ALLIANCE
WORLDWIDE
PRIVATIZATION
FUND
ANNUAL REPORT
JUNE 30, 1995
LETTER TO SHAREHOLDERS ALLIANCE WORLDWIDE PRIVATIZATION FUND
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August 7, 1995
Dear Shareholder:
This edition of our June 30, 1995, annual report coincides with Alliance
Worldwide Privatization Fund's first full year of operations. When the Fund
began in June of last year, the leading story in U.S. financial markets was the
level of interest rates, which continued to rise through the fourth quarter.
The U.S. equity market ended the year relatively flat, with the S&P 500 up just
over 1%. International equity markets fared better, with the Morgan Stanley
EAFE Index (EAFE stands for Europe, Australia and the Far East) gaining over 7%.
Since the beginning of 1995, the U.S. equity market has rallied, global equity
markets have continued to move ahead and there appears to be growing confidence
in the sustainability of the world economic recovery.
DOMESTIC MARKETS SET POSITIVE TREND
The U.S. equity market, responding to slowing economic growth, low inflation,
declining interest rates and strong corporate profits, was clearly setting the
pace and direction for the positive trends in the second quarter. World equity
markets climbed higher between April and June on the heels of the U.S.'s rise
of almost 10%. The U.S. dollar stabilized versus the European currencies after
collapsing during the first quarter. However, in response to escalating trade
tensions and threats of sanctions, the dollar weakened a further 1.7% versus
the Japanese yen. European equity markets lagged the U.S. market, but reversed
the disappointing first quarter by rising 7% in local currency terms. The
Japanese stock market continued to ignore global financial market trends and
declined 8% in local currency terms during the second quarter. The market's
weakness has resulted largely from the stalled economic recovery in Japan,
which stems from this year's 14% appreciation of the yen, persistent political
paralysis and uncertainty, and a potential trade war with the U.S.
As a result of lower U.S. interest rates, emerging equity markets have rallied
about 10% measured in U.S. dollars. Mexico was the leader, climbing 26% as
expectations rose that recovery may be imminent. The Asian markets appreciated
8%, with the Philippines, Thailand and Indonesia among the leaders. The weak
dollar has actually helped the competitiveness of the Emerging Asian nations,
particularly those that export into Japan and Europe.
As we enter the third quarter of 1995, the economic environment for financial
market investing remains friendly since growth is gradually slowing worldwide,
inflation has peaked, and interest rates globally are trending lower. In a
lower interest 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.
PRIVATIZATION ACTIVITY
While the volume of privatizations was a bit subdued earlier this year due
mostly to the uncertainty in emerging markets, it has now recovered
substantially with new-issue volume rising to the highest levels so far this
year. The vast majority of privatizations have occurred in Europe and most have
produced successful, though not spectacular, returns. Among the stronger
performers have been Bohler Uddeholm and Vienna Airports in Austria, Portucel
Industrial in Portugal and Seita in France.
European privatizations show no signs of slowing, especially in Eastern Europe.
Dominating a heavy telecoms agenda, major offerings in the pipeline currently
include Belgacom, Matav, Telefonica and Deutsche Telecom. In Australia, the
offering of the national airline, Qantas, is underway and at this stage we are
optimistic as to a successful launch for the company.
Separately, new issue activity has continued to be virtually non-existent in
the emerging markets-particularly Latin America-despite the renewed stability
of stock markets in the region. However, we are anticipating a resurgence of
activity over the remainder of the year.
PORTFOLIO COMPOSITION
Alliance Worldwide Privatization Fund's portfolio remains broadly diversified
in terms of country, industry and security, reflecting our confidence in the
long-term performance possibilities of privatization issues.
As of June 30, 1995, about 93% of total net assets were invested among more
than 200 different equity issues, 45 countries and 47 different industry
sub-sets. Major areas of investment are financial services, utilities and basic
industries, and country diversification is led by France,
1
ALLIANCE WORLDWIDE PRIVATIZATION FUND
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the United Kingdom, Austria and Germany.
INVESTMENT RESULTS
The following table compares Alliance Worldwide Privatization Fund's total
returns with that of the benchmark EAFE Index, an unmanaged but broad measure
of stock performance in Europe, Australia and the Far East, for the twelve
months ended June 30, 1995:
Twelve Months Ended June 30, 1995
Total Return Ending NAV
------------ ----------
ALLIANCE WORLDWIDE PRIVATIZATION FUND
Class A +4.41% $10.18
Class B +3.70% $10.10
Class C (from 1/95) +5.98% $10.10
MSCI EAFE INDEX +1.95%
The Fund's total returns are based on the net asset values of each class of
shares as of June 30; additional investment results appear on page 3.
DIRECTORS APPROVE ACQUISITION OF CLOSED-END FUND
On another issue about your Fund, you may recall receiving a one-page
supplement to the Fund's February 1, 1995, prospectus, which was mailed to
shareholders in late June. The supplement discusses Alliance Worldwide
Privatization Fund's Board of Directors' recent approval to acquire the assets
of The Global Privatization Fund ('GPF'). GPF is a closed-end investment
company managed by Alliance which has investment policies similar in many
respects to those of Worldwide Privatization. It is anticipated that if the
transaction is approved by the shareholders of GPF, it would close later this
year. In approving the transaction, the Fund's Board considered Alliance's
recommendation in favor of the transaction and other relevant information, and
concluded that the transaction was in the best interests of the Fund and its
shareholders. The Board also noted that the transaction is expected to have the
effect of substantially reducing the Fund's expense ratios.
Thank you for your continued interest and investment in Alliance Worldwide
Privatization Fund.
Sincerely,
John D. Carifa
Chairman and President
Mark H. Breedon
Senior Vice President
2
INVESTMENT RESULTS ALLIANCE WORLDWIDE PRIVATIZATION FUND
- -------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN AS OF JUNE 30, 1995
CLASS A SHARES
WITHOUT SALES WITH
CHARGE SALES CHARGE
----------------------------
. One Year +4.41% +0.00%
. Since Inception* +1.67 -2.31
CLASS B SHARES
WITHOUT SALES WITH
CHARGE SALES CHARGE
----------------------------
. One Year +3.70% -0.30%
. Since Inception* +0.93 -1.85
CLASS C SHARES
. Since Inception* +5.98%
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 front-end sales charge for Class A or applicable contingent
deferred sales charge for Class B (4% year 1, 3% year 2, 2% year 3, 1% year 4);
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.
* Inception: 6/2/94, Class A and Class B; 1/31/95, Class C.
3
ALLIANCE WORLDWIDE PRIVATIZATION FUND
- -------------------------------------------------------------------------------
ALLIANCE WORLDWIDE PRIVATIZATION FUND
$10,000 INVESTMENT OVER LIFE OF FUND:
6/2/94 TO 6/30/95
$11,000
$10,000
$9,000
$8,000
$7,000
$6,000
$5,000
MSCI EAFE Index
Worldwide Privatization Fund Class A: $9,751
This chart illustrates the total value of an assumed investment in Alliance
Worldwide Privatization Fund Class A shares (since inception) after deducting
the maximum 4.25% sales charge, and with dividends and capital gains
reinvested. Performance for Class B and Class C shares will vary from the
results shown above due to differences in expenses charged to those classes.
Past performance is not indicative of future results, and is not representative
of future gain or loss in capital value or dividend income.
The Morgan Stanley Capital International EAFE Index is an unmanaged index that
measures stock performance in Europe, Australia and the Far East.
When comparing Alliance Worldwide Privatization Fund to the index shown above,
you should note that the Fund's performance reflects the maximum sales charge
of 4.25% while no such charges are reflected in the performance of the index.
Worldwide Privatization Fund
MSCI EAFE Index
4
TEN LARGEST HOLDINGS
JUNE 30, 1995 ALLIANCE WORLDWIDE PRIVATIZATION FUND
- -------------------------------------------------------------------------------
PERCENT OF
COMPANY U.S. $VALUE NET ASSETS
- -------------------------------------------------------------------------------
Seita - Manufactures cigarettes, pipe and
loose tobacco, cigars, and matches $ 2,260,820 2.4%
East Japan Railway Co. - Largest of the
six railway companies born out of privatized
and divided Japanese National Railway 2,171,022 2.3
Pharmacia Series B Researches, develops,
manufactures and sells pharmaceutical and
other related health care products 1,801,028 1.9
VA Technologies AG - Builds thermal and
hydroelectric power plants, offers mechanical
and electrical engineering system solutions and
maintenance services 1,729,808 1.9
Tele Danmark, A/S Series B - Provides a variety of
telecommunication services to customers in Denmark 1,572,697 1.7
Austria Mikro Systeme International AG -
Manufactures semiconductors 1,465,349 1.6
Deutsche Lufthansa A.G. - Operates international
airline services 1,410,131 1.5
Viag A.G. - Provides electrical power and
natural gas services, aluminum, chemicals,
ceramics and glass products 1,381,422 1.5
British Gas Plc. - Buys, transmits and
distributes gas 1,335,766 1.4
Industrial Finance Corporation of Thailand (The) - 1,306,056 1.4
Primary objectives are to promote and finance
private sector industrial enterprise and to
develop the domestic capital market
$16,434,099 17.6%
5
DISTRIBUTION OF PORTFOLIO BY COUNTRY
JUNE 30, 1995 Alliance Worldwide Privatization Fund
- -------------------------------------------------------------------------------
PERCENT OF PORTFOLIO*
- --------------------------------------------
France 9.7%
United Kingdom 7.9
Austria 6.1
Brazil 6.0
Germany 5.1
Finland 4.3
Netherlands 4.1
Hong Kong 3.8
Italy 3.5
Sweden 3.4
Japan 3.4
Argentina 2.8
Australia 2.7
Spain 2.6
Denmark 2.6
Thailand 2.2
Philippines 2.0
Peru 1.9
Mexico 1.8
Portugal 1.7
Russia 1.7
New Zealand 1.7
Canada 1.7
Turkey 1.5
Singapore 1.5
South Korea 1.4
Norway 1.3
Ireland 1.2
Hungary 1.2
Poland 1.2
Pakistan 1.1
Indonesia 1.1
South Africa 0.8
Ghana 0.8
Malaysia 0.7
Belgium 0.7
Israel 0.6
Greece 0.5
Czech Republic 0.5
Botswana 0.4
Kazakhstan 0.3
Slovakia 0.3
Jordan 0.1
Columbia 0.1
100.0%
* Excludes short-term obligations.
6
INDUSTRY DIVERSIFICATION
JUNE 30, 1995 ALLIANCE WORLDWIDE PRIVATIZATION FUND
- -------------------------------------------------------------------------------
U.S. $VALUE PERCENT OF NET ASSETS
- -------------------------------------------------------------------------------
Basic Industries $10,876,272 11.7%
Capital Goods 1,086,723 1.2
Consumer Manufacturing 2,449,199 2.6
Consumer Services 7,034,843 7.5
Consumer Staples 2,893,550 3.1
Energy 7,658,916 8.2
Financial Services 15,213,981 16.3
Healthcare 3,798,637 4.1
Multi-Industry 4,354,653 4.7
Technology 3,257,644 3.5
Transportation 2,574,728 2.8
Utilities 25,088,929 26.9
Total Investments 86,288,075 92.6
Cash and receivables, net of liabilities 6,943,581 7.4
Net Assets $93,231,656 100.0%
7
PORTFOLIO OF INVESTMENTS
JUNE 30, 1995 ALLIANCE WORLDWIDE PRIVATIZATION FUND
- -------------------------------------------------------------------------------
COMPANY SHARES U.S.$VALUE
- -----------------------------------------------------------------------
COMMON STOCKS-87.3%
ARGENTINA-2.6%
Central Costanera, S.A. 101,000 $ 318,229
Dycasa 'B' 46,285 97,230
Metrogas, S.A. (ADR) 22,700 195,788
Naviera Perez Companc, S.A. CIA. Cl.B .* 135,700 570,083
Telecom Argentina, S.A. (ADR) Cl.B. 101,000 459,665
Telefonica de Argentina, S.A. Cl.B. 14,800 366,300
Transportadora de Gas del Sur, S.A. Cl.B.* 56,000 114,829
YPF, S.A. Cl.D. (ADR) 14,300 269,913
2,392,037
AUSTRALIA-2.5%
Commonwealth Bank of Australia 49,937 331,147
Commonwealth Serum Lab, Ltd.* 528,000 1,107,065
Tab Corporation Holdings, Ltd. 450,000 933,926
2,372,138
AUSTRIA-5.7%
Austria Mikro Systeme International AG 10,755 1,465,349
Boehler-Uddeholm* 5,000 346,533
Burgenland Holdings AG 5,000 171,724
Flughafen Wein AG 10,000 532,654
OMV AG 9,000 1,039,292
VA Technologie AG*(c) 13,800 1,729,808
5,285,360
BELGIUM-0.6%
Arbed, S.A.* 4,000 576,617
BOTSWANA-0.4%
Sechaba Investment Trust Ltd. 475,000 353,958
BRAZIL-1.9%
Celese PN 170,000 120,042
Centrais Electricas Brasileiras
(Eletrobras), S.A. 1,034,739 269,785
(ADR) 15,000 199,688
Companhia Paulista de Forca e Luzh* 3,600,000 $180,293
Companhia Siderurgica de
Tubarao-CST (ADR)(b) 1,500 44,438
Companhia Siderurgica Nacional CSN 10,000,000 228,028
Light Servicios de Electricidad, S.A. 2,000,000 630,092
Telecomunicacoes de Sao Paulo, S.A.
ON-Telep 870,000 110,581
1,782,947
CANADA-1.6%
Alberta Energy Co., Ltd. 37,000 552,298
Nova Scotia Power, Inc. 30,000 251,211
Petro Canada 70,000 662,613
1,466,122
CZECH REPUBLIC-0.5%
Ceske Energeticke Zavody (GDS)(b)* 2,000 72,299
Elektrarny Opatovice 228 25,137
Prague Brewery A.S. 275 14,362
Tabak A.S.* 200 28,085
Vodni Stavby Praha A.S. 6,000 301,550
441,433
DENMARK-2.4%
Copenhagen Airport 8,500 653,438
Tele Danmark, A/S Series B*(c) 28,300 1,572,697
2,226,135
FINLAND-4.0%
Finnair OY Series A 69,600 461,480
Kemira OY 53,160 442,152
Rautaruukki OY Series K 82,000 576,360
Unitas Bank Ltd. Cl.A 350,000 1,131,633
Valmet Corp. Series A(c) 50,000 1,130,462
3,742,087
FRANCE-8.9%
Allevard Industries 2,000 149,239
Assurance Generale de France 32,400 1,037,869
Banque Nationale de Paris 9 434
Credit Local de France 4,112 381,427
8
ALLIANCE WORLDWIDE PRIVATIZATION FUND
- -------------------------------------------------------------------------------
COMPANY SHARES U.S. $VALUE
- -----------------------------------------------------------------------
Eramet 7,000 $ 499,253
Renault, S.A.(c) 26,000 814,635
Roussel-Uclaf 5,000 780,211
Seita 75,225 2,260,820
Societe Nationale Elf Aquitaine 14,604 1,079,213
Total Francais, S.A. Cl.B. 13,500 812,574
Ugine, S.A.(c) 7,000 492,038
8,307,713
GERMANY-4.7%
Bankgesellschaft Berlin 1,925 509,490
DEPFA Bank 900 457,533
Deutsche Lufthansa A.G. (c)* 9,750 1,410,131
I.V.G. (c) 1,800 671,656
Viag A.G. 3,500 1,381,422
4,430,232
GHANA-0.7%
Ashanti Goldfields Co., Ltd. (ADR)(b)* 30,000 697,500
GREECE-0.5%
Commercial Bank of Greece 4,200 179,170
Hellenic Sugar 17,900 270,584
449,754
HONG KONG-3.5%
Beiren Printing Machinery, Ltd. 64,000 13,150
Champion Technology 690,733 62,487
Citic Pacific, Ltd. 296,000 742,123
Consolidated Electric Power 203,000 470,916
Harbin Power Equipment Co. Ltd. 250,000 79,965
Hopewell Holdings 1,047,256 893,263
Hutchison Whampoa, Ltd. 46,000 222,932
Yizheng Chemical Fibre Co.* 2,345,400 818,395
3,303,231
HUNGARY-1.1%
Danubius Hotel and Spa 12,450 121,507
Gideon Richter Vegyeszeti Gyar 6,650 110,333
Magyar Olaj-es Gazipare Reszvenytar 4,500 418,141
Pannonplast Plastic Industries 6,900 70,148
Primagaz Hungaria Co. 7,750 182,790
Zalakeremia 6,300 125,534
1,028,453
INDONESIA-1.0%
PT Indosat* 250,000 948,586
IRELAND-1.1%
Greencore Plc. 38,000 287,642
Irish Life Plc. 225,328 756,827
1,044,469
ISRAEL-0.6%
Bank Hapoalim 53,500 84,141
Bank Leumi 70,371 83,007
Bezeq, Ltd. 86,500 218,431
Tadiran, Ltd. 7,500 143,438
529,017
ITALY-3.2%
I.N.A.(c) 880,000 1,184,439
Instituto Mobiliare Italiano S.p.A.(c) 140,000 857,373
Telecom Italia S.p.A. 120,000 325,598
Di Risp* 305,000 645,630
3,013,040
JAPAN-3.1%
DDI Corp 1 8,023
East Japan Railway Co. 423 2,171,022
Nippon Telegraph & Telephone Corp. 85 712,052
2,891,097
JORDAN-0.1%
Arab Potash Co.(a) 11,100 83,330
KAZAKHSTAN-0.3%
Bakyrchik Gold 105,450 296,964
MALAYSIA-0.6%
Aokam Perdana Berhad 62,000 153,856
Ekran Berhad 79,000 243,027
Telekom Malaysia 26,000 197,293
594,176
9
PORTFOLIO OF INVESTMENTS (CONTINUED) ALLIANCE WORLDWIDE PRIVATIZATION FUND
- -------------------------------------------------------------------------------
COMPANY SHARES U.S. $VALUE
- -----------------------------------------------------------------------
MEXICO-1.7%
Banpais, S.A. (ADR)*(a) 22,000 $ 20,624
Consorcio Grupo Dina 'A', S.A. de C.V. (ADR) 4,000 12,500
Consorcio Grupo Dina 'L',
S.A. de C.V. (ADR) 4,420 8,840
S.A. de C.V. 8,000 4,096
GBM Atlantico (ADR) (b) 8,000 20,000
Grupo Financiero Banamex Accival, S.A. de C.V.
Cl.B 50,000 76,800
Cl.L 2,500 3,800
Grupo Financiero Bancomer, S.A. de C.V.
Cl.B 530,000 155,184
Cl.L 19,630 5,182
Grupo Financiero Bancrecer,
S.A. de C.V.
Cl.B 120,000 27,840
Cl.L 16,014 3,869
Grupo Financiero Banorte, S.A. de C.V. Cl.B 141,000 168,298
Grupo Mexicano de Desarrollo, S.A. de C.V.
(ADR) Cl.B.* 29,000 112,375
Groupo Profesional Planeacion Y Proyectos, S.A.
Cl.B 9,000 50,688
Telefonos de Mexico, S.A. (ADR) Cl.L 30,900 915,413
1,585,509
NETHERLANDS-3.8%
E.V.C. International N.V. 25,000 1,165,321
KLM Royal Dutch Air Lines N.V. (c). 40,000 1,298,961
Royal PTT Nederland N.V.*(c) 29,131 1,047,560
3,511,842
NEW ZEALAND-1.6%
Air New Zealand, Ltd. 88,000 255,921
Energy Direct Corp., Ltd. 269,625 356,911
Telecom Corporation of New Zealand, Ltd. 182,000 $681,386
Trustpower, Ltd. 216,000 200,726
1,494,944
NORWAY-1.2%
Christiana Bank OG Kreditkasse 250,000 580,106
Den Norske Bank 195,000 528,423
1,108,529
PAKISTAN-1.0%
Hub Power Co.(GDR) 41,500 607,145
Pakistan Telecom (GDR) 3,654 370,881
978,026
PEOPLES REPUBLIC OF CHINA-0.1%
Tsingtao Brewery Co., Ltd. 82,000 32,057
PERU-1.6%
Cementos Norte Pacasmayo Private Placement (a) 40,000 104,270
Cl. T 45,000 129,843
Explosivos, S.A. Cl.C. 55,000 271,910
Telefonica de Peru, S.A. Cl B. 551,331 941,599
1,447,622
PHILIPPINES-1.8%
First Philippine Holdings Corp. Series B 181,599 487,061
International Container
Terminal Services, Inc.* 286,250 198,940
Manila Electric Co. Cl.B. 123,000 987,275
Philippine National Bank 1,404 16,354
1,689,630
POLAND-1.1%
Bank Przemyslowo Handlowy 8,000 276,805
Bank Rozwoju Eksportu 10,000 160,188
Bank Slaski 670 40,068
Elektrim, S.A.* 51,300 180,788
Polifarb Cieszyn 14,875 81,968
Polifarb Wroclaw 31,100 98,973
Vistula, S.A.* 12,200 63,580
Wielkpolski Bank Kredytowy 42,049 102,383
1,004,753
10
ALLIANCE WORLDWIDE PRIVATIZATION FUND
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COMPANY SHARES U.S. $VALUE
- -----------------------------------------------------------------------
PORTUGAL-1.6%
Mundial Confianca 18,000 $ 157,665
Portucel Industrial Empresa* 101,300 724,400
Portugal Telecom, S.A.* 13,000 249,089
Televisao Independiente(a) 60,000 369,527
1,500,681
RUSSIA-0.2%
Sun Brewing (GDR)(b) 24,000 228,000
SINGAPORE-1.3%
Developement Bank of Singapore, Ltd. 91,000 1,035,349
Singapore Airlines, Ltd. 23,000 212,308
1,247,657
SLOVAKIA-0.3%
Nafta S.A.* 3,333 268,753
SOUTH AFRICA-0.8%
Iscor 620,100 704,301
SOUTH KOREA-1.3%
Korea Mobile Telecom Corp.*(a) 1,260 1,185,987
SPAIN-2.4%
Argentaria Bancaria de Espana 12,000 443,525
Endesa 14,500 716,165
Repsol, S.A.(c) 35,500 1,117,114
2,276,804
SWEDEN-3.2%
AssiDoman A.B.(c) 18,050 387,951
Celsius Ondustries Cl.B. 18,000 273,162
Pharmacia Series B.(c) 83,000 1,801,028
Stadshypotek 34,606 513,287
2,975,428
THAILAND-2.0%
Electricity Generating Public of Thailand 60,000 181,082
Industrial Finance Corporation
of Thailand (The)* 496,000 1,306,056
Thai Airways International, Ltd. 168,000 374,316
1,861,454
TURKEY-1.4%
Eregli Demir Ve Celik Fabrikalari T.A.S. 2,741,750 353,454
Petkim* 253,000 226,021
Tofas Turk Otomobile
Fabrikasi 190,000 167,590
(GDR) 20,000 85,000
Tupras Turkiye Petrol Rafinerileri A.S. 225,000 53,432
Turk Hava Yollari A.O.* 1,435,000 256,395
Usas Cl.B. 26,000 141,129
1,283,021
UNITED KINGDOM-7.3%
British Gas Plc.(c) 290,000 1,335,766
East Midlands Electric 12,320 125,745
London Electricity 18,500 188,969
National Express Group Plc. 72,500 424,492
National Power Plc. 60,000 425,288
Partially paid 10,000 27,525
Northern Ireland Electricity Plc.(c) 130,000 748,748
Northwest Water 45,500 401,780
Norweb Plc. 25,000 269,285
Powergen Plc. partially paid 8,000 24,375
RJB Mining(c) 179,152 1,084,576
Scottish Hydro Electric 66,000 334,980
Scottish Power Corp. 65,000 334,558
Southern Water Plc. 31,000 297,168
South Western Electricity 18,500 195,739
Stagecoach Holdings Plc. 60,500 207,918
Wessex Water Plc. 79,546 375,888
6,802,800
Total Common Stocks (cost $82,473,382) 81,444,194
PREFERRED STOCKS-4.9%
BRAZIL-3.6%
Acesita Acos Especiais
Itabira* 13,560,000 100,908
rights, 12/31/95* 1,762,800 13,118
Bardella, S.A. 400 62,140
Centrais Eletricas de Goias 8,500,000 396,143
11
PORTFOLIO OF INVESTMENTS (CONTINUED) ALLIANCE WORLDWIDE PRIVATIZATION FUND
- -------------------------------------------------------------------------------
COMPANY SHARES U.S. $VALUE
- -----------------------------------------------------------------------
CESP-Companhia Energetica de Sao Paulo* 3,453,930 $ 136,581
Companhia Vale de Rio Doce PN 4,000,000 604,020
Companhia Siderurgica Paulista 6,000 9,973
Emaq Verolme Estal PN 750,000 3,251
Fosfertil Fertiliz 25,000,000 94,785
Marcopolo, S.A., Cl.B. 300,000 50,510
Metalurgica Gerdau, S.A. 3,900,000 148,289
Petroleo Brasileiro (Petrobras Distributor)
S.A. 3,900,000 134,731
Petroleo Brasileiro (Petrobras), S.A. 600,000 50,842
Salegma Cl. B. 9,223,163 73,044
Telecomunicacoes Brasileiras
(Telebras), S.A.* 3,250,000 106,980
(ADR)* 17,500 584,063
Telecomunicacoes de Sao Paulo (Telesp), S.A. 1,800,000 222,903
Telecomunicacoes do Parana, S.A. TELEPAR 200,000 55,622
Uniao Sider Minas Gerais-Usiminas* 125,000,000 141,228
Gerais-Usiminas (ADR)*(b) 33,800 380,250
3,369,381
SHARES OR
PRINCIPAL
AMOUNT
COMPANY (000) U.S. $VALUE
- -----------------------------------------------------------------------
RUSSIA-1.3%
RNGS Holdings, Ltd. 8.00%, redeemable pfd. (a) 3,200 $ 1,200,000
Total Preferred Stocks (cost $4,818,536) 4,569,381
CONVERTIBLE BONDS-0.3%
COLUMBIA-0.1%
Banco de Columbia 5.20%, 2/01/99 (b) 150 114,000
PERU-0.2%
International Financial
Holdings, Inc. 6.50%, 8/01/99 (b) 150 160,500
Total Convertible Bonds (cost $304,500) 274,500
TIME DEPOSIT-5.8%
Sumitomo Bank 6.3125%, 7/03/95
(cost $5,400,000) 5,400 5,400,000
TOTAL INVESTMENTS-98.3%
(cost $92,996,418) 91,688,075
Other assets less liabilities-1.7% 1,543,581
NET ASSETS-100% $93,231,656
* Non-income producing security.
(a) Valued at fair market value (see Notes A & G).
(b) Securities are 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 June 30, 1995
these securities amounted to $1,716,987 or 1.8% of net assets.
(c) Securities segregated to collateralize forward exchange contracts with an
aggregate market value of approximately $18,684,943.
Glossary of Terms:
ADR- American depository receipt.
GDR- Global depository receipt.
GDS- Global depository security.
See notes to financial statements.
12
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1995 ALLIANCE WORLDWIDE PRIVATIZATION FUND
- -------------------------------------------------------------------------------
ASSETS
Investments in securities, at value (cost $92,996,418) $91,688,075
Cash, at value (cost $1,251,456) 1,252,493
Receivable for securities sold 890,370
Dividends and interest receivable 708,111
Receivable for capital stock sold 320,865
Unrealized appreciation of forward exchange currency contracts 11,196
Deferred organization expense 173,526
Total assets 95,044,636
LIABILITIES
Payable for investment securities purchased 1,197,389
Payable for capital stock redeemed 258,846
Advisory fee payable 77,099
Distribution fee payable 69,189
Accrued expenses 210,457
Total liabilities 1,812,980
NET ASSETS $93,231,656
COMPOSITION OF NET ASSETS
Capital stock, at par $9,219
Additional paid-in capital 96,956,424
Accumulated net investment loss (724,301)
Accumulated net realized loss on investments and
foreign currency transactions (1,716,644)
Net unrealized depreciation of investments and
foreign currency denominated assets and liabilities (1,293,042)
$93,231,656
CALCULATION OF MAXIMUM OFFERING PRICE
CLASS A SHARES
Net asset value and redemption price per share
($13,534,661 / 1,329,496 shares of capital stock issued and
outstanding) $10.18
Sales charge-4.25% of public offering price .45
Maximum offering price $10.63
CLASS B SHARES
Net asset value and offering price per share
($79,358,915 / 7,856,430 shares of capital stock issued and
outstanding) $10.10
CLASS C SHARES
Net asset value and offering price per share
($338,080 / 33,457 shares of capital stock issued and
outstanding) $10.10
See notes to financial statements.
13
STATEMENT OF OPERATIONS
YEAR ENDED JUNE 30, 1995 ALLIANCE WORLDWIDE PRIVATIZATION FUND
- -------------------------------------------------------------------------------
INVESTMENT INCOME
Dividends (net of foreign taxes withheld of $194,347) $1,873,314
Interest 667,840 $2,541,154
EXPENSES
Advisory fee 779,327
Distribution fee-Class A 35,989
Distribution fee-Class B 658,665
Distribution fee-Class C 669
Custodian 295,570
Transfer Agency 214,029
Administrative 157,289
Audit and Legal 103,950
Registration 71,960
Amortization of organization expenses 43,176
Printing 39,617
Miscellaneous 33,549
Directors' Fee 29,493
Total expenses 2,463,283
Net investment income 77,871
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY
Net realized loss on investments (1,717,094)
Net realized loss on foreign currency transactions (715,127)
Net change in unrealized depreciation of:
Investments (730,195)
Foreign currency denominated assets and liabilities 21,660
Net loss on investments and foreign currency transactions (3,140,756)
NET DECREASE IN NET ASSETS FROM OPERATIONS $(3,062,885)
See notes to financial statements.
14
STATEMENT OF CHANGES IN NET ASSETS ALLIANCE WORLDWIDE PRIVATIZATION FUND
- -------------------------------------------------------------------------------
YEAR ENDED JUNE 2,1994*
JUNE 30, TO
1995 JUNE 30,1994
------------ ------------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income $77,871 $8,658
Net realized loss on investments and
foreign currency transactions (2,432,221) (95,253)
Net unrealized depreciation of investments and
foreign currency denominated assets and liabilities (708,535) (584,507)
Net decrease in net assets from operations (3,062,885) (671,102)
CAPITAL STOCK TRANSACTIONS
Net increase 68,445,326 28,419,317
Total increase 65,382,441 27,748,215
NET ASSETS
Beginning of period 27,849,215 101,000
End of year $93,231,656 $27,849,215
* Commencement of operations.
See notes to financial statements.
15
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1995 ALLIANCE WORLDWIDE PRIVATIZATION FUND
- -------------------------------------------------------------------------------
NOTE A: SIGNIFICANT ACCOUNTING POLICIES
Alliance Worldwide Privatization Fund, Inc. (the "Fund"), organized as a
Maryland corporation on March 16, 1994, is registered under the Investment
Company Act of 1940 as a non-diversified, open-end management investment
company. The Fund had no operations other than the sale to Alliance Capital
Management L.P. (the "Adviser") of 10,000 shares of Class A common stock and
100 shares of Class B common stock for the aggregate amount of $101,000 on
April 6, 1994. Class A and B shares commenced operations on June 2, 1994. Class
C commenced operations on February 8, 1995. The Fund offers Class A, Class B
and Class C shares. Class A shares are sold with an initial sales charge of up
to 4.25%. Class B shares are sold with a contingent deferred sales charge which
declines from 4.00% to zero depending on the period of time the shares are
held. Class B shares will automatically convert to Class A shares eight years
after the end of the calendar month of purchase. Class C shares are sold
without an initial or contingent deferred sales charge. All three classes of
shares have identical voting, dividend, liquidation and other rights, and the
same terms and conditions, except that each class bears different distribution
expenses and has exclusive voting rights with respect to its distribution plan.
The following is a summary of significant accounting policies followed by the
Fund.
1. SECURITY VALUATION
Portfolio securities traded on a national securities exchange for which market
quotations are readily available are valued at the last quoted sales price on
that exchange prior to the time when assets are valued. Securities listed or
traded on certain foreign exchanges whose operations are similar to the U.S.
over-the-counter market are valued at the price within the limits of the latest
available current bid and asked price deemed best to reflect fair value.
Securities which mature in 60 days or less are valued at amortized cost which
approximates market value. Restricted and illiquid securities are valued at
fair value as determined by the Board of Directors. In determining fair value,
consideration is given to cost, operating and other financial data.
2. ORGANIZATION EXPENSES
Organization expenses of $220,000 have been deferred and are being amortized on
a straight-line basis through June, 1999.
3. CURRENCY TRANSLATION
Assets and liabilities denominated in foreign currencies and commitments under
forward exchange currency contracts are translated into U.S. dollars at the
mean of the quoted bid and asked price of such currencies against the U.S.
dollar.
Purchases and sales of portfolio securities are translated at the rates of
exchange prevailing when such securities were acquired or sold. Income and
expenses are translated at rates of exchange prevailing when accrued.
Net realized loss on foreign currency transactions of $715,127 represents
foreign exchange gains and losses from the holding of foreign currency
contracts, foreign currencies, exchange gains or losses realized between the
trade and settlement dates on security transactions, and the difference between
the amounts of dividends, interest and foreign taxes receivable 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 year end exchange rates are reflected as a component
of net unrealized depreciation of investments and foreign currency denominated
assets and liabilities.
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.
5. INVESTMENT INCOME AND SECURITY TRANSACTIONS
Dividend income is recorded on the ex-dividend date. Interest income is accrued
daily. 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 on short-term securities as adjustments
to interest income.
16
ALLIANCE WORLDWIDE PRIVATIZATION FUND
- -------------------------------------------------------------------------------
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 tax regulations, which may differ from generally accepted
accounting principles.
7. ACCOUNTING FOR DISTRIBUTIONS TO SHAREHOLDERS
The Fund follows Statement of Position 93-2 Determination, Disclosure, and
Financial Statement Presentation of Income, Capital Gain, and Return of Capital
Distributions by Investment Companies. As a result, the Fund changed the
classification of distributions to shareholders to better disclose the
differences between financial statements amounts and distributions determined
in accordance with income tax regulations. As of June 30, 1995, the cumulative
effect of such differences totaling $810,830 was reclassified from accumulated
net investment loss to accumulated net realized loss on investments and foreign
currency transactions.
NOTE B: ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under an investment advisory agreement, the Fund pays its Adviser, Alliance
Capital Management, L.P., (the "Adviser"), a fee at an annual rate of 1% of the
Fund's average daily net assets. Such fee is accrued daily and paid monthly.
The Adviser has agreed, under the terms of the advisory agreement, to reimburse
the Fund to the extent that its aggregate expenses (exclusive of interest,
taxes, brokerage, distribution fee, extraordinary expenses and certain other
expenses) exceed the limits prescribed by any state in which the Fund's shares
are qualified for sale. The Fund believes that the most restrictive expense
ratio limitation currently 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 reimbursement was required for the year ended June 30, 1995.
The Fund compensates Alliance Fund Services, Inc. (a wholly-owned subsidiary of
the Adviser) under a Transfer Agency Agreement for providing personnel and
facilities to perform transfer agency services for the Fund.
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 $7,978 from the sale of Class A shares and $169,153
in contingent deferred sales charges imposed upon redemptions by shareholders
of Class B for the year ended June 30, 1995.
Brokerage commissions paid on securities transactions for the year ended June
30, 1995, amounted to $279,442, none of which was paid to brokers utilizing the
services of the Pershing Division of Donaldson, Lufkin & Jenrette Securities
Corp., an affiliate of the Adviser.
NOTE C: DISTRIBUTION SERVICES AGREEMENT
The Fund has adopted a Distribution Services Agreement (the "Agreement")
pursuant to Rule 12b-1 under the Investment Company Act of 1940. Under the
Agreement, the Fund pays 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 estimated amount of $138,826 and $569 for Class B
and 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.
17
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
ALLIANCE WORLDWIDE PRIVATIZATION FUND
- -------------------------------------------------------------------------------
NOTE D: INVESTMENT TRANSACTIONS
Purchases and sales of investment securities (excluding short-term investments)
aggregated $93,699,964 and $23,369,790, respectively, for the year ended June
30, 1995. There were no purchases or sales of U.S. Government and government
agency obligations for the year ended June 30, 1995. At June 30, 1995, the cost
of securities for federal income tax purposes was $93,434,316.
Accordingly, gross unrealized appreciation of investments was $6,635,033 and
gross unrealized depreciation of investments was $8,381,274, resulting in net
unrealized depreciation of $1,746,241.
The Fund enters into forward exchange currency contracts in order to hedge its
exposure to changes in foreign currency exchange rates on its foreign portfolio
holdings and to hedge certain firm purchase and sale commitments denominated in
foreign currencies. A forward exchange currency contract is a commitment to
purchase or sell a foreign currency at a future date at a negotiated forward
rate. The gain or loss arising from the difference between the original
contracts and the closing of such contracts is included in realized gains or
losses on foreign currency transactions. Fluctuations in the value of forward
exchange currency contracts are recorded for financial reporting purposes as
unrealized gains or losses by the Fund.
The Fund's custodian will place and maintain cash not available for investment
or securities in a separate account of the Fund having a value equal to the
aggregate amount of the Fund's commitments under forward exchange currency
contracts entered into with respect to position hedges. Risks may arise from
the potential of a counterparty to meet the terms of a contract and from
unanticipated movements in the value of a foreign currency relative to the U.S.
dollar. The face or contract amount, in U.S. dollars, as reflected in the
following table, reflects the total exposure the Fund has in that particular
currency contract.
At June 30, 1995, the Fund had outstanding forward exchange currency contracts,
as follows:
CONTRACT COST ON U.S.$ UNREALIZED
FOREIGN CURRENCY AMOUNT ORIGINATION CURRENT APPRECIATION
SALE CONTRACTS (000) DATE VALUE (DEPRECIATION)
- ------------------- ---------- ----------- ---------- --------------
Austrian Schilling,
expiring 7/26/95 12,146 $1,250,324 $1,250,035 289
Belgian Franc,
expiring 7/31/95 4,439 155,676 156,246 (570)
Danish Krone,
expiring 7/26/95 2,257 417,227 417,967 (740)
Deutsche Marks,
expiring 7/26/95 1,440 1,042,041 1,042,304 (263)
Dutch Guilder,
expiring 7/26/95 1,369 885,627 884,911 716
Finnish Markka,
expiring, 7/26/95 4,407 1,032,663 1,032,523 140
French Francs,
expiring 7/26/95 10,239 2,108,615 2,109,107 (492)
Italian Lira,
expiring 7/26/95 1,365,680 835,943 833,271 2,672
Irish Punt,
expiring 7/26/95 157 256,067 256,475 (408)
Norwegian Krone,
expiring 7/26/95 1,926 312,259 312,532 (273)
Spanish Peseta,
expiring 7/26/95 76,056 629,811 626,841 2,970
Swedish Krona,
expiring 7/26/95 6,677 922,584 915,429 7,155
$11,196
18
ALLIANCE WORLDWIDE PRIVATIZATION FUND
- -------------------------------------------------------------------------------
NOTE E: CAPITAL STOCK
There are 12,000,000,000 shares of $0.001 par value capital stock authorized,
divided into four classes, designated Class A, Class B, Class C and Class D
shares. Currently only Class A, Class B and Class C shares are outstanding.
Each class consists of 3,000,000,000 authorized shares.
Transactions in capital stock were as follows:
SHARES AMOUNT
-------------------------- ----------------------------
JUNE 2,1994* JUNE 2,1994*
YEAR ENDED TO YEAR ENDED TO
JUNE 30,1995 JUNE 30,1994 JUNE 30,1995 JUNE 30,1994
------------ ------------ ------------- -------------
CLASS A
Shares sold 1,237,218 505,529 $13,013,117 $ 5,040,282
Shares redeemed (419,714) (3,537) (4,175,651) (35,194)
Net increase 817,504 501,992 $ 8,837,466 $ 5,005,088
CLASS B
Shares sold 6,976,991 2,435,492 $73,736,087 $24,287,396
Shares redeemed (1,467,380) (88,773) (14,453,504) (873,167)
Net increase 5,509,611 2,346,719 $59,282,583 $23,414,229
SHARES AMOUNT
------------ ------------
FEBRUARY 8, FEBRUARY 8,
1995** TO 1995** TO
JUNE 30,1995 JUNE 30,1995
------------ ------------
CLASS C
Shares sold 33,457 $325,277
Shares redeemed -0- -0-
Net increase 33,457 $325,277
NOTE F: CONCENTRATION OF RISK
Investing in securities of foreign companies involves special risks which
include revaluation of currency and future adverse political and economic
developments. Moreover, securities of many foreign companies and their markets
may be less liquid and their prices more volatile than those of comparable U.S.
companies. The Fund invests in securities issued by enterprises that are
undergoing, or that have undergone, privatization. Privatization is a process
through which the ownership and control of companies or assets changes in whole
or in part from the public sector to the private sector. Through privatization
a government or state divests or transfers all or a portion of its interest in
a state enterprise to some form of private ownership. Therefore, the Fund is
susceptible to the government re-nationalization of these enterprises and
economic factors adversely affecting the economics of these countries. In
addition, these securities created through privatization may be less liquid and
subject to greater volatility than securities of more developed countries.
* Commencement of operations.
** Commencement of distributions.
19
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
ALLIANCE WORLDWIDE PRIVATIZATION FUND
- -------------------------------------------------------------------------------
NOTE G: FAIR VALUED SECURITIES
DATE
SECURITY ACQUIRED U.S. $ COST
- -------- --------------- -----------
Arab Potash Co. 10/05/94 96,508
Banpais, S.A. 6/30/94-9/19/94 186,975
Cementos Norte Pacasmayo 6/23/95 103,896
Korea Mobile Telecom Corp. 2/17/95 992,708
RNGS Holdings, Ltd. 8% pfd. 10/18/94 997,500
Televisao Independiente 8/16/94-1/18/95 431,913
The securities shown above have been valued at fair value in accordance with
the procedures described in Note A. The value of these securities at June 30,
1995 was $2,963,738 representing 3.2% of net assets.
NOTE H: FOREIGN TAX CREDIT
The Fund has elected to give the benefit to its shareholders of foreign taxes
that have been paid and/or withheld. For the year ended June 30, 1995, this
amounted to $194,347. Although the Fund has made the election required to make
this credit available, the amount of allowable tax credit is subject to
limitations under the Internal Revenue Code.
A notification reflecting the per share amount to be used by taxpayers on their
federal income tax return will be mailed to shareholders in January 1996.
NOTE I: TAXES
Capital and currency losses incurred after October 31 within the Fund's fiscal
year are deemed to arise on the first business day of the following fiscal
year. The Fund incurred and elected to defer post October currency losses of
$548,726 and capital losses of $1,682,864.
NOTE J: SUBSEQUENT EVENT
Alliance Worldwide Privatization Fund's Board of Directors has approved the
acquisition by the Fund of the assets and certain liabilities of The Global
Privatization Fund, Inc. ('GPF') in exchange for Class A shares of the Fund. It
is anticipated that if the transaction is approved by the shareholders of GPF
and certain other conditions are satisfied, it would close by the end of 1995.
20
FINANCIAL HIGHLIGHTS ALLIANCE WORLDWIDE PRIVATIZATION FUND
- -------------------------------------------------------------------------------
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT THE PERIOD
<TABLE>
<CAPTION>
CLASS A CLASS B CLASS C
------------------------ ----------------------- -----------
FEBRUARY 8,
JUNE 2, 1994* JUNE 2, 1994* 1995**
YEAR ENDED TO YEAR ENDED TO TO
JUNE 30, JUNE 30, JUNE 30, JUNE 30, JUNE 30,
1995 1994 1995 1994 1995
---------- ------------ -------- ------------ -----------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $9.75 $10.00 $9.74 $10.00 $9.53
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) .06 .01 .02 -0- .05
Net realized and unrealized gain (loss) on investments .37 (.26) .34 (.26) .52
Net increase (decrease) in net asset value from operations .43 (.25) .36 (.26) .57
Net asset value, end of period $10.18 $9.75 $10.10 $9.74 $10.10
TOTAL RETURN
Total investment return based on net asset value (a) 4.41% (2.50)% 3.70% (2.60)% 5.98%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $13,535 $4,990 $79,359 $22,859 $338
Ratio of expenses to average net assets 2.56% 2.75%(b) 3.27% 3.45%(b) 1.03%(b)
Ratio of net investment income to average net assets .66% 1.03%(b) .01% .33%(b) 1.04%(b)
Portfolio turnover rate 36% -0-% 36% -0-% 36%
</TABLE>
* Commencement of operations.
** Commencement of distributions.
(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 charges or contingent
deferred sales charges are 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.
21
REPORT OF INDEPENDENT ACCOUNTANTS ALLIANCE WORLDWIDE PRIVATIZATION FUND
- -------------------------------------------------------------------------------
TO THE BOARD OF DIRECTORS AND SHAREHOLDERS OF ALLIANCE WORLDWIDE PRIVATIZATION
FUND, INC.
In our opinion, the accompanying statement of assets and liabilities, including
the portfolio of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Alliance Worldwide Privatization
Fund, Inc. (the 'Fund') at June 30, 1995, the result of its operations for the
year then ended and the changes in its net assets and the financial highlights
for the year then ended and for the period June 2, 1994 (commencement of
operations) to June 30, 1994, in conformity with generally accepted accounting
principles. These financial statements and financial highlights (hereafter
referred to as 'financial statements') are the responsibility of the Fund's
management; our responsibility is to express an opinion on these financial
statements based on our audits. We conducted our audits of these financial
statements in accordance with generally accepted auditing standards which
require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at June 30, 1995 by correspondence with the
custodian and brokers, and the application of alternative auditing procedures
where confirmations from brokers were not received, provide a reasonable basis
for the opinion expressed above.
PRICE WATERHOUSE LLP
New York, New York
August 9, 1995
22
ALLIANCE WORLDWIDE PRIVATIZATION FUND
- -------------------------------------------------------------------------------
BOARD OF DIRECTORS
JOHN D. CARIFA, CHAIRMAN AND PRESIDENT
RUTH BLOCK (1)
DAVID H. DIEVLER
JOHN H. DOBKIN (1)
WILLIAM H. FOULK, JR. (1)
DR. JAMES M. HESTER (1)
CLIFFORD L. MICHEL (1)
ROBERT C. WHITE (1)
OFFICERS
MARK BREEDON, SENIOR VICE PRESIDENT
THOMAS BARDONG, VICE PRESIDENT
NICHOLAS CROSSLAND, VICE PRESIDENT
A. RAMA KRISHNA, VICE PRESIDENT
DAVID LUI, VICE PRESIDENT
ERIC N. PERKINS, VICE PRESIDENT
JEAN VAN DE WALLE, VICE PRESIDENT
EDMUND P. BERGAN, JR., SECRETARY
MARK D. GERSTEN, TREASURER & CHIEF FINANCIAL OFFICER
PATRICK J. FARRELL, CONTROLLER
CUSTODIAN
BROWN BROTHERS HARRIMAN & COMPANY
40 Water Street
Boston, MA 02109-3661
PRINCIPAL UNDERWRITER
ALLIANCE FUND DISTRIBUTORS, INC.
1345 Avenue of the Americas
New York, NY 10105
TRANSFER AGENT
ALLIANCE FUND SERVICES, INC.
P.O. Box 1520
Secaucus, NJ 07096-1520
Toll-Free 1-(800) 221-5672
INDEPENDENT ACCOUNTANTS
PRICE WATERHOUSE LLP
1177 Avenue of the Americas
New York, NY 10036-2798
LEGAL COUNSEL
SEWARD & KISSEL
One Battery Park Plaza
New York, NY 10004
(1) Member of the Audit Committee.
23
ALLIANCE WORLDWIDE PRIVATIZATION FUND, INC.
1345 Avenue of the Americas
New York, NY 10105
(800) 221-5672
AllianceCapital
Mutual funds without the Mystery.SM
THIS REPORT IS INTENDED SOLELY FOR DISTRIBUTION TO CURRENT SHAREHOLDERS
OF THE FUND.
R THESE REGISTERED SERVICE MARKS USED UNDER LICENSE FROM THE OWNER,
ALLIANCE CAPITAL MANAGEMENT L.P.
WWPAR
