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: 811-07618
AllianceBernstein Municipal Income Fund II
(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)
Mark R. Manley.
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: September 30, 2003
Date of reporting period: September 30, 2003
ITEM 1. REPORTS TO STOCKHOLDERS.
[LOGO] AllianceBernstein(SM)
Investment Research and Management
AllianceBernstein
Municipal Income Fund II
Annual Report--September 30, 2003
Investment Products Offered
====================================
o Are Not FDIC Insured
o May Lose Value
o Are Not Bank Guaranteed
====================================
This shareholder report must be preceded or accompanied by the Fund's prospectus
for individuals who are not current shareholders of the Fund.
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 Commission'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.
November 21, 2003
Annual Report
This report provides management's discussion of market activity and investment
results for AllianceBernstein Municipal Income Fund II for the annual reporting
period ended Sep-tember 30, 2003.
Investment Objectives and Policies
The nine portfolios of this open-end fund, by investing principally in
high-yielding, predominantly medium-quality municipal securities, seek to
provide their shareholders with the highest level of income exempt from Federal
and state personal income tax (or for Florida, the intangible tax) that is
available without assuming undue risk. These securities generally offer current
yields above those of higher-quality municipal obligations.
Investment Results
The following table provides performance for the Fund's nine portfolios and
their benchmark, the Lehman Brothers Municipal Bond Index, for the six- and
12-month periods ended September 30, 2003.
INVESTMENT RESULTS*
Periods Ended September 30, 2003
=============================
Returns
=============================
Portfolio 6 Months 12 Months
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Arizona 2.74% 2.35%
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Florida 1.78% 3.54%
- --------------------------------------------------------------------------------
Massachusetts 1.76% 2.39%
- --------------------------------------------------------------------------------
Michigan 1.45% 2.66%
- --------------------------------------------------------------------------------
Minnesota 2.24% 3.05%
- --------------------------------------------------------------------------------
New Jersey 2.24% 2.39%
- --------------------------------------------------------------------------------
Ohio 3.55% 5.20%
- --------------------------------------------------------------------------------
Pennsylvania 2.91% 3.57%
- --------------------------------------------------------------------------------
Virginia 3.43% 4.66%
- --------------------------------------------------------------------------------
Lehman Brothers
Municipal Bond
Index 2.66% 3.89%
- --------------------------------------------------------------------------------
* Each Portfolio's investment results are for the periods shown and are based
on the net asset value (NAV) of each Portfolio's Class A shares as of
September 30, 2003. Returns do not reflect the deduction of taxes that a
shareholder would pay on fund distributions or the redemption of fund shares.
All fees and expenses related to the operation of the Portfolios have been
deducted, but no adjustment has been made for sales charges that may apply
when shares are purchased or redeemed. Returns for the Portfolios include the
reinvestment of any distributions paid during each period. Returns for Class
B and Class C shares will vary due to different expenses associated with
these classes. The Lehman Brothers Municipal Bond Index is a total return
performance benchmark for the long-term investment grade, tax-exempt bond
market. An investor cannot invest directly in an index, and its results are
not indicative of any specific investment, including AllianceBernstein
Municipal Income Fund II. Past performance is no guarantee of future results.
Additional investment results can be found on pages 9-10.
SEC average annual returns can be found on page 9.
For the six-month period ended September 30, 2003, the municipal bond market, as
measured by the Lehman Brothers (LB) Municipal Bond Index,
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AllianceBernstein Municipal Income Fund II o 1
posted positive returns. Over that time period, four portfolios (Arizona, Ohio,
Pennsylvania and Virginia) outperformed the LB Municipal Bond Index while five
portfolios (Florida, Massachusetts, Michigan, Minnesota and New Jersey)
underperformed the index. Those portfolios that outperformed benefited as a
result of their exposure to the corporate-backed bond sector. In addition,
advance refunding in several of the portfolios also contributed to the stronger
relative performance. Widening of credit spreads in selected specific issuers
primarily contributed to the weaker returns of those portfolios that
underperformed the index. Over the six-month period, the performance of the
portfolios relative to their Lipper peer group averages was roughly consistent
with their performance relative to the LB Municipal Bond Index.
Despite rising long-term interest rates, municipal bond returns were positive
over the past 12 months. Over that time period, two portfolios (Ohio and
Virginia) outperformed and seven portfolios (Arizona, Florida, Massachusetts,
Michigan, Minnesota, New Jersey and Pennsylvania) underperformed the LB
Municipal Bond Index. The stronger relative performance of the Ohio and Virginia
portfolios may be attributed to their exposure to the recovery in airline-backed
bonds. For the most part, widening spreads in the industrial development and
tobacco settlement securities contributed to the weaker performance of those
portfolios that underperformed. Five portfolios (Arizona, Florida, Ohio,
Pennsylvania and Virginia) outperformed their Lipper peer group aver
age. Massachusetts, Michigan, Minnesota and New Jersey portfolios lagged their
Lipper peer group averages.
Market Overview and Investment Strategy
Since April, municipal bond yields have been volatile, declining into mid-June,
rising sharply as the market sold off through August, and then recovering again.
In the midst of such volatility, the rate paths of intermediate and long-term
municipal bonds diverged. As of September 30, 2003 five-year AAA-rated municipal
bond yields were 35 basis points lower than they were on March 30, 2003, and
30-year municipal yields were unchanged. As a result, the difference between
short-term and long-term bond yields, known as the "steepness" of the yield
curve, is the widest it has been since 1984.
The value of municipal bonds relative to Treasury bonds has changed, as well. At
the end of March, municipal bond yields for most maturities were nearly the same
as Treasury bond yields and, therefore, were relatively inexpensive given the
more favorable tax treatment. Over the past six months, municipal bonds
outperformed Treasury bonds. As of September 30, 2003, short and intermediate
municipal bonds were fairly valued versus Treasury bonds, while long municipal
bonds remained relatively inexpensive with yields approximately 97% of long-term
Treasury bond yields. The pace of issuance was strong through early summer, but
declined in July due to the rising yield environment.
Several recent municipal credit situations have gone through reversals over the
last six months. After a substantial
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2 o AllianceBernstein Municipal Income Fund II
widening in credit spreads that began in 2002, municipal tobacco settlement
bonds have had strong performance in the wake of several favorable court
decisions. State of California general obligation (GO) debt underperformed in
the second quarter as the Governor and the Legislature wrestled with a massive
budget deficit. California GO credit spreads tightened substantially once the
budget was passed despite the then impending recall election. Airline-backed
municipal bonds have also performed very well as the industry has stabilized.
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AllianceBernstein Municipal Income Fund II o 3
PERFORMANCE UPDATE
ALLIANCEBERNSTEIN MUNICIPAL INCOME FUND II
GROWTH OF A $10,000 INVESTMENT
Arizona Portfolio
6/1/94-9/30/03
Arizona Portfolio Class A at NAV: $18,124
Arizona Portfolio Class A at offering: $17,360
Lipper AZ Muni Funds Average: $16,741
[THE FOLLOWING TABLE WAS DEPICTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL.]
Arizona Portfolio Class A at offering Lipper AZ Muni Funds Average
- --------------------------------------------------------------------------------
6/1/94 $ 9,579 $10,000
9/30/94 $ 9,546 $ 9,977
9/30/95 $10,649 $11,006
9/30/96 $11,377 $11,659
9/30/97 $12,575 $12,641
9/30/98 $13,775 $13,642
9/30/99 $13,713 $13,356
9/30/00 $14,559 $13,971
9/30/01 $15,805 $15,215
9/30/02 $16,964 $16,369
9/30/03 $17,360 $16,741
ALLIANCEBERNSTEIN MUNICIPAL INCOME FUND II
GROWTH OF A $10,000 INVESTMENT
Florida Portfolio
9/30/93-9/30/03
Florida Portfolio Class A at NAV: $17,133
Florida Portfolio Class A at offering: $16,413
Lipper FL Muni Funds Average: $16,257
[THE FOLLOWING TABLE WAS DEPICTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL.]
Florida Portfolio Class A at offering Lipper FL Muni Funds Average
- --------------------------------------------------------------------------------
9/30/93 $ 9,579 $10,000
9/30/94 $ 8,810 $ 9,549
9/30/95 $10,083 $10,563
9/30/96 $10,834 $11,183
9/30/97 $11,932 $12,083
9/30/98 $13,002 $13,086
9/30/99 $12,823 $12,736
9/30/00 $13,478 $13,370
9/30/01 $14,786 $14,687
9/30/02 $15,851 $15,796
9/30/03 $16,413 $16,257
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4 o AllianceBernstein Municipal Income Fund II
PERFORMANCE UPDATE
ALLIANCEBERNSTEIN MUNICIPAL INCOME FUND II
GROWTH OF A $10,000 INVESTMENT
Massachusetts Portfolio
3/29/94-9/30/03
Massachusetts Portfolio Class A at NAV: $18,873
Lipper MA Muni Funds Average: $17,091
Massachusetts Portfolio Class A at offering: $18,077
[THE FOLLOWING TABLE WAS DEPICTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL.]
Massachusetts Portfolio Class A at offering Lipper MA Muni Funds Average
- --------------------------------------------------------------------------------
3/29/94 $ 9,579 $10,000
9/30/94 $ 9,975 $10,119
9/30/95 $10,991 $11,089
9/30/96 $12,117 $11,747
9/30/97 $13,467 $12,717
9/30/98 $14,704 $13,728
9/30/99 $14,521 $13,358
9/30/00 $15,228 $13,994
9/30/01 $16,739 $15,400
9/30/02 $17,654 $16,653
9/30/03 $18,077 $17,091
ALLIANCEBERNSTEIN MUNICIPAL INCOME FUND II
GROWTH OF A $10,000 INVESTMENT
Michigan Portfolio
2/25/94-9/30/03
Michigan Portfolio Class A at NAV: $18,710
Michigan Portfolio Class A at offering: $17,921
Lipper MI Muni Funds Average: $16,354
[THE FOLLOWING TABLE WAS DEPICTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL.]
Michigan Portfolio Class A at offering Lipper MI Muni Funds Average
- --------------------------------------------------------------------------------
2/25/94 $ 9,579 $10,000
9/30/94 $ 9,268 $ 9,676
9/30/95 $10,603 $10,642
9/30/96 $11,402 $11,250
9/30/97 $12,662 $12,172
9/30/98 $13,810 $13,155
9/30/99 $13,814 $12,825
9/30/00 $14,697 $13,450
9/30/01 $16,183 $14,748
9/30/02 $17,455 $15,901
9/30/03 $17,921 $16,354
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AllianceBernstein Municipal Income Fund II o 5
PERFORMANCE UPDATE
ALLIANCEBERNSTEIN MUNICIPAL INCOME FUND II
GROWTH OF A $10,000 INVESTMENT
Minnesota Portfolio
9/30/93-9/30/03
Minnesota Portfolio Class A at NAV: $16,850
Lipper MN Muni Funds Average: $16,257
Minnesota Portfolio Class A at offering: $16,128
[THE FOLLOWING TABLE WAS DEPICTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL.]
Minnesota Portfolio Class A at offering Lipper MN Muni Funds Average
- --------------------------------------------------------------------------------
9/30/93 $ 9,572 $10,000
9/30/94 $ 9,060 $ 9,668
9/30/95 $ 9,932 $10,571
9/30/96 $10,622 $11,154
9/30/97 $11,677 $12,057
9/30/98 $12,604 $13,008
9/30/99 $12,543 $12,731
9/30/00 $13,308 $13,346
9/30/01 $14,564 $14,594
9/30/02 $15,650 $15,708
9/30/03 $16,128 $16,257
ALLIANCEBERNSTEIN MUNICIPAL INCOME FUND II
GROWTH OF A $10,000 INVESTMENT
New Jersey Portfolio
9/30/93-9/30/03
New Jersey Portfolio Class A at NAV: $16,125
Lipper NJ Muni Funds Average: $16,137
New Jersey Portfolio Class A at offering: $15,435
[THE FOLLOWING TABLE WAS DEPICTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL.]
New Jersey Portfolio Class A at offering Lipper NJ Muni Funds Average
- --------------------------------------------------------------------------------
9/30/93 $ 9,572 $10,000
9/30/94 $ 8,929 $ 9,582
9/30/95 $10,082 $10,532
9/30/96 $10,743 $11,112
9/30/97 $11,819 $12,048
9/30/98 $12,807 $13,035
9/30/99 $12,770 $12,737
9/30/00 $13,449 $13,344
9/30/01 $14,435 $14,598
9/30/02 $15,074 $15,660
9/30/03 $15,435 $16,137
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6 o AllianceBernstein Municipal Income Fund II
PERFORMANCE UPDATE
ALLIANCEBERNSTEIN MUNICIPAL INCOME FUND II
GROWTH OF A $10,000 INVESTMENT
Ohio Portfolio
9/30/93-9/30/03
Ohio Portfolio Class A at NAV: $16,783
Lipper OH Muni Funds Average: $16,392
Ohio Portfolio Class A at offering: $16,062
[THE FOLLOWING TABLE WAS DEPICTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL.]
Ohio Portfolio Class A at offering Lipper OH Muni Funds Average
- --------------------------------------------------------------------------------
9/30/93 $ 9,571 $10,000
9/30/94 $ 8,955 $ 9,630
9/30/95 $ 9,996 $10,597
9/30/96 $10,668 $11,204
9/30/97 $11,905 $12,143
9/30/98 $12,894 $13,106
9/30/99 $12,804 $12,858
9/30/00 $13,386 $13,483
9/30/01 $14,463 $14,737
9/30/02 $15,268 $15,871
9/30/03 $16,062 $16,392
ALLIANCEBERNSTEIN MUNICIPAL INCOME FUND II
GROWTH OF A $10,000 INVESTMENT
Pennsylvania Portfolio
9/30/93-9/30/03
Pennsylvania Portfolio Class A at NAV: $17,461
Pennsylvania Portfolio Class A at offering: $16,726
Lipper PA Muni Funds Average: $16,268
[THE FOLLOWING TABLE WAS DEPICTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL.]
Pennsylvania Portfolio Class A at offering Lipper PA Muni Funds Average
- --------------------------------------------------------------------------------
9/30/93 $ 9,579 $10,000
9/30/94 $ 9,099 $ 9,628
9/30/95 $10,148 $10,564
9/30/96 $10,977 $11,202
9/30/97 $12,168 $12,144
9/30/98 $13,229 $13,103
9/30/99 $12,907 $12,767
9/30/00 $13,598 $13,356
9/30/01 $15,109 $14,635
9/30/02 $16,148 $15,762
9/30/03 $16,726 $16,268
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AllianceBernstein Municipal Income Fund II o 7
PERFORMANCE UPDATE
ALLIANCEBERNSTEIN MUNICIPAL INCOME FUND II
GROWTH OF A $10,000 INVESTMENT
Virginia Portfolio
4/24/94-9/30/03
Virginia Portfolio Class A at NAV: $18,863
Virginia Portfolio Class A at offering: $18,068
Lipper VA Muni Funds Average: $16,967
[THE FOLLOWING TABLE WAS DEPICTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL.]
Virginia Portfolio Class A at offering Lipper VA Muni Funds Average
- --------------------------------------------------------------------------------
4/24/94 $ 9,579 $10,000
9/30/94 $ 9,510 $10,031
9/30/95 $10,695 $11,051
9/30/96 $11,699 $11,697
9/30/97 $13,024 $12,678
9/30/98 $14,280 $13,723
9/30/99 $14,123 $13,419
9/30/00 $14,954 $14,066
9/30/01 $16,048 $15,302
9/30/02 $17,263 $16,473
9/30/03 $18,068 $16,967
Each chart illustrates the total value of an assumed $10,000 investment in each
of AllianceBernstein Municipal Income Fund II's Class A shares (since each
Portfolio's inception date through 9/30/03 if the Portfolio is less than 10
years old). Returns do not reflect the deduction of taxes that a shareholder
would pay on fund distributions or the redemption of fund shares. The charts
reflect the deduction of the maximum 4.25% sales charges from initial $10,000
investments in the Portfolios and assume the reinvestment of dividends and
capital gains. Performance at net asset value (NAV) does not reflect sales
charges, which reduce total return figures. Performance for Class B and Class C
shares will vary from the results shown in these illustrations 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 Lipper Arizona Municipal Debt Funds Average reflects performance of 36
funds; the Lipper Florida Municipal Debt Funds Average reflects performance of
62 funds; the Lipper Massachusetts Municipal Debt Funds Average reflects
performance of 52 funds; the Lipper Michigan Municipal Debt Funds Average
reflects performance of 39 funds; the Lipper Minnesota Municipal Debt Funds
Average reflects performance of 49 funds; the Lipper New Jersey Municipal Debt
Funds Average reflects performance of 55 funds; the Lipper Ohio Municipal Debt
Funds Average reflects performance of 43 funds; the Lipper Pennsylvania
Municipal Debt Funds Average reflects performance of 62 funds; and the Lipper
Virginia Municipal Debt Funds Average reflects performance of 35 funds. The
funds tracked by Lipper Inc. have generally similar investment objectives to the
applicable AllianceBernstein Municipal Income Fund II Portfolios, although some
of the funds may have investment policies that are somewhat different than those
of AllianceBernstein Municipal Income Fund II.
When comparing an AllianceBernstein Municipal Income Fund II Portfolio to the
corresponding Lipper Average, you should note that no charges are reflected in
the performance of the Lipper Averages.
An investor cannot invest directly in an average, and its results are not
indicative of any specific investment, including AllianceBernstein Municipal
Income Fund II.
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8 o AllianceBernstein Municipal Income Fund II
INVESTMENT RESULTS
Average Annual Returns as of September 30, 2003
AllianceBernstein Municipal Income Fund II
Investment Results
- --------------------------------------------------------------------------------
NAV and SEC Returns
- --------------------------------------------------------------------------------
Without Sales Charge With Sales Charge
- --------------------------------------------------------------------------------
Since Since
1 Year 5 Years Inception 1 Year 5 Years Inception
- --------------------------------------------------------------------------------
Arizona Portfolio
Class A 2.35% 4.74% 6.58% -2.01% 3.83% 6.09%
Class B 1.62% 4.01% 6.10% -1.31% 4.01% 6.10%
Class C 1.62% 4.01% 5.85% 0.64% 4.01% 5.85%
Florida Portfolio
Class A 3.54% 4.77% 5.80% -0.87% 3.85% 5.35%
Class B 2.82% 4.05% 5.35% -0.13% 4.05% 5.35%
Class C 2.82% 4.05% 5.05% 1.83% 4.05% 5.05%
Massachusetts Portfolio
Class A 2.39% 4.22% 6.91% -1.95% 3.31% 6.43%
Class B 1.76% 3.51% 6.46% -1.17% 3.51% 6.46%
Class C 1.76% 3.51% 6.18% 0.79% 3.51% 6.18%
Michigan Portfolio
Class A 2.66% 5.35% 6.75% -1.67% 4.44% 6.27%
Class B 1.95% 4.62% 6.28% -0.99% 4.62% 6.28%
Class C 1.95% 4.62% 6.00% 0.97% 4.62% 6.00%
Minnesota Portfolio
Class A 3.05% 5.05% 5.65% -1.35% 4.15% 5.21%
Class B 2.34% 4.32% 5.19% -0.61% 4.32% 5.19%
Class C 2.34% 4.34% 4.90% 1.35% 4.34% 4.90%
New Jersey Portfolio
Class A 2.39% 3.80% 5.21% -2.01% 2.91% 4.77%
Class B 1.56% 3.06% 4.76% -1.37% 3.06% 4.76%
Class C 1.66% 3.08% 4.46% 0.68% 3.08% 4.46%
Ohio Portfolio
Class A 5.20% 4.49% 5.59% 0.77% 3.60% 5.15%
Class B 4.37% 3.75% 5.13% 1.37% 3.75% 5.13%
Class C 4.47% 3.77% 4.84% 3.47% 3.77% 4.84%
Pennsylvania Portfolio
Class A 3.57% 4.80% 5.99% -0.83% 3.90% 5.55%
Class B 2.84% 4.07% 5.55% -0.12% 4.07% 5.55%
Class C 2.84% 4.07% 5.24% 1.85% 4.07% 5.24%
Virginia Portfolio
Class A 4.66% 4.82% 6.97% 0.19% 3.91% 6.48%
Class B 3.94% 4.11% 6.50% 0.95% 4.11% 6.50%
Class C 3.94% 4.11% 6.24% 2.95% 4.11% 6.24%
Each Portfolio's investment results represent average annual returns. 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 shares or applicable contingent deferred sales charge
for Class B shares (3% year 1, 2% year 2, 1% year 3, 0% year 4); and for Class C
shares (1% year 1). Returns for Class A shares do not reflect the imposition of
the 1%, year 1 contingent deferred sales charge for accounts over $1,000,000.
Price fluctuation may be caused by changes in the general level of interest
rates or changes in bond credit quality ratings. Changes in interest rates have
a greater effect on bonds with longer maturities than on those with shorter
maturities.
Past performance is not indicative of 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.
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AllianceBernstein Municipal Income Fund II o 9
INVESTMENT RESULTS
As of September 30, 2003
ALLIANCEBERNSTEIN MUNICIPAL INCOME FUND II
- --------------------------------------------------------------------------------
30-Day Taxable Equivalent Yield in
SEC Yield* 33% Tax Bracket (at NAV)**
- --------------------------------------------------------------------------------
Arizona Portfolio
Class A 4.47% 7.03%
Class B 3.99% 6.27%
Class C 3.99% 6.27%
Florida Portfolio
Class A 4.31% 6.43%
Class B 3.80% 5.67%
Class C 3.80% 5.67%
Massachusetts Portfolio
Class A 4.15% 6.54%
Class B 3.65% 5.75%
Class C 3.65% 5.75%
Michigan Portfolio
Class A 4.22% 6.57%
Class B 3.72% 5.79%
Class C 3.72% 5.79%
Minnesota Portfolio
Class A 3.53% 5.72%
Class B 2.99% 4.84%
Class C 2.99% 4.84%
New Jersey Portfolio
Class A 4.12% 6.57%
Class B 3.61% 5.75%
Class C 3.60% 5.74%
Ohio Portfolio
Class A 3.72% 5.97%
Class B 3.20% 5.14%
Class C 3.20% 5.14%
Pennsylvania Portfolio
Class A 4.41% 6.77%
Class B 3.91% 6.00%
Class C 3.91% 6.00%
Virginia Portfolio
Class A 4.37% 6.92%
Class B 3.89% 6.16%
Class C 3.89% 6.16%
* SEC yields are based on SEC guidelines and are calculated on 30 days ended
September 30, 2003.
** The taxable-equivalent yield is based on NAV and a 33% marginal Federal
income tax rate and maximum state, city and local taxes where applicable.
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10 o AllianceBernstein Municipal Income Fund II
ARIZONA PORTFOLIO
PORTFOLIO OF INVESTMENTS
September 30, 2003
Standard Principal
& Poor's Amount
Ratings(a) (000) Value
- --------------------------------------------------------------------------------
MUNICIPAL BONDS-97.9%
Long-Term Municipal Bonds-97.9%
Arizona-77.8%
AAA Arizona School Brd Fac Rev
Ser 01
5.00%, 7/01/19.............................. $ 7,230 $ 7,642,832
Aaa Arizona Student Loan Auth
(Student Loan Rev) Ser 99B-1 AMT
5.90%, 5/01/24(b)........................... 1,500 1,586,700
Aaa Arizona Tourism & Sports Auth
(Multipurpose Stadium Fac) MBIA Ser 03
5.00%, 7/01/31(b)........................... 1,000 1,024,740
NR Dove Mtn Resort Cmnty Fac Dist
Ser 01
6.75%, 12/01/16............................. 6,200 6,435,104
NR Estrella Mtn Ranch Cmnty Fac Dist
(Golf Village) Ser 01A
7.875%, 7/01/25............................. 7,804 8,446,971
NR Estrella Mtn Ranch Cmty Fac Dist
(Desert Village)
7.375%, 7/01/27............................. 2,000 2,022,540
NR Gilbert Utility Rev
(Municipal Prop Corp) Ser 01
6.40%, 4/01/16.............................. 1,500 1,504,965
BBB+ Glendale Ind Dev Auth Ed Fac
(Midwestern Univ) Ser 01A
5.875%, 5/15/31............................. 3,770 3,923,439
AAA Glendale Ind Dev Auth Ed Fac
(Midwestern Univ) CONNIE LEE Ser 96A
6.00%, 5/15/26.............................. 475 525,873
AAA Glendale Ind Muni Corp Excise Tax Rev
AMBAC Ser 02A
5.00%, 7/01/33.............................. 5,000 5,127,650
NR Goodyear Cmnty Fac Dist
(Palm Valley) Ser 96C
7.25%, 7/01/16.............................. 4,157 4,424,711
NR Goodyear IDA Water & Sewer Rev
(Litchfield Pk Svc Proj) Ser 99 AMT
5.95%, 10/01/23............................. 3,160 3,228,762
NR Hassayampa Cmnty Fac Dist
Ser 96
7.75%, 7/01/21.............................. 5,935 6,366,890
NR Hassayampa Cmnty Fac Dist 112
(Forest Ridge Estates) Ser 00
7.50%, 7/01/24.............................. 955 1,051,847
AAA Maricopa Cnty Hosp Rev
(Catholic Healthcare Center) MBIA Ser 93
10.01%, 7/01/13(c).......................... 2,700 2,820,690
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AllianceBernstein Municipal Income Fund II o 11
Standard Principal
& Poor's Amount
Ratings(a) (000) Value
- --------------------------------------------------------------------------------
Aaa Maricopa Cnty IDA MFHR
(Syl-Mar Apts Proj) GNMA Ser 01 AMT
6.10%, 4/20/36(b)........................... $ 2,470 $ 2,659,251
AAA Maricopa Cnty MFHR
(Tierra Antigua Proj)
AMBAC Ser 01A-1 AMT
5.40%, 6/01/34.............................. 2,765 2,814,079
AAA Maricopa Cnty Sch Dist No. 28
(Kyrene Elem) FGIC Ser 95B
6.00%, 7/01/14.............................. 2,000 2,075,480
AAA Maricopa Cnty SFMR
(Mortgage Rev)
GNMA/FNMA/FHLMC AMT
Ser 00-1C
6.25%, 12/01/30............................. 945 972,509
Ser 01
5.625%, 3/01/33............................. 1,655 1,677,491
Ser 02-B1
6.20%, 3/01/34.............................. 1,950 2,161,166
BBB Maricopa Cnty Util Rev
(Citizens Utilities) Ser 95 AMT
6.20%, 5/01/30.............................. 4,550 4,576,117
AAA Mesa Cnty IDA Hlth Fac
(Discovery Hlth Sys) MBIA Ser 99A
5.75%, 1/01/25(d)........................... 15,000 16,285,349
AAA Mohave Cnty IDA MFHR
(Chris & Silver Ridge) GNMA Ser 96
6.375%, 11/01/31............................ 1,000 1,064,010
AAA Northern Arizona University Rev
FGIC Ser 02
5.00%, 6/01/34.............................. 1,250 1,278,138
AAA Phoenix Airport Rev
FGIC Ser 02B AMT
5.75%, 7/01/15.............................. 1,000 1,121,720
A3 Phoenix Hlth Facs Auth Hosp Rev
(Children's Hospital) Ser 02A
6.00%, 2/15/32(b)........................... 6,700 5,015,955
AA Phoenix IDA MFHR
(Woodstone & Silver Springs)
Asset Gty Ser 93
6.25%, 4/01/23.............................. 3,000 3,043,890
AAA Phoenix IDA SFMR
(Mortgage Rev), GNMA Ser 02A-1 AMT
5.75%, 9/01/33(e)........................... 965 992,039
AAA Pima Cnty IDA MFHR
(La Hacienda) GNMA Ser 99
7.00%, 12/20/31............................. 1,290 1,404,875
- -------------------------------------------------------------------------------
12 o AllianceBernstein Municipal Income Fund II
Standard Principal
& Poor's Amount
Ratings(a) (000) Value
- --------------------------------------------------------------------------------
AAA Pima Cnty IDA SFMR
(Mortgage Rev) GNMA/FNMA AMT
Ser 99B-1
6.10%, 5/01/31.............................. $ 1,155 $ 1,214,448
Ser 01A-1
5.35%, 11/01/24............................. 320 327,386
B+ Pima Cnty IDR
(Tuscon Electric Pwr) Ser 97B
6.00%, 9/01/29.............................. 1,750 1,628,533
AAA Pinal Cnty Prop Corp.
AMBAC Ser 01
5.125%, 6/01/21............................. 1,000 1,059,070
NR Pronghorn Ranch Cmnty Fac Dist
Ser 01
7.00%, 7/15/27.............................. 2,000 2,050,000
AA Salt River Elec Sys Rev
(Salt River Proj) Ser 02B
5.00%, 1/01/31.............................. 4,000 4,064,840
BBB+ Scottsdale IDA Hosp Rev
(Scottsdale Healthcare) Ser 01
5.80%, 12/01/31............................. 5,900 6,146,207
A Show Low Assessment Dist 14 6
(Torreon) ACA Ser 00
6.00%, 1/01/18.............................. 1,000 1,103,590
AAA South Campus Group LLC
(Univ of AZStudent Hsg) MBIA
5.625%, 9/01/23............................. 640 710,547
5.625%, 9/01/28............................. 1,250 1,368,725
NR Stoneridge Cmnty Fac Dist
Ser 01
6.75%, 7/15/26.............................. 7,500 7,708,799
NR Sundance Cmnty Fac Dist
Ser 02
7.75%, 7/01/22.............................. 3,000 3,008,880
Aaa Tolleson IDA MFHR
(Copper Cove) GNMA Ser 01A AMT
5.50%, 11/20/41(b).......................... 5,825 5,968,645
AAA Tucson & Pima Hsg Fin Auth SFMR
(Mortgage Rev)
GNMA/FNMA Ser 02A AMT
5.50%, 1/01/35.............................. 1,420 1,455,784
AAA Tucson Airport Auth Rev
AMBAC Ser 01 AMT
5.35%, 6/01/31.............................. 6,575 6,753,182
AAA Tucson Higher Ed
(University Arizona) AMBAC Ser 02A
5.00%, 7/15/32.............................. 1,000 1,023,480
AAA Tuscon & Pima Cnty IDA SFMR
(Mortgage Rev) GNMA Ser 01 AMT
6.35%, 1/01/34.............................. 4,265 4,463,621
- --------------------------------------------------------------------------------
AllianceBernstein Municipal Income Fund II o 13
Standard Principal
& Poor's Amount
Ratings(a) (000) Value
- --------------------------------------------------------------------------------
AAA University of Arizona Higher Ed
FGIC Ser 03
5.00%, 6/01/21.............................. $ 2,385 $ 2,515,722
5.00%, 6/01/22.............................. 2,650 2,776,008
NR Village at Litchfield Park Cmnty Fac Dist
(Litchfield Pk Svc Proj) Ser 01
6.375%, 7/15/26............................. 3,250 3,308,598
NR Vistancia Cmnty Fac Dist Ser 02
6.75%, 7/15/22.............................. 2,000 2,020,820
AA Yavapai Cnty Hosp Rev
(Regional Medical Center) Ser 03A
5.25%, 8/01/21 RADIAN....................... 4,000 4,187,320
------------
168,139,988
------------
Alabama-1.0%
AAA Birmingham Water & Sewer Rev
MBIA Ser 02B
5.25%, 1/01/33.............................. 2,000 2,083,080
------------
Florida-2.9%
NR Double Branch Cmnty Dev Dist
(Oakleaf Village) Ser 02A
6.70%, 5/01/34.............................. 1,000 1,033,520
NR Fiddler's Creek CDD Ser 99B
5.80%, 5/01/21(f)........................... 5,320 5,351,441
------------
6,384,961
------------
Michigan-1.3%
AAA Michigan Muni Bond Auth
(Drinking Water) Ser 02
5.25%, 10/01/11............................. 2,500 2,862,775
------------
New Jersey-1.0%
BBB New Jersey Tobacco Settlement Rev
Ser 03
6.75%, 6/01/39.............................. 2,500 2,253,600
------------
Puerto Rico-11.9%
AAA Puerto Rico Elec Pwr Auth
XLCA Ser 02-1
5.25%, 7/01/22.............................. 8,000 8,605,839
AAA Puerto Rico GO
FGIC Ser 02A
5.00%, 7/01/32............................. 5,000 5,113,400
AAA Puerto Rico Hsg Fin Corp SFMR
(Mortgage Rev) GNMA Ser 98A AMT
5.20%, 12/01/32............................. 5,145 5,251,553
AAA Puerto Rico Hwy & Trans Auth Rev
FSA Ser 02D
5.00%, 7/01/32.............................. 3,400 3,479,560
- -------------------------------------------------------------------------------
14 o AllianceBernstein Municipal Income Fund II
Standard Principal
& Poor's Amount
Ratings(a) (000) Value
- --------------------------------------------------------------------------------
AA Puerto Rico Hlth Fac
(Ascension Health) Ser 00A
6.125%, 11/15/30............................ $ 1,500 $ 1,646,340
BBB Puerto Rico Tobacco Settlement Rev
(Childrens Trust Fund) Ser 02
5.625%, 5/15/43............................. 1,800 1,554,246
------------
25,650,938
------------
Rhode Island-0.7%
BBB Rhode Island Tobacco Settlement Rev
Ser 02A
6.25%, 6/01/42.............................. 795 657,393
BBB Tobacco Settlement Rev
Ser 02A
6.125%, 6/01/32............................. 950 796,822
------------
1,454,215
------------
Texas-0.9%
AAA Texas Turnpike Auth Rev
AMBAC Ser 02A
5.50%, 8/15/39.............................. 1,750 1,849,155
------------
Washington-0.4%
BBB Washington Tobacco Settlement Rev
Ser 02
6.50%, 6/01/26.............................. 1,050 952,088
------------
Total Municipal Bonds
(cost $206,475,668)......................... 211,630,800
Total Investments-97.9%
(cost $206,475,668)....................... 211,630,800
Other assets less liabilities-2.1%......... 4,457,696
-------------
Net Assets-100%............................. $ 216,088,496
=============
- --------------------------------------------------------------------------------
AllianceBernstein Municipal Income Fund II o 15
FINANCIAL FUTURES CONTRACTS (see Note D)
Value at Unrealized
Number of Expiration Original Sept. 30, Appreciation/
Type Contracts Position Month Value 2003 (Depreciation)
- --------- --------- -------- ----------- --------- -------- --------------
Interest Rate
10 Yr Swap December
Futures 25 Short 2003 $2,712,406 $2,806,250 $(93,844)
10 Yr Treasury December
Note Futures 12 Long 2003 1,326,178 1,375,500 49,322
-------
$44,522
-------
See footnote summary on page 58.
See Glossary of Terms on page 58.
See notes to financial statements.
- --------------------------------------------------------------------------------
16 o AllianceBernstein Municipal Income Fund II
FLORIDA PORTFOLIO
PORTFOLIO OF INVESTMENTS
September 30, 2003
Standard Principal
& Poor's Amount
Ratings(a) (000) Value
- --------------------------------------------------------------------------------
MUNICIPAL BONDS-97.3%
Long-Term Municipal Bonds-94.1%
Florida-87.7%
NR Beacon Tradeport CDD
Comm Fac Ser 02B
7.25%, 5/01/33.............................. $ 2,410 $ 2,481,698
NR Bonnet Creek Resort CDD
Comm Fac Ser 02
7.25%, 5/01/18.............................. 2,000 2,080,260
Aaa Brevard Cnty Hsg Fin Auth SFMR
(Mortgage Rev) FHA Ser 94 AMT
6.70%, 9/01/27(b)........................... 580 602,365
AAA Broward County COP
MBIA Ser 03
5.00%, 7/01/28.............................. 3,000 3,046,050
Baa3 Capital Trust Agency Arpt Fac
(Cargo Acq Grp) Ser 03 AMT
5.75%, 1/01/32(b)........................... 2,000 1,860,420
Baa3 Capital Trust Agy Arpt Fac
(Cargo Acq Grp) Ser 02 AMT
6.25%, 1/01/19(b)........................... 500 498,480
NR Crossings at Fleming Island CDD
(Eagle Harbor) Ser 00C
7.10%, 5/01/30.............................. 2,240 2,356,144
A Dade Cnty Hsg Fin Auth MFHR
(Golden Lakes Apts) Ser 97A AMT
6.00%, 11/01/32(f).......................... 250 255,595
6.05%, 11/01/39(f).......................... 750 776,115
AAA Escambia Cnty Hsg Fin Auth SFMR
(Mortgage Rev) GNMA Ser 95B AMT
6.25%, 4/01/28.............................. 9,000 9,427,499
Baa2 Escambia Cnty PCR
(Champion Int'l Corp) Ser 96 AMT
6.40%, 9/01/30(b)........................... 5,000 5,193,250
AAA Florida Hsg Fin Agy MFHR
(Turtle Creek Apts)
AMBAC Ser 96C AMT
6.20%, 5/01/36.............................. 3,245 3,395,081
AAA Florida Hsg Fin Agy SFMR
(Mortgage Rev) Ser 95A AMT
6.65%, 1/01/24.............................. 3,625 3,753,144
Aaa Florida Hsg Fin Corp MFHR
(Cobblestone Apts)
GNMA Ser 00K-1 AMT
6.10%, 6/01/42(b)........................... 7,880 8,361,546
AAA Florida Hsg Fin Corp MFHR
(Logans Pointe Apts) FSA Ser 99 AMT
6.00%, 6/01/39.............................. 5,080 5,348,681
- --------------------------------------------------------------------------------
AllianceBernstein Municipal Income Fund II o 17
Standard Principal
& Poor's Amount
Ratings(a) (000) Value
- --------------------------------------------------------------------------------
AAA Florida Hsg Fin Corp MFHR
(Mystic Pointe II) GNMA Ser 00 AMT
6.30%, 12/01/41............................. $ 1,165 $ 1,251,455
AAA Florida Hsg Fin Corp MFHR
(Raintree Apts) GNMA Ser 00 AMT
6.05%, 3/01/42.............................. 5,885 6,216,326
AAA Florida Hsg Fin Corp MFHR
(Sabal Chase Apts) FSA Ser 00 AMT
6.00%, 5/01/40.............................. 3,650 3,842,793
A Florida Hsg Fin Corp MFHR
(Spring Harbor Apts) Ser 99C-1 AMT
5.90%, 8/01/39.............................. 2,540 2,634,082
AAA Florida Hsg Fin Corp MFHR
(Walker Ave Club) FSA Ser 00L-1 AMT
6.00%, 12/01/38............................. 3,435 3,611,937
AAA Florida Hsg Fin Corp MFHR
(Waverly Apts) FSA Ser 00C-1 AMT
6.50%, 7/01/40.............................. 2,790 3,013,563
NR Gateway CDD
(Sun City Crt-Fort Meyers)
5.50%, 5/01/10.............................. 1,000 1,000,720
AAA Greater Orlando Aviation Arpt Fac
(Orlando Airport) FSA Ser 02A
5.125%, 10/01/32............................ 2,530 2,589,480
NR Hamal CDD
6.65%, 5/01/21.............................. 1,100 1,137,422
NR Herons Glen Recreation District
Comm Fac Dist Ser 99
5.90%, 5/01/19.............................. 2,680 2,725,051
A- Highlands Cnty Hlth Facs Auth Rev
(Adventist/Sunbelt Hosp) Ser 01A
6.00%, 11/15/31............................. 2,000 2,113,820
AAA Hillsborough Cnty Arpt Auth
(Tampa Int'l Arpt) FGIC Ser 96A AMT
6.00%, 10/01/23............................. 1,500 1,624,275
Aaa Jacksonville Cap Impt Rev
AMBAC Ser 02A
5.00%, 10/01/30(b).......................... 2,500 2,538,000
AAA Jacksonville Electrical Auth
Water & Sewer Rev MBIA Ser 02A
5.50%, 10/01/41............................. 5,000 5,111,350
AA Jacksonville Electrical Auth
Series 02A
5.50%, 10/01/41............................. 3,750 3,849,863
A+ Jacksonville Electrical Auth
Water & Sewer Rev Ser 02C
5.00%, 10/01/41............................. 2,000 2,001,420
AAA Jacksonville Electrical Auth
Excise Taxes Rev AMBAC Ser 02B
5.00%, 10/01/26............................. 4,925 5,014,241
- --------------------------------------------------------------------------------
18 o AllianceBernstein Municipal Income Fund II
Standard Principal
& Poor's Amount
Ratings(a) (000) Value
- --------------------------------------------------------------------------------
AA- Lakeland Water Sys
Water & Wastewater Rev Ser 02
5.25%, 10/01/32............................. $10,000 $ 10,355,099
AAA Lee Cnty Arpt Rev
(Southwest Int'l Arpt) FSA Ser 00A AMT
6.00%, 10/01/32............................. 23,000 24,888,069
BBB- Lee Cnty Hlth Facs Auth Rev
(Shell Point) Ser 99A
5.50%, 11/15/29............................. 2,000 1,866,280
Aaa Manatee Cnty Hsg Fin Agy SFMR
(Mortgage Rev) GNMA/FNMA
Ser 96-1 AMT
5.625%, 11/01/14(b)......................... 150 151,562
Aaa Manatee Cnty Hsg Fin Auth SFMR
(Mortgage Rev) GNMA Ser 99 AMT
6.25%, 11/01/28(b).......................... 2,110 2,296,630
NR Marshall Creek CDD
Asseses Dist Ser 02A
6.625%, 5/01/32............................. 1,000 1,012,440
BB Miami Beach Health Facs Auth Rev
(Mt Sinai Med Ctr) Ser 01A
6.80%, 11/15/31............................. 4,100 3,842,274
A Miami-Dade Cnty Hsg Fin Agy MFHR
(Cntry Club Villas Apts) Ser 99A AMT
6.20%, 10/01/39............................. 5,145 5,402,404
Aaa Miami-Dade Cnty Hsg Fin Agy SFMR
(Mortgage Rev) GNMA/FNMA AMT
6.00%, 10/01/32(b).......................... 2,250 2,356,065
AAA Miami-Dade Cnty Hsg Fin Auth MFHR
(Marbrisa Apts) FSA Ser 00-2A AMT
6.15%, 8/01/38.............................. 1,515 1,629,837
NR Miromar Lakes CDD
Ser 00A
7.375%, 5/01/32............................. 6,410 6,661,272
7.25%, 5/01/12.............................. 6,170 6,396,377
A- North Broward Hosp Rev
Ser 01
6.00%, 1/15/31.............................. 3,200 3,330,912
Aa2 North Miami Hlth Facs Auth Rev
(Catholic Hlth Svcs Oblig Grp) Ser 96
6.00%, 8/15/24(b)........................... 1,200 1,251,708
NR Northern Palm Beach Cnty Impt Dist
(Unit Development 27B) Ser 02
6.40%, 8/01/32.............................. 1,135 1,146,293
NR Northern Palm Beach Cnty Impt Dist
(Mirasol Unit 2143)
6.10%, 8/01/21.............................. 750 768,945
6.125%, 8/01/31............................. 1,000 1,013,840
A- Orange Cnty Hospital Rev
(Orlando Regional) Ser 02
5.75%, 12/01/32............................. 1,320 1,355,812
- --------------------------------------------------------------------------------
AllianceBernstein Municipal Income Fund II o 19
Standard Principal
& Poor's Amount
Ratings(a) (000) Value
- --------------------------------------------------------------------------------
A3 Orange Cnty Hsg Fin Auth MFHR
(Loma Vista Proj) Ser 99G AMT
5.50%, 3/01/32(b)........................... $ 6,500 $ 6,282,315
AA Orange County Hlth Facs Auth Rev
(Mayflower Retirement Proj) Asset Gty Ser 99
5.25%, 6/01/29.............................. 1,060 1,072,582
AA- Orlando Util Cmnty Wtr & Elec Rev
Ser 02C
5.00%, 10/01/27............................. 7,000 7,116,620
A Palm Beach Cnty IDR
(Lourdes-McKeen Residence) Ser 96
Prerefunded 12/01/06 @ 102
6.625%, 12/01/26............................ 4,000 4,713,640
AAA Palm Beach Cnty Sch Brd COP
FSA Ser 02D
5.00%, 8/01/28.............................. 5,500 5,578,045
Aaa Pinellas Cnty Hsg Fin Auth SFMR
(Mortgage Rev) GNMA Ser 94A AMT
6.55%, 8/01/27(b)........................... 2,725 2,805,742
NR Preserve at Wilderness Lake
Comm Fac Ser 02A
7.10%, 5/01/33.............................. 1,250 1,312,938
A+ South Miami Health Facs Hosp Rev
(Baptist Health)
5.25%, 11/15/33............................. 2,000 2,026,340
Aaa St. Johns CDD
(Julington Creek Plantation) Ser 97
7.125%, 5/01/19(b).......................... 7,725 9,312,950
NR Sumter Cnty IDA
(North Sumter Utility Co) Ser 02 AMT
6.80%, 10/01/32............................. 1,000 1,007,310
Baa2 Tallahassee Hosp Rev
(Tallahassee Memorial) Ser 00
6.375%, 12/01/30(b)......................... 4,500 4,472,505
AA Tampa Higher Ed
(Tampa University Proj) RADIAN Ser 02
5.625%, 4/01/32............................. 3,175 3,344,640
AAA Village Ctr CDD
5.125%, 10/01/28............................ 1,000 1,021,510
Baa3 Volusia Cnty Ed Fac Auth
(Embry Riddle Aero Univ)
Ser 96A
6.125, 10/15/26(b).......................... 925 936,729
Baa3 Volusia Cnty Ed Fac Auth
(Embry Riddle Aero Univ) Ser 99A
5.75%, 10/15/29(b).......................... 2,000 1,884,400
NR Waterlefe CDD Ser 01
6.95%, 5/01/31.............................. 740 773,241
-------------
229,099,452
-------------
- --------------------------------------------------------------------------------
20 o AllianceBernstein Municipal Income Fund II
Standard Principal
& Poor's Amount
Ratings(a) (000) Value
- --------------------------------------------------------------------------------
California-2.0%
BBB California State GO
5.00%, 2/01/32.............................. $ 2,850 $ 2,752,274
5.00%, 2/01/33.............................. 1,000 964,170
AAA California State GO
XLCA Ser 02
5.00%, 10/01/28............................. 1,250 1,260,813
BBB Golden St Tobacco Securitization Corp.
Ser 03 -A-1
6.75%, 6/01/39.............................. 500 447,920
-------------
5,425,177
-------------
Massachusetts-0.5%
AAA Massachusetts GO
FGIC Ser 02C
5.50%, 11/01/13............................. 1,050 1,214,451
-------------
New Jersey-0.4%
BBB New Jersey Tobacco Settlement Rev
Ser 02
5.75%, 6/01/32.............................. 1,250 1,071,350
-------------
New York-0.5%
NR New York State Dorm Auth Revs
RADIAN Ser 03
17.936%, 7/01/14(c)......................... 190 281,854
17.936%, 7/1/15(c).......................... 231 333,998
17.936%, 7/01/16(c)......................... 228 321,179
17.936%, 7/01/17(c)......................... 257 361,167
-------------
1,298,198
-------------
Ohio-1.2%
NR Cleveland Cuyahoga Port Auth
Ser 01
7.35%, 12/01/31............................. 3,000 3,108,120
-------------
Rhode Island-0.3%
BBB Rhode Island Tobacco Settlement Rev
Ser 02A
6.125%, 6/01/32............................. 950 796,822
-------------
Texas-1.1%
AAA Dallas Fort Worth Texas Intl Arpt
MBIA-Ser 03A AMT
5.25%, 11/01/25............................. 3,000 3,056,310
-------------
- --------------------------------------------------------------------------------
AllianceBernstein Municipal Income Fund II o 21
Standard Principal
& Poor's Amount
Ratings(a) (000) Value
- --------------------------------------------------------------------------------
Washington-0.4%
BBB Washington Tobacco Settlement Rev
Ser 02
6.50%, 6/01/26.............................. $ 1,050 $ 952,088
-------------
Total Long-Term Municipal Bonds
(cost $235,500,111).................. 246,021,968
-------------
Short-Term Municipal Notes(g)-3.2%
Florida-1.0%
VMIG-1 University of Florida Athletic Assoc
(Univ Florida Stadium Project) Ser 90
1.23%, 2/01/20(b)........................... 2,500 2,500,000
-------------
Arizona-0.7%
A-1+ Pinal Cnty PCR
(Newmont)
1.20%, 12/01/09............................. 800 800,000
A-1+ Coconino Cnty PCR
(Arizona Public Service) AMT
1.25%, 11/01/33............................. 1,000 1,000,000
-------------
1,800,000
-------------
California-0.6%
A-1+ Los Angeles Department of
Water and Power
(Electric Plant Revenue Bonds)
Series 01B-3
1.18%, 7/01/34.............................. 1,450 1,450,000
-------------
Michigan-0.2%
VMIG-1 Michigan Higher Ed Facs Auth
(University of Detroit) Ser 03
1.21%, 11/01/17(f)(b)....................... 600 600,000
-------------
Minnesota-0.4%
A-1 Montrose Indl Dev Rev
(Lyman Lumber Co) AMT
1.30%, 5/01/26.............................. 500 500,000
A-1+ St. Paul Port Auth Dist
Ser 02 R AMT
1.30%, 3/01/22.............................. 500 500,000
-------------
1,000,000
-------------
New York-0.2%
A-1+ Port Authority NY & NJ
(Versatile Structure) Ser 95-3
1.20%, 6/01/20.............................. 500 500,000
-------------
- --------------------------------------------------------------------------------
22 o AllianceBernstein Municipal Income Fund II
Standard Principal
& Poor's Amount
Ratings(a) (000) Value
- --------------------------------------------------------------------------------
Texas-0.1%
A-1+ Lower Neches Valley TX
(Exxonmobil Proj) Ser 01A
1.10%, 11/01/29............................. $ 300 $ 300,000
------------
Total Short-Term Municpal Notes
(Cost $8,150,000).................... 8,150,000
------------
Total Investments-97.3%
(cost $243,650,111)................ 254,171,968
Other assets less liabilities-2.7%... 7,173,342
------------
Net Assets-100%...................... $261,345,310
============
FINANCIAL FUTURES CONTRACT (see Note D)
Value at
Number of Expiration Original Sept. 30, Unrealized
Type Contracts Position Month Value 2003 Depreciation
- --------- ---------- -------- ---------- -------- ---------- ------------
10 Yr Treasury December
Note Futures 19 Short 2003 $2,117,835 $2,177,874 $(60,039)
INTEREST RATE SWAP CONTRACT (see Note D)
Rate Type
-----------------------------
Payment Payment
Swap Notional Termination made by received by Unrealized
Counterparty Amount Date the Portfolio the Portfolio Depreciation
- ------------ -------- ----------- ------------- ------------- ------------
JP Morgan $900,000 11/01/13 5.26% 3 month LIBOR+ $(66,320)
+ LIBOR (London Interbank Offered Rate)
See footnote summary on page 58.
See Glossary of Terms on page 58.
See notes to financial statements.
- --------------------------------------------------------------------------------
AllianceBernstein Municipal Income Fund II o 23
MASSACHUSETTS PORTFOLIO
PORTFOLIO OF INVESTMENTS
September 30, 2003
Standard Principal
& Poor's Amount
Ratings(a) (000) Value
- --------------------------------------------------------------------------------
MUNICIPAL BONDS-101.9%
Long-Term Municipal Bonds-99.3%
Massachusetts-80.9%
BBB- Massachusetts Hlth Fac
(Boston Biomedical) Ser 99
5.75%, 2/01/29.............................. $ 1,800 $ 1,737,072
AAA Massachusetts Dev Fin Agy
(Deerfield Academy) Ser 03A
5.00%, 10/01/28............................. 3,340 3,387,896
A Massachusetts Hlth Fac
(Massachusetts Biomedical) Ser 00C
6.25%, 8/01/20.............................. 3,000 3,305,280
BBB Massachusetts Ed Fac
(Massachusetts College of Pharmacy)
Ser 99B
6.75%, 7/01/30.............................. 5,350 5,766,337
BBB Massachusetts Ed Fac
(Suffolk Univ) Ser 99
5.85%, 7/01/29.............................. 1,375 1,422,768
AA Massachusetts Dev Fin Agy
(Worcester Redev) Asset Gty Ser 99
5.25%, 6/01/19.............................. 2,350 2,498,943
6.00%, 6/01/24.............................. 1,300 1,435,993
AAA Massachusetts Ed Fin Auth
(Educational Loan) MBIA Ser 00G AMT
6.00%, 12/01/16............................. 1,745 1,884,914
AA- Massachusetts GO
Ser 02C
5.25%, 11/01/30............................. 5,000 5,156,350
AAA Massachusetts GO
FGIC Ser 02C
5.50%, 11/01/13............................. 500 578,310
AA Massachusetts Hlth & Ed Fac Auth
(Berkshire Healthcare) Asset Gty Ser 01E
5.70%, 10/01/25............................. 4,000 4,269,560
AAA Massachusetts Hlth & Ed Fac Auth
(Beth Israel) AMBAC Ser 92
10.823%, 7/01/25(c)......................... 2,000 2,051,760
AA Massachusetts Hlth & Ed Fac Auth
(Cape Cod Healthcare) Asset Gty Ser 01C
5.25%, 11/15/31............................. 8,000 8,118,719
A- Massachusetts Hlth & Ed Fac Auth
(Covenant Medical Center) Ser 02
6.00%, 7/01/31.............................. 3,500 3,635,310
AAA Massachusetts Hlth & Ed Fac Auth
(New England Med Ctr) FGIC Ser 02H
5.00%, 5/15/25.............................. 2,000 2,033,500
- --------------------------------------------------------------------------------
24 o AllianceBernstein Municipal Income Fund II
Standard Principal
& Poor's Amount
Ratings(a) (000) Value
- --------------------------------------------------------------------------------
AA- Massachusetts Hlth & Ed Fac Auth
(Partners Healthcare System) Ser 01C
5.75%, 7/01/32.............................. $ 5,000 $ 5,302,550
AA Massachusetts Hlth & Ed Fac Auth
(Springfield College) RADIAN Ser 03
5.125%, 10/15/23............................ 1,000 1,020,690
AAA Massachusetts Hlth & Ed Fac Auth
(University of Mass Proj) MBIA Ser 02C
5.25%, 10/01/31(d).......................... 7,440 7,687,678
BBB Massachusetts Hlth & Ed Fac Auth
(Winchester Hosp) Ser 00E
6.75%, 7/01/30.............................. 4,500 4,802,220
AA+ Massachusetts Hlth & Ed Facs Auth Rev
(Wellesley College)
5.00%, 7/01/33.............................. 5,255 5,311,176
AAA Massachusetts Hsg Fin Agy MFHR
(Harbor Point) AMBAC Ser 96A AMT
6.40%, 12/01/15............................. 4,880 5,202,129
AAA Massachusetts Hsg Fin Agy MFHR
(Mortgage Rev) AMBAC AMT
Ser 95E
6.00%, 7/01/37.............................. 2,680 2,776,748
Ser 00A
6.00%, 7/01/41.............................. 4,900 5,166,903
AAA Massachusetts Hsg Fin Agy MFHR
(Mortgage Rev) MBIA Ser 00H AMT
6.65%, 7/01/41.............................. 17,125 18,510,583
AAA Massachusetts Hsg Fin Agy SFMR
(Mortgage Rev) FSA Ser 73 AMT
5.90%, 12/01/23............................. 2,095 2,183,660
A+ Massachusetts Hsg Fin Agy SFMR
(Mortgage Rev) Ser 40 AMT
6.65%, 12/01/27............................. 4,525 4,698,308
AAA Massachusetts MFHR
(Heights Crossing) FHA Ser 95 AMT
6.15%, 2/01/35.............................. 7,000 7,324,240
AAA Massachusetts Port Auth
(US Air Proj) MBIA Ser 96A AMT
5.875%, 9/01/23............................. 7,500 7,916,175
AAA Massachusetts Port Auth Spec Fac
(Bosfuel Corp) MBIA Ser 97 AMT
6.00%, 7/01/36.............................. 7,135 7,783,143
AAA University of Massachusetts Hgr Ed
AMBAC Ser 1
5.25%, 11/01/23............................. 2,000 2,102,180
------------
135,071,095
------------
- --------------------------------------------------------------------------------
AllianceBernstein Municipal Income Fund II o 25
Standard Principal
& Poor's Amount
Ratings(a) (000) Value
- --------------------------------------------------------------------------------
Arizona-6.5%
NR Dove Mtn Resort Cmnty Fac Dist
Ser 01
6.75%, 12/01/16............................. $ 2,205 $ 2,288,614
NR Goodyear IDA Water & Sewer Rev
(Litchfield Pk Svc Proj) Ser 01 AMT
6.75%, 10/01/31............................. 5,160 5,366,399
NR Stoneridge Cmnty Fac Dist
Ser 01
6.75%, 7/15/26.............................. 3,115 3,201,722
------------
10,856,735
------------
California-0.7%
NR Roseville Cmnty Fac Dist
(Woodcreek East) Ser 00
6.375%, 9/01/27............................. 1,070 1,115,678
------------
Colorado-3.4%
Aaa Larimer Weld & Boulder Cnty
Sch Dist GO
FSA Ser 04A
5.00%, 12/15/05(b).......................... 4,015 4,201,778
5.00%, 12/15/08(b).......................... 1,430 1,573,057
------------
5,774,835
------------
Florida-1.1%
NR Crossings at Fleming Island CDD
(Eagle Harbor) Ser 00C
7.10%, 5/01/30.............................. 1,750 1,840,738
------------
Nevada-0.6%
NR Henderson Loc Impt Dist
No. T-14 Ser 03
5.80%, 3/01/23.............................. 1,000 974,950
------------
Puerto Rico-5.0%
AAA Puerto Rico Elec Pwr Auth
XLCA Ser 02-1
5.25%, 7/01/22.............................. 6,400 6,884,672
BBB Puerto Rico Tobacco Settlement Rev
(Childrens Trust Fund) Ser 02
5.625%, 5/15/43............................. 1,800 1,554,246
------------
8,438,918
------------
Rhode Island-0.5%
BBB Rhode Island Tobacco Settlement Rev
Ser 02A
6.125%, 6/01/32............................. 925 775,853
------------
- --------------------------------------------------------------------------------
26 o AllianceBernstein Municipal Income Fund II
Standard Principal
& Poor's Amount
Ratings(a) (000) Value
- --------------------------------------------------------------------------------
Washington-0.6%
BBB Washington Tobacco Settlement Rev
Ser 02
6.50%, 6/01/26.............................. $ 1,025 $ 929,419
------------
Total Long-Term Municipal Bonds
(cost $158,157,007).................. 165,778,221
------------
Short-Term Municipal Notes(g)-2.6%
Massachusetts-0.2%
A-1+ Massachusetts GO
(Central Artery/Ted Williams) Series 00A
1.20%, 12/01/30............................. 300 300,000
------------
California-1.4%
BBB California State Savr-Ars Ser 03D-3
1.30%, 5/01/33.............................. 2,425 2,425,000
------------
Indiana-0.4%
A-1+ Whiting Ind Environmental Fac
(Amoco Oil Proj) Ser 00
1.25%, 7/01/31.............................. 600 600,000
------------
Michigan-0.6%
A-1+ Michigan State Univ Rev
Ser 02A
1.20%, 8/15/32.............................. 1,000 1,000,000
------------
Total Short-Term Municipal Notes
(cost $4,325,000)......................... 4,325,000
------------
Total Investments-101.9%
(cost $162,482,007)................ 170,103,221
Other assets less liabilities-(1.9%). (3,240,471)
------------
Net Assets-100%............................ $166,862,750
============
- --------------------------------------------------------------------------------
AllianceBernstein Municipal Income Fund II o 27
FINANCIAL FUTURES CONTRACTS (see Note D)
Value at
Number of Expiration Original Sept. 30, Unrealized
Type Contracts Position Month Value 2003 Depreciation
- --------- ---------- -------- ---------- --------- --------- ------------
Interest Rate
10 Yr SWAP December
Futures 4 Short 2003 $ 433,985 $ 449,000 $(15,015)
5 Yr Treasury
Note Futures December
(CBT) 13 Short 2003 1,446,912 1,475,094 (28,182)
2 Yr Treasury
Note Futures December
(CBT) 18 Short 2003 3,858,401 3,880,687 (22,286)
--------
$(65,483)
--------
INTEREST RATE SWAP CONTRACTS (see Note D)
Rate Type
-----------------------------
Payment Payment
Swap Notional Termination made by received by Unrealized
Counterparty Amount Date the Portfolio the Portfolio Depreciation
- ------------ -------- ----------- ------------- ------------- ------------
JP Morgan $1,380,000 11/01/13 5.26% 3 month LIBOR+ $(101,691)
JP Morgan 5,445,000 9/17/04 Variable* 1.12% 1,308
---------
$(100,383)
---------
+ LIBOR (London Interbank Offered Rate)
* Variable interest based on the Municipal Swap Index, which fluctuates weekly.
See footnote summary on page 58.
See Glossary of Terms on page 58.
See notes to financial statements.
- --------------------------------------------------------------------------------
28 o AllianceBernstein Municipal Income Fund II
MICHIGAN PORTFOLIO
PORTFOLIO OF INVESTMENTS
September 30, 2003
Standard Principal
& Poor's Amount
Ratings(a) (000) Value
- --------------------------------------------------------------------------------
MUNICIPAL BONDS-98.2%
Long-Term Municipal Bonds-98.2%
Michigan-73.0%
Aaa Allen Park Pub Sch Dist
Ser 03
8.77%, 5/01/18(b)(c)........................ $ 6,400 $ 7,603,519
AAA Cedar Springs Pub Sch Dist
Ser 03
5.00%, 5/01/28.............................. 4,335 4,430,847
AAA Constantine Pub Sch Dist
Ser 02
5.00%, 5/01/29.............................. 2,065 2,101,117
AAA Detroit School Board
(School Board Loan Fund) FSA Ser 01A
5.125%, 5/01/31(d).......................... 2,900 2,953,273
AAA Detroit School Dist
FGIC Ser 02A
5.00%, 5/01/32.............................. 2,000 2,018,100
BB- Detroit Tax Increment
(Daimler/Chrysler Assembly Plant) Ser 98A
5.50%, 5/01/21.............................. 1,720 1,348,962
AAA Detroit Water Supply System
FGIC Ser 01B
5.50%, 7/01/33.............................. 3,550 3,826,581
Aaa Emmet Cnty Bldg Auth
AMBAC Ser 03
5.00%, 5/01/17(b)........................... 1,355 1,459,660
AAA Kalamazoo Hosp Fin Auth
(Borgess Med Ctr) FGIC Ser 94A
9.41%, 6/01/11(c)........................... 2,360 2,544,127
AAA Lansing Water & Elec System
FSA Ser 03A
5.00%, 7/01/25.............................. 2,200 2,240,634
BBB Michigan Higher Ed Fac
(Hope College) Ser 02A
5.90%, 4/01/32.............................. 3,465 3,627,405
AAA Michigan Higher Ed Student Loan Auth
AMBAC Ser 17G AMT
5.20%, 9/01/20.............................. 7,000 7,139,719
A+ Michigan Hosp Fin Auth Rev
(Crittenton Hospital) Ser 02A
5.625%, 3/01/27............................. 3,000 3,080,310
AA- Michigan Hosp Fin Auth Rev
(Trinity Health) Ser 00A
6.00%, 12/01/27............................. 5,485 5,911,623
AAA Michigan Hsg Dev Auth
AMBAC Ser 97A AMT
6.10%, 10/01/33............................. 7,400 7,739,881
- --------------------------------------------------------------------------------
AllianceBernstein Municipal Income Fund II o 29
Standard Principal
& Poor's Amount
Ratings(a) (000) Value
- --------------------------------------------------------------------------------
Aaa Michigan Hsg Dev Auth MFHR
(Arbor Pointe) GNMA Ser 99
5.40%, 6/20/40(b)........................... $ 1,810 $ 1,848,752
Aaa Michigan Hsg Dev Auth MFHR
(Casa De Rey) FNMA Ser 02 AMT
5.50%, 8/01/35(b)........................... 1,065 1,092,882
AAA Michigan Hsg Dev Auth MFHR
(Danbury Manor) FNMA Ser 02A AMT
5.30%, 6/01/35.............................. 2,575 2,644,731
Aaa Michigan Hsg Dev Auth MFHR
(Oakbrook Villa Proj) GNMA Ser 00A AMT
6.50%, 1/20/42(b)........................... 3,000 3,248,580
AAA Michigan Hsg Dev Auth MFHR
(Westchester Towers) FNMA Ser 01A AMT
5.70%, 2/01/34.............................. 2,580 2,691,430
Aaa Michigan Hsg Dev Auth MFHR
(Mortgage Rev) GNMA Ser 02A AMT
5.50%, 10/20/43(b).......................... 2,000 2,051,440
AAA Michigan Hsg Dev Auth SFMR
(Mortgage Rev) MBIA Ser 02B AMT
5.50%, 6/01/30.............................. 1,100 1,135,079
AAA Michigan Pub Pwr Agy Rev
(Belle River) MBIA Ser 02
14.32%, 7/01/11(c).......................... 1,200 1,728,072
AAA Michigan State
(Trunk Line Fund) FSA Ser 01A
5.25%, 11/01/30............................. 4,000 4,132,720
AAA Michigan Strategic Fund
(Detroit Edison) MBIA Ser 95AA
6.40%, 9/01/25.............................. 2,665 2,948,423
AAA Michigan Strategic Fund
(Detroit Edison) XLCA Ser 02C AMT
5.45%, 12/15/32............................. 3,000 3,107,310
AAA Michigan Strategic Fund Hlth Fac
(Autumn Wood) GNMA Ser 02A
5.20%, 12/20/22............................. 3,000 3,096,840
NR Michigan Strategic Fund Hlth Fac
(Holland Home) Ser 98
5.75%, 11/15/18............................. 1,000 1,001,080
5.75%, 11/15/28............................. 1,000 997,290
A- Michigan Strategic Fund
(Detroit Edison) Ser 01B AMT
5.65%, 9/01/29.............................. 2,500 2,565,550
BBB Michigan Strategic Fund PCR
(General Motors Corp.) Ser 95
6.20%, 9/01/20.............................. 1,000 1,035,640
BB- Midland Cnty PCR
(CMS Energy) Ser 00A AMT
6.875%, 7/23/09............................. 2,000 2,038,420
- --------------------------------------------------------------------------------
30 o AllianceBernstein Municipal Income Fund II
Standard Principal
& Poor's Amount
Ratings(a) (000) Value
- --------------------------------------------------------------------------------
AAA North Muskegon Pub Sch Dist
Ser 03
5.25%, 5/01/28.............................. $ 1,500 $ 1,562,985
AAA Olivet School Board Fund
Ser 02
5.125%, 5/01/28............................. 1,065 1,093,340
AAA Ovid Elsie Schools Board Fund
Ser 02
5.00%, 5/01/25.............................. 2,650 2,698,283
BB+ Pontiac Tax Increment Fin Auth
(Dev Area 38 3) Ser 02
6.25%, 6/01/22.............................. 2,780 2,854,726
6.375%, 6/01/31............................. 3,250 3,260,108
BBB+ Romulus Tax Increment Fin Auth
Ser 94
6.75%, 11/01/19............................. 1,585 1,709,502
AAA Royal Oak Hosp Fin Auth
(William Beaumont Hosp) MBIA Ser 01M
5.25%, 11/15/35............................. 3,200 3,280,544
A Saginaw Hosp Fin Auth
(Covenant Medical Ctr) Ser 00F
6.50%, 7/01/30.............................. 3,020 3,245,956
AAA Wayne Charter Cnty
(Detroit Metro Arpt Hotel) MBIA Ser 01A
5.00%, 12/01/30............................. 3,930 3,967,139
AAA Whitmore Lake Pub Sch Dis
Ser 03
5.00%, 5/01/24.............................. 1,975 2,020,208
------------
121,082,788
------------
California-2.3%
A+ California Health Fac Fin Auth
(Sutter Heath) Ser 00A
6.25%, 8/15/35.............................. 3,600 3,901,680
------------
Florida-6.9%
Baa3 Capital Trust Agy Rev
(Fort Lauderdale Poj) Ser 03 AMT
5.75%, 1/01/32(b)........................... 1,500 1,427,610
NR Collier Cnty Cmnty Dev Dist
(Fiddlers Creek) Ser 96
7.50%, 5/01/18.............................. 2,000 2,125,400
NR Crossings at Fleming Island Cmnty Dev Dist
(Eagle Harbor) Ser 00C
7.10%, 5/01/30.............................. 2,000 2,103,700
NR Double Branch Cmnty Dev Dist
(Oakleaf Village) Ser 02A
6.70%, 5/01/34.............................. 1,000 1,033,520
NR Gateway Cmnty Dev Dist
(Sun City Crt-Fort Meyers) Ser 03B
5.50%, 5/01/10.............................. 1,000 1,000,720
- --------------------------------------------------------------------------------
AllianceBernstein Municipal Income Fund II o 31
Standard Principal
& Poor's Amount
Ratings(a) (000) Value
- --------------------------------------------------------------------------------
NR- Miromar Lakes Cmnty Dev Dist
Ser 00A
7.375%, 5/01/32............................. $ 1,000 $ 1,039,200
NR Northern Palm Beach Cnty Impt Dist
(Unit Development 27B) Ser 02
6.40%, 8/01/32.............................. 835 843,308
NR Waterlefe Cmnty Dev Dist
Ser 01B
6.25%, 5/01/10.............................. 1,925 1,927,965
------------
11,501,423
------------
Illinois-0.6%
NR Antioch Village Spl Svc Area
(Deercrest Proj) No. 1 Ser 03
6.625%, 3/01/33............................. 500 486,110
NR Antioch Village Spl Svc Area
(Clublands Proj) No. 2 Ser 03
6.625%, 3/01/33............................. 500 486,110
------------
972,220
------------
Puerto Rico-13.5%
AAA Puerto Rico Cmnwlth Hwy & Trans Auth
FSA Ser 02D
5.00%, 7/01/27.............................. 5,000 5,135,050
AAA Puerto Rico Elec Pwr Auth Rev
XLCA Ser 02-1
5.25%, 7/01/22.............................. 5,000 5,378,649
AAA Puerto Rico Hsg Fin Corp SFMR
(Mortgage Rev) Ser 01C AMT
5.30%, 12/01/28............................. 2,025 2,065,703
AAA Puerto Rico Hsg Fin Corp SFMR
(Mortgage Rev) GNMA AMT
Ser 01B
5.50%, 12/01/23............................. 2,305 2,371,522
Ser 98A
5.20%, 12/01/32............................. 1,280 1,306,509
AA Puerto Rico Ind Fin Auth
(Ascension Health) Ser 00A
6.125%, 11/15/30............................ 3,000 3,292,680
AAA Puerto Rico Pub Fin Corp
MBIA Ser 01A
5.00%, 8/01/31.............................. 2,875 2,938,308
------------
22,488,421
------------
Rhode Island-1.3%
BBB Rhode Island Tobacco Settlement Rev
Ser 02A
6.25%, 6/01/42.............................. 1,555 1,285,845
6.125%, 6/01/32............................. 950 796,822
------------
2,082,667
------------
- --------------------------------------------------------------------------------
32 o AllianceBernstein Municipal Income Fund II
Standard Principal
& Poor's Amount
Ratings(a) (000) Value
- --------------------------------------------------------------------------------
Washington-0.6%
BBB Washington Tobacco Settlement Rev
Ser 02
6.50%, 6/01/26.............................. $ 1,050 $ 952,088
------------
Total Investments-98.2%
(cost $158,628,340)................ 162,981,287
Other assets less liabilities-1.8%... 3,070,392
------------
Net Assets-100%...................... $166,051,679
============
See footnote summary on page 58.
See Glossary of Terms on page 58.
See notes to financial statements.
- --------------------------------------------------------------------------------
AllianceBernstein Municipal Income Fund II o 33
MINNESOTA PORTFOLIO
PORTFOLIO OF INVESTMENTS
September 30, 2003
Standard Principal
& Poor's Amount
Ratings(a) (000) Value
- --------------------------------------------------------------------------------
MUNICIPAL BONDS-98.7%
Long-Term Municipal Bonds-98.4%
Minnesota-96.4%
AA Bemidji Hlth Fac
(North Country Hlth Svcs) RADIAN
5.00%, 9/01/31.............................. $ 2,000 $ 2,021,420
AAA Brooklyn Park MFHR
(Brooks Landing) FNMA Ser 99A AMT
5.50%, 7/01/19.............................. 1,355 1,416,531
AAA Cass Lake Indpt Sch Dist FGIC
5.00%, 2/01/26.............................. 1,760 1,795,394
5.00%, 2/01/28.............................. 1,000 1,018,600
Aaa Dakota Cmnty Dev Agy MFHR
(Buffalo Ridge Apts) GNMA Ser 02
5.50%, 7/20/43(b)........................... 3,675 3,812,776
Aaa Dakota Cnty MFHR
(Grande Market Place Proj)
GNMA Ser 02A AMT
5.40%, 11/20/43(b).......................... 5,350 5,457,802
Aaa Eagan MFHR
(Woodridge Apts) GNMA Ser 97A
5.95%, 2/01/32(b)........................... 1,600 1,677,808
A1 Eden Praire MFHR
(Rolling Hills Proj) GNMA Ser 01A
6.20%, 2/20/43(b)........................... 2,000 2,179,440
Aaa Elk River Indpt Sch Dist
FSA Ser 02A
8.73%, 2/01/15(b)(c)........................ 3,065 3,642,936
BBB+ Golden Valley Hlth Fac
(Convenant Retirement Cmnty) Ser 99A
5.50%, 12/01/29............................. 1,000 1,000,570
Aaa Little Canada MFHR
(Cedars Lakeside Apts) GNMA Ser 97A
5.95%, 2/01/32(b)........................... 2,650 2,778,870
A - Minneapolis Common Bond Fund
Ser 01G-3
5.45%, 12/01/31............................. 1,500 1,539,615
Ser 95-2 AMT
6.625%, 12/01/15............................ 1,245 1,297,041
Ser 97-2 AMT
6.20%, 6/01/17.............................. 1,795 1,920,560
A3 Minneapolis Hosp Rev
(Allina Hlth Sys) Ser 02A
5.75%, 11/15/32(b).......................... 1,500 1,550,505
NR Minneapolis Hlth Fac
(Walker Methodist) Ser 98A
6.00%, 11/15/28............................. 2,700 2,213,460
- --------------------------------------------------------------------------------
34 o AllianceBernstein Municipal Income Fund II
Standard Principal
& Poor's Amount
Ratings(a) (000) Value
- --------------------------------------------------------------------------------
Aaa Minneapolis MFHR
(Bottineau Commons Proj)
GNMA Ser 02 AMT
5.45%, 4/20/43(b)........................... $ 2,000 $ 2,050,740
Aaa Minneapolis MFHR
(Sumner Field) GNMA Ser 02 AMT
5.60%, 11/20/43(b).......................... 2,505 2,582,430
AAA Minneapolis Pkg Assmt
MBIA Ser 02
5.25%, 12/01/26............................. 2,000 2,114,560
AAA Minneapolis & St. Paul Arpt Rev
FGIC Ser 00B AMT
6.00%, 1/01/21.............................. 3,455 3,827,897
AAA Minneapolis & St. Paul Arpt Rev
MBIA Ser 03A
5.00%, 1/01/28.............................. 2,500 2,544,275
A - Minnesota Agric & Eco Dev Hlth Fac
(Evangelical Lutheran Proj) Ser 02
6.00%, 2/01/22.............................. 1,130 1,188,353
6.00%, 2/01/27.............................. 1,750 1,835,558
NR Minnesota Agric & Eco Dev
(Small Business Loan Proj) AMT
Ser 96A
6.75%, 8/01/16.............................. 1,450 1,539,248
Ser 00A
7.25%, 8/01/20.............................. 1,000 1,081,080
Ser 00B
7.25%, 8/01/20.............................. 1,000 1,081,080
Ser 00C
7.25%, 8/01/20.............................. 1,000 1,081,080
Ser 00D
7.25%, 8/01/20.............................. 1,000 1,081,080
AAA Minnesota Agric & Eco Dev Hlth Fac
(Benedictine Hlth Sys) MBIA Ser 99
5.125%, 2/15/29............................. 4,000 4,122,159
A Minnesota Agric & Eco Dev Hlth Fac
(Fairview Hlth) Ser 00A
6.375%, 11/15/29............................ 1,750 1,889,528
Baa2 Minnesota Higher Ed Fac Auth
(College Art & Design) Ser 00-5D
6.75%, 5/01/26(b)........................... 1,000 1,088,260
Baa1 Minnesota Higher Ed Fac
(Hamline Univ) Ser 99-5B
6.00%, 10/01/29(b).......................... 1,250 1,308,788
Baa1 Minnesota Higher Ed Fac Auth
(St Catherine College)
5.375%, 10/01/32(b)......................... 1,000 1,015,310
- --------------------------------------------------------------------------------
AllianceBernstein Municipal Income Fund II o 35
Standard Principal
& Poor's Amount
Ratings(a) (000) Value
- --------------------------------------------------------------------------------
AAA Minnesota Hsg Fin Agy MFHR
(Mortgage Rev) MBIA Ser 95D
6.00%, 2/01/22.............................. $ 900 $ 929,286
AA+ Minnesota Hsg Fin Agy SFMR
(Mortgage Rev) AMT
Ser 96F
6.30%, 1/01/28.............................. 2,230 2,316,970
Ser 96G
6.25%, 7/01/26.............................. 3,620 3,751,587
Ser 98H-2
6.05%, 7/01/31.............................. 3,565 3,770,629
Aaa Minnetonka MFHR
(Archer Heights Apts Proj)
GNMA Ser 99A AMT
5.30%, 1/20/27(b)........................... 1,620 1,665,279
AAA Morris Indpt Sch Dist
MBIA Ser 02
5.00%, 2/01/28.............................. 2,000 2,044,760
BBB Sartell Poll Ctl Rev
(International Paper) Ser 03A
5.20%, 6/01/27.............................. 1,000 978,610
Aaa Scott Cnty MFHR
(Northridge Apts Proj) MBIA Ser 03
5.00%, 2/01/34(b)........................... 1,000 1,012,580
Aaa Shoreview MFHR
(Lexington Shores Proj) GNMA Ser 01A AMT
5.55%, 8/20/42(b)........................... 1,445 1,477,932
Aaa St. Cloud Hosp Rev
(Saint Cloud Hosp) FSA Ser 00A
5.875%, 5/01/30(b).......................... 3,750 4,156,649
AAA St. Paul MFHR
(Burlington Apt-8) GNMA
5.35%, 5/01/31.............................. 1,550 1,562,896
AAA St. Paul Pkg Auth Rev
(Block 19 Ramp) FSA Ser 02A
5.35%, 8/01/29.............................. 3,075 3,259,039
AA+ St. Paul Port Auth Lease Rev Ser 02
5.25%, 12/01/27............................. 1,725 1,800,072
AA Waconia Hlth Care Fac Rev
(Ridgeview Med Ctr) RADIAN Ser 99A
6.125%, 1/01/29............................. 3,415 3,774,497
Aaa Western Power Agy
MBIA Ser 03A
5.00%, 1/01/26(b)........................... 3,500 3,577,735
AAA White Bear Lake MFHR
(Renova Partners Proj)
FNMA Ser 01 AMT
5.60%, 10/01/30............................. 1,000 1,034,590
Aaa Willmar Hosp Rev
(Rice Mem Hosp Proj) FSA Ser 02
5.00%, 2/01/32(b)........................... 3,200 3,257,088
------------
107,124,953
------------
- --------------------------------------------------------------------------------
36 o AllianceBernstein Municipal Income Fund II
Standard Principal
& Poor's Amount
Ratings(a) (000) Value
- --------------------------------------------------------------------------------
New Jersey-1.2%
BBB New Jersey Tobacco Settlement Rev
Ser 03
6.75%, 6/01/39.............................. $ 1,500 $ 1,352,160
------------
Rhode Island-0.8%
BBB Rhode Island Tobacco Settlement Rev
Ser 02A
6.25%, 6/01/42.............................. 1,115 922,005
------------
Total Long-Term Municipal Bonds
(cost $105,425,242).................. 109,399,118
------------
Short-Term Municipal Notes(g)-0.3%
Minnesota-0.3%
A-1+ Beltrami Cnty Minn Environmental Ctl Rev
(Northwood Panelboard Co) Ser 91 AMT
1.15%, 12/01/21............................. 300 300,000
------------
Total Short-Term Municipal Notes
(cost $300,000)............................. 300,000
------------
Total Investments-98.7%
(cost $105,725,242)................ 109,699,118
Other assets less liabilities-1.3%... 1,435,751
------------
Net Assets-100%...................... $111,134,869
============
See footnote summary on page 58.
See Glossary of Terms on page 58.
See notes to financial statements.
- --------------------------------------------------------------------------------
AllianceBernstein Municipal Income Fund II o 37
NEW JERSEY PORTFOLIO
PORTFOLIO OF INVESTMENTS
September 30, 2003
Standard Principal
& Poor's Amount
Ratings(a) (000) Value
- --------------------------------------------------------------------------------
MUNICIPAL BONDS-99.7%
Long-Term Municipal Bonds-99.1%
New Jersey-90.1%
AAA Hoboken Parking Auth
AMBAC Ser 01A
5.30%, 5/01/27.............................. $ 3,700 $ 4,312,720
Aaa Irvington Twp GO
MBIA Ser 03B
5.00%, 7/15/33(b)........................... 2,000 2,032,360
Aaa Lafayette Yard Com Dev Corp
(Conv Ctr Hotel Proj) MBIA Ser 00
5.80%, 4/01/35(b)........................... 2,100 2,489,256
Aaa Lafayette Yard Com Dev Corp
(Conv Ctr Hotel Proj) FGIC Ser 01
5.00%, 4/01/35(b)........................... 5,000 5,049,750
AAA Middlesex Cnty MFHR
FNMA Ser 01 AMT
5.25%, 7/01/21.............................. 750 785,385
5.35%, 7/01/34.............................. 1,500 1,528,425
AAA Newark GO
Ser 03
19.78247%, 7/15/10(c)....................... 1,562 2,034,193
AAA New Jersey Eco Dev Auth
(American Water Co) FGIC AMT
6.875%, 11/01/34............................ 5,000 5,353,600
A+ New Jersey Eco Dev Auth
(Anheuser-Busch) Ser 95 AMT
5.85%, 12/01/30............................. 8,000 8,321,040
B New Jersey Eco Dev Auth
(Continental Airlines) Ser 00 AMT
7.20%, 11/15/30............................. 1,850 1,698,226
AAA New Jersey Eco Dev Auth
(Hackensack Water Co)
MBIA Ser 94B AMT
5.90%, 3/01/24.............................. 4,000 4,123,200
Baa3 New Jersey Eco Dev Auth
(Kapkowski Rd) Ser 98B
6.50%, 4/01/28(b)........................... 7,500 8,513,625
Baa3 New Jersey Eco Dev Auth
(Kapkowski Rd) Ser 98B AMT
6.50%, 4/01/31(b)........................... 2,085 2,312,098
A+ New Jersey Eco Dev Auth
(Masonic Charity Foundation Proj) Ser 01
5.50%, 6/01/31.............................. 1,000 1,044,100
A New Jersey Eco Dev Auth
(NUI Corp) ACA Ser 98A AMT
5.25%, 11/01/33............................. 5,840 5,839,766
- --------------------------------------------------------------------------------
38 o AllianceBernstein Municipal Income Fund II
Standard Principal
& Poor's Amount
Ratings(a) (000) Value
- --------------------------------------------------------------------------------
AAA New Jersey Eco Dev Auth
(Pub Ser Elec & Gas) MBIA Ser 94A AMT
6.40%, 5/01/32.............................. $ 5,000 $ 5,226,600
AAA New Jersey Eco Dev Auth
(Rehab) AMBAC Ser 03A
5.00%, 4/01/28.............................. 5,000 5,098,450
A+ New Jersey Eco Dev Auth Hlth Fac
(Masonic Charity Foundation Proj) Ser 02
5.25%, 6/01/24.............................. 540 551,302
AAA New Jersey Eco Dev Auth School Fac
AMBAC Ser 03
16.27%, 6/15/21(c).......................... 2,250 2,586,960
AAA New Jersey Higher Ed
(Rowan University) FGIC Ser 01C
5.00%, 7/01/31.............................. 1,000 1,015,500
AAA New Jersey Higher Ed
(Student Loan) MBIA Ser 00A AMT
6.15%, 6/01/19.............................. 1,445 1,547,595
A- New Jersey Hlth Care Fac
(Atlantic City Med Ctr) Ser 02
5.75%, 7/01/25.............................. 3,000 3,129,480
AA New Jersey Hlth Care Fac
(Bayshore Cnmty Hosp) RADIAN Ser 02
5.125%, 7/01/32............................. 9,250 9,364,053
AAA New Jersey Hlth Care Fac
(Englewood Hosp) MBIA Ser 02
5.00%, 8/01/31.............................. 4,500 4,554,135
AA New Jersey Hlth Care Fac
(Good Shepherd) RADIAN Ser 01A
5.20%, 7/01/31.............................. 1,350 1,364,459
AAA New Jersey Hlth Care Fac
(Jersey City Medical Center)
FHA AMBAC Ser 01
5.00%, 8/01/41.............................. 13,595 13,637,687
A3 New Jersey Hlth Care Fac
(Kennedy Health System) Ser 01
5.625%, 7/01/31(b).......................... 6,200 6,333,982
Aaa New Jersey Hlth Care Fac
(Newton Memorial Hosp) FSA Ser 01
5.00%, 7/01/26(b)........................... 1,500 1,523,175
A New Jersey Hlth Care Fac
(Palisades Med Ctr) ACA Ser 99
5.25%, 7/01/28.............................. 1,000 1,007,820
A+ New Jersey Hlth Care Fac
(Robert Wood Johnson) Ser 00
5.75%, 7/01/31.............................. 5,350 5,661,531
- --------------------------------------------------------------------------------
AllianceBernstein Municipal Income Fund II o 39
Standard Principal
& Poor's Amount
Ratings(a) (000) Value
- --------------------------------------------------------------------------------
AA New Jersey Hlth Care Fac
(Southern Ocean County Hosp)
RADIAN Ser 01
5.125%, 7/01/31............................. $ 4,500 $ 4,567,140
AAA New Jersey Hsg & Mtg Fin Agy MFHR
(Mortgage Rev) FSA Ser 00A1 AMT
6.35%, 11/01/31............................. 2,000 2,138,520
AAA New Jersey Hsg & Mtg Fin Agy MFHR
(Mortgage Rev) FSA Ser 01A AMT
5.05%, 5/01/34.............................. 5,390 5,525,882
AAA New Jersey Hsg & Mtg Fin Agy MFHR
(Pooled Loan) AMBAC Ser 96A AMT
6.25%, 5/01/28.............................. 5,000 5,240,950
AAA New Jersey Hsg & Mtg Fin Agy SFMR
(Mortgage Rev) MBIA Ser 95 AMT
6.35%, 10/01/27............................. 1,420 1,468,962
AAA New Jersey State Ed Fac Auth
(Higher Ed Cap Impt) Ser 02A
5.125%, 9/01/22............................. 2,500 2,619,175
AAA New Jersey State Ed Fac Auth
(Ramapo College) AMBAC Ser 01D
5.00%, 7/01/31.............................. 1,000 1,014,030
A- New Jersey State Ed Fac Auth
(Stevens Inst of Technology) Ser 02C
5.25%, 7/01/32.............................. 2,750 2,733,610
AAA New Jersey State Tpk Auth
FSA Ser 03A
5.00%, 1/01/23.............................. 10,000 10,318,500
AAA New Jersey State Trans Auth
(Transportation System) MBIA Ser 01B
5.00%, 12/15/21............................. 3,000 3,116,310
AA- New Jersey State Trans Auth
(Transportation System) Ser 03C
5.50%, 6/15/24.............................. 3,750 4,008,413
BBB New Jersey Tobacco Settlement Rev
Ser 02
6.125%, 6/01/42............................. 8,000 6,533,200
Aaa North Hudson Sew Auth
MBIA Ser 01A
Zero Coupon, 8/01/24........................ 12,340 4,270,627
AAA Port Auth of NY & NJ
(JFK Int'l Airport Proj) MBIA Ser 97-6 AMT
5.75%, 12/01/22............................. 8,675 9,370,388
AAA Port Auth of NY & NJ
(96th) FGIC Ser 94 AMT
6.60%, 10/01/23............................. 9,340 9,816,340
AAA Port Auth of NY & NJ
(121st) MBIA Ser 00
5.375%, 10/15/35............................ 5,000 5,184,550
- --------------------------------------------------------------------------------
40 o AllianceBernstein Municipal Income Fund II
Standard Principal
& Poor's Amount
Ratings(a) (000) Value
- --------------------------------------------------------------------------------
AAA Port Auth of NY & NJ
(126th) FGIC Ser 02
5.25%, 5/15/37.............................. $ 2,500 $ 2,552,925
BBB Salem Cnty PCR
(PSE&G Power) Ser 01A AMT
5.75%, 4/01/31.............................. 1,500 1,538,730
AA- Salem Cnty Waste Disp Rev
(E.I. Dupont) Ser 92A AMT
6.125%, 7/15/22............................. 3,500 3,547,775
A South Jersey Port Corp
(Marine Terminal) AMT
5.20%, 1/01/23.............................. 1,000 1,015,320
BBB- South Jersey Transportation Auth
(Raytheon Aircraft Service) Ser 97A AMT
6.15%, 1/01/22.............................. 400 402,800
Aaa Union Cnty Impt Auth
MBIA Ser 03A
5.25%, 8/15/23(b)........................... 2,885 3,046,300
AAA Univ of Medicine & Dentistry COP
AMBAC Ser 03
5.00%, 4/15/32.............................. 1,500 1,520,415
AAA Vineland Sewer Rev
(Landis Sewerage) FGIC Ser 93C
10.07%, 9/19/19(c).......................... 3,250 4,440,215
------------
214,031,550
------------
Colorado-2.9%
AAA Colorado Dept of Transportation
MBIA Ser 02B
5.50%, 6/15/13.............................. 2,020 2,337,160
Aaa Larimer Weld & Boulder Cnty Sch Dist GO
FSA Ser 04A
5.00%, 12/15/06(b).......................... 4,215 4,532,516
------------
6,869,676
------------
Florida-2.7%
NR Crossings at Fleming Island CDD
(Eagle Harbor) Ser 00C
7.10%, 5/01/30.............................. 2,500 2,629,625
NR Double Branch Cmnty Dev Dist
(Oakleaf Village) Ser 02A
6.70%, 5/01/34.............................. 1,000 1,033,520
NR Miromar Lakes Cmnty Dev Dist
Ser 00A
7.375%, 5/01/32............................. 1,485 1,543,212
NR Northern Palm Beach Cnty Impt Dist
No.27B Ser 02
6.40%, 8/01/32.............................. 1,300 1,312,935
------------
6,519,292
------------
- --------------------------------------------------------------------------------
AllianceBernstein Municipal Income Fund II o 41
Standard Principal
& Poor's Amount
Ratings(a) (000) Value
- --------------------------------------------------------------------------------
Illinois-0.4%
NR Antioch Village Special Tax
(Clublands Proj) No. 2 Ser 03
6.625%, 3/01/33............................. $ 1,000 $ 972,220
------------
Nevada-0.8%
NR Henderson Loc Impt Dist
Ser 03
5.80%, 3/01/23.............................. 1,000 974,950
NR North Las Vegas Cmnty Fac Dist
(5060 Aliante)
6.40%, 12/01/22............................. 1,000 1,013,840
------------
1,988,790
------------
Pennsylvania-0.9%
A- Delaware Riv Jt Toll Bridge Rev
(PA/NJ Bridge) Ser 03
5.00%, 7/01/28.............................. 2,000 2,007,500
------------
Rhode Island-0.4%
BBB Rhode Island Tobacco Settlement Rev
Ser 02A
6.125%, 6/01/32............................. 1,000 838,760
------------
Virginia-0.5%
NR Broad Street CDD
Ser 03
7.50%, 6/01/33.............................. 1,200 1,182,276
------------
Washington-0.4%
BBB WashingtonTobacco Settlement Rev
Ser 02
6.50%, 6/01/26.............................. 1,150 1,042,763
------------
Total Long-Term Municipal Bonds
(cost $226,264,691)......................... 235,452,827
------------
Short-Term Municipal Notes-0.6%
Florida-0.6%
NR Westchester Cmnty Dev Dist BAN
(Dist 1) Ser 03
5.50%, 1/01/04.............................. 1,390 1,390,111
------------
Total Short-Term Municipal Notes
(cost $1,390,000)......................... 1,390 1,390,111
------------
Total Investments-99.7%
(cost $227,654,691)....................... 236,842,938
Other assets less liabilities-0.3%.......... 716,117
------------
Net Assets-100%............................. $237,559,055
============
- --------------------------------------------------------------------------------
42 o AllianceBernstein Municipal Income Fund II
FINANCIAL FUTURES CONTRACTS (see Note D)
Value at
Number of Expiration Original Sept. 30, Unrealized
Type Contracts Position Month Value 2003 Depreciation
- --------- ---------- -------- ---------- --------- --------- ------------
Interest Rate
10 Yr Swap December
Futures 66 Short 2003 $7,160,752 $7,408,500 $(247,748)
2 Yr Treasury
Note Futures December
(CBT) 27 Short 2003 5,787,603 5,821,031 (33,428)
----------
$(281,176)
=========
INTEREST RATE SWAP CONTRACT (see Note D)
Rate Type
-----------------------------
Payment Payment
Swap Notional Termination made by received by Unrealized
Counterparty Amount Date the Portfolio the Portfolio Depreciation
- ------------ -------- ----------- ------------- ------------- ------------
JP Morgan $4,215,000 09/17/04 Variable* 1.12% $1,013
* Variable interest based on the Municipal Swap Index, which fluctuates weekly.
See footnote summary on page 58.
See Glossary of Terms on page 58.
See notes to financial statements.
- --------------------------------------------------------------------------------
AllianceBernstein Municipal Income Fund II o 43
OHIO PORTFOLIO
PORTFOLIO OF INVESTMENTS
September 30, 2003
Standard Principal
& Poor's Amount
Ratings(a) (000) Value
- --------------------------------------------------------------------------------
MUNICIPAL BONDS-98.7%
Long-Term Municipal Bonds-96.7%
Ohio-80.6%
AAA Akron Higher Ed Fac
(University of Akron) FGIC Ser 99
5.75%, 1/01/29.............................. $ 2,000 $ 2,190,940
AAA Akron GO
MBIA Ser 02
5.00%, 12/01/23............................. 1,000 1,028,810
A+ Akron Stadium Rev
(Canal Park) Ser 96
6.90%, 12/01/16............................. 5,000 5,550,800
Aaa Brookville School Dist GO
FSA Ser 03
5.00%, 12/01/26(b).......................... 2,000 2,039,800
B- Cleveland Arpt Rev
(Continental Airlines) Ser 98 AMT
5.375%, 9/15/27............................. 4,750 3,234,085
NR Cleveland Cuyahoga Port Auth
Ser 01
7.35%, 12/01/31............................. 2,000 2,072,080
AAA Cleveland GO
MBIA Ser 02
5.25%, 12/01/27............................. 4,380 4,567,289
AAA Cleveland School Dist
FGIC Ser 02
4.625%, 12/01/27............................ 2,750 2,696,870
AAA Cleveland Higher Ed
(State University) FGIC Ser 03A
5.00%, 6/01/33.............................. 1,600 1,621,936
AAA Cleveland Water Rev
FGIC Ser 02K
5.00%, 1/01/33.............................. 2,950 2,985,548
AAA Columbus Arpt Rev
(Columbus Int'l Arpt) MBIA Ser 94A AMT
6.25%, 1/01/24.............................. 4,000 4,119,960
AAA Columbus School Dist GO
FGIC Ser 03
5.00%, 12/01/24............................. 2,500 2,559,500
5.00%, 12/01/25............................. 2,230 2,277,856
BBB Cuyahoga Cnty Hosp Rev
(UHHS) Ser 00
7.50%, 1/01/30.............................. 1,900 2,106,549
Aaa Cuyahoga Cnty MFHR
(Livingston Park Apts) GNMA Ser 02A
5.45%, 9/20/39(b)........................... 1,500 1,534,785
- --------------------------------------------------------------------------------
44 o AllianceBernstein Municipal Income Fund II
Standard Principal
& Poor's Amount
Ratings(a) (000) Value
- --------------------------------------------------------------------------------
Aaa Cuyahoga Cnty MFHR
(Longwood Proj) GNMA Ser 01 AMT
5.60%, 1/20/43(b)........................... $ 3,620 $ 3,740,980
Aaa Cuyahoga Cnty MFHR
(West Tech Apts Proj)
GNMA Ser 02A AMT
5.45%, 3/20/44(b)........................... 1,075 1,093,264
A- Dayton School Dist
(Administrative Fac Proj) Ser 03
6.00%, 12/01/19............................. 1,395 1,550,459
6.00%, 12/01/21............................. 1,645 1,806,736
AAA Dublin School Dist GO
FSA Ser 03
5.00%, 12/01/22............................. 1,500 1,560,540
A Erie Cnty Hosp Rev
(Firelands Med Ctr) Ser 02A
5.625%, 8/15/32............................. 5,000 5,131,000
A Franklin Cnty
(Online Computer Library Ctr) Ser 98A
5.20%, 10/01/20............................. 2,800 2,977,660
Aaa Franklin Cnty MFHR
(Agler Green) GNMA Ser 02A AMT
5.65%, 5/20/32(b)........................... 770 799,884
5.80%, 5/20/44(b)........................... 1,150 1,196,196
AAA Franklin Cnty MFHR
(Wellington Village Proj)
GNMA Ser 01A AMT
5.40%, 2/20/43.............................. 3,945 3,985,357
BBB+ Hamilton Cnty Health Fac
(Twin Towers) Ser 99A
5.80%, 10/01/23............................. 1,775 1,794,649
AAA Hamilton Cnty Sales Tax
AMBAC Ser 00B
5.25%, 12/01/32(d).......................... 22,200 22,838,471
Aaa Lucas Cnty Health Fac
(Altenheim Proj) GNMA Ser 99
5.50%, 7/20/40(b)........................... 3,200 3,331,360
BBB Ohio Air Quality Dev Auth PCR
(Columbus Southern Pwr) Ser 85B
6.25%, 12/01/20............................. 5,000 5,102,800
BBB Ohio Air Quality Dev Auth PCR
(Dayton Pwr & Lt) Ser 92B
6.40%, 8/15/27.............................. 2,000 2,025,400
AAA Ohio Air Quality Dev Auth PCR
(JMG) AMBAC Ser 94B AMT
6.375%, 4/01/29............................. 10,000 10,649,500
BBB Ohio Air Quality Dev Auth PCR
(Toledo Edison Co) Ser 97A AMT
6.10%, 8/01/27.............................. 5,000 5,137,400
- --------------------------------------------------------------------------------
AllianceBernstein Municipal Income Fund II o 45
Standard Principal
& Poor's Amount
Ratings(a) (000) Value
- --------------------------------------------------------------------------------
AAA Ohio Capital Corp Hsg
(Sect 8 Assist)
FHA/MBIA Ser 95E
Prerefunded 1/01/05 @ 103
6.35%, 1/01/22.............................. $ 620 $ 679,278
AAA Ohio Capital Corp MFHR
(Sect 8 Assist)
FHA/MBIA Ser 95E
6.35%, 1/01/22.............................. 1,345 1,409,816
BBB Ohio Environmental Fac Rev
(Ford Motor Co) Ser 00 AMT
6.15%, 6/01/30.............................. 4,500 4,535,550
Aa2 Ohio Hsg Fin Agy MFHR
(Bridgeview Villa II) FHA AMT
6.45%, 12/01/33(b).......................... 1,965 2,001,451
AAA Ohio Hsg Fin Agy MFHR
(Park Trails Apt) AMBAC Ser 01A AMT
5.50%, 12/01/34............................. 1,670 1,712,886
Aaa Ohio Hsg Fin Agy SFMR
(Mortgage Rev) GNMA AMT
Ser 00A-1
6.35%, 9/01/31(b)........................... 455 482,022
Ser 00D
6.05%, 3/01/31(b)........................... 4,925 5,191,196
Ser 02-A3
5.50%, 9/01/34(b)........................... 3,820 3,970,928
Ser 02
5.375%, 9/01/33(b).......................... 4,810 4,898,119
Ser 02A-2
5.60%, 9/01/34(b)........................... 2,650 2,734,085
AAA Ohio Hsg Fin Agy SFMR
(Mortgage Rev) GNMA AMT
Ser 94B-2
6.70%, 3/01/25.............................. 985 1,016,717
Ser 95A-2
6.625%, 3/01/26............................. 1,435 1,486,703
A+ Ohio Sewer & Solid Waste Disp Facs
(Anheuser-Busch) Ser 01 AMT
5.50%, 11/01/35............................. 3,000 3,068,550
AAA Ohio State GO
FGIC Ser 03A
8.75%, 3/15/15(c)........................... 6,300 7,648,956
A+ Ohio Wtr Dev Auth
(Anheuser-Busch) Ser 99 AMT
6.00%, 8/01/38.............................. 2,250 2,345,040
A Ohio Wtr Dev Auth
(North Star BHP Steel) Ser 95 AMT
6.45%, 9/01/20.............................. 3,425 3,572,755
BBB Ohio Wtr Dev Auth PCR
(Cleveland Electric) Ser 97A AMT
6.10%, 8/01/20.............................. 2,000 2,019,280
- --------------------------------------------------------------------------------
46 o AllianceBernstein Municipal Income Fund II
Standard Principal
& Poor's Amount
Ratings(a) (000) Value
- --------------------------------------------------------------------------------
AAA Ohio Wtr Dev Auth Rev
AMBAC Ser 97
5.25%, 12/01/17............................. $ 500 $ 544,890
A3 Steubenville Ohio Hosp Rev
(Trinity Hlth) Ser 00
6.50%, 10/01/30(b).......................... 5,000 5,319,850
Baa2 Toledo-Lucas Cnty Port Fac
(CSX Transportation) Ser 92
6.45%, 12/15/21(b).......................... 1,270 1,435,887
------------
171,382,423
------------
Florida-9.8%
NR Collier Cnty Cmnty Fac Dist
(Fiddlers Creek) Ser 96
7.50%, 5/01/18.............................. 2,000 2,125,400
NR Collier Cnty IDR
(Southern States Utils) Ser 96 AMT
6.50%, 10/01/25............................. 1,500 1,508,625
NR Crossings at Fleming Island CDD
(Eagle Harbor) Ser 00C
7.10%, 5/01/30.............................. 2,000 2,103,700
NR Double Branch Cmnty Dev Dist
(Oakleaf Village) Ser 02A
6.70%, 5/01/34.............................. 1,000 1,033,520
NR Manatee Cnty Cmnty Dev Dist
(Heritage Harbor South) Ser 02B
5.40%, 11/01/08............................. 1,175 1,185,317
NR Miromar Lakes Cmnty Dev Dist
Ser 00A
7.375%, 5/01/32............................. 980 1,018,416
NR Northern Palm Beach Cnty
(ABACOA) Ser 96A Prerefunded 8/01/06 @ 102
7.30%, 8/01/27.............................. 10,100 11,946,683
------------
20,921,661
------------
Guam-0.8%
AAA Guam Arpt Auth
MBIA Ser 03B
5.25%, 10/01/18............................. 1,600 1,751,008
------------
Illinois-0.5%
NR Antioch Village Spl Svc Area
(Deercrest Proj) Ser 03
6.625%, 3/01/33............................. 1,000 972,220
------------
Michigan-1.7%
AAA Michigan Muni Bond Auth
(Drinking Water) Ser 02
5.25%, 10/01/12............................. 3,235 3,695,438
------------
- --------------------------------------------------------------------------------
AllianceBernstein Municipal Income Fund II o 47
Standard Principal
& Poor's Amount
Ratings(a) (000) Value
- --------------------------------------------------------------------------------
Puerto Rico-2.4%
AAA Puerto Rico Tobacco Settlement Rev
(Childrens Trust Fund) Ser 00
6.00%, 7/01/26.............................. $ 4,000 $ 4,767,960
BBB Puerto Rico Tobacco Settlement Rev
(Childrens Trust Fund) Ser 02
5.625%, 5/15/43............................. 300 259,041
------------
5,027,001
------------
Rhode Island-0.4%
BBB Rhode Island Tobacco Settlement Rev
Ser 02A
6.125%, 6/01/32............................. 950 796,822
------------
Washington-0.5%
BBB Washington Tobacco Settlement Rev
Ser 02
6.50%, 6/01/26.............................. 1,050 952,088
------------
Total Long-Term Municipal Bonds
(cost $197,118,932)....................... 205,498,661
------------
Short-Term Municipal Notes(g)-2.0%
Arizona-0.5%
A-1+ Maricopa Cnty MFHR
(San Remo Apts Proj) Ser 02 AMT
1.25%, 9/15/35.............................. 1,000 1,000,000
------------
Michigan-0.7%
VMIG-1 Michigan Higher Ed Fac Auth
(University of Detroit) Ser 03
1.21%, 11/01/17(b).......................... 1,500 1,500,000
------------
Ohio-0.5%
A-1+ Paulding Cnty
(Lafarge Corp Proj) Ser 96 AMT
1.15%, 8/01/26.............................. 1,000 1,000,000
------------
Texas-0.3%
VMIG-1 Gulf Coast Waste Disp Auth
(Amoco Oil Proj) Ser 95 AMT
1.25%, 7/01/27(b)........................... 200 200,000
A-1+ Lower Neches Valley Auth
(ExxonMobil Proj) Ser 01A
1.10%, 11/01/29............................. 600 600,000
------------
800,000
------------
Total Short-Term Municipal Notes
(cost $4,300,000)......................... 4,300,000
------------
- -------------------------------------------------------------------------------
48 o AllianceBernstein Municipal Income Fund II
Standard Principal
& Poor's Amount
Ratings(a) (000) Value
- --------------------------------------------------------------------------------
Total Investments-98.7%
(cost $201,418,932).............. $ 209,798,661
Other assets less liabilities-1.3%. 2,786,904
---------------
Net Assets-100%.................... $ 212,585,565
===============
FINANCIAL FUTURES CONTRACT (see Note D)
Value at
Number of Expiration Original Sept. 30, Unrealized
Type Contracts Position Month Value 2003 Depreciation
- --------- ---------- -------- ----------- --------- --------- ------------
Interest Rate
10 Yr Swap December
Futures 25 Short 2003 $2,712,406 $2,806,250 $(93,844)
See footnote summary on page 58.
See Glossary of Terms on page 58.
See notes to financial statements.
- --------------------------------------------------------------------------------
AllianceBernstein Municipal Income Fund II o 49
PENNSYLVANIA PORTFOLIO
PORTFOLIO OF INVESTMENTS
September 30, 2003
Standard Principal
& Poor's Amount
Ratings(a) (000) Value
- --------------------------------------------------------------------------------
MUNICIPAL BONDS-97.2%
Long-Term Municipal Bonds-97.2%
Pennsylvania-86.6%
AAA Allegheny Cnty Arpt Rev
MBIA Ser 97 AMT
5.75%, 1/01/10.............................. $ 2,540 $ 2,824,810
Baa1 Allegheny Cnty Health Fac
(South Hills Hlth) Ser 00B
6.75%, 5/01/25(b)........................... 2,555 2,598,128
A Allegheny Cnty Higher Ed
(Thiel College) ACA Ser 99A
5.375%, 11/15/19............................ 1,000 1,042,090
5.375%, 11/15/29............................ 1,500 1,528,515
BBB- Allegheny Cnty Hlth Rev
(Residential Resources) Ser 01
6.60%, 9/01/31(d)........................... 6,000 6,076,860
Aaa Allegheny Cnty MFHR
(Green Meadow Apts)
GNMA Ser 98-A-1 AMT
5.125%, 10/20/40(b)......................... 8,440 8,463,294
BBB+ Allegheny Cnty PCR (USX Corp.)
Ser 96
6.10%, 1/15/18.............................. 4,000 4,132,400
Ser 98
5.50%, 12/01/29............................. 8,680 8,619,760
BBB Bradford Cnty IDR
(Int'l Paper) Ser 95A AMT
6.60%, 3/01/19.............................. 2,500 2,604,175
AAA Butler Cnty GO
FGIC Ser 03
5.25%, 7/15/26.............................. 1,625 1,698,223
BBB- Crawford Cnty Hlth Fac
(Wesbury Methodist) Ser 99
6.25%, 8/15/29.............................. 3,100 3,068,349
BBB+ Cumberland Cnty Hlth Fac
(Presbyterian Homes) Ser 96
6.00%, 12/01/26............................. 2,250 2,261,340
BBB- Delaware Cnty Higher Ed
(Eastern College) Ser 99
5.625%, 10/01/28............................ 3,300 3,280,266
BBB Indiana Cnty PCR
(PSE&G Power) Ser 01 AMT
5.85%, 6/01/27.............................. 2,470 2,485,339
Aaa Lehigh Northampton Airport
MBIA Ser 00 AMT
6.00%, 5/15/30(b)........................... 4,400 4,829,176
- --------------------------------------------------------------------------------
50 o AllianceBernstein Municipal Income Fund II
Standard Principal
& Poor's Amount
Ratings(a) (000) Value
- --------------------------------------------------------------------------------
Aaa Lycoming Cnty Higher Ed
(College of Technology) AMBAC Ser 02
5.25%, 5/01/32(b)........................... $ 4,250 $ 4,398,113
AA Montgomery Cnty Higher Ed
(Beaver College) RADIAN Ser 99
5.70%, 4/01/27.............................. 6,000 6,278,700
A Montgomery Cnty Hospital Rev
(Abington Memorial Hosp) Ser 02A
5.125%, 6/01/32............................. 3,000 2,931,480
BB- New Morgan Solid Waste Disp Rev
(Browning-Ferris) Ser 94 AMT
6.50%, 4/01/19.............................. 1,000 965,970
A Pennsylvania Eco Dev Auth
(30th St Station Garage Proj)
ACA Ser 02 AMT
5.875%, 6/01/33............................. 3,485 3,546,859
BBB- Pennsylvania Eco Dev Auth
(Amtrak) Ser 01A AMT
6.375%, 11/01/41............................ 5,000 5,030,800
A+ Pennsylvania Higher Ed
(UPMC Health Sys) Ser 01A
6.00%, 1/15/31.............................. 2,405 2,514,812
AA+ Pennsylvania Hsg Fin Agy SFMR
(Mortgage Rev) Ser 00-69A AMT
6.25%, 4/01/31.............................. 4,670 4,916,343
Pennsylvania Hsg Fin Agy SFMR
(Mortgage Rev) Ser 02-74B AMT
5.25%, 4/01/32.............................. 3,250 3,298,913
Pennsylvania Hsg Fin Agy SFMR
(Mortgage Rev) Ser 92-35D AMT
10.98%, 4/01/25(c).......................... 9,200 9,575,911
Ser 99-67A AMT
5.90%, 10/01/30............................. 14,980 15,560,923
AAA Philadelphia Airport Sys
AMBAC Ser 95A AMT
6.10%, 6/15/25.............................. 10,000 10,741,399
AAA Philadelphia GO
Ser 01
5.00%, 9/15/31.............................. 3,100 3,119,065
AAA Philadelphia Lease Rev
(Stadiums Proj) FSA Ser 01B
5.25%, 10/01/30(f).......................... 8,000 8,207,520
AAA Pittsburgh Urban Redev Auth SFMR
(Mortgage Rev) FHA AMT
Ser 00A
6.40%, 10/01/31............................. 3,390 3,791,715
Ser 97A
6.25%, 10/01/28............................. 850 888,429
- --------------------------------------------------------------------------------
AllianceBernstein Municipal Income Fund II o 51
Standard Principal
& Poor's Amount
Ratings(a) (000) Value
- --------------------------------------------------------------------------------
AA Potter Cnty Hosp Rev
(Charles Cole Memorial) RADIAN Ser 96
6.05%, 8/01/24.............................. $ 4,340 $ 4,715,150
AAA South Central Hosp Rev
(Wellspan Health) MBIA Ser 01
5.25%, 5/15/31.............................. 4,700 4,850,917
AAA Philadelphia School Dist
FSA Ser 03
5.25%, 6/01/26.............................. 5,000 5,223,100
NR Harrisburg Arpt Auth
(Susquehanna Arpt Proj) Ser 99 AMT
5.50%, 1/01/24.............................. 3,490 2,699,550
BBB Warren Cnty Hosp Auth Rev
(Warren General) Ser 94B
7.00%, 4/01/19.............................. 2,200 2,255,330
AAA Washington Cnty
(Capital Funding) AMBAC Ser 99
6.15%, 12/01/29............................. 7,000 8,258,740
------------
169,282,464
------------
Florida-6.9%
NR Collier Cnty Cmnty Fac Dist
(Fiddlers Creek) Ser 96
7.50%, 5/01/18.............................. 1,635 1,737,515
NR Collier Cnty IDR
(Southern States Utils) Ser 96 AMT
6.50%, 10/01/25............................. 6,500 6,537,375
NR Crossings at Fleming Island CDD
(Eagle Harbor) Ser 00C
7.10%, 5/01/30.............................. 2,000 2,103,700
NR Double Branch Cmnty Dev Dist
(Oakleaf Village) Ser 02A
6.70%, 5/01/34.............................. 1,050 1,085,196
NR Miromar Lakes Cmnty Dev Dist
Ser 00A
7.375%, 5/01/32............................. 1,000 1,039,200
NR Northern Palm Beach Cnty Impt Dist
No.27B Ser 02
6.40%, 8/01/32.............................. 990 999,851
------------
13,502,837
------------
Guam-1.0%
AAA Guam Intl Arpt Auth
MBIA Ser 03B
5.25%, 10/01/19............................. 1,235 1,344,162
5.25%, 10/01/23............................. 500 525,805
------------
1,869,967
------------
- --------------------------------------------------------------------------------
52 o AllianceBernstein Municipal Income Fund II
Standard Principal
& Poor's Amount
Ratings(a) (000) Value
- --------------------------------------------------------------------------------
Illinois-1.0%
NR Antioch Village Spl Svc Area
(Deercrest Proj) Ser 03
6.625%, 3/01/33............................. $ 1,000 $ 972,220
NR Yorkville SVC Area Tax
(Raintree Village Project) Ser 03
6.875%, 3/01/33............................. 1,000 1,011,740
------------
1,983,960
------------
Rhode Island-0.4%
BBB Rhode Island Tobacco Settlement Rev
Ser 02A
6.125%, 6/01/32............................. 950 796,822
------------
Puerto Rico-0.8%
BBB Puerto Rico Tobacco Settlement Rev
(Childrens Trust Fund) Ser 02
5.625%, 5/15/43............................. 1,800 1,554,246
------------
Washington-0.5%
BBB Washington Tobacco Settlement Rev
Ser 02
6.50%, 6/01/26.............................. 1,050 952,088
------------
Total Investments-97.2%
(cost $178,662,627)................ 189,942,384
Other assets less liabilities-2.8%... 5,436,998
------------
Net Assets-100%...................... $195,379,382
============
See footnote summary on page 58.
See Glossary of Terms on page 58.
See notes to financial statements.
- --------------------------------------------------------------------------------
AllianceBernstein Municipal Income Fund II o 53
VIRGINIA PORTFOLIO
PORTFOLIO OF INVESTMENTS
September 30, 2003
Standard Principal
& Poor's Amount
Ratings(a) (000) Value
- --------------------------------------------------------------------------------
MUNICIPAL BONDS-98.3%
Long-Term Municipal Bonds-97.7%
Virginia-87.2%
NR Albemarle Cnty Ed Fac
(The Convent School) Ser 01A
7.50%, 7/15/23............................... $ 1,685 $ 1,815,689
7.75%, 7/15/32.............................. 8,260 9,000,426
AA- Alexandria MFHR
(Buckingham Village Apts) Ser 96A AMT
6.15%, 1/01/29.............................. 4,000 4,116,600
AAA Arlington Cnty GO
8.67%, 1/15/14.............................. 4,700 5,769,438
A2 Arlington Cnty Hosp Rev
(Arlington Health Sys) Ser 01
5.25%, 7/01/31(b)........................... 8,000 8,090,560
AAA Arlington Cnty IDR Sewer Rev
(Ogden Martin) FSA Ser 98B AMT
5.25%, 1/01/09.............................. 2,295 2,587,222
AAA Arlington Cnty MFHR
(Arlington View Terrace) FNMA Ser 01 AMT
5.15%, 11/01/31............................. 1,550 1,600,391
NR Bell Creek Cmnty Dev Auth
Ser 03A
6.75%, 3/01/22.............................. 1,000 1,008,090
NR Broad Street Cmnty Dev Auth
Parking Fac Ser 03
7.50%, 6/01/33.............................. 1,500 1,477,845
BBB+ Chesterfield Cnty
(VA Elec & Pwr Co) Ser 02
5.875%, 6/01/17............................. 3,800 4,072,674
NR Dulles Town Cmnty Dev Auth
(Dulles Town Ctr Proj) Ser 98
6.25%, 3/01/26.............................. 2,070 2,093,784
AAA Fairfax Water Auth Rev Ser 02
5.00%, 4/01/32.............................. 3,680 3,733,397
BBB Giles Cnty IDR
(Hoechst Celanese Corp) Ser 96 AMT
6.45%, 5/01/26.............................. 2,500 2,557,325
A- Greater Richmond Hotel Tax Rev
(Convention Ctr Proj) Ser 00
6.25%, 6/15/32.............................. 11,000 12,123,209
AAA Hampton Convention Ctr Rev
AMBAC Ser 02
5.00%, 1/15/35.............................. 5,150 5,222,203
AAA Harrisonburg MFHR
(Battery Heights Assoc) GNMA Ser 96A
6.25%, 4/20/36.............................. 5,185 5,435,850
- --------------------------------------------------------------------------------
54 o AllianceBernstein Municipal Income Fund II
Standard Principal
& Poor's Amount
Ratings(a) (000) Value
- --------------------------------------------------------------------------------
AAA Harrisonburg MFHR
(Greens of Salem Run) FSA Ser 97 AMT
6.30%, 4/01/29.............................. $ 4,160 $ 4,406,938
BB- Henrico Cnty Solid Waste Rev
(Browning-Ferris) Ser 97A AMT
5.875%, 3/01/17............................. 1,000 914,450
A2 Henry Cnty Hosp Rev
(Memorial Hosp Martinsville & Henry) Ser 97
Prerefunded 1/01/07 @ 101
6.00%, 1/01/27(b)........................... 1,250 1,427,763
BBB Isle of Wight Cnty IDR
(International Paper Co) Ser 00 AMT
6.60%, 5/01/24.............................. 1,700 1,817,725
BBB Isle of Wight Cnty Solid Waste Rev
(Union Camp Corp) Ser 94 AMT
6.55%, 4/01/24.............................. 4,000 4,111,720
A+ James City Cnty Solid Waste Rev
(Anheuser Busch Proj) FSA Ser 97 AMT
6.00%, 4/01/32.............................. 4,200 4,350,108
AAA Loudoun Cnty Hosp Rev
(Loudoun Hosp Ctr) FSA Ser 95
5.80%, 6/01/20.............................. 2,500 2,696,300
AA- Metropolitan Washington DC Arpt Rev
Ser 97B AMT
5.50%, 10/01/23............................. 9,410 9,762,875
AAA Newport News Hlth Care Fac
(Mennowood) GNMA Ser 96A
6.25%, 8/01/36.............................. 2,600 2,755,870
AAA Newport News MFHR
(Walker Village Proj) GNMA Ser 02A AMT
5.55%, 9/20/34.............................. 1,880 1,936,137
5.65%, 3/20/44.............................. 1,660 1,709,352
Baa3 Norfolk Arpt Auth Rev
(Air Cargo) Ser 02 AMT
6.25%, 1/01/30(b)........................... 1,000 996,040
AAA Norfolk Arpt Auth Rev
FGIC Ser 01B AMT
5.30%, 7/01/25.............................. 10,000 10,247,899
AAA Portsmouth Util Rev
FGIC Ser 01B
5.00%, 6/01/26.............................. 1,500 1,519,170
AAA Prince William MFHR
(Woodwind Gables) AMBAC Ser 01A AMT
5.30%, 12/01/34............................. 2,860 2,939,880
NR Staunton Ed Fac
(Mary Baldwin College) Ser 96
6.75%, 11/01/21............................. 3,645 3,808,223
- --------------------------------------------------------------------------------
AllianceBernstein Municipal Income Fund II o 55
Standard Principal
& Poor's Amount
Ratings(a) (000) Value
- --------------------------------------------------------------------------------
AAA Virginia Beach MFHR
(Beth Sholom Terrace) GNMA Ser 02
5.40%, 4/01/44.............................. $ 3,000 $ 3,057,780
AA+ Virginia Biotechnology Auth
(Consolidated Laboratories Proj) Ser 01
5.00%, 9/01/21.............................. 4,170 4,352,479
AA+ Virginia Hsg Dev Auth MFHR
(Rental Hsg) Ser 99 AMT
5.95%, 2/01/23.............................. 5,525 5,812,411
(Rental Hsg) Ser 02B AMT
5.50%, 4/01/27.............................. 5,000 5,151,500
AA+ Virginia Hsg Dev Auth SFMR
(Mortgage Rev) Ser 01C-2 AMT
5.50%, 7/01/27.............................. 9,040 9,268,170
(Mortgage Rev) Ser 01D AMT
5.40%, 6/01/24.............................. 3,155 3,248,451
AA+ Virginia Port Auth Rev
(Newport News) Ser 02 AMT
5.00%, 7/01/27.............................. 1,000 994,420
5.125%, 7/01/24............................. 4,000 4,067,480
AA Virginia Sewer Rev
(Hopwell Wastewtr Fac) Ser 95A AMT
6.00%, 10/01/25(e).......................... 1,375 1,452,083
------------
163,509,927
------------
California-4.0%
NR Orange Cnty Cmnty Fac Dist 91-2
(Serrana) Ser 00
6.25%, 10/01/30............................. 7,400 7,594,324
------------
Florida-1.7%
NR Fleming Island Plantation CDD
Ser 00B
7.375%, 5/01/31............................. 3,000 3,241,620
------------
Guam-0.8%
AAA Guam Arpt Auth Rev
MBIA Ser 03B
5.25%, 10/01/18............................. 620 678,515
5.25%, 10/01/20............................. 225 243,358
5.25%, 10/01/22............................. 470 500,461
------------
1,422,334
------------
Illinois-0.5%
NR Yorkville Cmnty Fac Dist
(Raintree Village Project) Ser 03
6.875%, 3/01/33............................. 1,000 1,011,740
------------
- --------------------------------------------------------------------------------
56 o AllianceBernstein Municipal Income Fund II
Standard Principal
& Poor's Amount
Ratings(a) (000) Value
- --------------------------------------------------------------------------------
New Jersey-2.0%
B New Jersey Eco Dev Auth
(Continental Airlines) Ser 00 AMT
7.20%, 11/15/30............................. $ 4,100 $ 3,763,636
------------
Puerto Rico-1.5%
AAA Puerto Rico Elec Pwr Auth
XLCA Ser 02-1
5.25%, 7/01/22.............................. 1,100 1,183,303
BBB Puerto Rico Tobacco Settlement Rev
(Childrens Trust Fund) Ser 02
5.625%, 5/15/43............................. 1,800 1,554,246
------------
2,737,549
------------
Total Long-Term Municipal Bonds
(cost $174,901,710)........................ 183,281,130
------------
Short-Term Municipal Notes(g)-0.6%
California-0.3%
A-1+ Los Angeles Department of
Water and Power
(Electric Plant Revenue Bonds) Series 01B-3
1.18%, 7/01/34.............................. 500 500,000
------------
New York-0.3%
A-1+ New York City Transitional Fin Auth
(NYC Recovery) Ser 03-3B
1.20%, 11/01/22............................. 700 700,000
------------
Total Short-Term Municipal Notes
(cost $1,200,000)......................... 1,200,000
------------
Total Investments-98.3%
(cost $176,101,710)....................... 184,481,130
Other assets less liabilities-1.7%.......... 3,118,115
------------
Net Assets-100%............................. $187,599,245
============
FINANCIAL FUTURES CONTRACT (see Note D)
Value at
Number of Expiration Original Sept. 30, Unrealized
Type Contracts Position Month Value 2003 Depreciation
- --------- ---------- ------------------ --------- -------------------------
Interest Rate
10 Yr Swap December
Futures 15 Short 2003 $1,627,444 $1,683,750 $(56,306)
See footnote summary on page 58.
See Glossary of Terms on page 58.
See notes to financial statements.
- --------------------------------------------------------------------------------
AllianceBernstein Municipal Income Fund II o 57
(a) Unaudited.
(b) Moody's rating-unaudited.
(c) Inverse floater-security with variable or floating interest rate that moves
in opposite direction of short-term interest rates.
(d) Position segregated to collateralize margin requirements for open futures
contracts, as follows: Arizona Portfolio, $135,711; Florida Portfolio,
$40,725; Massachusetts Portfolio, $72,330; Michigan Portfolio, $40,735; New
Jersey Portfolio, $211,314; Ohio Portfolio, $77,157; Virginia Portfolio,
$47,523.
(e) Coupon increases periodically based upon a predetermined schedule. Stated
interest rate in effect at September 30, 2003.
(f) Fitch's rating-unaudited.
(g) Variable rate coupon, rate shown as of September 30, 2003.
Glossary of Terms:
ACA American Capital Access
AMBAC American Municipal Bond Assurance Corporation
AMT Alternative Minimum Tax
BAN Bond Anticipation Note
CBT Chicago Board of Trade
CDD Community Development District
CONNIE LEE Connie Lee Insurance Company
CFD Community Facility District
COP Certificate of Participation
ETM Escrow to Maturity
FGIC Financial Guaranty Insurance Company
FHLMC Federal Home Loan Mortgage Corporation
FNMA Federal National Mortgage Association
FSA Financial Security Assurance, Inc.
GNMA Government National Mortgage Association
GO General Obligation
IDA Industrial Development Authority
IDR Industrial Development Revenue
MBIA Municipal Bond Investors Assurance
MFHR Multi-Family Housing Revenue
NR Rating not applied for
PCR Pollution Control Revenue
RADIAN Radian Group, Inc.
SFMR Single Family Mortgage Revenue
XLCA XL Capital Assurance, Inc.
- --------------------------------------------------------------------------------
58 o AllianceBernstein Municipal Income Fund II
STATEMENT OF ASSETS & LIABILITIES
September 30, 2003
Statement of Assets & Liabilities
- --------------------------------------------------------------------------------
Arizona Florida
--------------- ---------------
Assets
Investments in securities, at value
(cost: $206,475,668 and $243,650,111,
respectively)......................... $ 211,630,800 $ 254,171,968
Cash ................................... -0- 179,058
Interest receivable..................... 3,524,387 5,318,708
Receivable for investment securities
sold.................................. 1,750,555 1,859,400
Receivable for shares of beneficial
interest sold......................... 663,893 2,192,199
--------------- ---------------
Total assets............................ 217,569,635 263,721,333
--------------- ---------------
Liabilities
Due to custodian........................ 260,619 -0-
Payable for shares of beneficial
interest redeemed..................... 739,613 669,110
Dividends payable....................... 242,010 318,516
Distribution fee payable................ 118,836 149,538
Advisory fee payable.................... 27,642 18,561
Variation margin on futures contracts... 16,969 21,375
Administrative fee payable.............. 7,000 24,521
Payable for investment securities
purchased............................. -0- 1,013,020
Unrealized depreciation on interest rate
swap contract......................... -0- 66,320
Accrued expenses and other liabilities.. 68,450 95,062
--------------- ---------------
Total liabilities....................... 1,481,139 2,376,023
--------------- ---------------
Net Assets.............................. $ 216,088,496 $ 261,345,310
--------------- ---------------
Composition of Net Assets
Shares of beneficial interest, at par... $ 200,995 $ 256,753
Additional paid-in capital.............. 214,265,899 262,089,648
Distributions in excess of net investment
income................................ (242,010) (318,516)
Accumulated net realized loss on
investment transactions................. (3,246,998) (11,078,073)
Net unrealized appreciation of
investments........................... 5,110,610 10,395,498
--------------- ---------------
$ 216,088,496 $ 261,345,310
--------------- ---------------
Class A Shares
Net assets.............................. $ 101,040,059 $ 109,543,022
--------------- ---------------
Shares of beneficial interest
outstanding........................... 9,390,088 10,767,145
--------------- ---------------
Class B Shares
Net assets.............................. $ 89,938,166 $ 104,873,754
--------------- ---------------
Shares of beneficial interest
outstanding........................... 8,372,094 10,299,289
--------------- ---------------
Class C Shares
Net assets.............................. $ 25,110,271 $ 46,928,534
--------------- ---------------
Shares of beneficial interest
outstanding........................... 2,337,294 4,608,903
--------------- ---------------
Calculation of Maximum Offering Price
Class A Shares
Net asset value and redemption price
per share............................. $10.76 $10.17
Sales charge--4.25% of public
offering price........................ .48 .45
------- ------
Maximum offering price.................. $11.24 $10.62
------- ------
Class B Shares
Net asset value and offering price
per share............................. $10.74 $10.18
------- ------
Class C Shares
Net asset value and offering price
per share............................. $10.74 $10.18
------- ------
See notes to financial statements.
- --------------------------------------------------------------------------------
AllianceBernstein Municipal Income Fund II o 59
Massachusetts Michigan
--------------- ---------------
Assets
Investments in securities, at value
(cost: $162,482,007 and $158,628,340,
respectively)......................... $ 170,103,221 $ 162,981,287
Cash ................................... 317,979 920,063
Interest receivable..................... 2,574,254 2,803,449
Receivable for shares of beneficial
interest sold......................... 363,515 341,748
--------------- ---------------
Total assets............................ 173,358,969 167,046,547
--------------- ---------------
Liabilities
Payable for investment securities
purchased............................. 5,679,010 -0-
Payable for shares of beneficial
interest redeemed....................... 267,373 587,807
Dividends payable....................... 186,941 176,127
Distribution fee payable................ 109,738 106,250
Unrealized depreciation on interest rate
swap contracts........................ 100,383 -0-
Administrative fee payable.............. 24,995 -0-
Variation margin on futures contracts... 24,313 -0-
Advisory fee payable.................... 9,860 21,565
Accrued expenses and other liabilities.. 93,606 103,119
--------------- ---------------
Total liabilities....................... 6,496,219 994,868
--------------- ---------------
Net Assets.............................. $ 166,862,750 $ 166,051,679
--------------- ---------------
Composition of Net Assets
Shares of beneficial interest, at par... $ 154,853 $ 155,491
Additional paid-in capital.............. 171,409,154 162,153,768
Distributions in excess of net investment
income................................ (186,491) (176,127)
Accumulated net realized loss on
investment transactions................. (11,970,114) (434,400)
Net unrealized appreciation of
investments........................... 7,455,348 4,352,947
--------------- ---------------
$ 166,862,750 $ 166,051,679
--------------- ---------------
Class A Shares
Net assets.............................. $ 46,341,602 $ 53,021,751
--------------- ---------------
Shares of beneficial interest
outstanding........................... 4,294,731 4,959,687
--------------- ---------------
Class B Shares
Net assets.............................. $ 73,978,666 $ 58,034,008
--------------- ---------------
Shares of beneficial interest
outstanding.......................... 6,869,127 5,436,839
--------------- ---------------
Class C Shares
Net assets.............................. $ 46,542,482 $ 54,995,920
--------------- ---------------
Shares of beneficial interest
outstanding........................... 4,321,483 5,152,560
--------------- ---------------
Calculation of Maximum Offering Price
Class A Shares
Net asset value and redemption price
per share............................. $10.79 $10.69
Sales charge--4.25% of public
offering price........................ .48 .47
------- --------
Maximum offering price.................. $11.27 $11.16
------- --------
Class B Shares
Net asset value and offering price
per share............................. $10.77 $10.67
------- --------
Class C Shares
Net asset value and offering price
per share............................. $10.77 $10.67
------- --------
See notes to financial statements.
- --------------------------------------------------------------------------------
60 o AllianceBernstein Municipal Income Fund II
Minnesota New Jersey
--------------- ---------------
Assets
Investments in securities, at value
(cost: $105,725,242 and $227,654,691,
respectively)......................... $ 109,699,118 $ 236,842,938
Cash ................................... 98,346 268,702
Interest receivable..................... 1,588,585 4,209,061
Receivable for shares of beneficial
interest sold......................... 38,961 751,524
Receivable for investment securities sold -0- 1,740,000
Unrealized appreciation on interest rate
swap contract......................... -0- 1,013
--------------- ---------------
Total assets............................ 111,425,010 243,813,238
--------------- ---------------
Liabilities
Dividends payable....................... 120,788 259,604
Payable for shares of beneficial
interest redeemed..................... 29,407 1,152,035
Distribution fee payable................ 51,782 147,415
Advisory fee payable.................... 12,179 55,836
Administrative fee payable.............. -0- 23,418
Variation margin on futures contracts... -0- 94,359
Payable for investment securities
purchased............................. -0- 4,433,969
Accrued expenses and other liabilities.. 75,985 87,547
--------------- ---------------
Total liabilities....................... 290,141 6,254,183
--------------- ---------------
Net Assets.............................. $ 111,134,869 $ 237,559,055
Composition of Net Assets
Shares of beneficial interest, at par... $ 109,461 $ 242,382
Additional paid-in capital.............. 109,194,067 244,163,967
Distributions in excess of net investment
income.................................. (120,788) (259,604)
Accumulated net realized loss on investment
transactions............................ (2,021,747) (15,495,774)
Net unrealized appreciation of
investments............................ 3,973,876 8,908,084
--------------- ---------------
$ 111,134,869 $ 237,559,055
--------------- ---------------
Class A Shares
Net assets.............................. $ 67,520,630 $ 81,631,953
--------------- ---------------
Shares of beneficial interest
outstanding.......................... 6,650,780 8,331,124
--------------- ---------------
Class B Shares
Net assets.............................. $ 24,366,204 $ 110,294,267
--------------- ---------------
Shares of beneficial interest
outstanding........................... 2,400,920 11,253,062
--------------- ---------------
Class C Shares
Net assets.............................. $ 19,248,035 $ 45,632,835
--------------- ---------------
Shares of beneficial interest
outstanding........................... 1,894,431 4,653,975
--------------- ---------------
Calculation of Maximum Offering Price
Class A Shares
Net asset value and redemption price
per share............................. $10.15 $ 9.80
Sales charge--4.25% of public
offering price........................ .45 .43
------- --------
Maximum offering price.................. $10.60 $10.23
------- --------
Class B Shares
Net asset value and offering price
per share............................. $10.15 $ 9.80
------- -------
Class C Shares
Net asset value and offering price
per share............................ $10.16 $ 9.81
------- -------
See notes to financial statements.
- --------------------------------------------------------------------------------
AllianceBernstein Municipal Income Fund II o 61
Ohio Pennsylvania
--------------- ---------------
Assets
Investments in securities, at value
(cost: $201,418,932 and $178,662,627,
respectively)......................... $ 209,798,661 $ 189,942,384
Cash ................................... 64,380 733,384
Interest receivable..................... 3,094,743 4,137,230
Receivable for shares of beneficial
interest sold......................... 444,869 328,784
Receivable for investment securities
sold................. -0- 1,210,000
Receivable from Adviser................. -0- 9,656
--------------- ---------------
Total assets............................ 213,402,653 196,361,438
--------------- ---------------
Liabilities
Payable for shares of beneficial
interest redeemed..................... 295,883 523,517
Dividends payable....................... 228,306 223,903
Distribution fee payable................ 130,370 112,188
Variation margin on futures contracts... 30,469 -0-
Advisory fee payable.................... 29,661 -0-
Administrative fee payable.............. 24,177 23,489
Accrued expenses and other liabilities.. 78,222 98,959
--------------- ---------------
Total liabilities....................... 817,088 982,056
--------------- ---------------
Net Assets.............................. $ 212,585,565 $ 195,379,382
--------------- ---------------
Composition of Net Assets
Shares of beneficial interest, at par... $ 211,622 $ 187,139
Additional paid-in capital.............. 213,524,632 192,003,550
Distributions in excess of net investment
income................................ (228,306) (161,574)
Accumulated net realized loss on
investment transactions................. (9,208,268) (7,929,490)
Net unrealized appreciation of
investments........................... 8,285,885 11,279,757
--------------- ---------------
$ 212,585,565 $ 195,379,382
--------------- ---------------
Class A Shares
Net assets.............................. $ 75,101,765 $ 84,053,233
--------------- ---------------
Shares of beneficial interest
outstanding........................... 7,473,490 8,050,828
--------------- ---------------
Class B Shares
Net assets.............................. $ 83,421,749 $ 68,408,920
--------------- ---------------
Shares of beneficial interest
outstanding........................... 8,306,980 6,552,381
--------------- ---------------
Class C Shares
Net assets.............................. $ 54,062,051 $ 42,917,229
--------------- ---------------
Shares of beneficial interest
outstanding........................... 5,381,698 4,110,701
--------------- ---------------
Calculation of Maximum Offering Price
Class A Shares
Net asset value and redemption price
per share............................. $10.05 $10.44
Sales charge--4.25% of public
offering price........................ .45 .46
------- --------
Maximum offering price.................. $10.50 $10.90
------- --------
Class B Shares
Net asset value and offering price
per share............................ $10.04 $ 10.44
------- -------
Class C Shares
Net asset value and offering price
per share............................ $10.05 $ 10.44
------- -------
See notes to financial statements.
- --------------------------------------------------------------------------------
62 o AllianceBernstein Municipal Income Fund II
Statement of Assets & Liabilities
Virginia
---------------
Assets
Investments in securities, at value
(cost: $176,101,710).................................. $ 184,481,130
Cash ................................................... 222,840
Interest receivable..................................... 3,369,722
Receivable for shares of beneficial interest sold....... 126,378
Due from Adviser........................................ 14,021
---------------
Total assets............................................ 188,214,091
---------------
Liabilities
Dividends payable....................................... 207,185
Payable for shares of beneficial interest redeemed...... 184,888
Distribution fee payable................................ 112,368
Variation margin on futures contracts................... 18,281
Accrued expenses........................................ 92,124
---------------
Total liabilities....................................... 614,846
---------------
Net Assets.............................................. $ 187,599,245
---------------
Composition of Net Assets
Shares of beneficial interest, at par................... $ 174,714
Additional paid-in capital.............................. 184,050,127
Distributions in excess of net investment income........ (10,486)
Accumulated net realized loss on investment
transactions.......................................... (4,938,224)
Net unrealized appreciation of investments.............. 8,323,114
---------------
$ 187,599,245
---------------
Class A Shares
Net assets.............................................. $ 71,572,311
---------------
Shares of beneficial interest outstanding............... 6,657,451
---------------
Class B Shares
Net assets.............................................. $ 82,541,366
---------------
Shares of beneficial interest outstanding............... 7,692,163
---------------
Class C Shares
Net assets.............................................. $ 33,485,568
---------------
Shares of beneficial interest outstanding............... 3,121,802
---------------
Calculation of Maximum Offering Price
Class A Shares
Net asset value and redemption price per share.......... $10.75
Sales charge--4.25% of public offering price............ .48
--------
Maximum offering price.................................. $11.23
--------
Class B Shares
Net asset value and offering price per share............ $10.73
--------
Class C Shares
Net asset value and offering price per share............ $10.73
--------
See notes to financial statements.
- --------------------------------------------------------------------------------
AllianceBernstein Municipal Income Fund II o 63
STATEMENT OF OPERATIONS
Year Ended September 30, 2003
Arizona Florida
--------------- ---------------
Investment Income
Interest................................ $ 12,503,869 $ 14,980,848
--------------- ---------------
Expenses
Advisory fee............................ 1,420,369 1,679,188
Distribution fee--Class A............... 325,622 326,533
Distribution fee--Class B............... 929,062 1,084,886
Distribution fee--Class C............... 258,124 513,373
Custodian............................... 120,982 134,679
Administrative.......................... 94,500 94,500
Transfer agency......................... 80,879 98,750
Audit and legal......................... 73,486 81,521
Registration............................ 26,620 22,099
Printing................................ 19,338 29,187
Trustees' fees.......................... 2,500 2,500
Miscellaneous........................... 20,861 26,541
--------------- ---------------
Total expenses.......................... 3,372,343 4,093,757
Less: expense offset arrangement
(see Note B).......................... (55) (55)
Less: expenses waived and reimbursed by
Adviser (see Note B).................... (768,637) (879,294)
--------------- ---------------
Net expenses............................ 2,603,651 3,214,408
--------------- ---------------
Net investment income................... 9,900,218 11,766,440
--------------- ---------------
Realized and Unrealized Gain (Loss)
on Investment Transactions
Net realized gain (loss) on:
Investments.......................... (255,096) 1,789,970
Futures contracts.................... (193,423) -0-
Net change in unrealized appreciation/
depreciation on:
Investments.......................... (5,848,940) (5,299,912)
Futures contracts.................... 155,639 -0-
Swap contracts....................... -0- (118,654)
--------------- ---------------
Net loss on investment transactions..... (6,141,820) (3,628,596)
--------------- ---------------
Net Increase in Net Assets from
Operations............................. $ 3,758,398 $ 8,137,844
--------------- ---------------
See notes to financial statements.
- --------------------------------------------------------------------------------
64 o AllianceBernstein Municipal Income Fund II
Statement of Operations
Massachusetts Michigan
--------------- ---------------
Investment Income
Interest................................ $ 9,882,319 $ 9,436,133
--------------- ---------------
Expenses
Advisory fee............................ 1,116,133 1,092,766
Distribution fee--Class A............... 156,442 171,584
Distribution fee--Class B............... 778,513 565,264
Distribution fee--Class C............... 485,825 611,214
Custodian............................... 128,932 127,867
Administrative.......................... 94,500 94,500
Transfer agency......................... 85,863 97,653
Audit and legal......................... 81,493 79,921
Registration............................ 24,627 44,626
Printing................................ 16,071 20,927
Trustees' fees.......................... 2,500 2,500
Miscellaneous........................... 25,147 17,500
--------------- ---------------
Total expenses.......................... 2,996,046 2,926,322
Less: expense offset arrangement
(see Note B).......................... (54) (58)
Less: expenses waived and reimbursed by
Adviser (see Note B).................. (646,589) (336,816)
--------------- ---------------
Net expenses............................ 2,349,403 2,589,448
Net investment income................... 7,532,916 6,846,685
--------------- ---------------
Realized and Unrealized Gain (Loss) on
Investment Transactions Net realized gain
(loss) on:
Investments.......................... (549,141) 77,372
Futures contracts.................... (59,669) (97,957)
Net change in unrealized appreciation/
depreciation of:
Investments.......................... (4,084,507) (3,317,069)
Futures contracts.................... 15,192 55,122
Swap contracts....................... 17,055 -0-
--------------- ---------------
Net loss on investment transactions..... (4,661,070) (3,282,532)
--------------- ---------------
Net Increase in Net Assets
from Operations....................... $ 2,871,846 $ 3,564,153
--------------- ---------------
See notes to financial statements.
- --------------------------------------------------------------------------------
AllianceBernstein Municipal Income Fund II o 65
Minnesota New Jersey
--------------- ---------------
Investment Income
Interest................................ $ 5,846,893 $ 13,887,445
--------------- ---------------
Expenses
Advisory fee............................ 686,867 1,607,478
Distribution fee--Class A............... 194,689 261,836
Distribution fee--Class B............... 244,774 1,199,067
Distribution fee--Class C............... 205,248 500,113
Custodian............................... 113,875 138,186
Administrative.......................... 94,500 94,500
Audit and legal......................... 83,441 74,524
Transfer agency......................... 63,327 146,848
Registration............................ 7,765 9,301
Printing................................ 6,556 52,017
Trustees' fees.......................... 2,500 2,500
Miscellaneous........................... 17,584 18,238
--------------- ---------------
Total expenses.......................... 1,721,126 4,104,608
Less: expense offset arrangement
(see Note B).......................... (35) (87)
Less: expenses waived and reimbursed by
Adviser (see Note B).................. (416,988) (677,548)
--------------- ---------------
Net expenses............................ 1,304,103 3,426,973
Net investment income................... 4,542,790 10,460,472
--------------- ---------------
Realized and Unrealized Gain (Loss)
on Investment Transactions
Net realized loss on:
Investments transactions............. (88,173) (2,144,453)
Futures contracts.................... -0- (90,736)
Net change in unrealized appreciation/
depreciation of:
Investments.......................... (1,558,055) (4,077,011)
Futures contracts.................... -0- (114,551)
Swap contracts....................... -0- 1,013
--------------- ---------------
Net loss on investment transactions..... (1,646,228) (6,425,738)
--------------- ---------------
Net Increase in Net Assets
from Operations....................... $ 2,896,562 $ 4,034,734
--------------- ---------------
See notes to financial statements.
- ------------------------------------------------------------------------------
66 o AllianceBernstein Municipal Income Fund II
Statement of Operations
Ohio Pennsylvania
--------------- ---------------
Investment Income
Interest................................ $ 11,280,425 $ 12,201,123
--------------- ---------------
Expenses
Advisory fee............................ 1,296,382 1,302,151
Distribution fee--Class A............... 217,890 270,693
Distribution fee--Class B............... 793,682 724,454
Distribution fee--Class C............... 554,230 456,679
Custodian............................... 128,360 132,086
Transfer agency......................... 106,025 128,577
Administrative.......................... 94,500 94,500
Audit and legal......................... 77,232 74,231
Printing................................ 29,158 36,686
Registration............................ 21,576 16,655
Trustees' fees.......................... 2,500 2,500
Miscellaneous........................... 17,598 19,677
--------------- ---------------
Total expenses.......................... 3,339,133 3,258,889
Less: expense offset arrangement
(see Note B).......................... (64) (69)
Less: expenses waived and reimbursed by
Adviser (see Note B).................. (632,451) (452,746)
--------------- ---------------
Net expenses............................ 2,706,618 2,806,074
--------------- ---------------
Net investment income................... 8,573,807 9,395,049
--------------- ---------------
Realized and Unrealized Gain (Loss)
on Investment Transactions
Net realized loss on:
Investment transactions.............. (1,028,411) (771,000)
Futures contracts.................... (181,404) -0-
Net change in unrealized appreciation/
depreciation of:
Investments.......................... 2,210,479 (2,447,411)
Futures contracts.................... 35,385 -0-
--------------- ---------------
Net gain (loss) on investment
transactions.......................... 1,036,049 (3,218,411)
--------------- ---------------
Net Increase in Net Assets
from Operations....................... $ 9,609,856 $ 6,176,638
--------------- ---------------
See notes to financial statements.
- --------------------------------------------------------------------------------
AllianceBernstein Municipal Income Fund II o 67
Virginia
---------------
Investment Income
Interest................................................ $ 10,926,495
---------------
Expenses
Advisory fee............................................ 1,221,289
Distribution fee--Class A............................... 223,358
Distribution fee--Class B............................... 854,675
Distribution fee--Class C............................... 354,860
Custodian............................................... 120,236
Administrative.......................................... 94,500
Transfer agency......................................... 89,579
Audit and legal......................................... 78,623
Printing................................................ 17,781
Registration............................................ 15,198
Trustees' fees.......................................... 2,500
Miscellaneous........................................... 15,873
---------------
Total expenses.......................................... 3,088,472
Less: expense offset arrangement (see Note B)........... (61)
Less: expenses waived and reimbursed by
Adviser (see Note B).................................. (834,812)
---------------
Net expenses............................................ 2,253,599
---------------
Net investment income................................... 8,672,896
---------------
Realized and Unrealized Gain (Loss)
on Investments
Net realized gain on investment transactions............ 1,415,739
Net change in unrealized appreciation/depreciation of:
Investments............................................. (2,115,056)
Futures contracts.................................... (56,306)
---------------
Net loss on investments................................. (755,623)
---------------
Net Increase in Net Assets from Operations.............. $ 7,917,273
---------------
See notes to financial statements.
- --------------------------------------------------------------------------------
68 o AllianceBernstein Municipal Income Fund II
STATEMENT OF CHANGES IN NET ASSETS
Arizona
--------------------------------
Year Ended Year Ended
September 30, September 30,
2003 2002
--------------- ---------------
Increase (Decrease) in
Net Assets from Operations
Net investment income................... $ 9,900,218 $ 8,397,874
Net realized gain (loss) on investment
transactions.......................... (448,519) 142,987
Net change in unrealized
appreciation/depreciation
of investments........................ (5,693,301) 5,373,968
--------------- ---------------
Net increase in net assets
from operations....................... 3,758,398 13,914,829
Dividends and Distributions
to Shareholders from
Net investment income
Class A.............................. (5,121,405) (4,762,885)
Class B.............................. (3,716,622) (2,891,256)
Class C.............................. (1,032,018) (743,733)
Distributions in excess of
net investment income
Class A.............................. -0- (327,090)
Class B.............................. -0- (279,220)
Class C.............................. -0- (74,991)
Transactions in Shares of
Beneficial Interest
Net increase (decrease)................. (15,652,231) 75,324,893
--------------- ---------------
Total increase (decrease)............... (21,763,878) 80,160,547
Net Assets
Beginning of period..................... 237,852,374 157,691,827
--------------- ---------------
End of period........................... $ 216,088,496 $ 237,852,374
--------------- ---------------
See notes to financial statements.
- --------------------------------------------------------------------------------
AllianceBernstein Municipal Income Fund II o 69
Florida
--------------------------------
Year Ended Year Ended
September 30, September 30,
2003 2002
--------------- ---------------
Increase (Decrease) in
Net Assets from Operations
Net investment income................... $ 11,766,440 $ 11,481,638
Net realized gain (loss) on investment
transactions.......................... 1,789,970 (671,738)
Net change in unrealized
appreciation/depreciation
of investments........................ (5,418,566) 5,379,775
--------------- ---------------
Net increase in net assets
from operations....................... 8,137,844 16,189,675
Dividends and Distributions
to Shareholders from
Net investment income
Class A.............................. (5,600,400) (5,311,816)
Class B.............................. (4,815,342) (4,277,799)
Class C.............................. (2,278,005) (1,917,737)
Distributions in excess of
net investment income
Class A.............................. -0- (25,651)
Class B.............................. -0- (19,570)
Class C.............................. -0- (8,884)
Transactions in Shares of
Beneficial Interest
Net increase............................ 1,843,321 33,753,290
--------------- ---------------
Total increase (decrease)............... (2,712,582) 38,381,508
Net Assets
Beginning of period..................... 264,057,892 225,676,384
--------------- ---------------
End of period........................... $ 261,345,310 $ 264,057,892
--------------- ---------------
See notes to financial statements.
- --------------------------------------------------------------------------------
70 o AllianceBernstein Municipal Income Fund II
Statement of Changes in Net Assets
Massachusetts
--------------------------------
Year Ended Year Ended
September 30, September 30,
2003 2002
--------------- ---------------
Increase (Decrease) in
Net Assets from Operatons
Net investment income................... $ 7,532,916 $ 8,305,222
Net realized loss on investment
transactions.......................... (608,810) (2,391,405)
Net change in unrealized
appreciation/depreciation
of investments........................ (4,052,260) 3,125,471
--------------- ---------------
Net increase in net assets
from operations....................... 2,871,846 9,039,288
Dividends and Distributions
to Shareholders from
Net investment income
Class A.............................. (2,532,333) (3,168,299)
Class B.............................. (3,220,270) (3,059,167)
Class C.............................. (2,012,495) (2,077,756)
Distributions in excess of
net investment income
Class A.............................. -0- (162,851)
Class B.............................. -0- (218,382)
Class C.............................. -0- (148,151)
Transactions in Shares of
Beneficial Interest
Net increase (decrease)................. (26,812,689) 28,102,168
--------------- ---------------
Total increase (decrease)............... (31,705,941) 28,306,850
Net Assets
Beginning of period..................... 198,568,691 170,261,841
End of period........................... $ 166,862,750 $ 198,568,691
--------------- ---------------
See notes to financial statements.
- --------------------------------------------------------------------------------
AllianceBernstein Municipal Income Fund II o 71
Michigan
--------------------------------
Year Ended Year Ended
September 30, September 30,
2003 2002
--------------- ---------------
Increase (Decrease) in
Net Assets from Operations
Net investment income................... $ 6,846,685 $ 5,068,456
Net realized gain (loss) on investment
transactions.......................... (20,585) 369,227
Net change in unrealized
appreciation/depreciation
of investments........................ (3,261,947) 4,324,570
Net increase in net assets
from operations....................... 3,564,153 9,762,253
Dividends and Distributions
to Shareholders from
Net investment income
Class A.............................. (2,671,344) (1,951,146)
Class B.............................. (2,244,081) (1,606,360)
Class C.............................. (2,431,035) (1,510,950)
Distributions in excess of
net investment income
Class A.............................. -0- (165,455)
Class B.............................. -0- (170,814)
Class C.............................. -0- (165,339)
Transactions in Shares of
Beneficial Interest
Net increase............................ 3,522,985 75,737,168
--------------- ---------------
Total increase (decrease)............... (259,322) 79,929,357
Net Assets
Beginning of period..................... 166,311,001 86,381,644
--------------- ---------------
End of period........................... $ 166,051,679 $ 166,311,001
--------------- ---------------
See notes to financial statements.
- --------------------------------------------------------------------------------
72 o AllianceBernstein Municipal Income Fund II
Statement of Changes in Net Assets
Minnesota
--------------------------------
Year Ended Year Ended
September 30, September 30,
2003 2002
--------------- ---------------
Increase (Decrease) in
Net Assetsfrom Operations
Net investment income................... $ 4,542,790 $ 3,880,278
Net realized loss on investment
transactions.......................... (88,173) (91,748)
Net change in unrealized
appreciation/depreciation
of investments........................ (1,558,055) 2,856,372
--------------- ---------------
Net increase in net assets
from operations....................... 2,896,562 6,644,902
Dividends and Distributions
to Shareholders from:
Net investment income
Class A.............................. (2,971,448) (2,416,006)
Class B.............................. (949,471) (827,252)
Class C.............................. (794,958) (637,020)
Distributions in excess of
net investment income
Class A.............................. -0- (143,229)
Class B.............................. -0- (61,845)
Class C.............................. -0- (51,671)
Transactions in Shares of
Beneficial Interest
Net increase............................ 2,363,542 48,843,637
--------------- ---------------
Total increase.......................... 544,227 51,351,516
Net Assets
Beginning of period..................... 110,590,642 59,239,126
--------------- ---------------
End of period........................... $ 111,134,869 $ 110,590,642
--------------- ---------------
See notes to financial statements.
- --------------------------------------------------------------------------------
AllianceBernstein Municipal Income Fund II o 73
New Jersey
--------------------------------
Year Ended Year Ended
September 30, September 30,
2003 2002
--------------- ---------------
Increase (Decrease) in
Net Assets from Operations
Net investment income................... $ 10,460,472 $ 11,396,129
Net realized loss on investment
transactions.......................... (2,235,189) (8,404,619)
Net change in unrealized
appreciation/depreciation
of investments........................ (4,190,549) 7,479,510
--------------- ---------------
Net increase in net assets from
operations............................ 4,034,734 10,471,020
Dividends and Distributions
to Shareholders from:
Net investment income
Class A.............................. (4,099,778) (4,431,078)
Class B.............................. (4,761,093) (4,771,106)
Class C.............................. (1,987,161) (2,193,945)
Distributions in excess of
net investment income
Class A.............................. -0- (288,883)
Class B.............................. -0- (342,391)
Class C.............................. -0- (160,213)
Transactions in Shares of
Beneficial Interest
Net increase (decrease)................. (33,812,860) 49,499,390
--------------- ---------------
Total increase (decrease)............... (40,626,158) 47,782,794
Net Assets
Beginning of period..................... 278,185,213 230,402,419
--------------- ---------------
End of period........................... $ 237,559,055 $ 278,185,213
--------------- ---------------
See notes to financial statements.
- --------------------------------------------------------------------------------
74 o AllianceBernstein Municipal Income Fund II
Statement of Changes in Net Assets
Ohio
--------------------------------
Year Ended Year Ended
September 30, September 30,
2003 2002
--------------- ---------------
Increase (Decrease) in
Net Assets from Operations
Net investment income................... $ 8,573,807 $ 7,634,153
Net realized loss on investment
transactions.......................... (1,209,815) (1,108,224)
Net change in unrealized
appreciation/depreciation
of investments........................ 2,245,864 1,776,717
--------------- ---------------
Net increase in net assets
from operations....................... 9,609,856 8,302,646
Dividends and Distributions
to Shareholders from:
Net investment income
Class A.............................. (3,471,508) (3,030,759)
Class B.............................. (3,234,231) (2,820,644)
Class C.............................. (2,263,948) (1,951,729)
Distributions in excess of
net investment income
Class A.............................. -0- (139,437)
Class B.............................. -0- (162,736)
Class C.............................. -0- (115,485)
Transactions in Shares of
Beneficial Interest
Net increase............................ 14,680,272 59,253,392
--------------- ---------------
Total increase.......................... 15,320,441 59,335,248
Net Assets
Beginning of period..................... 197,265,124 137,929,876
--------------- ---------------
End of period........................... $ 212,585,565 $ 197,265,124
--------------- ---------------
See notes to financial statements.
- --------------------------------------------------------------------------------
AllianceBernstein Municipal Income Fund II o 75
Pennsylvania
--------------------------------
Year Ended Year Ended
September 30, September 30,
2003 2002
--------------- ---------------
Increase (Decrease) in
Net Assets from Operations
Net investment income................... $ 9,395,049 $ 9,337,906
Net realized loss on investment
transactions.......................... (771,000) (361,775)
Net change in unrealized
appreciation/depreciation
of investments........................ (2,447,411) 4,118,325
--------------- ---------------
Net increase in net assets
from operations....................... 6,176,638 13,094,456
Dividends and Distributions
to Shareholders from:
Net investment income
Class A.............................. (4,381,778) (4,673,904)
Class B.............................. (2,999,781) (2,915,487)
Class C.............................. (1,891,160) (1,748,515)
Distributions in excess of
net investment income
Class A.............................. -0- (145,114)
Class B.............................. -0- (71,809)
Class C.............................. -0- (60,764)
Transactions in Shares of
Beneficial Interest
Net increase (decrease)................. (21,636,211) 24,426,896
--------------- ---------------
Total increase (decrease) .............. (24,732,292) 27,905,759
Net Assets
Beginning of period..................... 220,111,674 192,205,915
--------------- ---------------
End of period........................... $ 195,379,382 $ 220,111,674
--------------- ---------------
See notes to financial statements.
- --------------------------------------------------------------------------------
76 o AllianceBernstein Municipal Income Fund II
Statement of Changes in Net Assets
Virginia
--------------------------------
Year Ended Year Ended
September 30, September 30,
2003 2002
--------------- ---------------
Increase (Decrease) in
Net Assets From Operations
Net investment income................... $ 8,672,896 $ 7,700,184
Net realized gain (loss) on investment
transactions.......................... 1,415,739 (71,972)
Net change in unrealized
appreciation/depreciation
of investments........................ (2,171,362) 4,597,900
--------------- ---------------
Net increase in net assets
from operations....................... 7,917,273 12,226,112
Dividend and Distributions
to Shareholders from:
Net investment income
Class A.............................. (3,538,492) (3,220,562)
Class B.............................. (3,470,151) (3,259,750)
Class C.............................. (1,440,661) (1,219,872)
Distributions in excess of
net investment income
Class A.............................. -0- (120,709)
Class B.............................. -0- (161,600)
Class C.............................. -0- (60,445)
Transactions In Shares of
Beneficial Interest
Net increase (decrease)................. (8,903,470) 45,896,155
--------------- ---------------
Total increase (decrease)............... (9,435,501) 50,079,329
Net Assets
Beginning of period..................... 197,034,746 146,955,417
--------------- ---------------
End of period........................... $ 187,599,245 $ 197,034,746
--------------- ---------------
See notes to financial statements.
- --------------------------------------------------------------------------------
AllianceBernstein Municipal Income Fund II o 77
NOTES TO FINANCIAL STATEMENTS
September 30, 2003
NOTE A
Significant Accounting Policies
AllianceBernstein Municipal Income Fund II (the "Fund"), formerly Alliance
Municipal Income Fund II, which is a Massachusetts Business Trust, is registered
under the Investment Company Act of 1940, as a non-diversified open-end
management investment company. The Fund operates as a series company currently
comprised of nine portfolios: Arizona Portfolio, Florida Portfolio,
Massachusetts Portfolio, Michigan Portfolio, Minnesota Portfolio, New Jersey
Portfolio, Ohio Portfolio, Pennsylvania Portfolio and Virginia Portfolio (the
"Portfolios"). Each series is considered to be a separate entity for financial
reporting and tax purposes. Each portfolio offers Class A, Class B and Class C
shares. Class A shares are sold with a front-end sales charge of up to 4.25% for
purchases not exceeding $1,000,000. With respect to purchases of $1,000,000 or
more, Class A shares redeemed within one year of purchase may be subject to a
contingent deferred sales charge of 1%. Class B shares are currently sold with a
contingent deferred sales charge which declines from 3% to zero depending on the
period of time the shares are held. Class B shares will automatically convert to
Class A shares six years after the end of the calendar month of purchase. Class
C shares are subject to a contingent deferred sales charge of 1% on redemptions
made within the first year after purchase. All three classes of shares have
identical voting, dividend, liquidation and other rights and the same terms and
conditions, 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 the
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 and 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 sales price at the close of the exchange or
foreign securities exchange. If there has been no sale on such day, the
securities are
- --------------------------------------------------------------------------------
78 o AllianceBernstein Municipal Income Fund II
valued at the mean of the closing bid and asked prices on such day. If no bid or
asked prices are quoted on such day, then the security is valued in good faith
at fair value in accordance with the Pricing Policies. Securities listed on more
than one exchange are valued by reference to the principal exchange on which the
securities are traded; securities not listed on an exchange but traded on The
Nasdaq Stock Market, Inc. ("NASDAQ") are valued in accordance with the NASDAQ
Official Closing Price; listed put or call options are valued at the last sale
price. If there has been no sale on that day, such securities will be valued at
the closing bid prices on that day; open futures contracts and options thereon
are valued using the closing settlement price or, in the absence of such a
price, the most recent quoted bid price. If there are no quotations available
for the day of valuations, the last available closing settlement price is used;
securities traded in 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 avaliable are valued at fair value in accordance with the Pricing
Policies.
2. Taxes
It is the policy of each Portfolio to meet the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute all
of its investment company taxable income and net realized gains, if any, to its
shareholders. Therefore, no provisions for federal income or excise taxes are
required.
3. Investment Income and Investment Transactions
Interest income is accrued daily. Investment transactions are accounted for on
the date securities are purchased or sold. Investment gains and losses are
determined on the identified cost basis. As described more fully in the
prospectus for the Portfolios, each Portfolio may buy and sell securities from
other affiliated funds in accordance with the requirements of Rule 17a-7 of the
Investment Company Act of 1940. Each Portfolio has adopted procedures to ensure
that all such transactions are done in accordance with the requirements of Rule
17a-7.
- --------------------------------------------------------------------------------
AllianceBernstein Municipal Income Fund II o 79
The Portfolios amortize premium and accrete original issue discount and market
discount as adjustments to interest income.
The Portfolios follow an investment policy of investing primarily in municipal
obligations of one state. Economic changes affecting the state and certain of
its public bodies and municipalities may affect the ability of issuers within
the state to pay interest on, or repay principal of, municipal obligations held
by the Portfolios.
4. Income and Expenses
All income earned and expenses incurred by the Portfolios are borne on a
pro-rata basis by each settled class of shares, based on the proportionate
interest in the Portfolios represented by the net assets of such class, except
that the Portfolio's Class B and Class C shares bear higher distribution and
transfer agent fees than Class A shares.
5. Dividends and Distributions
Dividends and distributions to shareholders are recorded on the ex-dividend
date. Income and capital gains distributions are determined in accordance with
federal tax regulations and may differ from those determined in accordance with
accounting principles generally accepted in the United States. To the extent
these differences are permanent, such amounts are reclassified within the
capital accounts based on their federal tax basis treatment; temporary
differences do not require such reclassification.
NOTE B
Advisory Fee and Other Transactions with Affiliates
Under the terms of an investment advisory agreement, the Fund pays Alliance
Capital Management L.P. (the "Adviser") an advisory fee at an annual rate of
..625 of 1% of each Portfolio's average daily net assets. Such fees are accrued
daily and paid monthly. For the year ended September 30, 2003, the Adviser
agreed to waive a portion of its advisory fees. The aggregate amounts of such
fee waivers were as follows: Arizona Portfolio, $768,637; Florida Portfolio,
$879,924; Massachusetts Portfolio, $646,589; Michigan Portfolio, $242,316;
Minnesota Portfolio, $322,488; New Jersey Portfolio, $677,548; Ohio Portfolio,
$632,451; Pennsylvania Portfolio, $452,746; and Virginia Portfolio, $740,312.
Pursuant to the advisory agreement, the Arizona, Florida, Massachusetts, New
Jersey, Ohio and Pennsylvania Portfolios each paid $94,500 to the Adviser
representing the cost of certain legal and accounting services provided to these
Portfolios by the Adviser for the year ended September 30, 2003. Additionally,
the Adviser agreed to waive all such fees for the Michigan, Minnesota and
Virginia Portfolios in the aggregate amount of $94,500 for each of these
Portfolios.
- --------------------------------------------------------------------------------
80 o AllianceBernstein Municipal Income Fund II
Each Portfolio compensates Alliance Global Investor Services, Inc., (AGIS), a
wholly-owned subsidiary of the Adviser, under a Transfer Agency Agreement, for
providing personnel and facilities to perform transfer agency services for each
Portfolio. Such compensation amounted to: Arizona Portfolio, $43,937; Florida
Portfolio, $48,404; Massachusetts Portfolio, $44,082; Michigan Portfolio,
$57,394; Minnesota Portfolio, $36,039; New Jersey Portfolio, $77,325; Ohio
Portfolio, $60,442; Pennsylvania Portfolio, $63,746; and Virginia Portfolio,
$55,131.
For the year ended September 30, 2003, each Portfolio's expenses were reduced
under an expense offset arrangement with AGIS, as follows: Arizona Portfolio, by
$55; Florida Portfolio, by $55; Massachusetts Portfolio, by $54; Michigan
Portfolio, by $58; Minnesota Portfolio, by $35; New Jersey Portfolio, by $87;
Ohio Portfolio, by $64; Pennsylvania Portfolio, by $69; and Virginia Portfolio,
by $61.
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 from sales of
Class A shares and received contingent deferred sales charges imposed upon
redemptions by shareholders of Class A, Class B and Class C shares for each
Portfolio for the year ended September 30, 2003 as follows:
Front End Contingent Deferred Sales Charges
Sales Charges -------------------------------------------
Portfolio Class A Class A Class B Class C
- --------------------------------------------------------------------------------
Arizona $34,347 $ 6,307 $140,576 $ 9,032
Florida 19,169 1,159 120,416 10,476
Massachusetts 9,690 5,007 101,241 19,857
Michigan 18,053 2,103 84,115 53,781
Minnesota 12,282 2,624 18,304 8,466
New Jersey 8,627 38 189,000 18,353
Ohio 22,751 7,904 96,027 14,717
Pennsylvania 14,961 -0- 64,989 10,463
Virginia 16,837 27,339 75,091 11,290
NOTE C
Distribution Services Agreement
Each Portfolio has adopted a Distribution Services Agreement (the "Agreement")
pursuant to Rule 12b-1 under the Investment Company Act of 1940. Under the
Agreement, each Portfolio pays distribution and servicing fees to the
Distributor at an annual rate of up to .30 of 1% of each Portfolio's average
daily net assets attributable to Class A shares and 1% of each Portfolio's
average daily net assets attributable to both Class B and Class C shares. Such
fees are accrued
- --------------------------------------------------------------------------------
AllianceBernstein Municipal Income Fund II o 81
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 each Portfolio as follows:
Portfolio Class B Class C
- --------------------------------------------------------------------------
Arizona................................. $ 4,906,344 $ 901,804
Florida................................. 5,099,288 2,356,643
Massachusetts........................... 4,020,352 2,288,386
Michigan................................ 3,766,024 2,795,452
Minnesota............................... 2,889,260 1,766,639
New Jersey.............................. 6,211,390 2,278,672
Ohio.................................... 5,340,482 2,420,638
Pennsylvania............................ 4,063,578 2,109,765
Virginia................................ 4,561,808 1,521,583
Such costs may be recovered from each Portfolio at an annual rate of up to .30
of 1% of each Portfolio's daily net assets 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 each
Portfolio's shares.
NOTE D
Investment Transactions
Purchases and sales of investment securities (excluding short-term investments
and U.S. government securities) for the year ended September 30, 2003 were as
follows:
Portfolio Purchases Sales
- --------------------------------------------------------------------------------
Arizona................................. $ 59,190,159 $ 59,954,257
Florida................................. 77,988,297 82,645,207
Massachusetts........................... 47,708,242 60,916,911
Michigan................................ 99,285,822 76,219,628
Minnesota............................... 42,228,984 33,820,700
New Jersey.............................. 112,252,126 128,963,713
Ohio.................................... 77,817,397 45,562,008
Pennsylvania............................ 34,016,809 46,127,356
Virginia................................ 47,572,980 47,812,272
There were no purchases or sales of U.S. government and government agency
obligations during the period.
At September 30, 2003, the cost of investments for federal income tax purposes,
gross unrealized appreciation, gross unrealized depreciation and net
- --------------------------------------------------------------------------------
82 o AllianceBernstein Municipal Income Fund II
unrealized appreciation/depreciation of investments for each Portfolio were as
follows (excluding futures and swap contracts):
Gross Unrealized Gross Unrealized Net Unrealized
Portfolio Tax Cost Appreciation Depreciation Appreciation
- --------------------------------------------------------------------------------
Arizona $ 206,511,427 $ 7,493,672 $ 2,374,299 $ 5,119,373
Florida 243,845,738 10,984,564 658,334 10,326,230
Massachusetts 162,603,596 7,969,160 469,535 7,499,625
Michigan 158,732,691 5,307,608 1,059,012 4,248,596
Minnesota 105,815,939 4,333,117 449,938 3,883,179
New Jersey 227,756,395 10,806,580 1,720,037 9,086,543
Ohio 201,463,485 8,635,532 300,356 8,335,176
Pennsylvania 178,768,035 11,594,624 420,275 11,174,349
Virginia 176,409,086 8,368,633 296,589 8,072,044
1. Interest Rate Swap Agreements
The Portfolios may enter into swap agreements to protect themselves from
interest rate fluctuations on the underlying debt instruments and for investment
purposes. A swap is an agreement that obligates two parties to exchange a series
of cash flows at specified intervals based upon or calculated by reference to
changes in specified prices or rates for a specified amount of an underlying
asset. The payment flows are usually netted against each other, with the
difference being paid by one party to the other.
Risks may arise as a result of the failure of the counterparty to the swap
contract to comply with the terms of the swap contract. The loss incurred by the
failure of a counterparty is generally limited to the net interest payment to be
received by the Portfolios, and/or the termination value at the end of the
contract. Therefore, the Portfolios consider the creditworthiness of each
counterparty to a swap contract in evaluating potential credit risk.
Additionally, risks may arise from unanticipated movements in interest rates or
in the value of the underlying securities.
The Portfolios record a net receivable or payable on a daily basis for the net
interest income or expense expected to be received or paid in the interest
period. Net interest received or paid on these contracts is recorded as interest
income (or as an offset to interest income). Fluctuations in the value of swap
contracts are recorded for financial statement purposes as a component of net
unrealized appreciation/depreciation of investments. Realized gains and/or
losses from terminated swap contracts are included in net realized gain or loss
on investment transactions.
2. Financial Futures Contracts
The Portfolios may buy or sell financial futures contracts for the purpose of
hedging its portfolio against adverse affects of anticipated movements in the
market. The Portfolios bear the market risk that arises from changes in the
value of these financial instruments and the imperfect correlation between
movements in the price of the futures contracts and movements in the price of
securities hedged or used to cover.
- --------------------------------------------------------------------------------
AllianceBernstein Municipal Income Fund II o 83
At the time the Portfolios enters into a futures contract, the Portfolios
deposit and maintain as collateral an initial margin as required by the exchange
on which the transaction is effected. Pursuant to the contract, the Portfolios
agree to receive from or pay to the broker an amount of cash equal to the daily
fluctuation in the value of the contract. Such receipts or payments are known as
variation margin and are recorded by the Portfolios as unrealized gains or
losses. Risk may arise from the potential inability of a counterparty to meet
the terms of a contract. When the contract is closed, the Portfolios record a
realized gain or loss equal to the difference between the value of the contract
at the time it was opened and the time it was closed.
NOTE E
Shares of Beneficial Interest
There is an unlimited number of $.01 par value shares of beneficial interest
authorized for Class A, Class B and Class C shares.
Transactions in shares of beneficial interest for each Portfolio were as
follows:
============================= =================================
Shares Amount
============================= =================================
Year Ended Year Ended Year Ended Year Ended
September 30, September 30, September 30, September 30,
Arizona Portfolio 2003 2002 2003 2002
- --------------------------------------------------------------------------------
Class A
Shares sold 2,746,350 4,173,777 $ 29,608,405 $ 45,053,707
- --------------------------------------------------------------------------------
Shares issued in
reinvestment of
dividends and
distributions 298,491 274,146 3,211,739 2,952,268
- --------------------------------------------------------------------------------
Shares converted
from Class B 132,593 104,357 1,417,147 1,121,586
- --------------------------------------------------------------------------------
Shares redeemed (4,786,010) (1,727,824) (51,317,970) (18,571,293)
- --------------------------------------------------------------------------------
Net increase
(decrease) (1,608,576) 2,824,456 $ (17,080,679) $ 30,556,268
================================================================================
Class B
Shares sold 1,825,142 4,368,787 $ 19,676,394 $ 47,011,237
- --------------------------------------------------------------------------------
Shares issued in
reinvestment of
dividends and
distributions 210,399 176,525 2,259,411 1,898,477
- --------------------------------------------------------------------------------
Shares converted
to Class A (132,853) (104,538) (1,417,147) (1,121,586)
- --------------------------------------------------------------------------------
Shares redeemed (1,924,335) (1,243,246) (20,568,914) (13,344,144)
- --------------------------------------------------------------------------------
Net increase
(decrease) (21,647) 3,197,528 $ (50,256) $ 34,443,984
================================================================================
- --------------------------------------------------------------------------------
84 o AllianceBernstein Municipal Income Fund II
============================= =================================
Shares Amount
============================= =================================
Year Ended Year Ended Year Ended Year Ended
September 30, September 30, September 30, September 30,
Arizona Portfolio 2003 2002 2003 2002
- --------------------------------------------------------------------------------
Class C
Shares sold 836,674 1,327,738 $ 9,012,975 $ 14,269,598
- --------------------------------------------------------------------------------
Shares issued in
reinvestment of
dividends and
distributions 54,006 46,433 579,946 499,260
- --------------------------------------------------------------------------------
Shares
redeemed (758,108) (412,835) (8,114,217) (4,444,217)
- --------------------------------------------------------------------------------
Net increase 132,572 961,336 $ 1,478,704 $ 10,324,641
- --------------------------------------------------------------------------------
============================= =================================
Shares Amount
============================= =================================
Year Ended Year Ended Year Ended Year Ended
September 30, September 30, September 30, September 30,
Florida Portfolio 2003 2002 2003 2002
- --------------------------------------------------------------------------------
Class A
Shares sold 4,034,122 2,652,026 $ 41,151,690 $ 26,806,513
- --------------------------------------------------------------------------------
Shares issued in
reinvestment of
dividends and
distributions 233,348 235,392 2,383,179 2,374,786
- --------------------------------------------------------------------------------
Shares converted
from Class B 302,389 205,914 3,095,797 2,081,018
- --------------------------------------------------------------------------------
Shares redeemed (4,379,706) (2,131,414) (44,671,410) (21,524,513)
- --------------------------------------------------------------------------------
Net increase 190,153 961,918 $ 1,959,256 $ 9,737,804
- --------------------------------------------------------------------------------
Class B
Shares sold 2,545,708 3,199,641 $ 26,093,216 $ 32,371,516
- --------------------------------------------------------------------------------
Shares issued in
reinvestment of
dividends and
distributions 254,025 249,948 2,596,870 2,523,249
- --------------------------------------------------------------------------------
Shares converted
to Class A (302,158) (205,726) (3,095,797) (2,081,018)
- --------------------------------------------------------------------------------
Shares redeemed (2,400,503) (1,655,677) (24,442,787) (16,724,843)
- --------------------------------------------------------------------------------
Net increase 97,072 1,588,186 $ 1,151,502 $ 16,088,904
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
AllianceBernstein Municipal Income Fund II o 85
============================= =================================
Shares Amount
============================= =================================
Year Ended Year Ended Year Ended Year Ended
September 30, September 30, September 30, September 30,
Florida Portfolio 2003 2002 2003 2002
- --------------------------------------------------------------------------------
Class C
Shares sold 1,345,723 1,454,551 $ 13,777,500 $ 14,758,577
- --------------------------------------------------------------------------------
Shares issued in
reinvestment of
dividends and
distributions 88,573 103,617 905,586 1,046,223
- --------------------------------------------------------------------------------
Shares redeemed (1,570,180) (782,004) (15,950,521) (7,878,218)
- --------------------------------------------------------------------------------
Net increase
(decrease) (135,884) 776,164 $ (1,267,435) $ 7,926,582
- --------------------------------------------------------------------------------
============================= =================================
Shares Amount
============================= =================================
Year Ended Year Ended Year Ended Year Ended
September 30, September 30, September 30, September 30,
Massachusetts Portfolio 2003 2002 2003 2002
- --------------------------------------------------------------------------------
Class A
Shares sold 855,579 2,609,843 $ 9,272,826 $ 28,470,805
- --------------------------------------------------------------------------------
Shares issued in
reinvestment of
dividends and
distributions 148,032 194,992 1,602,234 2,122,823
- --------------------------------------------------------------------------------
Shares converted
from Class B 97,084 85,862 1,051,270 930,233
- --------------------------------------------------------------------------------
Shares redeemed (2,793,751) (2,640,118) (30,142,579) (28,712,245)
- --------------------------------------------------------------------------------
Net increase
(decrease) (1,693,056) 250,579 $ (18,216,249) $ 2,811,616
- --------------------------------------------------------------------------------
Class B
Shares sold 1,191,757 2,443,045 $ 12,925,180 $ 26,659,297
- --------------------------------------------------------------------------------
Shares issued in
reinvestment of
dividends and
distributions 210,850 191,653 2,277,527 2,081,841
- --------------------------------------------------------------------------------
Shares converted
from Class A (97,271) (86,027) (1,051,270) (930,233)
- --------------------------------------------------------------------------------
Shares redeemed (1,617,182) (1,006,499) (17,446,910) (10,917,720)
- --------------------------------------------------------------------------------
Net increase
(decrease) (311,846) 1,542,172 $ (3,295,473) $ 16,893,185
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
86 o AllianceBernstein Municipal Income Fund II
============================= =================================
Shares Amount
============================= =================================
Year Ended Year Ended Year Ended Year Ended
September 30, September 30, September 30, September 30,
Massachusetts Portfolio 2003 2002 2003 2002
- --------------------------------------------------------------------------------
Class C
Shares sold 1,024,636 1,686,148 $ 11,110,909 $ 18,387,436
- --------------------------------------------------------------------------------
Shares issued in
reinvestment of
dividends and
distributions 148,687 152,229 1,605,791 1,653,737
- --------------------------------------------------------------------------------
Shares redeemed (1,670,074) (1,072,034) (18,017,667) (11,643,806)
- --------------------------------------------------------------------------------
Net increase
(decrease) (496,751) 766,343 $ (5,300,967) $ 8,397,367
- --------------------------------------------------------------------------------
============================= =================================
Shares Amount
============================= =================================
Year Ended Year Ended Year Ended Year Ended
September 30, September 30, September 30, September 30,
Michigan Portfolio 2003 2002 2003 2002
- --------------------------------------------------------------------------------
Class A
Shares sold 1,147,023 2,739,964 $ 12,368,107 $ 29,099,502
- --------------------------------------------------------------------------------
Shares issued in
reinvestment of
dividends and
distributions 168,372 129,838 1,809,903 1,380,062
- --------------------------------------------------------------------------------
Shares converted
from Class B 60,647 105,002 644,723 1,119,272
- --------------------------------------------------------------------------------
Shares redeemed (1,495,739) (981,386) (15,976,562) (10,396,396)
- --------------------------------------------------------------------------------
Net increase
(decrease) (119,697) 1,993,418 $ (1,153,829) $ 21,202,440
- --------------------------------------------------------------------------------
Class B
Shares sold 1,663,803 2,529,185 $ 17,909,005 $ 26,855,012
- --------------------------------------------------------------------------------
Shares issued in
reinvestment of
dividends and
distributions 131,456 97,198 1,410,212 1,031,422
- --------------------------------------------------------------------------------
Shares converted
to Class A (60,735) (105,158) (644,723) (1,119,272)
- --------------------------------------------------------------------------------
Shares redeemed (1,173,654) (418,134) (12,543,906) (4,460,644)
- --------------------------------------------------------------------------------
Net increase 560,870 2,103,091 $ 6,130,588 $ 22,306,518
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
AllianceBernstein Municipal Income Fund II o 87
============================= =================================
Shares Amount
============================= =================================
Year Ended Year Ended Year Ended Year Ended
September 30, September 30, September 30, September 30,
Michigan Portfolio 2003 2002 2003 2002
- --------------------------------------------------------------------------------
Class C
Shares sold 2,234,410 3,523,260 $ 24,039,280 $ 37,420,810
- --------------------------------------------------------------------------------
Shares issued in
reinvestment of
dividends and
distributions 144,166 94,178 1,546,830 1,000,121
- --------------------------------------------------------------------------------
Shares redeemed (2,535,584) (582,076) (27,039,884) (6,192,721)
- --------------------------------------------------------------------------------
Net increase
(decrease) (157,008) 3,035,362 $ (1,453,774) $ 32,228,210
- --------------------------------------------------------------------------------
============================= =================================
Shares Amount
============================= =================================
Year Ended Year Ended Year Ended Year Ended
September 30, September 30, September 30, September 30,
Minnesota Portfolio 2003 2002 2003 2002
- --------------------------------------------------------------------------------
Class A
Shares sold 1,330,521 3,560,195 $ 13,518,588 $ 35,829,917
- --------------------------------------------------------------------------------
Shares issued in
reinvestment of
dividends and
distributions 157,223 142,075 1,590,948 1,425,346
- --------------------------------------------------------------------------------
Shares converted
from Class B 49,823 83,209 508,664 833,703
- --------------------------------------------------------------------------------
Shares redeemed (1,273,615) (422,571) (12,855,591) (4,240,290)
- --------------------------------------------------------------------------------
Net increase 263,952 3,362,908 $ 2,762,609 $ 33,848,676
- --------------------------------------------------------------------------------
Class B
Shares sold 566,576 845,534 $ 5,730,979 $ 8,484,053
- --------------------------------------------------------------------------------
Shares issued in
reinvestment of
dividends and
distributions 56,623 55,957 572,820 561,384
- --------------------------------------------------------------------------------
Shares converted
to Class A (49,838) (83,244) (508,664) (833,703)
- --------------------------------------------------------------------------------
Shares redeemed (533,994) (172,668) (5,388,214) (1,725,060)
- --------------------------------------------------------------------------------
Net increase 39,367 645,579 $ 406,921 $ 6,486,674
- --------------------------------------------------------------------------------
Class C
Shares sold 569,078 980,050 $ 5,766,701 $ 9,869,775
- --------------------------------------------------------------------------------
Shares issued in
reinvestment of
dividends and
distributions 45,815 42,325 464,065 425,249
- --------------------------------------------------------------------------------
Shares redeemed (697,215) (177,719) (7,036,754) (1,786,737)
- --------------------------------------------------------------------------------
Net increase
(decrease) (82,322) 844,656 $ (805,988) $ 8,508,287
- --------------------------------------------------------------------------------
88 o AllianceBernstein Municipal Income Fund II
============================= =================================
Shares Amount
============================= =================================
Year Ended Year Ended Year Ended Year Ended
September 30, September 30, September 30, September 30,
New Jersey Portfolio 2003 2002 2003 2002
- --------------------------------------------------------------------------------
Class A
Shares sold 861,030 3,508,960 $ 8,492,836 $ 35,106,070
Shares issued in
reinvestment of
dividends and
distributions 248,238 272,611 2,434,833 2,717,335
- --------------------------------------------------------------------------------
Shares converted
from Class B 296,269 444,339 2,903,295 4,432,002
- --------------------------------------------------------------------------------
Shares redeemed (2,528,374) (2,735,107) (24,709,104) (27,270,598)
- --------------------------------------------------------------------------------
Net increase
(decrease) (1,122,837) 1,490,803 $ (10,878,140) $ 14,984,809
- --------------------------------------------------------------------------------
Class B
Shares sold 1,452,453 4,378,919 $ 14,277,534 $ 43,802,272
- --------------------------------------------------------------------------------
Shares issued in
reinvestment of
dividends and
distributions 311,096 308,134 3,051,686 3,073,153
- --------------------------------------------------------------------------------
Shares converted
to Class A (296,131) (444,221) (2,903,295) (4,432,002)
- --------------------------------------------------------------------------------
Shares redeemed (2,871,379) (1,861,226) (28,118,045) (18,560,039)
- --------------------------------------------------------------------------------
Net increase
(decrease) (1,403,961) 2,381,606 $ (13,692,120) $ 23,883,384
- --------------------------------------------------------------------------------
Class C
Shares sold 829,205 2,305,087 $ 8,173,814 $ 23,118,515
- --------------------------------------------------------------------------------
Shares issued in
reinvestment of
dividends and
distributions 110,335 123,359 1,082,404 1,230,577
- --------------------------------------------------------------------------------
Shares redeemed (1,892,807) (1,371,933) (18,498,818) (13,717,895)
- --------------------------------------------------------------------------------
Net increase
(decrease) (953,267) 1,056,513 $ (9,242,600) $ 10,631,197
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
AllianceBernstein Municipal Income Fund II o 89
============================= =================================
Shares Amount
============================= =================================
Year Ended Year Ended Year Ended Year Ended
September 30, September 30, September 30, September 30,
Ohio Portfolio 2003 2002 2003 2002
- --------------------------------------------------------------------------------
Class A
Shares sold 2,603,274 2,952,680 $ 25,899,491 $ 29,566,362
- --------------------------------------------------------------------------------
Shares issued in
reinvestment of
dividends and
distributions 199,426 190,264 1,988,084 1,901,751
- --------------------------------------------------------------------------------
Shares converted
from Class B 172,198 373,100 1,713,910 3,730,773
- --------------------------------------------------------------------------------
Shares redeemed (2,508,279) (1,187,718) (25,071,704) (11,847,441)
- --------------------------------------------------------------------------------
Net increase 466,619 2,328,326 $ 4,529,781 $ 23,351,445
- --------------------------------------------------------------------------------
Class B
Shares sold 2,465,948 2,927,342 $ 24,633,328 $ 29,287,184
- --------------------------------------------------------------------------------
Shares issued in
reinvestment of
dividends and
distributions 206,715 226,780 2,059,278 2,268,521
- --------------------------------------------------------------------------------
Shares converted
to Class A (172,295) (343,244) (1,713,910) (3,730,773)
- --------------------------------------------------------------------------------
Shares redeemed (1,496,841) (957,637) (14,892,000) (9,278,562)
- --------------------------------------------------------------------------------
Net increase 1,003,527 1,853,241 $ 10,086,696 $ 18,546,370
- --------------------------------------------------------------------------------
Class C
Shares sold 1,239,667 2,169,473 $ 12,353,373 $ 21,706,800
- --------------------------------------------------------------------------------
Shares issued in
reinvestment of
dividends and
distributions 121,614 129,186 1,211,607 1,291,209
- --------------------------------------------------------------------------------
Shares redeemed (1,357,263) (565,040) (13,501,185) (5,642,432)
- --------------------------------------------------------------------------------
Net increase 4,018 1,733,619 $ 63,795 $ 17,355,577
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
90 o AllianceBernstein Municipal Income Fund II
============================= =================================
Shares Amount
============================= =================================
Year Ended Year Ended Year Ended Year Ended
September 30, September 30, September 30, September 30,
Pennsylvania Portfolio 2003 2002 2003 2002
- --------------------------------------------------------------------------------
Class A
Shares sold 1,094,863 3,029,335 $ 11,376,438 $ 31,371,547
- --------------------------------------------------------------------------------
Shares issued in
reinvestment of
dividends and
distributions 235,272 283,223 2,446,438 2,931,665
- --------------------------------------------------------------------------------
Shares converted
from Class B 231,532 215,757 2,409,452 2,241,696
- --------------------------------------------------------------------------------
Shares redeemed (2,911,085) (3,425,223) (30,201,600) (35,437,413)
- --------------------------------------------------------------------------------
Net increase
(decrease) (1,349,418) 103,092 $ (13,969,272) $ 1,107,495
- --------------------------------------------------------------------------------
Class B
Shares sold 999,144 2,671,470 $ 10,404,804 $ 27,686,964
- --------------------------------------------------------------------------------
Shares issued in
reinvestment of
dividends and
distributions 178,092 192,166 1,851,843 1,989,234
- --------------------------------------------------------------------------------
Shares converted
to Class A (231,602) (211,918) (2,409,452) (2,241,696)
- --------------------------------------------------------------------------------
Shares redeemed (1,427,501) (1,578,177) (14,814,384) (16,297,572)
- --------------------------------------------------------------------------------
Net increase
(decrease) (481,867) 1,073,541 $ (4,967,189) $ 11,136,930
- --------------------------------------------------------------------------------
Class C
Shares sold 1,637,095 2,451,346 $ 17,074,975 $ 25,396,726
- --------------------------------------------------------------------------------
Shares issued in
reinvestment of
dividends and
distributions 89,478 112,483 930,510 1,164,377
- --------------------------------------------------------------------------------
Shares redeemed (1,993,349) (1,387,898) (20,705,235) (14,378,632)
- --------------------------------------------------------------------------------
Net increase
(decrease) (266,776) 1,175,931 $ (2,699,750) $ 12,182,471
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
AllianceBernstein Municipal Income Fund II o 91
============================= =================================
Shares Amount
============================= =================================
Year Ended Year Ended Year Ended Year Ended
September 30, September 30, September 30, September 30,
Virginia Portfolio 2003 2002 2003 2002
- --------------------------------------------------------------------------------
Class A
Shares sold 1,352,646 2,586,534 $ 14,420,413 $ 27,190,766
- --------------------------------------------------------------------------------
Shares issued in
reinvestment of
dividends and
distributions 171,440 162,033 1,827,604 1,704,901
- --------------------------------------------------------------------------------
Shares converted
from Class B 101,969 172,791 1,084,332 1,816,207
- --------------------------------------------------------------------------------
Shares redeemed (2,099,352) (846,040) (22,290,612) (8,895,908)
- --------------------------------------------------------------------------------
Net increase
(decrease) (473,297) 2,075,318 $ (4,958,263)$ 21,815,966
- --------------------------------------------------------------------------------
Class B
Shares sold 1,015,640 2,336,684 $ 10,803,064 $ 24,572,562
- --------------------------------------------------------------------------------
Shares issued in
reinvestment of
dividends and
distributions 212,663 203,652 2,263,825 2,138,114
- --------------------------------------------------------------------------------
Shares converted
to Class A (102,150) (173,066) (1,084,332) (1,816,207)
- --------------------------------------------------------------------------------
Shares redeemed (1,419,317) (986,734) (15,089,094) (10,360,239)
- --------------------------------------------------------------------------------
Net increase
(decrease) (293,164) 1,380,536 $ (3,106,537) $ 14,534,230
- --------------------------------------------------------------------------------
Class C
Shares sold 883,023 1,422,683 $ 9,389,967 $ 14,931,090
- --------------------------------------------------------------------------------
Shares issued in
reinvestment of
dividends and
distributions 81,150 68,813 863,754 722,328
- --------------------------------------------------------------------------------
Shares redeemed (1,043,431) (582,202) (11,092,067) (6,107,459)
- --------------------------------------------------------------------------------
Net increase
(decrease) (79,258) 909,294 $ (838,346) $ 9,545,959
- --------------------------------------------------------------------------------
NOTE F
Joint Credit Facility
A number of open-end mutual funds managed by the Adviser, including the Fund,
participate in a $500 million revolving credit facility (the "Facility")
intended to provide short-term financing if necessary, subject to certain
restrictions, in connection with abnormal redemption activity. Commitment fees
related to the Facility are paid by the participating funds and are included in
miscellaneous expenses in the statement of operations. The Fund did not utilize
the Facility during the year ended September 30, 2003.
- --------------------------------------------------------------------------------
92 o AllianceBernstein Municipal Income Fund II
NOTE G
Distributions To Shareholders
The tax character of distributions paid during the fiscal years ended September
30, 2003 and September 30, 2002 were as follows:
Arizona Portfolio 2003 2002
-------------- ---------------
Distributions paid from:
Tax-exempt income.................. $ 9,824,490 $ 8,437,580
Ordinary income.................... 45,555 544,194
-------------- ---------------
Total distributions paid.............. $ 9,870,045 $ 8,891,774(a)
-------------- ---------------
As of September 30, 2003, the components of accumulated earnings/(deficit) on a
tax basis were as follows:
Accumulated capital and other losses................... $ (3,255,761)(b)
Unrealized appreciation/(depreciation)................. 5,119,373(c)
---------------
Total accumulated earnings/(deficit)................... $ 1,863,612
---------------
(a) Total distributions paid differs from the Statement of Changes in Net
Assets because for tax purposes dividends are recognized when actually
paid.
(b) On September 30, 2003, the Portfolio had a net capital loss carryforward
for federal income tax purposes of $2,832,511 of which $2,361,378 expires
in the year 2008, $383,250 expires in the year 2010 and $87,883 expires in
the year 2011. To the extent future capital gains are offset by capital
loss carryforwards, such gains will not be distributed. Net capital losses
incurred after October 31, and within the taxable year are deemed to arise
on the first business day of the Portfolio's next taxable year. For the
year ended September 30, 2003, the Portfolio deferred to October 1, 2003
post October capital losses of $423,250.
(c) The differences between book-basis and tax-basis unrealized
appreciation/(depreciation) are attributable primarily to the tax deferral
of losses on wash sales and the realization for tax purposes of
gains/losses on certain derivative instruments.
During the current fiscal year, permanent differences, primarily due to
distributions in excess of net investment income, resulted in a net decrease in
distributions in excess of net investment income and a decrease in additional
paid-in capital. This reclassification had no effect on net assets.
- --------------------------------------------------------------------------------
AllianceBernstein Municipal Income Fund II o 93
Florida Portfolio 2003 2002
-------------- ---------------
Distributions paid from:
Tax-exempt income.................. $ 12,070,402 $ 11,517,304
Ordinary income.................... 623,345 -0-
-------------- ---------------
Total distributions paid.............. $ 12,693,747 $ 11,517,304(a)
-------------- ---------------
As of September 30, 2003, the components of accumulated earnings/(deficit) on a
tax basis were as follows:
Accumulated capital and other losses................... $ (10,942,485)(b)
Unrealized appreciation/(depreciation)................. 10,259,910(c)
---------------
Total accumulated earnings/(deficit)................... $ (682,575)
---------------
(a) Total distributions paid differs from the Statement of Changes in Net
Assets because for tax purposes dividends are recognized when actually
paid.
(b) On September 30, 2003, the Portfolio had a net capital loss carryforward
for federal income tax purposes of $10,942,485 of which $4,853 expires in
the year 2007, $7,457,727 expires in the year 2008, $3,475,986 expires in
the year 2009 and $3,919 expires in the year 2010. To the extent future
capital gains are offset by capital loss carryforwards, such gains will not
be distributed. During the fiscal year ended September 30, 2003, the
Portfolio utilized capital loss carryforwards of $1,245,058 and $2,686,148
of capital loss carryforward expired.
(c) The differences between book-basis and tax-basis unrealized
appreciation/(depreciation) are attributable primarily to the tax deferral
of losses on wash sales and the realization for tax purposes of
gains/losses on certain derivative instruments.
During the current fiscal year, permanent differences, primarily due to net
investment loss, distributions in excess of net investment income and expiration
of capital loss carryforwards, resulted in a net decrease in distributions in
excess of net investment income, a decrease in accumulated net realized loss on
investment transactions and a decrease in additional paid-in capital. This
reclassification had no effect on net assets.
- --------------------------------------------------------------------------------
94 o AllianceBernstein Municipal Income Fund II
Massachusetts Portfolio 2003 2002
-------------- ---------------
Distributions paid from:
Tax-exempt income.................. $ 7,469,629 $ 8,395,533
Ordinary income.................... 295,469 402,082
-------------- ---------------
Total distributions paid.............. $ 7,765,098 $ 8,797,615(a)
-------------- ---------------
As of September 30, 2003, the components of accumulated earnings/(deficit) on a
tax basis were as follows:
Accumulated capital and other losses................... $ (11,914,008)(b)
Unrealized appreciation/(depreciation)................. 7,399,242(c)
---------------
Total accumulated earnings/(deficit)................... $ (4,514,766)
---------------
(a) Total distributions paid differs from the Statement of Changes in Net
Assets because for tax purposes dividends are recognized when actually
paid.
(b) On September 30, 2003, the Portfolio had a net capital loss carryforward
for federal income tax purposes of $11,026,645 of which $7,248,317 expires
in the year 2008, $1,585,051 expires in the year 2009 and $2,193,277
expires in the year 2011. To the extent future capital gains are offset by
capital loss carryforwards, such gains will not be distributed. Net capital
losses incurred after October 31, and within the taxable year are deemed to
arise on the first business day of the Portfolio's next taxable year. For
the year ended September 30, 2003, the Portfolio deferred to October 1,
2003 post October capital losses of $873,506. For the year ended September
30, 2003, the Fund deferred losses on straddles of $13,857.
(c) The differences between book-basis and tax-basis unrealized
appreciation/(depreciation) are attributable primarily to the tax deferral
of losses on wash sales and the realization for tax purposes of
gains/losses on certain derivative instruments.
During the current fiscal year, permanent differences, primarily due to net
investment loss and distributions in excess of net investment income, resulted
in a net decrease in distributions in excess of net investment income and a
decrease in additional paid-in capital. This reclassification had no effect on
net assets.
- --------------------------------------------------------------------------------
AllianceBernstein Municipal Income Fund II o 95
Michigan Portfolio 2003 2002
-------------- ---------------
Distributions paid from:
Tax-exempt income.................. $ 6,797,816 $ 5,083,500
Ordinary income.................... 548,644 401,029
-------------- ---------------
Total distributions paid.............. $ 7,346,460 $ 5,484,529(a)
-------------- ---------------
As of September 30, 2003, the components of accumulated earnings/(deficit) on a
tax basis were as follows:
Accumulated capital and other losses................... $ (330,049)(b)
Unrealized appreciation/(depreciation)................. 4,248,596(c)
---------------
Total accumulated earnings/(deficit)................... $ 3,918,547
---------------
(a) Total distributions paid differs from the Statement of Changes in Net
Assets because for tax purposes dividends are recognized when actually
paid.
(b) On September 30, 2003, the Portfolio had a net capital loss carryforward
for federal income tax purposes of $184,017, all of which expires in the
year 2008. To the extent future capital gains are offset by capital loss
carryforwards, such gains will not be distributed. During the fiscal year,
the Portfolio utilized capital loss carryforwards of $149,164. Net capital
losses incurred after October 31, and within the taxable year are deemed to
arise on the first business day of the Portfolio's next taxable year. For
the year ended September 30, 2003, the Portfolio deferred to October 1,
2003 post October capital losses of $146,032.
(c) The differences between book-basis and tax-basis unrealized
appreciation/(depreciation) are attributable primarily to the tax deferral
of losses on wash sales and the realization for tax purposes of
gains/losses on certain derivative instruments.
During the current fiscal year, permanent differences, primarily due to
distributions in excess of net investment income, resulted in a net decrease in
distributions in excess of net investment income and a decrease in additional
paid-in capital. This reclassification had no effect on net assets.
- --------------------------------------------------------------------------------
96 o AllianceBernstein Municipal Income Fund II
Minnesota Portfolio 2003 2002
-------------- ---------------
Distributions paid from:
Tax-exempt income.................. $ 4,505,786 $ 3,906,351
Ordinary income.................... 210,091 170,915
-------------- ---------------
Total distributions paid.............. $ 4,715,877 $ 4,077,266(a)
-------------- ---------------
As of September 30, 2003, the components of accumulated earnings/(deficit) on a
tax basis were as follows:
Accumulated capital and other losses................... $ (1,931,050)(b)
Unrealized appreciation/(depreciation)................. 3,883,179(c)
---------------
Total accumulated earnings/(deficit)................... $ 1,952,129
---------------
(a) Total distributions paid differs from the Statement of Changes in Net
Assets because for tax purposes dividends are recognized when actually
paid.
(b) On September 30, 2003, the Portfolio had a net capital loss carryforward
for federal income tax purposes of $1,931,050 of which $492,981 expires in
the year 2004, $1,051,696 expires in the year 2008, $160,146 expires in the
year 2009, $46,432 expires in the year 2010 and $179,795 expires in the
year 2011. To the extent future capital gains are offset by capital loss
carryforwards, such gains will not be distributed. During the fiscal year
ended September 30, 2003, $650,584 of capital loss carryforward expired.
(c) The difference between book-basis and tax-basis unrealized
appreciation/(depreciation) is attributable primarily to the tax deferral
of losses on wash sales.
During the current fiscal year, permanent differences, primarily due to
distributions in excess of net investment income and expiration of capital loss
carryforwards, resulted in a net decrease in distributions in excess of net
investment income, a decrease in accumulated net realized loss on investment
transactions and a decrease in additional paid-in capital. This reclassification
had no effect on net assets.
- --------------------------------------------------------------------------------
AllianceBernstein Municipal Income Fund II o 97
New Jersey Portfolio 2003 2002
-------------- ---------------
Distributions paid from:
Tax-exempt income.................. $ 10,317,045 $ 11,347,913
Ordinary income.................... 530,987 808,169
-------------- ---------------
Total distributions paid.............. $ 10,848,032 $ 12,156,082(a)
-------------- ---------------
As of September 30, 2003, the components of accumulated earnings/(deficit) on a
tax basis were as follows:
Accumulated capital and other losses................... $ (15,675,246)(b)
Unrealized appreciation/(depreciation)................. 9,087,556(c)
---------------
Total accumulated earnings/(deficit)................... $ (6,587,690)
---------------
(a) Total distributions paid differs from the Statement of Changes in Net
Assets because for tax purposes dividends are recognized when actually
paid.
(b) On September 30, 2003, the Portfolio had a net capital loss carryforward
for federal income tax purposes of $15,060,118 of which $349,704 expires in
the year 2004, $3,327,295 expires in the year 2008, $1,077,263 expires in
the year 2009, $4,688,584 expires in the year 2010 and $5,617,272 expires
in the year 2011. To the extent future capital gains are offset by capital
loss carryforwards, such gains will not be distributed. During the fiscal
year ended September 30, 2003, $3,051,602 of capital loss carryforward
expired. Net capital losses incurred after October 31, and within the
taxable year are deemed to arise on the first business day of the
Portfolio's next taxable year. For the year ended September 30, 2003, the
Portfolio deferred to October 1, 2003 post October capital losses of
$598,372. For the year ended September 30, 2003, the Portfolio deferred
losses on straddles of $16,756.
(c) The differences between book-basis and tax-basis unrealized
appreciation/(depreciation) are attributable primarily to the tax deferral
of losses on wash sales and the realization for tax purposes of
gains/losses on certain derivative instruments.
During the current fiscal year, permanent differences, primarily due to
distributions in excess of net investment income and expiration of capital loss
carryforwards, resulted in a net decrease in distributions in excess of net
investment income, a decrease in accumulated net realized loss on investment
transactions and a decrease in additional paid-in capital. This reclassification
had no effect on net assets.
- --------------------------------------------------------------------------------
98 o AllianceBernstein Municipal Income Fund II
Ohio Portfolio 2003 2002
-------------- ---------------
Distributions paid from:
Tax-exempt income.................. $ 8,483,968 $ 7,932,576
Ordinary income.................... 485,719 207,602
-------------- ---------------
Total distributions paid.............. $ 8,969,687 $ 8,140,178(a)
============== ===============
As of September 30, 2003, the components of accumulated earnings/(deficit) on a
tax basis were as follows:
Accumulated capital and other losses................... $ (9,257,559)(b)
Unrealized appreciation/(depreciation)................. 8,335,176(c)
---------------
Total accumulated earnings/(deficit)................... $ (922,383)
===============
(a) Total distributions paid differs from the Statement of Changes in Net
Assets because for tax purposes dividends are recognized when actually
paid.
(b) On September 30, 2003, the Portfolio had a net capital loss carryforward
for federal income tax purposes of $8,082,743 of which $332,000 expires in
the year 2004, $2,491,530 expires in the year 2008, $1,639,021 expires in
the year 2009 and $3,620,192 expires in the year 2011. To the extent future
capital gains are offset by capital loss carryforwards, such gains will not
be distributed. During the fiscal year ended September 30, 2003, $666,075
of capital loss carryforward expired. Net capital losses incurred after
October 31, and within the taxable year are deemed to arise on the first
business day of the Fund's next taxable year. For the year ended September
30, 2003, the Portfolio deferred to October 1, 2003 post October capital
losses of $1,174,816.
(c) The differences between book-basis and tax-basis unrealized
appreciation/(depreciation) are attributable primarily to the tax deferral
of losses on wash sales and the realization for tax purposes of
gains/losses on certain derivative instruments.
During the current fiscal year, permanent differences, primarily due to
distributions in excess of net investment income and expiration of capital loss
carryforwards, resulted in a net decrease in distributions in excess of net
investment income, a decrease in accumulated net realized loss on investment
transactions and a decrease in additional paid-in capital. This reclassification
had no effect on net assets.
- --------------------------------------------------------------------------------
AllianceBernstein Municipal Income Fund II o 99
Pennsylvania Portfolio 2003 2002
-------------- ---------------
Distributions paid from:
Tax-exempt income.................. $ 9,195,254 $ 9,281,173
Ordinary income.................... 77,465 304,732
-------------- ---------------
Total distributions paid.............. $ 9,272,719 $ 9,585,905(a)
-------------- ---------------
As of September 30, 2003, the components of accumulated earnings/(deficit) on a
tax basis were as follows:
Undistributed Tax Exempt Income........................ $ 62,329
Accumulated capital and other losses................... (7,824,082)(b)
Unrealized appreciation/(depreciation)................. 11,174,349(c)
---------------
Total accumulated earnings/(deficit)................... $ 3,412,596
===============
(a) Total distributions paid differs from the Statement of Changes in Net
Assets because for tax purposes dividends are recognized when actually
paid.
(b) On September 30, 2003, the Portfolio had a net capital loss carryforward
for federal income tax purposes of $7,283,902 of which $6,563,370 expires
in the year 2008, $274,791 expires in the year 2010 and $445,741 expires in
the year 2011. To the extent future capital gains are offset by capital
loss carryforwards, such gains will not be distributed. Net capital losses
incurred after October 31, and within the taxable year are deemed to arise
on the first business day of the Portfolio's next taxable year. For the
year ended September 30, 2003, the Portfolio deferred to October 1, 2003
post October capital losses of $540,180.
(c) The difference between book-basis and tax-basis unrealized
appreciation/(depreciation) is attributable primarily to the tax deferral
of losses on wash sales.
- --------------------------------------------------------------------------------
100 o AllianceBernstein Municipal Income Fund II
Virginia Portfolio 2003 2002
-------------- ---------------
Distributions paid from:
Tax-exempt income.................. $ 8,410,172 $ 7,722,633
Ordinary income.................... 39,132 281,521
-------------- ---------------
Total distributions paid.............. $ 8,449,304 $ 8,004,154(a)
-------------- ---------------
As of September 30, 2003, the components of accumulated earnings/(deficit) on a
tax basis were as follows:
Undistributed Tax Exempt Income........................ $ 196,699
Accumulated capital and other losses................... (4,687,154)(b)
Unrealized appreciation/(depreciation)................. 8,072,044(c)
---------------
Total accumulated earnings/(deficit)................... $ 3,581,589
---------------
(a) Total distributions paid differs from the Statement of Changes in Net
Assets because for tax purposes dividends are recognized when actually
paid.
(b) On September 30, 2003, the Portfolio had a net capital loss carryforward
for federal income tax purposes of $4,687,154 of which $2,693,378 expires
in the year 2008, $1,200,330 expires in the year 2009 and $793,446 expires
in the year 2010. To the extent future capital gains are offset by capital
loss carryforwards, such gains will not be distributed. During the fiscal
year, the Portfolio utilized capital loss carryforwards of $1,284,755.
(c) The differences between book-basis and tax-basis unrealized
appreciation/(depreciation) are attributable primarily to the tax deferral
of losses on wash sales and the realization for tax purposes of
gains/losses on certain derivative instruments.
NOTE H
Concentration of Credit Risk
The Portfolios of the AllianceBernstein Municipal Income Fund II are State
Portfolios that may invest a large portion of their assets in a particular
state's municipal securities and their various political subdivisions, and the
performance of each of these Portfolios may be closely tied to economic
conditions within the applicable state and the financial condition of that state
and its agencies and municipalities.
NOTE I
Legal Proceedings
Alliance Capital Management L.P. ("Alliance Capital"), the Fund's Adviser, is
currently under investigation 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.
Certain other regulatory authorities are also conducting investigations into
these practices within the industry and have requested that Alliance Capital
provide information to them. Alliance Capital has been cooperating with all of
these authorities and has been conducting its own internal investigation into
these matters. In addition, Alliance Capital's Board of Directors authorized a
special committee, comprised of the members of Alliance Capital's Audit
Committee and the other independent
- --------------------------------------------------------------------------------
AllianceBernstein Municipal Income Fund II o 101
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 putative class action complaint entitled Hindo et al. v.
AllianceBernstein Growth & Income Fund et al. (the "Hindo Complaint") was filed
against Alliance Capital; Alliance Capital Management Holding L.P.; Alliance
Capital Management Corporation; AXA Financial, Inc.; certain of the
AllianceBernstein Mutual Funds, including the Fund; Gerald Malone; Charles
Schaffran (collectively, the "Alliance Capital defendants"); and certain other
defendants not affiliated with Alliance Capital. The Hindo Complaint was filed
in the United States District Court for the Southern District of New York by
alleged shareholders of two of the AllianceBernstein Mutual Funds. The Hindo
Complaint alleges that certain of the Alliance Capital defendants failed to
disclose that they improperly allowed certain hedge funds and other unidentified
parties to engage in late trading and market timing of AllianceBernstein Fund
securities, violating Sections 11 and 15 of the Securities Act, Sections 10(b)
and 20(a) of the Exchange Act, and Sections 206 and 215 of the Advisers Act.
Plaintiffs seek an unspecified amount of compensatory damages and rescission of
their contracts with Alliance Capital, including recovery of all fees paid to
Alliance Capital pursuant to such contracts.
Between October 3 and November 13, 2003, twenty-one additional lawsuits making
factual allegations similar to those in the Hindo Complaint were filed against
Alliance Capital and certain other defendants. All of these lawsuits seek an
unspecified amount of damages.
Through November 14, 2003, Alliance Capital's internal investigation has
revealed that Alliance Capital maintained relationships with certain investors
who were permitted to engage in market timing trades in certain
AllianceBernstein Mutual Funds in return for or in connection with making
investments (which were not actively traded) in other Alliance Capital products,
including hedge funds and mutual funds, for which Alliance Capital receives
advisory fees ("Market Timing Relationships"). Alliance Capital believes that
these Market Timing Relationships created conflicts of interest and that certain
of the trades made pursuant to these relationships had an adverse effect on some
shareholders of the AllianceBernstein Mutual Funds. These matters are the
subject of the ongoing internal investigation by Alliance Capital.
As a result of Alliance Capital's involvement in market timing or for other
reasons, investors in the AllianceBernstein Mutual Funds may choose to redeem
their investments. This may require the AllianceBernstein Mutual Funds to sell
investments held by those funds to provide for sufficient liquidity and could
also have an adverse effect on the investment performance of the
AllianceBernstein Mutual Funds.
- --------------------------------------------------------------------------------
102 o AllianceBernstein Municipal Income Fund II
Any resolution of Alliance Capital's involvement in market timing and the
related SEC and NYAG investigations and private lawsuits is likely to include,
but not be limited to, sanctions, penalties, appropriate restitution to mutual
fund shareholders and structural changes in the governance of Alliance Capital's
mutual fund business. Alliance Capital is committed to full restitution of the
adverse effects that inappropriate market timing transactions allowed by
Alliance Capital had on the shareholders of the AllianceBernstein Mutual Funds.
- --------------------------------------------------------------------------------
AllianceBernstein Municipal Income Fund II o 103
FINANCIAL HIGHLIGHTS
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
Arizona Portfolio
===========================================================
Class A
===========================================================
Year Ended September 30,
-----------------------------------------------------------
2003 2002 2001 2000 1999
-----------------------------------------------------------
Net asset value,
beginning of period..... ........ $ 11.02 $10.80 $10.47 $10.40 $ 11.03
-----------------------------------------------------------
Income From Investment
Operations
Net investment income(a)(b) ....... .51 .51 .54 .55 .51
Net realized and unrealized
gain (loss) on investment
transactions............ ........ (.26) .26 .34 .07 (.55)
-----------------------------------------------------------
Net increase (decrease) in
net asset value from
operations.............. ........ .25 .77 .88 .62 (.04)
-----------------------------------------------------------
Less: Dividends and
Distributions
Dividends from net
investment income....... ........ (.51) (.51) (.54) (.55 ) (.51)
Distributions in excess of
net investment income... ........ -0- (.04) (.01) -0- (.04)
Distributions from net realized
gains................... ........ -0- -0- -0- -0- (.04)
-----------------------------------------------------------
Total dividends and
distributions........... ........ (.51) (.55) (.55) (.55 ) (.59)
-----------------------------------------------------------
Net asset value, end of period .... $ 10.76 $ 11.02 $ 10.80 $ 10.47 $ 10.40
===========================================================
Total Return
Total investment return based
on net asset value(c)... ........ 2.35% 7.33% 8.56% 6.17 % (.45)%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted)......... ........ $101,040 $121,245 $88,261 $47,258 $38,472
Ratio to average net assets of:
Expenses, net of waivers/
reimbursements........ ........ .78% .78% .78% .78% .78%
Expenses, before waivers/
reimbursements........ ........ 1.11% 1.12% 1.22% 1.29% 1.39%
Net investment income,
net of waivers/
reimbursements........ ........ 4.72% 4.73% 5.08% 5.33% 4.74%
Portfolio turnover rate. .......... 28% 11% 119% 199% 217%
See footnote summary on page 130.
- --------------------------------------------------------------------------------
104 o AllianceBernstein Municipal Income Fund II
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
Arizona Portfolio
===========================================================
Class B
===========================================================
Year Ended September 30,
-----------------------------------------------------------
2003 2002 2001 2000 1999
-----------------------------------------------------------
Net asset value,
beginning of period..... ....... $ 11.00 $10.78 $10.46 $10.39 $ 11.03
-----------------------------------------------------------
Income From Investment
Operations
Net investment income(a)(b) ...... .43 .43 .47 .48 .43
Net realized and unrealized
gain (loss) on investment
transactions............ ....... (.26) .27 .33 .07 (.55)
-----------------------------------------------------------
Net increase (decrease) in
net asset value from
operations.............. ....... .17 .70 .80 .55 (.12)
-----------------------------------------------------------
Less: Dividends and
Distributions
Dividends from net
investment income....... ....... (.43) (.43) (.47) (.48) (.43)
Distributions in excess of
net investment income... ....... -0- (.05) (.01) -0- (.05)
Distributions from net realized
gains................... ....... -0- -0- -0- -0- (.04)
-----------------------------------------------------------
Total dividends and
distributions........... ....... (.43) (.48) (.48) (.48) (.52)
-----------------------------------------------------------
Net asset value, end of period ... $ 10.74 $ 11.00 $ 10.78 $ 10.46 $ 10.39
===========================================================
Total Return
Total investment return based
on net asset value(c)... ....... 1.62% 6.65% 7.76% 5.45% (1.19)%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted)......... ....... $89,938 $92,349 $56,024 $34,232 $31,242
Ratio to average net assets of:
Expenses, net of waivers/
reimbursements........ ....... 1.48% 1.48% 1.48% 1.48% 1.48%
Expenses, before waivers/
reimbursements........ ....... 1.82% 1.82% 1.93% 1.99% 2.16%
Net investment income,
net of waivers/
reimbursements........ ....... 4.03% 4.02% 4.41% 4.63% 4.05%
Portfolio turnover rate. ......... 28% 11% 119% 199% 217%
See footnote summary on page 130.
- --------------------------------------------------------------------------------
AllianceBernstein Municipal Income Fund II o 105
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
Arizona Portfolio
===========================================================
Class C
===========================================================
Year Ended September 30,
-----------------------------------------------------------
2003 2002 2001 2000 1999
-----------------------------------------------------------
Net asset value,
beginning of period..... ....... $ 11.00 $10.78 $10.46 $10.39 $ 11.03
-----------------------------------------------------------
Income From Investment
Operations
Net investment income(a)(b) ...... .43 .43 .47 .48 .43
Net realized and unrealized
gain (loss) on investment
transactions............ ....... (.26) .27 .33 .07 (.55)
-----------------------------------------------------------
Net increase (decrease)
in net asset value
from operations......... ....... .17 .70 .80 .55 (.12)
-----------------------------------------------------------
Less: Dividends and
Distributions
Dividends from net
investment income....... ....... (.43) (.43) (.47) (.48) (.43)
Distributions in excess of
net investment income... ....... -0- (.05) (.01) -0- (.05)
Distributions from net realized
gains................... ....... -0- -0- -0- -0- (.04)
-----------------------------------------------------------
Total dividends and
distributions........... ....... (.43) (.48) (.48) (.48) (.52)
-----------------------------------------------------------
Net asset value, end of period ... $ 10.74 $ 11.00 $ 10.78 $ 10.46 $ 10.39
===========================================================
Total Return
Total investment return based
on net asset value(c)... ....... 1.62% 6.65% 7.76% 5.45% (1.19)%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted)......... ....... $25,110 $24,258 $13,407 $8,941 $9,368
Ratio to average net assets of:
Expenses, net of waivers/
reimbursements........ ....... 1.48% 1.48% 1.48% 1.48% 1.48%
Expenses, before waivers/
reimbursements........ ....... 1.82% 1.82% 1.93% 1.99% 2.17%
Net investment income,
net of waivers/
reimbursements........ ....... 4.03% 4.00% 4.43% 4.64% 4.05%
Portfolio turnover rate. ......... 28% 11% 119% 199% 217%
See footnote summary on page 130.
- --------------------------------------------------------------------------------
106 o AllianceBernstein Municipal Income Fund II
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
Florida Portfolio
===========================================================
Class A
===========================================================
Year Ended September 30,
-----------------------------------------------------------
2003 2002 2001 2000 1999
-----------------------------------------------------------
Net asset value,
beginning of period..... ....... $ 10.34 $10.16 $ 9.76 $ 9.81 $ 10.48
-----------------------------------------------------------
Income From Investment
Operations
Net investment income(a)(b) ...... .49 .52 .53 .53 .51
Net realized and unrealized
gain (loss) on investment
transactions............ ....... (.13) .19 .40 (.05) (.65)
-----------------------------------------------------------
Net increase (decrease)
in net asset value
from operations......... ....... .36 .71 .93 .48 (.14)
-----------------------------------------------------------
Less: Dividends and
Distributions
Dividends from net
investment income....... ....... (.53) (.52) (.53) (.53) (.51)
Distributions in excess of
net investment income... ....... -0- (.01) -0- -0- (.02)
-----------------------------------------------------------
Total dividends and
distributions........... ....... (.53) (.53) (.53) (.53) (.53)
-----------------------------------------------------------
Net asset value, end of period ... $ 10.17 $ 10.34 $ 10.16 $ 9.76 $ 9.81
===========================================================
Total Return
Total investment return based
on net asset value(c)... ....... 3.54% 7.21% 9.71% 5.10% (1.38)%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted)......... ....... $109,543 $109,373 $97,714 $75,422 $79,752
Ratio to average net assets of:
Expenses, net of waivers/
reimbursements........ ....... .78% .78% .78% .73% .73%
Expenses, before waivers/
reimbursements........ ....... 1.11% 1.09% 1.13% 1.14% 1.18%
Net investment income,
net of waivers/
reimbursements........ ....... 4.80% 5.18% 5.33% 5.52% 4.94%
Portfolio turnover rate. ......... 30% 20% 70% 281% 244%
See footnote summary on page 130.
- --------------------------------------------------------------------------------
AllianceBernstein Municipal Income Fund II o 107
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
Florida Portfolio
===========================================================
Class B
===========================================================
Year Ended September 30,
-----------------------------------------------------------
2003 2002 2001 2000 1999
-----------------------------------------------------------
Net asset value,
beginning of period..... ....... $ 10.35 $10.17 $ 9.77 $ 9.81 $ 10.48
-----------------------------------------------------------
Income From Investment
Operations
Net investment income(a)(b) ...... .42 .45 .46 .46 .43
Net realized and unrealized
gain (loss) on investment
transactions............ ....... (.14) .18 .39 (.05) (.64)
-----------------------------------------------------------
Net increase (decrease)
in net asset value
from operations......... ....... .28 .63 .85 .41 (.21)
-----------------------------------------------------------
Less: Dividends and
Distributions
Dividends from net
investment income....... ....... (.45) (.45) (.45) (.45) (.43)
Distributions in excess of
net investment income... ....... -0- -0- -0- -0- (.03)
-----------------------------------------------------------
Total dividends and
distributions........... ....... (.45) (.45) (.45) (.45) (.46)
-----------------------------------------------------------
Net asset value, end of period ... $ 10.18 $ 10.35 $ 10.17 $ 9.77 $ 9.81
===========================================================
Total Return
Total investment return based
on net asset value(c)... ....... 2.82% 6.45% 8.92% 4.43% (2.06)%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted)......... ....... $104,874 $105,583 $87,603 $65,391 $67,532
Ratio to average net assets of:
Expenses, net of waivers/
reimbursements........ ....... 1.48% 1.48% 1.48% 1.43% 1.43%
Expenses, before waivers/
reimbursements........ ....... 1.81% 1.79% 1.84% 1.85% 1.91%
Net investment income,
net of waivers/
reimbursements........ ....... 4.09% 4.47% 4.62% 4.82% 4.25%
Portfolio turnover rate. ......... 30% 20% 70% 281% 244%
See footnote summary on page 130.
- --------------------------------------------------------------------------------
108 o AllianceBernstein Municipal Income Fund II
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
Florida Portfolio
===========================================================
Class C
===========================================================
Year Ended September 30,
-----------------------------------------------------------
2003 2002 2001 2000 1999
-----------------------------------------------------------
Net asset value,
beginning of period..... ....... $ 10.35 $10.17 $ 9.77 $ 9.81 $ 10.48
-----------------------------------------------------------
Income From Investment
Operations
Net investment income(a)(b) ...... .42 .45 .46 .46 .43
Net realized and unrealized
gain (loss) on investment
transactions............ ....... (.14) .18 .39 (.05) (.64)
-----------------------------------------------------------
Net increase (decrease)
in net asset value
from operations......... ....... .28 .63 .85 .41 (.21)
-----------------------------------------------------------
Less: Dividends and
Distributions
Dividends from net
investment income....... ....... (.45) (.45) (.45) (.45) (.43)
Distributions in excess of
net investment income... ....... -0- -0- -0- -0- (.03)
-----------------------------------------------------------
Total dividends and
distributions........... ....... (.45) (.45) (.45) (.45) (.46)
-----------------------------------------------------------
Net asset value, end of period ... $ 10.18 $ 10.35 $ 10.17 $ 9.77 $ 9.81
===========================================================
Total Return
Total investment return based
on net asset value(c)... ....... 2.82% 6.45% 8.93% 4.43% (2.06)%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted)......... ....... $46,929 $49,102 $40,360 $38,464 $42,169
Ratio to average net assets of:
Expenses, net of waivers/
reimbursements........ ....... 1.48% 1.48% 1.48% 1.43% 1.43%
Expenses, before waivers/
reimbursements........ ....... 1.81% 1.79% 1.83% 1.85% 1.91%
Net investment income,
net of waivers/
reimbursements........ ....... 4.09% 4.47% 4.64% 4.83% 4.24%
Portfolio turnover rate. ......... 30% 20% 70% 281% 244%
See footnote summary on page 130.
- --------------------------------------------------------------------------------
AllianceBernstein Municipal Income Fund II o 109
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
Massachusetts Portfolio
===========================================================
Class A
===========================================================
Year Ended September 30,
-----------------------------------------------------------
2003 2002 2001 2000 1999
-----------------------------------------------------------
Net asset value,
beginning of period..... ....... $ 11.06 $11.05 $10.59 $10.66 $ 11.39
-----------------------------------------------------------
Income From Investment
Operations
Net investment income(a)(b) ....... .51 .54 .56 .58 .53
Net realized and unrealized
gain (loss) on investment
transactions............ ........ (.26) .04 .47 (.09 ) (.66)
-----------------------------------------------------------
Net increase (decrease)
in net asset value
from operations......... ........ .25 .58 1.03 .49 (.13)
-----------------------------------------------------------
Less: Dividends and
Distributions
Dividends from net
investment income....... ........ (.52) (.54) (.56) (.56) (.53)
Distributions in excess of
net investment income... ........ -0- (.03) (.01) -0- (.04)
Distributions from net
realized gains.......... ........ -0- -0- -0- -0- (.03)
-----------------------------------------------------------
Total dividends and
distributions........... ........ (.52) (.57) (.57) (.56) (.60)
-----------------------------------------------------------
Net asset value, end of period .... $ 10.79 $ 11.06 $ 11.05 $ 10.59 $ 10.66
===========================================================
Total Return
Total investment return based
on net asset value(c)... ........ 2.39% 5.46% 9.92% 4.86% (1.24)%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted)......... ........ $46,342 $66,197 $63,384 $45,418 $44,758
Ratio to average net assets of:
Expenses, net of waivers/
reimbursements........ ........ .82% .82% .82% .77 % .72%
Expenses, before waivers/
reimbursements........ ........ 1.17% 1.12% 1.19% 1.63% 1.24%
Net investment income,
net of waivers/
reimbursements........ ........ 4.71% 4.97% 5.20% 5.53% 4.74%
Portfolio turnover rate. .......... 28% 27% 108% 389% 303%
See footnote summary on page 130.
- --------------------------------------------------------------------------------
110 o AllianceBernstein Municipal Income Fund II
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
Massachusetts Portfolio
===========================================================
Class B
===========================================================
Year Ended September 30,
-----------------------------------------------------------
2003 2002 2001 2000 1999
-----------------------------------------------------------
Net asset value,
beginning of period..... ........ $ 11.03 $11.03 $10.57 $10.65 $ 11.38
-----------------------------------------------------------
Income From Investment
Operations
Net investment income(a)(b) ....... .44 .47 .49 .50 .45
Net realized and unrealized
gain (loss) on investment
transactions............ ........ (.25) .03 .47 (.09) (.65)
-----------------------------------------------------------
Net increase (decrease)
in net asset value
from operations......... ........ .19 .50 .96 .41 (.20)
-----------------------------------------------------------
Less: Dividends and
Distributions
Dividends from net
investment income....... ........ (.45) (.47) (.49) (.49) (.45)
Distributions in excess of
net investment income... ........ -0- (.03) (.01) -0- (.05)
Distributions from net
realized gains.......... ........ -0- -0- -0- -0- (.03)
-----------------------------------------------------------
Total dividends and
distributions........... ........ (.45) (.50) (.50) (.49) (.53)
-----------------------------------------------------------
Net asset value, end of period .... $ 10.77 $ 11.03 $ 11.03 $ 10.57 $ 10.65
===========================================================
Total Return
Total investment return based
on net asset value(c)... ........ 1.76% 4.69% 9.22% 4.06% (1.87)%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted)......... ........ $73,979 $79,216 $62,190 $39,964 $42,628
Ratio to average net assets of:
Expenses, net of waivers/
reimbursements........ ........ 1.52% 1.52% 1.52% 1.47% 1.42%
Expenses, before waivers/
reimbursements........ ........ 1.89% 1.83% 1.90% 1.94% 1.97%
Net investment income,
net of waivers/
reimbursements........ ........ 4.02% 4.28% 4.53% 4.83% 4.06%
Portfolio turnover rate. .......... 28% 27% 108% 389% 303%
See footnote summary on page 130.
- --------------------------------------------------------------------------------
AllianceBernstein Municipal Income Fund II o 111
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
Massachusetts Portfolio
===========================================================
Class C
===========================================================
Year Ended September 30,
-----------------------------------------------------------
2003 2002 2001 2000 1999
-----------------------------------------------------------
Net asset value,
beginning of period..... ....... $ 11.03 $11.03 $10.57 $10.65 $ 11.38
-----------------------------------------------------------
Income From Investment
Operations
Net investment income(a)(b) ...... .44 .47 .49 .50 .45
Net realized and unrealized
gain(loss) on investment
transactions............ ....... (.25) .03 .47 (.09) (.65)
-----------------------------------------------------------
Net increase (decrease)
in net asset value
from operations......... ....... .19 .50 .96 .41 (.20)
-----------------------------------------------------------
Less: Dividends and
Distributions
Dividends from net
investment income....... ....... (.45) (.47) (.49) (.49) (.45)
Distributions in excess of
net investment income... ....... -0- (.03) (.01) -0- (.05)
Distributions from net
realized gains.......... ....... -0- -0- -0- -0- (.03)
-----------------------------------------------------------
Total dividends and
distributions........... ....... (.45) (.50) (.50) (.49) (.53)
-----------------------------------------------------------
Net asset value, end of period ... $ 10.77 $ 11.03 $ 11.03 $ 10.57 $ 10.65
===========================================================
Total Return
Total investment return based
on net asset value(c)... ....... 1.76% 4.69% 9.22% 4.06% (1.87)%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted)......... ....... $46,542 $53,156 $44,688 $31,207 $29,365
Ratio to average net assets of:
Expenses, net of waivers/
reimbursements........ ....... 1.52% 1.52% 1.52% 1.47% 1.42%
Expenses, before waivers/
reimbursements........ ....... 1.88% 1.82% 1.90% 1.93% 1.96%
Net investment income,
net of waivers/
reimbursements........ ....... 4.02% 4.28% 4.53% 4.83% 4.05%
Portfolio turnover rate. ......... 28% 27% 108% 389% 303%
See footnote summary on page 130.
- --------------------------------------------------------------------------------
112 o AllianceBernstein Municipal Income Fund II
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
Michigan Portfolio
===========================================================
Class A
===========================================================
Year Ended September 30,
-----------------------------------------------------------
2003 2002 2001 2000 1999
-----------------------------------------------------------
Net asset value,
beginning of period..... ....... $ 10.91 $10.63 $10.16 $10.06 $ 10.62
-----------------------------------------------------------
Income From Investment
Operations
Net investment income(a)(b) ...... .47 .49 .52 .53 .46
Net realized and unrealized
gain (loss) on investment
transactions............ ....... (.17) .32 .48 .09 (.45)
-----------------------------------------------------------
Net increase in net asset
value from operations... ....... .30 .81 1.00 .62 .01
-----------------------------------------------------------
Less: Dividends and
Distributions
Dividends from net
investment income....... ....... (.52) (.49) (.52) (.52) (.46)
Distributions in excess of
net investment income... ....... -0- (.04) (.01) -0- (.04)
Distributions from net
realized gains.......... ....... -0- -0- -0- -0- (.07)
-----------------------------------------------------------
Total dividends and
distributions........... ....... (.52) (.53) (.53) (.52) (.57)
-----------------------------------------------------------
Net asset value, end of period ... $ 10.69 $ 10.91 $ 10.63 $ 10.16 $ 10.06
===========================================================
Total Return
Total investment return based
on net asset value(c)... ....... 2.66% 7.87% 10.11% 6.39% .03%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted)......... ....... $53,022 $55,396 $32,804 $14,609 $11,760
Ratio to average net assets of:
Expenses, net of waivers/
reimbursements........ ....... 1.01% 1.01% 1.01% .99% .96%
Expenses, before waivers/
reimbursements........ ....... 1.20% 1.21% 1.44% 1.63% 1.62%
Net investment income,
net of waivers/
reimbursements........ ....... 4.38% 4.57% 5.01% 5.30% 4.48%
Portfolio turnover rate. ......... 46% 18% 115% 287% 213%
See footnote summary on page 130.
- --------------------------------------------------------------------------------
AllianceBernstein Municipal Income Fund II o 113
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
Michigan Portfolio
===========================================================
Class B
===========================================================
Year Ended September 30,
-----------------------------------------------------------
2003 2002 2001 2000 1999
-----------------------------------------------------------
Net asset value,
beginning of period..... ....... $ 10.89 $10.62 $10.15 $10.05 $ 10.61
-----------------------------------------------------------
Income From Investment
Operations
Net investment income(a)(b) ...... .40 .41 .45 .45 .39
Net realized and unrealized
gain (loss) on investment
transactions............ ....... (.18) .32 .48 .10 (.45)
-----------------------------------------------------------
Net increase (decrease)
in net asset value
from operations......... ....... .22 .73 .93 .55 (.06)
-----------------------------------------------------------
Less: Dividends and
Distributions
Dividends from net
investment income....... ....... (.44) (.41) (.45) (.45) (.39)
Distributions in excess of
net investment income... ....... -0- (.05) (.01) -0- (.04)
Distributions from net
realized gains.......... ....... -0- -0- -0- -0- (.07)
-----------------------------------------------------------
Total dividends and
distributions........... ....... (.44) (.46) (.46) (.45) (.50)
-----------------------------------------------------------
Net asset value, end of period ... $ 10.67 $ 10.89 $ 10.62 $ 10.15 $ 10.05
===========================================================
Total Return
Total investment return based
on net asset value(c)... ....... 1.95% 7.06% 9.39% 5.55% (.64)%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted)......... ....... $58,034 $53,097 $29,436 $14,943 $13,844
Ratio to average net assets of:
Expenses, net of waivers/
reimbursements........ ....... 1.71% 1.71% 1.71% 1.69% 1.66%
Expenses, before waivers/
reimbursements........ ....... 1.92% 1.92% 2.16% 2.34% 2.44%
Net investment income,
net of waivers/
reimbursements........ ........ 3.69% 3.88% 4.34% 4.59% 3.79%
Portfolio turnover rate. ......... 46% 18% 115% 287% 213%
See footnote summary on page 130.
- --------------------------------------------------------------------------------
114 o AllianceBernstein Municipal Income Fund II
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
Michigan Portfolio
===========================================================
Class C
===========================================================
Year Ended September 30,
-----------------------------------------------------------
2003 2002 2001 2000 1999
-----------------------------------------------------------
Net asset value,
beginning of period..... ....... $ 10.89 $ 10.62 $ 10.14 $ 10.05 $ 10.61
-----------------------------------------------------------
Income From Investment
Operations
Net investment income(a)(b) ...... .40 .41 .45 .46 .40
Net realized and unrealized
gain (loss) on investment
transactions............ ....... (.18) .32 .49 .08 (.46)
-----------------------------------------------------------
Net increase (decrease)
in net asset value
from operations......... ....... .22 .73 .94 .54 (.06)
-----------------------------------------------------------
Less: Dividends and
Distributions
Dividends from net
investment income....... ....... (.44) (.41) (.45) (.45) (.40)
Distributions in excess of
net investment income... ....... -0- (.05) (.01) -0- (.03)
Distributions from net
realized gains.......... ....... -0- -0- -0- -0- (.07)
-----------------------------------------------------------
Total dividends and
distributions........... ....... (.44) (.46) (.46) (.45) (.50)
-----------------------------------------------------------
Net asset value, end of period ... $ 10.67 $ 10.89 $ 10.62 $ 10.14 $ 10.05
===========================================================
Total Return
Total investment return based
on net asset value(c)... ....... 1.95% 7.06% 9.50% 5.55% (.64)%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted)......... ....... $54,996 $57,818 $24,142 $12,061 $10,747
Ratio to average net assets of:
Expenses, net of waivers/
reimbursements........ ....... 1.71% 1.71% 1.71% 1.69% 1.66%
Expenses, before waivers/
reimbursements........ ....... 1.90% 1.93% 2.16% 2.34% 2.43%
Net investment income,
net of waivers/
reimbursements........ ....... 3.69% 3.86% 4.35% 4.60% 3.78%
Portfolio turnover rate. ......... 46% 18% 115% 287% 213%
See footnote summary on page 130.
- --------------------------------------------------------------------------------
AllianceBernstein Municipal Income Fund II o 115
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
Minnesota Portfolio
===========================================================
Class A
===========================================================
Year Ended September 30,
-----------------------------------------------------------
2003 2002 2001 2000 1999
-----------------------------------------------------------
Net asset value,
beginning of period..... ....... $ 10.31 $ 10.09 $ 9.72 $ 9.67 $ 10.22
-----------------------------------------------------------
Income From Investment
Operations
Net investment income(a)(b) ...... .45 .48 .52 .53 .49
Net realized and unrealized
gain (loss) on investment
transactions............ ....... (.15) .25 .38 .03 (.53)
-----------------------------------------------------------
Net increase (decrease)
in net asset value
from operations......... ....... .30 .73 .90 .56 (.04)
-----------------------------------------------------------
Less: Dividends and
Distributions
Dividends from net
investment income....... ....... (.46) (.48) (.52) (.51) (.49)
Distributions in excess of
net investment income... ....... -0- (.03) (.01) -0- (.02)
-----------------------------------------------------------
Total dividends and
distributions........... ....... (.46) (.51) (.53) (.51) (.51)
-----------------------------------------------------------
Net asset value, end of period ... $ 10.15 $ 10.31 $ 10.09 $ 9.72 $ 9.67
===========================================================
Total Return
Total investment return based
on net asset value(c)... ....... 3.05% 7.46% 9.44% 6.09% (.48)%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted)......... ....... $67,521 $65,850 $30,501 $20,212 $10,601
Ratio to average net assets of:
Expenses, net of waivers/
reimbursements........ ....... .90% .90% .90% .81% .75%
Expenses, before waivers/
reimbursements........ ....... 1.19% 1.29% 1.49% 1.66% 1.63%
Net investment income,
net of waivers/
reimbursements........ ....... 4.42% 4.75% 5.23% 5.57% 4.90%
Portfolio turnover rate. ......... 32% 29% 61% 307% 259%
See footnote summary on page 130.
- --------------------------------------------------------------------------------
116 o AllianceBernstein Municipal Income Fund II
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
Minnesota Portfolio
===========================================================
Class B
===========================================================
Year Ended September 30,
-----------------------------------------------------------
2003 2002 2001 2000 1999
-----------------------------------------------------------
Net asset value,
beginning of period..... ....... $ 10.31 $ 10.08 $ 9.72 $ 9.67 $ 10.22
-----------------------------------------------------------
Income From Investment
Operations
Net investment income(a)(b) ...... .38 .40 .45 .46 .42
Net realized and unrealized
gain (loss) on investment
transactions............ ....... (.15) .27 .37 .03 (.53)
-----------------------------------------------------------
Net increase (decrease)
in net asset value
from operations......... ....... .23 .67 .82 .49 (.11)
-----------------------------------------------------------
Less: Dividends and
Distributions
Dividends from net
investment income....... ....... (.39) (.40) (.45) (.44) (.42)
Distributions in excess of
net investment income... ....... -0- (.04) (.01) -0- (.02)
-----------------------------------------------------------
Total dividends and
distributions........... ....... (.39) (.44) (.46) (.44) (.44)
-----------------------------------------------------------
Net asset value, end of period ... $ 10.15 $ 10.31 $ 10.08 $ 9.72 $ 9.67
===========================================================
Total Return
Total investment return based
on net asset value(c)... ....... 2.34% 6.84% 8.61% 5.32% (1.19)%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted)......... ....... $24,366 $24,340 $17,304 $12,064 $14,111
Ratio to average net assets of:
Expenses, net of waivers/
reimbursements........ ....... 1.60% 1.60% 1.60% 1.51% 1.46%
Expenses, before waivers/
reimbursements........ ....... 1.90% 1.99% 2.19% 2.37% 2.43%
Net investment income,
net of waivers/
reimbursements........ ....... 3.72% 4.04% 4.52% 4.81% 4.16%
Portfolio turnover rate. ......... 32% 29% 61% 307% 259%
See footnote summary on page 130.
- --------------------------------------------------------------------------------
AllianceBernstein Municipal Income Fund II o 117
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
Minnesota Portfolio
===========================================================
Class C
===========================================================
Year Ended September 30,
-----------------------------------------------------------
2003 2002 2001 2000 1999
-----------------------------------------------------------
Net asset value,
beginning of period..... ....... $ 10.32 $ 10.10 $ 9.72 $ 9.67 $ 10.22
-----------------------------------------------------------
Income From Investment
Operations
Net investment income(a)(b) ...... .38 .40 .45 .46 .42
Net realized and unrealized
gain (loss) on investment
transactions............ ....... (.15) .26 .39 .03 (.53)
-----------------------------------------------------------
Net increase (decrease)
in net asset value
from operations......... ....... .23 .66 .84 .49 (.11)
-----------------------------------------------------------
Less: Dividends and
Distributions
Dividends from net
investment income....... ....... (.39) (.40) (.45) (.44) (.42)
Distributions in excess of
net investment income... ....... -0- (.04) (.01) -0- (.02)
-----------------------------------------------------------
Total dividends and
distributions........... ....... (.39) (.44) (.46) (.44) (.44)
-----------------------------------------------------------
Net asset value, end of period ... $ 10.16 $ 10.32 $ 10.10 $ 9.72 $ 9.67
===========================================================
Total Return
Total investment return based
on net asset value(c)... ....... 2.34% 6.72% 8.82% 5.32% (1.19)%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted)......... ....... $19,248 $20,401 $11,434 $7,524 $9,081
Ratio to average net assets of:
Expenses, net of waivers/
reimbursements........ ....... 1.60% 1.60% 1.60% 1.50% 1.45%
Expenses, before waivers/
reimbursements........ ....... 1.89% 1.99% 2.19% 2.36% 2.44%
Net investment income,
net of waivers/
reimbursements........ ....... 3.70% 4.01% 4.51% 4.84% 4.17%
Portfolio turnover rate. ......... 32% 29% 61% 307% 259%
See footnote summary on page 130.
- --------------------------------------------------------------------------------
118 o AllianceBernstein Municipal Income Fund II
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
New Jersey Portfolio
===========================================================
Class A
===========================================================
Year Ended September 30,
-----------------------------------------------------------
2003 2002 2001 2000 1999
-----------------------------------------------------------
Net asset value,
beginning of period..... ....... $ 10.03 $ 10.11 $ 9.92 $ 9.93 $ 10.46
-----------------------------------------------------------
Income From Investment
Operations
Net investment income(a)(b) ...... .45 .48 .52 .52 .49
Net realized and unrealized
gain (loss) on investment
transactions............ ....... (.22) (.05) .20 (.02) (.51)
-----------------------------------------------------------
Net increase (decrease) in
net asset value
from operations......... ....... .23 .43 .72 .50 (.02)
-----------------------------------------------------------
Less: Dividends and
Distributions
Dividends from net
investment income....... ....... (.46) (.48) (.52) (.51) (.49)
Distributions in excess of
net investment income... ....... -0- (.03) (.01) -0- (.02)
-----------------------------------------------------------
Total dividends and
distributions........... ....... (.46) (.51) (.53) (.51) (.51)
-----------------------------------------------------------
Net asset value, end of period ... $ 9.80 $ 10.03 $ 10.11 $ 9.92 $ 9.93
===========================================================
Total Return
Total investment return based
on net asset value(c)... ....... 2.39% 4.42% 7.33% 5.31% (.29)%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted)......... ....... $81,632 $94,865 $80,489 $49,667 $33,109
Ratio to average net assets of:
Expenses, net of waivers/
reimbursements........ ....... .87% .87% .87% .85% .82%
Expenses, before waivers/
reimbursements........ ....... 1.13% 1.11% 1.13% 1.23% 1.25%
Net investment income,
net of waivers/
reimbursements........ ....... 4.53% 4.80% 5.04% 5.36% 4.82%
Portfolio turnover rate. ......... 45% 49% 111% 224% 131%
See footnote summary on page 130.
- --------------------------------------------------------------------------------
AllianceBernstein Municipal Income Fund II o 119
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
New Jersey Portfolio
===========================================================
Class B
===========================================================
Year Ended September 30,
-----------------------------------------------------------
2003 2002 2001 2000 1999
-----------------------------------------------------------
Net asset value,
beginning of period..... ....... $ 10.04 $ 10.11 $ 9.92 $ 9.93 $ 10.46
-----------------------------------------------------------
Income From Investment
Operations
Net investment income(a)(b) ...... .38 .41 .44 .45 .42
Net realized and unrealized
gain (loss) on investment
transactions............ ....... (.23) (.04) .20 (.02) (.51)
-----------------------------------------------------------
Net increase (decrease)
in net asset value
from operations......... ....... .15 .37 .64 .43 (.09)
-----------------------------------------------------------
Less: Dividends and
Distributions
Dividends from net
investment income....... ....... (.39) (.41) (.44) (.44) (.42)
Distributions in excess of
net investment income... ....... -0- (.03) (.01) -0- (.02)
-----------------------------------------------------------
Total dividends and
distributions........... ....... (.39) (.44) (.45) (.44) (.44)
-----------------------------------------------------------
Net asset value, end of period $ 9.80 $ 10.04 $ 10.11 $ 9.92 $ 9.93
===========================================================
Total Return
Total investment return based
on net asset value(c)... ....... 1.56% 3.79% 6.56% 4.53% (.99)%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted)......... ....... $110,294 $127,025 $103,889 $62,149 $64,929
Ratio to average net assets of:
Expenses, net of waivers/
reimbursements........ ....... 1.57% 1.57% 1.57% 1.55% 1.53%
Expenses, before waivers/
reimbursements........ ....... 1.84% 1.82% 1.84% 1.94% 1.99%
Net investment income,
net of waivers/
reimbursements........ ....... 3.83% 4.10% 4.33% 4.63% 4.10%
Portfolio turnover rate. ......... 45% 49% 111% 224% 131%
See footnote summary on page 130.
- --------------------------------------------------------------------------------
120 o AllianceBernstein Municipal Income Fund II
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
New Jersey Portfolio
===========================================================
Class C
===========================================================
Year Ended September 30,
-----------------------------------------------------------
2003 2002 2001 2000 1999
-----------------------------------------------------------
Net asset value,
beginning of period..... ....... $ 10.04 $ 10.11 $ 9.93 $ 9.93 $ 10.46
-----------------------------------------------------------
Income From Investment
Operations
Net investment income(a)(b) ...... .38 .41 .44 .45 .43
Net realized and unrealized
gain (loss) on investment
transactions............ ....... (.22) (.04) .19 (.01) (.52)
-----------------------------------------------------------
Net increase (decrease)
in net asset value
from operations......... ....... .16 .37 .63 .44 (.09)
-----------------------------------------------------------
Less: Dividends and
Distributions
Dividends from net
investment income....... ....... (.39) (.41) (.44) (.44) (.43)
Distributions in excess of
net investment income... ....... -0- (.03) (.01) -0- (.01)
-----------------------------------------------------------
Total dividends and
distributions........... ....... (.39) (.44) (.45) (.44) (.44)
-----------------------------------------------------------
Net asset value, end of period ... $ 9.81 $ 10.04 $ 10.11 $ 9.93 $ 9.93
===========================================================
Total Return
Total investment return based
on net asset value(c)... ....... 1.66% 3.78% 6.45% 4.63% (.99)%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted)......... ....... $45,633 $56,295 $46,025 $31,115 $32,578
Ratio to average net assets of:
Expenses, net of waivers/
reimbursements........ ....... 1.57% 1.57% 1.57% 1.54% 1.52%
Expenses, before waivers/
reimbursements........ ....... 1.83% 1.81% 1.83% 1.93% 1.98%
Net investment income,
net of waivers/
reimbursements........ ....... 3.83% 4.10% 4.34% 4.64% 4.12%
Portfolio turnover rate. ......... 45% 49% 111% 224% 131%
See footnote summary on page 130.
- --------------------------------------------------------------------------------
AllianceBernstein Municipal Income Fund II o 121
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
Ohio Portfolio
===========================================================
Class A
===========================================================
Year Ended September 30,
-----------------------------------------------------------
2003 2002 2001 2000 1999
-----------------------------------------------------------
Net asset value,
beginning of period..... ....... $ 10.02 $ 10.01 $ 9.77 $ 9.86 $ 10.45
-----------------------------------------------------------
Income From Investment
Operations
Net investment income(a)(b) ...... .46 .50 .54 .54 .49
Net realized and unrealized
gain (loss) on investment
transactions............ ....... .05 .04 .23 (.12) (.55)
-----------------------------------------------------------
Net increase (decrease)
in net asset value
from operations......... ....... .51 .54 .77 .42 (.06)
-----------------------------------------------------------
Less: Dividends and
Distributions
Dividends from net
investment income....... ....... (.48) (.51) (.53) (.51) (.49)
Distributions in excess of
net investment income... ....... -0- (.02) -0- -0- (.04)
-----------------------------------------------------------
Total dividends and
distributions........... ....... (.48) (.53) (.53) (.51) (.53)
-----------------------------------------------------------
Net asset value, end of period ... $ 10.05 $ 10.02 $ 10.01 $ 9.77 $ 9.86
===========================================================
Total Return
Total investment return based
on net asset value(c)... ....... 5.20% 5.57% 8.04% 4.54% (.70)%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted)......... ....... $75,102 $70,223 $46,855 $32,490 $27,229
Ratio to average net assets of:
Expenses, net of waivers/
reimbursements........ ....... .85% .85% .85% .76% .75%
Expenses, before waivers/
reimbursements........ ....... 1.15% 1.15% 1.20% 1.29% 1.30%
Net investment income,
net of waivers/
reimbursements........ ....... 4.59% 4.99% 5.42% 5.57% 4.88%
Portfolio turnover rate. ......... 23% 34% 32% 307% 208%
See footnote summary on page 130.
- --------------------------------------------------------------------------------
122 o AllianceBernstein Municipal Income Fund II
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
Ohio Portfolio
===========================================================
Class B
===========================================================
Year Ended September 30,
-----------------------------------------------------------
2003 2002 2001 2000 1999
-----------------------------------------------------------
Net asset value,
beginning of period..... ....... $ 10.02 $ 10.01 $ 9.77 $ 9.86 $ 10.45
-----------------------------------------------------------
Income From Investment
Operations
Net investment income(a)(b) ...... .39 .43 .47 .46 .43
Net realized and unrealized
gain (loss) on investment
transactions............ ....... .04 .05 .24 (.11) (.57)
-----------------------------------------------------------
Net increase (decrease)
in net asset value
from operations......... ....... .43 .48 .71 .35 (.14)
-----------------------------------------------------------
Less: Dividends and
Distributions
Dividends from net
investment income....... ....... (.41) (.44) (.47) (.44) (.43)
Distributions in excess of
net investment income... ....... -0- (.03) -0- -0- (.02)
-----------------------------------------------------------
Total dividends and
distributions........... ....... (.41) (.47) (.47) (.44) (.45)
-----------------------------------------------------------
Net asset value, end of period ... $ 10.04 $ 10.02 $ 10.01 $ 9.77 $ 9.86
===========================================================
Total Return
Total investment return based
on net asset value(c)... ....... 4.37% 4.87% 7.33% 3.78% (1.38)%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted)......... ....... $83,422 $73,159 $54,575 $40,812 $49,055
Ratio to average net assets of:
Expenses, net of waivers/
reimbursements........ ....... 1.55% 1.55% 1.55% 1.47% 1.46%
Expenses, before waivers/
reimbursements........ ....... 1.86% 1.85% 1.91% 2.00% 2.01%
Net investment income,
net of waivers/
reimbursements........ ....... 3.88% 4.29% 4.72% 4.84% 4.17%
Portfolio turnover rate. ......... 23% 34% 32% 307% 208%
See footnote summary on page 130.
- --------------------------------------------------------------------------------
AllianceBernstein Municipal Income Fund II o 123
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
Ohio Portfolio
===========================================================
Class C
===========================================================
Year Ended September 30,
-----------------------------------------------------------
2003 2002 2001 2000 1999
-----------------------------------------------------------
Net asset value,
beginning of period..... ....... $ 10.02 $ 10.02 $ 9.77 $ 9.86 $ 10.45
-----------------------------------------------------------
Income From Investment
Operations
Net investment income(a)(b) ...... .39 .43 .47 .47 .43
Net realized and unrealized
gain (loss) on investment
transactions............ ....... .05 .04 .25 (.12) (.57)
-----------------------------------------------------------
Net increase (decrease)
in net asset value
from operations......... ....... .44 .47 .72 .35 (.14)
-----------------------------------------------------------
Less: Dividends and
Distributions
Dividends from net
investment income....... ....... (.41) (.44) (.47) (.44) (.43)
Distributions in excess of
net investment income... ....... -0- (.03) -0- -0- (.02)
-----------------------------------------------------------
Total dividends and
distributions........... ....... (.41) (.47) (.47) (.44) (.45)
-----------------------------------------------------------
Net asset value, end of period ... $ 10.05 $ 10.02 $ 10.02 $ 9.77 $ 9.86
===========================================================
Total Return
Total investment return based
on net asset value(c)... ....... 4.47% 4.77% 7.43% 3.78% (1.38)%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted)......... ....... $54,062 $53,883 $36,500 $22,909 $24,126
Ratio to average net assets of:
Expenses, net of waivers/
reimbursements........ ....... 1.55% 1.55% 1.55% 1.46% 1.45%
Expenses, before waivers/
reimbursements........ ....... 1.85% 1.85% 1.90% 1.99% 2.01%
Net investment income,
net of waivers/
reimbursements........ ....... 3.89% 4.29% 4.71% 4.85% 4.18%
Portfolio turnover rate. ......... 23% 34% 32% 307% 208%
See footnote summary on page 130.
- --------------------------------------------------------------------------------
124 o AllianceBernstein Municipal Income Fund II
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
Pennsylvania Portfolio
===========================================================
Class A
===========================================================
Year Ended September 30,
-----------------------------------------------------------
2003 2002 2001 2000 1999
-----------------------------------------------------------
Net asset value,
beginning of period..... ....... $ 10.58 $ 10.42 $ 9.88 $ 9.89 $ 10.66
-----------------------------------------------------------
Income From Investment
Operations
Net investment income(a)(b) ...... .50 .51 .52 .52 .49
Net realized and unrealized
gain (loss) on investment
transactions............ ....... (.14) .18 .55 (.01) (.73)
-----------------------------------------------------------
Net increase (decrease)
in net asset value
from operations......... ....... .36 .69 1.07 .51 (.24)
-----------------------------------------------------------
Less: Dividends and
Distributions
Dividends from net
investment income....... ....... (.50) (.51) (.52) (.52) (.49)
Distributions in excess of
net investment income... ....... -0- (.02) (.01) -0- (.04)
-----------------------------------------------------------
Total dividends and
distributions........... ....... (.50) (.53) (.53) (.52) (.53)
-----------------------------------------------------------
Net asset value, end of period $ 10.44 $ 10.58 $ 10.42 $ 9.88 $ 9.89
===========================================================
Total Return
Total investment return based
on net asset value(c)... ....... 3.57% 6.88% 11.11% 5.35% (2.43)%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted)......... ....... $84,053 $99,426 $96,834 $68,288 $62,479
Ratio to average net assets of:
Expenses, net of waivers/
reimbursements........ ....... .95% .95% .95% .95% .95%
Expenses, before waivers/
reimbursements........ ....... 1.16% 1.13% 1.16% 1.23% 1.24%
Net investment income,
net of waivers/
reimbursements........ ....... 4.91% 4.98% 5.15% 5.40% 4.68%
Portfolio turnover rate. ......... 17% 38% 112% 356% 249%
See footnote summary on page 130.
- --------------------------------------------------------------------------------
AllianceBernstein Municipal Income Fund II o 125
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
Pennsylvania Portfolio
===========================================================
Class B
===========================================================
Year Ended September 30,
-----------------------------------------------------------
2003 2002 2001 2000 1999
-----------------------------------------------------------
Net asset value,
beginning of period..... ....... $ 10.58 $ 10.41 $ 9.88 $ 9.89 $ 10.66
-----------------------------------------------------------
Income From Investment
Operations
Net investment income(a)(b) ...... .44 .45 .45 .45 .41
Net realized and unrealized
gain (loss) on investment
transactions............ ....... (.15) .18 .54 (.02) (.73)
-----------------------------------------------------------
Net increase (decrease)
in net asset value
from operations......... ....... .29 .63 .99 .43 (.32)
-----------------------------------------------------------
Less: Dividends and
Distributions
Dividends from net
investment income....... ....... (.43) (.45) (.45) (.44) (.41)
Distributions in excess of
net investment income... ....... -0- (.01) (.01) -0- (.04)
-----------------------------------------------------------
Total dividends and
distributions........... ....... (.43) (.46) (.46) (.44) (.45)
-----------------------------------------------------------
Net asset value, end of period ... $ 10.44 $ 10.58 $ 10.41 $ 9.88 $ 9.89
===========================================================
Total Return
Total investment return based
on net asset value(c)... ....... 2.84% 6.26% 10.25% 4.58% (3.10)%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted)......... ....... $68,409 $74,390 $62,038 $44,713 $52,012
Ratio to average net assets of:
Expenses, net of waivers/
reimbursements........ ....... 1.65% 1.65% 1.65% 1.66% 1.66%
Expenses, before waivers/
reimbursements........ ....... 1.87% 1.84% 1.86% 1.94% 1.98%
Net investment income,
net of waivers/
reimbursements........ ....... 4.21% 4.35% 4.36% 4.69% 3.96%
Portfolio turnover rate. ......... 17% 38% 112% 356% 249%
See footnote summary on page 130.
- --------------------------------------------------------------------------------
126 o AllianceBernstein Municipal Income Fund II
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
Pennsylvania Portfolio
===========================================================
Class C
===========================================================
Year Ended September 30,
-----------------------------------------------------------
2003 2002 2001 2000 1999
-----------------------------------------------------------
Net asset value,
beginning of period..... ....... $ 10.58 $ 10.41 $ 9.88 $ 9.89 $ 10.66
-----------------------------------------------------------
Income From Investment
Operations
Net investment income(a)(b) ...... .44 .45 .45 .46 .41
Net realized and unrealized
gain (loss) on investment
transactions............ ....... (.15) .18 .54 (.03) (.73)
-----------------------------------------------------------
Net increase (decrease)
in net asset value
from operations......... ....... .29 .63 .99 .43 (.32)
-----------------------------------------------------------
Less: Dividends and
Distributions
Dividends from net
investment income....... ....... (.43) (.45) (.45) (.44) (.41)
Distributions in excess of
net investment income... ....... -0- (.01) (.01) -0- (.04)
-----------------------------------------------------------
Total dividends and
distributions........... ........ (.43) (.46) (.46) (.44) (.45)
-----------------------------------------------------------
Net asset value,
end of period........... ....... $ 10.44 $10.58 $10.41 $ 9.88 $ 9.89
===========================================================
Total Return
Total investment return based
on net asset value(c)... ....... 2.84% 6.26% 10.25% 4.58% (3.10)%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted)......... ....... $42,917 $46,296 $33,334 $23,306 $27,916
Ratio to average net assets of:
Expenses, net of waivers/
reimbursements........ ....... 1.65% 1.65% 1.65% 1.65% 1.65%
Expenses, before waivers/
reimbursements........ ....... 1.87% 1.83% 1.86% 1.93% 1.98%
Net investment income,
net of waivers/
reimbursements........ ....... 4.20% 4.30% 4.42% 4.71% 3.98%
Portfolio turnover rate. ......... 17% 38% 112% 356% 249%
See footnote summary on page 130.
- --------------------------------------------------------------------------------
AllianceBernstein Municipal Income Fund II o 127
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
Virginia Portfolio
===========================================================
Class A
===========================================================
Year Ended September 30,
-----------------------------------------------------------
2003 2002 2001 2000 1999
-----------------------------------------------------------
Net asset value,
beginning of period..... ....... $ 10.77 $ 10.54 $ 10.35 $ 10.32 $ 11.02
-----------------------------------------------------------
Income From Investment
Operations
Net investment income(a)(b) ...... .52 .52 .54 .56 .49
Net realized and unrealized
gain (loss) on investment
transactions............ ....... (.03) .25 .20 .02 (.60)
-----------------------------------------------------------
Net increase (decrease)
in net asset value
from operations......... ....... .49 .77 .74 .58 (.11)
-----------------------------------------------------------
Less: Dividends and
Distributions
Dividends from net
investment income....... ....... (.51) (.52) (.54) (.55) (.49)
Distributions in excess of
net investment income... ....... -0- (.02) (.01) -0- (.07)
Distributions from net
realized gains.......... ....... -0- -0- -0- -0- (.03)
-----------------------------------------------------------
Total dividends and
distributions........... ....... (.51) (.54) (.55) (.55) (.59)
-----------------------------------------------------------
Net asset value, end of period ... $ 10.75 $ 10.77 $ 10.54 $ 10.35 $ 10.32
===========================================================
Total Return
Total investment return based
on net asset value(c)... ....... 4.66% 7.58% 7.32% 5.88% (1.10)%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted)......... ....... $71,572 $76,797 $53,306 $37,784 $28,148
Ratio to average net assets of:
Expenses, net of waivers/
reimbursements........ ....... .72% .72% .72% .67% .67%
Expenses, before waivers/
reimbursements........ ....... 1.15% 1.15% 1.21% 1.26% 1.43%
Net investment income,
net of waivers/
reimbursements........ ....... 4.87% 4.95% 5.18% 5.52% 4.67%
Portfolio turnover rate. ......... 25% 16% 134% 289% 311%
See footnote summary on page 130.
- --------------------------------------------------------------------------------
128 o AllianceBernstein Municipal Income Fund II
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
Virginia Portfolio
===========================================================
Class B
===========================================================
Year Ended September 30,
-----------------------------------------------------------
2003 2002 2001 2000 1999
-----------------------------------------------------------
Net asset value,
beginning of period..... ....... $ 10.75 $ 10.53 $ 10.34 $ 10.31 $ 11.01
-----------------------------------------------------------
Income From Investment
Operations
Net investment income(a)(b) ...... .45 .45 .47 .49 .42
Net realized and unrealized
gain (loss) on investment
transactions............ ....... (.04) .24 .20 .02 (.60)
-----------------------------------------------------------
Net increase (decrease)
in net asset value
from operations......... ....... .41 .69 .67 .51 (.18)
-----------------------------------------------------------
Less: Dividends and
Distributions
Dividends from net
investment income....... ....... (.43) (.45) (.47) (.48) (.42)
Distributions in excess of
net investment income... ....... -0- (.02) (.01) -0- (.07)
Distributions from net
realized gains.......... ....... -0- -0- -0- -0- (.03)
-----------------------------------------------------------
Total dividends and
distributions........... ..... (.43) (.47) (.48) (.48) (.52)
-----------------------------------------------------------
Net asset value, end of period ... $ 10.73 $ 10.75 $ 10.53 $ 10.34 $ 10.31
===========================================================
Total Return
Total investment return based
on net asset value(c)... ....... 3.94% 6.78% 6.62% 5.16% (1.73)%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted)......... ....... $82,541 $85,842 $69,534 $49,216 $42,007
Ratio to average net assets of:
Expenses, net of waivers/
reimbursements........ ....... 1.42% 1.42% 1.42% 1.37% 1.37%
Expenses, before waivers/
reimbursements........ ....... 1.85% 1.86% 1.92% 1.97% 2.20%
Net investment income,
net of waivers/
reimbursements........ ....... 4.18% 4.27% 4.49% 4.83% 3.97%
Portfolio turnover rate. ......... 25% 16% 134% 289% 311%
See footnote summary on page 130.
- --------------------------------------------------------------------------------
AllianceBernstein Municipal Income Fund II o 129
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
Virginia Portfolio
===========================================================
Class C
===========================================================
Year Ended September 30,
-----------------------------------------------------------
2003 2002 2001 2000 1999
-----------------------------------------------------------
Net asset value,
beginning of period..... ....... $ 10.75 $ 10.52 $ 10.33 $ 10.31 $ 11.01
-----------------------------------------------------------
Income From Investment
Operations
Net investment income(a)(b) ...... .45 .45 .47 .49 .42
Net realized and unrealized
gain (loss) on investment
transactions............ ....... (.04) .25 .20 .01 (.60)
-----------------------------------------------------------
Net increase (decrease)
in net asset value
from operations......... ....... .41 .70 .67 .50 (.18)
-----------------------------------------------------------
Less: Dividends and
Distributions
Dividends from net
investment income....... ....... (.43) (.45) (.47) (.48) (.42)
Distributions in excess of
net investment income... ....... -0- (.02) (.01) -0- (.07)
Distributions from net
realized gains.......... ....... -0- -0- -0- -0- (.03)
-----------------------------------------------------------
Total dividends and
distributions........... ....... (.43) (.47) (.48) (.48) (.52)
-----------------------------------------------------------
Net asset value, end of period ... $ 10.73 $ 10.75 $ 10.52 $ 10.33 $ 10.31
===========================================================
Total Return
Total investment return based
on net asset value(c)... ....... 3.94% 6.88% 6.62% 5 .06% (1.73)%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted)......... ....... $33,486 $34,396 $24,116 $16,848 $12,962
Ratio to average net assets of:
Expenses, net of waivers/
reimbursements........ ....... 1.42% 1.42% 1.42% 1.37% 1.37%
Expenses, before waivers/
reimbursements........ ....... 1.85% 1.86% 1.92% 1.96% 2.19%
Net investment income,
net of waivers/
reimbursements........ ....... 4.17% 4.26% 4.48% 4.83% 3.97%
Portfolio turnover rate. ......... 25% 16% 134% 289% 311%
(a) Net of fees waived and expenses reimbursed by the Adviser.
(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 charge or
contingent deferred sales charge is not reflected in the calculation of
total investment return. Total return does not reflect the deduction of
taxes that a shareholder would pay on Portfolio distributions or the
redemption of Portfolio shares. Total investment return calculated for a
period of less than one year is not annualized.
- --------------------------------------------------------------------------------
130 o AllianceBernstein Municipal Income Fund II
REPORT OF ERNST & YOUNG LLP
INDEPENDENT AUDITORS
To the Shareholders and Board of Trustees
Alliance Municipal Income Fund II
We have audited the accompanying statements of assets and liabilities, including
the portfolios of investments, of Alliance Municipal Income Fund II (the "Fund")
(comprising, respectively, the Arizona, Florida, Massachusetts, Michigan,
Minnesota, New Jersey, Ohio, Pennsylvania, and Virginia Portfolios) as of
September 30, 2003, and the related statements of operations for the year then
ended, the statements of changes in net assets for each of the two years in the
period then ended, and the financial highlights for each of the five years in
the period then ended. These financial statements and financial highlights are
the responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights. Our procedures included
confirmation of securities owned as of September 30, 2003, by correspondence
with the custodian and brokers. 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 each
of the respective portfolios constituting the Alliance Municipal Income Fund II
at September 30, 2003, the results of their operations for the year then ended,
the changes in their net assets for each of the two years in the period then
ended, and the financial highlights for each of the five years in the period
then ended, in conformity with accounting principles generally accepted in the
United States.
/s/ Ernst & Young LLP
New York, New York
November 14, 2003
- --------------------------------------------------------------------------------
AllianceBernstein Municipal Income Fund II o 131
BOARD OF TRUSTEES
William H. Foulk, Jr.,(1) Chairman
Marc O. Mayer, President
Ruth Block(1)
David H. Dievler(1)
John H. Dobkin(1)
Clifford L. Michel(1)
Donald J. Robinson(1)
OFFICERS
Kathleen A. Corbet, Senior Vice President
Guy Davidson, Senior Vice President
David M. Dowden(2), Vice President
Terrance T. Hults(2), Vice President
William E. Oliver, Vice President
Mark D. Gersten, Treasurer & Chief Financial Officer
Thomas R. Manley, Controller
Custodian
The Bank of New York
One Wall Street
New York, NY 10286
Principal Underwriter
AllianceBernstein Investment
Research and Management, Inc.
1345 Avenue of the Americas
New York, NY 10105
Legal Counsel
Seward & Kissel LLP
One Battery Park Plaza
New York, NY 10004
Independent Auditors
Ernst & Young LLP
5 Times Square
New York, NY 10036
Transfer Agent
Alliance Global Investor Services, Inc.
P.O. Box 786003
San Antonio, Texas 78278-6003
Toll-free (800) 227-4618
(1) Member of the Audit Committee.
(2) Messrs. Dowden and Hults are the persons primarily responsible for the
day-to-day management of the Fund's investment portfolio.
- --------------------------------------------------------------------------------
132 o AllianceBernstein Municipal Income Fund II
MANAGEMENT OF THE FUND
Board of Trustees Information
The business and affairs of the Fund are managed under the direction of the
Board of Trustees. Certain information concerning the Fund's Trustees is set
forth below.
PORTFOLIOS
IN FUND OTHER
NAME, AGE OF PRINCIPAL COMPLEX DIRECTORSHIPS
TRUSTEE, ADDRESS OCCUPATION(S) OVERSEEN BY HELD BY
(YEARS OF SERVICE*) DURING PAST 5 YEARS TRUSTEE TRUSTEE
- -----------------------------------------------------------------------------------------------
DISINTERESTED TRUSTEES
William H. Foulk, Jr., #+, 71 Investment Adviser and 113 None
2 Sound View Drive Independent Consultant. Formerly
Suite 100 Senior Manager of Barrett
Greenwich, CT 06830 Associates, Inc., a registered
(5) investment adviser, with which
Chairman of the Board he had been associated since prior
to 1998. Formerly Deputy Comptroller
and Chief Investment Officer of the
State of New York and, prior
thereto, Chief Investment Officer
of the New York Bank for Savings.
Ruth Block, 143+, 73 Formerly an Executive Vice 96 None
500 SE Mizner Blvd. President and Chief Insurance
Boca Raton, FL 33432 Officer of The Equitable Life
(10) Assurance Society of the United
States; Chairman and Chief Executive
Officer of Evlico; Director of Avon,
BP (oil and gas), Ecolab Incorporated
(specialty chemicals), Tandem
Financial Group and Donaldson, Lufkin
& Jenrette Securities Corporation;
former Governor at Large National
Association of Securities Dealers, Inc.
David H. Dievler, #+, 74 Independent Consultant. Until 100 None
P.O. Box 167 December 1994, Senior Vice
Spring Lake, NJ 07762 President of Alliance Capital
(10) Management Corporation
("ACMC") responsible for mutual
fund administration. Prior
to joining ACMC in 1984, Chief
Financial Officer of Eberstadt
Asset Management since 1968. Prior
to that, Senior Manager at Price
Waterhouse & Co. Member of the
American Institute of Certified
Public Accountants since 1953.
- --------------------------------------------------------------------------------
AllianceBernstein Municipal Income Fund II o 133
PORTFOLIOS
IN FUND OTHER
NAME, AGE OF PRINCIPAL COMPLEX DIRECTORSHIPS
TRUSTEE, ADDRESS OCCUPATION(S) OVERSEEN BY HELD BY
(YEARS OF SERVICE*) DURING PAST 5 YEARS TRUSTEE TRUSTEE
- -----------------------------------------------------------------------------------------------
DISINTERESTED TRUSTEES
(continued)
John H. Dobkin, #+, 61 Consultant. Formerly a President 98 None
P.O. Box 12 of Save Venice, Inc. (preservation
Annandale, NY 12504 organization) from 2001-2002,
(5) Senior Advisor from June 1999-
June 2000 and President of Historic
Hudson Valley (historic preservation)
from December 1989-May 1999.
Previously, Director of the National
Academy of Design and during 1988-1992,
Director and Chairman of the Audit
Committee of ACMC.
Clifford L. Michel, #+, 64 Senior Counsel of the law firm of 97 Placer Dome,
15 St. Bernard's Road Cahill Gordon & Reindel since Inc.
Gladstone, NJ 07934 February 2001 and a partner of
(10) that firm for more than twenty-five
years prior thereto. President and
Chief Executive Officer of Wenonah
Development Company (investments)
and a Director of Placer Dome, Inc.
(mining).
Donald J. Robinson, #+, 69 Senior Counsel to the law firm of 96 None
98 Hell's Peak Road Orrick, Herrington & Sutcliffe LLP
Weston, VT 05161 since prior to 1998. Formerly a
(7) senior partner and a member of the
Executive Committee of that firm.
He was also a member and Chairman
of the Municipal Securities
Rulemaking Board and a Trustee of the
Museum of the City of New York.
INTERESTED DIRECTOR
Marc O. Mayer++, 46 Executive Vice President of ACMC 68 None
1345 Avenue of the since 2001; prior thereto, Chief
Americas, Executive Officer of Sanford C.
New York, NY 10105 Bernstein & Co., LLC and its
(1 month) predecessor since prior to 1998.
* There is no stated term of office for the Fund's Trustees.
# Member of the Audit Committee.
+ Member of the Nominating Committee.
++ Mr. Mayer is an "interested trustee", as defined in the 1940 Act,
due to his position as Executive Vice President of ACMC.
- --------------------------------------------------------------------------------
134 o AllianceBernstein Municipal Income Fund II
Officer Information
Certain information concerning the Fund's Officers is listed below.
NAME, POSITION(S) PRINCIPAL OCCUPATION
ADDRESS* AND AGE HELD WITH FUND DURING PAST 5 YEARS**
- ---------------------------------------------------------------------------------------------
Marc O. Mayer, (46) President See biography above.
Kathleen A. Corbet, (43) Senior Vice President Executive Vice President of
Alliance Capital Management
Corporation ("ACMC")**, with
which she has been associated
since prior to 1998.
Guy Davidson, (42) Senior Vice President Senior Vice President of ACMC,**
with which he has been associated
since prior to 1998.
David M. Dowden, (38) Vice President Senior Vice President of ACMC,**
with which he has been associated
since prior to 1998.
Terrance T. Hults, (37) Vice President Vice President of ACMC,** with
which he has been associated since
prior to 1998.
William E. Oliver, (54) Vice President Senior Vice President of ACMC.**
with which he has been associated
since prior to 1998.
Mark D. Gersten, (53) Treasurer and Chief Senior Vice President of Alliance
Financial Officer Global Investor Services Inc.
("AGIS"),** and Vice President of
AllianceBernstein Investment Research
and Management, Inc. ("ABIRM")** with
which he has been associated since prior
to 1998.
Thomas R. Manley, (52) Controller Vice President of AGIS,** with which
he has been associated since prior
to 1998.
* The address for each of the Fund's Officers is 1345 Avenue of the Americas,
New York, NY 10105.
** ACMC, ABIRM, and AGIS are affiliates of the Fund. The Fund's Statement of
Additional Information ("SAI") has additional information about the Fund's
Trustees and Officers and is available without charge upon request. Contact
your financial representative or Alliance Capital at 1-800-227-4618 for a
free prospectus or SAI.
- --------------------------------------------------------------------------------
AllianceBernstein Municipal Income Fund II o 135
ALLIANCEBERNSTEIN FAMILY OF FUNDS
================================================================================
Wealth Strategies Funds
================================================================================
Balanced Wealth Strategy
Wealth Appreciation Strategy
Wealth Preservation Strategy
Tax-Managed Balanced Wealth Strategy*
Tax-Managed Wealth Appreciation Strategy
Tax-Managed Wealth Preservation Strategy**
================================================================================
Blended Style Series
================================================================================
U.S. Large Cap Portfolio
================================================================================
Growth Funds
================================================================================
Domestic
Growth Fund
Health Care Fund
Mid-Cap Growth Fund
Premier Growth Fund
Small Cap Growth Fund152
Technology Fund
Global & International
All-Asia Investment Fund
Global Small Cap Fund
Greater China '97 Fund
International Premier Growth Fund
New Europe Fund
Worldwide Privatization Fund
Select Investor Series
Biotechnology Portfolio
Premier Portfolio
Technology Portfolio
================================================================================
Value Funds
================================================================================
Domestic
Balanced Shares
Disciplined Value Fund
Growth & Income Fund
Real Estate Investment Fund
Small CapValue Fund
Utility Income Fund
Value Fund
Global & International
Global Value Fund
International Value Fund
================================================================================
Taxable Bond Funds
================================================================================
Americas Government Income Trust
Corporate Bond Portfolio
Emerging Market Debt Fund
Global Strategic Income Trust
High Yield Fund
Multi-Market Strategy Trust
Quality Bond Portfolio
Short Duration Portfolio
U.S. Government Portfolio
================================================================================
Municipal Bond Funds
================================================================================
National
Insured National
Arizona
California
Insured California
Florida
Massachusetts
Michigan
Minnesota
New Jersey
New York
Ohio
Pennsylvania
Virginia
================================================================================
Intermediate Municipal Bond Funds
================================================================================
Intermediate California
Intermediate Diversified
Intermediate New York
================================================================================
Closed-End Funds
================================================================================
All-Market Advantage Fund
ACM Income Fund
ACMGovernment Opportunity Fund
ACMManaged 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
We also offer Exchange Reserves,++ which serves as the money market fund
exchange vehicle for the AllianceBernstein mutual funds.
For more complete information on any AllianceBernstein mutual fund, including
investment objectives and policies, sales charges, expenses, risks and other
matters of importance to prospective investors, visit our web site at
www.alliancebernstein.com or call us at (800) 227-4618 for a current prospectus.
Please read the prospectus carefully before you invest or send money.
* Formerly Growth Investors Fund.
** Formerly Conservative Investors Fund.
+ Quasar Fund changed its name to Small Cap Growth Fund on 11/3/03.
++ An investment in the Fund is not a deposit in a bank and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other
government agency. Although the Fund seeks to preserve the value of your
investment at $1.00 per share, it is possible to lose money by investing in
the Fund.
- --------------------------------------------------------------------------------
136 o AllianceBernstein Municipal Income Fund II
ALLIANCEBERNSTEIN MUNICIPAL INCOME FUND II
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.
MUNIIIAR0903
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
David H. Dievler and William H. Foulk, Jr. 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 Municipal Income Fund II
By: /s/ Marc O. Mayer
-----------------------------------
Marc O. Mayer
President
Date: November 25, 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/ Marc O. Mayer
-----------------------------------
Marc O. Mayer
President
Date: November 25, 2003
By: /s/ Mark D. Gersten
-----------------------------------
Mark D. Gersten
Treasurer and Chief Financial Officer
Date: November 25, 2003