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: 811-2383
AllianceBernstein Bond Fund, Inc.
(Exact name of registrant as specified in charter)
1345 Avenue of the Americas, New York, New York 10105
(Address of principal executive offices) (Zip code)
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 Bond Fund
Corporate Bond Portfolio
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Corporate Fixed Income Annual Report--September 30, 2003
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Investment Products Offered
---------------------------
o Are Not FDIC Insured
o May Lose Value
o Are Not Bank Guaranteed
---------------------------
This shareholder report must be preceded or accompanied by the Fund's prospectus
for individuals who are not current shareholders of the Fund.
You may obtain a description of the Fund's proxy voting policies and procedures,
without charge, upon request by visiting Alliance Capital's web site at
www.investor.alliancecapital.com or on the Securities and Exchange 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 12, 2003
Annual Report
This report provides management's discussion of fund performance for
AllianceBernstein Bond Fund Corporate Bond Portfolio (the "Portfolio") for the
annual reporting period ended September 30, 2003.
Investment Objectives and Policies
The primary objective of this open-end fund is to maximize income over the
long-term, to the extent consistent with providing reasonable safety in the
value of each shareholder's investment. As a secondary objective, the Portfolio
seeks capital appreciation. To achieve its objectives, the Portfolio invests
primarily in corporate bonds. The Portfolio may also hold debt securities issued
by the U.S. and foreign governments. While the Portfolio invests primarily in
investment-grade debt securities (currently 65%), it may also invest a
significant amount of its assets in lower-rated debt securities.
Investment Results
The following table shows how the Portfolio performed over the past six- and
12-month periods ended September 30, 2003. For comparison, we have included the
Lehman Brothers (LB) Long BAA U.S. Credit Index, a measure of the performance of
a basket of unmanaged corporate debt securities. We have also included the
performance for the Lipper Corporate Debt BBB-Rated Funds Average (the "Lipper
Average"), the average performance of a group of corporate bond funds with
similar objectives to the Portfolio.
INVESTMENT RESULTS*
Periods Ended September 30, 2003
---------------------
Returns
---------------------
6 Months 12 Months
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AllianceBernstein Bond Fund Corporate Bond Portfolio
Class A 7.89% 21.12%
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Class B 7.45% 20.22%
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Class C 7.45% 20.22%
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Lehman Brothers Long BAA U.S. Credit Index 9.39% 20.88%
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Lipper Corporate Debt BBB-Rated Funds Average 4.49% 9.91%
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* The Portfolio's investment results are returns for the periods shown and
are based on the net asset value (NAV) of each class of 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 Portfolio
have been deducted, but no adjustment has been made for sales charges that
may apply when shares are purchased or redeemed. Returns for the Portfolio
include the reinvestment of any distributions paid during each period.
Past performance is no guarantee of future results.
The unmanaged Lehman Brothers (LB) Long BAA U.S. Credit Index is a measure
of corporate and non-corporate fixed income securities that are rated
investment grade (Baa by Moody's Investors Service or BBB by Standard &
Poor's) and
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ALLIANCEBERNSTEIN BOND FUND CORPORATE BOND PORTFOLIO o 1
have at least 10 years to final maturity. The unmanaged Lipper Corporate
Debt BBB-Rated Funds Average (the "Lipper Average") is based on the
performance of a universe of funds that invest at least 65% of their
assets in corporate or government debt issues rated in the top four
grades. For the six- and 12-month periods ended September 30, 2003, the
Lipper Average consisted of 184 and 175 funds, respectively. An investor
cannot invest directly in an index or an average, and its results are not
indicative of any specific investment, including AllianceBernstein Bond
Fund Corporate Bond Portfolio.
Additional investment results appear on page 6.
For the 12-month period ended September 30, 2003, the Portfolio's Class A shares
outperformed the benchmark, the LB Long BAA U.S. Credit Index, and significantly
outperformed the Lipper Average. The Portfolio's holdings of high yield debt
were the primary reason for the relative outperformance versus the investment
grade only indices. The high yield market significantly outperformed investment
grade corporates during the annual period, as high yield positions in the
Portfolio averaged between 20%-25%. Additionally, the Portfolio's overweight
position in investment grade cable/media, finance/banking and utilities
industries also contributed positively to performance. Another positive
contributor to performance was the Portfolio's holdings of long Russia paper,
held throughout most of the first half of the year. This credit outperformed
most investment grade and high yield issues.
For the six-month period ended September 30, 2003, the Portfolio modestly
underperformed the LB Long BAA U.S. Credit Index and outperformed the Lipper
Average. The Portfolio's underperformance relative to the benchmark is
attributable to its shorter duration strategy in the second quarter in an
environment of declining interest rates. The Portfolio's duration positioning
remains comparable to our estimates of the Lipper BBB universe.
Market Review and Investment Strategy
Increasing evidence of positive economic growth led to continued outperformance
for the credit sectors, particularly lower-rated debt. Reflecting the continued
improvement in corporate fundamentals year-to-date, the ratio of credit-rating
downgrades continued to fall, and spreads continued to narrow versus Treasuries.
Year-to-date, the corporate spread compressed 73 basis points from 184 to 111
against like duration Treasuries, according to the LB Corporate Index. Top
industry performers within the investment grade credit market for the annual
period included media/cable and telecommunications, while underperformers
included consumer non-cyclicals, such as tobacco, supermarkets and
food/beverage. Lower-rated BBB corporate securities, which returned 15.53%,
significantly outpaced higher A-rated corporates and AAA-rated corporates, which
returned 9.24% and 4.92%, respectively. Lower-rated credit has outperformed,
benefiting from greater sensitivity to improving credit fundamentals. As risk
aversion abated, the high yield sector rebounded strongly during the annual
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2 o ALLIANCEBERNSTEIN BOND FUND CORPORATE BOND PORTFOLIO
period, returning 23.10%, as measured by the Credit Suisse First Boston High
Yield Index. Similar to investment grade corporates, the telecommunication,
media, utility and technology sectors outperformed within the high yield market.
During the period under review, we increased the Portfolio's allocation to high
yield corporates in light of an improving economy, a decline in risk aversion
and improving fundamentals. We added to the Portfolio's auto and broadcast/media
sectors where we saw value. We also added a modest position of banking-sector
preferred stock as well as BBB-rated Yankee bonds. Additionally, we have
maintained an interest rate hedge using Treasury futures since the end of the
first quarter to keep the Portfolio's duration risk at a moderate level, in line
with our forecast. Duration now stands around 6.5 years, as opposed to 9.0 years
at year-end 2002.
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ALLIANCEBERNSTEIN BOND FUND CORPORATE BOND PORTFOLIO o 3
Performance Update
- --------------------------------------------------------------------------------
PERFORMANCE UPDATE
ALLIANCEBERNSTEIN BOND FUND CORPORATE BOND PORTFOLIO
GROWTH OF A $10,000 INVESTMENT
9/30/93 TO 9/30/03
AllianceBernstein Bond Fund Corporate Bond Portfolio Class A: $19,182
Lehman Brothers Long BAA U.S. Credit Index: $21,964
Lipper Corporate Debt BBB-Rated Funds Average: $18,722
[THE FOLLOWING TABLE WAS DEPICTED AS A MOUNTAIN CHART IN THE PRINTED MATERIAL.]
AllianceBernstein Bond Lehman Brothers Lipper Corporate
Fund Corporate Long BAA U.S. Debt BBB-Rated
Bond Portfolio Class A Credit Index Funds Average
- --------------------------------------------------------------------------------
9/30/93 $10,000 $10,000 $10,000
9/30/94 9,734 9,327 9,567
9/30/95 11,001 11,485 11,029
9/30/96 12,207 11,948 11,688
9/30/97 14,426 13,663 13,161
9/30/98 13,824 15,157 14,050
9/30/99 14,260 14,663 14,050
9/30/00 15,397 15,345 14,779
9/30/01 16,569 17,141 16,113
9/30/02 15,833 18,170 16,687
9/30/03 19,182 21,964 18,722
This chart illustrates the total value of an assumed $10,000 investment in
AllianceBernstein Bond Fund Corporate Bond Portfolio Class A shares (from
9/30/93 to 9/30/03) as compared to the performance of an appropriate broad-based
index and the Lipper Corporate Debt BBB-Rated Funds Average. Returns do not
reflect the deduction of taxes that a shareholder would pay on fund
distributions or the redemption of fund shares. The chart reflects the deduction
of the maximum 4.25% sales charge from the initial $10,000 investment in the
Portfolio and assumes the reinvestment of dividends and capital gains.
Performance for Class B and Class C shares will vary from the results shown
above due to differences in expenses charged to these classes. Past performance
is not indicative of future results, and is not representative of future gain or
loss in capital value or dividend income.
The unmanaged Lehman Brothers Long BAA U.S. Credit Index is a measure of
corporate and non-corporate fixed income securities that are rated investment
grade (Baa by Moody's Investors Service or BBB by Standard & Poor's) and have at
least 10 years to final maturity.
The unmanaged Lipper Corporate Debt BBB-Rated Funds Average reflects performance
of 23 funds (based on the number of funds in the average from 9/30/93 to
9/30/03). These funds have generally similar investment objectives to
AllianceBernstein Bond Fund Corporate Bond Portfolio, although the investment
policies of some funds included in the average may vary.
When comparing AllianceBernstein Bond Fund Corporate Bond Portfolio to the index
and average shown above, you should note that no charges or expenses are
reflected in the performance of the index. Lipper results include fees and
expenses. An investor cannot invest directly in an index or an average, and its
results are not indicative of any specific investment, including
AllianceBernstein Bond Fund Corporate Bond Portfolio.
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4 o ALLIANCEBERNSTEIN BOND FUND CORPORATE BOND PORTFOLIO
Portfolio Summary
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PORTFOLIO SUMMARY
September 30, 2003
INCEPTION DATES PORTFOLIO STATISTICS
Class A Shares Net Assets ($mil): $1,079.7
3/11/74
Class B Shares
1/8/93
Class C Shares
5/3/93
SECURITY TYPE
9.1% Preferred Stock
0.4% Yankee Bonds
CORPORATE
12.7% Public Utilities-Electric
& Gas
8.7% Broadcasting/Media
7.6% Automotive
6.2% Cable
6.1% Banking
5.8% Paper/Packaging [PIE CHART OMITTED]
5.0% Communications
4.9% Financial
3.9% Communications-Mobile
3.8% Petroleum Products
3.3% Insurance
2.7% Building/Real Estate
2.6% Energy
15.9% Other
1.3% Short-Term
All data as of September 30, 2003. The Portfolio's security type breakdown is
expressed as a percentage of total investments and may vary over time. "Other"
represents less than 2.5% weightings in Chemicals, Communications-Fixed,
Containers, Electronics, Entertainment & Leisure, Food/Beverage, Gaming, Health
Care, Hotel/Lodging, Industrial, Metals/Mining, Publishing, Retail, Services,
Technology and Supermarket/Drug.
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ALLIANCEBERNSTEIN BOND FUND CORPORATE BOND PORTFOLIO o 5
Investment Results
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INVESTMENT RESULTS
AVERAGE ANNUAL RETURNS AS OF SEPTEMBER 30, 2003
Class A Shares
- --------------------------------------------------------------------------------
Without Sales Charge With Sales Charge
1 Year 21.12% 15.97%
5 Years 6.77% 5.85%
10 Years 6.73% 6.27%
SEC Yield* 5.17%
Class B Shares
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Without Sales Charge With Sales Charge
1 Year 20.22% 17.22%
5 Years 5.99% 5.99%
10 Years(a) 6.31% 6.31%
SEC Yield* 4.69%
Class C Shares
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Without Sales Charge With Sales Charge
1 Year 20.22% 19.22%
5 Years 5.99% 5.99%
10 Years 5.99% 5.99%
SEC Yield* 4.70%
The Portfolio's investment results represent average annual returns. Returns do
not reflect the deduction of taxes that a shareholder would pay on fund
distributions or the redemption of fund shares. The returns reflect reinvestment
of dividends and/or capital gains distributions in additional shares without and
with the effect of the 4.25% maximum front-end sales charge for Class A or
applicable contingent deferred sales charge for Class B (3% year 1, 2% year 2,
1% year 3, 0% year 4); and for Class C shares (1% year 1). Returns for Class A
shares do not reflect the imposition of the 1 year, 1% contingent deferred sales
charge for accounts over $1,000,000.
The Portfolio invests a portion of its assets in foreign securities which may
magnify fluctuations, particularly in emerging markets. Price fluctuations may
also be caused by changes in interest rates or bond credit quality ratings.
These changes have a greater effect on bonds with longer maturities than on
those with shorter maturities.
Past performance does not guarantee future results. Investment return and
principal value will fluctuate so that an investor's shares, when redeemed, may
be worth more or less than their original costs.
* SEC Yields are based on SEC guidelines and are calculated on 30 days ended
September 30, 2003.
(a) Assumes conversion of Class B shares into Class A shares after six years.
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6 o ALLIANCEBERNSTEIN BOND FUND CORPORATE BOND PORTFOLIO
Portfolio of Investments
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PORTFOLIO OF INVESTMENTS
September 30, 2003
Principal
Amount
(000) U.S. $ Value
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CORPORATE DEBT OBLIGATIONS-95.3%
Automotive-8.1%
Dana Corp.
10.125%, 3/15/10 ............................... $ 2,769 $ 3,108,203
Ford Motor Co.
7.45%, 7/16/31 ................................. 25,000 23,120,000
Ford Motor Credit Co.
7.375%, 2/01/11 ................................ 10,000 10,533,330
7.875%, 6/15/10 ................................ 10,000 10,856,640
General Motors Acceptance Corp.
8.00%, 11/01/31 ................................ 15,000 15,451,380
General Motors Corp.
8.375%, 7/15/33 ................................ 17,500 18,349,537
TRW Automotive
9.375%, 2/15/13(a) ............................. 3,325 3,757,250
11.00%, 2/15/13(a) ............................. 1,655 1,936,350
------------
87,112,690
------------
Banking-6.5%
Great Western Financial Trust II
8.206%, 2/01/27 ................................ 24,456 28,108,064
Greenpoint Bank
9.25%, 10/01/10 ................................ 9,165 11,490,985
HVB Funding Trust III
9.00%, 10/22/31(a) ............................. 9,000 10,214,118
Mizuho JGB Investment
9.87%, 6/30/08(a) .............................. 10,000 10,787,990
UFJ Finance Aruba AEC (Aruba)
6.75%, 7/15/13 ................................. 9,000 9,445,851
------------
70,047,008
------------
Broadcasting/Media-9.3%
AOL Time Warner, Inc.
7.625%, 4/15/31 ................................ 5,000 5,704,475
British Sky Broadcasting Group Plc
6.875%, 2/23/09 ................................ 13,500 15,112,116
8.20%, 7/15/09 ................................. 10,090 11,988,353
Clear Channel Communications, Inc.
5.75%, 1/15/13 ................................. 3,500 3,722,166
News America Holdings
9.25%, 2/01/13 ................................. 5,000 6,552,490
News America, Inc.
7.30%, 4/30/28(b) .............................. 25,000 28,221,350
Sinclair Broadcast Group, Inc.
8.00%, 3/15/12 ................................. 4,525 4,796,500
Time Warner, Inc.
8.375%, 3/15/23(b) ............................. 20,000 24,804,640
------------
100,902,090
------------
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ALLIANCEBERNSTEIN BOND FUND CORPORATE BOND PORTFOLIO o 7
Portfolio of Investments
- --------------------------------------------------------------------------------
Principal
Amount
(000) U.S. $ Value
- --------------------------------------------------------------------------------
Building/Real Estate-2.9%
KB HOME
7.75%, 2/01/10 ................................. $ 2,775 $ 2,941,500
LNR Property Corp.
7.625%, 7/15/13(a) ............................. 2,910 3,011,850
M.D.C. Holdings, Inc.
5.50%, 5/15/13 ................................. 5,000 5,008,935
7.00%, 12/01/12 ................................ 5,365 5,907,117
NVR, Inc.
5.00%, 6/15/10 ................................. 10,000 9,600,000
Pulte Homes, Inc.
6.375%, 5/15/33 ................................ 5,000 4,813,230
------------
31,282,632
------------
Cable-6.6%
AT&T Broadband Corp.
9.455%, 11/15/22(b) ............................ 30,420 42,201,240
EchoStar DBS Corp.
5.75%, 10/01/08(a) ............................. 3,135 3,154,594
6.375%, 10/01/11(a) ............................ 1,865 1,874,325
9.375%, 2/01/09 ................................ 11,785 12,624,681
Insight Midwest LP
9.75%, 10/01/09 ................................ 2,000 2,025,000
Rogers Cable, Inc. (Canada)
6.25%, 6/15/13 ................................. 9,085 9,119,069
------------
70,998,909
------------
Chemicals-1.2%
FMC Corp.
10.25%, 11/01/09 ............................... 3,470 3,973,150
Huntsman International LLC
9.875%, 3/01/09 ................................ 6,000 6,330,000
Resolution Performance Products
13.50%, 11/15/10 ............................... 2,524 2,271,600
------------
12,574,750
------------
Communications-5.4%
AT&T Corp.
8.50%, 11/15/31 ................................ 2,000 2,376,218
Koninklijke KPN NV (Netherlands)
8.00%, 10/01/10 ................................ 15,000 18,160,575
Sprint Capital Corp.
6.875%, 11/15/28 ............................... 4,445 4,349,970
8.75%, 3/15/32(b) .............................. 23,000 27,425,315
TCI Communications Financing III
9.65%, 3/31/27 ................................. 5,000 5,931,250
------------
58,243,328
------------
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8 o ALLIANCEBERNSTEIN BOND FUND CORPORATE BOND PORTFOLIO
Portfolio of Investments
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Principal
Amount
(000) U.S. $ Value
- --------------------------------------------------------------------------------
Communications-Fixed-0.1%
Eircom Funding (Ireland)
8.25%, 8/15/13(a) .............................. $ 1,340 $ 1,447,200
------------
Communications-Mobile-4.1%
AT&T Wireless Services, Inc.
7.875%, 3/01/11 ................................ 5,000 5,830,295
8.125%, 5/01/12 ................................ 11,500 13,680,389
Nextel Communications, Inc.
9.375%, 11/15/09 ............................... 12,285 13,390,650
9.95%, 2/15/08 ................................. 11,050 11,671,562
------------
44,572,896
------------
Containers-1.9%
Crown European Holdings, SA (France)
9.50%, 3/01/11(a) .............................. 5,225 5,643,000
Greif Bros. Corp. Cl.A
8.875%, 8/01/12 ................................ 3,800 4,132,500
Sealed Air Corp.
6.875%, 7/15/33(a) ............................. 10,000 10,268,500
------------
20,044,000
------------
Electronics-0.2%
L-3 Communications Corp.
6.125%, 7/15/13 ................................ 2,000 1,990,000
------------
Energy-2.8%
Devon Energy Corp.
7.95%, 4/15/32 ................................. 10,000 12,398,800
Hilcorp Energy
10.50%, 9/01/10(a) ............................. 2,000 2,135,000
Kerr-McGee Corp.
7.875%, 9/15/31 ................................ 5,000 5,891,375
Valero Energy Corp.
7.50%, 4/15/32 ................................. 9,000 10,053,324
------------
30,478,499
------------
Entertainment & Leisure-1.1%
Six Flags, Inc.
9.50%, 2/01/09 ................................. 6,125 5,864,688
Universal City Development Partners
11.75%, 4/01/10(a) ............................. 5,055 5,712,150
------------
11,576,838
------------
Financial-5.2%
Brascan Corp. (Canada)
7.375%, 3/01/33 ................................ 4,500 5,073,120
Cendant Corp.
7.375%, 1/15/13 ................................ 10,000 11,552,530
JSG Funding Plc (Ireland)
9.625%, 10/01/12 ............................... 2,605 2,865,500
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ALLIANCEBERNSTEIN BOND FUND CORPORATE BOND PORTFOLIO o 9
Portfolio of Investments
- --------------------------------------------------------------------------------
Principal
Amount
(000) U.S. $ Value
- --------------------------------------------------------------------------------
MBNA America Bank
7.125%, 11/15/12 ............................... $ 5,000 $ 5,744,780
Ohio National Financial Services, Inc.
6.35%, 4/01/13(a) .............................. 5,000 5,229,905
Safeco Capital Trust I
8.072%, 7/15/37 ................................ 13,000 15,161,991
Transamerica Capital II
7.65%, 12/01/26(a) ............................. 10,000 11,036,630
------------
56,664,456
------------
Food/Beverage-1.2%
Dole Food Co., Inc.
8.875%, 3/15/11 ................................ 2,170 2,321,900
Swift & Co. .
10.125%, 10/01/09 .............................. 3,500 3,885,000
Tyson Foods, Inc.
7.00%, 1/15/28 ................................. 6,465 6,683,284
------------
12,890,184
------------
Gaming-0.4%
Park Place Entertainment Corp.
9.375%, 2/15/07 ................................ 3,500 3,876,250
------------
Healthcare-1.7%
Concentra Operating Corp.
13.00%, 8/15/09 ................................ 2,390 2,664,850
HCA, Inc.
6.25%, 2/15/13 ................................. 4,000 4,063,348
6.30%, 10/01/12 ................................ 5,000 5,104,815
6.75%, 7/15/13 ................................. 6,000 6,313,026
------------
18,146,039
------------
Hotel/Lodging-1.0%
Corrections Corp. of America
9.875%, 5/01/09 ................................ 1,155 1,302,263
Extended Stay America, Inc.
9.875%, 6/15/11 ................................ 6,250 6,929,687
Intrawest Corp.
9.75%, 8/15/08 ................................. 2,600 2,746,250
------------
10,978,200
------------
Industrial-1.9%
CRH America, Inc.
6.40%, 10/15/33 ................................ 6,000 6,233,496
Flowserve Corp.
12.25%, 8/15/10 ................................ 1,173 1,360,680
SPX Corp.
7.50%, 1/01/13 ................................. 2,345 2,479,837
Tyco International Group, SA (Luxembourg)
6.375%, 10/15/11 ............................... 10,000 10,362,500
------------
20,436,513
------------
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10 o ALLIANCEBERNSTEIN BOND FUND CORPORATE BOND PORTFOLIO
Portfolio of Investments
- --------------------------------------------------------------------------------
Principal
Amount
(000) U.S. $ Value
- --------------------------------------------------------------------------------
Insurance-3.5%
Crum & Forster
10.375%, 6/15/13(a) ............................ $ 1,935 $ 2,113,988
Mangrove Bay PassThru Trust
6.102%, 7/15/33(a) ............................. 10,000 9,942,100
Nationwide Mutual Insurance Co.
7.875%, 4/01/33(a) ............................. 5,000 5,754,875
8.25%, 12/01/31(a) ............................. 5,000 5,978,795
Zurich Capital Trust I
8.376%, 6/01/37(a) ............................. 12,500 14,373,937
------------
38,163,695
------------
Metals / Mining-0.5%
Inco, Ltd. (Canada)
7.20%, 9/15/32 ................................. 5,000 5,478,090
------------
Paper/Packaging-6.2%
Abitibi-Consolidated, Inc. (Canada)
8.85%, 8/01/30 ................................. 7,000 7,326,928
Anchor Glass Container Corp.
11.00%, 2/15/13 ................................ 2,510 2,823,750
Berry Plastics Corp.
10.75%, 7/15/12 ................................ 3,925 4,396,000
Georgia-Pacific Corp.
9.375%, 2/01/13 ................................ 2,500 2,803,125
Norske Skogindustrier ASA (Norway)
7.625%, 10/15/11(a) ............................ 10,000 11,254,120
Owens-Brockway Glass Container
8.25%, 5/15/13 ................................. 2,000 2,050,000
8.875%, 2/15/09 ................................ 7,660 8,196,200
Packaging Corp. of America
5.75%, 8/01/13(a) .............................. 7,000 7,122,710
Plastipak Holdings, Inc.
10.75%, 9/01/11 ................................ 1,961 2,157,100
Pliant Corp.
13.00%, 6/01/10 ................................ 1,980 1,851,300
Smurfit-Stone Container Corp.
8.25%, 10/01/12 ................................ 4,205 4,415,250
Stone Container Corp.
9.75%, 2/01/11 ................................. 1,625 1,779,375
Weyerhaeuser Co.
6.875%, 12/15/33 ............................... 10,000 10,609,250
------------
66,785,108
------------
Petroleum Products-4.1%
Amerada Hess Corp.
7.875%, 10/01/29 ............................... 10,000 11,417,100
CITGO Petroleum Corp.
11.375%, 2/01/11(a) ............................ 5,000 5,675,000
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ALLIANCEBERNSTEIN BOND FUND CORPORATE BOND PORTFOLIO o 11
Portfolio of Investments
- --------------------------------------------------------------------------------
Principal
Amount
(000) U.S. $ Value
- --------------------------------------------------------------------------------
Pemex Project Funding Master Trust
7.375%, 12/15/14(a)(b) ......................... $ 10,000 $ 10,800,000
8.625%, 2/01/22(a)(b) .......................... 10,000 11,200,000
PF Export Receivables Master Trust
Series A
6.436%, 6/01/15(a) ............................. 4,873 4,849,728
------------
43,941,828
------------
Public Utilities-Electric & Gas-13.6%
American Electric Power Co., Inc.
Series C
5.375%, 3/15/10 ................................ 5,000 5,255,585
Calenergy Co., Inc.
8.48%, 9/15/28 ................................. 30,000 38,139,000
CenterPoint Energy Resources Corp.
7.875%, 4/01/13(a) ............................. 29,935 33,687,322
Consumers Energy Co.
6.00%, 2/15/14(a) .............................. 9,000 9,384,858
Dominion Resources Capital Trust III
8.40%, 1/15/31 ................................. 29,000 35,529,263
FirstEnergy Corp.
7.375%, 11/15/31 ............................... 11,455 11,768,409
FirstEnergy Corp. Series A
5.50%, 11/15/06 ................................ 1,570 1,632,879
Oncor Electric Delivery Co.
7.00%, 9/01/22 ................................. 5,000 5,491,605
PG&E Corp.
6.875%, 7/15/08(a) ............................. 1,335 1,408,425
SEMCO Energy, Inc.
7.125%, 5/15/08(a) ............................. 415 419,150
7.75%, 5/15/13(a) .............................. 1,585 1,604,813
The AES Corp.
8.75%, 5/15/13(a) .............................. 955 1,007,525
9.00%, 5/15/15(a) .............................. 1,565 1,662,812
------------
146,991,646
------------
Publishing-0.7%
Dex Media East LLC
9.875%, 11/15/09 ............................... 4,000 4,550,000
Dex Media West LLC
8.50%, 8/15/10(a) .............................. 585 639,113
9.875%, 8/15/13(a) ............................. 2,305 2,616,175
------------
7,805,288
------------
Retail-1.7%
Sears Roebuck Acceptance Corp.
7.00%, 6/01/32 ................................. 9,500 10,463,889
Toys "R" Us, Inc.
7.875%, 4/15/13 ................................ 7,500 8,215,635
------------
18,679,524
------------
- --------------------------------------------------------------------------------
12 o ALLIANCEBERNSTEIN BOND FUND CORPORATE BOND PORTFOLIO
Portfolio of Investments
- --------------------------------------------------------------------------------
Shares or
Principal
Amount
(000) U.S. $ Value
- --------------------------------------------------------------------------------
Services-1.6%
Allied Waste North America, Inc.
10.00%, 8/01/09 ................................. $ 6,500 $ 7,076,875
Iron Mountain, Inc.
8.625%, 4/01/13 ................................. 5,000 5,350,000
Service Corp.
6.00%, 12/15/05 ................................. 2,500 2,525,000
7.70%, 4/15/09 .................................. 2,500 2,568,750
--------------
17,520,625
--------------
Supermarket/Drug-1.1%
Delhaize America, Inc.
9.00%, 4/15/31 .................................. 10,555 11,795,212
--------------
Technology-0.7%
Flextronics International, Ltd. (Singapore)
6.50%, 5/15/13(a) ............................... 5,000 4,987,500
ON Semiconductor Corp.
12.00%, 3/15/10 ................................. 2,500 2,943,750
--------------
7,931,250
--------------
Total Corporate Debt Obligations
(cost $946,987,677) ............................. 1,029,354,748
--------------
PREFERRED STOCKS-9.7%
Banking-3.8%
BNY Capital V
Series F ........................................ 400,000 10,024,000
Equity Residential
Series N ........................................ 200,000 4,893,760
Lehman Brothers Holdings, Inc.
Series F ........................................ 400,000 10,540,000
Wachovia Corp.
Series A ........................................ 200,000 5,537,500
Wells Fargo Capital Trust VII ...................... 399,500 10,299,629
--------------
41,294,889
--------------
Communications-3.2%
Centaur Funding Corp. (Cayman Island)
Series B(a) ..................................... 28,280 34,172,704
--------------
Financial-1.3%
Household Finance Corp. ............................ 545,000 14,388,000
--------------
Public Utilities-Electric & Gas-1.4%
Southern California Edison Co. ..................... 155,000 15,180,312
--------------
Total Preferred Stocks
(cost $97,839,314) .............................. 105,035,905
--------------
- --------------------------------------------------------------------------------
ALLIANCEBERNSTEIN BOND FUND CORPORATE BOND PORTFOLIO o 13
Portfolio of Investments
- --------------------------------------------------------------------------------
Shares or
Principal
Amount
(000) U.S. $ Value
- --------------------------------------------------------------------------------
YANKEE BOND-0.5%
TPSA Finance BV (Netherlands)
7.75%, 12/10/08(a)
(cost $4,893,750) ....................... $ 4,500 $ 5,085,000
---------------
SHORT-TERM INVESTMENTS-1.4%
Time Deposit-0.9%
State Street Euro Dollar
0.50%, 10/01/03 ......................... 9,600 9,600,000
---------------
U.S. Treasury Bill-0.5%
U.S. Treasury Bill
Zero coupon, 10/16/03(c) ................ 5,000 4,998,167
---------------
Total Short-Term Investments
(amortized cost $14,598,167) ............ 14,598,167
---------------
Total Investments Before Security
Lending Collateral-106.9%
(cost $1,064,318,908) ................... 1,154,073,820
---------------
INVESTMENT OF CASH COLLATERAL
FOR SECURITIES LOANED*-12.5%
Short-Term Investments
CC USA Prime
1.06%, 6/14/04 .......................... 25,000 24,998,750
Federal Home Loan Bank
1.40%, 1/24/05 .......................... 15,000 15,000,000
Federal Home Loan Mortgage Corp.
1.14%, 8/10/04 .......................... 25,000 25,000,000
Federal National Mortgage Association
2.00%, 12/09/04 ......................... 12,300 12,392,113
General Electric
5.375%, 4/23/04 ......................... 2,714 2,837,447
Gatham
1.13%, 10/23/03 ......................... 16,102 16,087,343
KFW International Finance
7.625%, 2/15/04 ......................... 9,500 10,161,370
---------------
106,477,023
---------------
UBS Private Money Market Fund, LLC
1.03% ................................... 28,617,201 28,617,201
---------------
Total Investments of Cash Collateral for
Securities Loaned
(cost $135,094,224) ..................... 135,094,224
---------------
Total Investments-119.4%
(cost $1,199,413,132) ................... 1,289,168,044
Other assets less liabilities-(19.4%) ...... (209,485,229)
---------------
Net Assets-100% ............................ $ 1,079,682,815
===============
- --------------------------------------------------------------------------------
14 o ALLIANCEBERNSTEIN BOND FUND CORPORATE BOND PORTFOLIO
Portfolio of Investments
- --------------------------------------------------------------------------------
FINANCIAL FUTURES CONTRACTS SOLD (see Note D)
Value at
Number of Expiration Original September 30, Unrealized
Type Contracts Month Value 2003 Depreciation
================= ============= ============= ============= ============= =============
U.S. Treasury
Note 5 Yr Futures 3,138 December 2003 $ 346,979,327 $ 355,763,063 $ (8,783,736)
REVERSE REPURCHASE AGREEMENTS (see Note D)
Broker Interest Rate Maturity Amount
=================== ============= ========== =============
Deutsche Alex Brown 1.15% 10/27/03 $30,314,434
Deutsche Bank 1.30% 10/07/03 10,991,791
Deutsche Bank 1.30% 12/31/03 11,674,074
Morgan Stanley 1.41% 10/07/03 25,894,414
-----------
$78,874,713
===========
* See Note E for securities lending information.
(a) Security is exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At September 30,
2003, the aggregate market value of these securities amounted to
$261,949,512 or 24.3% of net assets.
(b) Positions, or portions thereof, with an aggregate market value of
$92,439,949 have been segregated to collateralize reverse repurchase
agreements.
(c) Position with a market value of $4,998,167 has been segregated to
collateralize margin requirements for the open futures contracts.
See notes to financial statements.
- --------------------------------------------------------------------------------
ALLIANCEBERNSTEIN BOND FUND CORPORATE BOND PORTFOLIO o 15
Statement of Assets & Liabilities
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS & LIABILITIES
September 30, 2003
Assets
Investments in securities, at value
(cost $1,199,413,132)--including investment of
cash collateral for securities loaned of $135,094,224 ............... $ 1,289,168,044(a)
Cash ................................................................... 1,540,360
Interest receivable .................................................... 20,213,419
Receivable for investment securities sold .............................. 6,514,985
Receivable for capital stock sold ...................................... 5,396,024
---------------
Total assets ........................................................... 1,322,832,832
---------------
Liabilities
Payable for collateral on securities loaned ............................ 135,094,224
Payable for reverse repurchase agreements .............................. 78,874,713
Payable for investment securities purchased ............................ 14,819,110
Payable for capital stock redeemed ..................................... 8,535,253
Payable for variation margin on futures contracts ...................... 2,688,750
Dividends payable ...................................................... 1,561,140
Distribution fee payable ............................................... 573,530
Advisory fee payable ................................................... 490,364
Accrued expenses ....................................................... 512,933
---------------
Total liabilities ...................................................... 243,150,017
---------------
Net Assets ............................................................. $ 1,079,682,815
===============
Composition of Net Assets
Capital stock, at par .................................................. $ 90,238
Additional paid-in capital ............................................. 1,357,124,708
Distributions in excess of net investment income ....................... (2,349,426)
Accumulated net realized loss on investment
transactions ........................................................ (356,153,881)
Net unrealized appreciation of investments ............................. 80,971,176
---------------
$ 1,079,682,815
---------------
Calculation of Maximum Offering Price
Class A Shares
Net asset value and redemption price per share
($535,317,666/44,723,144 shares of capital stock
issued and outstanding) ............................................. $11.97
Sales charge--4.25% of public offering price .......................... .53
------
Maximum offering price ................................................. $12.50
======
Class B Shares
Net asset value and offering price per share
($383,762,853/32,091,526 shares of capital stock
issued and outstanding) ............................................. $11.96
======
Class C Shares
Net asset value and offering price per share
($157,719,189/13,182,634 shares of capital stock
issued and outstanding) ............................................. $11.96
======
Advisor Class Shares
Net asset value, redemption and offering price per share
($2,883,107/240,704 shares of capital stock
issued and outstanding) ............................................. $11.98
======
(a) Includes securities on loan with a value of $130,856,571 (see Note E).
See notes to financial statements.
- --------------------------------------------------------------------------------
16 o ALLIANCEBERNSTEIN BOND FUND CORPORATE BOND PORTFOLIO
Statement of Operations
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
July 1, 2003
to Year Ended
September 30, June 30,
2003* 2003
============= =============
Investment Income
Interest .................................... $ 18,826,092 $ 85,957,808
Dividends ................................... 1,366,004 3,583,948
------------- -------------
20,192,096 89,541,756
Expenses
Advisory fee ................................ 1,524,079 6,127,526
Distribution fee--Class A ................... 400,436 1,554,225
Distribution fee--Class B ................... 991,759 4,195,104
Distribution fee--Class C ................... 400,277 1,619,502
Transfer agency ............................. 534,159 2,090,187
Printing .................................... 89,844 414,642
Custodian ................................... 72,804 258,504
Audit and legal ............................. 47,140 72,429
Administrative .............................. 31,250 125,000
Registration fees ........................... 28,026 89,002
Directors' fees ............................. 4,428 19,728
Miscellaneous ............................... 5,642 64,085
------------- -------------
Total expenses before interest .............. 4,129,844 16,629,934
Interest expense ............................ 146,424 327,763
------------- -------------
Total expenses .............................. 4,276,268 16,957,697
Less: expense offset arrangement
(see Note B) ............................. (55) (1,897)
------------- -------------
Net expenses ................................ 4,276,213 16,955,800
------------- -------------
Net investment income ....................... 15,915,883 72,585,956
------------- -------------
Realized and Unrealized Gain (Loss)
on Investment Transactions
Net realized gain (loss) on:
Investment transactions .................. 11,742,824 (38,974,852)
Futures .................................. 13,086,684 (12,430,731)
Net change in unrealized
appreciation/depreciation of:
Investments .............................. (22,266,754) 179,649,612
Futures .................................. (9,526,583) 742,847
------------- -------------
Net gain (loss) on investment
transactions ............................. (6,963,829) 128,986,876
------------- -------------
Net Increase in Net Assets
from Operations .......................... $ 8,952,054 $ 201,572,832
============= =============
* The Portfolio changed its fiscal year end from June 30 to September 30.
See notes to financial statements.
- --------------------------------------------------------------------------------
ALLIANCEBERNSTEIN BOND FUND CORPORATE BOND PORTFOLIO o 17
Statement of Changes in Net Assets
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
July 1, 2003
to Year Ended Year Ended
September 30, June 30, June 30,
2003* 2003 2002
=============== =============== ===============
Increase (Decrease) in Net Assets
from Operations
Net investment income ................ $ 15,915,883 $ 72,585,956 $ 94,617,332
Net realized gain (loss) on investment
transactions ....................... 24,829,508 (51,405,583) (115,606,822)
Net change in unrealized
appreciation/depreciation
of investments ..................... (31,793,337) 180,392,459 (54,000,835)
--------------- --------------- ---------------
Net increase (decrease) in net assets
from operations .................... 8,952,054 201,572,832 (74,990,325)
Dividends and Distributions to
Shareholders from
Net investment income
Class A ............................ (8,307,900) (35,897,785) (43,343,570)
Class B ............................ (5,467,237) (26,405,194) (37,442,989)
Class C ............................ (2,207,358) (10,193,042) (13,830,773)
Advisor Class ...................... (40,918) (69,827) -0-
Distributions in excess of
net investment income
Class A ............................ -0- -0- (277,384)
Class B ............................ -0- -0- (239,622)
Class C ............................ -0- -0- (88,514)
Advisor Class ...................... -0- -0- -0-
Tax return of capital
Class A ............................ -0- (1,251,077) (1,954,848)
Class B ............................ -0- (920,250) (1,688,725)
Class C ............................ -0- (355,239) (623,785)
Advisor Class ...................... -0- (2,434) -0-
Capital Stock Transactions
Net increase (decrease) .............. (57,741,250) (140,779,501) 107,857,059
--------------- --------------- ---------------
Total decrease ....................... (64,812,609) (14,301,517) (66,623,476)
Net Assets
Beginning of period .................. 1,144,495,424 1,158,796,941 1,225,420,417
--------------- --------------- ---------------
End of period ........................ $ 1,079,682,815 $ 1,144,495,424 $ 1,158,796,941
=============== =============== ===============
* The Portfolio changed its fiscal year end from June 30 to September 30.
See notes to financial statements.
- --------------------------------------------------------------------------------
18 o ALLIANCEBERNSTEIN BOND FUND CORPORATE BOND PORTFOLIO
Notes to Financial Statements
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
September 30, 2003
NOTE A
Significant Accounting Policies
AllianceBernstein Bond Fund, Inc. (the "Fund") is registered under the
Investment Company Act of 1940 as a diversified, open-end management investment
company. The Fund, which is a Maryland corporation, operates as a series company
currently comprised of three portfolios: the Corporate Bond Portfolio, the
Quality Bond Portfolio and the U.S. Government Portfolio. Each series is
considered to be a separate entity for financial reporting and tax purposes.
This report relates only to the Corporate Bond Portfolio. The Corporate Bond
Portfolio (the "Portfolio") offers Class A, Class B, Class C and Advisor Class
shares. Class A shares are sold with a front-end sales charge of up to 4.25% for
purchases not exceeding $1,000,000. With respect to purchases of $1,000,000 or
more, Class A shares redeemed within one year of purchase may be subject to a
contingent deferred sales charge of 1%. Class B shares are currently sold with a
contingent deferred sales charge which declines from 3% to zero depending on the
period of time the shares are held. Class B shares will automatically convert to
Class A shares six years after the end of the calendar month of purchase. Class
C shares are subject to a contingent deferred sales charge of 1% on redemptions
made within the first year after purchase. Advisor Class shares are sold without
an initial or contingent deferred sales charge and are not subject to ongoing
distribution expenses. Advisor Class shares are offered to investors
participating in fee-based programs and certain retirement plan accounts. All
four classes of shares have identical voting, dividend, liquidation and other
rights, except that each class bears different distribution expenses and has
exclusive voting rights with respect to its distribution plan. The financial
statements have been prepared in conformity with accounting principles generally
accepted in the United States which require management to make certain estimates
and assumptions that affect the reported amounts of assets and liabilities in
the financial statements and amounts of income and expenses during the reporting
period. Actual results could differ from those estimates. Additional information
about some of the items discussed in these Notes to Financial Statements is
contained in the Fund's Statement of Additional Information, which is available
upon request. The following is a summary of significant accounting policies
followed by the Portfolio.
1. Security Valuation
In accordance with Pricing Policies adopted by the Board of Directors of the
Fund (the "Pricing Policies") and applicable law, portfolio securities are
valued at current market value or at fair value. The Board of Directors has
delegated to the Adviser, subject to the Board's continuing oversight, certain
responsibilities with respect to the implementation of the Pricing Policies.
Pursuant to the Pricing Policies, securities for which market quotations are
readily available are valued at their current market value. In general, the
market value of these securities is determined as follows:
- --------------------------------------------------------------------------------
ALLIANCEBERNSTEIN BOND FUND CORPORATE BOND PORTFOLIO o 19
Notes to Financial Statements
- --------------------------------------------------------------------------------
Securities listed on a national securities exchange or on a foreign securities
exchange are valued at the last sale price at the close of the exchange or
foreign securities exchange. If there has been no sale on such day, the
securities are valued at the mean of the closing bid and asked prices on such
day. If no bid or asked prices are quoted on such day, then the security is
valued in good faith at fair value in accordance with the Pricing Policies.
Securities listed on more than one exchange are valued by reference to the
principal exchange on which the securities are traded; securities not listed on
an exchange but traded on The Nasdaq Stock Market, Inc. ("NASDAQ") are valued in
accordance with the NASDAQ Official Closing Price; listed put or call options
are valued at the last sale price. If there has been no sale on that day, such
securities will be valued at the closing bid prices on that day; open futures
contracts and options thereon are valued using the closing settlement price or,
in the absence of such a price, the most recent quoted bid price. If there are
no quotations available for the day of valuations, the last available closing
settlement price is used; securities traded in the over-the-counter market, (but
excluding securities traded on NASDAQ) are valued at the mean of the current bid
and asked prices as reported by the National Quotation Bureau or other
comparable sources; U.S. Government securities and other debt instruments having
60 days or less remaining until maturity are valued at amortized cost if their
original maturity was 60 days or less, or by amortizing their fair value as of
the 61st day prior to maturity if their original term to maturity exceeded 60
days; fixed-income securities, including mortgage backed and asset backed
securities, may be valued on the basis of prices provided by a pricing service
or at a price obtained from one or more of the major broker/dealers. In cases
where broker/dealer quotes are obtained, the Pricing Policies provide that the
Adviser may establish procedures whereby changes in market yields or spreads are
used to adjust, on a daily basis, a recently obtained quoted price on a
security; and OTC and other derivatives are valued on the basis of a quoted bid
price or spread from a major broker/dealer in such security. Securities for
which market quotations are not readily available are valued at fair value in
accordance with the Pricing Policies.
2. Taxes
It is the policy of the 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
shareholders. Therefore, no provisions for federal income or excise taxes are
required.
3. Investment Income and Investment Transactions
Dividend income is recorded on the ex-dividend date. Interest income is accrued
daily. Investment transactions are accounted for on the trade date securities
are purchased or sold. Investment gains and losses are determined on the
identified cost basis. The Portfolio accretes discounts as adjustments to
interest income. Additionally, the Portfolio amortizes premiums on debt
securities for financial statement reporting purposes.
4. Income and Expenses
All income earned and expenses incurred by the Portfolio are borne on a pro-rata
basis by each settled class of shares, based on proportionate interest in the
Portfolio
- --------------------------------------------------------------------------------
20 o ALLIANCEBERNSTEIN BOND FUND CORPORATE BOND PORTFOLIO
Notes to Financial Statements
- --------------------------------------------------------------------------------
represented by the net assets of such class, except that the Portfolio's Class B
and Class C shares bear higher distribution and transfer agent fees than Class A
and Advisor Class shares. Advisor Class shares have no distribution fees.
5. Dividends and Distributions
Dividends and distributions to shareholders are recorded on the ex-dividend
date. Income dividends and capital gains distributions are determined in
accordance with federal tax regulations and may differ from those determined in
accordance with accounting principles generally accepted in the United States.
To the extent these differences are permanent, such amounts are reclassified
within the capital accounts based on their federal tax basis treatment;
temporary differences do not require such reclassification.
6. Change of Fiscal Year End
The Portfolio changed its fiscal year end from June 30 to September 30.
Accordingly, the statement of operations, the statement of changes in net assets
and financial highlights reflect the period from July 1, 2003 to September 30,
2003.
NOTE B
Advisory Fee and Other Transactions with Affiliates
Under the terms of an investment advisory agreement, the Portfolio pays Alliance
Capital Management L.P. (the "Adviser"), an advisory fee at an annual rate of
..625 of 1% of the first $500 million and .50 of 1% in excess of $500 million of
the Portfolio's average daily net assets. The fee is accrued daily and paid
monthly.
Pursuant to the advisory agreement, the Portfolio paid $31,250 and $125,000 to
the Adviser representing the cost of certain legal and accounting services
provided to the Portfolio by the Adviser, respectively, for the period ended
September 30, 2003 and the year ended June 30, 2003.
The Portfolio compensates Alliance Global Investor Services, Inc. (AGIS), a
wholly-owned subsidiary of the Adviser, under a Transfer Agency Agreement for
providing personnel and facilities to perform transfer agency services for the
Portfolio. Such compensation amounted to $311,288 and $1,366,013, respectively,
for the period ended September 30, 2003 and the year ended June 30, 2003.
For the period ended September 30, 2003 and the year ended June 30, 2003, the
Portfolio's expenses were reduced by $55 and $1,897, respectively, under an
expense offset arrangement with AGIS.
AllianceBernstein Investment Research and Management, Inc. (the "Distributor"),
a wholly-owned subsidiary of the Adviser, serves as the distributor of the
Portfolio's shares. The Distributor has advised the Portfolio that it has
retained front-end sales charges of $8,003 and $29,192 from the sales of Class A
shares and received $3,000 and $9,048, $148,768 and $598,146, and $5,678 and
$46,997, respectively, in contingent deferred sales charges imposed upon
redemptions by shareholders of Class A, Class B and Class C shares,
respectively, for the period ended September 30, 2003 and the year ended June
30, 2003.
- --------------------------------------------------------------------------------
ALLIANCEBERNSTEIN BOND FUND CORPORATE BOND PORTFOLIO o 21
Notes to Financial Statements
- --------------------------------------------------------------------------------
NOTE C
Distribution Services Agreement
The Portfolio has adopted a Distribution Services Agreement (the "Agreement")
pursuant to Rule 12b-1 under the Investment Company Act of 1940. Under the
Agreement, the Portfolio pays distribution and servicing fees to the Distributor
at an annual rate of up to .30 of 1% of the Portfolio's average daily net assets
attributable to Class A shares and 1% of the average daily net assets
attributable to both Class B and Class C shares. There are no distribution and
servicing fees on the Advisor Class shares. The fees are accrued daily and paid
monthly. The Agreement provides that the Distributor will use such payments in
their entirety for distribution assistance and promotional activities. The
Distributor has advised the Portfolio that it has incurred expenses in excess of
the distribution costs reimbursed by the Portfolio in the amount of $13,736,574
and $5,123,120 for Class B and Class C shares, respectively. Such costs may be
recovered from the Portfolio in future periods so long as the Agreement is in
effect. In accordance with the Agreement, there is no provision for recovery of
unreimbursed distribution costs incurred by the Distributor beyond the current
fiscal year for Class A shares. The Agreement also provides that the Adviser may
use its own resources to finance the distribution of the Portfolio's shares.
NOTE D
Investment Transactions
Purchases and sales of investment securities (excluding short-term investments)
for the period ended September 30, 2003, were as follows:
Purchases Sales
============ ============
Investment securities (excluding
U.S. government securities) ........... $280,068,739 $288,049,773
U.S. government securities ............... 442,384,592 441,404,072
The cost of investments for federal income tax purposes, gross unrealized
appreciation and unrealized depreciation (excluding futures transactions) are as
follows:
Cost ................................................ $ 1,201,047,576
---------------
Gross unrealized appreciation ....................... $ 91,645,174
Gross unrealized depreciation ....................... (3,524,706)
---------------
Net unrealized appreciation ......................... $ 88,120,468
===============
1. Financial Futures Contracts
The Portfolio may buy or sell financial futures contracts for the purpose of
hedging its portfolio against adverse effects of anticipated movements in the
market. The Portfolio bears the market risk that arises from changes in the
value of these financial instruments and the imperfect correlation between
movements in the price of the futures contracts and movements in the price of
the securities hedged or used for cover.
- --------------------------------------------------------------------------------
22 o ALLIANCEBERNSTEIN BOND FUND CORPORATE BOND PORTFOLIO
Notes to Financial Statements
- --------------------------------------------------------------------------------
At the time the Portfolio enters into a futures contract, the Portfolio deposits
and maintains as collateral an initial margin as required by the exchange on
which the transaction is affected. Pursuant to the contract, the Portfolio
agrees to receive from or pay to the broker an amount of cash equal to the daily
fluctuation in the value of the contract. Such receipts or payments are known as
variation margin and are recorded by the Portfolio as unrealized gains or
losses. Risks may arise from the potential inability of a counterparty to meet
the terms of the contract. When the contract is closed, the Portfolio records a
realized gain or loss equal to the difference between the value of the contract
at the time it was opened and the time it was closed.
2. Option Transactions
For hedging and investment purposes, the Portfolio may purchase and write (sell)
put and call options on U.S. and foreign government securities and foreign
currencies that are traded on U.S. and foreign securities exchanges and
over-the-counter markets.
The risk associated with purchasing an option is that the Portfolio pays a
premium whether or not the option is exercised. Additionally, the Portfolio
bears the risk of loss of premium and change in market value should the
counterparty not perform under the contract. Put and call options purchased are
accounted for in the same manner as portfolio securities. The cost of securities
acquired through the exercise of call options is increased by premiums paid. The
proceeds from securities sold through the exercise of put options are decreased
by the premiums paid.
When the Portfolio writes an option, the premium received by the Portfolio is
recorded as a liability and is subsequently adjusted to the current market value
of the option written. Premiums received from writing options which expire
unexercised are recorded by the Portfolio on the expiration date as realized
gains from options written. The difference between the premium received and the
amount paid on effecting a closing purchase transaction, including brokerage
commissions, is also treated as a realized gain, or if the premium received is
less than the amount paid for the closing purchase transaction, as a realized
loss. If a call option is exercised, the premium received is added to the
proceeds from the sale of the underlying security or currency in determining
whether the Portfolio has realized a gain or loss. If a put option is exercised,
the premium received reduces the cost basis of the security or currency
purchased by the Portfolio. In writing an option, the Portfolio bears the market
risk of an unfavorable change in the price of the security or currency
underlying the written option. Exercise of an option written by the Portfolio
could result in the Portfolio selling or buying a security or currency at a
price different from the current market value.
3. Swap Agreements
The Portfolio may enter into swaps on sovereign debt obligations to protect
itself from interest rate fluctuations on the underlying debt instruments and
for invest-
- --------------------------------------------------------------------------------
ALLIANCEBERNSTEIN BOND FUND CORPORATE BOND PORTFOLIO o 23
Notes to Financial Statements
- --------------------------------------------------------------------------------
ment 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 Portfolio, and/or the termination value at the end of the
contract. Therefore, the Portfolio considers the creditworthiness of each
counterparty to a swap contract in evaluating potential credit risk.
Additionally, risks may arise from unanticipated movements in interest rates or
in the value of the underlying securities.
The Portfolio records a net receivable or payable on a daily basis for the net
interest income or expense expected to be received or paid during 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 change
in unrealized appreciation/depreciation of investments. Realized gains and
losses from terminated swap contracts are included in net realized gain or loss
on investment transactions.
4. Reverse Repurchase Agreements
Under a reverse repurchase agreement, the Portfolio sells securities and agrees
to repurchase them at a mutually agreed upon date and price. At the time the
Portfolio enters into a reverse repurchase agreement, it will establish a
segregated account with the custodian containing liquid assets having a value at
least equal to the repurchase price.
For the period ended September 30, 2003, the average amount of reverse
repurchase agreements outstanding was $48,269,197 and the daily weighted average
annualized interest rate was 1.10%.
NOTE E
Securities Lending
The Portfolio has entered into a securities lending agreement with AG Edwards &
Sons, Inc., (the "Lending Agent"). Under the terms of the agreement, the Lending
Agent, on behalf of the Portfolio, administers the lending of portfolio
securities to certain broker-dealers. In return, the Portfolio receives fee
income from the lending transactions or it retains a portion of interest on the
investment of any cash received as collateral. The Portfolio also continues to
receive dividends or interest on the securities loaned. Unrealized gain or loss
on the value of the securities loaned that may occur during the term of the loan
will be reflected
- --------------------------------------------------------------------------------
24 o ALLIANCEBERNSTEIN BOND FUND CORPORATE BOND PORTFOLIO
Notes to Financial Statements
- --------------------------------------------------------------------------------
in the accounts of the Portfolio. All loans are continuously secured by
collateral exceeding the value of the securities loaned. All collateral consists
of either cash or U.S. government securities. The Lending Agent may invest the
cash collateral received in accordance with the investment restrictions of the
Portfolio in one or more of the following investments: U.S. government or U.S.
government agency obligations, bank obligations, corporate debt obligations,
asset-backed securities, investment funds, structured products, repurchase
agreements and an eligible money market fund. The Lending Agent will indemnify
the Portfolio for any loss resulting from a borrower's failure to return a
loaned security when due. For the period ended September 30, 2003, the Portfolio
had loaned securities with a value of $130,856,571 and received cash collateral
of $135,094,224 which was invested in short-term securities as included in the
accompanying portfolio of investments. For the period ended September 30, 2003
and the year ended June 30, 2003, the Portfolio earned fee income of $146,424
and $252,967, respectively, which is included in interest income in the
accompanying statement of operations.
NOTE F
Capital Stock
There are 12,000,000,000 shares of $.001 par value capital stock authorized,
divided into four classes, designated Class A, Class B, Class C and Advisor
Class shares. Each class consists of 3,000,000,000 authorized shares.
Transactions in capital stock were as follows:
-------------------------------------------------
Shares
-------------------------------------------------
July 1, 2003 to Year Ended Year Ended
September 30, June 30, June 30,
2003(a) 2003 2002
------------------------------------------------
Class A
Shares sold 2,299,751 14,552,214 17,526,462
- -------------------------------------------------------------------------------------
Shares issued in reinvestment of
dividends and distributions 463,442 2,138,633 2,351,837
- -------------------------------------------------------------------------------------
Shares converted from Class B 1,013,392 5,513,902 2,816,769
- -------------------------------------------------------------------------------------
Shares redeemed (5,282,724) (24,652,867) (17,165,859)
- -------------------------------------------------------------------------------------
Net increase (decrease) (1,506,139) (2,448,118) 5,529,209
=====================================================================================
Class B
Shares sold 1,125,168 6,602,364 14,019,337
- -------------------------------------------------------------------------------------
Shares issued in reinvestment of
dividends and distributions 272,119 1,355,293 1,812,162
- -------------------------------------------------------------------------------------
Shares converted to Class A (1,012,515) (5,511,083) (2,817,044)
- -------------------------------------------------------------------------------------
Shares redeemed (3,089,416) (10,500,542) (11,640,615)
- -------------------------------------------------------------------------------------
Net increase (decrease) (2,704,644) (8,053,968) 1,373,840
=====================================================================================
(a) The Portfolio changed its fiscal year end from June 30 to September 30.
- --------------------------------------------------------------------------------
ALLIANCEBERNSTEIN BOND FUND CORPORATE BOND PORTFOLIO o 25
Notes to Financial Statements
- --------------------------------------------------------------------------------
-------------------------------------------------
Shares
-------------------------------------------------
July 1, 2003 to Year Ended Year Ended
September 30, June 30, June 30,
2003(a) 2003 2002
- -------------------------------------------------------------------------------------
Class C
Shares sold 610,572 3,130,196 6,102,894
- -------------------------------------------------------------------------------------
Shares issued in reinvestment of
dividends and distributions 98,457 476,779 671,626
- -------------------------------------------------------------------------------------
Shares redeemed (1,512,151) (6,386,613) (5,056,101)
- -------------------------------------------------------------------------------------
Net increase (decrease) (803,122) (2,779,638) 1,718,419
=====================================================================================
July 1, 2003 to August 8, 2002(b)
September 30, to June 30,
2003(a) 2003
------------------------------------
Advisor Class
Shares sold 54,241 424,628
- ------------------------------------------------------------------------
Shares issued in reinvestment of
dividends and distributions 3,354 5,258
- ------------------------------------------------------------------------
Shares redeemed (7,816) (238,961)
- ------------------------------------------------------------------------
Net increase 49,779 190,925
========================================================================
(a) The Portfolio changed its fiscal year end from June 30 to September 30.
(b) Commencement of distributions.
----------------------------------------------------
Amount
----------------------------------------------------
July 1, 2003 to Year Ended Year Ended
September 30, June 30, June 30,
2003(a) 2003 2002
- ------------------------------------------------------------------------------------------
Class A
Shares sold $ 26,935,735 $ 185,571,781 $ 211,137,765
- ------------------------------------------------------------------------------------------
Shares issued in reinvestment of
dividend and distributions 5,434,050 23,617,128 28,093,903
- ------------------------------------------------------------------------------------------
Shares converted from Class B 11,838,281 36,289,286 33,551,898
- ------------------------------------------------------------------------------------------
Shares redeemed (61,727,603) (271,702,238) (205,172,093)
- ------------------------------------------------------------------------------------------
Net increase (decrease) $ (17,519,537) $ (26,224,043) $ 67,611,473
==========================================================================================
Class B
Shares sold $ 13,146,628 $ 73,365,336 $ 169,590,699
- ------------------------------------------------------------------------------------------
Shares issued in reinvestment of
dividends and distributions 3,188,136 14,932,280 21,677,353
- ------------------------------------------------------------------------------------------
Shares converted to Class A (11,838,281) (36,289,286) (33,551,898)
- ------------------------------------------------------------------------------------------
Shares redeemed (35,980,527) (139,384,003) (138,718,474)
- ------------------------------------------------------------------------------------------
Net increase (decrease) $ (31,484,044) $ (87,375,673) $ 18,997,680
==========================================================================================
(a) The Portfolio changed its fiscal year end from June 30 to September 30.
- --------------------------------------------------------------------------------
26 o ALLIANCEBERNSTEIN BOND FUND CORPORATE BOND PORTFOLIO
Notes to Financial Statements
- --------------------------------------------------------------------------------
----------------------------------------------------
Amount
----------------------------------------------------
July 1, 2003 to Year Ended Year Ended
September 30, June 30, June 30,
2003(a) 2003 2002
- ------------------------------------------------------------------------------------------
Class C
Shares sold $ 7,136,477 $ 34,950,768 $ 73,519,678
- ------------------------------------------------------------------------------------------
Shares issued in reinvestment of
dividends and distributions 1,154,551 5,255,130 8,042,057
- ------------------------------------------------------------------------------------------
Shares redeemed (17,610,706) (69,528,339) (60,313,829)
- ------------------------------------------------------------------------------------------
Net increase (decrease) $ (9,319,678) $ (29,322,441) $ 21,247,906
==========================================================================================
July 1, 2003 to August 8, 2002(b)
September 30, to June 30,
2003(a) 2003
- --------------------------------------------------------------------------
Advisor Class
Shares sold $ 634,690 $ 4,825,230
- --------------------------------------------------------------------------
Shares issued in reinvestment of
dividends and distributions 39,366 60,857
- --------------------------------------------------------------------------
Shares redeemed (92,047) (2,743,431)
- --------------------------------------------------------------------------
Net increase $ 582,009 $ 2,142,656
==========================================================================
(a) The Portfolio changed its fiscal year end from June 30 to September 30.
(b) Commencement of distributions.
NOTE G
Joint Credit Facility
A number of open-end mutual funds managed by the Adviser, including the
Portfolio, participate in a $500 million revolving credit facility (the
"Facility") to provide short-term financing if necessary, in connection with
abnormal redemption activity. Commitment fees related to the Facility are paid
by the participating funds and are included in the miscellaneous expenses in the
statement of operations. The Portfolio did not utilize the Facility during the
period ended September 30, 2003.
NOTE H
Concentration of Risk
Investing in securities of foreign companies and foreign governments involves
special risks which include the possibility of future political and economic
developments which could adversely affect the value of such securities.
Moreover, securities of many foreign companies and foreign governments and their
markets may be less liquid and their prices more volatile than those of
comparable U.S. companies and the United States Government.
- --------------------------------------------------------------------------------
ALLIANCEBERNSTEIN BOND FUND CORPORATE BOND PORTFOLIO o 27
Notes to Financial Statements
- --------------------------------------------------------------------------------
NOTE I
Distributions to Shareholders
The tax character of distributions paid during the fiscal period ended September
30, 2003, and the fiscal years ended June 30, 2003 and June 30, 2002 were as
follows:
September 30, June 30, June 30,
2003 2003 2002
============= ============= =============
Distributions paid from:
Ordinary income ................ $ 16,023,413 $ 72,565,848 $ 94,986,020
------------- ------------- -------------
Total taxable distributions .... 16,023,413 72,565,848 94,986,020
Tax return of capital .......... -0- 2,529,000 4,267,358
------------- ------------- -------------
Total distributions paid .......... $ 16,023,413 $ 75,094,848 $ 99,253,378(a)
------------- ------------- -------------
As of September 30, 2003, the components of accumulated earnings/(deficit) on a
tax basis were as follows:
Undistributed ordinary income ........................... $ 307,806
Accumulated capital and other losses .................... (364,399,265)
Unrealized appreciation/(depreciation) .................. 88,120,468
-------------
Total accumulated earnings/(deficit) .................... $(275,970,991)
=============
(a) Total distributions paid differ from the statement of changes in net
assets because for tax purposes dividends are recognized when actually
paid.
(b) On September 30, 2003, the Fund had a net capital loss carryforward of
$364,399,265 of which $123,146,537 expires in the year 2007, $54,554,000
expires in the year 2008, $52,066,319 expires in the year 2009, and
$134,632,409 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 Fund utilized capital loss
carryforwards of $14,835,029.
(c) The differences between book-basis and tax-basis unrealized
appreciation/(depreciation) are attributable primarily to the tax deferral
of losses on wash sales, the difference between book and tax amortization
methods for premium and the realization for tax purposes of gains/losses
on certain derivative instruments.
During the current fiscal year, permanent differences, primarily due to the tax
treatment of bond premium, resulted in a net decrease in distributions in excess
of net investment income and an increase in accumulated net realized loss on
investment transactions. This reclassification had no effect on net assets.
NOTE J
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
- --------------------------------------------------------------------------------
28 o ALLIANCEBERNSTEIN BOND FUND CORPORATE BOND PORTFOLIO
Notes to Financial Statements
- --------------------------------------------------------------------------------
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 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
- --------------------------------------------------------------------------------
ALLIANCEBERNSTEIN BOND FUND CORPORATE BOND PORTFOLIO o 29
Notes to Financial Statements
- --------------------------------------------------------------------------------
have an adverse effect on the investment performance of the
AllianceBernstein Mutual Funds.
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.
- --------------------------------------------------------------------------------
30 o ALLIANCEBERNSTEIN BOND FUND CORPORATE BOND PORTFOLIO
Financial Highlights
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
--------------------------------------------------------------------------------
Class A
--------------------------------------------------------------------------------
July 1, 2003
to Year Ended June 30,
September 30, ------------------------------------------------------------
2003(a) 2003 2002(b) 2001 2000 1999
--------------------------------------------------------------------------------
Net asset value,
beginning of period ......... $ 12.03 $ 10.70 $ 12.29 $ 11.91 $ 12.49 $ 14.19
--------------------------------------------------------------------------------
Income From Investment
Operations
Net investment income(c) ...... .18 .77 .94 .97 1.04 1.06
Net realized and unrealized
gain (loss) on investment
transactions ................ (.06) 1.35 (1.55) .42 (.55) (1.64)
--------------------------------------------------------------------------------
Net increase (decrease) in net
asset value from
operations .................. .12 2.12 (.61) 1.39 .49 (.58)
--------------------------------------------------------------------------------
Less: Dividends and
Distributions
Dividends from net
investment income ........... (.18) (.76) (.94) (.97) (1.04) (1.07)
Distributions in excess of
net investment income ....... -0- -0- -0- (.01) -0- (.01)
Tax return of capital ......... -0- (.03) (.04) (.03) (.03) (.04)
--------------------------------------------------------------------------------
Total dividends and
distributions ............... (.18) (.79) (.98) (1.01) (1.07) (1.12)
--------------------------------------------------------------------------------
Net asset value,
end of period ............... $ 11.97 $ 12.03 $ 10.70 $ 12.29 $ 11.91 $ 12.49
================================================================================
Total Return
Total investment return based
on net asset value(d) ....... 1.06% 20.75% (5.51)% 12.03% 4.11% (4.08)%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted) ............. $ 535,318 $555,979 $520,984 $530,446 $473,578 $476,141
Ratio to average net assets of:
Expenses .................... 1.20%(e) 1.16% 1.12% 1.31% 1.12% 1.11%
Expenses, excluding
interest expense .......... 1.15%(e) 1.13% 1.09% 1.09% 1.11% 1.11%
Net investment income ....... 6.18%(e) 6.96% 7.79% 7.95% 8.51% 8.13%
Portfolio turnover rate ....... 65% 171% 276% 340% 302% 281%
See footnote summary on page 34.
- --------------------------------------------------------------------------------
ALLIANCEBERNSTEIN BOND FUND CORPORATE BOND PORTFOLIO o 31
Financial Highlights
- --------------------------------------------------------------------------------
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
----------------------------------------------------------------------------------
Class B
----------------------------------------------------------------------------------
July 1, 2003
to Year Ended June 30,
September 30, --------------------------------------------------------------
2003(a) 2003 2002(b) 2001 2000 1999
----------------------------------------------------------------------------------
Net asset value,
beginning of period ......... $ 12.02 $ 10.70 $ 12.30 $ 11.92 $ 12.49 $ 14.19
----------------------------------------------------------------------------------
Income From Investment
Operations
Net investment income(c) ...... .16 .69 .85 .88 .95 .97
Net realized and unrealized
gain (loss) on investment
transactions ................ (.06) 1.35 (1.55) .42 (.54) (1.64)
----------------------------------------------------------------------------------
Net increase (decrease) in net
asset value from operations . .10 2.04 (.70) 1.30 .41 (.67)
----------------------------------------------------------------------------------
Less: Dividends and
Distributions
Dividends from net
investment income ........... (.16) (.70) (.85) (.88) (.95) (.98)
Distributions in excess of
net investment income ....... -0- -0- (.01) (.01) -0- (.01)
Tax return of capital ......... -0- (.02) (.04) (.03) (.03) (.04)
----------------------------------------------------------------------------------
Total dividends and
distributions ............... (.16) (.72) (.90) (.92) (.98) (1.03)
----------------------------------------------------------------------------------
Net asset value, end of period $ 11.96 $ 12.02 $ 10.70 $ 12.30 $ 11.92 $ 12.49
==================================================================================
Total Return
Total investment return based
on net asset value(d) ...... .88% 19.85% (6.23)% 11.24% 3.39% (4.77)%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted) ............. $ 383,763 $418,095 $458,394 $509,953 $477,259 $630,631
Ratio to average net assets of:
Expenses .................... 1.92%(e) 1.88% 1.83% 2.03% 1.83% 1.82%
Expenses, excluding
interest expense .......... 1.87%(e) 1.85% 1.80% 1.81% 1.83% 1.82%
Net investment income ....... 5.48%(e) 6.27% 7.05% 7.18% 7.77% 7.41%
Portfolio turnover rate ....... 65% 171% 276% 340% 302% 281%
See footnote summary on page 34.
- --------------------------------------------------------------------------------
32 o ALLIANCEBERNSTEIN BOND FUND CORPORATE BOND PORTFOLIO
Financial Highlights
- --------------------------------------------------------------------------------
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
--------------------------------------------------------------------------------
Class C
--------------------------------------------------------------------------------
July 1, 2003
to Year Ended June 30,
September 30, ------------------------------------------------------------
2003(a) 2003 2002(b) 2001 2000 1999
--------------------------------------------------------------------------------
Net asset value,
beginning of period ......... $ 12.02 $ 10.70 $ 12.30 $ 11.91 $ 12.49 $ 14.19
--------------------------------------------------------------------------------
Income From Investment
Operations
Net investment income(c) ...... .16 .69 .85 .89 .94 .97
Net realized and unrealized
gain (loss) on investment
transactions ................ (.06) 1.35 (1.55) .42 (.54) (1.64)
--------------------------------------------------------------------------------
Net increase (decrease) in net
asset value from operations . .10 2.04 (.70) 1.31 .40 (.67)
--------------------------------------------------------------------------------
Less: Dividends and
Distributions
Dividends from net
investment income ........... (.16) (.70) (.85) (.89) (.95) (.98)
Distributions in excess of
net investment income ....... -0- -0- (.01) -0- -0- (.01)
Tax return of capital ......... -0- (.02) (.04) (.03) (.03) (.04)
--------------------------------------------------------------------------------
Total dividends and
distributions ............... (.16) (.72) (.90) (.92) (.98) (1.03)
--------------------------------------------------------------------------------
Net asset value, end of period $ 11.96 $ 12.02 $ 10.70 $ 12.30 $ 11.91 $ 12.49
================================================================================
Total Return
Total investment return based
on net asset value(d) ...... .88% 19.85% (6.23)% 11.33% 3.30% (4.77)%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted) ............. $ 157,719 $168,123 $179,418 $185,022 $176,814 $204,271
Ratio to average net assets of:
Expenses .................... 1.91%(e) 1.87% 1.82% 2.03% 1.83% 1.81%
Expenses, excluding
interest expense .......... 1.86%(e) 1.84% 1.79% 1.81% 1.82% 1.81%
Net investment income ....... 5.49%(e) 6.28% 7.07% 7.22% 7.75% 7.37%
Portfolio turnover rate ....... 65% 171% 276% 340% 302% 281%
See footnote summary on page 34.
- --------------------------------------------------------------------------------
ALLIANCEBERNSTEIN BOND FUND CORPORATE BOND PORTFOLIO o 33
Financial Highlights
- --------------------------------------------------------------------------------
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
----------------------------
Advisor Class
----------------------------
July 1, 2003 August 8,
to, 2002(f) to
September 30, June 30,
2003(a) 2003
----------------------------
Net asset value, beginning of period ............................. $ 12.03 $ 10.21
----------------------------
Income From Investment Operations
Net investment income(c) ......................................... .19 .69
Net realized and unrealized gain (loss) on investment transactions (.05) 1.85
----------------------------
Net increase in net asset value from operations .................. .14 2.54
----------------------------
Less: Dividends and Distributions
Dividends from net investment income ............................. (.19) (.70)
Tax return of capital ............................................ -0- (.02)
----------------------------
Total dividends and distributions ................................ (.19) (.72)
----------------------------
Net asset value, end of period ................................... $ 11.98 $ 12.03
============================
Total Return
Total investment return based on net asset value(d) ............. 1.22% 25.70%
Ratios/Supplemental Data
Net assets, end of period (000's omitted) ........................ $ 2,883 $ 2,298
Ratio to average net assets of:
Expenses(e) .................................................... .91% .88%
Expenses, excluding interest expense(e) ........................ .86% .85%
Net investment income(e) ....................................... 6.51% 6.90%
Portfolio turnover rate .......................................... 65% 171%
(a) The Portfolio changed its fiscal year end from June 30 to September 30.
(b) As required, effective July 1, 2001, the Portfolio has adopted the
provisions of the AICPA Audit and Accounting Guide, Audits of Investment
Companies, and began amortizing premium on debt securities for financial
statement reporting purposes only. The effect of this change for the year
ended June 30, 2002, was to decrease net investment income per share and
net realized and unrealized loss on investments per share by less than
$.01 for Class A, Class B and Class C, respectively, and decrease the
ratio of net investment income to average net assets from 7.82% to 7.79%
for Class A, from 7.08% to 7.05% for Class B and from 7.10% to 7.07% for
Class C. Per share, ratios and supplemental data for periods prior to July
1, 2001 have not been restated to reflect this change in presentation.
(c) Based on average shares outstanding.
(d) Total investment return is calculated assuming an initial investment is
made at the net asset value at the beginning of the period, reinvestment
of all dividends and distributions at net asset value during the period,
and redemption on the last day of the period. Initial sales charges or
contingent deferred sales charges are not reflected in the calculation of
total investment return. Total investment return does not reflect the
deduction of taxes that a shareholder would pay on Portfolio distributions
or the redemption of Portfolio shares. Total investment return calculated
for a period of less than one year is not annualized.
(e) Annualized.
(f) Commencement of distribution.
- --------------------------------------------------------------------------------
34 o ALLIANCEBERNSTEIN BOND FUND CORPORATE BOND PORTFOLIO
Report of Ernst & Young LLP, Independent Auditors
- --------------------------------------------------------------------------------
REPORT OF ERNST & YOUNG LLP
INDEPENDENT AUDITORS
To the Shareholders and Board of
Directors of AllianceBernstein
Bond Fund, Inc.
Corporate Bond Portfolio
We have audited the accompanying statement of assets and liabilities, including
the portfolio of investments, of the Corporate Bond Portfolio (the "Portfolio")
(one of the portfolios constituting the AllianceBernstein Bond Fund, Inc.) as of
September 30, 2003, and the related statement of operations for the period from
July 1, 2003 to September 30, 2003 and for the year ended June 30, 2003, the
statement of changes in net assets for the period from July 1, 2003 to September
30, 2003 and for each of the two years in the period ended June 30, 2003 and the
financial highlights for the period from July 1, 2003 to September 30, 2003 and
for each of the five years in the period ended June 30, 2003. These financial
statements and financial highlights are the responsibility of the Portfolio's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights. Our procedures included
confirmation of securities owned as of September 30, 2003, by correspondence
with the custodian and others. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Corporate Bond Portfolio of the AllianceBernstein Bond Fund, Inc. at September
30, 2003, the results of its operations for the period from July 1, 2003 to
September 30, 2003 and for the year ended June 30, 2003, the changes in its net
assets for the period from July 1, 2003 to September 30, 2003 and for each of
the two years in the period ended June 30, 2003 and the financial highlights for
the period from July 1, 2003 to September 30, 2003 and for each of the five
years in the period ended June 30, 2003, in conformity with accounting
principles generally accepted in the United States.
/s/ Ernst & Young LLP
New York, New York
November 14, 2003
- --------------------------------------------------------------------------------
ALLIANCEBERNSTEIN BOND FUND CORPORATE BOND PORTFOLIO o 35
Tax Information
- --------------------------------------------------------------------------------
TAX INFORMATION
(unaudited)
For the fiscal year ended September 30, 2003 certain dividends paid by the
Portfolio may be subject to a maximum tax rate of 15%, as provided for by the
Jobs and Growth Tax Relief Reconciliation Act of 2003. The Portfolio designates
a maximum amount of $1,366,004 as qualified dividend income, which is taxed at a
maximum rate of 15%. The information and distributions reported herein may
differ from the information and distributions taxable to the shareholders for
the calendar year ending December 31, 2003. Complete information will be
computed and reported in conjunction with your 2003 Form 1099-DIV.
- --------------------------------------------------------------------------------
36 o ALLIANCEBERNSTEIN BOND FUND CORPORATE BOND PORTFOLIO
Board of Directors
- --------------------------------------------------------------------------------
BOARD OF DIRECTORS
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
Matthew D.W. Bloom, Vice President
Paul J. DeNoon, Vice President
S. Sean Kelleher, Vice President
Jeffrey S. Phlegar, Vice President
Lawrence J. Shaw(2), Vice President
Michael A. Snyder(2), Vice President
Mark D. Gersten, Treasurer & Chief Financial Officer
Vincent S. Noto, Controller
Custodian
State Street Bank & Trust Company
225 Franklin Street
Boston, MA 02110
Principal Underwriter
AllianceBernstein Investment
Research and Management, Inc.
1345 Avenue of the Americas
New York, NY 10105
Transfer Agent
Alliance Global Investor Services, Inc.
P.O. Box 786003
San Antonio, TX 78278-6003
Toll-Free (800) 221-5672
Independent Auditors
Ernst & Young LLP
5 Times Square
New York, NY 10036
Legal Counsel
Seward & Kissel LLP
One Battery Park Plaza
New York, NY 10004
(1) Member of the Audit Committee.
(2) Messrs. Shaw and Snyder are the persons primarily responsible for the
day-to-day management of the Portfolio's investment portfolio.
- --------------------------------------------------------------------------------
ALLIANCEBERNSTEIN BOND FUND CORPORATE BOND PORTFOLIO o 37
Management of the Fund
- --------------------------------------------------------------------------------
MANAGEMENT OF THE FUND
Board of Directors Information
The business and affairs of the Fund are managed under the direction of the
Board of Directors. Certain information concerning the Fund's Directors is set
forth below.
PORTFOLIOS
IN FUND OTHER
NAME, AGE OF DIRECTOR, PRINCIPAL COMPLEX DIRECTORSHIP
ADDRESS OCCUPATION(S) OVERSEEN BY HELD BY
(YEARS OF SERVICE*) DURING PAST 5 YEARS DIRECTOR DIRECTOR
- ---------------------------------------------------------------------------------------------------------
DISINTERESTED DIRECTORS
William H. Foulk, Jr.,#+, 71 Investment Adviser and an 113 None
2 Sound View Drive independent consultant. He was
Suite 100 formerly 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. He was 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,#+, 73 Formerly Executive Vice President 96 None
500 SE Mizner Blvd and Chief Insurance Officer of The
Boca Raton, FL 33432 Equitable Life Assurance Society
(15) 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, he was Senior
Spring Lake, NJ 07762 Vice President of Alliance Capital
(15) Management Corporation ("ACMC")
responsible for mutual fund administration.
Prior to joining ACMC in 1984, he was
Chief Financial Officer of Eberstadt
Asset Management since 1968.
Prior to that, he was Senior Manager
at Price Waterhouse & Co. Member
of American Institute of Certified
Public Accountants since 1953.
John Dobkin, #+, 61 Consultant. Formerly President 98 None
P.O. Box 12 of Save Venice, Inc. from 2001-
Annandale, NY 12504 2002, Senior Advisor from June
(5) 1999 - June 2000 and President
of Historic Hudson Valley (historic
preservation) from December 1989-
May 1999. Previously, Director
of the National Academy of Design.
During 1988-92, he was Director
and Chairman of the Audit Committee
of ACMC.
- --------------------------------------------------------------------------------
38 o ALLIANCEBERNSTEIN BOND FUND CORPORATE BOND PORTFOLIO
Management of the Fund
- --------------------------------------------------------------------------------
PORTFOLIOS
IN FUND OTHER
NAME, AGE OF DIRECTOR, PRINCIPAL COMPLEX DIRECTORSHIP
ADDRESS OCCUPATION(S) OVERSEEN BY HELD BY
(YEARS OF SERVICE*) DURING PAST 5 YEARS DIRECTOR DIRECTOR
- ---------------------------------------------------------------------------------------------------------
DISINTERESTED DIRECTORS
(continued)
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
(15) that firm for more than twenty-five
years prior thereto. He is President
and Chief Executive Officer of Wenonah
Development Company (investments)
and a Director of the Placer Dome,
Inc. (mining).
Donald J. Robinson,#+, 69 Senior Counsel to the law firm of 96 None
98 Hell's Peak Road Orrick, Herrington & Sutcliffe LLP
Weston, VT 05161 since prior to 1998. Formerly a senior
(6) 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 Americas since 2001; prior thereto, Chief
New York, NY 10105 Executive Officer of Sanford C.
(1 month) Bernstein & Co., LLC and its
predecessor since prior to 1998.
* There is no stated term of office for the Fund's directors.
# Member of the Audit Committee.
+ Member of the Nominating Committee.
++ Mr. Mayer is an "interested director", as defined in the 1940 Act, due to
his position as Executive Vice President of ACMC.
- --------------------------------------------------------------------------------
ALLIANCEBERNSTEIN BOND FUND CORPORATE BOND PORTFOLIO o 39
Management of the Fund
- --------------------------------------------------------------------------------
Officer Information
Certain information concerning the Fund's Officers is set forth below.
PRINCIPAL
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.
Matthew D.W. Bloom, 47 Vice President Senior Vice President ACMC**, with
which he has been associated since
prior to 1998.
Paul J. DeNoon, 41 Vice President Senior Vice President of ACMC**, with
which he has been associated since
prior to 1998.
S. Sean Kelleher, 42 Vice President Senior Vice President of ACMC** since
1999; prior thereto worked in fixed
income research at Merrill Lynch since
prior to 1998.
Jeffrey S. Phlegar, 37 Vice President Vice President of ACMC**, with which
he has been associated since prior to
1998.
Lawrence J. Shaw, 52 Vice President Senior Vice President of ACMC, **with
which he has been associated since
prior to 1998.
Michael A. Snyder, 41 Vice President Senior Vice President of ACMC** since
May, 2001. Previously he was a
Managing Director in the high yield
asset management group at
Donaldson, Lufkin & Jenrette
Corporation from 1998 to 2001, and a
Managing Director at Bear Stearns &
Co. from 1997 to 1998. Prior thereto,
he was a Senior Vice President at
Prudential Capital since prior to 1998.
- --------------------------------------------------------------------------------
40 o ALLIANCEBERNSTEIN BOND FUND CORPORATE BOND PORTFOLIO
Management of the Fund
- --------------------------------------------------------------------------------
PRINCIPAL
NAME, POSITION(S) PRINCIPAL OCCUPATION
ADDRESS*, AND AGE HELD WITH FUND DURING PAST 5 YEARS
- -------------------------------------------------------------------------------------------------------
Mark D. Gersten, 53 Treasurer and Chief Senior Vice President of Alliance Global
Financial Officer 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.
Vincent S. Noto, 39 Controller Vice President of AGIS**, with which he
has been associated since prior to
1998.
* The address for each of the Fund's Officers is 1345 Avenue of the
Americas, New York, NY 10105.
** ACMC, ABIRM and AGIS are affiliates of the Fund.
The Fund's Statement of Additional Information ("SAI") has additional
information about the Fund's Directors and officers and is available
without charge upon request. Contact your financial representative or
Alliance Capital at 800-227-4618 for a free prospectus or SAI.
- --------------------------------------------------------------------------------
ALLIANCEBERNSTEIN BOND FUND CORPORATE BOND PORTFOLIO o 41
AllianceBernstein Family of Funds
- --------------------------------------------------------------------------------
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 Fund+
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 Cap Value 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
ACM Government Opportunity Fund
ACM Managed Dollar Income Fund
ACM Managed Income Fund
ACM Municipal Securities Income Fund
California Municipal Income Fund
National Municipal Income Fund
New York Municipal Income Fund
The Spain Fund
World Dollar Government Fund
World Dollar Government Fund II
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.
- --------------------------------------------------------------------------------
42 o ALLIANCEBERNSTEIN BOND FUND CORPORATE BOND PORTFOLIO
NOTES
- --------------------------------------------------------------------------------
ALLIANCEBERNSTEIN BOND FUND CORPORATE BOND PORTFOLIO o 43
NOTES
- --------------------------------------------------------------------------------
44 o ALLIANCEBERNSTEIN BOND FUND CORPORATE BOND PORTFOLIO
ALLIANCEBERNSTEIN BOND FUND CORPORATE BOND PORTFOLIO
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.
CBPAR0903
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 Bond Fund, Inc.
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