ALLIANCE GLOBAL ENVIRONMENT FUND
SEMI-ANNUAL REPORT
APRIL 30, 1997
AN INVESTMENT WITH A CLEAR FUTURE
ALLIANCE CAPITAL
LETTER TO SHAREHOLDERS ALLIANCE GLOBAL ENVIRONMENT FUND
_______________________________________________________________________________
June 5, 1997
Dear Shareholder:
We are pleased to report the performance of Alliance Global Environment Fund
for the semi-annual reporting period ended April 30, 1997. The table below also
gives performance data for the First Analysis Securities Corporation (FASC)
Environmental Index, a broad-based index of companies in the environmental
industry, and the S&P 500 Stock Index, a measure of the broad U.S. stock
market, for the 6- and 12-month periods ended April 30.
For the 6-month period, the Fund's advance of 4.4% underperformed the FASC
benchmark, which increased by 5.6%. However, the Fund's advance of 13.1% for
the 12-month period outperformed the 5.6% increase in the FASC Index for the
same period. The Fund underperformed the S&P 500 over both the 6- and 12-month
periods. On April 30, 1997, the Fund's net asset value was $15.87 per share.
INVESTMENT RESULTS
TOTAL RETURNS FOR THE PERIODS
ENDED APRIL 30, 1997
6 MONTHS 12 MONTHS
----------- -----------
ALLIANCE GLOBAL ENVIRONMENT FUND 4.43% 13.08%
FASC ENVIRONMENTAL INDEX 5.58% 5.58%
S&P 500 STOCK INDEX 14.71% 25.12%
INVESTMENT ACTIVITY
The underperformance of the Fund over the most recent reporting period (six
months) relative to the benchmark reflects poor short-term performance of a few
large holdings, including Republic Industries and U.S. Filter. As we believe
that the outlook for both securities is quite favorable, the longer-term
performance of the Fund should not be impacted.
Overall, the Fund remains intensely focused on the growing segments of the
environmental services industry, particularly those areas driven by economics
and existing, enforced regulations. This focus has led to two primary themes
within the Fund: domestic solid waste collection and disposal services and
water treatment equipment and services.
Domestic solid waste industry fundamentals remain attractive, with strong
internal growth (driven by both price and volume) and a dramatic acceleration
of consolidation trends. The Fund has approximately 29% of total assets
invested in the solid waste segment, with a particular emphasis on the small
and mid-sized companies which stand to benefit most from current industry
trends. Significant holdings include United Waste, Republic Industries,
American Disposal, Superior Services and USA Waste.
Similar to the solid waste industry, certain segments of the water treatment
equipment and services industry are experiencing strong internal growth and
rapid consolidation. The Fund currently has approximately 23% of its holdings
in water treatment, including positions in U.S. Filter, Memtec Limited,
Generale des Eaux (based in France), Cytec Industries and Culligan Water
Technologies.
Other significant holdings include Allwaste (which is being acquired by Philip
Services), an industrial cleaning company, Newpark Resources, an oil field
waste services company, and International Alliance Services, a provider of
outsourcing services to small businesses.
The outlook for the remainder of fiscal 1997 is favorable and we believe that
the Fund is well-positioned to take advantage of growth opportunities within
the environmental services industry.
FUND ANNOUNCES PLAN TO OPEN END
On April 23, 1997, the Fund's Board of Directors approved and recommended for
stockholder approval the conversion from a closed-end to an open-end investment
company. This plan follows an open-market share repurchase program which
totaled 939,000 shares, or 13.6% of the total shares outstanding, at a cost of
$11.9 million, or $12.70 per share. Repurchases under the program added $0.64
per share, or 4.4%, to the Fund's March 15, 1996 net asset value. In percentage
terms, the Fund's repurchase program was one of the largest ever conducted by
an American closed-end fund, and its
1
ALLIANCE GLOBAL ENVIRONMENT FUND
_______________________________________________________________________________
anti-dilutive benefit is believed to be the largest resulting from any such
program. While the share repurchase program clearly benefited stockholders, the
large discount to net asset value at which shares were trading was not
materially diminished. Accordingly, the Board determined that it is in the best
interests of stockholders of the Fund to convert to open-end status.
Stockholders are receiving proxy materials for the Fund's July 17, 1997, Annual
Meeting of Stockholders at which shareholder's will act on the open-ending
proposal. Because adoption of the open-ending proposal requires the affirmative
vote on 75% of the Fund's outstanding shares, it is especially important that
all stockholders complete and return their proxy for the annual meeting. If
sufficient votes are not cast to act on the open-ending proposal at the July 17
meeting, the Annual Meeting will be adjourned and rescheduled for a later date.
Stockholders desiring additional information regarding the materials or the
open-ending proposals should contact Alliance at 1-800-221-5672.
As always, we thank you for your continued interest and investment in Alliance
Global Environment Fund.
Sincerely,
John D. Carifa
Chairman and President
Jeremy R. Kramer
Vice President
2
TEN LARGEST HOLDINGS
APRIL 30, 1997 (UNAUDITED) ALLIANCE GLOBAL ENVIRONMENT FUND
_______________________________________________________________________________
PERCENT OF
COMPANY U.S. $ VALUE NET ASSETS
- -------------------------------------------------------------------------------
U.S. FILTER CORP.--The company provides industrial
and commercial water and wastewater treatment
systems and services. $ 6,530,625 6.9%
UNITED WASTE SYSTEMS, INC.--The company provides
residential, commercial, and industrial customers
with integrated, nonhazardous, solid waste
management services. 6,412,500 6.8
ALLWASTE, INC.--The company provides industrial
waste handling, processing, transportation and
container cleaning services. 6,212,500 6.6
REPUBLIC INDUSTRIES, INC.--The company
provides waste collection and disposal services,
as well as electronic security services. 5,706,875 6.0
NEWPARK RESOURCES, INC.--The company provides
environmental management and oilfield construction
services to the oil and gas industry. 5,609,375 5.9
AMERICAN DISPOSAL SERVICES, INC.--The company
provides solid waste collection, transfer and
disposal services for residential, commercial
and industrial customers. 5,321,875 5.6
INTERNATIONAL ALLIANCE SERVICES--The company
provides specialty insurance and bonding in
addition to environmental services. 5,185,600 5.5
USA WASTE SERVICES, INC.--The company provides
solid waste management services to municipal,
commercial, industrial and residential customers
in the United States. 3,930,000 4.1
LANDEC CORP.--The company designs, develops,
manufactures, and sells temperature-activated
polymer products for a variety of industrial,
medical, and agricultural applications. 3,543,750 3.7
LAIDLAW, INC.--The company provides
emergency healthcare transportation, school
busing and municipal transit service. 3,474,375 3.7
$51,927,475 54.8%
3
INDUSTRY DIVERSIFICATION
APRIL 30, 1997 (UNAUDITED) ALLIANCE GLOBAL ENVIRONMENT FUND
_______________________________________________________________________________
PERCENTAGE OF
U.S. $ VALUE NET ASSETS
- ----------------------------------------------------------------------------
Basic Industries $10,497,250 11.1%
Capital Goods 45,965,409 48.5
Consumer Manufacturing 10,541,875 11.1
Consumer Services 5,443,100 5.8
Consumer Staples 3,070,000 3.2
Energy 11,789,375 12.5
Multi-Industry 4,882,166 5.2
Transportation 2,569,138 2.7
Total Investments* 94,758,313 100.1
Cash and other assets, net of liabilities (53,373) (0.1)
Net Assets $94,704,940 100.0%
* Excludes short-term obligations
4
PORTFOLIO OF INVESTMENTS
APRIL 30, 1997 (UNAUDITED) ALLIANCE GLOBAL ENVIRONMENT FUND
_______________________________________________________________________________
COMPANY SHARES U.S. $ VALUE
- -------------------------------------------------------------------------
COMMON STOCKS & OTHER INVESTMENTS-100.1%
AUSTRALIA-5.9%
Brambles Industries, Ltd. 142,000 $ 2,569,138
Memtec, Ltd. 128,000 2,960,000
------------
5,529,138
CANADA-3.7%
Laidlaw, Inc. Cl. B. (a) 255,000 3,474,375
FRANCE-2.9%
Generale des Eaux 20,000 2,785,916
JAPAN-1.8%
Ebara Corp. 135,000 1,744,062
NETHERLANDS-0.5%
Thermo Eurotech (b) (c) 165,000 507,959
UNITED KINGDOM-1.1%
Waste Management International Plc. (a) (b) 135,000 1,063,125
UNITED STATES-84.2%
Allied Waste Industries, Inc. (b) 85,000 945,625
Allwaste, Inc. (b) 700,000 6,212,500
American Disposal Services, Inc. (b) 325,000 5,321,875
American Waste Services, Inc. (b) 500,000 875,000
Costilla Energy, Inc. (b) 240,000 2,880,000
Culligan Water Technologies, Inc. (b) 30,000 1,226,250
Cuno, Inc. (b) 96,100 1,333,388
Cytec Industries, Inc. (b) 50,000 1,881,250
Eastern Environmental Services, Inc. (b) 20,000 257,500
Flanders Corp. (b) 120,000 870,000
GNI Group, Inc. (b) 100,000 700,000
GTS Duratek, Inc. (b) 35,000 280,000
International Alliance
Services (b) 493,400 4,687,300
Wts. 12/31/00 (b) 300,000 498,300
SHARES OR
PRINCIPAL
AMOUNT
COMPANY (000) U.S. $ VALUE
- -------------------------------------------------------------------------
International Specialty Products, Inc. (b) 150,000 $ 1,950,000
International Technology Corp. (b) 437,000 3,113,625
Ionics, Inc. (b) 22,000 1,012,000
ITEQ, Inc. (b) 300,000 1,800,000
Landec Corp. (b) 675,000 3,543,750
Morrison Knudsen Corp. (b) 150,000 1,875,000
Newpark Resources, Inc. (b) 125,000 5,609,375
NuCo2, Inc. (b) 240,000 3,300,000
Osmonics, Inc. (b) 45,000 708,750
Polymer Group (b) 139,000 1,772,250
Puro Water Group, Inc. (b) 160,000 1,120,000
Republic Industries, Inc. (b) 230,000 5,706,875
Superior Services, Inc. (b) 150,000 3,300,000
United Waste Systems, Inc. (b) 190,000 6,412,500
U.S. Filter Corp. (b) 215,000 6,530,625
USA Waste Services, Inc. (b) 120,000 3,930,000
------------
79,653,738
Total Common Stocks
(cost $93,187,838) 94,758,313
TIME DEPOSIT-2.7%
Deutsche Bank 5.65%, 5/01/97
(cost $2,600,000) $2,600 2,600,000
TOTAL INVESTMENTS-102.8%
(cost $95,787,838) 97,358,313
Other assets less liabilities-(2.8%) (2,653,373)
NET ASSETS-100% $94,704,940
(a) Foreign security denominated in U.S. dollars.
(b) Non-income producing security.
(c) Restricted security, valued at fair value. (See notes A and E.)
See notes to financials.
5
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1997 (UNAUDITED) ALLIANCE GLOBAL ENVIRONMENT FUND
_______________________________________________________________________________
ASSETS
Investments in securities, at value (cost $95,787,838) $97,358,313
Cash 59,206
Receivable for investment securities sold 2,700,417
Dividends and interest receivable 62,425
Prepaid expenses 16,740
Total assets 100,197,101
LIABILITIES
Payable for investment securities purchased 5,221,024
Management fee payable 86,711
Accrued expenses 184,426
Total liabilities 5,492,161
NET ASSETS $94,704,940
COMPOSITION OF NET ASSETS
Capital stock, at par $ 59,673
Additional paid-in capital 83,360,882
Accumulated net investment loss (588,011)
Accumulated net realized gain on investments and foreign
currency transactions 10,304,471
Net unrealized appreciation of investments and foreign
currency denominated assets and liabilities 1,567,925
$94,704,940
NET ASSET VALUE PER SHARE (based on 5,967,269 shares outstanding) $15.87
See notes to financial statements.
6
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 1997 (UNAUDITED)
ALLIANCE GLOBAL ENVIRONMENT FUND
_______________________________________________________________________________
INVESTMENT INCOME
Dividends (net of foreign taxes withheld of $11,029) $108,738
Interest 49,468 $ 158,206
EXPENSES
Management fee 544,602
Custodian 80,369
Audit and legal 45,288
Directors' fees 29,326
Transfer agency 17,407
Printing 12,022
Registration 6,996
Miscellaneous 10,207
Total expenses 746,217
Net investment loss (588,011)
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain on investment transactions 10,962,504
Net realized loss on foreign currency transactions (9,561)
Net change in unrealized appreciation of:
Investments (7,565,861)
Foreign currency denominated assets and liabilities (2,812)
Net gain on investments and foreign currency transactions 3,384,270
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 2,796,259
See notes to financial statements.
7
STATEMENT OF CHANGES IN NET ASSETS ALLIANCE GLOBAL ENVIRONMENT FUND
_______________________________________________________________________________
SIX MONTHS ENDED YEAR ENDED
APRIL 30,1997 OCTOBER 31,
(UNAUDITED) 1996
------------- -------------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment loss $ (588,011) $ (833,738)
Net realized gain on investments and foreign
currency transactions 10,952,943 19,882,087
Net change in unrealized appreciation of
investments and foreign currency denominated
assets and liabilities (7,568,673) 6,302,983
Net increase in net assets from operations 2,796,259 25,351,332
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income -0- (138,142)
Net realized gain on investments (6,786,801) -0-
CAPITAL STOCK TRANSACTIONS
Repurchase of fund shares (1,575,322) (10,359,153)
Total increase (decrease) (5,565,864) 14,854,037
NET ASSETS
Beginning of year 100,270,804 85,416,767
End of period $ 94,704,940 $100,270,804
See notes to financial statements.
8
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1997 (UNAUDITED) ALLIANCE GLOBAL ENVIRONMENT FUND
_______________________________________________________________________________
NOTE A: SIGNIFICANT ACCOUNTING POLICIES
Alliance Global Environment Fund (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, unless this method does not
represent fair 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 represents foreign exchange
gains and losses from the 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 receivable 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
represents net currency gains and losses from valuing foreign currency
denominated assets and liabilities at period end exchange rates.
3. 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 Federal income or excise taxes are
required. Withholding taxes on foreign interest and dividends have been
provided for in accordance with the applicable tax requirements.
4. INVESTMENT INCOME AND INVESTMENT TRANSACTIONS
Dividend income is recorded on the ex-dividend date. Interest income is accrued
daily. Investment transactions are accounted for on the date securities are
purchased or sold. Investment gains and losses are determined on the identified
cost basis. The Fund accretes discounts as an adjustment to interest income.
5. DIVIDENDS AND DISTRIBUTIONS
Dividends and distributions to shareholders are recorded on the ex-dividend
date and are determined in accordance with income tax regulations.
For federal income tax purposes, the Fund's distributions of income and capital
gains are subject to recharacterization, which may include a tax return of
captial, at the end of the year to reflect the final investment results for
that year.
NOTE B: MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under an Investment Management and Administration Agreement, the Fund pays
Alliance Capital Management L.P., (the "Investment Manager"), a fee calculated
weekly and paid monthly, at an annualized rate of 1.10% of the Fund's average
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 six months ended April 30, 1997, amounted to $270,381,
none of which was paid to affiliated brokers.
9
NOTES TO FINANCIAL STATEMENTS (CONTINUED) ALLIANCE GLOBAL ENVIRONMENT FUND
_______________________________________________________________________________
Under the terms of a Shareholder Inquiry Agency Agreement with Alliance Fund
Services, Inc. ("AFS"), an affiliate of the Investment Manager, the Fund
reimburses AFS for costs relating to servicing phone inquiries for the Fund.
The Fund reimbursed AFS $790 during the six months ended April 30, 1997.
NOTE C: INVESTMENT TRANSACTIONS
Purchases and sales of investment securities (excluding short-term and U.S.
government obligations) aggregated $82,692,805 and $86,258,901 respectively,
for the six months ended April 30, 1997. There were no purchases or sales of
U.S. government or government agency obligations for the six months ended April
30, 1997. At April 30, 1997, the cost of securities for federal income tax
purposes was $95,797,215. Accordingly, gross unrealized appreciation of
investments was $10,205,276 and gross unrealized depreciation of investments
was $8,644,178 resulting in net unrealized appreciation of $1,561,098,
(excluding foreign currency transactions).
NOTE D: CAPITAL STOCK
There are 100,000,000 shares of $.01 par value common stock authorized. Of the
5,967,269 shares outstanding at April 30, 1997, the Investment Manager owned
7,169 shares. On March 14, 1996, the Fund initiated a share repurchase program
which allowed for repurchase over a twelve month period of up to 20% of the
6,907,169 shares outstanding at March 14, 1996. During the period ended April
30, 1997, an additional 117,700 shares were repurchased at a cost of
$1,575,322. Through the duration of this program, 939,900 shares were
repurchased at a total cost of $11,934,475, representing 13.60% of the
6,907,169 shares outstanding at March 14, 1996. This includes $46,995 in
commissions paid to PaineWebber Incorporated. The average discount of market
price to net asset value of shares repurchased over the period of March 15,
1996 to March 14, 1997 was 19.6%.
NOTE E: RESTRICTED SECURITY
DATE ACQUIRED COST
--------------- ----------
Thermo Eurotech 3/19/91-4/15/91 $529,926
The security shown above, formerly known as Beheersmaatchappij J. Amerika N.V.,
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 April 30, 1997 was $507,959 representing 0.5% of
net assets.
NOTE F: SUBSEQUENT EVENT
On April 23, 1997, Alliance Global Environment Fund, Inc. announced that its
Board of Directors has approved and recommended for stockholder approval the
conversion of the fund from a closed-end investment company to an open-end
investment company. The 1997 Annual Meeting of Stockholders of the Fund is
scheduled for July 17, 1997.
10
FINANCIAL HIGHLIGHTS ALLIANCE GLOBAL ENVIRONMENT FUND
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED OCTOBER 31,
APRIL 30,1997 ------------------------------------------------------------
(UNAUDITED) 1996 1995 1994 1993 1992
------------- ------------ ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year $16.48 $12.37 $11.74 $10.97 $10.78 $13.12
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) (.10)(a) (.13)(a) .03 -0- .01 .01
Net realized and unrealized gain (loss)
on investments and foreign currency
transactions .62 4.26 .60 .77 .18 (2.17)
Net increase (decrease) in net asset
value from operations .52 4.13 .63 .77 .19 (2.16)
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income -0- (.02) -0- -0- -0- (.10)
Distributions from net realized gain on
investments and foreign currency
transactions (1.13) -0- -0- -0- -0- (.08)
Total dividends and distributions (1.13) (.02) -0- -0- -0- (.18)
Net asset value, end of period $15.87 $16.48 $12.37 $11.74 $10.97 $10.78
Market value, end of period $14.625 $13.25 $ 9.375 $9.50 $ 9.25 $ 9.50
TOTAL RETURN
Total investment return based on: (b)
Market value 19.70% 41.60% (1.32)% 2.70% (2.63)% (15.22)%
Net asset value 4.43% 33.48% 5.37% 7.02% 1.76% (16.59)%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $94,705 $100,271 $85,416 $81,102 $75,805 $74,442
Ratio of expenses to average net assets 1.51%(c) 1.60% 1.57% 1.67% 1.62% 1.63%
Ratio of net investment income (loss)
to average net assets (1.19)%(c) (.85)% .21% (.04)% .15% .10%
Portfolio turnover rate 167% 268% 109% 42% 25% 41%
Average commission rate (d) $.0503 $.0313 -- -- -- --
</TABLE>
(a) Based on average shares outstanding.
(b) 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 period 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 periods 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.
(c) Annualized.
(d) For fiscal years beginning on or after September 1, 1995, a fund is
required to disclose its average commission rate per share for trades on which
commissions are charged. This amount includes commissions paid to foreign
brokers which may materially affect the the rate shown. Amounts paid in foreign
currencies have been converted into US dollars using the prevailing exchange
rate on the date of the transaction.
11
ALLIANCE GLOBAL ENVIRONMENT FUND
_______________________________________________________________________________
BOARD OF DIRECTORS
JOHN D. CARIFA, CHAIRMAN AND PRESIDENT
DAVID H. DIEVLER (1)
JOHN H. DOBKIN (1)
W.H. HENDERSON (1)
STIG HOST (1)
RICHARD M. LILLY (1)
ALAN STOGA (1)
ROBERT C. WHITE (1)
OFFICERS
THOMAS J. BARDONG, VICE PRESIDENT
FRANCES P. REEVES, VICE PRESIDENT
JEREMY R. KRAMER, VICE PRESIDENT
DANIEL V. PANKER, VICE PRESIDENT
EDMUND P. BERGAN, JR., SECRETARY
MARK D. GERSTEN, TREASURER & CHIEF FINANCIAL OFFICER
JOSEPH J. MANTINEO, 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
(1) Member of the Audit Committee.
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 intended for use in the
purchase of shares of the Fund or any securities mentioned in this report.
12
ALLIANCE GLOBAL ENVIRONMENT FUND
Summary of General Information
INVESTMENT OBJECTIVE AND POLICIES
The Fund's investment objective is a long-term capital appreciation through
investment in equity securities of companies expected to benefit from advances
or improvements in products, processes or services intended to foster the
protection of the environment.
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, each Sunday in THE NEW YORK TIMES and each
Saturday in BARRON'S, and other newspapers in a table called "Closed-End
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
ALLIANCE CAPITAL
R THESE REGISTERED SERVICE MARKS USED UNDER LICENSE FROM THE OWNER, ALLIANCE
CAPITAL MANAGEMENT L.P.
ENVSR
