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: 811-6251
ALLIANCEBERNSTEIN MULTI-MARKET STRATEGY TRUST, 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, 2005
Date of reporting period: April 30, 2005
ITEM 1. REPORTS TO STOCKHOLDERS.
[LOGO] ALLIANCEBERNSTEIN (R)
Investment Research and Management
AllianceBernstein Multi-Market Strategy Trust
Emerging Market Fixed Income
April 30, 2005
SEMI-ANNUAL REPORT
The Fund expects to hold a meeting of shareholders on or about November 15,
2005, at which the election of directors will be considered. For information
with respect to submitting a candidate for director for consideration by the
Governance and Nominating Committee of the Fund's Board of Directors, please
see the Nominating Procedures in the Fund's Statement of Additional Information.
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
AllianceBernstein 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.
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, and information regarding how the Fund voted proxies relating to
portfolio securities during the most recent 12-month period ended June 30,
without charge. Simply visit AllianceBernstein's web site at
www.alliancebernstein.com, or go to the Securities and Exchange Commission's
(the "Commission") web site at www.sec.gov, or call AllianceBernstein at (800)
227-4618.
The Fund files its complete schedule of portfolio holdings with the Commission
for the first and third quarters of each fiscal year on Form N-Q. The Fund's
Forms N-Q are available on the Commission's web site at www.sec.gov. The Fund's
Forms N-Q may also be reviewed and copied at the Commission's Public Reference
Room in Washington, DC; information on the operation of the Public Reference
Room may be obtained by calling (800) SEC-0330.
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 28, 2005
Annual Report
This report provides management's discussion of fund performance for
AllianceBernstein Multi-Market Strategy Trust (the "Fund") for the semi-annual
reporting period ended April 30, 2005.
Investment Objective and Policies
This open-end fund seeks the highest level of current income that is available,
consistent with what we consider to be prudent investment risk, from a
portfolio of high-quality debt securities having remaining maturities of not
more than five years. The Fund seeks investment opportunities in foreign, as
well as domestic, securities markets. Normally at least 70% of the Fund's
assets will be invested in debt securities denominated in foreign currencies.
The Fund limits its investments in a single currency other than the U.S. dollar
to 25% of its net assets, except for the euro, in which the Fund may invest up
to 50% of its net assets.
Investment Results
The table on page 4 shows the Fund's performance compared to its benchmark, the
Merrill Lynch 1-5 Year Government Bond Index, for the six- and 12-month periods
ended April 30, 2005. Also included in the table are returns for the Fund's
peer group, as represented by the Lipper Short World Multi-Market Income Funds
Average (the "Lipper Average"). Funds in the Lipper Average have generally
similar investment objectives to the Fund, although some may have different
investment policies and sales and management fees.
For both the six- and 12-month periods ended April 30, 2005, the Fund's Class A
shares outperformed the benchmark, the Merrill Lynch 1-5 Year Government Bond
Index. For the semi-annual reporting period, the Fund strongly outperformed its
benchmark which is comprised of U.S. securities only. The Fund also exceeded
the Lipper average, a universe of similarly managed funds, during the
semi-annual period under review.
The Fund's outperformance was primarily the result of its non-U.S. holdings. As
detailed in the Market Review and Investment Strategy section below, slower
global growth outside of the U.S. led global bond markets to outperform U.S.
Treasuries. The Fund also benefited from a significant position in Swedish
government bonds which posted strong returns for the reporting period. As
measured by the Merrill Lynch Swedish Government 1-5 Year Index, Swedish
government bonds returns 3.65% in U.S. dollar (USD) hedged terms. The Fund's
performance was additionally helped by a position in short-term Canadian
corporate bonds. Dampening the Fund's performance was its exposure to non-U.S.
currencies as the U.S. dollar strengthened. A position in U.S. Treasury
inflation protected securities (TIPS) also detracted modestly from relative
performance.
Market Review and Investment Strategy
During the semi-annual reporting period, U.S. fixed income markets posted
meager returns resulting primarily
ALLIANCEBERNSTEIN MULTI-MARKET STRATEGY TRUST o 1
from generally mixed economic data and changing investor perceptions throughout
the period. The Federal Reserve (the "Fed") continued to raise interest rates
in increments of 25 basis points, taking the benchmark rate from 1.75% to
2.75%. Unlike the second half of 2004, when the market's mood had been
uncharacteristically sanguine in the context of rising rates, market sentiment
soured late in the first quarter of 2005 and bond prices fell, especially in
the intermediate part of the curve. Markets were rattled primarily by two
concerns: the fear that official rate hikes could become more aggressive and
the fallout from General Motors' profit warning and potential ratings downgrade
to below investment grade.
The U.S. yield curve flattened by 138 basis points during the semi-annual
period, as yields on shorter maturity Treasuries rose and longer maturities
remained stable, or actually declined. The significant flattening of the yield
curve was spurred by prospects that the Fed would continue raising interest
rates at a measured pace. U.S. 1-5 year Treasuries had weak performance for the
first five months of the reporting period, as investors anticipated a
continuing rise in U.S. rates. In April, as a temporary weakness in economic
data made a pause in rate hikes seem more likely, U.S. Treasuries posted
stronger performance.
Shorter-term government bonds in major non-U.S. markets strongly outperformed
1-5 year U.S. Treasuries. The central banks of major non-U.S. markets such as
Europe and Canada held off on raising rates in light of sluggish economic
performance.
In the Eurozone, consumer confidence remained weak and unemployment continued
to rise. Business confidence was also negatively impacted by higher oil prices
and a strong euro. Unemployment in Germany rose to 12% in March, a post-war
record. These factors made it increasingly less likely that the European
Central Bank would raise interest rates; despite the fact the ECB stated that
they are uncomfortable with the current low level (2.0%) of their official rate.
Economic data from Canada was mixed during the reporting period, but it
indicated that economic growth was sluggish due to the strength of the Canadian
dollar and a resulting weakening of Canadian exports. A strong Canadian dollar,
coupled with a cooling housing market and mixed employment data, allowed the
Bank of Canada to hold off on raising interest rates during the reporting
period.
During the semi-annual period, the Fund's Global Fixed Income Team (the "team")
added to the Fund's overweight position in Canadian bonds as the team believed
interest rates there would remain stable. The Fund also continued to hold a
significant position in Swedish government bonds. The team added a position in
TIPS to the Fund's U.S. holdings. The team also added a position in France to
increase the Fund's exposure to Europe. The Fund's position in Australia was
eliminated by allowing its Australian bonds to mature without reinvesting, as
better investment opportunities were found elsewhere.
2 o ALLIANCEBERNSTEIN MULTI-MARKET STRATEGY TRUST
HISTORICAL PERFORMANCE
An Important Note About the Value of Historical Performance
The performance shown on the following pages 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.
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
AllianceBernstein at (800) 227-4618. You should read the prospectus carefully
before you invest.
Returns 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 sales charges
for each share class: a 4.25% maximum front-end sales charge for Class A
shares; the applicable contingent deferred sales charge for Class B shares (3%
year 1, 2% year 2, 1% year 3, 0% year 4); a 1% 1 year contingent deferred sales
charge for Class C shares. Returns for Class R, Class K and Class I shares will
vary due to different expenses associated with these classes. Performance
assumes reinvestment of distributions and does not account for taxes.
Benchmark Disclosure
The unmanaged Merrill Lynch 1-5 Year Government Bond Index does not reflect
fees and expenses associated with the active management of a mutual fund
portfolio. The Index consists of short-term U.S. Treasury securities maturing
in one to five years and is a standard measure of the performance of a basket
of unmanaged short-term Treasury securities. For both the six- and 12-month
periods ended April 30, 2005, the Lipper Short World Multi-Market Income Funds
Average consisted of 6 funds. These funds have generally similar investment
objectives to AllianceBernstein Multi-Market Strategy Trust, although some may
have different investment policies and sales and management fees. An investor
cannot invest directly in an index or average, and their results are not
indicative of the performance for any specific investment, including the Fund.
A Word About Risk
The Fund invests a part of its assets in foreign securities which may magnify
asset value fluctuations due to changes in foreign exchange rates and the
possibility of substantial volatility due to political and economic
uncertainties in foreign countries. The Fund can invest a significant portion
of its assets in the securities of a single issuer, which may present greater
risk than a more diversified portfolio. Price fluctuation may be caused by
changes in interest rates or bond credit quality ratings. Please note, as
interest rates rise, existing bond prices fall and can cause the value of an
investment in the Fund to decline. Changes in interest rates have a greater
effect on bonds with longer maturities than on those with shorter maturities.
While the Fund invests in bonds and fixed-income securities, 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 Fund's prospectus.
(Historical Performance continued on next page)
ALLIANCEBERNSTEIN MULTI-MARKET STRATEGY TRUST o 3
HISTORICAL PERFORMANCE
(continued from previous page)
Returns
THE FUND VS. ITS BENCHMARK ----------------------
PERIODS ENDED APRIL 30, 2005 6 Months 12 Months
-------- ---------
AllianceBernstein
Multi-Market Strategy Trust
Class A 1.66% 3.22%
Class B 1.29% 2.48%
Class C 1.13% 2.49%
Class R** 0.70%*
Class K** 0.74%*
Class I** 0.78%*
Merrill Lynch 1-5 Year
Government Bond Index -0.21% 1.61%
Lipper Short World
Multi-Market Income
Funds Average 0.87% 2.53%
* Since Inception. The Class R, Class K and Class I share inception date is
3/1/05.
** Please note that this is a new share class offering for investors purchasing
shares through institutional pension plans. The inception date for Class R,
Class K and Class I shares is 3/1/05.
See Historical Performance and Benchmark disclosures on previous page.
(Historical Performance continued on next page)
4 o ALLIANCEBERNSTEIN MULTI-MARKET STRATEGY TRUST
HISTORICAL PERFORMANCE
(continued from previous page)
AVERAGE ANNUAL RETURNS AS OF APRIL 30, 2005
- ------------------------------------------------------
NAV Returns SEC Returns
Class A Shares
1 Year 3.22% -1.13%
5 Years 4.29% 3.39%
10 Years 6.13% 5.67%
SEC Yield** 1.39%
Class B Shares
1 Year 2.48% -0.52%
5 Years 3.52% 3.52%
10 Years (a) 5.60% 5.60%
SEC Yield** 0.69%
Class C Shares
1 Year 2.49% 1.49%
5 Years 3.52% 3.52%
10 Years 5.31% 5.31%
SEC Yield** 0.71%
Class R Shares+
Since Inception* 0.70%
SEC Yield** 1.56%
Class K Shares+
Since Inception* 0.74%
SEC Yield** 1.83%
Class I Shares+
Since Inception* 0.78%
SEC Yield** 2.08%
SEC AVERAGE ANNUAL RETURNS (WITH SALES CHARGES)
AS OF THE MOST RECENT CALENDAR QUARTER-END (MARCH 31, 2005)
Class A Shares
1 Year -3.17%
5 Years 3.09%
10 Years 6.00%
Class B Shares
1 Year -2.47%
5 Years 3.18%
10 Years (a) 5.93%
Class C Shares
1 Year -0.32%
5 Years 3.21%
10 Years 5.66%
(a) Assumes conversion of Class B shares into Class A shares after six years.
* Inception Date: 3/1/05 for Class R, Class K and Class I shares.
** SEC yields are calculated based on SEC guidelines for the 30-day period
ended April 30, 2005.
+ Please note that this is a new share class offering for investors
purchasing shares through institutional pension plans. The inception date for
Class R, Class K and Class I shares is 3/1/05.
See Historical Performance disclosures on page 3.
ALLIANCEBERNSTEIN MULTI-MARKET STRATEGY TRUST o 5
FUND EXPENSES
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including sales charges (loads) on purchase payments, contingent
deferred sales charges on redemptions and (2) ongoing costs, including
management fees; distribution (12b-1) fees; and other Fund expenses. This
example is intended to help you understand your ongoing costs (in dollars) of
investing in the Fund and to compare these costs with the ongoing costs of
investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of
the period and held for the entire period as indicated below.
Actual Expenses
The table below provides information about actual account values and actual
expenses. You may use the information, together with the amount you invested,
to estimate the expenses that you paid over the period. Simply divide your
account value by $1,000 (for example, an $8,600 account value divided by $1,000
= 8.6), then multiply the result by the number under the heading entitled
"Expenses Paid During Period" to estimate the expenses you paid on your account
during this period.
Hypothetical Example for Comparison Purposes
The table below also provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
annual rate of return of 5% before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to
estimate the actual ending account balance or expenses you paid for the period.
You may use this information to compare the ongoing costs of investing in the
Fund and other funds by comparing this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads), or contingent deferred sales charges on redemptions.
Therefore, the hypothetical example is useful in comparing ongoing costs only,
and will not help you determine the relative total costs of owning different
funds. In addition, if these transactional costs were included, your costs
would have been higher.
Beginning Ending
Account Value Account Value Expenses Paid
November 1, 2004 April 30, 2005 During Period*
---------------------- ----------------------- ---------------------
Actual Hypothetical Actual Hypothetical** Actual Hypothetical
-------- ------------ --------- ------------ ------- ------------
Class A $1,000 $1,000 $1,016.62 $1,017.55 $7.30 $7.30
Class B $1,000 $1,000 $1,012.91 $1,013.88 $10.98 $10.99
Class C $1,000 $1,000 $1,011.31 $1,013.98 $10.87 $10.89
Class R+ $1,000 $1,000 $1,006.95 $1,005.85 $2.38 $2.37
Class K+ $1,000 $1,000 $1,007.41 $1,006.31 $1.91 $1.91
Class I+ $1,000 $1,000 $1,007.80 $1,006.74 $1.49 $1.48
* Expenses are equal to the classes' annualized expense ratios of 1.46%,
2.20%, 2.18%, 1.44%, 1.16% and 0.90%, respectively, multiplied by the average
account value over the period, multiplied by the number of days in the
period/365.
** Assumes 5% return before expenses.
+ The account value and expenses for Class R, Class K and Class I shares are
based on the period from March 1, 2005 (commencement of distribution) through
April 30, 2005.
6 o ALLIANCEBERNSTEIN MULTI-MARKET STRATEGY TRUST
PORTFOLIO SUMMARY
April 30, 2005 (unaudited)
PORTFOLIO STATISTICS
Net Assets ($mil): $185.8
SECURITY TYPE BREAKDOWN*
40.6% Sovereign Debt Obligations
28.3% Corporate Debt Obligations
28.3% U.S. Government & Governement Sponsored Agency Obligations
2.8% Short-Term
* All data are as of April 30, 2005. The Fund's security type breakdown is
expressed as a percentage of total investments and may vary over time.
ALLIANCEBERNSTEIN MULTI-MARKET STRATEGY TRUST o 7
PORTFOLIO OF INVESTMENTS
April 30, 2005 (unaudited)
Principal
Amount
(000) U.S. $ Value
- ------------------------------------------------------------------------
Belgium-2.1%
Government Obligation-2.1%
Kingdom of Belgium
3.75%, 3/28/09(a)
(cost $3,596,035) EUR 2,940 $ 3,953,051
------------
Canada-8.7%
Corporate Debt Obligations-8.7%
Bank of Nova Scotia
3.93%, 2/18/10 CAD 5,000 3,979,795
Citigroup Finance Canada, Inc.
4.30%, 4/25/06(a) 10,000 8,059,024
GE Capital Canada Funding Co.
5.30%, 7/24/07(a) 5,000 4,147,721
------------
Total Canadian Securities
(cost $14,396,630) 16,186,540
------------
Denmark-2.1%
Government Obligation-2.1%
Kingdom of Denmark
7.00%, 11/15/07(a)
(cost $3,357,287) DKK 20,000 3,864,339
------------
France-6.2%
Corporate Debt Obligation-2.6%
Dexia Credit Local
4.75%, 4/25/09(a) EUR 3,500 4,843,691
------------
Government Obligation-3.6%
Government of France
3.00%, 7/25/09 (TIPS)(a) 4,716 6,693,966
------------
Total French Securities
(cost $11,561,621) 11,537,657
------------
Germany-5.5%
Corporate Debt Obligation-2.5%
Kreditanstalt fuer Wiederaufbau
4.50%, 8/03/06(a) 3,500 4,645,997
------------
Government Obligation-3.0%
Bundesobligation
3.50%, 10/09/09(a) 4,100 5,471,256
------------
Total German Securities
(cost $9,029,294) 10,117,253
------------
8 o ALLIANCEBERNSTEIN MULTI-MARKET STRATEGY TRUST
Principal
Amount
(000) U.S. $ Value
- ------------------------------------------------------------------------
Ireland-3.9%
Government Obligation- 3.9%
Republic of Ireland
4.25%, 10/18/07(a)
(cost $6,555,587) EUR 5,325 $ 7,189,972
------------
Italy-3.8%
Government Obligation- 3.8%
Republic of Italy
6.75%, 7/01/07(a)
(cost $6,256,158) 5,000 7,055,941
------------
Japan-3.9%
Government Obligations-3.9%
Government of Japan
0.30%, 3/20/08(a) JPY 200,000 1,917,281
0.60%, 12/20/09(a) 559,850 5,393,079
------------
Total Japanese Securities
(cost $7,186,352) 7,310,360
------------
Netherlands-4.6%
Government Obligation-4.6%
Government of Netherlands
5.25%, 7/15/08(a)
(cost $7,247,229) EUR 6,150 8,627,938
------------
Norway-3.3%
Government Obligation-3.3%
Government of Norway
5.50%, 5/15/09(a)
(cost $5,377,046) NOK 35,094 6,078,378
------------
Sweden-10.1%
Government Obligations-10.1%
Government of Sweden
4.00%, 12/01/08(a) SEK 20,000 3,525,642
6.50%, 5/05/08(a) 97,000 15,211,249
------------
Total Swedish Securities
(cost $16,637,771) 18,736,891
------------
United Kingdom-6.8%
Corporate Debt Obligations-6.8%
Halifax Plc.
4.75%, 3/24/09(a) EUR 2,000 2,759,600
HBOS Treasury Services Plc.
4.88%, 12/21/07(a) GBP 2,500 4,774,557
ALLIANCEBERNSTEIN MULTI-MARKET STRATEGY TRUST o 9
Principal
Amount
(000) U.S. $ Value
- ------------------------------------------------------------------------
UBS London
8.00%, 1/08/07(a) GBP 2,500 $ 5,003,330
------------
Total United Kingdom Securities
(cost $12,199,581) 12,537,487
------------
United States-35.6%
Corporate Debt Obligations-7.5%
Citibank, NA
14.50%, 6/16/05(a) PLN 7,000 2,133,432
Citigroup, Inc.
4.25%, 7/29/09(a) US$ 5,000 4,973,435
JPMorgan Chase & Co.
3.80%, 10/02/09(a) 5,000 4,865,120
SunTrust Bank
3.04%, 6/02/09(a) 2,000 2,001,243
------------
13,973,230
------------
U.S. Government and Government
Sponsored Agency Obligations-28.1%
Federal Home Loan Bank
2.75%, 12/15/06(a) 3,000 2,953,752
2.75%, 3/14/08(a) 3,500 3,388,507
3.00%, 4/15/09(a) 4,000 3,837,192
3.75%, 8/18/09(a) 4,500 4,431,321
Federal Home Loan
Mortgage Corp.
3.50%, 2/15/08(a) EUR 9,500 12,587,738
Federal National
Mortgage Association
1.75%, 3/26/08(a) JPY 1,110,000 11,077,463
3.25%, 2/15/09(a) US$ 5,000 4,846,350
U.S. Treasury Notes
0.88%, 4/15/10 (TIPS)(a) 2,024 1,996,190
3.13%, 10/15/08(a) 2,500 2,446,973
3.88%, 1/15/09 (TIPS)(a) 4,208 4,650,138
------------
52,215,624
------------
Total United States Securities
(cost $63,465,857) 66,188,854
------------
SHORT-TERM INVESTMENT-2.8%
Repurchase Agreement-2.8%
Deutsche Bank
2.88%, dated 4/29/05,
due 5/02/05 in the amount
of $5,201,248 (cost $5,200,000;
collateralized by $5,310,000
FHLB, zero coupon, due 5/12/05,
value $5,305,833) 5,200 5,200,000
------------
Total Investments-99.4%
(cost $172,066,448) 184,584,661
Other assets less liabilities-0.6% 1,166,665
------------
Net Assets-100% $185,751,326
------------
10 o ALLIANCEBERNSTEIN MULTI-MARKET STRATEGY TRUST
FORWARD EXCHANGE CURRENCY CONTRACTS (see Note D)
U.S. $ U.S. $
Contract Value on Value at Unrealized
Amount Origination April 30, Appreciation/
(000) Date 2005 (Depreciation)
------------ ------------ -------------- --------------
Sale Contracts:
British Pound,
settling 5/13/05 4,096 $ 7,875,886 $ 7,825,777 $ 50,109
Canadian Dollar,
settling 6/07/05 20,451 16,622,738 16,277,311 345,427
Danish Krona,
settling 6/17/05 22,166 3,868,279 3,850,713 17,566
Euro Dollar,
settling 5/20/05-
7/26/05 49,982 66,147,955 64,669,384 1,478,571
Japanese Yen,
settling 6/06/05 1,829,243 17,183,037 17,530,181 (347,144)
Norwegian Kroner,
settling
4/29/05-6/01/05 39,554 6,318,478 6,304,113 14,365
Swedish Krona,
settling 5/18/05 122,589 17,110,250 17,236,679 (126,429)
(a) Positions, or a portion thereof, with an aggregate market value of
$175,404,866 have been segregated to collateralize forward exchange currency
contracts.
Glossary of Terms:
FHLB - Federal Home Loan Bank
TIPS - Treasury Inflation Protected Security
Currency Abbreviations:
CAD - Canadian Dollar
DKK - Danish Krona
EUR - Euros
GBP - Great British Pound
JPY - Japanese Yen
NOK - Norwegian Kroner
PLN - Polish Zloty
SEK - Swedish Krona
US$ - United States Dollar
See notes to financial statements.
ALLIANCEBERNSTEIN MULTI-MARKET STRATEGY TRUST o 11
STATEMENT OF ASSETS & LIABILITIES
April 30, 2005 (unaudited)
Assets
Investments in securities, at value (cost $172,066,448) $184,584,661
Cash 555,311
Foreign cash, at value (cost $119,230) 126,050
Receivable for investment securities sold and foreign
currency contracts 3,861,299
Interest receivable 3,780,475
Unrealized appreciation of forward exchange
currency contracts 1,906,038
Receivable for capital stock sold 99,126
------------
Total assets 194,912,960
------------
Liabilities
Payable for investment securities purchased 7,890,086
Unrealized depreciation of forward exchange
currency contracts 473,573
Payable for capital stock redeemed 366,908
Dividends payable 118,626
Advisory fee payable 79,460
Distribution fee payable 57,559
Transfer Agent fee payable 33,376
Administrative fee payable 7,688
Accrued expenses and other liabilities 134,358
------------
Total liabilities 9,161,634
------------
Net Assets $185,751,326
------------
Composition of Net Assets
Capital stock, at par $ 32,487
Additional paid-in capital 197,684,996
Distributions in excess of net investment income (8,261,414)
Accumulated net realized loss on investment
and foreign currency transactions (17,751,509)
Net unrealized appreciation of investments
and foreign currency denominated assets and liabilities 14,046,766
------------
$185,751,326
------------
Calculation of Maximum Offering Price Per Share
Net Asset Value and: Maximum
Shares Offering Redemption Offering
Class Net Assets Outstanding Price Price Price*
- ------------------------------------------------------------------------------
A $ 169,185,602 29,594,838 --- $ 5.72 $ 5.97
- ------------------------------------------------------------------------------
B $ 6,659,016 1,162,989 $ 5.73 --- ---
- ------------------------------------------------------------------------------
C $ 9,876,444 1,723,458 $ 5.73 --- ---
- ------------------------------------------------------------------------------
R $ 10,138 1,772 $ 5.72 $ 5.72 ---
- ------------------------------------------------------------------------------
K $ 10,088 1,763 $ 5.72 $ 5.72 ---
- ------------------------------------------------------------------------------
I $ 10,038 1,754 $ 5.72 $ 5.72 ---
- ------------------------------------------------------------------------------
* The maximum offering price per share for Class A shares includes a sales
charge of 4.25%.
See notes to financial statements.
12 o ALLIANCEBERNSTEIN MULTI-MARKET STRATEGY TRUST
STATEMENT OF OPERATIONS
Six Months Ended April 30, 2005 (unaudited)
Investment Income
Interest $ 3,396,828
Expenses
Advisory fee $490,324
Distribution fee--Class A 268,116
Distribution fee--Class B 35,997
Distribution fee--Class C 50,882
Distribution fee--Class R 9
Distribution fee--Class K 4
Transfer agency 325,349
Custodian 101,126
Registration 55,858
Printing 46,517
Administrative 45,000
Audit 36,956
Legal 26,429
Directors' fees 9,980
Miscellaneous 7,262
------------
Total expenses 1,499,809
Less: expense offset arrangement
(see Note B) (926)
------------
Net expenses 1,498,883
------------
Net investment income 1,897,945
------------
Realized and Unrealized Gain (Loss)
on Investment and Foreign
Currency Transactions
Net realized gain (loss) on:
Investment transactions 631,159
Foreign currency transactions 2,718,030
Net change in unrealized
appreciation/depreciation of:
Investments (6,816,786)
Foreign currency denominated assets
and liabilities 4,611,430
------------
Net gain on investment and foreign
currency transactions 1,143,833
------------
Net Increase in Net Assets
from Operations $ 3,041,778
------------
See notes to financial statements.
ALLIANCEBERNSTEIN MULTI-MARKET STRATEGY TRUST o 13
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended Year Ended
April 30, 2005 October 31,
(unaudited) 2004
---------------- -----------
Increase (Decrease) in Net Assets
from Operations
Net investment income $ 1,897,945 $ 5,222,734
Net realized gain (loss) on investment
andforeign currency transactions 3,349,189 (5,769,549)
Net change in unrealized
appreciation/depreciation of investments
and foreign currency denominated
assets and liabilities (2,205,356) 7,597,901
---------------- -----------
Net increase in net assets
from operations 3,041,778 7,051,086
Dividends and Distributions to
Shareholders from
Net investment income
Class A (1,706,938) (3,245,215)
Class B (42,112) (126,386)
Class C (61,317) (154,771)
Class R (35) -0-
Class K (39) -0-
Class I (43) -0-
Tax return of capital
Class A -0- (3,707,865)
Class B -0- (144,404)
Class C -0- (176,835)
Capital Stock Transactions
Net decrease (22,613,621) (44,249,958)
---------------- -----------
Total decrease (21,382,327) (44,754,348)
Net Assets
Beginning of period 207,133,653 251,888,001
---------------- -----------
End of period (including distributions in
excess of net investment income of
($8,261,414) and ($8,348,875),
respectively) $185,751,326 $207,133,653
---------------- -----------
See notes to financial statements.
14 o ALLIANCEBERNSTEIN MULTI-MARKET STRATEGY TRUST
NOTES TO FINANCIAL STATEMENTS
April 30, 2005 (unaudited)
NOTE A
Significant Accounting Policies
AllianceBernstein Multi-Market Strategy Trust, Inc. (the "Fund") was
incorporated in the State of Maryland as a non-diversified, open-end management
investment company. The Fund offers Class A, Class B, Class C, Class R, Class K
and Class I 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 sold
currently with a contingent deferred sales charge which declines from 3.0% to
zero depending on the period of time the shares are held. Class B shares will
automatically convert to Class A shares six years after the end of the calendar
month of purchase. Class C shares are subject to a contingent deferred sales
charge of 1% on redemptions made within the first year after purchase. Class R
and Class K shares are sold without an initial or contingent deferred sales
charge. Class I shares are sold without an initial or contingent deferred sales
charge and are not subject to ongoing distribution expenses. All six 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 U.S. generally accepted accounting principles,
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
Portfolio securities are valued at their current market value determined on the
basis of market quotations or, if market quotations are not readily available
or are deemed unreliable, at "fair value" as determined in accordance with
procedures established by and under the general supervision of the Fund's Board
of Directors.
In general, the market value of securities which are readily available and
deemed reliable are 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. 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
ALLIANCEBERNSTEIN MULTI-MARKET STRATEGY TRUST o 15
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 valuation, the last
available closing settlement price is used; securities traded in the
over-the-counter market, ("OTC") (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, Alliance Capital Management, L.P. (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 (including
restricted securities) or are deemed unreliable are valued at fair value.
Factors considered in making this determination may include, but are not
limited to, information obtained by contacting the issuer, analysts, analysis
of the issuer's financial statements or other available documents. In addition,
the Fund may use fair value pricing for securities primarily traded in non-U.S.
markets because most foreign markets close well before the Fund values its
securities at 4:00 p.m., Eastern Time. The earlier close of these foreign
markets gives rise to the possibility that significant events, including broad
market moves, may have occurred in the interim and may materially affect the
value of those securities.
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 divi-
16 o ALLIANCEBERNSTEIN MULTI-MARKET STRATEGY TRUST
dends, interest and foreign withholding taxes recorded on the Fund's books and
the U.S. dollar equivalent amounts actually received or paid. Net unrealized
currency gains and losses from valuing foreign currency denominated assets and
liabilities at period end exchange rates are reflected as a component of net
unrealized appreciation and 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 provision for federal income or excise taxes is
required. The Fund may be subject to taxes imposed by countries in which it
invests. Such taxes are generally based on income and/or capital gains earned
or repatriated. Taxes are accrued and applied to net investment income, net
realized gains and net unrealized appreciation/depreciation as such income
and/or gains are earned.
4. Investment Income and Investment Transactions
Interest income is accrued daily. Investment transactions are accounted for on
the date the securities are purchased or sold. Investment gains and losses are
determined on the identified cost basis. The Fund amortizes premiums and
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 settled 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, Class K and Class I shares. Class I shares have no
distribution fees.
6. Dividends and Distributions
Dividends and distributions to shareholders are recorded on the ex-dividend
date. Income dividends and capital gains distributions are determined in
accordance with federal tax regulations and may differ from those determined in
accordance with U.S. generally accepted accounting principles. 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. Repurchase Agreements
The Fund's custodian or designated subcustodian will take control of securities
as collateral under repurchase agreements and determine on a daily basis that
the value of such securities are sufficient to cover the value of the
repurchase agreements. If the seller defaults and the value of collateral
declines, or if bankruptcy proceedings are commenced with respect to the seller
of the security, realization of collateral by the Fund may be delayed or
limited.
ALLIANCEBERNSTEIN MULTI-MARKET STRATEGY TRUST o 17
NOTE B
Advisory Fee and Other Transactions with Affiliates
Until September 6, 2004, under the terms of an investment advisory agreement,
the Fund paid the Adviser an advisory fee at an annual rate of .60% of the
Fund's average daily net assets. Effective September 7, 2004, the terms of the
investment advisory agreement were amended so that the advisory fee was reduced
to an annual rate of .50% of the first $2.5 billion, .45% of the next $2.5
billion and .40% in excess of $5 billion, of the Fund's average daily net
assets. The fee is accrued daily and paid monthly.
Effective January 1, 2004, through September 6, 2004, in contemplation of the
final agreement with Office of the New York Attorney General ("NYAG"), the
Adviser began waiving a portion of its advisory fee so as to charge the Fund at
the reduced annual rate as discussed above. For a more complete discussion of
the Adviser's settlement with the NYAG, please see "Legal Proceedings" below.
Pursuant to the advisory agreement, the Adviser provides certain legal and
accounting services for the Fund. For the six months ended April 30, 2005, such
fees amounted to $45,000.
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 $198,535 for the six months ended April 30,
2005.
For the six months ended April 30, 2005, the Fund's expenses were reduced by
$926 under an expense offset arrangement with AGIS.
AllianceBernstein Investment Research and Management, Inc. (the "Distributor"),
a wholly-owned subsidiary of the Adviser, serves as the distributor of the
Fund's shares. The Distributor has advised the Fund that it has retained
front-end sales charges of $1,706 from the sale of Class A shares and received
$126, $5,415 and $177 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, 2005.
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 the Class A shares and 1% of the average daily net assets
attributable to both Class B and Class C shares, .50% of the Fund's average
daily net assets attributable to Class R shares and .25% of the Fund's average
daily net assets attributable to
18 o ALLIANCEBERNSTEIN MULTI-MARKET STRATEGY TRUST
Class K shares. There are no distribution and servicing fees on the Class I
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 $10,775,014, $1,964,405, $19 and $15 for Class B,
Class C, Class R and Class K 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, 2005, were as follows:
Purchases Sales
----------- ------------
Investment securities (excluding
U.S. government securities) $52,252,347 $85,501,265
U.S. government securities 25,416,112 19,020,213
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
contracts) are as follows:
Gross unrealized appreciation $13,016,245
------------
Gross unrealized depreciation (498,032)
------------
Net unrealized appreciation $12,518,213
------------
1. Forward Exchange Currency Contracts
The Fund may enter into forward exchange currency contracts in order to hedge
its exposure to changes in foreign currency exchange rates on its foreign
portfolio holdings and to hedge certain firm purchase and sales commitments
denominated in foreign currencies. A forward exchange currency contract is a
commitment to purchase or sell a foreign currency 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 net unrealized appreciation or
depreciation by the Fund.
ALLIANCEBERNSTEIN MULTI-MARKET STRATEGY TRUST o 19
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 the counterparty to meet the
terms of a contract and from unanticipated movements in the value of a foreign
currency relative to the U.S. dollar. The face or contract amount, in U.S.
dollars reflects the total exposure the Fund has in that particular currency
contract.
2. 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.
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. For
the six months ended April 30, 2005, there were no written options.
3. Swap Agreements
The Fund may enter into swaps to hedge its exposure to foreign currency
interest rates and credit risk or for investment purposes. A swap is an
agreement that
20 o ALLIANCEBERNSTEIN MULTI-MARKET STRATEGY TRUST
obligates two parties to exchange a series of cash flows at specified intervals
based upon or calculated by reference to changes in specified prices or rates
for a specified amount of an underlying asset. The payment flows are usually
netted against each other, with the difference being paid by one party to the
other.
Risks may arise as a result of the failure of the counterparty to the swap
contract to comply with the terms of the swap contract. The loss incurred by
the failure of a counterparty is generally limited to the net interim payment
to be received by the Fund, and/or the termination value at the end of the
contract. Therefore, the Fund considers the creditworthiness of each
counterparty to a swap contract in evaluating potential credit risk.
Additionally, risks may arise from unanticipated movements in interest rates or
in the value of the underlying securities or currencies.
As of November 1, 2003, the Fund has adopted the method of accounting for
interim payments on swap contracts in accordance with Financial Accounting
Standards Board Statement No. 133. The Fund accrues for the interim payments on
swap contracts on a daily basis, with the net amount recorded within unrealized
appreciation/depreciation of swap contracts on the statement of assets and
liabilities. Once the interim payments are settled in cash, the net amount is
recorded as realized gain/loss on swaps, in addition to realized gain/loss
recorded upon the termination of swaps contracts on the statements of
operations. Prior to November 1, 2003, these interim payments were reflected
within interest income/expense in the statement of operations. Fluctuations in
the value of swap contracts are recorded as a component of net change in
unrealized appreciation/depreciation of investments.
The Fund may enter into credit default swaps. The Fund may purchase credit
protection on the referenced obligation of the credit default swap ("Buy
Contract") or provide credit protection on the referenced obligation of the
credit default swap ("Sale Contract"). A sale/(buy) in a credit default swap
provides upon the occurrence of a credit event, as defined in the swap
agreement, for the Fund to buy/(sell) from/(to) the counterparty at the
notional amount (the "Notional Amount") and receive/(deliver) the principal
amount of the referenced obligation. If a credit event occurs, the maximum
payout amount for a Sale Contract is limited to the Notional Amount of the swap
contract ("Maximum Payout Amount"). During the term of the swap agreement, the
Fund receives/(pays) semi-annual fixed payments from/(to) the respective
counterparty, calculated at the agreed upon interest rate applied to the
Notional Amount. These interim payments are recorded within unrealized
appreciation/depreciation of swap contracts on the statement of assets and
liabilities.
Credit default swaps may involve greater risks than if a Fund had invested in
the referenced obligation directly. Credit default swaps are subject to general
market risk, liquidity risk, counterparty risk and credit risk. If the Fund is
a buyer and no
ALLIANCEBERNSTEIN MULTI-MARKET STRATEGY TRUST o 21
credit event occurs, it will lose its investment. In addition, if the Fund is a
seller and a credit event occurs, the value of the referenced obligation
received by the Fund coupled with the periodic payments previously received,
may be less than the Maximum Payout Amount it pays to the buyer, resulting in a
loss to the Fund.
At April 30, 2005, the Fund had no Sale Contracts outstanding.
In certain circumstances, the Fund may hold Sale Contracts on the same
referenced obligation and with the same counterparty it has purchased credit
protection, which may reduce its obligation to make payments on Sale Contracts,
if a credit event occurs. The Fund had no Buy Contracts outstanding as of April
30, 2005.
NOTE E
Capital Stock
There are 18,000,000,000 shares of $.001 par value capital stock authorized,
divided into six classes, designated Class A, Class B, Class C, Class R, Class
K and Class I shares. 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, 2005 October 31, April 30, 2005 October 31,
(unaudited) 2004 (unaudited) 2004
------------ ------------ -------------- --------------
Class A
Shares sold 266,286 441,175 $ 1,518,612 $ 2,511,210
Shares issued in
reinvestment of
dividends 176,185 755,725 1,005,215 4,303,866
------------ ------------ -------------- --------------
Shares converted
from Class B 77,031 177,199 439,265 1,009,321
------------ ------------ -------------- --------------
Shares redeemed (4,069,365) (7,638,260) (23,208,809) (43,550,088)
------------ ------------ -------------- --------------
Net decrease (3,549,863) (6,264,161) $(20,245,717) $(35,725,691)
------------ ------------ -------------- --------------
Class B
Shares sold 120,935 362,037 $ 690,804 $ 2,066,100
------------ ------------ -------------- --------------
Shares issued in
reinvestment of
dividends 5,042 35,445 28,808 202,375
------------ ------------ -------------- --------------
Shares converted
to Class A (76,896) (176,932) (439,265) (1,009,321)
------------ ------------ -------------- --------------
Shares redeemed (262,344) (1,104,668) (1,499,612) (6,317,181)
------------ ------------ -------------- --------------
Net decrease (213,263) (884,118) $ (1,219,265) $(5,058,027)
------------ ------------ -------------- --------------
22 o ALLIANCEBERNSTEIN MULTI-MARKET STRATEGY TRUST
Shares Amount
--------------------------- ------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
April 30, 2005 October 31, April 30, 2005 October 31,
(unaudited) 2004 (unaudited) 2004
------------ ------------ -------------- --------------
Class C
Shares sold 99,472 249,433 $ 567,695 $ 1,418,938
------------ ------------ -------------- --------------
Shares issued in
reinvestment of
dividends 7,662 43,198 43,826 246,762
------------ ------------ -------------- --------------
Shares redeemed (313,396) (897,734) (1,790,310) (5,131,940)
------------ ------------ -------------- --------------
Net decrease (206,262) (605,103) $(1,178,789) $(3,466,240)
------------ ------------ -------------- --------------
March 1, 2005(a) March 1, 2005(a)
to April 30, 2005 to April 30, 2005
(unaudited) (unaudited)
----------------- ------------------
Class R
Shares sold 1,772 $10,100
Shares redeemed -0- -0-
Net increase 1,772 $10,100
Class K
Shares sold 1,763 $10,050
Shares redeemed -0- -0-
Net increase 1,763 $10,050
Class I
Shares sold 1,754 $10,000
Shares redeemed -0- -0-
Net increase 1,754 $10,000
(a) Commencement of distribution.
NOTE F
Joint Credit Facility
A number of open-end mutual funds managed by the Adviser, including the Fund,
participate in a $500 million revolving credit facility (the "Facility")
intended to provide short-term financing if necessary, subject to certain
restrictions in connection with abnormal redemption activity. Commitment fees
related to the Facility are paid by the participating funds and are included in
miscellaneous expense in the statement of operations. The Fund did not utilize
the Facility during the six months ended April 30, 2005.
NOTE G
Risks Involved in Investing in the Fund
Interest Rate Risk and Credit Risk--Interest rate risk is the risk that changes
in interest rates will affect the value of the Fund's investments in
fixed-income debt securities such as bonds or notes. Increases in interest
rates may cause the value of the Fund's investments to decline. Credit risk is
the risk that the issuer or
ALLIANCEBERNSTEIN MULTI-MARKET STRATEGY TRUST o 23
guarantor of a debt security, or the counterparty to a derivative contract,
will be unable or unwilling to make timely principal and/or interest payments,
or to otherwise honor its obligations. The degree of risk for a particular
security may be reflected in its credit risk rating. Credit risk is greater for
medium quality and lower-rated securities. Lower-rated debt securities and
similar unrated securities (commonly known as "junk bonds") have speculative
elements or are predominantly speculative risks.
Concentration of Risk--Investing in securities of foreign companies or foreign
governments involves special risks which include changes in foreign exchange
rates and the possibility of future political and economic developments which
could adversely affect the value of such securities. Moreover, securities of
many foreign companies or foreign governments and their markets may be less
liquid and their prices more volatile than those of comparable United States
companies or of the United States Government.
Indemnification Risk--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 H
Distribution to Shareholders
The tax character of distributions to be paid for the year ending October 31,
2005 will be determined at the end of the current fiscal year. The tax
character of distributions paid for the fiscal years ended October 31, 2004 and
October 31, 2003 were as follows:
2004 2003
---------- ----------
Distributions paid from:
Ordinary income $3,526,372 $ 1,172,038
---------- -----------
Total taxable distributions 3,526,372 1,172,038
---------- -----------
Tax return of capital 4,029,104 12,886,909
---------- ----------
Total distributions paid $7,555,476 $14,058,947
---------- -----------
24 o ALLIANCEBERNSTEIN MULTI-MARKET STRATEGY TRUST
As of October 31, 2004, the components of accumulated earnings/(deficit) on a
tax basis were as follows:
Accumulated capital and other losses $ (28,524,185)(a)
Unrealized appreciation/(depreciation) 15,405,831(b)
Total accumulated earnings/(deficit) $ (13,118,354)(c)
(a) On October 31, 2004, the Fund had a net capital loss carryforward of
$21,098,086 of which $572,902 expires in the year 2005, $6,799,602 expires in
the year 2007, $9,788,373 expires in the year 2008, $3,634,196 expires in the
year 2009 and $303,013 expires in the year 2010. To the extent future capital
gains are offset by capital loss carryforwards, such gains will not be
distributed. During the fiscal year, the Fund utilized capital loss
carryforwards of $382,175, and $591,099 of capital loss carryforwards expired.
For the year ended October 31, 2004, the cumulative deferred loss on straddles
was $7,426,099.
(b) The differences between book-basis and tax-basis unrealized
appreciation/(depreciation) are attributable primarily to the realization for
tax purposes of gains/losses on certain derivative instruments, the difference
between book and tax amortization methods for premium and tax deferral of
losses on wash sales.
(c) The difference between book-basis and tax-basis components of accumulated
earnings/(deficit) is attributable primarily to dividends payable.
NOTE I
Legal Proceedings
As has been previously reported, 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
the Adviser provide information to them. The Adviser has been cooperating and
will continue to cooperate with all of these authorities.
On December 18, 2003, the Adviser 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 memorialized in an
Assurrance of Discontinuance dated September 1, 2004 ("NYAG Order"). Among the
key provisions of these agreements are the following:
(i) The Adviser 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;
ALLIANCEBERNSTEIN MULTI-MARKET STRATEGY TRUST o 25
(ii) The Adviser agreed to reduce the advisory fees it receives from some of
the AllianceBernstein long-term, open-end retail funds until December 31, 2008;
and
(iii) The Adviser agreed to implement changes to its governance and compliance
procedures. Additionally, the SEC Order and the NYAG Order contemplate that the
Adviser's registered investment company clients, including the Fund, will
introduce governance and compliance changes.
In anticipation of final, definitive documentation of the NYAG Order and
effective January 1, 2004, the Adviser began waiving a portion of its advisory
fee. On September 7, 2004, the Fund's investment advisory agreement was amended
to reflect the reduced advisory fee. For more information on this waiver and
amendment to the Fund's investment advisory agreement, please see "Advisory Fee
and Other Transactions with Affiliates" above.
A special committee of the Adviser's Board of Directors, comprised of the
members of the Adviser's Audit Committee and the other independent member of
the Adviser's 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 the Adviser; 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 the Adviser. 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 the Adviser, including recovery of all fees paid to the Adviser pursuant
to such contracts.
26 o ALLIANCEBERNSTEIN MULTI-MARKET STRATEGY TRUST
Since October 2, 2003, numerous additional lawsuits making factual allegations
similar to those in the Hindo Complaint were filed against the Adviser and
certain other defendants, some of which name the Fund as a defendant. All of
these lawsuits seek an unspecified amount of damages. The lawsuits are now
pending in the United States District Court for the District of Maryland
pursuant to a ruling by the Judicial Panel on Multidistrict Litigation
transferring and centralizing all of the mutual fund cases involving market and
late trading in the District of Maryland.
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.
The Adviser and approximately twelve other investment management firms were
publicly mentioned in connection with the settlement by the SEC of charges that
an unaffiliated broker/dealer violated federal securities laws relating to its
receipt of compensation for selling specific mutual funds and the disclosure of
such compensation. The SEC indicated publicly that, among other things, it was
considering enforcement action in connection with mutual funds' disclosure of
such arrangements and in connection with the practice of considering mutual
fund sales in the direction of brokerage commissions from fund portfolio
transactions. The SEC issued subpoenas to the Adviser, and the NASD issued
requests for information in connection with this matter and the Adviser
provided documents and other information to the SEC and NASD and cooperated
fully with the investigations. On June 8, 2005 the NASD announced that it had
reached a settlement with the Distributor in connection with this matter.
Management of the Adviser expects that the settlement has resolved both
regulatory inquires described above.
On June 22, 2004, a purported class action complaint entitled Aucoin, et al. v.
Alliance Capital Management L.P., et al. ("Aucoin Complaint") was filed against
the Adviser, Alliance Capital Management Holding L.P., Alliance Capital
Management Corporation, AXA Financial, Inc., AllianceBernstein Investment
Research & Management, Inc., certain current and former directors of the
AllianceBernstein Mutual Funds, and unnamed Doe defendants. The Aucoin
Complaint names certain of the AllianceBernstein mutual funds as nominal
defendants. The Aucoin Complaint was filed in the United States District Court
for the Southern District of New York by an alleged shareholder of an
AllianceBernstein mutual fund. The Aucoin Complaint alleges, among other
things, (i) that certain of the defendants improperly authorized the payment of
excessive commissions and other fees from fund assets to broker-dealers in
exchange for preferential marketing services, (ii) that certain of the
defendants misrepresented and omitted from registration statements and other
reports
ALLIANCEBERNSTEIN MULTI-MARKET STRATEGY TRUST o 27
material facts concerning such payments, and (iii) that certain defendants
caused such conduct as control persons of other defendants. The Aucoin
Complaint asserts claims for violation of Sections 34(b), 36(b) and 48(a) of
the Investment Company Act, Sections 206 and 215 of the Advisers Act, breach of
common law fiduciary duties, and aiding and abetting breaches of common law
fiduciary duties. Plaintiffs seek an unspecified amount of compensatory damages
and punitive damages, rescission of their contracts with the Adviser, including
recovery of all fees paid to the Adviser pursuant to such contracts, an
accounting of all fund-related fees, commissions and soft dollar payments, and
restitution of all unlawfully or discriminatorily obtained fees and expenses.
Since June 22, 2004, numerous additional lawsuits making factual allegations
substantially similar to those in the Aucoin Complaint were filed against the
Adviser and certain other defendants, and others may be filed.
It is possible that these matters and/or other developments resulting from
these matters could result in increased redemptions of the Fund's shares or
other adverse consequences to the Fund. However, the Adviser believes that
these matters are not likely to have a material adverse effect on its ability
to perform advisory services relating to the Fund.
28 o ALLIANCEBERNSTEIN MULTI-MARKET STRATEGY TRUST
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,
2005 -----------------------------------------------------------
(unaudited) 2004 2003 2002(a) 2001 2000
------------------------------------------------------------------------------
Net asset value,
beginning of period $5.68 $5.70 $5.89 $5.99 $6.08 $6.29
Income From Investment Operations
Net investment income(b) .06 .14(c) .17 .19 .35 .38
Net realized and unrealized
gain (loss) on investment
and foreign currency
transactions .03 .03 (.06) .02 .13 (.19)
Net increase in net asset value
from operations .09 .17 .11 .21 .48 .19
Less: Dividends and Distributions
Dividends from net
investment income (.05) (.09) (.03) -0- (.32) (.38)
Distributions in excess of net
investment income -0- -0- -0- -0- -0- (.02)
Tax return of capital -0- (.10) (.27) (.31) (.25) -0-
Total dividends and distributions (.05) (.19) (.30) (.31) (.57) (.40)
Net asset value, end of period $5.72 $5.68 $5.70 $5.89 $5.99 $6.08
Total Return
Total investment return based
on net asset value(d) 1.66% 3.11% 1.88% 3.74% 8.27% 3.17%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted) $169,186 $188,312 $224,504 $264,978 $289,265 $305,610
Ratio to average net assets of:
Expenses, net of waivers/
reimbursements 1.46%(e) 1.46% 1.49% 1.49% 1.48% 1.52%(f)
Expenses, before waivers/
reimbursements 1.46%(e) 1.52% 1.49% 1.49% 1.48% 1.52%(f)
Net investment income 2.00%(e) 2.39%(c) 2.87% 3.22% 5.87% 6.25%
Portfolio turnover rate 40% 62% 113% 115% 79% 82%
See footnote summary on page 33.
ALLIANCEBERNSTEIN MULTI-MARKET STRATEGY TRUST o 29
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
Class B
----------------------------------------------------------------------------
Six Months
Ended
April 30, Year Ended October 31,
2005 -----------------------------------------------------------
(unaudited) 2004 2003 2002(a) 2001 2000
------------------------------------------------------------------------------
Net asset value,
beginning of period $5.69 $5.71 $5.90 $6.01 $6.10 $6.32
Income From Investment Operations
Net investment income(b) .04 .09(c) .12 .14 .30 .33
Net realized and unrealized
gain (loss) on investment
and foreign currency
transactions .03 .04 (.05) .02 .13 (.19)
Net increase in net asset value
from operations .07 .13 .07 .16 .43 .14
Less: Dividends and Distributions
Dividends from net
investment income (.03) (.07) (.02) -0- (.29) (.34)
Distributions in excess of net
investment income -0- -0- -0- -0- -0- (.02)
Tax return of capital -0- (.08) (.24) (.27) (.23) -0-
Total dividends and distributions (.03) (.15) (.26) (.27) (.52) (.36)
Net asset value, end of period $5.73 $5.69 $5.71 $5.90 $6.01 $6.10
Total Return
Total investment return based
on net asset value(d) 1.29% 2.39% 1.17% 2.84% 7.49% 2.30%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted) $6,659 $7,831 $12,904 $13,150 $11,311 $13,052
Ratio to average net assets of:
Expenses, net of waivers/
reimbursements 2.20%(e) 2.21% 2.23% 2.24% 2.24% 2.28%(f)
Expenses, before waivers/
reimbursements 2.20%(e) 2.28% 2.23% 2.24% 2.24% 2.28%(f)
Net investment income 1.25%(e) 1.63%(c) 2.13% 2.44% 5.05% 5.44%
Portfolio turnover rate 40% 62% 113% 115% 79% 82%
See footnote summary on page 33.
30 o ALLIANCEBERNSTEIN MULTI-MARKET STRATEGY TRUST
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
Class C
----------------------------------------------------------------------------
Six Months
Ended
April 30, Year Ended October 31,
2005 -----------------------------------------------------------
(unaudited) 2004 2003 2002(a) 2001 2000
------------------------------------------------------------------------------
Net asset value,
beginning of period $5.70 $5.71 $5.90 $6.01 $6.10 $6.31
Income From Investment Operations
Net investment income(b) .04 .10(c) .13 .14 .30 .34
Net realized and unrealized
gain (loss) on investment
and foreign currency
transactions .02 .04 (.06) .02 .13 (.19)
Net increase in net asset value
from operations .06 .14 .07 .16 .43 .15
Less: Dividends and Distributions
Dividends from net
investment income (.03) (.07) (.02) -0- (.29) (.34)
Distributions in excess of net
investment income -0- -0- -0- -0- -0- (.02)
Tax return of capital -0- (.08) (.24) (.27) (.23) -0-
Total dividends and distributions (.03) (.15) (.26) (.27) (.52) (.36)
Net asset value, end of period $5.73 $5.70 $5.71 $5.90 $6.01 $6.10
Total Return
Total investment return based
on net asset value(d) 1.13% 2.57% 1.17% 2.83% 7.48% 2.46%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted) $9,876 $10,991 $14,480 $17,592 $15,208 $16,578
Ratio to average net assets of:
Expenses, net of waivers/
reimbursements 2.18%(e) 2.17% 2.20% 2.20% 2.19% 2.22%(f)
Expenses, before waivers/
reimbursements 2.18%(e) 2.24% 2.20% 2.20% 2.19% 2.22%(f)
Net investment income 1.28%(e) 1.67%(c) 2.15% 2.48% 5.10% 5.52%
Portfolio turnover rate 40% 62% 113% 115% 79% 82%
See footnote summary on page 33.
ALLIANCEBERNSTEIN MULTI-MARKET STRATEGY TRUST o 31
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
Class R Class K Class I
------------------ ----------------- ------------------
March 1, 2005(g) March 1, 2005(g) March 1, 2005(g)
to April, 30, 2005 to April, 30, 2005 to April, 30, 2005
(unaudited) (unaudited) (unaudited)
------------------ ----------------- ------------------
Net asset value, beginning of period $5.70 $5.70 $5.70
Income From Investment Operations
Net investment income(b)(c) .02 .02 .03
Net realized and unrealized gain on
investment and foreign currency
transactions .02 .02 .01
Net increase in net asset value
from operations .04 .04 .04
Less: Dividends
Dividends from net investment income (.02) (.02) (.02)
Net asset value, end of period $5.72 $5.72 $5.72
Total Return
Total investment return based on net
asset value(d) .70% .74% .78%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted) $10 $10 $10
Ratio to average net assets of:
Expenses, net of
waivers/reimbursements(e) 1.44% 1.16% .90%
Expenses, before
waivers/reimbursements(e) 1.44% 1.16% .90%
Net investment income(e) 2.28% 2.57% 2.82%
Portfolio turnover rate 40% 40% 40%
See footnote summary on page 33.
32 o ALLIANCEBERNSTEIN MULTI-MARKET STRATEGY TRUST
(a) As required, effective November 1, 2001, the Fund has adopted the
provisions of the AICPA Audit and Accounting Guide, Audits of Investment
Companies, and began amortizing premium on debt securities for financial
statement reporting purposes only. The effect of this change for the year ended
October 31, 2002 was to decrease net investment income per share by $.14,
decrease net realized and unrealized loss on investments per share by $.14 for
Class A, B and C, respectively, and decrease the ratio of net investment income
to average net assets from 5.56% to 3.22% for Class A, from 4.79% to 2.44% for
Class B and from 4.83% to 2.48% for Class C. Per share, ratios and supplemental
data for periods prior to November 1, 2001 have not been restated to reflect
this change in presentation.
(b) Based on average shares outstanding.
(c) Net of waivers/reimbursements by the Adivser.
(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 charge or contingent
deferred sales charge is not reflected in the calculation of the 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) 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
------------------------
Class A 1.50%
Class B 2.27%
Class C 2.21%
(g) Commencement of distribution.
ALLIANCEBERNSTEIN MULTI-MARKET STRATEGY TRUST o 33
BOARD OF DIRECTORS
William H. Foulk, Jr.(1), Chairman
Ruth Block(1)
David H. Dievler(1)
John H. Dobkin(1)
OFFICERS(2)
Marc O. Mayer, President
Philip L. Kirstein, Senior Vice President and Independent Compliance Officer
Michael L. Mon, Vice President
Douglas J. Peebles, Vice President
Mark R.Manley, Secretary
Mark D. Gersten, Treasurer and Chief Financial Officer
Vincent S. Noto, Controller
Principal Underwriter
AllianceBernstein Investment Research and Management, Inc.
1345 Avenue of the Americas
New York, NY 10105
Custodian
Brown Brothers Harriman & Co.
40 Water Street
Boston, MA 02109
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 Registered Public Accounting Firm
Ernst & Young LLP
5 Times Square
New York, NY 10036
(1) Member of the Audit Committee, the Governance and Nominating Committee and
Independent Directors Committee.
(2) The day-to-day management of and investment decisions for the Fund's
portfolio are made by the Global Fixed Income Investment Team, comprised of
senior Global Fixed Income Team members.
34 o ALLIANCEBERNSTEIN MULTI-MARKET STRATEGY TRUST
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
Mid-Cap Growth Fund
Large Cap Growth Fund*
Small Cap Growth Portfolio
Global & International
Global Health Care Fund*
Global Research Growth Fund
Global Technology Fund*
Greater China '97 Fund
International Growth Fund*
International Research Growth Fund*
Value Funds
- -------------------------------------------------------------------------------
Domestic
Balanced Shares
Focused Growth & Income Fund*
Growth & Income Fund
Real Estate Investment Fund
Small/Mid-CapValue Fund*
Utility Income Fund
Value Fund
Global & International
Global Value Fund
International Value Fund
Taxable Bond Funds
- -------------------------------------------------------------------------------
Americas Government Income Trust
Corporate Bond Portfolio
Emerging Market Debt Fund
Global Strategic Income Trust
High Yield Fund
Multi-Market Strategy Trust
Quality Bond Portfolio
Short Duration Portfolio
U.S. Government Portfolio
Municipal Bond Funds
- -------------------------------------------------------------------------------
National
Insured National
Arizona
California
Insured California
Florida
Massachusetts
Michigan
Minnesota
New Jersey
New York
Ohio
Pennsylvania
Virginia
Intermediate Municipal Bond Funds
- -------------------------------------------------------------------------------
Intermediate California
Intermediate Diversified
Intermediate New York
Closed-End Funds
- -------------------------------------------------------------------------------
All-Market Advantage Fund
ACM Income Fund
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. You should read the prospectus carefully before you invest.
* Prior to December 15, 2004, these Funds were named as follows: Global Health
Care Fund was Health Care Fund; Large Cap Growth Fund was Premier Growth Fund;
Global Technology Fund was Technology Fund; and Focused Growth & Income Fund
was Disciplined Value Fund. Prior to February 1, 2005, Small/Mid-Cap Value Fund
was named Small Cap Value Fund. Prior to May 16, 2005, International Growth
Fund was named Worldwide Privatization Fund and International Research Growth
Fund was named International Premier Growth Fund. On June 24, 2005, All-Asia
Investment Fund merged into International Research GrowthFund. On July 8, 2005,
New Europe Fund will merge into International Research Growth 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 MULTI-MARKET STRATEGY TRUST o 35
NOTES
36 o ALLIANCEBERNSTEIN MULTI-MARKET STRATEGY TRUST
ALLIANCEBERNSTEIN MULTI-MARKET STRATEGY TRUST
1345 Avenue of the Americas
New York, NY 10105
(800) 221-5672
MMSTSR0405
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.
Please see Schedule of Investments contained in the Report to Shareholders
included under Item 1 of this Form N-CSR.
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
over financial reporting during the second fiscal quarter of the period 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 Multi-Market Strategy Trust, Inc.
By: /s/ Marc O. Mayer
__________________
Marc O. Mayer
President
Date: June 29, 2005
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 29, 2005
By: /s/ Mark D. Gersten
__________________
Mark D. Gersten
Treasurer and Chief Financial Officer
Date: June 29, 2005