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: 811-8776
AllianceBernstein All-Asia Investment 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: October 31, 2004
Date of reporting period: April 30, 2004
ITEM 1. REPORTS TO STOCKHOLDERS.
[LOGO] ALLIANCEBERNSTEIN (SM)
Investment Research and Management
AllianceBernstein All-Asia
Investment Fund
International
Regional
Semi-Annual Report--April 30, 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 your 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 performance information current to the most recent month-end by
visiting 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.
June 21, 2004
Semi-Annual Report
This report provides management's discussion of fund performance for
AllianceBernstein All-Asia Investment Fund (the "Fund") for the semi-annual
reporting period ended April 30, 2004.
Investment Objectives and Policies
This open-end fund seeks long-term capital appreciation. The Fund invests
primarily in equity securities issued by companies based in Asia and the
Pacific Region.
Investment Results
The following table shows the Fund's performance over the past six- and
12-month periods ended April 30, 2004. The table also provides performance data
for the Fund's benchmark, the Morgan Stanley Capital International (MSCI) All
Country (AC) Asia Pacific Free Index, as well as the Lipper Pacific Region
Funds Average (the "Lipper Average").
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INVESTMENT RESULTS*
Periods Ended April 30, 2004
Returns
6 Months 12 Months
AllianceBernstein
All-Asia Investment Fund
Class A 7.07% 43.10%
Class B 6.81% 41.86%
Class C 6.78% 42.01%
MSCI AC Asia Pacific Free
Index 10.77% 56.46%
Lipper Pacific Region Funds
Average 9.07% 53.51%
* 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 April 30, 2004. Performance
assumes reinvestment of distributions and does not account for taxes. 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 Advisor Class shares will vary due to
different expenses associated with this class. During the reporting period, the
Advisor waived a portion of its advisory fee or reimbursed the Fund for a
portion of its expenses to the extent necessary to limit the Fund's expenses to
3.00% for Class A, 3.70% for Class B, 3.70% for Class C and 2.70% for Advisor
Class. This waiver extends through the Fund's current fiscal year and may be
extended by the Advisor for additional one-year terms. Without the waiver, the
Fund's expenses would have been higher and its performance would have been
lower than that shown above. Past performance is no guarantee of future results.
The unmanaged Morgan Stanley Capital International (MSCI) All Country (AC) Asia
Pacific Free Index does not reflect fees and expenses associated with the
active management of a mutual fund portfolio. The Index is a free
float-adjusted market capitalization index that measures the performance of
both developed and emerging markets in 16 Asia Pacific region countries. The
unmanaged Lipper Pacific Region Funds Average (the "Lipper Average") consists
of funds that concentrate their investments in equity securities with primary
trading markets or operations concentrated in the Western Pacific Basin region
or a single country
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ALLIANCEBERNSTEIN ALL-ASIA INVESTMENT FUND o 1
within this region. The Lipper Average included 42 and 41 funds for the six-
and 12-month periods ended April 30, 2004, respectively. These funds have
generally similar investment objectives to AllianceBernstein All-Asia
Investment Fund, although some may have different investment policies and sales
and management fees. Investors cannot invest directly in an index or average,
and their results are not indicative of any specific investment, including
AllianceBernstein All-Asia Investment Fund.
Additional investment results appear on pages 4-6.
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The Fund underperformed its benchmark, the MSCI AC Asia Pacific Free Index, as
well as the Lipper Average for the six- and 12-month periods ended April 30,
2004.
For the six-month period ended April 30, 2004, the Fund's underperformance was
mainly attributable to the poor performance of its stock holdings in Korea,
China and Japan. In addition, the Fund's underweight positions in Indonesia
and Thailand and overweight cash position also contributed to its
underperformance. The Fund's underperformance was somewhat mitigated by the
superior performance of its stock holdings in India, Thailand and Hong Kong.
Performance during this period was also aided by the Fund's underweight
positions in Australia, China and Japan, and its overweight position in India.
For the 12-month period ended April 30, 2004, the Fund's underperformance was
attributable to the inferior performance of its stock holdings in Japan and
Korea. The Fund's underweight positions in Japan and Indonesia also hurt
performance. The Fund's stock holdings in India, Malaysia and Australia
contributed positively to the Fund's performance during this period.
Market Review and Investment Strategy
Generally speaking, the Asian markets performed well during the six- and
12-month periods ended April 30, 2004.
Overall, economic activity showed an improvement in most countries. A low
interest rate environment had a positive influence on consumers and businesses
in the region. As far as Japan is concerned, the two main reasons that
contributed to the sudden rise of the market were a substantially decreased
risk of systematic financial crisis and improved macro numbers, such as gross
domestic product.
During this time frame, the MSCI AC Asia Pacific Free Index outperformed the
MSCI World Free Index, as well as the MSCI Europe, Australasia and the Far East
Free Index.
During the six-month period under review, the outperformance of the MSCI AC
Asia Pacific Free Index was primarily attributable to the strength of the
Japanese, Indian and Korean equity markets, and to a lesser extent, the markets
in Southeast Asia. The strong performance of the Australian market in U.S.
dollar terms during this period was driven by the sharp appreciation of the
Australian dollar relative to the U.S. dollar.
The Fund was underweighted in Japan during both periods under review. However,
during the last six months, we increased the Fund's position in this country to
neutral. We also maintained the Fund's overweight positions in Korea and India.
The Fund did not have any exposure to stocks in New Zealand, Pakistan, Sri
Lanka and the Philippines during the last 12 months.
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2 o ALLIANCEBERNSTEIN ALL-ASIA INVESTMENT FUND
PORTFOLIO SUMMARY
April 30, 2004 (unaudited)
INCEPTION DATES
Class A Shares
11/28/94
Class B Shares
11/28/94
Class C Shares
11/28/94
PORTFOLIO STATISTICS
Net Assets ($mil): $28.6
SECTOR BREAKDOWN*
o 26.8% Finance
o 22.0% Technology
o 12.2% Consumer Services
o 9.3% Consumer Manufacturing
o 7.7% Capital Goods
o 4.9% Basic Industry
o 4.5% Energy
o 2.8% Multi-Industry
o 2.4% Health Care
o 1.7% Utilities
o 1.2% Transportation
o 4.5% Short-Term
[pie chart ommitted]
* The Fund's sector breakdown is expressed as a percentage of total investments
and may vary over time.
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ALLIANCEBERNSTEIN ALL-ASIA INVESTMENT FUND o 3
INVESTMENT RESULTS
CLASS A SHARE AVERAGE ANNUAL RETURNS AS OF APRIL 30, 2004
NAV Returns SEC Returns
1 Year 43.10% 37.12%
5 Years -2.65% -3.49%
Since Inception* -3.77% -4.21%
SEC AVERAGE ANNUAL RETURNS (WITH SALES CHARGES)
AS OF THE MOST RECENT QUARTER-END (MARCH 31, 2004)
1 Year 43.69%
5 Years -1.80%
Since Inception* -3.84%
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. You may obtain performance information current to the most
recent month-end by visiting www.alliancebernstein.com (click on
Investors/Products & Services/Mutual Funds). Returns are for Class A shares and
are annualized for periods longer than one year. 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. SEC returns reflect the 4.25% maximum front-end sales charge
for Class A shares. Performance assumes reinvestment of distributions and does
not account for taxes.
The investment return and principal value of an investment in the Fund will
fluctuate, so that your 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.
A Word About Risk: Substantially all of the Fund's assets will be invested in
foreign securities, which may magnify fluctuations due to changes in foreign
exchange rates and the possibility of substantial volatility due to political
and economic uncertainty in foreign countries. The Fund may invest all of its
assets within a single region, which may present greater risk than investment
in a more diversified fund. 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.
* Inception Date: 11/28/94.
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4 o ALLIANCEBERNSTEIN ALL-ASIA INVESTMENT FUND
INVESTMENT RESULTS
CLASS B SHARE AVERAGE ANNUAL RETURNS AS OF APRIL 30, 2004
NAV Returns SEC Returns
1 Year 41.86% 37.86%
5 Years- 3.38% -3.38%
Since Inception*(a) -4.36% -4.36%
SEC AVERAGE ANNUAL RETURNS (WITH SALES CHARGES)
AS OF THE MOST RECENT QUARTER-END (MARCH 31, 2004)
1 Year 44.70%
5 Years -1.73%
Since Inception*(a) -3.99%
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. You may obtain performance information current to the most
recent month-end by visiting www.alliancebernstein.com (click on
Investors/Products & Services/Mutual Funds). Returns are for Class B shares and
are annualized for periods longer than one year. 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. 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).
Performance assumes reinvestment of distributions and does not account for
taxes.
The investment return and principal value of an investment in the Fund will
fluctuate, so that your 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.
A Word About Risk: Substantially all of the Fund's assets will be invested in
foreign securities, which may magnify fluctuations due to changes in foreign
exchange rates and the possibility of substantial volatility due to political
and economic uncertainty in foreign countries. The Fund may invest all of its
assets within a single region, which may present greater risk than investment
in a more diversified fund. 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.
* Inception Date: 11/28/94.
(a) Assumes conversion of Class B shares into Class A shares after eight years.
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ALLIANCEBERNSTEIN ALL-ASIA INVESTMENT FUND o 5
INVESTMENT RESULTS
CLASS C SHARE AVERAGE ANNUAL RETURNS AS OF APRIL 30, 2004
NAV Returns SEC Returns
1 Year 42.01% 41.01%
5 Years -3.36% -3.36%
Since Inception* -4.42% -4.42%
SEC AVERAGE ANNUAL RETURNS (WITH SALES CHARGES)
AS OF THE MOST RECENT QUARTER-END (MARCH 31, 2004)
1 Year 47.45%
5 Years -1.69%
Since Inception* -4.06%
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. You may obtain performance information current to the most
recent month-end by visiting www.alliancebernstein.com (click on
Investors/Products & Services/Mutual Funds). Returns are for Class C shares and
are annualized for periods longer than one year. 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. SEC returns reflect the applicable contingent deferred sales
charge for Class C shares (1% year 1). Performance assumes reinvestment of
distributions and does not account for taxes.
The investment return and principal value of an investment in the Fund will
fluctuate, so that your 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.
A Word About Risk: Substantially all of the Fund's assets will be invested in
foreign securities, which may magnify fluctuations due to changes in foreign
exchange rates and the possibility of substantial volatility due to political
and economic uncertainty in foreign countries. The Fund may invest all of its
assets within a single region, which may present greater risk than investment
in a more diversified fund. 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.
* Inception Date: 11/28/94.
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6 o ALLIANCEBERNSTEIN ALL-ASIA INVESTMENT FUND
TEN LARGEST HOLDINGS
April 30, 2004 (unaudited)
Percent of
Company U.S. $ Value Net Assets
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Canon, Inc. $1,416,353 5.0%
Hoya Corp. 1,179,126 4.1
Bharti Tele-Ventures, Ltd. 1,053,852 3.7
JFE Holdings, Inc. 800,521 2.8
NEC Electronics Corp. 753,241 2.6
Toyota Motor Corp. 748,294 2.6
Mitsubishi Tokyo Financial Group, Inc. 720,652 2.5
Nidec Corp. 714,564 2.5
Chugai Pharmaceutical Co., Ltd. 697,504 2.5
Mitsubishi Corp. 695,773 2.4
$8,779,880 30.7%
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ALLIANCEBERNSTEIN ALL-ASIA INVESTMENT FUND o 7
PORTFOLIO OF INVESTMENTS
April 30, 2004 (unaudited)
Company Shares U.S. $ Value
- -------------------------------------------------------------------------------
COMMON STOCKS-96.3%
Australia-10.1%
Australia & New Zealand Banking Group, Ltd. 29,374 $ 393,097
BHP Billiton, Ltd. 52,073 430,428
James Hardie Industries NV 23,390 112,935
National Australia Bank, Ltd. 12,049 255,891
News Corp., Ltd. 31,625 291,035
Perpetual Trustees Australia, Ltd. 10,424 307,994
QBE Insurance Group, Ltd. 38,305 321,592
St. George Bank, Ltd. 17,673 256,759
Westpac Banking Corp., Ltd. 21,333 268,577
Woodside Petroleum, Ltd. 20,191 240,668
------------
2,878,976
Hong Kong-6.1%
Cheung Kong Holdings, Ltd. 35,000 269,239
China Petroleum and Chemical Corp.
(Sinopec) Cl. H 828,000 286,625
China Resources Enterprise, Ltd. 102,000 118,350
CNOOC, Ltd. 415,000 148,979
Esprit Holdings, Ltd. 67,000 276,599
HSBC Holdings Plc. 10,000 146,158
Li & Fung, Ltd. 160,000 249,239
Sun Hung Kai Properties, Ltd. 30,000 257,701
------------
1,752,890
India-5.6%
Bharti Tele-Ventures, Ltd.(a) 276,000 1,053,852
Canara Bank, Ltd. 59,700 222,180
Infosys Technologies, Ltd. 1,800 208,332
Tata Motors, Ltd. 10,100 105,951
------------
1,590,315
Indonesia-0.3%
Bank Rakyat Indonesia(a) 466,500 91,632
Japan-59.6%
Advantest Corp. 5,800 440,879
Aeon Credit Service Co., Ltd. 9,300 590,650
Canon, Inc. 27,000 1,416,353
Chugai Pharmaceutical Co., Ltd. 46,100 697,504
Daimaru, Inc. 64,000 557,228
Dainippon Screen Mfg. Co., Ltd. 62,000 422,976
Daiwa Securities Group, Inc. 83,000 624,145
Hoya Corp. 10,900 1,179,126
Japan Wind Development Co., Ltd.(a) 60 173,409
JFE Holdings, Inc. 35,700 800,521
KDDI Corp. 81 485,083
Leopalace21 Corp. 29,000 485,807
Mitsubishi Corp. 73,000 695,773
Mitsubishi Tokyo Financial Group, Inc. 81 720,652
NEC Electronics Corp. 10,700 753,241
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8 o ALLIANCEBERNSTEIN ALL-ASIA INVESTMENT FUND
Company Shares U.S. $ Value
- -------------------------------------------------------------------------------
Nidec Corp. 6,600 $ 714,564
Nippon Mining Holdings, Inc. 108,500 456,118
Nippon Yusen Kabushiki Kaisha 85,000 345,776
Nissan Motor Co., Ltd. 57,000 634,682
Nitto Denko Corp. 12,400 688,670
OBIC Co., Ltd. 1,700 368,879
Park24 Co., Ltd. 9,500 321,042
Pioneer Corp. 21,600 616,444
Rakuten, Inc. 45 353,884
Reins International, Inc. 55 293,998
Ricoh Co., Ltd. 25,000 498,301
Riso Kagaku Corp. 100 4,349
Sumitomo Mitsui Financial Group, Inc. 89 672,489
Toyota Motor Corp. 20,700 748,294
Works Applications Co., Ltd.(a) 83 309,817
------------
17,070,654
Malaysia-1.4%
Maxis Communications Berhad 92,000 210,632
Public Bank Berhad 212,000 190,800
------------
401,432
Singapore-2.6%
City Developments, Ltd. 43,000 154,163
Oversea-Chinese Banking Corp. 41,000 291,575
United Overseas Bank, Ltd. 37,000 297,922
------------
743,660
South Korea-6.0%
Hyundai Motor Co., Ltd. 3,460 131,960
Kookmin Bank(a) 9,380 350,146
POSCO 1,560 190,787
Samsung Electronics Co., Ltd. 1,000 474,709
Shinhan Financial Group Co., Ltd. 10,170 177,250
SK Telecom Co., Ltd. 2,350 400,563
------------
1,725,415
Taiwan-3.5%
Cathay Financial Holding Co., Ltd.(a) 22,000 39,073
Cathay Financial Holding Co. Ltd. (GDR)(a)(b) 5,083 90,223
Chinatrust Financial Holding Co., Ltd.(a) 122,000 131,108
Hon Hai Precision Industry Co., Ltd. 61,700 243,308
Taiwan Semiconductor Manufacturing Co., Ltd. 113,930 197,200
United Microelectronics Corp.(a) 158,000 141,734
Yageo Corp.(a) 271,000 147,655
------------
990,301
Thailand-1.1%
Advanced Info Service Public Co., Ltd. 79,100 195,724
Siam Commercial Bank Public Co., Ltd. 95,400 110,279
------------
306,003
Total Common Stocks
(cost $21,177,420) 27,551,278
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ALLIANCEBERNSTEIN ALL-ASIA INVESTMENT FUND o 9
Principal
Amount
Company (000) U.S. $ Value
- -------------------------------------------------------------------------------
SHORT-TERM INVESTMENT-4.5%
Time Deposit-4.5%
HSBC Bank
1.00%, 5/03/04
(cost $1,300,000) $1,300 $1,300,000
Total Investments-100.8%
(cost $22,477,420) 28,851,278
Other assets less liabilities-(0.8%) (224,300)
Net Assets-100% $28,626,978
(a) Non-income producing security.
(b) Security is exempt from registration under Rule 144A of the Securities Act
of 1933. This security may be resold in transactions exempt from registration,
normally to qualified institutional buyers. At April 30, 2004, the aggregate
market value of this security amounted to $90,223 or 0.3% of net assets.
Glossary:
GDR - Global Depositary Receipt
See notes to financial statements.
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10 o ALLIANCEBERNSTEIN ALL-ASIA INVESTMENT FUND
STATEMENT OF ASSETS & LIABILITIES
April 30, 2004 (unaudited)
Assets
Investments in securities, at value (cost $22,477,420) $28,851,278
Cash 20,735
Foreign cash, at value (cost $164,588) 166,594
Receivable for investment securities sold 1,222,289
Receivable for capital stock sold 207,017
Dividends and interest receivable 90,291
Receivable from Adviser 2,755
-------------
Total assets 30,560,959
-------------
Liabilities
Payable for investment securities purchased 1,300,000
Payable for capital stock redeemed 215,675
Distribution fee payable 16,204
Accrued expenses 402,102
-------------
Total liabilities 1,933,981
-------------
Net Assets $28,626,978
-------------
Composition of Net Assets
Capital stock, at par $ 5,028
Additional paid-in capital 43,979,473
Accumulated net investment loss (266,112)
Accumulated net realized loss on investment
and foreign currency transactions (21,302,194)
Net unrealized appreciation of investments
and foreign currency denominated assets and liabilities 6,210,783
-------------
$28,626,978
-------------
Calculation of Maximum Offering Price
Class A Shares
Net asset value and redemption price per share
($8,957,884/1,515,758 shares of capital stock
issued and outstanding) $5.91
Sales charge--4.25% of public offering price .26
------
Maximum offering price $6.17
------
Class B Shares
Net asset value and offering price per share
($11,190,243/2,039,122 shares of capital stock
issued and outstanding) $5.49
------
Class C Shares
Net asset value and offering price per share
($4,113,116/746,941 shares of capital stock
issued and outstanding) $5.51
------
Advisor Class Shares
Net asset value, redemption and offering price per share
($4,365,735/726,003 shares of capital stock
issued and outstanding) $6.01
------
See notes to financial statements.
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ALLIANCEBERNSTEIN ALL-ASIA INVESTMENT FUND o 11
STATEMENT OF OPERATIONS
Six Months Ended April 30, 2004 (unaudited)
Investment Income
Dividends (net of foreign taxes withheld
of $14,498) $202,755
Interest 443 $203,198
---------
Expenses
Advisory fee 140,700
Distribution fee--Class A 13,235
Distribution fee--Class B 57,322
Distribution fee--Class C 18,760
Custodian 121,518
Transfer agency 100,519
Legal 40,918
Audit 38,744
Registration 36,278
Directors' fees 27,861
Printing 24,993
Administrative 21,000
Miscellaneous 7,012
---------
Total expenses 648,860
Less: expenses waived and reimbursed
by the Adviser and the Transfer Agent
(see Note B) (179,540)
Less: expense offset arrangement
(see Note B) (10)
---------
Net expenses 469,310
---------
Net investment loss (266,112)
---------
Realized and Unrealized Gain
on Investment and Foreign Currency
Transactions
Net realized gain on:
Investment transactions 1,842,922
Foreign currency transactions 3,348
Net change in unrealized
appreciation/depreciaton of:
Investments 229,773
Foreign currency denominated assets
and liabilities 33,160
---------
Net gain on investment and foreign
currency transactions 2,109,203
---------
Net Increase in Net Assets from
Operations $1,843,091
---------
See notes to financial statements.
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12 o ALLIANCEBERNSTEIN ALL-ASIA INVESTMENT FUND
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended Year Ended
April 30, 2004 October 31,
(unaudited) 2003
---------------- -------------
Increase (Decrease) in Net Assets
from Operations
Net investment loss $(266,112) $(360,192)
Net realized gain on investment and
foreign currency transactions 1,846,270 841,354
Net change in unrealized
appreciation/depreciation
of investments and foreign
currency denominated
assets and liabilities 262,933 5,674,821
------------ -------------
Net increase in net assets from
operations 1,843,091 6,155,983
Capital Stock Transactions
Net decrease (297,236) (3,088,740)
------------ -------------
Total increase 1,545,855 3,067,243
Net Assets
Beginning of period 27,081,123 24,013,880
------------ -------------
End of period (including accumulated
net investment loss of ($266,112)
and $0, respectively) $28,626,978 $27,081,123
------------ -------------
See notes to financial statements.
- -------------------------------------------------------------------------------
ALLIANCEBERNSTEIN ALL-ASIA INVESTMENT FUND o 13
NOTES TO FINANCIAL STATEMENTS
April 30, 2004 (unaudited)
NOTE A
Significant Accounting Policies
AllianceBernstein All-Asia Investment Fund, Inc. (the "Fund") was organized as
a Maryland corporation on September 21, 1994 and 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 a front-end sales charge of up to 4.25%. 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 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 1.00% on redemptions made within the first year after
purchase. Advisor Class shares are sold without an initial or contingent
deferred sales charge and are not subject to ongoing distribution expenses.
Advisor Class shares are offered to investors participating in fee-based
programs and to certain retirement plan accounts. All four classes of shares
have identical voting, dividend, liquidation and other rights, except that each
class bears different distribution expenses and has exclusive voting rights
with respect to its distribution plan. The financial statements have been
prepared in conformity with accounting principles generally accepted in the
United States, which require management to make certain estimates and
assumptions that affect the reported amounts of assets and liabilities in the
financial statements and amounts of income and expenses during the reporting
period. Actual results could differ from those estimates. Additional
information about some of the items discussed in these Notes to Financial
Statements is contained in the Fund's Statement of Additional Information, which
is available upon request. The following is a summary of significant accounting
policies followed by the Fund.
1. Security Valuation
In accordance with Pricing Policies adopted by the Board of Directors of the
Fund (the "Pricing Policies") and applicable law, portfolio securities are
valued at current market value or at fair value. The Board of Directors has
delegated to 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
- -------------------------------------------------------------------------------
14 o ALLIANCEBERNSTEIN ALL-ASIA INVESTMENT FUND
asked prices are quoted on such day, then the security is valued in good faith
at fair value in accordance with the Pricing Policies. Securities listed on
more than one exchange are valued by reference to the principal exchange on
which the securities are traded; securities not listed on an exchange but
traded on The Nasdaq Stock Market, Inc. ("NASDAQ") are valued in accordance
with the NASDAQ Official Closing Price; listed put or call options are valued
at the last sale price. If there has been no sale on that day, such securities
will be valued at the closing bid prices on that day; open futures contracts
and options thereon are valued using the closing settlement price or, in the
absence of such a price, the most recent quoted bid price. If there are no
quotations available for the day of valuations, the last available closing
settlement price is used; securities traded in the over-the-counter market,
(but excluding securities traded on NASDAQ) are valued at the mean of the
current bid and asked prices as reported by the National Quotation Bureau or
other comparable sources; U.S. Government securities and other debt instruments
having 60 days or less remaining until maturity are valued at amortized cost if
their original maturity was 60 days or less, or by amortizing their fair value
as of the 61st day prior to maturity if their original term to maturity
exceeded 60 days; fixed-income securities, including mortgage backed and asset
backed securities, may be valued on the basis of prices provided by a pricing
service or at a price obtained from one or more of the major broker/dealers. In
cases where broker/dealer quotes are obtained, the Pricing Policies provide
that the Adviser may establish procedures whereby changes in market yields or
spreads are used to adjust, on a daily basis, a recently obtained quoted price
on a security; and OTC and other derivatives are valued on the basis of a
quoted bid price or spread from a major broker/dealer in such security.
Securities for which market quotations are not readily available are valued at
fair value in accordance with the Pricing Policies.
2. Currency Translation
Assets and liabilities denominated in foreign currencies and commitments under
forward exchange currency contracts are translated into U.S. dollars at the
mean of the quoted bid and asked prices of such currencies against the U.S.
dollar. Purchases and sales of portfolio securities are translated into U.S.
dollars at the rates of exchange prevailing when such securities were acquired
or sold. Income and expenses are translated into U.S. dollars at rates of
exchange prevailing when accrued.
Net realized gain or loss on foreign currency transactions represents foreign
exchange gains and losses from sales and maturities of foreign fixed income
investments, foreign currency exchange contracts, holding of foreign
currencies, currency gains or losses realized between the trade and settlement
dates on foreign investment transactions, and the difference between the
amounts of dividends, interest and foreign withholding taxes recorded on the
Fund's books and the U.S. dollar equivalent amounts actually received or paid.
Net unrealized
- -------------------------------------------------------------------------------
ALLIANCEBERNSTEIN ALL-ASIA INVESTMENT FUND o 15
currency gains and losses from valuing foreign currency denominated assets and
liabilities at period end exchange rates are reflected as a component of
unrealized appreciation or depreciation of investments and foreign currency
denominated assets and liabilities.
3. Taxes
It is the Fund's policy to meet the requirements of the Internal Revenue Code
applicable to regulated investment companies and to distribute all of its
investment company taxable income and net realized gains, if any, to
shareholders. Therefore, no provisions for federal income or excise taxes are
required.
4. 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.
5. 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.
6. Dividends and Distributions
Dividends and distributions to shareholders, if any, are recorded on the
ex-dividend date. Income dividends and capital gains distributions are
determined in accordance with federal tax regulations and may differ from those
determined in accordance with accounting principles generally accepted in the
United States. To the extent these differences are permanent, such amounts are
reclassified within the capital accounts based on their federal tax basis
treatment; temporary differences do not require such reclassification.
NOTE B
Advisory Fee and Other Transactions with Affiliates
Under the terms of an investment advisory agreement, the Fund pays the Adviser
an advisory fee at an annual rate of 1% of the Fund's average daily net assets.
Such fee is accrued daily and paid monthly. The Adviser has agreed to waive its
fees and bear certain expenses to the extent necessary to limit total operating
expenses on an annual basis to 3.00%, 3.70%, 3.70% and 2.70% of the average
daily net assets for the Class A, Class B, Class C and Advisor Class shares,
respectively. For the six months ended April 30, 2004, such waivers and
reimbursement amounted to $122,530.
- -------------------------------------------------------------------------------
16 o ALLIANCEBERNSTEIN ALL-ASIA INVESTMENT FUND
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. Through April 30, 2004, such
waiver amounted to $24,077. 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.
Under the terms of an Administrative Agreement, the Fund pays Alliance Capital
Management L.P. (the "Administrator") a monthly fee equal to the annualized
rate of .15% of the Fund's average daily net assets. For the six months ended
April 30, 2004, the Adviser agreed to waive its fees. Such waiver amounted to
$21,000.
The Administrator provides administrative functions to the Fund as well as
other clerical services. The Administrator also prepares financial and
regulatory reports for the Fund.
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 $56,982 for the six months ended April 30,
2004. During the period, AGIS voluntarily agreed to waive a portion of its fees
for such services. Such waiver amounted to $11,933.
For the six months ended April 30, 2004, the Fund's expenses were reduced by
$10 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 $532 from the sales of Class A shares and received
$54, $9,159 and $2,914 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 April 30, 2004.
Brokerage commissions paid on investment transactions for the six months ended
April 30, 2004, amounted to $57,425, 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
- -------------------------------------------------------------------------------
ALLIANCEBERNSTEIN ALL-ASIA INVESTMENT FUND o 17
annual rate of up to .30% of the Fund's average daily net assets attributable
to Class A shares and 1% of the average daily net assets attributable to both
Class B and Class C shares. There are no distribution and servicing fees on the
Advisor Class shares. The fees are accrued daily and paid monthly. The
Agreement provides that the Distributor will use such payments in their
entirety for distribution assistance and promotional activities. The
Distributor has advised the Fund that it has incurred expenses in excess of the
distribution costs reimbursed by the Fund in the amounts of $3,800,911 and
$822,145 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 six months ended April 30, 2004, were as follows:
Purchases Sales
----------- ------------
Investment securities (excluding
U.S. government securities) $21,210,443 $22,358,876
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 $6,788,134
Gross unrealized depreciation (414,276)
----------
Net unrealized appreciation $6,373,858
----------
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 and for investment purposes. A forward
exchange currency contract is a commitment to purchase or sell a foreign
currency on a future date at a negotiated forward rate. The gain or loss
arising from the difference between the original contract and the closing of
such contract would be included in net realized gain or loss on foreign
currency transactions.
Fluctuations in the value of open forward exchange currency contracts are
recorded for financial reporting purposes as unrealized appreciation and
depreciation by the Fund.
- -------------------------------------------------------------------------------
18 o ALLIANCEBERNSTEIN ALL-ASIA INVESTMENT FUND
The Fund's custodian will place and maintain cash not available for investment
or other liquid assets in a separate account of the Fund having a value at
least 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 foreign currency
relative to the U.S. dollar. The face or contract amount in U.S. dollars
reflects the total exposure the Fund has in that particular currency contract.
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 Ended Year Ended Six Months Ended Year Ended
April 30, 2004 October 31, April 30, 2004 October 31,
(unaudited) 2003 (unaudited) 2003
- -------------------------------------------------------------------------------
Class A
Shares sold 723,123 9,296,115 $4,175,240 $40,931,193
Shares converted
from Class B 73,613 67,180 431,552 312,640
Shares redeemed (801,161) (9,629,401) (4,608,835) (42,969,575)
Net decrease (4,425) (266,106) $(2,043) $(1,725,742)
Class B
Shares sold 333,498 3,639,555 $1,783,162 $15,280,262
Shares converted
to Class A (79,191) (71,892) (431,552) (312,640)
Shares redeemed (436,553) (3,797,802) (2,324,066) (16,026,252)
Net decrease (182,246) (230,139) $(972,456) $(1,058,630)
Class C
Shares sold 418,038 16,052,797 $2,202,745 $67,166,471
Shares redeemed (402,476) (15,973,157) (2,102,542) (67,463,119)
Net increase
(decrease) 15,562 79,640 $100,203 $(296,648)
Advisor Class
Shares sold 518,386 3,719,861 $2,997,110 $16,744,849
Shares redeemed (417,487) (3,640,106) (2,420,050) (16,752,569)
Net increase
(decrease) 100,899 79,755 $577,060 $(7,720)
- -------------------------------------------------------------------------------
ALLIANCEBERNSTEIN ALL-ASIA INVESTMENT FUND o 19
NOTE F
Risks Involved in Investing in the Fund
Concentration of Risk--Investing in securities of foreign companies involves
special risks which include the possibility of future political and economic
developments which could adversely affect the value of such securities.
Moreover, securities of many foreign companies and their markets may be less
liquid and their prices more volatile than those of United States companies.
The securities markets of many Asian countries are relatively small, with the
majority of market capitalization and trading volume concentrated in a limited
number of companies representing a small number of industries. Consequently,
the Fund's investment portfolio may experience greater price volatility and
significantly lower liquidity than a portfolio invested in equity securities of
U.S. companies. These markets may be subject to greater influence by adverse
events generally affecting the market, and by large investors trading
significant blocks of securities, than is usual in the United States.
In the ordinary course of business, the Fund enters into contracts that contain
a variety of indemnifications. The Fund's maximum exposure under these
arrangements is unknown. However, the Fund has not had prior claims or losses
pursuant to these indemnification provisions and expects the risk of loss
thereunder to be remote.
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 for 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 April 30, 2004.
NOTE H
Components of Accumulated Earnings (Deficit)
The tax character of distributions to be paid for the fiscal year ending
October 31, 2004 will be determined at the end of the current fiscal year. As
of October 31, 2003, the components of accumulated earnings/(deficit) on a tax
basis were as follows:
Accumulated capital and other losses $(22,673,292)(a)
Unrealized appreciation/(depreciation) 5,472,678(b)
Total accumulated earnings/(deficit) $(17,200,614)
(a) On October 31, 2003, the Fund had a net capital loss carryforward of
$22,673,292 of which $18,922,133 expires in the year 2009 and $3,751,159
expires in the year 2010. To the extent future capital gains are offset by
capital loss carryforwards, such gains will not be distributed. During the
current fiscal year, $561,531 of the capital loss carryforward was utilized.
(b) The difference between book-basis and tax-basis unrealized
appreciation/(depreciation) is attributable primarily to the tax deferral of
losses on wash sales.
- -------------------------------------------------------------------------------
20 o ALLIANCEBERNSTEIN ALL-ASIA INVESTMENT FUND
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.
- -------------------------------------------------------------------------------
ALLIANCEBERNSTEIN ALL-ASIA INVESTMENT FUND o 21
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, numerous 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.
- -------------------------------------------------------------------------------
22 o ALLIANCEBERNSTEIN ALL-ASIA INVESTMENT FUND
FINANCIAL HIGHLIGHTS
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
Class A
---------------------------------------------------------------------------
Six Months
Ended
April 30, Year Ended October 31,
2004 --------------------------------------------------------------
(unaudited) 2003 2002 2001 2000 1999
---------------------------------------------------------------------------
Net asset value,
beginning of period $5.52 $4.57 $5.24 $9.71 $10.46 $5.86
---------------------------------------------------------------------------
Income From Investment Operations
Net investment loss(a) (.05)(b) (.05)(b) (.11)(b) (.15)(b) (.19) (.10)(b)
Net realized and unrealized
gain (loss) on investment
and foreign currency
transactions .44 1.00 (.56) (3.21) (.56) 4.70
---------------------------------------------------------------------------
Net increase (decrease)
in net asset value from
operations .39 .95 (.67) (3.36) (.75) 4.60
---------------------------------------------------------------------------
Less: Distributions
Distributions from net
realized gains on
investment and foreign
currency transactions -0- -0- -0- (1.01) -0- -0-
Distributions in excess of
net realized gains -0- -0- -0- (.10) -0- -0-
---------------------------------------------------------------------------
Total distributions -0- -0- -0- (1.11) -0- -0-
---------------------------------------------------------------------------
Net asset value,
end of period $5.91 $5.52 $4.57 $5.24 $9.71 $10.46
---------------------------------------------------------------------------
Total Return
Total investment return based
on net asset value(c) 7.07% 20.79% (12.79)% (38.77)% (7.17)% 78.50%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted) $8,958 $8,385 $8,168 $9,637 $20,436 $40,040
Ratio to average net assets of:
Expenses, net of
waivers/reimbursements 3.00%(d) 3.00% 3.00% 3.00% 2.35%(e) 2.45%(e)
Expenses, before
waivers/reimbursements 4.23%(d) 4.85% 4.26% 3.19% 2.35% 2.93%
Expenses, before
waivers/reimbursements
excluding interest expense 4.23%(d) 4.85% 4.26% 3.19% 2.30%(f) 2.93%
Net investment loss (1.57)%(b) (1.18)%(b) (1.99)%(b) (2.20)%(b)(1.51)% (1.20)%(b)
Portfolio turnover rate 77% 146% 207% 150% 153% 119%
See footnote summary on page 27.
- -------------------------------------------------------------------------------
ALLIANCEBERNSTEIN ALL-ASIA INVESTMENT FUND o 23
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
Class B
---------------------------------------------------------------------------
Six Months
Ended
April 30, Year Ended October 31,
2004 --------------------------------------------------------------
(unaudited) 2003 2002 2001 2000 1999
---------------------------------------------------------------------------
Net asset value,
beginning of period $5.14 $4.29 $4.95 $9.30 $10.09 $5.71
-----------------------------------------------------------------------------
Income From Investment Operations
Net investment loss(a) (.06)(b) (.08)(b) (.13)(b) (.18)(b) (.29) (.18)(b)
Net realized and unrealized
gain (loss) on investment
and foreign currency
transactions .41 .93 (.53) (3.06) (.50) 4.56
-----------------------------------------------------------------------------
Net increase (decrease)
in net asset value from
operations .35 .85 (.66) (3.24) (.79) 4.38
-----------------------------------------------------------------------------
Less: Distributions
Distributions from net
realized gains on
investment and foreign
currency transactions -0- -0- -0- (1.01) -0- -0-
Distributions in excess of
net realized gains -0- -0- -0- (.10) -0- -0-
-----------------------------------------------------------------------------
Total distributions -0- -0- -0- (1.11) -0- -0-
-----------------------------------------------------------------------------
Net asset value,
end of period $5.49 $5.14 $4.29 $4.95 $9.30 $10.09
-----------------------------------------------------------------------------
Total Return
Total investment return based
on net asset value(c) 6.81% 19.81% (13.33)% (39.25)% (7.83)% 76.71%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted) $11,190 $11,419 $10,513 $14,640 $35,927 $38,108
Ratio to average net assets of:
Expenses, net of
waivers/reimbursements 3.70%(d) 3.70% 3.70% 3.70% 3.18%(e) 3.48%(e)
Expenses, before
waivers/reimbursements 5.04%(d) 5.70% 5.11% 4.00% 3.18% 3.96%
Expenses, before
waivers/reimbursements
excluding interest expense 5.04%(d) 5.70% 5.11% 4.00% 3.13%(f) 3.96%
Net investment loss (2.26)%(b) (1.90)%(b) (2.69)%(b) (2.94)%(b) (2.32)% (2.31)%(b)
Portfolio turnover rate 77% 146% 207% 150% 153% 119%
See footnote summary on page 27.
- -------------------------------------------------------------------------------
24 o ALLIANCEBERNSTEIN ALL-ASIA INVESTMENT FUND
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
Class C
----------------------------------------------------------------------------
Six Months
Ended
April 30, Year Ended October 31,
2004 --------------------------------------------------------------
(unaudited) 2003 2002 2001 2000 1999
---------------------------------------------------------------------------
Net asset value,
beginning of period $5.16 $4.30 $4.96 $9.32 $10.12 $5.72
----------------------------------------------------------------------------
Income From Investment Operations
Net investment loss(a) (.06)(b) (.08)(b) (.14)(b) (.18)(b) (.29) (.18)(b)
Net realized and unrealized
gain (loss) on investment
and foreign currency
transactions .41 .94 (.52) (3.07) (.51) 4.58
----------------------------------------------------------------------------
Net increase (decrease)
in net asset value from
operations .35 .86 (.66) (3.25) (.80) 4.40
----------------------------------------------------------------------------
Less: Distributions
Distributions from net
realized gains on
investment and foreign
currency transactions -0- -0- -0- (1.01) -0- -0-
Distributions in excess of
net realized gains -0- -0- -0- (.10) -0- -0-
----------------------------------------------------------------------------
Total distributions -0- -0- -0- (1.11) -0- -0-
----------------------------------------------------------------------------
Net asset value,
end of period $5.51 $5.16 $4.30 $4.96 $9.32 $10.12
----------------------------------------------------------------------------
Total Return
Total investment return based
on net asset value(c) 6.78% 20.00% (13.31)% (39.28)% (7.90)% 76.92%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted) $4,113 $3,773 $2,805 $3,695 $11,284 $10,060
Ratio to average net assets of:
Expenses, net of
waivers/reimbursements 3.70%(d) 3.70% 3.70% 3.70% 3.18%(e) 3.41%(e)
Expenses, before
waivers/reimbursements 4.95%(d) 5.59% 5.00% 3.94% 3.18% 3.89%
Expenses, before
waivers/reimbursements
excluding interest expense 4.95%(d) 5.59% 5.00% 3.94% 3.13%(f) 3.89%
Net investment loss (2.24)%(b) (1.80)%(b) (2.74)%(b) (2.93)%(b) (2.31)% (2.21)%(b)
Portfolio turnover rate 77% 146% 207% 150% 153% 119%
See footnote summary on page 27.
- -------------------------------------------------------------------------------
ALLIANCEBERNSTEIN ALL-ASIA INVESTMENT FUND o 25
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
Advisor Class
----------------------------------------------------------------------------
Six Months
Ended
April 30, Year Ended October 31,
2004 --------------------------------------------------------------
(unaudited) 2003 2002 2001 2000 1999
---------------------------------------------------------------------------
Net asset value,
beginning of period $5.61 $4.64 $5.31 $9.81 $10.54 $5.90
----------------------------------------------------------------------------
Income From Investment Operations
Net investment loss(a) (.04)(b) (.04)(b) (.09)(b) (.12)(b) (.17) (.10)(b)
Net realized and unrealized
gain (loss) on investment
and foreign currency
transactions .44 1.01 (.58) (3.27) (.56) 4.74
----------------------------------------------------------------------------
Net increase (decrease)
in net asset value from
operations .40 .97 (.67) (3.39) (.73) 4.64
----------------------------------------------------------------------------
Less: Distributions
Distributions from net
realized gains on
investment and foreign
currency transactions -0- -0- -0- (1.01) -0- -0-
Distributions in excess of
net realized gains -0- -0- -0- (.10) -0- -0-
----------------------------------------------------------------------------
Total distributions -0- -0- -0- (1.11) -0- -0-
----------------------------------------------------------------------------
Net asset value,
end of period $6.01 $5.61 $4.64 $5.31 $9.81 $10.54
----------------------------------------------------------------------------
Total Return
Total investment return based
on net asset value(c) 7.13% 20.91% (12.62)% (38.68)% (6.93)% 78.64%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted) $4,366 $3,504 $2,528 $2,736 $5,155 $4,746
Ratio to average net assets of:
Expenses, net of
waivers/reimbursements 2.70%(d) 2.70% 2.70% 2.70% 2.19%(e) 2.45%(e)
Expenses, before
waivers/reimbursements 3.94%(d) 4.53% 3.96% 2.89% 2.19% 2.93%
Expenses, before
waivers/reimbursements
excluding interest expense 3.94%(d) 4.53% 3.96% 2.89% 2.14%(f) 2.93%
Net investment loss (1.25)%(b) (.91)%(b) (1.69)%(b) (1.90)%(b) (1.31)% (1.33)%(b)
Portfolio turnover rate 77% 146% 207% 150% 153% 119%
See footnote summary on page 27.
- -------------------------------------------------------------------------------
26 o ALLIANCEBERNSTEIN ALL-ASIA INVESTMENT FUND
(a) Based on average shares outstanding.
(b) Net of expenses waived by the Adviser and the Transfer Agent.
(c) Total investment return is calculated assuming an initial investment made
at the net asset value at the beginning of the period, reinvestment of all
dividends and distributions at net asset value during the period, and
redemption on the last day of the period. Initial sales charges or contingent
deferred sales charges are not reflected in the calculation of total investment
return. Total return does not reflect the deduction of taxes that a shareholder
would pay on fund distributions or the redemption of fund shares. Total
investment return calculated for a period of less than one year is not
annualized.
(d) Annualized.
(e) 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 October 31,
----------------------
2000 1999
----------------------
Class A 2.34% 2.43%
Class B 3.17% 3.46%
Class C 3.16% 3.39%
Advisor Class 2.18% 2.43%
(f) Net of interest expense of .04 % on credit facility. (see Note G)
- -------------------------------------------------------------------------------
ALLIANCEBERNSTEIN ALL-ASIA INVESTMENT FUND o 27
BOARD OF DIRECTORS
William H.Foulk, Jr.(1), Chairman
David H. Dievler(1)
John H. Dobkin(1)
Alan Stoga(1)
OFFICERS
Marc O. Mayer, President
Thomas J. Bardong, Vice President
Russell Brody, Vice President
Bhaskar Laxminarayan(2), Vice President
Hiroshi Motoki(2), Senior Vice President
David Poh, Vice President
Mark R. Manley, Secretary
Mark D. Gersten, Treasurer and Chief Financial Officer
Vincent S. Noto, Controller
Custodian
Brown Brothers Harriman & Co.
40 Water Street
Boston, MA 02109
Principal Underwriter
AllianceBernstein Investment Research and Management, Inc.
1345 Avenue of the Americas
New York, NY 10105
Legal Counsel
Seward & Kissel LLP
One Battery Park Plaza
New York, NY 10004
Independent Auditors
Ernst & Young LLP
5 Times Square
New York, NY 10036
Transfer Agent
Alliance Global Investor Services, Inc.
P.O. Box 786003
San Antonio, TX 78278-6003
Toll-Free (800) 221-5672
(1) Member of the Audit Committee.
(2) Messrs. Motoki and Laxminarayan are the persons primarily responsible for
the day-to-day management of the Fund's investment portfolio.
- -------------------------------------------------------------------------------
28 o ALLIANCEBERNSTEIN ALL-ASIA INVESTMENT FUND
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 Funds
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 Research Growth 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.
+ 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.
- -------------------------------------------------------------------------------
ALLIANCEBERNSTEIN ALL-ASIA INVESTMENT FUND o 29
ALLIANCEBERNSTEIN ALL-ASIA INVESTMENT 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.
AAFSR0404
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. SCHEDULE OF INVESTMENTS.
Form N-CSR disclosure requirement not yet effective with respect to the
registrant.
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.
On April 7, 2004, the Fund adopted procedures by which shareholders may
recommend nominees to the Fund's Board of Directors. Prior thereto, the
Fund's Board did not accept shareholder recommendations for nominees to
the Fund's Board.
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 All-Asia Investment Fund, Inc.
By: /s/Marc O. Mayer
--------------------------------
Marc O. Mayer
President
Date: June 30, 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: June 30, 2004
By: /s/Mark D. Gersten
-------------------------------
Mark D. Gersten
Treasurer and Chief Financial Officer
Date: June 30, 2004