ALLIANCE
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WORLDWIDE
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PRIVATIZATION
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FUND
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Semi-Annual
Report
December 31, 1999
Alliance Capital [LOGO](R)
<PAGE>
LETTER TO SHAREHOLDERS Alliance Worldwide Privatization Fund
================================================================================
February 25, 2000
Dear Shareholder:
This semi-annual report contains investment results and market activity for
Alliance Worldwide Privatization Fund (the "Fund") for the period ended December
31, 1999.
INVESTMENT RESULTS
The following table provides performance for the Fund and its benchmarks, the
Morgan Stanley Capital International ("MSCI") World Index (minus the U.S.) and
the MSCI Emerging Markets Free ("EMF") Index. It also provides performance
results for the Fund's composite benchmark, a 65%/35% composite of the MSCI
World Index (minus the U.S.) and the MSCI EMF Index, respectively.
During the six-month period ended December 31, 1999, the Fund significantly
outperformed its composite benchmark. The Fund's stock selection was the
principal reason for the strong investment results. The Fund's high relative
weighting in telecommunication and cable stocks were major positive factors, as
was its exposure to European and Asian technology companies. Investments in
Japanese financial companies and emerging market metal and mining stocks also
contributed to the Fund's outperformance versus its benchmark. The Fund's
holdings in utility and tobacco stocks were the only notable negatives impacting
the Fund's overall stock selection. Asset allocation had a marginally negative
impact on performance during the six-month period ended December 31, 1999.
Although we raised the Fund's weight in Japanese equity throughout the year, its
relative underweight exposure to this market was a mildly negative contributor
to returns.
Over the 12-month period ended December 31, 1999, the Fund strongly outperformed
its composite benchmark. The Fund's high relative weighting in emerging market
equities and strong stock selection in the major markets were the major reasons
for its outperformance versus its benchmark.
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INVESTMENT RESULTS*
Periods Ended December 31, 1999
Total Returns
6 months 12 months
--------------- ---------------
Alliance Worldwide
Privatization Fund
Class A 36.52% 56.33%
Class B 36.12% 55.14%
Class C 36.03% 55.04%
MSCI World Index
(minus the U.S.) 22.57% 28.27%
MSCI EMF Index 18.98% 66.41%
65%/35% Composite:
65% MSCI World Index
(minus the U.S.)/35%
MSCI EMF Index 21.31% 41.62%
* The Fund's investment results are total returns for the periods and are
based on the net asset value of the Fund's shares as of December 31, 1999.
All fees and expenses related to the operation of the Fund have been
deducted but no adjustment has been made for sales charges that may apply
when shares are purchased or redeemed. Total returns for Advisor Class
shares will differ due to different expenses associated with that class.
Past performance is no guarantee of future results.
The MSCI World Index (minus the U.S.) is an unmanaged, market
capitalization-weighted index that measures the performance of stock
markets in 21 countries outside the United States. The MSCI EMF Index is
an unmanaged, market capitalization-weighted index composed of companies
representative of the market structure of 25 emerging market countries in
Europe, Latin America, and the Pacific Basin. The Index excludes closed
markets and those shares in otherwise free countries which are not
purchasable by foreigners. The benchmarks are unmanaged and reflect no
fees or expenses. An investor cannot invest directly in an index.
Additional investment results appear on page 3.
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INVESTMENT REVIEW
During the semi-annual reporting period, equity returns were impressive across
all regional markets. These strong returns were driven by a variety of factors.
Markets were boosted by telecommunications, technology and media stocks as
investors bought into the idea of a
1
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Alliance Worldwide Privatization Fund
================================================================================
"new paradigm" in which technologies, such as the Internet, wireless application
protocol and broadband, change the way in which companies and economies operate.
The recovery in global growth was an additional factor that enhanced equity
returns. In our view, the world economy is clearly on a growth track. The United
States remained buoyant, European countries saw accelerating gross domestic
product growth and Japan finally lifted itself out of recession. The outlook for
the emerging economies also became increasingly positive. Asia recovered from
its earlier financial catastrophe and witnessed renewed strength, while Brazil's
implementation of reformist policies following the currency devaluation in the
early part of 1999 averted a full-scale crisis in Latin America.
INVESTMENT OUTLOOK
Going forward, we expect that continued economic strength will translate into
corporate earnings recovery, upgrades and positive equity market returns. One
concern we have is the possibility that global interest rates will continue to
rise. Such an increase in interest rates could negatively impact both liquidity
and equity markets. However, although the potential for inflationary pressure to
creep into the system is an issue, we believe the effects of new technologies
(for instance, the Internet and broadband access) will continue to restrain such
pressure. We reiterate our view that global economies must continue to
liberalize and implement reform policies such as privatization to ensure that
the recovery we have seen is not hindered. In particular, we anticipate that the
Japanese and emerging market economies have large restructuring efforts ahead.
In our view, the signs for privatization are excellent. Global privatization
activity during 1999 was very strong, with global proceeds amounting to 1998
levels of $145 billion. Western European countries continued to dominate the
process and accounted for 45% of the 1999 total, while Asia accounted for 25%.
One noticeable trend was the increase in emerging market privatization deals. We
expect this trend to continue in 2000 as the world's developing economies
restructure and embrace privatization. At the industry level, telecommunication
and utility transactions led the way. However, the expansion of industry
representation is noticeable as governments extend their privatization programs.
In 2000, we forecast that global privatization revenues will amount to
approximately $145 billion.
We expect the Fund will be a beneficiary of the continued strength in
privatization activity and we look forward to participating in the most
attractive deals the market offers. We maintain our aim of providing a
well-diversified core international fund with exposure to the most exciting and
rapidly growing area of the financial markets. Presently, the Fund maintains
positions in approximately 40 countries with close to 100 different issues and
representation in over 40 different industries.
Thank you for your continued interest and participation in Alliance Worldwide
Privatization Fund. We look forward to reporting to you again on market activity
and your Fund's investment results in the future.
Sincerely,
/s/ John D. Carifa
John D. Carifa
Chairman and President
/s/ Mark H. Breedon
Mark H. Breedon
Senior Vice President
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Shares of the Fund are not deposits or obligations of, guaranteed or endorsed
by, any bank; further, such shares are not federally insured by the Federal
Deposit Insurance Corporation, the Federal Reserve Board, or any other agency.
Shares of the Fund involve investment risks, including the possible loss of
principal.
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2
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INVESTMENT OBJECTIVE AND POLICIES Alliance Worldwide Privatization Fund
================================================================================
The Alliance Worldwide Privatization Fund seeks to provide investors with
long-term capital appreciation. As a fundamental policy, the Fund invests at
least 65% of its total assets in equity securities issued by enterprises that
are undergoing, or have undergone, privatization, although normally
significantly more of its assets will be invested in such securities.
INVESTMENT RESULTS
================================================================================
NAV and SEC Average Annual Total Returns as of December 31, 1999
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CLASS A SHARES
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Without With
Sales Charge Sales Charge
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One Year 56.33% 49.67%
Five Years 20.01% 18.98%
Since Inception* 17.71% 16.81%
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CLASS B SHARES
---------------------------------------
Without With
Sales Charge Sales Charge
===============================
One Year 55.14% 51.14%
Five Years 19.16% 19.16%
Since Inception* 16.89% 16.89%
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CLASS C SHARES
---------------------------------------
Without With
Sales Charge Sales Charge
===============================
One Year 55.04% 54.04%
Since Inception* 20.61% 20.61%
The Fund's investment results represent average annual total returns. The NAV
and SEC returns reflect reinvestment of dividends and/or capital gains
distributions in additional shares without (NAV) and with (SEC) the effect of
the 4.25% maximum front-end sales charge for Class A shares or applicable
contingent deferred sales charge for Class B shares (4% year 1, 3% year 2, 2%
year 3, 1% year 4); and for Class C shares (1% year 1). Returns for Class A
shares do not reflect the imposition of the 1 year 1% contingent deferred sales
charge for accounts over $1,000,000. Total return for Advisor Class shares will
differ due to different expenses associated with that class.
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.
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* Since Inception: 6/2/94, Class A and B; 2/8/95, Class C.
3
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TEN LARGEST HOLDINGS
December 31, 1999 (unaudited) Alliance Worldwide Privatization Fund
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<TABLE>
<CAPTION>
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COMPANY U.S. $ VALUE PERCENT OF NET ASSETS
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<S> <C> <C>
Mannesmann AG (NY Shares)--Designs
and manufactures a wide range of industrial
production machinery and assembly systems,
as well as provides telecommunication services. $ 28,874,295 4.7%
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NTT Mobile Communications Network, Inc.--
Provides various telecommunication services
including cellular phones, car phones,
pagers and packet communication services. 28,851,801 4.7
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United Pan Europe-Communications NV--
Television and telecommunications company
that offers cable, TV, phone and internet
services. 27,601,081 4.5
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Daiwa Securities Co., Ltd.--Specializes in
bond and stock transactions. The company
provides financial services such as brokerage,
underwriting, and distribution of securities. 24,291,778 4.0
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STMicroelectronics NV--Designs, develops,
manufactures and markets semiconductor
integrated circuits and discrete devices. 22,911,772 3.7
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SK Telecom Co., Ltd.--Provides mobile paging
and telecommunication services in Korea
and India. The company provides subscribers
with digital cellular service and business features
such as wireless fax and data transmission. 21,323,413 3.5
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Amadeus Global Travel Distribution, SA Cl. A--
The company provides information technology
that serves the marketing, sales and distribution
needs of the global travel and tourism industry. 19,129,380 3.1
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Nippon Telegraph & Telephone Corp.--Provides
telecommunication services, including telephone,
telegraph, leased circuits and other related
services within Japan. 17,129,992 2.8
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Akzo Nobel NV--Produces and markets chemicals,
coatings and pharmaceuticals. The company
manufactures polymers, catalysts, pulp and paper
chemicals, salt, base chemicals, paint, automobile
finishes, industrial coatings, resins, cardiovascular
drugs, oral contraceptives, antidepressants, home
pregnancy kits, diagnostic kits, and veterinary
drugs. 16,037,193 2.6
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Telefonos de Mexico, SA Cl. L (ADR)--Provides
domestic and international long-distance, as
well as local telephone service throughout
Mexico. 15,014,138 2.5
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$221,164,843 36.1%
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</TABLE>
4
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SECTOR DIVERSIFICATION
December 31, 1999 (unaudited) Alliance Worldwide Privatization Fund
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U.S. $ VALUE PERCENT OF NET ASSETS
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Basic Industries $ 49,717,012 8.1%
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Consumer Manufacturing 1,081,613 0.2
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Consumer Services 100,101,675 16.3
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Consumer Staples 15,996,054 2.6
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Energy 16,266,663 2.7
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Finance 123,486,268 20.2
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Healthcare 15,742,834 2.6
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Miscellaneous Consumer 19,129,380 3.1
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Multi-Industry 43,192,045 7.0
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Technology 44,063,582 7.2
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Transportation 19,996,429 3.3
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Utilities 142,580,930 23.3
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Total Investments* 591,354,485 96.6
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Cash and receivables, net of liabilities 21,058,819 3.4
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Net Assets $612,413,304 100.0%
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* Excludes short-term obligations.
5
<PAGE>
PORTFOLIO OF INVESTMENTS
December 31, 1999 (unaudited) Alliance Worldwide Privatization Fund
================================================================================
Company Shares U.S. $ Value
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COMMON STOCKS &
OTHER INVESTMENTS-96.6%
ARGENTINA-0.7%
Nortel Inversora, SA
(ADR).................... 208,000 $ 4,030,000
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AUSTRALIA-1.4%
Commonwealth Serum
Lab, Ltd. ............... 325,000 4,676,198
TAB Queensland, Ltd......... 1,262,500 1,750,166
TABCORP Holdings,
Ltd. .................... 340,000 2,303,941
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8,730,305
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AUSTRIA-1.8%
Austria Tabakwerke
AG ...................... 67,000 3,236,421
Bank Austria AG............. 139,800 7,878,513
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11,114,934
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BRAZIL-5.6%
Banco Bradesco,
SA pfd................... 75,000,000 588,292
Pfd. Rights 2/9/00....... 4,870,055 19,329
Celular CRT
Participacoes, SA
pfd (a).................. 894,362 155,950
Companhia Paranaense
de Energia (ADR)......... 400,000 3,725,000
Companhia Riograndense
de Telecomunicacoes
Cl. A pfd (a)............ 94,362 29,251
Embratel Participacoes,
SA (ADR)................. 70,000 1,907,500
Gerdau, SA pfd.............. 246,791,935 6,557,439
Gerdau Metalurgica,
SA pfd................... 173,009,484 8,332,037
Tele Centro Sul
Participacoes, SA
(ADR).................... 71,000 6,443,250
Tele Sudeste Celular
Participacoes,
SA (ADR)................. 115,000 4,463,438
Telemig Celular
Participacoes, SA
(ADR).................... 25,000 1,154,688
Telesp Participacoes, SA
(ADR).................... 37,900 926,181
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34,302,355
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CHILE-0.7%
Compania de
Telecommunicaciones
de Chile (ADR)........... 230,000 4,197,500
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CROATIA-0.5%
Pliva D.D. (GDR)............ 230,000 2,995,750
------------
CYPRUS-0.1%
Premier
Telesports (a)(b)........ 85,000 598,778
------------
CZECH REPUBLIC-0.4%
Ceske Radiokomunikace
AS (a)................... 70,000 2,570,870
------------
EGYPT-0.4%
Eastern Company for
Tobacco &
Cigarettes............... 100,000 2,624,863
------------
FRANCE-4.4%
CNP Assurances.............. 189,300 6,964,755
Sanofi-Synthelabo,
SA (a)................... 194,000 8,070,887
Societe Generale Cl. A...... 18,097 4,206,953
Total Fina, SA Cl. B........ 55,822 7,443,382
------------
26,685,977
------------
GERMANY-6.4%
Mannesmann AG
(NY Shares).............. 119,800 28,874,295
MVV Energie AG
New Shares (a)........... 277,400 3,768,680
Stinnes AG (a).............. 302,000 6,382,272
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39,025,247
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6
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Alliance Worldwide Privatization Fund
================================================================================
Company Shares U.S. $ Value
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GHANA-0.2%
Social Security Bank,
Ltd. .................... 2,000,000 $ 967,805
------------
GREECE-0.7%
Hellenic
Telecommunications
Organization, SA
(ADR).................... 375,700 4,484,919
------------
HONG KONG-2.8%
China Merchants
Holdings
International, Ltd. ..... 2,262,000 1,862,327
China Telecom
(Hong Kong),
Ltd. (a)................. 1,840,000 11,480,028
Citic Pacific, Ltd. ........ 1,028,000 3,861,530
------------
17,203,885
------------
HUNGARY-0.6%
Magyar Olaj-es Gazipari
Reszvenytar.............. 68,500 1,422,286
OTP Bank Reszvenytar
(GDR).................... 42,500 2,470,312
------------
3,892,598
------------
INDIA-2.0%
Industrial Credit &
Investment Corp.,
Ltd. (a)................. 2,147,000 4,540,782
ADR (a).................. 77,500 1,075,312
Mahanagar Telephone
Nigam, Ltd.
(GDR) (a)................ 335,700 3,776,625
Videsh Sanchar Nigam,
Ltd. (GDR) (c)........... 126,000 3,099,600
------------
12,492,319
------------
ITALY-3.0%
Banca Nazional del
Lavoro (a)............... 1,000,000 3,331,019
Enel SpA (a)................ 1,800,000 7,535,549
ENI SpA..................... 800,000 4,395,737
Monte dei Paschi di
Siena SpA (a)............ 807,500 3,144,869
------------
18,407,174
------------
JAPAN-16.1%
Daiwa Securities Co.,
Ltd. .................... 1,552,000 24,291,778
East Japan Railway Co. ..... 907 4,891,905
Japan Tobacco, Inc. ........ 1,324 10,134,769
Nippon Telegraph &
Telephone Corp. ......... 1,000 17,129,992
Nomura Securities Co.,
Ltd. .................... 600,000 10,835,943
NTT Mobile
Communications
Network, Inc. ........... 750 28,851,801
West Japan
Railway Co. ............. 600 2,126,077
------------
98,262,265
------------
MALAWI-0.0%
Press Corp., Ltd.
(GDR) (a)(d)............. 85,000 255,000
------------
MALAYSIA-0.6%
Telekom Malaysia
Berhad................... 1,000,000 3,868,421
------------
MEXICO-5.2%
Grupo Financiero
Banorte, SA
de CV Series O........... 6,635,277 10,014,191
Neuevo Grupo Iusacell,
SA de CV
(ADR) (a)................ 167,614 2,503,734
Telefonos de Mexico,
SA Cl. L (ADR)........... 133,459 15,014,138
Tubos de Acero de
Mexico, SA (ADR)......... 338,000 4,584,125
------------
32,116,188
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7
<PAGE>
PORTFOLIO OF INVESTMENTS (continued) Alliance Worldwide Privatization Fund
================================================================================
Company Shares U.S. $ Value
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NETHERLANDS-13.6%
Akzo Nobel NV............... 320,000 $ 16,037,193
Equant NV
(NY Shares) (a).......... 64,700 7,246,400
ING Groep NV................ 159,322 9,610,402
STMicroelectronics NV....... 149,000 22,911,772
United Pan-Europe
Communications
NV ...................... 215,960 27,601,081
------------
83,406,848
------------
PERU-0.4%
Cementos Norte
Pacasmayo, SA
Cl. C.................... 131,954 81,613
Explosivos, SA (a)(b)....... 1,571,704 1,303,594
Ferreyros, SA............... 1,430,661 774,763
Tecsur, SA
Cl. B (b)................ 199,535 52,322
------------
2,212,292
------------
POLAND-1.4%
Orbis, SA (a)............... 477,220 4,304,790
Polski Koncern Naftowy,
SA (GDR) (a)............. 323,000 4,061,725
------------
8,366,515
------------
PORTUGAL-0.6%
Soporcel-Sociedade
Portuguesa de Papel,
SA (a)................... 296,850 3,925,378
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ROMANIA-0.0%
Societatea, SA (b).......... 30,454 133,497
------------
SINGAPORE-1.4%
Development Bank of
Singapore, Ltd. ......... 517,535 8,483,162
------------
SOUTH AFRICA-0.3%
Iscor, Ltd. ................ 481,000 1,820,845
------------
SOUTH KOREA-7.9%
Housing Commercial
Bank, Korea (a).......... 92,200 2,923,117
GDR (a)(c)............... 212,000 6,291,100
Hanvit Bank GDR (a)......... 662,000 4,352,650
Korea Electric Power
Corp. ................... 94,000 2,913,959
Korea Telecom Corp.
(ADR) (a)................ 108,189 8,087,128
Pohang Iron & Steel Co.,
Ltd. .................... 19,600 2,200,793
SK Telecom Co., Ltd......... 4,481 16,061,356
ADR (a).................. 137,122 5,262,057
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48,092,160
------------
SPAIN-6.6%
Aldeasa, SA................. 121,100 2,419,099
Amadeus Global Travel
Distribution, SA
Cl.A (a)................. 1,206,900 19,129,380
Indra Sistemas, SA.......... 380,000 7,132,002
Repsol, SA.................. 275,700 6,386,915
Terra Networks, SA.......... 98,400 5,372,098
------------
40,439,494
------------
SWEDEN-0.3%
ForeningsSparbanken AB
Cl. A.................... 126,000 1,852,287
------------
SWITZERLAND-0.8%
SairGroup................... 9,400 1,892,043
Swisscom AG................. 7,000 2,831,125
------------
4,723,168
------------
TAIWAN-2.0%
China Steel Corp. .......... 4,900,000 3,622,112
Taiwan Semiconductor
Maufacturing Co. ........ 1,625,200 8,647,711
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12,269,823
------------
8
<PAGE>
Alliance Worldwide Privatization Fund
================================================================================
Company Shares U.S. $ Value
- --------------------------------------------------------------------------------
THAILAND-0.7%
PTT Exploration &
Production Public
Co., Ltd. (a)............ 268,000 $ 1,656,922
Siam Commercial Bank
Public Co., Ltd.
5.25%, Non-Cum
Conv. pfd (a)............ 2,322,000 2,846,422
------------
4,503,344
------------
TRINIDAD & TOBAGO-0.0%
B.W.I.A. International
Airways, Ltd. (a)(d)..... 2,727,272 -0-
------------
TURKEY-1.1%
Turkiye Is Bankasi
Series C................. 141,801,600 6,797,274
------------
UNITED KINGDOM-5.1%
Anglian Water Plc. ......... 200,000 1,825,741
British Airways Plc. ....... 1,213,000 7,917,770
British Energy Plc. ........ 597,520 3,427,216
Deferred Shares (a)...... 667,000 -0-
Mersey Docks &
Harbour Co. ............. 378,650 2,835,623
National Grid
Group Plc. .............. 657,000 4,999,735
National Power Plc. ........ 831,000 4,813,388
PowerGen Plc. .............. 187,600 1,348,819
Stagecoach
Holdings Plc. ........... 1,459,252 3,760,553
------------
30,928,845
------------
Shares of
Principal
Amount
Company (000) U.S. $ Value
- --------------------------------------------------------------------------------
UNITED STATES-0.8%
Near East International
LLC (d).................. 10 $ 1,000,000
United Customer
Management
Solutions (d)............ 17,862 3,572,400
------------
4,572,400
------------
Total Common Stocks
& Other Investments
(cost $359,252,148)...... 591,354,485
------------
TIME DEPOSIT-3.0%
BNP London
4.00%, 1/03/00
(cost $18,800,000)....... $18,800 18,800,000
------------
TOTAL INVESTMENTS-99.6%
(cost $378,052,148)...... 610,154,485
Other assets less
liabilities-0.4%......... 2,258,819
------------
NET ASSETS-100%............. $612,413,304
============
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(a) Non income producing security.
(b) Illiquid securities, valued at fair value (see Note A).
(c) Securities 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,
1999 these securities amounted to $9,390,700 or 1.5% of net assets.
(d) Restricted and illiquid securities, valued at fair value (see notes A &
G).
Glossary of terms:
ADR - American Depositary Receipt.
GDR - Global Depositary Receipt.
NY Shares - New York Registered Shares.
See notes to financial statements.
9
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1999 (unaudited) Alliance Worldwide Privatization Fund
================================================================================
<TABLE>
ASSETS
<S> <C>
Investments in securities, at value (cost $378,052,148) .......................... $ 610,154,485
Cash ............................................................................. 433,660
Foreign cash, at value (cost $2,196,226) ......................................... 2,156,749
Receivable for investment securities sold ........................................ 19,202,133
Receivable for capital stock sold ................................................ 1,403,710
Dividends and interest receivable ................................................ 1,203,763
-------------
Total assets ..................................................................... 634,554,500
-------------
LIABILITIES
Payable for investment securities purchased ...................................... 19,162,669
Payable for capital stock redeemed ............................................... 1,466,891
Advisory fee payable ............................................................. 514,304
Distribution fee payable ......................................................... 264,603
Accrued expenses ................................................................. 732,729
-------------
Total liabilities ................................................................ 22,141,196
-------------
NET ASSETS .......................................................................... $ 612,413,304
=============
COMPOSITION OF NET ASSETS
Capital stock, at par ............................................................ $ 41,540
Additional paid-in capital ....................................................... 369,936,821
Accumulated net investment loss .................................................. (2,392,531)
Accumulated net realized gain on investments and foreign currency transactions ... 12,800,296
Net unrealized appreciation of investments and foreign currency denominated assets
and liabilities ............................................................... 232,027,178
-------------
$ 612,413,304
=============
CALCULATION OF MAXIMUM OFFERING PRICE
Class A Shares
Net asset value and redemption price per share
($418,789,027 / 28,094,178 shares of capital stock issued and outstanding) $14.91
Sales Charge--4.25% of public offering price ..................................... .66
------
Maximum offering price ........................................................... $15.57
======
Class B Shares
Net asset value and offering price per share
($158,601,355 / 11,017,249 shares of capital stock issued and outstanding)..... $14.40
======
Class C Shares
Net asset value and offering price per share
($32,382,278 / 2,250,846 shares of capital stock issued and outstanding) ...... $14.39
======
Advisor Class Shares
Net asset value, redemption and offering price per share
($2,640,644 / 178,027 shares of capital stock issued and outstanding) ......... $14.83
======
</TABLE>
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See notes to financial statements.
10
<PAGE>
STATEMENT OF OPERATIONS
Six Months Ended December 31, 1999
(unaudited) Alliance Worldwide Privatization Fund
================================================================================
<TABLE>
<S> <C> <C>
INVESTMENT INCOME
Dividends (net of foreign taxes withheld of $391,597) ... $3,057,396
Interest ................................................ 191,826 $ 3,249,222
----------
EXPENSES
Advisory fee ............................................ 2,561,102
Distribution fee-Class A ................................ 537,681
Distribution fee-Class B ................................ 639,773
Distribution fee-Class C ................................ 118,949
Transfer agency ......................................... 590,197
Custodian ............................................... 538,992
Printing ................................................ 88,254
Administrative .......................................... 71,500
Audit and legal ......................................... 43,678
Registration ............................................ 27,350
Directors' fees ......................................... 9,798
Miscellaneous ........................................... 14,982
----------
Total expenses before waivers assumed by adviser ........ 5,242,256
Less: Expense offset arrangement (see Note B) ........... (26,234)
----------
Total expenses .......................................... 5,216,022
-------------
Net investment loss ..................................... (1,966,800)
-------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain on investments ........................ 32,212,761
Net realized loss on foreign currency transactions ...... (538,854)
Net change in unrealized appreciation / depreciation of:
Investments .......................................... 136,654,901
Foreign currency denominated assets and liabilities .. (14,298)
-------------
Net gain on investments and foreign currency transactions 168,314,510
-------------
NET INCREASE IN NET ASSETS FROM OPERATIONS ................. $ 166,347,710
=============
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements.
11
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS Alliance Worldwide Privatization Fund
================================================================================
<TABLE>
<CAPTION>
Six Months Ended Year Ended
December 31, 1999 June 30,
(unaudited) 1999
----------------- -------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment loss ............................................... $ (1,966,800) $ (1,062,084)
Net realized gain on investments and foreign currency transactions 31,673,907 26,631,746
Net change in unrealized appreciation / depreciation of investments
and foreign currency denominated assets and liabilities ......... 136,640,603 3,652,247
------------- -------------
Net increase in net assets from operations ........................ 166,347,710 29,221,909
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A ........................................................ -0- (3,960,735)
Class B ........................................................ -0- (437,988)
Class C ........................................................ -0- (94,004)
Advisor Class .................................................. -0- (20,394)
Net realized gain on investments
Class A ........................................................ (28,814,407) (53,210,205)
Class B ........................................................ (10,666,722) (17,946,553)
Class C ..................................................... (2,042,364) (3,142,307)
Advisor Class .................................................. (168,326) (196,625)
CAPITAL STOCK TRANSACTIONS
Net increase (decrease) ........................................... 8,137,122 (123,251,264)
------------- -------------
Total increase (decrease) ......................................... 132,793,013 (173,038,166)
NET ASSETS
Beginning of year ................................................. 479,620,291 652,658,457
------------- -------------
End of period ..................................................... $ 612,413,304 $ 479,620,291
============= =============
</TABLE>
- --------------------------------------------------------------------------------
See notes to financial statements.
12
<PAGE>
NOTES TO FINANCIAL STATEMENTS
December 31, 1999 (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 an open-end management investment company. The Fund offers Class A,
Class B, Class C and Advisor Class shares. Class A shares are sold with an
initial sales charge of up to 4.25% for purchases not exceeding $1,000,000. With
respect to purchases of $1,000,000 or more, Class A shares redeemed within one
year of purchase may be subject to a contingent deferred sales charge of 1%.
Class B shares are currently 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 subject to a
contingent deferred sales charge of 1% on redemptions made within the first year
after purchase. Advisor Class shares are sold without an initial or contingent
deferred sales charge. Advisor Class shares are offered solely to investors
participating in fee based programs and to certain retirement plan accounts. All
four 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 financial statements have been prepared in conformity
with generally accepted accounting principles which require management to make
certain estimates and assumptions that affect the reported amounts of assets and
liabilities in the financial statements and amounts of income and expenses
during the reporting period. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the
Fund.
1. Security Valuation
Portfolio securities traded on a national securities exchange or on a foreign
securities exchange (other than foreign securities exchanges whose operations
are similar to those of the United States over-the-counter market) are generally
valued at the last reported sales price or if no sale occurred, at the mean of
the closing bid and asked price on that day. Readily marketable securities
traded in the over-the-counter market, securities listed on a foreign securities
exchange whose operations are similar to the U.S. over-the-counter market, and
securities listed on a national securities exchange whose primary market is
believed to be over-the-counter, (but excluding securities traded on The Nasdaq
Stock Market, Inc.) are valued at the mean of the current bid and asked price.
U.S. government and fixed income securities which mature in 60 days or less are
valued at amortized cost, unless this method does not represent fair value.
Securities for which current market quotations are not readily available are
valued at their fair value as determined in good faith by, or in accordance with
procedures adopted by, the Board of Directors. Fixed income securities may be
valued on the basis of prices obtained from a pricing service when such prices
are believed to reflect the fair market value of such securities.
2. Currency Translation
Assets and liabilities denominated in foreign currencies and commitments under
forward exchange currency contracts are translated into U.S. dollars at the mean
of quoted bid and asked price of such currencies against the U.S. dollar.
Purchases and sales of portfolio securities are translated into U.S. dollars at
the rates of exchange prevailing when such securities were acquired or sold.
Income and expenses are translated into U.S. dollars at rates of exchange
prevailing when accrued.
Net realized foreign currency gains and losses represent foreign exchange gains
and losses from sales and maturities of debt securities, currency gains and
losses realized between the trade and settlement dates on security transactions
and the difference between the amounts of interest recorded on the Fund's books
and the U.S. dollar equivalent amounts actually received or paid. The Fund does
not isolate the effect of fluctuations in foreign currency exchange rates when
determining the gain or loss upon the sale or maturity of equity securities. Net
currency gains and losses from investments at period end exchange rates are
reflected as a component of unrealized appreciation of investments. Net currency
gains and losses from valuing foreign currency denominated assets and
liabilities other than investments at period end exchange rates are reflected as
a component of unrealized appreciation of foreign currency denominated assets
and liabilities.
13
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued) Alliance Worldwide Privatization Fund
================================================================================
3. Taxes
It is the Fund's policy to meet the requirements of the Internal Revenue Code
applicable to regulated investment companies and to distribute all of its
investment company taxable income and net realized gains, if any, to
shareholders. Therefore, no provisions for federal income or excise taxes are
required.
4. Investment Income and Investment Transactions
Dividend income is recorded on the ex-dividend date. Interest income is accrued
daily. Investment transactions are accounted for on the date securities are
purchased or sold. Investment gains and losses are determined on the identified
cost basis. The Fund accretes discounts on short-term securities as adjustments
to interest income.
5. Income and Expenses
All income earned and expenses incurred by the Fund are borne on a pro-rata
basis by each outstanding class of shares, based on the proportionate interest
in the Fund represented by the net assets of such class, except that the Fund's
Class B and Class C shares bear higher distribution and transfer agent fees than
Class A shares and the Advisor Class shares have no distribution fees.
6. Dividends and Distributions
Dividends and distributions to shareholders are recorded on the ex-dividend
date.
Income and capital gains distributions are determined in accordance with federal
tax regulations and may differ from those determined in accordance with
generally accepted accounting principles. To the extent these differences are
permanent, such amounts are reclassified within the capital accounts based on
their federal tax basis treatment; temporary differences, do not require such
reclassification.
- --------------------------------------------------------------------------------
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.
Pursuant to the advisory agreement, the Fund paid $71,500 to the Adviser
representing the cost of certain legal and accounting services provided to the
Fund by the Adviser for the six months ended December 31, 1999.
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. Such compensation
amounted to $360,071 for the six months ended December 31, 1999.
For the six months ended December 31, 1999, the Fund's expenses were reduced by
$26,234 under an expense offset arrangement with Alliance Fund Services, Inc.
Alliance Fund Distributors, Inc. (the "Distributor"), a wholly-owned subsidiary
of the Adviser serves as the Distributor of the Fund's shares. The Distributor
has advised the Fund that it has received front-end sales charges of $17,061
from the sale of Class A shares and $147, $96,066 and $768 in contingent
deferred sales charges imposed upon redemptions by shareholders of Class A,
Class B and Class C shares, respectively, for the six months ended December 31,
1999. Brokerage commissions paid on investment transactions for the six months
ended December 31, 1999, amounted to $815,470, none of which was paid to brokers
utilizing the services of the Pershing Division of Donaldson, Lufkin & Jenrette
Securities Corp. ("DLJ"), an affiliate of the Adviser, nor to DLJ directly.
14
<PAGE>
Alliance Worldwide Privatization Fund
================================================================================
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 and servicing fees 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 and Class C shares. There are no distribution fees
on the Advisor Class 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
advised the Fund that it has incurred expenses in excess of the distribution
costs reimbursed by the Fund in the amount of $6,410,164 and $711,989 for Class
B and Class C shares, respectively; such costs may be recovered from the Fund in
future periods so long as the Agreement is in effect. In accordance with the
Agreement, there is no provision for recovery of unreimbursed distribution costs
incurred by the Distributor beyond the current fiscal year for Class A shares.
The Agreement also provides that the Adviser may use its own resources to
finance the distribution of the Fund's shares.
- --------------------------------------------------------------------------------
NOTE D: Investment Transactions
Purchases and sales of investment securities (excluding short-term investments
and U.S. government securities) aggregated $138,147,330 and $185,962,668,
respectively, for the six months ended December 31, 1999. There were no
purchases or sales of U.S. government or government agency obligations for the
six months ended December 31, 1999.
At December 31, 1999, the cost of investments for federal income tax purposes
was substantially the same as the cost for financial reporting purposes. Gross
unrealized appreciation of investments was $250,646,396 and gross unrealized
depreciation of investments was $18,544,059 resulting in net unrealized
appreciation of $232,102,337, excluding foreign currency transactions.
Forward Exchange Currency Contracts
The Fund enters into forward exchange currency contracts in order to hedge its
exposure to changes in foreign currency exchange rates on its foreign portfolio
holdings and to hedge certain firm purchase and sales 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 liquid assets in a separate account of the Fund having a value equal to the
aggregate amount of the Fund's commitments under forward exchange currency
contracts entered into with respect to position hedges. Risks may arise from the
potential inability of a counterparty to meet the terms of a contract and from
unanticipated movements in the value of a foreign currency relative to the U.S.
dollar.
At December 31, 1999, the Fund had no outstanding forward exchange currency
contracts.
15
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued) 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 Advisor
Class.
Each class consists of 3,000,000,000 authorized shares. Transactions in capital
stock were as follows:
<TABLE>
<CAPTION>
----------------------------------------- -----------------------------------------
SHARES AMOUNT
----------------------------------------- -----------------------------------------
Six Months Ended Six Months Ended
December 31, Year Ended December 31, Year Ended
1999 June 30, 1999 June 30,
(unaudited) 1999 (unaudited) 1999
------------------- ------------------- ------------------- -------------------
<S> <C> <C> <C> <C>
Class A
Shares sold............................. 4,340,876 20,129,070 $ 54,151,492 $ 220,466,098
Shares issued in reinvestment of
dividends and distributions.......... 1,538,235 3,254,908 19,320,231 32,569,021
Shares converted from Class B........... 48,487 64,507 628,061 724,710
Shares redeemed......................... (6,576,265) (31,626,451) (82,426,956) (346,387,403)
----------------- ----------------- ----------------- -----------------
Net decrease............................ (648,667) (8,177,966) $ (8,327,172) $ (92,627,574)
================= ================= ================= =================
Class B
Shares sold............................. 1,260,326 1,893,631 $ 15,526,600 $ 20,245,038
Shares issued in reinvestment of
dividends and distributions.......... 783,921 1,107,404 9,516,807 10,841,481
Shares converted to Class A............. (50,068) (66,200) (628,061) (724,710)
Shares redeemed......................... (1,183,493) (5,371,341) (14,386,495) (57,094,013)
----------------- ----------------- ----------------- -----------------
Net increase (decrease).................... 810,686 (2,436,506) $ 10,028,851 $ (26,732,204)
================= ================= ================= =================
Class C
Shares sold............................. 737,284 814,567 $ 9,166,775 $ 8,966,825
Shares issued in reinvestment of
dividends and distributions 157,926 227,787 1,915,647 2,230,039
Shares redeemed......................... (418,741) (1,421,031) (5,158,383) (15,010,418)
----------------- ----------------- ----------------- -----------------
Net increase (decrease).................... 476,469 (378,677) $ 5,924,039 $ (3,813,554)
================= ================= ================= =================
Advisor Class
Shares sold............................. 40,143 387,963 $ 500,352 $ 4,202,308
Shares issued in reinvestment of
dividends and distributions.......... 9,937 18,391 124,107 183,179
Shares redeemed......................... (8,858) (405,419) (113,055) (4,463,419)
----------------- ----------------- ----------------- -----------------
Net increase (decrease)................... 41,222 935 $ 511,404 $ (77,932)
================= ================= ================= =================
</TABLE>
- --------------------------------------------------------------------------------
NOTE F: Concentration of Risk
Investing in securities of foreign companies involves special risks which
include changes in foreign exchange rates and the possibility of future
political and economic developments which could adversely affect the value of
such securities. 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 in whole
or in part are transferred 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,
16
<PAGE>
Alliance Worldwide Privatization Fund
================================================================================
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.
- --------------------------------------------------------------------------------
NOTE G: Restricted Securities
Date Acquired U.S. $ Cost
------------- -----------
B.W.I.A. International Airways................... 2/21/95 $2,999,999
Near East International.......................... 9/29/95 1,000,000
Press Corp., Ltd. ............................... 3/10/98 901,850
United Customer Management Solutions............. 11/22/95 1,934,400
The securities shown above are restricted as to resale and have been valued at
fair value in accordance with the procedures described in Note A. The Fund will
not bear any costs, including those involved in registration under the
Securities Act of 1933, in connection with the disposition of these securities.
The value of these securities at December 31, 1999 was $4,827,400 representing
0.8% of total net assets.
- --------------------------------------------------------------------------------
NOTE H: Bank Borrowing
A number of open-end mutual funds managed by the Adviser, including the Fund,
participate in a $750 million revolving credit facility (the "Facility")
intended to provide short-term financing if necessary, subject to certain
restrictions in connection with abnormal redemption activity. Commitment fees
related to the Facility are paid by the participating funds and are included in
miscellaneous expenses in the statement of operations. The Fund did not utilize
the facility during the six months ended December 31, 1999.
17
<PAGE>
FINANCIAL HIGHLIGHTS Alliance Worldwide Privatization Fund
================================================================================
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------
CLASS A
----------------------------------------------------------------------------------------
Six Months
Ended
December 31, Year Ended June 30,
1999 =======================================================================
(unaudited) 1999 1998 1997 1996 1995
============= ============ ============ ============ ============ ===========
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year...... $ 11.84 $ 12.67 $ 13.26 $ 12.13 $10.18 $ 9.75
------- ------- ------- ------- ------ -------
Income From Investment Operations
Net investment income (loss) (.04)(a) -0-(a) .10(a) .15(a) .10(a) .06
Net realized and unrealized gain on
investments and foreign currency
transactions......................... 4.17 .93 .85 2.55 1.85 .37
------- ------- ------- ------- ------ -------
Net increase in net asset value from
operations........................... 4.13 .93 .95 2.70 1.95 .43
------- ------- ------- ------- ------ -------
Less: Dividends and Distributions
Dividends from net investment
income............................... -0- (.12) (.18) (.15) -0- -0-
Distributions from net realized gains
on investments and foreign
currency transactions................ (1.06) (1.64) (1.36) (1.42) -0- -0-
------- ------- ------- ------- ------ -------
Total dividends and distributions....... (1.06) (1.76) (1.54) (1.57) -0- -0-
------- ------- ------- ------- ------ -------
Net asset value, end of period.......... $ 14.91 $ 11.84 $ 12.67 $ 13.26 $12.13 $ 10.18
======= ======= ======= ======= ====== =======
Total Return
Total investment return based on
net asset value(b)................... 36.52% 9.86% 9.11% 25.16% 19.16% 4.41%
Ratios/Supplemental Data
Net assets, end of year
(000's omitted)...................... $418,789 $340,194 $467,960 $561,793 $672,732 $13,535
Ratio of expenses to average
net assets........................... 1.85%(c)(d) 1.92%(c) 1.73% 1.72% 1.87% 2.56%
Ratio of expenses to average net
assets excluding interest expense.... 1.85%(c)(d) 1.92%(c) 1.73% 1.71% 1.85% 2.56%
Ratio of net investment income
(loss) to average net assets......... (.56)%(d) (.01)% .80% 1.27% .95% .66%
Portfolio turnover rate................. 56% 58% 53% 48% 28% 36%
</TABLE>
- --------------------------------------------------------------------------------
See footnote summary on page 21.
18
<PAGE>
Alliance Worldwide Privatization Fund
================================================================================
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------
CLASS B
---------------------------------------------------------------------------------------
Six Months
Ended
December 31, Year Ended June 30,
o 1999 ======================================================================
(unaudited) 1999 1998 1997 1996 1995
============= ============ ============ ============ ============ ===========
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year...... $ 11.50 $ 12.37 $ 13.04 $ 11.96 $10.10 $ 9.74
------- ------- ------- ------- ------ -------
Income From Investment Operations
Net investment income (loss)............ (.08)(a) (.08)(a) .02(a) .08(a) (.02)(a) .02
Net realized and unrealized gain
on investments and foreign currency
transactions......................... 4.04 .89 .82 2.50 1.88 .34
------- ------- ------- ------- ------ -------
Net increase in net asset value from
operations........................... 3.96 .81 .84 2.58 1.86 .36
------- ------- ------- ------- ------ -------
Less: Dividends and Distributions
Dividends from net investment income.... -0- (.04) (.15) (.08) -0- -0-
Distributions from net realized gains
on investments and foreign
currency transactions. .............. (1.06) (1.64) (1.36) (1.42) -0- -0-
------- ------- ------- ------- ------ -------
Total dividends and distributions....... (1.06) (1.68) (1.51) (1.50) -0- -0-
------- ------- ------- ------- ------ -------
Net asset value, end of period.......... $ 14.40 $ 11.50 $ 12.37 $ 13.04 $11.96 $ 10.10
======= ======= ======= ======= ====== =======
Total Return
Total investment return based on
net asset value(b)................... 36.12% 8.91% 8.34% 24.34% 18.42% 3.70%
Ratios/Supplemental Data
Net assets, end of year (000's omitted). $158,601 $117,420 $156,348 $121,173 $83,050 $79,359
Ratio of expenses to average net assets. 2.60%(c)(d) 2.63%(c) 2.45% 2.43% 2.83% 3.27%
Ratio of expenses to average net
assets excluding interest expense ... 2.60%(c)(d) 2.63%(c) 2.45% 2.42% 2.82% 3.27%
Ratio of net investment income
(loss) to average net assets......... (1.31)%(d) (1.43)% .20% .66% (.20)% .01%
Portfolio turnover rate................. 56% 58% 53% 48% 28% 36%
</TABLE>
- --------------------------------------------------------------------------------
See footnote summary on page 21.
19
<PAGE>
FINANCIAL HIGHLIGHTS (continued) Alliance Worldwide Privatization Fund
================================================================================
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------
CLASS C
----------------------------------------------------------------------------------------
Six Months February 8,
Ended 1995(e)
December 31, Year Ended June 30, to
1999 ========================================================= June 30,
(unaudited) 1999 1998 1997 1996 1995
============= ============ ============ ============ ============ ============
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.... $ 11.50 $ 12.37 $ 13.04 $ 11.96 $10.10 $ 9.53
------- ------- ------- ------- ------ -------
Income From Investment Operations
Net investment income (loss)............ (.08)(a) (.08)(a) .05(a) .12(a) .03(a) .05
Net realized and unrealized gain on
investments and foreign
currency transactions. .............. 4.03 .89 .79 2.46 1.83 .52
------- ------- ------- ------- ------ -------
Net increase in net asset value from
operations........................... 3.95 .81 .84 2.58 1.86 .57
------- ------- ------- ------- ------ -------
Less: Dividends and Distributions
Dividends from net investment income.... -0- (.04) (.15) (.08) -0- -0-
Distributions from net realized gains
on investments and foreign
currency transactions................ (1.06) (1.64) (1.36) (1.42) -0- -0-
------- ------- ------- ------- ------ -------
Total dividends and distributions....... (1.06) (1.68) (1.51) (1.50) -0- -0-
------- ------- ------- ------- ------ -------
Net asset value, end of period.......... $ 14.39 $ 11.50 $ 12.37 $ 13.04 $11.96 $ 10.10
======= ======= ======= ======= ====== =======
Total Return
Total investment return based on
net asset value(b)................... 36.03% 8.91% 8.34% 24.33% 18.42% 5.98%
Ratios/Supplemental Data
Net assets, end of period
(000's omitted)...................... $32,382 $20,397 $26,635 $12,929 $2,383 $338
Ratio of expenses to average
net assets........................... 2.59%(c)(d) 2.63%(c) 2.44% 2.42% 2.57% 1.03%(d)
Ratio of expenses to average net
assets excluding interest expense.... 2.59%(c)(d) 2.62%(c) 2.44% 2.41% 2.57% 1.03%(d)
Ratio of net investment income
(loss) to average net assets......... (1.29)%(d) (1.44)% .38% 1.06% .63% 1.04%(d)
Portfolio turnover rate.............. 56% 58% 53% 48% 28% 36%
</TABLE>
- --------------------------------------------------------------------------------
See footnote summary on page 21.
20
<PAGE>
Alliance Worldwide Privatization Fund
================================================================================
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
<TABLE>
<CAPTION>
--------------------------------------------------------
ADVISOR CLASS
--------------------------------------------------------
Six Months
Ended
December 31, Year Ended June 30, October 2, 1996(e)
1999 ========================== to
(unaudited) 1999 1998 June 30, 1997
============ ============ =========== =============
<S> <C> <C> <C> <C>
Net asset value, beginning of period ............................. $ 11.77 $ 12.63 $13.23 $ 12.14
------- ------- ------ -------
Income From Investment Operations
Net investment income (loss)(a)................................... (.02) .02 .19 .18
Net realized and unrealized gain on
investments and foreign
currency transactions.......................................... 4.14 .93 .80 2.52
------- ------- ------ -------
Net increase in net asset value from
operations..................................................... 4.12 .95 .99 2.70
------- ------- ------ -------
Less: Dividends and Distributions
Dividends from net investment income.............................. -0- (.17) (.23) (.19)
Distributions from net realized gains on
investments and foreign
currency transactions.......................................... (1.06) (1.64) (1.36) (1.42)
------- ------- ------ -------
Total dividends and distributions. ............................ (1.06) (1.81) (1.59) (1.61)
------- ------- ------ -------
Net asset value, end of period.................................... $ 14.83 $ 11.77 $12.63 $ 13.23
======= ======= ====== =======
Total Return
Total investment return based on
net asset value(b) ............................................. 36.66% 10.12% 9.48% 25.24%
Ratios/Supplemental Data
Net assets, end of period (000's omitted)......................... $ 2,641 $ 1,610 $1,716 $374
Ratio of expenses to average net assets........................... 1.55%(c)(d) 1.62%(c) 1.45% 1.96%(d)
Ratio of expenses to average net assets
excluding interest expense..................................... 1.55%(c)(d) 1.62%(c) 1.45% 1.95%(d)
Ratio of net investment income to
average net assets............................................. (.26)%(d) .37% 1.48% 2.97%(d)
Portfolio turnover rate........................................... 56% 58% 53% 48%
</TABLE>
- --------------------------------------------------------------------------------
(a) Based on average shares outstanding.
(b) Total investment return is calculated assuming an initial investment made
at the net asset value at the beginning of the period, reinvestment of all
dividends and distributions at net asset value during the period, and
redemption on the last day of the period. Initial sales charge or
contingent deferred sales charge is not reflected in the calculation of
total investment return. Total investment return for a period of less than
one year is not annualized.
(c) Ratios reflect expenses grossed up for expense offset arrangement with the
Transfer Agent. For the six months ended December 31, 1999 and the year
ended June 30, 1999, the ratios of expenses to average net assets were
1.84% and 1.91% for Class A shares, 2.59% and 2.62% for Class B shares,
2.58% and 2.61% for Class C shares and 1.54% and 1.61% for Advisor Class
shares, respectively.
(d) Annualized.
(e) Commencement of distribution.
21
<PAGE>
Alliance Worldwide Privatization Fund
================================================================================
BOARD OF DIRECTORS
John D. Carifa, Chairman and President
Ruth Block (1)
David H. Dievler (1)
John H. Dobkin (1)
William H. Foulk, Jr. (1)
Dr. James M. Hester (1)
Clifford L. Michel (1)
Donald J. Robinson (1)
OFFICERS
Mark H. Breedon, Senior Vice President
Kathleen A. Corbet, Senior Vice President
Thomas J. Bardong, Vice President
Russell Brody, Vice President
David Edgerly, Vice President
Jean Van De Walle, Vice President
Edmund P. Bergan, Jr., Secretary
Mark D. Gersten, Treasurer & Chief Financial Officer
Vincent S. Noto, Controller
Michael Levy, Assistant Vice President
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
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, NY 10036
LEGAL COUNSEL
Seward & Kissel LLP
One Battery Park Plaza
New York, NY 10004
- --------------------------------------------------------------------------------
(1) Member of the Audit Committee.
22
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<PAGE>
---------------
ALLIANCE WORLDWIDE PRIVATIZATION FUND BULK RATE
1345 Avenue of the Americas U.S. POSTAGE
New York, NY 10105 PAID
(800) 221-5672 New York, NY
Permit No. 7131
---------------
Alliance Capital [LOGO](R)
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.
WWPSR1299
