<PAGE>
LETTER TO SHAREHOLDERS Alliance Global Dollar Government Fund, Inc.
April 5, 1995
Dear Shareholder:
Since we last reported, higher interest rates in the U.S. and instability in
emerging markets combined to negatively affect fixed income securities prices
in these markets. While U.S. bond markets have staged an impressive rally in
1995, most international bond markets continue to underperform largely because
of economic and political uncertainty in Mexico and other emerging markets.
Resolving these problems will be difficult for many governments. However, it is
our view that much of the worst news has already been priced into these
securities, improving the prospects for long-term price appreciation.
INVESTMENT RESULTS
The table below compares your Fund's investment results over the six-month
reporting period with the overall Brady bond market, represented by the
unmanaged J.P. Morgan Emerging Markets Bond Index (JPM EMBI). The EMBI is
composed of dollar-denominated restructured sovereign bonds; a large percentage
of the index is made up of Brady bonds.
Six Months Ended February 28, 1995
Total Return Ending NAV
------------ ----------
Alliance Global Dollar Government Fund
Class A -21.29% $6.81
Class B -21.64% $6.81
Class C -21.62% $6.81
JPM EMBI -15.33%
The Fund's total returns are based on net asset values as of February 28, 1995.
Additional investment results for your Fund appear on page 3.
A SOFT LANDING FOR THE ECONOMY?
By increasing short-term interest rates, the Federal Reserve is attempting to
slow gross domestic product (GDP) growth to 2.5% or lower, which should provide
the foundation for continued favorable inflation performance. Indeed, while the
U.S. economy continued its impressive expansion in the second half of 1994,
initial signs of a slowdown have begun to appear. Recently released U.S.
economic data have shown smaller than expected rises in retail sales and
manufacturing output with continued weakness in the automobile and housing
sectors. However, the U.S. economy remains fundamentally strong and despite
recent signs of moderation, the economy should continue to expand in 1995,
albeit at a slower pace. Supporting U.S. economic growth will likely be
continued high levels of consumer (excluding automobiles and housing) and
business spending. Real gains in personal income, strong corporate earnings and
easier access to credit are expected to keep aggregate U.S. consumption at
solid levels in the months ahead.
While an increase in overall price levels is expected this year, the inflation
outlook appears generally favorable. Broad price indices such as the Consumer
Price Index (CPI) and Producer Price Index (PPI) have shown few signs of
acceleration and labor costs remain under control. However, with the U.S.
economy believed to be at or near full capacity utilization, concern regarding
inflation is still warranted. Commodity prices and core intermediate goods in
the PPI have risen sharply over the past 12 months and recent economic data
indicate an increase in service sector prices. If the economy slows, the upward
pressure on prices should ease somewhat due to less demand for resources. If
the economy re-accelerates in the second half of 1995, then concern over
inflation would likely lead to additional interest rate increases by the
Federal Reserve.
OUTLOOK FOR MEXICO
The economic crisis in Mexico affected prices for all emerging market debt
instruments. In December, the Mexican Government's decision to float the peso
led to a significant devaluation in its currency versus the U.S. dollar. The
Mexican Government floated the peso in hopes of improving the trade deficit,
lowering interest rates and halting the depletion of its currency reserves.
However, in taking such action, the government created an economic crisis that
has resulted in significant increases in Mexican unemployment and inflation,
and the loss of investor
1
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Alliance Global Dollar Government Fund, Inc.
confidence. To combat inflation and halt the devaluation of its currency, the
government implemented an economic recovery plan designed to boost domestic
savings and rein in the current account deficit. While this program is bitter
medicine for the country's economic ills, without it investor confidence would
further erode. If tangible economic progress is achieved in the months ahead,
we would expect investor confidence to return and therefore improve the
potential for price appreciation.
BOND MARKET OUTLOOK
We have revised our investment outlook to reflect the growing evidence that
higher interest rates have begun to slow the U.S. economy, reducing the
likelihood of significant short-term interest rate increases by the Federal
Reserve. We believe the economic expansion should continue throughout 1995 with
GDP moderating to 2.5% for the year. While inflation momentum may be building,
it is our view that prices will not spiral ahead dramatically. We expect CPI
inflation to reach 3.5% in the second half of 1995. If inflation or
inflationary expectations should exceed 3.5%, we would expect the Federal
Reserve to raise the Federal Funds rate an additional one-half percent, to
6.50%, by midsummer.
In emerging markets, volatility is expected to remain above normal over the
near term. However, it is our view that emerging market debt is oversold. In
fact, Brady bonds and other emerging market debt appear to us to present
attractive long-term buy opportunities given the recent price declines and
favorable worldwide economic fundamentals. The governments of Mexico, Argentina
and Brazil have all taken aggressive steps to halt capital flight from their
economies. In the short term, we expect that emerging market debt will offer
investors very attractive yields with limited price appreciation opportunity.
Long term, we continue to believe that emerging market debt will offer very
attractive total returns for investors with at least 18 to 36 month time
horizons.
We appreciate your investment in Alliance Global Dollar Government Fund and
look forward to reporting its progress to you in the coming period.
Sincerely,
John D. Carifa
Chairman
Wayne D. Lyski
President
2
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INVESTMENT RESULTS Alliance Global Dollar Government Fund, Inc.
Average Annual Total Return as of February 28, 1995
CLASS A SHARES
Without With
Sales Charge Sales Charge
------------ ------------
One Year -24.25% -27.45%
Since Inception* -23.84 -26.99
SEC Yield 12.77%
CLASS B SHARES
Without With
Sales Charge Sales Charge
------------ ------------
One Year -24.91% -26.95%
Since Inception* -24.49 -25.83
SEC Yield 12.59%
CLASS C SHARES
One Year -24.88%
Since Inception* -24.46
SEC Yield 12.59%
The average annual total returns reflect investment of dividends and/or capital
gains distributions in additional shares-with and without the effect of the
4.25% maximum sales charge (Class A) or applicable contingent deferred sales
charge for Class B (3% year 1, 2% year 2, 1% year 3, 0% year 4); Class C shares
are not subject to front-end or contingent deferred sales charges. 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. Yields are for the 30 days ended
February 28, 1995.
*Inception: 2/25/94 for all classes.
3
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PORTFOLIO OF INVESTMENTS
February 28, 1995 (unaudited) Alliance Global Dollar Government Fund, Inc.
Principal
Amount
(000) Value
SOVEREIGN DEBT
OBLIGATIONS-77.2%
COLLATERALIZED BRADY
BONDS*-22.8%
ECUADOR-4.7%
Republic of Ecuador
Euro Par Bonds
3.00%, 2/28/25(e)
(cost $3,243,750) $10,000 $2,675,000
JORDAN-4.3%
Kingdom of Jordan
Par Bonds VRN
4.00%, 12/23/23(a)
(cost $3,438,832) 7,225 2,456,654
MEXICO-4.1%
United Mexican States
Euro Par Bonds
Ser. A.
6.25%, 12/31/19(c)
(cost $3,145,762) 4,750 2,363,125
NIGERIA-5.1%
Central Bank of Nigeria
Par Bonds VRN
6.25%, 11/15/20(a)
(cost $2,907,068) 7,500 2,934,375
VENEZUELA-4.6%
Republic of Venezuela
Series W-B, Par Bonds
6.75%, 3/31/20
(cost $2,664,384) 5,900 2,621,813
Total Collateralized
Brady Bonds
(cost $15,399,796) 13,050,967
Principal
Amount
(000) Value
LOAN PARTICIPATIONS &
ASSIGNMENTS-8.4%
ECUADOR-2.4%
Republic of Ecuador ERA
Loan Assignment(b)
(cost $1,320,000) $3,000 $1,382,037
MOROCCO-4.3%
Kingdom of Morocco
Loan Participation VRN
7.375%, 1/01/09(a)
(cost $3,032,731) 4,000 2,485,000
PERU-1.7%
Republic of Peru (Non Citibank)
Loan Assignment(b)
(cost $1,250,000) 2,000 950,000
Total Loan Participations &
Assignments
(cost $5,602,731) 4,817,037
OTHER SOVEREIGN DEBT-46.0%
ARGENTINA-17.7%
Republic of Argentina FRB
6.50%, 3/31/05(a)
(cost $10,962,970) 19,750 10,134,219
BRAZIL-15.2%
Republic of Brazil
C-Bonds
8.00%, 4/15/14(d)
(cost $9,748,259) 21,420 8,715,263
BULGARIA-10.9%
Bulgaria Interest In Arrears
7.5625%, 7/28/11
(cost $7,200,258) 16,500 6,228,750
4
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Alliance Global Dollar Government Fund, Inc.
Principal
Amount
(000) Value
ECUADOR-2.2%
Republic of Ecuador FRB, PDI
2/28/25(e)
(cost $2,150,000) $5,000 $ 1,275,000
Total Other Sovereign
Debt Obligations
(cost $30,061,487) 26,353,232
Total Sovereign
Debt Obligations
(cost $51,064,014) 44,221,236
CORPORATE DEBT
OBLIGATIONS-16.9%
YANKEES-9.8%
Banco De Galicia Y Buenos
Aires, S.A.
9.00%, 11/01/03
(cost $2,286,193) 2,500 1,459,375
Consorcio Groupo Dina -G-,
S.A. de C.V.
10.50%, 11/18/97
(cost $3,650,580) 4,000 2,660,000
Tribasa Toll Road Trust #1
10.50%, 12/01/11
(cost $2,857,369) 3,000 1,500,000
Total Yankees
(cost $8,794,142) 5,619,375
INDUSTRIAL-5.6%
Transamerica Refining Co.
16.50%, 2/15/02
(cost $3,000,000) 3,000 3,222,630
BANKING & FINANCIAL-1.5%
M.D.C. Holdings, Inc.
11.125%, 12/15/03
(cost $968,931) 1,000 847,500
Total Corporate Debt Obligations
(cost $12,763,073) 9,689,505
Shares or
Principal
Amount
(000) Value
U.S. GOVERNMENT
OBLIGATIONS-8.2%
U.S. Treasury Note
5.00%, 1/31/99 $250 $ 233,048
7.75%, 11/30/99 4,350 4,471,664
Total U.S. Government
Obligations
(cost $4,716,318) 4,704,712
OTHER SOVEREIGN DEBT RELATED-3.6%
Bayerische Landesbank CD
Brazil Par/U.S. Treasury
Spread Note 6.25%, 8/15/23
9.125%, 9/28/95 2,000 943,800
Morgan Guaranty Trust CD
Argentina Par/U.S. Treasury
Spread Note
9.00%, 7/14/95 2,783 121,756
Morgan Guaranty Trust CD
Ivory Coast/U.S. Treasury
Spread Note
9.00%, 6/19/95 365 272,655
Morgan Guaranty Trust CD
Vneshekonombank/U.S.
Treasury Loan Note
9.00%, 7/27/95 630 698,606
Total Other Sovereign Debt Related
(cost $5,764,506) 2,036,817
PREFERRED STOCKS-1.4%
Prime Retail, Inc.
Series A, 10.50%
(cost $1,000,000) 40,000 800,000
5
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PORTFOLIO OF INVESTMENTS (cont.) Alliance Global Dollar Government Fund, Inc.
Number of
Contracts Value
CALL OPTION PURCHASED-0.0%
Republic of Argentina
Euro Par Bonds FRB
expiring April 1995
@ $72.50
(cost $126,000) 600 $ 900
TOTAL INVESTMENTS-107.3%
(cost $75,433,911) 61,453,170
PUT OPTION WRITTEN-(1.8%)
Republic of Argentina
Euro Par Bonds FRB
expiring April 1995
@ $68.50
(Premium received $111,000) 600 (1,050,000)
Value
TOTAL INVESTMENTS,
NET OF OUTSTANDING PUT
OPTION WRITTEN-105.5% $60,403,170
Other assets less liabilities-(5.5%) (3,154,454)
NET ASSETS-100% $57,248,716
-----------
* Sovereign debt obligations issued as part of debt restructuring 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) Stated interest rate in effect at February 28,1995.
(b) Non-income producing security.
(c) Security trades with value recovery rights expiring June 30, 2003.
(d) Coupon consists of 4.00% cash payment and 4.00% paid-in-kind.
(e) When and if issued.
Glossary of Terms:
ERA-Extension and refinancing agreement.
FRB-Floating rate bonds.
PDI-Past due interest.
See notes to financial statements.
6
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
February 28, 1995 (unaudited) Alliance Global Dollar Government Fund, Inc.
ASSETS
Investments in securities, at value (cost $75,433,911) $61,453,170
Receivable for investment securities sold 8,407,897
Interest receivable 2,134,473
Receivable for capital stock sold 376,066
Deferred organizational expense 147,717
Dividend receivable 12,122
Other assets 13,755
Total assets 72,545,200
LIABILITIES
Due to custodian 1,262,048
Outstanding put options written, at value
(premium received $111,000) 1,050,000
Payable for investment securities purchased 11,958,308
Dividends payable 584,899
Payable for capital stock redeemed 264,208
Distribution fee payable 40,994
Advisory fee payable 34,504
Accrued expenses and other liabilities 101,523
Total liabilities 15,296,484
NET ASSETS $57,248,716
-----------
COMPOSITION OF NET ASSETS
Capital stock, at par $ 8,404
Additional paid-in capital 78,077,044
Distributions in excess of net investment income (199,253)
Accumulated net realized loss on investments (5,713,511)
Net unrealized depreciation of investments and other assets (14,923,968)
$57,248,716
-----------
CALCULATION OF MAXIMUM OFFERING PRICE
Class A Shares
Net asset value and redemption price per share ($8,905,021/1,307,451
shares of capital stock issued and outstanding) $6.81
Sales charge-4.25% of public offering price .30
Maximum offering price $7.11
------
Class B Shares
Net asset value and offering price per share ($40,859,031/5,998,196
shares of capital stock issued and outstanding) $6.81
------
Class C Shares
Net asset value, redemption and offering price per share ($7,484,664/1,098,826
shares of capital stock issued and outstanding) $6.81
-------
See notes to financial statements.
7
<PAGE>
STATEMENT OF OPERATIONS
Six Months Ended February 28, 1995 (unaudited)
Alliance Global Dollar Government Fund, Inc.
INVESTMENT INCOME
Interest $3,868,740
Dividends 90,781 $ 3,959,521
EXPENSES
Advisory fee 250,153
Distribution fee-Class A 14,953
Distribution fee-Class B 236,523
Distribution fee-Class C 47,173
Transfer agency 45,094
Audit and legal 41,840
Administrative 23,600
Printing 22,936
Custodian 19,790
Registration 19,273
Amortization of organization expenses 18,438
Director's fees 9,266
Miscellaneous 16,953
Total expenses 765,992
Net investment income 3,193,529
----------
REALIZED AND UNREALIZED LOSS ON INVESTMENTS
Net realized loss on security transactions (3,185,624)
Net realized loss on option transactions (849,365)
Net change in unrealized appreciation of:
Securities (14,954,404)
Options and other assets (953,641)
Net loss on investments (19,943,034)
NET DECREASE IN NET ASSETS FROM OPERATIONS $(16,749,505)
-------------
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended Feb. 25,1994*
Feb. 28,1995 to
(unaudited) Aug. 31,1994
---------------- -----------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income $ 3,193,529 $ 2,071,990
Net loss on investments (4,034,989) (1,678,522)
Net change in unrealized appreciation of
investments and other assets (15,908,045) 984,077
Net increase (decrease) in net assets
from operations (16,749,505) 1,377,545
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income
Class A (544,361) (384,490)
Class B (2,375,737) (1,353,757)
Class C (475,553) (330,874)
CAPITAL STOCK TRANSACTIONS
Net increase 8,963,868 69,021,380
Total increase (decrease) (11,181,288) 68,329,804
NET ASSETS
Beginning of period 68,430,004 100,200
End of period (including undistributed net investment income
of $2,869, for the period ended August 31, 1994) $57,248,716 $68,430,004
----------- -----------
* Commencement of operations
See notes to financial statements.
8
<PAGE>
NOTES TO FINANCIAL STATEMENTS
February 28, 1995 (unaudited) Alliance Global Dollar Government Fund, Inc.
NOTE A: Significant Accounting Policies
Alliance Global Dollar Government Fund, Inc. (the "Fund"), organized as a
Maryland corporation on December 2, 1993, is registered under the Investment
Company Act of 1940 as an open-end, non-diversified management investment
company. Prior to the commencement of operations on February 25, 1994, the Fund
had no operations other than the sale to Alliance Capital Management L.P. (the
"Adviser") of 10,000 shares of Class A and 10 shares of Class B and Class C
shares, of common stock for the aggregate amount of $100,200 on January 21,
1994. The Fund offers three classes of shares. Class A shares are sold with a
front-end sales charge of up to 4.25%. Class B shares are sold with a
contingent deferred sales charge which declines from 3% to zero depending on
the period of time the shares are held. Class B shares will automatically
convert to Class A shares six years after the end of the calendar month of
purchase. Class C shares are sold without an initial or contingent deferred
sales charge. All three 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.
1. Security Valuation
Portfolio securities traded on a national securities exchange are valued at the
last sales 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. In determining fair value, consideration
is given to cost operating and other financial data. 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. Organization Expenses
Organization expenses of approximately $184,000 have been deferred and are
being amortized on a straight-line basis through February, 1999.
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 Security Transactions
Interest income is accrued daily. Dividend income is recorded on the
ex-dividend date. Security transactions are accounted for on the date
securities are purchased or sold. Security gains and losses are determined on
the identified cost basis. The Fund accretes discounts as adjustments to
interest income.
5. 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 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 .75 of 1% of the average adjusted daily net assets of the Fund. Such
fee will be accrued daily and paid monthly. The Adviser has agreed, under the
terms of the investment advisory agreement, to reimburse the Fund to the extent
that the aggregate annual expenses (exclusive of interest, taxes, brokerage,
distribution services fees and extraordinary expenses, all to the extent
permitted by applicable state law and regulation) exceed the limits prescribed
by any state in which the Fund's shares are qualified for sale. The Adviser
believes that the most restrictive expense
9
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NOTES TO FINANCIAL STATEMENTS
(continued) Alliance Global Dollar Government Fund, Inc.
ratio limitation imposed by any state is 2.5% of the first $30 million of its
average daily net assets, 2% of the next $70 million of its average daily net
assets and 1.5% of its average daily net assets in excess of $100 million.
No such reimbursement was required for the six months ended February 28, 1995.
The Fund has a service agreement with Alliance Fund Services, Inc. (a
wholly-owned subsidiary of the Adviser) to provide personnel and facilities to
perform transfer agency services for the Fund. Compensation under this
agreement amounted to $32,290 for the six months ended February 28, 1995.
Alliance Fund Distributors, Inc. (a wholly-owned subsidiary of the Adviser)
serves as the Distributor of the Fund's shares. The Distributor received
front-end sales charges of $2,364 from the sale of Class A shares and $127,798
in contingent deferred sales changes imposed upon redemptions by shareholders
of Class B shares for the six months ended February 28, 1995.
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 for Class A,
Class B and Class C shares. Under the Agreement, the Fund pays a distribution
fee to the Distributor at an annual rate of up to .30 of 1% of the Fund's
average daily net assets attributable to Class A shares and 1% of the average
daily net assets attributable to both Class B and Class C shares. The fees are
accrued daily and paid monthly. The Agreement provides that the Distributor
will use such payments in their entirety for distribution assistance and
promotional activities. The Distributor has incurred expenses in excess of the
distribution costs reimbursed by the Fund in the amount of $1,224,904, and
$146,346 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 investments)
aggregated $88,065,328 and $80,078,701, respectively, for the six months ended
February 28, 1995.
At February 28, 1995, the cost of securities for federal income tax purposes
was $75,816,961. Accordingly, gross unrealized appreciation of investments was
$353,274 and gross unrealized depreciation was $14,717,065 resulting in net
unrealized depreciation of $14,363,791.
1. Options Transactions
For hedging purposes, the Fund purchases and writes (sells) put and call
options on U.S. and foreign government securities and foreign currencies that
are traded on U.S. and foreign securities exchanges and over-the-counter
markets.
The risk associated with purchasing an option is that the Fund pays a premium
whether or not the option is exercised. Additionally, the Fund bears the risk
of loss of premium and change in market value should the counterparty not
perform under the contract. Put and call options purchased are accounted for in
the same manner as portfolio securities. The cost of securities acquired
through the exercise of call options is increased by premiums paid. The
proceeds from securities sold through the exercise of put options are decreased
by the premiums paid.
When the Fund writes an option, the premium received by the Fund is recorded as
a liability and is subsequently adjusted to the current market value of the
option written. Premiums received from writing options which expire unexercised
are recorded by the Fund on the expiration date as realized gains from option
transactions. The difference between the premium and the amount paid on
effecting a closing purchase transaction, including brokerage commissions, is
also treated as a realized gain, or if the premium is less than the amount paid
for the closing purchase transaction, as a realized loss. If a call option is
exercised, the premium is added to the proceeds from the sale of the underlying
security or currency in determining whether the Fund has realized a gain or
loss. If a put option is exercised, the premium reduces the cost basis of the
security or currency purchased by the Fund. In writing an option, the Fund
bears the market risk of an unfavorable change in the price of the security or
currency underlying the written option. Exercise of an option written by the
Fund
10
<PAGE>
Alliance Global Dollar Government Fund, Inc.
could result in the Fund selling or buying a security or currency at a price
different from the current market value.
Transactions in options written for the six months ended February 28, 1995 were
as follows:
Number of
Contracts Premium
Options outstanding at
beginning of period -0- $ -0-
Options written 1,700 239,000
Options terminated in closing
purchase transactions (1,100) (128,000)
Options outstanding at
February 28, 1995 600 $111,000
NOTE E: Capital Stock
There are 9,000,000,000 shares of $0.001 par value capital stock authorized,
divided into three classes, designated Class A, Class B and Class C shares.
Each class consists of 3,000,000,000 authorized shares. Transactions in
capital stock were as follows:
SHARES AMOUNT
Six Months Ended Feb. 28,1994* Six Months Ended Feb.28,1994*
Feb. 28,1995 to Feb. 28,1995 to
(unaudited) Aug. 31,1994 (unaudited) Aug. 31,1994
-------------- ---------- ----------- ----------
Class A
Shares sold 387,142 1,255,865 $ 3,079,413 $11,495,551
Shares issued in reinvestment
of dividends 32,140 23,857 267,409 208,694
es redeemed (315,146) (86,407) (2,571,989) (766,001)
Net increase 104,136 1,193,315 $ 774,833 $10,938,244
-------- ---------- ------------ ------------
Class B
Shares sold 2,258,645 5,452,348 $18,897,071 $50,206,353
Shares issued in reinvestment
of dividends 121,683 66,347 1,019,663 578,396
Shares redeemed (1,525,910) (374,927) (11,579,175) (3,325,848)
Net increase 854,418 5,143,768 $ 8,337,559 $47,458,901
----------- ---------- ------------ ------------
Class C
Shares sold 851,158 1,336,256 $ 7,190,156 $12,393,427
Shares issued in reinvestment
of dividends 31,208 18,446 261,514 160,664
Shares redeemed (921,549) (216,703) (7,600,194) (1,929,856)
Net increase (decrease) (39,183) 1,137,999 $ (148,524) $10,624,235
--------- ---------- ------------ -----------
* Commencement of operations.
11
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(continued) Alliance Global Dollar Government Fund, Inc.
NOTE F: Concentration of Risk
Investing in securities of foreign companies and foreign governments involves
special risks which include revaluation of currency and future adverse
political and economic developments. Moreover, securities of many foreign
companies and foreign governments and their markets may be less liquid and
their prices more volatile than those of comparable U.S. companies and 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.
12
<PAGE>
FINANCIAL HIGHLIGHTS Alliance Global Dollar Government Fund, Inc.
Selected Data For A Share of Capital Stock Outstanding Throughout The Period
CLASS A CLASS B
Six Months Ended Feb.25,1994* Six Months Ended Feb.25,1994*
Feb. 28,1995 to Feb. 28,1995 to
(unaudited) Aug. 31,1994 (unaudited) Aug. 31,1994
-------------- ---------- ----------- ----------
Net asset value, beginning of
period $ 9.14 $10.00 $ 9.14 $ 10.00
Income From Investment
Operations
Net investment income .41 .45 .39 .42
Net realized and unrealized loss
on investments (2.30) (.86) (2.31) (.86)
Net decrease in net asset value
from operations (1.89) (.41) (1.92) (.44)
Less: Distributions
Dividends from net investment
income (.44) (.45) (.41) (.42)
Total dividends (.44) (.45) (.41) (.42)
Net asset value, end of period$ 6.81 $9.14 $ 6.81 $ 9.14
----- ----- ------- -------
Total Return
Total investment return based on
net asset value (a) (21.29)% (3.77)% (21.64)% (4.17)%
-------- ------- -------- -------
Ratios/Supplemental Data
Net assets, end of period (000's
omitted) $ 8,905 $10,995 $40,859 $47,030
Ratio to average net assets of:
Expenses, net waivers and
reimbursements (b) 1.70% .75% 2.40% 1.45%
Expenses, before waivers
and reimbursements (b) 1.70% 1.91% 2.40% 2.63%
Net investment income (b) 10.16% 9.82% 9.48% 9.11%
Portfolio turnover rate 113% 100% 113% 100%
See footnote summary on page 14.
13
<PAGE>
FINANCIAL HIGHLIGHTS (continued) Alliance Global Dollar Government Fund, Inc.
Selected Data For A Share of Capital Stock Outstanding Throughout The Period
CLASS C
Six Months Ended Feb. 25,1994*
Feb. 28,1995 to
(unaudited) Aug. 31,1994
----------- ----------
Net asset value, beginning of period $ 9.14 $10.00
Income From Investment Operations
Net investment income .38 .42
Net realized and unrealized loss on investments (2.30) (.86)
Net decrease in net asset value from operations (1.92) (.44)
Less: Distributions
Dividends from net investment income (.41) (.42)
Total dividends (.41) (.42)
Net asset value, end of period $6.81 $9.14
----- -----
Total Return
Total investment return based on net asset value (a) (21.62)% (4.16)%
-------- -------
Ratios/Supplemental Data
Net assets, end of period (000's omitted) $ 7,485 $10,404
Ratio to average net assets of:
Expenses, net waivers and reimbursements (b) 2.40% 1.45%
Expenses, before waivers and reimbursements (b) 2.40% 2.59%
Net investment income (b) 9.42% 9.05%
Portfolio turnover rate 113% 100%
* Commencement of operations.
(a) 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 is not reflected in the calculation of total investment
return. Total investment return calculated for a period of less than one year
is not annualized.
(b) Annualized.
14
<PAGE>
BOARD OF DIRECTORS
John D. Carifa, Chairman William H. Foulk, Jr. (1)
Ruth Block (1) Dr. James M. Hester (1)
David H. Dievler Clifford L. Michel (1)
John H. Dobkin (1) Robert C. White (1)
OFFICERS
Wayne D. Lyski, President Edmund P. Bergan, Jr., Secretary
Robert M. Sinche, Senior Vice President Mark D. Gersten, Treasurer &
Chief Financial Officer
Daniel V. Panker, Vice President Joseph J. Mantineo,Controller
PRINCIPAL UNDERWRITER
Alliance Fund Distributors, Inc.
1345 Avenue of the Americas
New York, NY 10105
CUSTODIAN
Bank of New York
48 Wall Street
New York, N.Y. 10286
TRANSFER AGENT
Alliance Fund Services, Inc.
P.O. Box 1520
Secaucus, NJ 07096-1520
INDEPENDENT AUDITORS
Ernst & Young LLP
787 Seventh Avenue
New York, NY 10019
(1) Member of the Audit Committee.
15
<PAGE>
ALLIANCE GLOBAL DOLLAR GOVERNMENT FUND, INC.
1345 Avenue of the Americas
New York, NY 10105
(800) 221-5672
Alliance Capital
Mutual Funds without the Mystery. sm
This report is distributed solely to shareholders of the Fund
and is not to be used as sales literature.
R These registered service marks used under license from the owner,
Alliance Capital Management L.P.
GDGSR
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ALLIANCE
GLOBAL DOLLAR
GOVERNMENT
FUND, INC.
Semi-Annual
Report
February 28, 1995
Alliance Capital
Mutual Funds without the Mystery. sm
