<PAGE>
LETTER TO SHAREHOLDERS THE GLOBAL PRIVATIZATION FUND, INC.
June 28, 1995
Dear Shareholder:
At this point in time, it appears that the impact of the emerging markets crisis
late last year and during the first quarter of this year probably means slower
growth only in Latin America. Europe is now heading toward its second year of
recovery and southeast Asian economies continue to boom. Prospects for Japan are
unclear, but the recent cut in German interest rates, which enhances the outlook
for growth in Europe, may lead to a Japanese interest rate cut unless the
weakness of the U.S. dollar reverses. In this lower rate environment, and with
no signs of any substantial upturn of inflation, our outlook for equities, and
for privatizations in particular, continues to be favorable. Additionally, we
believe the financial crisis in Mexican markets last year is unlikely to result
in a decline in the pace of privatization in the developing markets area.
PRIVATIZATION OUTLOOK
The volume of privatizations has been a bit subdued so far this year, primarily
because of the uncertainty in emerging markets. However, we expect that for the
year as a whole, new initial public offerings should be somewhere close to the
1994 level of $57 billion. This will be partly attributable to the expected
significant increase in Latin American countries as they respond to
supranational lenders' pressure to revive privatization programs. We also look
forward to the early 1996 privatization of the giant Deutsche Telecom in
Germany.
As we mentioned in our last letter, Europe has continued to dominate
privatization IPOs over the past several months. Recent participations for The
Global Privatization Fund ("GPF") include Seita, the national tobacco company in
France, and National Power and Powergen in the U.K. The Fund also participated
in the privatization of B.W.I.A. Airways, the Trinidad and Tobago airline.
PORTFOLIO COMPOSITION
GPF's investment portfolio remains broadly exposed in terms of country, industry
and security. As of April 30, 1995, about 92% of total net assets were invested
among more than 200 different equity issues, 47 countries and 47 different
industry sub-sets, which reflects our bullish outlook on world markets. Top
areas of investment are electric and gas utilities (14%), telephone utilities
(11%), mining and metals (8%) and financial services (6%). GPF is also globally
well diversified; the top four countries in which the Fund is invested are
France (7.2%), the United Kingdom (6.4%), Brazil (5.3%), and Finland (5%).
Portfolio holdings are represented approximately 67% by developed countries and
33% by developing countries.
INVESTMENT RESULTS
For the six months ended April 30, 1995, The Global Privatization Fund's total
return was -8.84% on a net asset value basis, and for the twelve-month period,
the total return was +0.29%. GPF's market price ended the period at $12.125 per
share, representing an 11.56% discount to the $13.71 net asset value.
BOARD OF DIRECTORS TAKES ACTION THAT WILL ELIMINATE DISCOUNT
We realize that many shareholders of GPF have been concerned about the
persistent market discount on the Fund's common stock. We are pleased,
therefore, to discuss an important decision by GPF's Board of Directors, which
was announced following the Board's June 27, 1995, special meeting.
At Alliance's recommendation, the Board took action that, subject to shareholder
approval, would eliminate the Fund's market discount and provide liquidity to
its shareholders at net asset value. The GPF Board approved the acquisition of
GPF's assets by Alliance Worldwide Privatization Fund ("Worldwide"), an open-end
investment company managed by Alliance with investment policies similar to those
of GPF.
The Board's action is subject to approval by GPF shareholders, and in August or
early September you will be receiving proxy materials containing complete
information about the proposal and giving you the opportunity to vote on the
transaction. If approved by shareholders at a special meeting to be held
approximately ten weeks after you receive proxy materials, the acquisition would
occur about two weeks after the meeting and is expected to occur by year end,
and GPF shareholders would then become shareholders of Worldwide. In exchange
for their shares, GPF shareholders would receive, in a tax-free transaction, and
without any front-end sales
1
<PAGE>
THE GLOBAL PRIVATIZATION FUND, INC.
charges, Worldwide Class A shares of equivalent net asset value.
Prior to the recent Board action, GPF's policy would have required it to conduct
an annual tender offer in the third quarter of each year, beginning in 1995, if
during the second quarter the Fund's market discount averaged over 5% and its
market price (including distributions made during the past year) averaged not
more than the initial public offering price of $15.00.
The conditions precedent to a 1995 tender offer are certain to occur. The GPF
Board of Directors considered such a tender offer as well as Alliance's
recommendation in favor of the acquisition, and concluded that under current
conditions the acquisition would best serve the interests of the Fund and its
shareholders. In making the recommendation, Alliance wanted to provide
shareholders with liquidity at net asset value consistent with the purposes of
the tender offer policy. We also wanted to maintain per share values for
long-term investors by reducing the market impact of portfolio liquidations. The
acquisition will provide this liquidity to GPF shareholders and allow them to
make investment decisions at times of their own choosing, without affecting the
interests of other shareholders.
In order to moderate the impact on Worldwide of large redemption requests, the
proposal approved by the Board also provides that redemptions or exchanges made
on or before December 31, 1996, of Worldwide shares received in the acquisition
will be subject to a 2% redemption fee. All such fees will be payable to
Worldwide.
Since the acquisition, if approved by shareholders, is expected to be completed
during the fourth quarter of 1995, GPF's Board decided not to proceed with a
tender offer during the third quarter of this year.
Thank you for your continued interest and investment in The Global Privatization
Fund. We look forward to updating you on its investment progress in the coming
months and to providing you with further communication regarding the Board's
pending proposal and subsequent shareholder vote.
Sincerely,
[LOGO]
John D. Carifa
Chairman and President
[LOGO]
Mark H. Breedon
Senior Vice President
2
<PAGE>
TEN LARGEST HOLDINGS*
APRIL 30, 1995 (UNAUDITED) THE GLOBAL PRIVATIZATION FUND, INC.
<TABLE>
<CAPTION>
COMPANY COUNTRY U.S. $ VALUE % OF NET ASSETS
<S> <C> <C> <C> <C>
East Japan Railway Co. Japan $23,918,139 2.3%
Valmet Corporation Finland 17,566,315 1.7
Pharmacia (Series A & B) Sweden 17,275,178 1.7
Seita France 16,635,148 1.6
VA Technologie AG Austria 16,218,915 1.6
Deutsche Lufthansa AG Germany 15,398,795 1.5
K.P.N. Netherlands 15,334,596 1.5
RJB Mining Plc. United Kingdom 13,473,044 1.3
Viag AG Germany 12,941,452 1.3
I.N.A. Italy 12,747,130 1.2
1$61,508,712 15.7%
</TABLE>
INDUSTRY DIVERSIFICATION
APRIL 30, 1995 (UNAUDITED)
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S. $ VALUE % OF NET ASSETS
<S> <C> <C> <C>
Aerospace & Defense $ 3,056,386 0.3%
Banking 85,913,335 8.3
Basic Industries 70,500,856 6.9
Capital Goods 16,880,907 1.6
Consumer Manufacturing 36,072,911 3.5
Consumer Services 74,377,022 7.2
Consumer Staples 23,026,014 2.2
Electric & Gas 143,046,353 13.9
Energy 68,379,942 6.6
Finance 65,243,788 6.3
Healthcare 37,636,604 3.7
Mining & Metals 83,130,637 8.1
Multi-Industries 46,829,500 4.6
Technology 39,502,734 3.8
Telecommunications 114,773,644 11.1
Transportation 28,735,497 2.8
Utilities 13,023,329 1.3
Total Investments* 950,129,459 92.2
Cash and receivables, net of liabilities 80,709,338 7.8
Net Assets $1,030,838,797 100.0%
</TABLE>
* Excludes short-term obligations.
3
<PAGE>
PORTFOLIO OF INVESTMENTS
APRIL 30, 1995 (UNAUDITED) THE GLOBAL PRIVATIZATION FUND, INC.
<TABLE>
<CAPTION>
COMPANY SHARES U.S.$ VALUE
<S> <C> <C>
- - ---------------------------------------------------------------
</TABLE>
COMMON STOCKS--88.4%
ARGENTINA--2.8%
<TABLE>
<S> <C> <C>
Central Costanera, S.A....... 1,415,000 $ 4,103,295
Central Puerto, S.A. Cl. A... 459,003 1,790,022
Compania Naviera Perez
Companc, S.A. CIA Cl. B...... 1,522,200 6,210,266
Dycasa "B"................... 462,614 1,570,033
Metrogas, S.A. ADR*.......... 218,500 2,157,688
Telecom Argentina Stet
France....................... 11,700 511,875
Telecom de Argentina, S.A.
Cl. B........................ 1,151,000 4,995,090
Telefonica de Argentina, S.A.
Cl. B ADR.................... 215,400 5,061,900
Transportadora Gas del Sur,
S.A. Cl. B*.................. 930,000 1,785,511
YPF, S.A. Cl. D ADR.......... 11,500 232,875
--------------
28,418,555
--------------
</TABLE>
AUSTRALIA--2.8%
<TABLE>
<S> <C> <C>
Commonwealth Bank of
Australia.................... 832,286 5,696,468
Commonwealth Serum Lab,
Ltd.*........................ 5,800,000 11,769,977
Tab Corporation Holdings,
Ltd.......................... 4,945,000 11,329,748
--------------
28,796,193
--------------
</TABLE>
AUSTRIA--4.6%
<TABLE>
<S> <C> <C>
Austria Mikro Systeme
International AG............. 126,120 12,518,477
Boehler Uddeholdm Bearer..... 59,500 $ 3,550,849
Burgenland Holding AG........ 85,000 3,163,864
OMV AG*...................... 100,000 10,336,005
Primagaz Hungaria............ 80,000 1,786,767
VA Technologie AG*........... 147,000 16,218,915
--------------
47,574,877
--------------
</TABLE>
BELGIUM--0.6%
<TABLE>
<S> <C> <C>
Arbed, S.A.*................. 40,000 6,028,646
--------------
</TABLE>
BOTSWANA--0.4%
<TABLE>
<S> <C> <C>
Sechaba Investment Trust
Ltd.......................... 4,752,000 3,913,273
--------------
</TABLE>
BRAZIL--3.4%
<TABLE>
<S> <C> <C>
Celesc PN.................... 2,500,000 1,726,027
Centrais Eletricas
Brasileiras, S.A.--
ELECTROBRAS.................. 14,672,332 4,051,976
Cesp--Companhia Energetica de
Sao Paulo ADR (a)............ 222,600 2,615,550
Companhia Acos Especiais
Itabira--Acesita............. 117,972,000 800,270
Companhia Paulista de Forca e
Luz--CPFL*................... 43,800,000 2,112,000
Companhia Siderurgica de
Tubarao-CST ADR (a).......... 45,400 1,339,300
Companhia Siderugica Nacional
CSN.......................... 173,000,000 4,398,466
Companhia Vale de Rio Doce
PN........................... 16,500,000 2,703,107
</TABLE>
4
<PAGE>
THE GLOBAL PRIVATIZATION FUND, INC.
<TABLE>
<CAPTION>
COMPANY SHARES U.S.$ VALUE
- - ---------------------------------------------------------------
<S> <C> <C>
Emaq Verolme Esta PN*........ 7,500,000 $ 34,521
Light Servicos de
Eletricidad, S.A. ON......... 26,750,000 10,260,274
Telebras Spon ADR............ 45,000 1,648,125
Telecomunicacoes Brasileiras,
S.A. ON--Telebras............ 30,000,000 897,863
Telecomunicacoes de Sao
Paulo, S.A. ON--Telep........ 18,450,000 2,426,301
--------------
35,013,780
--------------
</TABLE>
CANADA--1.5%
<TABLE>
<S> <C> <C>
Alberta Energy Co., Ltd...... 366,500 5,661,273
Nova Scotia Power, Inc....... 350,000 2,992,828
Petro Canada................. 732,900 6,940,851
--------------
15,594,952
--------------
</TABLE>
CHILE--0.2%
<TABLE>
<S> <C> <C>
Chilgener, S.A. ADS.......... 33,400 935,200
Chilquinta, S.A. ADS (a)..... 70,000 971,250
--------------
1,906,450
--------------
</TABLE>
CZECH REPUBLIC--0.6%
<TABLE>
<S> <C> <C>
Ceske Energeticke Zavody GDS
(a)*......................... 42,000 1,734,600
Elektrarny Opatovice......... 10,285 1,104,309
Prague Brewery A.S........... 9,000 396,982
Tabak A.S.*.................. 4,325 568,969
Vodni Stavby Praha A.S.*..... 60,000 2,792,803
--------------
6,597,663
--------------
</TABLE>
DENMARK--1.5%
<TABLE>
<S> <C> <C>
Copenhagen Airport........... 96,000 $ 6,173,046
Tele Danmark, A/S Series B... 187,600 9,788,393
--------------
15,961,439
--------------
</TABLE>
ESTONIA--0.2%
<TABLE>
<S> <C> <C>
Hansabank, Ltd. (b).......... 33,685 2,498,797
--------------
</TABLE>
FINLAND--4.9%
<TABLE>
<S> <C> <C>
Finnair OY................... 780,800 6,131,082
Kemira OY*................... 782,000 6,598,751
Outokumpu OY................. 142,550 2,546,095
Rautaruukki OY*.............. 912,500 7,272,174
Unitas Bank Ltd.............. 3,600,000 10,632,258
Valmet Corporation*.......... 775,000 17,566,315
--------------
50,746,675
--------------
</TABLE>
FRANCE--8.5%
<TABLE>
<S> <C> <C>
Allevard Industries.......... 28,000 2,325,988
Assurance Generale de
France....................... 310,000 10,237,839
Credit Local de France....... 50,000 4,255,103
Eramet....................... 81,600 5,658,219
Renault, S.A.*............... 323,000 11,139,515
Rhone Poulenc, S.A........... 243,000 5,912,745
Roussel-Uclaf................ 60,000 8,591,449
Seita........................ 546,750 16,635,148
Societe National Elf
Aquitaine.................... 121,866 9,720,073
Total Francais, S.A. Cl. B... 130,946 8,170,328
Ugine, S.A................... 75,000 5,301,107
--------------
87,947,514
--------------
</TABLE>
5
<PAGE>
PORTFOLIO OF INVESTMENTS (CONTINUED) THE GLOBAL PRIVATIZATION FUND, INC.
<TABLE>
<CAPTION>
COMPANY SHARES U.S.$ VALUE
<S> <C> <C>
- - ---------------------------------------------------------------
</TABLE>
GERMANY--4.0%
<TABLE>
<S> <C> <C>
Bankgesellschaft Berlin...... 15,000 $ 3,452,256
DEPFA Bank................... 6,500 3,306,158
Deutsche Lufthansa AG........ 116,250 15,398,795
I.V.G........................ 18,416 6,574,248
Viag AG...................... 35,000 12,941,452
--------------
41,672,909
--------------
</TABLE>
GHANA--0.9%
<TABLE>
<S> <C> <C>
Ashanti Goldfields Co. ADR
(a)*......................... 350,000 8,750,000
Ashanti Goldfields Co. GDS... 20,000 500,000
--------------
9,250,000
--------------
</TABLE>
GREECE--0.4%
<TABLE>
<S> <C> <C>
Commercial Bank of Greece.... 66,000 2,445,135
Hellenic Sugar............... 110,000 1,353,540
--------------
3,798,675
--------------
</TABLE>
HONG KONG--3.4%
<TABLE>
<S> <C> <C>
Beiren Printing Machinery,
Ltd.......................... 2,000,000 413,383
Champion Technology.......... 3,179,075 242,301
Citic Pacific, Ltd........... 3,316,000 8,181,837
Consolidated Electric
Power........................ 2,372,000 5,178,504
Harbin Power Equipment Co.,
Ltd.*........................ 2,000,000 536,106
Hopewell Holdings, Ltd....... 8,134,428 5,779,532
Hutchison Whampoa, Ltd....... 789,000 3,414,481
Yizheng Chemical Fibre
Co.*......................... 32,485,000 $ 10,819,629
--------------
34,565,773
--------------
</TABLE>
HUNGARY--1.1%
<TABLE>
<S> <C> <C>
Danubius Hotel and Spa....... 147,400 1,453,502
Interuropa Bank (b).......... 14,772 1,705,659
Magyar Olaj-es Gazipare
Reszvenytar.................. 33,000 3,226,296
Matav RT (b)*................ 20,000 2,697,008
Pannonplast Plastic
Industries................... 82,700 774,376
Primagaz Hungaria Co. ....... 11,338 253,230
Zalakeramia.................. 75,000 1,176,643
--------------
11,286,714
--------------
</TABLE>
INDONESIA--1.0%
<TABLE>
<S> <C> <C>
PT Indo Sat.................. 2,919,000 10,523,041
--------------
</TABLE>
IRELAND--0.8%
<TABLE>
<S> <C> <C>
Greencore Plc................ 470,000 3,344,983
Irish Life Plc............... 1,500,000 4,799,068
--------------
8,144,051
--------------
</TABLE>
ISRAEL--0.6%
<TABLE>
<S> <C> <C>
Bank Hapoalim................ 1,019,800 1,497,534
Bank Leumi................... 991,080 1,061,478
Bezeq--Israeli
Telecommunication Corp.,
Ltd.*........................ 930,000 1,716,480
Tadiran, Ltd.*............... 85,000 1,476,875
--------------
5,752,367
--------------
</TABLE>
ITALY--3.1%
<TABLE>
<S> <C> <C>
I.N.A........................ 9,481,000 12,747,130
Istituto Mobiliare Italiano
S.p.A........................ 1,600,000 9,751,732
</TABLE>
6
<PAGE>
THE GLOBAL PRIVATIZATION FUND, INC.
<TABLE>
<CAPTION>
COMPANY SHARES U.S.$ VALUE
- - ---------------------------------------------------------------
<S> <C> <C>
STET......................... 1,300,000 $ 3,696,758
Telecom Italia--
Di Risp...................... 3,000,000 6,246,534
--------------
32,442,154
--------------
</TABLE>
JAPAN--3.9%
<TABLE>
<S> <C> <C>
DDI Corporation.............. 879 7,739,425
East Japan Railway Co. ...... 4,600 23,918,139
Nippon Telegraph &
Telephone.................... 925 8,177,464
--------------
39,835,028
--------------
</TABLE>
JORDAN--0.3%
<TABLE>
<S> <C> <C>
Arab Potash Co. (b).......... 206,333 2,898,020
--------------
</TABLE>
KAZAKHSTAN--0.3%
<TABLE>
<S> <C> <C>
Bakyrchik Gold Plc.*......... 1,135,000 3,286,674
--------------
</TABLE>
MALAYSIA--1.5%
<TABLE>
<S> <C> <C>
Aokam Perdana Berhad......... 813,000 3,651,345
Ekran Berhad................. 813,000 2,467,125
Gamuda....................... 729,166 2,743,777
warrants
(expiring 1/17/00)........... 250,000 50,880
Telekom Malaysia............. 463,000 3,184,706
United Engineering........... 140,000 804,370
Westmont Berhad.............. 538,000 2,329,193
--------------
15,231,396
--------------
</TABLE>
MEXICO--1.9%
<TABLE>
<S> <C> <C>
Banpais, S.A. ADR*........... 74,000 69,375
Consorcio G Grupo Dina "A",
S.A. de C.V. ADR............. 100,000 375,000
Consorcio G Grupo Dina "L",
S.A. de C.V. ADR............. 35,500 $ 88,750
Empresas ICA Sociedad
Controladora, S.A. de C.V.
ADR.......................... 30,000 255,000
GBM Atlantico, S.A. ADS
(a).......................... 70,000 192,500
GFCRECE...................... 333,627 196,577
Grupo Financiero Banamex
Accival, S.A.
Series B................... 736,000 1,231,349
Series C................... 610,000 1,012,448
Grupo Financiero Bancomer,
S.A.
Series B................... 2,770,000 822,954
Series C................... 5,300,000 1,548,216
Grupo Financiero Bancrecer,
S.A.
Series B................... 2,500,000 1,232,365
Grupo Financiero Banorte,
S.A.
Series B................... 230,000 290,124
Series C................... 1,400,000 1,812,448
Grupo Financiero Probursa,
S.A.
Series B................... 2,486,000 371,353
Grupo Mexicano de Desarrollo,
S.A. de C.V. ADS............. 474,302 2,430,798
Grupo Profesional Planeacion
Y Proyectos, S.A.
Series B................... 120,000 697,095
Telefonos de Mexico,
S.A. de C.V.
Series L ADR............... 238,500 7,214,625
--------------
19,840,977
--------------
</TABLE>
7
<PAGE>
PORTFOLIO OF INVESTMENTS (CONTINUED) THE GLOBAL PRIVATIZATION FUND, INC.
<TABLE>
<CAPTION>
COMPANY SHARES U.S.$ VALUE
<S> <C> <C>
- - ---------------------------------------------------------------
</TABLE>
NETHERLANDS--4.6%
<TABLE>
<S> <C> <C>
DSM NV....................... 100,000 $ 8,406,842
European Vinyls Corp.
International NV*............ 258,000 11,335,129
KLM Royal Dutch Airlines
NV........................... 396,000 12,040,917
K.P.N........................ 440,000 15,334,596
--------------
47,117,484
--------------
</TABLE>
NEW ZEALAND--1.7%
<TABLE>
<S> <C> <C>
Air New Zealand, Ltd......... 1,170,000 3,932,078
Energy Direct Corp., Ltd..... 3,220,950 3,918,581
Infrastructure and Utilities
of New Zealand............... 787,445 529,281
Telecom Corporation of New
Zealand, Ltd................. 1,400,000 5,881,313
Trustpower, Ltd.............. 3,600,000 2,855,293
--------------
17,116,546
--------------
</TABLE>
NORWAY--1.2%
<TABLE>
<S> <C> <C>
Christiana Bank OG
Kreditkasse.................. 3,000,000 6,209,512
Den Norske Bank.............. 2,300,000 6,089,172
--------------
12,298,684
--------------
</TABLE>
PAKISTAN--1.2%
<TABLE>
<S> <C> <C>
Hub Power Co. GDS............ 511,000 6,581,680
Pakistan Telecom............. 5,521 595,159
Pakistan Telecom GDR......... 45,159 4,719,116
--------------
11,895,955
--------------
</TABLE>
PERU--2.0%
<TABLE>
<S> <C> <C>
Compania de Minas
Buenaventura................. 732,910 $ 4,181,524
Explosivos, S.A. Cl. C....... 330,000 1,765,099
Norte Cimentos Pacasmayo..... 431,188 1,518,335
Ontario--Quinta A.V.V. (b)... 2,000,000 2,000,000
Peru Telefonos Cl. B......... 6,573,734 11,017,268
--------------
20,482,226
--------------
</TABLE>
PHILIPPINES--1.3%
<TABLE>
<S> <C> <C>
First Philippine Holdings
Corp......................... 1,745,998 4,323,104
International Container
Terminal Services, Inc.*..... 2,193,000 1,220,672
Manila Electric Co. Cl. B.... 740,330 7,886,433
Philippine National Bank..... 31,159 305,011
--------------
13,735,220
--------------
</TABLE>
POLAND--1.3%
<TABLE>
<S> <C> <C>
Bank Przemyslowo Handlowy.... 88,000 3,455,424
Bank Rozwoju Eksportu........ 125,000 1,841,922
Bank Slaski.................. 11,725 764,851
Elektrim, S.A.*.............. 613,700 2,344,987
Polifarb Cieszyn............. 185,230 1,024,515
Polifarb Wroclaw............. 395,200 1,134,649
Vistula, S.A.*............... 150,000 867,656
Wielkpolski Bank Kredytowy... 540,000 1,550,381
--------------
12,984,385
--------------
</TABLE>
8
<PAGE>
THE GLOBAL PRIVATIZATION FUND, INC.
<TABLE>
<CAPTION>
COMPANY SHARES U.S.$ VALUE
<S> <C> <C>
- - ---------------------------------------------------------------
</TABLE>
PORTUGAL--0.6%
<TABLE>
<S> <C> <C>
Mundial Confianca............ 185,000 $ 1,448,806
Mundial Confianca rights
(expiring 5/17/95)........... 185,000 796,213
Televisao Independente (b)... 616,000 3,922,229
--------------
6,167,248
--------------
</TABLE>
ROMANIA--0.1%
<TABLE>
<S> <C> <C>
Societatea (b)............... 25,430 479,385
--------------
</TABLE>
RUSSIA--0.2%
<TABLE>
<S> <C> <C>
Sun Brewing GDR (a).......... 240,000 2,280,000
--------------
</TABLE>
SINGAPORE--1.6%
<TABLE>
<S> <C> <C>
Development Bank of
Singapore, Ltd............... 793,000 8,479,153
Keppel Corp.................. 573,000 4,646,502
Singapore Airlines, Ltd...... 340,000 3,269,465
--------------
16,395,120
--------------
</TABLE>
SLOVAKIA--0.0%
<TABLE>
<S> <C> <C>
Nafta, S.A................... 3,334 278,824
--------------
</TABLE>
SOUTH AFRICA--0.5%
<TABLE>
<S> <C> <C>
Iscor........................ 4,250,680 5,274,073
--------------
</TABLE>
SOUTH KOREA--1.0%
<TABLE>
<S> <C> <C>
Korean Air*.................. 28,730 987,376
Korean Mobile Telecom........ 13,000 9,451,197
--------------
10,438,573
--------------
</TABLE>
SPAIN--2.3%
<TABLE>
<S> <C> <C>
Argentaria Banacaria de
Espana....................... 150,000 4,848,544
Endesa....................... 187,000 $ 8,838,969
Repsol, S.A.................. 324,100 10,318,156
--------------
24,005,669
--------------
</TABLE>
SWEDEN--3.5%
<TABLE>
<S> <C> <C>
Assi Doman A.B.*............. 420,000 10,047,713
Celsius Industries Cl. B..... 195,000 3,056,386
Pharmacia
Series A................... 585,000 11,059,290
Series B................... 330,000 6,215,888
Stadshypotek................. 432,542 5,946,987
--------------
36,326,264
--------------
</TABLE>
THAILAND--1.3%
<TABLE>
<S> <C> <C>
Electricity Generating Public
of Thailand.................. 480,000 1,463,712
Industrial Finance
Corporation of Thailand*..... 5,309,800 11,334,194
Thai Airways International,
Ltd.......................... 250,000 574,304
--------------
13,372,210
--------------
</TABLE>
TURKEY--1.9%
<TABLE>
<S> <C> <C>
Efes Sinai Yatirum Ve Ti
(b)*......................... 13,438,261 726,392
Eregli Demir Ve Celic
Fabrikalari T.A.S*........... 37,375,000 6,500,000
Petkim....................... 1,654,000 1,224,465
Tupras Turklye Petrol
Rafinerileri A.S.*........... 6,000,000 1,353,702
Turk Hava Yollari A.O.*...... 17,681,000 3,615,152
</TABLE>
9
<PAGE>
PORTFOLIO OF INVESTMENTS (CONTINUED) THE GLOBAL PRIVATIZATION FUND, INC.
<TABLE>
<CAPTION>
COMPANY SHARES U.S.$ VALUE
- - ---------------------------------------------------------------
<S> <C> <C>
Turk Otomobil Fabrikas ADR... 746,000 $ 3,730,000
Usas Cl. B................... 316,900 2,643,937
--------------
19,793,648
--------------
</TABLE>
UNITED KINGDOM--6.6%
<TABLE>
<S> <C> <C>
British Gas Plc.............. 1,900,000 9,200,436
East Midlands Electric....... 184,800 1,959,186
London Electricity........... 260,000 2,672,776
National Express Group Plc... 168,000 1,005,404
National Power Plc........... 600,000 4,372,580
National Power Plc.
(partially paid)............. 105,000 304,054
Northern Ireland Electricity
Plc.......................... 1,410,000 7,871,126
Northwest Water.............. 475,000 4,332,763
Norweb Plc................... 280,000 2,941,437
Powergen Plc. (partially
paid)........................ 84,000 259,459
RJB Mining Plc............... 1,965,929 13,473,044
Scottish Hydro-Electric...... 700,000 3,626,120
Scottish Power Corp.......... 675,000 3,670,361
Southern Water Plc........... 375,000 3,553,324
South Western Electricity.... 250,000 2,674,545
Stagecoach Holdings Plc...... 525,000 1,672,295
Wessex Water Plc............. 1,005,022 4,607,961
--------------
68,196,871
--------------
</TABLE>
UNITED STATES--0.3%
<TABLE>
<S> <C> <C>
BWIA International Airways
(b).......................... 2,727,272 $ 2,999,999
--------------
Total Common Stocks
(cost $916,192,688)........... 911,164,977
--------------
</TABLE>
PREFERRED STOCKS--3.6%
BRAZIL--2.5%
<TABLE>
<S> <C> <C>
Bardella, S.A. pfd........... 6,000 1,236,164
Centrais Eletricas
Brasileiras - Electribras
ADR.......................... 90,000 1,220,625
Centrais Eletricas de Goias
pfd.......................... 145,000,000 5,720,548
Cesp - Companhia Energetica
de Sao Paulo pfd.*........... 47,887,140 1,863,007
Companhia Acos Especiais
Itabira - Acesita pfd........ 122,040,000 1,043,191
Companhia Siderurgica
Paulista..................... 129,000 238,915
Fosfertil Fertiliz pfd....... 400,000,000 2,077,808
Marcopolo, S.A. Cl. B. pfd... 2,700,000 318,082
Metalurgica Gerdau, S.A...... 20,000,000 1,008,219
Petroleo Brasileiro, S.A. -
Petrobras pfd................ 6,666,666 621,005
Petroleo Brasileiro, S.A -
Petrobras Distribudor........ 19,800,000 716,055
</TABLE>
10
<PAGE>
THE GLOBAL PRIVATIZATION FUND, INC.
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
COMPANY SHARES U.S.$ VALUE COMPANY (000) U.S.$ VALUE
<S> <C> <C> <C> <C> <C>
- - --------------------------------------------------------------------------------------------------------------------------
Salgema pfd "B".... 190,612,500 $ 1,410,010
Telecomunicacoes de
Sao Paulo, S.A. -
Telesp pfd......... 15,863,355 1,999,391
Telecomunicacoes do
Parana, S.A. -
TELEPAR pfd.*...... 1,000,000 284,932
Usinas Siderurgicas
de Minas Gerais,
S.A. PN -
Usiminas*.......... 2,350,000,000 2,858,630
ADR (a)........... 261,200 3,134,400
--------------
25,750,982
--------------
</TABLE>
RUSSIA--1.1%
<TABLE>
<S> <C> <C>
RNGS Holdings,
Ltd., 8.00%
redeemable pfd.
(b)................ 34,300 10,804,500
--------------
Total Preferred
Stocks
(cost
$36,632,353)......... 36,555,482
--------------
</TABLE>
CONVERTIBLE BONDS--0.2%
<TABLE>
<S> <C> <C>
Banco de Columbia
5.20%, 2/01/99..... US$ 1,100 $ 742,500
International
Financial Holdings,
Inc. 6.50%, 8/01/99
(a)................ 1,650 1,666,500
--------------
(cost
$2,783,000)........ 2,409,000
--------------
</TABLE>
TIME DEPOSITS--7.6%
<TABLE>
<S> <C> <C>
Mitsubishi Bank
5.96875%, 5/08/95.. 39,200 39,200,000
Sumitomo Bank
5.96875%, 5/08/95.. 39,200 39,200,000
--------------
Total Time Deposits
(cost
$78,400,000)......... 78,400,000
--------------
</TABLE>
TOTAL INVESTMENTS--99.8%
<TABLE>
<S> <C> <C>
(cost
$1,034,008,041).... $1,028,529,459
Other assets less
liabilities--0.2%... 2,309,338
--------------
NET ASSETS--100%..... $1,030,838,797
--------------
--------------
</TABLE>
- - --------------------------------------------------------------------------------
* Non-income producing securities.
(a) Exempt from registration under Rule 144A of the Securities Act of 1933.
These securities may be resold in transactions exempt from registration,
normally to qualified institutional buyers. At April 30, 1995, these
securities amounted to $22,684,100 or 2.20% of net assets.
(b) Illiquid security, valued at fair value. (See notes A & E).
Glossary of Terms:
ADR - American Depository Receipt.
ADS - American Depositary Security.
GDR - Global Depositary Receipt.
GDS - Global Depositary Security.
See notes to financial statements.
11
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1995 (UNAUDITED) THE GLOBAL PRIVATIZATION FUND, INC.
<TABLE>
<S> <C>
ASSETS
Investments in securities, at value (cost $1,034,008,041).............................. $1,028,529,459
Cash, at value (cost $2,396,474)....................................................... 2,386,209
Receivable for investment securities sold.............................................. 109,108,176
Dividends and interest receivable...................................................... 3,069,557
Net unrealized appreciation of forward exchange currency contract...................... 237,810
Deferred organization expenses and other assets........................................ 89,688
--------------
Total assets........................................................................... 1,143,420,899
--------------
LIABILITIES
Payable for investment securities purchased............................................ 110,941,672
Advisory fee payable................................................................... 1,044,475
Administrative fee payable............................................................. 125,337
Accrued expenses....................................................................... 470,618
--------------
Total liabilities...................................................................... 112,582,102
--------------
NET ASSETS (equivalent to $13.71 per share, based on 75,207,200 shares outstanding)...... $1,030,838,797
--------------
--------------
COMPOSITION OF NET ASSETS
Capital stock, at par.................................................................. $ 752,072
Additional paid-in capital............................................................. 1,046,014,036
Distributions in excess of net investment income....................................... (3,445,881)
Accumulated net realized loss.......................................................... (7,353,003)
Net unrealized depreciation of investments and foreign currency denominated assets and
liabilities............................................................................ (5,128,427)
--------------
$1,030,838,797
--------------
--------------
NET ASSET VALUE PER SHARE................................................................ $13.71
</TABLE>
- - --------------------------------------------------------------------------------
See notes to financial statements.
12
<PAGE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 1995 (UNAUDITED) THE GLOBAL PRIVATIZATION FUND, INC.
<TABLE>
<S> <C> <C>
INVESTMENT INCOME
Dividends (net of foreign withholding taxes of $722,716).................. $7,028,459
Interest.................................................................. 1,864,517
---------
$ 8,892,976
EXPENSES
Advisory fee.............................................................. 6,408,589
Administrative fee........................................................ 769,030
Custodian................................................................. 617,570
Shareholder servicing..................................................... 512,686
Transfer agency........................................................... 94,614
Audit and legal........................................................... 54,807
Reports and notices to shareholders....................................... 40,115
Directors' fees........................................................... 10,695
Amortization of organization expenses..................................... 4,905
Miscellaneous............................................................. 105,304
---------
Total expenses............................................................ 8,618,315
------------
Net investment income..................................................... 274,661
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY
Net realized loss on investment transactions.............................. (4,118,732)
Net realized loss on foreign currency..................................... (2,875,369)
Net change in unrealized appreciation of:
Investments............................................................. (97,205,840)
Foreign currency denominated assets and liabilities..................... 263,687
------------
Net loss on investments and foreign currency.............................. (103,936,254)
------------
NET DECREASE IN NET ASSETS FROM OPERATIONS.................................. $(103,661,593)
------------
------------
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED FOR THE PERIOD
APRIL30, 1995 MARCH7, 1994* TO
(UNAUDITED) OCTOBER31, 1994
------------------- ------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income...................................................... $ 274,661 $ 5,724,296
Net realized gain (loss) on investments and foreign currency............... (6,994,101) 3,169,502
Net change in unrealized appreciation of investments and foreign currency
denominated assets and liabilities......................................... (96,942,153) 91,813,726
------------------- ------------------
Net increase (decrease) in net assets from operations...................... (103,661,593) 100,707,524
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income....................................... (6,580,630) -0-
Distributions from net realized gains...................................... (6,392,612) -0-
COMMON STOCK TRANSACTIONS
Proceeds from sale of shares of common stock............................... -0- 1,049,040,000
Offering costs charged to additional paid-in-capital....................... -0- (2,374,332)
------------------- ------------------
Total increase (decrease).................................................. (116,634,835) 1,147,373,192
NET ASSETS
Beginning of period........................................................ 1,147,473,632 100,440
------------------- ------------------
End of period (including undistributed net investment income of $2,860,088
at October31, 1994......................................................... $ 1,030,838,797 $ 1,147,473,632
------------------- ------------------
------------------- ------------------
</TABLE>
- - --------------------------------------------------------------------------------
* Commencement of operations.
See notes to financial statements.
13
<PAGE>
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1995 (UNAUDITED) THE GLOBAL PRIVATIZATION FUND, INC.
NOTE A: SIGNIFICANT ACCOUNTING POLICIES
The Global Privatization Fund, Inc., (the "Fund") was incorporated under the
laws of the State of Maryland on October 4, 1993 and is registered under the
Investment Company Act of 1940 as a non-diversified, closed-end management
investment company. On February 9, 1994, the Fund sold 7,200 shares of common
stock for $100,440 to Alliance Capital Management, L.P. (the "Adviser") and had
an initial public offering of its shares in March, 1994. The Fund commenced
operations on March 7, 1994. The following is a summary of significant
accounting policies of the Fund.
1. SECURITY VALUATION
Portfolio securities traded on a 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 securities
whose primary market is believed to be over-the-counter, are valued at the mean
between the most recent quoted bid and asked prices provided by the principal
market makers. Securities for which market quotations are not readily available
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 market value, unless this method does not represent
fair value.
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 into U.S. dollars at
the rates of exchange prevailing when such securities were acquired or sold.
Income and expenses are translated into U.S. dollars at rates of exchange
prevailing when earned or accrued.
Net realized loss on foreign currency of $2,875,369 represent net foreign
exchange gains and losses from holding of foreign currencies, currency gains and
losses realized between the trade and settlement dates on foreign security
transactions, closed forward exchange currency contracts and the difference
between amounts of dividends and foreign withholding taxes recorded on the
Fund's books and the U.S. dollar equivalent of the amounts actually received or
paid.
Net 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 depreciation of investments and foreign currency denominated assets
and liabilities.
3. ORGANIZATION EXPENSES
Organization expenses of approximately $50,000 have been deferred and are being
amortized on a straight-line basis through March 1999.
4. 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. Withholding taxes on foreign interest and dividends have been provided
for in accordance with the applicable tax requirements.
5. INVESTMENT INCOME AND SECURITY TRANSACTIONS
Dividend income is recorded on the ex-dividend date or as soon as the Fund is
informed of the dividend. Interest income is accrued daily. Security
transactions are accounted for on the date the securities are purchased or sold.
Security gains and losses are determined on the identified cost basis.
14
<PAGE>
THE GLOBAL PRIVATIZATION FUND, INC.
6. DIVIDENDS AND DISTRIBUTIONS
Dividends and distributions to shareholders are recorded on the ex-dividend
date. Income dividends and capital gain distributions are determined in
accordance with income tax regulations, which may differ from generally accepted
accounting principles.
- - --------------------------------------------------------------------------------
NOTE B: ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Under the terms of an Investment Advisory Agreement, the Fund pays its Adviser a
monthly fee equal to the annualized rate of 1.25% of the Fund's average weekly
net assets.
Under the terms of an Administrative Agreement, the Fund pays its Administrator,
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 has engaged Mitchell Hutchins Asset Management Inc. (the
"Sub-Administrator") to act as Sub-Administrator and will delegate certain of
its administrative responsibilities to the Sub-Administrator.
Pursuant to the acquisition of Kidder, Peabody Group Inc. by Paine Webber Group,
Inc., PaineWebber Inc. ("PaineWebber") assumed the responsibilities as the
Fund's Shareholder Servicing Agent. Under the terms of a Shareholder Servicing
Agreement, the Fund pays PaineWebber a monthly fee equal to the annualized rate
of .10 of 1% of the Fund's average weekly net assets. The Fund pays the same fee
for shareholder servicing to PaineWebber as was previously paid to Kidder,
Peabody & Co. Inc. ("Kidder Peabody").
Brokerage commissions paid for the period ended April 30, 1995 amounted to
$1,186,736, none of which was paid to affiliated brokers.
- - --------------------------------------------------------------------------------
NOTE C: INVESTMENT TRANSACTIONS
Purchases and sales of investment securities (excluding short-term investments)
aggregated $215,272,864 and $244,438,129, respectively, for the six months ended
April 30, 1995.
At April 30, 1995, the cost of securities for federal income tax purposes was
$1,034,008,041. Accordingly, gross unrealized appreciation of investments was
$98,875,915 and gross unrealized depreciation of investments was $104,354,497
resulting in net unrealized depreciation of $5,478,582 (excluding foreign
currency).
1. FORWARD EXCHANGE CURRENCY CONTRACTS
The Fund enters into forward exchange currency contracts in order to hedge its
exposure to changes in foreign currency exchange rates on its foreign portfolio
holdings and to hedge certain firm purchase and sale commitments denominated in
foreign currencies. A forward exchange currency contract is a commitment to
purchase or sell a foreign currency at a future date at a negotiated forward
rate. The gain or loss arising from the difference between the original contract
and the closing of such contract is included in net realized gain or loss on
foreign currency.
Fluctuations in the value of forward exchange currency contracts are recorded
for financial reporting purposes as unrealized gains or losses by the Fund.
The Fund's custodian will place and maintain cash not available for investment
or U.S. Government securities in a separate account of the Fund having a value
equal to the aggregate amount of the Fund's commitments under forward exchange
currency contracts entered into with respect to position hedges.
Risks may arise from the potential inability of a counterparty to meet the terms
of a contract and from unanticipated movements in the value of foreign
currencies relative to the U.S. dollar.
15
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED) THE GLOBAL PRIVATIZATION FUND, INC.
At April 30, 1995, the Fund had an outstanding forward exchange currency
contract to sell 17,493,104 Australian dollars maturing on May 18, 1995, with a
value at origination of $12,724,580. The market value of the forward exchange
currency contract at April 30, 1995 was $12,962,390, resulting in unrealized
appreciation of $237,810.
- - --------------------------------------------------------------------------------
NOTE D: CAPITAL STOCK
There are 300,000,000 shares of $.01 par value common stock authorized. Of the
75,207,200 shares outstanding at April 30, 1995, the Adviser owned 7,200 shares.
In addition to the shares issued to the Adviser, the initial public offering of
the Fund's shares resulted in the issuance of 70,000,000 shares of the Fund's
common stock, for net proceeds of $976,500,000, after deducting underwriting
discounts and commissions. Offering costs relating to the offering of
$2,3744,332 have been charged to additional paid-in capital. An additional
5,200,000 shares were issued in connection with the exercise of the
underwriters' over-allotment option.
Kidder Peabody, the former Shareholder Servicing Agent, and PaineWebber,
Shareholder Servicing Agent and an affiliate of the Sub-Administrator,
participated in the underwriting group as managers in the offering of the Fund's
common stock. Kidder Peabody informed the Fund that it received approximately
$2,789,613 in underwriting and management fees, and approximately $7,027,738 in
selling concessions for the sale of 11,990,000 shares. PaineWebber informed the
Fund that it received $2,297,400 in underwriting and management fees and
$5,874,374 in selling concessions for the sale of 9,065,750 shares.
- - --------------------------------------------------------------------------------
NOTE E: ILLIQUID SECURITIES
<TABLE>
<CAPTION>
DATE
ACQUIRED COST
--------- ------------
<S> <C> <C>
Arab Potash Co................. 10/05/94 $ 1,793,945
B.W.I.A. International
Airways....................... 02/21/95 2,999,999
Efes Sinai Yatirum Ve Ti....... 07/12/94 1,000,000
Hansabank, Ltd................. 07/22/94-
04/03/95 2,235,962
Interuropa Bank................ 04/13/94 2,007,288
Matav RT....................... 07/11/94 5,003,002
Ontario-Quinta A.V.V........... 08/15/94 2,052,257
RNGS Holdings, Ltd.
8% pfd........................ 10/18/94 10,290,000
Societatea..................... 11/15/94-
04/07/95 431,287
Televisao Independente......... 06/24/94-
01/18/95 4,146,061
------------
$ 31,959,801
------------
------------
</TABLE>
These securities are not readily marketable and have been valued at fair value
in accordance with the policies described in Note A. The value of these
securities at April 30, 1995 was $30,731,989 representing 3.0% of net assets.
- - --------------------------------------------------------------------------------
16
<PAGE>
THE GLOBAL PRIVATIZATION FUND, INC.
NOTE F: CONCENTRATION OF RISK
Investing in securities that have been created by privatizations of state
enterprises involves special risk considerations. In certain jurisdictions, the
ability of foreign entities, such as the Fund, to participate in privatizations
may be limited by local laws, or the price or terms on which the Fund may be
able to participate may be less advantageous than for local investors. Moreover,
there can be no assurance that governments that have been embarked on
privatization programs will continue to divest their ownership of state
enterprises, that proposed privatizations will be successful or that governments
will not re-nationalize enterprises that have been privatized. In addition,
securities of many foreign countries and their markets may be less liquid and
their prices more volatile than those of the United States.
- - --------------------------------------------------------------------------------
NOTE G: QUARTERLY RESULTS OF OPERATIONS
<TABLE>
<CAPTION>
NET REALIZED NET INCREASE
AND UNREALIZED (DECREASE)
GAIN (LOSS) ON IN NET ASSETS
NET INVESTMENT INVESTMENTS AND RESULTING FROM
INCOME FOREIGN CURRENCY OPERATIONS MARKET PRICE
---------------------- --------------------- --------------------- ON NYSE
TOTAL TOTAL TOTAL --------------------
QUARTER ENDED (000) PER SHARE (000) PER SHARE (000) PER SHARE HIGH LOW
- - -------------------------------- --------- ----------- ---------- --------- ---------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
April 30, 1995.................. $ 1,177 $ .02 $ 28,826 $ .38 $ 30,003 $ .40 $ 12.125 $ 11.625
January 31, 1995................ (903) (.01) (132,762) (1.77) (133,665) (1.78) $ 12.875 $ 11.750
--------- ----- ---------- --------- ---------- ---------
$ 274 $ .01 $ (103,936) $ (1.39) $ (103,662) $ (1.38)
--------- ----- ---------- --------- ---------- ---------
--------- ----- ---------- --------- ---------- ---------
October 31, 1994................ $ 327 $ .01 $ 87,880 $ 1.17 $ 88,207 $ 1.18 $ 14.000 $ 12.125
July 31, 1994................... 4,715 .06 24,134 .32 28,849 .38 $ 13.500 $ 11.000
April 30, 1994 *................ 683 .01 (17,031) (.23) (16,348) (.22) $ 15.125 $ 11.625
--------- ----- ---------- --------- ---------- ---------
$ 5,725 $ .08 $ 94,983 $ 1.26 $ 100,708 $ 1.34
--------- ----- ---------- --------- ---------- ---------
--------- ----- ---------- --------- ---------- ---------
</TABLE>
- - --------------------------------------------------------------------------------
* From March 7, 1994 (commencement of operations).
17
<PAGE>
THE GLOBAL PRIVATIZATION FUND, INC.
BOARD OF DIRECTORS
JOHN D. CARIFA, CHAIRMAN AND PRESIDENT
RUTH BLOCK
DAVID H. DIEVLER
JOHN H. DOBKIN
WILLIAM H. FOULK, JR.
DR. JAMES M. HESTER
CLIFFORD L. MICHEL
ROBERT C. WHITE
OFFICERS
MARK H. BREEDON, SENIOR VICE PRESIDENT
THOMAS BARDONG, VICE PRESIDENT
EDMUND P. BERGAN, JR., SECRETARY
MARK D. GERSTEN, TREASURER & CHIEF FINANCIAL OFFICER
PATRICK J. FARRELL, CONTROLLER
ADMINISTRATOR
ALLIANCE CAPITAL MANAGEMENT L.P.
1345 Avenue of the Americas
New York, NY 10105
CUSTODIAN
BROWN BROTHERS HARRIMAN & CO.
40 Water Street
Boston, MA 02109-3661
INDEPENDENT ACCOUNTANTS
PRICE WATERHOUSE LLP
1177 Avenue of the Americas
New York, NY 10036-2798
DIVIDEND PAYING AGENT, TRANSFER AGENT AND REGISTRAR
THE BANK OF NEW YORK
101 Barclay Street
New York, NY 10286
SHAREHOLDER SERVICING AGENT
PAINEWEBBER, INC.
1285 Avenue of the Americas
New York, NY 10019
LEGAL COUNSEL
SEWARD & KISSEL
One Battery Park Plaza
New York, NY 10004
- - --------------------------------------------------------------------------------
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 the Global Privatization Fund, Inc. for their information. The
financial information included herein is taken from the records of the Fund
without audit by independent accountants who do not express an opinion thereon.
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.
19
<PAGE>
THE GLOBAL PRIVATIZATION FUND, INC.
Summary of General Information
SHAREHOLDER INFORMATION
Daily market prices for the Fund's shares are published in the New York Stock
Exchange Composite Transaction section of newspapers under the designation "Glb
Prv". The Fund's NYSE trading symbol is "GPF". Weekly comparative net asset
value (NAV) and market price information about the Fund is published each Monday
in THE WALL STREET JOURNAL and 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.
The Plan provides you with a convenient way to reinvest your dividends and
capital gains in additional shares of the Fund, thereby enabling you to compound
your returns from the Fund.
A brochure describing the Plan is available from the Plan Agent, The Bank of New
York, by calling 1-800-432-8224.
THE GLOBAL PRIVATIZATION FUND, INC.
1345 Avenue of the Americas
New York, NY 10105
- - -Registered Trademark-These registered service marks used under license from the
owner,
Alliance Capital Management L.P.
GPFSR
