<PAGE>
LETTER TO SHAREHOLDERS ALLIANCE WORLDWIDE PRIVATIZATION FUND
--------------------------------------------------------------------------------
February 10, 1995
Dear Shareholder:
With a few notable exceptions, the majority of the world's privatization
programs remain on schedule despite less than favorable current market
conditions. By the end of 1994, the volume of privatization deals had climbed
to a record total of $57 billion. Western Europe has maintained its position
as the leading area of privatization activity, accounting for approximately
53% of total volume; the remainder is divided roughly equally between the
Asia/Pacific region, Latin America and Eastern Europe. We currently estimate
the total market value of privatization issues at above $200 billion and
anticipate that it could more than double over the next three years.
Your Fund has been actively engaged in new initial public offerings (IPOs)
over recent months and in terms of securities allocations, we have been very
encouraged by the response Alliance has received from underwriters.
Importantly, there has been a significant number of new privatizations in
which we have declined to participate, most notably Japan Telecom, Japan
Tobacco in Tokyo and Huan Eng in China. We believe these transactions were
overpriced and their subsequent market performance reinforces our belief that
the ability to analyze privatization transactions and evaluate their
individual investment merits is extremely important in order to add value for
shareholders.
The recent shakeout in emerging markets following the Mexican financial
crisis in late December looks unlikely to result in a decline in the pace of
privatization in the developing markets area. In fact, part of the Mexican
government's commitment to potential lenders is the proposal to speed up the
privatization process.
PRIVATIZATION OUTLOOK
Your Fund's portfolio remains broadly exposed in terms of country, industry
and security. On an industry basis, telecommunications and power utilities
continue to dominate the new issue volume, although your Fund has no more
than 15% of its assets invested in any one industry.
In the context of rising growth rates outside of the U.S. and continued and
sustained rates of inflation, we believe the fundamental environment for
equities remains sound. Consequently we look forward to participating in
future privatization offerings, notably in the Middle East, Russia and
Africa, given attractive initial pricing.
Clearly some stabilization of the current malaise inflicting the world's
stock markets is a precondition for successful offerings this year. In this
regard, we remain optimistic. World growth is moving upwards and corporate
earnings remain strong. We see little evidence of a significant renewed burst
of inflation during 1995 as unit labor costs remain subdued. Consequently, we
anticipate an improved environment in the fixed income arena during the year
and a subsequent positive effect on equity values.
In this environment we anticipate privatization issues will continue to
outperform. The relatively strong financial performance of newly privatized
securities remains intact and the potential for cost cutting and price
improvement is good.
INVESTMENT RESULTS
For the six months ended December 31, 1994, Alliance Worldwide Privatization
Fund had total returns of +2.36% (Class A) and +2.05% (Class B), based on the
net asset value. This compares with a return of -0.79% for the unmanaged
Morgan Stanley EAFE index, a broad measure of stock performance in Europe,
Australia and the Far East. Additional investment results for your Fund
appear on page 2. We appreciate your investment in Alliance Worldwide
Privatization Fund and look forward to updating you on its performance in the
coming months.
Sincerely,
/s/ John D. Carifa
John D. Carifa
Chairman and President
/s/ Mark H. Breedon
Mark H. Breedon
Senior Vice President
1
<PAGE>
INVESTMENT RESULTS ALLIANCE WORLDWIDE PRIVATIZATION FUND
--------------------------------------------------------------------------------
TOTAL RETURN AS OF DECEMBER 31, 1994
<TABLE>
<CAPTION>
-------------------
CLASS A SHARES
-------------------
WITHOUT WITH
SALES SALES
CHARGE CHARGE
------- ------
<S> <C> <C>
* Since Inception* -0.20% -4.41%
<CAPTION>
-------------------
CLASS B SHARES
-------------------
WITHOUT WITH
SALES SALES
CHARGE CHARGE
------- ------
<S> <C> <C>
* Since Inception* -0.60% -4.58%
</TABLE>
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 3% contingent deferred sales charge (Class B). 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 for both classes.
2
<PAGE>
TEN LARGEST HOLDINGS
DECEMBER 31, 1994 (UNAUDITED) ALLIANCE WORLDWIDE PRIVATIZATION FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------
COMPANY U.S. $ VALUE PERCENT OF NET ASSETS
---------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Royal PTT Nederlands N.V.--Provides postal and
telecommunication services throughout
the Netherlands $2,022,256 2.1%
---------------------------------------------------------------------------------------------------------------
Tab Corporation Holdings, Ltd.--Provides pure
exposure to Victoria's (a province in Australia)
Gambling Industry through Gaming Machines 1,332,772 1.4
---------------------------------------------------------------------------------------------------------------
VA Technologie AG--Builds thermal and hydroelectric
power plants, offers mechanical and electrical
engineering system solutions and maintenance services 1,188,246 1.2
---------------------------------------------------------------------------------------------------------------
Pharmacia Series B--Researches, develops,
manufactures and sells pharmaceutical and other related
health care products 1,180,124 1.2
---------------------------------------------------------------------------------------------------------------
I.N.A.--Provides automobile liability, health,
transportation, and other general liability insurance except
non-life insurance 1,169,384 1.2
---------------------------------------------------------------------------------------------------------------
Ashanti Goldfields Co., Ltd.(ADR)--A Ghanaian goldmine
operator 1,144,800 1.2
---------------------------------------------------------------------------------------------------------------
Manila Electric Co. Cl. B--Distributes electricity for heat
and power 1,117,575 1.2
---------------------------------------------------------------------------------------------------------------
Viag A.G.--Provides electrical power and natural gas
services, aluminum and aluminum products, chemicals,
ceramics and glass and other services 1,084,115 1.1
---------------------------------------------------------------------------------------------------------------
RNGS Holdings, Ltd. 8%, pfd--Russian Oil & Gas
Construction. A Russian Government Trust Company,
successor to the former Soviet Union Oil & Gas
Construction Company 1,072,000 1.1
---------------------------------------------------------------------------------------------------------------
Nippon Telegraph & Telephone--Japan's largest
telecommunications company 1,069,754 1.1
---------------------------------------------------------------------------------------------------------------
$12,381,026 12.8%
---------------------------------------------------------------------------------------------------------------
</TABLE>
3
<PAGE>
INDUSTRY DIVERSIFICATION
DECEMBER 31, 1994 (UNAUDITED) ALLIANCE WORLDWIDE PRIVATIZATION FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------
U.S. $ VALUE PERCENT OF NET ASSETS
-----------------------------------------------------------------------------------------------
<S> <C> <C>
Aerospace & Defense $ 399,700 0.4%
-----------------------------------------------------------------------------------------------
Basic Industries 12,856,289 13.5
-----------------------------------------------------------------------------------------------
Capital Goods 1,764,069 1.9
-----------------------------------------------------------------------------------------------
Consumer Manufacturing 1,901,138 2.0
-----------------------------------------------------------------------------------------------
Consumer Services 6,755,142 7.1
-----------------------------------------------------------------------------------------------
Consumer Staples 796,353 0.8
-----------------------------------------------------------------------------------------------
Energy 5,466,459 5.7
-----------------------------------------------------------------------------------------------
Financial Services 12,381,353 13.0
-----------------------------------------------------------------------------------------------
Healthcare 2,868,394 3.0
-----------------------------------------------------------------------------------------------
Multi-Industry 5,241,924 5.5
-----------------------------------------------------------------------------------------------
Technology 2,911,776 3.1
-----------------------------------------------------------------------------------------------
Telephone Utilities 9,070,921 9.5
-----------------------------------------------------------------------------------------------
Transportation 1,543,917 1.6
-----------------------------------------------------------------------------------------------
Utilities 13,211,679 13.8
-----------------------------------------------------------------------------------------------
Total Investments* 77,169,114 80.9
-----------------------------------------------------------------------------------------------
Cash and receivables, net of liabilities 18,237,783 19.1
-----------------------------------------------------------------------------------------------
Net Assets $95,406,897 100.0%
-----------------------------------------------------------------------------------------------
</TABLE>
* Excludes short-term obligations.
4
<PAGE>
DISTRIBUTION OF PORTFOLIO BY COUNTRY
DECEMBER 31, 1994 (UNAUDITED) ALLIANCE WORLDWIDE PRIVATIZATION FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
PERCENT OF PORTFOLIO*
--------------------------------------------------------------------------------
<S> <C>
United Kingdom 8.7%
--------------------------------------------------------------------------------
France 8.0
--------------------------------------------------------------------------------
Brazil 7.5
--------------------------------------------------------------------------------
Netherlands 5.5
--------------------------------------------------------------------------------
Germany 4.3
--------------------------------------------------------------------------------
Hong Kong 4.1
--------------------------------------------------------------------------------
Singapore 3.8
--------------------------------------------------------------------------------
Sweden 3.7
--------------------------------------------------------------------------------
Italy 3.6
--------------------------------------------------------------------------------
Argentina 3.4
--------------------------------------------------------------------------------
Mexico 3.4
--------------------------------------------------------------------------------
Austria 3.3
--------------------------------------------------------------------------------
Finland 3.2
--------------------------------------------------------------------------------
Australia 3.2
--------------------------------------------------------------------------------
Philippines 2.9
--------------------------------------------------------------------------------
Japan 2.7
--------------------------------------------------------------------------------
Spain 2.5
--------------------------------------------------------------------------------
New Zealand 2.1
--------------------------------------------------------------------------------
Thailand 2.0
--------------------------------------------------------------------------------
Peru 1.9
--------------------------------------------------------------------------------
Russia 1.8
--------------------------------------------------------------------------------
Canada 1.5
--------------------------------------------------------------------------------
Denmark 1.5
--------------------------------------------------------------------------------
Ghana 1.5
--------------------------------------------------------------------------------
Malaysia 1.5
--------------------------------------------------------------------------------
Turkey 1.2
--------------------------------------------------------------------------------
Pakistan 1.2
--------------------------------------------------------------------------------
Indonesia 1.1
--------------------------------------------------------------------------------
Portugal 1.0
--------------------------------------------------------------------------------
Norway 1.0
--------------------------------------------------------------------------------
Hungary 0.9
--------------------------------------------------------------------------------
Poland 0.9
--------------------------------------------------------------------------------
Ireland 0.7
--------------------------------------------------------------------------------
South Africa 0.7
--------------------------------------------------------------------------------
Chile 0.7
--------------------------------------------------------------------------------
South Korea 0.6
--------------------------------------------------------------------------------
Kazakhstan 0.5
--------------------------------------------------------------------------------
Chec Republic 0.5
--------------------------------------------------------------------------------
Israel 0.4
--------------------------------------------------------------------------------
Peoples Republic of China 0.3
--------------------------------------------------------------------------------
Greece 0.3
--------------------------------------------------------------------------------
Jordan 0.2
--------------------------------------------------------------------------------
Columbia 0.2
--------------------------------------------------------------------------------
100.0%
--------------------------------------------------------------------------------
</TABLE>
* Excludes short-term obligations.
5
<PAGE>
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1994 (UNAUDITED) ALLIANCE WORLDWIDE PRIVATIZATION FUND
--------------------------------------------------------------------------------
<TABLE>
COMPANY SHARES VALUE
--------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS & OTHER INVESTMENTS--76.3%
ARGENTINA--2.8%
Central Costanera, S.A.............. 101,000 $ 267,836
Central Puerto, S.A.
(ADS)(b).......................... 5,000 122,500
Class B ............................ 13,000 64,346
Dycasa "B".......................... 46,285 187,445
Metrogas, S.A. (ADR)................ 22,700 229,838
Naviera Perez Companc, S.A.
CIA. Class B*..................... 115,000 473,776
Telecom Argentina, S.A.
(ADR) Class B .................... 101,000 494,876
Telefonica de Argentina, S.A.
Class B .......................... 3,900 392,205
Transportadora de Gas del
Sur, S.A. Class B*................ 56,000 105,274
YPF, S.A. Class D (ADR)........... 14,300 305,663
----------
2,643,759
----------
AUSTRALIA--2.5%
Commonwealth
Bank of Australia................. 48,000 295,835
Commonwealth Serum
Lab, Ltd.*........................ 428,000 802,973
Tab Corporation
Holdings, Ltd..................... 730,000 1,332,772
----------
2,431,580
----------
AUSTRIA--2.6%
Austria Mikro Systeme
International AG.................. 9,755 735,396
OMV AG*............................. 7,000 593,187
VA Technologie AG*.................. 11,800 1,188,246
----------
2,516,829
----------
BRAZIL--3.0%
Celesc PN........................... 170,000 160,577
Centrais Electricas Brasileiras
(Eletrobras), S.A................. 1,034,739 365,706
Companhia Paulista de Forca
e Luz*............................ 3,600,000 319,149
Compania Siderurgica de
Tubarao-CST (ADR)(b).............. 1,500 40,313
Companhia Siderurgica
Nacional CSN...................... 10,000,000 341,017
Companhia Vale
de Rio Doce PN.................... 4,000,000 765,958
Emaq Verolme Estal PN............... 750,000 6,959
Light Servicios de
Electricidad, S.A................. 2,000,000 $ 723,405
Telecomunicacoes
de Sao Paulo, S.A.
ON-Telep............................ 870,000 142,944
----------
2,866,028
----------
CANADA--1.2%
Alberta Energy Co., Ltd............. 29,000 372,127
Cameco Corp......................... 12,000 266,263
Nova Scotia Power, Inc.............. 30,000 240,598
Petro Canada........................ 36,000 291,926
----------
1,170,914
----------
CHEC REPUBLIC--0.4%
Ceske Energeticke
Zavody (GDS)(b)*.................. 2,000 96,220
Elektrarny Opatovice................ 228 32,559
Prague Brewery A.S.................. 275 28,888
Tabak A.S.*......................... 200 20,758
Vodni Stavby Praha A.S.............. 3,400 170,609
----------
349,034
----------
CHILE--0.6%
Chilgener, S.A. (ADS)............... 1,700 41,863
Chilquinta, S.A.
(ADS)(b).......................... 10,000 180,000
Compania de Telefonos
de Chile (ADR).................... 2,000 157,500
Distribuidora Chilectra
Metropolitan S.A. (ADR)........... 3,000 150,375
----------
529,738
----------
DENMARK--1.2%
Copenhagen Airport.................. 8,500 461,050
Tele Danmark, A/S.
Series B*......................... 13,000 660,265
----------
1,121,315
----------
FINLAND--2.6%
Kemira OY........................... 69,000 495,220
Outokumpu OY Series A............... 34,000 624,408
Rautaruukki OY Series K*............ 78,000 625,676
Valmet Corp. Series A*.............. 40,000 760,775
----------
2,506,079
----------
FRANCE--6.5%
Allevard Industries................. 2,000 161,019
Assurance Generale
de France......................... 15,400 611,272
</TABLE>
6
<PAGE>
ALLIANCE WORLDWIDE PRIVATIZATION FUND
--------------------------------------------------------------------------------
<TABLE>
COMPANY SHARES VALUE
--------------------------------------------------------------------------------
<S> <C> <C>
Banque Nationale de Paris........... 12,068 $ 554,708
Credit Local de France.............. 4,000 286,089
Eramet.............................. 14,400 930,163
Renault, S.A........................ 20,000 660,925
Rhone Poulenc, S.A.................. 22,000 510,354
Roussel-Uclaf....................... 5,000 598,202
Societe Nationale Elf
Aquitaine........................... 10,579 744,550
Total, S.A. Class B................. 4,500 261,355
Ugine, S.A.......................... 12,300 863,602
----------
6,182,239
----------
GERMANY--3.5%
Bankgesellschaft Berlin............. 1,400 324,964
DEPFA Bank.......................... 750 366,374
Deutsche Lufthansa A.G.*............ 7,750 967,718
I.V.G............................... 1,800 603,426
Viag A.G............................ 3,500 1,084,115
----------
3,346,597
----------
GHANA--1.2%
Ashanti Goldfields Co.,
Ltd. (ADR)(b)*.................... 53,000 1,144,800
----------
GREECE--0.2%
Commercial Bank of Greece........... 2,000 67,818
Hellenic Sugar...................... 9,000 143,789
----------
211,607
----------
HONG KONG--3.3%
Beiren Printing
Machinery, Ltd.................... 64,000 17,784
Champion Technology................. 674,554 140,351
Citic Pacific, Ltd.................. 296,000 713,461
Consolidated Electric
Power............................. 203,000 446,009
Harbin Power Equipment
Co. Ltd........................... 250,000 84,007
Hopewell Holdings................... 1,033,000 854,437
Hutchison Whampoa, Ltd.............. 46,000 186,081
Yizheng Chemical
Fibre Co.*........................ 1,960,000 728,271
----------
3,170,401
----------
HUNGARY--0.7%
Danubius Hotel and Spa.............. 12,450 $ 114,993
Gideon Richter G.I.C................ 12,000 186,001
Gideon Richter
Vegyeszeti Gyar................... 6,650 101,096
Magyar Olaj-es
Gazipare Reszvenytar.............. 525 58,931
Pannonplast Plastic
Industries........................ 6,900 76,232
Primagaz Hungaria Co................ 1,155 28,686
Zalakeremia......................... 6,300 116,934
----------
682,873
----------
INDONESIA--0.9%
PT Indosat*......................... 237,000 847,776
----------
IRELAND--0.5%
Greencore Plc....................... 38,000 235,359
Irish Life Plc...................... 95,000 279,488
----------
514,847
----------
ISRAEL--0.3%
Bank Hapoalim....................... 53,500 77,484
Bank Leumi.......................... 70,371 80,928
Bezeq, Ltd.......................... 86,500 151,077
Tadiran, Ltd........................ 1,050 21,919
----------
331,408
----------
ITALY--2.9%
I.N.A............................... 880,000 1,169,384
Instituto Mobiliare
Italiano S.P.A.................... 140,000 860,697
Telecom Italia S.p.A................ 120,000 312,263
Telecom Italia S.p.A.-Di Risp*...... 225,000 448,832
----------
2,791,176
----------
JAPAN--2.2%
East Japan Railway Co............... 203 1,014,490
Nippon Telegraph &
Telephone Corp...................... 121 1,069,754
----------
2,084,244
----------
JORDAN--0.2%
Arab Potash Co.(a).................. 11,100 151,363
----------
</TABLE>
7
<PAGE>
PORTFOLIO OF INVESTMENTS (cont.) ALLIANCE WORLDWIDE PRIVATIZATION FUND
--------------------------------------------------------------------------------
<TABLE>
COMPANY SHARES VALUE
--------------------------------------------------------------------------------
<S> <C> <C>
KAZAKHSTAN--0.4%
Bakyrchik Gold.............. 105,450 $ 404,256
----------
MALAYSIA--1.3%
Aokam Perdana Berhad........ 72,000 445,506
Ekran Berhad................ 85,000 251,322
Telekom Malaysia............ 26,000 176,150
Westmont Berhad............. 51,000 317,564
----------
1,190,542
----------
MEXICO--2.7%
Banpais, S.A. (ADR)*........ 22,000 77,000
Consorcio Grupo Dina "A",
S.A. de C.V. (ADR)........ 4,000 37,500
Consorcio Grupo Dina "L",
S.A. de C.V. (ADR)........ 4,420 33,150
S.A. de C.V. ............. 8,000 14,472
GBM Atlantico (ADS) (b)..... 8,000 86,000
Grupo Financiero Banamex
Accival, S.A. de C.V.
Class C ................... 50,000 143,718
Grupo Financiero Bancomer,
S.A. de C.V.
Class B................... 170,000 80,302
Class C................... 360,000 211,296
Grupo Financiero Bancrecer,
S.A. de C.V. Class B...... 136,014 114,826
Grupo Financiero Banorte, S.A.
de C.V. Class B........... 141,000 385,448
Grupo Mexicano de
Desarrollo, S.A.
de C.V. (ADS)............. 21,482 190,653
Class B................... 29,000 221,125
Grupo Profesional Planeacion
Y Proyectos, S.A. Class B. 9,000 85,387
Grupo Tribasa, S.A.
de C.V. (ADR)*............ 16,000 266,000
Telefonos de Mexico,
S.A. (ADR) Class L ....... 15,900 651,900
----------
2,598,777
----------
NETHERLANDS--4.4%
D.S.M. NV................... 9,000 715,049
E.V.C. International N.V. .. 19,000 841,800
KLM Royal Dutch Air
Lines N.V. ............... 26,000 638,134
Royal PTT Nederland
N.V.*..................... 60,000 2,022,256
----------
4,217,239
----------
NEW ZEALAND--1.7%
Air New Zealand, Ltd. ...... 88,000 $ 276,033
Energy Direct Corp., Ltd. .. 268,000 274,496
Infrastructure and Utilities
of New Zealand............ 100,846 60,683
Ports of Aukland............ 208,000 299,590
Telecom Corporation of
New Zealand, Ltd. ........ 182,000 594,187
Trustpower, Ltd. ........... 216,000 153,482
----------
1,658,471
----------
NORWAY--0.8%
Christiana Bank OG
Kreditkasse............... 180,000 369,904
Den Norske Bank............. 145,000 388,015
----------
757,919
----------
PAKISTAN--1.0%
Hub Power Co. (GDS)......... 41,500 430,770
Pakistan Telecom (GDR)...... 3,654 495,117
----------
925,887
----------
PEOPLES REPUBLIC
OF CHINA--0.2%
Maanshan Iron & Steel Co.,
Ltd. Series H............. 622,000 131,031
Tsingtao Brewery
Co., Ltd. ................ 123,000 67,560
----------
198,591
----------
PERU--1.4%
Explosivos, S.A. Class C.... 55,000 322,491
Norte Cimentos Pacasmayo.... 45,000 174,187
Peru Telefonos.............. 693,830 813,654
----------
1,310,332
----------
PHILIPPINES--2.3%
First Philippine Holdings Corp.
Series B.................. 151,333 606,440
International Container
Terminal Services, Inc.*... 366,000 297,803
Manila Electric Co. Class B. 82,000 1,117,575
Philippine Long Distance
Telephone Co. (ADR)....... 3,000 165,375
Philippine National Bank.... 1,404 19,706
----------
2,206,899
----------
</TABLE>
8
<PAGE>
ALLIANCE WORLDWIDE PRIVATIZATION FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COMPANY SHARES VALUE
--------------------------------------------------------------------------------
<S> <C> <C>
POLAND--0.7%
Bank Rozwoju Eksportu....... 100,000 $ 151,827
Bank Slaski................. 6,700 31,067
Elektrim, S.A.*............. 51,300 229,451
Polifarb Cieszyn............ 148,750 67,141
Polifarb Wroclaw............ 311,000 48,494
Vistula, S.A.*.............. 122,000 60,574
Wielkpolski Bank
Kredytowy................... 420,200 115,524
----------
704,078
----------
PORTUGAL--0.8%
Banco Portugues
do Atlantico.............. 16,000 202,365
Mundial Confianca........... 18,000 294,192
Televisao Independiente(a).. 43,000 308,148
----------
804,705
----------
RUSSIA--0.3%
Sun Brewing (GDR)(b)........ 24,000 300,000
----------
SINGAPORE--3.1%
Developement Bank of
Singapore, Ltd............ 91,000 936,535
Keppel Corp., Ltd.*......... 85,000 723,156
Singapore Airlines, Ltd..... 23,000 211,457
Singapore Press
Hldgs., Ltd............... 36,000 654,545
Van Der Horst, Ltd.*........ 139,000 427,253
----------
2,952,946
----------
SOUTH AFRICA--0.6%
Iscor....................... 503,000 578,104
----------
SOUTH KOREA--0.5%
Yukong, Ltd. (GDR).......... 28,565 435,616
----------
SPAIN--2.0%
Argentaria Bancaria
de Espana................. 12,000 425,242
Endesa...................... 14,500 590,385
Repsol, S.A................. 32,500 881,362
----------
1,896,989
----------
SWEDEN--3.0%
AssiDoman A.B.*............. 35,000 833,718
Celsius Ondustries Class B.. 18,000 399,700
Pharmacia Series B ......... 74,000 1,180,124
Stadshypotek................ 34,606 454,081
----------
2,867,623
----------
THAILAND--1.7%
Electricity Generating
Public of Thailand........ 60,000 $ 105,159
Industrial Finance
Corporation
of Thailand (The)*
Foreign................... 459,000 982,723
Local..................... 77,000 164,090
Thai Airways
International, Ltd........ 168,000 327,902
----------
1,579,874
----------
TURKEY--1.0%
Eregli Demir Ve Celic
Fabrikalari T.A.S......... 968,750 87,614
Petrol Ofisi A.S............ 367,000 130,395
Tofas Turk Otomobile
Fabrikasi................. 190,000 162,015
(ADR)..................... 20,000 85,000
Tupras Turkiye Petrol
Rafinerileri A.S.......... 90,000 33,720
Turk Hava Yollari A.O....... 1,435,000 300,348
Usas Class B ............... 17,000 116,408
----------
915,500
----------
UNITED KINGDOM--7.1%
British Airways Plc......... 184,000 1,027,853
British Gas Plc............. 160,000 786,131
British Steel............... 110,000 264,639
East Midlands Electric...... 12,320 162,126
London Electricity.......... 18,500 215,952
National Power Plc.......... 60,000 459,098
Northern Ireland
Electricity Plc............ 130,000 740,439
Northwest Water............. 35,500 301,073
Norweb Plc. ................ 25,000 336,421
RJB Mining.................. 179,152 933,492
Scottish Hydro Electric..... 66,000 337,704
Scottish Power Corp......... 50,000 273,831
Southern Water Plc.......... 31,000 280,856
South Western Electricity... 18,500 255,320
Wessex Water Plc............ 78,336 366,502
----------
6,741,437
----------
Total Common Stocks
(cost $77,461,499)........ 72,840,392
----------
</TABLE>
9
<PAGE>
PORTFOLIO OF INVESTMENTS (cont.) ALLIANCE WORLDWIDE PRIVATIZATION FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COMPANY SHARES VALUE
--------------------------------------------------------------------------------
<S> <C> <C>
PREFERRED STOCKS--4.2%
BRAZIL--3.1%
Acesita Acos Especiais
Itabira*.................. 2,000,000 $ 172,576
Bardella, S.A. ............. 400 111,112
Centrais Eletricas de
Goias..................... 6,650,000 330,142
CESP-Companhia Energetica
de Sao Paulo*............. 115,132 157,184
Copene Petroquimica do
Nordeste, S.A. Class A.... 200,000 174,705
Companhia Siderurgica
Paulista.................. 6,000 17,483
Fosfertil Fertiliz.......... 25,000,000 181,738
Marcopolo, S.A. Class B..... 300,000 95,744
Metalurgica Gerdau, S.A. ... 3,000,000 195,035
Petroleo Brasileiro
(Petrobras), S.A. ........ 600,000 75,879
Petroleo Brasileiro
(Petrobras Distribudor),
S.A. ..................... 3,900,000 209,751
Salegma Class B ............ 9,223,163 135,185
Telecomunicacoes
Brasileiras (Telebras),
S.A.*..................... 3,250,000 145,596
Telecomunicacoes do
Parana, S.A. TELEPAR...... 200,000 66,193
Telecomunicacoes de Sao
Paulo (Telesp), S.A. ..... 1,800,000 256,382
Uniao Sider Minas
Gerais-Usiminas*.......... 125,000,000 169,917
<CAPTION>
COMPANY SHARES OR VALUE
PRINCIPAL
AMOUNT
(000)
--------------------------------------------------------------------------------
<S> <C> <C>
Gerais-Usiminas
(ADS)*(b)................. 33,800 $ 447,850
-----------
2,942,472
-----------
RUSSIA--1.1%
RNGS Holdings, Ltd.
8.00%, redeemable
pfd. (a).................... 3,200 1,072,000
-----------
Total Preferred Stocks
(cost $3,644,698)........... 4,014,472
-----------
CONVERTIBLE BONDS--0.4%
COLUMBIA--0.2%
Banco de Columbia
5.20%, 2/01/99.............. $150,000 141,750
-----------
PERU--0.2%
International Financial
Holdings, Inc.
6.50%, 8/01/99.............. 150,000 172,500
-----------
Total Convertible Bonds
(cost $304,500)............. 314,250
-----------
TIME DEPOSIT--17.4%
Credit Suisse
5.75%, 1/03/95
(cost $16,600,000).......... 16,600 16,600,000
-----------
TOTAL INVESTMENTS--98.3%
(cost $98,010,697).......... 93,769,114
Other assets less liabilities--1.7% 1,637,783
-----------
NET ASSETS--100%.................... $95,406,897
===========
</TABLE>
--------------------------------------------------------------------------------
* Non-income producing security.
(a) Illiquid Security, 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
December 31, 1994 these securities amounted to $2,417,683 or 2.5% of net
assets.
Glossary of Terms:
ADR--American depository receipt.
ADS--American depository security.
GDR--Global depository receipt.
GDS--Global depository security.
See notes to financial statements.
10
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1994 (UNAUDITED) ALLIANCE WORLDWIDE PRIVATIZATION FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C>
ASSETS
Investments in securities, at value (cost $98,010,697)............................ $ 93,769,114
Cash at value (cost $1,860,999)................................................... 1,866,016
Receivable for investment securities sold......................................... 18,449,483
Receivable for capital stock sold................................................. 868,824
Dividends and interest receivable................................................. 96,779
Deferred organization expense and other assets.................................... 195,433
------------
Total assets...................................................................... 115,245,649
------------
LIABILITIES
Payable for investment securities purchased....................................... 19,195,072
Payable for capital stock redeemed................................................ 275,354
Unrealized depreciation of forward exchange currency contracts.................... 83,408
Advisory fee payable.............................................................. 79,882
Distribution fee payable.......................................................... 71,448
Accrued expenses.................................................................. 133,588
------------
Total liabilities................................................................. 19,838,752
------------
NET ASSETS........................................................................... $ 95,406,897
============
COMPOSITION OF NET ASSETS
Capital stock, at par............................................................. $ 95,891
Additional paid-in capital........................................................ 100,404,110
Undistributed net investment income............................................... (200,376)
Net realized loss on investments and foreign currency transactions................ (568,944)
Net unrealized depreciation of investments and foreign currency denominated
assets and liabilities........................................................... (4,323,784)
------------
$ 95,406,897
============
CALCULATION OF MAXIMUM OFFERING PRICE
CLASS A SHARES
Net asset value and redemption price per share
($14,226,343 / 1,425,163 shares of capital stock issued and
outstanding)..................................................................... $ 9.98
Sales charge--4.25% of public offering price...................................... .44
------------
Maximum offering price............................................................ $10.42
============
CLASS B SHARES
Net asset value and offering price per share
($81,180,554 / 8,163,975 shares of capital stock issued and
outstanding)..................................................................... $ 9.94
============
</TABLE>
--------------------------------------------------------------------------------
See notes to financial statements.
11
<PAGE>
STATEMENT OF OPERATIONS
SIX MONTHS ENDED DECEMBER 31, 1994
(UNAUDITED) ALLIANCE WORLDWIDE PRIVATIZATION FUND
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C> <C>
INVESTMENT INCOME
Dividends (net of foreign taxes withheld of $45,599)............... $374,120
Interest........................................................... 363,168 $ 737,288
--------
EXPENSES
Advisory fee....................................................... 323,631
Distribution fee-Class A........................................... 15,605
Distribution fee-Class B........................................... 271,615
Audit and Legal.................................................... 72,132
Administrative..................................................... 59,116
Custodian.......................................................... 52,050
Transfer Agency.................................................... 50,822
Registration....................................................... 28,280
Printing........................................................... 27,077
Amortization of organization expenses.............................. 21,270
Directors' fees.................................................... 10,572
Miscellaneous...................................................... 14,152
--------
Total expenses..................................................... 946,322
-----------
Net investment loss................................................ (209,034)
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY
Net realized loss on investments................................... (498,426)
Net realized gain on foreign currency transactions................. 24,735
Net change in unrealized depreciation of:
Investments...................................................... (3,663,435)
Foreign currency denominated assets and liabilities.............. (75,842)
-----------
Net loss on investments and foreign currency transactions.......... (4,212,968)
-----------
NET DECREASE IN NET ASSETS FROM OPERATIONS............................ $(4,422,002)
===========
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED JUNE 2, 1994*
DECEMBER 31, 1994 TO
(UNAUDITED) JUNE 30, 1994
----------------- -------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income (loss)............................................. $ (209,034) $ 8,658
Net realized loss on investments and foreign currency transactions....... (473,691) (95,253)
Net unrealized depreciation of investments and foreign currency
denominated assets and liabilities....................................... (3,739,277) (584,507)
----------- -----------
Net decrease in net assets from operations............................... (4,422,002) (671,102)
CAPITAL STOCK TRANSACTIONS
Net increase............................................................. 71,979,684 28,419,317
----------- -----------
Total increase........................................................... 67,557,682 27,748,215
NET ASSETS
Beginning of year........................................................ 27,849,215 101,000
----------- -----------
End of period (including undistributed net investment income
of $8,658, for the period ended June 30, 1994)........................... $95,406,897 $27,849,215
=========== ===========
-------------------------------------------------------------------------------------------------------------------
</TABLE>
* Commencement of operations.
See notes to financial statements.
12
<PAGE>
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1994 (UNAUDITED) 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. The Fund
offers both Class A and Class B 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. Both classes of
shares have identical voting, dividend, liquidation and other rights, except
that Class A bears different distribution expenses than Class B and each class
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 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 approximately $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 gain on foreign currency transactions of $24,735 represents
foreign exchange gains and losses from the holding of 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 period end exchange rates are reflected as a component of net
unrealized appreciation 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
13
<PAGE>
NOTES TO FINANCIAL STATEMENTS (cont.) ALLIANCE WORLDWIDE PRIVATIZATION FUND
--------------------------------------------------------------------------------
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.
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. CHANGE IN ACCOUNTING FOR DISTRIBUTION IN SHAREHOLDERS
Effective June 30, 1994, the Fund adopted 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.
--------------------------------------------------------------------------------
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 such reimbursement was required for the
six months ended December 31, 1994.
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 $22,576 from the sale of Class A shares and
$39,658 in contingent deferred sales charges imposed upon redemptions by
shareholders of Class B for the six months ended December 31, 1994.
Brokerage commissions paid on securities transactions for the six months
ended December 31, 1994, amounted to $196,215, 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 the
Class B 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 $3,669,683 for Class B shares; 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.
14
<PAGE>
ALLIANCE WORLDWIDE PRIVATIZATION FUND
--------------------------------------------------------------------------------
NOTE D: INVESTMENT TRANSACTIONS
Purchases and sales of investment securities (excluding short-term
investments) aggregated $70,747,896 and $7,822,112, respectively, for the six
months ended December 31, 1994. There were no purchases or sales of U.S.
Government and government agency obligations for the six months ended
December 31, 1994. At December 31, 1994, the cost of securities for federal
income tax purposes was the same as the cost for financial reporting
purposes.
Accordingly, gross unrealized appreciation of investments was $3,458,270 and
gross unrealized depreciation of investments was $7,699,857, resulting in net
unrealized depreciation of $4,241,583. Foreign currency losses incurred after
June 2, 1994, within the taxable year are deemed to arise on the first
business day of the Fund's next taxable year. In accordance with the Internal
Revenue Code, the Fund incurred and will elect to defer a net currency loss
of $95,253 during such period in fiscal 1994.
--------------------------------------------------------------------------------
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 and Class B shares are outstanding.
Each class consists of 3,000,000,000 authorized shares.
Transactions in capital stock were as follows:
<TABLE>
<CAPTION>
SHARES AMOUNT
---------------------------------- ------------------------------------
SIX MONTHS ENDED JUNE 2, 1994* SIX MONTHS ENDED JUNE 2, 1994*
DECEMBER 31, 1994 TO DECEMBER 31, 1994 TO
(UNAUDITED) JUNE 30, 1994 (UNAUDITED) JUNE 30, 1994
----------------- ------------- ----------------- -------------
<S> <C> <C> <C> <C>
CLASS A
Shares sold................ 1,029,107 505,529 $10,991,172 $ 5,040,282
Shares redeemed............ (115,936) (3,537) (1,217,160) (35,194)
--------- --------- ----------- -----------
Net increase............... 913,171 501,992 $ 9,774,012 $ 5,005,088
========= ========= =========== ===========
CLASS B
Shares sold................ 6,150,113 2,435,492 $65,697,590 $24,287,396
Shares redeemed............ (332,957) (88,773) (3,491,918) (873,167)
--------- --------- ----------- -----------
Net increase............... 5,817,156 2,346,719 $62,205,672 $23,414,229
========= ========= =========== ===========
</TABLE>
--------------------------------------------------------------------------------
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 renationalization of these enterprises and
economic factors adversely affecting the economics of these emerging market
countries. In addition, these securities created through privatization may be
less liquid and subject to greater volatility than securities of more developed
countries.
15
<PAGE>
NOTES TO FINANCIAL STATEMENTS (cont.) ALLIANCE WORLDWIDE PRIVATIZATION FUND
--------------------------------------------------------------------------------
NOTE G: ILLIQUID SECURITIES
<TABLE>
<CAPTION>
DATE
SECURITY ACQUIRED U.S. $ COST
-------- -------- -----------
<S> <C> <C>
Arab Potash Co................................ 10/05/94 96,508
RNGS Holdings, Ltd. 8% pfd.................... 10/18/94 997,500
Televisao Independiente....................... 8/16/94 323,668
</TABLE>
The securities shown above are illiquid and have been valued at fair value in
accordance with the procedures described in Note A. The value of these
securities at December 31, 1994 was $1,531,511 representing 1.6% of net assets.
--------------------------------------------------------------------------------
NOTE H: SUBSEQUENT EVENT
On April 19, 1994 the creation of a third class of shares, Class C shares, was
approved by the Board of Directors. Class C shares commenced operations on
January 31, 1995.
--------------------------------------------------------------------------------
* Commencement of operations.
16
<PAGE>
ALLIANCE WORLDWIDE PRIVATIZATION FUND
--------------------------------------------------------------------------------
At December 31, 1994, the Fund had outstanding forward exchange currency
contracts as follows:
<TABLE>
<CAPTION>
CONTRACT COST ON U.S. $ UNREALIZED
AMOUNT ORIGINATION CURRENT APPRECIATION
FOREIGN CURRENCY BUY CONTRACTS (000) DATE VALUE (DEPRECIATION)
------------------------------ --------- ----------- ---------- --------------
<S> <C> <C> <C> <C>
Austrian Schilling,
expiring 1/03/95....................... 12,102 $1,105,294 $1,109,927 $ 4,633
Deutsche Marks,
expiring 1/03/95....................... 2,497 1,606,071 1,611,616 5,545
Danish Krone,
expiring 1/03/95....................... 3,675 603,895 604,001 106
Finnish Markka,
expiring 1/03/95....................... 6,276 1,326,770 1,324,731 (2,039)
French Franc,
expiring, 1/03/95...................... 12,855 2,402,108 2,406,830 4,722
Italian Lira,
expiring 1/03/95....................... 3,068,975 1,888,600 1,892,432 3,832
Dutch Guilder,
expiring 1/03/95....................... 3,846 2,206,906 2,215,673 8,767
Spanish Peseta,
expiring 1/03/95....................... 130,630 988,124 992,307 4,183
Swedish Krone,
expiring 1/03/95....................... 14,312 1,921,066 1,926,089 5,023
<CAPTION>
FOREIGN CURRENCY SALE CONTRACTS
-------------------------------
<S> <C> <C> <C> <C>
Austrian Schilling,
expiring 1/03/95-2/03/95............... 24,205 2,209,644 2,217,506 (7,862)
British Pounds,
expiring 1/30/95....................... 1,910 2,949,994 2,987,544 (37,550)
Danish Krona,
expiring 1/03/95-2/03/95............... 7,349 1,203,596 1,207,878 (4,282)
Deutsche Marks,
expiring 1/03/95-2/03/95............... 4,995 3,211,252 3,218,011 (6,759)
Dutch Guilder,
expiring 1/03/95-2/03/95............... 7,691 4,415,247 4,424,104 (8,857)
Finnish Markka,
expiring, 1/03/95-2/03/95.............. 12,551 2,623,133 2,645,636 (22,503)
French Francs,
expiring 1/03/95-2/03/95............... 25,710 4,800,426 4,806,243 (5,817)
Italian Lira,
expiring 1/03/95-2/03/95............... 6,137,950 3,786,822 3,785,344 1,478
Spanish Peseta,
expiring 1/03/95-2/03/95............... 261,260 1,988,765 1,985,708 3,057
Swedish Krone,
expiring 1/03/95-2/03/95............... 28,624 3,820,647 3,849,732 (29,085)
--------
$(83,408)
========
</TABLE>
17
<PAGE>
FINANCIAL HIGHLIGHTS ALLIANCE WORLDWIDE PRIVATIZATION FUND
--------------------------------------------------------------------------------
SELECTED DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT THE PERIOD
<TABLE>
<CAPTION>
CLASS A CLASS B
-------------------------------- --------------------------------
SIX MONTHS ENDED JUNE 2, 1994* SIX MONTHS ENDED JUNE 2, 1994*
DECEMBER 31, 1994 TO DECEMBER 31, 1994 TO
(UNAUDITED) JUNE 30, 1994 (UNAUDITED) JUNE 30, 1994
----------------- ------------- ----------------- -------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period................ $9.75 $10.00 $9.74 $10.00
----- ------ ----- ------
<CAPTION>
INCOME FROM INVESTMENT OPERATIONS
---------------------------------
<S> <C> <C> <C> <C>
Net investment income (loss)........................ (.01) .01 (.03) -0-
Net realized and unrealized
gain (loss) on investments......................... .24 (.26) .23 (.26)
----- ------ ----- ------
Net increase (decrease) in net
asset value from operations........................ .23 (.25) .20 (.26)
----- ------ ----- ------
Net asset value, end of period...................... $9.98 $ 9.75 $9.94 $ 9.74
===== ====== ===== ======
<CAPTION>
TOTAL RETURN
------------
<S> <C> <C> <C> <C>
Total investment return based on net asset
value (a).......................................... 2.36% (2.50)% 2.05% (2.60)%
===== ====== ===== ======
<CAPTION>
RATIOS/SUPPLEMENTAL DATA
------------------------
<S> <C> <C> <C> <C>
Net assets, end of period
(000's omitted).................................. $14,226 $4,990 $81,181 $22,859
Ratio of expenses to average net assets........... 2.30%(b) 2.75%(b) 2.99%(b) 3.45%(b)
Ratio of net investment
income (loss) to average net assets.............. (.04)%(b) 1.03%(b) (.75)%(b) .33%(b)
Portfolio turnover rate........................... 16% -0-% 16% -0-%
</TABLE>
--------------------------------------------------------------------------------
* 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 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.
18
<PAGE>
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
DANIEL V. PANKER, 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 AUDITORS
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.
19
<PAGE>
ALLIANCE
--------------------------------------------------------------------------------
WORLDWIDE
--------------------------------------------------------------------------------
PRIVATIZATION
--------------------------------------------------------------------------------
FUND
--------------------------------------------------------------------------------
Semi-Annual
Report
December 31, 1994
Alliance(R)
Mutual funds without the Mystery.(SM)
Alliance Worldwide Privatization Fund, Inc.
1345 Avenue of the Americas
New York, New York 10105
(800) 221-5672
AllianceCapital [LOGO APPEARS HERE]
Distribution of this report other than to shareholders must be preceded or
accompanied by the Fund's current prospectus, which contains further information
about the Fund (includes fees and expenses) and should be read before investing.
WWPSR
<PAGE>
