----------------
SPECIALTY EQUITY
----------------
Alliance Global
Environment Fund
Semi-Annual Report
April 30, 2000
AllianceCapital [LOGO](R)
The Investment Professional's Choice
<PAGE>
Investment Products Offered
---------------------------
o Are Not FDIC Insured
o May Lose Value
o Are Not Bank Guaranteed
---------------------------
<PAGE>
----------------------
LETTER TO SHAREHOLDERS
----------------------
LETTER TO SHAREHOLDERS
June 4, 2000
Dear Shareholder:
This report provides you with an update of the performance and market activity
of Alliance Global Environment Fund (the "Fund") for the semi-annual reporting
period ended April 30, 2000. Several months ago, we recommended that the Fund's
shareholders approve our proposal to liquidate the Fund, which has become too
small to remain viable over the longer term. At the conclusion of their Special
Meeting on June 29, 2000, the Fund's shareholders overwhelmingly approved the
liquidation proposal. We currently anticipate that the liquidation will be
concluded, and liquidation proceeds transmitted to shareholders, during July. We
thank you for your past support of the Fund.
Investment Objective and Policies
Alliance Global Environment Fund is designed for investors desiring to
participate in companies expected to benefit from the increased global
commitment to a cleaner environment. Under normal circumstances, the Fund will
invest substantially all of its assets in equity securities in two categories of
Eligible Companies: those having a principal business including environmental
protection and other providers of products or services intended to contribute to
the environment.
Investment Results
The following table provides the Fund's investment results for the six- and
12-month periods ended April 30, 2000. For comparison purposes, relevant
performance data is also provided for the Fund's benchmark index, the unmanaged
First Analysis Securities Corporation ("FASC") Environmental Index, an index of
companies in the environmental industry and the unmanaged Standard & Poor's 500
Stock Index (the "S&P 500"), a broad measure of the U.S. stock market.
INVESTMENT RESULTS*
Periods Ended April 30, 2000
---------------------------
Total Returns
---------------------------
6 Months 12 Months
--------------------------------------------------------------------------------
Alliance Global
Environment
Fund
Class A 21.47% 4.64%
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Class B 21.05% 3.92%
--------------------------------------------------------------------------------
Class C 20.99% 3.94%
--------------------------------------------------------------------------------
S&P 500
Stock Index 7.18% 10.12%
--------------------------------------------------------------------------------
FASC
Environmental
Index -5.71% -25.20%
--------------------------------------------------------------------------------
* The Fund's investment results are total returns for the periods shown and
are based on the net asset value of each class of shares as of April 30,
2000. All fees and expenses related to the operation of the Fund have been
deducted, but no adjustment has been made for sales charges that may apply
when shares are purchased or redeemed. Returns for the Fund include the
reinvestment of any distributions paid during each period. Past
performance is no guarantee of future results.
The unmanaged FASC Environmental Index is an index of companies in the
environmental industry. The S&P 500 Stock Index is an unmanaged index of
500 U.S. companies, and is a common measure of the performance of the
overall U.S. stock market. An investor cannot invest directly in an index
and its results are not indicative of the performance for any specific
investment, including Alliance Global Environment Fund.
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ALLIANCE GLOBAL ENVIRONMENT FUND o 1
<PAGE>
----------------------
LETTER TO SHAREHOLDERS
----------------------
Until October 3, 1997, the Fund operated as a closed-end investment
company and its common stock (which then comprised a single class) was
listed on the New York Stock Exchange. After October 3, 1997, all of the
common stock was converted into Class A shares of the Fund and the Fund
commenced a continuous offering of its Class A, Class B, Class C and
Advisor Class shares. All historical performance information for Class A
shares through October 3, 1997 is for the Fund's common stock, based on
net asset value, while it was a closed-end fund.
Additional investment results appear on pages 4-7.
Investment Results
For the six-month period ended April 30, 2000, the Fund's Class A shares' return
of 21.47% outperformed the S&P 500 Stock Index return of 7.18%. For the 12-month
period ended April 30, 2000, the Fund's Class A shares return of 4.64%
underperformed the S&P 500 Stock Index which returned 10.12%. For the six- and
12-month period, the Fund outperformed the FASC Environmental Index's returns of
-5.71% and -25.20%, respectively. While a few of the more traditional
environmental stocks performed poorly, a number of the other stocks that have
less of a direct play on the environment were responsible for the good
performance of the Fund versus its benchmarks. These stocks that performed well,
such as Cuno Inc., AES Corp., Enron Corp., Vivendi, Millipore Corp., and General
Electric Co., have good paths. The fundamentals remain solid for these stocks,
and we expect them to perform well in the future.
Economic Commentary
The past year for the U.S. economy has been remarkable. As we began the new
millennium, worldwide economies enjoyed renewed and continued prosperity.
Recently, however, economic winds have shifted. U.S. data has pushed
expectations in the direction of an economic slowdown. Weakness in auto and
chain-store sales, declines in purchases of new and existing homes, a drop in
factory orders, a fall-off in construction spending, further softening in
manufacturing, and a favorable inflation survey have painted a clear picture of
a downshifting economy. The unemployment report showed further economic slowdown
with an unexpected decline in private-sector payrolls in May, a two-tenths of 1%
increase in the unemployment rate to 4.1%, a decrease in hours-worked, and a
tiny 1(cent) month-on-month increase in hourly earnings. There can be little
doubt that the U.S. economy has slowed during the second quarter from its first
quarter growth pace of 5.4%.
The U.S. economy, we believe, has stepped back a bit and slowed down but not to
the degree necessary to eliminate existing inflationary imbalances. During the
second and third quarters, we do expect final demand growth to fall toward 4%
while production gains move toward 3% . . . but two quarters of below-potential
growth will not relieve labor market pressures, and it certainly will not solve
the massive U.S. trade problem. To the contrary, four-to-six quarters of growth
between 2% and 4% appear to be required. This latter possibility describes the
desirable "soft" landing; the alternative "hard" landing implies an even sharper
decel-
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2 o ALLIANCE GLOBAL ENVIRONMENT FUND
<PAGE>
----------------------
LETTER TO SHAREHOLDERS
----------------------
eration, albeit more compressed, including the chance of negative growth.
So far, activity in the market with the recent rebound in stock prices and fall
in interest rates during the period under review, are based on the hope that the
Federal Reserve has done enough to achieve a soft landing. Indeed, a pause in
the Fed's tightening program is possible and perhaps even prudent. But these
asset price movements are actually self-defeating, since they will stimulate
spending and cause the economy to reaccelerate later this year. Eventually, the
Fed will need to tighten further--we estimate by as much as 100 basis points by
year-end. Asset prices will subsequently retreat, borrowing costs will rise,
consumer confidence will finally fall from its lofty perch, and with a little
luck, the U.S. economy will make a soft landing during 2001.
Again, we thank you for your past interest and investment in the Alliance Global
Environment Fund.
Sincerely,
/s/ John D. Carifa
John D. Carifa
Chairman and President
/s/ Michael R. Baldwin
Michael R. Baldwin
Vice President
[PHOTO OMITTED] John D.
Carifa
[PHOTO OMITTED] Michael R.
Baldwin
Portfolio Manager, Michael R. Baldwin, has over 14 years of investment
experience.
--------------------------------------------------------------------------------
ALLIANCE GLOBAL ENVIRONMENT FUND o 3
<PAGE>
------------------
PERFORMANCE UPDATE
------------------
PERFORMANCE UPDATE
ALLIANCE GLOBAL ENVIRONMENT FUND
GROWTH OF A $10,000 INVESTMENT
6/30/90* TO 4/30/00
[MOUNTAIN CHART OMITTED]
S&P 500 Stock Index: $51,208
Alliance Global Environment Fund Class A**: $17,117
FASC Environmental Index: $10,629
This chart illustrates the total value of an assumed $10,000 investment in
Alliance Global Environment Fund Class A shares (from 6/30/90 to 4/30/00) as
compared to the performance of appropriate indices. The chart reflects the
deduction of the maximum 4.25% sales charge from the initial $10,000 investment
in the Fund and assumes the reinvestment of dividends and capital gains.
Performance for Class B and Class C shares will vary from the results shown
above due to differences in expenses charged to these classes. Past performance
is not indicative of future results, and is not representative of future gain or
loss in capital value or dividend income.
The unmanaged FASC Environmental Index is an index of companies in the
environmental industry.
The unmanaged Standard & Poor's 500 Stock Index includes 500 U.S. stocks and is
a common measure of the performance of the overall U.S. stock market.
When comparing Alliance Global Environment Fund to the indices shown above, you
should note that no charges or expenses are reflected in the performance of the
indices. An investor cannot invest directly in an index and its results are not
indicative of any specific investment, including Alliance Global Environment
Fund.
* Closest month-end after Fund's Class A share inception date of 6/1/90.
** Until October 3, 1997, the Fund operated as a closed-end investment
company and its common stock (which then comprised a single class) was
listed on the New York Stock Exchange. After October 3, 1997, all of the
common stock was converted into Class A shares of the Fund and the Fund
commenced a continuous offering of its Class A, Class B, Class C and
Advisor Class shares. All historical performance information for Class A
shares through October 3, 1997 is for the Fund's common stock, based on
net asset value, while it was a closed-end fund.
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4 o ALLIANCE GLOBAL ENVIRONMENT FUND
<PAGE>
------------------
PERFORMANCE UPDATE
------------------
PERFORMANCE UPDATE
ALLIANCE GLOBAL ENVIRONMENT FUND
HISTORY OF RETURNS
YEARLY PERIODS ENDED 4/30
[BAR CHART OMITTED]
Alliance Global Environment Fund--Yearly Periods Ended 4/30
--------------------------------------------------------------------------------
Alliance Global FASC
Environment Fund Environmental Index
--------------------------------------------------------------------------------
4/30/91* 2.38% -6.84%
4/30/92 -10.00% -7.99%
4/30/93 -9.37% -1.76%
4/30/94 2.16% -7.73%
4/30/95 3.43% 4.33%
4/30/96 29.78% 20.43%
4/30/97 13.08% 5.58%
4/30/98 37.82% 20.16%
4/30/99 -3.54% 14.67%
4/30/00 4.64% -25.20%
Past performance in no guarantee of future results. The Fund's investment
results represent total returns for Class A shares and are based on the net
asset value. All fees and expenses related to the operation of the Fund have
been deducted. Returns for the Fund include the reinvestment of any
distributions paid during the period. The unmanaged FASC Environmental Index is
an index of companies in the environmental industry. The index reflects no fees
or expenses. An investor cannot invest directly in an index, and its results are
not indicative of any specific investment, including Alliance Global Environment
Fund.
* The Fund's return for the period ended 4/30/91 is from the Fund's
inception date of 6/1/90. The benchmark's return for the period ended
4/30/91 is from 5/31/90 through 4/30/91.
Until October 3, 1997, the Fund operated as a closed-end investment
company and its common stock (which then comprised a single class) was
listed on the New York Stock Exchange. After October 3, 1997, all of the
common stock was converted into Class A shares of the Fund and the Fund
commenced a continuous offering of its Class A, Class B, Class C and
Advisor Class shares. All historical performance information for Class A
shares through October 3, 1997 is for the Fund's common stock, based on
net asset value, while it was a closed-end fund.
--------------------------------------------------------------------------------
ALLIANCE GLOBAL ENVIRONMENT FUND o 5
<PAGE>
-----------------
PORTFOLIO SUMMARY
-----------------
PORTFOLIO SUMMARY
April 30, 2000 (unaudited)
INCEPTION DATE PORTFOLIO STATISTICS
(Class A shares) Assets ($mil): $8603.
6/1/90 Median Market Capitalization ($mil): $3789
SECTOR BREAKDOWN
34.2% Capital Goods
28.4% Basic Industries
11.7% Energy
8.1% Consumer Staples [PIE CHART OMITTED]
6.3% Utilities
5.2% Multi-Industry
4.5% Transportation
1.6% Technology
All data as of April 30, 2000. The Fund's sector breakdown may vary over time.
This breakdown is expressed as a percentage of total investments.
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6 o ALLIANCE GLOBAL ENVIRONMENT FUND
<PAGE>
------------------
INVESTMENT RESULTS
------------------
INVESTMENT RESULTS
NAV AND SEC AVERAGE ANNUAL TOTAL RETURNS
AS OF APRIL 30, 2000
Class A Shares
--------------------------------------------------------------------------------
Without Sales Charge With Sales Charge
1 Year 4.64% 0.22%
5 Year 15.34% 14.35%
Since Inception* 6.11% 5.65%
Class B Shares
--------------------------------------------------------------------------------
Without Sales Charge With Sales Charge
1 Year 3.92% -0.08%
Since Inception 3.53% 3.29%
Class C Shares
--------------------------------------------------------------------------------
Without Sales Charge With Sales Charge
1 Year 3.94% 2.94%
Since Inception* 5.17% 5.17%
SEC AVERAGE ANNUAL TOTAL RETURNS
AS OF THE MOST RECENT QUARTER-END (MARCH 31, 2000)
Class A Class B Class C
--------------------------------------------------------------------------------
1 Year 12.62% 12.93% 16.24%
5 Years 14.02% N/A N/A
Since Inception* 5.26% 1.74% 3.68%
The Fund's investment results represent average annual total returns. The NAV
and SEC returns reflect reinvestment of dividends and/or capital gains
distributions in additional shares without (NAV) and with (SEC) the effect of
the 4.25% maximum front-end sales charge for Class A or applicable contingent
deferred sales charge for Class B (4% year 1, 3% year 2, 2% year 3, 1% year 4);
and for Class C shares (1% year 1). Returns for Class A shares do not reflect
the imposition of the 1 year 1% contingent deferred sales charge for accounts
over $1,000,000. Total return for Advisor Class shares will differ due to
different expenses associated with that class.
Past performance does not guarantee future results. Investment return and
principal value will fluctuate so that an investor's shares, when redeemed, may
be worth more or less than their original cost.
n/a: not applicable
* Inception Date: 6/1/90, Class A: 10/6/97, Class B: 11/5/97, Class C.
Until October 3, 1997, the Fund operated as a closed-end investment
company and its common stock (which then comprised a single class) was
listed on the New York Stock Exchange. After October 3, 1997, all of the
common stock was converted into Class A shares of the Fund and the Fund
commenced a continuous offering of its Class A, Class B, Class C and
Advisor Class shares. All historical performance information for Class A
shares through October 3, 1997 is for the Fund's common stock, based on
net asset value, while it was a closed-end fund.
--------------------------------------------------------------------------------
ALLIANCE GLOBAL ENVIRONMENT FUND o 7
<PAGE>
--------------------
TEN LARGEST HOLDINGS
--------------------
TEN LARGEST HOLDINGS
April 30, 2000 (unaudited)
Percent of
Company U.S. $ Value Net Assets
--------------------------------------------------------------------------------
Millipore Corp.--Develops, manufactures and
sells products that are used primarily
for the analysis, identification,
monitoring and purification of liquids
and gases. $1,060,975 12.3%
--------------------------------------------------------------------------------
TETRA Technologies, Inc.--Provides
comprehensive resource management,
infrastructure and telecommunications
support services. 602,305 7.0
--------------------------------------------------------------------------------
Calpine Corp.--Acquires, develops,
operates and owns power generation
facilities, as well as sells electricity
in the United States. The company also
provides thermal energy for industrial
customers. 503,250 5.8
--------------------------------------------------------------------------------
AES Corp.--Provides electricity to
customers. The company owns or has an
interest in ninety four power facilities
in fourteen countries. 494,656 5.8
--------------------------------------------------------------------------------
Sealed Air Corp.--The company manufactures
and sells protective and specialty
packaging products. 422,750 4.9
--------------------------------------------------------------------------------
Enron Corp.--The company produces
electricity and natural gas, develops,
constructs, and operates energy
facilities worldwide and delivers both
physical commodities and financial and
risk management services. 418,125 4.9
--------------------------------------------------------------------------------
Cuno, Inc.--The company designs,
manufactures and markets a line of
filtration products used in the
healthcare, fluid processing and potable
water industries. 406,875 4.7
--------------------------------------------------------------------------------
Vivendi--An industrial service group that
services the world market through
subsidiaries in several areas. The
subsidiaries produce and distribute
water, generate electricity, collect and
dispose of waste, offer construction and
urban development services, provide
mobile and fixed line telephone internet
access services and publish newspapers
books, and magazines. 405,888 4.7
--------------------------------------------------------------------------------
Brambles Industries, Ltd.--The company
offers waste management services, pallet
management systems, international tank
container leasing and marine towage
services. 351,860 4.1
--------------------------------------------------------------------------------
Waste Management, Inc.--The company provides
waste management services throughout the
United States, Puerto Rico, and Mexico. 325,438 3.8
--------------------------------------------------------------------------------
$4,992,122 58.0%
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8 o ALLIANCE GLOBAL ENVIRONMENT FUND
<PAGE>
----------------------
SECTOR DIVERSIFICATION
----------------------
SECTOR DIVERSIFICATION
April 30, 2000 (unaudited)
Percent of
U.S. $ Value Net Assets
--------------------------------------------------------------------------------
Basic Industries $2,226,663 25.9%
--------------------------------------------------------------------------------
Capital Goods 2,680,005 31.2
--------------------------------------------------------------------------------
Consumer Staples 635,437 7.4
--------------------------------------------------------------------------------
Energy 912,781 10.6
--------------------------------------------------------------------------------
Multi-Industry 405,888 4.7
--------------------------------------------------------------------------------
Technology 122,375 1.4
--------------------------------------------------------------------------------
Transportation 351,860 4.1
--------------------------------------------------------------------------------
Utilities 492,250 5.7
--------------------------------------------------------------------------------
Total Investments* 7,827,259 91.0
--------------------------------------------------------------------------------
Cash and other assets, net of liabilities 775,310 9.0
--------------------------------------------------------------------------------
Net Assets $8,602,569 100.0%
--------------------------------------------------------------------------------
* Excludes short-term obligations.
--------------------------------------------------------------------------------
ALLIANCE GLOBAL ENVIRONMENT FUND o 9
<PAGE>
------------------------
PORTFOLIO OF INVESTMENTS
------------------------
PORTFOLIO OF INVESTMENTS
April 30, 2000 (unaudited)
Shares or
Principal
Amount
Company (000) U.S. $ Value
-------------------------------------------------------------------------------
Common Stocks-91.0%
Australia-4.1%
Brambles Industries, Ltd. ................... 12,500 $ 351,860
-----------
France-4.7%
Vivendi ..................................... 4,100 405,888
-----------
United States-82.2%
AES Corp.(a) ................................ 5,500 494,656
Calpine Corp.(a) ............................ 5,500 503,250
Catalytica, Inc.(a) ......................... 11,000 122,375
Cuno, Inc.(a) ............................... 15,000 406,875
Donaldson Company, Inc. ..................... 13,000 302,250
E Town Corp. ................................ 4,000 260,750
Ecolab, Inc. ................................ 4,800 187,500
Enron Corp. ................................. 6,000 418,125
General Electric Co. ........................ 1,900 298,775
Graco, Inc. ................................. 8,900 301,487
Millipore Corp. ............................. 14,800 1,060,975
OM Group, Inc. .............................. 5,000 230,000
Republic Services, Inc.(a) .................. 13,000 177,937
Sealed Air Corp.(a) ......................... 7,600 422,750
Sigma-Aldrich Corp. ......................... 4,500 132,188
SJW Corp. ................................... 2,000 231,500
Spartech Corp. .............................. 3,000 104,250
TETRA Technologies, Inc.(a) ................. 25,562 602,305
United Technologies Corp. ................... 4,400 273,625
Waste Connections, Inc.(a) .................. 17,000 212,500
Waste Management, Inc. ...................... 20,500 325,438
-----------
7,069,511
-----------
Total Common Stocks
(cost $5,500,721) ........................ 7,827,259
-----------
Time Deposit-11.6%
FNB London
6.00%, 5/01/00
(cost $1,000,000) ........................ $1,000 1,000,000
-----------
Total Investments-102.6%
(cost $6,500,721) ........................ 8,827,259
Other assets less liabilities-(2.6)% ........ (224,690)
-----------
Net Assets-100% ............................. $ 8,602,569
===========
(a) Non-income producing security.
See notes to financial statements.
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10 o ALLIANCE GLOBAL ENVIRONMENT FUND
<PAGE>
---------------------------------
STATEMENT OF ASSETS & LIABILITIES
---------------------------------
STATEMENT OF ASSETS & LIABILITIES
April 30, 2000 (unaudited)
Assets
Investments in securities, at value (cost $6,500,721) ......... $ 8,827,259
Cash .......................................................... 31,402
Receivable for investment securities sold ..................... 1,000,163
Receivable due from advisor ................................... 6,044
Dividends and interest receivable ............................. 4,770
-----------
Total assets .................................................. 9,869,638
-----------
Liabilities
Payable for investment securities purchased ................... 1,000,000
Payable for capital stock redeemed ............................ 28,323
Accrued expenses .............................................. 238,746
-----------
Total liabilities ............................................. 1,267,069
-----------
Net Assets .................................................... $ 8,602,569
===========
Composition of Net Assets
Capital stock, at par ......................................... $ 1,279
Additional paid-in capital .................................... 6,416,283
Accumulated net investment loss ............................... (81,405)
Accumulated net realized loss on investments and
foreign currency transactions .............................. (59,846)
Net unrealized appreciation of investments and
foreign currency denominated assets and liabilities ........ 2,326,258
-----------
$ 8,602,569
===========
Calculation of Maximum Offering Price
Class A Shares
Net asset value and redemption price per share
($8,067,675 / 1,197,716 shares of capital stock
issued and outstanding) .................................... $6.74
Sales charge--4.25% of public offering price .................. .30
-----
Maximum offering price ........................................ $7.04
=====
Class B Shares
Net asset value and offering price per share
($345,027 / 52,099 shares of capital stock
issued and outstanding) .................................... $6.62
=====
Class C Shares
Net asset value and offering price per share
($184,022 / 27,967 shares of capital stock
issued and outstanding) .................................... $6.58
=====
Advisor Class Shares
Net asset value, redemption and offering price per share
($5,845 / 857 shares of capital stock issued
and outstanding) ........................................... $6.82
=====
See notes to financial statements.
--------------------------------------------------------------------------------
ALLIANCE GLOBAL ENVIRONMENT FUND o 11
<PAGE>
-----------------------
STATEMENT OF OPERATIONS
-----------------------
STATEMENT OF OPERATIONS
Six Months Ended April 30, 2000 (unaudited)
Investment Income
Dividends ..................................... $ 30,228
Interest ...................................... 16,570 $ 46,798
-----------
Expenses
Advisory fee .................................. 46,466
Distribution fee - Class A .................... 8,050
Distribution fee - Class B .................... 819
Distribution fee - Class C .................... 393
Custodian ..................................... 88,578
Audit and legal ............................... 56,396
Transfer agency ............................... 18,084
Directors' fees ............................... 15,000
Registration .................................. 11,623
Printing ...................................... 9,793
Miscellaneous ................................. 6,012
-----------
Total expenses ................................ 261,214
Less: expenses waived and reimbursed
by the Adviser (see Note B) ................ (132,256)
Less: expense offset arrangement
(see Note B) ............................... (755)
-----------
Net expenses .................................. 128,203
-----------
Net investment loss ........................... (81,405)
-----------
Realized and Unrealized Gain (Loss)
on Investments and Foreign
Currency Transactions
Net realized gain on investment
transactions ............................... 42,426
Net realized loss on foreign currency
transactions ............................... (429)
Net change in unrealized
appreciation/depreciation of:
Investments .............................. 1,669,441
Foreign currency denominated assets
and liabilities ........................ (254)
-----------
Net gain on investments and foreign
currency transactions ...................... 1,711,184
-----------
Net Increase in Net Assets
from Operations ............................ $ 1,629,779
===========
See notes to financial statements.
--------------------------------------------------------------------------------
12 o ALLIANCE GLOBAL ENVIRONMENT FUND
<PAGE>
----------------------------------
STATEMENT OF CHANGES IN NET ASSETS
----------------------------------
STATEMENT OF CHANGES
IN NET ASSETS
Six Months
Ended Year Ended
April 30, 2000 October 31,
(unaudited) 1999
-------------- ------------
Increase (Decrease) in Net Assets
from Operations
Net investment loss ........................ $ (81,405) $ (306,647)
Net realized gain on investments and
foreign currency transactions ........... 41,997 1,127,642
Net change in unrealized
appreciation/depreciation of
investments and foreign currency
denominated assets and liabilities ...... 1,669,187 83,310
------------ ------------
Net increase in net assets from
operations .............................. 1,629,779 904,305
Distributions to Shareholders from:
Net realized gain on investments
Class A ................................. (161,779) (4,655,923)
Class B ................................. (4,947) (70,731)
Class C ................................. (2,823) (9,442)
Advisor Class ........................... (107) (1,754)
Capital Stock Transactions
Net decrease ............................... (1,701,014) (805,430)
------------ ------------
Total decrease ............................. (240,891) (4,638,975)
Net Assets
Beginning of year .......................... 8,843,460 13,482,435
------------ ------------
End of period .............................. $ 8,602,569 $ 8,843,460
------------ ------------
See notes to financial statements.
--------------------------------------------------------------------------------
ALLIANCE GLOBAL ENVIRONMENT FUND o 13
<PAGE>
-----------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
NOTES TO FINANCIAL STATEMENTS
April 30, 2000 (unaudited)
NOTE A
Significant Accounting Policies
Alliance Global Environment Fund (the "Fund") is registered under the Investment
Company Act of 1940 (the "1940 Act"), as a non-diversified, open-end management
investment company. Until October 3, 1997, the Fund was registered under the
1940 Act as a non-diversified, closed-end management investment company. After
October 3, 1997, all of the common stock was converted to Class A shares of the
Fund and the Fund commenced a public offering of its Class A, Class B, Class C
and Advisor Class of 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 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. The following is a summary of significant accounting
policies followed by the Fund.
1. Security Valuation
Portfolio securities traded on a national securities exchange or on a foreign
securities exchange (other than foreign securities exchanges whose operations
are similar to those of the United States over-the-counter market) or on the
Nasdaq Stock Market, Inc. are generally valued at the last reported sale price
or if no sale occurred, at the mean of the closing bid and asked price on that
day. Readily marketable securities traded in the over-the-counter market,
securities listed on a foreign securities exchange whose operations are similar
to the U.S. over-the-counter market, and securities listed on a national
securities exchange whose primary market is believed to be over-the-counter,
(but excluding securities traded on the Nasdaq Stock Market, Inc.) are valued at
the mean of the current bid and asked price. U.S. government and fixed income
securities which mature in 60 days or less are valued at amortized cost, unless
this method does not represent fair value. Securities for which current market
quotations are not readily available are valued at their fair value as
determined in good faith by,
--------------------------------------------------------------------------------
14 o ALLIANCE GLOBAL ENVIRONMENT FUND
<PAGE>
-----------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
or in accordance with procedures adopted by, the Board of Directors. Fixed
income securities may be valued on the basis of prices obtained from a pricing
service when such prices are believed to reflect the fair market value of such
securities.
2. Currency Translation
Assets and liabilities denominated in foreign currencies and commitments under
forward exchange currency contracts are translated into U.S. dollars at the mean
of the quoted bid and asked price of such currencies against the U.S. dollar.
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 accrued.
Net realized gain or loss on foreign currency transactions represents foreign
exchange gains and losses from sales and maturities of investments and foreign
currency contracts, the holding of foreign currencies, currency gains or losses
realized between the trade and settlement dates on foreign security
transactions, and the difference between the amounts of dividends, interest and
foreign taxes receivable recorded on the Fund's books and the U.S. dollar
equivalent of the 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 (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. 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 on short-term securities as adjustments
to interest income.
5. Income and Expenses
All income earned and expenses incurred by the Fund are borne on a pro-rata
basis by each outstanding class of shares, based on the proportionate interest
in the Fund represented by the shares 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).
6. Dividends and Distributions
Dividends and distributions to shareholders are recorded on the ex-dividend
date. Income and capital gains distributions are determined in accordance
--------------------------------------------------------------------------------
ALLIANCE GLOBAL ENVIRONMENT FUND o 15
<PAGE>
-----------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
with federal tax regulations and may differ from those determined in accordance
with 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.
NOTE B
Advisory Fee and Other Transactions with Affiliates
Under the Advisory Agreement, the Fund pays Alliance Capital Management L.P.
("the Adviser") a fee at the annual rate of 1.10% of the Fund's average daily
net assets up to $100 million, .95 of 1% of the next $100 million of the Fund's
average daily net assets, and .80 of 1% of the Fund's average daily net assets
over $200 million. The fee is accrued daily and paid monthly. Effective February
1, 1999 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, 2000, such waivers and reimbursement amounted to $132,256.
The Fund compensates Alliance Fund Services, Inc., 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 $9,200 for the six months ended April 30, 2000.
For the six months ended April 30, 2000, the Fund's expenses were reduced by
$755 under an expense offset arrangement with Alliance Fund Services, Inc.
Alliance Fund Distributors, 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 $583 and $3,500 in contingent deferred sales
charges imposed upon redemption by shareholders of Class B and Class C shares,
for the six months ended April 30, 2000.
Brokerage commissions paid on investment transactions for the six months ended
April 30, 2000, amounted to $7,856, none of which was paid to brokers utilizing
the services of the Pershing Division of Donaldson, Lufkin & Jenrette Securities
Corp. ("DLJ"), an affiliate of the Adviser, nor to DLJ directly.
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 1% of the average daily net assets attributable
to Class A shares and 1% of the average daily net assets attributable to the
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
--------------------------------------------------------------------------------
16 o ALLIANCE GLOBAL ENVIRONMENT FUND
<PAGE>
-----------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
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 amount of $698,827 and $189,871 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 and U.S.
government obligations) aggregated $2,092,626 and $4,881,032 respectively, for
the six months ended April 30, 2000. There were no purchases or sales of U.S.
government or government agency obligations for the six months ended April 30,
2000. At April 30, 2000, the cost of investments for federal income tax purposes
was substantially the same as the cost for financial reporting purposes.
Accordingly, gross unrealized appreciation of investments was $2,554,376 and
gross unrealized depreciation of investments was $227,838, resulting in net
unrealized appreciation of $2,326,538, (excluding foreign currency
transactions).
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 shares. Each class consists of 3,000,000,000 authorized shares. Until
October 3, 1997, the Fund was a closed end management investment company.
Transactions in capital stock were as follows:
<TABLE>
<CAPTION>
------------------------------- -------------------------------
Shares Amount
------------------------------- -------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
April 30, 2000 October 31, April 30, 2000 October 31,
(unaudited) 1999 (unaudited) 1999
------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A
Shares sold 51,080 83,689 $ 292,929 $ 527,447
-----------------------------------------------------------------------------------------
Shares issued in
reinvestment of
distributions 18,780 563,375 103,102 2,935,183
-----------------------------------------------------------------------------------------
Shares redeemed (381,291) (732,786) (2,243,511) (4,459,977)
-----------------------------------------------------------------------------------------
Net decrease (311,431) (85,722) $(1,847,480) $ (997,347)
=========================================================================================
</TABLE>
--------------------------------------------------------------------------------
ALLIANCE GLOBAL ENVIRONMENT FUND o 17
<PAGE>
-----------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
<TABLE>
<CAPTION>
------------------------------ ------------------------------
Shares Amount
------------------------------ ------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
April 30, 2000 October 31, April 30, 2000 October 31,
(unaudited) 1999 (unaudited) 1999
---------------------------------------------------------------
<S> <C> <C> <C> <C>
Class B
Shares sold 17,975 40,120 $ 108,748 $ 244,845
------------------------------------------------------------------------------------
Shares issued in
reinvestment of
distributions 916 11,443 4,947 59,160
------------------------------------------------------------------------------------
Shares redeemed (14,569) (22,153) (87,842) (123,377)
------------------------------------------------------------------------------------
Net increase 4,322 29,410 $ 25,853 $ 180,628
====================================================================================
Class C
Shares sold 26,696 4,336 $ 149,631 $ 24,606
------------------------------------------------------------------------------------
Shares issued in
reinvestment of
distributions 525 246 2,817 1,263
------------------------------------------------------------------------------------
Shares redeemed (4,974) (2,567) (30,338) (16,808)
------------------------------------------------------------------------------------
Net increase 22,247 2,015 $ 122,110 $ 9,061
====================================================================================
Advisor Class
Shares sold 1,704 77 $ 10,067 $ 489
------------------------------------------------------------------------------------
Shares issued in
reinvestment of
distributions 19 331 106 1,739
------------------------------------------------------------------------------------
Shares redeemed (1,831) -0- (11,670) -0-
------------------------------------------------------------------------------------
Net increase
(decrease) (108) 408 $ (1,497) $ 2,228
====================================================================================
</TABLE>
NOTE F
Bank Borrowing
A number of open-end mutual funds managed by the Adviser, including the Fund,
participate in a $750 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, 2000.
NOTE G
Subsequent Events
On February 28, 2000, the Board of Directors of the Fund considered and
approved, and recommended to shareholders for their approval, the liquidation
and dissolution of the Fund. A proxy statement for a Special Meeting of
Shareholders to be held on May 18 relating to this recommendation has been
mailed to shareholders. Effective February 28, 2000, the Fund suspended sales of
its shares pending consideration by shareholders of this proposal.
--------------------------------------------------------------------------------
18 o ALLIANCE GLOBAL ENVIRONMENT FUND
<PAGE>
--------------------
FINANCIAL HIGHLIGHTS
--------------------
FINANCIAL HIGHLIGHTS
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------
CLASS A
---------------------------------------------------------------------------------------------
Six Months
Ended
April 30, Year Ended October 31,
2000 -----------------------------------------------------------------------
(unaudited) 1999 1998 1997 1996 1995
---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of year .............. $ 5.66 $ 8.34 $ 18.77 $ 16.48 $ 12.37 $ 11.74
---------------------------------------------------------------------------------------------
Income From
Investment Operations
Net investment income (loss) ..... (.06)(a)(b) (.18)(a)(b) (.24)(a) (.23)(a) (.13)(a) .03
Net realized and unrealized
gain (loss) on investments
and foreign currency
transactions ................... 1.25 .60 (1.12) 3.65 4.26 .60
---------------------------------------------------------------------------------------------
Net increase (decrease) in
net asset value from
operations ..................... 1.19 .42 (1.36) 3.42 4.13 .63
---------------------------------------------------------------------------------------------
Less: Dividends and
Distributions
Dividends from net
investment income .............. -0- -0- -0- -0- (.02) -0-
Distributions from net realized
gain on investments and
foreign currency transactions .. (.11) (3.10) (9.07) (1.13) -0- -0-
---------------------------------------------------------------------------------------------
Total dividends and
distributions .................. (.11) (3.10) (9.07) (1.13) (.02) -0-
---------------------------------------------------------------------------------------------
Net asset value, end of period ... $ 6.74 $ 5.66 $ 8.34 $ 18.77 $ 16.48 $ 12.37
=============================================================================================
Market value, end of year ........ $ 13.25 $ 9.375
=============================================================================================
Total Return
Total investment return
based on net asset value ....... 21.47%(c) 8.21%(c) (10.51)%(c) 23.51%(c) 33.48%(d) 5.37%(d)
Ratios/Supplemental Data
Net assets, end of period
(000's omitted) ................ $ 8,068 $ 8,540 $ 13,295 $ 52,378 $100,271 $ 85,416
Ratio to average net assets:
Expenses, net of
waivers/reimbursements ....... 3.02%(e)(f) 3.54%(f) 2.80%(f) 2.39% 1.60% 1.57%
Expenses, before
waivers/reimbursements ....... 6.15%(e) 5.12% -0- -0- -0- -0-
Net investment income (loss) ... (1.89)%(b)(e) (2.88)%(b) (2.27)% (1.35)% (.85)% .21%
Portfolio turnover rate .......... 52% 110% 205% 145% 268% 109%
</TABLE>
See footnote summary on page 23.
--------------------------------------------------------------------------------
ALLIANCE GLOBAL ENVIRONMENT FUND o 19
<PAGE>
--------------------
FINANCIAL HIGHLIGHTS
--------------------
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
<TABLE>
<CAPTION>
-----------------------------------------------------------------
CLASS B
-----------------------------------------------------------------
Six Months
Ended October 6,
April 30, Year Ended October 31, 1997(g) to
2000 ---------------------- October 31,
(unaudited) 1999 1998 1997
-----------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period ........... $5.58 $8.30 $18.76 $19.92
-----------------------------------------------------------------
Income From Investment Operations
Net investment loss(a) ......................... (.07)(b) (.21)(b) (.27) (.20)
Net realized and unrealized gain (loss)
on investments and foreign currency
transactions ................................. 1.22 .59 (1.12) (.96)
-----------------------------------------------------------------
Net increase (decrease) in net asset value
from operations .............................. 1.15 .38 (1.39) (1.16)
-----------------------------------------------------------------
Less: Distributions
Distributions from net realized gain on
investments and foreign currency
transactions ................................. (.11) (3.10) (9.07) -0-
-----------------------------------------------------------------
Net asset value, end of period ................. $6.62 $5.58 $8.30 $18.76
=================================================================
Total Return
Total investment return based on
net asset value(c) ........................... 21.05% 7.50% (10.79)% (5.82)%
Ratios/Supplemental Data
Net assets, end of period (000's omitted) ...... $345 $266 $152 $235(h)
Ratio to average net assets:
Expenses, net of waivers/reimbursements ...... 3.72%(e)(f) 4.12%(f) 3.52%(f) 20.84%(e)
Expenses, before waivers/reimbursements ...... 6.53%(e) 5.90% -0- -0-
Net investment loss .......................... (2.55)%(b)(e) (3.44)%(b) (2.93)% (1.03)%(e)
Portfolio turnover rate ........................ 52% 110% 205% 145%
</TABLE>
See footnote summary on page 23.
--------------------------------------------------------------------------------
20 o ALLIANCE GLOBAL ENVIRONMENT FUND
<PAGE>
--------------------
FINANCIAL HIGHLIGHTS
--------------------
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
<TABLE>
<CAPTION>
----------------------------------------------------
CLASS C
----------------------------------------------------
Six Months
Ended November 5,
April 30, Year Ended 1997(g) to
2000 October 31, October 31,
(unaudited) 1999 1998
----------------------------------------------------
<S> <C> <C> <C>
Net asset value, beginning of period ........................... $5.55 $8.27 $19.15
----------------------------------------------------
Income From Investment Operations
Net investment loss(a) ......................................... (.08)(b) (.21)(b) (.27)
Net realized and unrealized gain (loss) on investments and
foreign currency transactions ................................ 1.22 .59 (1.54)
----------------------------------------------------
Net increase (decrease) in net asset value from operations ..... 1.14 .38 (1.81)
----------------------------------------------------
Less: Distributions
Distributions from net realized gain on investments and
foreign currency transactions ................................ (.11) (3.10) (9.07)
----------------------------------------------------
Net asset value, end of period ................................. $6.58 $5.55 $8.27
====================================================
Total Return
Total investment return based on net asset value(c) ............ 20.99% 7.55% (12.88)%
Ratios/Supplemental Data
Net assets, end of period (000's omitted) ...................... $184 $32 $31
Ratio to average net assets:
Expenses, net of waivers/reimbursements(f) ................... 3.72%(e) 4.02% 3.39%(e)
Expenses, before waivers/reimbursements ...................... 6.54%(e) 5.83% -0-
Net investment loss .......................................... (2.55)%(b)(e) (3.34)%(b) (2.75)%(e)
Portfolio turnover rate ........................................ 52% 110% 205%
</TABLE>
See footnote summary on page 23.
--------------------------------------------------------------------------------
ALLIANCE GLOBAL ENVIRONMENT FUND o 21
<PAGE>
--------------------
FINANCIAL HIGHLIGHTS
--------------------
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
<TABLE>
<CAPTION>
----------------------------------------------------
ADVISOR CLASS
----------------------------------------------------
Six Months December
Ended 29, 1997(g)
April 30, Year Ended to
2000 October 31, October 31,
(unaudited) 1999 1998
----------------------------------------------------
<S> <C> <C> <C>
Net asset value, beginning of period ........................... $5.72 $8.37 $9.15
----------------------------------------------------
Income From Investment Operations
Net investment loss(a) ......................................... (.05)(b) (.15)(b) (.20)
Net realized and unrealized gain (loss) on investments and
foreign currency transactions ................................ 1.26 .60 (.58)
----------------------------------------------------
Net increase (decrease) in net asset value from operations ..... 1.21 .45 (.78)
----------------------------------------------------
Less: Distributions
Distributions from net realized gain on investments and
foreign currency transactions ................................ (.11) (3.10) -0-
----------------------------------------------------
Net asset value, end of period ................................. $6.82 $5.72 $8.37
====================================================
Total Return
Total investment return based on net asset value(c) ............ 21.59% 8.65% (8.52)%
Ratios/Supplemental Data
Net assets, end of period (000's omitted) ...................... $6 $5 $5
Ratio to average net assets:
Expenses, net of waivers/reimbursements(f) ................... 2.71%(e) 3.09% 3.04%(e)
Expenses, before waivers/reimbursements ...................... 6.18%(e) 4.86% -0-
Net investment loss .......................................... (1.67)%(b)(e) (2.41)%(b) (2.39)%(e)
Portfolio turnover rate ........................................ 52% 110% 205%
</TABLE>
See footnote summary on page 23.
--------------------------------------------------------------------------------
22 o ALLIANCE GLOBAL ENVIRONMENT FUND
<PAGE>
--------------------
FINANCIAL HIGHLIGHTS
--------------------
(a) Based on average shares outstanding.
(b) Net of expenses waived/reimbursed by the Adviser.
(c) Total investment return is calculated assuming an initial investment made
at the net asset value at the beginning of the period, reinvestment of all
dividends and distributions at net asset value during the period, and
redemption on the last day of the period. Initial sales charge or
contingent deferred sales charge are not reflected in the calculation of
total investment return. Total investment return for a period of less than
one year is not annualized.
(d) 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.
(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:
Six Months
Ended
April 30, Year Ended October 31,
2000 ----------------------
(unaudited) 1999 1998
--------------------------------------------
Class A.............. 3.00% 3.53% 2.79%
Class B.............. 3.70% 4.10% 3.51%
Class C.............. 3.70% 4.00% 3.38%
Advisor Class........ 2.70% 3.08% 3.03%
(g) Commencement of distribution.
(h) Actual net assets without 000's omitted.
--------------------------------------------------------------------------------
ALLIANCE GLOBAL ENVIRONMENT FUND o 23
<PAGE>
----------------------------
GLOSSARY OF INVESTMENT TERMS
----------------------------
GLOSSARY OF INVESTMENT TERMS
benchmark
A standard by which a fund's performance can be measured. A benchmark is usually
an unmanaged index, such as the Standard & Poor's 500 Stock Index or the Lehman
Brothers Aggregate Bond Index.
Consumer Price Index (CPI)
An index that measures the cost of living. The CPI is published by the U.S.
Bureau of Labor Statistics.
index
A compilation of securities of similar types of companies that is used to
measure the investment performance of securities within that specific market. An
index is often used as a benchmark for a mutual fund. An investor cannot invest
directly in an index.
net asset value (NAV)
The value of a mutual fund's total assets, minus its liabilities, divided by the
number of shares outstanding.
Federal Reserve Board (Fed)
The seven-member board that oversees Federal Reserve Banks, establishes monetary
policy and monitors the country's economic state.
--------------------------------------------------------------------------------
24 o ALLIANCE GLOBAL ENVIRONMENT FUND
<PAGE>
----------------
ALLIANCE CAPITAL
----------------
ALLIANCE CAPITAL
The Investment Professional's Choice
Alliance Capital is a leading global investment management firm with over $394
billion in assets under management. In recognition of our far-reaching
investment capabilities, Alliance Capital has been selected by employee benefit
plans for 28 of the FORTUNE 100 companies and public retirement funds in 33
states as well as by hundreds of foundations, endowments and foreign
institutions. By sharing this institutional money management experience with
millions of mutual fund investors as well, Alliance stands out as a "manager of
choice" for thousands of investment professionals around the world.
At Alliance Capital, we place a premium on investment research. We carefully
select securities based on our proprietary research, conducted by over 276
investment professionals in 22 investment offices worldwide. Our commitment to
this process means that our mutual fund shareholders have their portfolios
managed by the same experienced analysts and portfolio managers who manage the
pension funds of some of America's largest institutional investors.
All information on Alliance Capital is as of 3/31/00.
--------------------------------------------------------------------------------
ALLIANCE GLOBAL ENVIRONMENT FUND o 25
<PAGE>
------------------
BOARD OF DIRECTORS
------------------
BOARD OF DIRECTORS
John D. Carifa, Chairman and President
David H. Dievler(1)
John H. Dobkin(1)
W.H. Henderson(1)
Stig Host(1)
Alan Stoga(1)
OFFICERS
Kathleen A. Corbet, Senior Vice President
Thomas J. Bardong, Vice President
Russell Brody, Vice President
Michael R. Baldwin, Vice President
Edmund P. Bergan, Jr., Secretary
Mark D. Gersten, Treasurer & Chief Financial Officer
Vincent S. Noto, Controller
Custodian
Brown Brothers Harriman & Co.
40 Water Street
Boston, MA 02109-3661
Principal Underwriter
Alliance Fund Distributors, Inc.
1345 Avenue of the Americas
New York, NY 10105
Legal Counsel
Seward & Kissel LLP
One Battery Park Plaza
New York, NY 10004
Independent Auditors
Ernst & Young LLP
787 Seventh Avenue
New York, NY 10019
Transfer Agent
Alliance Fund Services, Inc.
P.O.Box 1520
Secaucus, NJ 07094
Toll-Free 1-(800)-221-5672
(1) Member of the Audit Committee.
--------------------------------------------------------------------------------
26 o ALLIANCE GLOBAL ENVIRONMENT FUND
<PAGE>
--------------------------------
ALLIANCE CAPITAL FAMILY OF FUNDS
--------------------------------
ALLIANCE CAPITAL FAMILY OF FUNDS
Domestic Equity Funds
Balanced Shares
Conservative Investors Fund
Disciplined Value Fund
Growth & Income Fund
Growth Fund
Growth Investors Fund
Health Care Fund
Premier Growth Fund
Quasar Fund
Real Estate Investment Fund
Technology Fund
The Alliance Fund
Utility Income Fund
Global & International Equity Funds
All-Asia Investment Fund
Global Small Cap Fund
Greater China '97 Fund
International Fund
International Premier Growth Fund
New Europe Fund
Worldwide Privatization Fund
Select Investor Series
Premier Portfolio
Technology Portfolio
Fixed Income Funds
Corporate Bond Portfolio
Global Dollar Government Fund
Global Strategic Income Trust
High Yield Fund
Limited Maturity Government Fund
Mortgage Securities Income Fund
Multi-Market Strategy Trust
North American Government Income Trust
Quality Bond Portfolio
U.S. Government Portfolio
Municipal Income Funds
National
Insured National
Arizona
California
Insured California
Florida
Massachusetts
Michigan
Minnesota
New Jersey
New York
Ohio
Pennsylvania
Virginia
Alliance also offers AFD Exchange Reserves, which serves as the money market
fund exchange vehicle for the Alliance mutual funds.
To obtain a prospectus for any Alliance Capital fund, call your investment
professional, or call Alliance at (800) 227-4618.
--------------------------------------------------------------------------------
ALLIANCE GLOBAL ENVIRONMENT FUND o 27
<PAGE>
NOTES
--------------------------------------------------------------------------------
28 o ALLIANCE GLOBAL ENVIRONMENT FUND
<PAGE>
Alliance Global Environment Fund
1345 Avenue of the Americas
New York, NY 10105
(800) 221-5672
-----------------
BULK RATE
U.S. POSTAGE
PAID
New York, NY
Permit No. 7131
-----------------
AllianceCapital [LOGO](R)
The Investment Professional's Choice
(R) These registered service marks used under license from the owner, Alliance
Capital Management L.P.
ENVSR400
