===========================================================================================
Class B
Shares sold $ 63,313,428 $ 173,936,751 $ 517,657,257
- -------------------------------------------------------------------------------------------
Shares issued in reinvestment
of distributions -0- -0- 304,919,477
- -------------------------------------------------------------------------------------------
Shares converted to Class A (43,501,551) (44,799,543) (27,497,702)
- -------------------------------------------------------------------------------------------
Shares redeemed (206,573,042) (647,747,503) (878,975,463)
- -------------------------------------------------------------------------------------------
Net decrease $ (186,761,165) $ (518,610,295) $ (83,896,431)
===========================================================================================
Class C
Shares sold $ 61,825,025 $ 222,615,217 $ 532,668,338
- -------------------------------------------------------------------------------------------
Shares issued in reinvestment
of distributions -0- -0- 81,844,636
- -------------------------------------------------------------------------------------------
Shares redeemed (104,090,061) (374,107,034) (620,382,154)
- -------------------------------------------------------------------------------------------
Net decrease $ (42,265,036) $ (151,491,817) $ (5,869,180)
===========================================================================================
Advisor Class
Shares sold $ 23,824,296 $ 53,921,257 $ 136,048,692
- -------------------------------------------------------------------------------------------
Shares issued in reinvestment
of distributions -0- -0- 17,726,534
- -------------------------------------------------------------------------------------------
Shares redeemed (21,361,089) (139,959,893) (112,070,854)
- -------------------------------------------------------------------------------------------
Net increase (decrease) $ 2,463,207 $ (86,038,636) $ 41,704,372
===========================================================================================
(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 TECHNOLOGY 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- $607,828,077
--------- --------- ------------
Total taxable
distributions ................. -0- -0- 607,828,077
--------- --------- ------------
Total distributions paid ......... $ -0- $ -0- $607,828,077
--------- --------- ------------
As of July 31, 2003, the components of accumulated earnings/(deficit) on a tax
basis were as follows:
Accumulated capital and other losses ................ $(3,273,928,172)(a)
Unrealized appreciation/(depreciation) .............. 324,539,009(b)
---------------
Total accumulated earnings/(deficit) ................ $(2,949,389,163)
===============
(a) On July 31, 2003, the Fund had a net capital loss carryforward for federal
income tax purposes of $3,273,928,172, of which $1,492,308,784 expires in
the year 2009, $1,330,398,762 expires in the year 2010, and $451,220,626
expires in the year 2011. To the extent future capital gains are offset by
capital loss carryforwards, such gains will not be distributed.
(b) The differences 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 and a decrease in
accumulated net realized loss on investments and a decrease in additional
paid-in capital. This reclassification had no effect on net assets.
NOTE I
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, one of whom was
the portfolio manager of the Fund and the other of whom had been an executive
involved in selling Alliance Capital's hedge fund products. Alliance Capital
- --------------------------------------------------------------------------------
22 o ALLIANCEBERNSTEIN TECHNOLOGY FUND
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 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
- --------------------------------------------------------------------------------
ALLIANCEBERNSTEIN TECHNOLOGY FUND o 23
York in which certain AllianceBernstein mutual 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, the Funds and related parties.
- --------------------------------------------------------------------------------
24 o ALLIANCEBERNSTEIN TECHNOLOGY FUND
Financial Highlights
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
------------------------------------------------------------------------------------------
Class A
------------------------------------------------------------------------------------------
December 1,
2002 to Year Ended November 30,
July 31, ------------------------------------------------------------------------
2003(a) 2002 2001 2000 1999 1998
------------------------------------------------------------------------------------------
Net asset value,
beginning of period ............. $ 43.48 $ 67.05 $ 95.32 $ 111.46 $ 68.60 $ 54.44
------------------------------------------------------------------------------------------
Income From Investment
Operations
Net investment loss(b) ............. (.54) (.87) (.82) (1.35) (.99) (.68)
Net realized and unrealized gain
(loss) on investment and foreign
currency transactions ........... 4.50 (22.70) (21.17) (10.75) 49.02 15.42
------------------------------------------------------------------------------------------
Net increase (decrease) in net
asset value from operations ..... 3.96 (23.57) (21.99) (12.10) 48.03 14.74
------------------------------------------------------------------------------------------
Less: Distributions
Distributions from net realized gain
on investment transactions ...... -0- -0- (5.86) (4.04) (5.17) (.58)
Distributions in excess of net
realized gain on investment
transactions .................... -0- -0- (.42) -0- -0- -0-
------------------------------------------------------------------------------------------
Total distributions ................ -0- -0- (6.28) (4.04) (5.17) (.58)
------------------------------------------------------------------------------------------
Net asset value, end of period ..... $ 47.44 $ 43.48 $ 67.05 $ 95.32 $ 111.46 $ 68.60
==========================================================================================
Total Return
Total investment return based on
net asset value(c) .............. 9.11% (35.15)% (24.90)% (11.48)% 74.67% 27.36%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted) ................. $ 1,186,488 $1,096,744 $ 1,926,473 $ 2,650,904 $ 2,167,060 $ 824,636
Ratio to average net assets of:
Expenses ........................ 2.24%(d) 1.85% 1.58% 1.50% 1.68%(e) 1.66%(e)
Net investment loss ............. (1.95)%(d) (1.64)% (1.08)% (.98)% (1.11)% (1.13)%
Portfolio turnover rate ............ 127% 117% 55% 46% 54% 67%
See footnote summary on page 28.
- --------------------------------------------------------------------------------
ALLIANCEBERNSTEIN TECHNOLOGY FUND o 25
Financial Highlights
- --------------------------------------------------------------------------------
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
-------------------------------------------------------------------------------------------
Class B
------------------------------------------------------------------------------------------
December 1,
2002 to Year Ended November 30,
July 31, ------------------------------------------------------------------------
2003(a) 2002 2001 2000 1999 1998
------------------------------------------------------------------------------------------
Net asset value,
beginning of period ............. $ 40.06 $ 62.27 $ 89.59 $ 105.73 $ 65.75 $ 52.58
------------------------------------------------------------------------------------------
Income From Investment
Operations
Net investment loss(b) ............. (.69) (1.16) (1.28) (2.17) (1.54) (1.08)
Net realized and unrealized gain
(loss) on investment and foreign
currency transactions ........... 4.12 (21.05) (19.76) (9.93) 46.69 14.83
------------------------------------------------------------------------------------------
Net increase (decrease) in net
asset value from operations ..... 3.43 (22.21) (21.04) (12.10) 45.15 13.75
------------------------------------------------------------------------------------------
Less: Distributions
Distributions from net realized gain
on investment transactions ...... -0- -0- (5.86) (4.04) (5.17) (.58)
Distributions in excess of net
realized gain on investment
transactions .................... -0- -0- (.42) -0- -0- -0-
------------------------------------------------------------------------------------------
Total distributions ................ -0- -0- (6.28) (4.04) (5.17) (.58)
------------------------------------------------------------------------------------------
Net asset value, end of period ..... $ 43.49 $ 40.06 $ 62.27 $ 89.59 $ 105.73 $ 65.75
==========================================================================================
Total Return
Total investment return based on
net asset value(c) .............. 8.56% (35.67)% (25.46)% (12.12)% 73.44% 26.44%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted) ................. $ 1,453,453 $ 1,539,144 $3,092,947 $ 4,701,567 $ 3,922,584 $ 1,490,578
Ratio to average net assets of:
Expenses ........................ 3.02%(d) 2.58% 2.31% 2.20% 2.39%(e) 2.39%(e)
Net investment loss ............. (2.73)%(d) (2.37)% (1.80)% (1.68)% (1.83)% (1.86)%
Portfolio turnover rate ............ 127% 117% 55% 46% 54% 67%
See footnote summary on page 28.
- --------------------------------------------------------------------------------
26 o ALLIANCEBERNSTEIN TECHNOLOGY FUND
Financial Highlights
- --------------------------------------------------------------------------------
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
------------------------------------------------------------------------------------------
Class C
------------------------------------------------------------------------------------------
December 1,
2002 to Year Ended November 30,
July 31, ------------------------------------------------------------------------
2003(a) 2002 2001 2000 1999 1998
------------------------------------------------------------------------------------------
Net asset value,
beginning of period ............. $ 40.07 $ 62.25 $ 89.55 $ 105.69 $ 65.74 $ 52.57
------------------------------------------------------------------------------------------
Income From Investment
Operations
Net investment loss(b) ............. (.68) (1.15) (1.28) (2.19) (1.57) (1.08)
Net realized and unrealized gain
(loss) on investment and foreign
currency transactions ........... 4.11 (21.03) (19.74) (9.91) 46.69 14.83
------------------------------------------------------------------------------------------
Net increase (decrease) in net
asset value from operations ..... 3.43 (22.18) (21.02) (12.10) 45.12 13.75
------------------------------------------------------------------------------------------
Less: Distributions
Distributions from net realized gain
on investment transactions ...... -0- -0- (5.86) (4.04) (5.17) (.58)
Distributions in excess of net
realized gain on investment
transactions .................... -0- -0- (.42) -0- -0- -0-
------------------------------------------------------------------------------------------
Total distributions ................ -0- -0- (6.28) (4.04) (5.17) (.58)
------------------------------------------------------------------------------------------
Net asset value, end of period ..... $ 43.50 $ 40.07 $ 62.25 $ 89.55 $ 105.69 $ 65.74
==========================================================================================
Total Return
Total investment return based on
net asset value(c) .............. 8.56% (35.63)% (25.45)% (12.13)% 73.40% 26.44%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted) ................. $ 396,472 $ 410,649 $ 835,406 $ 1,252,765 $ 907,707 $ 271,320
Ratio to average net assets of:
Expenses ........................ 3.01%(d) 2.55% 2.30% 2.21% 2.41%(e) 2.40%(e)
Net investment loss ............. (2.72)%(d) (2.34)% (1.80)% (1.69)% (1.85)% (1.87)%
Portfolio turnover rate ............ 127% 117% 55% 46% 54% 67%
See footnote summary on page 28.
- --------------------------------------------------------------------------------
ALLIANCEBERNSTEIN TECHNOLOGY FUND o 27
Financial Highlights
- --------------------------------------------------------------------------------
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
------------------------------------------------------------------------------------------
Advisor Class
------------------------------------------------------------------------------------------
December 1,
2002 to Year Ended November 30,
July 31, ------------------------------------------------------------------------
2003(a) 2002 2001 2000 1999 1998
------------------------------------------------------------------------------------------
Net asset value,
beginning of period ............. $ 44.36 $ 68.21 $ 96.60 $ 112.59 $ 69.04 $ 54.63
------------------------------------------------------------------------------------------
Income From Investment
Operations
Net investment loss(b) ............. (.46) (.72) (.60) (.91) (.68) (.50)
Net realized and unrealized gain
(loss) on investment and foreign
currency transactions ........... 4.60 (23.13) (21.51) (11.04) 49.40 15.49
------------------------------------------------------------------------------------------
Net increase (decrease) in net
asset value from operations ..... 4.14 (23.85) (22.11) (11.95) 48.72 14.99
------------------------------------------------------------------------------------------
Less: Distributions
Distributions from net realized gain
on investment transactions ...... -0- -0- (5.89) (4.04) (5.17) (.58)
Distributions in excess of net
realized gain on investment
transactions .................... -0- -0- (.39) -0- -0- -0-
------------------------------------------------------------------------------------------
Total distributions ................ -0- -0- (6.28) (4.04) (5.17) (.58)
------------------------------------------------------------------------------------------
Net asset value, end of period ..... $ 48.50 $ 44.36 $ 68.21 $ 96.60 $ 112.59 $ 69.04
==========================================================================================
Total Return
Total investment return based on
net asset value(c) .............. 9.33% (34.96)% (24.68)% (11.22)% 75.22% 27.73%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted) ................. $ 93,511 $ 83,018 $ 231,167 $ 288,889 $ 330,404 $ 230,295
Ratio to average net assets of:
Expenses ........................ 1.94%(d) 1.49% 1.27% 1.19% 1.35%(e) 1.37%(e)
Net investment loss ............. (1.65)%(d) (1.29)% (.78)% (.66)% (.78)% (.84)%
Portfolio turnover rate ............ 127% 117% 55% 46% 54% 67%
(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 expenses offset arrangement
with the Transfer Agent. For the periods shown below, the net expense
ratios were as follows:
Year Ended
November 30,
--------------------
1999 1998
--------------------
Class A ........ 1.66% 1.65%
Class B ........ 2.38% 2.38%
Class C ........ 2.40% 2.38%
Advisor Class .. 1.34% 1.36%
- --------------------------------------------------------------------------------
28 o ALLIANCEBERNSTEIN TECHNOLOGY FUND
Report of Ernst & Young LLP, Independent Auditors
- --------------------------------------------------------------------------------
REPORT OF ERNST & YOUNG LLP,
INDEPENDENT AUDITORS
To the Shareholders and Board of Directors
of AllianceBernstein Technology Fund, Inc.
We have audited the accompanying statement of assets and liabilities of
AllianceBernstein Technology Fund, Inc., formerly Alliance Technology Fund,
Inc., (the "Fund"), including the portfolio of investments, as of July 31, 2003,
and the related statement of operations for the period from December 1, 2002 to
July 31, 2003 and for the year ended November 30, 2002, the statement of changes
in net assets for the period from December 1, 2002 to July 31, 2003 and for each
of the two years in the period ended November 30, 2002, and the financial
highlights for the period from December 1, 2002 to July 31, 2003 and for each of
the five years in the period ended November 30, 2002. 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 Technology Fund, Inc. at July 31, 2003, the results of its
operations for the period from December 1, 2002 to July 31, 2003 and for the
year ended November 30, 2002, the changes in its net assets for the period from
December 1, 2002 to July 31, 2003 and for each of the two years in the period
ended November 30, 2002, and the financial highlights for the period from
December 1, 2002 to 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.
/s/ Ernst & Young LLP
New York, New York
September 12, 2003, except for Note I, as to which the date is October 9, 2003
- --------------------------------------------------------------------------------
ALLIANCEBERNSTEIN TECHNOLOGY FUND o 29
Board of Directors
- --------------------------------------------------------------------------------
BOARD OF DIRECTORS
John D. Carifa, Chairman and President
Robert C. Alexander(1)
David H. Dievler(1)
William H. Foulk, Jr.(1)
D. James Guzy(1)
Marshall C. Turner, Jr.(1)
OFFICERS
Janet A. Walsh, Senior Vice President
Thomas J. Bardong, Vice President
Andrew J. Frank, 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
Transfer Agent
Alliance Global Investor Services, Inc.
P.O. Box 786003
San Antonio, TX 78278-6003
Toll-Free (800) 221-5672
Independent Auditors
Ernst & Young LLP
5 Times Square
New York, NY 10036
(1) Member of the Audit Committee.
- --------------------------------------------------------------------------------
30 o ALLIANCEBERNSTEIN TECHNOLOGY FUND
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, AGE OF DIRECTOR, PRINCIPAL COMPLEX DIRECTORSHIPS
ADDRESS OCCUPATION(S) OVERSEEN BY HELD BY
(YEARS OF SERVICE*) DURING PAST 5 YEARS DIRECTOR DIRECTOR
- ------------------------------------------------------------------------------------------------------------
INTERESTED DIRECTOR
John D. Carifa,**, 58 President, Chief Operating Officer 116 None
1345 Avenue and a Director of Alliance Capital
of the Americas Management Corporation
New York, NY 10105 ("ACMC"), with which he has
(15) been associated since prior
to 1998.
DISINTERESTED DIRECTORS
Robert C. Alexander, #+, 61 President of Alexander & 1 None
38 East 29th Street Associates, Inc. Management
New York, NY 10016 Consultants, since prior to 1998.
(9)
David H. Dievler, #+, 73 Independent Consultant. Until 101 None
P.O. Box 167 December 1994, he was Senior
Spring Lake, Vice President of ACMC
NJ 07762 (13) responsible for mutual fund
administration. Prior to joining
ACMC in 1984, he was Chief
Financial Officer of Eberstadt
Asset Management since 1968.
Prior to that, he was a Senior
Manager at Price Waterhouse
& Co. Member of American
Institute of Certified Public
Accountants since 1953.
William H. Foulk, Jr., #+, 71 Investment Adviser and an 113 None
2 Sound View Drive independent consultant. He
Suite 100 was formerly Senior Manager
Greenwich, CT 06830 (11) of Barrett Associates, Inc., a
registered investment adviser,
with which he had been
associated since prior to 1998.
Formerly Deputy Comptroller
of the State of New York and,
prior thereto, Chief Investment
Officer of the New York Bank
for Savings.
- --------------------------------------------------------------------------------
ALLIANCEBERNSTEIN TECHNOLOGY FUND o 31
Management of the Fund
- --------------------------------------------------------------------------------
PORTFOLIOS
IN FUND OTHER
NAME, AGE OF DIRECTOR, PRINCIPAL COMPLEX DIRECTORSHIPS
ADDRESS OCCUPATION(S) OVERSEEN BY HELD BY
(YEARS OF SERVICE*) DURING PAST 5 YEARS DIRECTOR DIRECTOR
- -----------------------------------------------------------------------------------------------------------------
DISINTERESTED DIRECTORS
(continued)
D. James Guzy, #+, 67 Chairman of the Board of PLX 1 Intel Corporation,
P.O. Box 128 Technology (semi-conductors) Cirrus Logic
Glenbrook, NV 89413 (21) and of SRC Computers, Inc. Corporation,
with which he has been Novellus
associated prior to 1998. He Corporation,
is also President of the Arbor Micro Component
Company (private family Technology
investments). He is a Director of and the Davis
Intel Corporation (semi-conductors), Selected
Cirrus Logic Corporation (semi- Advisers Group
conductors), Novellus Corporation of Mutual
(semi-conductor equipment), Funds.
Micro Component Technology
(semi-conductor equipment),
the Davis Selected Advisers
Group of Mutual Funds (registered
investment companies) and Logic
Vision.
Marshall C. Turner, Jr, #+, 61 Principal of Turner Venture 1 Du Pont
220 Montgomery Street Associates (venture capital Photomasks, Inc
Penthouse 10 and consulting) since prior to
San Francisco, 1998. He is a director of DuPont
CA 94104 (11) Photomasks, Inc. (semi-conductor
manufacturing services);
the George Lucas Educational
Foundation; and is Chairman
of the Board of the Smithsonian's
National Museum of Natural History.
* There is no stated term of office for the Fund's Directors.
** Mr. Carifa is an "interested person" 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 TECHNOLOGY FUND
Management of the Fund
- --------------------------------------------------------------------------------
Officers of The Fund
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 and President See biography above.
Janet A. Walsh, 41 Senior Vice President Senior Vice President of Alliance Capital
Management Corporation ("ACMC")**,
with which she 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.
Andrew J. Frank, 32 Vice President Vice President of ACMC**, with which
he has been associated since prior to
1998.
Edmund P. Bergan, Jr., 53 Secretary Senior Vice President and the
General Counsel of AllianceBernstein
Investment Research and Management
("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
Financial Officer Senior Vice President of 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, unless otherwise indicated,
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 800-227-4618
for a free prospectus or SAI.
- --------------------------------------------------------------------------------
ALLIANCEBERNSTEIN TECHNOLOGY 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 TECHNOLOGY FUND
ALLIANCEBERNSTEIN TECHNOLOGY 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.
TECAR0703
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, William H. Foulk, D. James Guzy and Marshall C. Turner
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 Technology 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