ALLIANCE WORLD DOLLAR GOVERNMENT FUND, INC.
SEMI-ANNUAL REPORT
APRIL 30, 1996
ALLIANCE
INVESTING WITHOUT THE MYSTERY.
LETTER TO SHAREHOLDERS ALLIANCE WORLD DOLLAR GOVERNMENT FUND, INC.
_______________________________________________________________________________
May 31, 1996
Dear Shareholder:
The U.S. bond market enjoyed a sustained broad-based rally throughout most of
1995 and into early 1996, though economic news led to a setback in February.
The market reacted negatively to the stronger-than-expected job growth in the
U.S. and doubts about whether the Federal Reserve would lower interest rates
again. Outside the U.S., emerging market and other foreign debt prices rose
sharply as positive developments in Latin America and Central Europe encouraged
foreign investors.
FUND PERFORMANCE
We are pleased to report that Alliance World Dollar Government Fund, which
trades under the New York Stock Exchange symbol 'AWG,' benefited from this
favorable investment environment. For the six months ended April 30, 1996, AWG
returned +17.26% on a net asset value basis, which compares with the J.P.
Morgan Emerging Markets Bond Index return of +17.24%. For the one-year period
ended April 30, the Fund achieved a total return of +41.48%, compared with
+29.72% for the benchmark Index.
THE ECONOMY
The U.S. economy survived an inventory scare in 1995 and entered 1996 in a
relatively balanced and healthy condition. The latest economic data show the
U.S. economy's 'soft landing' is still intact. February's shocking payroll gain
grabbed headlines, but the 12-month comparisons were all numbers that support a
soft landing. Consumer confidence has bounced back, debt service burdens are
still manageable, and February retail sales had their best showing since last
summer, climbing 5% on a year-on-year basis. Manufacturing is likely to remain
a soft spot, although new orders for durable goods are showing hidden strength
and unfilled orders continue to rise. Revised data show the much-feared
slowdown in capital spending has already occurred. We expect a gradual
re-strengthening in the U.S. economy over the next six to 12 months.
Measured inflation at the consumer and producer levels remains well behaved and
the U.S. economy continues to operate in the inflation 'safe zone.' However,
recent increases in unit labor costs and commodity prices warn against
complacency. Federal Reserve policy has moved into a holding pattern, and
chances for a meaningful deficit reduction plan have receded as politicians
increasingly turn their attention to the 1996 election campaign.
ECONOMIC AND INVESTMENT OUTLOOK
The U.S. economy appears to be healthy, with modest growth expected in the
period ahead and falling into the 2%-2.5% range by year end. With a gradually
strengthening economy and steady inflation, we expect no Federal Reserve action
on interest rates over the medium term. If our forecast proves correct, the
result should be steady U.S. bond prices.
We continue to have a favorable outlook for emerging market debt securities.
Moderate growth in the U.S., stable inflation and steady bond prices provide a
strong positive environment for this area of fixed income investing. Further,
emerging market countries continue to follow economic policies leading to
improving fundamentals. The last 15 months have proved to be a difficult
period, but in general, the reform process has not been halted. We continue to
believe that Argentina and Poland provide very good risk/return profiles.
Argentina has held steady to the economic policies designed to keep inflation
around 2.0%, and bank deposits and international reserves have returned to
levels existing prior to the Mexican peso devaluation in December 1994.
Poland's Brady bonds received an investment-grade rating from Moody's Investor
Services in January and from Standard & Poor's in April, confirming Poland's
improving credit fundamentals. These ratings are a breakthrough event as it
proves that Brady bonds can receive investment-grade ratings if the countries
undertake necessary economic reforms. Since an investment-grade rating broadens
the investor base for Brady bonds, it can also lead to a considerable narrowing
of yield spreads resulting from increased demand. Between the end of December
and the end of January, the yield spreads on Polish Brady bonds narrowed over
200 basis points, or about 2%, versus U.S. Treasury securities due largely to
the rating upgrade.
More recently, Venezuela has received approval for funding from the
International Monetary Fund. This approval, which required stringent economic
measures by Venezuela, will reverse an unfortunate slide toward poor economic
policies and proves that isolation from international capital markets is costly
and, ultimately, not sustainable. We increased your Fund's holdings in
Venezuela as approval of the IMF program became more certain.
1
ALLIANCE WORLD DOLLAR GOVERNMENT FUND, INC.
_______________________________________________________________________________
Some of the significant factors that could affect emerging market bond prices
in the coming months include elections in Russia and Ecuador, the IMF agreement
on economic reforms in Russia, and ongoing resolution of the banking system
problems in Mexico.
Thank you for your interest in Alliance World Dollar Government Fund. We look
forward to reporting to you again on market activity and the Fund's investment
results in coming periods.
Sincerely,
John D. Carifa
Chairman
Wayne D. Lyski
President
2
PORTFOLIO OF INVESTMENTS
APRIL 30, 1996 (UNAUDITED) ALLIANCE WORLD DOLLAR GOVERNMENT FUND, INC.
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) U.S. $VALUE
- ------------------------------------------------------------------------
SOVEREIGN DEBT OBLIGATIONS99.6%
COLLATERALIZED BRADY BONDS*73.6%
ARGENTINA11.2%
Republic of Argentina Euro Par Bonds
5.25%, 3/31/23(a)
(cost $11,760,866) $23,450 $12,794,906
BRAZIL17.3%
Republic of Brazil Par Bonds
4.25%, 4/15/24(a)
(cost $18,174,128) 37,500 19,746,094
BULGARIA8.7%
Republic of Bulgaria Discount Bonds FRN
6.25%, 7/28/24
(cost $9,406,086) 20,000 10,012,500
ECUADOR9.4%
Republic of Ecuador Discount Bonds FRN
6.0625%, 2/28/25
(cost $9,568,295) 19,000 10,651,875
MEXICO6.9%
United Mexican States Euro Par Bonds
6.25%, 12/31/19
Series A 9,500 6,270,000
Series B 2,500 1,650,000
Total Mexican Securities
(cost $7,245,237) 7,920,000
NIGERIA6.7%
Central Bank of Nigeria Par Bonds
6.25%, 11/15/20(a)
(cost $7,175,837) 14,500 7,594,375
POLAND4.4%
Republic of Poland Par Bonds
2.75%, 10/27/24(a)
(cost $4,319,745) 10,000 4,990,600
VENEZUELA9.0%
Republic of Venezuela Par Bonds
6.750%, 3/31/20
Series W-A 11,000 6,455,625
Series W-B 6,500 3,814,687
Total Venezuelan Securities
(cost $9,303,812) 10,270,312
Total Collateralized Brady Bonds
(cost $76,954,006) 83,980,662
NON-COLLATERALIZED BRADY BONDS14.9%
BULGARIA1.8%
FLIRB FRN
2.00%, 7/28/12
(cost $2,426,640) 7,000 2,091,250
PANAMA5.9%
Republic of Panama
IRB
3.50%, 6/30/14(a)(b)(c) 10,000 5,150,000
PDI Bonds FRN
6.50%, 6/30/16(b) 3,000 1,631,250
Total Panama Securities
(cost $5,547,500) 6,781,250
POLAND2.3%
Republic of Poland PDI Bonds FRN
3.25%, 10/27/14
(cost $2,391,817) 3,500 2,678,603
3
PORTFOLIO OF INVESTMENTS (CONTINUED)
ALLIANCE WORLD DOLLAR GOVERNMENT FUND, INC.
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) U.S. $VALUE
- -------------------------------------------------------------------------
VENEZUELA4.9%
Republic of Venezuela DCB FRN
6.5625%, 12/18/07
(cost $5,239,817) $ 8,500 $ 5,567,500
Total Non-Collateralized Brady Bonds
(cost $15,605,774) 17,118,603
LOAN PARTICIPATIONS & ASSIGNMENTS8.9%
ALGERIA1.3%
Algeria Refinancing Trust
Loan Assignment Series B
7.00%, 3/04/97
(cost $2,797,249) 3,000 1,470,000
MOROCCO7.6%
Kingdon of Morocco
Loan Participation FRN
6.59375%, 1/01/09
(cost $5,804,826) 12,000 8,640,000
Total Loan Participations & Assignments
(cost $8,602,075) 10,110,000
Sovereign Debt-Related-2.2%
Morgan Guaranty Trust Co. Spread Note(d)
U.S. Treasury Bond 5.875%, 11/25 vs.
Poland PDI Bonds 3.75%, 10/27/14
10.00%, 7/25/96
(cost $1,600,000) 1,600 2,547,309
Total Sovereign Debt Obligations
(cost $102,761,855) 113,756,574
TREASURY SECURITY36.3%
U.S. Treasury Strip Zero coupon, 5/15/99
(cost $41,807,738) 50,000 41,459,850
TOTAL INVESTMENTS135.9%
(cost $144,569,593) 155,216,424
Other assets less liabilities(35.9%) (41,004,223)
NET ASSETS-100% $114,212,201
* Sovereign debt obligations issued as part of debt restructurings that are
collateralized in full as to principal due at maturity by U.S. Treasury zero
coupon obligations which have the same maturity as the Brady Bond.
(A) Coupon will increase periodically based upon a predetermined schedule.
Stated interest rate in effect at April 30, 1996.
(B) When and if issued.
(C) Security is exempt from registration under Rule 144A of the Securities Act
of 1933. This security may be resold normally to qualified institutional
buyers. At April 30, 1996, this security amounted to $5,150,000, or 4.5% of net
assets.
(D) The redemption value of this security is indexed to the spread between the
referenced treasury yield and the referenced emerging market debt yield.
Glossary of Terms:
FLIRB Front Loaded Interest Reduction Bonds.
FRN Floating Rate Note. Coupon will fluctuate based upon an interest
rate index. Stated interest rate in effect April 30, 1996.
DCB Debt Conversion Bond.
IRB Interest Rate Option Bond.
PDI Past Due Interest.
See notes to financial statements.
4
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1996 (UNAUDITED) ALLIANCE WORLD DOLLAR GOVERNMENT FUND, INC.
_______________________________________________________________________________
ASSETS
Investments in securities, at value (cost $144,569,593) $155,216,424
Cash 5,150,974
Interest receivable 2,221,376
Receivable for investment securities sold 101,688
Deferred organization expenses and other assets 60,288
Total assets 162,750,750
LIABILITIES
Payable for investment securities purchased 47,259,500
Unrealized depreciation on interest rate swap contract 1,059,600
Advisory fee payable 94,458
Administrative fee payable 14,169
Accrued expenses and other liabilities 110,822
Total liabilities 48,538,549
NET ASSETS $114,212,201
COMPOSITION OF NET ASSETS
Capital stock, at par $ 86,527
Additional paid-in capital 119,218,745
Undistributed net investment income 795,398
Accumulated net realized loss on investments (15,475,700)
Net unrealized appreciation of investments and other assets 9,587,231
$114,212,201
NET ASSET VALUE PER SHARE
(based on 8,652,707 shares outstanding) $13.20
See notes to financial statements.
5
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 1996 (UNAUDITED)
ALLIANCE WORLD DOLLAR GOVERNMENT FUND, INC.
_______________________________________________________________________________
INVESTMENT INCOME
Interest $ 6,886,388
EXPENSES
Advisory fee $559,805
Administrative fee 83,971
Transfer agency 51,786
Custodian 47,864
Audit and legal 46,583
Printing 11,505
Directors' fees 10,048
Amortization of organization expenses 8,918
Registration 7,984
Miscellaneous 13,622
Total expenses 842,086
Net investment income 6,044,302
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on investment transactions 5,056,933
Net change in unrealized appreciation of investments
and other assets 6,367,841
Net gain on investments 11,424,774
NET INCREASE IN NET ASSETS FROM OPERATIONS $17,469,076
See notes to financial statements.
6
STATEMENT OF CHANGES
IN NET ASSETS ALLIANCE WORLD DOLLAR GOVERNMENT FUND, INC.
_______________________________________________________________________________
SIX MONTHS ENDED YEAR ENDED
APRIL 30,1996 OCTOBER 31,
(UNAUDITED) 1995
------------- -------------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income $ 6,044,302 $ 12,920,751
Net realized gain (loss) on investment
transactions 5,056,933 (10,415,111)
Net change in unrealized appreciation of
investments and other assets 6,367,841 16,574,731
Net increase in net assets from operations 17,469,076 19,080,371
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income (6,013,633) (12,156,022)
COMMON STOCK TRANSACTIONS
Reinvestment of dividends resulting in
issuance of Common Stock -0- 2,304,564
Total increase 11,455,443 9,228,913
NET ASSETS
Beginning of year 102,756,758 93,527,845
End of period (including undistributed net
investment income of $795,398 and $764,729
at April 30, 1996 and October 31, 1995,
respectively) $114,212,201 $102,756,758
See notes to financial statements.
7
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1996 (UNAUDITED) ALLIANCE WORLD DOLLAR GOVERNMENT FUND, INC.
_______________________________________________________________________________
NOTE A: SIGNIFICANT ACCOUNTING POLICIES
Alliance World Dollar Government Fund, Inc. (the 'Fund') was incorporated under
the laws of the State of Maryland on August 20, 1992 and 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
Portfolio securities traded on a national securities exchange are valued at the
last sale price on such exchange on the day of valuation or, if there was no
sale on such day, the last bid price quoted on such day. Listed securities not
traded and securities traded in the over-the-counter market, including listed
debt securities whose primary market is believed to be over-the-counter, are
valued at the mean between the most recently quoted bid and asked price
provided by the principal market makers. Publicly traded Sovereign Debt
Obligations are typically traded internationally on the over-the-counter
market. Because of the nature of the markets for Sovereign Debt Obligations,
quotations from several sources will be obtained so that the Fund's portfolio
investments will not generally be priced by a single source. Readily marketable
Sovereign Debt Obligations may be valued on the basis of prices provided by a
pricing service when such prices are believed by the Adviser to reflect the
fair value of such securities.
Securities for which market quotations are not readily available and restricted
securities which are subject to limitations as to their resale are valued in
good faith, at fair value, using methods determined by the Board of Directors.
Securities which mature in 60 days or less are valued at amortized cost, which
approximates fair value, unless this method does not represent fair value.
2. ORGANIZATION EXPENSES
Organization expenses of approximately $90,000 have been deferred and are being
amortized on a straight-line basis through November, 1997.
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 applicable, to
shareholders. Therefore, no provisions for federal income or excise taxes are
required.
4. INVESTMENT INCOME AND INVESTMENT TRANSACTIONS
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
adjustments 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.
NOTE B: ADVISORY AND ADMINISTRATIVE FEES
Under the terms of an Investment Advisory Agreement, the Fund pays Alliance
Capital Management L.P. (the 'Adviser') a monthly fee equal to the annualized
rate of 1% of the Fund's average weekly net assets.
Under the terms of an Administrative Agreement, the Fund pays Alliance Capital
Management L.P., (the 'Administrator') a monthly fee equal to the annualized
rate of .15 of 1% of the Fund's average weekly net assets.
The Administrator provides administrative functions to the Fund as well as
other clerical services. The Administrator also prepares financial and
regulatory reports for the Fund.
8
ALLIANCE WORLD DOLLAR GOVERNMENT FUND, INC.
_______________________________________________________________________________
NOTE C: INVESTMENT TRANSACTIONS
Purchases and sales of investment securities (excluding short-term investments)
aggregated $205,968,730 and $197,757,814, respectively, for the six months
ended April 30, 1996.
At April 30, 1996, the cost of investments for federal income tax purposes was
$146,219,635. Accordingly, gross unrealized appreciation of investments was
$12,574,069 and gross unrealized depreciation of investments was $3,577,280
resulting in net unrealized appreciation of $8,996,789 (excluding swap
contracts). At October 31, 1995, the Fund had a capital loss carryforward of
$18,376,086 which expires in the year 2003.
NOTE D: INTEREST RATE SWAP AGREEMENT
The Fund enters into swaps on sovereign debt obligations to protect itself from
interest rate fluctuations on the underlying floating rate debt instruments and
for investment purposes. A swap is an agreement that obligates two parties to
exchange a series of cash flows at specified intervals based upon or calculated
by reference to changes in specified prices or rates for a specified amount of
an underlying asset. The payment flows are usually netted against each other,
with the difference being paid by one party to the other.
Risks may arise as a result of the failure of another party to the swap
contract to comply with the terms of the swap contract. The loss incurred by
the failure of a counterparty is generally limited to the net interest payment
to be received by the Fund, and/or the termination value at the end of the
contract. Therefore the Fund considers the creditworthiness of each
counterparty to a swap contract in evaluating potential credit risk.
Additionally, risks may arise from unanticipated movements in interest rates or
in the value of the underlying securities.
The Fund records a net receivable or payable on a daily basis for the net
interest income or expense expected to be received or paid in the interest
period. Net interest received or paid on these contracts is recorded as
interest income (or as an offset to interest income). Fluctuations in the value
of swap contracts are recorded for financial statement purposes as unrealized
appreciation or depreciation on swap contracts.
At April 30, 1996, the Fund had an outstanding interest rate swap contract with
the following terms:
<TABLE>
<CAPTION
RATE TYPE
---------------------------------
SWAP NOTIONAL TERMINATION PAYMENTS MADE PAYMENTS RECEIVED UNREALIZED
COUNTERPARTY AMOUNT DATE BY THE FUND BY THE FUND DEPRECIATION
- ------------ -------------- ----------- ------------- ----------------- ------------
<S> <C> <C> <C> <C> <C>
Morgan US$ 12,000,000 1/01/09 LIBOR+ 6.8526% $1,059,600
Guaranty
</TABLE>
NOTE E: CAPITAL STOCK
There are 100,000,000 shares of $0.01 par value Common Stock authorized.
Of the 8,652,707 shares outstanding at April 30, 1996, the Adviser owned 7,200
shares. During the six months ended April 30, 1996 and the year ended October
31, 1995, the Fund issued -0- and 212,897 shares, respectively, in connection
with the Fund's dividend reinvestment plan.
+ LIBOR (London Interbank Offered Rate).
9
NOTES TO FINANCIAL STATEMENTS
(CONTINUED) ALLIANCE WORLD DOLLAR GOVERNMENT FUND, INC.
_______________________________________________________________________________
NOTE F: CONCENTRATION OF RISK
Investing in securities of foreign governments involves special risks which
include revaluation of currencies and future adverse political and economic
developments. Moreover, securities of many foreign governments and their
markets may be less liquid and their prices more volatile than those of the
United States government. The Fund invests in the sovereign debt obligations of
countries that are considered emerging market countries at the time of
purchase. Therefore, the Fund is susceptible to governmental factors and
economic and debt restructuring developments adversely affecting the economies
of these emerging market countries. In addition, these debt obligations may be
less liquid and subject to greater volatility than debt obligations of more
developed countries.
10
FINANCIAL HIGHLIGHTS ALLIANCE WORLD DOLLAR GOVERNMENT FUND, INC.
_______________________________________________________________________________
SELECTED DATA FOR A SHARE OF COMMON STOCK OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED OCTOBER 31, NOV. 2,1992*
APRIL 30,1996 ------------------------ TO
(UNAUDITED) 1995 1994 OCT. 31,1993
------------- ----------- ----------- ------------
<S> <C> <C> <C> <C>
Net asset value, beginning of year $11.88 $11.08 $22.09 $13.82(a)
INCOME FROM INVESTMENT OPERATIONS
Net investment income .70 1.51(b) 1.32 1.54
Net realized and unrealized gain (loss)
on investments 1.32 .71 (5.66) 8.19
Net increase (decrease) in net asset
value from operations 2.02 2.22 (4.34) 9.73
LESS: DIVIDENDS AND DISTRIBUTIONS
Dividends from net investment income (.70) (1.42) (1.39) (1.46)
Distributions from net realized gains -0- -0- (4.96) -0-
Distributions in excess of net realized
gains -0- -0- (.09) -0-
Tax return of capital distribution -0- -0- (.23) -0-
Total distributions (.70) (1.42) (6.67) (1.46)
Net asset value, end of period $13.20 $11.88 $11.08 $22.09
Market value, end of period $12.875 $11.75 $13.00 $20.375
TOTAL RETURN
Total investment return based on: (c)
Market value 15.64% 2.78% (7.52)% 59.14%
Net asset value 17.26% 21.92% (27.29)% 72.53%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $114,212 $102,757 $93,528 $164,622
Ratio of expenses to average net assets 1.52%(d) 1.55% 1.43% 1.44%(d)
Ratio of net investment income to average
net assets 10.88%(d) 14.12% 9.08% 9.79%(d)
Portfolio turnover rate 134% 441% 395% 417%
</TABLE>
* Commencement of operations.
(A) Net of offering costs of $.13.
(B) Based on average shares outstanding.
(C) 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
the 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 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 periods. Conversely, total investment return based on net asset
value will be lower than total investment return based on market value in
periods 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 periods. Total investment return calculated for a period of less than one
year is not annualized.
(D) Annualized.
11
ALLIANCE WORLD DOLLAR GOVERNMENT FUND, INC.
_______________________________________________________________________________
SUPPLEMENTAL PROXY INFORMATION
The Annual Meeting of Shareholders of The Alliance World Dollar Government
Fund, Inc. was held on Tuesday, January 23, 1996. 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: Class Two Directors
(term expires in 1999)
John H. Dobkin 7,858,687 265,547
William H. Foulk, Jr. 7,895,801 228,433
Dr. James M. Hester 7,893,717 230,517
SHARES SHARES VOTED SHARES 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, 1996: 7,961,961 47,361 114,912
12
ALLIANCE WORLD DOLLAR GOVERNMENT FUND, INC.
_______________________________________________________________________________
BOARD OF DIRECTORS
JOHN D. CARIFA, CHAIRMAN
RUTH BLOCK (1)
DAVID H. DIEVLER (1)
JOHN H. DOBKIN (1)
WILLIAM H. FOULK, JR. (1)
DR. JAMES M. HESTER (1)
CLIFFORD L. MICHEL (1)
ROBERT C. WHITE (1)
OFFICERS
WAYNE D. LYSKI, PRESIDENT
KATHLEEN A. CORBET, SENIOR VICE PRESIDENT
PAUL J. DENOON, VICE PRESIDENT
VICKI L. FULLER, VICE PRESIDENT
EDMUND P. BERGAN, JR., SECRETARY
MARK D. GERSTEN, TREASURER & CHIEF FINANCIAL OFFICER
JOSEPH J. MANTINEO, CONTROLLER
ADMINISTRATOR
ALLIANCE CAPITAL MANAGEMENT, L.P.
1345 Avenue of the Americas
New York, NY 10105
CUSTODIAN
THE BANK OF NEW YORK
48 Wall Street
New York, NY 10286
DIVIDEND PAYING AGENT, TRANSFER AGENT AND REGISTRAR
FIRST DATA INVESTOR SERVICES GROUP, INC.
(FORMERLY THE SHAREHOLDER SERVICES GROUP, INC.)
53 State Street
Boston, MA 02109
INDEPENDENT AUDITORS
ERNST & YOUNG LLP
787 Seventh Avenue
New York, NY 10019
(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 World Dollar Government Fund, Inc. for their
information. The financial information included herein is taken from the
records of the Fund. 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.
13
ALLIANCE WORLD DOLLAR GOVERNMENT FUND, INC.
Summary of General Information
THE FUND
Alliance World Dollar Government Fund, Inc. is a closed-end management
investment company which seeks high current income from investment in debt
obligations of countries with emerging economies whose recent interest rates
are higher than those of the United States.
SHAREHOLDER INFORMATION
Daily market prices for the Fund's shares are published in the New York Stock
Exchange Composite Transactions Section of newspapers each day, under the
designation 'Alliance Wrld'. The Fund's NYSE trading symbol is 'AWG'. 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 'Closed-End
Funds.' Additional information about the Fund is available by calling
1-800-247-4154.
DIVIDEND REINVESTMENT PLAN
A Dividend Reinvestment Plan provides automatic reinvestment of dividends and
capital gains distributions in additional Fund shares. For a copy of the Plan
Brochure, please write to the Plan Agent, First Data Investor Services Group,
Inc., P.O. Box 1376, Boston, MA 02104.
ALLIANCE WORLD DOLLAR GOVERNMENT FUND, INC.
1345 Avenue of the Americas
New York, New York 10105
ALLIANCECAPITAL
INVESTING WITHOUT THE MYSTERY.
R THESE REGISTERED SERVICE MARKS USED UNDER LICENSE FROM THE OWNER, ALLIANCE
CAPITAL MANAGEMENT L.P.
WDGSR
