ALLIANCE GLOBAL ENVIRONMENT FUND
ANNUAL REPORT
OCTOBER 31, 1995
AN INVESTMENT WITH A CLEAR FUTURE
LETTER TO SHAREHOLDERS ALLIANCE GLOBAL ENVIRONMENT FUND, INC.
_______________________________________________________________________________
December 4, 1995
Dear Shareholder:
For the fiscal year ended October 31, 1995, Alliance Global Environment Fund's
net asset value increased to $12.37 per share from $11.74 on October 31, 1994,
and the Fund achieved a total return of +5.37% on a net asset value basis. Over
the same period, the FASC Global Environmental Stock Index, which includes the
U.S., Japan and Europe, returned -3.00%.
A number of changes have occurred since we last reported to you in April.
Specifically, Jeremy Kramer has assumed responsibility for the Fund's portfolio
management. Mr. Kramer, who joined Alliance Capital in 1994 as an analyst
following railroads, trucking companies and conglomerates, is currently a
portfolio manager and analyst for the Hudson River Group, one of Alliance's
three large domestic portfolio teams. Prior to joining Alliance, he was with
Neuberger & Berman for six years, where as an analyst he followed railroads,
conglomerates and environmental services. Mr. Kramer earned an M.B.A. degree
from Harvard University.
INVESTMENT ACTIVITY
Other changes to the portfolio reflect an effort to better align the Fund with
our current market perspective. We have increased the weighting in domestic
solid waste companies due to improving fundamentals such as positive pricing
trends, volume growth and accelerating acquisition activity. We added to the
Fund's positions in WMX Technologies and USA Waste, and initiated positions in
Browning-Ferris, Continental Waste and Republic Industries (formerly Republic
Waste).
A new investment area for the Fund is in companies manufacturing graphite
electrodes for the steel minimill industry. This area, represented by positions
in UCAR International (U.S.) and SGL Carbon (Germany), provides a critical
material enabling minimills to recycle scrap steel. The graphite electrode
industry, which has consolidated over the past several years, enjoys high
operating rates and pricing flexibility.
In looking for new areas of investment opportunities for the Fund, we prefer
companies and industries that are driven by economics and/or an established
regulatory framework. Investing in anticipation of regulatory changes can be
disappointing due to political risks and the uncertainties of the legislative
and regulatory process. For example, revenues and earnings in the solid waste
industry are driven primarily by the basic economics of collection and disposal
of residential and commercial garbage rather than anticipated regulatory
changes.
We begin the Fund's new fiscal year with an optimistic outlook as the portfolio
is well positioned to take advantage of the growth components of the
environmental services industry as well as diversified to include special
situation investments in companies that are beneficiaries of global
environmental concerns. Thank you for your continued interest and investment in
Alliance Global Environment Fund.
Sincerely,
John D. Carifa
Chairman and President
1
TEN LARGEST HOLDINGS
OCTOBER 31, 1995 ALLIANCE GLOBAL ENVIRONMENT FUND, INC.
_______________________________________________________________________________
PERCENT
OF NET
COMPANY U.S.$VALUE ASSETS
- -------------------------------------------------------------------------------
ITT CORP.-Is a diversified conglomerate with a wide
range of subsidiaries. The Company maintains life,
property and casualty insurance, conducts consumer
and commercial lending operations. $ 5,635,000 6.6%
AUSTRALIS MEDIA LTD. (common & cv. note)-Supplies
subscription television services and audio programming. 4,124,113 4.8
USA WASTE SERVICES, INC.-Provides solid waste
management services to municipal, commercial, industrial
and residential customers in the United States. 3,738,000 4.4
SITA (common, warrants & cv. bonds)-
France's largest hazardous waste landfill operator 3,678,157 4.3
GENERALE DES EAUX (common & cv. bonds)-
Major French water company with solid and liquid
waste disposal capabilities 3,454,614 4.0
UCAR INTERNATIONAL, INC.-The company manufactures
graphite and carbon electrodes. 3,371,550 4.0
UNION PACIFIC CORP.-Operates a railroad, a motor
freight business and mining business. It also produces
oil, gas, coal and iron and provides hazardous waste
management services. 3,334,125 3.9
CYTEC INDUSTRIES, INC.-Manufactures and markets
chemical and specialty materials. 3,285,000 3.9
SGL CARBON AG-Its principal products are graphite
electrodes, high-purity graphite, specialty graphite,
graphite foils, carbon fibres and process equipment. 3,280,145 3.8
WMX TECHNOLOGIES, INC.-Provides comprehensive
waste management services to industrial and commercial
customers in North America. 3,234,375 3.8
$37,135,079 43.5%
2
INDUSTRY DIVERSIFICATION
OCTOBER 31, 1995 (UNAUDITED) ALLIANCE GLOBAL ENVIRONMENT FUND, INC.
_______________________________________________________________________________
PERCENT OF
U.S.$VALUE NET ASSETS
- ----------------------------------------------------------------------------
Banking $ 806,250 0.9%
Broadcasting & Cable 4,124,113 4.8
Building & Related 479,955 0.5
Chemicals 14,600,394 17.1
Computer Software 147,000 0.2
Diversified 5,635,000 6.6
Electronics 1,836,000 2.1
Energy 2,368,125 2.8
Machinery 2,360,996 2.8
Mining & Metals 4,417,800 5.2
Multi-Industry 7,060,864 8.3
Pollution Control 30,671,905 35.9
Transportation 10,070,056 11.8
Total Investments(excluding commercial paper) 84,578,458 99.0
Cash and other assets, net of liabilities 838,309 1.0
Net Assets $85,416,767 100.0%
3
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1995 ALLIANCE GLOBAL ENVIRONMENT FUND, INC.
_______________________________________________________________________________
COMPANY SHARES U.S.$VALUE
- ----------------------------------------------------------------------
COMMON STOCKS & OTHER INVESTMENTS-96.4%
AUSTRALIA-4.0%
Australis Media Ltd.* 3,050,000 $2,276,870
Brambles Industries Ltd. 110,000 1,169,743
3,446,613
CANADA-2.1%
Laidlaw, Inc. 138,000 1,249,627
Laidlaw, Inc. Cl. B.(a) 60,000 540,000
1,789,627
FRANCE-7.9%
Generale Des Eaux 36,000 3,345,328
L'Air Liquide* 189 31,687
SITA* 18,258 3,131,969
warrants expiring 5/31/96* 383 115,895
warrants expiring 5/31/97* 953 118,662
6,743,541
GERMANY-3.9%
SGL Carbon AG 50,000 3,280,145
JAPAN-2.8%
Ebara Corp. 170,000 2,360,996
NETHERLANDS-0.7 %
Beheersmaatschappij J. Amerika N.V.*(b) 165,000 627,635
UNITED KINGDOM-3.7%
Allied Colloids Group Plc. 1,245,000 2,617,734
Babcock International Group Plc.
Restricted Shares(c) 181,794 479,955
Caird Group Plc.* 750,000 47,427
3,145,116
UNITED STATES-71.3%
Allied Waste Industries, Inc. 150,000 $1,256,250
ATC Environmental, Inc.* 150,000 2,062,500
BHA Group, Inc. Cl. A. 125,000 1,750,000
Browning-Ferris Industries, Inc. 59,000 1,718,375
Burlington North Santa Fe Corp. 35,500 2,977,563
Citicasters, Inc. Cl. A. 50,000 1,543,750
Continental Waste Industries* 50,000 862,500
Cytec Industries, Inc.* 60,000 3,285,000
Dionex Corp. * 34,000 1,836,000
DST Systems, Inc.* 7,000 147,000
Envirosource, Inc.* 460,000 1,207,500
FMC Gold Co. 270,000 1,046,250
Freeport-McMoran, Inc. 47,500 1,775,312
Harding Associates, Inc.* 200,000 1,375,000
Hercules, Inc. 44,000 2,348,500
IMC Global, Inc. 24,000 1,680,000
International Technology Corp.* 461,300 1,268,575
ITT Corp. 46,000 5,635,000
Monsanto Co. 21,000 2,199,750
Newpark Resources, Inc. 95,000 1,508,125
Republic Waste Industries, Inc. 40,000 860,000
Roosevelt Financial Group, Inc. 50,000 806,250
Sanifill, Inc.* 40,000 1,260,000
Ucar International, Inc.* 118,300 3,371,550
Union Pacific Corp.* 51,000 3,334,125
USA Waste Services, Inc.* 178,000 3,738,000
Wellman, Inc. 52,000 1,222,000
4
ALLIANCE GLOBAL ENVIRONMENT FUND, INC.
_______________________________________________________________________________
SHARES, UNITS
OR PRINCIPAL
AMOUNT
COMPANY (000) U.S.$VALUE
- ----------------------------------------------------------------------
Wheelabrator Technologies, Inc. 210,000 $ 3,018,750
WMX Technologies, Inc. 115,000 3,234,375
Xtra Corp. 59,000 2,588,625
60,916,625
Total Common Stocks (cost $79,613,222) 82,310,298
CONVERTIBLE BONDS-2.6%
AUSTRALIA-2.2%
Australis Media Ltd. Conv. Note* AU$ 2,500 1,847,243
FRANCE-0.4%
Generale Des Eaux
6.00%, 1/01/98(d) 166 109,286
UNITS OR
PRINCIPAL
AMOUNT
COMPANY (000) U.S.$VALUE
- ----------------------------------------------------------------------
SITA
7.00%, 5/16/99(e) 383 $ 311,631
420,917
Total Convertible Bonds (cost $2,133,266) 2,268,160
COMMERCIAL PAPER-6.6%
Merrill Lynch & Co., Inc.
Zero Coupon, 11/01/95
(amortized cost $5,648,000) US$ 5,648 5,648,000
TOTAL INVESTMENTS-105.6%
(cost $87,394,488) 90,226,458
Other assets less liabilites-(5.6)% (4,809,691)
NET ASSETS-100% $85,416,767
* Non-income producing security.
(a) U.S. $ denominated security.
(b) Restricted security, valued at fair value. (See Notes A and E.)
(c) This security has not been registered under the Securities Act of 1933.
This security may be resold in transactions pursuant to Rule 904 of the Act. At
October 31, 1995 this security represented 0.6% of net assets.
(d) Security denominated in units; each unit represents a principal amount of
2,850 frf.
(e) Security denominated in units; each unit represents a principal amount of
4,000 frf.
Pollution Control Bonds represents 35.9% of net assets at October 31, 1995.
See notes to financial statements.
5
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1995 ALLIANCE GLOBAL ENVIRONMENT FUND, INC.
_______________________________________________________________________________
ASSETS
Investments in securities, at value (cost $87,394,488) $90,226,458
Cash 500,351
Receivable for investment securities sold 1,976,178
Dividends and interest receivable 125,725
Prepaid expenses 3,044
Total assets. 92,831,756
LIABILITIES
Payable for investment securities purchased 7,202,509
Management fee payable 79,651
Accrued expenses 132,829
Total liabilities 7,414,989
NET ASSETS $85,416,767
COMPOSITION OF NET ASSETS
Capital stock, at par $ 69,072
Additional paid-in capital 95,285,958
Undistributed net investment income 116,215
Accumulated net realized loss on investments (12,888,093)
Net unrealized appreciation of investments and foreign
currency denominated assets and liabilities 2,833,615
$85,416,767
NET ASSET VALUE PER SHARE(based on 6,907,169 shares outstanding) $12.37
See notes to financial statements.
6
STATEMENT OF OPERATIONS
YEAR ENDED OCTOBER 31, 1995 ALLIANCE GLOBAL ENVIRONMENT FUND, INC.
_______________________________________________________________________________
INVESTMENT INCOME
Dividends(net of foreign taxes withheld of $60,426) $1,306,264
Interest 135,228 $1,441,492
EXPENSES
Advisory fee 890,857
Custodian 110,780
Directors' fees 69,772
Audit and legal 68,107
Transfer agency 36,066
Printing 24,165
Registration 15,502
Amortization of organization expenses 5,951
Miscellaneous 49,347
Total expenses 1,270,547
Net investment income 170,945
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain on investment transactions 403,097
Net realized loss on foreign currency transactions (54,730)
Net change in unrealized appreciation (depreciation) of:
Investments 3,804,384
Foreign currency denominated assets and liabilities (8,487)
Net gain on investments and foreign currency transactions 4,144,264
NET INCREASE IN NET ASSETS FROM OPERATIONS $4,315,209
See notes to financial statements.
7
STATEMENT OF CHANGES IN NET ASSETS ALLIANCE GLOBAL ENVIRONMENT FUND, INC.
_______________________________________________________________________________
YEAR ENDED YEAR ENDED
OCTOBER 31, OCTOBER 31,
1995 1994
------------ ------------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income (loss) $ 170,945 $ (27,643)
Net realized gain (loss) on investments and
foreign currency transactions 348,367 (784,439)
Net change in unrealized appreciation
(depreciation) of investments and foreign
currency denominated assets and liabilities 3,795,897 6,108,242
Net increase in net assets from operations 4,315,209 5,296,160
NET ASSETS
Beginning of year 81,101,558 75,805,398
End of year(including undistributed net investment
income of $116,215 at October 31, 1995) $85,416,767 $81,101,558
See notes to financial statements.
8
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 1995 ALLIANCE GLOBAL ENVIRONMENT FUND, INC.
_______________________________________________________________________________
NOTE A: SIGNIFICANT ACCOUNTING POLICIES
Alliance Global Environment Fund, Inc. (the "Fund"), is registered under the
Investment Company Act of 1940 as a non-diversified, closed-end management
investment company. The following is a summary of significant accounting
policies followed by the Fund.
1. SECURITY VALUATION
All securities listed on an exchange for which market quotations are readily
available are valued at the closing price on the exchange on the day of
valuation or, if no such closing price is available, at the mean of the last
bid and ask price quoted on such day. Securities for which market quotations
are not readily available and restricted securities are valued in good faith at
fair value using methods determined by the Board of Directors. In determining
fair value, consideration is given to cost, operating and other financial data.
Short-term debt securities which mature in 60 days or less are valued at
amortized cost which approximates market value.
2. CURRENCY TRANSLATION
Assets and liabilities denominated in foreign currencies are translated into
U.S. dollars at the mean of the quoted bid and asked price of the respective
currency against the U.S. dollar on the valuation date.
Purchases and sales of portfolio securities are translated at the rates of
exchange prevailing when such securities were acquired or sold. Income and
expenses are translated at rates of exchange prevailing when earned or accrued.
Net realized loss on foreign currency transactions of $54,730 represents net
foreign exchange gains or losses from holding of foreign currencies, currency
gains or losses realized between the trade and settlement dates on security
transactions, and the difference between the amounts of dividends, interest and
foreign taxes recorded on the Fund's books and the U.S. dollar equivalent
amounts actually received or paid. Net change in unrealized appreciation
(depreciation) of foreign currency denominated assets and liabilities of
($8,487) represents net unrealized currency gains and losses from valuing
foreign currency denominated assets and liabilities at fiscal year end exchange
rates.
3. ORGANIZATION EXPENSES
Organization expenses of approximately $50,000 have been deferred and have been
amortized on a straight-line basis through May, 1995.
4. TAXES
It is the Fund's policy to meet the requirements of the U.S. Internal Revenue
Code applicable to regulated investment companies and to distribute all of its
investment company taxable income and net realized gains, if applicable, to
shareholders. Therefore, no provisions for U.S. income or excise taxes are
required. Withholding taxes on foreign interest and dividends have been
provided for in accordance with the applicable tax requirements.
5. INVESTMENT INCOME AND SECURITY TRANSACTIONS
Dividend income is recorded on the ex-dividend date. Interest income is accrued
daily. Security transactions are accounted for on the date securities are
purchased or sold. Security gains and losses are determined on the identified
cost basis. The Fund accretes discounts as adjustments to interest income.
6. DIVIDENDS AND DISTRIBUTIONS
Dividends and distributions to shareholders are recorded on the ex-dividend
date and are determined in accordance with income tax regulations.
7. RECLASSIFICATION OF NET ASSETS
As of October 31, 1995 differences totalling ($54,730) was reclassified from
accumulated net realized loss on investments to undistributed net investment
income. This reclassification was the result of permanent book to tax
differences resulting from foreign currency losses and had no effect on net
assets.
NOTE B: MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under an Investment Management and Administration Agreement, the Fund pays
Alliance Capital Management L.P., "Investment Manager," a fee, calculated
weekly and paid monthly, at an annualized rate of 1.10% of the Fund's average
9
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
ALLIANCE GLOBAL ENVIRONMENT FUND, INC.
_______________________________________________________________________________
weekly net assets up to $100 million, .95 of 1% of the next $100 million of the
Fund's average weekly net assets, and .80 of 1% of the Fund's average weekly
net assets over $200 million. Brokerage commissions paid on securities
transactions for the year ended October 31, 1995, amounted to $347,909, none of
which was paid to affiliated brokers.
NOTE C: INVESTMENT TRANSACTIONS
Purchases and sales of investment securities (excluding short-term investments)
aggregated $86,128,136 and $85,816,408 respectively, for the year ended October
31, 1995. At October 31, 1995, the cost of securities for federal income tax
purposes was $87,641,669. Accordingly, gross unrealized appreciation of
investments was $7,277,856 and gross unrealized depreciation of investments was
$4,693,067 resulting in net unrealized appreciation of $2,584,789 (excluding
foreign currency transactions). At October 31, 1995, the Fund had a capital
loss carryforward of $12,640,912 of which $1,025,909 expires in 1999,
$7,554,180 expires in 2000, $3,250,951 expires in 2001 and $809,872 expires in
2002.
The Fund utilized a capital loss carryover of $650,278 to offset gains realized
during the year ended October 31, 1995. No capital gain distribution is
expected to be paid to shareholders until future net gains have been realized
in excess of the loss carry over.
NOTE D: CAPITAL STOCK
There are 100,000,000 shares of $.01 par value common stock authorized. Of the
6,907,169 shares outstanding at October 31, 1995, the Investment Manager owned
7,169 shares.
NOTE E: RESTRICTED SECURITY
DATE ACQUIRED COST
------------- --------
Beheersmaatchappij J. Amerika N.V 3/19/91 $529,926
The security shown above is restricted as to sale and has been valued at fair
value in accordance with the procedures in Note A.
The value of this security at October 31, 1995 was $627,635 representing 0.7%
of net assets.
NOTE F: QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)
<TABLE>
<CAPTION>
NET REALIZED
AND UNREALIZED NET INCREASE
GAIN (LOSS) ON (DECREASE)
INVESTMENTS AND IN NET ASSETS
NET INVESTMENT FOREIGN CURRENCY RESULTING FROM MARKET PRICE
INCOME (LOSS) TRANSACTIONS OPERATIONS ON NYSE
--------------- ----------------- ------------------ -----------------
TOTAL PER TOTAL PER TOTAL PER
QUARTER ENDED (000) SHARE (000) SHARE (000) SHARE HIGH LOW
- ----------------- ------ ------ -------- ------ -------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
October 31, 1995 $(76) $(.01) $(1,008) $(.15) $(1,084) $(.16) $ 9.875 $9.250
July 31, 1995 203 .03 5,159 .75 5,362 .78 $ 9.750 $9.000
April 30, 1995 33 .01 6,207 .90 6,240 .91 $ 9.125 $8.500
January 31, 1995 11 .00 (6,214) (.90) (6,203) (.90) $ 9.125 $8.625
$171 $ .03 $ 4,144 $ .60 $ 4,315 $ .63
October 31, 1994 $(69) $(.01) $ 1,176 $ .17 $ 1,107 $ .16 $10.250 $9.250
July 31, 1994 131 .02 1,392 .20 1,523 .22 $ 9.875 $9.250
April 30, 1994 1 .00 5,761 .84 5,762 .84 $10.375 $9.000
January 31, 1994 (91) (.01) (3,005) (.44) (3,096) (.45) $10.500 $9.250
$(28) $(.00) $ 5,324 $ .77 $ 5,296 $ .77
</TABLE>
10
FINANCIAL HIGHLIGHTS ALLIANCE GLOBAL ENVIRONMENT FUND, INC.
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH YEAR
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31,
--------------------------------------------------------
1995 1994 1993 1992 1991
--------- --------- --------- --------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year $11.74 $10.97 $10.78 $13.12 $12.46
INCOME FROM INVESTMENT OPERATIONS
Net investment income .03 -0- .01 .01 .13
Net realized and unrealized gain (loss)
on investments and foreign
currency transactions .60 .77 .18 (2.17) .87
Net increase (decrease) in net asset
value from operations .63 .77 .19 (2.16) 1.00
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income -0- -0- -0- (.10) (.25)
Distributions from net realized gain on
securities, options and foreign
currency transactions -0- -0- -0- (.08) (.09)
Total dividends and distributions -0- -0- -0- (.18) (.34)
Net asset value, end of year $12.37 $11.74 $10.97 $10.78 $13.12
Market value, end of year $ 9.375 $ 9.50 $ 9.25 $ 9.50 $11.375
TOTAL RETURN
Total investment return based on: (a)
Market value (1.32)% 2.70% (2.63)% (15.22)% 17.38%
Net asset value 5.37% 7.02% 1.76% (16.59)% 8.66%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (000's omitted) $85,416 $81,102 $75,805 $74,442 $90,612
Ratio of expenses to average net assets 1.57% 1.67% 1.62% 1.63% 1.49%
Ratio of net investment income (loss)
to average net assets .21% (.04)% .15% .10% .95%
Portfolio turnover rate 109% 42% 25% 41% 32%
</TABLE>
(a) Total investment return is calculated assuming a purchase of common stock
on the opening of the first day and a sale on the closing of the last day of
each year reported. Dividends and distributions, if any, are assumed, for
purposes of this calculation, to be reinvested at prices obtained under the
Fund's Dividend Reinvestment and Cash Purchase Plan. Generally, total
investment return based on net asset value will be higher than total investment
return based on market value in years where there is an increase in the
discount or a decrease in the premium of the market value to the net value in
years where there is an increase in the discount or a decrease in the premium
of the market value to the net asset value from the beginning to the end of
such years. Conversely, total investment return based on net asset value will
be lower than total investment return based on market value in years where
there is a decrease in the discount or an increase in the premium of the market
value to the net asset value from the beginning to the end of such years.
11
REPORT OF ERNST &YOUNG LLP
INDEPENDENT AUDITORS ALLIANCE GLOBAL ENVIRONMENT FUND, INC.
_______________________________________________________________________________
TO THE SHAREHOLDERS AND BOARD OF DIRECTORS
ALLIANCE GLOBAL ENVIRONMENT FUND, INC.
We have audited the accompanying statement of assets and liabilities of
Alliance Global Environment Fund, Inc. (the "Fund"), including the portfolio of
investments, as of October 31, 1995, and the related statement of operations
for the year then ended, the statement of changes in net assets for each of the
two years in the period then ended, and the financial highlights for the
periods indicated therein. These financial statements and financial highlights
are the responsibility of the Fund's management. Our responsibility is to
express an opinion on these financial statements and financial highlights based
on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
resonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
October 31, 1995, by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Alliance Global Environment Fund, Inc. at October 31, 1995, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended, and the financial highlights for each
of the indicated periods, in conformity with generally accepted accounting
principles.
Ernst & Young LLP
New York, New York
December 8, 1995
FOREIGN TAX CREDIT (UNAUDITED)
- -------------------------------------------------------------------------------
The Fund has elected to give the benefit to its shareholders of foreign taxes
that have been paid and/or withheld. For the fiscal year ended October 31,
1995, this amounted to $60,426. Although the Fund has made the election
required to make this credit available, the amount of allowable tax credit is
subject to limitation under the Internal Revenue Code.
A notification reflecting the per share amount to be used by taxpayers on their
federal income tax return will be mailed to shareholders in January 1996.
12
ADDITIONAL INFORMATION ALLIANCE GLOBAL ENVIRONMENT FUND, INC.
_______________________________________________________________________________
Shareholders whose shares are registered in their own names will automatically
be participants in the Dividend Reinvestment and Cash Purchase Plan (the
"Plan"), pursuant to which dividends and capital gain distributions to
shareholders will be paid in or reinvested in additional shares of the Fund
(the "Dividend Shares"), State Street Bank and Trust Company (the "Agent") will
act as agent for participants under the Plan. Shareholders whose shares are
held in the name of a broker or nominee should contact such broker or nominee
to determine whether or how they may participate in the Plan.
If the Board declares an income distribution or determines to make a capital
gain distribution payable either in shares or in cash, as holders of the Common
Stock may have elected, non-participants in the Plan will receive cash and
participants in the Plan will receive the equivalent in shares of Common Stock
of the Fund valued as follows:
(I) If the shares of Common Stock are trading at net asset value or at a
premium above net asset value at the time of valuation, the Fund will issue new
shares at the greater of net asset value or 95% of the then current market
price.
(ii) If the shares of Common Stock are trading at a discount from net asset
value at the time of valuation, the Plan Agent will receive the dividend or
distribution in cash and apply it to the purchase of the Fund's shares of
Common stock in the open market, on the New York Stock Exchange or elsewhere,
for the participants' accounts. Such purchases will be made on or shortly after
the payment date for such dividend or distribution and in no event more than 30
days after such date except where temporary curtailment or suspension of
purchase is necessary to comply with Federal securities laws. If, before the
Plan Agent has completed its purchases, the market price exceeds the net asset
value of a share of Common Stock, the average purchase price per share paid by
the Plan Agent may exceed the net asset value of the Fund's shares of Common
Stock, resulting in the acquisition of fewer shares than if the dividend or
distribution had been paid in shares issued by the Fund.
The Agent will maintain all shareholders' accounts in the Plan and furnish
written confirmation of all transactions in the account, including information
needed by shareholders for tax records. Shares in the account of each Plan
participant will be held by the Agent in non-certificate form in the name of
the participant, and each shareholder's proxy will include those shares
purchased or received pursuant to the Plan.
There will be no charges with respect to shares issued directly by the Fund to
satisfy the dividend reinvestment requirements. However, each participant will
pay a pro rata share of brokerage commissions incurred with respect to the
Agent's open market purchases of shares. In each case, the cost per share of
shares purchased for each shareholder's account will be the average cost,
including brokerage commissions, of any shares purchased in the open market
plus the cost of any shares issued by the Fund.
The automatic reinvestment of dividends and distributions will not relieve
participants of any income taxes that may be payable (or required to be
withheld) on dividends and distributions.
Experience under the Plan may indicate that changes are desirable. Accordingly,
the Fund reserves the right to amend or terminate the Plan as applied to any
voluntary cash payments made and any dividend or distribution paid subsequent
to written notice of the change sent to participants in the Plan at least 90
days before the record date for such dividend or distribution. The Plan may
also be amended or terminated by the Agent on at least 90 days' written notice
to participants in the Plan. All correspondence concerning the Plan should be
directed to the Agent at State Street Bank and Trust Company, P.O. Box 366,
Boston, Massachusetts 02101.
Since the filing of the most recent amendment to the Fund's registration
statement with the Securities and Exchange Commission, there have been (i) no
material changes in the Fund's investment objectives or policies, (ii) no
changes to the Fund's charter or by-laws that would delay or prevent a change
of control of the Fund, (iii) no material changes in the principal risk factors
associated with investment in the Fund. The person primarily responsible for
the day-to-day management of the Fund's portfolio has changed to Jeremy Kramer,
a Vice President of the Fund.
13
ADDITIONAL INFORMATION (CONTINUED) ALLIANCE GLOBAL ENVIRONMENT FUND, INC.
_______________________________________________________________________________
SUPPLEMENTAL PROXY INFORMATION
The Annual Meeting of Shareholders of The Alliance Global Environment Fund,
Inc. was held on Tuesday, June 20, 1995. The description of each proposal and
number of shares voted at the meeting are as follows:
SHARES VOTED
SHARES WITHOUT
VOTED FOR AUTHORITY
--------- ---------
1.To elect directors: David H. Dievler 5,034,848 510,610
The Hon. James D. Hodgson 5,039,123 506,335
Alan Stoga 5,017,720 527,738
SHARES SHARES
SHARES VOTED VOTED
VOTED FOR AGAINST ABSTAIN
--------- ------- -------
2.To ratify the selection of Ernst & Young LLP
as the Fund's independent auditors for the
Fund's fiscal year ending October 31, 1995: 5,396,925 88,634 59,899
14
ALLIANCE GLOBAL ENVIRONMENT FUND, INC.
_______________________________________________________________________________
BOARD OF DIRECTORS
JOHN D. CARIFA, CHAIRMAN AND PRESIDENT
DAVID H. DIEVLER
JOHN H. DOBKIN
W.H. HENDERSON
THE HON. JAMES D. HODGSON
STIG HOST
RICHARD M. LILLY
ALAN STOGA
THE HON. JOHN C. WEST
ROBERT C. WHITE
OFFICERS
THOMAS J. BARDONG, VICE PRESIDENT
NICHOLAS CROSSLAND, VICE PRESIDENT
JEREMY KRAMER, VICE PRESIDENT
EDMUND P. BERGAN, JR., SECRETARY
MARK D. GERSTEN, TREASURER & CHIEF FINANCIAL OFFICER
PATRICK J. FARRELL, CONTROLLER
CUSTODIAN
BROWN BROTHERS HARRIMAN & CO.
40 Water Street
Boston, MA 02109-3661
LEGAL COUNSEL
SEWARD & KISSEL
One Battery Park Plaza
New York, NY 10004
INDEPENDENT AUDITORS
ERNST & YOUNG LLP
787 Seventh Avenue
New York, NY 10019
TRANSFER AGENT, DIVIDEND-
PAYING AGENT AND REGISTRAR
STATE STREET BANK AND TRUST COMPANY
225 Franklin Street
Boston, MA 02110-1520
Notice is hereby given in accordance with Section 23(c) of the Investment
Company Act of 1940 that the Fund may purchase at market prices from time to
time shares of its common stock in the open market.
This report, including the financial statements herein, is transmitted to the
shareholders of Alliance Global Environment Fund for their information. This is
not a prospectus, circular or representation intented for use in the purchase
of shares of the Fund or any securities mentioned in this report.
15
ALLIANCE GLOBAL ENVIRONMENT FUND
Summary of General Information
SHAREHOLDER INFORMATION
Daily market prices for the Fund's shares are published in the New York Stock
Exchange Composite Transaction section of newspapers under the designation
"ALLGIE". The Fund's NYSE trading symbol is "AEF". Weekly comparative net asset
value (NAV) and market price information about the Fund is published each
Monday in THE WALL STREET JOURNAL and each Saturday in THE NEW YORK TIMES and
BARRON'S, and other newspapers in a table called "Publicly Traded Funds".
Additional information about the Fund is available by calling 1-800-221-5672.
DIVIDEND REINVESTMENT PLAN
All shareholders whose Shares are registered in their own names will have all
distributions reinvested automatically in additional Shares, unless a
shareholder elects to receive cash. Shareholders whose Shares are held in the
name of a broker or nominee will automatically have distributions reinvested by
the broker or nominee in additional Shares under the Plan, unless the automatic
reinvestment service is not provided by the particular broker or nominee, or
the Shareholder elects to receive distributions in cash. A brochure describing
the Plan is available from the Plan Agent, State Street Bank and Trust Company,
by calling 1-800-219-4218.
ALLIANCE GLOBAL ENVIRONMENT FUND
1345 Avenue of the Americas
New York, New York 10105
ALLIANCECAPITAL
MUTUAL FUNDS WITHOUT THE MYSTERY.
R THESE REGISTERED SERVICE MARKS USED UNDER LICENSE FROM THE OWNER, ALLIANCE
CAPITAL MANAGEMENT L.P.
ENVAR Recycled
Paper
