-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, EEJhxvZZJIedgfgu63PAfPtLxKdOd9fqA3JL4/dnODnKx2JoOCorOQ+fdhrsr1YZ j972yAdhlLTKAL5CRGU3WA== 0000936772-02-000068.txt : 20020414 0000936772-02-000068.hdr.sgml : 20020414 ACCESSION NUMBER: 0000936772-02-000068 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20011130 FILED AS OF DATE: 20020206 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ALLIANCEBERNSTEIN TRUST CENTRAL INDEX KEY: 0001129870 STATE OF INCORPORATION: MA FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-10221 FILM NUMBER: 02528390 BUSINESS ADDRESS: STREET 1: 1345 AVENUE OF THE AMERICAS CITY: NEW YORK STATE: NY ZIP: 10105 BUSINESS PHONE: 2129691000 MAIL ADDRESS: STREET 1: 1345 AVENUE OF THE AMERICAS CITY: NEW YORK STATE: NY ZIP: 10105 FORMER COMPANY: FORMER CONFORMED NAME: ALLIANCEBERNSTEIN VALUE TRUST DATE OF NAME CHANGE: 20001212 N-30D 1 edg7418.txt - -------------------------------------------------------------------------------- LARGE-CAP VALUE - -------------------------------------------------------------------------------- AllianceBernstein Value Fund Annual Report November 30, 2001 [GRAPHIC OMITTED] Alliance Capital [LOGO](R) The Investment Professional's Choice Investment Products Offered --------------------------- o Are Not FDIC Insured o May Lose Value o Are Not Bank Guaranteed --------------------------- This shareholder report must be preceded or accompanied by the Fund's prospectus for individuals who are not current shareholders of the Fund. Alliance Fund Distributors, Inc., the principal underwriter of the Alliance mutual funds and an affiliate of Alliance Capital Management L.P., the manager of the funds, is a member of the NASD. ---------------------- LETTER TO SHAREHOLDERS ---------------------- LETTER TO SHAREHOLDERS January 16, 2002 Dear Shareholder: This report provides an update of the performance and market review for AllianceBernstein Value Fund (the "Fund") since the Fund's inception through November 30, 2001. Investment Objective and Policies This open-end Fund seeks long-term growth of capital by investing primarily in a diversified portfolio of equity securities of companies with relatively large market capitalizations that Alliance believes are undervalued. The Fund's policies emphasize investment in companies that are determined by Alliance to be undervalued, using the fundamental value approach of Alliance's Bernstein unit ("Bernstein"). In selecting securities for the Fund's portfolio, Bernstein uses its fundamental research to identify companies whose long-term earnings power and dividend paying capability are not reflected in the current market price of their securities. Investment Results The following table provides performance for the Fund and its benchmark, the Russell 1000 Value Index, for the six-month period ended November 30, 2001 and since the Fund's inception on March 29, 2001. INVESTMENT RESULTS* Periods Ended November 30, 2001 ------------------- Total Returns ------------------- Since 6 Months Inception** - ------------------------------------------------------------------------------ AllianceBernstein Value Fund Class A -3.84% 2.60% - ------------------------------------------------------------------------------ Class B -4.22% 2.20% - ------------------------------------------------------------------------------ Class C -4.22% 2.10% - ------------------------------------------------------------------------------ Russell 1000 Value Index -8.66% -2.03% - ------------------------------------------------------------------------------ * The Fund's investment results represent total returns for the periods shown and are based on the net asset value (NAV) of each class of shares as of November 30, 2001. 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. Returns for Advisor Class shares will vary due to different expenses associated with this class. Returns for the Fund include the reinvestment of any distributions paid during each period. Past performance is no guarantee of future results. ** The Fund's inception date for all share classes is March 29, 2001. Data for the Russell 1000 Value Index is shown from March 31, - -------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VALUE FUND o 1 - ---------------------- LETTER TO SHAREHOLDERS - ---------------------- 2001, the first month-end following the Fund's inception. The Russell 1000 Value Index is an unmanaged index of securities in the Russell 1000 Index with a greater-than-average value orientation. The Russell 1000 Index is an unmanaged index comprised of the 1000 largest-capitalization companies that are traded in the United States. The indices reflect no fees or expenses. An investor cannot invest directly in an index, and its results are not indicative of any specific investment, including AllianceBernstein Value Fund. Additional investment results appear on pages 6-7. In the generally weak overall market environment, the Fund held up better than its benchmark over the six-month period and since the Fund's inception. This outperformance was largely attributable to strong stock selection. Underweight positions in the technology and telecommunications sectors, which fared poorly until the last two months of the reporting period, contributed in part to the Fund's outperformance. More importantly, the largest portion of the Fund's premium came from selecting better-than-average performers across virtually all sectors. Market Review The stock market weakened early in the year, as concerns mounted about the downturn in the economy. Then, just as it began to look as if we were nearing the bottom of the economic cycle, the September 11 attacks forestalled hopes of near-term recovery, and stocks sold off in the weeks that followed. The events of September 11 made investors far more risk averse than they had been for much of the 1990s. As investments with the least risk gained new allure in the increasingly uncertain economic environment, prices for bonds and equities fell while their potential returns rose. Bonds became more attractively priced relative to short-term instruments, and stocks became more attractive relative to bonds than they had been for five or six years. At the same time, several developments were moderating equity risk. Central banks around the world moved to stave off more pronounced economic slowing by continuing to aggressively reduce interest rates. Although earnings reports continued to show weakness, in many cases they proved stronger than many analysts had expected following the September 11 disruption. - -------------------------------------------------------------------------------- 2 o ALLIANCEBERNSTEIN VALUE FUND ---------------------- LETTER TO SHAREHOLDERS ---------------------- Earnings resilience stemmed in part from the fact that while many businesses had cut production, sales were greater than anticipated because of better-than-expected consumer spending. As a result, inventories across many businesses have contracted rapidly. Now, the outlook for the economy is improving partly because production must be increased in order to restore inventories to normal levels. Indications of improving fundamentals helped spark a rally in the markets during the final two months of the reporting period, with technology and telecommunications stocks as the primary beneficiaries. Strategy Review The strength of technology and telecommunications stocks in October and November raised the question of whether we have reached the end of the value recovery that began in March 2000, which had been benefiting value stocks like those that the Fund emphasizes. With the value opportunity in the market now at a normal level, we think there is ample opportunity for good performance from value stocks. Although technology and telecommunications stocks have enjoyed a short-term resurgence, our analysis shows, in general, that they are now priced too high in relation to realistic earnings prospects. Earlier we had moved to take advantage of more attractively priced opportunities in this area, purchasing shares of WorldCom, Inc.--WorldCom Group (a telecommunications-service company) and Tellabs, Inc. (a telecommunications-equipment company), for example. For the technology and telecommunications sectors in general, fundamentals have to improve considerably before current stock prices look attractive. Others sectors, we believe, presently offer more compelling value opportunities. One area where values are particularly pronounced is in the financial sector, which has traded down on investor fears that credit losses on consumer and business loans would rise in a weak economy. In our view, the market has overreacted and priced these stocks well below their fair value. Since they are a lagging indicator of economic performance, we agree that credit losses are likely to rise in the period just ahead. However, we think credit problems will be contained, because banks did not finance the excesses of the last cycle. Given banks' generally strong capital ratios and lower loan losses as compared to the last recession, we think that many banks are well positioned to absorb their loan losses, particularly since the steep yield curve has improved interest margins for most institutions. - -------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VALUE FUND o 3 - ---------------------- LETTER TO SHAREHOLDERS - ---------------------- Pro-cyclical stocks--industrial resource producers, railroads and retailers--also offer attractive opportunity, despite their strong performance this year. These stocks generally outperformed their benchmarks because investors recognized that their stock prices did not accurately reflect their future earnings capability. Industrial resource producers, for example, rallied as investors recognized that they were well positioned to deliver large earnings gains in an economic recovery due to management showing unusual restraint in adding capacity in recent years. Railroads gained on increased investor confidence in their ability to improve operations. Retail stocks benefited from growing investor recognition that traditional retailing was not nearly as threatened by Internet sales as was feared two years ago. As a result of their strong performance, some cyclical stocks are no longer as deeply undervalued--and we have reduced our overweight positions in these issues. However, we continue to find many of these stocks (and other "Old Economy" stocks) attractively priced in relation to our forecasts for their earnings over the next few years. The Fund's current position in cyclical stocks remains meaningfully larger than their weight in the Russell 1000 Value Index. Outlook Amid continued uncertainty about the timing of the economic recovery, we continue to emphasize companies with solid balance sheets that should sustain them even if the environment remains weak--and make them among the first to benefit should the environment improve. A significant portion of the Fund's holdings is invested in well-capitalized, consumer-oriented financial companies that have traded down too far in response to credit losses that we expect will not be extensive. Another meaningful piece of the Fund's portfolio is invested in those cyclical companies whose disciplined investment programs over the past few years have kept capacity in check. Finally, the Fund is invested in defensive stocks such as electric utilities and energy; we have made these investments because they offer good value, but they should also serve to cushion the Fund's portfolio if economic weakness persists. We continue to see significant potential for outperformance through value-oriented stock selection. - -------------------------------------------------------------------------------- 4 o ALLIANCEBERNSTEIN VALUE FUND ---------------------- LETTER TO SHAREHOLDERS ---------------------- We thank you for your interest and investment in AllianceBernstein Value Fund. We look forward to reporting to you on the Fund's performance in the future. Sincerely, /s/ John D. Carifa John D. Carifa Chairman and President /s/ Marilyn G. Fedak Marilyn G. Fedak Senior Vice President /s/ Steven Pisarkiewicz Steven Pisarkiewicz Senior Vice President [PHOTO OMITTED] John D. Carifa [PHOTO OMITTED] Marilyn G. Fedak [PHOTO OMITTED] Steven Pisarkiewicz Portfolio Managers, Ms. Fedak and Mr. Pisarkiewicz, have 45 years of combined investment experience. - -------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VALUE FUND o 5 - ----------------- PORTFOLIO SUMMARY - ----------------- PORTFOLIO SUMMARY November 30, 2001 INCEPTION DATES Class A Shares 3/29/01 Class B Shares 3/29/01 Class C Shares 3/29/01 PORTFOLIO STATISTICS Net Assets ($mil): $198.1 SECTOR BREAKDOWN 33.5% Financial 11.6% Utilities 10.3% Consumer Cyclicals 9.7% Energy 7.2% Consumer Staples 7.0% Industrial Commodities [PIE CHART OMITTED] 5.3% Technology 3.6% Capital Equipment 3.1% Consumer Growth 1.9% Non-Financial 1.5% Services 5.3% Short-Term HOLDING TYPE 94.7% Equity [PIE CHART OMITTED] 5.3% Short-Term All data as of November 30, 2001. The Fund's sector breakdown and holding type are expressed as a percentage of total investments and may vary over time. - -------------------------------------------------------------------------------- 6 o ALLIANCEBERNSTEIN VALUE FUND ------------------ INVESTMENT RESULTS ------------------ INVESTMENT RESULTS CUMULATIVE TOTAL RETURNS AS OF NOVEMBER 30, 2001 Class A Shares - -------------------------------------------------------------------------------- Without Sales Charge With Sales Charge Since Inception* 2.60% -1.72% Class B Shares - -------------------------------------------------------------------------------- Without Sales Charge With Sales Charge Since Inception* 2.20% -1.80% Class C Shares - -------------------------------------------------------------------------------- Without Sales Charge With Sales Charge Since Inception* 2.10% 1.10% SEC CUMULATIVE TOTAL RETURNS (WITH SALES CHARGES) AS OF THE MOST RECENT QUARTER-END (DECEMBER 31, 2001) Class A Class B Class C Shares Shares Shares - -------------------------------------------------------------------------------- Since Inception* 0.28% 0.21% 3.21% The Fund's investment results represent cumulative total returns. The returns reflect reinvestment of dividends and/or capital gains distributions in additional shares without and with the effect of the 4.25% maximum front-end sales charge for Class A or applicable contingent deferred sales charge for Class B (4% year 1, 3% year 2, 2% year 3, 1% year 4); 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 this class. The Fund can invest in foreign securities, which may magnify fluctuations due to changes in foreign exchange rates and the possibility of substantial volatility due to political and economic uncertainties in foreign countries. 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 date for all share classes: 3/29/01. - -------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VALUE FUND o 7 - -------------------- TEN LARGEST HOLDINGS - -------------------- TEN LARGEST HOLDINGS November 30, 2001 Percent of Companies Value Net Assets - -------------------------------------------------------------------------------- Exxon Mobil Corp. $ 8,228,000 4.2% - -------------------------------------------------------------------------------- Citigroup, Inc. 6,945,500 3.5 - -------------------------------------------------------------------------------- Verizon Communications, Inc. 5,715,200 2.9 - -------------------------------------------------------------------------------- Bank of America Corp. 4,603,500 2.3 - -------------------------------------------------------------------------------- Wells Fargo & Co. 3,415,440 1.7 - -------------------------------------------------------------------------------- ChevronTexaco Corp. 3,375,747 1.7 - -------------------------------------------------------------------------------- Federal National Mortgage Assn. 3,301,200 1.7 - -------------------------------------------------------------------------------- Philip Morris Companies, Inc. 3,160,390 1.6 - -------------------------------------------------------------------------------- SBC Communications, Inc. 3,065,160 1.5 - -------------------------------------------------------------------------------- Bank One Corp. 2,583,360 1.3 - -------------------------------------------------------------------------------- $ 44,393,497 22.4% MAJOR PORTFOLIO CHANGES Six Months Ended November 30, 2001 ------------------------------------- Shares* ------------------------------------- Purchases Bought Holdings 11/30/01 - -------------------------------------------------------------------------------- Bank of America Corp. 45,200 75,000 - -------------------------------------------------------------------------------- Citigroup, Inc. 83,600 145,000 - -------------------------------------------------------------------------------- Exxon Mobil Corp. 178,800 220,000 - -------------------------------------------------------------------------------- Federal National Mortgage Assn. 23,500 42,000 - -------------------------------------------------------------------------------- Hewlett-Packard Co. 104,000 110,000 - -------------------------------------------------------------------------------- J.P. Morgan Chase & Co. 48,900 66,000 - -------------------------------------------------------------------------------- U.S. Bancorp 111,900 119,000 - -------------------------------------------------------------------------------- Verizon Communications, Inc. 75,900 121,600 - -------------------------------------------------------------------------------- Wells Fargo & Co. 48,400 79,800 - -------------------------------------------------------------------------------- WorldCom, Inc.-WorldCom Group 173,500 173,500 - -------------------------------------------------------------------------------- Sales Sold Holdings 11/30/01 - -------------------------------------------------------------------------------- American International Group, Inc. 14,147 8,053 - -------------------------------------------------------------------------------- C.R. Bard, Inc. 5,400 -0- - -------------------------------------------------------------------------------- Cooper Industries, Inc. 12,800 -0- - -------------------------------------------------------------------------------- IBP, Inc. 22,100 -0- - -------------------------------------------------------------------------------- Johnson & Johnson 7,000 6,000 - -------------------------------------------------------------------------------- Kerr-McGee Corp. 6,300 -0- - -------------------------------------------------------------------------------- McKesson HBOC, Inc. 9,700 -0- - -------------------------------------------------------------------------------- Schering-Plough Corp. 9,900 -0- - -------------------------------------------------------------------------------- The Southern Co. 22,700 -0- - -------------------------------------------------------------------------------- Unocal Corp. 14,100 -0- - -------------------------------------------------------------------------------- * Adjusted for a spin-off and stock splits. - -------------------------------------------------------------------------------- 8 o ALLIANCEBERNSTEIN VALUE FUND ------------------------ PORTFOLIO OF INVESTMENTS ------------------------ PORTFOLIO OF INVESTMENTS November 30, 2001 Company Shares Value - -------------------------------------------------------------------------------- COMMON STOCKS-94.5% Financial-33.5% Banks - NYC-4.8% Citigroup, Inc. .................................... 145,000 $ 6,945,500 J. P. Morgan Chase & Co. ........................... 66,000 2,489,520 -------------- 9,435,020 -------------- Finance - Personal Loans-0.7% American Express Co. ............................... 10,400 342,264 Countrywide Credit Industries, Inc. ................ 25,000 1,062,000 -------------- 1,404,264 -------------- Life Insurance-1.1% MetLife, Inc. ...................................... 43,000 1,179,490 Torchmark Corp. .................................... 23,900 942,855 -------------- 2,122,345 -------------- Major Regional Banks-15.0% AmSouth Bancorp. ................................... 63,000 1,154,160 Bank of America Corp. .............................. 75,000 4,603,500 Bank One Corp. ..................................... 69,000 2,583,360 Charter One Financial, Inc. ........................ 35,700 983,535 FleetBoston Financial Corp. ........................ 67,000 2,462,250 Huntington Bancshares, Inc. ........................ 63,300 1,024,827 KeyCorp. ........................................... 57,000 1,305,300 National City Corp. ................................ 56,000 1,568,000 Regions Financial Corp. ............................ 38,000 1,093,260 SouthTrust Corp. ................................... 51,000 1,247,970 SunTrust Banks, Inc. ............................... 23,000 1,454,980 Union Planters Corp. ............................... 27,000 1,172,070 UnionBanCal Corp. .................................. 22,300 819,302 U.S. Bancorp........................................ 119,000 2,258,620 Wachovia Corp. ..................................... 82,200 2,544,090 Wells Fargo & Co. .................................. 79,800 3,415,440 -------------- 29,690,664 -------------- Miscellaneous Financial-2.8% Lehman Brothers Holdings, Inc. ..................... 23,800 1,574,370 Merrill Lynch & Co., Inc. .......................... 22,900 1,147,061 MGIC Investment Corp. .............................. 19,900 1,165,145 Morgan Stanley Dean Witter & Co. ................... 30,000 1,665,000 -------------- 5,551,576 -------------- Multi-Line Insurance-2.3% Aetna, Inc. ........................................ 25,000 779,250 American International Group, Inc. ................. 8,053 663,567 CIGNA Corp. ........................................ 16,400 1,496,172 Health Net, Inc.(a)................................. 45,200 904,000 Humana, Inc.(a)..................................... 62,100 781,218 -------------- 4,624,207 -------------- - -------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VALUE FUND o 9 - ------------------------ PORTFOLIO OF INVESTMENTS - ------------------------ Company Shares Value - -------------------------------------------------------------------------------- Property / Casualty Insurance-2.9% Allstate Corp. ..................................... 55,900 $ 1,914,016 Aon Corp. .......................................... 23,800 852,754 Chubb Corp. ........................................ 13,000 910,780 Old Republic International Corp. ................... 18,000 483,300 St. Paul Companies, Inc. ........................... 18,000 847,440 XL Capital, Ltd. Cl.A............................... 8,400 781,032 -------------- 5,789,322 -------------- Savings & Loan-3.9% Federal Home Loan Mortgage Corp. ................... 20,000 1,323,400 Federal National Mortgage Assn. .................... 42,000 3,301,200 Golden West Financial Corp. ........................ 21,000 1,085,700 Washington Mutual, Inc. ............................ 63,350 1,981,588 -------------- 7,691,888 -------------- 66,309,286 -------------- Utilities-11.6% Electric Companies-3.8% Ameren Corp. ....................................... 28,000 1,144,640 American Electric Power Co., Inc. .................. 34,000 1,402,500 Cinergy Corp. ...................................... 36,000 1,061,280 CMS Energy Corp. ................................... 11,100 255,633 Consolidated Edison, Inc. .......................... 30,000 1,158,600 FirstEnergy Corp. .................................. 19,000 641,820 Western Resources, Inc. ............................ 34,000 586,500 Wisconsin Energy Corp. ............................. 10,500 229,425 Xcel Energy, Inc. .................................. 38,000 1,037,780 -------------- 7,518,178 -------------- Telephone-7.8% AT&T Corp. ......................................... 69,400 1,213,806 BellSouth Corp. .................................... 35,000 1,347,500 SBC Communications, Inc. ........................... 82,000 3,065,160 Sprint Corp. ....................................... 73,000 1,590,670 Verizon Communications, Inc. ....................... 121,600 5,715,200 WorldCom, Inc.-WorldCom Group(a).................... 173,500 2,522,690 -------------- 15,455,026 -------------- 22,973,204 -------------- Consumer Cyclicals-10.2% Apparel Manufacturing-1.3% Jones Apparel Group, Inc.(a)........................ 30,700 958,454 Liz Claiborne, Inc. ................................ 21,000 1,049,580 V. F. Corp. ........................................ 17,000 645,660 -------------- 2,653,694 -------------- Auto Parts - After Market-1.0% Genuine Parts Co. .................................. 35,300 1,189,610 Snap-On, Inc. ...................................... 25,000 782,500 -------------- 1,972,110 -------------- - -------------------------------------------------------------------------------- 10 o ALLIANCEBERNSTEIN VALUE FUND ------------------------ PORTFOLIO OF INVESTMENTS ------------------------ Company Shares Value - -------------------------------------------------------------------------------- Autos & Auto Parts-2.4% Autoliv, Inc. ...................................... 36,400 $ 671,580 Dana Corp. ......................................... 27,100 371,270 Ford Motor Co. ..................................... 42,700 808,738 General Motors Corp. ............................... 12,200 606,340 Lear Corp.(a)....................................... 26,000 929,500 TRW, Inc. .......................................... 20,100 784,302 Visteon Corp. ...................................... 38,000 524,400 -------------- 4,696,130 -------------- Home Furnishings-0.5% Leggett & Platt, Inc. .............................. 50,000 1,082,000 -------------- Hotel/Motel-0.3% Hilton Hotels Corp. ................................ 70,000 693,000 -------------- Household - Appliances/Durables-1.1% Black & Decker Corp. ............................... 29,000 1,074,160 Whirlpool Corp. .................................... 17,000 1,117,920 -------------- 2,192,080 -------------- Miscellaneous-1.0% Fortune Brands, Inc. ............................... 30,000 1,178,100 Newell Rubbermaid, Inc. ............................ 31,600 810,540 -------------- 1,988,640 -------------- Retailers-2.3% Big Lots, Inc.(a)................................... 9,900 93,060 Federated Department Stores, Inc.(a)................ 33,500 1,239,500 May Department Stores Co. .......................... 26,400 946,176 Sears, Roebuck & Co. ............................... 34,000 1,547,340 TJX Cos, Inc. ...................................... 18,500 697,265 -------------- 4,523,341 -------------- Tires & Rubber Goods-0.3% Goodyear Tire & Rubber Co. ......................... 22,400 501,760 -------------- 20,302,755 -------------- Energy-9.7% Oils - Integrated Domestic-3.0% Amerada Hess Corp. ................................. 8,800 511,280 Ashland, Inc. ...................................... 24,500 1,044,925 Occidental Petroleum Corp. ......................... 49,500 1,237,500 Phillips Petroleum Co. ............................. 26,000 1,446,380 Sunoco, Inc. ....................................... 22,000 804,320 Ultramar Diamond Shamrock Corp. .................... 10,300 494,400 Valero Energy Corp. ................................ 13,100 458,500 -------------- 5,997,305 -------------- - -------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VALUE FUND o 11 - ------------------------ PORTFOLIO OF INVESTMENTS - ------------------------ Company Shares Value - -------------------------------------------------------------------------------- Oils - Integrated International-6.7% ChevronTexaco Corp. ................................ 39,710 $ 3,375,747 Conoco, Inc. ....................................... 59,000 1,614,830 Exxon Mobil Corp. .................................. 220,000 8,228,000 -------------- 13,218,577 -------------- 19,215,882 -------------- Consumer Staples-7.2% Foods-3.0% ConAgra Foods, Inc. ................................ 57,000 1,309,290 H.J. Heinz Co. ..................................... 23,514 896,354 Hormel Foods Corp. ................................. 42,000 1,051,680 Kellogg Co. ........................................ 16,800 495,432 Sara Lee Corp. ..................................... 57,000 1,247,160 Tyson Foods, Inc. Cl.A.............................. 79,738 959,248 -------------- 5,959,164 -------------- Restaurants-0.6% McDonald's Corp. ................................... 6,200 166,408 Wendy's International, Inc. ........................ 37,000 1,051,910 -------------- 1,218,318 -------------- Retail - Food-0.4% SUPERVALU, Inc. .................................... 35,600 807,052 -------------- Soaps & Household Chemicals-0.8% Procter & Gamble Co. ............................... 21,000 1,626,660 -------------- Sugar Refiners-0.8% Archer-Daniels-Midland Co. ......................... 95,375 1,467,821 -------------- Tobacco-1.6% Philip Morris Companies, Inc. ...................... 67,000 3,160,390 -------------- 14,239,405 -------------- Industrial Commodities-7.0% Chemicals-4.2% Cabot Corp. ........................................ 17,100 620,901 Dow Chemical Co. ................................... 57,000 2,137,500 E. I. du Pont de Nemours & Co. ..................... 35,600 1,578,504 Eastman Chemical Co. ............................... 12,800 491,136 Hercules, Inc.(a)................................... 31,700 320,170 Lubrizol Corp. ..................................... 21,500 685,635 PPG Industries, Inc. ............................... 24,400 1,311,988 Praxair, Inc. ...................................... 21,500 1,137,780 -------------- 8,283,614 -------------- Containers-0.2% Bemis Co., Inc. .................................... 4,500 226,215 Owens-Illinois, Inc.(a)............................. 19,300 158,646 -------------- 384,861 -------------- - -------------------------------------------------------------------------------- 12 o ALLIANCEBERNSTEIN VALUE FUND ------------------------ PORTFOLIO OF INVESTMENTS ------------------------ Company Shares Value - -------------------------------------------------------------------------------- Paper-2.6% Boise Cascade Corp. ................................ 25,800 $ 826,632 Georgia-Pacific Corp. .............................. 42,000 1,346,520 International Paper Co. ............................ 13,500 539,325 Smurfit-Stone Container Corp.(a).................... 62,800 1,010,452 Temple-Inland, Inc. ................................ 13,500 771,390 Westvaco Corp. ..................................... 26,400 755,304 -------------- 5,249,623 -------------- 13,918,098 -------------- Technology-5.3% Communication - Equip. Mfrs.-0.4% Tellabs, Inc.(a).................................... 55,700 851,096 -------------- Computers-2.1% Hewlett-Packard Co. ................................ 110,000 2,418,900 International Business Machines Corp. .............. 9,000 1,040,310 Quantum Corp. - DLT & Storage Systems(a)............ 75,000 712,500 -------------- 4,171,710 -------------- Computer Services/Software-0.6% Electronic Data Systems Corp. ...................... 17,000 1,176,740 -------------- Miscellaneous Industrial Technology-2.0% Arrow Electronics, Inc.(a).......................... 31,625 870,320 Avnet, Inc. ........................................ 37,000 878,750 C-MAC Industries, Inc. (Canada)(a).................. 8,825 228,126 Ingram Micro, Inc. Cl.A(a).......................... 50,000 770,000 Solectron Corp.(a).................................. 54,700 804,090 Tech Data Corp.(a).................................. 10,300 471,843 -------------- 4,023,129 -------------- Semi-Conductors-0.2% Motorola, Inc. ..................................... 18,000 299,520 -------------- 10,522,195 -------------- Capital Equipment-3.5% Aerospace & Defense-0.5% Goodrich Corp. ..................................... 39,400 960,178 -------------- Auto & Truck Parts-0.9% Cummins, Inc. ...................................... 18,000 652,680 Eaton Corp. ........................................ 15,000 1,044,150 -------------- 1,696,830 -------------- Defense-1.0% Lockheed Martin Corp. .............................. 16,100 747,845 Raytheon Co. ....................................... 40,900 1,340,293 -------------- 2,088,138 -------------- Electrical Equipment-0.4% Hubbell, Inc. Cl.B.................................. 18,000 490,140 Thomas & Betts Corp. ............................... 15,200 310,232 -------------- 800,372 -------------- - -------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VALUE FUND o 13 - ------------------------ PORTFOLIO OF INVESTMENTS - ------------------------ Company Shares Value - -------------------------------------------------------------------------------- Machinery-0.1% Briggs & Stratton Corp. ............................ 4,500 $ 173,790 -------------- Miscellaneous Capital Goods-0.6% Minnesota Mining and Manufacturing Co. ............. 1,300 148,954 Parker-Hannifin Corp. .............................. 20,400 837,420 Tyco International, Ltd. (Bermuda).................. 5,100 299,880 -------------- 1,286,254 -------------- 7,005,562 -------------- Consumer Growth-3.1% Drugs-1.5% Bristol-Myers Squibb Co. ........................... 14,700 790,272 Eli Lilly & Co. .................................... 2,300 190,141 Merck & Co., Inc. .................................. 29,500 1,998,625 -------------- 2,979,038 -------------- Entertainment-0.4% Viacom, Inc. Cl.B(a)................................ 4,700 205,155 Walt Disney Co. .................................... 32,000 655,040 -------------- 860,195 -------------- Hospital Supplies-0.6% Abbott Laboratories................................. 12,900 709,500 Johnson & Johnson................................... 6,000 349,500 -------------- 1,059,000 -------------- Publishing-0.5% R. R. Donnelly & Sons Co. .......................... 31,700 928,810 -------------- Radio - TV Broadcasting-0.1% Liberty Media Corp. Series A(a)..................... 16,200 213,030 -------------- 6,040,073 -------------- Non-Financial-1.9% Building Material-0.6% Masco Corp. ........................................ 57,000 1,193,010 -------------- Forest Products-0.1% Louisiana-Pacific Corp. ............................ 28,000 215,040 -------------- Home Building-0.8% KB HOME ............................................ 19,000 638,780 Pulte Homes, Inc. .................................. 25,000 981,250 -------------- 1,620,030 -------------- Miscellaneous Building-0.4% National Service Industries, Inc. .................. 15,000 238,800 Sherwin-Williams Co. ............................... 15,600 436,644 -------------- 675,444 -------------- 3,703,524 -------------- - -------------------------------------------------------------------------------- 14 o ALLIANCEBERNSTEIN VALUE FUND ------------------------ PORTFOLIO OF INVESTMENTS ------------------------ Shares or Principal Amount Company (000) Value - -------------------------------------------------------------------------------- Services-1.5% Railroads-1.5% Burlington Northern Santa Fe Corp. ................. 42,925 $ 1,258,132 Norfolk Southern Corp. ............................. 41,800 810,502 Union Pacific Corp. ................................ 16,600 913,830 -------------- 2,982,464 -------------- Total Common Stocks (cost $187,935,766).............................. 187,212,448 -------------- SHORT-TERM INVESTMENT-5.3% Time Deposit-5.3% State Street Euro Dollar 1.50%, 12/03/01 (cost $10,494,000)............................... $10,494 10,494,000 -------------- Total Investments-99.8% (cost $198,429,766).............................. $ 197,706,448 Other assets less liabilities--0.2%.................. 417,025 -------------- Net Assets-100%..................................... $ 198,123,473 ============== (a) Non-income producing security. See notes to financial statements. - -------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VALUE FUND o 15 - --------------------------------- STATEMENT OF ASSETS & LIABILITIES - --------------------------------- STATEMENT OF ASSETS & LIABILITIES November 30, 2001 Assets Investments in securities, at value (cost $198,429,766) ....... $ 197,706,448 Cash .......................................................... 151 Receivable for shares of beneficial interest sold ............. 2,224,746 Receivable for investment securities sold ..................... 755,733 Dividends and interest receivable ............................. 463,230 Deferred offering costs ....................................... 60,655 ------------- Total assets .................................................. 201,210,963 ------------- Liabilities Payable for investment securities purchased ................... 2,427,713 Payable for shares of beneficial interest redeemed ............ 239,182 Advisory fee payable .......................................... 116,825 Distribution fee payable ...................................... 114,297 Accrued expenses and other liabilities ........................ 189,473 ------------- Total liabilities ............................................. 3,087,490 ------------- Net Assets .................................................... $ 198,123,473 ============= Composition of Net Assets Paid-in capital ............................................... $ 198,914,881 Undistributed net investment income ........................... 420,497 Accumulated net realized loss on investments .................. (488,587) Net unrealized depreciation of investments .................... (723,318) ------------- $ 198,123,473 ============= Calculation of Maximum Offering Price Class A Shares Net asset value and redemption price per share ($59,436,810 / 5,794,430 shares of beneficial interest issued and outstanding) .................................... $10.26 Sales charge--4.25% of public offering price .................. .46 ------ Maximum offering price ........................................ $10.72 ====== Class B Shares Net asset value and offering price per share ($88,578,604 / 8,671,032 shares of beneficial interest issued and outstanding) .................................... $10.22 ====== Class C Shares Net asset value and offering price per share ($38,661,214 / 3,785,125 shares of beneficial interest issued and outstanding) .................................... $10.21 ====== Advisor Class Shares Net asset value, redemption and offering price per share ($11,446,845 / 1,112,317 shares of beneficial interest issued and outstanding) .................................... $10.29 ====== See notes to financial statements. - -------------------------------------------------------------------------------- 16 o ALLIANCEBERNSTEIN VALUE FUND ----------------------- STATEMENT OF OPERATIONS ----------------------- STATEMENT OF OPERATIONS March 29, 2001(a) to November 30, 2001 Investment Income Dividends (net of foreign taxes withheld of $115)......................... $ 2,050,172 Interest..................................... 191,669 $ 2,241,841 -------------- Expenses Advisory fee................................. 673,383 Distribution fee - Class A................... 82,179 Distribution fee - Class B................... 404,161 Distribution fee - Class C................... 179,761 Transfer agency.............................. 129,363 Amortization of offering expenses............ 125,389 Administrative............................... 92,000 Custodian.................................... 70,988 Printing..................................... 57,818 Registration................................. 55,848 Audit and legal.............................. 46,802 Organization expenses........................ 35,150 Trustees' fees............................... 14,895 Miscellaneous................................ 4,039 -------------- Total expenses............................... 1,971,776 Less: expenses waived by the Advisor (see Note B).............................. (34,500) -------------- Net expenses................................. 1,937,276 ------------- Net investment income........................ 304,565 ------------- Realized and Unrealized Loss on Investment Transactions Net realized loss on investment transactions.............................. (488,587) Net change in unrealized appreciation/depreciation of investments............................ (723,318) ------------- Net loss on investments...................... (1,211,905) ------------- Net Decrease in Net Assets from Operations........................... $ (907,340) ============= (a) Commencement of operations. See notes to financial statements. - -------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VALUE FUND o 17 - ---------------------------------- STATEMENT OF CHANGES IN NET ASSETS - ---------------------------------- STATEMENT OF CHANGES IN NET ASSETS March 29, 2001(a) to November 30, 2001 ============= Increase (Decrease) in Net Assets from Operations Net investment income ................................. $ 304,565 Net realized loss on investment transactions .......... (488,587) Net change in unrealized appreciation/ depreciation of investments ........................ (723,318) ------------- Net decrease in net assets from operations ............ (907,340) Transactions in Shares of Beneficial Interest Net increase .......................................... 199,005,813 ------------- Total increase ........................................ 198,098,473 Net Assets Beginning of period ................................... 25,000 ------------- End of period (including undistributed net investment income of $420,497) ................. $ 198,123,473 ============= (a) Commencement of operations. See notes to financial statements. - -------------------------------------------------------------------------------- 18 o ALLIANCEBERNSTEIN VALUE FUND ----------------------------- NOTES TO FINANCIAL STATEMENTS ----------------------------- NOTES TO FINANCIAL STATEMENTS November 30, 2001 NOTE A Significant Accounting Policies AllianceBernstein Trust (the "Trust"), was organized as a Massachusetts business trust on December 12, 2000 and is registered under the Investment Company Act of 1940 as a diversified, open end management investment company. The Trust operates as a series company currently comprised of the following four funds: the Global Value Fund, the International Value Fund, the Small Cap Value Fund and the Value Fund (the "Funds"). Each Fund is considered to be a separate entity for financial reporting and tax purposes. This report relates only to the Value Fund (the "Fund"). The Fund commenced operations on March 29, 2001. The Fund offers Class A, Class B, Class C and Advisor Class shares. Prior to commencement of operations on March 29, 2001, the Fund had no operations other than the sale to Alliance Capital Management L.P. (the "Adviser") of 2,480 shares of Class A and 10 shares each of Class B and Class C for the aggregate amount of $24,800 for Class A shares and $100 each for Class B and Class C shares on February 15, 2001. Class A shares are sold with a front-end 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% 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 and are not subject to ongoing distribution expenses. Advisor Class shares are offered 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, 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 accounting principles generally accepted in the United States, 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) or on The Nasdaq Stock Market, Inc. are generally valued at the last reported sales price or if no sale occurred, at the mean of the closing bid and asked prices on that day. Readily marketable securities traded in the over-the-counter market, securities listed on a foreign securities exchange whose operations are similar - -------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VALUE FUND o 19 - ----------------------------- NOTES TO FINANCIAL STATEMENTS - ----------------------------- 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 prices. 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 Trustees. 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 the quoted bid and asked price of such currencies against the U.S. dollar. Purchases and sales of portfolio securities are translated into U.S. dollars at the rates of exchange prevailing when such securities were acquired or sold. Income and expenses are translated into U.S. dollars at rates of exchange prevailing when accrued. Net realized gain or loss on foreign currency transactions represents foreign exchange gains and losses from sales and maturities of investments and foreign currency contracts, the holding of foreign currencies, currency gains and losses realized between the trade and settlement dates on foreign security transactions, and the difference between the amounts of dividends, interest and foreign taxes recorded on the Fund's books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized 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 or depreciation of investments and foreign currency denominated assets and liabilities. 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. Organization and Offering Expenses Organization expenses of $35,150 were charged to the Fund as incurred prior to commencement of operations. Offering expenses of $186,044 have been deferred and are being amortized on a straight-line basis over a one year period. 5. 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 the securities are purchased or sold. The Fund accretes discounts as adjustments to interest income. Investment gains and losses are determined on the identified cost basis. - -------------------------------------------------------------------------------- 20 o ALLIANCEBERNSTEIN VALUE FUND ----------------------------- NOTES TO FINANCIAL STATEMENTS ----------------------------- 6. 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 Advisor Class shares. Advisor Class shares have no distribution fees. 7. Dividends and Distributions Dividends and distributions to shareholders are recorded on the ex-dividend date. Income dividends and capital gains distributions are determined in accordance with federal tax regulations and may differ from those determined in accordance with accounting principles generally accepted in the United States. 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. During the current fiscal year, permanent differences, primarily due to non-deductible organization costs, resulted in a net increase in undistributed net investment income and a corresponding decrease in additional paid-in capital. This reclassification had no effect on net assets. NOTE B Advisory Fee and Other Transactions with Affiliates Under the terms of an investment advisory agreement, the Fund pays Alliance Capital Management L.P. (the "Adviser"), a fee at an annual rate of .75% of the Fund's average daily net assets. Such fee is accrued daily and paid monthly. The Fund and the Adviser have entered into an Expense Limitation Agreement (the "Agreement"), dated January 31, 2001, under which the Adviser has agreed to waive its fees and, if necessary, reimburse expenses for the period from December 12, 2000 (date of organization of the Fund) to March 27, 2002, to the extent necessary to prevent total fund operating expenses from exceeding the annual rate of 2.50% of average daily net assets for Class A shares, 3.20% of average daily net assets for Class B shares and Class C shares and 2.20% of average daily net assets for Advisor Class shares, respectively. Under the Agreement, any waivers or reimbursements made by the Adviser during this period are subject to repayment by the Fund in subsequent periods, but no later than March 27, 2004, provided that repayment does not result in the Fund's aggregate expenses in those subsequent periods exceeding the foregoing expense limitations. Further, the aggregate repayment to the Adviser will not exceed the sum of the Fund's organization costs and initial offering expenses. During the period ended November 30, 2001, the Value Fund repaid $35,150 of organization expenses to the Adviser. At November 30, 2001, there were no expenses waived and reimbursed by the Adviser that are subject to repayment. Pursuant to the Advisory agreement, the Adviser provides certain legal and accounting services for the Fund. For the period ended November 30, 2001, such fees amounted to $92,000 of which $34,500 were waived by the Adviser. - -------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VALUE FUND o 21 - ----------------------------- NOTES TO FINANCIAL STATEMENTS - ----------------------------- The Fund compensates Alliance Global Investor Services, Inc. ("AGIS") (formerly 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 fees amounted to $77,455 for the period ended November 30, 2001. For the period ended November 30, 2001, the Fund's expenses were reduced by $926 under an expense offset arrangement with AGIS. 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 $58,885 from the sale of Class A shares and $2,036, $67,799 and $9,330 in contingent deferred sales charges imposed upon redemptions by shareholders of Class B and Class C shares, respectively, for the period ended November 30, 2001. Brokerage commissions paid on investment transactions for the period ended November 30, 2001, amounted to $309,408, of which $185,762 was paid to Sanford C. Bernstein & Co. LLC, 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 distribution and servicing fees to the Distributor at an annual rate of up to .30% of the average daily net assets attributable to Class A shares and 1% of the average daily net assets attributable to Class B and Class C shares. There are no distribution and servicing 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 $2,419,294 and $272,862 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 $205,359,488 and $16,935,135, respectively, for the period ended November 30, 2001. There were no purchases or sales of U.S. government or government agency obligations for the period ended November 30, 2001. At November 30, 2001, the cost of investments for federal income tax purposes was $198,430,070. Accord- - -------------------------------------------------------------------------------- 22 o ALLIANCEBERNSTEIN VALUE FUND ----------------------------- NOTES TO FINANCIAL STATEMENTS ----------------------------- ingly, gross unrealized appreciation of investments was $7,738,128 and gross unrealized depreciation of investments was $8,461,750 resulting in net unrealized depreciation of $723,622, excluding foreign currency transactions. At November 30, 2001, the Fund had a capital loss carryforward of $488,283 which expires in 2009. NOTE E Shares of Beneficial Interest There is an unlimited number of shares of beneficial interest authorized, without par value, divided into four classes, designated Class A, Class B, Class C and Advisor Class shares. Transactions in shares of beneficial interest were as follows: ----------------- ----------------- Shares Amount ----------------- ----------------- March 29, 2001(a) March 29, 2001(a) to November 30, to November 30, 2001 2001 -------------------------------------------- Class A Shares sold 6,828,711 $ 69,862,564 - -------------------------------------------------------------------------------- Shares converted from Class B 1,111 11,402 - -------------------------------------------------------------------------------- Shares redeemed (1,037,872) (10,371,565) - -------------------------------------------------------------------------------- Net increase 5,791,950 $ 59,502,401 ================================================================================ Class B Shares sold 9,168,477 $ 94,159,231 - -------------------------------------------------------------------------------- Shares converted to Class A (1,116) (11,402) - -------------------------------------------------------------------------------- Shares redeemed (496,339) (5,001,126) - -------------------------------------------------------------------------------- Net increase 8,671,022 $ 89,146,703 ================================================================================ Class C Shares sold 4,024,100 $ 41,249,261 - -------------------------------------------------------------------------------- Shares redeemed (238,985) (2,367,005) - -------------------------------------------------------------------------------- Net increase 3,785,115 $ 38,882,256 ================================================================================ Advisor Class Shares sold 1,215,741 $ 12,528,024 - -------------------------------------------------------------------------------- Shares redeemed (103,424) (1,053,571) - -------------------------------------------------------------------------------- Net increase 1,112,317 $ 11,474,453 ================================================================================ (a) Commencement of operations. - -------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VALUE FUND o 23 - ----------------------------- NOTES TO FINANCIAL STATEMENTS - ----------------------------- NOTE F 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 period ended November 30, 2001. - -------------------------------------------------------------------------------- 24 o ALLIANCEBERNSTEIN VALUE FUND -------------------- FINANCIAL HIGHLIGHTS -------------------- FINANCIAL HIGHLIGHTS Selected Data For A Share Of Beneficial Interest Outstanding Throughout The Period
------------ ------------ ------------ ------------ Advisor Class A Class B Class C Class ------------ ------------ ------------ ------------ March 29, March 29, March 29, March 29, 2001(a) to 2001(a) to 2001(a) to 2001(a) to November 30, November 30, November 30, November 30, 2001 2001 2001 2001 --------------------------------------------------------------- Net asset value, beginning of period ................... $10.00 $10.00 $10.00 $10.00 --------------------------------------------------------------- Income From Investment Operations Net investment income(b)(c) .... .06 .01 -0- .08 Net realized and unrealized gain on investment transactions .. .20 .21 .21 .21 ------------------------------------------------------------- Net increase in net asset value from operations ............. .26 .22 .21 .29 ------------------------------------------------------------- Net asset value, end of period . $10.26 $10.22 $10.21 $10.29 ============================================================= Total Return Total investment return based on net asset value(d) .......... 2.60% 2.20% 2.10% 2.90% Ratios/Supplemental Data Net assets, end of period (000's omitted) ............. $59,437 $88,579 $38,661 $11,447 Ratio to average net assets of: Expenses, net of waivers(e) . 1.71% 2.42% 2.43% 1.40% Expenses, before waivers(e) . 1.74% 2.46% 2.47% 1.44% Net investment income(e) .... .79% .08% .06% 1.14% Portfolio turnover rate ........ 14% 14% 14% 14%
(a) Commencement of operations. (b) Based on average shares outstanding. (c) Net of fees and expenses waived by the Adviser. (d) 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 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. (e) Annualized. - -------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VALUE FUND o 25 - ---------------------------- REPORT OF ERNST & YOUNG, LLP INDEPENDENT AUDITORS - ---------------------------- REPORT OF ERNST & YOUNG, LLP INDEPENDENT AUDITORS To the Shareholders and Board of Trustees of AllianceBernstein Trust We have audited the accompanying statement of assets and liabilities of AllianceBernstein Value Fund (one of the funds constituting the AllianceBernstein Trust) including the portfolio of investments, as of November 30, 2001, and the related statement of operations, the statement of changes in net assets and the financial highlights for the period from March 29, 2001 (commencement of operations) to November 30, 2001. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights. Our procedures included confirmation of securities owned as of November 30, 2001, by correspondence with the custodian and others. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of AllianceBernstein Value Fund at November 30, 2001, the results of its operations, the changes in its net assets and the financial highlights for the period from March 29, 2001 (commencement of operations) to November 30, 2001, in conformity with accounting principles generally accepted in the United States. /s/ Ernst & Young LLP New York, New York January 11, 2002 - -------------------------------------------------------------------------------- 26 o ALLIANCEBERNSTEIN VALUE FUND ---------------------------- GLOSSARY OF INVESTMENT TERMS ---------------------------- GLOSSARY OF INVESTMENT TERMS benchmark A standard by which a fund's performance can be measured. A benchmark is usually an unmanaged index, such as the Standard & Poor's 500 Stock Index or the Lehman Brothers Aggregate Bond Index. equity Another term for stock. index A compilation of securities of similar types of companies that is used to measure the investment performance of securities within that specific market. An index is often used as a benchmark for a mutual fund. An investor cannot invest directly in an index. net asset value The value of a mutual fund's total assets, minus its liabilities, divided by the number of shares outstanding. portfolio The collection of securities that make up a fund's or an investor's investments. share A unit which represents ownership in a mutual fund or stock. yield The rate of return on an asset, usually referring to dividend or interest payments, expressed as a percentage of current market price. - -------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VALUE FUND o 27 - ---------------- ALLIANCE CAPITAL - ---------------- Alliance Capital The Investment Professional's Choice Alliance Capital is a leading global investment management firm with approximately $421 billion in assets under management. In recognition of our far-reaching investment capabilities, Alliance Capital has been selected by employee benefit plans for 37 of the FORTUNE 100 companies and public retirement funds in 44 states as well as by hundreds of foundations, endowments and foreign institutions. By sharing this institutional money management experience with millions of mutual fund investors as well, Alliance stands out as a "manager of choice" for thousands of investment professionals around the world. At Alliance Capital, we place a premium on investment research. We carefully select securities based on our proprietary research, conducted by 646 investment professionals in 36 cities and 19 countries. Our commitment to this process means that our mutual fund shareholders have their portfolios managed by the same experienced analysts and portfolio managers who manage the pension funds of some of America's largest institutional investors. All information on Alliance Capital is as of 9/30/01. - -------------------------------------------------------------------------------- 28 o ALLIANCEBERNSTEIN VALUE FUND -------------------------------- ALLIANCE CAPITAL AT YOUR SERVICE -------------------------------- ALLIANCE CAPITAL AT YOUR SERVICE At Alliance Capital, shareholder satisfaction is among our top priorities. That is why we provide our shareholders with a wide variety of products and time-saving services. o Automatic Reinvestment You may choose to reinvest fund dividend and capital-gains distributions automatically at no charge. o Automatic Investment Program Build your investment account by having money automatically transferred from your bank account on a regular basis. o Dividend Direction Plans You may cross-invest dividends from one fund into the same class of shares in any other fund without incurring a sales charge--a good way to diversify your assets. o Auto Exchange You may choose to automatically exchange money from one Alliance Capital fund to another on a regular basis. This can be a good way to dollar cost average*, helping you to invest with discipline. o Systematic Withdrawals Regular checks for specified amounts can be sent to you or to your brokerage or bank account. o E-Statements and Electronic Delivery Sign up to view your quarterly mutual fund, retirement or CollegeBoundfund(SM) account statements online, rather than wait to receive paper copies in the mail. You may also sign up for electronic delivery of your legal documents so you can receive your semi-annual and annual shareholder reports, prospectuses and prospectus supplements online. It's easy, convenient and saves you time and storage space. Sign up today at www.alliancecapital.com. Simply go to Individual Investor, U.S., Account Access. o A Choice of Purchase Plans Most funds are available in A, B, and C Class shares. Many funds are also available in Advisor Class shares. o Telephone Transaction Purchases, transfers and redemptions can be made by calling (800) 221-5672. Our knowledgeable representatives are available to assist you Monday through Friday from 8:30 a.m. to 8:00 p.m. Eastern Standard Time. o Alliance Answer: 24-Hour Information For your convenience, our computerized audio response system is available to you 24-hours a day by calling (800) 251-0539. Using any touch tone phone, you can hear share prices, get account balances, review details of your last transaction, obtain dividend information, order statements/checkbooks, review fund objectives, and Watchlist information, order additional copies of statements and request additional year-end tax forms (available from February 1 to May 31). o The Alliance Advance A quarterly newsletter discussing investment strategies, economic news and other mutual fund matters. o Our Website at www.alliancecapital.com gives you a broad perspective of Alliance Capital. You can reach Alliance mutual fund and account information more directly from www.investor.alliancecapital.com. Either way, you'll have access to extensive Alliance fund data, answers to frequently asked questions, and financial planning tools and calculators. * Dollar cost averaging does not assure a profit nor protect against loss in a declining market. Since this strategy involves continuous investments in securities, regardless of fluctuating prices, investors should consider their financial ability to invest during periods of low price levels. - -------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VALUE FUND o 29 - ----------------- BOARD OF TRUSTEES - ----------------- BOARD OF TRUSTEES John D. Carifa, Chairman and President Ruth Block(1) David H. Dievler(1) John H. Dobkin(1) William H. Foulk, Jr.(1) Clifford L. Michel(1) Donald J. Robinson(1) OFFICERS Kathleen A. Corbet, Senior Vice President Marilyn G. Fedak, Senior Vice President Steven Pisarkiewicz, Senior Vice President Edmund P. Bergan, Jr., Secretary Andrew L. Gangolf, Assistant Secretary Mark D. Gersten, Treasurer and Chief Financial Officer Vincent S. Noto, Controller Custodian State Street Bank & Trust Company 225 Franklin Street Boston, MA 02110 Principal Underwriter Alliance Fund Distributors, Inc. 1345 Avenue of the Americas New York, NY 10105 Legal Counsel Ropes & Gray One International Place Boston, MA, 02110 Independent Auditors Ernst & Young LLP 787 Seventh Avenue New York, NY 10019 Transfer Agent Alliance Global Investor Services, Inc. P.O. Box 1520 Secaucus, NJ 07096-1520 Toll Free: (800) 221-5672 (1) Member of the Audit Committee. - -------------------------------------------------------------------------------- 30 o ALLIANCEBERNSTEIN VALUE FUND -------------------------------- ALLIANCE CAPITAL FAMILY OF FUNDS -------------------------------- ALLIANCE CAPITAL FAMILY OF FUNDS Domestic Equity Funds Growth & Income Fund Growth Fund Health Care Fund Mid-Cap Growth Fund* Premier Growth Fund Quasar Fund Technology Fund Global & International Equity Funds All-Asia Investment Fund Global Small Cap Fund Greater China '97 Fund International Fund International Premier Growth Fund The Korean Investment Fund New Europe Fund Worldwide Privatization Fund AllianceBernstein Value Funds Disciplined Value Fund Global Value Fund International Value Fund Real Estate Investment Fund Small Cap Value Fund Utility Income Fund Value Fund Select Investor Series Biotechnology Portfolio Premier Portfolio Small Cap Growth Portfolio Technology Portfolio Asset Allocation Funds Balanced Shares Conservative Investors Fund Growth Investors Fund Fixed Income Funds Americas Government Income Trust** Corporate Bond Portfolio Emerging Market Debt Fund*** Global Strategic Income Trust High Yield Fund Multi-Market Strategy Trust Quality Bond Portfolio U.S. Government Portfolio Municipal Income Funds National Insured National Arizona California Insured California Florida Massachusetts Michigan Minnesota New Jersey New York Ohio Pennsylvania Virginia Closed-End Funds All-Market Advantage Fund The Austria Fund ACM Income Fund ACM Government Opportunity Fund ACM Managed Dollar Income Fund ACM Managed Income Fund ACM Municipal Securities Income Fund The Southern Africa Fund The Spain Fund World Dollar Government Fund World Dollar Government Fund II Alliance also offers AFD Exchange Reserves, which serves as the money market fund exchange vehicle for the Alliance mutual funds. To obtain a prospectus for any Alliance Capital fund, call your investment professional, or call Alliance at (800) 227-4618. * The Alliance Fund will change its name to Alliance Mid-Cap Growth Fund on February 1, 2002. ** Alliance North American Government Income Trust will change its name to Alliance Americas Government Income Trust on March 1, 2002. *** Alliance Global Dollar Government Fund will change its name to Alliance Emerging Market Debt Fund on March 1, 2002. - -------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VALUE FUND o 31 NOTES - -------------------------------------------------------------------------------- 32 o ALLIANCEBERNSTEIN VALUE FUND AllianceBernstein Value Fund 1345 Avenue of the Americas New York, NY 10105 (800) 221-5672 Alliance Capital [LOGO](R) The Investment Professional's Choice (R) These registered service marks used under license from the owner, Alliance Capital Management L.P. BVFAR1101 -----END PRIVACY-ENHANCED MESSAGE-----