United States
Securities and Exchange Commission
Washington, D.C. 20549
Form N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-03131
AllianceBernstein Technology Fund, Inc.
(Exact name of registrant as specified in charter)
1345 Avenue of the Americas, New York, New York 10105
(Address of principal executive offices) (Zip code)
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: July 31, 2003
Date of reporting period: January 31, 2004
ITEM 1. REPORTS TO STOCKHOLDERS.
[LOGO] ALLIANCEBERNSTEIN (SM)
Investment Research and Management
Specialty Equity
AllianceBernstein Technology Fund
Semi-Annual Report--January 31, 2004
Investment Products Offered
o Are Not FDIC Insured
o May Lose Value
o Are Not Bank Guaranteed
The investment return and principal value of an investment in the Fund will
fluctuate as the prices of the individual securities in which it invests
fluctuate, so that shares, when redeemed, may be worth more or less than their
original cost. You should consider the investment objectives, risks, charges
and expenses of the Fund carefully before investing. For a free copy of the
Fund's prospectus, which contains this and other information, visit our web
site at www.alliancebernstein.com or call your financial advisor or Alliance at
(800) 227-4618. Please read the prospectus carefully before you invest.
You may obtain month-end performance information from our web site at
www.alliancebernstein.com (click on Investors/ Products & Services/ Mutual
Funds).
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.alliancebernstein.com (click on Investors, then the "proxy voting
policies and procedures" link on the left side of the page), or by going to the
Securities and Exchange Commission's web site at 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.
March 11, 2004
Semi-Annual Report
This report provides management's discussion of fund performance for
AllianceBernstein Technology Fund (the "Fund") for the semi-annual reporting
period ended January 31, 2004.
Investment Objective and Policies
This open-end fund emphasizes growth of capital and invests for capital
appreciation, and only incidentally for current income. The Fund invests
primarily in securities of companies expected to benefit from technological
advances and improvements. The Fund normally will have substantially all of its
assets invested in equity securities, but it also invests in debt securities
offering appreciation potential. The Fund may invest in listed and unlisted
U.S. and foreign securities and has the flexibility to invest both in
well-known, established companies and in new, unseasoned companies. The Fund's
policy is to invest in any company and industry and in any type of security
with potential for capital appreciation.
Investment Results
The following table provides performance results for the Fund for the six- and
12-month periods ended January 31, 2004. We have also included performance for
the Fund's benchmark, the Goldman Sachs Technology Index, which is a modified
capitalization-weighted index of over 200 technology stocks. Also included is
the performance of the NASDAQ Composite Index, which measures all NASDAQ
domestic and non-U.S. based common stocks listed on the NASDAQ Stock Market,
and the Lipper Science and Technology Fund Index (the "Lipper Index"), a
performance index of the largest qualifying funds that have a science and
technology investment objective.
INVESTMENT RESULTS*
Periods Ended January 31, 2004
Returns
6 Months 12 Months
- -------------------------------------------------------------------------------
AllianceBernstein Technology Fund
Class A 19.50% 49.22%
Class B 19.04% 48.08%
Class C 19.03% 48.11%
Goldman Sachs Technology Index 25.32% 62.88%
NASDAQ Composite Index 19.09% 56.42%
Lipper Science & Technology Fund Index 23.02% 59.69%
* 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 January 31, 2004.
Returns do not reflect the deduction of taxes that a shareholder would pay on
fund distributions or the redemption of fund shares. All fees and expenses
related to the operation of the Fund have been deducted, but no adjustment has
been made for sales charges that may apply when shares are purchased or
redeemed. Returns for the Fund include the reinvestment of any distributions
paid during each period. Returns for Class R and Advisor Class shares will vary
due to different expenses associated with these classes. Past performance is no
guarantee of future results.
- -------------------------------------------------------------------------------
ALLIANCEBERNSTEIN TECHNOLOGY FUND o 1
The unmanaged Goldman Sachs Technology Index and the unmanaged NASDAQ
Composite Index do not reflect fees and expenses associated with the active
management of a mutual fund portfolio. The Goldman Sachs Technology Index
measures the performance of over 200 U.S.-based technology companies. The
NASDAQ Composite Index measures all NASDAQ domestic and non-U.S. based common
stocks listed on the NASDAQ Stock Market. The NASDAQ Composite Index is
market-value weighted and includes over 5,000 companies. The unmanaged Lipper
Science and Technology Fund Index is an equally-weighted performance index,
adjusted for capital gains distributions and income dividends, of the largest
qualifying funds that have a science and technology investment objective.
(According to Lipper, this investment objective includes those funds that
invest at least 65% of their equity portfolios in science and technology
stocks.) These funds have generally similar investment objectives to the
AllianceBernstein Technology Fund, although some may have different investment
policies and sales and management fees. Investors cannot invest directly in an
index, and its results are not indicative of any specific investment, including
AllianceBernstein Technology Fund.
Additional investment results appear on pages 5-7.
Although the Fund delivered strong absolute gains during the six- and 12-month
periods ended January 31, 2004, it underperformed both the NASDAQ Composite
Index and the Goldman Sachs Technology Index for the 12-month period. For the
six-month period ended January 31, 2004, the Fund's Class A shares outperformed
the NASDAQ Composite Index but underperformed the Goldman Sachs Technology
Index.
For the six- and 12-month periods under review, the Fund's focus on quality
stocks and risk control, which served it well during the difficult past two
years, hurt relative performance as lower quality, lower priced stocks, which
the Fund does not typically own, outperformed. From a sub-sector perspective,
the Fund benefited from large positions in semiconductors, software and
communication equipment, although poor stock selection in semiconductors and
communication equipment detracted from performance slightly. In two distinct
cases, the Fund's stock selections actually performed well; however, the Fund
was underweight in these names given our discipline of managing position sizes
for diversification and risk control purposes. In the contract manufacturing
area, both stock and sector selection contributed positively. While all other
sectors also contributed to positive performance, the Fund's relative
performance was hurt by its underweight position in computer hardware, although
stock selection in that group outperformed the Goldman Sachs Technology Index
hardware components. The Fund's holdings in computer services also detracted
from relative performance.
- -------------------------------------------------------------------------------
2 o ALLIANCEBERNSTEIN TECHNOLOGY FUND
Market Review and Investment Strategy
During the six- and 12-month periods ended January 31, 2004, technology stocks
advanced as an improving economic environment led to higher-than-expected
demand for technology products. Economic data continued to point to a recovery,
with technology inventory levels near historic lows and order trends and cash
flows improving. An extended upward move for technology stocks began in March
2003 as concerns about geopolitical and economic risk abated and positive
economic data prevailed.
During the period from September 30, 2003 through January 31, 2004, we
increased the Fund's positions in communication equipment as spending patterns
among enterprises and telecommunications carriers improved. Meanwhile, we
continued to decrease the Fund's holdings in the more defensive computer
services and broadcasting areas, and we took profits within the Fund's contract
manufacturing positions.
- -------------------------------------------------------------------------------
ALLIANCEBERNSTEIN TECHNOLOGY FUND o 3
PORTFOLIO SUMMARY
January 31, 2004 (unaudited)
INCEPTION DATES
Class A Shares
3/1/82
Class B Shares
5/3/93
Class C Shares
5/3/93
PORTFOLIO STATISTICS
Net Assets ($mil): $3,382.4
SECTOR BREAKDOWN
Technology
21.5% Computer Software
21.4% Semi-Conductor Components
15.9% Communication Equipment
9.6% Computer Hardware/Storage
6.1% Computer Services
5.6% Contract Manufacturing
3.8% Semi-Conductor Capital Equipment
2.2% Internet Infrastructure
2.2% Internet Media
0.2% Miscellaneous
Consumer Services
3.7% Broadcasting & Cable
2.3% Cellular Communications
Capital Goods
1.5% Electric Equipment
1.4% Miscellaneous
2.6% Short-Term
All data as of January 31, 2004. The Fund's sector breakdown is expressed as a
percentage of total investments (excluding security lending collateral) and may
vary over time.
- -------------------------------------------------------------------------------
4 o ALLIANCEBERNSTEIN TECHNOLOGY FUND
INVESTMENT RESULTS
CLASS A SHARE AVERAGE ANNUAL RETURNS AS OF JANUARY 31, 2004
- -------------------------------------------------------------------------------
Without Sales Charge With Sales Charge
1 Year 49.22% 42.87%
5 Years -6.29% -7.10%
10 Years 11.43% 10.95%
CLASS A SHARE SEC AVERAGE ANNUAL RETURNS (WITH SALES CHARGES)
AS OF THE MOST RECENT QUARTER-END (DECEMBER 31, 2003)
- -------------------------------------------------------------------------------
1 Year 35.66%
5 Years -5.78%
10 Years 10.98%
The performance shown above represents past performance and does not guarantee
future results. Current performance may be lower or higher than the performance
information shown. The Fund's investment results are for the periods shown and
are based on the Fund's Class A shares at net asset value (NAV). All fees and
expenses related to the operation of the Fund have been deducted. NAV returns
do not reflect sales charges; if sales charges were reflected, the Fund's
quoted performance would be lower. Fund returns do not reflect the deduction of
taxes that a shareholder would pay on fund distributions or the redemption of
fund shares. Fund returns reflect the reinvestment of dividends and/or capital
gains distributions in additional shares.
SEC returns reflect the 4.25% maximum front-end sales charge for Class A shares.
The investment return and principal value of an investment in the Fund will
fluctuate as the prices of the individual securities in which it invests
fluctuate, so that shares, when redeemed, may be worth more or less than their
original cost. You should consider the investment objectives, risks, charges
and expenses of the Fund carefully before investing. For a free copy of the
Fund's prospectus, which contains this and other information, visit our web
site at www.alliancebernstein.com or call your financial advisor or Alliance at
(800) 227-4618. Please read the prospectus carefully before you invest. You may
obtain current month-end performance information from our web site at
www.alliancebernstein.com (click on Investors/Products & Services/Mutual
Funds).
A Word About Risk: The Fund concentrates its investments in technology-related
stocks and may therefore be subject to greater risks and volatility than a fund
with a more diversified portfolio. Technology stocks, especially those of
smaller, less-seasoned companies, tend to be more volatile than the overall
stock market. The Fund can invest in foreign securities. Foreign markets can be
more volatile than the U.S. market due to increased risks of adverse issuer,
political, regulatory, market or economic developments. In addition, because
the Fund will invest in foreign currency denominated securities, fluctuations
in the value of the Fund's investments may be magnified by changes in foreign
exchange rates. While the Fund invests principally in common stocks and other
equity securities, in order to achieve its investment objectives, the Fund may
at times use certain types of investment derivatives, such as options, futures,
forwards and swaps. These instruments involve risks different from, and in
certain cases, greater than the risks presented by more traditional
investments. These risks are fully discussed in the prospectus.
- -------------------------------------------------------------------------------
ALLIANCEBERNSTEIN TECHNOLOGY FUND o 5
INVESTMENT RESULTS
CLASS B SHARE AVERAGE ANNUAL RETURNS AS OF JANUARY 31, 2004
- -------------------------------------------------------------------------------
Without Sales Charge With Sales Charge
1 Year 48.08% 44.08%
5 Years -6.99% -6.99%
10 Years(a) 10.80% 10.80%
CLASS B SHARE SEC AVERAGE ANNUAL RETURNS (WITH SALES CHARGES)
AS OF THE MOST RECENT QUARTER-END (DECEMBER 31, 2003)
- -------------------------------------------------------------------------------
1 Year 36.61%
5 Years -5.67%
10 Years(a) 10.83%
The performance shown above represents past performance and does not guarantee
future results. Current performance may be lower or higher than the performance
information shown. The Fund's investment results are for the periods shown and
are based on the Fund's Class B shares at net asset value (NAV). All fees and
expenses related to the operation of the Fund have been deducted. NAV returns
do not reflect sales charges; if sales charges were reflected, the Fund's
quoted performance would be lower. Fund returns do not reflect the deduction of
taxes that a shareholder would pay on fund distributions or the redemption of
fund shares. Fund returns reflect the reinvestment of dividends and/or capital
gains distributions in additional shares.
SEC returns reflect the applicable contingent deferred sales charge for Class B
shares (4% year 1, 3% year 2, 2% year 3, 1% year 4).
The investment return and principal value of an investment in the Fund will
fluctuate as the prices of the individual securities in which it invests
fluctuate, so that shares, when redeemed, may be worth more or less than their
original cost. You should consider the investment objectives, risks, charges
and expenses of the Fund carefully before investing. For a free copy of the
Fund's prospectus, which contains this and other information, visit our web
site at www.alliancebernstein.com or call your financial advisor or Alliance at
(800) 227-4618. Please read the prospectus carefully before you invest. You may
obtain current month-end performance information from our web site at
www.alliancebernstein.com (click on Investors/Products & Services/Mutual Funds).
A Word About Risk: The Fund concentrates its investments in technology-related
stocks and may therefore be subject to greater risks and volatility than a fund
with a more diversified portfolio. Technology stocks, especially those of
smaller, less-seasoned companies, tend to be more volatile than the overall
stock market. The Fund can invest in foreign securities. Foreign markets can be
more volatile than the U.S. market due to increased risks of adverse issuer,
political, regulatory, market or economic developments. In addition, because
the Fund will invest in foreign currency denominated securities, fluctuations
in the value of the Fund's investments may be magnified by changes in foreign
exchange rates. While the Fund invests principally in common stocks and other
equity securities, in order to achieve its investment objectives, the Fund may
at times use certain types of investment derivatives, such as options, futures,
forwards and swaps. These instruments involve risks different from, and in
certain cases, greater than the risks presented by more traditional
investments. These risks are fully discussed in the prospectus.
(a) Assumes conversion of Class B shares into Class A shares after eight years.
- -------------------------------------------------------------------------------
6 o ALLIANCEBERNSTEIN TECHNOLOGY FUND
INVESTMENT RESULTS
CLASS C SHARE AVERAGE ANNUAL RETURNS AS OF JANUARY 31, 2004
- -------------------------------------------------------------------------------
Without Sales Charge With Sales Charge
1 Year 48.11% 47.11%
5 Years -6.98% -6.98%
10 Years 10.63% 10.63%
CLASS C SHARE SEC AVERAGE ANNUAL RETURNS (WITH SALES CHARGES)
AS OF THE MOST RECENT QUARTER-END (DECEMBER 31, 2003)
- -------------------------------------------------------------------------------
1 Year 39.64%
5 Years -5.66%
10 Years 10.66%
The performance shown above represents past performance and does not guarantee
future results. Current performance may be lower or higher than the performance
information shown. The Fund's investment results are for the periods shown and
are based on the Fund's Class C shares at net asset value (NAV). All fees and
expenses related to the operation of the Fund have been deducted. NAV returns
do not reflect sales charges; if sales charges were reflected, the Fund's
quoted performance would be lower. Fund returns do not reflect the deduction of
taxes that a shareholder would pay on fund distributions or the redemption of
fund shares. Fund returns reflect the reinvestment of dividends and/or capital
gains distributions in additional shares.
SEC returns reflect the applicable contingent deferred sales charge for Class C
shares (1% year 1).
The investment return and principal value of an investment in the Fund will
fluctuate as the prices of the individual securities in which it invests
fluctuate, so that shares, when redeemed, may be worth more or less than their
original cost. You should consider the investment objectives, risks, charges
and expenses of the Fund carefully before investing. For a free copy of the
Fund's prospectus, which contains this and other information, visit our web
site at www.alliancebernstein.com or call your financial advisor or Alliance at
(800) 227-4618. Please read the prospectus carefully before you invest. You may
obtain current month-end performance information from our web site at
www.alliancebernstein.com (click on Investors/Products & Services/Mutual Funds).
A Word About Risk: The Fund concentrates its investments in technology-related
stocks and may therefore be subject to greater risks and volatility than a fund
with a more diversified portfolio. Technology stocks, especially those of
smaller, less-seasoned companies, tend to be more volatile than the overall
stock market. The Fund can invest in foreign securities. Foreign markets can be
more volatile than the U.S. market due to increased risks of adverse issuer,
political, regulatory, market or economic developments. In addition, because
the Fund will invest in foreign currency denominated securities, fluctuations
in the value of the Fund's investments may be magnified by changes in foreign
exchange rates. While the Fund invests principally in common stocks and other
equity securities, in order to achieve its investment objectives, the Fund may
at times use certain types of investment derivatives, such as options, futures,
forwards and swaps. These instruments involve risks different from, and in
certain cases, greater than the risks presented by more traditional
investments. These risks are fully discussed in the prospectus.
- -------------------------------------------------------------------------------
ALLIANCEBERNSTEIN TECHNOLOGY FUND o 7
TEN LARGEST HOLDINGS
January 31, 2004 (unaudited)
Percent of
Company Value Net Assets
- -------------------------------------------------------------------------------
Microsoft Corp. $ 184,284,485 5.4%
Intel Corp. 143,997,480 4.2
Cisco Systems, Inc. 131,255,006 3.9
Dell, Inc. 120,276,119 3.6
QUALCOMM, Inc. 99,953,699 3.0
Sanmina Corp. 86,786,889 2.6
Juniper Networks, Inc. 86,698,890 2.5
Vodafone Group Plc (ADR)
(United Kingdom) 76,640,589 2.3
eBay, Inc. 74,785,371 2.2
Yahoo!, Inc. 74,210,400 2.2
$1,078,888,928 31.9%
- -------------------------------------------------------------------------------
8 o ALLIANCEBERNSTEIN TECHNOLOGY FUND
PORTFOLIO OF INVESTMENTS
January 31, 2004 (unaudited)
Company Shares Value
- -------------------------------------------------------------------------------
COMMON STOCKS & OTHER INVESTMENTS-97.3%
Technology-88.4%
Communication Equipment-15.9%
3Com Corp.(a) 3,996,400 $ 30,772,280
Alcatel, SA (France)(a) 4,187,900 69,268,906
Cisco Systems, Inc.(a) 5,119,150 131,255,006
Corning, Inc.(a) 3,124,800 40,372,416
Juniper Networks, Inc.(a) 3,001,000 86,698,890
Motorola, Inc. 2,389,600 39,619,568
Nokia Corp. (ADR) (Finland) 1,946,700 40,218,822
QUALCOMM, Inc. 1,710,950 99,953,699
------------
538,159,587
Computer Hardware/Storage-9.6%
Agilent Technologies, Inc.(a) 1,963,800 72,385,668
Dell, Inc.(a) 3,593,550 120,276,119
EMC Corp.(a) 3,287,634 46,158,381
Hewlett-Packard Co. 1,419,800 33,777,042
Lexmark International, Inc.(a) 461,600 38,262,024
Western Digital Corp.(a) 1,268,200 12,973,686
------------
323,832,920
Computer Services-6.1%
Affiliated Computer Services, Inc. Cl.A(a) 709,700 39,352,865
BearingPoint, Inc.(a) 1,339,749 12,861,590
Computer Sciences Corp.(a) 990,850 44,241,453
First Data Corp. 927,300 36,313,068
Fiserv, Inc.(a) 1,239,050 46,290,908
SunGard Data Systems, Inc.(a) 896,400 27,904,932
------------
206,964,816
Computer Software-21.4%
BMC Software, Inc.(a) 1,356,400 26,992,360
Cognos, Inc. (Canada)(a) 965,100 29,165,322
Electronic Arts, Inc.(a) 1,133,000 53,092,380
Infosys Technologies, Ltd. (ADR) (India) 417,500 36,948,750
Macrovision Corp.(a) 1,741,350 42,140,670
Mercury Interactive Corp.(a) 1,300,300 61,036,082
Microsoft Corp. 6,664,900 184,284,485
Oracle Corp.(a) 5,079,250 70,144,442
PeopleSoft, Inc.(a) 753,500 16,237,925
SAP AG (ADR) (Germany) 1,762,600 73,077,396
Symantec Corp.(a) 1,516,900 58,855,720
TIBCO Software, Inc.(a) 1,399,900 11,003,214
VERITAS Software Corp.(a) 1,902,100 62,503,006
------------
725,481,752
- -------------------------------------------------------------------------------
ALLIANCEBERNSTEIN TECHNOLOGY FUND o 9
Company Shares Value
- -------------------------------------------------------------------------------
Contract Manufacturing-5.6%
Asustek Computer Deutsche Bank warrants,
expiring 4/18/05 (Taiwan)(a)(b) 11,163,100 $ 29,481,747
Flextronics International, Ltd.
(Singapore)(a) 3,777,550 71,773,450
Sanmina Corp.(a) 6,619,900 86,786,889
------------
188,042,086
Internet Infrastructure-2.2%
eBay, Inc.(a) 1,115,700 74,785,371
Internet Media-2.2%
Yahoo!, Inc.(a) 1,584,000 74,210,400
Semi-Conductor Capital Equipment-3.8%
Applied Materials, Inc.(a) 2,209,200 48,072,192
ASM Lithography Holding N.V.
(Netherlands)(a) 1,746,000 33,627,960
KLA-Tencor Corp.(a) 578,250 33,000,728
Lam Research Corp.(a) 512,000 13,696,000
------------
128,396,880
Semi-Conductor Components-21.4%
Agere Systems, Inc. Cl.A(a) 4,257,100 16,389,835
Altera Corp.(a) 2,202,350 49,310,617
Broadcom Corp. Cl.A(a) 991,500 40,244,985
Fairchild Semiconductor International,
Inc.(a) 1,402,700 34,366,150
Intel Corp. 4,705,800 143,997,480
Linear Technology Corp. 1,219,000 48,760,000
Marvell Technology Group, Ltd. (Bermuda)(a) 1,608,450 66,911,520
Maxim Integrated Products, Inc. 980,350 50,144,902
Samsung Electronics Co., Ltd. (GDR)
(South Korea)(b) 318,001 70,516,722
SanDisk Corp.(a) 659,100 35,881,404
Taiwan Semiconductor Manufacturing Co., Ltd.
ABN Amro Bank warrants,
expiring 01/14/05 (Taiwan)(a)(b) 18,564,780 36,684,005
Taiwan Semiconductor Manufacturing Co., Ltd.
Merril Lynch International & Co. warrants,
expiring 11/21/05 (Taiwan)(a)(b) 4,100,000 8,733,000
Texas Instruments, Inc. 774,200 24,271,170
United Microelectronics Corp. (ADR) (Taiwan) 7,751,000 41,932,910
Vishay Intertechnology, Inc.(a) 1,599,100 37,163,084
Xilinx, Inc.(a) 439,200 18,406,872
------------
723,714,656
Miscellaneous-0.2%
Maxtor Corp.(a) 658,900 6,094,825
------------
2,989,683,293
- -------------------------------------------------------------------------------
10 o ALLIANCEBERNSTEIN TECHNOLOGY FUND
Shares or
Principal
Amount
Company (000) Value
- -------------------------------------------------------------------------------
Consumer Services-6.0%
Broadcasting & Cable-3.7%
Comcast Corp. Cl.A(a) 976,585 $ 33,321,080
The News Corp, Ltd., pfd. (ADR) (Australia) 1,480,700 47,471,242
Viacom, Inc. Cl.B 1,097,300 44,221,190
------------
125,013,512
Cellular Communications-2.3%
Vodafone Group Plc (ADR) (United Kingdom) 2,993,773 76,640,589
------------
201,654,101
Capital Goods-2.9%
Electrical Equipment-1.5%
Hon Hai Precision Industry Co., Ltd.
Citigroup Global Markets warrants,
expiring 01/17/07 (Taiwan)(a)(b) 10,849,401 50,124,233
Miscellaneous-1.4%
KEMET Corp.(a) 750,700 11,410,640
Nitto Denko Corp. (Japan) 724,900 38,284,198
------------
49,694,838
------------
99,819,071
Total Common Stocks & Other Investments
(cost $2,374,361,911) 3,291,156,465
SHORT-TERM INVESTMENT-2.6%
Time Deposit-2.6%
State Street Euro Dollar
0.50%, 2/02/04
(cost $86,365,000) $ 86,365 86,365,000
Total Investments Before Security Lending
Collateral-99.9%
(cost $2,460,726,911) 3,377,521,465
INVESTMENT OF CASH COLLATERAL FOR
SECURITIES LOANED*-27.6%
Short-Term Investments-
American International Group
1.25%, 5/10/04 13,000 13,516,172
Bayerische Landesbank
1.12%, 9/30/04 5,000 5,002,991
CC USA Prime
1.06%, 6/14/04-7/07/04 125,000 124,997,500
Chase Manhattan
1.14%, 4/15/04 10,592 11,106,518
Citigroup
1.59%, 02/06/04 11,195 11,954,973
CMSERA
1.11%, 2/04/04-2/06/04 75,741 75,548,548
Deutsche Bank
1.09%-1.20%, 4/06/04-10/14/04 27,500 27,501,804
- -------------------------------------------------------------------------------
ALLIANCEBERNSTEIN TECHNOLOGY FUND o 11
Shares or
Principal
Amount
Company (000) Value
- -------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp.
1.14%-1.62%, 8/10/04-12/01/05 $ 228,800 $ 228,800,000
General Electric
1.08%-1.40%, 3/25/04-4/23/04 47,691 49,208,286
Gotham Funding
1.08%, 2/10/04-2/19/04 125,335 125,225,691
Household Finance
1.40%, 3/11/04 6,000 6,098,032
LB Baden-Wuertenberg
1.22%, 4/15/04 24,330 26,044,353
Morgan Stanley
1.08%-1.13%, 3/08/04-6/08/04 70,000 70,000,000
Sigma Finance
1.07%, 3/29/04 25,000 24,998,750
Wells Fargo
1.20%, 7/15/04 12,000 12,672,958
------------
812,676,576
UBS Private Money Market Fund, LLC,
1.02% 121,847,079 121,847,079
Total Investment of Cash Collateral for
Securities Loaned
(cost $934,523,655) 934,523,655
Total Investments-127.5%
(cost $3,395,250,566) 4,312,045,120
Other assets less liabilities-(27.5%) (929,617,605)
Net Assets-100% $3,382,427,515
* See Note E for securities lending information.
(a) Non-income producing security.
(b) Security is exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At January 31, 2004,
the aggregate market value of these securities amounted to $195,539,707 or 5.8%
of net assets.
Glossary of Terms:
ADR - American Depositary Receipt.
GDR - Global Depositary Receipt.
See notes to financial statements.
- -------------------------------------------------------------------------------
12 o ALLIANCEBERNSTEIN TECHNOLOGY FUND
STATEMENT OF ASSETS & LIABILITIES
January 31, 2004 (unaudited)
Assets
Investments in securities, at value
(cost $3,395,250,566--including investment of
cash collateral for securities loaned of $934,523,655) $4,312,045,120(a)
Cash 398
Foreign cash, at value (cost $19,314,859) 19,245,065
Receivable for investment securities sold 88,728,889
Receivable for capital stock sold 1,232,629
Dividends and interest receivable 648,451
Total assets 4,421,900,552
Liabilities
Payable for collateral on securities loaned 934,523,655
Payable for investment securities purchased 85,780,165
Advisory fee payable 7,687,372
Payable for capital stock redeemed 6,527,279
Distribution fee payable 717,509
Accrued expenses and other liabilities 4,237,057
Total liabilities 1,039,473,037
Net Assets $3,382,427,515
Composition of Net Assets
Capital stock, at par $ 628,552
Additional paid-in capital 5,750,976,791
Accumulated net investment loss (32,840,896)
Accumulated net realized loss on investment and
foreign currency transactions (3,253,061,692)
Net unrealized appreciation of investments and
foreign currency denominated assets and liabilities 916,724,760
$3,382,427,515
Calculation of Maximum Offering Price
Class A Shares
Net asset value and redemption price per share
($1,357,490,196/23,947,161 shares of capital stock
issued and outstanding) $56.69
Sales charge--4.25% of public offering price 2.52
Maximum offering price $59.21
Class B Shares
Net asset value and offering price per share
($1,512,429,189/29,215,057 shares of capital stock
issued and outstanding) $51.77
Class C Shares
Net asset value and offering price per share
($414,311,899/8,001,160 shares of capital stock
issued and outstanding) $51.78
Class R Shares
Net asset value and offering price per share
($10,460/184.604 shares of capital stock
issued and outstanding) $56.66
Advisor Class Shares
Net asset value, redemption and offering price per share
($98,185,771/1,691,615 shares of capital stock
issued and outstanding) $58.04
(a) Includes securities on loan with a value of $903,855,992 (see Note E).
See notes to financial statements.
- -------------------------------------------------------------------------------
ALLIANCEBERNSTEIN TECHNOLOGY FUND o 13
STATEMENT OF OPERATIONS
Six Months Ended January 31, 2004 (unaudited)
Investment Income
Dividends (net of foreign taxes withheld
of $407,081) $ 3,421,542
Securities lending income 608,099
Interest 198,264 $ 4,227,905
Expenses
Advisory fee 17,064,393
Distribution fee--Class A 1,973,989
Distribution fee--Class B 7,643,106
Distribution fee--Class C 2,094,577
Distribution fee--Class R 13
Transfer agency 8,449,263
Printing 603,272
Custodian 288,217
Audit and legal 91,627
Administrative 72,500
Registration 60,675
Directors' fees 55,067
Miscellaneous 64,367
Total expenses 38,461,066
Less: expenses waived by the Adviser
and the Transfer Agent (see Note B) (1,391,026)
Less: expense offset arrangement
(see Note B) (1,239)
Net expenses 37,068,801
Net investment loss (32,840,896)
Realized and Unrealized Gain (Loss)
on Investment and Foreign Currency
Transactions
Net realized gain (loss) on:
Investment transactions 424,466,591
Foreign currency transactions (391,554)
Net change in unrealized
appreciation/depreciation of:
Investments 189,046,988
Foreign currency denominated assets
and liabilities (69,794)
Net gain on investment and foreign
currency transactions 613,052,231
Net Increase in Net Assets
from Operations $580,211,335
See notes to financial statements.
- -------------------------------------------------------------------------------
14 o ALLIANCEBERNSTEIN TECHNOLOGY FUND
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended December 1, Year Ended
January 31, 2004 2002 to November 30,
(unaudited) July 31, 2003* 2002
---------------- ---------------- ----------------
Increase (Decrease)
in Net Assets from
Operations
Net investment loss $ (32,840,896) $ (45,820,513) $ (91,576,655)
Net realized gain (loss) on
investment and foreign
currency transactions 424,075,037 (156,606,266) (1,895,821,648)
Net change in unrealized
appreciation/depreciation
of investments and foreign
currency denominated
assets and liabilities 188,977,194 448,104,681 33,057,117
Net increase (decrease)
in net assets from
operations 580,211,335 245,677,902 (1,954,341,186)
Capital Stock
Transactions
Net decrease (327,708,072) (245,308,289) (1,002,096,652)
Total increase (decrease) 252,503,263 369,613 (2,956,437,838)
Net Assets
Beginning of period 3,129,924,252 3,129,554,639 6,085,992,477
End of period $ 3,382,427,515 $ 3,129,924,252 $ 3,129,554,639
* The Fund changed its fiscal year end from November 30 to July 31.
See notes to financial statements.
- -------------------------------------------------------------------------------
ALLIANCEBERNSTEIN TECHNOLOGY FUND o 15
NOTES TO FINANCIAL STATEMENTS
January 31, 2004 (unaudited)
NOTE A
Significant Accounting Policies
AllianceBernstein Technology Fund, Inc. (the "Fund") is registered under the
Investment Company Act of 1940 as a diversified, open-end management investment
company. The Fund offers Class A, Class B, Class C, Class R and Advisor Class
shares. Class A shares are sold with a front-end sales charge of up to 4.25%
for purchases not exceeding $1,000,000. With respect to purchases of $1,000,000
or more, Class A shares redeemed within one year of purchase may be subject to
a contingent deferred sales charge of 1%. Class B shares are currently sold
with a contingent deferred sales charge which declines from 4% to zero
depending on the period of time the shares are held. Class B shares will
automatically convert to Class A shares eight years after the end of the
calendar month of purchase. Class C shares are subject to a contingent deferred
sales charge of 1% on redemptions made within the first year after purchase.
Class R shares are sold without an initial or contingent deferred sales charge
and are offered to certain group retirement plans. Advisor Class shares are
sold without an initial or contingent deferred sales charge and are not subject
to ongoing distribution expenses. Advisor Class shares are offered to investors
participating in fee-based programs and to certain retirement plan accounts.
All five classes of shares have identical voting, dividend, liquidation and
other rights, except that each class bears different distribution expenses and
has exclusive voting rights with respect to its distribution plan. The
financial statements have been prepared in conformity with accounting
principles generally accepted in the United States which require management to
make certain estimates and assumptions that affect the reported amounts of
assets and liabilities in the financial statements and amounts of income and
expenses during the reporting period. Actual results could differ from those
estimates. Additional information about some of the items discussed in these
Notes to Financial Statements is contained in the Fund's Statement of
Additional Information, which is available upon request. The following is a
summary of significant accounting policies followed by the Fund.
1. Security Valuation
In accordance with Pricing Policies adopted by the Board of Directors of the
Fund (the "Pricing Policies") and applicable law, portfolio securities are
valued at current market value or at fair value. The Board of Directors has
delegated to Alliance Capital Mangement, 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
- -------------------------------------------------------------------------------
16 o ALLIANCEBERNSTEIN TECHNOLOGY FUND
fair value in accordance with the Pricing Policies. Securities listed on more
than one exchange are valued by reference to the principal exchange on which
the securities are traded; securities not listed on an exchange but traded on
The Nasdaq Stock Market, Inc. ("NASDAQ") are valued in accordance with the
NASDAQ Official Closing Price; listed put or call options are valued at the
last sale price. If there has been no sale on that day, such securities will be
valued at the closing bid prices on that day; open futures contracts and
options thereon are valued using the closing settlement price or, in the
absence of such a price, the most recent quoted bid price. If there are no
quotations available for the day of valuations, the last available closing
settlement price is used; securities traded in the over-the-counter market,
(but excluding securities traded on NASDAQ) are valued at the mean of the
current bid and asked prices as reported by the National Quotation Bureau or
other comparable sources; U.S. Government securities and other debt instruments
having 60 days or less remaining until maturity are valued at amortized cost if
their original maturity was 60 days or less, or by amortizing their fair value
as of the 61st day prior to maturity if their original term to maturity
exceeded 60 days; fixed-income securities, including mortgage backed and asset
backed securities, may be valued on the basis of prices provided by a pricing
service or at a price obtained from one or more of the major broker/dealers. In
cases where broker/dealer quotes are obtained, the Pricing Policies provide
that the Adviser may establish procedures whereby changes in market yields or
spreads are used to adjust, on a daily basis, a recently obtained quoted price
on a security; and OTC and other derivatives are valued on the basis of a
quoted bid price or spread from a major broker/dealer in such security.
Securities for which market quotations are not readily available are valued at
fair value in accordance with the Pricing Policies.
2. Currency Translation
Assets and liabilities denominated in foreign currencies and commitments under
forward exchange currency contracts are translated into U.S. dollars at the
mean of the quoted bid and asked prices of such currencies against the U.S.
dollar. Purchases and sales of portfolio securities are translated into U.S.
dollars at the rates of exchange prevailing when such securities were acquired
or sold. Income and expenses are translated into U.S. dollars at rates of
exchange prevailing when accrued.
Net realized gain or loss on foreign currency transactions represents foreign
exchange gains and losses from sales and maturities of foreign fixed income
investments, foreign currency exchange contracts, holding of foreign
currencies, currency gains or losses realized between the trade and settlement
dates on foreign investment transactions, and the difference between the
amounts of dividends, interest and foreign withholding taxes recorded on the
Fund's books and the U.S. dollar equivalent amounts actually received or paid.
Net unrealized currency gains and losses from valuing foreign currency
denominated assets and liabilities at period end exchange rates are reflected
as a component of net unre-
- -------------------------------------------------------------------------------
ALLIANCEBERNSTEIN TECHNOLOGY FUND o 17
alized appreciation or depreciation of investments and foreign currency
denominated assets and liabilities.
3. Taxes
It is the Fund's policy to meet the requirements of the Internal Revenue Code
applicable to regulated investment companies and to distribute all of its
investment company taxable income and net realized gains, if any, to
shareholders. Therefore, no provisions for federal income or excise taxes are
required.
4. Investment Income and Investment Transactions
Dividend income is recorded on the ex-dividend date. Interest income is accrued
daily. Investment transactions are accounted for on the trade date the
securities are purchased or sold. Investment gains and losses are determined on
the identified cost basis. The Fund accretes discounts as adjustments to
interest income.
5. Income and Expenses
All income earned and expenses incurred by the Fund are borne on a pro-rata
basis by each outstanding class of shares, based on the proportionate interest
in the Fund represented by the net assets of such class, except that the Fund's
Class B and Class C shares bear higher distribution and transfer agent fees
than Class A, Class R and Advisor Class shares. Advisor Class shares have no
distribution fees.
6. Dividends and Distributions
Dividends and distributions to shareholders, if any, are recorded on the
ex-dividend date. Income dividends and capital gain distributions are
determined in accordance with federal tax regulations and may differ from those
determined in accordance with accounting principles generally accepted in the
United States. To the extent these differences are permanent, such amounts are
reclassified within the capital accounts based on their federal tax basis
treatment; temporary differences do not require such reclassification.
7. Change of Fiscal Year End
The Fund changed its fiscal year end from November 30 to July 31. Accordingly,
the statement of changes in net assets and financial highlights include the
period from December 1, 2002 to July 31, 2003.
NOTE B
Advisory Fee and Other Transactions With Affiliates
Under the terms of an investment advisory agreement, the Fund pays the Adviser
a quarterly advisory fee equal to the following percentages of the value of the
Fund's aggregate net assets at the close of business on the last business day
of the previous quarter: .25 of 1.00% of the first $10 billion, .25 of .975% of
the next $2.5 billion, .25 of .95% of the next $2.5 billion, .25 of .925% of
the next $2.5 billion, .25 of .90% of the next $2.5 billion, .25 of .875% of
the next $2.5 billion
- -------------------------------------------------------------------------------
18 o ALLIANCEBERNSTEIN TECHNOLOGY FUND
and .25 of .85% of the net assets in excess of $22.5 billion. Such fee is
accrued daily and paid quarterly.
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. For the six months ended January
31, 2004 such waiver amounted to $866,452. 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.
Pursuant to the advisory agreement, the Fund paid $72,500 to the Adviser
representing the cost of certain legal and accounting services provided to the
Fund by the Adviser for the six months ended January 31, 2004.
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 $4,662,285 for the six months ended January
31, 2004. In addition, AGIS agreed to waive a portion of its fees for the six
months ended January 31, 2004. Such waiver amounted to $524,574.
For the six months ended January 31, 2004 the Fund's expenses were reduced by
$1,239 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 $24,419 from the sales of Class A shares and
received $26,832, $876,690, and $10,388 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 January 31, 2004.
Brokerage commissions paid on investment transactions for the six months ended
January 31, 2004 amounted to $6,963,624, of which $96,240 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 the Fund's average daily net assets
attributable to Class A shares and 1% of the Fund's average daily net assets
attributable to both
- -------------------------------------------------------------------------------
ALLIANCEBERNSTEIN TECHNOLOGY FUND o 19
Class B and Class C shares and .50% of the Fund's average daily net assets
attributable to Class R 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 $84,614,143 and
$6,994,977 for Class B and Class C shares, respectively; such costs may be
recovered from the Fund in future periods so long as the Agreement is in
effect. In accordance with the Agreement, there is no provision for recovery of
unreimbursed distribution costs incurred by the Distributor beyond the current
fiscal year for Class A shares. The Agreement also provides that the Adviser
may use its own resources to finance the distribution of the Fund's shares.
NOTE D
Investment Transactions
Purchases and sales of investment securities (excluding short-term investments)
for the period ended January 31, 2004, were as follows:
Purchases Sales
--------------- ----------------
Investment securities (excluding
U.S. government securities) $ 1,327,816,816 $ 1,728,827,280
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 $ 962,839,600
Gross unrealized depreciation (46,045,046)
Net unrealized appreciation $ 916,794,554
Option Transactions
For hedging and investment purposes, the Fund may purchase and write (sell) put
and call options on U.S. and foreign government securities and foreign
currencies that are traded on U.S. and foreign securities exchanges and
over-the-counter markets.
The risk associated with purchasing an option is that the Fund pays a premium
whether or not the option is exercised. Additionally, the Fund bears the risk
of loss of premium and change in market value should the counterparty not
perform under the contract. Put and call options purchased are accounted for in
the same manner as portfolio securities. The cost of securities acquired
through the exercise of call options is increased by premiums paid. The
proceeds from securities sold through the exercise of put options are decreased
by the premiums paid.
- -------------------------------------------------------------------------------
20 o ALLIANCEBERNSTEIN TECHNOLOGY FUND
When the Fund writes an option, the premium received by the Fund is recorded as
a liability and is subsequently adjusted to the current market value of the
option written. Premiums received from written options which expire unexercised
are recorded by the Fund on the expiration date as realized gains from options
written. The difference between the premium received and the amount paid on
effecting a closing purchase transaction, including brokerage commissions, is
also treated as a realized gain, or if the premium received is less than the
amount paid for the closing purchase transaction, as a realized loss. If a call
option is exercised, the premium received is added to the proceeds from the
sale of the underlying security or currency in determining whether the Fund has
realized a gain or loss. If a put option is exercised, the premium received
reduces the cost basis of the security or currency purchased by the Fund. In
writing an option, the Fund bears the market risk of an unfavorable change in
the price of the security or currency underlying the written option. Exercise
of an option written by the Fund could result in the Fund selling or buying a
security or currency at a price different from the current market value.
NOTE E
Securities Lending
The Fund has entered into a securities lending agreement with AG Edwards &
Sons, Inc. (the "Lending Agent"). Under the terms of the agreement, the Lending
Agent, on behalf of the Fund, administers the lending of portfolio securities
to certain broker-dealers. In return, the Fund receives fee income from the
lending transactions or it retains a portion of interest on the investment of
any cash received as collateral. The Fund also continues to receive dividends
or interest on the securities loaned. Unrealized gain or loss on the value of
the securities loaned that may occur during the term of the loan will be
reflected in the accounts of the Fund. All loans are continuously secured by
collateral exceeding the value of the securities loaned. All collateral
consists of either cash or U.S. government securities. The Lending Agent may
invest the cash collateral received in accordance with the investment
restrictions of the Fund in one or more of the following investments: U.S.
government or U.S. government agency obligations, bank obligations, corporate
debt obligations, asset-backed securities, investment funds, structured
products, repurchase agreements and an eligible money market fund. The Lending
Agent will indemnify the Fund for any loss resulting from a borrower's failure
to return a loaned security when due. As of January 31, 2004, the Fund had
loaned securities with a value of $903,855,992 and received cash collateral
which was invested in short-term securities valued at $934,523,655 as included
in the accompanying portfolio of investments. For the six months ended January
31, 2004, the Fund earned fee income of $608,099 which is included in the
accompanying statement of operations.
- -------------------------------------------------------------------------------
ALLIANCEBERNSTEIN TECHNOLOGY FUND o 21
NOTE F
Capital Stock
There are 15,000,000,000 shares of $0.01 par value capital stock authorized,
divided into five classes, designated Class A, Class B, Class C, Advisor Class
and Class R shares. Each class consists of 3,000,000,000 authorized shares.
Transactions in capital stock were as follows:
Shares
--------------------------------------------------------------
Six Months
Ended December 1, 2002 Year Ended
January 31, 2004 to July 31, November 30,
(unaudited) 2003(a) 2002
- --------------------------------------------------------------------------------------------------
Class A
Shares sold 3,157,140 74,462,637 241,078,290
Shares converted from Class B 1,021,590 1,034,592 900,354
Shares redeemed (5,239,868) (75,715,354) (245,484,494)
Net decrease (1,061,138) (218,125) (3,505,850)
Class B
Shares sold 927,356 1,670,161 3,483,088
Shares converted to Class A (1,092,708) (1,126,550) (963,780)
Shares redeemed (4,037,714) (5,542,690) (13,771,576)
Net decrease (4,203,066) (4,999,079) (11,252,268)
Class C
Shares sold 334,290 1,677,962 4,504,111
Shares redeemed (1,447,207) (2,812,996) (7,675,024)
Net decrease (1,112,917) (1,135,034) (3,170,913)
Advisor Class
Shares sold 236,838 565,245 934,323
Shares redeemed (473,194) (508,743) (2,451,696)
Net increase (decrease) (236,356) 56,502 (1,517,373)
November 3,
2003(b) to
January 31, 2004
(unaudited)
-----------------
Class R
Shares sold 185
Net increase 185
(a) The Fund changed its fiscal year end from November 30 to July 31.
(b) Commencement of distributions.
- -------------------------------------------------------------------------------
22 o ALLIANCEBERNSTEIN TECHNOLOGY FUND
Amount
--------------------------------------------------------------
Six Months Ended December 1, 2002 Year Ended
January 31, 2004 to July 31, November 30,
(unaudited) 2003(a) 2002
- --------------------------------------------------------------------------------------------------
Class A
Shares sold $ 163,193,943 $ 2,939,404,972 $12,214,506,149
Shares converted
from Class B 53,973,283 43,501,551 44,799,543
Shares redeemed (274,950,674) (3,001,651,818) (12,505,261,596)
Net decrease $ (57,783,448) $ (18,745,295) $ (245,955,904)
Class B
Shares sold $ 44,636,649 $ 63,313,428 $ 173,936,751
Shares converted
to Class A (53,973,283) (43,501,551) (44,799,543)
Shares redeemed (193,464,099) (206,573,042) (647,747,503)
Net decrease $ (202,800,733) $ (186,761,165) $ (518,610,295)
Class C
Shares sold $16,029,592 $61,825,025 $222,615,217
Shares redeemed (69,978,347) (104,090,061) (374,107,034)
Net decrease $ (53,948,755) $ (42,265,036) $ (151,491,817)
Advisor Class
Shares sold $ 12,819,551 $ 23,824,296 $ 53,921,257
Shares redeemed (26,004,687) (21,361,089) (139,959,893)
Net increase (decrease) $ (13,185,136) $ 2,463,207 $ (86,038,636)
November 3,
2003(b) to
January 31, 2004
(unaudited)
-----------------
Class R
Shares sold $ 10,000
Net increase $ 10,000
(a) The Fund changed its fiscal year end from November 30 to July 31.
(b) Commencement of distributions.
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 January 31, 2004.
- -------------------------------------------------------------------------------
ALLIANCEBERNSTEIN TECHNOLOGY FUND o 23
NOTE H
Components of Accumulated Earnings (Deficit)
The tax character of distributions to be paid for the year ending July 31, 2004
will be determined at the end of the current fiscal year. As of July 31, 2003,
the components of accumulated earnings/(deficit) on a tax basis were as follows:
Accumulated capital and other losses $ (3,273,928,172)(a)
Unrealized appreciation/(depreciation) 324,539,009(b)
Total accumulated earnings/(deficit) $ (2,949,389,163)
(a) On July 31, 2003, the Fund had a net capital loss carryforward for federal
income tax purposes of $3,273,928,172, of which $1,492,308,784 expires in the
year 2009, $1,330,398,762 expires in the year 2010, and $451,220,626 expires in
the year 2011. To the extent future capital gains are offset by capital loss
carryforwards, such gains will not be distributed.
(b) The differences between book-basis and tax-basis unrealized
appreciation/(depreciation) are attributable primarily to the tax deferral of
losses on wash sales.
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
- -------------------------------------------------------------------------------
24 o ALLIANCEBERNSTEIN TECHNOLOGY FUND
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.
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.
- -------------------------------------------------------------------------------
ALLIANCEBERNSTEIN TECHNOLOGY FUND o 25
Since October 2, 2003, approximately forty 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.
- -------------------------------------------------------------------------------
26 o ALLIANCEBERNSTEIN TECHNOLOGY FUND
FINANCIAL HIGHLIGHTS
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
Class A
--------------------------------------------------------------------------------------
Six Months
Ended December 1,
January 31, 2002 to Year Ended November 30,
2004 July 31, -------------------------------------------------------
(unaudited) 2003(a) 2002 2001 2000 1999 1998
--------------------------------------------------------------------------------------
Net asset value,
beginning of period $ 47.44 $ 43.48 $ 67.05 $ 95.32 $111.46 $ 68.60 $ 54.44
Income From Investment
Operations
Net investment loss(b) (.41)(c) (.54) (.87) (.82) (1.35) (.99) (.68)
Net realized and unrealized
gain (loss) on investment
and foreign currency
transactions 9.66 4.50 (22.70) (21.17) (10.75) 49.02 15.42
Net increase (decrease)
in net asset value from
operations 9.25 3.96 (23.57) (21.99) (12.10) 48.03 14.74
Less: Distributions
Distributions from
net realized gain
on investment
transactions -0- -0- -0- (5.86) (4.04) (5.17) (.58)
Distributions in excess
of net realized gain
on investment
transactions -0- -0- -0- (.42) -0- -0- -0-
Total distributions -0- -0- -0- (6.28) (4.04) (5.17) (.58)
Net asset value,
end of period $ 56.69 $ 47.44 $ 43.48 $ 67.05 $ 95.32 $111.46 $ 68.60
Total Return
Total investment return
based on net asset
value(d) 19.50% 9.11% (35.15)% (24.90)% (11.48)% 74.67% 27.36%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted) $1,357,490 $1,186,488 $1,096,744 $1,926,473 $2,650,904 $2,167,060 $824,636
Ratio to average
net assets of:
Expenses,
net of waivers/
reimbursement 1.79%(e) 2.24%(e) 1.85% 1.58% 1.50% 1.68%(f) 1.66%(f)
Expenses,
before waivers/
reimbursement 1.85%(e) 2.24%(e) 1.85% 1.58% 1.50% 1.68%(f) 1.66%(f)
Net investment loss (1.52)%(c)(e) (1.95)%(e) (1.64)% (1.08)% (.98)% (1.11)% (1.13)%
Portfolio turnover rate 41% 127% 117% 55% 46% 54% 67%
See footnote summary on page 32.
- -------------------------------------------------------------------------------
ALLIANCEBERNSTEIN TECHNOLOGY FUND o 27
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
Class B
--------------------------------------------------------------------------------------
Six Months
Ended December 1,
January 31, 2002 to Year Ended November 30,
2004 July 31, -------------------------------------------------------
(unaudited) 2003(a) 2002 2001 2000 1999 1998
--------------------------------------------------------------------------------------
Net asset value,
beginning of period $ 43.49 $ 40.06 $ 62.27 $ 89.59 $105.73 $ 65.75 $ 52.58
Income From Investment
Operations
Net investment loss(b) (.55)(c) (.69) (1.16) (1.28) (2.17) (1.54) (1.08)
Net realized and unrealized
gain (loss) on investment
and foreign currency
transactions 8.83 4.12 (21.05) (19.76) (9.93) 46.69 14.83
Net increase (decrease)
in net asset value from
operations 8.28 3.43 (22.21) (21.04) (12.10) 45.15 13.75
Less: Distributions
Distributions from
net realized gain
on investment
transactions -0- -0- -0- (5.86) (4.04) (5.17) (.58)
Distributions in excess
of net realized gain
on investment
transactions -0- -0- -0- (.42) -0- -0- -0-
Total distributions -0- -0- -0- (6.28) (4.04) (5.17) (.58)
Net asset value,
end of period $ 51.77 $ 43.49 $ 40.06 $ 62.27 $ 89.59 $105.73 $ 65.75
Total Return
Total investment return
based on net asset
value(d) 19.04% 8.56% (35.67)% (25.46)% (12.12)% 73.44% 26.44%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted). $1,512,429 $1,453,453 $1,539,144 $3,092,947 $4,701,567 $3,922,584 $1,490,578
Ratio to average
net assets of:
Expenses,
net of waivers/
reimbursement 2.55%(e) 3.02%(e) 2.58% 2.31% 2.20% 2.39%(f) 2.39%(f)
Expenses,
before waivers/
reimbursement 2.62%(e) 3.02%(e) 2.58% 2.31% 2.20% 2.39%(f) 2.39%(f)
Net investment loss (2.29)%(c)(e) (2.73)%(e) (2.37)% (1.80)% (1.68)% (1.83)% (1.86)%
Portfolio turnover rate 41% 127% 117% 55% 46% 54% 67%
See footnote summary on page 32.
- -------------------------------------------------------------------------------
28 o ALLIANCEBERNSTEIN TECHNOLOGY FUND
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
Class C
--------------------------------------------------------------------------------------
Six Months
Ended December 1,
January 31, 2002 to Year Ended November 30,
2004 July 31, -------------------------------------------------------
(unaudited) 2003(a) 2002 2001 2000 1999 1998
--------------------------------------------------------------------------------------
Net asset value,
beginning of period $ 43.50 $ 40.07 $ 62.25 $ 89.55 $105.69 $ 65.74 $ 52.57
Income From Investment
Operations
Net investment loss(b) (.55)(c) (.68) (1.15) (1.28) (2.19) (1.57) (1.08)
Net realized and unrealized
gain (loss) on investment
and foreign currency
transactions 8.83 4.11 (21.03) (19.74) (9.91) 46.69 14.83
Net increase (decrease)
in net asset value from
operations 8.28 3.43 (22.18) (21.02) (12.10) 45.12 13.75
Less: Distributions
Distributions from
net realized gain
on investment
transactions -0- -0- -0- (5.86) (4.04) (5.17) (.58)
Distributions in excess
of net realized gain
on investment
transactions -0- -0- -0- (.42) -0- -0- -0-
Total distributions -0- -0- -0- (6.28) (4.04) (5.17) (.58)
Net asset value,
end of period $ 51.78 $ 43.50 $ 40.07 $ 62.25 $ 89.55 $105.69 $ 65.74
Total Return
Total investment return
based on net asset
value(d) 19.03% 8.56% (35.63)% (25.45)% (12.13)% 73.40% 26.44%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted) $414,312 $396,472 $410,649 $835,406 $1,252,765 $907,707 $271,320
Ratio to average
net assets of:
Expenses,
net of waivers/
reimbursement 2.53%(e) 3.01%(e) 2.55% 2.30% 2.21% 2.41%(f) 2.40%(f)
Expenses,
before waivers/
reimbursement 2.60%(e) 3.01%(e) 2.55% 2.30% 2.21% 2.41%(f) 2.40%(f)
Net investment loss (2.28)%(c)(e) (2.72)%(e) (2.34)% (1.80)% (1.69)% (1.85)% (1.87)%
Portfolio turnover rate 41% 127% 117% 55% 46% 54% 67%
See footnote summary on page 32.
- -------------------------------------------------------------------------------
ALLIANCEBERNSTEIN TECHNOLOGY FUND o 29
Selected Data For A Share Of Capital Stock Outstanding Throughout The Period
Class R
-----------
November 3,
2003(g) to
January 31,
2004
(unaudited)
-----------
Net asset value, beginning of period $ 54.17
Income From Investment Operations
Net investment loss(b) (.22)(c)
Net realized and unrealized gain on investment and
foreign currency transactions 2.71
Net increase in net asset value from operations 2.49
Less: Distributions
Net asset value, end of period $ 56.66
Total Return
Total investment return based on net asset value(c) 4.60%
Ratios/Supplemental Data
Net assets, end of period (000's omitted) $11
Ratio to average net assets of:
Expenses, net of waivers/reimbursements 1.83%(e)
Expenses, before waivers/reimbursements 1.90%(c)(e)
Net investment loss (1.61)%(c)(e)
Portfolio turnover rate 41%
See footnote summary on page 32.
- -------------------------------------------------------------------------------
30 o ALLIANCEBERNSTEIN TECHNOLOGY FUND
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
Advisor Class
--------------------------------------------------------------------------------------
Six Months
Ended December 1,
January 31, 2002 to Year Ended November 30,
2004 July 31, -------------------------------------------------------
(unaudited) 2003(a) 2002 2001 2000 1999 1998
--------------------------------------------------------------------------------------
Net asset value,
beginning of period $ 48.50 $ 44.36 $ 68.21 $ 96.60 $112.59 $ 69.04 $ 54.63
Income From Investment
Operations
Net investment loss(b) (.33)(c) (.46) (.72) (.60) (.91) (.68) (.50)
Net realized and unrealized
gain (loss) on investment
and foreign currency
transactions 9.87 4.60 (23.13) (21.51) (11.04) 49.40 15.49
Net increase (decrease)
in net asset value from
operations 9.54 4.14 (23.85) (22.11) (11.95) 48.72 14.99
Less: Distributions
Distributions from
net realized gain
on investment
transactions -0- -0- -0- (5.89) (4.04) (5.17) (.58)
Distributions in excess
of net realized gain
on investment
transactions -0- -0- -0- (.39) -0- -0- -0-
Total distributions -0- -0- -0- (6.28) (4.04) (5.17) (.58)
Net asset value,
end of period $ 58.04 $ 48.50 $ 44.36 $ 68.21 $ 96.60 $112.59 $ 69.04
Total Return
Total investment return
based on net asset
value(d) 19.67% 9.33% (34.96)% (24.68)% (11.22)% 75.22% 27.73%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted) $98,186 $93,511 $83,018 $231,167 $288,889 $330,404 $230,295
Ratio to average
net assets of:
Expenses,
net of waivers/
reimbursement 1.49%(e) 1.94%(e) 1.49% 1.27% 1.19% 1.35%(f) 1.37%(f)
Expenses,
before waivers/
reimbursement 1.56%(e) 1.94%(e) 1.49% 1.27% 1.19% 1.35%(f) 1.37%(f)
Net investment loss (1.23)%(c)(e) (1.65)%(e) (1.29)% (.78)% (.66)% (.78)% (.84)%
Portfolio turnover rate 41% 127% 117% 55% 46% 54% 67%
See footnote summary on page 32.
- -------------------------------------------------------------------------------
ALLIANCEBERNSTEIN TECHNOLOGY FUND o 31
(a) The Fund changed its fiscal year end from November 30 to July 31.
(b) Based on average shares outstanding.
(c) Net of expenses waived by the Adviser and the Transfer Agent.
(d) Total investment return is calculated assuming an initial investment made
at the net asset value at the beginning of the period, reinvestment of all
dividends and distributions at net asset value during the period, and
redemption on the last day of the period. Initial sales charges or contingent
deferred sales charges are not reflected in the calculation of total investment
return. Total return does not reflect the deduction of taxes that a shareholder
would pay on Fund distributions or the redemption of Fund shares. Total
investment return calculated for a period of less than one year is not
annualized.
(e) Annualized.
(f) Ratio reflects expenses grossed up for the expense offset arrangement with
the Transfer Agent. For the periods shown below, the net expense ratios were as
follows:
Year Ended November 30,
-----------------------
1999 1998
-----------------------
Class A 1.66% 1.65%
Class B 2.38% 2.38%
Class C 2.40% 2.38%
Advisor Class 1.34% 1.36%
(g) Commencement of distributions.
- -------------------------------------------------------------------------------
32 o ALLIANCEBERNSTEIN TECHNOLOGY FUND
BOARD OF DIRECTORS
William H. Foulk, Jr.(1), Chairman
Marc O. Mayer, President
Robert C. Alexander(1)
David H. Dievler(1)
D. James Guzy(1)
Marshall C. Turner, Jr.(1)
OFFICERS
Janet A. Walsh(2), Senior Vice President
Thomas J. Bardong, Vice President
Andrew J. Frank, Vice President
Mark R. Manley, Secretary
Mark D. Gersten, Treasurer & Chief Financial Officer
Vincent S. Noto, Controller
Custodian
State Street Bank & Trust Company
225 Franklin Street
Boston, MA 02110
Distributor
AllianceBernstein Investment
Research and Management, Inc.
1345 Avenue of the Americas
New York, NY 10105
Legal Counsel
Seward & Kissel LLP
One Battery Park Plaza
New York, NY 10004
Transfer Agent
Alliance Global Investor Services, Inc.
P.O. Box 786003
San Antonio, TX 78278-6003
Toll-Free (800) 221-5672
Independent Auditors
Ernst & Young LLP
5 Times Square
New York, NY 10036
(1) Member of the Audit Committee.
(2) Ms. Walsh is the person primarily responsible for the day-to-day
management of the Fund's investment portfolio.
- -------------------------------------------------------------------------------
ALLIANCEBERNSTEIN TECHNOLOGY FUND o 33
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
International Portfolio
Tax-Managed International 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
Global Research Growth 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.
# 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.
- -------------------------------------------------------------------------------
34 o ALLIANCEBERNSTEIN TECHNOLOGY FUND
NOTES
- -------------------------------------------------------------------------------
ALLIANCEBERNSTEIN TECHNOLOGY FUND o 35
NOTES
- -------------------------------------------------------------------------------
36 o ALLIANCEBERNSTEIN TECHNOLOGY FUND
ALLIANCEBERNSTEIN TECHNOLOGY FUND
1345 Avenue of the Americas
New York, NY 10105
(800) 221-5672
[LOGO] ALLIANCEBERNSTEIN(SM)
Investment Research and Management
(SM) This service mark used under license from
the owner, Alliance Capital Management L.P.
TECSR0104
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.
There have been no material changes to the procedures by which shareholders may
recommend nominees to the Fund's Board of Directors since the Fund last provided
disclosure in response to this item.
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 Technology Fund, Inc.
By: /s/Marc O. Mayer
--------------------------------
Marc O. Mayer
President
Date: March 31, 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: March 31, 2004
By: /s/Mark D. Gersten
-------------------------------
Mark D. Gersten
Treasurer and Chief Financial Officer
Date: March 31, 2004