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: 811-08426
AllianceBernstein Worldwide Privatization 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: June 30, 2003
Date of reporting period: December 31, 2003
ITEM 1. REPORTS TO STOCKHOLDERS.
[LOGO] ALLIANCEBERNSTEIN (SM)
Investment Research and Management
International Mid-cap
AllianceBernstein Worldwide Privatization Fund
Semi-Annual Report--December 31, 2003
Investment Products Offered
o Are Not FDIC Insured
o May Lose Value
o Are Not Bank Guaranteed
This shareholder report must be preceded or accompanied by the Fund's
prospectus for individuals who are not current investors in 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. is an affiliate of
Alliance Capital Management L.P., the manager of the funds, and is a member of
the NASD.
February 24, 2004
Semi-Annual Report
This report provides management's discussion of fund performance for
AllianceBernstein Worldwide Privatization Fund (the "Fund") for the semi-annual
reporting period ended December 31, 2003.
Investment Objective and Policies
This open-end fund seeks long-term capital appreciation. The Fund invests
substantially all of its assets in equity securities issued by companies that
are undergoing, or have undergone, privatization, and in securities of
companies believed by Alliance to be beneficiaries of privatizations.
Investment Results
The following table provides the performance results for the Fund and the
Morgan Stanley Capital International (MSCI) World (minus the U.S.) Index, as
well as the MSCI Emerging Markets Free (EMF) Index, for the six- and 12-month
periods ended December 31, 2003. We have also included the performance results
for the Fund's benchmark, a 65%/35% composite of the MSCI World (minus the
U.S.) Index and the MSCI EMF Index, respectively, which more closely reflects
the Fund's investment orientation and portfolio characteristics than either of
the indices standing alone.
- -------------------------------------------------------------------------------
INVESTMENT RESULTS*
Periods Ended December 31, 2003
Returns
------------------------
6 Months 12 Months
-------- ---------
AllianceBernstein Worldwide
Privatization Fund
Class A 30.21% 44.72%
Class B 29.59% 43.50%
Class C 29.59% 43.50%
MSCI World (minus the U.S.) Index 26.56% 40.01%
MSCI EMF Index 34.57% 56.28%
65%/35% Composite: MSCI World
(minus the U.S.) Index/MSCI
EMF Index 29.36% 45.70%
* The Fund's investment results are for the periods shown and are based on
the net asset value (NAV) of each class of shares as of December 31, 2003.
Returns do not reflect the deduction of taxes that a shareholder would pay on
fund distributions or the redemption of fund shares. All fees and expenses
related to the operation of the Fund have been deducted, but no adjustment has
been made for sales charges that may apply when shares
- -------------------------------------------------------------------------------
ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND o 1
- -------------------------------------------------------------------------------
are purchased or redeemed. Returns for Advisor Class shares will vary due to
different expenses associated with this class. Returns for the Fund include the
reinvestment of any distributions paid during each period. Past performance is
no guarantee of future results.
Neither the unmanaged Morgan Stanley Capital International (MSCI) World (minus
the U.S.) Index nor the MSCI Emerging Markets Free (EMF) Index reflects fees
and expenses associated with the active management of a mutual fund portfolio.
The MSCI World (minus the U.S.) Index is a market capitalization-weighted index
that measures the performance of stock markets in 22 countries outside the
United States. The MSCI EMF Index is a market capitalization-weighted index
composed of companies representative of the market structure of 26 emerging
market countries in Europe, Latin America, and the Pacific Basin. An investor
cannot invest directly in an index, and its results are not indicative of any
specific investment, including AllianceBernstein Worldwide Privatization Fund.
Additional investment results appear on page 5.
- -------------------------------------------------------------------------------
During the six- and 12-month periods ended December 31, 2003, the Fund's Class
A shares returned 30.21% and 44.72%, respectively. The Fund's benchmark, a
65%/35% composite of the MSCI World (minus the U.S.) Index and the MSCI EMF
Index, posted returns of 29.36% and 45.70%, respectively, during the same
periods.
Over the 12-month period, the Fund underperformed the benchmark due to
mildly disappointing stock selection results in Japan and to the Fund's
underweighted asset allocation in Asia.
Over the six-month period, the Fund outperformed the benchmark due primarily to
positive contributions from stock selection, with relative overweight positions
in Brazilian and Chinese commodity stocks having a notable impact. Regional
asset allocation also made a slight positive contribution to the relative
performance, most notably from the Fund's overweight positions in the Latin
American, and to a lesser extent the EMEA (East Europe, Middle East and
Africa), regions.
Market Review and Investment Strategy
During the 12-month reporting period ended December 31, 2003, both developed
and emerging market equities posted strong positive returns. Within developed
markets, the European and the Pacific ex-Japan regions registered the strongest
performance, while Japan marginally lagged behind. North America was the worst
relative performer in U.S. dollar terms. Among the emerging markets group,
Latin America proved the strongest performer, driven by a rebound in the
Brazilian equity market. The EMEA
- -------------------------------------------------------------------------------
2 o ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND
region also posted positive returns. Returns from Asia were also strong but
lagged the overall emerging markets group.
The broad strength in the equity markets in 2003 was due to a combination of
factors. The investment environment improved and investor appetite for risk
grew, as the uncertainty that had previously overshadowed the markets was
reduced with the swift resolution of the conflict in Iraq. Actions taken by
global policy makers to stimulate economic activity also started to bear fruit,
as economic growth began to accelerate across all the major regions. North
America and Asia registered the strongest recovery, while recovery in Europe
and Japan was more tentative. Equity market valuations were further enhanced by
a dramatic improvement in corporate profitability and cash flow based on cost
cutting efforts and better top line results.
The Fund's portfolio continued to emphasize diversification, with strong
representation in both developed and emerging markets and in a wide array of
economic sectors. Privatization activity gained momentum over the period under
review and a number of large privatization deals were successfully completed
during the period.
- -------------------------------------------------------------------------------
ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND o 3
Portfolio Summary
- -------------------------------------------------------------------------------
PORTFOLIO SUMMARY
December 31, 2003 (unaudited)
6/2/94
Class B Shares
6/2/94
Class C Shares
2/8/95
Net Assets ($mil): $276.5
[GRAPH OMITTED]
SECTOR BREAKDOWN
22.1% Finance
18.8% Utilities
17.0% Consumer Services
11.6% Energy
7.0% Transportation
6.9% Technology
5.5% Basic Industry
4.6% Health Care
3.1% Consumer Staples
2.4% Multi-Industry
0.7% Consumer Manufacturing
0.3% Short-Term
[GRAPH OMITTED]
SECURITY BREAKDOWN
87.1% Common Stock
8.8% American Depositary Receipt
2.7% Global Depositary Receipt
1.1% Preferred Stock
0.3% Time Deposit
All data as of December 31, 2003. The Fund's sector and security breakdowns are
expressed as a percentage of total investments and may vary over time.
- -------------------------------------------------------------------------------
4 o ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND
Investment Results
- -------------------------------------------------------------------------------
INVESTMENT RESULTS
AVERAGE ANNUAL RETURNS AS OF DECEMBER 31, 2003
Class A Shares
- -------------------------------------------------------------------------------
Without Sales Charge With Sales Charge
1 Year 44.72% 38.65%
5 Years 5.34% 4.43%
Since Inception* 7.84% 7.36%
Class B Shares
- -------------------------------------------------------------------------------
Without Sales Charge With Sales Charge
1 Year 43.50% 39.50%
5 Years 4.53% 4.53%
Since Inception* 7.19% 7.19%
Class C Shares
- -------------------------------------------------------------------------------
Without Sales Charge With Sales Charge
1 Year 43.50% 42.50%
5 Years 4.53% 4.53%
Since Inception* 8.20% 8.20%
The Fund's investment results represent average annual returns. Returns do not
reflect the deduction of taxes that a shareholder would pay on fund
distributions or the redemption of fund shares. The returns reflect
reinvestment of dividends and/or capital gains distributions in additional
shares without and with the effect of the 4.25% maximum front-end sales charge
for Class A or applicable contingent deferred sales charge for Class B (4% year
1, 3% year 2, 2% year 3, 1% year 4); and for Class C shares (1% year 1).
Returns for Class A shares do not reflect the imposition of the 1 year, 1%
contingent deferred sales charge for accounts over $1,000,000. Returns for
Advisor Class shares will vary due to different expenses associated with this
class.
Substantially all of the Fund's assets will be invested in foreign securities,
which may magnify fluctuations in the prices of individual securities in which
the Fund invests due to changes in foreign exchange rates and the possibility
of substantial volatility due to political and economic uncertainties in
foreign countries.
Past performance does not guarantee future results. Investment return and
principal value will fluctuate so that an investor's shares, when redeemed, may
be worth more or less than their original cost.
* Since Inception: 6/2/94 Class A and Class B; 2/8/95 Class C.
- -------------------------------------------------------------------------------
ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND o 5
Ten Largest Holdings
- -------------------------------------------------------------------------------
TEN LARGEST HOLDINGS
December 31, 2003 (unaudited)
Percent of
Company U.S. $ Value Net Assets
- -------------------------------------------------------------------------------
Mitsubishi Tokyo Financial Group, Inc. $ 7,499,963 2.7%
Vodafone Group Plc. 6,883,637 2.5
Japan Tobacco, Inc. 6,778,613 2.4
BNP Paribas, SA 6,513,012 2.3
Deutsche Post AG 6,032,599 2.2
Kookmin Bank (common stock & ADR) 5,998,667 2.2
ENI SpA 5,973,692 2.2
France Telecom, SA 5,962,850 2.2
Nomura Holdings, Inc. 5,639,236 2.0
East Japan Railway Co. 5,331,917 1.9
$ 62,614,186 22.6%
- -------------------------------------------------------------------------------
6 o ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND
Portfolio of Investments
- -------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
December 31, 2003 (unaudited)
Company Shares U.S. $ Value
- -------------------------------------------------------------------------------
COMMON & PREFERRED STOCKS-98.1%
Australia-1.1%
CSL, Ltd. 230,911 $ 3,102,862
------------
Austria-1.3%
Bank Austria Creditanstalt(a) 36,571 1,864,145
Boehler-Uddeholm AG 27,500 1,853,100
------------
3,717,245
Brazil-5.0%
Brasil Telecom Participacoes, SA (ADR) 27,600 1,043,280
Companhia Paranaense de Energia-Copel
(ADR)(a) 78,400 373,968
Companhia Vale do Rio Doce (ADR) 32,200 1,883,700
Sponsored ADR 21,600 1,112,616
Gerdau, SA pfd 42,749 902,315
Sponsored ADR 87,180 1,762,780
Investimentos Itau, SA pfd(a) 1,834,674 2,164,788
Petroleo Brasileiro, SA (ADR) 144,600 3,855,036
Telesp Celular Participacoes, SA (ADR)(a) 45,300 298,074
Uniao de Bancos Brasileiros, SA (GDR) 11,700 291,915
------------
13,688,472
Chile-0.1%
Enersis, SA (ADR)(a) 41,200 303,232
------------
China-2.8%
Beijing Capital International
Airport Co., Ltd. 3,444,000 1,175,540
China Petroleum and Chemical Corp. 3,882,000 1,737,556
China Resources Power Holdings Co., Ltd.(a) 3,482,000 1,614,581
CNOOC, Ltd. 826,000 1,622,476
Legend Group, Ltd. 3,690,000 1,580,325
------------
7,730,478
Czech Republic-0.6%
Cesky Telecom AS (GDR)(a) 155,200 1,746,000
------------
Egypt-0.9%
Eastern Co. for Tobacco & Cigarettes 95,724 1,195,424
Egyptian Co. for Mobile Services 106,675 1,306,574
------------
2,501,998
Finland-2.3%
Fortum OYJ 171,894 1,769,709
Sampo OYJ 158,538 1,636,195
TietoEnator OYJ 102,745 2,806,132
------------
6,212,036
ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND o 7
Portfolio of Investments
- -------------------------------------------------------------------------------
Company Shares U.S. $ Value
- -------------------------------------------------------------------------------
France-10.8%
BNP Paribas, SA 103,662 $ 6,513,012
Dassault Systemes, SA 58,719 2,672,359
France Telecom, SA(a) 209,077 5,962,850
Sanofi-Synthelabo, SA 32,867 2,469,574
STMicroelectronics NV 45,334 1,226,733
TF1-TV Francaise 91,058 3,172,283
TotalFinaElf Series B 19,365 3,592,549
Veolia Environnement 155,716 4,174,463
------------
29,783,823
Germany-4.3%
Deutsche Lufthansa AG 86,289 1,438,994
Deutsche Post AG 293,695 6,032,599
Fraport AG(a) 95,043 2,727,362
Rhoen-Klinikum AG 29,081 1,621,440
------------
11,820,395
Ghana-0.7%
Ashanti Goldfields Co., Ltd. (GDR)(a) 153,700 2,004,248
------------
Greece-1.7%
Greek Organisation of Football
Prognostics, SA 165,336 2,388,895
Public Power Corp. 98,264 2,424,031
------------
4,812,926
Hong Kong-0.9%
China Mobile (Hong Kong), Ltd. 365,000 1,118,918
China Resources Enterprise, Ltd. 1,314,000 1,489,383
------------
2,608,301
Hungary-1.6%
Matav Magyar Tavkozlesi Rt. 334,574 1,266,779
MOL Magyar Olaj-es Gazipari Rt. 41,992 1,270,930
OTP Bank Rt.(a) 151,041 1,936,423
------------
4,474,132
India-0.6%
Canara Bank, Ltd. 268,600 805,210
Punjab National Bank, Ltd. 170,300 903,339
------------
1,708,549
Indonesia-0.2%
PT Hanjaya Mandala Sampoerna Tbk 1,174,500 624,029
------------
Israel-0.7%
Bank Hapoalim, Ltd. 807,600 1,985,450
------------
- -------------------------------------------------------------------------------
8 o ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND
Portfolio of Investments
- -------------------------------------------------------------------------------
Company Shares U.S. $ Value
- -------------------------------------------------------------------------------
Italy-5.0%
Acegas-APS SpA 216,186 $ 1,398,551
ENI SpA 317,266 5,973,692
Telecom Italia Mobile SpA 280,263 1,520,305
Telecom Italia SpA(a) 445,064 1,316,370
UniCredito Italiano SpA 672,283 3,621,459
------------
13,830,377
Japan-14.2%
East Japan Railway Co. 1,131 5,331,917
Japan Airlines System Corp. 506,000 1,336,800
Japan Tobacco, Inc. 925 6,778,613
KDDI Corp. 590 3,381,815
Mitsubishi Tokyo Financial Group, Inc. 961 7,499,963
Nippon Telegraph & Telephone Corp. 482 2,326,307
Nissan Motor Co., Ltd. 167,200 1,910,500
Nomura Holdings, Inc. 331,000 5,639,236
NTT DoCoMo, Inc. 1,557 3,532,029
West Japan Railway Co. 372 1,462,024
------------
39,199,204
Luxembourg-0.9%
Tenaris, SA (ADR) 70,221 2,339,764
------------
Malaysia-0.3%
Astro All Asia Networks Plc.(a) 123,500 143,650
Maxis Communications Berhad 329,900 655,459
------------
799,109
Mexico-3.7%
America Movil, SA de CV Series L 95,506 2,611,134
Grupo Aeroportuario del Sureste,
SA de CV (ADR) 20,200 355,520
Grupo Financiero Banorte, SA de CV Series O 347,977 1,207,770
Grupo Financiero BBVA Bancomer, SA de CV(a) 4,364,000 3,728,421
Telefonos de Mexico, SA de CV Cl. L (ADR) 67,506 2,229,723
------------
10,132,568
Netherlands-1.2%
ING Groep NV 143,153 3,331,387
------------
Norway-0.5%
Telenor ASA 212,204 1,384,541
------------
Peru-0.7%
Exsa, SA(b) 2,553,049 1,807,038
------------
Poland-1.0%
Bank Pekao, SA 43,601 1,261,427
Polski Koncern Naftowy Orlen, SA (GDR) 107,117 1,435,368
------------
2,696,795
- -------------------------------------------------------------------------------
ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND o 9
Portfolio of Investments
- -------------------------------------------------------------------------------
Company Shares U.S. $ Value
- -------------------------------------------------------------------------------
Russia-2.4%
AO VimpelCom (ADR)(a) 25,500 $ 1,874,250
Lukoil Holding (ADR) 26,209 2,440,058
Mobile Telesystems (ADR) 15,000 1,242,000
YUKOS (ADR) 26,400 1,108,800
------------
6,665,108
Singapore-1.5%
DBS Group Holdings, Ltd. 236,535 2,047,379
Singapore Post, Ltd. 1,660,000 679,326
Singapore Telecommunications, Ltd. 1,231,000 1,420,691
------------
4,147,396
South Africa-1.0%
MTN Group, Ltd.(a) 647,865 2,757,140
------------
South Korea-5.5%
Kookmin Bank 93,701 3,511,330
ADR 65,733 2,487,337
POSCO 28,720 3,928,963
SK Telecom Co., Ltd. 31,260 5,220,932
------------
15,148,562
Spain-3.2%
Amadeus Global Travel Distribution, SA 263,903 1,710,564
Iberia Lineas Aereas de Espana, SA 545,358 1,564,964
Indra Sistemas, SA 98,417 1,259,734
Red Electrica de Espana 84,316 1,379,562
Telefonica, SA 193,648 2,836,963
------------
8,751,787
Sweden-1.0%
Eniro AB 281,883 2,701,191
------------
Switzerland-0.3%
Unique Zurich Airport(a) 17,645 925,910
------------
Taiwan-3.2%
Cathay Financial Holding Co.,
Ltd. (GDR)(a)(c) 117,200 1,758,000
Chunghwa Telecom Co., Ltd. (ADR) 169,900 2,463,550
Fubon Financial Holding Co., Ltd. 1,693,865 1,621,520
Taiwan Semiconductor Manufacturing
Co., Ltd.(a) 1,675,212 3,133,313
------------
8,976,383
Thailand-1.6%
Ratchaburi Electricity Generating
Holding Public Co., Ltd. 2,130,300 2,634,480
Siam Commercial Bank Public Co., Ltd.(a) 1,264,800 1,723,748
------------
4,358,228
Trinidad & Tobago-0.3%
B.W.I.A. International Airways, Ltd.(a)(b) 2,727,272 909,000
------------
- -------------------------------------------------------------------------------
10 o ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND
Portfolio of Investments
- -------------------------------------------------------------------------------
Shares or
Principal
Amount
Company (000) U.S. $ Value
- -------------------------------------------------------------------------------
Turkey-1.4%
Dogan Yayin Holding AS(a) 321,570,948 $ 1,236,371
Turkiye Is Bankasi Series C(a) 633,565,037 2,571,250
------------
3,807,621
United Kingdom-10.2%
BP Plc. 366,908 2,963,762
British Airways Plc.(a) 334,212 1,385,584
British Sky Broadcasting Group Plc.(a) 267,103 3,348,282
Centrica Plc. 867,547 3,264,099
Mersey Docks & Harbour Co. 180,403 2,131,167
National Grid Transco Plc. 723,317 5,162,355
Vedanta Resources Plc.(a) 209,591 1,375,334
Vodafone Group Plc. 2,787,278 6,883,637
Wolfson Microelectronics Plc.(a) 318,547 1,817,655
------------
28,331,875
United States-3.4%
Affiliated Computer Services, Inc. Cl. A(a) 77,000 4,193,420
Pfizer, Inc. 149,300 5,274,769
------------
9,468,189
Total Common & Preferred Stocks
(cost $206,357,539) 271,293,349
------------
SHORT-TERM INVESTMENT-0.3%
Time Deposit-0.3%
Societe Generale
0.91%, 1/02/04
(cost $700,000) $700 700,000
------------
Total Investments-98.4%
(cost $207,057,539) 271,993,349
Other assets less liabilities-1.6% 4,534,141
------------
Net Assets-100% $ 276,527,490
(a) Non-income producing security.
(b) Illiquid security, valued at fair value (See Note A).
(c) 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 December 31, 2003,
the aggregate market value of these securities amounted to $1,758,000 or 0.6%
of net assets.
Glossary of terms:
ADR - American Depositary Receipt
GDR - Global Depositary Receipt
See notes to financial statements.
- -------------------------------------------------------------------------------
ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND o 11
Statement of Assets & Liabilities
- -------------------------------------------------------------------------------
STATEMENT OF ASSETS & LIABILITIES
December 31, 2003 (unaudited)
Assets
Investments in securities, at value (cost $207,057,539) $ 271,993,349
Cash 956,176
Foreign cash, at value (cost $4,742,489) 4,811,855
Dividends and interest receivable 728,581
Receivable for capital stock sold 232,751
Total assets 278,722,712
Liabilities
Payable for investment securities purchased 700,000
Payable for capital stock redeemed 561,427
Advisory fee payable 224,188
Net unrealized depreciation on India capital gains tax 166,273
Distribution fee payable 109,106
Accrued expenses 434,228
Total liabilities 2,195,222
Net Assets $ 276,527,490
Composition of Net Assets
Capital stock, at par $ 25,912
Additional paid-in capital 258,107,847
Distributions in excess of net investment income (674,929)
Accumulated net realized loss on investment
and foreign currency transactions (45,786,335)
Net unrealized appreciation of investments and
and foreign currency denominated assets and liabilities 64,854,995
$ 276,527,490
Calculation of Maximum Offering Price
Class A Shares
Net asset value and redemption price per share
($201,137,459/18,500,876 shares of capital stock
issued and outstanding) $10.87
Sales charge--4.25% of public offering price .48
Maximum offering price $11.35
Class B Shares
Net asset value and offering price per share
($58,651,961/5,771,832 shares of capital stock
issued and outstanding) $10.16
Class C Shares
Net asset value and offering price per share
($15,606,160/1,535,904 shares of capital stock
issued and outstanding) $10.16
Advisor Class Shares
Net asset value, redemption and offering price per share
($1,131,910/103,573 shares of capital stock
issued and outstanding) $10.93
See notes to financial statements.
- -------------------------------------------------------------------------------
12 o ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND
Statement of Operations
- -------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
Six Months Ended December 31, 2003 (unaudited)
Investment Income
Dividends (net of foreign taxes withheld
of $298,117) $ 2,280,184
Interest 3,108 $ 2,283,292
Expenses
Advisory fee 1,226,979
Distribution fee--Class A 268,163
Distribution fee--Class B 261,125
Distribution fee--Class C 67,622
Transfer agency 564,864
Custodian 213,648
Administrative 68,866
Printing 63,909
Audit and legal 63,580
Registration 39,997
Directors' fees 9,000
Miscellaneous 8,678
Total expenses 2,856,431
Less: expenses waived by the
Transfer Agent (see Note B) (36,328)
Less: expense offset arrangement
(see Note B) (280)
Net expenses 2,819,823
Net investment loss (536,531)
Realized and Unrealized Gain (Loss) on
Investment and Foreign Currency Transactions
Net realized gain (loss) on:
Investment transactions 18,004,730
Foreign currency transactions (77,480)
Net change in unrealized
appreciation/depreciation of:
Investments 47,794,496
Foreign currency denominated
assets and liabilities (30,386)
Net gain on investment and foreign
currency transactions 65,691,360
Net Increase in Net Assets from
Operations $ 65,154,829
See notes to financial statements.
- -------------------------------------------------------------------------------
ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND o 13
Statement Of Changes In Net Assets
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended Year Ended
December 31, 2003 June 30,
(unaudited) 2003
----------------- ------------
Increase (Decrease) in
Net Assets from Operations
Net investment income (loss) $ (536,531) $ 1,162
Net realized gain (loss) on investment
and foreign currency transactions 17,927,250 (4,816,525)
Net change in unrealized
appreciation/depreciation
of investments and foreign
currency denominated
assets and liabilities 47,764,110 6,240,176
Net increase in net assets from
operations 65,154,829 1,424,813
Dividends to Shareholders from
Net investment income
Class A (708,309) -0-
Advisor Class (6,139) -0-
Capital Stock Transactions
Net decrease (12,337,789) (42,233,358)
Total increase (decrease) 52,102,592 (40,808,545)
Net Assets
Beginning of period 224,424,898 265,233,443
End of period (including undistributed
net investment income of $576,050
at June 30, 2003) $276,527,490 $224,424,898
See notes to financial statements.
- -------------------------------------------------------------------------------
14 o ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND
Notes to Financial Statements
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
December 31, 2003 (unaudited)
NOTE A
Significant Accounting Policies
AllianceBernstein Worldwide Privatization Fund, Inc. (the "Fund") organized as
a Maryland corporation on March 16, 1994, is registered under the Investment
Company Act of 1940 as an open-end management investment company. The Fund
offers Class A, Class B, Class C and Advisor Class shares. Class A shares are
sold with an initial sales charge of up to 4.25% for purchases not exceeding
$1,000,000. With respect to purchases of $1,000,000 or more, Class A shares
redeemed within one year of purchase may be subject to a contingent deferred
sales charge of 1%. Class B shares are currently sold with a contingent
deferred sales charge which declines from 4.00% to zero depending on the period
of time the shares are held. Class B shares will automatically convert to Class
A shares eight years after the end of the calendar month of purchase. Class C
shares are subject to a contingent deferred sales charge of 1% on redemptions
made within the first year after purchase. Advisor Class shares are sold
without an initial or contingent deferred sales charge. Advisor Class shares
are offered solely to investors participating in fee based programs and to
certain retirement plan accounts. All four classes of shares have identical
voting, dividend, liquidation and other rights, and the same terms and
conditions, except that each class bears different distribution expenses and
has exclusive voting rights with respect to its distribution plan. The
financial statements have been prepared in conformity with accounting
principles generally accepted in the United States which require management to
make certain estimates and assumptions that affect the reported amounts of
assets and liabilities in the financial statements and amounts of income and
expenses during the reporting period. Actual results could differ from those
estimates. Additional information about some of the items discussed in these
Notes to Financial Statements is contained in the Fund's Statement of
Additional Information, which is available upon request. The following is a
summary of significant accounting policies followed by the Fund.
1. Security Valuation
In accordance with Pricing Policies adopted by the Board of Directors of the
Fund (the "Pricing Policies") and applicable law, portfolio securities are
valued at current market value or at fair value. The Board of Directors has
delegated to Alliance Capital Management L.P. (the "Adviser"), subject to the
Board's continuing oversight, certain responsibilities with respect to the
implementation of the Pricing Policies. Pursuant to the Pricing Policies,
securities for which market quotations are readily available are valued at
their current market value. In general, the market value of these securities is
determined as follows:
Securities listed on a national securities exchange or on a foreign securities
exchange are valued at the last sale price at the close of the exchange or
foreign securities exchange. If there has been no sale on such day, the
securities are valued at the mean of the closing bid and asked prices on such
day. If no bid or asked prices are quoted on such day, then the security is
valued in good faith at
- -------------------------------------------------------------------------------
ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND o 15
Notes to Financial Statements
- -------------------------------------------------------------------------------
fair value in accordance with the Pricing Policies. Securities listed on more
than one exchange are valued by reference to the principal exchange on which
the securities are traded; securities not listed on an exchange but traded on
The Nasdaq Stock Market, Inc. ("NASDAQ") are valued in accordance with the
NASDAQ Official Closing Price; listed put or call options are valued at the
last sale price. If there has been no sale on that day, such securities will be
valued at the closing bid prices on that day; open futures contracts and
options thereon are valued using the closing settlement price or, in the
absence of such a price, the most recent quoted bid price. If there are no
quotations available for the day of valuations, the last available closing
settlement price is used; securities traded in the over-the-counter market,
(but excluding securities traded on NASDAQ) are valued at the mean of the
current bid and asked prices as reported by the National Quotation Bureau or
other comparable sources; U.S. Government securities and other debt instruments
having 60 days or less remaining until maturity are valued at amortized cost if
their original maturity was 60 days or less, or by amortizing their fair value
as of the 61st day prior to maturity if their original term to maturity
exceeded 60 days; fixed-income securities, including mortgage backed and asset
backed securities, may be valued on the basis of prices provided by a pricing
service or at a price obtained from one or more of the major broker/dealers. In
cases where broker/dealer quotes are obtained, the Pricing Policies provide
that the Adviser may establish procedures whereby changes in market yields or
spreads are used to adjust, on a daily basis, a recently obtained quoted price
on a security; and OTC and other derivatives are valued on the basis of a
quoted bid price or spread from a major broker/dealer in such security.
Securities for which market quotations are not readily available are valued at
fair value in accordance with the Pricing Policies.
2. Currency Translation
Assets and liabilities denominated in foreign currencies and commitments under
forward exchange currency contracts are translated into U.S. dollars at the
mean of the quoted bid and asked prices of such currencies against the U.S.
dollar. Purchases and sales of portfolio securities are translated into U.S.
dollars at the rates of exchange prevailing when such securities were acquired
or sold. Income and expenses are translated at rates of exchange prevailing
when accrued.
Net realized gain or loss on foreign currency transactions represents foreign
exchange gains and losses from sales and maturities of foreign fixed income
investments, foreign currency exchange contracts, holding of foreign
currencies, currency gains or losses realized between the trade and settlement
dates on foreign investment transactions, and the difference between the
amounts of dividends, interest and foreign withholding taxes recorded on the
Fund's books and the U.S. dollar equivalent amounts actually received or paid.
Net unrealized currency gains and losses from valuing foreign currency
denominated assets and liabilities at period end exchange rates are reflected
as a component of net unrealized appreciation or depreciation of investments
and foreign currency denominated assets and liabilities.
- -------------------------------------------------------------------------------
16 o ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND
Notes to Financial Statements
- -------------------------------------------------------------------------------
3. Taxes
It is the Fund's policy to meet the requirements of the Internal Revenue Code
applicable to regulated investment companies and to distribute all of its
investment company taxable income and net realized gains, if any, to
shareholders. Therefore, no provisions for federal income or excise taxes are
required.
4. Investment Income and Investment Transactions
Dividend income is recorded on the ex-dividend date. Interest income is accrued
daily. Investment transactions are accounted for on the date securities are
purchased or sold. Investment gains and losses are determined on the identified
cost basis. The Fund accretes discounts on short-term securities as adjustments
to interest income.
5. Income and Expenses
All income earned and expenses incurred by the Fund are borne on a pro rata
basis by each outstanding class of shares, based on the proportionate interest
in the Fund represented by the net assets of such class, except that the Fund's
Class B and Class C shares bear higher distribution and transfer agent fees
than Class A shares and Advisor Class shares. Advisor Class shares also have no
distribution fees.
6. Dividends and Distributions
Dividends and distributions to shareholders, if any, are recorded on the
ex-dividend date. Income and capital gains distributions are determined in
accordance with federal tax regulations and may differ from those determined in
accordance with accounting principles generally accepted in the United States.
To the extent these differences are permanent, such amounts are reclassified
within the capital accounts based on their federal tax basis treatment;
temporary differences, do not require such reclassification.
NOTE B
Advisory Fee and Other Transactions with Affiliates
Under an investment advisory agreement, the Fund pays the Adviser a fee at an
annual rate of 1% of the Fund's average daily net assets. Such fee is accrued
daily and paid monthly. Pursuant to the advisory agreement, the Fund paid
$68,866 to the Adviser representing the cost of certain legal and accounting
services provided to the Fund by the Adviser for the six months ended December
31, 2003.
Effective January 1, 2004, the Adviser began waiving a portion of its advisory
fee so as to charge the Fund at the reduced annual rate of .75% of the first
$2.5 billion, .65% of the next $2.5 billion and .60% in excess of $5 billion,
of the average daily net assets of the Fund. The amount of the fee waiver may
increase or decrease as a result of a final, definitive agreement with the New
York Attorney General's Office ("NYAG"). For a more complete discussion of the
Adviser's settlement with the NYAG, please see "Legal Proceedings" below.
- -------------------------------------------------------------------------------
ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND o 17
Notes to Financial Statements
- -------------------------------------------------------------------------------
The Fund compensates Alliance Global Investor Services, Inc. (AGIS), a
wholly-owned subsidiary of the Adviser under a Transfer Agency Agreement for
providing personnel and facilities to perform transfer agency services for the
Fund. Such compensation amounted to $328,984 for the six months ended December
31, 2003. In addition, AGISagreed to waive a portion of its fees for the six
months ended December 31, 2003. Such waiver amounted to $36,328.
For the six months ended December 31, 2003, the Fund's expenses were reduced by
$280 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
Fund's shares. The Distributor has advised the Fund that it has retained
front-end sales charges of $1,879 from the sale of Class A shares and received
$14,791, $53,120 and $4,173 in contingent deferred sales charges imposed upon
redemptions by shareholders of Class A, Class B and Class C shares,
respectively, for the six months ended December 31, 2003.
Brokerage commissions paid on investment transactions for the six months ended
December 31, 2003, amounted to $285,687, none of which was paid to Sanford C.
Bernstein & Co. LLC, an affiliate of the Adviser.
NOTE C
Distribution Services Agreement
The Fund has adopted a Distribution Services Agreement (the "Agreement")
pursuant to Rule 12b-1 under the Investment Company Act of 1940. Under the
Agreement, the Fund pays distribution and servicing fees to the Distributor at
an annual rate of up to .30 of 1% of the Fund's average daily net assets
attributable to Class A shares and 1% of the average daily net assets
attributable to the Class B and Class C shares. There are no distribution and
servicing fees on the Advisor Class shares. The fees are accrued daily and paid
monthly. The Agreement provides that the Distributor will use such payments in
their entirety for distribution assistance and promotional activities. The
Distributor has advised the Fund that it has incurred expenses in excess of the
distribution costs reimbursed by the Fund in the amount of $6,619,225 and
$1,218,807 for Class B and Class C shares, respectively; such costs may be
recovered from the Fund in future periods so long as the Agreement is in
effect. In accordance with the Agreement, there is no provision for recovery of
unreimbursed distribution costs incurred by the Distributor beyond the current
fiscal year for Class A shares. The Agreement also provides that the Adviser
may use its own resources to finance the distribution of the Fund's shares.
- -------------------------------------------------------------------------------
18 o ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND
Notes to Financial Statements
- -------------------------------------------------------------------------------
NOTE D
Investment Transactions
Purchases and sales of investment securities (excluding short-term investments)
for the six months ended December 31, 2003, were as follows:
Purchases Sales
---------- -------------
Investment securities (excluding
U.S. government securities) $ 53,445,013 $ 64,823,482
U.S. government securities -0- -0-
The cost of investments for federal income tax purposes was substantially the
same as the cost for financial reporting purposes. Accordingly, gross
unrealized appreciation and unrealized depreciation (excluding foreign currency
transactions) are as follows:
Gross unrealized appreciation $ 71,983,426
Gross unrealized depreciation (7,047,616)
Net unrealized appreciation $ 64,935,810
Forward Exchange Currency Contracts
The Fund may enter into forward exchange currency contracts in order to hedge
its exposure to changes in foreign currency exchange rates on its foreign
portfolio holdings and to hedge certain firm purchase and sales commitments
denominated in foreign currencies. A forward exchange currency contract is a
commitment to purchase or sell a foreign currency at a future date at a
negotiated forward rate. The gain or loss arising from the difference between
the original contracts and the closing of such contracts would be included in
net realized gains or losses on foreign currency transactions. Fluctuations in
the value of open forward exchange currency contracts are recorded for
financial reporting purposes as net unrealized appreciation or depreciation by
the Fund.
The Fund's custodian will place and maintain cash not available for investment
or liquid assets in a separate account of the Fund having a value equal to the
aggregate amount of the Fund's commitments under forward exchange currency
contracts entered into with respect to position hedges. Risks may arise from
the potential inability of a counterparty to meet the terms of a contract and
from unanticipated movements in the value of a foreign currency relative to the
U.S. dollar.
- -------------------------------------------------------------------------------
ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND o 19
Notes to Financial Statements
- -------------------------------------------------------------------------------
NOTE E
Capital Stock
There are 12,000,000,000 shares of $0.001 par value capital stock authorized,
divided into four classes, designated Class A, Class B, Class C, and Advisor
Class.
Each class consists of 3,000,000,000 authorized shares. Transactions in capital
stock were as follows:
Shares Amount
--------------------------- ---------------------------
Six Months Six Months
Ended Ended
December 31, December 31,
2003 Year Ended 2003 Year Ended
(unaudited) June 30, 2003 (unaudited) June 30, 2003
------------ ------------- ------------ -------------
Class A
Shares sold 2,305,410 13,183,729 $ 20,981,266 $ 96,276,749
Shares issued in
reinvestment of
dividends 51,705 -0- 512,401 -0-
Shares converted
from Class B 113,665 856,684 1,044,600 7,708,791
Shares redeemed (3,460,944) (16,909,314) (31,761,667) (126,147,344)
Net decrease (990,164) (2,868,901) $ (9,223,400) $ (22,161,804)
Class B
Shares sold 453,595 945,209 $ 4,047,423 $ 6,678,057
Shares converted
to Class A (121,684) (897,545) (1,044,600) (7,708,791)
Shares redeemed (708,395) (2,413,607) (6,210,984) (15,566,368)
Net decrease (376,484) (2,365,943) $ (3,208,161) $ (16,597,102)
Class C
Shares sold 695,780 1,759,195 $ 5,873,289 $ 12,385,634
Shares redeemed (703,079) (2,229,518) (5,927,801) (15,771,710)
Net decrease (7,299) (470,323) $ (54,512) $ (3,386,076)
Advisor Class
Shares sold 172,515 286,023 $ 1,523,729 $ 2,282,890
Shares issued in
reinvestment of
dividends 419 -0- 4,171 -0-
Shares redeemed (157,457) (296,367) (1,379,616) (2,371,266)
Net increase
(decrease) 15,477 (10,344) $ 148,284 $ (88,376)
- -------------------------------------------------------------------------------
20 o ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND
Notes to Financial Statements
- -------------------------------------------------------------------------------
NOTE F
Concentration of Risk
Investing in securities of foreign companies involves special risks which
include changes in foreign exchange rates and the possibility of future
political and economic developments which could adversely affect the value of
such securities. Moreover, securities of many foreign companies and their
markets may be less liquid and their prices more volatile than those of
comparable U.S. companies. The Fund invests in securities issued by enterprises
that are undergoing, or that have undergone, privatization. Privatization is a
process through which the ownership and control of companies or assets in whole
or in part are transferred from the public sector to the private sector.
Through privatization a government or state divests or transfers all or a
portion of its interest in a state enterprise to some form of private
ownership. Therefore, the Fund is susceptible to the government
re-nationalization of these enterprises and economic factors adversely
affecting the economics of these countries. In addition, these securities
created through privatization may be less liquid and subject to greater
volatility than securities of more developed countries.
NOTE G
Joint Credit Facility
A number of open-end mutual funds managed by the Adviser, including the Fund,
participate in a $500 million revolving credit facility (the "Facility")
intended to provide short-term financing if necessary, subject to certain
restrictions in connection with abnormal redemption activity. Commitment fees
related to the Facility are paid by the participating funds and are included in
miscellaneous expenses in the statement of operations. The Fund did not utilize
the facility during the six months ended December 31, 2003.
NOTE H
Distributions to Shareholders
The tax character of distributions to be paid for the year ending June 30, 2004
will be determined at the end of the current fiscal year. As of June 30, 2003,
the components of accumulated earning/(deficit) on a tax basis were as follows:
Accumulated capital and other losses $(63,455,808)(a)
Undistributed ordinary income 576,050
Unrealized appreciation/(depreciation) 16,833,108
Total accumulated earnings/(deficit) $(46,046,650)
(a) On June 30, 2003, the Fund had a net capital loss carryforward of
$57,588,910 of which $2,674,544 expires in the year 2009, $9,780,649 expires in
the year 2010 and $45,133,717 expires in the year 2011. To the extent future
capital gains are offset by capital loss carryforward, such gains will not be
distributed. Net capital losses incurred after October 31, and within the
taxable year are deemed to arise on the first business day of the Fund's next
taxable year. For the year ended June 30, 2003, the Fund deferred to July 1,
2003, post October capital losses of $5,866,898.
- -------------------------------------------------------------------------------
ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND o 21
Notes to Financial Statements
- -------------------------------------------------------------------------------
NOTE I
Legal Proceedings
As has been previously reported in the press, the Staff of the U.S. Securities
and Exchange Commission ("SEC") and the NYAG have been investigating practices
in the mutual fund industry identified as "market timing" and "late trading" of
mutual fund shares. Certain other regulatory authorities have also been
conducting investigations into these practices within the industry and have
requested that Alliance Capital Management L.P. ("Alliance Capital"), the
Fund's Adviser, provide information to them. Alliance Capital has been
cooperating and will continue to cooperate with all of these authorities.
On December 18, 2003, Alliance Capital confirmed that it had reached terms with
the SEC and the NYAG for the resolution of regulatory claims relating to the
practice of "market timing" mutual fund shares in some of the AllianceBernstein
Mutual Funds. The agreement with the SEC is reflected in an Order of the
Commission ("SEC Order"). The agreement with the NYAG is subject to final,
definitive documentation. Among the key provisions of these agreements are the
following:
(i) Alliance Capital agreed to establish a $250 million fund (the
"Reimbursement Fund") to compensate mutual fund shareholders for the adverse
effects of market timing attributable to market timing relationships described
in the SEC Order. According to the SEC Order, the Reimbursement Fund is to be
paid, in order of priority, to fund investors based on (i) their aliquot share
of losses suffered by the fund due to market timing, and (ii) a proportionate
share of advisory fees paid by such fund during the period of such market
timing;
(ii) Alliance Capital agreed to reduce the advisory fees it receives from
some of the AllianceBernstein long-term, open-end retail funds, commencing
January 1, 2004, for a period of at least five years. The determination of
which funds will have their fees reduced and to what degree is subject to the
terms of the definitive agreement with the NYAG; and
(iii) Alliance Capital agreed to implement changes to its governance and
compliance procedures. Additionally, the SEC Order contemplates that Alliance
Capital's registered investment company clients, including the Fund, will
introduce governance and compliance changes.
In anticipation of final, definitive documentation and effective January 1,
2004, the Adviser began waiving a portion of its advisory fee. For a more
complete description of this waiver, please see "Advisory Fee and Other
Transactions with Affiliates" above.
- -------------------------------------------------------------------------------
22 o ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND
Notes to Financial Statements
- -------------------------------------------------------------------------------
The special committee of Alliance Capital's Board of Directors, comprised of
the members of Alliance Capital's Audit Committee and the other independent
member of the Board, is continuing to direct and oversee an internal
investigation and a comprehensive review of the facts and circumstances
relevant to the SEC's and the NYAG's investigations.
In addition, the Independent Directors of the Fund ("the Independent
Directors") have initiated an investigation of the above-mentioned matters with
the advice of an independent economic consultant and independent counsel. The
Independent Directors have formed a special committee to supervise the
investigation.
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.
Since October 2, 2003, approximately 40 additional lawsuits making factual
allegations similar to those in the Hindo Complaint were filed against Alliance
Capital and certain other defendants, some of which name the Fund as a
defendant. All of these lawsuits seek an unspecified amount of damages.
As a result of the matters discussed above, investors in the AllianceBernstein
Mutual Funds may choose to redeem their investments. This may require the
AllianceBernstein Mutual Funds to sell investments held by those funds to
provide for sufficient liquidity and could also have an adverse effect on the
investment performance of the AllianceBernstein Mutual Funds.
- -------------------------------------------------------------------------------
ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND o 23
Financial Highlights
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
Class A
-----------------------------------------------------------------------------
Six Months
Ended
December 31, Year Ended June 30,
2003 ---------------------------------------------------------------
(unaudited) 2003 2002 2001 2000 1999
----------- ----------- ----------- ----------- ----------- -----------
Net asset value, beginning of period $ 8.38 $ 8.19 $ 8.76 $13.57 $11.84 $12.67
Income From Investment Operations
Net investment income (loss)(a) (.01) .02 (.03) .02 (.04) -0-
Net realized and unrealized
gain (loss) on investment and
foreign currency transactions 2.54 .17 (.54) (3.45) 2.83 .93
Net increase (decrease) in net
asset value from operations 2.53 .19 (.57) (3.43) 2.79 .93
Less: Dividends and Distributions
Dividends from net investment
income (.04) -0- -0- -0- -0- (.12)
Distributions from net realized
gains on investment and
foreign currency transactions -0- -0- -0- (1.37) (1.06) (1.64)
Distributions in excess of net
realized gains on investments -0- -0- -0- (.01) -0- -0-
Total dividends and distributions (.04) -0- -0- (1.38) (1.06) (1.76)
Net asset value, end of period $10.87 $ 8.38 $ 8.19 $ 8.76 $13.57 $11.84
Total Return
Total investment return based on
net asset value(b) 30.21% 2.32% (6.51)% (26.81)% 24.26% 9.86%
Ratios/Supplemental Data
Net assets, end of period (000's omitted) $201,137 $163,406 $183,160 $245,873 $394,665 $340,194
Ratio to average net assets of:
Expenses, net of waivers/
reimbursement 2.09%(c) 2.29% 2.10% 1.81% 1.74%(d) 1.92%(d)
Expenses, before waivers/
reimbursement 2.10%(c) 2.29% 2.10% 1.81% 1.74%(d) 1.92%(d)
Net investment income (loss) (.23)%(c) .23% (.40)% .14% (.31)% (.01)%
Portfolio turnover rate 22% 29% 43% 42% 67% 58%
See footnote summary on page 28.
- -------------------------------------------------------------------------------
24 o ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND
Financial Highlights
- -------------------------------------------------------------------------------
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
Class B
------------------------------------------------------------------------------
Six Months
Ended
December 31, Year Ended June 30,
2003 ---------------------------------------------------------------
(unaudited) 2003 2002 2001 2000 1999
----------- ----------- ----------- ----------- ----------- -----------
Net asset value, beginning of period $ 7.84 $ 7.72 $ 8.32 $13.06 $11.50 $12.37
Income From Investment Operations
Net investment loss(a) (.04) (.04) (.09) (.07) (.13) (.08)
Net realized and unrealized
gain (loss) on investment and
foreign currency transactions 2.36 .16 (.51) (3.29) 2.75 .89
Net increase (decrease) in net
asset value from operations 2.32 .12 (.60) (3.36) 2.62 .81
Less: Dividends and Distributions
Dividends from net investment income -0- -0- -0- -0- -0- (.04)
Distributions from net realized
gains on investment and
foreign currency transactions -0- -0- -0- (1.37) (1.06) (1.64)
Distributions in excess of net
realized gains on investments -0- -0- -0- (.01)-0--0-
Total dividends and distributions -0- -0- -0- (1.38) (1.06) (1.68)
Net asset value, end of period $10.16 $ 7.84 $ 7.72 $ 8.32 $13.06 $11.50
Total Return
Total investment return based on
net asset value(b) 29.59% 1.55% (7.21)% (27.37)% 23.45% 8.91%
Ratios/Supplemental Data
Net assets, end of period (000's omitted) $58,652 $48,183 $65,724 $92,446 $160,847 $117,420
Ratio to average net assets of:
Expenses, net of waivers/
reimbursement 2.87%(c) 3.08% 2.89% 2.56% 2.47%(d) 2.63%(d)
Expenses, before waivers/
reimbursement 2.88%(c) 3.08% 2.89% 2.56% 2.47%(d) 2.65%(d)
Net investment loss (1.01)%(c) (.61)% (1.19)% (.64)% (1.02)% (1.43)%
Portfolio turnover rate 22% 29% 43% 42% 67% 58%
See footnote summary on page 28.
- -------------------------------------------------------------------------------
ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND o 25
Financial Highlights
- -------------------------------------------------------------------------------
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
Class C
------------------------------------------------------------------------------
Six Months
Ended
December 31, Year Ended June 30,
2003 ---------------------------------------------------------------
(unaudited) 2003 2002 2001 2000 1999
----------- ----------- ----------- ----------- ----------- -----------
Net asset value, beginning of period $ 7.84 $ 7.72 $ 8.32 $13.05 $11.50 $12.37
Income From Investment Operations
Net investment loss(a) (.04) (.04) (.09) (.06) (.12) (.08)
Net realized and unrealized
gain (loss) on investment and
foreign currency transactions 2.36 .16 (.51) (3.29) 2.73 .89
Net increase (decrease) in net
asset value from operations 2.32 .12 (.60) (3.35) 2.61 .81
Less: Dividends and Distributions
Dividends from net investment income -0- -0- -0- -0- -0- (.04)
Distributions from net realized
gains on investment and
foreign currency transactions -0- -0- -0- (1.37) (1.06) (1.64)
Distributions in excess of net
realized gains on investments -0- -0- -0- (.01) -0- -0-
Total dividends and distributions -0- -0- -0- (1.38) (1.06) (1.68)
Net asset value, end of period $10.16 $ 7.84 $ 7.72 $ 8.32 $13.05 $11.50
Total Return
Total investment return based on
net asset value(b) 29.59% 1.55% (7.21)% (27.30)% 23.37% 8.91%
Ratios/Supplemental Data
Net assets, end of period (000's omitted) $15,606 $12,092 $15,541 $23,976 $39,598 $20,397
Ratio to average net assets of:
Expenses, net of waivers/
reimbursement 2.86%(c) 3.06% 2.85% 2.56% 2.44%(d) 2.63%(d)
Expenses, before waivers/
reimbursement 2.87%(c) 3.06% 2.85% 2.56% 2.44%(d) 2.63%(d)
Net investment loss (.99)%(c) (.57)% (1.18)% (.62)% (.94)% (1.44)%
Portfolio turnover rate 22% 29% 43% 42% 67% 58%
See footnote summary on page 28.
- -------------------------------------------------------------------------------
26 o ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND
Financial Highlights
- -------------------------------------------------------------------------------
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
Advisor Class
------------------------------------------------------------------------------
Six Months
Ended
December 31, Year Ended June 30,
2003 ---------------------------------------------------------------
(unaudited) 2003 2002 2001 2000 1999
----------- ----------- ----------- ----------- ----------- -----------
Net asset value, beginning of period $ 8.44 $ 8.21 $ 8.76 $13.53 $11.77 $12.63
Income From Investment Operations
Net investment income (loss)(a) -0- .06 (.01) .04 -0- .02
Net realized and unrealized
gain (loss) on investment and
foreign currency transactions 2.56 .17 (.54) (3.43) 2.82 .93
Net increase (decrease) in net
asset value from operations 2.56 .23 (.55) (3.39) 2.82 .95
Less: Dividends and Distributions
Dividends from net investment income (.07) -0- -0- -0- -0- (.17)
Distributions from net realized
gains on investment and
foreign currency transactions -0- -0- -0- (1.37) (1.06) (1.64)
Distributions in excess of net
realized gains on investments -0- -0- -0- (.01) -0- -0-
Total dividends and distributions (.07) -0- -0- (1.38) (1.06) (1.81)
Net asset value, end of period $10.93 $ 8.44 $ 8.21 $ 8.76 $13.53 $11.77
Total Return
Total investment return based on
net asset value(b) 30.35% 2.80% (6.28)% (26.58)% 24.68% 10.12%
Ratios/Supplemental Data
Net assets, end of period (000's omitted) $1,132 $744 $808 $1,343 $2,506 $1,610
Ratio to average net assets of:
Expenses, net of waivers/
reimbursement 1.78%(c) 1.98% 1.80% 1.50% 1.43%(d) 1.62%(d)
Expenses, before waivers/
reimbursement 1.79%(c) 1.98% 1.80% 1.50% 1.43%(d) 1.62%(d)
Net investment income (loss) .07%(c) .74% (.18)% .38% .01% .37%
Portfolio turnover rate 22% 29% 43% 42% 67% 58%
See footnote summary on page 28.
- -------------------------------------------------------------------------------
ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND o 27
Financial Highlights
- -------------------------------------------------------------------------------
(a) Based on average shares outstanding.
(b) Total investment return is calculated assuming an initial investment made
at the net asset value at the beginning of the period, reinvestment of all
dividends and distributions at net asset value during the period, and
redemption on the last day of the period. Initial sales charge or contingent
deferred sales charge is 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 fund distributions or the redemption of fund shares.
Total investment return for a period of less than one year is not annualized.
(c) Annualized.
(d) Ratios reflect expenses grossed up for expense offset arrangement with the
Transfer Agent. For the periods shown below, the net expense ratios were as
follows:
Year Ended June 30,
------------------------------
2000 1999
--------- --------
Class A 1.73% 1.91%
Class B 2.46% 2.62%
Class C 2.43% 2.61%
Advisor Class 1.42% 1.61%
- -------------------------------------------------------------------------------
28 o ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND
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
Edward D. Baker, III,(2) Vice President
Thomas J. Bardong, Vice President
Russell Brody, Vice President
Jean Van De Walle, Vice President
Michael Levy,(2) Vice President
Mark R. Manley, Secretary
Mark D. Gersten, Treasurer & Chief Financial Officer
Vincent S. Noto, Controller
Custodian
Brown Brothers Harriman & Company
40 Water Street
Boston, MA 02109-3661
Principal Underwriter
AllianceBernstein Investment Research and Management, Inc.
1345 Avenue of the Americas
New York, NY 10105
Transfer Agent
Alliance Global Investor Services, Inc.
P.O. Box 786003
San Antonio, TX 78278-6003
Toll-Free (800) 221-5672
Independent Auditors
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, NY 10036
Legal Counsel
Seward & Kissel LLP
One Battery Park Plaza
New York, NY 10004
(1) Member of the Audit Committee.
(2) Messrs. Baker and Levy are the persons primarily responsible for the
day-to-day management of the Fund's investment portfolio.
- -------------------------------------------------------------------------------
ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND o 29
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.
- -------------------------------------------------------------------------------
30 o ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND
NOTES
- -------------------------------------------------------------------------------
ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND o 31
NOTES
- -------------------------------------------------------------------------------
32 o ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND
ALLIANCEBERNSTEIN WORLDWIDE PRIVATIZATION FUND
1345 Avenue of the Americas
New York, NY 10105
(800) 221-5672
[LOGO] ALLIANCEBERNSTEIN (SM)
Investment Research and Management
(SM) This service mark used under license from
the owner, Alliance Capital Management L.P.
WWPSR1203
ITEM 2. CODE OF ETHICS.
Not applicable when filing a Semi-Annual report to shareholders.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable when filing a Semi-Annual report to shareholders.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable when filing a Semi-Annual report to shareholders.
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. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable to the registrant.
ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Form N-CSR disclosure requirement not yet effective with respect to the
registrant.
ITEM 10. 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 11. EXHIBITS.
The following exhibits are attached to this Form N-CSR:
EXHIBIT NO. DESCRIPTION OF EXHIBIT
11 (b) (1) Certification of Principal Executive Officer
Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
11 (b) (2) Certification of Principal Financial Officer
Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
11 (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 Worldwide Privatization Fund, Inc.
By: /s/ Marc O. Mayer
----------------------
Marc O. Mayer
President
Date: February 26, 2004
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: February 26, 2004
By: /s/ Mark D. Gersten
-----------------------
Mark D. Gersten
Treasurer and Chief Financial Officer
Date: February 26, 2004