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, 2005
Date of reporting period: April 30, 2005
ITEM 1. REPORTS TO STOCKHOLDERS.
[LOGO] AllianceBernstein (R)
Investment Research and Management
AllianceBernstein All-Asia
Investment Fund
International Regional
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 publishes full
portfolio holdings for the Fund monthly at www.alliancebernstein.com.
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 27, 2005
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, 2005. Based on the recent approval by All-Asia
Investment Fund shareholders on June 24, 2005, current shareholders will receive
an equal investment in the AllianceBernstein International Research Growth Fund
in exchange for their All-Asia Investment Fund shares and will assume that
Fund's new name. Shortly thereafter, shareholders will receive a new
AllianceBernstein International Research Growth Fund prospectus and a letter
explaining relevant changes.
Investment Objective and Policies
All-Asia Investment Fund is an open-end fund that 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 table on page 4 shows the Fund's performance over the past six- and 12-month
periods ended April 30, 2005. The table also provides performance data for the
Fund's benchmark, the Morgan Stanley Capital International (MSCI) AC Asia
Pacific Free Index, as well as the Lipper Pacific Region 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.
The Fund underperformed its benchmark during both the six- and 12-month periods
ended April 30, 2005. The Fund maintained underweighted positions in developed
markets within Asia ex-Japan during both periods under review. The Fund also
held underweighted positions in the Asian emerging markets during the last three
months of the period ended April 30, 2005. India was the largest country bet
within the Asian ex-Japan markets and was a positive contributor to the Fund's
performance.
In Japan, the Fund maintained approximately the same market weight as the
benchmark for both the six- and 12- month periods. Since Japan is the largest
component within the Fund's investment portfolio, negative stock selection in
Japan impacted the Fund's overall performance, especially during the 12-month
period. The six-month period was also affected by broader fears of high oil
prices and the consequent impact on global growth.
Market Review and Investment Strategy
Most Asia ex-Japan markets performed well during both the six- and 12-month
periods ended April 30, 2005. Hong Kong returns were good during the reporting
period, helped by stronger corporate earnings and an improved outlook on
unemployment. Singapore gross domestic product (GDP) growth improved during the
periods under review while Australia, despite a robust economy, was a fairly
valued market. Indonesia, helped by flows and increased confidence in growth,
was the
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AllianceBernstein All-Asia Investment Fund o 1
best performing market. Despite concerns about rising input costs, inflation and
slowing growth, China outperformed during the 12-month period ended April 30,
2005. India recovered despite an unexpected election outcome as the underlying
economic growth was reflected in strong corporate earnings.
Not all markets performed as well. Korean domestic demand outlook remains
questionable while Taiwan technology stocks suffered from poor pricing and
demand environment. The Thai markets were distracted by elections and insurgency
while Malaysia underperformed due to slower growth. Japan trailed other Asia
Pacific countries, dragging the index downward. The slowdown of the Japanese
economic recovery became evident in the first half of the 12-month period; in
the later half of the period, some better economic news enabled the Japanese
market to progress.
The Fund did not have any exposure to stocks in New Zealand, Pakistan, the
Philippines or Sri Lanka during the 12-month period ended April 30, 2005.
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2 o AllianceBernstein All-Asia Investment Fund
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 (4% year 1, 3%
year 2, 2% year 3, 1% year 4); a 1% 1 year contingent deferred sales charge for
Class C shares. Returns for Advisor Class shares will vary due to different
expenses associated with this class. Performance assumes reinvestment of
distributions and does not account for taxes. During the reporting period, the
Adviser 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 on
an annual basis to 3.00%, 3.70%, 3.70% and 2.70% of the average daily net assets
of Class A, Class B, Class C and Advisor Class shares, respectively.
Benchmark Disclosure
The unmanaged Morgan Stanley Capital International (MSCI) AC Asia Pacific Free
Index does not reflect fees and expenses associated with the active management
of a mutual fund portfolio. The MSCI AC Asia Pacific Free Index is a free
float-adjusted market capitalization index that measures the performance of both
developed and emerging markets in 14 Asia Pacific region countries. For both the
six- and 12-month periods ended April 30, 2005, the Lipper Pacific Region Funds
Average consisted of 32 funds. These funds have generally similar investment
objectives to the Fund, 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's assets will be invested in foreign securities (some in emerging
market nations), which can magnify portfolio value fluctuations due to changes
in foreign exchange rates and the possibility of substantial volatility due to
political and economic uncertainties in foreign countries. Investment in the
Fund includes risks not associated with funds that invest exclusively in U.S.
issues. 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 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 Fund's prospectus.
(Historical Performance continued on next page)
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AllianceBernstein All-Asia Investment Fund o 3
HISTORICAL PERFORMANCE
(continued from previous page)
------------------------------------
Returns
THE FUND VS. ITS BENCHMARK ------------------------------------
PERIODS ENDED APRIL 30, 2005 6 Months 12 Months
- --------------------------------------------------------------------------------
AllianceBernstein All-Asia Investment Fund
Class A 7.30% 6.94%
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Class B 6.97% 6.19%
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Class C 6.95% 6.17%
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Advisor Class 7.50% 7.32%
- --------------------------------------------------------------------------------
MSCI AC Asia Pacific Free Index 8.05% 8.87%
- --------------------------------------------------------------------------------
Lipper Pacific Region Funds Average 8.91% 9.13%
- --------------------------------------------------------------------------------
See Historical Performance and Benchmark disclosures on previous page.
(Historical Performance continued on next page)
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4 o AllianceBernstein All-Asia Investment Fund
HISTORICAL PERFORMANCE
(continued from previous page)
AVERAGE ANNUAL RETURNS AS OF APRIL 30, 2005
- --------------------------------------------------------------------------------
NAV Returns SEC Returns
Class A Shares
1 Year 6.94% 2.43%
5 Years -11.52% -12.29%
10 Years -3.14% -3.55%
Class B Shares
1 Year 6.19% 2.19%
5 Years -12.14% -12.14%
10 Years -3.68% -3.68%
Class C Shares
1 Year 6.17% 5.17%
5 Years -12.13% -12.13%
10 Years -3.82% -3.82%
Advisor Class Shares
1 Year 7.32%
5 Years -11.34%
Since Inception* -4.96%
SEC AVERAGE ANNUAL RETURNS (WITH SALES CHARGES)
AS OF THE MOST RECENT CALENDAR QUARTER-END (MARCH 31, 2005)
- --------------------------------------------------------------------------------
Class A Shares
1 Year -0.62%
5 Years -14.00%
10 Years -3.54%
Class B Shares
1 Year -0.85%
5 Years -13.87%
10 Years -3.68%
Class C Shares
1 Year 2.14%
5 Years -13.85%
10 Years -3.78%
* Inception Date: 10/1/96 for Advisor Class shares.
See Historical Performance disclosures on page 3.
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AllianceBernstein All-Asia Investment Fund 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
first line of the table below provides information about actual account values
and actual expenses. You may use the information in this line, 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 in the first
line 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 second line of the table below 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 second line of the table 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*
- --------------------------------------------------------------------------------
Class A
Actual $1,000 $1,073.00 $ 15.42
Hypothetical
(5% return before expenses) $1,000 $1,009.92 $ 14.95
- --------------------------------------------------------------------------------
Class B
Actual $1,000 $1,069.72 $ 18.99
Hypothetical
(5% return before expenses) $1,000 $1,006.45 $ 18.41
- --------------------------------------------------------------------------------
Class C
Actual $1,000 $1,069.47 $ 18.99
Hypothetical
(5% return before expenses) $1,000 $1,006.45 $ 18.41
- --------------------------------------------------------------------------------
Advisor Class
Actual $1,000 $1,075.00 $ 13.89
Hypothetical
(5% return before expenses) $1,000 $1,011.41 $ 13.47
- --------------------------------------------------------------------------------
* Expenses are equal to the classes' annualized expense ratios of 3.00%,
3.70%, 3.70% and 2.70%, respectively, multiplied by the average account
value over the period, multiplied by the number of days in the most recent
fiscal half-year/365 (reflect the one-half year period).
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6 o AllianceBernstein All-Asia Investment Fund
PORTFOLIO SUMMARY
April 30, 2005 (unaudited)
PORTFOLIO STATISTICS
Net Assets ($mil): $26.0
SECTOR BREAKDOWN*
28.4% Finance
15.3% Consumer Manufacturing
14.8% Technology
8.5% Consumer Services
8.1% Basic Industry [PIE GRAPH OMITTED]
7.3% Energy
6.5% Multi-Industry
5.6% Capital Goods
4.2% Health Care
0.7% Transportation
0.6% Utilities
TEN LARGEST HOLDINGS
April 30, 2005 (unaudited)
Percent of
Company U.S. $ Value Net Assets
- --------------------------------------------------------------------------------
Denso Corp. $ 1,029,478 3.9%
- --------------------------------------------------------------------------------
Mitsubishi Tokyo Financial Group, Inc. 1,019,893 3.9
- --------------------------------------------------------------------------------
Mitsubishi Corp. 971,500 3.7
- --------------------------------------------------------------------------------
JFE Holdings, Inc. 951,732 3.7
- --------------------------------------------------------------------------------
Nippon Mining Holdings, Inc. 816,785 3.1
- --------------------------------------------------------------------------------
Honda Motor Co., Ltd. 765,199 2.9
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Hoya Corp. 751,735 2.9
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Sumitomo Mitsui Financial Group, Inc. 748,729 2.9
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Canon, Inc. 728,188 2.8
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Bharti Tele-Ventures, Ltd. 719,423 2.8
- --------------------------------------------------------------------------------
$ 8,502,662 32.6%
* All data are as of April 30, 2005. The Fund's sector breakdown is expressed
as a percentage of total investments and may vary over time.
Please Note: The sector classifications presented herein are based on the sector
categorization methodology of the Adviser.
- --------------------------------------------------------------------------------
AllianceBernstein All-Asia Investment Fund o 7
PORTFOLIO OF INVESTMENTS
April 30, 2005 (unaudited)
Company Shares U.S. $ Value
- --------------------------------------------------------------------------------
COMMON STOCKS-97.2%
Australia-12.4%
Australia & New Zealand Banking Group, Ltd. ...... 29,374 $ 495,916
BHP Billiton, Ltd. ............................... 52,073 658,794
James Hardie Industries NV ....................... 23,390 102,563
National Australia Bank, Ltd. .................... 8,868 202,737
Perpetual Trustees Australia, Ltd. ............... 10,424 421,197
QBE Insurance Group, Ltd. ........................ 31,106 363,809
St. George Bank, Ltd. ............................ 17,673 342,134
Westpac Banking Corp., Ltd. ...................... 17,169 262,368
Woodside Petroleum, Ltd. ......................... 20,191 372,810
----------
3,222,328
----------
China-2.6%
China Petroleum and Chemical Corp.
(Sinopec) Cl. H .................................. 746,000 293,435
China Telecom Corp., Ltd. Cl. H .................. 430,000 146,373
CNOOC, Ltd. ...................................... 415,000 223,269
----------
663,077
----------
Hong Kong-5.1%
Cheung Kong Holdings, Ltd. ....................... 25,000 236,326
Esprit Holdings, Ltd. ............................ 67,000 499,134
Li & Fung, Ltd. .................................. 160,000 306,903
Sun Hung Kai Properties, Ltd. .................... 30,000 287,301
----------
1,329,664
----------
India-4.3%
Bharti Tele-Ventures, Ltd.(a) .................... 151,470 719,423
Infosys Technologies, Ltd. ....................... 7,200 311,935
Tata Motors, Ltd. ................................ 10,100 95,255
----------
1,126,613
----------
Japan-60.4%
ACOM Co., Ltd. ................................... 4,780 307,260
Aeon Credit Service Co., Ltd. .................... 5,300 350,115
Astellas Pharma, Inc. ............................ 7,800 282,432
Canon, Inc. ...................................... 14,000 728,188
Daido Steel Co., Ltd. ............................ 50,000 196,928
Denso Corp. ...................................... 43,500 1,029,478
East Japan Railway Co. ........................... 36 187,325
Funai Electric Co., Ltd. ......................... 4,400 498,746
Hitachi Chemical Co., Ltd. ....................... 14,300 243,827
Honda Motor Co., Ltd. ............................ 15,900 765,199
Hoya Corp. ....................................... 7,200 751,735
Japan Wind Development Co., Ltd.(a) .............. 59 130,539
JFE Holdings, Inc. ............................... 34,300 951,732
Leopalace21 Corp. ................................ 22,400 341,975
Mitsubishi Corp. ................................. 70,900 971,500
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8 o AllianceBernstein All-Asia Investment Fund
Company Shares U.S. $ Value
- --------------------------------------------------------------------------------
Mitsubishi Tokyo Financial Group, Inc. ........... 118 $ 1,019,893
Mitsui & Co., Ltd. ............................... 72,000 683,316
NHK Spring Co., Ltd. ............................. 66,000 501,631
Nidec Corp. ...................................... 2,200 258,277
Nippon Mining Holdings, Inc. ..................... 135,000 816,785
Nitto Denko Corp. ................................ 12,100 659,855
NOK Corp. ........................................ 19,900 519,029
Nomura Holdings, Inc. ............................ 33,200 422,374
Sankyo Co., Ltd. ................................. 3,600 177,545
Shionogi & Co., Ltd. ............................. 28,000 389,126
Sumitomo Mitsui Financial Group, Inc. ............ 116 748,729
Suzuki Motor Corp. ............................... 20,600 350,855
Takeda Pharmaceutical Co., Ltd. .................. 7,800 379,587
TDK Corp. ........................................ 4,000 278,625
Tokyo Electron, Ltd. ............................. 7,500 385,301
Toyoda Machine Works, Ltd. ....................... 32,000 327,518
Yasuragi Co., Ltd.(a) ............................ 2,700 90,446
-----------
15,745,871
-----------
Malaysia-0.7%
Public Bank Berhad ............................... 106,000 192,822
-----------
Singapore-2.0%
Oversea-Chinese Banking Corp. .................... 32,000 262,276
Singapore Airlines, Ltd. ......................... 38,000 260,259
-----------
522,535
-----------
South Korea-5.0%
Hyundai Motor Co. ................................ 3,460 188,317
Kookmin Bank ..................................... 6,880 292,049
Samsung Electronics Co., Ltd. .................... 1,210 553,405
Shinhan Financial Group Co., Ltd. ................ 10,170 265,418
-----------
1,299,189
-----------
Taiwan-4.0%
Cathay Financial Holding Co., Ltd. ............... 72,830 131,719
Chinatrust Financial Holding Co., Ltd. ........... 129,271 148,599
Hon Hai Precision Industry Co., Ltd. ............. 70,954 337,289
Taiwan Semiconductor Manufacturing Co., Ltd. ..... 245,754 409,078
-----------
1,026,685
-----------
Thailand-0.7%
Advanced Info Service Public Co., Ltd. ........... 79,100 190,506
-----------
Total Investments-97.2%
(cost $19,214,244) ............................ 25,319,290
Other assets less liabilities-2.8% ............... 735,196
-----------
Net Assets-100% .................................. $26,054,486
-----------
(a) Non-income producing security.
See notes to financial statements.
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AllianceBernstein All-Asia Investment Fund o 9
STATEMENT OF ASSETS & LIABILITIES
April 30, 2005 (unaudited)
Investments in securities, at value (cost $19,214,244) ....... $ 25,319,290
Cash ......................................................... 581,994
Foreign cash, at value (cost $378,182) ....................... 381,835
Dividends and interest receivable ............................ 101,809
Receivable for capital stock sold ............................ 60,650
Receivable for investment securities sold .................... 22,223
------------
Total assets ................................................. 26,467,801
------------
Liabilities
Payable for investment securities purchased .................. 116,893
Payable for capital stock redeemed ........................... 108,935
Distribution fee payable ..................................... 12,820
Advisory fee payable ......................................... 11,743
Transfer Agent fee payable ................................... 11,112
Accrued expenses ............................................. 151,812
------------
Total liabilities ............................................ 413,315
------------
Net Assets ................................................... $ 26,054,486
------------
Composition of Net Assets
Capital stock, at par ........................................ $ 4,269
Additional paid-in capital ................................... 39,318,854
Accumulated net investment loss .............................. (184,369)
Accumulated net realized loss on investment
and foreign currency transactions ......................... (19,193,979)
Net unrealized appreciation of investments
and foreign currency denominated assets and liabilities ... 6,109,711
------------
$ 26,054,486
------------
Calculation of Maximum Offering Price Per Share
Net Asset Value and: Maximum
----------------------- -------------
Shares Offering Redemption Offering
Class Net Assets Outstanding Price Price Price*
- --------------------------------------------------------------------------------
A $ 8,260,967 1,307,358 -- $ 6.32 $ 6.60
- --------------------------------------------------------------------------------
B $ 8,947,553 1,535,580 $ 5.83 -- --
- --------------------------------------------------------------------------------
C $ 3,408,138 582,867 $ 5.85 -- --
- --------------------------------------------------------------------------------
Advisor $ 5,437,828 843,172 $ 6.45 $ 6.45 --
- --------------------------------------------------------------------------------
* The maximum offering price per share for Class A shares includes a sales
charge of 4.25%.
See notes to financial statements.
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10 o AllianceBernstein All-Asia Investment Fund
STATEMENT OF OPERATIONS
Six Months Ended April 30, 2005 (unaudited)
Investment Income
Dividends (net of foreign taxes
withheld of $25,421)................ $ 257,935
Interest............................... 2,148 $ 260,083
---------------
Expenses
Management fee......................... 101,438
Distribution fee--Class A.............. 12,715
Distribution fee--Class B.............. 48,248
Distribution fee--Class C.............. 17,654
Custodian.............................. 86,746
Transfer agency........................ 79,198
Legal.................................. 40,548
Audit.................................. 31,860
Printing............................... 28,070
Directors' fees and expenses........... 28,006
Registration........................... 23,522
Administrative......................... 21,000
Miscellaneous.......................... 8,228
---------------
Total expenses......................... 527,233
Less: expenses waived and reimbursed
by the Adviser (see Note B)......... (83,153)
Less: expense offset arrangement
(see Note B)........................ (286)
---------------
Net expenses........................... 443,794
---------------
Net investment loss.................... (183,711)
---------------
Realized and Unrealized Gain (Loss) on
Investment and Foreign Currency
Transactions
Net realized gain (loss) on:
Investment transactions............. 1,500,361
Foreign currency transactions....... (1,443)
Net change in unrealized appreciation/
depreciation of:
Investments......................... 537,832
Foreign currency denominated
assets and liabilities........... 2,560
---------------
Net gain on investment and foreign
currency transactions.................. 2,039,310
---------------
Net Increase in Net Assets
from Operations..................... $ 1,855,599
---------------
See notes to financial statements.
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AllianceBernstein All-Asia Investment Fund o 11
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 loss.................... $ (183,711) $ (460,615)
Net realized gain on investment and
foreign currency transactions....... 1,498,918 2,406,857
Net change in unrealized
appreciation/depreciation of
investments and foreign currency
denominated assets and liabilities.. 540,392 (378,531)
--------------- ---------------
Net increase in net assets from
operations.......................... 1,855,599 1,567,711
Capital Stock Transactions
Net decrease........................... (1,535,775) (2,914,172)
--------------- ---------------
Total increase (decrease).............. 319,824 (1,346,461)
Net Assets
Beginning of period.................... 25,734,662 27,081,123
--------------- ---------------
End of period (including accumulated
net investment loss of $184,369 and
$658, respectively)................. $ 26,054,486 $ 25,734,662
--------------- ---------------
See notes to financial statements.
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12 o AllianceBernstein All-Asia Investment Fund
NOTES TO FINANCIAL STATEMENTS
April 30, 2005 (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% for purchases not
exceeding $1,000,000. With respect to purchases of $1,000,000 or more, Class A
shares redeemed within one year of purchase may be subject to a contingent
deferred sales charge of 1%. Class B shares are currently sold with a contingent
deferred sales charge which declines from 4% to zero depending on the period of
time the shares are held. Class B shares will automatically convert to Class A
shares eight years after the end of the calendar month of purchase. Class C
shares are subject to a contingent deferred sales charge of 1% on redemptions
made within the first year after purchase. 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 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 ofAdditional 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")
- --------------------------------------------------------------------------------
AllianceBernstein All-Asia Investment Fund o 13
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 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. To account for this, the Fund may frequently value
many of its foreign equity securities using fair value prices based on third
party vendor modeling tools to the extent available.
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.
- --------------------------------------------------------------------------------
14 o AllianceBernstein All-Asia Investment Fund
Net realized gain or loss on foreign currency transactions represents foreign
exchange gains and losses from sales and maturities of foreign fixed income
investments, foreign currency exchange contracts, holding of foreign currencies,
currency gains or losses realized between the trade and settlement dates on
foreign investment transactions, and the difference between the amounts of
dividends, interest and foreign withholding taxes recorded on the Fund's books
and the U.S. dollar equivalent amounts actually received or paid. Net unrealized
currency gains and losses from valuing foreign currency denominated assets and
liabilities at period end exchange rates are reflected as a component of net
unrealized appreciation 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 provisions for federal income or excise taxes are
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. 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 or as soon as the Fund is
informed of the dividend. 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 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.
- --------------------------------------------------------------------------------
AllianceBernstein All-Asia Investment Fund o 15
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 1% 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 .75% of the first $2.5 billion, .65% of the next $2.5
billion and .60% in excess of $5 billion, of the Fund's average daily net
assets. The 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
daily average net assets for the Class A, Class B, Class C and Advisor Class
shares, respectively. For the six months ended April 30, 2005, such waiver
amounted to $62,153.
Effective January 1, 2004 through September 6, 2004, in contemplation of the
final agreement with the Office of 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 discussed above. 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, 2005, 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 $44,750 for the six months ended April 30,
2005.
For the six months ended April 30, 2005, the Fund's expenses were reduced by
$286 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 $600 from the sales of Class A shares and received
$205, $5,120 and $1,945 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.
- --------------------------------------------------------------------------------
16 o AllianceBernstein All-Asia Investment Fund
Brokerage commissions paid on investment transactions for the six months ended
April 30, 2005, amounted to $39,030, none of which were paid to Sanford C.
Bernstein & Co. LLC and Sanford C. Bernstein Limited, affiliates of the Adviser.
NOTE C
Distribution Services Agreement
The Fund has adopted a Distribution Services Agreement (the "Agreement")
pursuant to Rule 12b-1 under the Investment Company Act of 1940. Under the
Agreement, the Fund pays distribution and servicing fees to the Distributor at
an annual rate of up to .30% of the Fund's average daily net assets attributable
to Class A shares and 1% of the 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 $3,830,509 and $888,975 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, 2005, were as follows:
Purchases Sales
--------------- ---------------
Investment securities (excluding
U.S. government securities)......... $ 13,483,544 $ 11,472,513
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........................... $ 6,384,417
Gross unrealized depreciation........................... (279,371)
---------------
Net unrealized appreciation............................. $ 6,105,046
---------------
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 port-
- --------------------------------------------------------------------------------
AllianceBernstein All-Asia Investment Fund o 17
folio 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.
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, 2005 October 31, April 30, 2005 October 31,
(unaudited) 2004 (unaudited) 2004
- --------------------------------------------------------------------------------
Class A
Shares sold 203,767 1,008,545 $ 1,297,793 $ 5,781,634
- --------------------------------------------------------------------------------
Shares converted
from Class B 50,712 149,883 323,348 877,947
- --------------------------------------------------------------------------------
Shares redeemed (299,498) (1,326,234) (1,905,717) (7,559,963)
- --------------------------------------------------------------------------------
Net decrease (45,019) (167,806) $ (284,576) $ (900,382)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
18 o AllianceBernstein All-Asia Investment Fund
-------------------------------- ---------------------------------
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 B
Shares sold 115,214 457,600 $ 675,136 $ 2,442,258
- --------------------------------------------------------------------------------
Shares converted
to Class A (54,877) (162,552) (323,348) (877,947)
- --------------------------------------------------------------------------------
Shares redeemed (278,527) (762,646) (1,633,655) (4,051,897)
- --------------------------------------------------------------------------------
Net decrease (218,190) (467,598) $ (1,281,867) $ (2,487,586)
- --------------------------------------------------------------------------------
Class C
Shares sold 77,691 514,702 $ 459,689 $ 2,718,256
- --------------------------------------------------------------------------------
Shares redeemed (114,268) (626,637) (675,537) (3,281,476)
- --------------------------------------------------------------------------------
Net decrease (36,577) (111,935) $ (215,848) $ (563,220)
- --------------------------------------------------------------------------------
Advisor Class
Shares sold 188,618 703,477 $ 1,235,284 $ 4,086,993
- --------------------------------------------------------------------------------
Shares redeemed (150,127) (523,900) (988,768) (3,049,977)
- --------------------------------------------------------------------------------
Net increase 38,491 179,577 $ 246,516 $ 1,037,016
- --------------------------------------------------------------------------------
NOTE F
Risks Involved in Investing in the Fund
Concentration of Risk--Investing in securities of foreign companies involves
special risks which include changes in foreign exchange rates and the
possibility of future political and economic developments which could adversely
affect the value of such securities. Moreover, securities of many foreign
companies and their markets may be less liquid and their prices more volatile
than those of comparable 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.
Indemnification of 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.
- --------------------------------------------------------------------------------
AllianceBernstein All-Asia Investment Fund o 19
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, 2005.
NOTE H
Components of Accumulated Earnings (Deficit)
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. As of October 31,
2004, the components of accumulated earnings/(deficit) on a tax basis were as
follows:
Accumulated capital and other losses.................... $ (20,457,059)(a)
Unrealized appreciation/(depreciation).................. 5,332,823(b)
--------------
Total accumulated earnings/(deficit).................... $ (15,124,236)
--------------
(a) On October 31, 2004, the Fund had a net capital loss carryforward of
$20,457,059 of which $16,705,900 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, $2,216,233 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.
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
- --------------------------------------------------------------------------------
20 o AllianceBernstein All-Asia Investment Fund
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;
(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
- --------------------------------------------------------------------------------
AllianceBernstein All-Asia Investment Fund o 21
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.
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.
- --------------------------------------------------------------------------------
22 o AllianceBernstein All-Asia Investment Fund
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 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.
- --------------------------------------------------------------------------------
AllianceBernstein All-Asia Investment Fund o 23
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 2001 2000
-------------------------------------------------------------------------------------------
Net asset value,
beginning of period......... $5.89 $5.52 $4.57 $5.24 $9.71 $10.46
-------------------------------------------------------------------------------------------
Income From Investment
Operations
Net investment loss(a)......... (.03)(b) (.08)(b)(c) (.05)(b) (.11)(b) (.15)(b) (.19)
Net realized and unrealized
gain (loss) on investment
and foreign currency
transactions................ .46 .45 1.00 (.56) (3.21) (.56)
-------------------------------------------------------------------------------------------
Net increase (decrease) in net
asset value from
operations.................. .43 .37 .95 (.67) (3.36) (.75)
-------------------------------------------------------------------------------------------
Less: Distributions
Distributions from net realized
gains on investment and
foreign currency
transactions................ -0- -0- -0- -0- (1.01) -0-
Distributions in excess of net
realized gains.............. -0- -0- -0- -0- (.10) -0-
-------------------------------------------------------------------------------------------
Total distributions............ -0- -0- -0- -0- (1.11) -0-
-------------------------------------------------------------------------------------------
Net asset value, end of
period...................... $ 6.32 $ 5.89 $ 5.52 $ 4.57 $ 5.24 $ 9.71
===========================================================================================
Total Return
Total investment return based
on net asset value(d)....... 7.30% 6.70% 20.79% (12.79)% (38.77)% (7.17)%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted)............. $8,261 $7,963 $8,385 $8,168 $9,637 $20,436
Ratio to average net assets of:
Expenses, net of
waivers/reimbursements ... 3.00%(e) 3.00% 3.00% 3.00% 3.00% 2.35%(f)
Expenses, before
waivers/reimbursements ... 3.57%(e) 4.17% 4.85% 4.26% 3.19% 2.35%
Expenses, before
waivers/reimbursements
excluding interest
expense................... 3.57%(e) 4.17% 4.85% 4.26% 3.19% 2.30%(g)
Net investment loss.......... (1.06)%(b)(e) (1.38)%(b)(c) (1.18)%(b) (1.99)%(b) (2.20)%(b) (1.51)%
Portfolio turnover rate........ 43% 137% 146% 207% 150% 153%
See footnote summary on page 28.
- --------------------------------------------------------------------------------
24 o AllianceBernstein All-Asia Investment Fund
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 2001 2000
-------------------------------------------------------------------------------------------
Net asset value,
beginning of period.......... $5.45 $5.14 $4.29 $ 4.95 $ 9.30 $10.09
-------------------------------------------------------------------------------------------
Income From Investment
Operations
Net investment loss(a).......... (.05)(b) (.11)(b)(c) (.08)(b) (.13)(b) (.18)(b) (.29)
Net realized and unrealized
gain (loss) on investment
and foreign currency
transactions................. .43 .42 .93 (.53) (3.06) (.50)
-------------------------------------------------------------------------------------------
Net increase (decrease) in net
asset value from
operations .................. .38 .31 .85 (.66) (3.24) (.79)
-------------------------------------------------------------------------------------------
Less: Distributions
Distributions from net realized
gains on investment and
foreign currency
transactions................. -0- -0 - -0- -0- (1.01) -0-
Distributions in excess of net
realized gains............... -0- -0 - -0- -0- (.10) -0-
-------------------------------------------------------------------------------------------
Total distributions............. -0- -0 - -0- -0- (1.11) -0-
-------------------------------------------------------------------------------------------
Net asset value, end of
period ...................... $ 5.83 $ 5.45 $ 5.14 $ 4.29 $ 4.95 $ 9.30
-------------------------------------------------------------------------------------------
Total Return
Total investment return based
on net asset value(d)........ 6.97% 6.03% 19.81% (13.33)% (39.25)% (7.83)%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted).............. $8,947 $9,556 $11,419 $10,513 $14,640 $35,927
Ratio to average net assets of:
Expenses, net of
waivers/reimbursements .... 3.70%(e) 3.70% 3.70% 3.70% 3.70% 3.18%(f)
Expenses, before
waivers/reimbursements .... 4.39%(e) 4.99% 5.70% 5.11% 4.00% 3.18%
Expenses, before
waivers/reimbursements
excluding interest
expense ................... 4.39%(e) 4.99% 5.70% 5.11% 4.00% 3.13%(g)
Net investment loss........... (1.78)%(b)(e) (2.09)%(b)(c) (1.90)%(b) (2.69)%(b) (2.94)%(b) (2.32)%
Portfolio turnover rate......... 43% 137% 146% 207% 150% 153%
See footnote summary on page 28.
- --------------------------------------------------------------------------------
AllianceBernstein All-Asia Investment Fund o 25
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 2001 2000
-------------------------------------------------------------------------------------------
Net asset value,
beginning of period.......... $5.47 $5.16 $4.30 $ 4.96 $ 9.32 $10.12
-------------------------------------------------------------------------------------------
Income From Investment
Operations
Net investment loss(a).......... (.05)(b) (.11)(b)(c) (.08)(b) (.14)(b) (.18)(b) (.29)
Net realized and unrealized
gain (loss) on investment
and foreign currency
transactions................. .43 .42 .94 (.52) (3.07) (.51)
-------------------------------------------------------------------------------------------
Net increase (decrease) in net
asset value from
operations .................. .38 .31 .86 (.66) (3.25) (.80)
-------------------------------------------------------------------------------------------
Less: Distributions
Distributions from net realized
gains on investment and
foreign currency
transactions................. -0- -0- -0- -0- (1.01) -0-
Distributions in excess of net
realized gains............... -0- -0- -0- -0- (.10) -0-
-------------------------------------------------------------------------------------------
Total distributions............. -0- -0- -0- -0- (1.11) -0-
-------------------------------------------------------------------------------------------
Net asset value, end of
period ...................... $ 5.85 $ 5.47 $ 5.16 $ 4.30 $ 4.96 $ 9.32
-------------------------------------------------------------------------------------------
Total Return
Total investment return based
on net asset value(d)........ 6.95% 6.01% 20.00% (13.31)% (39.28)% (7.90)%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted).............. $3,408 $3,387 $3,773 $2,805 $3,695 $11,284
Ratio to average net assets of:
Expenses, net of
waivers/reimbursements .... 3.70%(e) 3.70% 3.70% 3.70% 3.70% 3.18%(f)
Expenses, before
waivers/reimbursements .... 4.30%(e) 4.90% 5.59% 5.00% 3.94% 3.18%
Expenses, before
waivers/reimbursements
excluding interest
expense.................... 4.30%(e) 4.90% 5.59% 5.00% 3.94% 3.13%(g)
Net investment loss........... (1.78)%(b)(e) (2.07)%(b)(c) (1.80)%(b) (2.74)%(b) (2.93)%(b) (2.31)%
Portfolio turnover rate......... 43% 137% 146% 207% 150% 153%
See footnote summary on page 28
- --------------------------------------------------------------------------------
26 o AllianceBernstein All-Asia Investment Fund
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
-------------------------------------------------------------------------------------------
Advisor Class
-------------------------------------------------------------------------------------------
Six Months
Ended
April 30, Year Ended October 31,
2005 ---------------------------------------------------------------------
(unaudited) 2004 2003 2002 2001 2000
-------------------------------------------------------------------------------------------
Net asset value,
beginning of period.......... $6.00 $5.61 $4.64 $5.31 $9.81 $10.54
-------------------------------------------------------------------------------------------
Income From Investment
Operations
Net investment loss(a).......... (.03)(b) (.06)(b)(c) (.04)(b) (.09)(b) (.12)(b) (.17)
Net realized and unrealized
gain (loss) on investment
and foreign currency
transactions................. .48 .45 1.01 (.58) (3.27) (.56)
-------------------------------------------------------------------------------------------
Net increase (decrease) in net
asset value from
operations ................. .45 .39 .97 (.67) (3.39) (.73)
-------------------------------------------------------------------------------------------
Less: Distributions
Distributions from net realized
gains on investment and
foreign currency
transactions................. -0- -0- -0- -0- (1.01) -0-
Distributions in excess of net
realized gains............... -0- -0- -0- -0- (.10) -0-
-------------------------------------------------------------------------------------------
Total distributions............. -0- -0- -0- -0- (1.11) -0-
-------------------------------------------------------------------------------------------
Net asset value, end of period $ 6.45 $ 6.00 $ 5.61 $ 4.64 $ 5.31 $ 9.81
-------------------------------------------------------------------------------------------
Total Return
Total investment return based
on net asset value(d)........ 7.50% 6.95% 20.91% (12.62)% (38.68)% (6.93)%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted).............. $5,438 $4,829 $3,504 $2,528 $2,736 $5,155
Ratio to average net assets of:
Expenses, net of
waivers/reimbursements .... 2.70%(e) 2.70% 2.70% 2.70% 2.70% 2.19%(f)
Expenses, before
waivers/reimbursements .... 3.27%(e) 3.82% 4.53% 3.96% 2.89% 2.19%
Expenses, before
waivers/reimbursements
excluding interest
expense................... 3.27%(e) 3.82% 4.53% 3.96% 2.89% 2.14%(g)
Net investment loss.......... (.79)%(b)(e) (1.08)%(b)(c) (.91)%(b) (1.69)%(b) (1.90)%(b) (1.31)%
Portfolio turnover rate. 43% 137 % 146% 207% 150% 153%
See footnote summary on page 28.
- --------------------------------------------------------------------------------
AllianceBernstein All-Asia Investment Fund o 27
(a) Based on average shares outstanding.
(b) Net of expenses waived/reimbursed by the Adviser.
(c) Net of expenses waived by the Transfer Agent.
(d) Total investment return is calculated assuming an initial investment made at
the net asset value at the beginning of the period, reinvestment of all
dividends and distributions at net asset value during the period, and
redemption on the last day of the period. Initial sales charges or
contingent deferred sales charges are not reflected in the calculation of
total investment return. Total return does not reflect the deduction of
taxes that a shareholder would pay on fund distributions or the redemption
of fund shares. Total investment return calculated for a period of less than
one year is not annualized.
(e) Annualized
(f) 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............... 2.34%
Class B............... 3.17%
Class C............... 3.16%
Advisor Class......... 2.18%
(g) Net of interest expense of .04 % on credit facility. (see Note G)
- --------------------------------------------------------------------------------
28 o AllianceBernstein All-Asia Investment Fund
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 and Chief Executive Officer
Philip L.Kirstein, Senior Vice President and Independent Compliance Officer
Hiroshi Motoki(2), Senior Vice President
Thomas J. Bardong, Vice President
Russell Brody, Vice President
Bhaskar Laxminarayan(2), 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 Registered Public
Accounting Firm
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, Governance and Nominating Committee and
Independent Directors Committee.
(2) Messrs. Motoki and Laxminarayan are the persons primarily responsible for
the day-to-day management of the Fund's investment portfolio.
- --------------------------------------------------------------------------------
AllianceBernstein All-Asia Investment Fund o 29
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-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.
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.
- --------------------------------------------------------------------------------
30 o AllianceBernstein All-Asia Investment Fund
NOTES
- --------------------------------------------------------------------------------
AllianceBernstein All-Asia Investment Fund o 31
NOTES
- --------------------------------------------------------------------------------
32 o AllianceBernstein All-Asia Investment Fund
ALLIANCEBERNSTEIN ALL-ASIA INVESTMENT FUND
1345 Avenue of the Americas
New York, NY 10105
(800) 221-5672
[LOGO] AllianceBernstein (R)
Investment Research and Management
AAFSR0405
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 All-Asia Investment Fund, 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